Document:

Exhibit 10.22

 

Execution Version

 

CREDIT FACILITY TERMINATION
AGREEMENT

 

THIS CREDIT FACILITY
TERMINATION AGREEMENT (this “Termination Agreement”), dated as of October 21, 2015, is entered into by and among
GOLUB CAPITAL BDC REVOLVER FUNDING LLC, an Delaware limited liability company (the “Borrower”), GOLUB CAPITAL
BDC, INC., a Delaware corporation (the “Servicer”), U.S. BANK NATIONAL ASSOCIATION (“U.S. Bank”),
a national banking association, and THE PRIVATEBANK AND TRUST COMPANY (“PrivateBank”), an Illinois banking association.
Capitalized terms used but not otherwise defined herein have the meanings ascribed to them in the Credit Agreement (as defined
below).

 

RECITALS

 

WHEREAS, reference
is made to the following agreements entered into in connection with the establishment of a revolving credit facility for the benefit
of the Borrower on November 22, 2013:

 

		A.	The Credit Agreement (the “Credit Agreement”), dated as of November 22, 2013,
as amended by that certain Amendment No. 1 to Credit Agreement dated as of November 24, 2014, by and among the Borrower, as borrower,
the Servicer, as servicer, each of the Lenders from time to time party thereto and PrivateBank, as administrative agent (the “Administrative
Agent”);

 

		B.	The Securities Account Control Agreement, dated as of November 22, 2013, by and among the Borrower,
as debtor, the Servicer, as servicer, and PrivateBank, as securities intermediary and administrative agent;

 

		C.	The Collateral Custodian Agreement, dated as of November 22, 2013, by and among the Borrower, as
borrower, PrivateBank, as administrative agent, U.S. Bank, as collateral custodian, and the Servicer, as servicer;

 

		D.	The Securities Account Control Agreement, dated as of November 22, 2013, by and among the Borrower,
as borrower, PrivateBank, as administrative agent, U.S. Bank, as custodian, and the Servicer (solely with respect to Section 5
thereof);

 

		E.	The Variable Funding Note (the “Note”) issued by the Borrower on November 22,
2013 for the benefit of and payable to the order of PrivateBank;

 

		F.	The Assignment (Sale) Agreement, dated as of November 22, 2013, by and between the Servicer, as
transferor, and the Borrower, as transferee;

 

		G.	The Master Letter of Credit Agreement, dated as of November 14, 2013, issued by the Borrower, as
applicant, in favor of PrivateBank;

 

		H.	That certain letter agreement, dated as of November 22, 2013, by and between PrivateBank and the
Borrower; and

 

    	 	 	 

    	 	 	 

    

 

		I.	All other ancillary documents and agreements issued or executed, as applicable, in connection with
the Credit Agreement;

 

The agreements listed
under A through I above are referred to collectively as the “Credit Facility Documents”;

 

WHEREAS, the
Borrower desires to pay in full all Aggregate Unpaids outstanding under the Credit Agreement and all other amounts owed under the
Credit Facility Documents (the “Pay-Off Amount”), which amount shall include, without limitation, amounts owing
to the Administrative Agent, the Issuing Lender, each Lender, all assignees and participants of each Lender, any sub-agent of the
Administrative Agent, U.S. Bank, the Servicer and any indemnities owing under or in connection with the Credit Agreement or any
other Credit Facility Document (the “Relevant Parties”) as listed on Schedule I hereto;

 

WHEREAS, upon
payment of the Pay-Off Amount, the parties hereto desire to terminate the Credit Facility Documents on the date hereof

 

NOW, THEREFORE,
based upon the above recitals, the mutual premises and agreements contained herein, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as
follows:

 

AGREEMENT

 

1.        Termination.
Upon receipt by the Relevant Parties of the Pay-Off Amount on the date hereof (the “Termination Date”), each
party to each of the Credit Facility Documents agrees that each of the Credit Facility Documents to which it is a party or with
respect to which it has rights, and all of such party’s rights and obligations thereunder, have terminated on the Termination
Date, and as of the Termination Date, the Borrower has satisfied all of the Borrower’s obligations under each of the Credit
Facility Documents and has no further obligations to any such party except, in each case, for those provisions which survive by
their terms (such as indemnifications and non-petition covenants). The Administrative Agent shall cause the delivery of the Note
to Golub Capital, 150 South Wacker Drive, Suite 800, Chicago, IL 60606, Attention: Sang Lee, and from and after the Termination
Date, the Note outstanding under the Credit Agreement shall be considered redeemed, paid in full and no longer outstanding.

 

2.        Lien Termination.
Upon the Termination Date, the security created under the Credit Agreement is hereby released and discharged, and the Administrative
Agent, the Borrower and the Servicer hereby authorize Dechert LLP to file termination statements (Form UCC-3) with respect to all
UCC-1 financing statements filed pursuant to the Credit Agreement or any other Credit Facility Document as set forth on Schedule
II hereto.

 

3.        Administrative
Agent Authority. The Borrower, Servicer and Administrative Agent hereby authorize and direct U.S. Bank to execute, deliver
and perform this agreement.

 

    	 	 	 

    	 	 	 

    

 

4.        Unconditional
Waiver. Notwithstanding anything to the contrary in any of the Credit Facility Documents, each party to each of the Credit
Facility Documents agrees to waive any notice requirements (including notice periods) and condition precedents applicable to termination
under the Credit Facility Documents.

 

5.        Representations
and Warranties. Each party to this Termination Agreement hereby represents, warrants and acknowledges to all other parties
as of the date hereof that: (i) it has full power and authority, and has taken all action necessary, to execute and deliver this
Termination Agreement and to fulfill its obligations hereunder and to consummate the transactions contemplated hereby, and (ii)
this Termination Agreement has been duly executed and delivered by it and constitutes its legal, valid and binding obligation,
enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, winding-up, fraudulent conveyance, reorganization,
moratorium and similar laws affecting creditors’ rights and remedies generally, and subject to general principles of equity
(regardless of whether enforcement is sought in a proceeding at law or in equity).

 

6.        Miscellaneous.
This Termination Agreement, including without limitation, the representations, warranties, covenants and indemnities contained
herein, shall be binding upon, be enforceable by, and inure to the benefit of the parties to this Termination Agreement and their
respective successors and assigns. This Termination Agreement may be executed in any number of counterparts, each of which, when
so executed and delivered, shall be an original, but all of which together shall constitute one agreement binding on the parties.
Delivery of an executed counterpart by fax or e-mail shall be effective as delivery of a manually executed counterpart of this
Termination Agreement. THIS TERMINATION AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF
NEW YORK.

 

[Signatures to follow.]

 

    	 	 	 

    	 	 	 

    

 

IN WITNESS WHEREOF,
the undersigned have executed and delivered this Termination Agreement as of the date first stated above.

 

	 	GOLUB CAPITAL BDC REVOLVER FUNDING LLC
	 	 	 	 
	 	 	By:	/s/ Ross A. Teune
	 	 	 	Name: Ross A. Teune
	 	 	 	Title: Chief Financial Officer

 

[Signatures continue on following page.]

 

    	 	GCRF II
 Credit Facility Termination Agreement

    	 	 	 

    

 

IN WITNESS WHEREOF,
the undersigned have executed and delivered this Termination Agreement as of the date first stated above.

 

	 	GOLUB CAPITAL BDC, INC.
	 	 	 
	 	By:	/s/ Ross A. Teune
	 	 	Name: Ross A. Teune
	 	 	Title: Chief Financial Officer

 

[Signatures continue on following page.]

 

    	 	GCRF II
 Credit Facility Termination Agreement

    	 	 	 

    

 

IN WITNESS WHEREOF,
the undersigned have executed and delivered this Termination Agreement as of the date first stated above.

 

	 	THE PRIVATEBANK AND TRUST COMPANY, as Administrative Agent
	 	 	 
	 	By:	/s/ Michael F. Perry
	 	 	Name: Michael F. Perry
	 	 	Title: Managing Director

 

[Signatures continue on following page.]

 

    	 	GCRF II
 Credit Facility Termination Agreement

    	 	 	 

    

 

IN WITNESS WHEREOF,
the undersigned have executed and delivered this Termination Agreement as of the date first stated above.

 

	 	THE PRIVATEBANK AND TRUST COMPANY, as Lender
	 	 	 
	 	By:	/s/ Michael F. Perry
	 	 	Name: Michael F. Perry
	 	 	Title: Managing Director

 

[Signatures continue on following page.]

 

    	 	GCRF II
 Credit Facility Termination Agreement

    	 	 	 

    

 

IN WITNESS WHEREOF, the undersigned have
executed and delivered this Termination Agreement as of the date first stated above.

 

	 	U.S. BANK NATIONAL ASSOCIATION
	 	 	 
	 	By:	/s/ Leslie H. Hundley
	 	 	Name: Leslie H. Hundley
	 	 	Title: Vice President

 

    	 	GCRF II
 Credit Facility Termination Agreement

    	 	 	 

    

 

Schedule I

 

Pay-Off Amount Schedule

 

    	 	Credit Facility Termination Agreement

    	 	 	 

    

 

Schedule II

 

	UCC Financing Statement No.	 	Filed Date
	 	 	 
	20134625183 (Delaware)	 	11/22/2013
	 	 	 
	20134630290 (Delaware)	 	11/22/2013

 

    	 	Credit Facility Termination AgreementExhibit 10.1

 

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT is dated November 14, 2015
by and between Telkonet, Inc, a Utah corporation (“Telkonet” or “Company”) and F. John Stark (“Executive”).

 

WHEREAS, Telkonet desires to employ Executive and to secure
for itself the experience, abilities and services of Executive in the capacity of Chief Financial Officer of Telkonet upon the
terms and conditions specified herein; and

 

WHEREAS, Executive desires to so provide his services
to Telkonet, upon the terms and conditions specified herein.

 

NOW, THEREFORE, in consideration of the mutual covenants
contained herein, and for such other good and valuable consideration, the receipt and sufficiency of which are hereby conclusively
acknowledged, the parties, intending to be legally bound, agree as follows:

 

1. Duties and Scope of Employment.

 

(a)Positions and Duties. Telkonet
hereby employs Executive in the capacity of Chief Financial Officer of Telkonet to perform such executive, management and administrative
services and other customary duties consistent with Executive’s position as a senior executive officer within the Company
as set forth in the Telkonet by-laws and as Telkonet, by action of its Chief Executive Officer and Board of Directors (“Board”),
may request from time to time.

 

(b)Location. Executive’s place of work
shall be 20800 Swenson Dr., Suite 175, Waukesha, WI 53186. The Company shall be entitled to require the Executive to travel to
work at such other places as business needs require.

 

2. Term.
The Initial Term of the Executive’s employment hereunder (the “Initial Term”) shall commence on November
16, 2015 (the “Effective Date”), and continuing until December 31, 2016. If neither the Company nor the Executive
has provided the other with written notice of an intention to terminate this Agreement at least thirty (30) days before the
end of the Initial Term (or any subsequent renewal period), this Agreement will automatically renew for a twelve (12) month
period. For purposes of this Agreement, the word “Term” means the Initial Term and any renewal period pursuant to
the preceding sentence and any extension pursuant to clause (ii) of the following sentence. Notwithstanding the preceding
sentences (i) this Agreement may be terminated earlier as provided pursuant to Section 6 and (ii) if a Sale of the Company
(as defined in Section 4(c) of this Agreement) occurs during the Term, then the Term shall not end before the first
anniversary of the date of the Sale of the Company.

 

3. Extent of Services. During the Term
and any extension thereof, Executive shall devote his full time, ability, attention and efforts to the performance, to the best
of his abilities, of such duties and responsibilities, as described in Section 1 above, and as the Chief Executive Officer shall
determine, consistent therewith.

 

4. Compensation.

 

(a)Salary. Executive shall be paid
$175,000.00 on an annualized basis in accordance with Telkonet’s normal payroll practices, and be subject to all lawfully
required withholdings. The base salary may be increased, at any time, as determined by the Chief Executive Officer and the Board
of Directors.

 

(b)Incentives. The Chief Executive
Officer, Board of Directors of Telkonet and the Executive will agree upon terms and conditions. The actual incentive amount will
be determined by the Board of Directors.

 

(d)Executive Participation in Telkonet
Staff Benefits Plans. During the Term, Executive shall be entitled to participate in any group health programs and other benefit
plans, which may be instituted from time-to-time for Telkonet employees, and for which Executive qualifies under the terms of
such plans. All such benefits shall be provided on the same terms and conditions as generally apply to all other Telkonet employees
under these plans and may be modified by Telkonet from time-to-time.

 

(e)Expenses. Executive shall be reimbursed
by Telkonet for all ordinary, reasonable, customary and necessary expenses incurred by him in the performance of his duties and
responsibilities. Executive agrees to prepare

documentation for such expenses as may be necessary
for Telkonet to comply with the applicable rules and regulations of the Internal Revenue Service and Telkonet’s existing
policy.

 

    	 	 	 

     

    

 

(f) Equity. Executive is eligible to participate
in the Company’s Employee Stock Option Plan, in accordance with the terms of such plan and awards as granted by the Compensation
Committee of the Company’s Board of Directors.

 

5.Vacation. At full pay and without
any adverse effect to his compensation, provided that all other terms and conditions of this Agreement are satisfied, Executive
shall be entitled to five (5) weeks of vacation for each full calendar year during the term of this Agreement. Executive agrees
to schedule his vacation leave in advance upon written notice to Chief Executive Officer or other designated individuals. Carryover
of vacation days shall be consistent with Company’s existing policy.

 

6.Termination. This Agreement shall terminate
in accordance with Section 2 of this Agreement, or upon the first to occur of any of the following events:

 

(a)The death of Executive.

 

(b)The mutual consent of Executive and Telkonet.
Executive shall then receive (i) an amount equal to Executive's base salary for the period starting on the first day after the
termination and ending upon the six (6) month anniversary date of the termination in accordance with the Company’s payroll
schedule applicable to all employees and (ii) if the Executive elects to participate, in a timely manner, in the Company’s
group health insurance plan in accordance with the mandates of the Consolidated Omnibus Reconciliation Act of 1985, as amended
(“COBRA”), the Company will, pay for any applicable health insurance premiums for such COBRA coverage, for a period
starting on the first day after the termination and ending upon the six (6) month anniversary date of the termination. If the Executive
becomes eligible for similar benefits from another employer, Telkonet will reimburse Executive for the Employee’s share of
current employer’s health insurance premium ending upon the six (6) month anniversary date of the termination; Should the
Executive wish to continue COBRA coverage after the period of time during which the Company has agreed to pay the normal employer’s
share of COBRA coverage, the Executive agrees and acknowledges that they will be solely responsible for payment of any amounts
required by the Company to continue health insurance coverage in accordance with COBRA. The Executive agrees to notify the Company
in the event they obtain other health insurance coverage within ten (10) business days of becoming eligible for such coverage.

 

(c)“Cause” exists for termination.
For purposes of this Agreement, “cause” shall mean the occurrence of any of the following: (1) theft, fraud, embezzlement,
or any other act of intentional dishonesty by Executive; (2) any material breach by Executive of any provision of this Agreement
which breach is not cured within a reasonable time (but not to exceed fourteen (14) days) after written notification thereof to
Executive by Telkonet; (3) any habitual neglect of duty or misconduct of Executive in discharging any of his duties and responsibilities
under this Agreement after a written demand for performance was delivered to Executive that specifically identified the manner
in which the Board believed the Executive had failed to discharge his duties and responsibilities, and the Executive failed to
resume substantial performance of such duties and responsibilities on a continual basis immediately following such demand; (4)
commission by Executive of a felony or any offense involving moral turpitude; or (5) any default of Executive’s obligations
hereunder, or any failure or refusal of Executive to comply with the policies, rules and regulations of Telkonet generally applicable
to Telkonet employees, which default, failure or refusal is not cured within a reasonable time (but not to exceed fourteen (14)
days) after written notification thereof to Executive by Telkonet. If cause exists for termination, Executive shall be entitled
to no further compensation, except for accrued payables, payroll, leave and vacation and except as may be required by applicable
law.

 

(d)“Good reason” exists for
Executive to terminate his employment with Telkonet. For purposes of this Agreement, “good reason” shall mean the
occurrence of any of the following: (1) any material adverse reduction in the scope of Executive’s authority or responsibilities;
(2) any reduction in the amount of Executive’s compensation or participation in any employee benefits; or (3) Executive’s
principal place of employment is actually or constructively moved to any office or other location 75 miles or more outside of
Milwaukee, WI. If Executive terminates his employment with Telkonet for “good reason,” then, upon notice to Telkonet
by Executive of such termination, Telkonet shall continue to pay Executive's base salary and provide Executive with continued
participation in each employee benefit plan, in accordance with the mandates of COBRA (see Section 6.(b)(ii), in which Executive
participated immediately prior to the termination date for the period starting on the first day after the termination date and
ending upon expiration of the Term, or if such period is less than six (6) months, for a period of six (6) months from notice.

 

    	 	2	 

     

    

 

(e)If Executive is terminated by Telkonet
for any reason other than for “cause” the Executive shall receive: (i) an amount equal to Executive's base salary for
the period starting on the first day after the termination and ending upon the six (6) month anniversary date of the termination
in accordance with the Company’s payroll schedule applicable to all employees and (ii) pay for any applicable health insurance
premiums, in accordance with the mandates of COBRA (see Section 6.(b)(ii), for a period starting on the first day after the termination
and ending upon the six (6) month anniversary date of the termination. If the Executive becomes eligible for similar benefits from
another employer, Telkonet will reimburse Executive for the Employee’s share of current employer’s health insurance
premium ending upon the six (6) month anniversary date of the termination.

 

(f)In the event of a termination under (a),
(b), (c) or (d) of this paragraph 6, within thirty (30) days of the separation date, Telkonet shall make a lump sum payment of
any back pay, Executive loans or deferments then due and owing. Notwithstanding anything to the contrary herein, this Agreement
shall not terminate or expire under (e) of this paragraph six unless and until (iii) Executive is reimbursed for any back pay,
Executive loans or deferments then due and owing.

 

(g)If Executive’s employment terminates
by reason of death or disability, then (i) Executive will be entitled to receive benefits only in accordance with the Company’s
then applicable plans, policies, and arrangements.

 

(h)Separation Agreement and Release
of Claims. The receipt of any severance pursuant to this Agreement will be subject to Executive signing and not revoking a
separation agreement and release of claims (the “Release”) in a form reasonably acceptable to the Company, which becomes
effective within thirty (30) days following Executive’s separation from service. The Release will provide (among other things)
that Executive will not disparage the Company, its directors, or its executive officers for 12 months following the date of termination
and the Company will instruct its officers and directors not to disparage the Executive. No severance pursuant to this Agreement
will be paid or provided until the Release becomes effective.

 

(i)No Duty to Mitigate. Executive
will not be required to mitigate the amount of any payment contemplated by this Agreement, nor will any earnings that Executive
may receive from any other source reduce any such payment.

 

(j)No-Inducement. In the event of
a termination of Executive’s employment that otherwise would entitle Executive to the receipt of severance and other benefits
pursuant to this Agreement, Executive agrees that as a condition to receipt of such severance, during the 12 month period following
termination of employment, Executive, directly or indirectly, whether as employee, owner, sole proprietor, partner, director,
founder or otherwise, will not, solicit, induce, or influence any person to modify their employment or consulting relationship
with the Company (the “No-Inducement”). If Executive breaches the No-Inducement, all payments and benefits to which
Executive otherwise may be entitled pursuant to this Section 6 will cease immediately.

 

7.Surrender of Books and Papers.
Upon termination of this Agreement (irrespective of the time, manner, or cause of termination, be it for cause or otherwise),
Executive shall immediately surrender to Telkonet all books, records, or other written papers or documents entrusted to him or
which he has otherwise acquired pertaining to Telkonet and all other Telkonet property in Executive’s possession, custody
or control.

 

8.Inventions and Patents. Executive
agrees that Executive will promptly, from time-to time, fully inform and disclose to Telkonet any and all ideas, concepts, copyrights,
copyrightable material, developments, inventions, designs, improvements and discoveries of whatever nature that Executive may
have or produced during the term of Executive’s employment under this Agreement that pertain or relate to the then current
business of Telkonet (the “Creations”), whether conceived by Executive alone or with others and whether or not conceived
during regular working hours. All Creations shall be the exclusive property of Telkonet and shall be “works made for hire”
as defined in 17 U.S.C. §101, and Telkonet shall own all rights in and to the Creations throughout the world, without payment
of royalty or other consideration to Executive or anyone claiming through Executive. Executive hereby transfers and assigns to
Telkonet (or its designee) all right, title and interest in and to every Creation. Executive shall assist Telkonet in obtaining
patents or copyrights on all such inventions, designs, improvements and discoveries being patentable or copyrightable by Executive
or Telkonet and shall execute all documents and do all things reasonably necessary (at Telkonet’s sole cost and expense)
to obtain letters of patent or copyright, vest Telkonet with full and exclusive title thereto, and protect the same against infringement
by third parties, and such assistance shall be given by Executive, if needed, after termination of this Agreement for whatever
cause or reason. Executive hereby represents and warrants that Executive has no current or future obligation with respect to the
assignment or disclosure of any or all developments, inventions, designs, improvements and discoveries of whatever nature to any
previous Employer, entity or other person and that Executive does not claim any rights or interest in or to any previous unpatented
or uncopyrighted developments, inventions, designs, improvements or discoveries.

 

    	 	3	 

     

    

 

9. Trade Secrets, Non-Competition and Non-Solicitation.

 

(a)Trade Secrets. Contemporaneous with
the execution of this Agreement and during the term of employment under this Agreement, Telkonet shall deliver to Executive or
permit Executive to have access to and become familiar with various confidential information and trade secrets of Telkonet, including
without limitation, data, production methods, customer lists, product format or developments, other information concerning the
business of Telkonet and other unique processes, procedures, services and products of Telkonet, which are regularly used in the
operation of the business of Telkonet (collectively, the “Confidential Information”). For purposes of the preceding
sentence, information is not treated as being Confidential Information if it: (i) is or becomes generally available to the public
other than by Executive in violation of this Agreement; (ii) is obtained by Executive in good faith from a third party who discloses
such information to Executive on a non-confidential basis without violating any obligation of confidentiality or secrecy relating
to the information disclosed; (iii) is independently developed by Executive outside the scope of his employment without use of
Confidential Information; or (iv) is Executive’s personnel information. Executive shall not disclose any of the Confidential
Information that he receives from Telkonet or their clients and customers in the course of his employment with Telkonet, directly
or indirectly, nor use it in any way, either during the term of this Agreement or for a period of five (5) years thereafter, except
as required in the course of employment with Telkonet. Executive further acknowledges and agrees that Executive owes Telkonet,
a fiduciary duty to preserve and protect all Confidential Information from unauthorized disclosure or unauthorized use. All files,
records, documents, drawings, graphics, processes, specifications, equipment and similar items relating to the business of Telkonet,
whether prepared by Executive or otherwise coming into Executive’s possession in the course of his employment with Telkonet,
shall remain the exclusive property of Telkonet and shall not be removed from the premises of Telkonet without the prior written
consent of Telkonet unless removed in relation to the performance of Executive’s duties under this Agreement. Any such files,
records, documents, drawings, graphics, specifications, equipment and similar items, and any and all copies of such materials
which have been removed from the premises of Telkonet, shall be returned by Executive to Telkonet. For purposes of this Section
9, “Telkonet” means Telkonet, Inc., including its subsidiaries and affiliates and all successors and predecessors
in interest to Telkonet.

 

(b)Non-Competition. Executive acknowledges
that he will be provided with and have access to the Confidential Information, the unauthorized use or disclosure of which would
cause irreparable injury to Telkonet, that Telkonet’s willingness to enter into this Agreement is based in material part
on Executive’s agreement to the provisions of this Section 9(b) and that Executive’s breach of the provisions
of this Section would materially and irreparably damage Telkonet. In consideration for Telkonet’s disclosure of Confidential
Information to Executive, Executive’s access to the Confidential Information, and the salary paid to executive hereunder,
Executive agrees that during the term of Executive’s employment under this Agreement and for one (1) year after the termination
of Executive’s employment and regardless whether such termination is with or without cause, Executive shall not, directly
or indirectly, either as an executive, employee, employer, consultant, agent, principal, partner, stockholder, corporate officer,
director, advisor or in any other individual or representative capacity, engage or participate in any business that is in competition
in any manner whatsoever with the Restricted Business (as defined herein) in North America. “Restricted Business”
means any business conducted by Telkonet at the time of separation of the Executive from Telkonet.

 

(c)Reasonableness of Restrictions.
Executive acknowledges that the restrictions set forth in Section 9(b)  of this Agreement are reasonable in scope and necessary
for the protection of the business and goodwill of Telkonet. Executive agrees that should any portion of the covenants in Section
9 be unenforceable because of the scope thereof or the period covered thereby or otherwise, the covenant shall be deemed to
be reduced and limited to enable it to be enforced to the maximum extent permissible under the laws and public policies applied
in the jurisdiction in which enforcement is sought.

 

    	 	4	 

     

    

 

(d)Injunctive Relief; Extension of Restrictive
Period. In the event of a breach of any of the covenants by Executive or Telkonet contained in this Agreement, it is understood
that damages will be difficult to ascertain, and either party may petition a court of law or equity for injunctive relief in addition
to any other relief which Executive or Telkonet may have under the law, including but not limited to reasonable attorneys’
fees.

 

10.Indemnification and Insurance.
Executive will be covered under the Company’s insurance policies and, subject to applicable law, will be provided indemnification
to the maximum extent permitted by the Company’s bylaws, Certificate of Incorporation, and standard form of Indemnification
Agreement, with such insurance coverage and indemnification to be in accordance with the Company’s standard practices for
senior executive officers but on terms no less favorable than provided to any other Company senior executive officer or director.

 

11.Miscellaneous.

 

(a) This Agreement shall be binding upon the
parties and their respective heirs, executors, administrators, successors and assigns. Executive shall not assign any part of his
rights under this Agreement without the prior written consent of Telkonet.

 

(b) This Agreement contains the entire agreement
and understanding between the parties and supersedes any and all prior understandings and agreements between the parties regarding
Executive’s employment.

 

(c) No modification hereof shall be binding unless
made in writing and signed by the party against whom enforcement is sought. No waiver of any provisions of this Agreement shall
be valid unless the same is in writing and signed by the party against whom it is sought to be enforced, unless it can be shown
through custom, usage or course of action.

 

(d) This Agreement is executed in, and it is
the intention of the parties hereto that it shall be governed by, the laws of the State of Wisconsin without giving effect to applicable
conflict of laws provisions.

 

(e) The provisions of this Agreement shall be
deemed to be severable, and the invalidity or unenforceability of any provision shall not affect the validity or enforceability
of the other provisions hereof.

 

(f) Any notice or communication permitted or
required by this Agreement shall be in writing and shall become effective upon personal service, or service by wire transmission,
which has been acknowledged by the other party as being received, or two (2) days after its mailing by certified mail, return receipt
requested, postage prepaid addressed as follows:

 

(1)If to Telkonet: Attn:
General Counsel Telkonet, Inc. 20800, Suite 175, Swenson Dr. Waukesha, WI 53186.

 

(2)If to Executive,
to: F. John Stark at the last residential address known by the Company as provided by Executive in writing.

 

(g) Acknowledgment. Executive acknowledges
that he has had the opportunity to discuss this matter with and obtain advice from his private attorney, has had sufficient time
to, and has carefully read and fully understands all the provisions of this Agreement, and is knowingly and voluntarily entering
into this Agreement.

 

(h) Counterparts. This Agreement may be
executed in counterparts, and each counterpart will have the same force and effect as an original and will constitute an effective,
binding agreement on the part of each of the undersigned.

 

IN WITNESS WHEREOF, Telkonet and Executive
have executed this Agreement as of the date first set forth above.

 

 

 

	/s/ Jason L. Tienor	 	/s/ F. John Stark	 
	CEO – Jason L. Tienor	 	F. John Stark	 
	 	 	 	 
	November 14, 2015	 	November 14, 2015	 
	Date	 	Date	 

 

 

 

    	 	5

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