Document:

alexanderemploymentagreement

THIRD AMENDED AND RESTATED EMPLOYMENT AGREEMENT
This EMPLOYMENT AGREEMENT (“Agreement”) is effective as of April 1, 2015, between George Alexander (“Executive”) and Thermon Holding Corp., a Delaware corporation (the “Company”).
Whereas, Executive currently serves as the Company’s Executive Vice President, Global Sales; and 
Whereas, subject to the terms and conditions of this Agreement, the Company desires to employ Executive as a Special Advisor to the President and Chief Executive Officer; and 
Therefore, in consideration for the mutual promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which both parties expressly acknowledge, Executive and the Company agree as follows:
1.Employment.  Company hereby agrees to employ Executive as a Special Advisor to the President and Chief Executive Officer, and Executive accepts such employment and agrees to remain so employed, upon the terms and conditions stated herein.

2.Term.  Executive’s employment under this Agreement shall begin on April 1, 2015, and shall continue thereafter until March 31, 2016 (the “Term”), unless sooner terminated in accordance with Section 9 below.  At the conclusion of the Term, the parties agree that Executive’s continued service to the Company Group shall be on the basis of an independent contractor and Executive shall only be paid for actual service performed on an as needed basis.  Such continued service shall be subject to the terms and conditions of a subsequent consulting agreement to be mutually agreed upon by Executive and the Company.

3.Duties and Responsibilities.  Executive shall perform such duties as are reasonably assigned to Executive by the Company’s President and Chief Executive Officer, to whom Executive will report and shall be accountable.  Such duties will include providing assistance on corporate development projects, transitioning and supporting his successor as Executive Vice President, Global Sales, and such other duties and responsibilities which may be assigned by the President and Chief Executive Officer.  The foregoing notwithstanding, Executive’s duties and responsibilities shall not include international travel without Executive’s prior consent, Executive shall not be responsible for any direct reports and Executive will not be an executive officer of the Company.  Executive shall faithfully, diligently, and competently perform such services to the reasonable satisfaction of the Company’s Chief Executive Officer, and Executive shall devote substantially all of his business time and best efforts, skill, and attention to the diligent performance and discharge of such duties and responsibilities.  The parties agree that from time to time Executive may perform some of his duties while not present in the Company's offices, subject to such conditions as Executive and the President and Chief Executive Officer may agree.

4.Exclusivity and Conflict of Interest.  Executive’s employment with Company shall be exclusive.  Accordingly, during Executive’s employment with the Company, Executive shall not engage in any business activity other than on the Company’s behalf without the express prior written approval of the Company’s Board of Directors.  It will not be a violation of this exclusivity provision for Executive to serve on charitable or civic boards or committees provided that such activity does not interfere with the performance of Executive’s duties and responsibilities under this Agreement.  Under no circumstance shall Executive engage in any activity that could create a conflict of interest between Executive and the Company or its affiliates.

5.Base Salary.  For services rendered by Executive on the Company’s behalf during Executive’s employment, the Company will pay Executive a base salary (“Base Salary”) at the annual rate of $312,966.16, less customary withholding.  The Company will pay Executive’s pro-rata Base Salary on the Company’s regular paydays.

6.Incentive Compensation.

(a)Bonus.  Executive shall be eligible to receive his annual bonus for the fiscal year ended March 31, 2015, in accordance with the terms of the Company's bonus arrangements as in effect for that fiscal year.  Executive shall not be eligible for an annual bonus or additional long-term incentive awards with respect to his service on or after April 1, 2015.

(b)Options. Executive is the recipient of a Stock Option Agreement and Option Award Notice with respect to the Company’s common stock dated May 4, 2011 (collectively, the “Option Agreement”).  Provided that Executive honors the terms and conditions of the Option Agreement and of this Agreement, 2,000 options shall vest and become exercisable on May 

4, 2015 per the original terms of the Option Agreement, as long as Executive remains employed with the Company through such date.  The remaining 2,000 options shall vest and become exercisable on May 4, 2016 per the original terms of the Option Agreement, subject to Executive’s continued service as an independent contractor in accordance with the terms and conditions of a subsequent consulting agreement to be mutually agreed upon by Executive and the Company.

(c)Restricted Stock Units. Executive is the recipient of Restricted Stock Unit Award Agreements with respect to the Company’s common stock dated August 2, 2012, August 1, 2013 and July 31, 2014 (the “RSU Agreements”).  Provided that Executive honors the terms and conditions of each relevant RSU Agreement and of this Agreement, 4,563 restricted stock units shall vest per the RSU Agreements on August 1, 2015, 4,647 restricted stock units shall vest per the RSU Agreements on August 2, 2015 and 2,507 restricted stock units shall vest per the original terms of the RSU Agreements on March 31, 2016, as long as Executive remains employed with the Company through each such date.  The remaining 4,563 restricted stock units shall vest on August 1, 2016, subject to Executive’s continued service as an independent contractor in accordance with the terms and conditions of a subsequent consulting agreement to be mutually agreed upon by Executive and the Company.

(d)Performance Units. Executive is the recipient of Performance Unit Award Agreements with respect to the Company’s common stock dated August 1, 2013 and July 31, 2014 (each a “PSU Agreement”).  Pursuant to the PSU Agreement dated August 1, 2013, provided that Executive honors the terms and conditions of the PSU Agreement and of this Agreement, a target award of 4,563 performance units shall vest per the PSU Agreements on March 31, 2016 and will be earned based on the level of achievement of the Performance Goal (as defined in the PSU Agreement) in accordance with the PSU Agreement, as long as Executive remains employed with the Company through such date. Pursuant to the PSU Agreement dated July 31, 2014, 50% of the target award of performance units vested on March 31, 2015 and will be earned based on the achievement of the relevant Performance Goal and 50% of the target award of performance units shall vest per the PSU Agreements on March 31, 2016 (collectively, the “2014 PSUs”), as long as Executive remains employed with the Company through each such date.  The 2014 PSUs shall be earned in accordance with the PSU Agreement based on the achievement of the Performance Goal at the end of the Performance Period (as defined in the PSU Agreement).

7.Vacation and Other Employment Benefits.  During Executive’s employment with the Company, Executive shall be entitled to five weeks (25 days) of personal time off per calendar year (pro-rated for partial years), taken at times mutually acceptable to Executive and the Company.  Executive may carry over one week of unused personal time off from one calendar year to another.  In addition, Executive may participate in those other employee benefit plans that the Company may make generally available to its salaried employees provided that Executive otherwise meets the eligibility requirements of those plans.

8.Expense Reimbursement.  Executive shall be entitled to reimbursement for ordinary, necessary and reasonable out-of-pocket business expenses which Executive incurs in connection with performing Executive’s duties under this Agreement, including reasonable business travel and meal expenses.  The reimbursement of all such expenses shall be made in accordance with the Company’s customary practice and policies (including presentation of evidence reasonably satisfactory to the Company of the amounts and nature of such expenses).

9.Termination.  Either party may terminate Executive’s employment upon written notice to the other party.

(a)Should Executive’s employment terminate prior to the end of the Term for any reason other than by the Company without Cause or by reason of death or Disability, then the Company shall pay Executive (i) any earned but unpaid portion of the Base Salary and any accrued but unpaid employment benefit as required by applicable law, each pro-rated through Executive’s employment termination date and (ii) for any unreimbursed business expenses incurred by Executive through Executive’s last day of employment pursuant to Section 8 above.  Any options, restricted stock units, or performance units which as of the date of termination have not yet vested pursuant to Section 6 above shall by forfeited in accordance with the terms and conditions of the applicable award agreements.

(b)Should Executive’s employment terminate prior to the end of the Term by the Company without Cause or by reason of death or Disability, the Company shall pay Executive or Executive’s estate (i) any earned but unpaid portion of the Base Salary and any accrued but unpaid employment benefit as required by applicable law, each pro-rated through Executive’s employment termination date; (ii) any unreimbursed business expenses incurred by Executive through Executive’s last day of employment pursuant to Section 8 above; and (iii) Executive’s regular Base Salary in equal installments in accordance with the Company’s normal payroll practice for the remainder of the Term subject to the execution, without revocation, of a waiver and release on or within 30 days following the date of his separation from service in the form prescribed by the Company. Any options, restricted stock units, or performance units which as of the date of termination have not yet vested pursuant to Section 6 above shall be treated in accordance with the terms and conditions of the applicable award agreements.

(c)Executive’s employment shall terminate at the end of the Term and the Company shall pay Executive (i) any earned but unpaid portion of the Base Salary and any accrued but unpaid employment benefit as required by applicable law, each pro-rated through Executive’s employment termination date and (ii) any unreimbursed business expenses incurred by Executive through Executive’s last day of employment pursuant to Section 8 above.

(d)On or before the employment termination date, Executive shall return to the Company all of its and its affiliates’ property including all of the Company’s documents, keys, credit cards, computer software, and all copies thereof (except as otherwise agreed upon by Executive and the Company in a subsequent consulting agreement).  Other than as set forth in this Section 9 or as set forth in a subsequent consulting agreement, Executive shall not be entitled to any other compensation or benefits (including any bonus) upon termination of employment.

(e)Unless otherwise agreed to in writing by the Company and Executive prior to the termination of Executive’s employment, any termination of Executive’s employment shall constitute an automatic resignation of Executive as an officer of the Company and each affiliate of the Company, and an automatic resignation of Executive from the Board of Directors of the Company (if applicable) and from the board of directors or similar governing body of any affiliate of the Company and from the board of directors or similar governing body of any corporation, limited liability entity or other entity in which the Company or any affiliate holds an equity interest and with respect to which board or similar governing body Executive serves as the Company’s or such affiliate’s designee or other representative.

(f)For purposes of this Agreement, “Cause” means any of the following, as reasonably determined by the Company’s Board of Directors and includes:  (i) the commission by Executive of a felony (or a crime involving moral turpitude); (ii) the theft, conversion, embezzlement or misappropriation by Executive of funds or other assets of the Company or any of its affiliates or any other act of fraud or dishonesty with respect to the Company or any of its affiliates (including acceptance of any bribes or kickbacks or other acts of self-dealing); (iii) intentional, grossly negligent, or unlawful misconduct by Executive which causes harm or embarrassment to the Company or any of its affiliates or exposes the Company or any of its affiliates to a substantial risk of harm or embarrassment; (iv) the violation by Executive of any law regarding employment discrimination or sexual harassment; (v) the failure by Executive to comply with any material policy generally applicable to Company employees, which failure is not cured within 30 days after notice to Executive; (vi) the repeated failure by Executive to follow the reasonable directives of any supervisor or the Company’s Board of Directors, which failure is not cured within 30 days after notice to Executive; (vii) the unauthorized dissemination by Executive of confidential information in violation of Section 11 of this Agreement; (viii) any material misrepresentation or materially misleading omission in any resume or other information regarding Executive (including Executive’s work experience, academic credentials, professional affiliations or absence of criminal record) provided by or on behalf of Executive; (ix) the Company’s discovery that, prior to Executive’s employment with the Company, Executive engaged in conduct of the type described in clauses (i) through (iv) above; or (x) any other material breach by Executive of this Agreement that is not cured within 30 days after notice to Executive.

(g)For purposes of this Agreement, “Disability” means (i) a physical or mental health condition that causes Executive to be unable to perform his essential job functions for at least 90 consecutive days or for 120 days during any 180 day period, or (ii) that Executive is receiving long term disability benefits under any policy, plan, or program.

10.Patents, Copyrights, Trademarks, and Other Property Rights.  Any and all inventions, improvements, discoveries, formulas, technology, business strategies, management, administration, and accounting systems, processes, and computer software relating to the Company’s or its affiliates’ business (whether or not patentable), discovered, developed, or learned by Executive during his employment with the Company or used by the Company or its affiliates in the conduct of their respective businesses are the sole and absolute property of Company and are “works made for hire” as that term is defined in the copyright laws of the United States.  The Company is the sole and absolute owner of all patents, copyrights, trademarks, and other property rights to those items and Executive will fully assist the Company to obtain the patents, copyrights, trademarks, or other property rights to all such inventions, improvements, discoveries, formulas, technology, business strategies, management, administration, and accounting systems, processes, or computer software.  Executive has been notified by the Company and understands that the foregoing provisions of this Section 10 do not apply to an invention for which no equipment, supplies, facilities, confidential, proprietary, or trade secret information of the Company or its affiliates was used and which was developed entirely on Executive’s own time, unless the invention: (a) relates to the business of the Company or its affiliates or to their actual or demonstrably anticipated research and development, or (b) results from any work performed by Executive for the Company or its affiliates.

11.Non-Disclosure and Use of Confidential and Proprietary Information.  The Company’s employment of Executive has resulted and will result in Executive’s exposure and access to confidential and proprietary information, to which the Company agrees to continue to provide Executive after this Agreement becomes effective, that includes (among other things) the Company’s and its affiliates’ formulas, processes, administration and accounting systems, computer software, 

customer lists, vendor lists, due diligence files, financial information, technology, business strategies, business track record, and personal information about the Company’s and its affiliates’ owners, directors, officers, and employees, which information is of great value to the Company, its affiliates, their owners, Directors, officers, and employees.   Executive shall not, other than on the Company’s behalf, at any time during Executive’s employment with the Company and thereafter, make available, divulge, disclose, or communicate in any manner whatsoever to anyone including any person, firm, corporation, investor, member of the media, or entity, any such confidential or proprietary information, or use any such confidential or proprietary information for any purpose other than on the Company’s behalf, unless authorized to do so in writing by Company’s Chairman of the Board of Directors, required by law or court order, or such information has become publicly available other than by reason of a breach by Executive of this Section 11 or of another individual’s or entity’s violation of an obligation not to disclose such information.  Should Executive be required by law or court order to disclose such confidential or proprietary information, Executive shall give the Company’s Chairman of the Board of Directors reasonable notice so as to allow the Company sufficient opportunity to challenge such application of the law or court order, or to otherwise attempt to limit the scope of such disclosure.  This Agreement applies to all confidential and proprietary information of the Company and its affiliates, regardless of when such information is or was disclosed to Executive.

12.Restrictive Covenants.  During Executive’s employment with the Company and for a period of one (1) year after the termination of that employment, Executive agrees to not, directly or indirectly, other than on the Company’s behalf:

(a)Engage or participate, in any country in the world in which the Company does business or has begun to formulate a plan to do business during the term of Executive’s employment with the Company, as an owner, partner, member, shareholder, independent contractor, employee, consultant, agent, advisor or (without limitation by the specific enumeration of the foregoing) otherwise in any business involving a Competitive Business Activity (as defined below), provided that nothing in this Section 12 shall prevent Executive from owning less than five percent (5%) of any class of publicly traded securities of any such business so long as such investment is passive and Executive has no other involvement with the issuer of such securities.  For purposes of this Agreement, “Competitive Business Activity” means the design, engineering, manufacture or sale of heat tracing systems  (for example, products involving the application of external heat to pipes, vessels, instruments or other equipment for the purposes of freeze protection, process temperature maintenance, environmental monitoring or surface snow and ice melting, heat tracing equipment, heat tracing tubing bundles, and heat tracing control systems), heat tracing system consultation, heat tracing system installation, and heat tracing system maintenance;

(b)Solicit any customer or potential customer of the Company or any of its affiliates that Executive had contact with during the term of his employment with respect to the sale or provision of any Competitive Business Activity that the Company or its affiliates manufactured, sold, or was in the process of developing during Executive’s employment with the Company.  For purposes of this subsection 12(b), (i) a customer means any individual or entity to which the Company or any of its affiliates sold products or rendered services within the 24 month period immediately preceding Executive’s employment termination date, and (ii) potential customer means any individual or entity to which the Company or any of its affiliates solicited (or had active plans to solicit) within the 12 month period that immediately preceded Executive’s employment termination date; or

(c)Induce or assist in the inducement of any individual or independent contractor (including sales representatives or agents) to terminate or otherwise limit their relationship with the Company or any of its affiliates.
The period of time in which Executive is required to act, or refrain from acting, pursuant to this Section 12 shall be tolled (shall not run) for so long as Executive is in breach of any of Executive’s obligations thereunder.
13.Non-Disparagement.  At no time shall Executive, directly or indirectly, ever make (or cause to be made) any disparaging, derogatory or other negative or false statement regarding the Company, its affiliates, their products, services, practices, policies, operations, owners, directors, officers, partners, employees, sales representatives, or agents.  The Company shall direct the members of its Board of Directors and its senior executives to not make (or cause to be made) at any time, directly or indirectly, any disparaging, derogatory or other negative or false statement regarding Executive.

14.Injunctive Relief.  Executive acknowledges and agrees that the covenants contained in Sections 10 - 13 above are reasonable in scope and duration, do not unduly restrict Executive’s ability to engage in Executive’s livelihood, and are necessary to protect the Company’s legitimate business interests (including without limitation, the protection of its confidential and proprietary information).  Without limiting the rights of the Company to pursue any other legal and/or equitable remedies available to it for any breach by Executive of the covenants contained in Sections 10 - 13 above, Executive acknowledges that a breach of those covenants would cause a loss to the Company for which it could not reasonably or adequately be compensated by damages in an action at law, that remedies other than injunctive relief could not fully compensate the Company for a breach of those covenants and that, accordingly, the Company shall be entitled to injunctive relief (without the requirement of posting a bond or other security) to prevent any breach or continuing breaches of Executive’s 

covenants as set forth in Sections 10 - 13 above.  It is the intention of the parties that if, in any action before any court empowered to enforce such covenants, any term, restriction, covenant, or promise is found to be unenforceable, then such term, restriction, covenant, or promise shall be deemed modified to the extent necessary to make it enforceable by such court to the fullest extent possible.  If any provision of this Agreement (including without limitation Sections 10 - 13) is held invalid or unenforceable for any reason (after any such modification or limitation pursuant to the preceding sentence, as applicable), such provision will be ineffective only to the extent of such invalidity or unenforceability without invalidating the remainder of such provision or the remaining provisions of this Agreement.

15.The Company’s Disclosure to Executive’s Prospective or Subsequent Employers.  Executive expressly authorizes the Company to disclose this Agreement, any provision hereof, or any other policy or agreement between the Company and Executive to Executive’s prospective or subsequent employers.

16.Mandatory Mediation.  Other than disputes involving the covenants and obligations set forth in Sections 10 - 13 above which may be directly filed in a court of competent jurisdiction, Executive and the Company agree that all other disputes and claims of any nature that Executive may have against the Company including all statutory, contractual, and common law claims (including all employment discrimination claims), and all other disputes and claims of any nature that the Company may have against Executive, will be submitted exclusively first to mandatory mediation in a mutually agreed-upon location, under the National Rules for the Resolution of Employment Disputes of the American Arbitration Association or under such other rules or under the auspices of such other organization as the parties may mutually agree.  All information regarding the dispute or claim or mediation proceedings, including any mediation settlement, shall not be disclosed by Executive, the Company, or any mediator to any third party without the written consent of the Company’s Chairman of the Board of Directors and Executive.

17.Assignment.  The services rendered by Executive to the Company are unique and personal.  Accordingly, Executive may not assign any of the rights or delegate any of the duties or obligations under this Agreement.  This Agreement is enforceable by the Company and its affiliates and may, upon written notice to Executive, be assigned or transferred by the Company to, and shall be binding upon and inure to the benefit of, any parent, subsidiary or other affiliate of the Company or any entity which at any time, whether by merger, purchase, or otherwise, acquires all or substantially all of the assets, stock or business of the Company.

18.Clawback Right.  Notwithstanding any other provisions of this Agreement, any payments or benefits provided under this Agreement shall be subject to recovery or clawback by the Company under any clawback policy adopted by the Company whether before or after the Effective Date of this Agreement.

19.Notices.  All notices hereunder shall be in writing and shall be delivered by hand, by facsimile (or photo or other electronic means), by local messenger or by reputable overnight courier.  Notices shall be deemed given: (1) when received, if delivered by hand or local messenger; (2) when sent, if sent by facsimile, photo or other electronic means during the recipient’s normal business hours; (3) on the first business day after being sent, if sent by facsimile, photo or other electronic means other than during the recipient’s normal business hours; and (4) one business day after being delivered to a reputable overnight courier for next day delivery.  A notice delivered by facsimile, photo or other electronic means shall only be effective on the date set forth above, however, if the notice is also given by hand, local messenger or courier no later than two business days after its delivery by facsimile, photo or other electronic means.  All notices shall be addressed as follows: (1) if to the Company: Thermon Holding Corp., 100 Thermon Drive, San Marcos, Texas 78666, Attention: Chief Executive Officer; fax (512) 754 2424; (2) if to Executive: George Alexander, to the home address last shown on the records of the Company; or (in each case) to such other addresses or addressees as may be designated by notice given in accordance with the provisions of this Section 19.

20.Waiver.  The Company’s waiver of a breach by Executive of any provision of this Agreement or failure to enforce any such provision with respect to Executive shall not operate or be construed as a waiver of any subsequent breach by Executive of any such provision or of any other provision or of the Company’s right to enforce any such provision or any other provision with respect to Executive.  No act or omission of the Company shall constitute a waiver of any of its rights hereunder except for a written waiver signed by the Company’s Chairman of the Board of Directors.

21.Governing Law.  This Agreement shall in all respects be governed by the substantive laws of the State of Texas without regard to its or any other state’s conflict of law rules.

22.Amendment.  The terms of this Agreement may be modified only by a writing signed by both Executive and the Company’s Chief Executive Officer.

23.Post-Employment Effectiveness.  Executive expressly acknowledges that Sections 10 - 27 of this Agreement remain in effect after the termination of Executive’s employment with Company.

24.Section 409A.  This Agreement is intended to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and shall be interpreted and construed consistently with such intent.  The payments to Executive pursuant to this Agreement are also intended to be exempt from Section 409A of the Code to the maximum extent possible, under either the separation pay exemption pursuant to Treasury regulation §1.409A-1(b)(9)(iii) or as short-term deferrals pursuant to Treasury regulation §1.409A-1(b)(4), and for purposes of the separation pay exemption, each installment paid to Executive under this Agreement shall be considered a separate payment.  In the event the terms of this Agreement would subject Executive to taxes or penalties under Section 409A of the Code (“409A Penalties”), the Company and Executive shall cooperate diligently to amend the terms of the Agreement to avoid such 409A Penalties, to the extent possible; provided that in no event shall the Company be responsible for any 409A Penalties that arise in connection with any amounts payable under this Agreement.  To the extent any amounts under this Agreement are payable by reference to Executive’s “termination of employment” such term and similar terms shall be deemed to refer to Executive’s “separation from service,” within the meaning of Section 409A of the Code.  Notwithstanding any other provision in this Agreement, if Executive is a “specified employee,” as defined in Section 409A of the Code, as of the date of Executive’s separation from service, then to the extent any amount payable under this Agreement (i) constitutes the payment of nonqualified deferred compensation, within the meaning of Section 409A of the Code, (ii) is payable upon Executive’s separation from service and (iii) under the terms of this Agreement would be payable prior to the six-month anniversary of Executive’s separation from service, such payment shall be delayed until the earlier to occur of (a) the six-month anniversary of the separation from service or (b) the date of Executive’s death.  In addition, each payment of nonqualified deferred compensation, within the meaning of Section 409A of the Code, which is conditioned upon Executive’s execution of a release and which is to be paid during a designated period that begins in a first taxable year and ends in a second taxable year shall be paid in the second taxable year.  Any reimbursement payable to Executive pursuant to this Agreement shall be conditioned on the submission by Executive of all expense reports reasonably required by the Company under any applicable expense reimbursement policy, and shall be paid to Executive within 30 days following receipt of such expense reports, but in no event later than the last day of the calendar year following the calendar year in which Executive incurred the reimbursable expense. Any amount of expenses eligible for reimbursement during a calendar year shall not affect the amount of expenses eligible for reimbursement during any other calendar year. The right to any reimbursement pursuant to this Agreement shall not be subject to liquidation or exchange for any other benefit.

25.Entire Agreement.  This Agreement constitutes the entire agreement and understanding of the parties hereto with respect to the matters described herein, and supersedes any and all prior and/or contemporaneous agreements and understandings, oral or written, between the parties, including, without limitation, the Second Amended and Restated Employment Agreement and any other employment or severance arrangement.

26.Counterparts; Facsimiles.  This Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together constitute one agreement.  A facsimile, photo or other electronic copy of this Agreement (or any counterpart hereof) shall be deemed to be an original.

27.Construction.  The headings contained in this Agreement are for convenience of reference only and shall not affect the meaning or interpretation of this Agreement.  This Agreement shall not be construed strictly against the drafter (and any rule of construction to that effect shall not be applied).

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EXECUTIVE AND THE COMPANY EACH REPRESENT AND WARRANT THAT EACH HAS READ THIS AGREEMENT, EACH UNDERSTANDS ITS TERMS, AND EACH AGREES TO BE BOUND THEREBY.
IN WITNESS WHEREOF, the parties have executed this Employment Agreement as of the date first above written.
	
			
	George Alexander
	 
	THERMON HOLDING CORP.

	 
	 
	 

	/s/ George Alexander
	 
	By: /s/ Rodney Bingham

Name: Rodney L. Bingham
Its:      President & Chief Executive Officer

[Signature Page - Employment Agreement]CHARDAN

 

Steven Urbach

President

Chardan Capital Markets, LLC

17 State Street

Suite 1600

New York, NY 10004

Tel: 646 465 9023

Fax: 646 465 9091

 

March 3, 2015

 

MassRoots, Inc.

2247 Federal Blvd.,

Denver, CO 80202

Attention:Mr. Isaac Dietrich

 

Dear Isaac:

 

This letter will confirm
our understanding that the company known to us as MassRoots, Inc. (the "Company") has engaged Chardan Capital Markets,
LLC ("Chardan", "Advisor" or "Placement Agent") to act as the Company's non-exclusive placement
agent and financial advisor. The Company and Chardan are each a "Party" and collectively, the "Parties".

 

Section 1.Scope of Engagement
and Services.

In connection with this engagement, Chardan shall provide the following services
("Services"), as appropriate:

 

	(a)		familiarize itself to the extent appropriate and feasible with the business, operations,
properties, financial condition and prospects of the Company in order to, among other things, analyze the potential contributions
of such business, operations and facilities to the Company's future operating results, it being understood that Advisor shall
be entitled, in the course of such familiarization, to rely upon publicly available information and such other information as
may be supplied by the Company, without independent investigation;

	(b)		advise and assist the Company in negotiating the terms and conditions of any transaction;

	(c)		advise the Company on an appropriate investor relations program;

	(d)		introduce the Company to potential investors and/or business partners ("Chardan
Contacts") who are "accredited investors", as that term is defined under Rule 501 of the Securities Act of 1933,
as amended;

	(e)		at the Company's request, assist the Company in preparing a memorandum, for distribution
to Chardan Contacts, lenders and/or other financial sources, describing the Company and its business, operations, properties,
financial condition and prospects, it being specifically agreed that (I) any such memorandum shall be based entirely upon information
supplied by theCompany, which information the Company hereby warrants shall be accurate in all material respects; (ii) the Company
shall be solely responsible for the accuracy and completeness of such memorandum; and (iii) other than as contemplated by this
paragraph, such memorandum shall not be used, reproduced, disseminated, quoted or referred to at any time, in any manner or for
any purpose, except with the Company's prior written consent. Chardan shall make offers and sales of the Company's securities
in compliance with the provisions of Rule 506 of Regulation D and/or Section 4(2) of the Securities Act of 1933;

	(f)		arrange non-deal road shows;

	(g)		advise and assist management in preparing for presentations to investors, lenders
and/or other financial sources, including the development of the best strategy for demonstrating the experience of management
and the scope of such experience;

    	 	 	 

    	 

    
	(h)		perform such other financial advisory services as Chardan and the Company may from
time to time agree upon.

 

Chardan
understands that the Company reserves the right to reject the subscription of any investor, including the Chardan Contacts, in
whole or in part, in its sole and absolute discretion.

 

Section 2.Compensation. 

 

	(a)		The Company agrees to pay Chardan for its Services the following fees upon the execution
of this Agreement: 200,000 shares of the Company's restricted common stock; such shares shall be deemed fully vested at the time
of issuance and shall be issued to Chardan or its designees (the "Agent Stock"). The Company acknowledges and agrees
that all Agent Stock is non-cancellable, nonrefundable, and is deemed to be earned and issued as of the date this Agreement is
signed by the Company and Chardan. The Company shall deliver to Chardan, or its designees, the restricted Agent Stock no later
than fifteen (15) calendar days from execution of this Agreement, along with a signed resolution of its Board of Directors authorizing
the execution of this Agreement, The Company understands and agrees that Chardan has foregone significant opportunities to accept
this engagement, and that the Company derives substantial benefit from Chardan's decision to enter into and sign this Agreement.
The Agent Stock therefore, constitutes payment only for Chardan's agreement to consult with the Company, and are a nonrefundable,
non-apportionable, and non-ratable retainer; such shares of common stock are not a prepayment for future services. Chardan acknowledges
that the receipt of the shares involves a high degree of risk and further acknowledges that is can bear the economic risk of receiving
the shares, which may include the total loss of its compensation. If the Company decides to terminate this Agreement at any time
after the effective date of this Agreement for any reason whatsoever, it is agreed and understood that Chardan will not be requested
or demanded by the Company to return any of the Agent Stock. The Company agrees to take any and all action(s) necessary to clear
the restricted securities of restriction upon presentation of any completed Rule 144(b)a pplication by Chardan, it's designees,
or its broker, including, but not limited to: (1) Authorizing the Company's transfer agent to remove the restrictive legend on
the restricted securities; (2) Expediting either the acquisition of a legal opinion from Company's counsel authorizing the removal
of the restrictive legend, or accepting a third party legal opinion acknowledging same; and (3) Cooperating and communicating
with Chardan and its broker in order to use Company's best efforts to clear the subject securities of restriction as soon as possible
after presentation of a Rule 144(B) application by Chardan (or its designees or broker) to either the Company and/or the Company's
transfer agent. Further, the Company agrees to not unreasonably withhold or delay approval of any application filed by Chardan
under Rule 144(b) of the Act to clear the subject securities of restriction. Chardan and the Company therefore agree that the
Company shall have a period of five (5) business days from the date Chardan's Rule 144(b) application is tendered to either the
Company or its transfer agent by either Chardan and/or its broker, to take any and all necessary action to clear the subject securities
of restriction. The Company and Chardan agree that this five (5) day period is reasonable and consistent with industry standards
concerning the handling and processing of restricted securities under Rule 144 by publicly traded companies. The Company also
acknowledges that Chardan's ability to clear the subject securities of restriction, by virtue of the Company's best efforts, cooperation,
covenants and representations in this regard is a material part of this Agreement and is a reasonable and material expectation
of Chardan in entering into this Agreement. Should events occur that require further expense of time beyond this five (5) day
time period, the Company and Chardan shall reasonably agree in a writing signed by each to an extension for a specific amount
of time. In no event shall an extension be agreed to unless the Company comports with its "best efforts" obligations,
as set out above, and communicates with Chardan bona fide and reasonable attempts at meeting Company's obligations to clear the
subject restricted securities, as described herein.

 

    	 	 	 

    	 

    

	(b)		In the event a financing is consummated during the Term in which investors introduced
by Chardan are participating (a "Transaction"), the Company will pay to Chardan an aggregate placement agent fee (the
"Placement Fee") as stated below. All such fees shall be immediately paid by the Company to Chardan at the closing of
the Transaction, however, if such Transaction occurs through multiple closings, then pro rata portion of such fees shall he paid
upon each closing:

	i.		For any capital raise, the Company shall pay to Chardan, at the time of closing, (1)
an aggregate cash fee equal to four percent (4.0%) of the aggregate sales price of the securities sold in the Transaction (excluding
the exercise price of any warrants issued in the Transaction), and (2) an aggregate restricted stock fee equal to eight percent
(8.0%) of the aggregate number of shares of common stock sold in the Transaction (in the event a convertible security is issued
then the number of shares of common stock that should be issued to Chardan shall be calculated based upon the number of shares
of common stock that the convertible security can be converted into).

 

Section 3.Indemnification. 

 

	(a)		Chardan' Indemnification of the Company. Chardan shall indemnify and hold harmless
the Company, its affiliates and their respective directors, officers, employees, agents, shareholders, members, partners, managers,
and controlling persons (each a "Company Indemnified Person") from and against any and all liabilities, claims, losses,
costs, damages, liabilities, and expenses, joint or several, including reasonable legal fees, costs, and the like to which any
such Company Indemnified Person may become subject, arising from, related to, or otherwise connected with (i) any material breach
by Chardan of any provision of this Agreement, including any representation, warranty, covenant or agreement set forth herein,
(ii) any violation of any applicable law by Chardan, its employees, representatives or (iii) Chardan's gross negligence, willful
malfeasance or reckless disregard of its obligations under this Agreement.

	(b)		Company's Indemnification of Chardan. The Company agrees to indemnify and hold
harmless Chardan, its affiliates and their respective directors, officers, employees, agents, shareholders, members, partners,
managers, and controlling persons (each a "Chardan Indemnified Person") from and against any and all liabilities, claims,
losses, costs, damages, liabilities, and expenses, joint or several, including reasonable legal fees, costs, and the like to which
any such Chardan Indemnified Person may become subject, arising from, related to, or otherwise connected with (i) any material
breach by the Company, its employees or representatives of any provision of this Agreement, including any representation, warranty,
covenant or agreement set forth herein, (ii) any violation of any applicable law by the Company, its employees, or representatives
or (iii) the Company's, its employees or representatives negligence (gross or otherwise), willful malfeasance or reckless disregard
of its obligations under this Agreement

 

Section
4.Expenses; Initial Retainer. The Company shall reimburse Chardan for all of its actual and reasonable out-of-pocket
expenses, including but not limited to reasonable and documented travel, legal fees and other expenses, incurred in connection
with the financing, whether or not the financing is completed (subject to the limitations set forth in the next sentence), subject
to presentation of appropriate documentation evidencing such out-of-pocket expenses. In the event the financing does not close
for any reason, the Company shall only be obligated to pay expenses of up to $2,500 in the aggregate to Chardan, including road
show expenses, subject to presentation of appropriate documentation evidencing such out-of-pocket expenses. In the event that
a Transaction is consummated, the Company shall only be obligated to pay expenses of up to $25,000 in the aggregate to Chardan.
Chardan will not bear any of the Company's legal, accounting, printing or other expenses in connection with any transaction considered
or consummated hereby. It also is understood that Chardan will not be responsible for any fees or commissions payable to any finder
or to any other financial or other advisor utilized or retained by the Company, except that Chardan shall pay the fees and commissions
of members of Chardan's selling group in the Transaction (it being understood by the parties that Chardan, and not the Company,
shall be responsible for the payment of any fees, if any, due and owing to any advisor it engages unless expressly agreed otherwise).

 

Section
5.Right of First Refusal. In the event that the Transaction is consummated, the Company will grant Chardan a twelve
(12) month right of first refusal to act as lead underwriter or placement agent on any future capital raising transactions involving
the Company's securities in which the Company elects to engage an investment banker or placement agent.

 

    	 	 	 

    	 

    

Section
6.Chardan's and the Company's Relationships with Others. The Parties acknowledge and agree that Chardan is engaged
on a non-exclusive basis and that the Company is free to retain others to perform the same or similar services that are being
provided by Chardan. Similarly, the Company acknowledges that Chardan and its affiliates are in the business of providing investment
banking, financial advisory and consulting services to others and agrees that the provision of such services shall not constitute
a breach hereof of any duty owed to the Company by virtue of this Agreement. Nothing contained herein, other than Chardan's obligations
relating to the Company's Confidential Material as provided in Section 7 below, shall be construed to limit or restrict Chardan
or its respective affiliates in conducting such businesses with respect to others or in rendering such services to others. Chardan
is duly registered with the United States Securities and Exchange Commission (the "SEC") under Section 15 of
the Securities Exchange Act of 1934, as amended, as a broker-dealer and is a member in good standing of the Financial Industry
Regulatory Authority ("FINRA") and is registered in those states in which it is required to be so registered
in order to perform its obligations under this Agreement.

 

Section
7.Confidential Information. In connection with the rendering of services hereunder, Chardan has been or will be
furnished with certain confidential information of the Company including, but not limited to, financial statements and information.
cost and expense data, scientific data, intellectual property, trade secrets, business strategies, marketing and customer data,
and such other information not generally available from public or published information sources. Such information shall be deemed
"Confidential Material", shall be used solely in connection with the provision of services contemplated hereby, and
shall not be disclosed by Chardan without the prior written consent of the Company. In the event Chardan is required by applicable
law or legal process to disclose any of the Confidential Material, Chardan will deliver to the Company prompt notice of such requirement
(by fax or overnight courier promptly following Chardan's knowledge or determination of such requirement) prior to such disclosure
so the Company may seek an appropriate protective order and/or waive compliance of this provision. If, in the absence of a protective
order (because the Company elected to not seek such an order or it was denied by a court of competent jurisdiction) or receipt
of written waiver, Chardan is nonetheless, in the written opinion of its counsel, compelled to disclose any Confidential Material,
Chardan may do so without liability hereunder.

 

Section 8.Limitation Upon the
Use of Advice and Services. 

 

	(a)		No person or entity, other than the Company (including its directors, officers and
employees), shall be entitled to make use of, or rely upon any advice of Chardan to be given hereunder, and the Company shall
not transmit such advice to, or encourage or facilitate the use or reliance upon such advice by others without the prior written
consent of Chardan.

	(b)		The Company hereby acknowledges that Chardan, for services rendered as contemplated
by this Agreement, does not make any commitment whatsoever to make a market in any of the Company's securities on any stock exchange
or in any electronic marketplace. Any decision by Chardan to make a market in any of the Company's securities shall be based solely
on the independent judgment of Chardan's management, employees, and agents.

	(c)		Use of Chardan's name in annual reports or any other report of the Company or releases
by the Company requires the prior written approval of Chardan unless the Company is required by law to include Chardan's name
in such annual reports, other report or release of the Company, in which event the Company shall furnish to Chardan copies of
such annual reports or other reports or releases using Chardan's names in advance of publication by the Company.

 

Section
9.Information; Cooperation. The Company will cooperate with and will furnish Chardan with all reasonable information
and data concerning the Company and the financing which Chardan deems appropriate and will provide Chardan with reasonable access
to the Company's officers, directors, employees, independent accountants and legal counsel (provided that Chardan shall not communicate
directly with any such parties without the prior written or email authorization of the President, Chief Executive Officer, or
Chief Financial Officer of the Company). The Company represents that all information and any disclosure materials made available
to Chardan for distribution to investors will be complete and correct in all material respects and will not contain any untrue
statement of material fact or omit to state a material fact necessary in order to make the statements therein not misleading in
light of the circumstances under which such statements are made. The Company further represents and warrants that to the extent
any projections are furnished, such projections will have been prepared in good faith and will be based upon assumptions, which,
in light of the circumstances under which they are made, are reasonable. Chardan shall not deliver to any prospective investors
any information concerning the Company, unless the Company has previously consented to the distribution of such information.

 

Section 10.Miscellaneous. 

 

	(a)		Any notice or communication between the parties hereto shall be sufficiently given
if sent by certified or registered mail, postage prepaid, or faxed and confirmed if to the Company, addressed to it at: 2247 Federal
Blvd., Denver, CO 80202, or if to Chardan, addressed to them at: 150 East 58th Street, 28th Floor, New York. NY 10155. Such notice
or other communication shall be deemed to be given on the date of receipt.

	(h)		This Agreement embodies the entire agreement and understanding between the Company
and Chardan and supersedes any and all negotiations, prior discussions and preliminary and prior agreements and understandings
that Chardan may have had with the Company related to the subject matter hereof, and may be modified only by a written instrument
duly executed by each party. This Agreement shall inure to the benefit of and be binding upon the successors, assigns and personal
representatives of each of the parties hereto. This Agreement has been duly authorized, executed and delivered by and on behalf
of the Company and Chardan.

	(c)		This Agreement shall be deemed to have been made and delivered in New York City and
shall be governed as to validity, interpretation, construction, effect and in all other respects by the internal laws of the State
of New York without regard to principles of conflicts of law thereof. Any and all disputes, controversies or claims arising out
of or relating to this Agreement, or the breach, termination or invalidity thereof, shall be finally and exclusively resolved
by arbitration in accordance with the Rules of FINRA as at present in force. The arbitration shall take place in New York City,
the State of New York. The parties hereby submit themselves to the exclusive jurisdiction of the arbitration tribunal in the City
of New York, the State of New York under the auspices of FINRA. To the extent permitted by law, the award of the arbitrators may
include, without limitation, one or more of the following: a monetary award, a declaration of rights, an order of specific performance,
an injunction, reformation of the contract. The decision of the arbitrators shall be final and binding upon the parties hereto,
and judgment on the award may be entered in any court having jurisdiction over the subject matter thereof. Each party to the arbitration
shall bear its own expenses of the arbitration (including without limitation reasonable fees and expenses of counsel, experts
and consultants).

	(d)		This Agreement and the rights hereunder may not be assigned by either party (except
by operation of law) without the other party's prior written consent.

	(e)		Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction
shall, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid
or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the
terms or provisions of this Agreement in any other jurisdiction. If any provision of this Agreement is so broad as to be unenforceable,
the provision shall be interpreted to be only as broad as is enforceable.

	(f)		In rendering the Services, the Parties hereby agree that Chardan shall act as an independent
contractor and that nothing contained in this Agreement shall be construed to create any joint venture, partnership, employer-employee
or any other type of relationship between the Company and Chardan. It is further understood and agreed that this Agreement does
not create a fiduciary relationship between Chardan and the Company or their respective Boards of Directors. Chardan shall not
be considered to be the agent of the Company for any purpose whatsoever and Chardan is not granted any right or authority to assume
or create any obligation or liability, express or implied, on behalf of the Company, or to bind the Company in any manner whatsoever.

 

Section
11. Termination. The term (the "Term") of Chardan's engagement hereunder shall commence on the date hereof
and end on December 31, 2015; provided however that this Agreement can be terminated early by either party on five (5) days after
receipt of written notice of termination for any reason after the five (5) month anniversary of the Agreement.

 

In addition, in the event this Agreement shall be terminated in accordance with
the provisions of this Section 11 or upon expiration of this Agreement, neither party shall have any further rights or
obligations hereunder, except that (i) no termination of this Agreement shall affect any rights or obligations that shall
have accrued hereunder prior to the effective date of termination, and (ii) the sections headed "Confidential
Information," "Indemnification," "Miscellaneous," , and "Limitation of Liability" shall
survive after any termination for a period of one (1) year after termination.

 

Section 12.Limitation of Liability. The liability of Chardan pursuant
to this Engagement Letter shall be limited to the Placement Fee received by Chardan hereunder, which shall not include any liability
for incidental, consequential or punitive damages, except that no such limitations shall apply to (i) any indemnification obligation
under Annex A hereto, (ii) any breach by Chardan of Section 7 hereof or the last sentence of Section 9 hereof or (iii) damages
resulting from the bad faith, gross negligence, willful misconduct, or intentional breach of this Agreement by Chardan.

 

Section
13.Provision for Alternative Outcomes. In the event that other services are requested by the Company, the parties
hereto shall negotiate in good faith to determine a mutually acceptable level of compensation in such an eventuality.

 

We are delighted to accept
this engagement and look forward to working with you on this assignment. Please confirm that the foregoing is in accordance with
your understanding by signing and returning to us one copy of this enclosed duplicate of this agreement.

 

Very truly yours,

CLARDIN CAPITAL MARKETS, LLC 

 

	By:		
	 	 	 

Steven Urbach

	 	 	President

 

Agreed to and Accepted this 3rd day of March,
2015

 

MASSROOTS, INC.

 

By: /s/ Isaac Dietrich 

Chief Executive Officer

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