Document:

Exhibit 10.1 Marketing Agreement

EXCLUSIVE MARKETING AGREEMENT

This Exclusive Marketing Agreement (the “Agreement”) is effective this 21st day of December 2015 (the “Effective Date”):

BETWEEN

Andrey Smirnov (“SMIRNOV”), an individual residing at 20 Kirov Blvd., Apartment 117, Dnepropetrovsk, Ukraine, 49101

AND

Monarchy Ventures Inc. (“MONARCHY”), a corporation organized under the laws of the state of Nevada with its principal office at 3651 Lindell Road, Suite D612, Las Vegas, NV 89103.

WHEREAS 

A.

SMIRNOV is the owner of the underlying intellectual property of a health and fitness app currently under development for iPhone, Android, tablets and desktop computers (the “Subject Product” as further defined below);

B.

SMIRNOV is willing to grant the exclusive world-wide rights to develop and market the Subject Product to MONARCHY on the terms set forth herein;

C.

MONARCHY desires to obtain said exclusive rights to develop and market the Subject Product.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto expressly agree as follows:

1.

DEFINITIONS AS USED HEREIN

1.1

The term “Subject Product” shall mean the app called “60K” and its underlying intellectual property specifically the algorithm that looks at the biological, physiological, and fitness profile of each user, designs a custom diet and fitness plan, and provides regular prompts to the user as to when and what to do and eat throughout the day.

1.2

The term “Territory” shall mean and include the entire world.

1.3

The term “Subscription” shall mean a client paying a monthly fee to use the app.  

1.4

The term “Parties” shall mean MONARCHY and SMIRNOV collectively.

2.

GRANTING OF RIGHTS

2.1

SMIRNOV hereby grants to MONARCHY the exclusive right to market, sell and offer for sale the Subject Product throughout the Territory.  

3.

MARKETING

3.1

MONARCHY shall use reasonable efforts, as defined herein, to affect the sale of Subject Product through promotions, social media, crowd funding, app stores, internet search engines and conventional advertising.

3.2

The Parties have agreed to a free promotional period after general release to offer the Subject Product to the general product for a limited time to create interest in the app.

3.3

The Parties will communicate in writing regarding any improvements or enhancements to the Subject Product to ensure a combined effort to exploit any such new improvements or enhancements.  

3.4 

SMIRNOV shall have the right to review and approve MONARCHY’s plans to expand its sales and marketing of the Subject Product. Prior to the official opening of any foreign market by MONARCHY, MONARCHY shall disclose to SMIRNOV its plan and other material information relating to any proposed expansion.  If SMIRNOV objects to any aspect of MONARCHY’s proposed expansion plan, it shall communicate said objection(s) to MONARCHY.  The Parties agree to use their best efforts to reach a mutually satisfactory agreement relative to any and all objections.

4.

PAYMENTS AND REPORTS

4.1 

MONARCHY shall provide one hundred thousand US dollars (US$100,000) in initial financing (the “Initial Funding Limit”) to complete the app as well as for marketing the release of a prototype.  SMIRNOV will provide MONARCHY will a detailed accounting of outstanding development costs and MONARCHY shall provide SMIRNOV with an accounting of proposed marketing expenditures which, in the aggregate, shall not exceed the Initial Funding Limit.

 

4.2

MONARCHY shall appoint SMIRNOV or his designate one seat on MONARCHY’s Board of Directors.  The appointment shall be provided for as long as this Agreement and the exclusivity of the rights granted herein remain in effect.

4.3

MONARCHY shall provide to SMIRNOV a written report each month of new Subscriptions, cancelled Subscriptions, total Subscriptions, and revenue generated from the Subscriptions broken down by country.

4.4

MONARCHY will retain a 30% marketing fee on all revenue generated each month and the balance will be paid to SMIRNOV.

4.5 

Should MONARCHY fail to make any payment payable to SMIRNOV at the time it is due, it shall be deemed an event of default as provided for under Paragraph 11.3.

4.6 

All payments due hereunder shall be paid by international wire transfer to SMIRNOV or to the account of SMIRNOV at such bank as SMIRNOV may from time to time designate by notice to MONARCHY.

4.7 

In the event that any payment due hereunder is not made when due, the payment shall accrue interest beginning on the tenth day following the due date thereof, calculated at the rate of six percent per annum.  Each payment shall be applied firstly to past due interest and secondly on account of the principal amount due and owing.  Each payment when made shall be accompanied by interest accrued to the date of payment.  The payment and acceptance thereof shall not negate or waive the right of SMIRNOV to seek any other remedy, legal or equitable, to which it may be entitled because of the delinquency of any payment.

5. 

RECORDS AND INSPECTION

5.1

MONARCHY shall maintain or cause to be maintained a true and correct set of records pertaining to Subscription sales.  During the term of this Agreement, should any disagreement arise as to the amount of Subscriptions sold, the Parties shall mutually appoint an independent accountant to perform an audit of MONARCHY’s records during ordinary business hours.  In all cases where the audit reveals that the total Subscriptions reported is less than the actual total subscriptions, it shall be deemed an event of default as described in paragraph 11.3 herein. MONARCHY may correct said default by paying an amount to SMIRNOV equal to the shortfall amount of SMIRNOV’s share of the revenue plus interest at 18% (eighteen percent) per annum from the original date of the Subscription. In addition, MONARCHY shall be responsible for any and all costs incurred by SMIRNOV in connection with any audit or investigation which results in the determination of a shortfall amount in the number of Subscriptions.

6.

PROPRIETARY INFORMATION

6.1

“Proprietary Information” as used herein shall mean all or any portion of only the: (a) written, recorded, graphical or other information in tangible form disclosed  during the term of this Agreement, by one party to the other party which is labeled “Proprietary”, “Confidential”, or with a similar legend denoting the proprietary interest  therein of the disclosing party; (b) oral information which is disclosed by one party to the other party to the extent it is identified as “Proprietary” or “Confidential” at the time of oral disclosure, is reduced to written or other tangible form within thirty (30) days of oral disclosure, and such written or tangible form is labeled “Proprietary”, “Confidential”, or  with a similar legend denoting the proprietary interest therein of the disclosing party; and (c) algorithms or methodologies disclosed, during the Term of this Agreement,  by one party to the other party which have been identified in writing at the time of disclosure as being proprietary to the disclosing party; and provided further, however, Proprietary Information shall not include any data, information or device that is: (i) in the possession of the receiving party prior to its disclosure by the disclosing party and not subject to other restriction on disclosure; (ii) independently developed by the receiving party; (iii) publicly disclosed by the disclosing party; (iv) rightfully received by the receiving party from a third party without restrictions on disclosure; (v) approved for  unrestricted release or unrestricted disclosure by the disclosing party; or (vi) produced or  disclosed pursuant to applicable laws, regulations or court order, provided the receiving party has given the disclosing party prompt notice of such request so that the disclosing  party has an opportunity to defend, limit or protect such production or disclosure.

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7.

RESTRICTIONS

7.1 

The Parties agree, for a period of five (5) years from the date of disclosure, without the prior written consent of the other Party regarding a specific contemplated transaction: (a) not to disclose Proprietary Information of the other Party outside of the receiving Party (b) to limit dissemination of the other Party’s Proprietary Information to only those of the receiving Party’s officers, directors and employees who require access thereto to perform their functions regarding the purposes of his Agreement; and (c) not to use Proprietary Information of the other Party except for the purposes of this   Agreement, which purposes shall include disclosure to subcontractors and second sources, both in accordance with nondisclosure agreements.  The standard of care to be exercised by the receiving Party to meet these obligations shall be the standard exercised by the receiving Party with respect to its own proprietary information of a similar nature, but in no event less than due care.

8.

OWNERSHIP

8.1      Each Party retains all rights and title to all Proprietary Information, in any form, disclosed to the other Party pursuant to this Agreement.  Each Party acknowledges that such information is of substantial value and that any disclosure or misuse of such information is harmful to the originating Party.

9.

NONDISCLOSURE AGREEMENTS AND CONFIDENTIALITY

9.1

The Parties shall only disclose Proprietary Information to those employees and independent contractors who require access to the Proprietary Information to permit a Party to exercise its rights and perform its obligations under this Agreement.  A Party shall not disclose any Proprietary Information to any employee or independent contractor unless the employee or independent contractor has signed a nondisclosure agreement incorporating provisions obligating the employee or independent contractor to maintain the confidentiality of the other Party’s Proprietary Information.  The Parties agree to keep   the terms and conditions of this Agreement confidential and proprietary among the Parties and/or their affiliates.

 

9.2.

MONARCHY shall use branding owned by SMIRNOV on the Subject Product, marketing materials or other written descriptions of the Subject Product, labeling, sales materials and other related protected, digital or filmed communications worldwide.

10.

TRADEMARKS

10.1 

SMIRNOV reserves the right to, at their sole discretion, periodically review and monitor MONARCHY’s use of their marks for proper trademark usage and other criteria as may be required by law to preserve SMIRNOV’s rights, goodwill, and value in its trademarks.

11.

TERM, TERRITORY AND TERMINATION

11.1 

The Parties shall agree to an annual quota of total Subscriptions of the Subject Product. There will be no quota for the first year but will be negotiated by the parties 12 months from the date the Subject Product is released for general public use. If total Subscriptions do not meet or exceed said quota, the exclusivity of the rights granted herein shall be extinguished. 

11.2 

Unless earlier terminated as hereinafter provided, this Agreement shall continue in full force and effect for a period of five (5) years from December 21, 2015 through December 20, 2020.  If MONARCHY has met the terms of this Agreement and the quota amounts for the first five (5) years, MONARCHY shall have the option to extend this Agreement for an additional five (5) years subject to the successful negotiation of the quota and payments for the additional five (5) year term.

11.3 

In the event of default or failure by MONARCHY to perform any of the terms, covenants or provisions of this Agreement, MONARCHY shall have thirty (30) days after the giving of written notice of such default by SMIRNOV to correct such default.  If such default is not corrected within the said thirty (30) day period, SMIRNOV shall have the right, at its option, to cancel and terminate this Agreement.  The failure of SMIRNOV to exercise such right of termination for any non-payment or otherwise shall not be deemed to be a waiver of any right SMIRNOV might have, nor shall such failure preclude SMIRNOV from exercising or enforcing said right upon any subsequent failure by MONARCHY.

11.4 

SMIRNOV shall have the right, at its option, to cancel and terminate this  Agreement in the event that MONARCHY shall (i) become involved in insolvency, dissolution, bankruptcy or receivership proceedings affecting the operation of its business or (ii) make an assignment of all or substantially all of its assets for the benefit of creditors, or in the event that (iii) a receiver or trustee is appointed for MONARCHY and MONARCHY shall, after the expiration of thirty (30) days following any of the events enumerated above, have been unable to secure a dismissal, stay or other suspension of such proceedings.

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11.5 

At the date of any termination of this Agreement pursuant to Paragraph 11.3 thereof for breach by MONARCHY, or pursuant to Paragraph 11.4 hereof, as of the receipt by MONARCHY of notice of such termination, MONARCHY shall immediately cease representing itself as the marketing agent of the Subject Product and remove any such representations from websites, sales materials, social media or other similar materials or mediums.

11.6 

In the event of termination of the Agreement for any reason or upon extinguishment of the exclusivity rights of this Agreement pursuant to Paragraph 11.1, SMIRNOV or his designate will immediately resign his position on MONARCHY’s Board of Directors as appointed under the provisions of Paragraph 4.2.

11.7

No termination of this Agreement shall constitute a termination or a waiver of any rights of either Party against the other Party accruing at or prior to the time of such termination.  The obligations of Section 6 shall survive termination of this Agreement.

12.

ASSIGNABILITY

12.1 

This Agreement and the rights granted hereunder shall not be assigned by MONARCHY without the prior written consent of SMIRNOV.  

13.

ADDRESSES

13.1

Any payment, notice or other communication pursuant to this Agreement shall be sufficiently made or given on the date of mailing if sent to such Party by first class mail, postage prepaid, addressed to it at its address as above first written or as it shall designate by written notice given to the other Party:

14.

ADDITIONAL PROVISIONS

14.1

Each Party shall notify the other of any claim, lawsuit or other proceeding related to the Subject Product.  MONARCHY agrees that it will defend, indemnify and hold harmless SMIRNOV, its researchers, employees, officers, trustees, directors, and each of them (the “SMIRNOV Indemnified Parties”), from and against any and all claims, causes of action, lawsuits or other proceedings filed or otherwise instituted against any of SMIRNOV Indemnified Parties related directly or indirectly to or arising out of any action taken or omission by MONARCHY.  SMIRNOV agrees that it will defend, indemnify and hold harmless MONARCHY, its employees, officers, trustees, directors and agents and each of them (the “MONARCHY Indemnified Parties”) from and against any and all claims, causes of action, lawsuits or other proceedings filed or otherwise instituted against any of MONARCHY Indemnified Parties related directly or indirectly to or arising out of any action taken or omission by SMIRNOV.  Each Party shall assume responsibility for all costs and expenses related to such claims and lawsuits for which it is obligated to indemnify the other Party, including but not limited to all reasonable attorneys’ fees and costs of litigation or other defense.

14.2

The parties agree to binding arbitration pursuant to the provisions of the American Arbitration Association, provided however, that this arbitration provision shall not preclude either Party from seeking injunctive relief from any court having jurisdiction with respect to any disputes or claims relating to or arising out of the misuse or misappropriation of either Party’s trade secrets or confidential and proprietary information.  The arbitrator shall award costs and fees, including reasonable attorneys’ fees, to the prevailing party, or he/she shall be free to apportion costs and fees as he/she deems reasonable under the circumstances.  This Agreement and the terms hereof shall be governed by the laws of the state of Nevada.

14.3

The Parties herby acknowledge and agree that each is an independent contractor and neither Party has any authority to enter into a contract, to assume any obligation or to give warranties or representations on behalf of the other Party.  Nothing in this relationship shall be construed to create a relationship of joint venture partnership, fiduciary, or other similar relationship between the Parties.

14.4 

DISCLAIMER OF WARRANTY. SMIRNOV MAKES NO WARRANTIES OR REPRESENTATIONS, EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF FITNESS OR MERCHANTABILITY, REGARDING OR WITH RESPECT TO THE SUBJECT PRODUCT AND SMIRNOV MAKES NO WARRANTIES OR REPRESENTATIONS, EXPRESSED OR IMPLIED, OF THE PATENTABILITY OF THE SUBJECT PRODUCT OR OF THE ENFORCEABILITY OF ANY PATENTS ISSUING THEREUPON IF ANY, OR THAT THE SUBJECT PRODUCT IS OR SHALL BE FREE FROM INFRINGEMENT OF ANY PATENT OR OTHER RIGHTS OF THIRD PARTIES.

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14.5

The Parties covenant and agree that if a Party fails or neglects for any reason to take advantage of any of the terms providing for the termination of this Agreement or if a Party, having the right to declare this Agreement terminated, shall fail  to do so, any such failure or neglect by such Party shall not be a waiver or be deemed  or be construed to be a waiver of any cause for the termination of this Agreement  subsequently arising, or as a waiver of any of the terms, covenants or conditions of this Agreement or of the performance thereof.  None of the terms, covenants and conditions of this Agreement may be waived by a Party except by its written consent.

14.6

 All Parties hereby agree that neither Party intends to violate any public policy, statutory or common law, rule, regulation, treaty or decision of any government agency or executive body thereof of any country or community or association of countries.  If any word, sentence, paragraph or clause or combination thereof of this Agreement is found, by a court or executive body with judicial powers having jurisdiction over this Agreement or any of its Parties hereto to be in violation of any such provision in any country or community or association of countries, such words, sentences, paragraphs or clauses or combination shall be inoperative in such country or community or association of countries, and the remainder of the Agreement shall remain binding upon the Parties hereto.

14.7

No liability hereunder shall result to a Party by reason of delay in  performance caused by force majeure that are circumstances beyond the reasonable control of the Party, including, without limitation, acts of God, fire, flood, war, civil unrest, labor unrest, or shortage of or inability to obtain material or equipment.

14.8

The terms and conditions herein constitute the entire Agreement between the Parties and shall supersede all previous agreements, either oral or written, between the Parties hereto with respect to the subject matter hereof.  No agreement or understanding bearing on this Agreement shall be binding upon either Party hereto unless it shall be in writing and signed by the duly authorized officer or representative of each of the Parties and shall expressly refer to this Agreement.

IN WITNESS WHEREOF, the Parties hereto have executed and delivered this Agreement in whole or by counterpart as of the Effective Date.

/s/ Timothy Ferguson

/s/ Andrey Smirnov

______________________________

_____________________________

Timothy Ferguson, President

Andrey Smirnov

Monarchy Ventures Inc.

5EX-10.1

 Exhibit 10.1 

SEVERANCE AND RELEASE AGREEMENT 

This Severance and Release Agreement (this “Agreement”) is entered by and between David M. Shear (“Executive”) and LSB
Industries, Inc. (the “Company”) (collectively, the “Parties”), effective as of December 31, 2015 (“Termination Date”). 

WHEREAS, Executive has resigned from employment with the Company effective December 31, 2015; 

WHEREAS, the parties have agreed to terms of severance benefits in exchange for a release of claims in a form agreeable to the Company; 

WHEREAS, this Agreement sets forth the Parties’ expectations and agreements with respect to the severance benefits and the release of
claims; and, 
 WHEREAS, in exchange for the severance benefits, Executive desires to release any and all claims whatsoever, known or
unknown, that he has or may have against the Company, its affiliated entities, and all those entities’ employees and representatives, as explained more fully below. 

NOW, THEREFORE, in exchange for the promises made by one another in this Agreement, which both parties acknowledge to be valuable promises
sufficient to justify the promises of the other, the Parties agree as follows: 
 1. Resignation. Effective on the Termination
Date the employment relationship between the Company and Executive will be terminated, and the Company will be relieved of Executive’s duties in all respects. Executive resigns from any position as an officer of the Company and as a director,
officer, manager, partner or similar position of each subsidiary or affiliate of the Company. 
 2. Severance Payments to Executive;
Other Consideration. 
 (a) The Company agrees to pay to Executive a severance payment in the total amount of $310,000 (the
“Severance Payment”). The payment shall be made to Executive in installments on the 15th of the month as follows; 
  

					
	 January, 2016
	  	$	25,833	  
	 February, 2016
	  	$	25,833	  
	 March, 2016
	  	$	25,834	  
	 April, 2016
	  	$	0	  
	 May, 2016
	  	$	0	  
	 June, 2016
	  	$	0	  
	 July, 2016
	  	$	103,334	  
	 August, 2016
	  	$	25,833	  
	 September, 2016
	  	$	25,833	  
	 October, 2016
	  	$	25,833	  
	 November, 2016
	  	$	25,834	  
	 December, 2016
	  	$	25,833	  

  
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 provided Executive executes this Agreement and the accompanying General Release, and Executive does not exercise
his statutory right to rescind this Agreement and the General Release attached as Exhibit A. In the event of Executive’s death payment will be made to his estate or designee. 

(b) The Company will pay to Executive a lump sum payment of $7,131.24 on or before January 15, 2016, which shall be referred to as
“COBRA Supplement”. 
 (c) The Company will transfer to Executive without charge the 2015 Lexus ES 350 (VIN #################)
that he is currently using for business purposes. 
 (d) All payments shall be subject to withholding for applicable taxes and other
ordinary payroll deductions. 
 (e) The Company will continue to pay for Executive’s officers and director’s liability policy
covering any claim which may arise as a result of his former employment with the Company, its affiliates or subdivisions. 
 (f) The Company
will pay to Executive for two weeks of earned but unused vacation in the amount of $11,923 on or before January 15, 2016. 
 (g)
Executive will be reimbursed for business expenses incurred during his employment within 14 days of submission of documentation requesting reimbursement in a form compliant with Company policies. Such request for reimbursement shall be submitted on
or before February 1, 2016. 
 3. Representation Regarding Severance Obligations. By signing this Agreement and/or
accepting any payment pursuant to this Agreement, Executive is expressly acknowledging that no other payments, whether salary, bonus, expenses or otherwise, remain unidentified and payable except for the Severance Payments. Specifically, Executive
acknowledges that as a result of his resignation, any benefit otherwise payable under the Nonqualified Benefit Agreement dated January 1, 1992 and amended April 1, 1993 and December 17, 2008 shall become null and void on the last day
of employment, and such agreement shall terminate with no further payment obligations to the Executive or his beneficiaries pursuant to the terms of Section 6 of such agreement. Executive also agrees that his outstanding equity awards which
have not been exercised on or before the Termination Date will be forfeited regardless of whether such awards are vested or unvested. 

4. General Release. As a condition to receiving the Severance Payment and the COBRA supplement above, Executive will return an
executed copy of this Agreement and the attached General Release within twenty-one (21) days of the date of this Agreement. By signing this Agreement, Executive is agreeing that once seven (7) days have passed from the date he signs the
Release, he will not attempt to revoke or rescind the General Release at any time in the future. In addition, Executive is representing that he fully understands the terms of this Agreement and the General Release and that he has had an opportunity
to seek legal advice regarding the General Release and this Agreement, if he desires to do so, before signing these documents. Executive is also representing to the Company that he has not commenced any action or filed any administrative charge or
complaint against the Company in regard to his 

  
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employment between the Termination Date and the date he signs the Agreement and General Release. In the event a change of control (as defined under Section 409A of the Internal Revenue Code
of 1986, as amended), any installments that are unpaid will be paid in a lump sum on the later of July 15, 2016 or the effective date of the change of control. 

5. Requests to Provide Information and Future Activities and Litigation Assistance. At any time in the future, if Executive
receives any subpoena or court order to testify or provide information regarding the Company or his past employment with the Company, Executive will notify the Company at 16 South Pennsylvania Avenue, P.O. Box 754, Oklahoma City, Oklahoma
73107, Attn: President in writing within five (5) days of receipt or by email to an address designated by the Company within twenty-four (24) hours if the subpoena or court order requires compliance sooner than five (5) days. Further,
Executive will not be employed or otherwise act as an expert witness or consultant, or in any similar paid capacity in any litigation, arbitrations, administrative proceedings, governmental inquiries, external investigations or hearings involving
the Company. Upon reasonable notice, Executive will continue to cooperate with and assist the Company and its representatives and attorneys as requested with respect to any litigation, arbitrations, administrative proceedings, governmental
inquiries, investigations (both internal and external) or any other matters concerning or relating to the above by being available for interviews, depositions and/or testimony in regard to any matters in which he is or has been involved or with
respect to which he has relevant information without the need for a subpoena. If Executive is required to testify at deposition and/or trial, Executive will be paid compensation for his preparation and appearance time in an amount agreed upon by
Executive and Company. 
 6. Confidentiality of Information. Executive agrees that, except with the prior written consent of
the Company or if previously publically disclosed by the Company, he will not, at any time after the date of this Agreement, make any independent use of or disclose to any other person or organization, including any governmental agency, the terms
and provisions of this Agreement and the discussions surrounding it, as well as any of the Company’s confidential, proprietary information or trade secrets, for a period of twenty-four (24) months following the Termination Date; provided
that this provision does not bar disclosure of (1) information in the public domain; (2) information required to be disclosed by law, rule, or regulation; and (3) information previously disclosed to a third-party by the Company who in
turn discloses the information to Executive. This shall apply to any information which is of a special and unique value and includes, without limitation, both written and unwritten information relating to operations and marketing; business planning
and strategies; finance; accounting; costs of providing service; operating and maintenance costs; and pricing matters. This obligation regarding the Company’s confidential, proprietary information or trade secrets is in addition to, but does
not replace, any prior agreement between Executive and the Company regarding confidentiality. This paragraph does not prohibit Executive from reporting possible violations of federal and/or state law or regulation to any governmental agency or
entity, including, but not limited to the Department of Justice, the Securities and Exchange Commission, Congress or any agency Inspector General and/or the Equal Employment Opportunity Commission (or a similar fair employment practices agency of
Executive’s State of residence or employment) or with other similarly situated employees. Subject to applicable law, Executive covenants and agrees that Executive shall not in any way publicly disparage, call into disrepute, or otherwise defame
or slander the Company or any of its subsidiaries, in any manner that would materially damage 

  
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the business or reputation of the Company or any of its subsidiaries. The Company covenants and agrees, on behalf of itself and its subsidiaries, that neither the Company, any of it subsidiaries
nor any of the officers or directors of the Company or any of its subsidiaries shall in any way publicly disparage, call into disrepute, or otherwise defame or slander Executive. Nothing in this Section 8 shall preclude or restrict Executive or
the Company or any of the subsidiaries of the Company from making truthful statements, or the Executive’s retention of documents that he is required to retain or disclose in his capacity as an employee of the Company, including, without
limitation, those that are required by applicable law, regulation or in connection with a legal process or proceeding, and making of such statements shall not be in violation of this Section. 

7. Additional Warranties. Executive represents and warrants that as of this date he has suffered no work related injury with the
Company and that he will not file a claim for worker’s compensation benefits arising from any incident occurring as of the date of this Agreement. Executive further represents that this is an individually-negotiated severance agreement as
contemplated by the federal Older Worker Benefit Protection Act and that Executive is not, and will not hereafter assert that he is, entitled to any greater consideration period or other information in connection with his waiver of rights under the
Age Discrimination in Employment Act that he has received in this Agreement and the General Release, including the Notice. 
 8.
Severability. Executive and the Company agree that if any portion of this Agreement or the General Release or the application of their terms to any person or circumstance or claim is determined, to any extent, to be invalid or
unenforceable, the remainder of this Agreement and the General Release, or the application of such terms to any other persons, circumstances or claims shall not be affected and that this Agreement and General Release shall continue to be valid and
enforceable to the fullest extent permitted by law. 
 9. Attorneys. Executive acknowledges that this Agreement is a binding
legal document with legal consequences, and that the Company has suggested that he, within the time limits identified above, and to the extent he deems necessary or appropriate, seek competent legal counsel to determine the legal effect of this
Agreement, at his own expense. 
 10. Transition of Business and Future Activities. Upon receipt of reasonable notice,
Executive agrees that he shall cooperate with and assist the Company in the transition of any ongoing projects or other job duties or responsibilities, and take all reasonable steps to ensure that the Company’s interests are not adversely
affected due to the termination of the Parties’ employment relationship. Upon reasonable notice, Executive shall make himself available to the Company and the Company’s attorneys, without the necessity of a subpoena or other process, in
connection with any pending or future matter about which he may have relevant information or regarding which he had direct involvement because of his prior employment with the Company. Executive will be compensated for services provided to Company
on or after January 1, 2016 pursuant to the terms of the Independent Contractor’s Agreement between Executive and the Company dated December 31, 2015. 

  
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 11. Return of Company Property. Executive agrees to return Company property,
including but not limited to, any and all originals and/or paper or electronic copies of documents or data related to the business of the Company (or its related persons or entities), computer files, laptop computers, building keys, and the like,
with the exception of automobile currently provided by the Company for Executive’s business use that will be transferred to Executive under Section 2(c). 

12. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Oklahoma,
without regard to its choice of law provisions. 
 13. Amendments. The Agreement may be amended only by the written agreement
signed by both Executive and a duly authorized representative of the Company. 
 14. Section 409A. It is intended that
this Agreement comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), the Treasury regulations and other guidance promulgated or issued thereunder (“Section 409A”), to the extent that
the requirements of Section 409A are applicable thereto, and after application of all available exemptions, including but not limited to, the “short-term deferral rule” and the “involuntary separation pay plan exception,”
and the provisions of this Agreement shall be construed in a manner consistent with that intention. Any provision required for compliance with Section 409A that is omitted from this Agreement shall be incorporated herein by reference and shall
apply retroactively, if necessary, and be deemed a part of this Agreement to the same extent as though expressly set forth herein. To the extent Section 409A is determined to apply to this Agreement, any reference to the Executive’s
termination of employment will mean a cessation of the employment relationship between the Executive and the Company which constitutes a “separation from service” as determined in accordance with Section 409A. If Executive is deemed
on the date of termination to be a “specified employee,” within the meaning of that term under Section 409A(a)(2)(B) of the Code and using the identification methodology selected by the Company from time to time, or if none, the
default methodology, then with regard to any payment or the providing of any benefit made under this Agreement, to the extent required to be delayed in compliance with Section 409A(a)(2)(B) of the Code, and any other payment or the provision of
any other benefit that is required to be delayed in compliance with Section 409A(a)(2)(B) of the Code, such payment or benefit shall not be made or provided prior to the earlier of (i) the expiration of the six-month period measured from
the date of Executive’s “separation from service” or (ii) the date of death. On the first day of the seventh month following the date of “separation from service,” or if earlier, on the date of death, all payments
delayed pursuant to this subparagraph and Section 409A (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to Executive in a lump sum, and any remaining
payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein. 
 In
addition, for purposes of applying the provisions of Section 409A to this Agreement, each separately identified amount to which an Executive is entitled under this Agreement shall be treated as a separate payment within the meaning of
Section 409A, and any series of installment payments under this Agreement, including installment payments set forth in Section 2(a), shall be treated as a right to a series of separate payments under Section 409A, including Treas.
Reg. Section 1.409A-2(b)(2)(iii). The Company shall not have any liability to Executive with respect to tax obligations that result under any tax law and makes no representation with respect to the tax treatment of the payments and/or benefits
provided under this Agreement. 

  
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 15. Successors. 

(a) Company’s Successors. No rights or obligations of the Company under this Agreement may be assigned or transferred except that
the Company will require any successor (whether direct or indirect, by purchase, merger, reorganization, sale, transfer of stock, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to expressly
assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no succession had taken place. As used in this Agreement, “Company” means the Company as herein
defined, and any successor to its or the Company’s business and/or assets (by merger, purchase or otherwise) which executes and delivers the agreement provided for in this Section 15 or which otherwise becomes bound by all the terms and
provisions of this Agreement by operation of law. 
 (b) Executive’s Successors. No rights or obligations of Executive under this
Agreement may be assigned or transferred by Executive other than his rights to payments or benefits under this Agreement, which may be transferred only by will or the laws of descent and distribution. Upon Executive’s death, this Agreement and
all rights of Executive under this Agreement shall inure to the benefit of and be enforceable by Executive’s beneficiary, or personal or legal representatives, or estate, to the extent any such person succeeds to Executive’s interests
under this Agreement. In the event of Executive’s death or a judicial determination of his incompetence, reference in this Agreement to Executive shall be deemed, where appropriate, to refer to his estate or other legal representative(s). If
Executive should die following his date of termination while any amounts would still be payable to him under this Agreement if he had continued to live, unless otherwise provided, all such amounts shall be paid in accordance with the terms of this
Agreement to his beneficiary or personal or legal representatives or estate. 
 [REMAINDER OF PAGE INTENTIONALLY BLANK.] 

  
 Page 6 of 7 

 The Parties to this Agreement have read the foregoing agreement and fully understand each and every provision
contained herein. The Parties agree that this Agreement, together with the General Release, constitutes the entire agreement between Executive and the Company, except for the terms and provisions of his Employment Agreement that remain in full force
and effect. The Parties have executed this Agreement on the dates shown below. 
 EXECUTIVE 

 

									
	 /s/ David M. Shear
	 		 	Dated:	 	 December 30, 2015

	David M. Shear	 		 		 	
				
	COMPANY	 		 		 	
				
	LSB INDUSTRIES, INC.	 		 		 	
					
	By:	 	 /s/ Daniel D. Greenwell
	 		 	Dated:	 	 December 31, 2015

		 	Daniel D. Greenwell	 		 		 	
		 	President/CEO	 		 		 	

  
 Page 7 of 7 

 EXHIBIT A 

GENERAL RELEASE 
 NOTICE. Various laws,
including Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1866, the Pregnancy Discrimination Act of 1978, the Equal Pay Act, the Civil Rights Act of 1991, the Age Discrimination in Employment Act, the Rehabilitation Act of 1973,
the Americans With Disabilities Act, the Employee Retirement Income Security Act and the Veterans Reemployment Rights Act (all as amended from time to time), prohibit employment discrimination based on sex, race, color, national origin, religion,
age, disability, eligibility for covered employee benefits and veteran status. You may also have rights under laws such as the Older Worker Benefit Protection Act of 1990, the Worker Adjustment and Retraining Act of 1988, the Fair Labor Standards
Act, the Family and Medical Leave Act, the Occupational Safety and Health Act and other federal, state and/or municipal statutes, orders or regulations pertaining to labor, employment and/or employee benefits. These laws are enforced through the
United States Department of Labor, including the Equal Employment Opportunity Commission, and various state and municipal labor departments, fair employment boards, human rights commissions and similar agencies. 

The federal Older Worker Benefit Protection Act requires that you have at least twenty-one (21) days, if you want it, to consider whether you wish to
sign a release such as this one in connection with a special, individualized severance package. You have until the close of business twenty-one (21) days from the date you receive this General Release to
make your decision. You may not sign this General Release until, at the earliest, your official date of separation from employment. 
 BEFORE EXECUTING THIS
GENERAL RELEASE YOU SHOULD REVIEW THESE DOCUMENTS CAREFULLY AND CONSULT WITH YOUR ATTORNEY. 
 You may revoke this General Release within seven
(7) days after you sign it and it shall not become effective or enforceable until that revocation period has expired. If you do not accept the severance package and sign and return this General Release, or if you exercise your right to revoke
the General Release after signing it, you will not be eligible for the special, individualized severance package. Any revocation must be in writing and must be received by LSB Industries, Inc., 16 South Pennsylvania Avenue, P.O. Box 754, Oklahoma
City, OK 73107, Attn: President within the seven-day period following your execution of this General Release. 
  

 

  
 A-1 

 GENERAL RELEASE 

In consideration of the special, individualized severance package offered to me by LSB Industries, Inc., I hereby release and discharge LSB Industries, Inc.
and its predecessors, successors, affiliates, parent, subsidiaries and partners and each of those entities’ employees, officers, directors and agents (hereafter collectively referred to as the “Company”) from all claims, liabilities,
demands, and causes of action, known or unknown, fixed or contingent, which I may have or claim to have against the Company either as a result of my past employment with the Company and/or the severance of that relationship and/or otherwise, and
hereby waive any and all rights I may have with respect to and promise not to file a lawsuit to assert any such claims, provided that nothing contained in this General Release shall constitute a release of the Company from any obligations it may
have to the undersigned (a) this Severance and Release Agreement,; or (b) relating to any rights of indemnification and/or defense under the Company’s certificate of incorporation, bylaws, or coverage under officers and directors
insurance. 
 This General Release includes, but is not limited to, claims arising under Title VII of the Civil Rights Act of 1964, the Civil Rights Act of
1866, the Pregnancy Discrimination Act of 1978, the Equal Pay Act, the Civil Rights Act of 1991, the Age Discrimination in Employment Act, the Rehabilitation Act of 1973, the Americans With Disabilities Act, the Employee Retirement Income Security
Act or 1974 and the Veterans Reemployment Rights Act (all as amended from time to time). This General Release also includes, but is not limited to, any rights I may have under the Older Workers Benefit Protection Act of 1990, the Worker Adjustment
and Retraining Act of 1988, the Fair Labor Standards Act, the Family and Medical Leave Act, the Occupational Safety and Health Act and any other federal, state and/or municipal statutes, orders or regulations pertaining to labor, employment and/or
employee benefits. This General Release also applies to any claims or rights I may have growing out of any legal or equitable restrictions on the Company’s rights not to continue an employment relationship with its employees, including any
express or implied employment contracts, and to any claims I may have against the Company for fraudulent inducement or misrepresentation, defamation, wrongful termination or other retaliation claims in connection with workers’ compensation or
alleged “whistleblower” status or on any other basis whatsoever. 
 It is specifically agreed, however, that this General Release does not have
any effect on any rights or claims I may have against the Company which arise after the date I execute this General Release. 
 I have carefully reviewed
and fully understand all the provisions of the Agreement and General Release, including the foregoing Notice. I have not relied on any representation or statement, oral or written, by the Company or any of its representatives, which is not set forth
in those documents. 
 Except as noted above, the Agreement and this General Release, including the foregoing Notice, set forth the entire agreement between
me and the Company with respect to this subject. I understand that my receipt and retention of the separation benefits covered by the Agreement are contingent not only on my execution of this General Release, but also on my with my obligations that
survive and continue in effect in accordance with this Agreement. I acknowledge that the Company gave me twenty-one (21) days to consider whether I wish to accept or reject the 

  
 A-2 

 
separation benefits I am eligible to receive under the Agreement in exchange for this General Release. I also acknowledge that the Company advised me to seek independent legal advice as to these
matters, if I chose to do so. I hereby represent and state that I have taken such actions and obtained such information and independent legal or other advice, if any, that I believed were necessary for me to fully understand the effects and
consequences of the Agreement and General Release prior to signing those documents. 
 Dated this
30th day of December, 2015. 
  

			
		 	 /s/ David M. Shear

		 	David M. Shear

  
 A-3

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