Document:

Exhibit 10.6

 

LANDMARK INFRASTRUCTURE PARTNERS GP LLC

NON-EMPLOYEE DIRECTOR COMPENSATION PLAN

 

In consideration of the services provided by certain non-employee members of the Board of Directors (the “Board”) of Landmark Infrastructure Partners GP LLC, a Delaware limited liability company (the “Company”), which is the general partner of Landmark Infrastructure Partners LP, a Delaware limited partnership (the “Partnership”), the Company maintains this Landmark Infrastructure Partners GP LLC Non-Employee Director Compensation Plan (this “Plan”) to (1) attract and retain highly qualified individuals, whose efforts and judgment can contribute significantly to the success of the Company and the Partnership, to serve as non-employee members of the Board and (2) stimulate the active interest of these persons in the development and financial success of the Company and the Partnership by providing for ownership of common units in the Partnership by such persons.

 

ARTICLE I
 ELIGIBILITY

 

Each Non-Employee Director will be eligible to receive the remuneration for Board services provided for in this Plan.  For purposes of this Plan, “Non-Employee Director” means a member of the Board who (a) is not an officer or employee of the Company or any of its subsidiaries or affiliates, and (b) has not entered into an arrangement with the Company or any of its subsidiaries to receive compensation from any such entity other than in respect of his or her services as a member of the Board of any such entity.  The Board will make all determinations regarding which of its members are Non-Employee Directors.

 

ARTICLE II
 ANNUAL BOARD MEMBER RETAINER

 

2.1                               Annual Board Member Retainer Generally.  Subject to the remaining provisions of this Article II, each Non-Employee Director will receive an annual retainer in respect of his or her service as a member of the Board during such calendar year (the “Annual Board Member Retainer”).  The amount of the Annual Board Member Retainer payable to each Non-Employee Director for each calendar year will be equal to $35,000, as modified by the remainder of the provisions of this Article II.  Except as otherwise provided in Section 5.5, the Annual Board Member Retainer to be paid to each Non-Employee Director will be payable in cash.

 

2.2                               Payment of Annual Board Member Retainer Where Board Membership Runs from Beginning of Calendar Year.  If a Non-Employee Director is a member of the Board from the beginning of a calendar year, such Non-Employee Director’s Annual Board Member Retainer for such calendar year will be payable in four equal quarterly installments of $8,750 (the “Quarterly Board Member Retainer Value”) on the first business day following the end of each fiscal quarter, beginning with the fiscal quarter ending March 31 (each, a “Quarterly Payment Date”), subject to the provisions of Section 2.4.

 

2.3                               Reduction and Payment of Annual Board Member Retainer Where Board Membership Commences During Calendar Year.  If a Non-Employee Director is not a member of the Board at the beginning of a calendar year, but becomes a member of the Board during the

 

 

course of such calendar year, such Non-Employee Director’s Annual Board Member Retainer for such calendar year will be subject to reduction and payment, subject to the provisions of Section 2.4, as follows:

 

(a)                                 a 0% reduction, if such Non-Employee Director becomes a member of the Board before March 31 of such calendar year, in which case the Non-Employee Director will be paid the Quarterly Board Member Retainer Value for such calendar year on each of the four Quarterly Payment Dates occurring with respect to such calendar year;

 

(b)                                 a 25% reduction, if such Non-Employee Director becomes a member of the Board on or after March 31 of such calendar year but before June 30 of such calendar year, in which case the Non-Employee Director will be paid the Quarterly Board Member Retainer Value for such calendar year on each of the three remaining Quarterly Payment Dates occurring with respect to such calendar year;

 

(c)                                  a 50% reduction, if such Non-Employee Director becomes a member of the Board on or after June 30 of such calendar year but before September 30 of such calendar year, in which case the Non-Employee Director will be paid the Quarterly Board Member Retainer Value for such calendar year on each of the two remaining Quarterly Payment Dates occurring with respect to such calendar year; and

 

(d)                                 a 75% reduction, if such Non-Employee Director becomes a member of the Board on or after September 30 of such calendar year but before December 31 of such calendar year, in which case the Non-Employee Director will be paid the Quarterly Board Member Retainer Value for such calendar year on the one remaining Quarterly Payment Date occurring with respect to such calendar year.

 

2.4                               Payment of Annual Board Member Retainer Where Board Membership Terminates During Calendar Year.  Notwithstanding anything to the contrary in this Article II, and unless otherwise provided by the Committee (as defined in Section 7.1), a Non-Employee Director whose membership on the Board terminates during a calendar year will not receive payment of any portion of his or her Annual Board Member Retainer for that calendar year which would otherwise be payable on a Quarterly Payment Date that occurs following the date such Non-Employee Director’s membership on the Board terminates.

 

ARTICLE III
 ANNUAL COMMITTEE CHAIR RETAINER

 

3.1                               Annual Committee Chair Retainer Generally.  Subject to the remaining provisions of this Article III, each Non-Employee Director who serves as the chair of a committee of the Board (a “Committee Chair”) during any calendar year will receive an additional annual retainer in respect of his or her service as such Committee Chair (the “Annual Committee Chair Retainer”).  The amount of the Annual Committee Chair Retainer payable for any such calendar year to each Non-Employee Director who is a Committee Chair during such period (a “Non-Employee Director/Committee Chair”) will be equal to (a) $10,000 for service as a Non-

 

 

Employee Director/Committee Chair of the Audit Committee, and/or (b) an amount, if any, as determined by the Board for service as a Non-Employee Director/Committee Chair of any other committee of the Board as may be established at any time, in each case, as modified by the remainder of this Article III.  Except as otherwise provided in Section 5.5, the Annual Committee Chair Retainer to be paid to any Non-Employee Director/Committee Chair will be payable in cash.

 

3.2                               Payment of Annual Committee Chair Retainer Where Service as Committee Chair Runs from Beginning of Calendar Year.  If a Non-Employee Director/Committee Chair is a Committee Chair of a standing committee from the beginning of a calendar year, such Non-Employee Director/Committee Chair’s Annual Committee Chair Retainer for such calendar year will be payable in four equal quarterly installments (the “Quarterly Committee Chair Retainer Value”) on each Quarterly Payment Date.

 

3.3                               Reduction and Payment of Annual Committee Chair Retainer Where Service as Committee Chair Commences During Calendar Year.  If a Non-Employee Director/Committee Chair is not a Committee Chair of a standing committee at the beginning of a calendar year, but becomes a Committee Chair of such committee during the course of such calendar year, such Non-Employee Director/Committee Chair’s Annual Committee Chair Retainer for such calendar year will be subject to reduction and payment, subject to the provisions of Section 3.4, as follows:

 

(a)                                 a 0% reduction, if such Non-Employee Director/Committee Chair becomes a Committee Chair before March 31 of such calendar year, in which case the Non-Employee Director/Committee Chair will be paid the Quarterly Committee Chair Retainer Value on each of the four Quarterly Payment Dates occurring with respect to such calendar year;

 

(b)                                 a 25% reduction, if such Non-Employee Director/Committee Chair becomes a Committee Chair on or after March 31 of such calendar year but before June 30 of such calendar year, in which case the Non-Employee Director/Committee Chair will be paid the Quarterly Committee Chair Retainer Value on each of the three remaining Quarterly Payment Dates occurring with respect to such calendar year;

 

(c)                                  a 50% reduction, if such Non-Employee Director/Committee Chair becomes a Committee Chair on or after June 30 of such calendar year but before September 30 of such calendar year, in which case the Non-Employee Director/Committee Chair will be paid the Quarterly Committee Chair Retainer Value on each of the two remaining Quarterly Payment Dates occurring with respect to such calendar year; and

 

(d)                                 a 75% reduction, if such Non-Employee Director/Committee Chair becomes a Committee Chair on or after September 30 of such calendar year but before December 31 of such calendar year, in which case the Non-Employee Director/Committee Chair will be paid the Quarterly Committee Chair Retainer Value on the one remaining Quarterly Payment Date occurring with respect to such calendar year.

 

 

3.4                               Payment of Annual Committee Chair Retainer Where Service as Committee Chair Terminates During Calendar Year.  Notwithstanding anything to the contrary in this Article III, and unless otherwise provided by the Committee, a Non-Employee Director/Committee Chair whose service as a Committee Chair of a standing committee terminates during a calendar year will not receive payment of any portion of his or her Annual Committee Chair Retainer that would otherwise be payable on a Quarterly Payment Date that occurs following the date such Non-Employee Director/Committee Chair’s service as a Committee Chair of such committee terminates.

 

3.5                               Service as Committee Chair for Multiple Committees.  In the event any Non-Employee Director serves as a Committee Chair for more than one committee of the Board, the provisions of this Article III will be applied separately to each situation of service as a Committee Chair with a separate Annual Committee Chair Retainer being payable to him or her as a Committee Chair in each instance.

 

ARTICLE IV
 MEETING PARTICIPATION COMPENSATION

 

4.1                               Compensation Generally.  Each Non-Employee Director will receive, as compensation in addition to all other compensation provided for in this Plan, the meeting participation compensation provided for in Sections 4.2 and 4.3 (“Meeting Participation Compensation”).  Such Meeting Participation Compensation will be payable on such schedule as is determined by the Company provided that Meeting Participation Compensation will in all events be payable no later than the earlier of the first Quarterly Payment Date next following by fourteen days or more the meeting to which the Meeting Participation Compensation applies or March 15 of the calendar year immediately following the calendar year in which such Meeting Participation Compensation was earned.

 

4.2                               Compensation for Participation in Board Meetings.  Each Non-Employee Director will receive, for participation as a member of the Board in meetings of the Board (a “Board Meeting”), a per meeting fee of (a) $1,000 for each Board Meeting which the Non-Employee Director attends in person or (b) $500 for each Board Meeting having a length of in excess of one hour in which the Non-Employee Director participates by telephone conference call.

 

4.3                               Compensation for Participation in Committee Meetings.  Each Non-Employee Director will receive, for participation as a member of a committee of the Board in meetings of such committee (a “Committee Meeting”), a per meeting fee of (a) $500 for each Committee Meeting which the Non-Employee Director attends in person or (b) $500 for each Committee Meeting having a length of in excess of one hour in which the Non-Employee Director participates by telephone conference call.

 

ARTICLE V
 EQUITY GRANTS

 

5.1                               Annual Grant of Units.  Each Non-Employee Director will receive, in addition to the other compensation provided for in this Plan, an annual grant (“Annual Unit Grant”) of common units of the Partnership (the “Units”), valued in the aggregate amount of $35,000 (the

 

 

“Annual Unit Grant Value”) for each calendar year, with the number of Units to be granted and the timing of such grants determined in accordance with the provisions of this Article V.  For purposes of valuing such grants and otherwise of this Plan, “Fair Market Value” shall have the same meaning as set forth in the LTIP.

 

5.2                               Granting of Annual Unit Grant Where Board Membership Runs from Beginning of Calendar Year.  If a Non-Employee Director is a member of the Board from the beginning of a calendar year, the Annual Unit Grant with respect to such calendar year will be made annually in advance on the Quarterly Payment Date occurring in January with respect to the calendar year, subject to the provisions of Section 5.4.  The number of Units granted on the Quarterly Payment Date occurring in January with respect to a calendar year will be such number of whole Units as have an aggregate Fair Market Value equal to the Annual Unit Grant Value for such calendar year on such Quarterly Payment Date (rounded up to the nearest whole Unit).  For the 2014 calendar year, the Annual Unit Grant will be made as soon as practicable following the consummation of the Partnership’s initial public offering in an amount equal to a pro-rated portion of the Annual Unit Grant Value based on the number of days remaining in the calendar year.

 

5.3                               Reduction and Granting of Annual Unit Grant Where Board Membership Commences During Calendar Year.  If a Non-Employee Director is not a member of the Board at the beginning of a calendar year, but becomes a member of the Board during the course of such calendar year, such Non-Employee Director’s Annual Unit Grant for such calendar year will be subject to reduction and granting, subject to the provisions of Section 5.4, as follows:

 

(a)                                 a 0% reduction, if such Non-Employee Director becomes a member of the Board before March 31 of such calendar year, in which case the Non-Employee Director will be granted, on the Quarterly Payment Date occurring in January of the following calendar year, such number of whole Units as have an aggregate Fair Market Value equal to the Annual Unit Grant Value for such calendar year on such Quarterly Payment Date (rounded up to the nearest whole Unit);

 

(b)                                 a 25% reduction, if such Non-Employee Director becomes a member of the Board on or after March 31 of such calendar year but before June 30 of such calendar year, in which case the Non-Employee Director will be granted, on the Quarterly Payment Date occurring in January of the following calendar year, such number of whole Units as have an aggregate Fair Market Value equal to the Annual Unit Grant Value for such calendar year on such Quarterly Payment Date (rounded up to the nearest whole Unit);

 

(c)                                  a 50% reduction, if such Non-Employee Director becomes a member of the Board on or after June 30 of such calendar year but before September 30 of such calendar year, in which case the Non-Employee Director will be granted, on the Quarterly Payment Date occurring in January of the following calendar year, such number of whole Units as have an aggregate Fair Market Value equal to the Annual Unit Grant Value for such calendar year on such Quarterly Payment Date (rounded up to the nearest whole Unit); and

 

 

(d)                                 a 75% reduction, if such Non-Employee Director becomes a member of the Board on or after September 30 of such calendar year but before December 31 of such calendar year, in which case the Non-Employee Director will be granted, on the Quarterly Payment Date occurring in January of the following calendar year, such number of whole Units as have an aggregate Fair Market Value equal to the Annual Unit Grant Value for such calendar year on such Quarterly Payment Date (rounded up to the nearest whole Unit).

 

For the avoidance of doubt, the foregoing grant to be made to the Non-Employee Director under this Section 5.3 on the Quarterly Payment Date in January of the year following the year of his commencement of service on the Board shall be in addition to the Annual Unit Grant that he will receive on such Quarterly Payment Date for the subsequent year pursuant to Section 5.2.

 

5.4                               Effect on Annual Unit Grant Where Board Membership Terminates During Calendar Year.  Notwithstanding anything to the contrary in this Article V, and unless otherwise provided by the Committee, a Non-Employee Director whose membership on the Board terminates during a calendar year will be entitled to retain any portion of his or her Annual Unit Grant for that calendar year which was granted on the Quarterly Payment Date occurring in January of such calendar year.

 

5.5                               Additional Grants of Units in Lieu of Cash Compensation.  In addition to the Annual Unit Grant and any Election Unit Grant (as defined in Section 5.6), beginning for calendar year 2015 compensation, any Non-Employee Director may elect from time to time to receive any or all of the cash compensation payable hereunder, for the Annual Board Member Retainer and/or the Annual Committee Chair Retainer, in Units instead.  For purposes of this Plan, cash compensation to which an election made in accordance with the provisions of this Section 5.5 applies shall be referred to as “Elected Unit Compensation.”  Any such election with respect to Elected Unit Compensation shall be made in advance of the calendar year for which it is to be earned and must otherwise comply with the procedures therefor established from time to time by the Committee (as defined in Section 7.1).  In the event of such an election by a Non-Employee Director, the Non-Employee Director will be granted Units in place of any such Elected Unit Compensation on the Quarterly Payment Date occurring in January of the calendar year to which such Elected Unit Compensation relates.  The number of Units to be granted to a Non-Employee Director on the Quarterly Payment Date occurring in January of the calendar year to which such Elected Unit Compensation relates pursuant to an election made in accordance with this Section 5.5 will be such number of whole Units as have an aggregate Fair Market Value equal to the cash amount of such Elected Unit Compensation on such Quarterly Payment Date (rounded up to the nearest whole Unit).  If a Non-Employee Director who has made an election pursuant to this Section 5.5 ceases to be a member of the Board prior to the payment of any Elected Unit Compensation in Units, such unpaid Elected Unit Compensation will not be satisfied in Units and instead (to the extent it is earned and payable in accordance with the other terms of this Plan) will be paid in cash within thirty days after the Non-Employee Director ceases to be a member of the Board or, if earlier, by March 15 of the calendar year immediately following the calendar year in which such compensation was earned.

 

 

5.6                               Discretionary Grant of Units Upon Initial Election as a Non-Employee Director.  In addition to the Annual Unit Grant pursuant to Section 5.1, the Board may, in its discretion, make a grant of Units (an “Election Unit Grant”) to a Non-Employee Director in connection with his initial election as a member of the Board.  The Board shall establish the amount and terms (including, without limitation, any vesting requirements or other conditions) of any such grant in its discretion.

 

5.7                               Terms and Conditions for and Full Vesting of Grants.  For purposes of this Plan, each grant of Units made as provided in this Article V to a Non-Employee Director will be made pursuant to and in accordance with the terms and conditions set forth in this Plan and in the Landmark Infrastructure Partners LP 2014 Long-Term Incentive Plan, as currently in effect and as it may hereafter be amended (the “LTIP”), and, unless otherwise determined by the Board with respect to an Election Unit Grant, will be 100% vested on the date it is made.  However, the provisions of this Plan providing specifically for grants of Units in certain circumstances to Non-Employee Directors shall not restrict or prevent any other awards of Units not referenced in or made pursuant to this Plan which are otherwise made to Non-Employee Directors on a discretionary basis under the LTIP.

 

5.8                               Award Agreement.  Any Non-Employee Director who acquires Units as provided in this Article V may be required to execute and comply with the terms of an award agreement with the Company and the Partnership, in such form as is approved from time to time by the Committee.

 

ARTICLE VI
 REIMBURSEMENT OF EXPENSES

 

While a Non-Employee Director is serving as a member of the Board, the Non-Employee Director will be reimbursed for his or her business-related expenses incurred in carrying out his or her duties as a member of the Board, including but not limited to all reasonable and necessary expenses incurred by the Non-Employee Director to attend Board and Board committee meetings or otherwise fulfill his or her duties, in accordance with the Company’s expense reimbursement policy as in effect at the time an expense is incurred.

 

ARTICLE VII
 GENERAL PROVISIONS

 

7.1                               Administration.  The Plan will be administered by the Board or by a committee of, and appointed by, the Board (the “Committee”).  In the absence of the Board’s appointment of a committee to administer the Plan, the Board shall act as the “Committee” hereunder.  The Committee will have the complete authority and power to interpret this Plan, prescribe, amend and rescind rules relating to the administration of this Plan, determine a Non-Employee Director’s rights under this Plan (including such rights to receive payments of any cash compensation and/or grants of Units hereunder, and the amounts thereof), and take all other actions necessary or desirable for the administration of this Plan.  All actions and decisions of the Committee will be final and binding upon the Company, the Partnership, the Non-Employee Directors, and all other persons.  The Committee may delegate to officers and employees of the Company the authority to perform specified ministerial functions under this Plan.  Any actions

 

 

taken by any officers or employees of the Company pursuant to such delegation of authority will be deemed to have been taken by the Committee.  No member of the Committee, nor any officer or employee of the Company acting on behalf of the Committee, will be personally liable for any action, determination, or interpretation taken or made in good faith with respect to this Plan, and all members of the Committee, and each officer of the Company and each employee of the Company acting on behalf of the Committee, will, to the extent permitted by law, be fully indemnified and protected by the Company in respect of any such action, determination or interpretation.

 

7.2                               Unfunded Obligations.  The amounts to be paid and Units to be granted to Non-Employee Directors pursuant to this Plan are unfunded obligations of the Company.  The Company is not required to segregate any monies or other assets from its general funds, to create any trusts or to make any special deposits with respect to these obligations.

 

7.3                               No Additional Rights.  The compensation amounts provided for herein are intended to compensate a Non-Employee Director for all of such Non-Employee Director’s professional duties as a member of the Board and any committees thereof and, unless otherwise determined by the Board from time to time, no additional or separate compensation (other than as described in this Plan) will be payable to a Non-Employee Director for his or her service on the Board or committees of the Board (including as a Committee Chair), attendance at and/or participation in meetings of the Board or committees of the Board, or informal advisory time.  None of this Plan, the LTIP or any Annual Unit Grant or other compensation provided for or granted hereunder or thereunder will confer upon any Non-Employee Director the right to continue to serve as a member of the Board or any committee of the Board.

 

7.4                               Nonassignment.  Except by will or the laws of descent and distribution, the right of a Non-Employee Director to the receipt of any amounts under this Plan may not be assigned, transferred, pledged or encumbered in any manner nor will such right or other interests be subject to attachment, execution or other legal process.

 

7.5                               Incapacity of Non-Employee Director.  If the Committee finds that any Non-Employee Director to whom a payment is due under this Plan is unable to care for his or her affairs because of illness or accident or is under a legal disability, unless a prior claim therefor has been made by a duly appointed legal representative, any payment due may, at the discretion of the Committee, be paid to the spouse, child, parent or brother or sister of such Non-Employee Director or to any other person whom the Committee has determined has incurred expense for such Non-Employee Director. Any such payment will be a complete discharge of the obligations of the Company with respect to such payment under the provisions of this Plan.

 

7.6                               Compliance with Other Laws and Regulations.  Notwithstanding anything contained herein to the contrary, neither the Company nor the Partnership will be required to sell or issue Units under this Plan if the issuance thereof would constitute a violation by a Non-Employee Director, the Company or the Partnership of any provisions of any law or regulation of any governmental authority or any national securities exchange or inter-dealer quotation system or other forum in which Units are quoted or traded; and, as a condition of any sale or issuance of Units hereunder, the Committee may require such agreements or undertakings, if any, as the Committee may deem necessary or advisable to assure compliance with any such law or

 

 

regulation.  This Plan, the Units and other compensation provided hereunder, and the obligation of the Company or the Partnership to sell or deliver Units hereunder, will be subject to all applicable federal and state laws, rules and regulations and to such approvals by any government or regulatory agency as may be required.

 

7.7                               Termination and Amendment.  The Board may from time to time amend, suspend, or terminate this Plan, in whole or in part, and if this Plan is suspended or terminated the Board may thereafter reinstate any or all of its provisions.  Notwithstanding the foregoing, no amendment, suspension or termination of this Plan may impair the right of a Non-Employee Director to receive any benefit accrued hereunder prior to the effective date of such amendment, suspension or termination.

 

7.8                               Entire Plan.  This Plan constitutes the entire plan with respect to the subject matter hereof (other than matters covered by the LTIP) and supersedes all prior plans with respect to the subject matter hereof (other than the LTIP).

 

7.9                               Applicable Law.  Except to the extent preempted by applicable federal law, this Plan will be governed by and construed in accordance with the laws of the State of Delaware.

 

7.10                        Section 409A Matters.  This Plan is intended to provide for compensation that constitutes one or more “short term deferrals” within the meaning of Section 409A of the Code and any regulations issued thereunder, so that it and any compensation payable hereunder will be exempt from Section 409A of the Code.  Accordingly, this Plan will be construed, interpreted and operated in a manner consistent with such intent.  For purposes of Section 409A of the Code, to the extent necessary, each amount of compensation payable hereunder shall be considered a separate payment and a separate short term deferral.

 

*****Exhibit 10.1

 

AGREEMENT AND MUTUAL RELEASE AND
WAIVER

 

THIS AGREEMENT AND MUTUAL RELEASE
AND WAIVER, (the “Agreement”) executed on November 21, 2014 by and between Safety Quick Lighting & Fans Corp.
(the “Company”) and James R. Hills, (“Hills”), each referred to individually as a “Party”
and collectively as the “Parties”, is effective as of the Effective Date, as hereinafter set forth in Paragraph 15.

 

RECITALS

 

	WHEREAS,		The Company and Hills have entered into each of (i) that certain Consulting Agreement
dated effective April 1, 2012 (“2012 Agreement”) (ii) that certain Executive Employment Agreement, dated November
15, 2013 (“2013 Agreement”), and that certain Amended and Restated Employment Agreement, dated March 26, 2014 (the
“Amended Agreement”, together with the 2012 Agreement and the 2013 Agreement, collectively the “Hills Agreement”),
providing for, among other things, Hills’ engagement by the Company as a consultant and employment by the Company as its
Chief Executive Officer; and

 

	WHEREAS,		The Parties intend to effect the termination of the Hills Agreement and the mutual
extinguishment of any obligations, real or perceived, existing as of the date hereof whether derived from the Hills Agreement
or otherwise, as expressly herein provided.

 

NOW, THEREFORE, in consideration
of the promises and other good and valuable consideration as hereinafter set forth, the Parties agree as follows;

 

	1.		Mutual Release and Waiver.

As of the Effective Date and upon the terms and conditions
contained in this Agreement, each of the Parties hereby (i) agrees that the Hills Agreement is terminated and (ii) releases
and forever discharges the other and, as the case may be, any and all of the other’s past, present and future
subsidiaries, directors, officers, shareholders, principals, employees, affiliates, agents, administrators, attorneys,
successors and assigns, from any and all actions, causes of action, covenants, contracts, controversies, agreements,
promises, damages, judgments, claims and demands whatsoever, in law or in equity, now known or unknown from the beginning of
the world to the date of this Agreement, which could be made or alleged now or in the future arising out of any covenant,
agreement, right, demand or understanding (each a “Claim”, and collectively “Claims”), whether any
such Claim is derived under or from the Hills Agreement or otherwise, and the Parties do hereby specifically waive any claim
or right to assert any cause of action or alleged cause of action or claim or demand against the other which has, through
oversight or error, intentionally or unintentionally or through a mutual mistake, been omitted from this Agreement. In
furtherance and not in limitation of the foregoing, the Company hereby acknowledges and agrees that Hills is released from
any and all obligations to perform any duties or services for or on behalf of the Company in his capacity as a consultant, as
an officer (including as the Chief Executive Officer) of the Company, or in any other employment capacity. Notwithstanding
anything contained herein to the contrary, Hills hereby reserves and retains and does not hereby release any
Claims consisting of or relating to Hills’ respective rights (a) to receive any payments or benefits under this
Agreement, (b) under or with respect to any convertible or other debt instruments owed by the Company to or otherwise held by
Hills (including without limit that certain $250,000 convertible note), any capital stock in the Company previously acquired
or received and currently owned or held by Hills (including without limit the New Stock (as hereinafter defined), the Prior
Stock (as hereinafter defined) or those 230,818 shares of capital stock previously acquired by Hills) and any warrants or
options to acquire any capital stock in the Company (including without limit those warrants to acquire 74,083 shares of the
Company’s capital stock) in each case as held or owned by Hills or (c) to be indemnified by the Company either as
provided hereunder or in conformity with the Company’s bylaws, policies or programs as applicable to its directors,
officer, employees or other representatives or to receive benefits or protections available under any liability insurance
policy maintained by the Company.

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	2.		Common Stock and Incentive Compensation.

As full consideration for the extinguishment of the Hills Agreement
and the promises set forth in this Agreement, the Company hereby agrees to provide and pay to Hills the following:

 

i. Common
Stock: Upon execution and delivery of this Agreement, the Company shall issue to Hills the two hundred and fifty thousand
(250,000) shares of the Company’s common stock scheduled to vest on December 31, 2014 under the Hills Agreement (the “New
Stock”), and Hills shall be entitled to retain such New Stock and the five hundred thousand (500,000) shares of the Company’s
common stock previously issued pursuant to the Hills Agreement (the “Prior Stock”).

 

ii.Compensation
Due: The Company shall cause to be paid to Hills all accrued and unpaid salary, incentive compensation, unused vacation time,
expense reimbursements and vehicle reimbursements due to him, as set forth in the Hills Agreement, through and including the Effective
Date, paid pro rata as applicable.

 

iii. Incentive Compensation: Hills shall be entitled
to 0.50% (.0050) of the Company’s gross revenue (defined and determined as the Company’s total gross sales, at
the full invoiced amount, less solely product returns and initial discounts and determined without reduction for direct or
indirect sales, advertising, marketing, shipping, warehousing or other costs or any rebates or other commissions payable in
connection with such sales), generated solely from Home Depot for a period of thirty-six (36) months (the “Incentive
Period”) commencing on the earlier of July 1, 2015 or the Company’s first and initial shipment of any goods or
products pursuant to an order from Home Depot. The incentive compensation payments pursuant to this subsection, if any, shall
be made to Hills for each full or partial calendar quarter occurring during the Incentive Period within fifteen (15) days
after the last day of such calendar quarter. Hills shall be entitled, upon prior written notice to the Company, to audit the
Company’s books and records not more frequently than one (1) time per calendar year for purposes of verifying the
amounts paid to Hills hereunder. The Company shall reasonably cooperate with Hills in making its applicable books and records
available for purposes of allowing such audit. In the event any such audit results in verification of the Company’s
underpayment to Hills by an amount at or in excess of five percent (5%) of the amount actually paid to Hills for the period
audited, then the Company shall promptly pay such deficiency to Hills and further reimburse Hills for the costs incurred in
performing such audit. During the Incentive Period, the Company shall endeavor to timely respond to Hills reasonable
inquiries and otherwise provide Hills, on a quarterly basis, with information regarding the Company’s relationship or
activities with or involving Home Depot.

 

	3.		Confidentiality.

Hills shall maintain
in strict secrecy all confidential or trade secret information relating to the business of the Company (the “Confidential
Information”) obtained by Hills in the course of Hills’ employment by the Company through the date hereof, and Hills
shall not, unless first authorized in writing by the Company, disclose to, or use for Hills' benefit or for the benefit of any
person, firm or entity at any time, any Confidential Information. For the purposes hereof, Confidential Information shall include,
without limitation, any trade secrets, knowledge or information with respect to processes, inventions, machinery, manufacturing
techniques or know-how; any business methods or forms; any names or addresses of customers or vendors or data on customers or
suppliers; and any business policies or other information relating to or dealing with the purchasing, sales or distribution policies
or practices of the Company.

 

Except as required by applicable federal, state or local law or regulation,
the term “Confidential Information” as used in this Agreement shall not include information that (i) at the time of
disclosure is, or thereafter becomes, generally available to and known by the public other than as a result of any material breach
of this Agreement by Hills; (ii) at the time of disclosure is, or thereafter becomes, available to Hills on a non-confidential
basis from a third-party source, provided that, to Hills’ knowledge, such third party is not and was not prohibited from
disclosing such Confidential Information to him by any contractual obligation; or (iii) was independently developed by Hills without
reference to or outside of his employment with the Company, whether such employment was pursuant to the Hills Agreement or in
any other capacity, including Hills’ position as a member of the Company’s Board of Directors. In addition, Hills
shall not be in violation of this Agreement by reason of his use or disclosure of any Confidential Information (a) in order to
comply with any federal, state or local law, rule, regulation, subpoena, judicial action, or other governmental investigation
or mandate; (b) as necessary for Hills to defend or enforce against an alleged or actual breach of this Agreement or any third
party claim; and (c) made to or by Hills’ legal, tax or financial advisors for the purpose of securing their advice, provided
that Hills shall inform any such advisor of the obligation to maintain in confidence the Confidential Information so disclosed
to or used by them.

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	4.		Disparaging Statements.

Each of the Parties hereto agree that, from and after the date
of this Agreement, each such Party will refrain from making any statement about the other which could be construed
disparaging, including but not limited to, statements regarding business practices, financial condition, and the integrity of
each of the Parties and, as the case may be, its current and former officers, directors, employees, shareholders, attorneys
and accountants, agents, and successors and assigns. For the purposes of this Paragraph 4, disparaging statements shall not
include the disclosure or making of truthful testimony compelled by or made under or in connection with a judicial action,
governmental investigation or other legal mandate.

 

In addition, the
parties shall mutually agree as to the content, timing and means of making or issuing of either (i) any press release or other
public comment, statement or filing or (ii) any response to any media or other public or private questions or inquiries concerning
Hills’ departure from any office or position with or separation from the Company.

 

	5.		Indemnification.

Each Party hereby
agrees to save and hold harmless the other Party and, as the case may be, all of such other Party’s employees, directors,
shareholders, principals, affiliates, heirs, legal representatives, executors, administrators, successors and assigns against
and in respect of any loss, cost, expense, claim, liability, deficiency, judgment or damage incurred by the other Party hereto
as a result of any material inaccuracy in or material breach of a representation or warranty of such indemnifying Party contained
in this Agreement, or any material failure by such indemnifying Party to perform or comply with any of its covenants contained
in this Agreement.

 

In addition and
not in lieu or limitation of the foregoing, the Company hereby agrees to save and hold harmless Hills and his affiliates, heirs,
legal representatives, executors, administrators, successors and assigns against and in respect of any loss, cost, expense, claim,
liability, deficiency, judgment or damage incurred by such indemnified person or entity by reason of (i) Hills being or having
been a director or officer, consultant, employee or representative of the Company, or (ii) Hills’ good faith performance
of his duties or obligations rendered to the Company in his capacity as a director, officer, consultant, employee or representative
of the Company.

 

	6.		Governing Law and Venue.

 This Agreement and all matters or issues collateral thereto
shall be governed by and construed and enforced in accordance with the laws of the State of Florida applicable to contracts made
and performed entirely therein and all disputes under this Agreement shall be brought exclusively before the courts of the State
of Florida.

 

	7.		Entire Understanding.

This Agreement
contains the entire understanding of the Parties hereto relating to the subject matter herein contained, and supersedes any and
all prior agreements, including the Hills Agreement, or understandings relating to the subject matter hereof. This Agreement may
not be changed except by a writing signed by the Party sought to be charged therewith.

 

	8.		No Waiver.

No waiver by either Party, whether express or implied, of any provisions
of this Agreement or of any breach or default by either Party, shall constitute a continuing waiver or a waiver of any other provision
of this Agreement, and no such waiver by either Party shall prevent such Party from enforcing any and all provisions of this Agreement
or from acting upon the same or any subsequent breach or default of the other Party. No waiver of any provision hereunder shall
be effective unless it is in writing signed by the Party against whom enforcement thereof is sought.

 

 

 

 

 

 

 

 

 

    	 	3	 

    	 

    

	9.		Separability.

The provisions
set forth in this Agreement shall be considered to be separable and independent of each other. In the event that any provision
of this Agreement shall be determined in any jurisdiction to be unenforceable, such determination shall not be deemed to affect
the enforceability of any other remaining provision and the Parties agree that any court making such a determination is hereby
requested and empowered to modify such provision and to substitute for such enforceable provision such limitation or provision
of a maximum scope as the court then deems reasonable and judicially enforceable and the Parties agree that such substitute provision
shall be as enforceable in said jurisdiction as if set forth initially in this Agreement. Any such substitute provision shall
be applicable only in the jurisdiction in which the original provision was determined to be unenforceable.

 

	10.		Obligations to Survive Releases.

Notwithstanding
the Mutual Releases and Waivers contained in this Agreement, the Parties each agree that the agreements, promises, commitments,
representations, acknowledgements and confirmations made in this Agreement survive the date of this Agreement and shall be fully
effective and enforceable in the future.

 

11.This Agreement may be executed
in one or more counterparts, all of which shall be considered one and the same agreement and shall become effective when one or
more counterparts have been signed by each of the Parties and delivered to the other Party, it being understood that all parties
need not sign the same counterpart.

 

12. This Agreement will be deemed executed
when each party initials each page and signs in the space proved below and provides the other party with the fully executed Agreement.
Faxed signatures and initials shall constitute originals for all purposes. In the event any party files a legal action to enforce
any provision of this Agreement, the prevailing party shall be entitled to all costs of suit, including all reasonable attorney’s
fees.

 

13. Notwithstanding any provision
herein to the contrary, the releases contained herein do not apply to any claim for breach of any provision of this Agreement.

 

14.The parties collectively drafted
this Agreement and in the event that any ambiguity arises, there shall be no presumption against any individual party in that
regard.

 

15. Notwithstanding any provision
herein to the contrary, the provisions of this Agreement are deemed effective as of November 21, 2014 (the “Effective Date”).

 

IN WITNESS WHEREOF, designated
representative of the Parties have hereunto set their hands as of date first set forth above.

 

SAFETY QUICK LIGHTING & FANS
CORP.

 

	By:	 	/s/ Rani Kohen
	 	 	Rani Kohen, Chairman, on behalf of the Company’s Board of Directors, which has reviewed this Agreement and ratified
    and affirmed such Agreement as represented herein.
	 	 	 
	 	 	 
	 	 	/s/ James R. Hills
	 	 	JAMES R. HILLS

 

 

 

 

 

 

 

 

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