Document:

EQM TECHNOLOGIES & ENERGY, INC.

STOCK OPTION PLAN

 

(Effective as of March 29,
2011)

 

    	 

    	 

    

 

EQM TECHNOLOGIES & ENERGY, INC.

STOCK OPTION PLAN

 

(Effective as of March 29, 2011)

 

The following constitutes
a stock option plan as adopted by EQM Technologies & Energy, Inc.

 

(a)          Name,
Sponsor, and Purpose of Plan.

 

(1)         The
name of this plan shall be the EQM Technologies & Energy, Inc. 2011 Stock Option Plan (called herein the “Plan”).

 

(2)         The
sponsor of the Plan is EQM Technologies & Energy, Inc. (herein called “EQM”).

 

(3)         The
purpose of the Plan is to grant written offers of EQM (each offer continuing for a stated period of time at a set price and called
herein an “Option”) to sell common shares of EQM (called herein “Common Shares”) to Key Employees and Outside
Directors (with “Key Employees” and “Outside Directors” both being defined in paragraph (e) below) in order
to give such Key Employees and Outside Directors incentives to grow the value of the EQM (as defined in subparagraph (4) of this
paragraph (a)).

 

(4)         For
purposes of the Plan, the “Company” means, in the aggregate, EQM and each other corporation or other organization that
is part of a chain of corporations and/or other organizations which includes EQM and in which EQM or another corporation or organization
in such chain owns a controlling interest (as defined in Treasury Regulations Section 1.414(c)-2(b)(2)(i), but with the language
“at least 50 percent” being used instead of “at least 80 percent” each place it appears in such regulation
section). A “Related Organization” means an entity that is part of the Company.

 

(b)          Type
of Options To Be Granted Under Plan. Options issued pursuant to the Plan may be either incentive stock options within the
meaning of Section 422 of the Internal Revenue Code of 1986, as amended (with such Options called herein “Incentive Stock
Options” and with such Code called herein the “Code”), or Options which do not qualify under such section (called
herein “Nonincentive Stock Options”), or both. There shall be no term or condition under either type of Option to the
effect that the exercise of one type of Option reduces the number of Common Shares for which the other type may be exercised.

 

(c)          Effective
Date of Plan. This Plan shall become effective on March 29, 2011 (called herein the “Effective Date”), which
is the date that it is adopted by EQM’s Board of Directors (called herein the “Board”). Subject to the other
terms of the Plan, Options may be granted under the Plan at any time on or after the Effective Date. However, any Option granted
under the Plan that would otherwise qualify as an Incentive Stock Option shall be treated as a Nonincentive Stock Option unless
the Plan is approved by the shareholders of EQM within twelve months before or after the Effective Date.

 

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(d)          Aggregate
Number of Common Shares Available for Options.

 

(1)          (i)
The aggregate number of Common Shares which may be delivered upon the exercise of all Options (regardless of whether all such Options
are Incentive Stock Options, Nonincentive Stock Options, or a combination of Incentive Stock Options and Nonincentive Stock Options)
shall be 5,000,000 Common Shares.

 

(ii) The aggregate
number of Common Shares which may be delivered upon the exercise of all Incentive Stock Options granted pursuant to the Plan shall
be 4,750,000 Common Shares.

 

(iii) The aggregate
number of Common Shares which may be the subject of all Options (regardless of whether all such Options are Incentive Stock Options,
Nonincentive Stock Options, or a combination of Incentive Stock Options and Nonincentive Stock Options) granted under the Plan
to any one Key Person in any calendar year shall be 1,500,000 Common Shares.

 

(2)         Any
Common Shares that are deliverable under any Option granted under the Plan may consist, in whole or in part, of Common Shares that
are authorized but unissued by EQM or Common Shares that are treasury shares of EQM.

 

(3)         Upon
the expiration or termination of any Option that has not been exercised in full, unpurchased Common Shares covered by such Option
(i) may be made available for other Options to be granted under the Plan and (ii) thus shall not be counted as Common Shares that
were deliverable under the Plan in determining whether the limits set forth in subparagraph (1) of this paragraph (d) is met.

 

(e)          Persons
Eligible for Options.

 

(1)         Except
as may otherwise be provided in subparagraphs (3) and (4) of this paragraph (e), Incentive Stock Options, Nonincentive Stock Options,
or both Incentive and Nonincentive Stock Options may be granted under the Plan to, and only to, (i) Outside Directors and (ii)
Key Employees (as such terms are defined in subparagraph (2) of this paragraph (e)). Such Outside Directors and Key Employees shall
collectively be called in this Plan as “Key Persons” and each shall be called herein a “Key Person.”

 

(2)         For
purposes of the Plan: (i) an “Outside Director” means any member of the Board who is not an employee of the Company;
and (ii) a “Key Employee” means any employee of the Company who is either an officer of the Company or another employee
who the Board determines is of exceptional importance to the Company and capable of making substantial contributions to the success,
growth, and profits of the Company.

 

(3)         Notwithstanding
the provisions of subparagraph (1) of this paragraph (e), no Option which is intended to be an Incentive Stock Option may be granted
to any person who on the date of grant of the Option is (i) an Outside Director or (ii) a person who is a Key Employee in connection
with his or her employment by a Related Organization that is not a corporation.

 

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(4)         Also
notwithstanding the provisions of subparagraph (1) of this paragraph (e), no Option which is intended to be an Incentive Stock
Option may be granted to any Key Employee who, at the time such Option is granted, owns more than 10% of the total combined voting
power of all classes of stock of EQM or of any other corporation that is a Related Organization, unless, in addition to the requirements
for Incentive Stock Options set forth in paragraph (f) below, (i) the price at which the Common Shares subject to such Option may
be purchased (the price at which Common Shares subject to any Option may be purchased being called herein that Option’s “Exercise
Price”) is set at an amount which is at least 110% of the fair market value of such Common Shares (determined at the time
such Option is granted) and (ii) the Option is not exercisable after the expiration of five years from the date the Option is granted.

 

(5)         For
purposes of the provisions of subparagraph (4) of this paragraph (e), a Key Employee shall be considered as owning the stock owned,
directly or indirectly, by or for his or her brothers or sisters (whether by the whole or half blood), spouse, ancestors, and lineal
descendants, and stock owned, directly or indirectly, by or for a corporation, partnership, estate, or trust shall be considered
as being owned proportionately by or for its shareholders, partners, or beneficiaries.

 

(f)          Grant
of Options and Requirements of Options. The Committee designated in paragraph (m) of this Plan, in its sole and complete
discretion, may grant Options under the Plan to Key Persons. In this regard, the Committee shall, subject to the applicable provisions
of the Plan and on behalf of the Company, select the specific Key Persons to be granted Options under the Plan, the exact number
of Common Shares to be optioned hereunder to each Key Person, and the specific terms of each Option granted hereunder. Subject
to the other provisions of the Plan, each Option granted under this Plan:

 

(1)         shall
be granted only with respect to Common Shares;

 

(2)         shall
call for an Exercise Price as determined by the Committee, but in no event shall the Exercise Price of any Option be less than
the fair market value (determined as of the date of the Option’s grant) of the Common Shares as to which the Option is granted.
Such fair market value shall be determined by disregarding any lapse restrictions, as such term is defined in Treasury Regulations
Section 1.83-3(i), that apply to such Option or such Common Shares (e.g., any restrictions on the transferability of such
Common Shares other than those that are permanent and will never lapse);

 

(3)         shall,
unless otherwise prescribed by the Committee in the terms of an applicable written option agreement, vest twenty-five percent (25.0%)
immediately upon the Option’s grant, vest twenty-five percent (25.0%) on the first annual anniversary of the date of the
Option’s grant, and vest thereafter in equal increments of twenty-five percent (25.0%) on each of the second and third annual
anniversaries of the date of the Option’s grant;

 

(4)         shall
not be assignable or transferable by the optionee of the Option except by will or the laws of descent and distribution, and during
the optionee’s lifetime shall be exercisable only by him or her. In fact, except to the extent otherwise required by applicable
law, any attempt to assign, transfer, pledge, or otherwise dispose of the Option contrary to the provisions of this subparagraph
(4), or any levy or execution, attachment, or other process attempted upon the Option, shall, notwithstanding any other term of
the Option, (i) be null and void and without effect and (ii) cause the Option (to the extent it has not been previously exercised)
to terminate immediately upon the happening of any such event;

 

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(5)         shall
not, if the Option is intended to be an Incentive Stock Option, be exercisable after the expiration of ten years from the date
the Option is granted;

 

(6)         shall,
if the Option is intended to be an Incentive Stock Option, be granted within ten years from the earlier of (i) the Effective Date
or (ii) the date this Plan is approved by the shareholders of EQM; and

 

(7)         shall
be subject to such additional terms (but not inconsistent with the above conditions or any other conditions set forth in this Plan)
as are determined by the Committee in its discretion and are specified in the applicable written option agreement. Such additional
provisions may include, but are not limited to: (i) forfeiture provisions; (ii) exercise acceleration provisions; and (iii) provisions
that require, as a condition to the Option’s exercise, that the person exercising the Option must enter into a shareholder
agreement with EQM the form of which is attached to the applicable written option agreement (and that provides for certain restrictions
on the transfer of Common Shares received on exercise of the Option and for the repurchase of such Common Shares under certain
circumstances).

 

(g)          Limitations
on Incentive Stock Options.

 

(i)          To
the extent that the aggregate fair market value of Common Shares with respect to which Incentive Stock Options are exercisable
for the first time by any optionee during any calendar year (under this Plan and all other plans maintained by Related Organizations)
exceeds $100,000, such Options shall be treated as Nonincentive Stock Options. The rule set forth in the immediately preceding
sentence shall be applied by taking Options into account in the order in which they were granted. Also for purposes hereof, the
fair market value of any Common Shares which are subject to an Option shall be determined as of the time the Option is granted.

 

(ii)         Except
as otherwise specifically provided in the Option agreement, a Key Employee’s right to exercise an Incentive Stock Option
upon termination of such Key Employee’s employment with the Company shall expire upon the three-month anniversary of such
Key Employee’s termination of employment with the Company, unless such termination was due to the death or disability of
such Key Employee, in which case such Key Employee’s right to exercise an Incentive Stock Option shall expire upon the one-year
anniversary of such Key Employee’s termination of employment with the Company.

 

(h)          Determination
of Fair Market Value. Whenever the fair market value of a Common Share as of any date must be determined for purposes of
the Plan or in order to meet legal reporting and withholding requirements (such as the date on which any Option is granted under
the Plan or the date any Option is exercised under the Plan), the Board shall determine such fair market value in the manner described
in the following subparagraphs of this paragraph (h).

 

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(1)         If
Common Shares are readily tradable (that is, is regularly quoted by brokers or dealers making a market in such shares) on an established
securities market (as defined in Treasury Regulations Section 1.897-1(m)) as of the date of the determination, the fair market
value of a Common Share shall be determined by the Board at the time of grant, and may be determined based upon the last sale before
or the first sale after the grant, the closing price on the trading day before or the trading day of the grant, the arithmetic
mean of the high and low prices on the trading day before or the trading day of the grant, or any other reasonable method using
actual transactions in such stock as reported by such market. The determination of fair market value also may be determined using
an average selling price during a specified period that is within 30 days before or 30 days after the applicable valuation date,
provided that the the Board must irrevocably specify the commitment to grant the stock right with an exercise price set using such
average selling price before the beginning of the specified 30 day period. For this purpose, the term average selling price
refers to the arithmetic mean of such selling prices on all trading days during the specified period, or the average of such prices
over the specified period weighted based on the volume of trading of such stock on each trading day during such specified period.
The Board must designate the recipient of the Option, the number of shares of Common Stock that are subject to the Option, and
the method for determining the exercise price before the beginning of the averaging period.

 

(2)         If
Common Shares are not readily tradable on an established securities market (as defined in Treasury Regulations Section 1.897-1(m))
as of the date of the determination, the fair market value of a Common Share as of such date shall be determined in good faith
by the Board by reasonable application of a reasonable valuation method that (i) considers any and all information the Board determines
relevant and (ii) is consistent with the valuation methods described in Treasury Regulations Section 1.409A-1(b)(5)(iv)(B), including,
as applicable, the value of tangible and intangible assets of EQM, the present value of anticipated future cash-flows of EQM, the
market value of stock or equity interests in similar corporations and other entities engaged in trades or businesses substantially
similar to those engaged in by EQM, the value of which can be readily determined through nondiscretionary, objective means (such
as through trading prices on an established securities market or an amount paid in an arm’s length private transaction),
recent arm’s length transactions involving the sale or transfer of such stock or equity interests, and other relevant factors
such as control premiums or discounts for lack of marketability and whether the valuation method is used for other purposes that
have a material economic effect on EQM, its stockholders, or its creditors.

 

(i)          Provisions
Upon Change in Control.

 

(1)         In
the event a Change in Control occurs on or after the Effective Date, then, unless otherwise prescribed by the Board in the terms
of an applicable Option, each and any outstanding Option granted under the Plan to a Key Person shall immediately become exercisable
in full upon the date of the Change in Control.

 

(2)         In
addition, unless the Board shall otherwise prescribe in the terms of an Option granted under the Plan, in the event of a Change
in Control the Board shall have discretion to cause a cash payment to be made to the person who then holds such Option, in lieu
of the right to exercise such Option or any portion thereof, provided (i) that such Option is still outstanding as of the Change
in Control and (ii) that the aggregate fair market value (on the date of the Change in Control) of the Common Shares that are subject
to such Option exceeds the aggregate Exercise Price of such Option. In the event the Board exercises its discretion to cause such
cash payment to be made, the amount of such cash payment shall be equal to the amount by which (i) the aggregate fair market value
(on the date of the Change in Control) of the Common Shares that are subject to such Option exceeds (ii) the aggregate Exercise
Price of such Option.

 

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(3)         For
purposes of the Plan, a “Change in Control” shall be deemed to have occurred the date described in clause (A) of this
subparagraph (3).

 

(A)         The
first date that occurs after the Effective Date and on which, in connection with a sale of shares of EQM that occurs on such date
(or a series of sales of EQM shares the latest one of which occurs on such date), one person (including an entity) or more than
one person acting as a group acquires EQM shares that constitute at least 50% of the total voting power of the shares of EQM, provided
that such person or persons do not include Argentum Capital Partners II, L.P., a Delaware limited partnership (“Argentum”)
or any organization that has more than 50% of the total voting power of all of its shares (or, if such other organization is not
a corporation, more than 50% of its profits interests or capital interests) owned by Argentum. 

 

(j)          Adjustments
in Options.

 

(1)         Unless
otherwise prescribed by the Board in the terms of an applicable Option, the Board may proportionately adjust the number and class
of shares subject to an Option granted under the Plan and the Exercise Price of such Option, and appropriately adjust the aggregate
number and class of shares available under the Plan and the number of shares as to which Options may be granted, in the event of
actual changes in the outstanding Common Shares of EQM that result from and by reason of stock dividends, stock splits, recapitalizations,
mergers, consolidations, combinations or exchanges of shares, split-ups, split-offs, spin-offs, liquidations or other similar changes
in capitalization, or any distribution to shareholders other than cash dividends.

 

(2)         Notwithstanding
the provisions of subparagraph (1) of paragraph (j), the Board may not take any action under the provisions of subparagraph (1)
of paragraph (j) to the extent that such action either (i) would otherwise cause an adjustment to any Option granted under the
Plan that, in accordance with Treasury Regulations issued under Code Section 424, would constitute a modification of the Option
for purposes of Section 424 of the Code or (ii) would otherwise cause any Option granted under the Plan to become subject to the
requirements of Code Section 409A when such Option would not be subject to such requirements in the absence of such adjustment.

 

(3)         The
Board shall be authorized to correct any defect, supply any omission, or reconcile any inconsistency in the Plan or any Option
granted under the Plan in the manner and to the extent it shall determine is needed to reflect the intended provisions of the Plan
or that Option or to meet any law that is applicable to the Plan (or the provisions of any law which must be met in order for the
normal tax consequences of the Option to apply).

 

(k)          Procedures
for Exercise of Option and Other Exercise Rules.

 

(1)         With
respect to each exercise of an Option granted under the Plan, written notice of the exercise must be given and the Option’s
Exercise Price with respect to the Common Shares being purchased upon the exercise and any taxes required to be withheld upon the
exercise must be paid in full at the time of the exercise. The procedures for providing written notice of the exercise are described
in subparagraph (2) of this paragraph (k), and the procedures for payment of the Option’s Exercise Price for the Common Shares
being purchased upon the exercise and any taxes required to be withheld upon the exercise are described in the provisions of paragraph
(l) below.

 

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(2)         Any
Option granted under the Plan may be exercised as of any date only by a written notice or a facsimile to the Secretary of EQM,
signed by the optionee of the Option or such other person who is entitled to exercise the Option and received during normal business
hours on such date or any earlier date by the office of the Secretary of EQM. If any dispute arises between EQM and the optionee
(or such other person who is exercising the Option) as to when such written notice or facsimile is received by the Secretary of
EQM, the date that the Secretary of EQM determines it was received shall be controlling on all parties unless the optionee (or
such other person who is exercising the Option) has a certified mail receipt, a handwritten receipt of personal delivery, or a
facsimile confirmation that provides reasonable and credible evidence that it was received on a different date. The written notice
or facsimile shall state the number of Common Shares with respect to which the Option is being exercised (and, as is indicated
in subparagraph (1) of this paragraph (k), shall be accompanied by payment in full of the Option’s Exercise Price for such
Common Shares and any taxes required to be withheld upon the exercise). If the Option is exercised by anyone other than the optionee,
the written notice or facsimile shall be accompanied by proof of the right of such person to exercise the Option.

 

(3)         An
optionee of any Option granted under the Plan (or such other person who is exercising the Option) may not exercise the Option so
as to purchase any fractional Common Share, and no fractional Common Share shall be issued upon the exercise of any Option granted
under the Plan. However, in any case where, because of adjustments in the number of Common Shares subject to an Option granted
under the Plan made under the provisions of paragraph (j) above, the exercise at any time of the entire portion of the Option then
available for exercise would otherwise (in the absence of this paragraph (3)) require a fractional Common Share to be purchased
under the Option, EQM shall pay a sum in cash equal to the excess of the fair market value of such fractional Common Share (determined
in such reasonable manner as may be prescribed by the Board) over the proportional part of the Option’s Exercise Price represented
by such fractional share.

 

(4)         As
soon as administratively practical after the receipt of the written notice and full payment applicable to the exercise of any Option
granted under the Plan in accordance with the procedures established under the provisions of this paragraph (k) and the provisions
of paragraph (l) below, EQM shall deliver to the optionee of the Option (or such other person who is exercising the Option) a certificate
or certificates representing the acquired Common Shares. The Common Shares represented by each and every certificate for Common
Shares to be delivered on the exercise of the Option shall be, at the time of such delivery, validly issued and outstanding, fully
paid, and nonassessable.

 

(5)         If
any Option granted under the Plan is exercised in respect of less than all of the Common Shares that are still then or may later
be purchasable thereunder, the optionee of the Option (or such other person who is exercising the Option) shall be entitled to
receive a revised written option agreement covering the number of Common Shares in respect of which the Option shall not have been
exercised but otherwise containing the same conditions and terms as are set forth in the original Option.

 

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(6)         In
case any Option granted under the Plan is mutilated, lost, stolen, or destroyed, EQM shall issue a new Option of identical provisions
and deliver the same in exchange and substitution: (i) for any mutilated Option, upon surrender and cancellation of such mutilated
Option; or (ii) for any lost, stolen, or destroyed Option, upon receipt of evidence satisfactory to EQM of the loss, theft, or
destruction of such Option and upon receipt of indemnity satisfactory to EQM.

 

(7)         Notwithstanding
any other provision of the Plan which might be read to the contrary, no person holding an Option granted under the Plan or entitled
to exercise an Option granted under the Plan shall have any rights or privileges of a shareholder of EQM with respect to any Common
Shares issuable upon exercise of such Option until certificates representing such Common Shares shall have been issued and delivered.
Further, no Common Shares shall be issued and delivered upon exercise of an Option granted under the Plan unless and until EQM,
in the opinion of its counsel, has complied with all registration requirements of the Securities Act of 1933, any state securities
laws, and any national securities exchange on which EQM securities may then be listed as well as any other requirements of law,
to the extent any such laws or exchanges apply to Common Shares.

 

(l)          Procedures
For Satisfying Payment and Withholding Requirements.

 

(1)         As
is indicated in subparagraph (1) of paragraph (k) above, upon the exercise of any Option granted under the Plan, the Option’s
Exercise Price with respect to the Common Shares being purchased under the Option and any taxes required to be withheld by the
terms of the Option or under applicable law in connection with such exercise (with any such Exercise Price and tax withholding
requirements being referred to in this paragraph (l) as the “payment/withholding requirements”) must be paid in full.
The Board may set forth in any written agreement by which an Option is granted under the Plan the procedures that must be used
for satisfying the payment/withholding requirements with respect to the exercise of such Option (and in fact such procedures can
differ from the analogous procedures applicable to any other Option granted under the Plan).

 

(2)         Unless
the Board otherwise prescribes in the written agreement by which an Option is granted under the Plan, any Participant to whom an
Option under the Plan is granted (or, if applicable, such other person who is exercising or receiving a payment under the Option)
may, in his or her sole discretion, satisfy the payment/withholding requirements that apply to such Option by using any one or
more of the following methods or any combination of the following methods:

 

(A)         by
making a payment to the Company of an amount in cash (which, for purposes of the Plan, shall be deemed to include payment in U.S.
currency or by certified check, bank draft, cashier’s check, or money order) equal to the amount of such payment/withholding
requirements;

 

(B)         by
making a payment to the Company in Common Shares which are previously owned by the Participant (or such other person) and have
a fair market value on the date of payment equal to the amount of such payment/withholding requirements;

 

(C)         to
the extent permitted under the Option agreement, by having the Company retain Common Shares which are otherwise being purchased
or paid under the Option and have a fair market value on the date of payment equal to the amount of such payment/withholding requirements;
and/or

 

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(D)         to
the extent acceptable to the Company, by having the Company retain an amount of cash that is payable under any other compensation
applicable to the Participant (or such other person) and equal to the amount of such payment/withholding requirements.

 

(3)         If
any Key Person or other person who is responsible for satisfying any payment/withholding requirements that apply to an Option granted
under the Plan otherwise fails to satisfy such payment/withholding requirements under the procedures or other rules set forth in
the foregoing provisions of this paragraph (l), the Company shall have the right to retain from such Option or the payment thereof
(or from any other amount that is payable as compensation to the Key Person or such other person), as appropriate, a sufficient
number of Common Shares or cash otherwise applicable to the Option (or otherwise applicable to such other compensation amount)
in order to satisfy such payment/withholding requirements.

 

(m)          Administration.

 

(1)         With
respect to interpretation and administration of the Plan and for determining the terms of Options awarded to Key Employees, the
Plan shall be administered by the Compensation Committee of the Board, or such other committee appointed by the Board which shall
consist of two or more members of the Board, each of whom is both and an “outside director” and a “non-employee
director.” The Compensation Committee shall have full authority and discretion to interpret the Plan, to prescribe, amend,
and rescind rules and regulations relating to the Plan, and to make all other determinations necessary or advisable for the administration
of the Plan. The Compensation Committee’s determination as to any matter relating to the interpretation of the Plan shall
be conclusive on all persons. Notwithstanding the foregoing, the amount and terms of Options granted to Outside Directors shall
be determined by the entire Board. For purposes of this subparagraph (1) of paragraph (m), “outside director” means
a member of the Board who either (i) (A) is not a current employee of the Company or an “affiliated corporation” (within
the meaning of Treasury Regulations promulgated under Code Section 162(m)); (B) is not a former employee of the Company or an “affiliated
corporation” who still receives compensation for prior services (other than benefits under a tax-qualified retirement plan)
or was not an employee during any prior period within the time defined under Exchange Act rules or the rules of any stock exchange
on which the Stock is then traded; (C) was not an officer of the Company or an “affiliated corporation” at any time;
and (D) does not currently receive remuneration from the Company or an “affiliated corporation,” either directly or
indirectly, in any capacity other than as a member of the Board; or (ii) is otherwise considered an “outside director”
for purposes of Code Section 162(m); and (b) “non-employee director” means a member of the Board who (i) is not a current
employee or officer of the Company; (ii) does not receive compensation (directly or indirectly) from the Company for services rendered
as a consultant or in any capacity other than as a member of the Board (except for an amount as to which disclosure would not be
required under Item 404(a) of Regulation S-K promulgated pursuant to the Securities Act (“Regulation S K”)); (iii)
does not possess an interest in any other transaction as to which disclosure would be required under Item 404(a) of Regulation
S-K; and (iv) is not engaged in a business relationship as to which disclosure would be required under Item 404(b) of Regulation
S-K. The number of members of the Compensation Committee shall be determined by the Board. The Board shall add or remove members
from the Compensation Committee as the Board sees fit, and vacancies shall be filled by the Board.

 

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(2)         The
grant of any Option under the Plan shall be effected by the execution of a written option agreement in such form as is approved
by the Board of Committee, which must be signed by a member of the Board (or any person designated as its agent for this purpose).

 

(3)         The
Board or Committee may, in its discretion and at any time, amend any written option agreement it has issued to a Key Person under
the Plan, provided that (i) no such amendment may be effective without the optionee’s written consent if it would impair
in any manner the benefits provided under the Option to the Key Person, (ii) no such amendment may change the terms of the Option
to those which violate any provision of the Plan, and (iii) no such amendment may cause the Option to become subject to the requirements
of Code Section 409A when the Option would not be subject to such requirements in the absence of such amendment (and, in particular
but not by way of limiting the scope of this clause (iii), no such amendment may extend the exercise period of the Option except
to the extent such amendment is not considered an extension under Treasury Regulations Section 1.409A-1(b)(5)(v)).

 

(n)          No
Right of Employment. Nothing contained in the Plan or any Option granted pursuant to the Plan shall confer on any Key Person
any right to be continued in the employment or service of the Company or interfere in any way with the right of the Company to
terminate his or her employment or service at any time and in the same manner as though the Plan and any Options granted hereunder
were not in effect.

 

(o)          Amendment
or Termination of Plan. The Board shall have the right to amend, suspend, or terminate this Plan at any time; provided,
however, that (i) no action shall affect adversely the rights of any optionee under any Option granted under this Plan prior to
such amendment, suspension, or termination and (ii) no amendment changing the class of employees or persons eligible to receive
Incentive Stock Options hereunder, increasing the aggregate number of Common Shares to be subject to Incentive Stock Options granted
hereunder, or materially increasing the benefits accruing to eligible persons under any Incentive Stock Options granted hereunder
may be made without, in any of such cases, approval of the shareholders of EQM.

 

(p)          Approval
of Shareholders. Any approval of EQM's shareholders to the Plan as initially reflected in this document or to any amendment
to the Plan must, when such approval is otherwise required for any purpose under the other terms of the Plan, comply with all applicable
provisions of the company’s charter and bylaws and any applicable State law prescribing the method and degree of shareholder
approval required.

 

(q)          Miscellaneous.

 

(1)         Any
reference to the Code, any section of the Code, any Treasury Regulations section, or any law other than the Code shall be read
to refer to such Code, section, or law as in effect on the Effective Date and as such Code, Code section, Treasury Regulations
section, or law is thereafter amended.

 

    	- 10 -

    	 

    

 

(2)         Except
to the extent preempted by any applicable Federal law, the Plan shall be subject to and construed in accordance with the laws of
the State of Ohio.

 

(3)         The
Plan may be executed in any number of counterparts, each of which shall be deemed an original. The counterparts shall constitute
one and the same instrument, which shall be sufficiently evidenced by any one thereof. Headings used throughout the Plan (or in
any written option agreement issued under the Plan) are for convenience only and shall not be given legal significance.

 

IN ORDER TO REFLECT
THE ADOPTION OF THE PLAN, EQM has caused its name to be subscribed to this Plan.

 

	 	EQM TECHNOLOGIES & ENERGY, INC.
	 	 	 
	 	By	/s/Jack S. Greber
	 	 	 
	 	Title	CEO .
	 	 	 
	 	Date	03/29/11 .

 

    	- 11 -EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT
(this “Agreement”) is made effective as of January 1, 2012 (the “Effective Date”), by and
between Environmental Quality Management, Inc., a Delaware corporation (the “Company”), with an address at 1800
Carillon Blvd., Cincinnati, OH 45240, and James E. Wendle, who currently resides at 7595 Blue Fox Run, West Chester, Ohio 45069
(“Executive”).

 

1.          Employment
of Executive; Title; Duties. The Company agrees to employ Executive, and Executive agrees to serve, as the President and Chief
Operating Officer of the Company, on the terms and subject to the conditions set forth in this Agreement. Executive also agrees
to serve as President and Chief Operating Officer of EQM Technologies & Energy, Inc., a Delaware corporation (“Parent”),
and in such other positions at other subsidiaries of Parent as designated by the Board of Directors of Parent (the “Board”).

 

2.          Term.
Executive’s employment by the Company hereunder shall be for an initial term (the “Initial Term”) commencing
on the Effective Date and expiring on December 31, 2014, unless terminated earlier as hereinafter provided. The term of employment
of Executive with the Company hereunder shall automatically be renewed and extended after the Initial Term without further action
by Executive or the Company as of January 1, 2015 and each succeeding January 1 thereafter for an additional term of one year (in
each case unless terminated earlier as hereinafter provided), unless either Executive or the Company shall have delivered written
notice to the other (“Notice of Non-Renewal”) prior to December 1, 2014 or prior to December 1 of any succeeding
year, as applicable, of his or its election not to renew the term of Executive’s employment hereunder, in which case the
Executive’s employment shall terminate as of the December 31 first occurring after the date of the Notice of Non-Renewal
(but in no event before December 31, 2014).

 

3.          Performance
of Duties. Executive agrees that throughout the period of his employment hereunder he will devote all of his professional time,
attention, skills and energies faithfully and diligently and to the best of his ability to the performance of the duties and responsibilities
assigned to him pursuant to Section 1 hereof in an efficient, trustworthy and businesslike manner as directed by the Board. Without
limiting the generality of the foregoing, Executive shall not, without the written approval of the Board, render services of a
business or commercial nature on his own behalf or on behalf of any other person, firm, or corporation, whether for compensation
or otherwise, during his employment hereunder; provided, however, the foregoing shall not prevent Executive from the following,
so long as such activities in the aggregate do not materially interfere or conflict with Executive’s duties hereunder or
create a potential business or fiduciary conflict: (i) serving on the boards of directors of non-profit organizations and, with
the prior written approval of the Board, other for profit companies; (ii) participating in charitable, civic, educational, professional,
community or industry affairs; and (iii) managing Executive’s passive personal investments.

 

    	1

    	 

    

 

4.          Compensation
and Other Matters.

 

(a)          Annual
Salary. As compensation for his services hereunder, the Company shall pay to Executive a salary at the rate of $230,000 per
annum (the “Annual Salary”), payable in equal installments in arrears in accordance with the Company’s
customary payroll practices at the time of payment. The Annual Salary is subject to upward adjustment from time to time in the
sole discretion of the Compensation Committee of the Board (the “Compensation Committee”).

 

(b)          Annual
Bonus. Executive shall be eligible to participate at a level commensurate with Executive’s duties and responsibilities
in any annual bonus program established by the Board, from time to time, for the benefit of executive officers and key employees
of the Company and its parents or subsidiaries (Executive’s participation in any such program, the “Annual Bonus”).
The Annual Bonus for the year ending December 31, 2012 shall be determined in accordance with the EQM FY 2012 EBITDA Bonus Plan
previously established by the Board provided to Executive, and shall be paid less applicable withholdings and deductions.

 

(c)          Stock
Options. Executive acknowledges that he was granted options to purchase 1,140,000 shares of Parent’s common stock (the
“Stock Options”) on March 29, 2011 pursuant to the EQM Technologies & Energy, Inc. Stock Option Plan (the
“Option Plan”). The terms and conditions of such grant are set forth in an option agreement, dated March 29,
2011, by and between Executive and Parent (the “Option Agreement”). Executive may also be eligible to participate
in future grants, at the discretion of the Board.

 

(d)          Change
in Control Transaction.

 

(i)          If
a Change in Control Transaction (as defined below) (x) closes while the Executive is employed by the Company hereunder or (y) (1)
is “In Process” as of the date that Executive’s employment with the Company hereunder ends (“Date of
Termination”) due to a termination by the Company without Cause and (2) closes within six (6) months following such Date
of Termination, the Company shall pay to Executive an amount (the “Transaction Incentive Fee”) equal to 33-1/3%
of the lesser of: (i) 10% of the Net Equity Value received by Parent or its shareholders, as applicable, in connection with the
Change in Control Transaction, or (ii) $1,200,000. Notwithstanding the foregoing, the Company shall not be obligated to pay all
or any part of the Transaction Incentive Fee in the event the Company terminates Executive’s employment with Cause pursuant
to Section 9(a) or of any Voluntary Termination pursuant to Section 9(c). The Company shall pay the Transaction Incentive Fee to
the Executive at substantially the same time(s) and in substantially the same installments, in substantially the same form and
proportion of cash and non-cash consideration (such as equity or debt securities), and subject to the same restrictions, reductions,
contingencies and limitations (including without limitation earnouts, escrows, holdbacks and indemnities) as the Net Equity Value
is paid to Parent and/or its shareholders, as applicable, but in no event later than five (5) years after the Change in Control
Transaction.

 

    	2

    	 

    

 

(ii)         For
purposes of this Agreement, “Change in Control Transaction” means (x) the sale of all or substantially all of
the outstanding stock of Parent to any person, firm or entity or group of persons, firms or entities (a “Person”)
other than Argentum Capital Partners II, L.P., a Delaware limited partnership, and/or any of its affiliates (collectively, “Argentum”),
or (y) the sale or transfer of all or substantially all of the assets of Parent to a Person other than Argentum, in each case other
than in a reorganization or recapitalization or other similar transaction among Parent and one or more of its affiliates, provided
that for purposes of clause (x) and clause (y) above a Change in Control Transaction must constitute a Change in Control under
Treasury Regulation Section 1.409A-3(i)(5). “Net Equity Value” means the net consideration actually received
by Parent (in respect of its assets) and/or its shareholders (in respect of their stock, and not in respect of any other consideration
they may receive from Parent or any acquiror, successor or surviving entity, including without limitation, salary and/or consulting
fees), as applicable, in connection with a Change in Control Transaction, after deducting all liabilities, obligations and indebtedness
of Parent (which deductible amounts shall include, without limitation, (A) the aggregate liquidation preference, and (without double
counting) any accrued dividends paid or payable in respect of any preferred stock of Parent outstanding at any time on or after
the date hereof, which shall be so deducted regardless whether any such preferred stock has been converted into common stock at
any time prior to or in connection with such Change in Control Transaction and (B) the aggregate outstanding principal amount and
(without double counting) any interest accrued thereon of any convertible notes of Parent outstanding at any time on or after the
date hereof, which shall be so deducted regardless of whether any such notes have been converted into Parent stock at any time
between the date hereof and the effective date of such Change in Control Transaction. “In Process” means that
a buyer and Parent have signed a letter of intent or similar agreement that outlines the terms by which the buyer will purchase
the stock or assets of Parent.

 

(iii)        Notwithstanding
any provision in this Agreement to the contrary, as an express contractual condition to the Company’s obligation to pay the
Transaction Incentive Fee, Executive shall execute and deliver a general release, in such form as shall be required by the Company,
of any and all common law, statutory and/or other rights, claims or causes of action of any kind, including without limitation
any rights, claims or causes of action based upon this Agreement or otherwise arising out of or related to the Executive’s
employment by, and/or (if applicable) the termination of the Executive’s employment with, the Company or any of its affiliates
(except for the Company’s obligations under this Agreement). Further, Executive shall forfeit all rights to the Transaction
Incentive Fee unless such release is signed and delivered (and no longer subject to any applicable revocation or rescission rights)
within thirty (30) days following the date of the Date of Termination.

 

(e)          Reimbursement
of Expenses. The Company shall reimburse Executive for all reasonable expenses actually paid or incurred by Executive in the
course of and pursuant to the discharge of Executive’s responsibilities hereunder. Reimbursement of such expenses shall be
paid in accordance with the Company’s customary policies in force at the time of payment, upon submission by Executive of
receipts and vouchers itemizing such expenses in a form reasonably satisfactory to the Company, properly identifying the nature
and business purpose of any expenditures except as provided in Section 19 hereto.

 

5.           Additional
Benefits; Vacation.

 

(a)          In
addition to his Annual Salary, Annual Bonus and Stock Options, Executive shall be entitled to participate, to the extent he is
eligible under the terms and conditions thereof, in any retirement, disability, medical service, insurance or other employee benefit
plan generally available to the employees of the Company that may be in effect from time to time during his employment term.

 

    	3

    	 

    

 

(b)          The
Company shall pay directly to Executive $1,500 per month, less applicable withholdings and deductions, for the costs of leasing
an automobile, payable in arrears in accordance with the Company’s customary payroll practices at the time of payment.

 

(c)          Executive
shall be entitled to four (4) weeks (equal to 20 work days) of paid vacation in respect of each 12-month period during his employment
hereunder. Accrual and use of vacation shall be in accordance with the Company’s benefits policy except as specified herein.
Accrued days must be used during the calendar year in which they accrued, and accrued but unused vacation days may not be carried
over to subsequent years. Executive understands that this Section 5(c) may be inconsistent with the policies contained in the Company’s
employee handbook, as in effect from time to time (“Employee Handbook”), and agrees that this Agreement should
be given controlling effect.

 

(d)          Executive
acknowledges that, except as provided in Section 5(c), he shall be bound by and subject to the terms and conditions of the Employee
Handbook.

 

6.           Restrictions
on Competition and Solicitation.

 

(a)          In
consideration of the compensation and benefits provided to Executive hereunder and the Company’s entry into this Agreement,
Executive agrees that during Executive’s employment with the Company (and any entity into which the Company may be merged)
and for a period of (x) 6 months thereafter with respect to clause (i) below, or (y) 12 months thereafter with respect to clauses
(ii) and (iii) below (as applicable, the “Restricted Period”) (provided that the Restricted Period shall be
tolled during, and shall be extended for the duration of, any breach of any of the covenants and restrictions contained in this
Section 6), Executive shall not:

 

(i)          directly
or indirectly, in his own capacity or through any other Person, whether as owner, consultant, partner, member, manager, officer,
director, venturer, agent, through stock ownership, investment of capital, lending of money or property, rendering of services,
or otherwise, engage in the Business (as defined below) within the Applicable Territory (as defined below), except on behalf of
the Company or any of its affiliates;

 

(ii)         directly
or indirectly, in his own capacity or through any other Person, solicit, persuade or induce any Person which is, or at any time
during Executive’s employment with the Company was a Customer (as defined below) of the Company or any of its affiliates
to (x) terminate, reduce or refrain from renewing or extending its relationship with the Company or any of its affiliates, or (y)
become a customer of or enter into any contractual or other relationship with Executive or any other Person in regard to the purchase
of products or services of the type provided in the Business;

 

(iii)        directly
or indirectly, in his own capacity or through any other Person, solicit, persuade or induce any Person, firm or entity that is,
or at any time during Executive’s employment with the Company or any of its affiliates was, (x) engaged as an employee, representative,
agent, independent contractor or otherwise by the Company or any of its affiliates or (y) a supplier of any product or service
to, or vendor of any product or service for, the Company, to terminate, reduce or refrain from renewing or extending his, her or
its relationship with the Company or any of its affiliates; provided, however, that nothing contained in this Agreement
shall preclude Executive from engaging in general advertising of employment opportunities or general solicitations for employees.

 

    	4

    	 

    

 

(b)          The
term “Business” shall mean the providing of engineering, remediation and/or environmental services, and/or the
production of biodiesel. The term “Applicable Territory” shall mean (i) throughout the world, but if such area
is determined by judicial action to be too broad, then it shall mean (ii) within the continental United States, but if such area
is determined by judicial action to be too broad, then it shall mean (iii) within any state in which the Company is engaged in
the Business as of the date of this Agreement or at any time during Executive’s employment under this Agreement, but if such
area is determined by judicial action to be too broad, then it shall be (iv) the States of Indiana, Missouri, Nebraska, Ohio, Oklahoma,
Texas and Utah. Notwithstanding the foregoing, nothing contained in this Agreement shall be deemed to prohibit Executive from investing
in securities of an issuer that are listed for trading on a national securities exchange or traded in the over-the-counter market,
provided that Executive’s holdings represent no greater than 2.0% of the total number of shares or principal amount of the
securities outstanding.

 

(c)          The
term “Customer” shall mean any individual, corporation, partnership, business or other entity, whether for-profit
or not-for-profit public, privately held, or owned by the United States government that is a business entity or individual with
whom the Company has done business or with whom Executive or the Company has submitted a proposal to or actively negotiated with
during the twelve (12) month period immediately preceding the termination of Executive’s employment with the Company (and
any entity into which the Company may be merged).

 

(d)          Executive
agrees that the covenants and restrictions contained in Section 6 are necessary for the reasonable and proper protection of the
Company and its affiliates and the Business, that irreparable injury will result to the Company and its affiliates if Executive
breaches any of the terms of this Section 6, and that in the event of Executive’s actual or threatened breach of any such
provision, the Company and its affiliates shall have no adequate remedy at law. Executive accordingly agrees that in the event
of any actual or threatened breach by him of any of the provisions contained in Section 6, the Company shall, in addition to and
without limiting its other rights and remedies at law or in equity, be entitled to such injunctive and other equitable relief,
as may be deemed necessary or appropriate by a court of competent jurisdiction, without the need to post bond or other security.
If, in any judicial proceeding, a court shall find any of the foregoing provisions or portion thereof to be invalid, prohibited
or unenforceable, then the applicable provision shall be construed as if more narrowly drafted as necessary so as not to be invalid,
prohibited or unenforceable or, if such narrowing is not possible, such provision or portion thereof shall be deemed eliminated,
but only to the extent of its unenforceability in the applicable jurisdiction, and the remaining provisions or portions thereof
shall be limited, in such jurisdiction only, to the extent necessary to permit their enforcement.

 

(e)          The
rights of the Company under this Section 6 may be assigned by the Company to any entity that may purchase or acquire all or substantially
all of the assets of the Business or any entity into which the Company or Parent is merged, without the consent of Executive.

 

    	5

    	 

    

 

7.           Confidential
Information.

 

(a)          Without
limiting the Executive’s obligations under the Employee Handbook or any other any agreement or instrument in favor of the
Company, Executive understands that he may have access to unpublished and otherwise confidential information both of a technical
and non-technical nature, relating to the business of the Company and any of its parents, subsidiaries, divisions, affiliates (collectively,
“Affiliated Entities”), or clients, including without limitation any of their actual or anticipated business,
research or development, any of their technology or the implementation or exploitation thereof, including without limitation information
Executive and others have collected, obtained or created, information pertaining to clients, accounts, vendors, prices, costs,
materials, processes, codes, material results, technology, system designs, system specifications, materials of construction, trade
secrets and equipment designs, including information disclosed to the Company or any of its affiliates by others under agreements
to hold such information confidential (collectively, the “Confidential Information”). The Company’s success
is dependent on the development and protection of its intellectual property, including but not limited to the Confidential Information.
Executive understands and acknowledges the importance of maintaining the confidentiality of the Confidential Information to the
Company’s continued success. Executive agrees to observe all policies and procedures of the Company and its affiliates concerning
such Confidential Information. Executive further agrees not to disclose or use, either during his employment or at any time thereafter,
any Confidential Information for any purpose, including without limitation any competitive purpose, unless authorized to do so
by the Company in writing, except that he may disclose and use such information in the good faith performance of his duties under
this Agreement. Executive’s obligations under this Agreement will continue with respect to Confidential Information, whether
or not his employment is terminated, until such information becomes generally available from public sources through no fault of
Executive or any representative of Executive. Notwithstanding the foregoing, however, Executive shall be permitted to disclose
Confidential Information as may be required by a subpoena or other governmental order, provided that he first notifies the Company
of such subpoena, order or other requirement and such that the Company has the opportunity to obtain a protective order or other
appropriate remedy.

 

(b)          During
Executive’s employment, upon the Company’s request, or upon the termination of his employment for any reason, Executive
will promptly deliver to the Company all documents, records, files, notebooks, manuals, letters, notes, reports, customer and supplier
lists, cost and profit data, e-mail, apparatus, computers, blackberries or other PDAs, hardware, software, drawings, blueprints,
and any other material of the Company or any of its Affiliated Entities or clients, including all materials pertaining to Confidential
Information developed by Executive or others, and all copies of such materials, whether of a technical, business or fiscal nature,
whether on the hard drive of a laptop or desktop computer, in hard copy, disk or any other format, that are in his possession,
custody or control. Executive may retain Executive’s rolodex and similar address books, provided, that such items only include
contact information.

 

    	6

    	 

    

 

8.           Assignment
of Intellectual Property.

 

(a)          Executive
will promptly disclose to the Company any idea, invention, discovery or improvement, whether patentable or not (“Creations”),
conceived or made by him alone or with others at any time during his employment. Executive agrees that the Company owns any such
Creations, conceived or made by Executive alone or with others at any time during his employment, and Executive hereby assigns
and agrees to assign to the Company all moral or other rights he has or may acquire therein and agrees to execute any and all applications,
assignments and other instruments relating thereto which the Company deems necessary or desirable. These obligations shall continue
beyond the termination of his employment with respect to Creations and derivatives of such Creations conceived or made during his
employment with the Company. The Company and Executive understand that the obligation to assign Creations to the Company shall
not apply to any Creation which is developed entirely on his own time without using any of the Company’s equipment, supplies,
facilities, and/or Confidential Information unless such Creation (i) relates in any way to the business or to the current
or anticipated research or development of the Company or any of the Affiliated Entities, or (ii) results in any way from his
work at the Company.

 

(b)          In
any jurisdiction in which moral rights cannot be assigned, Executive hereby waives any such moral rights and any similar or analogous
rights under the applicable laws of any country of the world that Executive may have in connection with the Creations, and to the
extent such waiver is unenforceable, hereby covenants and agrees not to bring any claim, suit or other legal proceeding against
the Company or any of its Affiliated Entities claiming that Executive’s moral rights to the Creations have been violated.

 

(c)          Executive
will not assert any rights to any invention, discovery, idea or improvement relating to the business of the Company or any of its
Affiliated Entities or to his duties hereunder as having been made or acquired by Executive prior to his work for the Company except
for the matters, if any, described in Exhibit B to this Agreement.

 

(d)          During
the term of Executive’s employment hereunder, if Executive incorporates into a product or process of the Company or any of
its Affiliated Entities anything listed or described in Exhibit B, the Company is hereby granted and shall have a
non-exclusive, royalty-free, irrevocable, perpetual, worldwide license (with the right to grant and authorize sublicenses) to make,
have made, modify, use, sell, offer to sell, import, reproduce, distribute, publish, prepare derivative works of, display, perform
publicly and by means of digital audio transmission and otherwise exploit as part of or in connection with any product, process
or machine.

 

(e)          Executive
agrees to cooperate fully with the Company, both during and after his employment with the Company, with respect to the procurement,
maintenance and enforcement of copyrights, patents, trademarks and other intellectual property rights (both in the United States
and foreign countries) relating to such Creations. Executive shall sign all papers, including, without limitation, copyright applications,
patent applications, declarations, oaths, formal assignments, assignments of priority rights and powers of attorney, which the
Company may deem necessary or desirable in order to protect its rights and interests in any Creations. Executive further agrees
that if the Company is unable, after reasonable effort, to secure Executive’s signature on any such papers, any officer of
the Company shall be entitled to execute such papers as his agent and attorney-in-fact and Executive hereby irrevocably designates
and appoints each officer of the Company as his agent and attorney-in-fact to execute any such papers on his behalf and to take
any and all actions as the Company may deem necessary or desirable in order to protect its rights and interests in any Creations,
under the conditions described in this paragraph.

 

    	7

    	 

    

 

9.           Termination
of Employment; Severance.

 

(a)          Termination
with Cause. The Company shall at all times have the right, upon written notice to Executive, to terminate Executive’s
employment hereunder with Cause. For purposes of this Agreement, the following shall constitute “Cause”:

 

(i)          the
failure of Executive to act in accordance with directives of the Board after written notice and a twenty (20) day opportunity to
cure such failure;

 

(ii)         the
gross negligence or willful misconduct of Executive in the performance of his duties under this Agreement;

 

(iii)        use
of alcohol or illegal drugs interfering with the performance of Executive’s duties hereunder;

 

(iv)        any
act of fraud, embezzlement or theft, or any other material violation of law in connection with Executive’s duties or in the
course of his employment with the Company; or

 

(v)         the
material breach by Executive of any term of this Agreement or written policy of the Company or its affiliates, provided that if
such breach reasonably may be cured, the Company has given Executive prior written notice of such breach and at least twenty (20)
days after such notice is given to cure such breach in the reasonable judgment of the Board.

 

Upon any termination
pursuant to this Section 9(a), the Company shall within a reasonable time following the Date of Termination, not to exceed thirty
(30) days, pay to Executive (i) the pro rata portion of any unpaid Annual Salary earned through the Date of Termination, (ii) reimbursements
for any reasonable business expenses properly incurred by Executive upon his compliance with the requirements of Section 4(e) above,
and (iii) payment for benefits under any benefit plan, program or policy that Executive participated in during employment, paid
pursuant to the terms of such plan, program and policy up to the Date of Termination (collectively, the “Accrued Obligations”).
Thereafter, the Company and its affiliates shall have no further liability to Executive. Without limiting the foregoing, in the
event of a termination with Cause, Executive shall have no right to receive any Annual Bonus or Transaction Incentive Fee. Executive’s
rights relating to his Stock Options shall be governed by the terms of the Option Plan and Option Agreement.

 

(b)          Termination
without Cause. At any time the Company shall have the right to terminate Executive’s employment hereunder without Cause
by providing Executive with thirty (30) days’ prior written notice of the Company’s election to terminate without Cause.
In the event of any termination pursuant to this Section 9(b), or in the event of the Company’s election to terminate Executive’s
employment by delivering a Notice of Non-Renewal as described in Section 2(a) above, at such time as Cause does not exist, the
Company shall:

 

    	8

    	 

    

 

(i)          pay
to Executive the Accrued Obligations;

 

(ii)         pay
to Executive his Annual Salary described in Section 4(a) for a period of twelve (12) months following the Date of Termination (the
“Salary Continuation Period”);

 

(iii)        pay
to Executive any Annual Bonus awarded by the Compensation Committee for the fiscal year preceding the year in which the Date of
Termination occurs but remains unpaid, provided that such payment will be made at substantially the same time as other participants
under the applicable bonus plan are paid;

 

(iv)        pay
to Executive the pro rata portion of the Annual Bonus for the fiscal year in which the Date of Termination occurs that is earned
for any fiscal quarter completed prior to the Date of Termination, provided that such payment will be made at substantially the
same time as other participants under the applicable bonus plan are paid;

 

(v)         pay
to Executive any portion of the Transaction Incentive Fee to which he is entitled pursuant to Section 4(d), provided that such
payment will be made at such time as provided in Section 4(d);

 

(vi)        to
the extent permitted by each employee benefit plan, continue Executive’s participation in any employee benefit plan described
in Section 5(a) during the Salary Continuation Period; provided, however, that to the extent an employee benefit plan precludes
Executive’s continued participation in that plan following his termination without Cause, the Company will not grant Executive
a payout in lieu of that benefit; and

 

(vii)       vest
on the Date of Termination, all unvested options that otherwise would be eligible for vesting less than six (6) months after the
Date of Termination, provided that these options will expire in accordance with the terms of the Option Plan and Option Agreement;

 

provided that, notwithstanding any provision
in this Agreement to the contrary, as an express contractual condition to the Company’s obligation to provide any of the
foregoing payments or benefits under this Section 9(b) other than payment of the Accrued Obligations, Executive shall execute and
deliver a general release, in the form attached hereto as Exhibit A, of any and all common law, statutory and/or other rights,
claims or causes of action of any kind, including without limitation any rights, claims or causes of action based upon this Agreement
or otherwise arising out of or related to the Executive’s employment by, and/or the termination of the Executive’s
employment with, the Company or any of its affiliates (except for the Company’s obligations under this Agreement). Further,
Executive shall forfeit all rights to such payments and benefits unless such release is signed and delivered (and no longer subject
to any applicable revocation or rescission rights) within thirty (30) days following the date of the Date of Termination. If the
foregoing release is executed and delivered (and no longer subject to revocation or rescission), then the payments under Section
9(b)(i) and (ii) (other than reimbursements made in accordance with Section 4(e)) shall begin within sixty (60) days following
the Date of Termination; provided, however, that if the sixty (60) day period begins in one calendar year and ends in the second
calendar year, all payments will be made in the second calendar year. The first such cash payment shall include payment of all
amounts that otherwise would have been due prior thereto under the terms of this Agreement had such payments commenced immediately
following the Date of Termination, and any payments made thereafter shall continue as provided herein. The delayed benefits shall
in any event expire at the time such benefits would have expired had such benefits commenced immediately following the Date of
Termination.

 

    	9

    	 

    

 

The Company will not
pay to Executive any sick days, personal days or vacation time which Executive has accrued prior to the Date of Termination but
has not used prior to the Date of Termination. Other than the obligation to make the payments described in this Section 9(b), the
Company and its affiliates shall have no further liability or obligation to Executive hereunder following a termination without
Cause, or upon the Company’s delivery of a Notice of Non-Renewal.

 

(c)          Voluntary
Termination. At any time, Executive shall have the right to terminate his employment hereunder by providing thirty (30) days
prior written notice to the Company, and the Company shall have the right, by written notice to Executive, to terminate Executive’s
employment after Executive delivers any such notice to the Company. In the event of any such termination pursuant to this Section
9(c), or in the event of the Executive’s election to terminate his employment by delivering a Notice of Non-Renewal (a “Voluntary
Termination”) the Company shall pay to Executive the Accrued Obligations. The Company will not pay to Executive any sick
days, personal days or vacation time which Executive has accrued prior to the Date of Termination but has not used prior to the
Date of Termination. Upon making the payments described in this Section 9(c), the Company and its affiliates shall have no further
liability or obligation to Executive hereunder following a Voluntary Termination. The occurrence of Executive’s death or
Disability (as defined below) shall be deemed to result in an immediate “Voluntary Termination” (it being acknowledged
and agreed that, in addition to the payments described in this Section 9(c), Executive shall, in connection with his death or Disability,
be entitled to such other payments and/or benefits as may then be provided in accordance with the Employee Handbook or with respect
to any employee benefit plan and the terms of such plans). Executive’s rights relating to his Stock Options shall be governed
by the terms of the Option Plan and Option Agreement. Without limiting the foregoing, in the event of a Voluntary Termination,
Executive shall have no right to receive any Annual Bonus or Transaction Incentive Fee.

 

(d)          Disability.
For purposes of this Agreement, “Disability” shall mean the Executive becomes physically or mentally unable to perform
his duties for the Company hereunder and such incapacity continues for a total of ninety (90) consecutive days or any one hundred
eighty (180) days in a period of three hundred sixty-five (365) consecutive days.

 

(e)          Resignation.
Upon any termination of employment pursuant to this Agreement, Executive shall be deemed to have resigned as an officer and/or
director of the Company or any affiliate, if he was then serving as such, and, if requested by the Board, Executive hereby agrees
to immediately execute an appropriate resignation letter.

 

    	10

    	 

    

 

10.         Survival.
Sections 6, 7, 8, 9 and 19 of this Agreement shall survive the termination of Executive’s employment with the Company indefinitely
or for the applicable periods of time (if any) set forth therein.

 

11.         Effectiveness
of Agreement. This Agreement shall be deemed effective as of the date set forth in the first paragraph of this Agreement when
it has been signed by both the Company and Executive.

 

12.         Entire
Agreement; Amendment. This Agreement constitutes the entire agreement of the parties hereto relating to the subject matter
hereof and any prior agreement between the Company and Executive with respect to such subject matter is hereby superseded and terminated
effective immediately and shall be without further force or effect. No amendment or modification to this Agreement shall be valid
or binding unless made in writing and signed by the party against whom enforcement thereof is sought.

 

13.         Notices.
Any notice required, permitted or desired to be given pursuant to any of the provisions of this Agreement shall be deemed given
(i) when delivered in person, (ii) one (1) business day after being sent by nationally reputable overnight delivery service or
(iii) three (3) business days after being sent by certified mail, return receipt requested, postage and fees prepaid, if to the
Company, at its address set forth above to the attention of the Chairman of the Board and, if to the Executive, at his last known
address contained in the Company’s records. Either of the parties hereto may at any time and from time to time change the
address to which notice shall be sent hereunder by notice to the other party given pursuant to this Section 13.

 

14.         No
Assignment; Binding Effect. Neither this Agreement, nor the right to receive any payments hereunder, may be assigned by either
party without the other party’s prior written consent; except that the rights and obligations of the Company hereunder may,
in whole or in part, be sold, transferred or assigned by the Company to any affiliated or successor entity or purchaser of all
or substantially all of Parent’s assets, provided that any such transfer does not effect a material change in the duties
of Executive hereunder or the type of business with respect to which such duties are to be performed. Subject to these limitations,
this Agreement shall be binding upon and inure to the benefit of Executive and his heirs, executors and administrators and the
Company and its successors and assigns.

 

15.         Waivers.
No course of dealing nor any delay on the part of either party in exercising any rights hereunder shall operate as a waiver of
any such rights. No waiver of any default or breach of this Agreement shall be deemed a continuing waiver or a waiver of any other
breach or default.

 

16.         Governing
Law. This Agreement shall be governed by and interpreted exclusively in accordance with Section 19 and the laws of the State
of Ohio, without regard to conflict of laws provisions thereof to the extent that the general application of the laws of another
jurisdiction would be required thereby. All disputes arising from or relating to this Agreement shall be heard exclusively in a
court of competent jurisdiction within the State of Ohio, Hamilton County and the parties hereto consent to personal jurisdiction
in such courts for such purposes, and further waive all objections on grounds of improper venue or inconvenient forum.

 

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17.         Invalidity.
If any clause, paragraph, section or part of this Agreement shall be held or declared to be void, invalid or illegal, for any reason,
by any court of competent jurisdiction, such provision shall be ineffective but shall not in any way invalidate or affect any other
clause, paragraph, section or part of this Agreement.

 

18.         Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, and all of which together
shall constitute one and the same instrument, and may be executed by delivery of a facsimile or electronic mail copy of a signed
signature page.

 

19.         Code
Section 409A Compliance.

 

(a)          The
intent of the parties is that payments and benefits under this Agreement comply with, or be exempt from, Code Section 409A and
the regulations and guidance promulgated thereunder (collectively “Code Section 409A”) and, accordingly, to
the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith.

 

(b)          A
termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the
payment of any amounts or benefits upon or following a termination of employment that are considered “nonqualified deferred
compensation” under Code Section 409A unless such termination is also a “separation from service” within the
meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,”
“termination of employment” or like terms shall mean “separation from service.” If the Executive is deemed
on the date of termination to be a “specified employee” within the meaning of that term under Code Section 409A(a)(2)(B),
then with regard to any payment that is considered non-qualified deferred compensation under Code Section 409A payable on account
of a “separation from service,” such payment or benefit shall be made or provided at the date which is the earlier
of (i) the expiration of the six (6) month period measured from the date of such “separation from service” of the Executive,
and (ii) thirty (30) days from the date of the Executive’s death (the “Delay Period”). Upon the expiration
of the Delay Period, all payments and benefits delayed pursuant to this Section 19 (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 the Executive in a lump sum with
interest at the prime rate as published in The Wall Street Journal on the first business day of the Delay Period, 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.

 

(c)          With
regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by
Code Section 409A, (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, provided that the
foregoing clause (ii) shall not be violated without regard to expenses reimbursed under any arrangement covered by Code Section
105(b) solely because such expenses are subject to a limit related to the period the arrangement is in effect and (iii) such payments
shall be made on or before the last day of Executive’s taxable year following the taxable year in which the expense occurred.

 

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(d)          For
purposes of Code Section 409A, the Executive’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. Whenever a payment under this Agreement specifies
a payment period with reference to a number of days (e.g., “within sixty (60) days following the date of termination”),
the actual date of payment within the specified period shall be within the sole discretion of the Company.

 

    	13

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed as of the day and year first above written.

 

	 	ENVIRONMENTAL QUALITY MANAGEMENT, Inc.
	 	 
	 	By:	
        /s/ Walter H. Barandiaran

	 	Name:	
        Walter H. Barandiaran

	 	Title:	
        Chairman of the Board

 

	 	 
	 	
        /s/ James E. Wendle

	 	Name:  James E. Wendle

 

    	14

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