Document:

EX-10.2

   

  SECURITY AGREEMENT

  THIS SECURITY AGREEMENT, dated as of October 14, 2022 (as amended, supplemented or otherwise modified from time to time in accordance with the provisions hereof, this “Agreement”), is made by and among Generation Income Properties, L.P., a Delaware limited partnership (the “Grantor”), in favor of Brown Family Enterprises, a Florida limited liability company (the “Secured Party”).

  WHEREAS, on the date hereof, the Grantor has entered into a Secured Promissory Note (as amended, supplemented or otherwise modified from time to time, the “Note”), with the Secured Party, pursuant to which the Secured Party, subject to the terms and conditions contained therein, is to make a loan to the Grantor; and

  WHEREAS, under the terms of this Agreement, the Grantor desires to grant to the Secured Party a security interest in the Collateral, as defined herein, to secure any and all Secured Obligations, as defined herein.

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

  1.DEFINITIONS. All capitalized terms used herein without definitions shall have the respective meanings set forth in the Note. Unless otherwise defined herein, terms used herein that are defined in the Uniform Commercial Code as in effect from time to time in the State of Florida (the “UCC”) shall have the meanings assigned to them in the UCC. However, if a term is defined in Article 9 of the UCC differently than in another Article of the UCC, the term has the meaning specified in Article 9.

  2.GRANT OF SECURITY INTEREST. For value received, the Grantor hereby grants to the Secured Party, to secure the payment and performance in full of all of the Secured Obligations (as defined in Section 3 of this Agreement), a security interest in and pledges and assigns to the Secured Party the Grantor’s right, title and interest in and to the equity interests of (i) GIPVA 2510 Walmer Ave, LLC; (ii) GIPVA 130 Corporate Blvd., LLC; (iii) GIP DB SPE, LLC; (iv) GIPVB SPE LLC; and (v) GIPFL 508 S. Howard Ave LLC (“Collateral”).

  3.SECURED OBLIGATIONS. This Agreement secures the prompt and full performance and payment of all of the indebtedness, obligations, liabilities, and undertakings of the Grantor to the Secured Party, of any kind or description, individually or collectively, whether direct or indirect, joint or several, absolute or contingent, due or to become due, voluntary or involuntary, now existing or hereafter arising (including, all interest, reasonable and documented fees (including attorneys' fees), costs, and expenses that the Grantor is hereby or otherwise required to pay and perform pursuant to the Note or this Agreement, by law or otherwise accruing before and after the filing of any petition in bankruptcy or the commencement of any insolvency, reorganization or like proceeding relating to the Grantor, whether or not a claim for post-petition interest, fees or expenses is allowed in such proceeding), irrespective of whether for the payment of money, under or in respect of the Note or this Agreement, including instruments or agreements executed and delivered pursuant thereto or in connection therewith (the “Secured Obligations”).

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  4.CHANGES IN GRANTOR. The Grantor hereby agrees to notify the Secured Party at least three (3) Business Days before any of the following actions: (a) change in the location of the Grantor's place of business; (b) change in the Grantor's name; (c) change in the Grantor's type of organization; and (d) change in the Grantor's jurisdiction of organization.

  5.GRANTOR REPRESENTATIONS AND WARRANTIES. The Grantor hereby represents, warrants, and covenants that: (a) the Grantor owns or has good and marketable title to the Collateral and no other person or organization can make any claim of ownership of any kind on the Collateral; (b) the Grantor has the full power, authority and legal right to grant the security interest in the Collateral; and (c) this Agreement creates in favor of the Secured Party a valid security interest in the Collateral, securing payment of the Secured Obligations. The Grantor will defend the Collateral against all claims and demands made by all persons claiming either the Collateral or any interest in it.

  6.PERFECTION OF SECURITY INTEREST. The Grantor agrees that at any time and from time to time, at the expense of the Grantor, the Grantor will promptly execute and deliver all further instruments and documents, obtain such agreements from third parties, and take all further action, that may be necessary or desirable, or that the Secured Party may reasonably request, in order to create and/or maintain the validity, perfection or priority of and protect any security interest granted or purported to be granted hereby or to enable the Secured Party to exercise and enforce its rights and remedies hereunder or under any other agreement with respect to any Collateral. The Grantor hereby authorizes the Secured Party to file or record any document necessary to perfect, continue, amend, or terminate its security interest in the Collateral, including, but not limited to, any financing statements, including amendments, authorized to be filed under the UCC, without signature of the Grantor where permitted by law, including the filing of a financing statement describing the Collateral as all assets now owned or hereafter acquired by the Grantor, or words of similar effect.

  7.REMEDIES. If an Event of Default shall have occurred and be continuing, the Secured Party may exercise any rights and remedies available to the Secured Party under the Note and under law, including, but not limited to, those rights and remedies available to the Secured Party under Article 9 of the UCC.

  8.SECURED PARTY RIGHTS. Any and all rights of the Secured Party provided by this Agreement are in addition to any and all rights available to the Secured Party by law, and shall be cumulative and may be exercised simultaneously. No delay, omission, or failure on the part of the Secured Party to exercise or enforce any of its rights or remedies, either granted under this Agreement or by law, shall constitute an estoppel or waiver of such right or remedy or any other right or remedy. Any and all rights of the Secured Party provided by this Agreement shall inure to the benefit of its successors and assigns.

  9.SEVERABILITY AND MODIFICATION. If any of the provisions in this Agreement is determined to be invalid, illegal, or unenforceable, such determination shall 

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  not affect the validity, legality, or enforceability of the other provisions in this Agreement. No waiver, modification or amendment of, or any other change to, this Agreement will be effective unless done so in a separate writing signed by the Secured Party.

  10.NOTICES. Any notice or other communication required or permitted to be given under this Agreement, including, without limitation, notices under Section 4 of this Agreement, shall be given and shall become effective in accordance with the Note.

  11.INCORPORATION. The provisions of Section 8.2 (Attorneys' Fees), 8.3 (Governing Law), 8.4 (Submission to Jurisdiction; Venue), 8.5 (Waiver of Jury Trial), and 8.6 (Counterparts; Integration; Effectiveness) of the Note are incorporated herein, mutatis mutandis, as if a part hereof.

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  IN WITNESS WHEREOF, the undersigned Grantor and Secured Party have executed this Security Agreement as of the date first above written.

  GRANTOR:

  GENERATION INCOME PROPERTIES, L.P.

  By: Generation Income Properties, Inc., a 

  Maryland corporation, its General Partner

   

   

   

  By:/s/ David Sobelman

  		David Sobelman, President

   

   

  SECURED PARTY:

   

  BROWN FAMILY ENTERPRISES LLC

   

   

  By: /s/ Christian Brown

  Name: Christian HG Brown 

  Title: CEO

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    DOCPROPERTY "CUS_DocIDChunk0" 4895-4983-4806.2Exhibit 10.1

 

SHIFT
TECHNOLOGIES, INC.

 

TRANSITION
AND SEPARATION AGREEMENT

 

This Transition and Separation
Agreement (the “Agreement”) is entered into by and between Shift Technologies, Inc., a Delaware corporation (the “Company”)
and George Arison (the “Employee”) (the Company and Employee collectively referred to herein as the “Parties”)
as of the last date set forth on the signature page hereto.

 

1. Transition
Period.

 

(a) The
Parties hereby acknowledge and agree that Employee resigned Employee’s position as Chief Executive Officer of the Company effective
September 1, 2022 (the “Transition Date”). Effective as of the Transition Date, Employee continued to be employed in
a non-executive capacity with the Company from the Transition Date through October 14, 2022 (the “Separation Date”,
and such period from the Transition Date to Separation Date, the “Transition Period”).

 

(b) During
the Transition Period, Employee was responsible for ensuring the orderly transition of his duties and responsibilities as Chief Executive
Officer of the Company and worked with the senior management team of the Company to do so. During the Transition Period, Employee worked
with the Company’s employees, including his current executive assistant, in furtherance of the orderly transition through the Transition
Period. Employee agreed to perform those tasks reasonably assigned to Employee by the Board of Directors of the Company (the “Board”)
consistent with his duties and in furtherance of the achievement of the orderly transition through the Transition Period.

 

(c) The
Company continued to pay Employee’s base salary (at an annual rate of $590,000) through the Separation Date. While employed through
the Separation Date, Employee remained eligible to continue participation in other benefit plans or programs of the Company (including,
for the avoidance of doubt, the Shift Technologies, Inc. Severance Plan for Key Management Employees (the “Severance Plan”)).
For the avoidance of doubt, nothing contained herein limited or otherwise prevented Employee from using his remaining paid time off, including
vacation, holiday, and sick leave, in accordance with the Company’s policies on or before the Separation Date.

 

2. Separation
Date. The Parties hereby acknowledge and agree that Employee’s employment by the Company terminated effective as of the Separation
Date. The Separation Date shall be deemed to be the date of separation from service and the date that employment ends for purposes of
that certain Employment Agreement dated October 13, 2020, as amended on February 24, 2022 (the “Employment Agreement”),
and any applicable Company plans or programs in which Employee participated (including, for the avoidance of doubt, the Severance Plan).

 

3. Accrued
Obligations and Vested Benefits. Employee is entitled to receive the following accrued obligations at his separation from service:
(a) all base salary earned, accrued and owing, but not yet paid, and (b) any benefits accrued and due in accordance with the terms of
any applicable benefit plans or programs of the Company.

 

    1

     

    

 

4. Separation
Payments and Benefits. Provided that Employee signs and does not timely revoke this Agreement (in accordance with Section 22 and 23
herein), and complies with the terms and conditions of this Agreement, the Company shall provide Employee with the following separation
payments and benefits (less federal, state and local tax withholdings and any other deductions required by law or previously authorized
by Employee), in full satisfaction of all termination obligations the Company may have to Employee under any agreement, plan or arrangement,
including without limitation the Employment Agreement and Severance Plan, (the “Separation Benefits”):

 

(a) In
full satisfaction of the provisions of Section 8(c) of the Employment Agreement and the provisions of the Severance Plan:

 

(i) Base
Salary Continuation. The Company shall pay Employee an amount in cash equal to $885,000, to be paid to Employee in equal installments
on the Company’s regular payroll cycles during the eighteen (18) month period commencing on the first payroll date following the
Effective Date (as defined below).

 

(ii) 2022
Prorated Annual Bonus. Employee shall be eligible for the 2022 annual bonus that would have been payable to him under the Employment
Agreement, prorated based on a fraction (i) the numerator of which is the number of days between January 1, 2022 and the Separation
Date, and (ii) the denominator of which is 365. The actual amount of the bonus (if any) shall be determined by the Board (determined based
on actual performance of Company goals, without negative discretion, and provided that any personal goals shall be considered to be fulfilled),
and shall be paid at the same time as such bonuses are otherwise generally paid to other employees of the Company, but no later than March
15, 2023.

 

(iii) Health
Plan Continuation Coverage. If Employee timely and properly elects health continuation coverage pursuant to Employee’s benefit
continuation rights under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), the Company
shall take appropriate steps so as to charge Employee his COBRA continuation premium at the amount paid by active employees for comparable
coverage rather than the full permissible COBRA premium amount that may otherwise be charged for COBRA continuation coverage (and the
Company shall pay the remaining amount of such COBRA premium amount). This reduced COBRA premium shall be applicable for a period that
ends on the eighteen (18) month anniversary of the Separation Date, or the date Employee becomes entitled to duplicative benefits by virtue
of Employee’s subsequent or other employment, whichever occurs first. If the payment by the Company of any portion of the COBRA
premium would violate the nondiscrimination rules or cause the reimbursement of claims to be taxable under the Patient Protection and
Affordable Care Act of 2010, together with the Health Care and Education Reconciliation Act of 2010 (collectively, the “Act”)
or Section 105(h) of the Code (as defined below), the Company-paid portion of the premium will be treated as taxable payments and be subject
to imputed income tax treatment to the extent necessary to eliminate any discriminatory treatment or taxation under the Act or Section
105(h) of the Code.

 

(b) Unvested
Equity Awards. For avoidance of doubt, and solely for purposes of clarity, as provided under the Shift Technologies, Inc. 2020 Omnibus
Equity Compensation Plan (the “Plan”), Employee’s outstanding equity awards held by Employee under the Plan shall
be forfeited and cancelled for no consideration as of the Separation Date.

 

    2

     

    

 

(c) Employee
acknowledges and agrees that, unless he executes this Agreement, he will not otherwise be entitled to receive the consideration set forth
in this Section 4. Employee further acknowledges and agrees that the consideration set forth or referenced in Section 4 constitutes satisfaction
and accord for any and all compensation and benefits due and owing to him pursuant to any plan, agreement or other arrangements relating
to his employment with the Company and termination thereof.

 

5. Directorship.
In accordance with the Employment Agreement, Employee shall not be required to resign from the Board or as Chairman of the Board upon
Employee’s termination of employment on the Separation Date; provided, however, the parties agree that Employee shall resign as
Chairman of the Board at the next Board meeting following the Separation Date. For avoidance of doubt, the foregoing proviso shall not
limit Employee from continuing to serve as a director of the Board after his Separation Date through the end of his current term, which
shall end at the 2023 annual meeting of the shareholders (the “2023 Annual Meeting”), or to stand for re-election at
the 2023 Annual Meeting. During the period that Employee is Chairman of the Board on and after the Separation Date, Employee shall be
entitled to work with the Company’s executive assistants from time to time. Further, Employee agrees that in such capacity as Chairman
of the Board he will make himself available to the senior management of the Company in an advisory capacity, assisting with the orderly
transition of his duties and responsibilities and will work with the senior management team of the Company to do so. For the avoidance
of doubt, Employee will, after his Separation Date, serve as a non-employee director and be compensated commensurate with such role in
accordance with the Company’s applicable non-employee director compensation policy (as may be amended or modified from time to time).

 

6. Post-Separation
Covenants; Dispute Resolution. The Company and Employee acknowledge and agree that the post-separation covenants and dispute resolution
provisions set forth in the Employment Agreement (including, without limitation, Sections 15(c), 16 and 17 of the Employment Agreement)
are incorporated into this Agreement by reference and shall remain in full force and effect following the Separation Date in accordance
with their respective terms; provided however, with prior written approval of the Company with respect to a specified employee, Section
16(a) of the Employment Agreement shall not apply with respect to such specified Company employee and the Company will not seek to enforce
any terms (if any) contained in such employee’s respective agreement (if any) with the Company that would prevent the application
of this proviso. In the event of material breach by Employee of this Agreement, Employee acknowledges and agrees that: (a) the Company
shall have the right to terminate any remaining unpaid Separation Benefits and file a lawsuit against Employee to recover ninety-five
percent (95%) of the Separation Benefits, as such amount is not deemed earned absent Employee’s compliance with this Agreement;
and (b) the remaining five percent (5%) of the Separation Benefits shall constitute full and complete consideration sufficient to support
enforcement of this Agreement against Employee, including, but not limited to, enforcement of Employee’s release of claims set forth
below.

 

    3

     

    

 

7. Release.
In consideration of the Separation Benefits and the Company’s promises in this Agreement:

 

(a) Employee
hereby RELEASES the Company, its past and present parents, subsidiaries, affiliates, predecessors, successors, assigns, related companies,
entities or divisions, its or their past and present employee benefit plans, trustees, fiduciaries and administrators, and any and all
of its and their respective past and present officers, directors, partners, agents, representatives, attorneys and employees (all collectively
included in the term “Company” for purposes of this release), from any and all claims, demands or causes of action which Employee,
or Employee’s heirs, executors, administrators, agents, attorneys, representatives or assigns (all collectively included in the
term “Employee” for purposes of this release), have, had or may have against the Company, based on any events or circumstances
arising or occurring prior to and including the date of Employee’s execution of this Agreement to the fullest extent permitted by
law, regardless of whether such claims are now known or are later discovered, including but not limited to any claims relating to Employee’s
employment or termination of employment by the Company, any rights of continued employment, reinstatement or reemployment by the Company,
and any costs or attorneys’ fees incurred by Employee, PROVIDED, HOWEVER, Employee is not waiving, releasing or giving up any rights
Employee may have to vested benefits under any pension or savings plan, any rights Employee may have as a shareholder of the Company,
to continued benefits in accordance with COBRA, to unemployment insurance, or to enforce the terms of this Agreement, any claims or rights
Employee may have to indemnification, or any other right which cannot be waived as a matter of law. In the event any claim or suit is
filed on Employee’s behalf against the Company by any person or entity, Employee waives any and all rights to receive monetary damages
or injunctive relief in favor of Employee from or against the Company.

 

(b) Employee
agrees and acknowledges: that this Agreement is intended to be a general release that extinguishes all claims by Employee against the
Company; that Employee is waiving any claims arising under Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, 42
U.S.C. §1981, the Americans With Disabilities Act, the Age Discrimination in Employment Act, the Older Worker Benefit Protection
Act, the Employee Retirement Income Security Act of 1974, the Family and Medical Leave Act, the Equal Pay Act, the Worker Adjustment and
Retraining Notification Act, the Uniformed Services Employment and Reemployment Rights Act, the Genetic Information Nondiscrimination
Act, the Fair Credit Reporting Act, the California Fair Employment and Housing Act, the Unruh Civil Rights Act, the California Government
Code, the California Business and Professions Code, the California Family Rights Act, the California Pregnancy Disability Leave Law, the
California Equal Pay Law, the California Crime Victim Leave Law, the California Healthy Family Act, the California Plant Closing Law,
the Virginians with Disabilities Act, the Virginia Human Rights Act, the Virginia Equal Pay Act,, and all other federal, state and local
statutes, ordinances and common law, including but not limited to any claims based on public policy, breach of contract, either expressed
or implied, equitable claims, defamation, retaliation, whistleblowing, negligence, invasion of privacy, infliction of emotional distress,
slander, libel, estoppel, fraud, misrepresentation, and other torts (including intentional torts) and wrongful discharge, and claims for
discretionary bonuses and other discretionary payments to the fullest extent permitted by law; that Employee is waiving all claims against
the Company, known or unknown, arising or occurring prior to and including the date of Employee’s execution of this Agreement; that
the consideration that Employee will receive in exchange for Employee’s waiver of the claims specified herein exceeds anything of
value to which Employee is already entitled; that Employee was hereby advised in writing to consult with an attorney and that Employee
had at least twenty-one (21) calendar days to consider this Agreement; that Employee has entered into this Agreement knowingly and voluntarily
with full understanding of its terms and after having had the opportunity to seek and receive advice from counsel of Employee’s
choosing; and that Employee has had a reasonable period of time within which to consider this Agreement. Employee represents that Employee
has not assigned any claim against the Company to any person or entity; that Employee has no right to any future employment by the Company;
that Employee has received all compensation, benefits, remuneration, accruals, contributions, reimbursements, bonuses, vacation pay, and
other payments, leave and time off due; and that Employee has not suffered any injury that resulted, in whole or in part, from Employee’s
work at the Company that would entitle Employee to payments or benefits under any state worker’s compensation law and the termination
of Employee’s employment by the Company is not related to any such injury.

 

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(c) Employee
expressly waives the benefit of any statute or rule of law which, if applied to this Agreement, would otherwise preclude from its binding
effect any claim against the Company (as defined in Paragraph 6(a) above) not now known by Employee to exist, including any benefit under
Section 1542 of the California Civil Code which states as follows:

 

A
general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at
the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor
or released party.

 

8. Permitted
Conduct. Employee understands that nothing contained in this Agreement limits: (a) Employee’s ability to file a charge
or complaint with the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health
Administration, the Securities and Exchange Commission, law enforcement, or any other federal, state or local governmental agency or commission
(“Government Agencies”); (b) Employee’s right to disclose information about or testify regarding alleged
criminal conduct or unlawful acts in the workplace, including but not limited to discrimination, harassment, retaliation or any other
unlawful or potentially unlawful conduct; or (c) Employee’s ability to file or disclose any facts necessary to receive unemployment
insurance, Medicaid, or other public benefits to which Employee is entitled.  Employee further understands that this Agreement does
not limit Employee’s ability to initiate, testify, assist, comply with a subpoena from, or communicate with any Government Agencies
or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents
or other information, without notice to the Company and that nothing herein precludes Employee from requesting or receiving confidential
legal advice; provided, however, that Employee may not disclose Company information that is protected by the attorney-client privilege,
except as expressly authorized by law. This Agreement does not limit Employee’s right to receive an award for information provided
to any Government Agencies.

 

9. Defend
Trade Secrets Act of 2016. The Company provides notice to Employee pursuant to the Defend Trade Secrets Act of 2016 that:

 

(a) An
individual will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret
that (1) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an
attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (2) is made in a complaint
or other document filed in a lawsuit or other proceeding, if such filing is made under seal; and

 

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(b) An
individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret
to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (1) files any document
containing the trade secret under seal; and (2) does not disclose the trade secret, except pursuant to court order.

 

10. Cooperation.
Following the Separation Date, Employee agrees to cooperate fully with the Company in the defense, prosecution or conduct of any claims,
actions, investigations, or reviews now in existence or which may be initiated in the future against, involving or on behalf of the Company
which relate to events or occurrences that transpired while Employee was employed by the Company (“Matters”). For the
avoidance of doubt, this includes Employee’s cooperation in connection with such Matters, which will include, but not be limited
to, being available for telephone conferences with outside counsel and/or personnel of the Company, and being available for interviews
as reasonably requested. The Company will reimburse Employee for all reasonable out-of-pocket expenses incurred by Employee in connection
with such cooperation and shall pay Employee for such cooperation at an hourly rate consistent with Employee’s base salary as of
immediately prior to the Separation Date.

 

11. No
Unlawful Conduct. Employee represents and warrants that Employee has not engaged in any unlawful or fraudulent conduct in connection
with Employee’s employment or duties with the Company; that Employee is not aware of the Company’s violation of any applicable
law, rule, regulation and/or binding legal guidance; and that Employee is not aware of the Company’s material non-compliance with
any applicable accounting or professional responsibility rule, practice and/or principle.

 

12. Confidentiality;
Non-Disparagement.

 

(a) Employee
agrees to keep the terms of this Agreement confidential and not to disclose the terms of this Agreement to anyone other than Employee’s
immediate family or legal, tax or financial advisors or as otherwise required by law, and agrees to take all steps necessary to assure
confidentiality by those recipients of this information. With reference to Section 162(q) of the Internal Revenue Code of 1986, as amended,
and the corresponding regulations and guidance promulgated thereunder (the “Code”), nothing contained in this Agreement
shall be interpreted or construed as requiring non-disclosure with respect to factual information relating to allegations of sexual harassment
or sexual abuse.

 

(b) Employee
agrees not to make, or cause or attempt to cause any other person to make any statement, written or oral, or convey any information about
the Company (directly or indirectly) or attempt to cause any other person or entity to make any statement, written or oral (including,
but not limited to, statements made in person, by phone, email, text message, online, on social media, or otherwise) which is false, disparaging,
or defamatory towards the Company, as the Company is defined in Section 7(a) of this Agreement. The Company agrees to instruct its executives
officers and directors of the Board not to make, or cause or attempt to cause any other person to make any statement, written or oral,
or convey any information about Employee (directly or indirectly) or attempt to cause any other person or entity to make any statement,
written or oral (including, but not limited to, statements made in person, by phone, email, text message, online, on social media, or
otherwise) which is false, disparaging, or defamatory towards Employee. Nothing in this Section 12(b) shall prohibit the foregoing parties
from testifying truthfully in any forum or to any government agency.

 

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(c) Employee
specifically acknowledges and reaffirms Employee’s ongoing obligations to the Company (1) not to use for any purpose or disclose
any confidential or proprietary information of the Company or a third party to which Employee had access or created during: (i) the period
of Employee’s employment with the Company, or (ii) during his service as a director of the Board, (2) to return after the cessation
of his services to the Company any and all materials containing such confidential or proprietary information to the Company, and (3) to
comply with the obligations set forth in the Employment Agreement and this Agreement.

 

13. No
Admission of Liability. This Agreement does not constitute and will not be construed as an admission by the Company that it has violated
any law, interfered with any rights, breached any obligation or otherwise engaged in any improper or illegal conduct with respect to Employee,
and the Company expressly denies that it has engaged in any such conduct.

 

14. Amendment;
Entire Agreement. This Agreement constitutes the entire agreement between the Parties on the subject matter hereof, and, other than
as specifically set forth in this Agreement, supersedes and replaces all prior negotiations and agreements, whether written or oral. This
Agreement may be modified only by a written instrument signed by the Parties hereto. The Parties acknowledge and agree that Employee and
Company remain subject to all employment and post-employment obligations set forth in the Employment Agreement (subject to modifications
provided herein); provided, however, for the avoidance of doubt, that the foregoing shall not be construed as resulting in the duplication
of any compensation or severance benefits payable to Employee.

 

15. Execution.
This Agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which constitute one
and the same Agreement, and the Parties agree that signatures delivered by hand delivery, U.S. mail, fax, and e-mail/pdf are valid.

 

16. Withholding.
The Company may withhold from any and all amounts payable under this Agreement or otherwise such federal, state, and local taxes as may
be required to be withheld pursuant to any applicable law or regulation.

 

17. Section
409A of the Internal Revenue Code. Although the Company does not guarantee the tax treatment of any payment under this Agreement,
this Agreement and any payments made hereunder are intended to comply with or be exempt from Section 409A of the Code, and, accordingly,
to the maximum extent permitted, this Agreement shall be interpreted in a manner consistent therewith. Any payment under this Agreement
may only be made upon an event and in a manner permitted by Section 409A of the Code, and such payments are intended to be exempt from
Section 409A of the Code under the “short-term deferral” exception, to the maximum extent applicable. Notwithstanding anything
herein to the contrary, if, at the time of Employee’s termination of employment with the Company, Employee is a “specified
employee” (as such term is defined in Section 409A of the Code) and it is necessary to postpone the commencement of any payments
or benefits otherwise payable under this Agreement as a result of such termination of employment to prevent any accelerated or additional
tax under Section 409A of the Code, then the Company will postpone the commencement of the payment of any such payments or benefits hereunder
(without any reduction in such payments or benefits ultimately paid or provided to Employee) that are not otherwise paid within the “short-term
deferral exception” under Treas. Reg. §1.409A-1(b)(4), and the “separation pay exception” under Treas. Reg. §1.409A-1(b)(9)(iii),
until the first payroll date that occurs after the date that is six months following Employee’s “separation of service”
(as such term is defined in Section 409A of the Code) with the Company. If any payments are postponed due to such requirements, such postponed
amounts will be paid in a lump sum to Employee on the first payroll date that occurs after the date that is six months following Employee’s
separation of service with the Company. If Employee dies during the postponement period prior to the payment of postponed amount, the
amounts withheld on account of Section 409A of the Code shall be paid to the personal representative of Employee’s estate within
sixty (60) days after the date of Employee’s death.

 

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For purposes of Section 409A
of the Code, Employee’s right to receive any installment payments pursuant to this Agreement shall be treated as a right to receive
a series of separate and distinct payments. In no event may Employee, directly or indirectly, designate the calendar year of a payment.
All reimbursements and in-kind benefits provided under this Agreement shall be made or provided in accordance with the requirements of
Section 409A of the Code.

 

The Company reserves the right
to amend the provisions of this Agreement at any time and in any manner without Employee’s consent but with notice to Employee solely
to comply with the requirements of Section 409A of the Code and to avoid the imposition of additional tax, interest or income inclusion
under Section 409A of the Code on any payment to be made hereunder. Notwithstanding the foregoing, in no event shall the Company be liable
for any additional tax, interest, income inclusion or other penalty that may be imposed on Employee by Section 409A of the Code or for
damages for failing to comply with Section 409A of the Code.

 

18. Severability.
If any provision, section, subsection or other portion of this Agreement is determined by any court of competent jurisdiction to be invalid,
illegal or unenforceable in whole or in part, and such determination becomes final, such provision or portion will be deemed to be severed
or limited, but only to the extent required to render the remaining provisions and portion of this Agreement enforceable. This Agreement
as thus amended will be enforced so as to give effect to the intention of the Parties insofar as that is possible. In addition, the Parties
hereby expressly empower a court of competent jurisdiction to modify any term or provision of this Agreement to the extent necessary to
comply with existing law and to enforce this Agreement as modified.

 

19. Voluntary
Agreement. Employee hereby agrees and acknowledges that Employee has carefully read this Agreement, fully understands what this Agreement
means, and is signing this Agreement knowingly and voluntarily, that no other promises or agreements have been made to Employee other
than those set forth in this Agreement, and that Employee has not relied on any statement by anyone associated with the Company that is
not contained in this Agreement in deciding to sign this Agreement.

 

    8

     

    

 

20. Governing
Law and Dispute Resolution. This Agreement will be governed by the laws of the State of California. The Parties agree that all disputes
arising under this Agreement will be subject to the Employment Agreement.

 

21. Return
of Company Property. During the Transition Period and through his service as a member of the Board, Employee will maintain the same
access to Company systems (e.g., Company equipment, Company email, Company documents, Company shared drives, etc.) as he did prior to
the Transition Date (the “Company Access”). Upon termination of Employee’s service as a member of the Board,
Employee must return to the Company within 120 days after such termination all Company property previously provided to Employee, including,
but not limited to, any Company owned computer, personal digital assistant, mobile phone, credit cards, keys, key fobs, computer accessories,
and Company documents and materials (however stored), and during such 120-day period, the Company acknowledges and agrees that Employee
may maintain the same Company Access in order to ensure proper record retention and effectuate the necessary transfer of the same to the
Company, provided that, in the event Employee is separated from service on the Board for cause, then the Company shall have the right,
in its the sole discretion and in accordance with the best interests of the Company as may be determined by the Board, to terminate or
otherwise limit Employee’s Company Access. Notwithstanding the foregoing, Employee will be permitted to keep certain Company-provided
property following his termination of service as a member of the Board, which items include two (2) iPads, one (1) computer and one (1)
mobile phone (each of which shall be cleared of all confidential or proprietary information of the Company upon the termination of Employee’s
service as a member of the Board). For the avoidance of doubt, subject to the provisions of this Section 21, Company Access and Company
property remain subject to applicable Company policies, as may be amended from time to time.

 

22. Acceptance.
Employee may accept this Agreement by delivering an executed copy of the Agreement to the Company within twenty-one (21) calendar days
after Employee’s receipt of this Agreement. The Parties agree that any changes to the Agreement, whether material or non-material,
will not extend the 21-day consideration period.

 

23. Revocation.
Employee may revoke this Agreement within seven (7) calendar days after it is executed and delivered by Employee to the Company by delivering
a written notice of revocation to the Company no later than the close of business on the 7th calendar day after this Agreement was signed
by Employee. This Agreement will become effective and enforceable on the 8th calendar day after Employee signs and delivers the Agreement
to the Company (the “Effective Date”), provided Employee has not timely revoked this Agreement. If Employee fails to
timely accept the Agreement or timely revokes this Agreement, the Parties will have no obligations under this Agreement.

 

24. Attorneys’
Fees. The Company shall reimburse Employee for his reasonable legal fees incurred in connection with review of and revisions to this
Agreement, in an amount not to exceed Seven Thousand Five Hundred dollars ($7,500).

 

[Signature Page Follows]

 

    9

     

    

 

WHEREFORE, the Parties have
executed this Agreement on the date or dates set forth below.

 

	 	GEORGE ARISON:
	 	 	 
	 	Name:	/s/ George Arison
	 	Date:	10/17/2022
	 	 	 
	 	SHIFT TECHNOLOGIES, INC.
	 	 	 
	 	By:	/s/ Jeff Clementz
	 	Name:  	Jeff Clementz
	 	Title:	Chief Executive Officer
	 	Date:
    	10/17/2022

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