Document:

Exhibit
10.5

 

TERM
EMPLOYMENT AGREEMENT

 

This
TERM EMPLOYMENT AGREEMENT (this “Agreement”) is entered into by and between GENERATION HEMP, INC.,
a Colorado corporation (the “Company”), and WATT STEPHENS, a resident of the State of Texas (the “Employee”),
as of the 11th day of January, 2021 (the “Effective Date”). For purposes of this Agreement, the
“Company” shall include any Affiliate (hereinafter defined) of the Company that employs the Employee.

 

WHEREAS,
the Company desires to employ the Employee, and the Employee desires to be employed by the Company; and

 

WHEREAS,
this Agreement is entered into pursuant to that certain Asset Purchase Agreement, dated as of the Effective Date, by and among
the Company, GENH Halcyon Acquisition, LLC, a Texas limited liability company and a wholly-owned subsidiary of the Company (“GENH”),
OZ Capital, LLC, a Texas limited liability company, OZC Agriculture KY, LP, a Texas limited partnership (“Parent”),
and Halcyon Thruput, LLC, a Texas limited liability company and a wholly-owned subsidiary of Parent (the “Purchase Agreement”).

 

NOW,
THEREFORE, in consideration of the premises and of the covenants and agreements herein set forth, the parties hereto hereby
agree as follows:

 

1. 
Employment. During the Term (as defined below), the Company shall employ the Employee, and the Employee accepts employment
by the Company, upon the terms and conditions set forth herein. The Employee acknowledges that such employment is contingent upon
the Employee’s (a) providing, within three days of the Effective Date, proof of the Employee’s U.S. Citizenship or
authorization to work in the United States; (b) successful completion of background and credit checks and other related pre-employment
requirements in accordance with the Company policy and as permitted by law; and (c) execution and delivery to the Company of such
the Company policy acknowledgments and new employee documentation as the Company may reasonably present to the Employee that is
not inconsistent with the terms of this Agreement.

 

2. 
Term.

 

(a) 
The Company shall employ the Employee on the terms and conditions set forth herein during the period commencing on the Effective
Date and continuing for two years therefrom (the “Initial Term”) unless earlier terminated in accordance with
the terms hereof. After the expiration of the Initial Term, this Agreement shall be renewed annually for each ensuing one year
period (an “Extension”), unless the Company or the Employee provides the other party at least 30 days’
notice of its intent not to renew prior to the end of the Initial Term or applicable Extension. The Initial Term and any Extensions
thereof shall be deemed the “Term” of this Agreement.

 

(b) 
The Employee acknowledges and agrees that, except as expressly provided in this Section 2(b), the terms of this Agreement
shall not govern any employment relationship between the Employee and the Company after the expiration of the Term, which such
relationship, if any, shall be (i) “at will” (meaning that such relationship may be terminated by either the Employee
or the Company at any time and for any reason or no reason, upon 30 days’ prior written notice); and (ii) on such compensation
and other terms as the Company may offer and as the Employee may accept.

 

    TERM EMPLOYMENT AGREEMENT – Page  1

     

    

 

3. 
Duties and Responsibilities.

 

(a) 
During the Term, the Employee shall serve as Secretary of GENH, the Company’s wholly-owned subsidiary. During the Term,
the Employee shall (i) be subject to all of the Company’s lawful policies, procedures, rules and regulations applicable
to its employees; (ii) report to and be subject to the direction and control of the Chairman and CEO of the Company; and (iii)
perform such lawful duties for the Company commensurate with the Employee’s position and status as may be assigned to the
Employee by the Chairman and CEO of the Company that are consistent with the Employee’s position at the Company. The Employee’s
principal office and principal place of work shall be in Fort Worth, Texas, although the Employee’s primary duties and responsibilities
will be operating and managing the Company’s hemp drying, stripping and grading facility in Hopkinsville, Kentucky.

 

(b) 
During the Term, subject to Section 3(c) and Section 4(f) below, the Employee agrees (i) to devote all of the Employee’s
business time, energies, skills and attention during business hours and such other time as the Employee is engaged in the Company
activities to business and affairs of the Company and its Affiliates (as defined in the Purchase Agreement); (ii) to discharge
the responsibilities assigned to the Employee hereunder; and (iii) to use the Employee’s best efforts to perform faithfully,
effectively, and efficiently such responsibilities.

 

(c) 
During the Term, it shall not be a violation of this Agreement for the Employee to engage in other business ventures as passive
investors; provided, that such other business ventures do not interfere with the Employee’s obligations under this Agreement
and are not competitive with the Company’s business, and/or serve on charitable or civic boards or committees or manage
personal investments.

 

4. 
Compensation and Benefits.

 

(a) 
General. For all services rendered by the Employee to the Company, the Company shall pay or cause to be paid to the Employee,
and the Employee shall accept, the payments and benefits set forth herein. The Company shall be entitled to deduct and/or withhold,
as the case may be, from the amounts payable under this Agreement, all amounts (i) required to be deducted or withheld under any
federal, state or local law or regulation or in connection with any benefit plan in which the Employee participates and which
mandates a contribution, assessment, or co-payment by the participants therein; and (ii) as prescribed by the Company’s
policies applicable to similarly situated employees of the Company.

 

(b) 
Base Salary. During the Term, the Company shall pay the Employee an annualized base salary of no less than One Hundred
Seventy-Five Thousand and 00/100 Dollars ($175,000.00) (the “Base Salary”), subject to increases (if any) which
the Company may elect, in its sole discretion. The Base Salary shall be payable in regular bi-weekly installments in accordance
with the Company’s regular payroll practices, as such practices may be modified by the Company from time to time.

 

    TERM EMPLOYMENT AGREEMENT – Page  2

     

    

 

(c) 
Stock Incentive Plan. During the Term, the Employee shall be eligible to participate
in the Generation Hemp, Inc. 2020 Omnibus Incentive Plan or any successor plan, subject to the terms of the Generation Hemp, Inc.
2020 Omnibus Incentive Plan or successor plan, as determined by the Board of Directors of the Company (the “Board”),
in its sole discretion.

 

(d) 
Performance-Based Bonus. For each calendar year of the Term, the Employee shall be
eligible to receive an annual discretionary bonus (the “Annual Bonus”) in an amount negotiated by the Employee
and the Company, based upon the achievement of annual performance goals established by the Board. Any Annual Bonus shall be determined
and payable by April 1st of the following year.

 

(e) 
Benefits. During the Term, the Employee is eligible to participate during the Term in the Company’s employee benefits
packages that are offered by the Company to its similarly situated officers of the Company, which employee benefits are subject
to change or modification by the Company during the Term within the sole and absolute discretion of the Company.

 

(f) 
Vacation. During the Term, the Employee shall be entitled to paid vacation, plus any applicable paid holidays, personal
leave and sick leave per calendar year in accordance with the Company’s policies, plan and regular practices in effect from
time to time, but no less than three weeks annually, in the aggregate, which vacation rights the Employee may begin to utilize
as of the Effective Date.

 

(g) 
Business Expenses. The Company shall pay or reimburse the Employee for all reasonable, documented and necessary business
expenses actually incurred by the Employee in connection with the performance of the Employee’s duties hereunder in accordance
with the policies, procedures and limits of the Company as in effect from time to time, including, without limitation, the requirement
to submit reasonable written verification or receipts documenting such expenses.

(h) 
Signing Bonus. The Company shall deliver to Employee [250,000] shares of Common Stock, no par value per share of
GENH (“GENH Common Stock”). As soon as reasonably practicable, following the Closing, but not later than six
months after the Closing Date, the Company shall file a registration statement with the Securities and Exchange Commission providing
for registration of all of the GENH Common Stock issued to the Employee pursuant to this Agreement then outstanding (the “Registration
Statement”). Notwithstanding any registration of the GENH Common Stock, the Employee shall not have the right to directly
or indirectly transfer the GENH Common Stock until after the expiration of the Restricted Period (as defined in the Purchase Agreement);
provided, however, that the Employee shall be permitted to Transfer (i) 50% of the GENH Common Stock any time within the first
six months of the Restricted Period if the Registration Statement has become effective and the Company has received at least $10
million from the sale of GENH Common Stock during such six-month period; and (ii) an additional 25% of the GENH Common Stock if
the conditions in (i) have been satisfied and the 10-day volume-weighted average price (VWAP) of the GENH Common Stock has been
$1.00 or higher.

 

    TERM EMPLOYMENT AGREEMENT – Page  3

     

    

 

5. 
Termination.

 

(a) 
Death or Disability. The Employee’s employment shall terminate automatically upon the Employee’s death. If
a Disability (as defined below) of the Employee has occurred during the Term, the Company may give the Employee written notice
of its intention to terminate the Employee’s employment. In such event, the Employee’s employment with the Company
shall terminate effective on the 30th day after receipt of such notice by the Employee (the “Disability Effective
Date”), unless the Employee shall have returned to full-time performance of the Employee’s duties prior to the
Disability Effective Date. “Disability” shall mean a physical or mental infirmity that shall have impaired
the Employee’s ability to perform the essential functions of the Employee’s job for a period of at least 90 days in
any consecutive 12-month period. A determination of the existence of a “Disability” shall be made by the Company within
its reasonable discretion; provided, however, in the event the Employee disagrees with the Company’s determination within
seven days after the Employee’s receipt of the Company’s determination, the determination of Disability shall instead
be made by the agreement of two physicians qualified to make such determination, one chosen by the Company and one chosen by the
Employee (or the Employee’s agent, as applicable), and, if such two physicians cannot agree whether the Employee is suffering
from a Disability, such two physicians will select a third physician and the third physician will make a determination of Disability,
which determination will be binding on the parties.

 

(b) 
Cause. the Company may terminate the Employee’s employment at any time for Cause (as defined herein). “Cause”
shall mean (i) the Employee’s breach of this Agreement, or any lawful policy of the Company provided in writing to the Employee
that is not inconsistent with this Agreement; (ii) the Employee’s commission of an act of fraud upon, or willful misconduct
toward, the Company or any of the Company’s Affiliates; (iii) the Employee’s being convicted of or pleading nolo
contendere to any misdemeanor involving moral turpitude, any felony, or any criminal act against the Company, any of the Company’s
Affiliates, or any client of the Company or any of the Company’s Affiliates; (iv) the Employee’s willful commission
of any act or omission that is reasonably determined by the Company’s Chairman and CEO, to have caused a material adverse
effect on the property, operations, business or reputation of the Company or any of the Company’s Affiliates; or (v) the
Employee’s willful and continuing failure to carry out or comply with any lawful directive of the officers of the Company
to whom the Employee reports; provided, however, that in the cases of clauses (i), (iv) and (v) above, only if such failure is
not fully remedied by the Employee within 30 days of after written notice by the Company to the Employee of such failure in the
Notice of Termination (as defined below) and Employee shall have the right to contest the allegations during such 30-day cure
period.

 

(c) 
Good Reason. The Employee may terminate his employment at any time for Good Reason (as defined herein). “Good
Reason” shall mean (i) the Employee’s duties or position with the Company are materially diminished or altered
in a manner materially inconsistent with his initial duties described in Section 3(a) above; (ii) the Employee’s
title is altered in a material and adverse manner; (iii) the Employee is not timely paid any amounts due and owing under this
Agreement; or (iv) the Company relocates the Employee’s office location more than 50 miles from Fort Worth, Texas without
the Employee’s written consent; (v) the Company fails to perform in any material respects its duties and obligations as
a public company under the Securities Exchange Act of 1934 or the Securities Act of 1933, including the regulations promulgated
thereunder, on or after July 1, 2021, provided such failure was within the Company’s reasonable control and not caused by
acts or omissions of the Employee and such failure by the Company is not cured within 60 days after written notice from the Employee;
or (vi) the Company defaults in any payment under both the Subordinated Note or the Mortgage Note (as such terms are defined in
the Purchase Agreement) and such default is not cured within 60 days after written notice from the Employee; provided, however,
that in the cases of clauses (i) through (iv) above, only if such Good Reason is not fully remedied by the Company within 30 days
of after written notice by the Employee to the Company of such failure in the Notice of Termination.

 

    TERM EMPLOYMENT AGREEMENT – Page  4

     

    

 

(d) 
Notice of Termination. Any termination by the Company for Cause or by the Employee for Good Reason shall be communicated
by Notice of Termination (as defined below) given by the applicable party to the other party in accordance with the notice provisions
of this Agreement. For purposes of this Agreement, a “Notice of Termination” means a written notice which (x)
indicates the specific termination provision in this Agreement relied upon; (y) to the extent applicable, sets forth in reasonable
detail the facts and circumstances, if any, claimed to provide a basis for termination under the provision so indicated; and (z)
if the Date of Termination (as defined below) is other than the date of receipt of such notice, specifies the termination date.
The failure by the notifying party to set forth in the Notice of Termination any fact or circumstance which contributes to a showing
of Cause or Good Reason, as applicable, shall not waive any right of such notifying party hereunder or preclude such notifying
party from asserting such fact or circumstance in enforcing such notifying party’s rights hereunder.

 

(e) 
Date of Termination. “Date of Termination” means (i) if the Employee’s employment is terminated
by the Company for Cause or by the Employee for Good Reason, the date of the Notice of Termination from the notifying party or
any later date specified therein, as the case may be; and (ii) if the Employee’s employment is terminated by reason of death
or Disability, the date of the Employee’s death or the Disability Effective Date, as the case may be.

 

6. 
Obligations of the Company Upon Termination.

 

(a) 
If the Company terminates the Employee’s employment for Cause or Disability of the Employee, or the Employee’s employment
terminates due to the Employee’s death, then the Company shall pay to the Employee (i) the pro-rata portion of the
Employee’s Base Salary through the Date of Termination to the extent not theretofore paid in accordance with the Company’s
then current payroll practices, but no further Base Salary; (ii) any earned, but unpaid, Annual Bonus, except if the Employee
was terminated for Cause; (iii) all unreimbursed business expenses to the extent reimbursable in accordance with the Company’s
then current policy regarding the same; and (iv) any amount payable as a result of the Employee’s participation in, or benefits
under, any benefit plan of the Company, which amount shall be payable in accordance with the terms and conditions of such benefit
plans.

 

(b) 
If the Company terminates the Employee’s employment without Cause or the Employee terminates his employment for Good Reason
or the Employee’s employment terminates following the expiration of the Term as a result of a written notice delivered by
the Company pursuant to Section 2(a), then the Company shall pay to the Employee (i) the Employee’s Base Salary through
the greater of three months from the date of such termination and the remainder of the Term as severance, but not more than 12
months of severance; (ii) any earned, but unpaid, Annual Bonus; (iii) all unreimbursed business expenses to the extent reimbursable
in accordance with the Company’s then current policy regarding the same; and (iv) any amount payable as a result of the
Employee’s participation in, or benefits under, any benefit plan of the Company, which amount shall be payable in accordance
with the terms and conditions of such benefit plans. The Employee has no obligation to seek or obtain other engagements or employment
to mitigate any damages to which the Employee may be entitled by reason of any termination of this Agreement pursuant to this
Section 6(b).

 

    TERM EMPLOYMENT AGREEMENT – Page  5

     

    

 

(c) 
If (i) the Company terminates the Employee’s employment for Cause or Disability of the Employee; or (ii) the Employee’s
employment terminates due to the Employee’s death, the Company shall have no further payment obligations to the Employee
other than those set forth in Section 6(a) above.

 

(d) 
If the Employee terminates his employment without Good Reason during the Initial Term, other than due to the Employee’s
death or Disability, then the Employee shall pay the Company, as liquidated damages, and not as a penalty, the sum set forth below
(based upon when the Employee terminates his employment) on the Employee’s last day of employment. In the event of the
Employee’s resignation, the Employee agrees to provide the Company with at least two weeks’ advance written notice;
provided, that the Company reserves its right to waive or shorten such notice and shall pay the Employee his Base Salary though
the last day worked. The parties agree that the Employee terminating his employment prior to the expiration of the Initial
Term would cause severe and irreparable damage to the Company and also that it is impossible to estimate or predict the damages
to be incurred by the Company due to such breach of this Agreement by the Employee and that the below liquidated damages is a
reasonable sum to compensate the Company for such breach.

 

	Year
    of Employment	 	Liquidated
    Damages*	 
	 	 	 	 
	Prior
    to 1st anniversary of the Effective Date	 	$	600,000	 
	 	 	 	 	 
	
	
	After
    1st anniversary of the Effective Date and prior to the 2nd anniversary of the Effective Date	 	$	375,000	 
	

 

(e) 
Following the termination of the Term, the Employee agrees that, if requested by the Company, prior to the payment of all amounts
due the Employee by the Company pursuant to this Agreement, the Employee or his estate will execute and deliver to the Company
a general and full release, in substantially the form attached hereto as Exhibit “A”, of the Company of all
employment-related claims in form and substance reasonably satisfactory to the Company, subject to the payment of such payments.

 

 

		*	The Company agrees to accept payment of up to 50% (the
“Stock Percentage”) of such liquidated damages in the form of GENH Common Stock (as defined in the Purchase
Agreement) owned by the Employee in lieu of a cash payment, which GENH Common Stock shall be valued at the greater of (i) $0.40
per share; or (ii) the 10-day volume-weighted average price (VWAP) prior to the Employee’s last day of employment; provided
however, that the Stock Percentage shall be increased to up to 100% in the event that the Employee terminates his employment with
the Company in good faith due to severe or extraordinary physical or mental health issues involving the Employee or his immediate
family.

 

    TERM EMPLOYMENT AGREEMENT – Page  6

     

    

 

(f) 
Subject to Section 6(b)(i) above, the Employee hereby agrees that no severance compensation of any kind, nature or amount
shall be payable to the Employee and the Employee hereby irrevocably waives any claim for severance compensation.

 

(g) 
All of the Employee’s rights to benefits under this Agreement (if any) shall cease upon the termination of the Term; provided,
however, all amounts accrued and owed to the Employee by the Company under this Agreement, but unpaid, shall survive the termination
of the Term.

 

7. 
Confidentiality; Employee Covenants.

 

(a) 
Inconsistencies. The parties hereto agree that any inconsistencies appearing among the Purchase Agreement and this Agreement
shall be resolved on the basis that a provision in the Purchase Agreement shall prevail over any inconsistent provision in this
Agreement.

 

(b) 
Confidentiality. The Employee acknowledges and agrees that (i) the goodwill of the Company depends upon, among other things,
keeping the Confidential Information (as defined below) confidential and that unauthorized disclosure of the Confidential Information
would irreparably damage the Company; and (ii) disclosure of any Confidential Information to competitors of the Company or to
the general public would be highly detrimental to and cause irreparable damage to the Company. For purposes of this Agreement,
the term “Confidential Information” shall mean the Company’s confidential and proprietary business information,
which may include, without limitation, information relating to persons, firms, and corporations that are or become customers or
accounts of the Company during the Employee’s employment with the Company (“Customers”) and persons,
firms, and corporations that are actively solicited by the Company during the Employee’s employment with the Company to
become customers (“Prospects”), including the names of Customers and Prospects, lists of Customers and Prospects,
personal information as to Customers and Prospects, familiarity with Customers’ and Prospects’ specific tax needs
and financial considerations, trade secrets and other of the Company’s business information that is not generally or easily
obtainable, including specific engagement procedures, techniques, tax saving and mitigation strategies, internal procedures, programs,
regular business reports, business plans, projections, budgets, financial information, specific information regarding proposals
to Prospects and Customers, and all records, files, manuals, blanks, forms, materials, supplies, computer programs, and other
materials furnished to the Employee by the Company. All Confidential Information shall be and remain the property of the Company,
and the Employee shall safely keep and preserve such property. In consideration of the training, support, and access to Confidential
Information provided by the Company to the Employee, and the compensation and other consideration paid to the Employee under this
Agreement and the Purchase Agreement, the Employee agrees that the Employee will not, without the written consent of the Company,
disclose or make use of such Confidential Information except as may be required in the course of rendering services under this
Agreement. Further, the Employee agrees to immediately deliver to the Company all Confidential Information and all copies thereof
upon termination of employment. Notwithstanding the foregoing, Confidential Information shall not include information which (i)
is or becomes generally available to the public other than as a result of any disclosure by the Employee in violation of this
Agreement; (ii) is or becomes available to the Employee from a source other than the Company or its subsidiaries; provided, that
such source is not known by the Employee to be bound by a confidentiality agreement with or other contractual, legal or fiduciary
obligation of confidentiality to the Company or such subsidiaries; or (iii) is independently developed by the Employee outside
business hours (or other time while not working on business of the Company or its Affiliates) without regard or reference to any
Confidential Information.

 

    TERM EMPLOYMENT AGREEMENT – Page  7

     

    

 

(c) 
Duty of Loyalty. During the Employee’s employment with the Company, the Employee will avoid conflicts of interest,
remain loyal to the Company and not engage in any conduct harmful to the business interests of the Company, unless prior written
approval is obtained from the Company.

 

(d) 
Discoveries and Inventions. The Employee agrees that all discoveries, inventions, ideas, contributions, and improvements
(whether or not patentable or copyrightable) (the “Work”) that relate in any way to the business of the Company
or its Affiliates, or that result from duties assigned by the Company to the Employee and that, while the Employee is employed
by the Company, are developed, conceived or applied in practice by the Employee, either alone or together with others at any time
either during or after normal working hours, whether on or off the Employee’s job are and will continue to be the exclusive
property of the Company. The Employee agrees that any Work prepared for the Company or its Affiliates pursuant to this Agreement
that is eligible for copyright, patent or other protection in the United States or elsewhere shall be a work made for hire. If
any such Work is deemed for any reason not to be a work made for hire, the Employee further agrees, at any time during or after
the Employee’s employment with the Company, to (i) promptly and fully disclose and assign all of the Employee’s right,
title and interest in the Work to the Company; (ii) provide all assistance reasonably requested by the Company in the establishment,
preservation and enforcement of the Company’s rights in such Work; and (ii) sign all papers and undertake such other acts
and things as the Company may reasonably require of the Employee to protect its rights to such Work, including making application
for, obtaining and enforcing patents, copyrights and the like under the laws of the United States or foreign countries, all without
any further consideration to the Employee.

 

(e) 
Non-Competition. As an inducement to the Company to execute and deliver this Agreement and the
Purchase Agreement and to consummate the transactions contemplated hereby, unless the Employee resigns
for Good Reason pursuant to Section 5(c)(vi) above, during the Term and for a period of the later to occur of three years
after the Effective Date and one year after the expiration of the Term (the “Restricted Period”), the Employee
will not, anywhere within the United States directly or indirectly engage in, own any economic interest in, continue in or carry
on any activities that compete in any aspect with the Business (as defined in the Purchase Agreement) or any other business operated
by the Company or its Affiliates as of the Closing Date and during the Restricted Period; provided, however, that the Employee
may at any time own up to 1% of any publicly held company that competes with the Business.

 

    TERM EMPLOYMENT AGREEMENT – Page  8

     

    

 

(f) 
Non-Solicitation. Unless the Employee resigns for Good Reason pursuant to Section 5(c)(vi) above, during the Restricted
Period, the Employee will not (i) directly or indirectly solicit, divert or take away, in whole or in part, any customers or prospects
of the Business to provide or perform services offered by the Business; (ii) hire or solicit or entice any employee or independent
contractor of the Business to leave his or her employment or his, her or its retention by the Business and/or accept employment
or retention with any other person or entity whose business is competitive with the Business; or (iii) divert or attempt to divert
business of any kind from the Business, including, without limitation, interference with any business relationship with suppliers,
customers, licensees, licensors or contractors. The foregoing solicitation restriction will not apply to broad-based, untargeted
solicitations to prospective employees or candidates so long as no employees of the Business are hired.

 

(g) 
Non-Disparagement. the Company and the Employee also each agrees to not disparage each other at any point during or after
the Term of this Agreement; provided, however, no action taken in good faith related to the preservation or enforcement of such
party’s rights under the terms of the Purchase Agreement or this Agreement shall be deemed a violation of this Section
7(g), nor shall truthful testimony compelled by legal process related to any litigation or arbitration, or with respect to
any governmental investigation.

 

(h) 
Tolling. The Employee agrees that during any period in which the Employee is in breach of the obligations contained in
this Section 7, the time period, if any, of such obligations shall be extended for an amount of time equal to the period
during which the Employee is in breach thereof. The Employee further acknowledges and agrees that if the Employee violates any
covenant contained in this Section 7 and the Company brings legal action for injunctive or other relief, the Company shall
not, as a result of the time involved in obtaining the relief through litigation, be deprived of the benefit of the full period
of any such covenant.

 

8. 
Remedies. It is specifically understood and agreed that any breach of the provisions of Section 7 of this Agreement
by the Employee will result in irreparable injury to the Company and that remedies at law alone would be an inadequate remedy
for such breach. In addition to any other remedy it may have, the Company shall be entitled (a) to seek specific performance of
this Agreement by the Employee and both temporary and permanent injunctive relief without bond or security; and (b) except as
otherwise provided by applicable law, to cease making any payments or providing any benefit otherwise required by this Agreement,
in each case in addition to any other remedy to which the Company may be entitled at law or in equity.

 

9. 
Severable Provisions. The provisions of this Agreement are severable, and the invalidity of any one or more provision(s)
shall not affect the validity of any other provision(s). In the event that a court of competent jurisdiction determines that any
portion of this Agreement or the application thereof is unenforceable in whole or in part, the Employee and the Company agree
that said court shall, in making such determination, have the power to revise such provision to the extent necessary to make it
enforceable, and that the Agreement in its revised form shall be valid and enforceable to the full extent permitted by law.

 

    TERM EMPLOYMENT AGREEMENT – Page  9

     

    

 

10. 
Successors.

 

(a) 
No rights or obligations of the Employee under this Agreement may be assigned or transferred by the Employee other than the Employee’s
rights to payments or benefits hereunder, which may be transferred only by will or the laws of descent and distribution. Upon
the Employee’s death, this Agreement and all rights of the Employee hereunder shall inure to the benefit of and be enforceable
by the Employee’s beneficiary or beneficiaries, personal or legal representatives, or estate, to the extent any such person
succeeds to the Employee’s interests under this Agreement. Subject to compliance with the terms of any the Company-sponsored
benefit plan, the Employee shall be entitled to select and change a beneficiary or beneficiaries to receive following the Employee’s
death any benefit or compensation payable hereunder by giving the Company written notice thereof. In the event of the Employee’s
death or a judicial determination of the Employee’s incompetence, reference in this Agreement to the Employee shall be deemed,
where appropriate, to refer to the Employee’s beneficiary(ies), estate or other legal representative(s).

 

(b) 
This Agreement shall inure to the benefit of and be binding upon the Company and its successors and permitted assigns.

 

(c) 
the Company shall have no right to assign or transfer its rights or obligations under this Agreement; provided, however, the Company
shall have the right to assign this Agreement to an entity acquiring all or substantially all of the assets of the Company provided
that such entity assumes the liabilities, obligations and duties of the Company as contained in this Agreement, either contractually
or by operation of law.

 

11. 
Representations. The Employee represents and warrants to the Company that (a) the Employee has the legal right to enter
into this Agreement and to perform all of the obligations of the Employee to be performed hereunder in accordance with its terms;
(b) the Employee is not a party to, or subject to, any employment agreement or arrangement with any other person, firm, company,
corporation or other business entity, and the Employee is subject to no restraint, limitation or restriction by virtue of any
agreement or arrangement, or by virtue of any law or rule of law or otherwise which would impair the Employee’s right or
ability (i) to enter the employ of the Company; or (ii) to perform fully the Employee’s duties and obligations pursuant
to this Agreement; (c) the Employee represents and warrants to the Company that the Employee is an “accredited investor”
within the meaning of Regulation D promulgated under the U.S. Securities Act of 1933, as amended.

 

12. 
Miscellaneous.

 

(a) 
This Agreement shall be governed by and construed in accordance with the laws of the State of Texas, without giving effect to
the principles of conflict of laws thereof.

 

(b) 
Any notice required or permitted to be given pursuant to this Agreement shall be in writing and shall be given to the other party
by personal delivery or hand delivery by courier, by registered or certified mail, return receipt requested, postage prepaid,
or by reputable overnight courier, overnight delivery requested, addressed as follows:

 

    TERM EMPLOYMENT AGREEMENT – Page  10

     

    

 

If
to the Employee:

 

Watt
Stephens

624
Westwood Avenue

Fort
Worth, Texas 76107

 

with
a copy to:

 

Hawkins
Parnell & Young, LLP

303
Peachtree Street NE, Suite 4000

Atlanta,
Georgia 30308

Attn:
Matthew A. Boyd, Esq.

 

If
to the Company:

 

Generation
Hemp, Inc.

PO
Box 540308

Dallas,
Texas 75354

Attn:
Gary C. Evans

 

with
a copy to:

 

Bell
Nunnally & Martin LLP

2323
Ross Avenue, Suite 1900

Dallas,
Texas 75201

Attn:
Larry L. Shosid, Esq.

 

or
to such address as either party shall have furnished to the other in writing in accordance herewith. Notice and communications
shall be effective when delivered in person, three business days after being sent by mail, or the next business day after being
sent by overnight courier.

 

(c) 
This Agreement may not be amended, nor any of its provisions waived, except by a written instrument signed by the party against
whom enforcement of such amendment or waiver is sought.

 

(d) 
If any portion or provision of this Agreement shall to any extent be declared illegal or unenforceable by a court of competent
jurisdiction, then the application of such provision in such circumstances shall be deemed modified to permit its enforcement
to the maximum extent permitted by law, and both the application of such portion or provision in circumstances other than those
as to which it is so declared illegal or unenforceable and the remainder of this Agreement shall not be affected thereby, and
each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

 

(e) 
The Employee’s or the Company’s failure to insist upon strict compliance with any provision of this Agreement or the
failure to assert any right the Employee or the Company may have hereunder, including, without limitation, the right of the Company
to terminate the Employee’s employment for Cause or the Employee to terminate employment for Good Reason pursuant to this
Agreement, shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement.

 

    TERM EMPLOYMENT AGREEMENT – Page  11

     

    

 

(f) 
This Agreement constitutes the entire agreement and understanding of the parties with respect to the subject matter hereof and
thereof and supersedes all prior agreements, understandings, arrangements, promises and commitments, whether written or oral,
express or implied, relating to the subject matter hereof and thereof.

 

(g) 
In the event of any claim or action (i) arising out of or based upon this Agreement; (ii) arising out of or based upon the Employee’s
employment with the Company and/or termination thereof; or (iii) relating to the subject matter hereof, each of the Company and
the Employee, by the Company’s or the Employee’s execution hereof, hereby irrevocably submits to the exclusive jurisdiction
of the state or federal courts located in Dallas County, Texas, and agrees not to commence any such claim or action other than
in the above-named courts. EACH PARTY WAIVES HIS OR ITS RIGHT TO TRIAL BY JURY IN CONNECTION WITH ANY DISPUTE, SUIT, ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT OR ANY EXHIBIT HERETO.

 

(h) 
All descriptive headings of the Sections of this Agreement are inserted for convenience only and do not constitute a part of this
Agreement.

 

(i) 
This Agreement may be executed in two counterparts each of which shall be original and both of which together shall constitute
one and the same instrument. Electronic transmission signatures will suffice for execution hereof.

 

(j) 
Each of the parties hereto shall, at any time and from time to time hereafter, upon the reasonable request of the other, take
such further action and execute, acknowledge and deliver all such instruments of further assurance as necessary to carry out the
provisions of this Agreement.

 

(k) 
If any portion of this Agreement receives judicial interpretation, it is agreed that the court interpreting or construing this
Agreement shall not apply a presumption that the terms of this Agreement shall be construed or interpreted against one party by
reason of the rule of construction that a document is to be construed more strictly against the party who prepared the Agreement,
it being acknowledged that both parties and their agents have participated in the preparation and/or review of this Agreement.

 

Signature
Page Follows

 

    TERM EMPLOYMENT AGREEMENT – Page  12

     

    

 

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

 

	 	THE
    COMPANY:
	 	 
	 	GENERATION
    HEMP, INC.,
	 	a
    Colorado corporation
	 	 
	 	By:	 /s/ Gary C. Evans
	 	 	Gary C. Evans, Managing Member
	 	 
	 	THE
EMPLOYEE:
	 	 
	 	 
	 	 	/s/ Watt Stephens
	 	 	WATT
    STEPHENS, a resident of the State of Texas

 

 

 

TERM EMPLOYMENT AGREEMENT – Signature Pageck1832351-ex104_10.htm

 

Exhibit 10.4

 

ECP Environmental Growth Opportunities Corp.
40 Beechwood Road

Summit, NJ 07901

 

November 30, 2020

ENNV Holdings, LLC
40 Beechwood Road

Summit, NJ 07901

 

RE: Securities Subscription Agreement

Ladies and Gentlemen:

This agreement (the “Agreement”) is entered into on November 30, 2020 by and between ENNV Holdings, LLC, a Delaware limited liability company (the “Subscriber” or “you”), and ECP Environmental Growth Opportunities Corp., a Delaware corporation (the “Company”, “we” or “us”). Pursuant to the terms hereof, the Company hereby accepts the offer the Subscriber has made to purchase 8,625,000 shares (the “Shares”) of Class B common stock, $0.0001 par value per share (the “Class B Common Stock”), up to 1,125,000 of which are subject to forfeiture by you in the event of an initial public offering (“IPO”) of units of the Company if the underwriters of such an IPO, do not fully exercise their over-allotment option (the “Over-allotment Option”). The Company’s and the Subscriber’s agreements regarding such Shares are as follows:

Article I.
Purchase of Securities

Section 1.01Purchase of Shares. For the sum of $25,000, the Company hereby issues the Shares to the Subscriber, and the Subscriber hereby purchases the Shares from the Company, subject to forfeiture, on the terms and subject to the conditions set forth in this Agreement. Concurrently with the Subscriber’s execution of this Agreement, the Company shall, at its option, deliver to the Subscriber a certificate registered in the Subscriber’s name representing the shares (the “Original Certificate”), or effect such delivery in book-entry form.

Article II.
Representations, Warranties and Agreements

Section 2.01The Subscriber’s Representations, Warranties and Agreements. To induce the Company to issue the Shares to the Subscriber, the Subscriber hereby represents and warrants to the Company and agrees with the Company as follows:

(a)No Government Recommendation or Approval. The Subscriber understands that no federal or state agency has passed upon or made any recommendation or endorsement of the offering of the Shares.

 

 

 

(b)No Conflicts. The execution, delivery and performance of this Agreement and the consummation by the Subscriber of the transactions contemplated hereby do not violate, conflict with or constitute a default under (i) the formation and governing documents of the Subscriber, (ii) any agreement, indenture or instrument to which the Subscriber is a party or (iii) any law, statute, rule or regulation to which the Subscriber is subject, or any agreement, order, judgment or decree to which the Subscriber is subject.

(c)Organization and Authority. The Subscriber is a Delaware limited liability company, validly existing and in good standing under the laws of Delaware and possesses all requisite power and authority necessary to carry out the transactions contemplated by this Agreement. Upon execution and delivery by you, this Agreement is a legal, valid and binding agreement of the Subscriber, enforceable against the Subscriber in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance or similar laws affecting the enforcement of creditors’ rights generally and subject to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).

(d)Experience, Financial Capability and Suitability. The Subscriber is (i) sophisticated in financial matters and is able to evaluate the risks and benefits of the investment in the Shares and (ii) able to bear the economic risk of its investment in the Shares for an indefinite period of time because the Shares have not been registered under the Securities Act (as defined below) and therefore cannot be sold unless subsequently registered under the Securities Act or an exemption from such registration is available. The Subscriber is capable of evaluating the merits and risks of its investment in the Company and has the capacity to protect its own interests. The Subscriber must bear the economic risk of this investment until the Shares are sold pursuant to (x) an effective registration statement under the Securities Act or (y) an exemption from registration available with respect to such sale. The Subscriber is able to bear the economic risks of an investment in the Shares and to afford a complete loss of the Subscriber’s investment in the Shares.

(e)Access to Information; Independent Investigation. Prior to the execution of this Agreement, the Subscriber has had the opportunity to ask questions of and receive answers from representatives of the Company concerning an investment in the Company, as well as the finances, operations, business and prospects of the Company, and the opportunity to obtain additional information to verify the accuracy of all information so obtained. In determining whether to make this investment, the Subscriber has relied solely on the Subscriber’s own knowledge and understanding of the Company and its business based upon the Subscriber’s own due diligence investigation and the information furnished pursuant to this paragraph. The Subscriber understands that no person has been authorized to give any information or to make any representations that were not furnished pursuant to this Article II and the Subscriber has not relied on any other representations or information in making its investment decision, whether written or oral, relating to the Company, its operations and/or its prospects.

1

 

(f)Regulation D Offering. The Subscriber represents that it is an “accredited investor” as such term is defined in Rule 501(a) of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”), and acknowledges that the sale contemplated hereby is being made in reliance on a private placement exemption to “accredited investors” within the meaning of Section 501(a) of Regulation D under the Securities Act or similar exemptions under state law.

(g)Investment Purposes. The Subscriber is purchasing the Shares solely for investment purposes, for the Subscriber’s own account and not for the account or benefit of any other person, and not with a view towards the distribution or dissemination thereof. The Subscriber did not decide to enter into this Agreement as a result of any general solicitation or general advertising within the meaning of Rule 502 under the Securities Act.

(h)Restrictions on Transfer; Shell Company. The Subscriber understands the Shares are being offered in a transaction not involving a public offering within the meaning of the Securities Act. The Subscriber understands the Shares will be “restricted securities” within the meaning of Rule 144(a)(3) under the Securities Act, and the Subscriber understands that the certificates or book‐entries representing the Shares will contain a legend in respect of such restrictions. If in the future the Subscriber decides to offer, resell, pledge or otherwise transfer the Shares, such Shares may be offered, resold, pledged or otherwise transferred only pursuant to (i) registration under the Securities Act or (ii) an available exemption from registration. The Subscriber agrees that if any transfer of its Shares or any interest therein is proposed to be made, as a condition precedent to any such transfer, the Subscriber may be required to deliver to the Company an opinion of counsel satisfactory to the Company. Absent registration or an exemption, the Subscriber agrees not to resell the Shares. The Subscriber further acknowledges that because the Company is a shell company, Rule 144 may not be available to the Subscriber for the resale of the Shares until one year following consummation of an initial business combination of the Company, despite technical compliance with the requirements of Rule 144 and the release or waiver of any contractual transfer restrictions.

(i)No Governmental Consents. No governmental, administrative or other third party consents or approvals are required, necessary or appropriate on the part of the Subscriber in connection with the transactions contemplated by this Agreement.

Section 2.02Company’s Representations, Warranties and Agreements. To induce the Subscriber to purchase the Shares, the Company hereby represents and warrants to the Subscriber and agrees with the Subscriber as follows:

(a)Organization and Corporate Power. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware. The Company possesses all requisite corporate power and authority necessary to carry out the transactions contemplated by this Agreement.

2

 

(b)No Conflicts. The execution, delivery and performance of this Agreement and the consummation by the Company of the transactions contemplated hereby do not violate, conflict with or constitute a default under (i) the Certificate of Incorporation or Bylaws of the Company, (ii) any agreement, indenture or instrument to which the Company is a party or (iii) any law, statute, rule or regulation to which the Company is subject, or any agreement, order, judgment or decree to which the Company is subject, except, with respect to clauses (ii) and (iii) above, where such violation, conflict or default would not reasonably be expected to have a material adverse effect on the financial condition, operating results or assets of the Company.

(c)Title to Securities. Upon issuance in accordance with, and payment pursuant to, the terms hereof, the Shares will be duly and validly issued, fully paid and nonassessable. Upon issuance in accordance with, and payment pursuant to, the terms hereof, the Subscriber will have or receive good title to the Shares, free and clear of all liens, claims and encumbrances of any kind, other than (i) transfer restrictions hereunder and other agreements to which the Shares may be subject that have been notified to the Subscriber in writing, (ii) transfer restrictions under federal and state securities laws, and (iii) liens, claims or encumbrances imposed due to the actions of the Subscriber.

(d)No Adverse Actions. There are no actions, suits, investigations or proceedings pending, threatened against or affecting the Company that (i) seek to restrain, enjoin, prevent the consummation of or otherwise affect the transactions contemplated by this Agreement or (ii) question the validity or legality of any transactions or seeks to recover damages or to obtain other relief in connection with any transactions.

Article III.
Forfeiture of Shares

Section 3.01Partial or No Exercise of the Over-allotment Option. In the event the Over-allotment Option granted to the underwriters of an IPO is not exercised in full, the Subscriber acknowledges and agrees that it (or, if applicable, it and any transferees of Shares) shall forfeit any and all rights to such number of Shares (up to an aggregate of 1,125,000 Shares and pro rata based upon the percentage of the Over-allotment Option exercised) for no consideration such that immediately following such forfeiture, the Subscriber (and all other initial stockholders prior to the IPO, if any) will own an aggregate number of Shares, not including any shares of the Company’s Class A common stock, par value $0.0001 per share (the “Class A Common Stock” and, together with the Class B Common Stock, the “Common Stock”), issuable upon exercise of any warrants or any shares of Class A Common Stock purchased by the Subscriber in such IPO or in the aftermarket, equal to twenty percent (20%) of the issued and outstanding shares of Common Stock immediately following the IPO.

Section 3.02Termination of Rights as Stockholder. If any of the Shares are forfeited in accordance with this Article III, then after such time the Subscriber (or successor in interest), shall no longer have any rights as a holder of such forfeited Shares, and the Company shall take such action as is appropriate to cancel such forfeited Shares.

3

 

Section 3.03Share Certificates. In the event an adjustment to the Original Certificates, if any, is required pursuant to this Article III, then the Subscriber shall return such Original Certificates to the Company or its designated agent as soon as practicable upon its receipt of notice from the Company advising the Subscriber of such adjustment, following which a new certificate (the “New Certificate”), if any, shall be issued in such amount representing the adjusted number of Shares held by the Subscriber. The New Certificate, if any, shall be returned to the Subscriber as soon as practicable. Any such adjustment for any uncertificated securities held by the Subscriber shall be made in book-entry form.

Article IV.
Waiver of Liquidation Distributions; Redemption Rights

In connection with the Shares purchased pursuant to this Agreement, the Subscriber hereby waives any and all right, title, interest or claim of any kind in or to any distributions by the Company from the trust account that will be established for the benefit of the Company’s public stockholders and into which substantially all of the proceeds of an IPO (if any) will be deposited (the “Trust Account”), in the event of a liquidation of the Company upon the Company’s failure to timely complete an initial business combination. For purposes of clarity, in the event the Subscriber purchases any shares of Class A Common Stock in an IPO or in the aftermarket, any such shares so purchased shall be eligible to receive any liquidating distributions by the Company. However, in no event will the Subscriber have the right to redeem any Shares into funds held in the Trust Account upon the successful completion of an initial business combination.

Article V.
Restrictions on Transfer

Section 5.01Securities Law Restrictions. In addition to any restrictions to be contained in that certain letter agreement (commonly known as an “Insider Letter”) to be dated as of the closing of an IPO by and between the Subscriber and the Company, the Subscriber agrees not to sell, transfer, pledge, hypothecate or otherwise dispose of all or any part of the Shares unless, prior thereto (a) a registration statement on the appropriate form under the Securities Act and applicable state securities laws with respect to the Shares proposed to be transferred shall then be effective or (b) the Company has received an opinion from counsel reasonably satisfactory to the Company, that such registration is not required because such transaction is exempt from registration under the Securities Act and the rules promulgated by the Securities and Exchange Commission thereunder and with all applicable state securities laws.

Section 5.02Lock-up. The Subscriber acknowledges that the Securities will be subject to lock-up provisions (the “Lock‐up”) contained in the Insider Letter.

Section 5.03Restrictive Legends. Any certificates representing the Shares shall have endorsed thereon legends substantially as follows:

4

 

“THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND NEITHER THE SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT OR SUCH LAWS OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS WHICH, IN THE OPINION OF COUNSEL, IS AVAILABLE.”

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A LOCKUP AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED DURING THE TERM OF THE LOCKUP.”

Section 5.04Additional Shares of Class B Common Stock or Substituted Securities. In the event of the declaration of a share dividend, the declaration of an extraordinary dividend payable in a form other than shares of Common Stock, a spin‐off, a share split, an adjustment in conversion ratio, a recapitalization or a similar transaction affecting the Company’s outstanding shares of Common Stock without receipt of consideration, any new, substituted or additional securities or other property that are by reason of such transaction distributed with respect to any shares of Common Stock subject to this Article V or into which such shares of Common Stock thereby become convertible shall immediately be subject to this Article V and Article III. Appropriate adjustments to reflect the distribution of such securities or property shall be made to the number and/or class of shares of Common Stock subject to this Article V and Article III.

Section 5.05Registration Rights. The Subscriber acknowledges that the Shares are being purchased pursuant to an exemption from the registration requirements of the Securities Act and will become freely tradable only after certain conditions are met or they are registered pursuant to a registration rights agreement to be entered into with the Company in connection with the closing of the IPO (the “Registration Rights Agreement”).

Article VI.
Other Agreements

Section 6.01Further Assurances. The Subscriber agrees to execute such further instruments and to take such further action as may reasonably be necessary to carry out the intent of this Agreement.

Section 6.02Notices. All notices, statements or other documents that are required or contemplated by this Agreement shall be (i) in writing and delivered personally or sent by first class registered or certified mail, overnight courier service or facsimile or electronic transmission to the address designated in writing by such party, (ii) by facsimile to the number most recently provided by such party or such other address or fax number as may be designated in writing by such party and (iii) by electronic mail, to the electronic mail address most recently provided by such party or such other electronic mail address as may be designated in writing by such party. Any notice or other communication so transmitted shall be deemed to have been given on the day of delivery, if delivered personally, on the business day following receipt of written confirmation, if sent by facsimile or electronic transmission, one (1) business day after delivery to an overnight courier service or five (5) days after mailing if sent by mail.

5

 

Section 6.03Entire Agreement. This Agreement, together with the Insider Letter and the Registration Rights Agreement, each substantially in the form to be filed as an exhibit to the Registration Statement on Form S-1 associated with the Company’s IPO, embodies the entire agreement and understanding between the Subscriber and the Company with respect to the subject matter hereof and supersedes all prior oral or written agreements and understandings relating to the subject matter hereof. No statement, representation, warranty, covenant or agreement of any kind not expressly set forth in this Agreement shall affect, or be used to interpret, change or restrict, the express terms and provisions of this Agreement.

Section 6.04Modifications and Amendments. The terms and provisions of this Agreement may be modified or amended only by written agreement executed by all parties hereto.

Section 6.05Waivers and Consents. The terms and provisions of this Agreement may be waived, or consent for the departure therefrom granted, only by a written document executed by the party entitled to the benefits of such terms or provisions. No such waiver or consent shall be deemed to be or shall constitute a waiver or consent with respect to any other terms or provisions of this Agreement, whether or not similar. Each such waiver or consent shall be effective only in the specific instance and for the purpose for which it was given, and shall not constitute a continuing waiver or consent.

Section 6.06Assignment. The rights and obligations under this Agreement may not be assigned by either party hereto without the prior written consent of the other party.

Section 6.07Benefit. All statements, representations, warranties, covenants and agreements in this Agreement shall be binding on the parties hereto and shall inure to the benefit of the respective successors and permitted assigns of each party hereto. Nothing in this Agreement shall be construed to create any rights or obligations except among the parties hereto, and no person or entity shall be regarded as a third-party beneficiary of this Agreement.

Section 6.08Governing Law. This Agreement and the rights and obligations of the parties hereunder shall be construed in accordance with and governed by the laws of New York applicable to contracts wholly performed within the borders of such state, without giving effect to the conflict of law principles thereof.

Section 6.09Severability. In the event that any court of competent jurisdiction shall determine that any provision, or any portion thereof, contained in this Agreement shall be unreasonable or unenforceable in any respect, then such provision shall be deemed limited to the extent that such court deems it reasonable and enforceable, and as so limited shall remain in full force and effect. In the event that such court shall deem any such provision, or portion thereof, wholly unenforceable, the remaining provisions of this Agreement shall nevertheless remain in full force and effect.

6

 

Section 6.10No Waiver of Rights, Powers and Remedies. No failure or delay by a party hereto in exercising any right, power or remedy under this Agreement, and no course of dealing between the parties hereto, shall operate as a waiver of any such right, power or remedy of such party. No single or partial exercise of any right, power or remedy under this Agreement by a party hereto, nor any abandonment or discontinuance of steps to enforce any such right, power or remedy, shall preclude such party from any other or further exercise thereof or the exercise of any other right, power or remedy hereunder. The election of any remedy by a party hereto shall not constitute a waiver of the right of such party to pursue other available remedies. No notice to or demand on a party not expressly required under this Agreement shall entitle the party receiving such notice or demand to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the party giving such notice or demand to any other or further action in any circumstances without such notice or demand.

Section 6.11Survival of Representations and Warranties. All representations and warranties made by the parties hereto in this Agreement or in any other agreement, certificate or instrument provided for or contemplated hereby, shall survive the execution and delivery hereof and any investigations made by or on behalf of the parties.

Section 6.12No Broker or Finder. Each of the parties hereto represents and warrants to the other that no broker, finder or other financial consultant has acted on its behalf in connection with this Agreement or the transactions contemplated hereby in such a way as to create any liability on the other. Each of the parties hereto agrees to indemnify and save the other harmless from any claim or demand for commission or other compensation by any broker, finder, financial consultant or similar agent claiming to have been employed by or on behalf of such party and to bear the cost of legal expenses incurred in defending against any such claim.

Section 6.13Headings and Captions. The headings and captions of the various subdivisions of this Agreement are for convenience of reference only and shall in no way modify or affect the meaning or construction of any of the terms or provisions hereof.

Section 6.14Counterparts. This Agreement may be executed in one or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or any other form of electronic delivery, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such signature page were an original thereof.

7

 

Section 6.15Construction. The parties hereto have participated jointly in the negotiation and drafting of this Agreement. If an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties hereto and no presumption or burden of proof will arise favoring or disfavoring any party hereto because of the authorship of any provision of this Agreement. The words “include,” “includes,” and “including” will be deemed to be followed by “without limitation.” Pronouns in masculine, feminine, and neuter genders will be construed to include any other gender, and words in the singular form will be construed to include the plural and vice versa, unless the context otherwise requires. The words “this Agreement,” “herein,” “hereof,” “hereby,” “hereunder” and words of similar import refer to this Agreement as a whole and not to any particular subdivision unless expressly so limited. The parties hereto intend that each representation, warranty and covenant contained herein will have independent significance. If any party hereto has breached any representation, warranty or covenant contained herein in any respect, the fact that there exists another representation, warranty or covenant relating to the same subject matter (regardless of the relative levels of specificity) that such party hereto has not breached will not detract from or mitigate the fact that such party hereto is in breach of the first representation, warranty or covenant.

Section 6.16Mutual Drafting. This Agreement is the joint product of the Subscriber and the Company and each provision hereof has been subject to the mutual consultation, negotiation and agreement of such parties and shall not be construed for or against any party hereto.

Article VII.
Voting and Tender of Shares

The Subscriber agrees to vote the Shares in favor of any initial business combination that the Company negotiates and submits for approval to the Company’s stockholders and shall not seek redemption with respect to such Shares. Additionally, the Subscriber agrees not to tender any Shares in connection with a tender offer presented to the Company’s stockholders in connection with an initial business combination negotiated by the Company.

Article VIII.
Indemnification

Each party shall indemnify the other against any loss, cost or damages (including reasonable attorney’s fees and expenses) incurred as a result of such party’s breach of any representation, warranty, covenant or agreement in this Agreement.

[Signature Page Follows]

8

 

If the foregoing accurately sets forth our understanding and agreement, please sign the enclosed copy of this Agreement and return it to us.

 

	
 
	
Very truly yours,

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
ECP ENVIRONMENTAL GROWTH OPPORTUNITIES CORP.

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
/s/ Tyler Reeder

	
 
	
Name:
	
 
	
Tyler Reeder

	
 
	
Title:
	
 
	
President and Chief Executive Officer

 

Accepted and agreed as of the date first written above.

 

	
 
	
ENNV HOLDINGS, LLC

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
/s/ Tyler Reeder

	
 
	
Name:
	
 
	
Tyler Reeder

	
 
	
Title:
	
 
	
President and Chief Executive Officer

 

[Signature Page to Securities Subscription Agreement]

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