Document:

Exhibit 10.5

 

PRIVATE PLACEMENT
WARRANTS PURCHASE AGREEMENT

 

This PRIVATE PLACEMENT
WARRANTS PURCHASE AGREEMENT (this “Agreement”) is made as of the [   ] day of January 2021, by and
between Environmental Impact Acquisition Corp., a Delaware corporation (the “Company”) with a principal place
of business at 535 Madison Avenue, New York, New York 10022, and HB Strategies LLC, a Delaware limited liability company (the “Subscriber”),
with a principal place of business at 777 Third Avenue, New York, NY 10017.

 

WHEREAS, the Company
desires to sell to Subscriber on a private placement basis (the “Offering”) an aggregate of 1,750,000 warrants
(the “Placement Warrants”) of the Company in connection with the IPO (as defined below) with each warrant exercisable
to purchase one share of Class A common stock (“Common Stock”), for an aggregate purchase price of $1,750,000,
or $1.00 per Placement Warrant. The shares of Common Stock underlying the Warrants are hereinafter referred to as the “Warrant
Shares”. The Placement Warrants and Warrant Shares, collectively, are hereinafter referred to as the “Securities.”
Each Warrant is exercisable to purchase one share of Common Stock at an exercise price of $11.50 per share during the period commencing
on the later of (i) twelve (12) months from the date of the closing of the Company’s initial public offering of units (the
“IPO”) and (ii) 30 days following the consummation of the Company’s initial business combination (the
“Business Combination”), as such term is defined in the registration statement in connection with the IPO, as
amended at the time it becomes effective (the “Registration Statement”), and expiring on the fifth anniversary
of the Business Combination; and

 

WHEREAS, Subscriber
wishes to purchase 1,750,000 Placement Warrants for a purchase price of $1,750,000 and the Company wishes to accept such subscription
from Subscriber.

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants hereinafter set forth and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Company and Subscriber hereby agree as follows:

 

1. Agreement to
Subscribe

 

1.1. Purchase and Issuance
of the Placement Warrants. Upon the terms and subject to the conditions of this Agreement, Subscriber hereby agrees to purchase
from the Company, and the Company hereby agrees to sell to Subscriber, on the Closing Date (as defined below) the Warrants in consideration
of the payment of the Purchase Price (as defined below). On the Closing Date, the Company shall deliver (via book entry) to Subscriber
the Placement Warrants purchased.

 

1.2. Purchase Price.
As payment in full for the Placement Warrants being purchased under this Agreement, Subscriber shall pay an aggregate of $1,750,000
(the “Purchase Price”) by wire transfer of immediately available funds or by such other method as may be reasonably
acceptable to the Company, no later than one (1) business day prior to the date of effectiveness of the Registration Statement,
in the following: (i) $100,000 shall be remitted to the trust account (the “Trust Account”) maintained by Continental
Stock Transfer & Trust Company, acting as trustee (“Continental”); and (ii) $1,350,000, representing the
balance of the Purchase Price minus $300,000 to be repaid to Subscriber by the Company at closing pursuant to that certain promissory
note dated September 4, 2020, shall be remitted to the Company at a financial institution to be chosen by the Company.

 

1.3. Closing. The closing
of the purchase and sale of the Placement Warrants shall take place simultaneously with the closing of the IPO (“Closing
Date”). The closing of the purchase and sale of the Placement Warrants shall take place at the offices of Ellenoff Grossman
& Schole LLP, 1345 Avenue of the Americas, New York, New York, 10105, or such other place as may be agreed upon by the parties
hereto.

 

1.4 Termination. This
Agreement and each of the obligations of the undersigned shall be null and void and without effect if the IPO does not close prior
to March 31, 2021.

 

     

     

    

 

2. Representations
and Warranties of Subscriber

 

Subscriber represents
and warrants to the Company that:

 

2.1. No Government
Recommendation or Approval. Subscriber understands that no federal or state agency has passed upon or made any recommendation or
endorsement of the Company or the Offering of the Securities.

 

2.2. Accredited Investor.
Subscriber represents that it is an “accredited investor” as such term is defined in Rule 501(a) of Regulation D under
the Securities Act of 1933, as amended (the “Securities Act”), and acknowledges that the sale contemplated hereby
is being made in reliance, among other things, on a private placement exemption to “accredited investors” under the
Securities Act and similar exemptions under state law.

 

2.3. Intent. Subscriber
is purchasing the Securities solely for investment purposes, for Subscriber’s own account (and/or for the account or benefit
of its members or affiliates, as permitted, pursuant to the terms of an agreement (the “Insider Letter”) to
be entered into with respect to the Securities between, among others, Subscriber and the Company, as described in the Registration
Statement), and not with a view to the distribution thereof and Subscriber has no present arrangement to sell the Securities to
or through any person or entity except as may be permitted under the Insider Letter. Subscriber shall not engage in hedging transactions
with regard to the Securities unless in compliance with the Securities Act.

 

2.4. Restrictions on
Transfer. Subscriber acknowledges and understands the Placement Warrants are being offered in a transaction not involving a public
offering in the United States within the meaning of the Securities Act. The Securities have not been registered under the Securities
Act and, if in the future Subscriber decides to offer, resell, pledge or otherwise transfer the Securities, such Securities may
be offered, resold, pledged or otherwise transferred only (A) pursuant to an effective registration statement filed under the Securities
Act, (B) pursuant to an exemption from registration under Rule 144 promulgated under the Securities Act, if available, or (C) pursuant
to any other available exemption from the registration requirements of the Securities Act, and in each case in accordance with
any applicable securities laws of any state or any other jurisdiction. Notwithstanding the foregoing, Subscriber acknowledges and
understands the Securities are subject to transfer restrictions as described in Section 8 hereof. Subscriber agrees that if any
transfer of its Securities or any interest therein is proposed to be made, as a condition precedent to any such transfer, Subscriber
may be required to deliver to the Company an opinion of counsel satisfactory to the Company with respect to such transfer. Absent
registration or another available exemption from registration, Subscriber agrees it will not resell the Securities (unless otherwise
permitted pursuant to the Insider Letter, as described in the Registration Statement). Subscriber further acknowledges that because
the Company is a shell company, Rule 144 may not be available to Subscriber for the resale of the Securities until the one-year
anniversary following consummation of the Business Combination of the Company, despite technical compliance with the requirements
of Rule 144 and the release or waiver of any contractual transfer restrictions.

 

2.5. Sophisticated
Investor.

 

(i) Subscriber is
sophisticated in financial matters and is able to evaluate the risks and benefits of the investment in the Securities.

 

(ii) Subscriber is
aware that an investment in the Securities is highly speculative and subject to substantial risks because, among other things,
the Securities are subject to transfer restrictions and have not been registered under the Securities Act and therefore cannot
be sold unless subsequently registered under the Securities Act or an exemption from such registration is available. Subscriber
is able to bear the economic risk of its investment in the Securities for an indefinite period of time.

 

2.6. Independent Investigation.
Subscriber, in making the decision to purchase the Placement Warrants, has relied upon an independent investigation of the Company
and has not relied upon any information or representations made by any third parties or upon any oral or written representations
or assurances from the Company, its officers, directors or employees or any other representatives or agents of the Company, other
than as set forth in this Agreement. Subscriber is familiar with the business, operations and financial condition of the Company
and has had an opportunity to ask questions of, and receive answers from the Company’s officers and directors concerning
the Company and the terms and conditions of the offering of the Placement Warrants and has had full access to such other information
concerning the Company as Subscriber has requested. Subscriber confirms that all documents that it has requested have been made
available and that Subscriber has been supplied with all of the additional information concerning this investment which Subscriber
has requested.

 

    	 	2	 

     

    

 

2.7 Organization and
Authority. Subscriber is duly organized, validly existing and in good standing under the laws of the State of Delaware and it possesses
all requisite power and authority necessary to carry out the transactions contemplated by this Agreement.

 

2.8. Authority. This
Agreement has been validly authorized, executed and delivered by Subscriber and is a valid and binding agreement enforceable in
accordance with its terms, subject to the general principles of equity and to bankruptcy or other laws affecting the enforcement
of creditors’ rights generally.

 

2.9. No Conflicts.
The execution, delivery and performance of this Agreement and the consummation by Subscriber of the transactions contemplated hereby
do not violate, conflict with or constitute a default under (i) Subscriber’s charter documents, (ii) any agreement or instrument
to which Subscriber is a party or (iii) any law, statute, rule or regulation to which Subscriber is subject, or any agreement,
order, judgment or decree to which Subscriber is subject.

 

2.10. No Legal Advice
from Company. Subscriber acknowledges it has had the opportunity to review this Agreement and the transactions contemplated by
this Agreement and the other agreements entered into between the parties hereto with Subscriber’s own legal counsel and investment
and tax advisors. Except for any statements or representations of the Company made in this Agreement and the other agreements entered
into between the parties hereto, Subscriber is relying solely on such counsel and advisors and not on any statements or representations
of the Company or any of its representatives or agents for legal, tax or investment advice with respect to this investment, the
transactions contemplated by this Agreement or the securities laws of any jurisdiction.

 

2.11. Reliance on Representations
and Warranties. Subscriber understands the Placement Warrants are being offered and sold to Subscriber in reliance on exemptions
from the registration requirements under the Securities Act, and analogous provisions in the laws and regulations of various states,
and that the Company is relying upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and
understandings of Subscriber set forth in this Agreement in order to determine the applicability of such provisions.

 

2.12. No General Solicitation.
Subscriber is not subscribing for the Placement Warrants as a result of or subsequent to any general solicitation or general advertising,
including but not limited to any advertisement, article, notice or other communication published in any newspaper, magazine, or
similar media or broadcast over television or radio, or presented at any seminar or meeting or in a registration statement with
respect to the IPO filed with the Securities and Exchange Commission (the “SEC”).

 

2.13. Legend. Subscriber
acknowledges and agrees the certificates evidencing each of the Securities shall bear a restrictive legend (the “Legend”),
in form and substance substantially as set forth in Section 4 hereof.

 

3. Representations,
Warranties and Covenants of the Company

 

The Company represents
and warrants to, and agrees with, Subscriber that:

 

3.1. Valid Issuance
of Capital Stock. The total number of shares of all classes of capital stock which the Company has authority to issue is 121,000,000
shares of common stock, including 100,000,000 shares of Class A Common Stock and 20,000,000 shares of Class B common stock, $0.0001
par value per share (“Class B Common Stock”), and 1,000,000 shares of preferred stock, $0.0001
par value per share (“Preferred Stock”). As of the date hereof, the Company has issued and outstanding 4,312,500
shares of Class B Common Stock (of which up to 562,500 shares are subject to forfeiture as described in the Registration Statement),
no shares of Class A Common Stock and no shares of Preferred Stock. All of the issued shares of capital stock of the Company have
been duly authorized, validly issued, and are fully paid and non-assessable.

 

3.2 Title to Securities.
Upon issuance in accordance with, and payment pursuant to, the terms hereof and that certain warrant agreement to be entered into
between the Company and Continental, as warrant agent (the “Warrant Agreement”), each of the Placement Warrants
and Warrant Shares will be duly and validly issued, fully paid and non-assessable. On the date of issuance of the Placement Warrants,
the Warrant Shares shall have been reserved for issuance. Upon issuance in accordance with, and payment pursuant to, the terms
hereof and the Warrant Agreement, Subscriber will have or receive good title to the Placement Warrants, free and clear of all liens,
claims and encumbrances of any kind, other than (i) transfer restrictions hereunder and pursuant to the Insider Letter and (ii)
transfer restrictions under federal and state securities laws.

 

    	 	3	 

     

    

 

3.3. Organization and
Qualification. The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State
of Delaware and has the requisite corporate power to own its properties and assets and to carry on its business as now being conducted.

 

3.4. Authorization;
Enforcement. (i) The Company has the requisite corporate power and authority to enter into and perform its obligations under this
Agreement and to issue the Securities in accordance with the terms hereof, (ii) the execution, delivery and performance of this
Agreement by the Company and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary
corporate action, and no further consent or authorization of the Company or its Board of Directors or stockholders is required,
(iii) this Agreement constitutes valid and binding obligations of the Company enforceable against the Company in accordance with
its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance, moratorium,
reorganization, or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies or
by equitable principles of general application and except as enforcement of rights to indemnity and contribution may be limited
by federal and state securities laws or principles of public policy, and (iv) the Placement Warrants, when issued and delivered
in the manner set forth herein, will constitute valid and binding obligations of the Company enforceable against the Company in
accordance with their terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance,
moratorium, reorganization, or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and
remedies or by equitable principles of general application and except as enforcement of rights to indemnity and contribution may
be limited by federal and state securities laws or principles of public policy.

 

3.5. No Conflicts.
The execution, delivery and performance of this Agreement and the consummation by the Company of the transactions contemplated
hereby do not (i) result in a violation of the Company’s certificate of incorporation or by-laws, (ii) conflict with, or
constitute a default under any agreement or instrument to which the Company is a party or (iii) any law statute, rule or regulation
to which the Company is subject or any agreement, order, judgment or decree to which the Company is subject. Other than any SEC
or state securities filings which may be required to be made by the Company subsequent to the closing of the IPO, and any registration
statement which may be filed pursuant thereto, the Company is not required under federal, state or local law, rule or regulation
to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental agency or
self-regulatory entity in order for it to perform any of its obligations under this Agreement or issue the Placement Warrants or
the Warrant Shares in accordance with the terms hereof.

 

4. Legends

 

4.1. Legend. The Company
will issue the Placement Warrants, and when issued, the Warrant Shares, purchased by Subscriber in the name of Subscriber. The
Securities will bear the following Legend and appropriate “stop transfer” instructions:

 

“THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR ANY STATE SECURITIES LAWS AND NEITHER THE SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR
OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR SUCH LAWS OR AN EXEMPTION
FROM REGISTRATION UNDER THE SECURITIES ACT AND SUCH LAWS WHICH, IN THE OPINION OF COUNSEL FOR THIS CORPORATION, IS AVAILABLE.”

 

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO LOCKUP PURSUANT TO AN INSIDER LETTER BETWEEN, AMONG OTHERS, ENVIRONMENTAL
IMPACT ACQUISITION CORP. AND HB STRATEGIES LLC AND MAY ONLY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED DURING
THE TERM OF THE LOCKUP PURSUANT TO THE TERMS SET FORTH IN THE INSIDER LETTER.”

 

    	 	4	 

     

    

 

4.2. Subscriber’s
Compliance. Nothing in this Section 4 shall affect in any way Subscriber’s obligations and agreements to comply with all
applicable securities laws upon resale of the Securities.

 

4.3. Company’s
Refusal to Register Transfer of the Securities. The Company shall refuse to register any transfer of the Securities, if in the
sole judgment of the Company such purported transfer would not be made (i) pursuant to an effective registration statement filed
under the Securities Act, or pursuant to an available exemption from the registration requirements of the Securities Act and (ii)
in compliance herewith and with the Insider Letter.

 

4.4 Registration Rights.
Subscriber will be entitled to certain registration rights with respect to the Securities, purchased pursuant to this Agreement,
among others, which will be governed by a registration rights agreement (“Registration Rights Agreement”) to
be entered into between, among others, Subscriber and the Company, on or prior to the effective date of the Registration Statement.
The Registration Rights Agreement shall be acceptable to Subscriber in form and substance.

 

5. Waiver of Liquidation
Distributions.

 

Solely with respect
to the Warrant Shares underlying the Placement Warrants purchased pursuant to this Agreement, Subscriber hereby waives any and
all right, title, interest or claim of any kind in or to any distributions of the amounts in the Trust Account, whether (i) in
connection with the exercise of redemption rights if the Company consummates the Business Combination, (ii) in connection with
any tender offer conducted by the Company prior to a Business Combination, (iii) upon the Company’s redemption of shares
of Common Stock sold in the Company’s IPO upon the Company’s failure to timely complete the Business Combination or
(iv) in connection with a stockholder vote to approve an amendment to the Company’s amended and restated certificate of incorporation
(A) to modify the substance or timing of the Company’s obligation to redeem 100% of the Company’s public shares if
the Company does not timely complete the Business Combination or (B) with respect to any other provision relating to stockholders’
rights or pre-Business Combination activity. In the event Subscriber purchases shares of Common Stock (including as part of units
or underlying warrants) in the IPO or in the aftermarket, any additional shares so purchased shall be eligible to receive the redemption
value of such shares of Common Stock upon the same terms offered to all other purchasers of Common Stock in the IPO or in the aftermarket.

 

6. Termination
of Placement Warrants.

 

 

6.1. Failure to Consummate
Business Combination. The Placement Warrants shall be terminated upon the dissolution of the Company or in the event that the Company
does not consummate the Business Combination within 18 months from the consummation of the IPO, unless otherwise extended by the
Company.

 

6.2. Termination of
Rights as Holder. If the Placement Warrants are terminated in accordance with Section 6.1, then after such time Subscriber (or
its successor in interest) shall no longer have any rights as a holder of such Placement Warrants and the Company shall take such
action as is appropriate to cancel such Placement Warrants. Subscriber hereby irrevocably grants the Company a limited power of
attorney for the purpose of effectuating the foregoing and agrees to take any and all measures reasonably requested by the Company
necessary to effect the foregoing.

 

7. Rescission Right
Waiver.

 

7.1. Subscriber understands
and acknowledges an exemption from the registration requirements of the Securities Act requires there be no general solicitation
of purchasers of the Placement Warrants. In this regard, if the IPO were deemed to be a general solicitation with respect to the
Placement Warrants, the offer and sale of such Placement Warrants may not be exempt from registration and, if not, Subscriber may
have a right to rescind its purchase of the Placement Warrants pursuant to this Agreement. In order to facilitate the completion
of the Offering and in order to protect the Company, its stockholders and the amounts in the Trust Account from claims that may
adversely affect the Company or the interests of its stockholders, Subscriber hereby agrees to waive, to the maximum extent permitted
by applicable law, any claims, right to sue or rights in law or arbitration, as the case may be, to seek rescission of its purchase
of the Placement Warrants. Subscriber acknowledges and agrees this waiver is being made in order to induce the Company to sell
the Placement Warrants to Subscriber. Subscriber agrees the foregoing waiver of rescission rights shall apply to any and all known
or unknown actions, causes of action, suits, claims or proceedings (collectively, “Claims”) and related losses,
costs, penalties, fees, liabilities and damages, whether compensatory, consequential or exemplary, and expenses in connection therewith.

 

    	 	5	 

     

    

 

7.2. Subscriber agrees
not to seek recourse against the Trust Account for any reason whatsoever in connection with its purchase of the Placement Warrants
pursuant to this Agreement or any Claim that may arise now or in the future with respect to its purchase of the Placement Warrants
pursuant to this Agreement.

 

7.3. Subscriber acknowledges
and agrees that the stockholders of the Company are and shall be third-party beneficiaries of this Section 7.

 

7.4. Subscriber agrees
that to the extent any waiver of rights under this Section 7 is ineffective as a matter of law, Subscriber has offered such waiver
for the benefit of the Company as an equitable right that shall survive any statutory disqualification or bar that applies to a
legal right. Subscriber acknowledges the receipt and sufficiency of consideration received from the Company hereunder in this regard.

 

8. Terms of the
Placement Warrants

 

8.1 Each Placement
Warrant shall have the terms set forth in the Warrant Agreement. The Placement Warrants and their component parts are substantially
identical to the warrants to be offered in the IPO except that: (i) the Placement Warrants will be subject to transfer restrictions,
except in limited circumstances, until 30 days following the consummation of the Business Combination, (ii) the Placement Warrants
will be non-redeemable so long as they are held by Subscriber (or any of its permitted transferees), and may be exercisable on
a “cashless” basis if held by Subscriber or its permitted transferees, as further described in the Warrant Agreement,
and (iii) the Placement Warrants and component parts are being purchased pursuant to an exemption from the registration requirements
of the Securities Act and will become freely tradable only after the expiration of the lockup described above in clause (i) and
they are registered pursuant to the Registration Rights Agreement to be signed on or before the date of the final prospectus for
the Registration Statement or an exemption from registration is available, and the restrictions described above in clause (i) has
expired.

 

9. Governing Law;
Jurisdiction; Waiver of Jury Trial

 

This Agreement shall
be governed by and construed in accordance with the laws of the State of New York for agreements made and to be wholly performed
within such state, without regards to the conflicts of laws principles thereof. Any suit brought by either party shall be brought
in the state or federal courts sitting in New York County in the State of New York. The parties hereto hereby waive any right to
a jury trial in connection with any litigation pursuant to this Agreement and the transactions contemplated hereby.

 

10. Assignment;
Entire Agreement; Amendment

 

10.1. Assignment. Neither
this Agreement nor any rights hereunder may be assigned, in whole or in part, by any party to any other person without the prior
written consent of the other party hereto except that Subscriber may assign this Agreement, or any of its rights hereunder, to
a person agreeing to be bound by the terms hereof, including the waiver contained in Section 7 hereof.

 

10.2. Entire Agreement.
This Agreement sets forth the entire agreement and understanding between the parties as to the subject matter thereof and merges
and supersedes all prior discussions, agreements and understandings of any and every nature among them with respect to such subject
matter.

 

10.3. Amendment. Except
as expressly provided in this Agreement, neither this Agreement nor any term hereof may be amended, waived, discharged or terminated
other than by a written instrument signed by the Company and Subscriber.

 

    	 	6	 

     

    

 

10.4. Binding upon
Successors. This Agreement shall be binding upon and inure to the benefit of the parties hereto and to their respective successors
and permitted assigns.

 

11. Notices

 

Notices. Unless otherwise
provided herein, any notice or other communication to a party hereunder shall be sufficiently given if in writing and personally
delivered or sent by facsimile or other electronic transmission with copy sent in another manner herein provided or sent by courier
(which for all purposes of this Agreement shall include Federal Express or other recognized overnight courier) or mailed to said
party by certified mail, return receipt requested, at its address provided for herein or such other address as either may designate
for itself in such notice to the other. Communications shall be deemed to have been received when delivered personally, on the
scheduled arrival date when sent by next day or 2nd-day courier service, or if sent by facsimile upon receipt of confirmation of
transmittal or, if sent by mail, then three days after deposit in the mail. If given by electronic transmission, such notice shall
be deemed to be delivered when directed to an electronic mail address at which such party has consented to receive notice.

 

12. Counterparts

 

This Agreement may
be executed in one or more counterparts, all of which when taken together shall be considered one and the same agreement and shall
become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both
parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail
delivery of a “pdf” format data file, such signature shall create a valid and binding obligation of the party executing
(or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature
page were an original thereof.

 

13. Survival; Severability

 

13.1. Survival. The
representations, warranties, covenants and agreements of the parties hereto shall survive the Closing.

 

13.2. Severability.
In the event that any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable
or void, this Agreement shall continue in full force and effect without said provision; provided that no such severability shall
be effective if it materially changes the economic benefit of this Agreement to any party.

 

14. Most Favored
Nation. Without the prior written consent of Subscriber, the Company has not provided, and on or prior to, or in connection
with, the Business Combination shall not provide, to any existing or future investor of the Company, contract terms, rights or
benefits more favorable, in form or substance, than those provided to Subscriber by this Agreement with respect to the Securities
purchased hereunder and other rights provided to Subscriber hereby, unless, in any such case, Subscriber has been provided with
such contract terms, rights and benefits.

 

15. Headings.

 

The titles and subtitles
used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

 

[Signature Page Follows]

 

    	 	7	 

     

    

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement to be effective as of the date first set forth above.

 

	 	HB STRATEGIES LLC
	 	 	 
	 	By:	 
	 	 	Name:  	         
	 	 	Title: 	 

 

	 	ENVIRONMENTAL IMPACT ACQUISITION CORP.
	 	 	 
	 	By:	 
	 	 	Name:  	Daniel
Coyne
	 	 	Title:	Chief Executive Officer 

 

[Signature Page to Private Placement
Warrants Subscription Agreement]Document

Exhibit 10.29

SEVERANCE AGREEMENT AND RELEASE

This Severance Agreement and Release (this “Agreement”) is hereby made and entered into by and between KIM International Corporation, a subsidiary of KushCo Holdings, Inc. (collectively, the “Company”) and Jason Vegotsky, an individual (“Employee”) as of the last date set forth on the signature page (the “Effective Date”).

RECITALS

A.Employee is an at-will employee of the Company and holds the position of President, Chief Revenue Officer:

B.Employee submitted his formal resignation and Employee’s employment with the Company will on July 1, 2020 (the “Termination Date”);

C.Employee acknowledges the receipt of all wages, salary, bonuses, benefits, vacation pay, expense reimbursement or any other monies owed by the Company to Employee. Aside from the Severance described below, Employee acknowledges that Employee is not entitled to any additional future compensation from the Company; and

D.The Company has offered, and Employee has accepted, the Severance as described below in exchange for a waiver and release of all claims and other provisions in this Agreement. This Agreement is therefore entered into by the Company and Employee to document the parties’ agreement regarding the terms of Employee’s separation from the Company.

NOW, THEREFORE, IN RELIANCE OF THE ABOVE RECITALS AND IN
CONSIDERATION of the promises, covenants and agreements herein contained, the parties agree as follows:

1.General Release. In consideration of the Company’s payment to Employee of  the Severance as described in Section 2 the sufficiency for which is hereby acknowledged, Employee on Employee’s own behalf and on behalf of Employee’s dependents, heirs, successors and assigns, hereby releases and covenants not to sue the Company, or its subsidiaries, parents or affiliated entities (including but not limited to: KushCo Holdings, Inc., KIM International Corporation, Kush Supply Co., LLC, KCH Energy, LLC, The Hybrid Creative LLC, Koleto LLC, Celeritas Industries, Inc. and KCH Distribution, Inc. (Canada)), or their respective past, present or future directors, officers, members, managers, owners, shareholders, partners, trustees, supervisors, employees, attorneys, consultants, receivers, insurers, and agents, and all persons acting by, through, under or in concert with any of them, and each of their respective heirs, predecessors, successors, and assigns (hereinafter collectively “Releasees”) from and for all rights, claims, liabilities, actions and suits of all kinds and descriptions that Employee may have against any or all Releasees arising on or prior to the date Employee signs this Agreement or arising out of Employee’s employment with the Company or the termination thereof (“ Claim” or “Claims”), including, but not limited to, any claim for wages, bonus, incentive compensation, commissions, accrued vacation pay, sick leave, holiday pay, meal/rest periods, severance pay, overtime, penalties, any wage and/or hour violation, breach of contract, breach of quasi contract, breach of implied contract, entitlement under any leave laws, health or medical insurance, pension or retirement benefits, or any other employment benefits, any claim for employment discrimination, whether on the basis of race, age, sex, national origin, religion, sexual 
1

Exhibit 10.29

orientation, marital status, veterans status, disability, union membership, or any other protected basis, retaliation or harassment of any kind, wrongful termination, slander, defamation, invasion of privacy, or emotional distress. Without limiting the generality of the foregoing, Employee acknowledges and agrees that among the claims released are those arising under Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Fair Labor Standards Act, the Equal Pay Act, the Americans with Disabilities Act, the Employee Retirement and Income Security Act, the Worker Adjustment and Retraining Notification Act, the Family and Medical Leave Act, the Genetic Information Non-Discrimination Act, the Lilly Ledbetter Fair Pay Act of 2009, the Fair Credit Reporting Act, the False Claims Act, the Sarbanes-Oxley Act, the Uniformed Services Employment and Reemployment Rights Act, the Occupational and Safety Health Act, the California Worker Adjustment and Retraining Notification Act, the California Fair Employment and Housing Act, the California Labor Code and Industrial Welfare Commission Orders, the California Constitution, the California Family Rights Act, the California Business and Professions Code, or any other claim based upon any federal, state, or local law or any alleged wrongful conduct or injury arising out of or in any way connected with any acts or omissions occurring on or prior to the date Employee signs this Agreement.

This general release and waiver of claims however excludes, and the Employee does not waive, release, or discharge: (A) any right to file an administrative charge or complaint with the Equal Employment Opportunity Commission, the California Department of Fair Employment and Housing, the Occupational Safety and Health Administration, and the Securities and Exchange Commission (“SEC”) or other similar federal or state administrative agencies, although the Employee waives any right to monetary relief related to such a charge or administrative complaint; provided, however, that nothing herein shall be construed to waive or limit Employee’s ability to receive any bounty or award for information provided to the SEC concerning suspected violations of law; (B) claims which cannot be waived by law; and (C) any rights to vested benefits, such as pension or retirement benefits, the rights to which are governed by the terms of the applicable plan documents and award agreements.

2.Severance and Acknowledgment. Upon Employee’s execution of this Agreement and the return of all Company property referenced in Section 9 below and subject to Employee’s compliance with all of the terms of this Agreement, in consideration of the promises made herein, Employee shall receive the following severance benefit(s) (the “Severance”):

•The Company shall issue Employee total cash compensation equal to Seventy-Five Thousand and No/100 Dollars ($75,000.00), paid in three (3) equal monthly installments of $25,000.00, which the first (1st) cash payment shall be made within five (5) business days following the Terminate Date, the second (2nd) cash payment will be distributed to Employee on or before August 5, 2020 and the final cash payment will be distributed to Employee on or before August 31, 2020;

•On or before December 1, 2020, the Company shall accelerate the vesting schedule of RSA-430 attached hereto as Exhibit A and as a result the unvested Fifty Thousand (50,000) restricted shares of Company stock shall be fully vested.

•The Company shall grant to Employee Fifty Thousand (50,000) restricted shares of Company stock, which Twenty-Five Thousand (25,000) of said restricted shares shall be issued to Employee on or before July 6, 2020 and the remaining Twenty-Five Thousand (25,000) said restricted shares shall be issued to Employee on or before August 31, 2020.

    
2

Exhibit 10.29

•On or before July 1, 2020, the Company shall grant to Employee One Hundred Thousand (100,000) options of Company stock, with a strike price equal to the closing price of the Company’s stock on June 30, 2020, which such options shall be fully vested and shall be exercisable between November 1, 2020 and October 31, 2022.

Employee affirms and warrants that Employee has reported all hours worked and appropriately received all compensation, wages, overtime pay (if applicable), expense reimbursements, bonuses, commissions, incentive compensation, vacation pay/PTO, sick pay, meal and rest breaks, benefits and other payments to which Employee was entitled (hereinafter “Monies”), including, but not limited to, those under the Fair Labor Standards Act and any other federal, state, or local wage and hour law, regulation or ordinance. Except for the Severance set forth herein in this Section 2, Employee expressly acknowledges and agrees that the Company does not now owe and will not in the future owe Employee any additional Monies of any kind whatsoever. Employee further affirms and warrants that Employee has appropriately received any leave (paid and unpaid) to which Employee was entitled, including, but not limited to, leave under the Family and Medical Leave Act and any other federal, state, or local leave or disability accommodation law, regulation or ordinance. Employee further acknowledges and agrees that Employee shall not be entitled to and shall not seek any other benefits or Monies from the Company.

3.Civil Code Section 1542. It is understood and agreed that this is a full, complete and final general release of any and all claims described as aforesaid, and that Employee agrees that it shall apply to all unknown, unanticipated, unsuspected and undisclosed claims, demands, liabilities, actions or causes of action, in law, equity or otherwise, as well as those which are now known, anticipated, suspected or disclosed. This release includes a release under § 1542 of the Civil Code of the State of California. Section 1542 reads as follows:

A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.

Employee hereby expressly waives and relinquishes all rights and benefits under that section and any law or legal principle of similar effect in any jurisdiction with respect to the release granted in this Agreement.

4.No Pending Claims. Employee acknowledges and agrees that Employee has no pending lawsuit, administrative charge, or complaint against the Company or any of the other Releasees, in any court or with any governmental agency. Employee also agrees that, to the extent permitted by law and subject to the provisions in Sections 13 and 17, Employee will not allow any lawsuit, administrative charge, or complaint to be pursued on Employee’s behalf. Employee further agrees that Employee will not participate, cooperate, or assist in any litigation against the Releasees in any manner, to the extent permitted by law and subject to the provisions in Sections 13 and 177. If lawfully subpoenaed by a court of this jurisdiction, Employee agrees to provide the Company written notice of such a subpoena within five days of receipt.

5.Confidential Information. Employee acknowledges that Employee has acquired information, in the course of Employee’s employment with the Company, regarding the Releasees, which constitutes Confidential Information (as defined below), and which is and remains the exclusive property of the Releasees. Employee acknowledges that this Confidential 
    
3

Exhibit 10.29

Information could be used to the detriment of the Releasees. Therefore, Employee agrees that, subject to the exceptions stated in Section 17, and except as required by law, Employee shall not divulge to any other person, firm, corporation or legal entity, any Confidential Information or trade secret of any Releasee. The term “Confidential Information” as used herein, means all information or material not generally known by the public which: (a) gives any Releasee some competitive business advantage or the opportunity of obtaining such advantage or the disclosure of which could be detrimental to the interests of any Releasee; and (b) is owned by any Releasee or in which any Releasee has an interest; and (c) is either marked “Confidential Information,” “Proprietary Information” or with other similar marking, is known by Employee to be considered confidential and proprietary by any Releasee, or from all the relevant circumstances should reasonably be assumed by Employee to be confidential and proprietary to any Releasee. Confidential Information includes, but is not limited to, the following types of information and other information of a similar nature (whether or not reduced to writing): trade secrets, inventions, drawings, file data, documentation, diagrams, specifications, know how, processes, formulas, models, flow charts, products in various stages of development, source codes, object codes, research and development procedures, research or development and test results, marketing techniques and materials, marketing and development plans, price lists, tax information (including, without limitation, tax strategies, tax planning, tax structuring and tax returns), Company strategies, Company structuring, inter-Company relations and agreements, pricing policies, billing practices, business plans, information and lists relating to potential or actual clients, customers’ identities, characteristics and agreements, insurance information, risk management information, human resources and personnel information (other than pay information regarding the Employee himself/herself), financial information and projections, legal department information, audit information, trust information, income information and employee files. Confidential Information also includes any confidential, non-public information described above which any Releasee obtains from another party and treats as proprietary or designates as Confidential Information, whether or not owned or developed by such Releasee. Employee acknowledges that, notwithstanding this Agreement, Employee shall continue to be bound by the covenants and other provisions of any Employee Non-Disclosure and Invention Assignment Agreement that Employee entered into during Employee’s employment with the Company. The Company expressly acknowledges and confirms that nothing in this Section 5 is intended to prohibit Employee's ability to pursue any activities related to retail services, brokerage, activation, marketing, branding or similar services specifically for the cannabis Tetrahydrocannabinol (THC) industry (provided such carve-out is not inclusive of such services in the cannabidiol (CBD) industry) regardless of whether the parties involved currently transact with the Company and that such activities expressly do not violate this Section 5.

6.Confidentiality. The terms of the Agreement shall be confidential, subject to the exceptions stated in Section 17. Accordingly, Employee agrees to not make any public statement about, not disclose to any third party, the fact of, or contents or terms of this Agreement, unless necessary to implement or enforce its terms, or to seek tax or legal advice regarding this Agreement. Employee will not disclose information about this Agreement to Employee’s spouse or Employee’s financial, tax and legal advisors, until they have first been advised of this confidentiality provision. Specifically, Employee will not disclose any information about this Agreement, or the Severance made pursuant to this Agreement, to any current or former employee of the Company. In the event that Employee’s attorney, financial or tax advisor, or spouse engages in conduct that would breach this section, such conduct shall constitute a breach of this section just as if Employee had engaged in such conduct. Employee understands and agrees that any disclosures in violation of this section shall constitute and be treated as a material breach of this Agreement. Employee and the Company agree that a breach of this confidentiality 
    
4

Exhibit 10.29

provision would constitute irreparable harm to Company and that, in the event of any breach of this Section, Company may obtain an injunction prohibiting future breaches. In addition, Employee and Company agree that any breach of confidentiality as set forth in Section 5 above and Section 6 herein, and any breach of the provisions referenced in Sections 11 below of this Agreement, shall result in liquidated damages paid by Employee to Company in the amount of Five Thousand Dollars and Zero Cents ($5,000.00) per breach. The Employee and Company agree that injunctive relief, additional monetary damages and reasonable attorneys’ fees and costs are also available under this Agreement for enforcing this provision.

7.Additional Benefit. Employee represents and agrees that the Company’s payment of the Severance described above is not required by any agreement or by any of the Company’s policies or procedures or by any act or omission by the Company or any Releasee, or any of them. Employee understands that the Severance is an additional benefit for which Employee is not eligible unless Employee elects to sign this Agreement.

8.Reports. Employee further represents that Employee (i) has reported to the Company any and all work-related injuries incurred during employment; (ii) the Company properly provided any leave of absence because of Employee or a family member’s health condition and Employee has not been subjected to any improper treatment, conduct or actions due to a request for or taking such leave; and (iii) Employee has provided the Company with written notice of any and all concerns regarding suspected bank fraud, wire fraud, mail fraud, securities fraud, any violation of a rule or regulation of the SEC, any violation of federal law, or any violation of the Company’s Code of Business Conduct, or any other ethical and compliance issues or violations on the part of the Company or any released person or entity.

9.Return of Company Property. Employee represents and warrants  that Employee will return to the Company any and all of the Company’s equipment, cellular telephone, iPhone/blackberry, tablets, laptop computers, hand-held electronic devices, files, documents, and other materials which were given to Employee by the Company for Employee’s use during Employee’s employment or which are otherwise in Employee’s possession, custody or control on the Termination Date, including, without limitation, all corporate credit cards, employee identification badges, and all building keys and access cards, in each case, in the same condition as such materials were in when given to Employee by the Company (normal wear and tear excepted). Employee will also provide the Company with the location of any security information which Employee used in connection with Employee’s employment. Employee also agrees to promptly return any subsequently discovered Company property.

10.No Disparagement; Social Media. To the fullest extent permitted by law, and subject to the exceptions stated in Section 17, Employee agrees that, from and after the Termination Date, Employee will not disparage or publish or disseminate information, whether oral or written (which includes, but is not limited to, statements made directly, indirectly or through any third person on or through any online, social media, electronic, digital or other media), that is derogatory in any manner to the Company or its business or its reputation, whether such information was acquired before, during or after Employee’s employment with the Company. In addition, on the Termination Date, Employee agrees to update Employee’s profile on social media websites (such as LinkedIn) to reflect that Employee is no longer an employee of the Company. The Company agrees that, from and after the Termination Date, the Company’s executive members (c-level executives and above) will not disparage or publish or disseminate information, whether oral or written (which includes, but is not limited to, statements made directly, indirectly or through any third person on or through any online, social media, electronic, 
    
5

Exhibit 10.29

digital or other media), that is derogatory in any manner to the Employee, whether such information was acquired before, during or after Employee’s employment with the Company. Employee and the Company agree that the non-disparagement provision set forth in this section is a material term of this Agreement and that breach of this section of the Agreement constitutes a material breach of this Agreement.

11.Confirmation. Subject to the exceptions stated in Section 17, Employee represents and warrants that Employee is not aware, to the best of Employee’s knowledge, of any conduct on Employee’s part or on the part of another Company employee that violated the law or otherwise exposed the Company to any liability, whether criminal or civil, whether to any government, individual or other entity, and that Employee is not aware of any material violations by the Company and/or its employees, officers, directors and agents of any statute, regulation or other rules that have not been addressed by Company through appropriate compliance and/or corrective action. Further, Employee represents  and warrants that Employee has not suffered  any sexual harassment or sexual abuse in connection with Employee’s employment by the Company, or by any officer, manager, employee, agent, customer or supplier of the Company; that Employee is not currently aware of any facts or circumstances that would give rise to a sexual harassment or sexual abuse claim against the Company and/or any of the Releasees; and that this Agreement and the Severance is not a settlement or payment related to a sexual harassment or sexual abuse claim.

12.Reference. Employee agrees that any request for a reference from a prospective employer shall be directed to the Company’s Human Resources Department. The Company agrees that in response to any inquiry from a prospective employer to the Human Resources Department, the Company shall make no comment other than to confirm dates of employment and last position held. The Company may provide, at its sole discretion, a recommendation upon written request by Employee.

13.Cooperation. In the event that the Company or any of its affiliates becomes involved in any civil or criminal litigation, administrative proceeding or governmental investigation, Employee shall, upon request, provide reasonable cooperation and assistance to the Company, including without limitation, furnishing relevant information, attending meetings and providing statements and testimony. The Company will reimburse Employee for all reasonable and necessary expenses Employee incurs in complying with this Section 133. If necessary for any employer of Employee, the Company will provide Employee with a proper subpoena in order to obtain Employee’s reasonable cooperation with and assistance to the Company.

14.No Admission. Employee acknowledges that neither this Agreement nor anything contained herein shall be admissible in any proceeding as evidence of or an admission by the Company of any wrongdoing or violation of its policies and procedures, or of any law or regulation. Notwithstanding the foregoing, this Agreement may be introduced into a proceeding solely for the purpose of enforcing this Agreement.

15.Dispute Resolution. Any disagreement, controversy, claim, action, proceeding or dispute between Employee and any Releasee, brought to interpret or enforce the provisions of this Agreement, shall be resolved by way of final binding arbitration. The parties will exercise their best efforts to mutually agree upon the selection of an arbitrator. If no such agreement can be reached, then a third-party provider will be contacted for the purpose of securing an arbitrator. The arbitrator selected shall be a retired judge or attorney with substantial experience in the 
    
6

Exhibit 10.29

subject matter of the dispute. The prevailing party or parties shall recover his, her or its reasonable attorneys’ fees and costs.
16.Unemployment and Disability. The releases set forth in Section 1 does not include any claims for state or federal unemployment or disability compensation to which Employee may be entitled under the law or Employee’s rights to continuation coverage under the Company’s group health plan which, if applicable, will be offered in accordance with the provisions of COBRA or other applicable law. The Company agrees it will not oppose Employee’s claim for unemployment benefits.

17.No Prohibition. Employee is hereby advised, and by Employee’s signature below, Employee acknowledges that, nothing in this Agreement or in any agreement between Employee and the Company prohibits or limits Employee (or Employee’s attorney) from initiating communications directly with, responding to any inquiry from, volunteering information to, or providing testimony before, the Securities and Exchange Commission, the Department of Justice, the Financial Industry Regulatory Authority Inc., or any other self- regulatory Company, governmental, law enforcement, or regulatory authority, regarding this Agreement and its underlying facts and circumstances, or any reporting of, investigation into, or proceeding regarding suspected violations of law, and that Employee is not required to advise or seek permission from the Company before engaging in any such activity. Employee further recognizes that, in connection with any such activity, Employee must inform such authority of the confidential nature of any confidential information that Employee provides, provided, further, that Employee is not permitted to reveal any information that is protected by the attorney-client privilege or attorney-work product protection or any other privilege belonging to the Company. Furthermore, nothing contained in this Agreement is intended to prohibit or restrict Employee in any way from making any disclosure of information required by law. Additionally, Employee understands and acknowledges that Employee is hereby notified that, under the Defend Trade Secrets Act (specifically, 18 USC §1833), Employee cannot be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and (ii) solely for the purpose of reporting or investigating a suspected violation of law. Employee also understands that Employee may not be held so liable for disclosures made in a complaint or other document filed in a lawsuit or other proceeding, if that filing is made under seal.

18.Choice of Law. This Agreement shall be construed and enforced in accordance with, and governed by, the laws of the State of California, without regard to its conflicts of law provisions.

19.No Assignment. Employee represents and agrees that Employee has not heretofore assigned or transferred, or purported to have assigned or transferred, to any person whomsoever, any Claim or portion thereof or interest therein, and Employee agrees to indemnify, defend and hold harmless each and all of the Releasees against any and all Claims based on, arising out of, or in connection with any such transfer or assignment, or purported transfer or assignment, of any Claims or any portion thereof or interest therein.

20.Binding. This Agreement shall be binding upon Employee and Employee’s heirs, representatives, executors, administrators, successors and assigns, and shall inure to the benefit of each and all of the Releasees, and to their heirs, representatives, executors, administrators, successors and assigns.

    
7

Exhibit 10.29

21.Severability. Should any part, term or provision of this Agreement, with the exception of the releases embodied in Section 1, be declared or determined by any Court or other tribunal of appropriate jurisdiction to be invalid or unenforceable, any such invalid or unenforceable part, term or provision shall be deemed stricken and severed from this Agreement and any and all of the other terms of the Agreement shall remain in full force and effect to the fullest extent permitted by law. The releases embodied in Section 1 are the essence of this Agreement and should Section 1 be deemed invalid or unenforceable, this Agreement may be declared null and void by the Company and any consideration received under this Agreement shall be returned to the Company.

22.Entire Agreement. This Agreement constitutes and contains the entire agreement and understanding between the parties and supersedes all prior negotiations and all agreements proposed or otherwise, whether written or oral, concerning the subject matter hereof. The Company has made no promises to Employee other than those contained in this Agreement. This Agreement may not be modified, or any provision waived, except by a signed written agreement of the affected parties. Notwithstanding the foregoing, the continuing obligations contained in any arbitration agreement and confidential information and/or privacy agreement between the parties, shall remain in full force and effect whether or not Employee executes this Agreement.

23.No Presumption against Drafter. Employee agrees that this Agreement has been negotiated and that no provision contained herein shall be interpreted against any party because that party drafted the provision.

24.Acknowledgment. Employee acknowledges and affirms that Employee has no known workplace injuries or occupational diseases for which Employee has not already filed a claim.

25.Breach of Post-Termination Obligations. If the Employee breaches any terms of this Agreement or the post-termination obligations referenced in it, to the extent authorized by California law, the Employee will be responsible for payment of all reasonable attorneys' fees and costs that the Company incurred in the course of enforcing the terms of the Agreement, including demonstrating the existence of a breach and any other contract enforcement efforts.

26.Signatories’ Authority. Each of the individuals signing this Agreement represents and warrants to the others that he or she has the right, power and authority to sign this Agreement on his or her behalf, or on behalf of the Company or other business entity for which he or she has signed, as the case may be, and to sign all other documents and perform all other acts as may be necessary in relation to this Agreement.

27.Capacity. Employee represents and warrants that in negotiating and executing this Agreement, Employee is not, and has not been, under the influence of any drugs, medications or other substances which might in any way impair Employee’s judgment or ability to understand the terms of this Agreement.

28.Further Documents and Acts. Each of the parties will cooperate in good faith with each other, and execute and deliver such further documents and perform such other acts as may be reasonably necessary or appropriate to consummate and carry into effect the transactions contemplated by this Agreement.

    
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Exhibit 10.29

29.No Reliance. Employee represents and acknowledges that in executing this Agreement Employee does not rely upon, and has not relied upon, any representation or statement not set forth herein made by any Releasee or by their agents, representatives, or attorneys with regard to the subject matter, basis or effect of this Agreement or otherwise.

30.Interpretation. The language in all parts of this Agreement will be in all cases construed simply according to its fair meaning and not strictly for or against any party. Whenever the context requires, all words used in the singular will be construed to have been used in the plural, and vice versa, and each gender will include any other gender. The captions  of the paragraphs of this Agreement are for the convenience only and will not affect the construction or interpretation of any of the provisions herein.

31.Section 409A. This Agreement is intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (Section 409A), or an exemption thereunder and shall be construed and administered in accordance with Section 409A. Notwithstanding any  other provision of this Agreement, payments provided under this Agreement may only be made upon an event and in a manner that complies with Section 409A or an applicable exemption.  Any payments under this Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service, as a short-term deferral, or as a settlement payment pursuant to a bona fide legal dispute, shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, any installment payments provided under this Agreement shall each be treated as a separate payment. To the extent required under Section 409A, any payments to be made under this Agreement upon a termination of employment shall only be made upon a "separation from service" under Section 409A. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest, or other expenses that may be incurred by the Employee on account of non-compliance with Section 409A.

32.Costs. Each of the parties to this Agreement will pay his, her, or its own costs and expenses, if any, relative to the negotiation and preparation of this Agreement.

33.Counterparts. This Agreement may be executed in any number of counterparts, all of which together shall constitute one original Agreement, and it may be executed by a signature transmitted via facsimile or email transmission.

34.Certification. Employee certifies that Employee has received any advice of counsel Employee deems necessary regarding this Agreement and has read and understands all of this Agreement and freely, voluntarily and knowingly entered into this Agreement, having full knowledge and understanding of its contents, its effect, and the rights Employee may be waiving.

35.Deadline. Employee has until 5:00 p.m. on July 1, 2020 to sign and return this agreement to:

Rhiana Barr
KIM International Corporation
6261 Katella Ave., Suite 250
Cypress, CA 90630
Rhiana.barr@kushco.com

    
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Exhibit 10.29

If the signed Agreement is not returned by that date, the offer is rescinded.

IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement as of the date written below.

PLEASE READ CAREFULLY. THIS SEVERANCE AGREEMENT AND RELEASE INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

EMPLOYEE FREELY AND KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTERS INTO THIS AGREEMENT INTENDING TO WAIVE, SETTLE AND RELEASE ALL CLAIMS EMPLOYEE HAS OR MIGHT HAVE AGAINST RELEASEES.

                                                                               KIM INTERNATIONAL CORPORATION
						
		
	/s/ Jason Vegotsky	By: /s/ Rhiana Barr

	Jason Vegotsky
	Name: Rhiana Barr

		Its: Chief People Officer

	Date: June 30, 2020
	Date: July 1, 2020

    
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