Document:

Exhibit 4.1

 

NEITHER THIS SECURITY
NOR THE SECURITIES issuable upon exercise hereof HAS BEEN REGISTERED UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES OR “BLUE SKY LAWS,”
AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED ABSENT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT
OR COMPLIANCE WITH RULE 144 PROMULGATED UNDER SUCH ACT, OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL, REASONABLY SATISFACTORY
TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.

 

Void
after 5:00 p.m. Eastern Time on [ ]1, 2027 (the “Expiration Date”)

 

BASANITE, INC.

FORM OF WARRANT TO
PURCHASE SHARES OF COMMON STOCK

This
Warrant is issued to Simon R. Kay (the “Holder”) by Basanite, Inc., a Nevada corporation (the “Company”),
pursuant to the terms of that certain Transition Services Agreement, dated January 20, 2022, by and between the Company and the Holder
(the “TSA”).

1. Purchase of Shares. Subject to the terms and conditions hereinafter set forth, the Holder of this Warrant is entitled,
upon surrender of this Warrant at the principal office of the Company (or at such other place as the Company shall notify the Holder
hereof in writing), to purchase from the Company up to ONE MILLION (1,000,000) shares of the Company’s common stock, par value
$0.001 per share (the “Common Stock”) at the Exercise Price.

2.
Exercise Period. This Warrant is exercisable
immediately upon issuance and shall expire on the Expiration Date. This Warrant and all rights and options hereunder shall expire on
the Expiration Date, and shall be wholly null and void and of no value to the extent this Warrant is not exercised before it expires.

3.
Exercise Price. The initial Exercise Price
of this Warrant shall be $0.33 per share of Common Stock, as adjusted as provided for in Section 8 hereof.

4. Method of Exercise. While this Warrant remains outstanding and is exercisable in accordance with Section 2 above,
the Holder may exercise, in whole or in part, the purchase rights evidenced hereby. Such exercise shall be effected by:

(a)  
the surrender of the Warrant, together with a notice of exercise to the Secretary of the Company at its principal offices during
normal business hours on any business day prior to the Expiration Date; and

(b)  
the payment to the Company of an amount equal to the aggregate Exercise Price for the number of shares of Common Stock being purchased
in the form of certified check payable to the order of the Company or wire transfer of immediately available funds to an account designated
by the Company.

 

———————

1 Date of end of Transition Period.

    	1 

    	 

    

 

The Company agrees
that the shares of Common Stock issuable upon exercise of the Warrants shall be deemed to be issued to the Holder as the record holder
of such shares as of the close of business on the date on which this Warrant shall have been surrendered and payment made for such shares
as aforesaid. Notwithstanding the foregoing, no such surrender shall be effective to constitute the person or entity entitled to receive
such shares as the record holder thereof while the transfer books of the Company for the Common Stock are closed for any purpose (but
not for any period in excess of five (5) days); but any such surrender of this Warrant for exercise during any period while such books
are so closed shall become effective for exercise immediately upon the reopening of such books, as if the exercise had been made on the
date this Warrant was surrendered and for the number of shares of Common Stock and at the Exercise Price in effect at the date of such
surrender.

5.
Cashless Exercise. In lieu of exercising
this Warrant in cash as described in Section 4, this Warrant may also be exercised, in whole or in part, at such time by means of a “cashless
exercise” in which the Holder, upon exercise, shall be entitled to receive a number of shares of Common Stock equal to the quotient
obtained by dividing [(A-B)*(X)] by (A), where:

 

		(A) =	the thirty
                                            (30) day VWAP on the trading day immediately preceding the date on which Holder elects to
                                            exercise this Warrant by means of a “cashless exercise,” as set forth in the
                                            notice of exercise;

 

		(B) =	the Exercise
                                            Price of this Warrant, as adjusted hereunder; and

 

		(X) =	the number
                                            of shares of Common Stock that would be issuable upon exercise of this Warrant in accordance
                                            with the terms of this Warrant if such exercise were by means of a cash exercise rather than
                                            a cashless exercise.

 

Upon a cashless exercise,
the Holder shall receive shares in accordance with the terms of Section 4 above, provided that no cash payment will be required with
the surrendered Warrant and notice of exercise. For purposes of this Section 5, “VWAP” means, for any date,
the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a “national
securities exchange,” the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date)
on the trading market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a trading day from 9:30
a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if the Common Stock is then quoted on the OTCQB or OTCQX, the
volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c)
if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported in
the “Pink Sheets” published by OTC Markets, Inc. (or a similar organization or agency succeeding to its functions of reporting
prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of
a share of Common Stock as determined by the Company’s Board of Directors in good faith.

6. Certificates for Common Stock. Upon the exercise of the purchase rights evidenced by this Warrant, one or more certificates
for the number of shares of Common Stock so purchased shall be issued as soon as practicable thereafter. Notwithstanding the foregoing,
the Company, at its sole discretion, may elect to issue the shares of Common Stock so exercised in uncertificated, book entry form on
the books and records of the Company. 

7. Issuance of Common Stock. The Company covenants that the shares of Common Stock, when issued pursuant to the exercise of
this Warrant, will be duly and validly issued, fully paid and nonassessable and free from all taxes, liens and charges with respect to
the issuance thereof; provided, however, that the Holder shall be required to pay any and all taxes that may be payable in respect of
any transfer involved in the issuance and delivery of any certificate in a name other than that of the then Holder as reflected upon
the books of the Company.

    	2 

    	 

    

 

 

8.
Adjustment of Exercise Price and Number of
Shares of Common Stock. The number of and kind of securities purchasable upon exercise of this Warrant and the Exercise Price shall
be subject to adjustment from time to time as follows:

(a)
Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or
otherwise makes a distribution or distributions on shares of its Common Stock (which, for avoidance of doubt, shall not include any shares
of Common Stock issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger
number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of
shares or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case
the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock outstanding
immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after
such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate
Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 8(a) shall become effective immediately
after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective
immediately after the effective date in the case of a subdivision, combination or re-classification.

(b)
Reclassification, Reorganization and Consolidation. In case of any reclassification, capital reorganization or change in
the capital stock of the Company (other than as a result of a subdivision, combination or stock dividend provided for in Section 8(a)
above), then the Company shall make appropriate provision so that the Holder of this Warrant shall have the right at any time prior to
the expiration of this Warrant to purchase, at a total price equal to that payable upon the exercise of this Warrant, the kind and amount
of shares of stock and other securities and property receivable in connection with such reclassification, reorganization or change by
a Holder of the same number of shares of Common Stock as were purchasable by the Holder of this Warrant immediately prior to such reclassification,
reorganization or change. In any such case appropriate provisions shall be made with respect to the rights and interest of the Holder
of this Warrant so that the provisions hereof shall thereafter be applicable with respect to any shares of stock or other securities
and property deliverable upon exercise hereof, and appropriate adjustments shall be made to the purchase price per share payable hereunder,
provided the aggregate purchase price shall remain the same.

(c)
Notice of Adjustment. When any adjustment is required to be made in the number or kind of shares purchasable upon exercise
of the Warrant the Company shall promptly notify the Holder of such event and of the number of shares of Common Stock or other securities
or property thereafter purchasable upon exercise of this Warrant.

(d)
No Fractional Shares or Scrip. If as a result of any adjustment pursuant to this Section 8, the Holder would be entitled
to receive a fractional interest in a share of Common Stock, the Company will, upon exercise, round down to the nearest whole number
of shares of Common Stock issuable to the Holder. 

    	3 

    	 

    

 

 

9.
Restrictive Legend. The shares of Common
Stock received upon exercise of this Warrant (unless registered under the Securities Act) shall be stamped or imprinted with a legend
in substantially the following form:

“The
shares represented by this Certificate have not been registered under the Securities Act of 1933, as amended (the “SECURITIES Act”),
and have been acquired for investment and not with a view to, or in connection with, the sale or distribution thereof. No transfer of
these shares or any interest therein may be made except: (i) pursuant to an effective registration statement under the SECURITIES Act;
(ii) pursuant to and in accordance with the terms and conditions of Rule 144; or (iii) pursuant to an opinion of counsel satisfactory
to the issuer that such transfer does not require registration under the SECURITIES Act.”

10.
Transfer of Warrant. 

(a)
Limitation on Transfer. The Holder shall not, directly or
indirectly, sell, give, assign, hypothecate, pledge, encumber, grant a security interest in or otherwise dispose of (whether by operation
of law or otherwise) (each a “Transfer”) this Warrant or any right, title or interest herein or hereto, except in
accordance with the provisions of this Warrant. Any attempt to Transfer this Warrant, in whole or in part, or any rights hereunder in
violation of the preceding sentence shall be null and void ab initio and the Company shall not register any such Transfer.

(b)
Transfer Procedures. If the Holder wishes to Transfer this
Warrant to a transferee (a “Transferee”) under this Section 10, the Holder shall give notice to the Company through
the use of the assignment form attached hereto as Exhibit B of its intention to make any Transfer permitted under this Section 10 not
less than five (5) days prior to effecting such Transfer, which notice shall state the name and address of each Transferee to whom such
Transfer is proposed. This Warrant may, in accordance with the terms hereof, be transferred in whole or in part. If this Warrant is transferred
in whole, the assignee shall receive a new Warrant (registered in the name of such assignee or its nominee) which new Warrant shall cover
the number of shares assigned. If this Warrant is transferred in part, the assignor and assignee shall each receive a new Warrant (which,
in the case of the assignee, shall be registered in the name of the assignee or its nominee), each of which new Warrant shall cover the
number of shares not so assigned and in respect of which no such exercise has been made in the case of the assignor and the number of
shares so assigned, in the case of the assignee.

(c)
Transfers in Compliance with Law: Substitution of Transferee.
Notwithstanding any other provision of this Warrant, no Transfer may be made pursuant to this Section 10 unless (a) the Transferee
has agreed in writing to be bound by the terms and conditions hereto, (b) the Transfer complies in all respects with the applicable provisions
of this Warrant, and (c) the Transfer complies in all respects with applicable federal and state securities laws, including, without
limitation, the Securities Act. If requested by the Company in its reasonable judgment, the transferring Holder shall supply to the Company
(x) an opinion of counsel, at such transferring Holder's expense, to the effect that such Transfer complies with the applicable federal
and state securities laws; and (y) a written statement to the Company, in such form as it may reasonably request, certifying that the
Transferee is an "accredited investor" as defined in Rule 501(a) under the Securities Act.

    	4 

    	 

    

 

 

11.
Rights of Stockholders. No holder of this Warrant shall be entitled, as a Warrant holder, to vote or receive dividends
or be deemed the holder of shares of Common Stock or any other securities of the Company which may at any time be issuable on the exercise
hereof for any purpose, nor shall anything contained herein be construed to confer upon the holder of this Warrant, as such, any of the
rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders
at any meeting thereof, or to give or withhold consent to any corporate action (whether upon any recapitalization, issuance of stock,
reclassification of stock, change of par value, consolidation, merger, conveyance, or otherwise) or to receive notice of meetings, or
to receive dividends or subscription rights or otherwise until the Warrant shall have been exercised and the shares of Common Stock purchasable
upon the exercise hereof shall have become deliverable, as provided herein.

12.
Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the shares of Common
Stock issuable upon exercise of this Warrant, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory
to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant
or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of
such cancellation, in lieu of such Warrant or stock certificate.

13.
Authorized Shares. The Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized
and unissued Common Stock a sufficient number of shares to provide for the issuance of all of the shares issuable upon the exercise of
any purchase rights under this Warrant. 

14.
Entire Agreement. This Warrant and the TSA constitute the entire agreement between the Company and the Holder with respect
to the Warrant.

15.
Notices. All notices and other communications required or permitted hereunder shall be in writing and shall be effective
when given in accordance with the terms of the TSA. 

16.
Governing Law; Dispute Resolution. This Warrant and all actions arising out of or in connection with this Warrant shall
be governed by and construed in accordance with the internal laws of State of Nevada, without regard to conflict of law principles that
would result in the application of any law other than the law of the State of Nevada. Any dispute, controversy, or claim between arising
directly or indirectly out of or connected with this Warrant shall be resolved by binding arbitration on the terms provided for in Section
17 of the TSA.

17.
Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights evidenced hereby shall inure
to the benefit of and be binding upon the successors and permitted assigns of the Company. The provisions of this Warrant are intended
to be for the benefit of any Holder from time to time of this Warrant.

18.
Amendment and Waiver. No provision of this Warrant shall be waived or modified without the written consent of the Company
and the Holder.

    	5 

    	 

    

 

 

19.
Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining
provisions of this Warrant.

 

Issued this ___ day of ____________, 2022

 

	 	BASANITE, INC.
	 	 	 
	 	By:  	 
	 	 	Name:  
	 	 	Title:    

    	6 

    	 

    

 

EXHIBIT A
TO WARRANT

NOTICE OF
EXERCISE

 

		TO:	Basanite, Inc.

Attention: Chief
Executive Officer

 

1.       The
undersigned hereby elects to purchase __________ shares of Common Stock pursuant to the terms of the attached Warrant).

 

2.       The
undersigned elects to exercise the attached Warrant:

 

[ ] by means of a cash payment,
and tenders herewith payment in full for the purchase price of the shares being purchased, together with all applicable transfer taxes,
if any.

 

[ ] by the cancellation of such
number of shares of Common Stock underlying the Warrant as is necessary, in accordance with the formula set forth in Section 5, to exercise
this Warrant with respect to the maximum number of shares of Common Stock purchasable pursuant to the cashless exercise procedure set
forth in Section 5.

 

3.       Please
issue a certificate or certificates representing said shares of Common Stock in the name of the undersigned or in such other name as
is specified below:

 

_________________________________

(Name)

_________________________________

 

_________________________________

(Address)

 

 

	 	 	 
	 	 	(Signature)
	 	 	 
	 	 	 
	 	 	(Name)
	 	 	 
	 	 	 
	(Date)	 	(Title)

 

 

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EXHIBIT B
TO WARRANT

FORM OF TRANSFER

(To be signed only upon
transfer of Warrant)

FOR VALUE RECEIVED, the undersigned
hereby sells, assigns and transfers unto _______________________________________________ the right represented by the attached Warrant
to purchase ____________ shares of Common Stock of Basanite, Inc. to which the attached Warrant relates.

 

Dated: ____________________

 

 

	 	 
	 	(Signature must conform in all respects to name of Holder
    as specified on the face of the Warrant)
	 	 
	 	 
	 	Address:	 
	 	 	 
	 	 	 

Signed in the
presence of:

 

_____________________________

 

 

 

8Exhibit 10.1

 

TRANSITION SERVICES AGREEMENT

 

This TRANSITION SERVICES AGREEMENT,
executed as of January 20, 2022 and effective as of January 1, 2022 (the “Effective Date”), is entered into by and
between Basanite, Inc., a Nevada corporation (collectively with its subsidiaries, the “Company”), and Simon R. Kay
(“Kay”). The Company and Kay are sometimes referred to herein as each, a “Party” and collectively
as the “Parties.”

 

WHEREAS, Kay is currently
serving as Acting Interim Chief Executive Officer, President and Chief Financial Officer of the Company pursuant to the terms of a Consulting
Agreement, dated January 13, 2020 (as amended and/or supplemented from time to time, the “Consulting Agreement”);

 

WHEREAS, the Parties have
mutually agreed that Kay will transition from the Company but provide services to the Company while the Company searches for a permanent
principal executive officer for the Company (the “New PEO”); and

 

WHEREAS, the Parties desire
to set forth the terms of such transaction services, which shall be as provided for herein.

 

NOW, THEREFORE, in consideration
of the foregoing, the mutual agreements and covenants contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged by the Parties, the Parties hereby agree as follows:

 

1. Consulting
Agreement; Services in Transition Period. 

 

(a)
The Company and Kay hereby agree that the Consulting Agreement shall be terminated as of the Effective
Date (except as provided in Section 1(e) hereof) and replaced by this Agreement; provided however, that Kay shall remain liable
for any breach of the Consulting Agreement pursuant to its terms which may have occurred prior to the Effective Date (including, without
limitation, such terms as relate to confidentiality). The Parties agree that the mutual 30-day notice period for termination of the Kay
Agreement is waived and superseded by the terms of this Agreement.

 

(b)
For the period beginning on the Effective Date and ending fourteen (14) days following the Company’s
hiring of a New PEO, further subject to the period ending date occurring no earlier than February 28, 2022 and no later than June 30,
2022, (the “Transition Period”), Kay shall:

 

(i)
provide services to the Company as a consultant to the Company in the capacity as Acting Interim
Chief Executive Officer and President, consistent with past practice, with Kay reporting regularly on his duties to, and taking direction
from, the Chairman of the Board of Directors of the Company (the “Board”) or any member of the Board designated by
the Chairman of the Board;

 

(ii) shall faithfully, honestly and diligently serve the Company, and shall devote substantially all of
his business time and attention to the business of the Company, using his best efforts to promote the interests of the Company and following
the reasonable and lawful instructions of the Board of Directors of the Company (the “Board”); 

 

(iii) not
be required to provide services as Acting Interim Chief Financial Officer of the Company (as such duties will be assumed by other
Company personnel);

    	1 

    	 

    

 

 

(iv)
upon the hiring of the New PEO, assist in the transition of the New PEO to such position by providing
the New PEO with all applicable background information regarding the business and affairs of the Company and related assistance; and

 

(v)
carry out his duties in a manner consistent with and in compliance with all present and future requirements
of the Board and the requirements of all applicable federal and state laws and regulations.

 

(c)
Notwithstanding the time and attention required to perform his services to the Company hereunder
during the Transition Period, but subject to Sections 3 and 4 hereof, Kay shall be permitted to seek other employment during the Transition
Period, provided that such activity does not unreasonably interfere with the performance of Kay’s duties to the Company. 

 

(d)
During the Transition Period, Kay shall continue to have use of his basaniteindustries.com email
address to send and receive emails in connection with the performance of his services, and Kay shall have access to the Company’s
facilities in accordance with past practice under the Consulting Agreement. 

 

(e)
During the Transition Period, Kay shall disclose the nature and terms of this Agreement to any applicable
third party and shall not represent to any third party any purported facts or circumstances regarding his business relationship with the
Company other than as provided for herein. 

 

(f) At the conclusion of the Transition Period Kay shall: (i) cease to have access to his basaniteindustries.com
email address as well as his Company computer and the Company’s computer servers and confidential information and (ii) return to
the Company all Company property, as well as all documents and data received or generated in connection with his services to the Company
under the Consulting Agreement and this Agreement, including, without limitation, his computer, files, documents, correspondence and other
papers (including in electronic form), relating to the business and affairs of the Company.

 

(g)
During the Transition Period, the confidentiality and intellectual property-related provisions of
the Consulting Agreement shall continue in full force and effect as if incorporated herein.

 

(h)
While the Parties do not presently anticipate the need for the Transition Period to be extended beyond
the period provided for herein, the Transition Period may be extended by mutual written agreement of the Company and Kay. 

 

2. Compensation;
Expenses; Transition Payment. 

 

(a)
During the Transition Period, Kay shall receive a cash fee (payable in accordance with the Company’s
current payroll practices) based on an annual fee amount of Three Hundred Fifty Thousand Dollars ($350,000) per year (the “Fee”).

 

(b)
During the Transition Period, Kay shall also be entitled to (i) expense reimbursement and (ii) use
of his Company computer and (iii) access to Company health/dental/vision
insurance for him and his family (the costs thereof to be paid by Kay), in each case consistent with past practice under the Consulting
Agreement. 

    	2 

    	 

    

 

 

(c)
In addition, at the conclusion of the Transition Period, and predicated on Kay’s compliance
with the terms of this Agreement, the Company shall issue to Kay a warrant (in customary, mutually agreeable form) to purchase 1,000,000
shares of Company common stock, which warrant shall (i) have an exercise price per share of $0.33 and (ii) contain a customary “cashless
exercise” provision (such warrant, the “Transition Payment”). Following the issuance of the Transition Payment,
Kay shall not be entitled to any further payments or consideration of any kind from the Company.

 

3.
Non-Solicitation of Customers. In consideration
of the Transition Payment and the other agreements of the parties hereunder, Kay agrees that during and for a period of one (1) year
following the termination of the Transition Period for any reason, Kay shall not, directly or indirectly, solicit or attempt to solicit
any business from any of the Company’s customers or prospective customers for the purposes of providing products or services that
are competitive with those provided by the Company.

 

4.
Covenant Against Competition. In consideration
of the Transition Payment and the other agreements of the parties hereunder, Kay agrees that during and for a period of one (1) year
following the termination of the Transition Period for any reason, Kay shall refrain from, throughout the United States, directly or
indirectly, owning, managing, operating, controlling or financing, or participating in the ownership, management, operation, control
or financing of, or being connected with or having any interest in, or otherwise taking any part as a stockholder, member, director,
manager, officer, employee, consultant, independent contractor, partner or otherwise in, any business that competes with the Company
as of the termination of the Transition Period, with the exception of the passive ownership of less than two percent (2%) of a publicly
traded company.

 

5.
Non-Recruiting of Company Personnel.
In consideration of the Transition Payment and the other agreements of the parties hereunder, Kay agrees that during and for a period
of one (1) year following the termination of the Transition Period for any reason, Kay will not directly or indirectly recruit, or attempt
to recruit, any employee of the Company, or induce or attempt to induce any employee of the Company, to terminate or cease employment
with the Company. 

 

6.
Non-Disparagement. During and following
the conclusion of the Transition Period, Kay and the Company’s Board members and named executive officers each undertake not to
make any comments in writing or orally (including to employees, shareholders, directors, or customers or suppliers of the Company, whether
private or public) that denigrates or criticizes or may otherwise be detrimental to their respective reputations. 

 

7.
Waiver and Release/Indemnification.
In consideration of the Company engaging Kay to provide services during the Transition Period, issuance of the Transition Payment to
Kay, and agreeing to the other arrangements in this Agreement, at the conclusion of the Transition Period, Kay shall sign a Waiver and
General Release in the form attached hereto as Annex A in respect of matters occurring on or prior to the conclusion of the Transition
Period. In the event an action is brought against Kay in his individual or representative capacity as a result of any actions taken by
him as a result of or related to the services provided either under this Agreement or service provided during the term of the Consulting
Agreement, then Company shall indemnify and hold Kay harmless for any liability for which he is found to be liable; provided, however,
that the Company shall not be responsible for indemnification to the extent the actions in questions constitute fraud, willful misconduct
or gross negligence by Kay. Such indemnification includes, but is not limited to, the payment of reasonable attorneys’ fees and
costs necessary to defend such action through the exhaustion of appeals.

    	3 

    	 

    

 

 

8.
Term; Termination. 

 

(a)
This term of this Agreement shall be from the Effective Date through the conclusion of the Transition
Period as provided for herein. 

 

(b)
Either the Company or Kay may terminate this Agreement at any time during the Transition Period (i)
by their mutual written agreement, whereupon all fees due or accrued to Kay hereunder shall be promptly paid by the Company (including,
for the avoidance of doubt, the Transition Payment) or (ii) upon material breach of this Agreement by the Company or Kay, provided the
non-breaching Party has provided with written notice of the material breach to the breaching Party and an opportunity to cure such material
breach within ten (10) days after receipt such written notice. In addition, Kay’s failure to observe the provisions of Section 1(f),
3, 4 and 5 hereof shall be deemed a basis by the Company to immediately terminate this Agreement (which shall not be the Company’s
exclusive remedy for such breach). 

 

(c)
In the event of termination by Kay under clause (b)(ii) above, Kay shall be entitled to prompt issuance
of the Transition Payment. In the event of termination by the Company under clause (b)(ii) above or by the Company in the event of Kay’s
breach of Section 1(f), 3, 4 and 5 hereof, Kay shall forfeit his right to receive the Transition Payment.

 

9.
No Further Consideration. Except as
otherwise expressly provided in this Agreement, Kay confirms, acknowledges and agrees that he has no claims for, and hereby releases
the Company and its affiliates from any claims for compensation or remuneration or rights to participate any plan or benefit program
of the Company.

 

10. Cooperation. Kay agrees to provide reasonable assistance to the Company (including assistance
with litigation matters), upon the Company’s request, concerning, related to or in connection with Kay’s business association
with the Company (whether under the Consulting Agreement, this Agreement or otherwise). In consideration for such cooperation, but only
following the Transition Period, the Company will compensate Kay for the time Kay spends on such cooperative efforts at an hourly rate
of $150) and the Company will reimburse Kay for his reasonable out-of-pocket expenses that he incurs in connection with such cooperative
efforts.

 

11. Notice. Any notice or communication required or permitted hereunder shall be in writing and
either delivered personally, emailed or sent by overnight mail via a reputable overnight carrier, or sent by certified or registered mail,
postage prepaid, and shall be deemed to be given and received (a) when so delivered personally, (b) when sent, with affirmative confirmation
of receipt, if sent by email, (c) one (1) business day after being sent, if sent by reputable, internationally recognized overnight courier
service or (d) three (3) business days after the date of mailing by registered or certified mail (prepaid and return receipt requested),
in any case, to the address below or to such other address or addresses as such person may hereafter designate by notice given hereunder:

	
     

    if to the Company:
	
     

    Basanite, Inc.

    2041 NW 15th Avenue

	 	
    Pompano Beach, FL 33069

    Attention: ___________________

    Email: _____________________

	 	 
	if to Executive:	
    Simon R. Kay

    _____________________

    _____________________

	 	Email: _____________________

 

    	4 

    	 

    

 

 

12. Entire Agreement. This Agreement contains the entire, integrated agreement between the Parties
in respect of Kay’s relationship to the Company as of the Effective Date, superseding all prior or contemporaneous promises, discussions,
agreements or understandings of the Parties.

 

13. Amendments. Any amendment, modification, or supplement to or wavier of this Agreement must
be made in a writing signed by the Parties in order to be valid.

 

14. Non-Waiver; Construction; Counterparts. The failure in any one or more instances of a Party
to insist upon performance of any of the terms, covenants or conditions of this Agreement, to exercise any right or privilege conferred
in this Agreement, or the waiver by that party of any breach of any of the terms, covenants or conditions of this Agreement, will not
be construed as a subsequent waiver of any such terms, covenants, conditions, rights or privileges, but the waiver will continue and remain
in full force and effect as if no such forbearance or waiver had occurred. No waiver is effective unless it is in writing and signed by
an authorized representative of the waiving party. This Agreement will be construed fairly as to both Parties and not in favor of, or
against, either party, regardless of which Party prepared the Agreement. This Agreement may be executed in multiple counterparts, each
of which will be deemed to be an original (including counterparts executed and delivered by electronic means), and all such counterparts
will constitute but one instrument.

 

15. Survival. The terms of this Agreement or the Consulting Agreement that, by their terms, are
intended to survive the expiration or earlier termination of this Agreement shall survive in accordance with such terms. 

 

16. Invalid Provisions. In case a provision of this Agreement is or becomes invalid, inapplicable
or unenforceable in whole or in part, this shall not affect the validity of the remaining provisions. The invalid, inapplicable provision
shall be replaced with an appropriate provision that, to the extent legally permissible, comes closest to what the Parties intended or
would have intended had they considered the matter from the outset. This shall also apply if a provision is or becomes invalid on account
of the scope or extent of an obligation or a time period. In such case, the legally permissible scope or extent of obligation or time
period shall apply.

 

17. Governing Law. This Agreement shall be governed by and construed in accordance with the laws
of the State of Nevada, without regard to its principles of conflicts of law.

 

18. Dispute Resolution. Any dispute, controversy, or claim between the Parties arising directly
or indirectly out of or connected with this Agreement and/or the Parties’ business relationship shall be resolved by binding arbitration
conducted pursuant to the Federal Arbitration Act and in accordance with the Rules of the American Arbitration Association (the “AAA”)
in effect at the time. The Parties agree that before proceeding to arbitration, they will endeavor to resolve their dispute(s) between
themselves in good faith for a period not to exceed thirty (30) days. If the Parties are unable to resolve their dispute as such, the
parties agree that before proceeding to arbitration, they will mediate their dispute(s) before a mutually selected mediator. If the parties
are unable to mutually select a mediator within thirty (30) days (or as otherwise agreed), then either party may request the AAA’s
assistance in appointing a mediator. If the parties are unable to mediate a resolution to their dispute(s) within sixty (60) days of the
commencement of the mediation process, then either party may proceed to initial arbitration proceedings. Any arbitration will be conducted
by an arbitrator selected by the AAA, who shall have experience in the matters presented in the dispute. All such disputes, controversies
or claims will be conducted by a single arbitrator. The arbitration shall be conducted pursuant to rules of the AAA in effect at the time.
The arbitrator may award any relief available in a court of competent jurisdiction. The resolution of the dispute by the arbitrator will
be final, binding, non-appealable (except as provided by the Federal Arbitration Act) and fully enforceable by a court of competent jurisdiction
pursuant to the Federal Arbitration Act. The arbitration award will be in writing and will include a statement of the reasons for the
award. The arbitration will be held at the offices of the AAA in Ft. Lauderdale, Florida, or as otherwise agreed to by the Parties. The
Parties will equally bear all AAA and arbitrator’s fees and costs. The arbitrator may award reasonable attorneys’ fees and/or
costs to the prevailing party. 

 

    	5 

    	 

    

 

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

	BASANITE, INC.	 	 
	
     

    By:
	
     

    /s/ Michael Barbera
	 	
     

    /s/ Simon R. Kay

	 	Name: Michael Barbera	 	Simon R. Kay
	 	Title: Chairman of the Board	 	 

 

 

    	6 

    	 

    

 

Annex A

 

WAIVER AND GENERAL RELEASE

 

In consideration for the payments provided for and
promises contained in the Transition Services Agreement, dated January 20, 2022 (the “Agreement”; with capitalized
terms used but not otherwise defined in this Release shall have the meanings ascribed to such terms in the Agreement), and except for
claims or rights arising under the Agreement, Simon R. Kay specifically waives, releases and forever discharges the Released Parties (as
defined below) of any and all claims arising from or relating to Kay’s business association with the Company based on any act, event
or omission occurring from the beginning of the world to the date Kay executes this Release, including any claims which could be asserted
now or in the future, under common or statutory law, including, but not limited to, breach of express or implied contract, wrongful termination,
retaliation, harassment, discrimination, emotional distress, defamation, or violation of public policy; any claims for compensatory time,
accrued vacation, accrued sick time, bonus, and any other claims of any nature whatsoever in law or in equity (including , but not limited
to, any claim under any severance policy); any and all claims for attorneys’ fees, costs, expenses disbursements; any policies,
practices, or procedures of the Company or its affiliates; any federal or state statutes or regulations, including, but not limited to,
Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. §2000e et seq., the Civil Rights Act of 1866, 1871, and 1991, the
Age Discrimination in Employment Act, 29 U.S.C. §621 et seq., the Older Workers Benefits Protection Act of 1990, the Americans With
Disabilities Act, as amended, 42 U.S.C. §12101 et seq., the Americans With Disabilities Amendments Act, the Employee Retirement Income
Security Act, 29 U.S.C. §1001 et seq., the Consolidated Omnibus Budget Reconciliation Act, 29 U.S.C. §1166(a)(4), the Rehabilitation
Act of 1973, the Older Worker’s Benefit Protection Act, 29 U.S.C. §621 et seq., the Family and Medical Leave Act, the False
Claims Act, the federal Whistleblower Protection Statutes, the Sarbanes-Oxley Act (to the extent permitted), any equivalent or other similar
laws under the State of Florida; and any provision of any other law, common or statutory, of the United States, the State of Florida,
or any other state, and/or any provision of any statute, regulation, local law or ordinance. The term “Released Parties”
means the Company and its officers, directors, shareholders, partners, employees, attorneys and agents, and their predecessors, successors
and assigns (all of whom are expressly deemed third-party beneficiaries hereof)

 

Nothing in this Agreement shall prohibit or interfere
with Kay’s right to bring any action to enforce the terms of the Agreement or this Release. However, except where otherwise prohibited
by law, the consideration provided to Kay in the Agreement shall be the sole relief to Kay for all claims that Kay previously asserted
or could have asserted.

 

By executing this Release, Kay acknowledges and agrees
that: (i) he fully understands the terms and conditions of this Release and signs it knowingly and voluntarily; (ii) he has had an opportunity
and has been advised to consult with an attorney to review this Release; and (iii) he is receiving certain consideration as described
in the Agreement and said consideration is beyond anything of value to which Kay already would be entitled;

 

PLEASE READ CAREFULLY. THIS WAIVER AND GENERAL
RELEASE INCLUDES A RELEASE OF KNOWN AND UNKNOWN CLAIMS EXCEPT FOR CLAIMS UNDER THE AGREEMENT. THIS RELEASE SHALL NOT BECOME EFFECTIVE
UNTIL THE EIGHTH (8TH) DAY AFTER EXECUTIVE EXECUTES THIS RELEASE. SUCH EIGHTH (8TH) DAY SHALL BE THE EFFECTIVE DATE OF THIS RELEASE.

 

 

___________________________Date: ______________________

Simon R Kay

 

 

7

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