Document:

The
        following abbreviations, when used in the inscription on the face of this
        certificate, shall be construed as though they were written out in full
        according to applicable laws or regulations:

      

      
        	
                TEN
                  COM

              	
                -as
                  tenants in common

              	
                UNIF
                  GIFT MIN ACT -

              	
                ..........
                  Custodian .........

                (Cust.)
                  (Minor)

              
	
                TEN
                  ENT

              	
                -as
                  tenants by the entireties

              	 	
                Under
                  Uniform Gifts to Minors 

              
	
                JT
                  TEN

              	
                -
                  as
                  joint tenants with right of 

                  
                  survivorship and not as tenants in common

              	 	
                Act
                  .............................

                (State)

              
	
                 

                Additional
                  abbreviations may also be used though not in the above
                  list.

              

      

      

        
          	
                  For
                    value received, _________________ hereby sells, assigns and transfers
                    unto

                   

                  PLEASE
                    INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF
                    ASSIGNEE

                   

                    

                  

                   

                  (PLEASE
                    PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE
                    OF
                    ASSIGNEE)

                   

                  
                    
 

                    

                  

                   

                  __________________________________________________
                    Shares of _____________ Common Stock, represented
                    by the
                    within Certificate, and do hereby irrevocably constitute and
                    appoint
                    _________________________________
                    Attorney,

                  to
                    transfer the said Shares on the books of the within named Corporation
                    with
                    full power of substitution in the
                    premises.

                   

                  Dated
                    _________________ 20_________

                   

                  In
                    presence of

                  ___________________________

                   

                  THE
                    SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER
                    THE
                    SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT
                    BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, ASSIGNED, PLEDGED
                    OR
                    HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR UNLESS
                    SUCH
                    REGISTRATION IS NOT REQUIRED.Exhibit
      10.1

    TRANSITION
      AGREEMENT

     

    THIS
      TRANSITION AGREEMENT
      (the
      "Agreement") is entered into as of May 6, 2008, by and between Edward J. Lawson
      ("Lawson") and 21st
      Century
      Holding Company, a Florida corporation (the "Company").

     

    WITNESSETH:

     

    WHEREAS,
      Lawson
      was employed by the Company to serve as the Chief Executive Officer of the
      Company pursuant to an employment agreement dated September 1, 1998, as amended
      by the First Modification Agreement dated December 7, 2004 (collectively, the
      "Employment Agreement");

     

    WHEREAS,
      Lawson
      has decided to retire and will resign from all officer positions that he holds
      with the Company effective as of June 30, 2008 (the "Resignation Date")and
      from
      officer and/or director positions with any subsidiaries or affiliates of the
      Company (collectively, the "Affiliated Companies") effective as of May 6, 2008;
      

     

    WHEREAS,
      following the Resignation Date, Lawson agrees to work with the Company on the
      terms and conditions set forth herein;

     

    NOW,
      THEREFORE,
      Lawson
      and the Company, intending to be legally bound hereby and in consideration
      of
      the promises contained herein, do hereby agree as follows:

     

    1.       RESIGNATION
      FROM OFFICER POSITIONS.
      Lawson
      agrees to resign from his position as the Chief Executive Officer and Chairman
      of the Board of the Company and from any other officer positions that he holds
      with the Company or any Affiliated Companies, effective as of the Resignation
      Date. Lawson acknowledges and agrees that after the Resignation Date, he will
      not have the authority to represent or bind the Company or any Affiliated
      Companies as an executive officer of the Company or any Affiliated Company.
      

     

    2.       TERMINATION
      OF EMPLOYMENT AGREEMENT.
      

     

    2.1       Lawson
      acknowledges and agrees that this Agreement shall serve to terminate his
      Employment Agreement and this Agreement sets forth all of the compensation
      payable to him effective as of the date of this Agreement. Lawson acknowledges
      and agrees that the Company has paid him all wages and any other compensation
      that is payable to him under his Employment Agreement, including but not limited
      to all salary payments, bonuses, incentive compensation, reimbursement for
      his
      business expenses and vacation pay, to which he is entitled under the Employment
      Agreement or otherwise in connection with his employment with the Company.
      

     

    2.2       The
      Company and Lawson acknowledge the termination of the Employment Agreement,
      except for the covenants and obligations set forth in Sections 7 and 8 of the
      Employment Agreement, which by their terms survive the termination of the
      Employment Agreement and are incorporated herein by reference. Lawson
      acknowledges and agrees that he will comply with the obligations and covenants
      set forth in Sections 7 and 8 of the Employment Agreement for the applicable
      time periods set forth in the Employment Agreement. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3.       DIRECTOR
      SERVICE.
      Lawson
      and the Company agree that Lawson will continue to serve as a member of the
      Board of Directors of the Company (the "Board"), until such time that Lawson
      resigns from the Board or Lawson is replaced and his successor is duly elected.
      Lawson agrees to attend all Board Meeting and acknowledges and agrees that
      he
      will not receive any fees for serving as a director during the
      Term.

     

    4.       TRANSITION
      SERVICES.

     

    4.1       Lawson
      agrees to work with the Board of Directors of the Company from his Resignation
      Date through December 31, 2010 (the "Expiration Date"). This period between
      the
      Resignation Date and the Expiration Date shall be referred to as the "Term."
      These services will include without limitation, advice regarding the Company's
      business and growth strategy. Such services shall be provided at such times,
      locations and by such means as reasonably required by the Company. The Company
      agrees to provide the Lawson with at least seven (7) days notice when his
      presence is required at the Company's executive office or any other location.
      

     

    4.2       In
      consideration of the covenants and other promises set forth herein, the Company
      agrees to pay Lawson an annual salary of One Hundred Seventy-Five Thousand
      Dollars ($175,000) per year during the Term, beginning on the Resignation Date
      and ending on the Expiration Date (unless terminated prior to the Expiration
      Date). Lawson's salary will be paid in accordance with the Company's normal
      payroll practices and shall be pro-rated for any partial year during the Term.
      For the sake of clarity, if the Term ends prior to December 31, 2010, Lawson
      shall only be entitled to receive the amount earned prior to the Expiration
      Date, in accordance with the Company's normal payroll practices. All
      compensation paid under this Agreement shall be subject to all applicable
      withholding taxes and any other amounts required by law to be withheld. During
      the Term, Lawson shall be entitled to receive medical and dental benefits which
      are available to executive officers of the Company and the Company will pay
      for
      these benefits. 

     

    4.3       The
      Company's obligation to make payments to Lawson under this Agreement is
      conditioned upon Lawson's compliance with all of his covenants and obligations
      contained in (a) this Agreement and (b) Sections 7 and 8 of the Employment
      Agreement.

     

    5.       WAIVER
      AND RELEASE.
      For good
      and valuable consideration, the receipt and sufficiency of which is acknowledged
      by Lawson, including the payments to Lawson as described herein, Lawson hereby
      agrees that his execution and delivery of this Agreement was not due in any
      way
      to age or any other type of discrimination or any wrongful act of the Company,
      and Lawson and his Releasors, as hereinafter defined, do hereby voluntarily
      and
      fully release and forever discharge the Company and any Affiliated Companies,
      together with their respective past and current predecessors, successors,
      shareholders, officers, directors, employees, attorneys, trustees, insurers,
      representatives, contractors, representatives, related organizations, affiliates
      and subsidiaries (collectively, the "Released Parties"), jointly and
      individually, from any and all claims, demands, debts, causes of action, claims
      for relief, and damages, of whatever kind or nature, known or unknown, developed
      or undeveloped, which Lawson had, now has or may hereinafter have from the
      beginning of the world to the date hereof, including, without limitation, all
      claims and all rights which Lawson may have under Title VII of the Civil Rights
      Act of 1964; the Equal Employment Opportunity Act of 1972; the Civil Rights
      Act
      of 1991; the Age Discrimination and Employment Act of 1967; Lawson Retirement
      Security Act 42 U.S.C. ss. 1981; the Older Workers' Benefit Protection Act;
      the
      Americans with Disabilities Act; the Family Medical Leave Act of 1993; the
      Equal
      Pay Act; the Fair Labor Standards Act; and any and all other federal and state
      statutes which regulate employment; and the laws of contracts, tort and other
      subjects.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    6.       RELEASED
      PARTIES AND NO ADMISSION OF LIABILITY.
      For
      purposes of paragraph 5, "Releasors" shall mean, collectively, the spouse of
      Lawson and Lawson's dependents, heirs, executors administrators and assigns,
      past and present and each of them and their trustees, directors, officers,
      agents, attorneys, insurers, employees, representatives, successors, assigns
      and
      all persons acting by, through, under or in connection with them, past and
      present. Execution of this Agreement and payment of the payments specified
      in
      this Agreement does not constitute an admission by any Released Party of any
      violation of any civil rights or other employment discrimination statute, or
      any
      other legal statute, provision, regulation, ordinance, order or action under
      common law. Rather, this Agreement expresses the intention of the parties to
      resolve all possible issues and other claims related to or arising out of
      Lawson's employment by the Company without the time and expense of
      litigation.

     

    7.       COOPERATION
      IN ONGOING LITIGATION.
      Lawson
      agrees to make himself available for, and to provide whatever cooperation and
      assistance may be requested by the Company relating to, any ongoing or future
      litigation in which the Company or any officer, director, stockholder, manager,
      agent or representative of the Company is a party or has a direct interest
      relating to matters occurring before or during Lawson's employment with the
      Company or service on the Board of Directors, including, without limitation,
      the
      class action lawsuit, the derivative lawsuit and related cases. Lawson shall
      execute all documents in connection with such matters as may be reasonably
      requested of him. 

     

    8.       TERMINATION.
      

     

    8.1       The
      Company may terminate this Agreement for Cause. "Cause" shall mean (i) any
      action or omission of Lawson which constitutes a willful and material breach
      of
      this Agreement which is not cured or as to which diligent attempts to cure
      have
      not commenced within 10 business days after receipt by Lawson of notice of
      same,
      (ii) fraud, embezzlement or misappropriation as against the Company, (iii)
      the
      conviction of Lawson for any criminal act which is a felony. The Company may
      also terminate this Agreement if it discovers that Lawson has committed any
      acts
      or omissions under his Prior Employment which would have permitted the Company
      to terminate Lawson for "Cause," as defined in the Prior Employment Agreement.
      

     

    8.2       Upon
      any termination event hereunder, the Company shall pay, within thirty (30)
      days
      after the date of termination, all amounts owning to Lawson for service
      completed as of the termination date and related expenses, if submitted in
      accordance with the Company's policies and procedures. The parties hereto
      acknowledge and agree that the Company shall have no obligation to Lawson to
      pay
      any amounts that would otherwise be due following the date of termination of
      this Agreement.

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    9.       GOVERNING
      LAW, ENTIRE AGREEMENT.
      The law
      of the State of Florida shall govern the validity of this Agreement, the
      construction of its terms and the interpretation of the rights and duties of
      the
      parties. This Agreement and the Employment Agreement constitute the entire
      agreement and understanding between Lawson and the Company with respect to
      the
      matters set forth herein. Any agreement to amend or modify the terms and
      conditions of this Agreement must be in writing and executed by the parties
      hereto. This Agreement may be specifically enforced in judicial proceedings
      and
      may be used as evidence in a subsequent proceeding in which a breach is
      alleged.

     

    10.       CONFIDENTIALITY.
      Lawson
      agrees that he will keep confidential all information regarding the Company,
      its
      business operations and this Agreement, whether currently known or hereafter
      acquired during the Term, including, but not limited to, information about
      pricing, customers, current and former employees and will not disclose such
      information to anyone unless (i) such information is published and becomes
      public knowledge (other than through or by Lawson on his behalf), (ii) required
      by legal process in formal legal proceeding or (iii) to the extent necessary
      to
      report income to the appropriate taxing authorities. The provisions of this
      paragraph are in addition to, and not in lieu of, any other obligations of
      confidentiality entered into by Lawson and the Company and/or any Affiliated
      Companies.

     

    11.       NON-DISPARAGEMENT.
      Lawson
      agrees that he will not directly or indirectly, individually or in concert
      with
      others for a period of five (5) years from the date of termination of this
      Agreement, (i) disparage, interfere with or attempt to interfere with, the
      reputation, goodwill, services or business of the Company or any of the
      Affiliated Companies and/or the shareholders, directors, officers, employees,
      agents or representatives of the Company or any Affiliated Companies or (ii)
      engage in any conduct, take any actions or make any statements (oral or written)
      to the public, future employers, customers, vendors, the investment community,
      the media, current, former or future employees or the Company or any Affiliated
      Company, or any other third party whatsoever that is calculated to have, or
      reasonably likely or possibly having, the effect of undermining, disparaging
      or
      otherwise reflecting negatively or could reasonably be considered to undermine,
      disparage or reflect negatively, on the Company or the Affiliated Companies
      or
      the reputation, goodwill, services and business of the Company or the Affiliated
      Companies. This paragraph is not to be interpreted as negating any rights Lawson
      has as a shareholder or as a member of the board of directors.

     

    12.       KNOWING
      AND VOLUNTARY ASSENT.
      IN
      EXECUTING THIS AGREEMENT, LAWSON HEREBY REPRESENTS THAT HE HAS BEEN AFFORDED
      A
      REASONABLE OPPORTUNITY TO CONSIDER THIS AGREEMENT; THAT HE HAS COMPLETELY AND
      CAREFULLY READ THIS AGREEMENT; THAT HE HAS BEEN ADVISED BY THE COMPANY TO
      CONSULT WITH AN ATTORNEY OF HIS OWN CHOICE PRIOR TO EXECUTING THIS AGREEMENT,
      AND RELIED ON THE LEGAL ADVICE OF HIS ATTORNEY; THAT HE HAD THE OPPORTUNITY
      TO
      HAVE AN ATTORNEY EXPLAIN TO HIM THE TERMS OF THIS AGREEMENT; THAT HE KNOWS
      AND
      UNDERSTANDS THE CONTENTS OF THIS AGREEMENT; THAT THE TERMS OF THIS AGREEMENT
      ARE
      SATISFACTORY TO AND FULLY UNDERSTOOD AND VOLUNTARILY ACCEPTED BY
      HIM.

     

    13.       EFFECT
      OF RESIGNATION AND INTERPRETATION.
      The
      Company and Lawson intend this Agreement to be legally binding upon and inure
      to
      the benefit of each of them and their respective heirs, administrators,
      executors, successors and assigns. The language of this Agreement shall be
      construed as a whole, according to its fair meaning and intent and not strictly
      for or against any party hereto, regardless of who drafted or was principally
      responsible for drafting this Agreement. The recitals contained at the beginning
      of this Agreement are expressly made a part of this Agreement. Headings are
      for
      convenience only and should not be used in interpreting this
      Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    14.       ASSIGNMENT,
      WAIVERS.
      Nothing
      in this Agreement shall be construed to permit the assignment by Lawson of
      any
      of his rights or obligations hereunder, and such assignment is expressly
      prohibited without the prior written consent of the Company, which may be
      delayed or withheld in Company's sole and absolute discretion. The waiver by
      either party hereto of a breach or violation of any term or provision of this
      Agreement shall not operate nor be construed as a waiver of any subsequent
      breach or violation.

     

    15.       SEVERABILITY
      AND JURY WAIVER.
      Should
      any provision of this Agreement be declared illegal or unenforceable by any
      court of competent jurisdiction and cannot be modified to be enforceable,
      including the general release language, such provision shall immediately become
      null and void, leaving the remainder of the Agreement in full force and effect.
      The Company and Lawson each knowingly, intentionally, and irrevocably waive
      any
      and all rights to a jury trial for any litigation or legal proceeding in any
      way
      relating to or arising out of this Agreement or the Employment
      Agreement.

     

    16.       ARBITRATION
      OF DISPUTES.
      Any
      dispute, controversy or claim arising between Lawson and the Company arising
      out
      of or relating to this Agreement or the existence, validity, termination,
      interpretation of any term hereof or either party's performance obligations
      hereunder shall be finally settled by arbitration in accordance with the
      International Arbitration Rules of the American Arbitration Association ("AAA")
      in effect at the time of the arbitration (the "Arbitration Rules"). The AAA
      shall be the appointing authority and responsible for administering any
      arbitration hereunder in accordance with the Arbitration Rules. The place of
      arbitration shall be in Broward County, Florida. The arbitration shall be
      conducted by a single arbitrator who shall be a professional, legal or otherwise
      but shall not be, or have previously been associated with any party to this
      Agreement (the "Arbitrator"). The arbitral award shall be final,
      binding
      and non-appealable. Any award rendered by the Arbitrator may be confirmed,
      judgment upon any award rendered may be entered and such award or the judgment
      thereon may be enforced or executed upon, by any court having jurisdiction
      over
      any of the parties or their respective assets. The Arbitrator's award must
      be
      reasoned and issued in writing within thirty (30) days of the hearing, unless
      otherwise agreed to by Lawson and the Company.

     

    17.       COUNTERPARTS.  This
      Agreement may be executed in any number of counterparts with the same effect
      as
      if each party hereto had signed the same document. All counterparts shall be
      construed together and shall constitute one agreement.
      The
      parties agree that the delivery of facsimile counterparts followed by the
      conveyance of originally signed documents shall be sufficient to evidence the
      parties’ intent for the ratification of this document.

     

    [Signature
      Page Follows]

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF,
      the
      aforesaid parties have hereunto set their hands and seals as of the day below
      written.

     

    
      	
              21st
                CENTURY HOLDING COMPANY

               

            
	
              By:
                /s/
                Stephen C. Young

            
	
              Name:
                Stephen
                C. Young

            
	
              Title:
                President

            
	 
	
              LAWSON

               

            
	
              /s/
                Edward J. Lawson

            
	
              Edward
                J. Lawson

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