Document:

Exhibit 10.1

 

EXCHANGE AGREEMENT

THIS EXCHANGE AGREEMENT (this “Agreement”)
is made and entered into as of December 30, 2016 by and between Ameri Holdings, Inc. (the “Company”), a Delaware
corporation, and Lone Star Value Investors, LP (the “Holder”).

RECITALS

WHEREAS, the Company has issued and outstanding
an unsecured convertible promissory note for the aggregate principal amount of $5,000,000 (the “Note”).

WHEREAS, the Company and the Holder have
reached an agreement for the exchange of the Note held by the Holder for shares of the Company’s Series A Preferred Stock,
par value $0.01 per share (the “Preferred Stock”).

WHEREAS, the Company and the Holder have
agreed, subject to and on the terms and conditions set forth in this Agreement, that the Holder shall exchange the principal amount
of the Note for an aggregate of 363,611 shares of Preferred Stock (the “Shares”).

WHEREAS, the Company has filed the Certificate
of Designations as attached hereto as Exhibit A with the Secretary of State of the State of Delaware.

NOW, THEREFORE, in consideration of the
premises and mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto hereby agree as follows:

ARTICLE
I - EXCHANGE OF SECURITIES

Section
1.01.Authorization of Issue. Prior to the Closing (as defined below), the Company shall have duly authorized
the delivery to the Holder of the Shares.

Section
1.02.Exchange of the Note. Subject to the terms and conditions set forth in this Agreement, the Holder hereby
agrees to exchange at the Closing (the “Exchange”) the Note for 363,611 Shares of Preferred Stock. The Note
exchanged pursuant to this Agreement shall be cancelled. The warrants issued to the Holder in connection with the purchase of the
Note, to the extent such warrants have not yet been exercised, will continue to be held by the Holder and will remain in full force
and effect.

Section
1.03.Uncertificated Book-Entry Securities. The Shares of Preferred Stock shall be issued as book-entry securities
directly registered in the Holder’s name on the Company’s books and records. The Shares shall not be represented by
certificates but instead shall be uncertificated securities of the Company and shall be governed by the terms of the Certificate
of Designations as attached hereto as Exhibit A.

Section
1.04.Registration. Pursuant to the terms of that certain Amended and Restated Registration Rights Agreement,
dated as of May 12, 2016, between the Company and the Holder (the “RRA”), the Shares of Preferred Stock issued
to the Holder pursuant to the Exchange constitute Registrable Securities (as defined in the RRA) that are subject to the terms
of the RRA.

    	 	 	 

     

    

Section
1.05.Credit Agreement Acknowledgement. Holder hereby acknowledges and agrees that the Company is party to that
certain Loan and Security Agreement, dated as of July 1, 2016, with Sterling National Bank, pursuant to which the Company is prohibited
from paying or becoming obligated to pay dividends, with certain limited exceptions as provided in the Consent and Amendment No.
3 to Loan and Security Agreement, a copy of which has been provided to Holder, which provides, in part, that the definition of
Permitted Restricted Payments includes: “a regular dividend on the Series A Preferred Stock
at the rate and times and in the manner provided in the Series A Certificate of Designation, but if and to the extent such dividend
is payable in cash, the cash portion of the dividend shall be in an amount not in excess of twenty percent (20%) of EBITDA for
the twelve (12) fiscal month period most recently ended prior to the applicable Dividend Payment Date (as defined in the Series
A Certificate of Designation).”

Section
1.06.Registration Demand Acknowledgement. The Company acknowledges the Holder’s written request in accordance
with Section 2(a) of the RRA, to act in accordance with such section.

ARTICLE
II - CLOSING DATE; DELIVERY

Section
2.01.Closing and Location. The closing of the Exchange (the “Closing”) shall take place on
December 30, 2016, or on such other date as shall be mutually agreed to by the Company and the Holder (the “Closing Date”),
at the offices of Olshan Frome Wolosky LLP, 1325 Avenue of the Americas, New York, New York, or such other place as shall be mutually
agreed to by the Company and the Holder.

Section
2.02.Issuance. At the Closing, the Company shall instruct its transfer agent to issue the Shares of Preferred
Stock to the Holder on the books and records of the Company and the Note shall be cancelled.

Section
2.03.Consummation of Closing. All acts, deliveries and confirmations comprising the Closing, regardless of chronological
sequence, shall be deemed to occur contemporaneously and simultaneously upon the occurrence of the last act, delivery or confirmation
of the Closing and none of such acts, deliveries or confirmations shall be effective unless and until the last of same shall have
occurred.

Section
2.04.No Further Ownership Rights in the Note. From and after the Closing, the Holder shall cease to have any
rights with respect to the Note exchanged pursuant to this Agreement, including any payments of accrued and unpaid interest, except
as otherwise provided herein or by applicable law.

ARTICLE
III - REPRESENTATIONS AND WARRANTIES

Section
3.01.Representations and Warranties of the Company. The Company represents and warrants to the Holder that the
following statements are true, correct and complete as of the date hereof:

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(a)       Corporate
Organization. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State
of Delaware, and has all requisite corporate power and authority to own, operate and lease its properties and to carry on its business
as and in the places where such properties are now owned, operated and leased or such business is now being conducted.

(b)       Authorization.
The Company has the necessary corporate power and authority to enter into this Agreement and to assume and perform its obligations
hereunder. The execution and delivery of this Agreement and the performance by the Company of its obligations hereunder have been
duly authorized by the Board of Directors of the Company. This Agreement has been duly executed and delivered by the Company and
constitutes a legal, valid and binding obligation of the Company enforceable against it in accordance with its terms, subject to
(a) applicable bankruptcy, insolvency, reorganization and moratorium laws, (b) other laws of general application affecting the
enforcement of creditors’ rights generally and general principles of equity, (c) the discretion of the court before which
any proceeding therefor may be brought, and (d) as rights to indemnity may be limited by federal or state securities laws or by
public policy.

(c)       No
Violation or Breach. Neither the execution and delivery of this Agreement, nor the consummation by the Company of the transactions
contemplated hereby, (i) will violate or cause a default under any judgment, order, writ or decree of any court or governmental
authority applicable to the Company; (ii) breach or conflict with the provisions of the constituent documents of the Company; or
(iii) violate, conflict with or breach any agreement, arrangement, document or instrument to which the Company is a party or by
which it is bound.

(d)       Approvals
and Consents. No action, approval, consent or authorization, including, but not limited to, any action, approval, consent or
authorization by any governmental or quasi-governmental agency, commission, board, bureau, or instrumentality is necessary or required
as to the Company in order to constitute this Agreement as a valid, binding and enforceable obligation of the Company in accordance
with its terms.

(e)       Brokers
and Finders. The Company nor its officers, directors, managers or employees has employed any broker, finder, investment banker,
financial advisor or similar professional or incurred any liability for any investment banking fees, brokerage fees, commissions
or finders’ fees in connection with the transactions contemplated by this Agreement.

(f)       Commission
Reporting and Compliance. The Company has filed with the Securities and Exchange Commission (the “Commission”)
all registration statements, proxy statements, information statements and reports required to be filed pursuant to the Securities
Exchange Act of 1934, as amended (the “Exchange Act”). The Company has not filed with the Commission a certificate
on Form 15 pursuant to Rule 12h-3 under the Exchange Act. The Company has made available to the Company true and complete copies
of the registration statements, information statements and other reports (collectively, the “Company SEC Documents”)
filed by the Company with the Commission. None of the Company SEC Documents, as of their respective dates, contained any untrue
statement of a material fact or omitted to state a material fact necessary in order to make the statements contained therein not
misleading. To the knowledge of the Company, the Company has otherwise complied with the Securities Act of 1933, as amended (the
“Securities Act”), Exchange Act and all other applicable federal and state securities laws.

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(g)       Shares
Duly Issued. The Shares to be issued to the Holder in accordance with the terms hereof shall be, when issued, duly and validly
issued, fully paid and nonassessable.

(h)       Compliance
with Other Instruments. The Company is not in violation or default (i) of any provisions of its Certificate of Incorporation
or Bylaws, each as amended, (ii) of any instrument, judgment, order, writ or decree, (iii) under any note, indenture or mortgage,
or (iv) under any lease, agreement, contract or purchase order to which it is a party or by which it is bound or, of any provision
of federal or state statute, rule or regulation applicable to the Company, the violation of which would have a material adverse
effect. The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby
will not result in any such violation or be in conflict with or constitute, with or without the passage of time and giving of notice,
either (i) a default under any such provision, instrument, judgment, order, writ, decree, contract or agreement or (ii) an event
which results in the creation of any lien, charge or encumbrance upon any assets of the Company or the suspension, revocation,
forfeiture, or nonrenewal of any material permit or license applicable to the Company.

Section
3.02.Representations and Warranties of the Holder. The Holder represents and warrants to the Company that the
following statements are true, correct and complete as of the date hereof:

(a)       Organization
and Good Standing. It is a limited partnership duly organized, validly existing and in good standing under the laws of its
state of formation and has all requisite power and authority to own, lease and operate its properties and to carry on its business.

(b)       Power
and Authority. It has all requisite power and authority to enter into this Agreement and to carry out the transactions contemplated
by, and perform its obligations under, this Agreement.

(c)       Authorization.
The execution and delivery of this Agreement and the performance of its obligations hereunder have been duly authorized by all
necessary action on its part.

(d)       Binding
Obligation. This Agreement is the legally valid and binding obligation of it, enforceable against it in accordance with its
terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating
to or limiting creditors’ rights generally or by equitable principles relating to enforceability.

(e)       No
Conflicts. The execution, delivery and performance by it of this Agreement do not and will not (i) violate any provision of
law, rule or regulation applicable to it or its certificate of incorporation or by-laws (or other organizational document) or (ii)
conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any material contractual
obligation to which it is a party.

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(f)       Governmental
Consents. The execution, delivery and performance by it of this Agreement do not and will not require any registration or filing
with, consent or approval of, or notice to, or other action to, with or by, any federal, state or other governmental authority
or regulatory body.

(g)       Ownership
of the Note. The Holder is the beneficial owner of the Note, free and clear of all liens (other than obligations pursuant to
this Agreement).

(h)       Purchase
Entirely for Own Account. It is acquiring the Shares for its own account, for investment purposes and not with a view to the
distribution thereof, except in compliance with the Securities Act. It understands that the Shares issued to it may not be resold
except pursuant to an effective registration statement filed under the Securities Act or pursuant to an exemption from registration
thereunder.

(i)       Investment
Experience. It has such knowledge and experience in financial and business affairs that the Holder is capable of evaluating
the merits and risks of an investment in the Shares. It is either a “qualified institutional buyer” as defined in Rule
144A under the Securities Act or an “accredited investor” as defined in Regulation D under the Securities Act, and
was not organized for the purpose of acquiring the Shares. The Holder has previously invested in securities similar to the Shares.
The Holder acknowledges that no representations, express or implied, are being made with respect to the Company, the Shares or
otherwise, other than those expressly set forth herein. In making its decision to invest in the Shares hereunder, the Holder has
relied upon independent investigations made by the Holder and, to the extent believed by the Holder to be appropriate, the Holder’s
representatives, including the Holder’s own professional, tax and other advisors. The Holder and its representatives have
been given the opportunity to examine all documents and to ask questions of, and to receive answers from, the Company and its representatives
concerning the terms and conditions of the investment in the Shares. The Holder is able to bear the economic risk of its investment
in the Shares and is presently able to afford the complete loss of such investment. The Holder acknowledges that the Company is
relying on the truth and accuracy of the foregoing representations and warranties in the offering of the Shares to the Holder without
first having registered the Shares under the Securities Act.

(j)       Restricted
Securities. It has been advised by the Company that (i) the offer and sale of the Shares have not been registered under the
Securities Act; (ii) the offer and sale of the Shares are intended to be exempt from registration under the Securities Act pursuant
to either Rule 144A or Regulation D under the Securities Act; and (iii) there is no established market for the Shares, and it is
not anticipated that there will be any active public market for the Shares in the foreseeable future. It is familiar with Rule
144 promulgated by the SEC under the Securities Act, as presently in effect, and understands the resale limitations imposed thereby
and by the Securities Act.

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ARTICLE
IV - CONDITIONS TO CLOSING

Section
4.01.Holder’s Conditions to Closing. The obligations of the Holder to exchange the Note for the Shares
shall be subject to (A) the representations and warranties of the Company contained in this Agreement shall be true and correct
as of the Closing as though made on and as of the Closing Date, (B) the Company shall have performed all of its obligations and
covenants under this Agreement, (C) no decision, order or similar ruling shall have been issued (and remain in effect) restraining
or enjoining the transactions contemplated by this Agreement; and (D) from the date hereof to the date of Closing, there shall
not have occurred any change, event, occurrence, fact condition, development or effect that, individually or in the aggregate,
has had, or is reasonably likely to have, a material adverse effect upon the business, assets, operations, properties, financial
position, results of operations, prospects or liabilities of the Company or any adverse effect upon the consummation of this Agreement
or any of the transactions contemplated hereby.

Section
4.02.Company’s Conditions to Closing. The Company’s obligations to exchange the Note for the Shares
shall be subject to (A) the representations and warranties of Holder contained in this Agreement shall be true and correct as of
the Closing as though made on and as of the Closing Date, (B) the Holder having delivered the Note in accordance with Section 2.02
hereof, (C) the Holder shall have performed all of its obligations and covenants under this Agreement, (D) no decision, order or
similar ruling shall have been issued (and remain in effect) restraining or enjoining the transactions contemplated by this Agreement;
and (E) from the date hereof to the date of Closing, there shall not have occurred any change, event, occurrence, fact condition,
development or effect that, individually or in the aggregate, has had, or is reasonably likely to have, a material adverse effect
upon the business, assets, operations, properties, financial position, results of operations, prospects or liabilities of the Company
or any adverse effect upon the consummation of this Agreement or any of the transactions contemplated hereby.

ARTICLE
V - INDEMNIFICATION

Section
5.01.Indemnification by the Holder. The Holder agrees to indemnify and hold the Company Indemnified Persons (as
defined below) harmless from any and all Losses (as defined below) (including taxes) that the Company Indemnified Persons may incur
due to:

(a)       any
inaccuracy or breach of any of the representations and warranties given by the Holder herein; or

(b)       the
nonfulfillment or breach of any covenant, undertaking, agreement or other obligation of the Holder contained herein.

Section
5.02.Indemnification by the Company. The Company agrees to indemnify and hold the Holder Indemnified Person harmless
from any and all Losses (including Taxes) that the Holder Indemnified Person may incur due to:

(a)       any
inaccuracy or breach of any of the representations and warranties of the Company contained herein; or

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(b)       the
nonfulfillment or breach of any covenant, undertaking, agreement or other obligation of the Company contained herein.

Section
5.03.Survival of Indemnification. The representations and warranties of the parties contained in this Agreement
and the rights to indemnification under this Agreement with respect thereto will survive the Closing Date for a period of twelve
(12) months after the Closing Date.

Section
5.04.Third Party Claims.

(a)       A
party entitled to indemnification hereunder (an “Indemnified Party”) shall notify promptly the indemnifying
party (the “Indemnifying Party”) in writing of the commencement of any action or proceeding with respect to
which a claim for indemnification may be made pursuant to this Agreement; provided, however, that the failure of any Indemnified
Party to provide such notice shall not relieve the Indemnifying Party of its obligations under this Agreement, except to the extent
the Indemnifying Party is actually materially prejudiced thereby. In case any claim, action or proceeding is brought against an
Indemnified Party and the Indemnified Party notifies the Indemnifying Party of the commencement thereof, the Indemnifying Party
shall be entitled to participate therein and to assume the defense thereof, to the extent that it chooses, with counsel reasonably
satisfactory to such Indemnified Party, and after notice from the Indemnifying Party to such Indemnified Party that it so chooses,
the Indemnifying Party shall not be liable to such Indemnified Party for any legal or other expenses subsequently incurred by such
Indemnified Party in connection with the defense thereof other than reasonable costs of investigation; provided, however,
that (i) if the Indemnifying Party fails to take reasonable steps necessary to defend diligently the action or proceeding within
twenty (20) calendar days after receiving notice from such Indemnified Party that the Indemnified Party believes it has failed
to do so; or (ii) if such Indemnified Party who is a defendant in any claim or proceeding which is also brought against the Indemnifying
Party reasonably shall have concluded that there may be one or more legal defenses available to such Indemnified Party which are
not available to the Indemnifying Party; or (iii) if representation of both parties by the same counsel is otherwise inappropriate
under applicable standards of professional conduct, then, in any such case, the Indemnified Party shall have the right to assume
or continue its own defense as set forth above (but with no more than one firm of counsel for all Indemnified Parties in each jurisdiction),
and the Indemnifying Party shall be liable for any expenses therefor.

(b)       No
Indemnifying Party shall, without the written consent of the Indemnified Party, effect the settlement or compromise of, or consent
to the entry of any judgment with respect to, any pending or threatened action or claim in respect of which indemnification may
be sought hereunder (whether or not the Indemnified Party is an actual or potential party to such action or claim) unless such
settlement, compromise or judgment (i) includes an unconditional release of the Indemnified Party from all liability arising out
of such action or claim, (ii) does not include a statement as to or an admission of fault, culpability or a failure to act, by
or on behalf of any Indemnified Party and (iii) does not include any injunctive or other non-monetary relief.

Section
5.05.Notwithstanding anything herein to the contrary, no reimbursement for Losses asserted against Indemnifying Party
under this Agreement shall be required unless and until the cumulative aggregate amount of such Losses equals or exceeds $25,000
and then from the first dollar of such Losses, as finally determined up to a maximum of such amount that is equal to the Purchase
Price.

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Section
5.06.For purposes of this Section 5, “Company Indemnified Persons” means the Company, its affiliates
and their respective stockholders, partners, members, managers, directors, officers, employees, agents, affiliates, representatives
and consultants and each of their respective heirs, executors, owners, successors and assigns.

Section
5.07.For purposes of this Section 5, “Holder Indemnified Persons” means the Holder, its affiliates
and their respective stockholders, partners, members, managers, directors, officers, employees, agents, affiliates, representatives
and consultants and each of their respective heirs, executors, owners, successors and assigns.

Section
5.08.For purposes of this Section 5, “Losses” means any and all liabilities, obligations, losses,
debts, charges, judgments, fines, penalties, amounts paid in settlement, damages, costs, expenses, claims, fees and expenses (including
the expense of investigation and reasonable attorneys’ fees and expenses in connection therewith).

ARTICLE
VI - MISCELLANEOUS

Section
6.01.Successors and Assigns. This Agreement is intended to bind and inure to the benefit of the parties hereto
and their respective successors and permitted assigns.

Section
6.02.Entire Agreement. This Agreement constitutes the entire understanding and agreement between the parties
hereto with regard to the subject matter hereof and supersedes all prior agreements with respect thereto.

Section
6.03.Effectiveness; Amendments. This Agreement shall not become effective and binding on a party hereto unless
and until a counterpart signature page to this Agreement has been executed and delivered by such party. Once effective, this Agreement
may not be modified, amended or supplemented, nor may any of the conditions to Closing be waived, except in a writing signed by
the Company and the Holder.

Section
6.04.Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining
provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

Section
6.05.Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed
an original and all of which together shall constitute one and the same Agreement. Delivery of an executed signature page of this
Agreement by telecopier or e-mail shall be effective as delivery of a manually executed signature page of this Agreement.

Section
6.06.Headings. The headings of the sections and subsections of this Agreement are inserted for convenience only
and shall not affect the interpretation hereof.

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Section
6.07.Governing Law; Jurisdiction. This Agreement shall be governed by, and construed in accordance with, the
laws of the State of New York, regardless of the laws that might otherwise govern under applicable principles of conflict of laws
of the State of New York. The parties hereby irrevocably submit to the non-exclusive jurisdiction of any federal or state court
located within the borough of Manhattan of the City, County and State of New York over any dispute arising out of or relating to
this Agreement or any of the transactions contemplated hereby. The parties hereby irrevocably waive, to the fullest extent permitted
by applicable law, jury trial and any objection which they may now or hereafter have to the laying of venue of any such dispute
brought in such court or any defense of inconvenient forum for the maintenance of such dispute. Each of the parties hereto agrees
that a judgment in any such dispute may be enforced in other jurisdictions by suit on the judgment or in any other manner provided
by law.

Section
6.08.Notices. All demands, notices, requests, consents and communications hereunder shall be in writing and
shall be deemed to have been duly given if personally delivered by courier service, messenger, telecopy, or if duly deposited
in the mails, by certified or registered mail, postage prepaid-return receipt requested, to the following addresses, or such other
addresses as may be furnished hereafter by notice in writing, to the following parties:

		(a)	If to the Company, to:

Ameri Holdings, Inc.

100 Canal Pointe Blvd., Suite 108

Princeton, NJ 08540

Attention: Giri Devanur, President & Chief Executive Officer

with a copy to (which copy shall not constitute notice):

Olshan Frome Wolosky LLP

1325 Avenue of the Americas

New York, New York 10022

Facsimile No.: (212) 451-2222

Attn: Adam W. Finerman, Esq.

		(b)	If to the Holder, to:

Lone Star Value Investors, LP

53 Forest Avenue, 1st Floor

Old Greenwich, Connecticut 06870

Telephone: (203) 489-9500

Fax: (203) 990-0727

Attention: Mr. Jeffrey E. Eberwein, Manager

	 
	 	 	and

Ms. Hannah Bible, General Counsel	 

Section
6.09.Specific Performance. Each party hereto recognizes and acknowledges that a breach by it of any covenants
or agreements contained in this Agreement will cause the other party to sustain damages for which such party would not have an
adequate remedy at law for money damages, and therefore each party hereto agrees that in the event of any such breach the other
party may seek the remedy of specific performance of such covenants and agreements and injunctive and other equitable relief (without
the requirement to post bond or other security) in addition to any other remedy to which such party may be entitled, at law or
in equity.

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Section
6.10.Remedies Cumulative. All rights, powers and remedies provided under this Agreement or otherwise available
in respect hereof at law or in equity shall be cumulative and not alternative, and the exercise of any right, power or remedy thereof
by any party shall not preclude the simultaneous or later exercise of any other such right, power or remedy by such party.

Section
6.11.No Waiver. The failure of any party hereto to exercise any right, power or remedy provided under this Agreement
or otherwise available in respect hereof at law or in equity, or to insist upon compliance by the other party hereto with its obligations
hereunder, and any custom or practice of the parties at variance with the terms hereof, shall not constitute a waiver by such party
of its right to exercise any such or other right, power or remedy or to demand such compliance.

Section
6.12.No Third Party Beneficiaries. This Agreement is not intended to be for the benefit of, and shall not be
enforceable by, any person who or which is not a party hereto.

Section
6.13.Representation by Counsel. The Holder acknowledges that Olshan Frome Wolosky LLP represents the Company
and does not, and did not, represent the Holder in connection with this Agreement and the Exchange. Each of the Company and the
Holder acknowledges that it has been represented by counsel in connection with this Agreement and the transactions contemplated
by this Agreement. Accordingly, any rule of law or any legal decision that would provide any party with a defense to the enforcement
of the terms of this Agreement against such party based upon lack of legal counsel shall have no application and is expressly waived.

[Signature Pages Follow]

    	 	10	 

     

    

IN WITNESS WHEREOF, the parties hereto
have executed this Agreement as of the date first written above.

	COMPANY:	AMERI HOLDINGS, INC.
	 	 
	 	By:	 /s/ Giri Devanur

 

	 	 	Name:	Giri Devanur
	 	 	Title:	President and Chief Executive Officer

 

	HOLDER:	LONE STAR VALUE INVESTORS, LP
	 	By: Lone Star Value Investors GP, LLC, General Partner
	 	 
	 	 
	 	By:	 /s/ Jeffrey E. Eberwein

 

	 	 	Name:	Jeffrey E. Eberwein
	 	 	Title:	Manager

 

 

 

SIGNATURE PAGE TO EXCHANGE AGREEMENT

 

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Exhibit A

Certificate of DesignationsExhibit

Exhibit 10.1

SEPARATION AND CONSULTING AGREEMENT
THIS SEPARATION AND CONSULTING AGREEMENT (this “Agreement”), dated as of December 31, 2016, is entered into by and between Alico, Inc., a Florida corporation (the “Company”), and Clayton G. Wilson (the “Consultant”).
WHEREAS, the Consultant currently serves as Chief Executive Officer of the Company and will continue to do so through December 31, 2016 (the “Separation Date”);
WHEREAS, the Company and the Consultant are parties to that certain Employment Agreement, dated as of April 20, 2015 (the “Employment Agreement”);
WHEREAS, the Consultant has invaluable knowledge and expertise regarding the business of the Company;
WHEREAS, due to the Consultant’s knowledge and expertise, the Company wishes to have the cooperation of, and access to, the Consultant following the Separation (as defined below); and
WHEREAS, the Company and the Consultant now desire to enter into a mutually satisfactory arrangement concerning, among other things, the Consultant’s separation from service with the Company on the Separation Date, and service to the Company as an independent contractor following the Separation Date, and other matters related thereto.
NOW, THEREFORE, in consideration of the premises and the mutual promises contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Consultant hereby agree as follows:
1.    Separation from Service.
(a)    Separation.  The Consultant hereby acknowledges and agrees that the Consultant’s employment with the Company shall terminate on the Separation Date (the “Separation”).  The Consultant acknowledges that, effective on the Separation Date and by virtue of executing this Agreement, and without any further action by the Consultant, his position as Chief Executive Officer of the Company and as a member of the board of directors of, or as a manager, officer, or any other position with, the Company or any of the Company’s controlled affiliates, other than as a member of the Board of Directors of the Company, will terminate.  By executing this Agreement, the Company and the Consultant amend and waive Section 11(f) of the Employment Agreement to the extent, and only to the extent, that it provides for the resignation of the Consultant as a member of the Board of Directors of the Company as a result of the Separation. 
(b)    Acknowledgments.  For purposes of all plans, agreements, policies, and arrangements of the Company and its affiliates in which the Consultant participated or to which the Consultant was a party (including, without limitation, the Employment Agreement), the Separation shall be treated as a termination of Consultant’s employment by the Company without 

Cause (as defined on Exhibit A of the Employment Agreement) pursuant to Section 11(b)(x) of the Employment Agreement.  Moreover, in the case of any such plan, agreement, policy, or arrangement that includes the concept of resignation with “good reason” or a similar term of like meaning, the Consultant agrees that the Separation shall be considered to have been made without “good reason” or such similar term.  Further, from and after the date hereof, the Consultant waives any right to resign from the Company and its affiliates for “good reason” or a similar term of like meaning for purposes of any plan, agreement, policy, or arrangement of the Company and its affiliates (including, without limitation, the Employment Agreement).
2.    Separation Payments and Benefits.
(a)    Accrued Obligations.  As soon as practicable and in any event within 30 days after the Separation Date, the Company shall pay to the Consultant the Accrued Obligations (as defined in the Employment Agreement).  Following the Separation Date, the Consultant shall also be entitled to any Vested Benefits (as defined in the Employment Agreement), which benefits shall be payable in accordance with the terms and conditions of the applicable employee benefit plan, program, policy, or arrangement and applicable law.  To be clear, the Accrued Obligations due to the Consultant will not include any bonus payments but will include ten (10) days of vacation pay.
(b)    Restricted Stock.  Subject to the Consultant’s execution and delivery of a release of claims, substantially in the form attached as Exhibit B to the Employment Agreement, within 55 days following the Separation Date (and non-revocation within the time period set forth therein), any unvested portion of the restricted stock award granted to the Consultant pursuant to the Restricted Stock Award Agreement, dated as of March 8, 2016, shall become fully vested as of the Separation Date.
3.    Consulting Period.  The Consultant shall render the Services (as defined below) for the period beginning on January 1, 2017 and ending upon December 31, 2017, unless earlier terminated in accordance with Section 8 (the “Consulting Period”).
4.    Services.  During the Consulting Period, the Consultant shall serve as Chairman of the Advisory Board of Orange-Co., a division of the Company, and shall provide consulting services to the Company and its divisions and subsidiaries as directed by senior management of the Company (the “Services”), but not to exceed 32 hours per month; provided that, notwithstanding the foregoing, the Company and the Consultant shall use their reasonable best efforts to ensure that the level of the Consultant’s services under this Agreement is consistent with the intent that the Consultant’s termination of employment with the Company constitutes a “separation from service” (within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”)).  The Services shall generally be performed at such locations as are reasonably determined by the Consultant (it being understood and agreed that such services may be performed at the Consultant’s home offices and generally will not be performed at the Company’s premises unless requested by the Company).

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5.    Fees and Expenses.
(a)    Consulting Fee.  In consideration for agreeing to provide the Services, and in lieu of any severance benefits otherwise payable to the Consultant pursuant to the Employment Agreement, the Consultant shall be paid by the Company an amount in cash equal to $750,000, of which (i) $200,000 will be payable to the Consultant in a lump sum prior to the end of calendar year 2016 (which amount shall be adjusted for any taxes or deductions incurred by the Company when paying the initial $200,000 lump sum payment), (ii) $275,000 will be payable to Consultant in a lump sum on July 1, 2017, and (iii) $275,000 will be payable in six, equal, consecutive, monthly installments in arrears on or before the last day of each month during the remainder of the Consulting Period, beginning on July 31, 2017, and ending on December 31, 2017 (the “Consulting Fees”), subject, in each case, to Section 8(b) and the Consultant’s continued compliance with the restrictive covenants set forth in Section 10 of the Employment Agreement.
(b)    Expenses.  The Company shall reimburse the Consultant pursuant to the Company’s reimbursement policies as in effect from time to time for reasonable business expenses incurred by the Consultant in connection with the performance of the Services.
6.    Sole Consideration.  Except as specifically provided in Section 5, the Consultant shall be entitled to no compensation or benefits from the Company or its affiliates with respect to the Services and shall not be credited with any service, age, or other credit attributable to the Services for purposes of eligibility, vesting, or benefit accrual under any employee benefit plan of the Company or its affiliates.
7.    Status as a Non-Employee.  The Company and the Consultant acknowledge and agree that, in performing the Services pursuant to this Agreement, the Consultant shall be acting and shall act at all times as an independent contractor only and not as an employee, agent, partner, or joint venturer of or with the Company or its affiliates.  The Consultant acknowledges that the Consultant is and shall be solely responsible for the payment of all federal, state, local, and foreign taxes that are required by applicable laws or regulations to be paid with respect to all compensation and benefits payable or provided hereunder, except that the Company shall pay the employer’s share of Medicare and Social Security taxes applicable to the Accrued Obligations that are payable pursuant to Section 2(a).  During the Consulting Period, Consultant shall not be eligible to participate in or accrue benefits under any employee benefit plan sponsored by the Company or its affiliates.
8.    Termination of the Consulting Period.
(a)    Termination.  Either the Company or the Consultant may terminate the Consulting Period at any time and for any reason (or no reason) by providing the other party with 30 days of advance written notice of such termination.
(b)    Payments upon Termination.  Upon termination of the Consulting Period by the Company or the Consultant for any reason, the Company shall pay to the Consultant any earned but unpaid Consulting Fees for Services rendered prior to such termination and shall 

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reimburse the Consultant for any business expenses incurred prior to such termination for which the Consultant would be entitled to reimbursement pursuant to Section 5(b).  In addition, upon termination of the Consulting Period by the Company for any reason (or no reason), the Company shall continue to pay to the Consultant all the Consulting Fees as set forth in Section 5(a).  Except as otherwise provided in the first sentence of this Section 8(b), upon any termination of the Consulting Period by the Consultant, the Company shall have no further obligation to the Consultant. 
9.    Restrictive Covenants.  The Consultant and the Company acknowledge and agree that their respective rights and obligations under Section 10 of the Employment Agreement shall remain in full force and effect.  For avoidance of doubt, the Company and the Consultant also agree and acknowledge that the Restricted Period (as defined in the Employment Agreement) shall begin on the day following the Separation Date.
10.    Section 409A.
(a)    The intent of the parties is that payments and benefits under this Agreement comply with, or be exempt from, Section 409A of the Code and the regulations and guidance promulgated thereunder, and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith.  For purposes of Section 409A of the Code, the Consultant’s right to receive any installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments.  In no event may the Consultant, directly or indirectly, designate the calendar year of any payment to be made under this Agreement that is considered nonqualified deferred compensation.
(b)    With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Section 409A of the Code, (i) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year, and (iii) such payments shall be made on or before the last day of the Consultant’s taxable year following the taxable year in which the expense was occurred.
11.    Miscellaneous.
(a)    Successors and Assigns.  This Agreement shall be binding upon, inure to the benefit of, and be enforceable by, as applicable, the Company and the Consultant and their respective personal or legal representatives, executors, administrators, successors, assigns, heirs, distributees, and legatees.  This Agreement is personal in nature, and the Consultant shall not, without the written consent of the Company, assign, transfer, or delegate this Agreement or any rights or obligations hereunder.
(a)    Governing Law and Disputes.  This Agreement shall be governed by and construed in accordance with the laws of the State of Florida without giving effect to such state’s laws and principles regarding the conflict of laws.  The provisions of Section 20 of the 

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Employment Agreement are incorporated by reference in this Agreement and shall apply to any dispute, claim, or controversy arising out of, or relating in any way to, this Agreement, the Services, the Consulting Fees, and other amounts payable to the Consultant pursuant to this Agreement.  In addition, if the Company fails to pay to the Consultant when due any Consulting Fees, Accrued Obligations, business expense reimbursement, or other cash sum payable to the Consultant pursuant to this Agreement, the Company shall pay to the Consultant, on demand, interest on the unpaid amount, from the date when due until paid in full, at a simple annual rate equal to the prime lending rate of Citibank, N.A. (as periodically set) plus 1%.
(b)    Amendment; Entire Agreement.  No provision of this Agreement may be amended, modified, waived, or discharged unless such amendment, waiver, modification, or discharge is agreed to in writing and such writing is signed by the Company and the Consultant.  From and after the Separation Date, this Agreement shall supersede any other agreement between the parties with respect to the subject matter hereof (including, without limitation, the Employment Agreement (other than Sections 10, 19, and 20 of the Employment Agreement).
(c)    Notice.  All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows:
if to the Consultant:
Personal and Confidential
Clayton G. Wilson
The Latt Maxcy Corporation
21299 US Hwy 27 
PO Box 3737
Lake Wales, Florida 33859

if to the Company:
Alico, Inc. 
10070 Daniels Interstate Court 
Fort Myers, Florida 33913 
Attention:   Chief Financial Officer
or to such other address as either party shall have furnished to the other in writing in accordance herewith.  Notice and communications shall be effective when actually received by the addressee.
(d)    Headings.  The headings of this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.
(e)    Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

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IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered as of the date first above written.
ALICO, INC. 
 
By: /s/ Remy W. Trafelet     
 Name:  Remy W. Trafelet
 Title:    Chief Executive Officer

/s/ Clayton G. Wilson 
Clayton G. Wilson

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