Document:

ADVISORY
AGREEMENT 

 

THIS
ADVISORY AGREEMENT (the “Agreement”) is entered into on this _____ day of June (“Effective Date”),
by and between Electrum Partners, LLC (“Company” or “EP”), a Nevada limited liability company with offices
located at 3571 East Sunset Road, Suite 300, Las Vegas, NV 89120, and Indoor Harvest Corp (“Client”) a corporation
duly formed, in good standing and operating under the laws of Texas with a primary address at 5300 East Freeway, Suite A, Houston,
TX 77020.

 

RECITALS

 

	 	A.	Company
    is a consulting firm with expertise and contacts in the legal Cannabis Industry (“Industry”). This includes close
    ties with many of the businesses in the Industry on a nationwide-basis, familiarity with business operations, marketing and
    branding, key political operators, political initiatives, and a broad network of business operators, investors, financial
    institutions and other involved parties.
	 	 	 
	 	B.	Client
    is interested in engaging Company to provide specific services assisting Client to operate in the Cannabis industry.

 

NOW
THEREFORE, the parties hereto agree as follows:

 

	1)	Services

 

Company
will provide advisory services to Client as set forth in Exhibit A attached hereto “Services”.

 

	2)	Compensation
    

 

	 	a)	Client
    will compensate Company as set forth in Exhibit B, attached hereto “Compensation”.
	 	 	 
	 	b)	All
    payments described in Exhibit B consisting of cash shall be made in U.S. Dollars and submitted electronically as follows

 

	ACH/Direct
    Deposit	Bank
    Name:	Wells
    Fargo Bank 
	 	 	 
	 	i.Name
    of Account Holder: 	Electrum
    Partners, LLC 
	 	ii.Routing
    Number: 	321270742
    
	 	iii.Account
    Number: 	5252435481
    

 

 

 

Electrum
                                         Partners, LLC

3571
East Sunset Road, Suite 300 Las Vegas, Nevada 89120

www.electrumpartners.com

 

    	 

    	 	 	 

    

 

	3)	Acceleration
    and Late Fees

 

	 	a)	If
    Client fails to pay by due date for any payment due hereunder, Client will have ten (10) days to cure (“Cure Period”)
    after the date that Notice to Cure is sent to Client by Company, which Notice will be effective if sent by 1st class mail
    and/or email. If delinquent payment is not received by Company within the Cure Period, all payments due hereunder will accelerate
    and the full balance of the complete unpaid amount will be immediately due and payable to Company.
	 	 	 
	 	b)	Late
    fees (“Late Fees”) shall be added to any amount of money due to Company pursuant to this Agreement which have
    not been paid by the due date (“Unpaid Principal”). The Late Fees will be 1.5% per month of all Unpaid Principal
    and will continue to accumulate until the Unpaid Principal is paid in full. Payments tendered to Company will be credited
    against Late Fees before any payments are credited against the Unpaid Principal.

 

	4)	Independent
    Contractor

 

Both
Client and Company agree that Company is an independent contractor in the performance of its duties under this Agreement. Nothing
contained in this Agreement shall be construed to imply that Company, or any employee, agent or other authorized representative
of Company, is a partner, joint venturer, agent, officer or employee of Client. Neither party shall have the authority or right
to bind the other party to any agreement with a third party except that Company will have the right to bind Client to certain
contracts with prior written approval of Client.

 

	5)	No
    Legal or Accounting Advice

 

Although
Company will work Client’s attorneys and accountants where appropriate and necessary, Company will not undertake to provide
any legal or accounting advice to Client.

 

	6)	Term
    /Termination

 

The
Term, and any additional Termination provisions for this Agreement are set forth in Exhibit C, attached hereto (as “Term/Termination)

 

	7)	Mutual
    Confidentiality, Non-Disclosure and Non-Circumvent

 

	 	a)	During
    the term of this Agreement, the parties may disclose information to each other, which shall remain confidential. For purposes
    of this Agreement, “Information” shall mean any information, whether written, digital or verbal, which has been,
    or during the Term of this Agreement will be, furnished or disclosed by the party disclosing the Information (the “Discloser”)
    or its employees, consultants or agents, pertaining to or regarding the business, financial condition, sales, research, strategies,
    products, developments, methodologies, techniques, processes, plans, customers, distributors, suppliers, properties and operations
    of Discloser, and including without limiting the generality of the foregoing, all technical information of any nature whatsoever
    and all techniques, improvements, marketing plans, research or data, budgets, projections, forecasts, financing plans, time
    lines for implementation, inventions, trade secrets, know-how, discoveries, patents, patent applications, products, products
    in development, pricing, services, data, formulas, formulations, recipes, compositions, unpublished databases, clinical study
    results and protocols, access codes, computer programs, processes, drawings, designs, research, plans or specifications relating
    thereto.

 

 

 Electrum
                                         Partners, LLC

3571
East Sunset Road, Suite 300 Las Vegas, Nevada 89120

www.electrumpartners.com

 

    	 

    	 	 	 

    

 

	 	b)	The
    party receiving the Information (the “Recipient”) agrees that it shall keep the Information of the Discloser confidential
    in that it shall only use the Information in furtherance of the purposes of this Agreement and shall not disclose the Information
    to any 3rd party unless expressly permitted otherwise herein or by additional written agreement of the parties (“Obligation
    of Confidentiality”).
	 	 	 
	 	c)	Notwithstanding
    the foregoing, Discloser agrees that Recipient shall have no Obligation of Confidentiality with respect to any Information
    which:

 

	 	i)	is
    already rightfully known to Recipient; or
	 	ii)	is
    or becomes publicly known through no wrongful act of Recipient; or
	 	iii)	is
    rightfully obtained by Recipient from a third party without similar restriction and without breach of this Agreement; or
	 	iv)	is
    independently developed by Recipient without breach of this Agreement; or
	 	v)	is
    disclosed pursuant to a Court order or as required by an agency of the United States Government under its applicable regulations,
    provided, however, that in such event Recipient shall notify Discloser in writing not less than 21 days in advance of any
    disclosure or planned disclosure.

 

	 	d)	Discloser
    and Recipient further agree that the Information disclosed pursuant to this Agreement shall not include any third party proprietary
    or confidential information.
	 	 	 
	 	e)	Discloser
    shall retain title to all forms of the Information, including, but not limited to, written documentation disclosed pursuant
    to this Agreement and all copies thereof. Recipient shall not copy or reproduce, in whole or in part, any Information without
    written authorization from Discloser, except as reasonably required to accomplish the purposes stated in this Agreement.
	 	 	 
	 	f)	The
    Parties agree that, notwithstanding anything contained herein to the contrary, the Obligation of Confidentiality shall expire
    two years from the disclosure of any confidential Information, and shall survive the termination of this Agreement.

 

	8)	Press
    Releases or Other Publicity

 

Client
will not issue any press releases, public statements or public comment regarding this Agreement or its relationship with Electrum
Partners, without the express written consent of Electrum Partners.

 

	9)	Expenses

 

Client
understands that throughout the course of providing its services, Electrum Partners may have out-of-pocket costs that will be
required to be reimbursed, or paid for directly, by Client. Limited out-of-pocket costs, including travel, third parties, licensing/filing
fees, etc., will be the responsibility of Client. Any and all reimbursable expenses shall be pre-approved by Client.

 

 

 

Electrum
Partners, LLC

3571
East Sunset Road, Suite 300 Las Vegas, Nevada 89120

www.electrumpartners.com

 

    	 	 

    	 

    

 

	10)	Other
    Clients

 

Nothing
in this Agreement shall prevent Company from working for, representing or assisting other clients or customers for any reason
in any capacity.

 

	11)	Non-Solicitation/Non-Hire

 

During
the Term, and for two (2) years following the Termination of this Agreement, Client will not, and will cause its Affiliates not
to, directly or indirectly, solicit for employment or hire or employ or seek to entice away from the Company or any of its Affiliates
any employee of the Company or any of its Affiliates; provided, however, that this section shall not prohibit any advertisement
or general solicitation (including through the use of executive recruiters) that is not specifically targeted at employees of
the Company and its Affiliates, or prevent Client from offering employment to or employing, persons who respond to such advertisements
or such general solicitations. Affiliates means any business concern, organization or individual under common control, by majority
ownership or management contract

 

	12)	Representations
    and Warranties

 

Client
represents and warrants that:

 

	 	a)	it
    is duly organized, validly existing and in good standing under the laws of the Jurisdiction of its formation;
	 	b)	that
    it is properly licensed, authorized and permitted in any jurisdiction in which it conducts business;
	 	c)	that
    it has carefully read and understood this Agreement;
	 	d)	that
    it has full authority to enter into this Agreement and into the transactions contemplated hereby; and 
	 	e)	that
    entry into this Agreement will not conflict or cause conflict with the rights of any third parties who are not parties to
    this Agreement.

 

	13)	Binding
    Effect

 

This
Agreement shall be binding upon and inure to the benefit the parties and their respective heirs, successors and permitted assigns.

 

	14)	Counterparts;
    Facsimile & Electronic Signatures

 

This
Agreement may be executed simultaneously in one or more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. The Parties agree that facsimile or digital signatures, such as those used
in DocuSign, of this Agreement shall be deemed a valid and binding execution of this Agreement.

 

 

 Electrum
                                         Partners, LLC

3571
East Sunset Road, Suite 300 Las Vegas, Nevada 89120

www.electrumpartners.com

 

    	 

    	 	 	 

    

 

	15)	Notices
    & Contact Information

 

For
Notices to Company:

Electrum
Partners, LLC

ATTN: General Counsel

3571 East Sunset Road, Suite 300

Las Vegas, NV 89120

notices@electrumpartners.com

 

For
Client Notices:

 

Indoor
Harvest Corp

ATTN:
Dan Weadock

5300
East Freeway, Suite A

Houston,
TX 77020

dweadock@indoorharvest.com

 

	16)	Jurisdiction

 

Jurisdiction
and venue for any dispute, claim, or any other legal proceedings, in relation to this Agreement, lies in Clark County, Nevada.
This Agreement shall be deemed to be a contract made under the laws of the State of Nevada and for all purposes shall be governed
by and construed in accordance with the laws of said state without regard to its conflict of law principals.

 

	17)	Arbitration

 

Controversies
or claims arising out of or relating to this Agreement, or the breach thereof, shall be resolved by the American Arbitration Association
pursuant to its Rules of Commercial Arbitration, and judgment upon the award rendered by the arbitrator(s) may be entered in any
court having jurisdiction thereof, Arbitration hearings shall occur in Clark County, Nevada after an attempt is made by both parties
to resolve the issue amicably. The prevailing party will be entitled to recover its reasonable attorney’s fees and costs.

 

	18)	Limitation
    of Damages

 

Company
shall not be liable to Client for any claim or damages of any kind, including, without limitation, any incidental, consequential,
collateral damages, or lost profits that may arise or result from Company’s activities as contemplated hereunder, whether
such claim be based on warranty, contract, tort or any other legal theory, even if Company has been advised of the possibility
if such damages in advance, except for the case where Company may have been found by a duly authorized body of competent and final
jurisdiction to have acted with willful misconduct. Notwithstanding the foregoing disclaimer, if a court or arbitrating body of
competent jurisdiction determines that Company is liable for losses or damages for any reason, in no event shall the total liability
exceed the amount of cash compensation paid to Company as provided herein.

 

	19)	Waiver

 

No
waiver by a party of any provision of this Agreement shall be considered a waiver of any other provision or any subsequent breach
of the same or any other provision.

 

 

 Electrum
                                         Partners, LLC

3571
East Sunset Road, Suite 300 Las Vegas, Nevada 89120

www.electrumpartners.com

 

    	 

    	 	 	 

    

 

	20)	Assignment

 

This
Agreement shall not be assignable by either party without written permission by the other party.

 

	21)	Severability

 

If
any condition or covenant herein contained is held to be invalid or void by any court of competent jurisdiction, the same shall
be deemed severable from the remainder of this Agreement and shall in no way effect the other covenants and conditions contained
herein.

 

	22)	Multiple
    Parties

 

If
more than one person or entity, or any combination thereof executes this Agreement on behalf of Client, each will be held jointly
and severally liable for the obligations of Client.

 

	23)	Entire
    Agreement

 

This
is a complete agreement. It contains the entire understanding and agreement between the parties about the subject matter contained
herein and supersedes any prior agreements. This Agreement may be amended only by a written document executed by all parties hereto.

 

	24)	Headings

 

The
section headings contained in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation
of this Agreement.

 

	25)	Construction

 

The
language in all parts of this Agreement shall be in all cases construed according to its fair meaning and not strictly for or
against either party.

 

[Signature
Page Follows]

 

 

 

Electrum
Partners, LLC

3571
East Sunset Road, Suite 300 Las Vegas, Nevada 89120

www.electrumpartners.com

 

    	 	 

    	 

    

 

IN
WITNESS WHEREOF, the Client and Company have executed this Agreement as of the date first set forth above.

 

	ELECTRUM
    PARTNERS, LLC:	 	INDOOR
                                         HARVEST CORP.

	 	 	 	 	 
	By:	 	 	By:	
	Name:	Leslie Bocskor	 	Name:	Daniel
                                         Weadock

        

	Title:	President	 	Title:	Chief Executive
    Officer

 

 

 Electrum
                                         Partners, LLC

3571
East Sunset Road, Suite 300 Las Vegas, Nevada 89120

www.electrumpartners.com

 

    	 

    	 	 	 

    

 

EXHIBIT
A 

SERVICES

Electrum
Partners, LLC will provide Business Strategy Advisory Services for Indoor Harvest Corp.

 

Objectives:

 

	 	1.	Work
    with INDQ senior management team to bring in appropriate and vetted capital partners from our extensive network of sources,
    to facilitate the company’s capital formation goals of raising three tranches over a 24-month period; an initial tranche
    of $1mm in Phase 1, a second raise of $Xmm+ by end of Phase 2, followed by a third raise of $Xmm+ by the end of Phase 3.
	 	2.	Provide
    guidance, expertise, and associated data so that INDQ can determine what path to follow in the development and delivery of
    a communications strategy, overarching business strategy, ideal business structures and public markets strategies all focused
    on driving shareholder value
	 	3.	Make
    available pertinent information relating to industry trends and key strategies for success
	 	4.	Facilitate
    and collaborate on conversations with bankers, investors, and potential partners for the company’s growth, market reputation,
    institutional awareness and support.
	 	5.	Identify,
    vet, and deliver potential strategic partners and business development opportunities that align with INDQ initiatives
	 	6.	Assist
    in the identification of new markets, domestic and international for adult use and MMJ markets and jurisdictions, where in
    line with company goals
	 	7.	Provide
    key insights revolving around government affairs and relationships that will benefit INDQ’s initiatives
	 	8.	Work
    with INDQ senior management team to bring in appropriate and vetted Merger and/or Acquisition candidates that meet INDQ’s
    goals for revenue and fit with the INDQ plan, through the Electrum Partners Network, and work with the INDQ team through every
    element of any transaction.

 

	●	Services:

 

	 	○	Phase
    1: Months 1 - 8

 

	 	●	Receive
    and review all necessary INDQ internal documents relevant to the project
	 	●	Develop
    a plan (capital stack) for raising necessary capital over the 24-month term of this engagement.
	 	●	In
    conjunction with the INDQ team, answer the questions of requirements and timing for hiring key professionals to expedite the
    plan and facilitate decision making process for what path INDQ will follow
	 	●	Decision
    points about public markets structure and approach as it regards spinoffs, consolidation and segregation of assets
	 	●	Assist,
    with the cooperation of the INDQ team, in the raising of $1M in capital – if this cannot be completed by the end of
    month 6, the process will be near completion

 

 

 Electrum
                                         Partners, LLC

3571
East Sunset Road, Suite 300 Las Vegas, Nevada 89120

www.electrumpartners.com

 

    	 

    	 

    

 

	 	○	Phase
    2: Months 9 – 16

 

	 	●	With
    initial defined structure based on previous decision points, we will assist the INDQ team in the implementation of all strategic
    elements of the plan.
	 	●	Relationships,
    recommendations and timing on
	 	 	 
	 	 	●	Investment
    Bankers/Broker Dealers
	 	 	●	Investor
    Relations team/firm
	 	 	●	Public
    markets structure and approach as it regards spinoffs, consolidation and segregation of assets
	 	 	●	Securities
    Attorneys recommendations and strategy - who, when, where (existing or additional)
	 	 	●	Auditors
    and Audits recommendations and strategy - who, when, where (existing or additional)
	 	 	●	Strategy
    and recommendations on C-Level team building for key functions for public markets effectiveness and success
	 	 	●	Strategy
    and recommendations on Board of Directors membership and structure
	 	 	 	 
	 	●	All
    materials for INDQ that will affect the outcome and valuation of INDQ for Phase 2 and 3 Raise efforts ($Xmm+) to be reviewed
    and if needed revisited and revised. Electrum will provide feedback and guidance and final document production will be by
    the INDQ team.
	 	●	Continue
    to monitor the performance of, and advise on strategy and changes to, all materials for INDQ that will affect the outcome
    and valuation of INDQ for Phase 3 capital raise ($5mm+) to be reviewed and if needed continually revisited and adjusted. 

 

These
include:

 

	 	●	Offering
    documents
	 	●	Websites
    and Social media platform presence
	 	●	PR
    profile and overall market awareness and presence
	 	●	Foundational
    Corporate documents
	 	●	All
    financial documents, both current and projected

 

Electrum
will provide feedback and guidance. Any final document production will be created by the INDQ team.

 

	 	●	Develop
    Strategy and implementation of a Business Development and Partnership program to identity and develop the ideal partnerships
    and projects to enhance valuation, attractiveness of the project and generate revenue.
	 	●	Assist,
    with the cooperation of the INDQ team, in the raising of $Xmm in capital – All preparation activities to be completed
    by the end of month 8, so the process will be ready for a Phase 2 and 3 executions, in either the public markets or through
    private market direct investors (PIPE), debt structures or other appropriate transaction types.

 

 

 Electrum
                                         Partners, LLC

3571
East Sunset Road, Suite 300 Las Vegas, Nevada 89120

www.electrumpartners.com

 

    	 

    	 

    

 

	 	○	Phase
    3: Months 17 – 24

 

	 	●	With
    final defined structure based on previous decision points, we will assist the INDQ team in the implementation of all strategic
    elements of the plan.
	 	●	Continue
    to curate and manage relationships, providing recommendations and strategy for optimal outcomes from each of the following:
	 	 	 	 
	 	 	●	Investment
    Bankers/Broker Dealers
	 	 	●	Investor
    Relations and Public Relations firms
	 	 	●	Broker
    Dealers, Investment Funds, and other key institutional support
	 	 	●	Securities
    Attorneys 
	 	 	●	Auditors
	 	 	●	Strategy
    and recommendations on C-Level team building for key functions (CFO, etc.) for public markets effectiveness and success
	 	 	●	Strategy
    and recommendations on Board of Directors team building for key functions (outside directors, audit committee, compensation
    committee, etc.) for INDQ’s effectiveness and success in the public markets
	 	 	 	 
	 	●	Continue
    to monitor the performance of, and advise on strategy and changes to, all materials for INDQ that will affect the outcome
    and valuation of INDQ for Phase 3 capital raise ($Xmm+) to be reviewed and if needed continually revisited and adjusted. 

 

These
include:

 

	 	●	Offering
    documents
	 	●	Websites
    and Social media platform presence
	 	●	PR
    profile and overall market awareness and presence
	 	●	Foundational
    Corporate documents
	 	●	All
    financial documents, both current and projected

 

Electrum
will provide feedback and guidance. Any final document production will be created by the INDQ team.

 

	 	●	Continue
    to provide Strategy and ongoing implementation of a Business Development and Partnership program to identity and develop the
    ideal partnerships and projects to enhance valuation, attractiveness of the project and generate revenue.
	 	●	Ongoing
    strategic assistance and curation, with the cooperation of the INDQ team, in the completion of the capital formation goals
    for Phase 3 of $Xmm+, either in the public markets, or through private markets direct investors (PIPE), or debt structures
    appropriate to the business need, based on decision points made in Phases 1 and 2.

 

In
order to successfully complete this project, Electrum Partners will have its full complement of staff and associated experts in
related fields. We will provide weekly conversations with INDQ, updates, responses to INDQ’s questions, and requests for
input from INDQ.

 

 

 Electrum
                                         Partners, LLC

3571
East Sunset Road, Suite 300 Las Vegas, Nevada 89120

www.electrumpartners.com

 

    	 

    	 

    

 

EXHIBIT
B

COMPENSATION

 

Compensation
for the Services will be provided to Company as follows.

 

1)
Compensation.

 

	 	a)	Cash
    Component. In consideration for the performance of the consulting services described in Schedule A to this agreement,
    Electrum Partners shall be compensated $10,000 each month (“Monthly Fee”) for the term of this agreement. The
    initial payment will be due immediately upon the execution of this agreement, and following payments will be due on the 1st
    of every subsequent month for the Term of this Agreement. 
	 	 	 
	 	 	Payment
    Schedule as follows:
	 	 	 
	 	 	Electrum
    Partners agrees to defer Monthly Cash Fees accrued from Execution Date until Sept 15th, 2018, at which time Monthly
    Payments begin as normal per the above. Defferment of such accrued Cash Fees will continue until such time as Client raises
    $1,000,000.00 at any time after execution of this Agreement, via any means, at which time all accrued deferred payments will
    become immediately due and payable by Client to Company.
	 	 	 
	 	b)	Equity
    Component. Client shall grant to Electrum Partners (or an entity controlled by Electurm such that Electrum is deemed to
    be the sole beneficial owner under Rule 13d-3 promulgated under the Exchange Act) an aggregate of 924,500 shares of restricted
    common stock of the Company, representing 3.7% interest in the Company, consistent with the grant and vesting schedule set
    forth in the table below; provided, however, that no grant shall be made, and no shares shall be issued with respect to any
    grant, if Electrum is not contracted by the Company on the respective date of grant as set forth in the table below.

 

	Date
    of Grant	 	Number
    of Shares	 	 	Date
    of Vesting
	Effective
    Date of Agreement	 	 	424,500	 	 	Effective
    Date
	July 1, 2018	 	 	50,000	 	 	August
    1, 2018
	August 1,
    2018	 	 	50,000	 	 	September
    1, 2018
	September
    1, 2018	 	 	50,000	 	 	October
    1, 2018
	October 1,
    2018	 	 	50,000	 	 	November
    1, 2018
	November,
    2018	 	 	50,000	 	 	December
    1, 2018
	December 1,
    2018	 	 	50,000	 	 	January
    1, 2019
	January 1,
    2019	 	 	50,000	 	 	February
    1, 2019
	February 1,
    2019	 	 	50,000	 	 	March
    1, 2019
	March 1, 2019	 	 	50,000	 	 	April
    1, 2019
	April 1, 2019	 	 	50,000	 	 	May
    1, 2019
	Total	 	 	924,500	 	 	 

 

With
respect to each grant set forth in the table above, the shares subject to that grant will only vest if Electrum is contracted
under the terms of this agreement on the date of vesting as set forth in the table above. If Electrum is not deemed under contract
on a particular date of vesting, the shares that are subject to that grant will be forfeited by Electrum.

 

	 	c)	In
    addition, if the Company, or any of its affiliates are funded or acquired by means of merger, consolidation, joint venture,
    exchange offer, purchase of securities or assets, or other transactions, by an entity, as a result of an introduction made
    by Electrum Partners during the period of this Agreement, or at any time prior to the second (2nd) anniversary
    of the execution of this agreement, regardless of any execution of the early termination clause (exhibit3.2), or if the Company
    uses the services of Electrum Partners in conducting or assisting in negotiations in structuring a transactions with any party,
    the Company shall vest all ownership previously granted on an accelerated basis, 100% of the unvested shares, at the closing
    of said transaction. 

 

 

 

Electrum
Partners, LLC

3571
East Sunset Road, Suite 300 Las Vegas, Nevada 89120

www.electrumpartners.com

 

    	 

    	 

    

 

EXHIBIT
C

TERM/TERMINATION

 

	 	1.	Term.
    This Agreement shall commence on the Effective Date for an initial term of Two Years (24 months) and shall be renewed for
    successive One Year (12-month) periods unless either party serves written notice of non-renewal a minimum of 60 days prior
    to the any renewal term. 
	 	 	 
	 	2.	Early
    Termination. After 90 days from the Effective Date, either party may terminate this Agreement for any reason or no reason
    by providing 30 days written Notice of Termination (“30 Day Notice” or the “Notice”) to the other
    party. In such circumstance this Agreement will terminate 30 days after receipt of Notice with all obligations hereunder continuing
    until such 30-day termination. 
	 	 	 
	 	3.	Upon
    termination, each party will be relieved of their obligations hereunder except for those which expressly survive termination.

 

 

 

Electrum
Partners, LLC

3571
East Sunset Road, Suite 300 Las Vegas, Nevada 89120

www.electrumpartners.comEX-10.1

 EXHIBIT 10.1 
  

							
	

	  	  
       CEO TWO-YEAR CASH-BASED
 PERFORMANCE AWARD
AGREEMENT

  

							
	 GRANTED TO
	  	 GRANT DATE
	  	 AMOUNT OF AWARD ($)
	  	 SOCIAL 

SECURITY NUMBER

	 <Name>
  

<Street Address>
  

<City>, <State> <Zip Code>
	  	mm/dd/yyyy	  	 Threshold Amount:
  

Target Amount:
  

Maximum Amount:
	  	xxx-xx-xxxx
		  		  		  	

  

	1.	This Agreement. This agreement, together with Exhibit A and Exhibit B (collectively, the “Agreement”), sets forth the terms and conditions of a performance award representing the right to
receive a cash payment and a deferred cash payment from Apogee Enterprises, Inc., a Minnesota corporation (the “Company”). This Agreement is issued pursuant to the Apogee Enterprises, Inc. 2009 Stock Incentive Plan, as amended from
time to time (the “Plan”), and subject to its terms. 

  

	2.	The Grant. The Company hereby grants to the individual named above (the “Employee”), as of the above Grant Date, a performance award representing the right to receive a cash value up to
the maximum amount set forth above, subject to the requirements of this Agreement and the terms of the Plan (the “Performance Award”). 

  

	3.	Performance Period. The “Performance Period” for purposes of determining the cash value shall be fiscal year 20__ through and including fiscal year 20__. 

 

	4.	Performance Goals. The performance goals for purposes of determining the cash value are set forth in the attached Exhibit B. 

  

	5.	Payment. Subject to the terms and conditions of this Agreement, the amount of cash that becomes payable to the Employee pursuant to this Performance Award (the “Cash Value”) will be based on
whether and to what extent the threshold, target or maximum performance level of the performance goals is achieved, as set forth in the attached Exhibit B and as determined by the Compensation Committee of the Company’s Board of Directors (the
“Committee”) in its sole discretion. The threshold, target and maximum amounts set forth above represent the Cash Value amount that becomes payable to the Employee if the Company achieved all of the performance goals at the
threshold, target or maximum level, respectively. The Employee will receive a Cash Value pursuant to this Performance Award if one or more performance goals is achieved at or above the threshold level. The determination of the Cash Value amount will
occur as soon as practicable after the Committee determines, in its sole discretion after the end of the Performance Period (or, in the case of a Change in Control (as defined in the Plan), after the Truncated Performance Period, as applicable),
whether, and the extent to which, the performance goals have been achieved (the “Determination Date”). The Committee will divide the Cash Value such that 82.8% of the Cash Value will be the amount to be paid to the Employee (the
“Payment Value”) and the remaining 17.2% of the Cash Value will be the amount to be contributed to the Apogee Enterprises, Inc. 2011 Deferred Compensation Plan (the “Deferred Compensation Plan”)(the
“Deferred Value”). As soon as administratively feasible following the Determination Date (but in no event later than 75 days following the end of the Performance Period), the Company shall 

 

	 	(a)	pay to the Employee one-half of the Payment Value (the “Initial Payment”). On the one year anniversary of the last day of the Performance Period (the
“Fully-Vested Date”), the Company shall pay to the Employee the remaining one-half of the Payment Value (the “Final Payment”), and 

 

	 	(b)	credit the Deferred Value to a notional account established under the Deferred Compensation Plan (the “LTI Account”). Thereafter, the LTI Account shall be credited with earnings, gains or losses in
accordance with the terms of the Deferred Compensation Plan. 

  

	6.	Termination of Employment. In the event the Employee’s employment is terminated prior to the last day of the Performance Period, this Performance Award and any unpaid Cash Value pursuant to this Agreement
shall be immediately and irrevocably forfeited unless the Employee’s employment is terminated under the circumstances described below. In the event the Employee’s employment is terminated prior to the Fully-Vested Date, the Final Payment
shall be immediately and irrevocably forfeited, unless the Employee’s employment is terminated under the circumstances described below. 

 In the event the Employee’s employment is terminated prior to the end of the Performance
Period by reason of a Qualifying Termination the Employee or the Employee’s estate, as applicable, shall be entitled to receive a pro-rata portion (based on the amount of time elapsed between the
beginning of the Performance Period and the date of termination) of the Payment Value determined under paragraph 5 above, and the LTI Account shall be credited with a pro-rata portion of the Deferred Value, to
the extent that the threshold, target or maximum performance level of the performance goals is achieved, as set forth in the attached Exhibit B and as determined by the Committee in its sole discretion. In the event the Employee’s employment is
terminated after the end of the end of the Performance Period by reason of a Qualifying Termination, the Employee or the Employee’s estate, as applicable, shall be entitled to receive the Initial Payment (if not yet paid to the Employee) and
the Final Payment, and the LTI Account shall be credited with the Deferred Value (if not yet credited to the Deferred Compensation Plan). 
  

	7.	Change in Control. If a Change in Control of the Company occurs during the Performance Period, then for purposes of determining the Cash Value amount, the Performance Period shall be deemed to end on the date of
the Change in Control (the shortened Performance Period is referred to herein as the “Truncated Performance Period”). The Cash Value amount will be based on the extent of achievement of the threshold, target or maximum performance
level of the performance goals, as adjusted for the Truncated Performance Period and determined by the Committee in its sole discretion. 

The Payment Value portion of the Cash Value to be paid to the Employee pursuant to this section shall be paid in full in a single lump sum
payment as soon as administratively feasible following the Determination Date (but in no event later than 60 days following the end of the Truncated Performance Period). If a Change in Control of the Company occurs after the Performance Period, then
the Employee shall be entitled to receive the Initial Payment (if not yet paid to the Employee) and the Final Payment as soon as administratively feasible following the date of the Change in Control (but in no event later than 60 days following the
date of the Change in Control). 
 The LTI Account shall be credited with the Deferred Value portion of the Cash Value pursuant to this
section as soon as administratively feasible following the date of the Change in Control (but in no event later than 60 days following the date of the Change in Control). 
  

	8.	Recoupment. Employee acknowledges, understands and agrees that, notwithstanding anything to the contrary contained herein, the Cash Value and the LTI Account to which Employee is otherwise entitled (or which has
been paid or become vested) is subject to forfeiture or recoupment, in whole or in part, at the direction of the Company’s Board of Directors (the “Board”) if, in the judgment of the Board, events have occurred that are covered
by the Company’s Clawback Policy (as it exists on the date hereof, and as it may be amended from time to time by the Board, the “Clawback Policy”) and the Board further determines, in its sole discretion, that forfeiture or
recoupment of all or part of the Cash Value and the LTI Account is appropriate under all of the circumstances considered by the Board. A copy of the Clawback Policy may be obtained from the Company’s General Counsel upon the Employee’s
request. 

  

	9.	Payment of the LTI Account. The vested LTI Account shall be paid to the Employee in accordance with the terms of the Deferred Compensation Plan; provided, that if the deferral under the Deferred Compensation Plan
may not be given effect under section 409A of the Internal Revenue Code, then the vested LTI Account shall be paid in a lump sum no later than March 15th of the calendar year following the year in
which the right to the LTI Account is no longer subject to a substantial risk of forfeiture. 

  

	10.	Restrictions on Transfer. Neither this Performance Award, nor any right with respect to this Performance Award under this Agreement, may be sold, assigned, transferred or pledged, other than by will or the laws
of descent and distribution, and any such attempted transfer shall be void. 

  

	11.	Income Taxes. The Employee is liable for any federal, state and local income or other taxes applicable upon the grant of this Performance Award and the receipt of any payments pursuant to this Performance Award,
and the Employee acknowledges that he or she should consult with his or her own tax advisor regarding the applicable tax consequences. The Company will satisfy any applicable tax withholding obligations arising from any payment of this Performance
Award by withholding a portion of the cash otherwise to be delivered equal to the amount of such taxes. 

  

	12.	Section 409A. Notwithstanding anything in this Agreement to the contrary, to the extent that this Performance Award constitutes “deferred compensation” subject to Section 409A of
the Internal Revenue Code (the “Code”), this Performance Award will not be payable or distributable upon a Change in Control unless the Company determines in good faith that the Change in Control meets the definition of a change in
ownership or effective control (or change in ownership of a substantial portion of assets) in Section 409A(a)(2)(A)(v) of the Code and applicable guidance thereunder. 

	13.	Acknowledgment. This Performance Award shall not be effective until the Employee dates and signs the form of Acknowledgment below and returns a signed copy of this Agreement to the Company. By signing the
Acknowledgment, the Employee agrees to the terms and conditions of this Agreement, the Plan and the Deferred Compensation Plan, and acknowledges receipt of a copy of the prospectus related to the Plan. 

 

							
	ACKNOWLEDGMENT:	 		 	APOGEE ENTERPRISES, INC.
			
		 		 	By:
	  

EMPLOYEE’S SIGNATURE
	 		 	  

        <Name>

	  
 DATE
	 		 	        Chair, Compensation Committee
			
	  
 SOCIAL
SECURITY NUMBER
	 		 	  
 DATE

  

 EXHIBIT A 

DEFINED TERMS USED IN THE 

CEO TWO-YEAR CASH-BASED 

PERFORMANCE AWARD AGREEMENT 
 The following
terms used in this Agreement have the following meanings: 
 “Affiliate” shall have the meaning ascribed to such term in Rule 12b-2 promulgated under the Securities Exchange Act of 1934, as amended. 
 “Disability” shall mean any
physical or mental condition which would qualify the Employee for a disability benefit under any long-term disability plan maintained by the Company or any Affiliate then employing the Employee. 

“Qualifying Termination” shall mean the Employee’s employment is terminated by reason of: (i) Retirement occurring at least twelve
(12) months after the first day of the Performance Period, (ii) death or (iii) Disability. 
 “Retirement” shall mean the
Employee’s termination of his or her employment relationship with the Company under such circumstances determined to constitute retirement by the Committee in its sole discretion. 

  
 A-1 

 EXHIBIT B 

PERFORMANCE GOALS UNDER THE 

CEO TWO-YEAR CASH-BASED 

PERFORMANCE AWARD AGREEMENT 

Performance Goals for Two-Year Performance Period 

(<Month> <Day>, 20__ – <Month> <Day>, 20__) 

 

							
	 Performance Goal
	  	Threshold	  	Target	  	Maximum
	 Average Return on Invested Capital
 (weighted as
33-1/3%)
	  		  		  	
				
	 Cumulative Earnings Per Share
 (weighted as 33-1/3%)
	  		  		  	
				
	 Cumulative Net Sales
 (weighted as 33-1/3%)
	  		  		  	
				
	Payment Levels	  	50%	  	100%	  	200%

  

	 	•	 	The amount earned by the Employee for performance between the threshold, target and maximum performance levels will be linearly interpolated. 

  
 B-1

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