Document:

EXHIBIT
10.1

 

Basanite,
Inc.

2041 NW 15TH Avenue, Pompano Beach, FL
33069

 

 

August 17, 2022

 

Lisa H. Gainsborg, CPA

Gainsborg & Associates PA

301 W Atlantic Avenue Suite 0-5

Delray Beach, FL 3344

 

Re:  Offer Letter –
Basanite Inc. Chief Financial Officer

 

Dear Lisa:

 

We are pleased to present the following
offer of employment with Basanite, Inc. (the “Company”). If you accept, this offer letter (sometimes referred to herein
as this “Agreement”) will govern your employment with the Company.

 

Position and Duties; Employment Status

 

You will serve as the Company’s
Chief Financial Officer (“CFO”), Treasurer and Secretary and will report to the Company’s Chief Executive Officer
(“CEO”) beginning August 17, 2022 (“Start Date”). You shall report regularly to the Company’s
headquarters and may also work remotely in consultation with the CEO.

 

As CFO, you will in general have
overall supervision of and responsibility for the financial and accounting operations of the Company and serve as the Company’s
principal financial and accounting officer for purposes of the Company’s reporting with the Securities and Exchange Commission (“SEC”)
and otherwise. You will be responsible for preparation of the Company’s financial statements and its financial reporting generally.
You will also perform the duties, authorities, and responsibilities customarily associated with the positions of CFO, Treasurer and Secretary
in similarly sized, publicly-traded companies, including oversight of the Company’s compliance with applicable financial and accounting
related laws, rules and regulations and the rules and regulations of the SEC. You shall provide to the Company’s Board of Directors
(including any designated committee thereof, the “Board”) and the CEO, whenever any of them request it, an account
of all your activities as CFO and of the financial condition of the Company and shall perform such other duties and may exercise such
other powers as may be delegated or assigned by the CEO.

 

In performing your duties for the
Company, you shall be permitted to maintain your current consulting practice, provided that you dedicate no less than seventy-five percent
(75%) of your business time and attention to the affairs of the Company. Your employment will be at will, meaning that either you or the
Company may terminate the employment at any time for any reason or no reason on thirty (30) days’ prior written notice (you will
be entitled to your base salary for such 30-day period if your employment is terminated by the Company).

 

Compensation and Benefits

 

Your annual base salary (“Base
Salary”) will be at a rate of One Hundred Twenty-Five Thousand Dollars ($125,000) per year, payable in accordance with the regular
payroll practices of the Company. The Base Salary will be revisited for possible upward adjustment at such time as the Company’s
common stock becomes listed on a national securities exchange (including any tier of The Nasdaq Stock Market).

 

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In addition, you may receive an
annual cash and/or equity in the sole discretion of the Board. Such bonus shall be determined based on such factors as the Board deems
appropriate, including performance targets approved by the Board.

 

You will be eligible for equity
grants pursuant to any Company equity plan approved and adopted by the Board and the Company’s stockholders. Other than your initial
equity granted detailed below, whether you receive any equity grants and the amounts thereof will be determined in accordance with the
metrics approved from time to time by Board.

 

As of the Start Date, you will be
granted 5-year, non-qualified options to purchase Seven Hundred Fifty Thousand (750,000) shares of Company common stock (the “Initial
Option Grant”). The exercise price of the Initial Option Grant shall be the closing price of the Common Stock on the Start Date.
The Initial Option Grant shall vest as follows: (i) options to purchase Five Hundred Thousand (500,000) shares of common stock shall vest
in equal quarterly installments of Sixty-Two Thousand Five Hundred (62,500) options over two (2) years from the Start Date and (ii) options
to purchase Two Hundred Fifty Thousand (250,000) shares of common stock shall vest on the date that the Company reports (via its filings
with the SEC) two (2) consecutive quarters of positive cash flow from operations. The Initial Option Grant shall be further memorialized
in a customary stock option award agreement.

 

You will participate on the same
basis with all other similarly situated officers and employees of the Company in the Company’s standard benefits package made generally
available to all other officers and executives, as may be adopted by the Company from time to time. Nothing herein shall restrict the
Company from modifying or eliminating any Company benefit program, health plan or other fringe benefit at any time.

 

Confidentiality

 

In consideration of your access
to the premises of the Company and/or you access to certain Confidential Information of the Company (as defined below), in connection
with your business relationship with the Company, you hereby represent and agree as follows:

 

a.  Definition.
For purposes of this Agreement the term “Confidential Information” means: (i) any information which the Company possesses
that has been created, discovered or developed in whole or in part by or for the Company, and which has or could have commercial value
or utility in the business in which the Company is engaged; or (ii) any information which is related to the business of the Company and
is generally not known by non-Company personnel. By way of illustration, but not limitation, Confidential Information includes trade secrets
and any information concerning products, processes, formulas, designs, inventions (whether or not patentable or registrable under copyright
or similar laws, and whether or not reduced to practice), discoveries, concepts, ideas, improvements, techniques, methods, research, development
and test results, specifications, data, know-how, software, formats, marketing plans and analyses, business plans and analyses, strategies,
forecasts, customer and supplier identities, contracts and agreements, accounting information, information about the Company’s financial
results of operations, and other information which would an executive officer of a publicly-traded company would reasonably be expect
to keep confidential.

 

b.  Exclusions.
Notwithstanding the foregoing, the term Confidential Information shall not include: (i) any information which becomes generally available
to the public other than as a result of your breach of the confidentiality portions of this Agreement, or any other agreement requiring
confidentiality between the Company and you; (ii) information received from a third party in rightful possession of such information who
is not restricted from disclosing such information; and (iii) information known by you prior to receipt of such information from the Company,
which prior knowledge can be documented and which prior knowledge was not obtained in breach of any duty to the Company.

 

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c.  Documents.
You agree that, without the express written consent of the Company, you will not (except in direct relation to the performance of your
duties as described herein and in the best interest of the Company) remove from the Company’s premises or otherwise keep or store
electronically, any notes, formulas, programs, data, records, machines or any other documents, data or information which in any manner
contain or constitute Confidential Information, nor will you make reproductions or copies of same. You shall promptly return any such
documents or items, along with any reproductions or copies to the Company upon the Company’s demand or at such time as your employment
is terminated.

 

d.  No
Disclosure and Use. You agree that you will hold in trust and confidence all Confidential Information and will not disclose to any
person or entity, directly or indirectly, any Confidential Information or anything relating to such information without the prior written
consent of the Company, except in good faith as may be necessary in the course of the performance of your duties for the Company and in
the best interests of the Company. You further agree that you will not use, directly or indirectly, any Confidential Information without
the prior written consent of the Company, except in good faith as may be necessary in the course of the performance of your duties and
in the best interests of the Company.

 

This Section shall survive termination
of your employment with the Company.

 

Governing Law; Venue

 

This Agreement, the rights
and obligations of the parties hereto, and any claims or disputes relating thereto, shall be governed by and construed in accordance with
the laws of the State of Florida (without regard to its conflict of laws provisions). The parties consent to the personal jurisdiction
of the State of Florida and further agree to the exclusive jurisdiction of the courts of the State of Florida, County of Broward, and
the United States District Court located in Broward County, Florida, as applicable, in connection with, or incident to, any dispute, claim,
case, controversy or matter arising out of or relating to your employment or this Agreement, to the exclusion of the courts of any other
state, territory or country. The parties knowingly, willingly, and voluntarily, WAIVE ALL RIGHT TO TRIAL BY JURY in any such proceedings.

Entire Agreement; No Oral Modification

 

No provision of this Agreement
may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by you and a duly
authorized officer of the Company. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance
with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar
provisions or conditions at the same or at any prior or subsequent time.

This Agreement sets forth
the entire agreement of the parties with respect to the subject matter contained herein and supersedes any and all prior agreements or
understandings between you and the Company with respect to the subject matter hereof. No agreements, inducements or representations, oral
or otherwise, express or implied, with respect to the subject matter hereof have been made by either you or the Company which are not
expressly set forth in this Agreement

 

[Signature Page Follows]

 

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If
you wish to accept employment at the Company under the terms described above, please sign and date this letter and return it to us. Please
retain copies for your records.

 

	 	Sincerely,
	 	 	 
	 	BASANITE, INC
	 	 	 
	 	 	 
	 	By:	/s/ Michael Barbera
	 	 	Name: Michael Barbera
	 	 	Title: Chairman of the Board

 

 

I understand and accept the terms of this employment
offer.

 

 

 

	 s/ Lisa H. Gainsborg
	Lisa H. Gainsborg
	 
	 
	August 17, 2022
	Date
	 

 

 

4EXHIBIT 10.2

 

NON-QUALIFIED STOCK
OPTION AGREEMENT

 

Basanite, Inc., a Nevada
corporation (the “Company”), desiring to afford an opportunity to the Grantee named below to purchase certain shares
of common stock, par value $0.001, of the Company (the “Common Stock”) and to provide the Grantee with an added incentive
as an employee of the Company, hereby grants to Grantee, and the Grantee hereby accepts, an option (“Option”) to purchase
the number of such shares Common Stock optioned as specified below, during the term ending at midnight (prevailing local time at the
Company’s principal offices) on the expiration date of this Option specified below, at the Option exercise price specified below,
subject to and upon the following terms and conditions:

 

1. Identifying Provisions: As used in this Option, the following terms shall have the following respective meanings. This Option
is not intended to be an incentive stock option pursuant to Section 422 of the Internal Revenue Code of 1986, as amended 

 

		(a)	Grantee:
                                            Lisa H. Gainsborg

		(b)	Date
                                            of Grant: August 17, 2022

		(c)	Number
                                            of shares of Common Stock optioned: 750,000 (subject to vesting as detailed below)

		(d)	Option
                                            exercise price per share: $0.109

		(e)	Option
                                            Expiration Date: August 17, 2027, 5:00 pm Eastern Time

 

2. Timing of Purchase and Vesting: The Option vests and is exercisable as follows: (i) options to purchase Five Hundred Thousand
(500,000) shares of Common Stock shall vest in equal quarterly installments of Sixty-Two Thousand Five Hundred (62,500) options over
two (2) years from the Date of Grant; and (ii) options to purchase Two Hundred Fifty Thousand (250,000) shares of Common Stock shall
vest on the date that the Company reports (via its filings with the Securities and Exchange Commission) two (2) consecutive quarters
of positive cash flow from operations.

 

3. Restrictions on Exercise: The following additional provisions shall apply to the exercise of this Option:

 

	 	(i)	Grantee’s
    Death.  If Grantee’s service with the Company terminates by reason of death, this Option may thereafter be exercised,
    but only for the number of shares as to which Grantee was entitled to exercise in accordance with Section 2 above on the date of
    death, by Grantee’s legal representative(s) of Grantee’s estate or by the legatee of Grantee under the will of Grantee,
    until the earlier of (a) nine (9) months from the date of death of Grantee, or (b) the expiration date of this Option.  Any
    further vesting of this Option shall cease and this Option shall terminate on the date of death of Grantee in all other respects.
	 	 	 
	 	(ii)	Grantee’s Disability.  If
    Grantee’s service with the Company terminates by reason of Disability (meaning the inability to perform service for four consecutive
    months due to physical or mental incapacity as certified by a licensed medical doctor), any vested Option in accordance with Section
    2 above may thereafter be exercised by Grantee or his or her personal representative, but only to the extent it was exercisable at
    the time of termination, until the earlier of (a) nine (9) months from the date of termination of service, or (b) the expiration
    date of this Option.  Any further vesting of this Option shall cease and this Option shall terminate on the date of termination
    of service in all other respects.
	 	 	 
	 	(iii)	Other Termination.  If
    Grantee’s service with the Company terminates for any reason other than death or Disability, this Option may thereafter be
    exercised by Grantee, but only to the extent it was vested and exercisable at the time of such termination in accordance with Section
    2 above, until the earlier of (a) 90 days from the date of termination of service, or (b) the expiration date of this Option. Any
    further vesting of this Option shall cease and this Option shall terminate on the date of termination of service in all other respects.

    	 

    	 

    

 

	 	(iv)	Continuity
    of Employment. This Option shall not be exercisable by the Grantee in any part unless at all times beginning with the date of
    grant and ending no more than ninety (90) days prior to the date of exercise, the Grantee has, except for military service leave,
    sick leave or other bona fide leave of absence approved by the Company (such as temporary employment by the United States Government)
    been in the continuous employ of the Company, except that such period of ninety (90) days shall be nine (9) months following any
    termination of the Grantee’s employment by reason of Disability.

 

4. Non-Transferable. The Grantee may not transfer his Option except by will or the laws of descent and distribution. This Option
shall not be otherwise transferred, assigned, pledged, hypothecated or disposed of in any way, whether by operation of law or otherwise,
and shall be exercisable during the Grantee’s lifetime only by the Grantee or his guardian or legal representative.

 

5. Adjustments and Corporate Reorganization. If the outstanding shares of the class then subject to this Option are increased
or decreased, or are changed into or exchanged for a different number or kind of shares or securities, as a result of one or more reorganizations,
recapitalizations, stock splits, reverse stock splits, stock dividends or the like, appropriate adjustments shall be made in the number
and/or kind of shares or securities for which the unexercised portions of this Option may thereafter be exercised, all without any change
in the aggregate exercise price applicable to the unexercised portions of this Option, but with a corresponding adjustment. Such adjustments
shall be made by or under authority of the Company’s Board of Directors whose determinations as to what adjustments shall be made,
and the extent thereof, shall be final, binding and conclusive. Upon the dissolution or liquidation of the Company, or upon a reorganization,
merger or consolidation of the Company as a result of which the outstanding securities of the class then subject to this Option are changed
into or exchanged for cash or property or securities not of the Company’s issue, or any combination thereof, or upon a sale of
substantially all of the property of the Company to, or the acquisition of stock representing more than fifty percent (50%) of the voting
power of the stock of the Company then outstanding, by another corporation or person, this Option shall terminate, unless provision be
made in writing in connection with such transaction for the assumption of options therefore granted under the Plan under which this Option
was granted, or the substitution for such options of any options covering the stock of a successor employer corporation, or a parent
or subsidiary thereof, with appropriate adjustments as to the number and kind of shares and prices, in which event this Option shall
continue in the manner and under the terms so provided. If this Option shall terminate pursuant to the foregoing sentence, the Grantee
shall have the right, at such time prior to the consummation of the transaction causing such termination as the Company shall designate,
to exercise the unexercised vested portions of this Option.

 

6. Exercise, Payment For and Delivery of Stock: This Option may be exercised by the Grantee or other person then entitled to
exercise it by giving three (3) business days’ written notice of exercise to the Company specifying the number of shares of Common
Stock to be purchased and the total purchase price, accompanied by a check to the order of the Company or wire transfer of immediately
available fund in payment of such price. If the Company is required to withhold any amount on account of any present or future tax imposed
as a result of such exercise, the notice of exercise shall be accompanied by a check to the order of the Company in payment of the amount
of such withholding.

 

7. Rights in Shares Before Issuance and Delivery. No person shall be entitled to the privileges of stock ownership in respect
of any shares issuable upon exercise of this Option, unless and until such shares have been issued to such person as fully paid shares.

 

8. Requirements of Law and of Stock Exchanges. By accepting this Option, the Grantee represents and agrees for himself and his
transferees by will or the laws of descent and distribution that, unless a registration statement under the Securities Act of 1933 is
in effect as to shares purchased upon any exercise of this Option, (i) any and all shares so purchased shall be acquired for his personal
account and not with a view to or for sale in connection with any distribution, and (ii) each notice of the exercise of any portion of
this Option shall be accompanied by a representation and warranty in writing, signed by the person entitled to exercise the same, that
the shares are being so acquired in good faith for his personal account and not with view to or for sale in connection with any distribution.

 

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No
certificate or certificates for shares of stock purchased upon exercise of this Option shall be issued and delivered unless and until,
in the opinion of counsel for the Company, such securities may be issued and delivered without causing the Company to be in violation
of or incur liability under any federal, state or other securities law, any requirement of any securities exchange listing agreement
to which the Company may be a party, or any other requirement of law or of any regulatory body having jurisdiction over the Company.

 

9. Disposition of Exercised Shares. In the event the Grantee exercises his option to purchase shares, any subsequent disposition
of those shares by the Grantee on an exchange on which the Company’s shares are being traded shall be done in an orderly manner
and not in a manner that would adversely affect the share price.

 

10. Laws
Applicable to Construction. This Option will be governed by and construed in accordance with the laws and judicial decisions
of the State of Nevada, without regard to the application of the principles of conflicts of laws of Nevada or any other jurisdiction.

 

11. Entire
Agreement. This Option represents the complete understanding and agreement by the parties as to the subject matter hereof, superseding
and replacing any prior agreements, promises and understandings of the parties.

 

IN WITNESS
WHEREOF, the Company has granted this Option on August 17, 2022.

 

	 	BASANITE, INC.
    
	 	 	 
	 	 	 
	 	By: 	/s/
    Simon Kay
	 	 	Name: Simon R. Kay
	 	 	Title: President and Chief
    Executive Officer
	 	 	 
	 	 	 
	 	ACCEPTED:
	 	 	 
	 	 	 
	 	/s/
    Lisa Gainsborg
	 	Lisa H. Gainsborg

 

 

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