Document:

October
16, 2017

 

Mr.
Jeffrey Brown

13038
Vista Del Valle Ct

Los
Altos Hills CA 94022

 

Dear
Jeffrey:

 

On
behalf of the Board of Directors I am pleased to offer you a position with Sierra Monitor Corporation (“SMC”
or the “Company”) as its President and Chief Executive Officer, starting on or before October 16, 2017
(your actual start date is referred to herein as the “Employment Commencement Date”). While employed
hereunder, you agree to devote your full business efforts and time to the Company provided, however, that you may
engage
in civic and not-for-profit
activities, serve
on the boards of directors
or serve as an advisor to non-competitive
private or public companies
so long as such activities
do not materially
interfere with the performance
of your duties to the Company.

 

Your
starting base salary will be $33,333.33 per month, which over a full year would equal $400,000.00 (the “Base Salary”),
less payroll deductions and all required withholdings. Commencing in January 2019, your Base Salary will be reviewed by the Board
of Directors at least annually for possible increases. Commencing in January 2018 you will also be eligible to receive an annual
bonus of up to thirty seven and a half percent (37.5%) of your current Base Salary, based upon achieving goals to be mutually
agreed upon between you and the Board. See Exhibit 1. Any such annual bonuses will be paid to you no later than March 15 following
the year to which it relates, provided you must be an employee of the Company at the time such annual bonus is paid.

 

You
will also be eligible for SMC’s standard benefits package on terms comparable to those provided to the Company’s executive
officers. During your term of employment with the Company, you shall be entitled to paid vacation in accordance with the Company’s
vacation policies for its executive officers.

 

Subject
to the approval of SMC’s Board of Directors, upon the Employment Commencement Date, SMC will grant you an equity award covering
500,000 shares of Company common stock (the “Equity Award”). The Equity Award will consist of (i) a
restricted stock award (“RSA”) of 150,000 shares of common stock and (ii) an option to purchase 350,000
shares of common stock, which will be an incentive stock option to the maximum extent possible under the Internal Revenue Code
(the “Option”). Subject to your continued service with SMC, and further subject to accelerated vesting
as specified herein, your Option will vest as to 1/4th of the covered shares on the first anniversary of the Employment Commencement
Date, and the remaining unvested covered shares shall vest in 36 equal monthly installments thereafter, so that the Option will
be 100% vested on the fourth anniversary of the Employment Commencement Date. Subject to your continued service with SMC, and
further subject to accelerated vesting as specified herein, your RSA will vest as to 1/4th of the covered shares on each of the
first four anniversaries of the Employment Commencement Date, so that the RSA will be 100% vested on the fourth anniversary of
the Employment Commencement Date. Your Equity Award will otherwise have the standard terms and conditions of our award agreement
under our 2016 Equity Incentive Plan (collectively, the “Equity Documents”), except as specified herein.
Your Option will be priced at 100% of the fair market value of the underlying shares of common stock on the grant date.

 

    	 	 	 

    	 

    

 

Subject
to your executing and not revoking a release of claims in favor of SMC in the form provided by the Company (a “Release”),
and provided that such Release becomes effective and irrevocable no later than sixty (60) days following the termination date
or such earlier date as may be required by the Release, in the event your employment is terminated by SMC without Cause (as defined
below) or in the event you resign for Good Reason outside of the “Change in Control Period,” then (A) you shall receive
severance payments of six (6) months’ Base Salary and six (6) months’ annual target bonus, paid in a lump sum (B)
you shall receive six (6) monthly payments of $3,500 in lieu of Company-subsidized COBRA, payable whether or not you or your covered
dependents elect COBRA continuation benefits, and (C) fifty percent (50%) of your then outstanding equity to acquire shares of
the Company’s common stock or other equity awards shall immediately vest and become exercisable (the “Termination
Release Payment”).

 

Subject
to your executing and not revoking a Release, in the event your employment is terminated by SMC other than for “Cause”
within the period beginning on the date three (3) months prior to, and ending on the date that is twelve (12) months following
the date upon which a “Change in Control” occurs (the “Change in Control Period”), or in
the event that within the Change in Control Period you voluntarily terminate your employment for Good Reason, then (A) you shall
receive severance payments of twelve (12) months’ Base Salary and twelve (12) months’ annual target bonus, paid in
a lump-sum, (B) you shall receive twelve (12) monthly payments of $3,500 in lieu of Company-subsidized COBRA, payable whether
or not you or your covered dependents elect COBRA continuation benefits, and (C) all of your then outstanding equity to acquire
shares of the Company’s common stock or other equity awards shall immediately vest and become exercisable (the “Change
in Control Release Payment”). For the avoidance of doubt, under no circumstances will you be entitled to receive both the
Termination Release Payment and the Change in Control Release Payment.

 

For
the purposes of this offer letter agreement, “Cause” means (A) your continued failure to perform your
employment duties and responsibilities, other than a failure resulting from your complete or partial incapacity due to physical
or mental illness or impairment, after you have received written notice from the Company which describes the factual basis for
the Company’s belief that you have not substantially performed your duties and responsibilities and you have not cured such
failure to the reasonable satisfaction of the Company within thirty (30) days after receipt of written notice from the Company,
(B) any material act of personal dishonesty taken by you in connection with your duties and responsibilities as an employee, (C)
your commission of an act of fraud, embezzlement, misrepresentation, or unlawful conduct resulting in material economic or financial
injury to the Company, (D) your conviction of, or plea of nolo contendere to, a felony under the laws of the United States
or any state, (E) any act of moral turpitude or other misconduct that the Company reasonably believes has had or will have a material
detrimental effect on the Company’s reputation or business, (F) your willful breach of any fiduciary duty owed by you to
the Company that the Company reasonably believes has had or will have a material detrimental effect on the Company’s reputation
or business, (G) you being found liable in any Securities and Exchange Commission or other civil or criminal securities law action
or any cease and desist order is entered with respect to any such action (regardless of whether or not you admit or deny liability
in such action), (H) you obstructing or impeding, endeavoring to influence, obstruct or impede, or failing to materially cooperate
with, any investigation authorized by the Company, its Board of Directors or any governmental or self-regulatory organization,
or (I) your material breach of this Agreement or the Proprietary Information Agreement (as defined herein).

 

    	 	2	 

    	 

    

 

For
the purposes of this offer letter agreement, “Change in Control” shall have the meaning ascribed to
such term in the 2016 Equity Incentive Plan.

 

For
the purposes of this offer letter agreement, “Good Reason” means that your employment terminates pursuant
to your resignation within 180 days after any of the following is undertaken by the Company (or its acquirer) without your consent:
(i) a material reduction of your Base Salary or target annual bonus, except that any reduction of less than ten percent (10%)
shall not be considered material, and except for any reduction in the same percentage as applied to other similarly situated Company
executives, (ii) a material reduction in your duties, authority or responsibilities; (iii) your office is relocated to a location
more than thirty (30) miles from your then current office location; provided, however, that Good Reason shall not exist unless
you have provided written notice to the Board of the purported grounds for the Good Reason within ninety (90) days of its initial
existence and the Company has been provided at least thirty (30) days to remedy the condition.

 

If
any payment or benefit you would receive pursuant to this offer letter agreement or otherwise, including accelerated vesting of
any equity compensation (“Payment”) would (i) constitute a “parachute payment” within the
meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and (ii) but
for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”),
then such Payment shall be reduced to the Reduced Amount. The “Reduced Amount” shall be either (x) the
largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax or (y) the largest
portion, up to and including the total, of the Payment, whichever amount, after taking into account all applicable federal, state
and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in
your receipt, on an after-tax basis, of the greater amount of the Payment notwithstanding that all or some portion of the Payment
may be subject to the Excise Tax. If a reduction in payments or benefits constituting “parachute payments” is necessary
so that the Payment equals the Reduced Amount, reduction shall occur in the following order: (A) cash payments shall be reduced
first and in reverse chronological order such that the cash payment owed on the latest date following the occurrence of the event
triggering such excise tax will be the first cash payment to be reduced; and (B) accelerated vesting of the equity compensation
awards shall be cancelled/reduced next, with full-value awards reduced/cancelled prior to stock option/stock appreciation awards.
The Company shall appoint a nationally recognized accounting firm to make the determinations required hereunder and perform the
foregoing calculations. The Company shall bear all expenses with respect to the determinations by such accounting firm required
to be made hereunder. No vesting acceleration or severance benefits pursuant to such section shall be paid or provided unless
and until the Release becomes effective. Any severance payment or benefit to which you would otherwise be entitled during such
sixty (60) day period shall be paid or provided by the Company in full arrears on the sixty-first (61st) day following
your employment termination date or such later date as is required to avoid the imposition of additional taxes under Internal
Revenue Code Section 409A (“Section 409A”).

 

    	 	3	 

    	 

    

 

Notwithstanding
any provision to the contrary herein, no Deferred Compensation Separation Payments (as defined below) that become payable under
this offer letter agreement by reason of a termination of your employment with the Company (or any successor entity thereto) will
be made unless such termination of employment constitutes a “separation from service” within the meaning of Section
409A. Further, if you are a “specified employee” of the Company (or any successor entity thereto) within the meaning
of Section 409A on the date of your termination of employment (other than a termination of employment due to death), then the
severance payable to you, if any, under this letter, when considered together with any other severance payments or separation
benefits that are in each case considered deferred compensation under Section 409A (together the “Deferred Compensation
Separation Payments”) that are payable within the first six (6) months following your termination of employment,
shall be delayed until the first payroll date that occurs on or after the date that is six (6) months and one (1) day after the
date of your termination of employment, when they shall be paid in full arrears. All subsequent Deferred Compensation Separation
Payments, if any, will be paid in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding
anything herein to the contrary, if you die following your employment termination but prior to the six (6) month anniversary of
your employment termination, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon
as administratively practicable after the date of death and all other Deferred Compensation Separation Payments will be payable
in accordance with the payment schedule applicable to each payment or benefit. Each payment and benefit payable under this offer
letter agreement is intended to constitute a separate payment for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.

 

The
foregoing provisions are intended to comply with the requirements of Section 409A so that none of the severance payments and benefits
to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be
interpreted to so comply. The Company and you agree to work together in good faith to consider amendments to this offer letter
agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional
tax or income recognition prior to actual payment to you under Section 409A.

 

Enclosed
is a copy of our Employment, Confidential Information, Invention Assignment and Arbitration Agreement (the “Proprietary
Information Agreement”). This document assigns rights to all inventions to SMC and requires you to keep confidential
all matters regarding SMC technology and business relationships until SMC has made such information public. Please read, sign,
and return this agreement on your first day of work.

 

You
agree that any information that constitutes “Company Confidential Information” under your Proprietary Information
Agreement shall be subject to the terms thereof, including, without limitation, the restrictions concerning nondisclosure and
non-use of Company Confidential Information set forth therein, regardless of whether such information was disclosed to you in
connection with your participation in the Program. You further agree that any material, notes, records, drawings, designs, logos,
inventions, improvements, developments, discoveries, ideas and trade secrets conceived, discovered, authored, invented, developed
or reduced to practice by you, solely or in collaboration with others, during the course of your participation in the Program
shall constitute “Inventions” under your Proprietary Information Agreement shall be subject to the terms thereof,
including, without limitation, those related to the ownership and assignment thereof to the Company and waiver of any rights related
thereto. You agree to enter into such further agreements and instruments, and to take such further actions, as the Company may
reasonable request to secure its rights described in this paragraph. In the case of any conflict between the terms of this paragraph
and the Proprietary Information Agreement, the terms of the Proprietary Information Agreement shall be controlling.

 

    	 	4	 

    	 

    

 

You
and SMC understand and acknowledge that your employment with SMC constitutes “at-will” employment. Subject to the
provision of any severance benefits required above, you and SMC acknowledge that this employment relationship may be terminated
at any time, with or without good cause or notice or for any or no cause, at the option of either you or SMC.

 

We
also ask that, if you have not already done so, you disclose to the Company any and all agreements relating to your prior employment
that may affect your eligibility to be employed by the Company or limit the manner in which you may be employed. You represent
that you (a) are not a party to an employment agreement or other contract or arrangement which prohibits your full-time employment
with SMC, and (b) do not know of any conflict which would restrict your employment with SMC. Similarly, you agree not to bring
any third-party confidential information to the Company, including that of your former employer, and that you will not in any
way utilize any such information in performing your duties for the Company.

 

This
offer letter agreement, the agreement relating to the Equity Award referenced herein and the Proprietary Information Agreement
are the entire agreement and understanding between you and SMC as to the subject matter hereof, and supersede all prior or contemporaneous
agreements, whether written or oral. No waiver, alteration, or modification, if any, of the provisions of this offer letter agreement
shall be binding unless in writing and signed by duly authorized representatives of you and SMC.

 

This
offer letter agreement shall be governed by and construed in accordance with the internal substantive laws, but not the choice
of law rules, of the State of California. You hereby consent to the personal jurisdiction of the state and federal courts located
in California for any action or proceeding arising from or relating to this offer letter agreement.

 

Federal
legislation requires all employers to verify the authorization to work of all employees. Under this law, you will be required
to furnish documentation within 72 hours of starting work.

 

If
you wish to accept employment at SMC under the terms set out above, please sign and date this offer letter agreement and return
it to me no later than the end of the day on October 16, 2017.

 

	 	Sincerely,
	 	 
	 	Gordon R. Arnold
	 	Chairman

 

I
have read and accept the above:

 

	/s/
    Jeffrey Brow	October 16, 2017
	Jeffrey Brown	Date Signed

 

    	 	5	 

    	 

    

 

 

Exhibit
1

 

Bonus
Plan Targets.

 

For
the months of November and December 2017 the prorated bonus will be guaranteed and paid at a fixed rate of $12,500 in each month.

 

For
the year 2018 the total bonus value will be $150,000 separated into two targets each valued at $75,000.

 

Target
1: Increase net sales by 10% year over year. For each 1% of growth the bonus value will be $7,500 until the maximum value will
be $75,000.

 

Target
2: Will be established in consultation with the Board of Directors not later than March 31, 2018. The Target is expected to be
related to Company gains in the area of IIoT sales or deployments.

 

    	 	A-1TRANSITION
aGREEMENT 

 

RECITALS

 

This
Transition Agreement (the “Agreement”) is made by and between Gordon R. Arnold (the “Executive”)
and Sierra Monitor Corporation (“Sierra Monitor” or the “Company”), together
with its subsidiaries, the “Sierra Monitor Group”) (and Executive together with Sierra Monitor, the
“Parties”).

 

WHEREAS,
Executive has been serving as Sierra Monitor’s Interim Chief Executive Officer and Chairman of the Company’s Board
of Directors (the “Board”);

 

WHEREAS,
Executive and Sierra Monitor entered into a Change of Control and Severance Agreement dated April 2, 2012 (the “Change
of Control Agreement”);

 

WHEREAS,
Executive and Sierra Monitor have entered into a proprietary information and invention assignment agreement dated August 31, 2016
(the “Confidentiality Agreement”);

 

WHEREAS,
the Parties wish to provide for Executive’s orderly transition of his day-to-day leadership of Sierra Monitor in connection
with the hiring of new senior leadership and wish to continue Executive’s employment as Executive Advisor and Director through
October 31, 2018 (the “Separation Date”);

 

WHEREAS,
the Parties mutually desire to have the Executive remain on the Board; and

 

WHEREAS,
at the end of the Transition Period, the Parties wish to confirm the absence of, or resolve any and all, disputes, claims, complaints,
grievances, charges, actions, petitions, and demands that Executive may have against the Company and any of the Releasees as defined
in the Supplemental Separation and General Release Agreement in Appendix A, including, but not limited to, any and
all claims arising out of or in any way related to Executive’s employment with or separation from the Company (the “Release
Agreement”).

 

NOW,
THEREFORE, in consideration of the promises made herein, the Parties hereby agree as follows:

 

COVENANTS

 

1.
Consideration.

 

(a)
Continued Employment. As of the date hereof, Executive will continue to serve as Director and continue to be employed by
the Company as Executive Advisor to the Company through the Separation Date (the period between the date hereof and the Separation
Date, the “Transition Period”). During the Transition Period, Executive will render such business and
professional services in the performance of his duties, consistent with Executive’s position within Sierra Monitor, as may
be reasonably be assigned to him from time-to-time. During the Transition Period, Executive will perform his duties faithfully
and to the best of his ability. For the duration of the Transition Period, Executive agrees not to actively engage in any other
employment, occupation or consulting activity for any direct or indirect remuneration without the prior approval of the Board
of Sierra Monitor. Notwithstanding anything herein to the contrary, Executive’s employment with the Company during the Transition
Period shall continue to be at-will, provided, that in the event that Executive’s employment is terminated by the Company
without Cause (as defined in the Change of Control Agreement) prior to the end of the Transition Period, Executive will be entitled
to payment of the Base Salary through the Separation Date, subject to Executive’s execution of the Release Agreement within
the time provided for therein.

 

    	 

    	 

    

 

(b)
Compensation During the Transition Period. During the Transition Period, Sierra Monitor will pay Executive as compensation
for his services a base salary at the annualized rate of $250,000 (the “Base Salary”). The Base Salary
will be paid periodically in accordance with Sierra Monitor’s normal payroll practices and be subject to the usual, required
withholding.

 

(c)
Stock Options. All of Executive’s outstanding stock options or other equity (“Options”)
will continue to vest through the Transition Period in accordance with the applicable vesting schedule(s), and the terms and conditions
of the Stock Plan and the applicable option agreement under which each such Option was granted, subject to Section 2(d) below.

 

(d)
Employee Benefits. During the Transition Period, Executive will be entitled to participate in the employee benefit plans
currently and hereafter maintained by Sierra Monitor of general applicability to other executive officers of Sierra Monitor. During
the Transition Period, Executive also will be eligible to accrue vacation at the same rate in which he accrues vacation as of
immediately prior to the Effective Time. Sierra Monitor reserves the right to cancel or change the benefit plans and programs
it offers to its employees at any time.

 

(e)
Severance and Change of Control. During the Transition Period, Executive will continue to be eligible for the severance
and change of control benefits set forth in the Change of Control Agreement (to the extent applicable). In addition, during the
Transition Period, Executive will be entitled to any severance and/or change of control benefits approved by the Board of Sierra
Monitor for other Sierra Monitor’s senior executive officers generally but only to the extent such benefits provide a benefit
to Executive that is greater, in the aggregate, than the benefit to which he otherwise would receive under the Change of Control
Agreement determined as of the time of termination.

 

(f)
Expenses. The Company will reimburse Executive for reasonable travel, entertainment or other expenses incurred by
Executive in the furtherance of or in connection with the performance of Executive’s duties hereunder during the Transition
Period, in accordance with the Company’s expense reimbursement policy in effect from time to time.

 

2.
Resignation; Member of Board of Directors. On the Separation Date, Executive will be deemed to have resigned voluntarily
from all Company positions held by him, without any further required action by the Executive; provided however, if the Company
requests, Executive will execute any documents necessary to reflect his resignation. Executive will continue to serve as a member
of the Company’s Board of Directors through the Transition Period and, subject to the Company’s and Executive’s
mutual determination, beyond the Transition Period if and as approved by the Company’s stockholders.

 

3.
Confidential Information. Executive shall continue to maintain the confidentiality of all confidential and proprietary
information of Sierra Monitor and shall continue to comply with the terms and conditions of the Confidentiality Agreement, which
continues in full force and effect. Such information includes, but is not limited to, all customer lists, prospects, business
processes, business models, equipment, records, data, notes, reports, proposals, correspondence, specifications, drawings, blueprints,
sketches, materials, or other documents or property belonging to Sierra Monitor.

 

    	-2-

    	 

    

 

4.
No Pending or Future Lawsuits. Executive represents that he has no lawsuits, claims, or actions pending in his name, or
on behalf of any other person or entity, against Sierra Monitor or any other person or entity referred to herein. Executive also
represents that he does not intend to bring any claims on his own behalf or on behalf of any other person or entity against Sierra
Monitor or any other person or entity referred to herein.

 

5.
Arbitration. In accordance with Section 8 of the Change of Control Agreement, any and all controversies, claims, or disputes
with anyone (including Sierra Monitor and any employee, officer, director, shareholder or benefit plan of Sierra Monitor in their
capacity as such or otherwise) arising out of, relating to, or resulting from Executive’s employment with Sierra Monitor
or the termination of his employment with the Sierra Monitor, including any breach of this Agreement, shall be subject to binding
arbitration as set forth therein.

 

6.
Authority. Sierra Monitor represents and warrants that the undersigned has the authority to act on behalf of Sierra Monitor
and to bind Sierra Monitor and all who may claim through it to the terms and conditions of this Agreement. Executive represents
and warrants that he has the capacity to act on his own behalf and on behalf of all who might claim through him to bind them to
the terms and conditions of this Agreement. Each party warrants and represents that there are no liens or claims of lien or assignments
in law or equity or otherwise of or against any of the claims or causes of action released herein.

 

7.
No Representations. Each party represents that it has had the opportunity to consult with an attorney, and has carefully
read and understands the scope and effect of the provisions of this Agreement. Neither party has relied upon any representations
or statements made by the other Party hereto which are not specifically set forth in this Agreement.

 

8.
Severability. In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be
illegal, unenforceable or void, the validity of the other provisions of this Agreement shall not be impaired. If any provision
of this Agreement shall be deemed invalid as to its scope, then, notwithstanding such invalidity, such provision shall be valid
to the fullest extent permitted by law, and the parties agree that, if any court or arbitrator makes such a determination, such
court or arbitrator shall have the power to modify the duration, scope and/or area of such provision and/or to delete specific
words and phrases by “blue penciling” and, in its reduced or blue penciled form, to enforce such provision to the
fullest extent permitted by law.

 

9.
Entire Agreement. This Agreement, the Change of Control Agreement, the Confidentiality Agreement, the Indemnification Agreement,
and the agreements relating to the Options, and the Stock Plan and Option Agreement, constitute the entire agreement and understanding
between the Parties concerning the subject matter herein and all prior representations, understandings, and agreements concerning
the subject matter hereof have been superseded by the terms of this Agreement.

 

    	-3-

    	 

    

 

10.
No Waiver. The failure of any party to insist upon the performance of any of the terms and conditions in this Agreement,
or the failure to prosecute any breach of any of the terms and conditions of this Agreement, shall not be construed thereafter
as a waiver of any such terms or conditions. This entire Agreement shall remain in full force and effect as if no such forbearance
or failure of performance had occurred.

 

11.
No Oral Modification. Any modification or amendment of this Agreement, or additional obligation assumed by either party
in connection with this Agreement, shall be effective only if placed in writing and signed by Executive for himself and by a member
of Sierra Monitor’s Board of Directors. No provision of this Agreement can be changed, altered, modified, or waived except
by an executed writing by the Parties.

 

12.
Governing Law. This Agreement shall be construed, interpreted, governed, and enforced in accordance with the laws of the
State of California. Executive consents to personal and exclusive jurisdiction and venue in the State of California.

 

13.
Effective Date. Executive understands that this Agreement shall be null and void if not executed by him within seven (7)
days. This Agreement will become effective on the eighth (8th) day after Executive signed this Agreement, so long as it has been
signed by the Parties and has not been revoked by either Party before that date (the “Effective Date”).

 

14.
Counterparts. This Agreement may be executed in counterparts, and each counterpart shall have the same force and effect
as an original and shall constitute an effective, binding agreement on the part of each of the undersigned.

 

15.
Voluntary Execution of Agreement. This Agreement is executed voluntarily and without any duress or undue influence on the
part or behalf of the Parties hereto, with the full intent of releasing all claims. The Parties acknowledge that:

 

(a)
They have read this Agreement;

 

(b)
They have been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of their own choice
or that they have voluntarily declined to seek such counsel;

 

(c)
They understand the terms and consequences of this Agreement and of the releases it contains; and

 

(d)
They are fully aware of the legal and binding effect of this Agreement.

 

[Signature
Page Follows]

 

    	-4-

    	 

    

 

IN
WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below.

 

	 	SIERRA
    MONITOR CORPORATION
	 	 	 
	Dated:
    October 16, 2017	By
    	/s/
    C. Richard Kramlich
	 	 	C.
    Richard Kramlich
	 	 	Member
    of the Board of Directors of 
	 	 	Sierra
    Monitor Corporation
	 	 	 
	AGREED:	 	 
	 	 	 
	 	GORDON
    R. ARNOLD, an individual
	 	 	 
	Dated:
    October 16, 2017	 	/s/
    Gordon R. Arnold
	 	 	Gordon
    R. Arnold

 

    	-5-

    	 

    

 

APPENDIX
A

 

SUPPLEMENTAL
SEPARATION AND GENERAL RELEASE AGREEMENT

 

This
Supplemental Separation and General Release Agreement (the “Release Agreement”) is made by and between
Sierra Monitor Corporation (the “Company” together with its subsidiaries, the “Sierra Monitor
Group”) and Gordon R. Arnold (the “Executive”) (collectively referred to as the “Parties”
or individually referred to as a “Party”).

 

WHEREAS,
Executive was employed with the Company;

 

WHEREAS,
the Parties entered into a Transition Agreement that Executive signed on (the “Transition Agreement”)
which shall remain in full force and effect and is fully incorporated herein except to the extent it is not consistent with this
Release Agreement;

 

WHEREAS,
Executive’s employment with the Company terminated effective (the “Separation Date”); and

 

WHEREAS,
Executive shall be entitled to elect continued coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985,
as amended (“COBRA”) within the time period prescribed pursuant to COBRA.

 

NOW
THEREFORE, in consideration of the mutual promises made herein, the Company and Executive hereby agree as follows:

 

1.
Consideration.

 

(a)
Payment. The Company agrees to pay Executive a total of Dollars ($ ), less applicable withholdings, in accordance with
the Company’s regular payroll practices, within ten (10) business days after the Effective Date.

 

(b)
Acknowledgement. Executive acknowledges that without this Agreement, Executive is otherwise not entitled to the consideration
listed in this Section 1.

 

2.
Benefits. Executive’s health insurance benefits shall cease on the last day of the month in which the Separation
Date occurs, subject to Executive’s right to continue Executive’s health insurance under COBRA. Executive’s
participation in all benefits and incidents of employment, including, but not limited to, vesting in stock options, and the accrual
of bonuses, vacation, and paid time off, ceased as of the Separation Date.

 

3.
Payment of Salary. Executive acknowledges and represents that, through the Effective Date of this Release Agreement, the
Sierra Monitor Group has paid Executive all salary, wages, bonuses, commissions, profit-sharing, reimbursable expenses, interest,
all equity awards, including, without limitation, stock, stock options, restricted stock and restricted stock units, outplacement
costs, fees and any and all other benefits and compensation due to Executive.

 

    	A-2

    	 

    

 

4.
Confidentiality. The Parties acknowledge that Executive’s agreement to keep the terms and conditions of this Release
Agreement confidential was a material factor on which all parties relied in entering into this Release Agreement. Except as required
by law, Executive hereto agrees to use his best efforts to maintain in confidence the existence of this Release Agreement, the
contents and terms of this Release Agreement, and the consideration for this Release Agreement (hereinafter collectively referred
to as “Settlement Information”), except that Executive may disclose the Separation Information to Executive’s
attorneys, accountants, governmental entities, and family members who have a reasonable need to know of such Settlement Information.
Executive agrees to take every reasonable precaution to prevent disclosure of any Settlement Information to third parties, and
agrees that there will be no publicity, directly or indirectly, concerning any Settlement Information.

 

5.
Covenants/Company Property. Executive agrees to abide by and acknowledges that he is bound by the covenants set forth in
the Change of Control Agreement and the Confidentiality Agreement, including, without limitation, the non-solicitation and non-disparagement
covenants set forth in Sections 10 and 11 of the Change of Control Agreement. Executive’s signature below constitutes Employee’s
certification under penalty of perjury that Executive has returned all documents and other items provided to Executive by the
Company (with the exception of a copy of the employee handbook and personnel documents specifically relating to Executive), developed
or obtained by Executive in connection with Executive’s employment with the Company, or otherwise belonging to the Company.

 

6.
Release of Claims. Executive agrees that the foregoing consideration represents settlement in full of any and all outstanding
obligations under any applicable law owed to Executive by the Sierra Monitor Group and their current and former officers, directors,
employees, agents, investors, attorneys, shareholders, administrators, affiliates, benefit plans, plan administrators, insurers,
trustees, divisions, related corporations and subsidiaries, and predecessor and successor corporations and assigns (collectively,
the “Releasees”). Executive, on his own behalf and on behalf of his respective heirs, family members,
executors, agents, and assigns, hereby and forever releases the Releasees from, and agrees not to sue concerning, or in any manner
to institute, prosecute, or pursue, any claim, complaint, charge, duty, obligation, demand, or cause of action relating to any
matters of any kind, under any applicable law, whether presently known or unknown, suspected or unsuspected, that Executive may
possess against any of the Releasees arising from any omissions, acts, facts, or damages that have occurred up until and including
the Effective Date of this Release Agreement, including, without limitation:

 

(a)
any and all claims relating to or arising from Executive’s employment relationship with the Sierra Monitor Group and the
termination of those relationships;

 

(b)
any and all claims relating to, or arising from, Executive’s right to purchase, or actual purchase of shares of stock of
Sierra Monitor or any member of the Sierra Monitor Group, including, without limitation, any claims for fraud, misrepresentation,
breach of fiduciary duty, breach of duty under applicable corporate law, and securities fraud under any applicable law;

 

(c)
any and all claims for wrongful discharge of employment; termination in violation of public policy; discrimination; harassment;
retaliation; breach of contract, both express and implied; breach of covenant of good faith and fair dealing, both express and
implied; promissory estoppel; negligent or intentional infliction of emotional distress; fraud; negligent or intentional misrepresentation;
negligent or intentional interference with contract or prospective economic advantage; unfair business practices; defamation;
libel; slander; negligence; personal injury; assault; battery; invasion of privacy; false imprisonment; conversion; and disability
benefits;

 

    	A-3

    	 

    

 

(d)
any and all claims for violation of laws under any foreign jurisdiction, including, but not limited to, the United States, any
federal, state, or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964; the Civil Rights
Act of 1991; the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990; the Equal Pay Act; the Fair Labor Standards
Act; the Fair Credit Reporting Act; the Age Discrimination in Employment Act of 1967; the Older Workers Benefit Protection Act;
Employee Retirement Income Security Act of 1974; the Worker Adjustment and Retraining Notification Act; the Family and Medical
Leave Act; the Sarbanes-Oxley Act of 2002; the California Family Rights Act; the California Labor Code; the California Workers’
Compensation Act; the California Fair Employment and Housing Act; and the Utah Antidiscrimination Act;

 

(e)
any and all claims for violation of the federal or any state constitution;

 

(f)
any and all claims arising out of any other laws and regulations relating to employment or employment discrimination;

 

(g)
any claim for any loss, cost, damage, or expense arising out of any dispute over the nonwithholding or other tax treatment of
any of the proceeds received by Executive as a result of this Release Agreement or otherwise during Executive’s employment
with the Sierra Monitor Group; and

 

(h)
any and all claims for attorneys’ fees and costs.

 

(i)
Executive agrees that the release set forth in this section shall be and remain in effect in all respects as a complete general
release as to the matters released. This release does not extend to any obligations incurred under this Release Agreement. Where
applicable, this release does not release claims that cannot be released as a matter of law, including, but not limited to, Executive’s
right to file a charge with or participate in a charge by the Equal Employment Opportunity Commission, or any other local, state,
or federal administrative body or government agency that is authorized to enforce or administer laws related to employment, against
Sierra Monitor. Executive represents that he has made no assignment or transfer of any right, claim, complaint, charge, duty,
obligation, demand, cause of action, or other matter waived or released by this Section.

 

    	A-4

    	 

    

7.
Acknowledgment of Waiver of Claims under ADEA. Executive acknowledges that he is waiving and releasing any rights he may
have under the Age Discrimination in Employment Act of 1967 (“ADEA”), and that this waiver and release
is knowing and voluntary. Executive agrees that this waiver and release does not apply to any rights or claims that may arise
under the ADEA after the Effective Date of this Release Agreement. Executive acknowledges that the consideration given for this
waiver and release is in addition to anything of value to which Executive was already entitled. Executive further acknowledges
that he has been advised by this writing that: (a) he should consult with an attorney prior to executing this Release Agreement;
(b) he has twenty-one (21) days within which to consider this Release Agreement; (c) he has seven (7) days following his execution
of this Release Agreement to revoke this Release Agreement; (d) this Release Agreement shall not be effective until after the
revocation period has expired; and (e) nothing in this Release Agreement prevents or precludes Executive from challenging or seeking
a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties,
or costs for doing so, unless specifically authorized by federal law. In the event Executive signs this Release Agreement and
returns it to Sierra Monitor in less than the 21-day period identified above, Executive hereby acknowledges that he has freely
and voluntarily chosen to waive the time period allotted for considering this Release Agreement. The Parties agree that changes,
whether material or immaterial, do not restart the running of the 21-day period.

 

8.
California Civil Code Section 1542; Release of Unknown Claims. Executive acknowledges that he has been advised to consult
with legal counsel and is familiar with the provisions of California Civil Code Section 1542, a statute that otherwise prohibits
the release of unknown claims, which provides as follows:

 

A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME
OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

 

Executive,
being aware of said section, agrees to expressly waive any rights he may have thereunder, as well as under any other statute or
common law principles of similar effect.

 

9.
Cooperation. Executive agrees to cooperate as reasonably necessary in defense of any actual or potential obligation, claim,
demand, judgment, recovery, dispute, lawsuit, subpoena or grievance (collectively “Disputes”) initiated
or currently in progress against the Sierra Monitor Group, even if he is not named as a party. Such cooperation shall include,
without limitation, making himself available, upon reasonable notice, to Sierra Monitor and its counsel to provide information
relating to such Disputes and appearing for depositions, trial, settlement negotiations, or other activities in defense of the
Disputes as requested by the Sierra Monitor and/or its counsel. In addition, Executive agrees that he will not knowingly encourage,
counsel, or assist any attorneys or their clients in the presentation or prosecution of any disputes, differences, grievances,
claims, charges, or complaints by any third party against any of the Releasees, unless under a subpoena or other court order to
do so or as related directly to the ADEA waiver in this Release Agreement. Executive agrees both to immediately notify Sierra
Monitor upon receipt of any such subpoena or court order, and to furnish, within three (3) business days of its receipt, a copy
of such subpoena or other court order. If approached by anyone for counsel or assistance in the presentation or prosecution of
any disputes, differences, grievances, claims, charges, or complaints against any of the Releasees, Executive shall state no more
than that he cannot provide counsel or assistance.

 

10.
No Pending or Future Lawsuits. Executive represents that he has no lawsuits, claims, or actions pending in his name, or
on behalf of any other person or entity, against the Sierra Monitor Group or any other person or entity referred to herein. Executive
also represents that he does not intend to bring any claims on his own behalf or on behalf of any other person or entity against
the Sierra Monitor Group or any other person or entity referred to herein.

 

    	A-5

    	 

    

 

11.
Protected Activity Not Prohibited. Executive understands that nothing in this Agreement shall in any way limit or prohibit
Executive from engaging in any Protected Activity. For purposes of this Agreement, “Protected Activity” shall mean
filing a charge, complaint, or report with, or otherwise communicating, cooperating, or participating in any investigation or
proceeding that may be conducted by, any federal, state or local government agency or commission, including the Securities and
Exchange Commission, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, and the National
Labor Relations Board (“Government Agencies”). Executive understands that in connection with such Protected Activity,
Executive is permitted to disclose documents or other information as permitted by law, and without giving notice to, or receiving
authorization from, the Company. Notwithstanding the foregoing, Executive agrees to take all reasonable precautions to prevent
any unauthorized use or disclosure of any information that may constitute Company confidential information under the Confidentiality
Agreement to any parties other than the Government Agencies. Executive further understands that “Protected Activity”
does not include the disclosure of any Company attorney-client privileged communications. Any language in the Confidentiality
Agreement regarding Executive’s right to engage in Protected Activity that conflicts with, or is contrary to, this paragraph
is superseded by this Agreement.

 

12.
Costs. The Parties shall each bear their own costs, expert fees, attorneys’ fees and other fees incurred in connection
with this Release Agreement.

 

13.
Indemnification. Executive agrees to indemnify and hold harmless the Sierra Monitor Group from and against any and all
loss, costs, damages or expenses, including, without limitation, attorneys’ fees or expenses incurred by any member of the
Sierra Monitor Group arising out of the breach of this Release Agreement by Executive, or any liabilities incurred by the Sierra
Monitor Group arising out of obligations of Executive as set forth herein, or from any false representation made herein by Executive,
or from any action or proceeding which may be commenced, prosecuted or threatened by Executive or for Executive’s benefit,
upon Executive’s initiative, or with Executive’s aid or approval, contrary to the provisions of this Release Agreement,
with the exception any legal action by Executive challenging or seeking a determination in good faith of the validity of the waiver
herein under the ADEA. Executive further agrees that in any such action or proceeding, this Release Agreement may be pled by any
member of the Sierra Monitor Group as a complete defense, or may be asserted by way of counterclaim or cross-claim.

 

14.
Arbitration. In accordance with Section 8 of the Change of Control Agreement, any and all controversies, claims, or disputes
with anyone (including Sierra Monitor and any employee, officer, director, shareholder or benefit plan of Sierra Monitor in their
capacity as such or otherwise) arising out of, relating to, or resulting from Executive’s employment with the Sierra Monitor
Group or the termination of his employment with the Sierra Monitor Group, including any breach of this Agreement, shall be subject
to binding arbitration as set forth therein.

 

    	A-6

    	 

    

 

15.
Authority. Sierra Monitor represents and warrants that the undersigned has the authority to act on behalf of Sierra Monitor
and to bind the Sierra Monitor Group and all who may claim through it to the terms and conditions of this Release Agreement. Executive
represents and warrants that he has the capacity to act on his own behalf and on behalf of all who might claim through him to
bind them to the terms and conditions of this Release Agreement. Each Party warrants and represents that there are no liens or
claims of lien or assignments in law or equity or otherwise of or against any of the claims or causes of action released herein.

 

16.
No Representations. Each party represents that it has had the opportunity to consult with an attorney, and has carefully
read and understands the scope and effect of the provisions of this Release Agreement. Neither party has relied upon any representations
or statements made by the other Party hereto which are not specifically set forth in this Release Agreement.

 

17.
Severability. In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be
illegal, unenforceable or void, the validity of the other provisions of this Release Agreement shall not be impaired. If any provision
of this Release Agreement shall be deemed invalid as to its scope, then, notwithstanding such invalidity, such provision shall
be valid to the fullest extent permitted by law, and the parties agree that, if any court or arbitrator makes such a determination,
such court or arbitrator shall have the power to modify the duration, scope and/or area of such provision and/or to delete specific
words and phrases by “blue penciling” and, in its reduced or blue penciled form, to enforce such provision to the
fullest extent permitted by law.

 

18.
Entire Agreement. This Release Agreement, the Change of Control Agreement, the Confidentiality Agreement, the Indemnification
Agreement, and the agreements relating to the Options, and the Stock Plan and Option Agreement, constitute the entire agreement
and understanding between the Parties concerning the subject matter herein and all prior representations, understandings, and
agreements concerning the subject matter of this Release Agreement have been superseded by the terms of this Release Agreement.

 

19.
No Waiver. The failure of any party to insist upon the performance of any of the terms and conditions in this Release Agreement,
or the failure to prosecute any breach of any of the terms and conditions of this Release Agreement, shall not be construed thereafter
as a waiver of any such terms or conditions. This entire Release Agreement shall remain in full force and effect as if no such
forbearance or failure of performance had occurred.

 

20.
No Oral Modification. Any modification or amendment of this Release Agreement, or additional obligation assumed by either
party in connection with this Release Agreement, shall be effective only if placed in writing and signed by Executive for himself
and by a member of Sierra Monitor’s Board of Directors. No provision of this Release Agreement can be changed, altered,
modified, or waived except by an executed writing by the Parties.

 

21.
Governing Law. This Release Agreement shall be construed, interpreted, governed, and enforced in accordance with the laws
of the State of California. Executive consents to personal and exclusive jurisdiction and venue in the State of California.

 

22.
Attorneys’ Fees. In the event that any Party brings an action to enforce or effect its rights under this Release
Agreement, the prevailing party shall be entitled to recover its costs and expenses, including the costs of mediation, arbitration,
litigation, court fees, plus reasonable attorneys’ fees, incurred in connection with such an action.

 

23.
Effective Date. Executive understands that this Release Agreement shall be null and void if not executed by him within
twenty one (21) days. Each Party has seven (7) days after that Party signs this Release Agreement to revoke it. This Release Agreement
will become effective on the eighth (8th) day after Executive signed this Release Agreement, so long as it has been signed by
the Parties and has not been revoked by either Party before that date (the “Effective Date”).

 

24.
Counterparts. This Release Agreement may be executed in counterparts, and each counterpart shall have the same force and
effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned.

 

25.
Voluntary Execution of Agreement. This Release Agreement is executed voluntarily and without any duress or undue influence
on the part or behalf of the Parties hereto, with the full intent of releasing all claims. The Parties acknowledge that:

 

(a)
They have read this Release Agreement;

 

(b)
They have been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of their own choice
or that they have voluntarily declined to seek such counsel;

 

(c)
They understand the terms and consequences of this Release Agreement and of the releases it contains; and

 

(d)
They are fully aware of the legal and binding effect of this Release Agreement.

 

[Signature
Page Follows]

 

    	A-7

    	 

    

 

IN
WITNESS WHEREOF, the Parties have executed this Release Agreement on the respective dates set forth below.

 

	 	SIERRA
    MONITOR CORPORATION
	 	 	 
	Dated:
    _______________	By
    	                                                          
	 	Name:	 
	 	Title:	 
	 	 	 
	AGREED:	 	 
	 	 	 
	 	GORDON
    R. ARNOLD, an individual
	 	 	 
	Dated:
    _______________	 	 
	 	 	Gordon
    R. Arnold

 

    	A-8

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