Document:

EX-10.1

 EXHIBIT 10.1 

FIFTH LOAN MODIFICATION AGREEMENT 

This Fifth Loan Modification Agreement (this “Loan Modification Agreement”) is entered into as of November 13, 2019, by and among
(a) SILICON VALLEY BANK, a California corporation, with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan production office located at 275 Grove Street, Suite
2-200, Newton, Massachusetts 02466 (“Bank”) and (b)(i) ICAD, INC., a Delaware corporation (“ICAD”), (ii) XOFT, INC., a Delaware corporation (“Xoft”) and (iii) XOFT SOLUTIONS,
LLC, a Delaware limited liability company (“Xoft Solutions”, and together with ICAD and Xoft, individually and collectively, jointly and severally, “Borrower”) whose address is 98 Spit Brook Road, Suite 100, Nashua, New Hampshire
03062. 
 DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and obligations which may be owing by Borrower to Bank, Borrower is
indebted to Bank pursuant to a loan arrangement dated as of August 7, 2017, evidenced by, among other documents, a certain Loan and Security Agreement dated as of August 7, 2017, between Borrower and Bank, as amended by a certain First
Loan Modification Agreement dated as of March 22, 2018, as further amended by a certain Second Loan Modification Agreement dated as of August 13, 2018, as further amended by a certain Third Loan Modification Agreement dated as of
December 20, 2018, and as further amended by a certain Fourth Loan Modification Agreement dated as of March 18, 2019 (the “Fourth Modification”) (as amended, the “Loan Agreement”). Capitalized terms used but not
otherwise defined herein shall have the same meaning as in the Loan Agreement. 
 DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by,
among other property, the Collateral as defined in the Loan Agreement (together with any other collateral security granted to Bank, the “Security Documents”). Hereinafter, the Security Documents, together with all other documents
evidencing or securing the Obligations shall be referred to as the “Existing Loan Documents”. 
 DESCRIPTION OF CHANGE IN TERMS. 

Modifications to Loan Agreement. 

The Loan Agreement shall be amended by deleting the following text, appearing in Section 6.9(c) thereof: 

“(viii) ($2,000,000.00) for the six (6) month period ending December 31, 2019.” 

and inserting in lieu thereof the following: 

“(viii) ($4,000,000.00) for the six (6) month period ending December 31, 2019.” 

  
 1 

 The Compliance Certificate appearing as Exhibit B to the Loan Agreement is hereby deleted
and replaced with the Compliance Certificate attached as Schedule 1 hereto. 
 FEES AND EXPENSES. Borrower shall reimburse Bank for all reasonable legal
fees and expenses incurred in connection with this amendment to the Existing Loan Documents. 
 RATIFICATION OF PERFECTION CERTIFICATES. 

(a) ICAD hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a certain Perfection Certificate of
ICAD dated as of August 7, 2017, as amended as set forth on Schedule 2 to the Fourth Modification, and acknowledges, confirms and agrees that the disclosures and information ICAD provided to Bank in such Perfection Certificate have not changed
as of the date hereof. 
 (b) Xoft hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a
certain Perfection Certificate of Xoft dated as of August 7, 2017, as amended as set forth on Schedule 3 to the Fourth Modification, and acknowledges, confirms and agrees that the disclosures and information Xoft provided to Bank in such
Perfection Certificate have not changed as of the date hereof. 
 (c) Xoft Solutions hereby ratifies, confirms and reaffirms, all and
singular, the terms and disclosures contained in a certain Perfection Certificate of Xoft Solutions dated as of August 7, 2017, as amended as set forth on Schedule 4 to the Fourth Modification, and acknowledges, confirms and agrees that the
disclosures and information Xoft Solutions provided to Bank in such Perfection Certificate have not changed as of the date hereof. 
 CONSISTENT CHANGES.
The Existing Loan Documents are hereby amended wherever necessary to reflect the changes described above. 
 RATIFICATION OF LOAN DOCUMENTS. Borrower hereby
ratifies, confirms, and reaffirms all terms and conditions of all security or other collateral granted to Bank to secure the Obligations and confirms that the Obligations are secured. 

RELEASE BY BORROWER. 
 FOR GOOD AND VALUABLE
CONSIDERATION, Borrower hereby forever relieves, releases, and discharges Bank and its present or former employees, officers, directors, agents, representatives, attorneys, and each of them, from any and all claims, debts, liabilities, demands,
obligations, promises, acts, agreements, costs and expenses, actions and causes of action, of every type, kind, nature, description or character whatsoever, whether known or unknown, suspected or unsuspected,

  
 2 

 
absolute or contingent, arising out of or in any manner whatsoever connected with or related to facts, circumstances, issues, controversies or claims existing or arising from the beginning of
time through and including the date of execution of this Loan Modification Agreement, in each case, arising out of or in any manner whatsoever connected with or related to the Loan Documents, the recitals hereto, any instruments, agreements or
documents executed in connection with any of the foregoing or the origination, negotiation, administration, servicing and/or enforcement of any of the foregoing (collectively “Released Claims”). 

In furtherance of this release, Borrower expressly acknowledges and waives any and all rights under Section 1542 of the California Civil
Code, which provides 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.” (Emphasis added.) 

By entering into this release, Borrower recognizes that no facts or representations are ever absolutely certain and it may hereafter discover
facts in addition to or different from those which it presently knows or believes to be true, but that it is the intention of Borrower hereby to fully, finally and forever settle and release all matters, disputes and differences, known or unknown,
suspected or unsuspected; accordingly, if Borrower should subsequently discover that any fact that it relied upon in entering into this release was untrue, or that any understanding of the facts was incorrect, Borrower shall not be entitled to set
aside this release by reason thereof, regardless of any claim of mistake of fact or law or any other circumstances whatsoever. Borrower acknowledges that it is not relying upon and has not relied upon any representation or statement made by Bank
with respect to the facts underlying this release or with regard to any of such party’s rights or asserted rights. 
 This release may
be pleaded as a full and complete defense and/or as a cross-complaint or counterclaim against any action, suit, or other proceeding that may be instituted, prosecuted or attempted in breach of this release. Borrower acknowledges that the release
contained herein constitutes a material inducement to Bank to enter into this Loan Modification Agreement, and that Bank would not have done so but for Bank’s expectation that such release is valid and enforceable in all events. 

  
 3 

 Borrower hereby represents and warrants to Bank, and Bank is relying thereon, as follows:

 Except as expressly stated in this Loan Modification Agreement, neither Bank nor any agent, employee or representative of Bank has made
any statement or representation to Borrower regarding any fact relied upon by Borrower in entering into this Loan Modification Agreement. 

Borrower has made such investigation of the facts pertaining to this Loan Modification Agreement and all of the matters appertaining thereto,
as it deems necessary. 
 The terms of this Loan Modification Agreement are contractual and not a mere recital. 

This Loan Modification Agreement has been carefully read by Borrower, the contents hereof are known and understood by Borrower, and this Loan
Modification Agreement is signed freely, and without duress, by Borrower. 
 Borrower represents and warrants that it is the sole and lawful
owner of all right, title and interest in and to every claim and every other matter which it releases herein, and that it has not heretofore assigned or transferred, or purported to assign or transfer, to any person, firm or entity any claims or
other matters herein released. Borrower shall indemnify Bank, defend and hold it harmless from and against all claims based upon or arising in connection with prior assignments or purported assignments or transfers of any claims or matters released
herein. 
 CONTINUING VALIDITY. Borrower understands and agrees that in modifying the existing Obligations, Bank is relying upon Borrower’s
representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force and
effect. Bank’s agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the Obligations. Nothing in this Loan Modification Agreement
shall constitute a satisfaction of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the party is expressly released by Bank in writing. No maker will be released by
virtue of this Loan Modification Agreement. 
 COUNTERSIGNATURE. This Loan Modification Agreement shall become effective only when it shall have been
executed by Borrower and Bank. This Loan Modification Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, is an original, and all taken together,
constitute one agreement. Any signatures delivered by a party by facsimile transmission or by email delivery of a copy of such executed counterpart in PDF format shall be as effective as delivery of a manually executed counterpart thereof. 

[The remainder of this page is intentionally left blank] 

  
 4 

 This Loan Modification Agreement is executed as of the date first written above. 

 

			
	 BANK:
 SILICON VALLEY
BANK

		
	By:	 	/s/ Sam Subilia
	Name:	 	 Sam Subilia

	Title:	 	 Director

  

			
	 BORROWER:
 ICAD,
INC.

		
	By:	 	/s/ Michael Klein
	Name:	 	 Michael Klein

	Title:	 	 Chief Executive Officer

  

			
	XOFT, INC.
		
	By:	 	/s/ Michael Klein
	Name:	 	 Michael Klein

	Title:	 	 Chief Executive Officer

  

			
	XOFT SOLUTIONS, LLC
		
	By:	 	/s/ Michael Klein
	Name:	 	 Michael Klein

	Title:	 	 Chief Executive Officer

 SCHEDULE 1 

EXHIBIT B 

COMPLIANCE CERTIFICATE 
  

					
	TO:	  	SILICON VALLEY BANK	  	Date:                     
	FROM:	  	ICAD, INC., XOFT, INC. and XOFT SOLUTIONS, LLC	  	

 The undersigned authorized officer of ICAD, INC., XOFT INC. and XOFT SOLUTIONS, LLC (individually and
collectively, jointly and severally, “Borrower”) certifies that under the terms and conditions of the Loan and Security Agreement between Borrower and Bank (the “Agreement”), (1) Borrower is in complete compliance for the period
ending with all required covenants except as noted below, (2) there are no Events of Default, (3) all representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below;
provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and
warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date, (4) Borrower, and each of its Subsidiaries has timely filed all required tax returns and reports, and Borrower has
timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement, and (5) no Liens have been levied or
claims made against Borrower, and each of its Subsidiaries relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to Bank. Attached are the required documents supporting the certification.
The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The undersigned acknowledges that no borrowings may be requested
at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered. Capitalized terms used but not otherwise defined
herein shall have the meanings given them in the Agreement. 

  
 5 

 Please indicate compliance status by circling Yes/No under “Complies” column. 

 

					
	 Reporting Covenants
	  	 Required
	  	 Complies

	Monthly Financial Statements with 
Compliance Certificate	  	Monthly within 30 days	  	Yes     No
			
	Form 10-Q	  	 Quarterly within 45 days (for first 3
 quarters
of a fiscal year)
	  	Yes     No
			
	Form 10-K	  	 Annually within 90 days of the last
 quarter of
a fiscal year
	  	Yes     No
			
	10-Q, 10-K and 8-K	  	 Within 5 days after filing with
 SEC
	  	Yes     No
			
	A/R & A/P Agings, Deferred Revenue report and Account Debtor listing	  	Monthly within 30 days	  	Yes     No
			
	Borrowing Base Reports	  	(i) with each request for an Advance and (ii) monthly within 30 days	  	Yes     No
			
	Board approved projections	  	Within the earlier of 30 days of (i) Board approval or (ii) fiscal year end, together with any periodic updates	  	Yes     No

  

													
	 Streamline Period
	  	Required	 	  	Actual	 	  	Eligible	 
	 Maintain:
	  				  				  			
	 Adjusted Quick Ratio (at all times, tested monthly)
	  	3	 1.25 : 1.0	 	  	 	________ : 1.0	 	  	 	Yes     No	 

  

													
	 Financial Covenants
	  	Required	 	 	Actual	 	  	Complies	 
	 Maintain as indicated:
	  				 				  			
	 Adjusted EBITDA (six month period, tested quarterly)
	  	$	____________	* 	 	$	_________	 	  	 	Yes     No	 
	 Minimum Consolidated Net Revenue (six month period, tested quarterly)
	  	$	____________	** 	 	$	_________	 	  	 	Yes     No	 

  

	*	 As set forth in Section 6.9(c) of the Agreement. 

	**	 As set forth in Section 6.9(d) of the Agreement. 

The following financial covenant analyses and information set forth in Schedule 1 attached hereto are true and accurate as of the date of this
Certificate. 
 The following are the exceptions with respect to the certification above: (If no exceptions exist, state “No exceptions
to note.”) 
  
  

 
  

  
 6 

			
	ICAD, INC.	  	BANK USE ONLY
		
	By:                                     
                                	  	Received
by:                                        
                     
	Name:                                     
                          	  	                                AUTHORIZED SIGNER
	Title:                                     
                            	  	Date:                                     
                                    
		
	XOFT, INC.	  	Verified:                                    
                               
		
		  	                                AUTHORIZED SIGNER
	By:                                     
                                	  	Date:                                     
                                    
	Name:                                     
                          	  	
	Title:                                     
                            	  	Compliance Status: Yes No
		
	XOFT SOLUTIONS, LLC	  	
		
	By:                                     
                                	  	
	Name:                                     
                          	  	
	Title:                                     
                            	  	

  
 7 

 Schedule 1 to Compliance Certificate 

Financial Covenants of Borrower 

In the event of a conflict between this Schedule and the Agreement, the terms of the Agreement shall govern. 

Dated: ____________________ 
  

	I.	 Adjusted EBITDA (Section 6.9(c)) (six month period, tested quarterly) 

Required:         Amount set forth below. 
  

					
	 Six Month Period Ending
	  	 	Adjusted EBITDA	 
	 September 30, 2019
	  	($	4,000,000.00	) 
	 December 31, 2019
	  	($	4,000,000.00	) 

 Levels for 2020 through 2021 to be established in accordance with Section 6.9(c) of the Agreement. 

Actual: $________________ 
  

							
	 A.
	  	 Net Income
	  	$	___________	 
	 B.
	  	 To the extent included in the determination of Net Income
	  			
		  	 1.  Interest Expense
	  	$	__________	 
		  	 2.  Taxes
	  			
		  	 3.  Depreciation
	  	$	__________	 
		  	 4.  Amortization
	  	$	__________	 
		  	 5.  Non-cash stock compensation
expense
	  	$	__________	 
		  	 6.  Non-cash impairment of goodwill
expense
	  	$	__________	 
		  	 7.  Other non-cash items approved by writing
by Bank on a case-by-case basis in its good faith business discretion
	  	$	__________	 
		  	 8.  With respect to the six (6) month period ending March 31, 2019 only and
relating only to expenses incurred during the calendar quarter ending December 31, 2018:
	  			
		  	 (a)   One time cash severance package for Borrower’s Chief Executive
Officer in an amount not to exceed One Million and Five Thousand Dollars ($1,005,000.00)
	  	$	__________	 
		  	 (b)   One time litigation expenses related to turnover of the Board in an amount
not to exceed Three Hundred Fifty Thousand Dollars ($350,000.00)
	  	$	__________	 

  
 8 

							
		  	 (c)   One time debt issuance expenses in an amount not to exceed Four Hundred Fifty-One Thousand Dollars ($451,000.00)
	  	$	__________	 
		  	 (d)   One-time legal expenses in an
amount not to exceed Three Hundred Thousand Dollars ($300,000.00)
	  	$	__________	 
		  	 9.  The sum of lines 8(a) – 8(d)
	  	$	__________	 
		  	 10.  The sum of lines 1 through 7 and 9
	  	$	__________	 
	 C.
	  	 Adjusted EBITDA (line A plus line B.10)
	  	$	__________	 

 Is the actual amount equal to or greater than the required amount above? 

             No, not in compliance
             Yes, in compliance 
  

	II.	 Minimum Consolidated Net Revenue (Section 6.9(d)) (six month period, tested quarterly)

 Required: Amount set forth below (as calculated on a consolidated basis for Borrower and its Subsidiaries). 

 

					
	 Six Month Period Ending
	  	 	Net Revenue	 
	 March 31, 2019
	  	$	11,433,000.00	 
	 June 30, 2019
	  	$	11,571,000.00	 
	 September 30, 2019
	  	$	12,963,000.00	 
	 December 31, 2019
	  	$	14,529,000.00	 

 Levels for 2020 through 2021 to be established in accordance with Section 6.9(d) of the Agreement. 

Actual: $________________________ 
 Is the actual amount
equal to or greater than the required amount above? 
          No, not in
compliance                      Yes, in compliance 
  

  
 9EMPLOYMENT
AGREEMENT

 

This
Employment Agreement is entered this 31st day of October, 2019, by and between Saleen Automotive (the “Employer”),
and LAWRENCE BALINGIT, hereinafter referred to as “Employee,” in consideration of the mutual promises made
herein, agree as follows:

 

ARTICLE
1. AT-WILL EMPLOYMENT

 

Section
1.1. At-Will Employment. Employer hereby employs Employee and Employee hereby accepts employment with Employer on an at-will
basis, with both Employer and Employee able to terminate the employment relationship at any time, with or without cause. This
at-will status can only be changed by a writing signed by Employer’s President or CEO.

 

Section
1.2. Annual Review. Employer will grant Employee an annual review. This annual review may result in a corresponding increase
in salary to Employee, but any increase in salary is in the sole discretion of Employer.

 

ARTICLE
2. DUTIES AND OBLIGATIONS OF EMPLOYEE

 

Section
2.1. General Job Responsibilities. Employee is being hired for the position of Full-time CHIEF FINANCIAL OFFICER / OPERATING
OFFICER. Employee shall report directly to the CEO, Steve Saleen or designate. Employee’s duties include, among others:
see job description attached

 

Section
2.2. Matters Requiring Consent of Employer’s President and/or CEO. Employee shall not, without specific written approval
of the Employer’s CEO, do or contract to do any of the following:

 

		(1)	Bind
                                         the Employer to any contract or agreement; or

		(2)	Any
                                         other matter prohibited by the Employer’s practices and policies, written or otherwise.

 

Section
2.3. Devotion to Employer’s Business.

 

(a)   Subject
to the exceptions set forth herein, Employee shall devote his full professional time, attention, best efforts, energy and skill
to the business of Employer during the term of his employment necessary to effectively and efficiently execute all job responsibilities
set forth in Section 2.1. Employee may devote time and attention to other activities that do not compete with Employer or interfere
with Employee’s obligations, duties and responsibilities to Employer hereunder.

 

(b)  During
Employee’s employment with Employer, Employee shall not engage in any other business duties or pursuits whatsoever, or directly
or indirectly render any services of a business, commercial, or professional nature to any other person or organization, whether
for compensation or otherwise, that competes or could compete with Employer or interfere with Employee’s obligations, duties
and responsibilities to Employer hereunder, without the prior written consent of Employer’s President and/or CEO. However,
the expenditure of reasonable amounts of time for educational, charitable, or professional activities shall not be deemed a breach
of this agreement if those activities do not materially interfere with the services required under this agreement and shall not
require the prior written consent of Employer’s President and/or CEO.

 

(c)
This agreement shall not be interpreted to prohibit Employee from making passive personal investments or conducting private business
affairs if those activities do not interfere or conflict with the services required under this agreement. However, during the
term of Employee’s employment, Employee shall not directly or indirectly acquire, hold, or retain any interest in any business
competing with or similar in nature to the business of Employer.

 

    	 	 	 

    	 	 	 

    

 

Section
2.4. Competitive Activities. To the extent permitted by law, while Employee is an employee of Employer, and for a period
of one (1) year after termination, Employee shall not, directly or indirectly, either as an employee, employer, consultant, agent,
principal partner, stockholder, corporate officer, director, or in any other individual or representative capacity, engage or
participate in any business that competes with any or all of Employer’s businesses.

 

Section
2.5. Uniqueness of Employee’s Services and Injunctive Relief. Employee hereby represents and agrees that the services
to be performed by Employee under this agreement are of a special, unique, unusual, extraordinary and intellectual character that
gives them a peculiar value, the loss of which cannot be reasonably or adequately compensated in damages in an action at law.
Employee therefore expressly agrees that Employer, in addition to any other rights or remedies that the Employer may possess,
shall be entitled to injunctive and other equitable relief to prevent or remedy a breach of this contract by Employee. The parties
are aware that under California law specific performance may not be available to enforce all breaches of this agreement but acknowledge
that for all such material breaches of this agreement the non-breaching party would be harmed and both parties agree that this
harm will be recoverable through monetary damages.

 

Section
2.6. Trade Secrets.

 

(a)  The
parties acknowledge and agree that during Employee’s employment and in the course of the discharge of her duties hereunder,
Employee shall have access to and become acquainted with information concerning the operation and processes of Employer, including
without limitation, financial, personnel, sales, and other information that is owned by Employer’s business, and that such
information constitutes Employer’s trade secrets (“Trade Secrets”).

 

(b) 
Employee specifically agrees that he shall not misuse, misappropriate, or disclose any such Trade Secrets, directly or indirectly
to any other person or use them in any way, either during the term of this Agreement or at any other time thereafter, except as
is required in the course of his employment hereunder.

 

(c)
Employee acknowledges and agrees that the sale or unauthorized use or disclosure of any of Employer’s Trade Secrets obtained
by Employee during the course of his employment with Employer, including information concerning Employer’s current or any
future and proposed work, services, or products, the facts of any such work production, as well as any descriptions thereof, would
constitute unfair trade practices and unauthorized use of the Employer’s Trade Secrets, whether such information is used
during the term of Employee’s employment or at any other time thereafter.

 

(d) 
Employee further agrees that all files, records, documents, drawings, specifications, equipment, and similar items relating to
Employer’s business, whether prepared by Employee or others, are also considered Trade Secrets and that they are and shall
remain exclusively the property of Employer and that they shall be removed from the premises of Employer only with the express
prior written consent of Employer. Employee shall not, either directly or indirectly, solicit, induce, recruit or encourage any
client(s), customer(s), independent contractor(s), consultant(s) or employee(s) of Employer, its parent, subsidiaries or affiliates
to cease doing business with Employer, to do less business with Employer, to do business with an unrelated company or to terminate
employment or an independent contractor relationship with Employer for one (1) year following termination of Employee’s
employment. Trade Secrets do not include: (1) information that was in the public domain at the time of disclosure; or (2) information
that subsequently becomes part of public knowledge or literature through a deliberate act of Employer or Employee as of the date
of its becoming public.

 

Section
2.7 Employee Indemnification. To the extent permitted by law, Employee shall indemnify and hold Employer harmless from
all liability for loss, damage, or injury to persons or property resulting from the negligence or misconduct of Employee. In addition,
Employee shall indemnify and hold Employer harmless from all liability for loss, damage, or injury to persons or property as a
result of a claim against Employer, or any of its employees, from any of Employee’s former employers.

 

    	 	 	 

    	 	 	 

    

 

Section
2.8 Discoveries. All inventions, discoveries, ideas, and other intellectual property rights (“Intellectual
Property”) made or conceived by Employee, either solely or jointly with others, whether they can be patented or not, to
the extent related to and arising out of Employee’s performance under this Agreement shall be promptly and fully disclosed
to the Employer, considered work for hire and all right, title and interest thereto anywhere in the world shall be the Employer’s
property. In the event that such inventions, discoveries and ideas are not considered work for hire for any reason, Employee hereby
unconditionally assigns to the Employer all of his right, title and interest therein. Employee agrees to execute any and all documents
deemed necessary by the Employer to effectuate the foregoing at any time, whether before or after the expiration or earlier termination
of this Agreement. Compensation for any such inventions, discoveries or ideas shall be deemed to be included in the compensation
paid to Employee hereunder.

 

ARTICLE
3. OBLIGATIONS OF EMPLOYER

 

Section
3.1. General Description. Employer shall provide Employee with the compensation, benefits, and business expense reimbursement
specified elsewhere in this agreement.

 

Section
3.2. Office and Staff. Employer shall provide Employee with an office, office equipment, supplies, and other facilities
and services, suitable to Employee’s position and adequate for the performance of his duties. Employee shall work from the
Employer’s corporate headquarters, which is current located in 2735 Wardlow Road Corona, California 92882. Employee is required
to spend time at the Employer’s corporate headquarters and in the field as necessary to effectively carry out his job duties
and responsibilities, maintain team continuity and direction, and to achieve his established goals. Employee understands and agrees
that some travel may be necessary to accomplish his job responsibilities outlined herein.

 

ARTICLE
4. COMPENSATION OF EMPLOYEE

 

Section
4.1. Annual Salary.

 

		(a)	As
                                         compensation for the services to be rendered hereunder, Employee shall receive an annual
                                         salary at $ 225,000.00 on bi-weekly payroll. Paychecks are pro-rated based
                                         on start date and payroll cut-off.

 

Section
4.2. Tax Withholding. Employer shall have the right to deduct or withhold from the compensation due to Employee hereunder
any and all sums required for federal income and Social Security taxes and all state or local taxes now applicable or that may
be enacted and become applicable in the future.

 

ARTICLE
5. EMPLOYEE INCENTIVES

 

 Section
5.1. Bonus Plan. In addition to Employee’s annual salary set forth in Section 4.1, Employee may be entitled
to the following: A bonus plan that is mutually established based on performance and company goals of $125,000 on or after May
15, 2020.

 

Section
5.2. Must Be Employed. In order for Employee to earn the incentives listed in this Article, Employee must be employed by
Employer in the same capacity as listed in Section 2.1 above, at the time the incentive is earned. Alternatively, Employee is
entitled to the above compensation if Employee is employed by Employer in a different position, if approved by the Employer, at
Employer’s sole discretion. If Employee is terminated, then any unearned incentives will expire immediately.

 

    	 	 	 

    	 	 	 

    

 

ARTICLE
6. EMPLOYEE BENEFITS

 

 Section
6.1. Eligibility. Employee will be entitled to begin accruing the benefits listed in this Article immediately after sixty
(60) full calendar days from Employee’s start date.

 

 Section
6.2. Annual Vacation. To the extent that the Employer offers vacation leave to its employees, Employee will be eligible
to participate in such a plan, in accordance with what the Employer offers to other comparable employees. A minimum of 2 weeks
paid vacation plus one week paid vacation at company shut-down during the December Holiday week,

 

 Section
6.3. Sick Leave. To the extent that the Employer offers sick leave to its employees, Employee will be eligible to participate
in such a plan, in accordance with what the Employer offers to other comparable employees. A minimum of 1 week paid sick leave.

 

 Section
6.4. Medical Coverage. Employee is entitled to participate in any medical coverage program that is currently offered
to other employees conditional on acceptance by the insurance carrier, and enrollment policy.

 

 Section
6.5. Retirement Plan. Employee is entitled to participate in any retirement plan that employer currently has available
for all employees conditional on the provisions of the retirement plan (i.e. enrollment policies). The employee is also granted
492,000 (four hundred ninety-two thousand) shares of company stock (when trading starts) over 3 years: 164,000 (one hundred sixty-four
thousand) shares will be granted in the first year of employment; another 164,000 (one hundred sixty-four thousand) shares will
be granted in the second year of employment; and another 164,000 (one hundred sixty-four thousand) shares will be granted in the
third year of employment.

 

ARTICLE
7. BUSINESS EXPENSES

 

 Section
7.1. Reimbursement of Other Business Expenses.

 

(a)  Employer
shall reimburse Employee for all reasonable business expenses incurred by Employee in connection with the business of Employer,
conditional on Employee receiving written authorization from the President or CEO, prior to including such expense. Expense reimbursements
should comply with company guidelines.

 

(b) 
Each such expenditure shall be reimbursable only if it is of a nature qualifying it as a proper deduction on the federal and state
income tax return of Employer.

 

(c)  Each
such expenditure shall be reimbursable only if Employee furnishes to Employer adequate records and other documentary evidence
required by federal and state statutes and regulations issued by the appropriate taxing authorities for the substantiation of
each such expenditure as an income tax deduction.

 

		●	Hotel/Lodging:
                                         valid for 6 months of continuous employment that is mutually agreed upon paid by the
                                         company.

 

ARTICLE
8. TERMINATION OF EMPLOYMENT

 

Section
8.1. Termination At Will. Employee’s employment hereunder is at will and may be terminated by either Employer or
Employee at any time for any reason, with or without cause.

 

Section
8.2.  Termination Upon Death. Employee’s employment hereunder shall terminate upon his death, in which event
the Employer shall pay to such person as the Employee shall have designated in a written notice filed with the Employer, or if
no such person shall have been designated to his estate, all salary, amounts due under benefit plans and profit sharing plans,
and reimbursement of business expenses through the date of termination.

 

    	 	 	 

    	 	 	 

    

 

Section
8.3. Termination Upon Disability. If, as a result of a permanent mental or physical disability, Employee shall have been
absent from his duties hereunder on a full-time basis for three (3) consecutive months, (“Disability”) and, within
thirty (30) days after the Employer notifies Employee in writing that it intends to replace him, (which notice can be given at
the end of the second month during such three-month period), Employee shall not have returned to the complete performance of his
duties on a full-time basis, the Employer shall be entitled to terminate Employee’s employment. In addition, Employee shall,
upon her Disability, have the right to terminate his employment with Employer. If such employment is terminated (whether by the
Employer or Employee) as a result of Employee’s Disability, then Employer shall pay, if applicable, to Employee all salary,
amounts due under benefit plans and profit sharing plans, and reimbursement of business expenses, through the date of termination.

 

Section
8.4. Termination for Cause. Employer shall be entitled to terminate Employee’s employment for Cause, in which event
Employee shall be entitled, if applicable, to all salary, amounts due under benefit plans and profit sharing plans, and reimbursement
of business expenses, through the date of termination. For purposes of this agreement, “Cause” shall mean (i) the
conviction of Employee of a felony, (ii) the commission by Employee of an act of fraud or embezzlement involving assets of the
Employer or its customers, suppliers or affiliates, (iii) a willful breach or habitual neglect of Employee’s duties which
he is required to perform under the terms of his employment (See Section 2.1, above), (iv) refusal to timely produce any and all
documentation related to the Employer’s business to the President and/or CEO upon request therefrom, or (v) gross misconduct
or gross negligence in connection with the business of the Employer or an affiliate which has a material adverse effect on the
Employer and any subsidiaries. Notwithstanding the foregoing, Employee shall not be deemed to have been terminated for Cause unless
and until there shall have been delivered to Employee a notice of termination which specifies the grounds for termination and
a statement of supporting facts.

 

Section
8.5 Termination without Cause. Employee’s employment hereunder may be terminated by Employer without Cause
at any time and without prior notice to Employee.

 

Section
8.6 Payments upon Termination without Cause. In the event that Employee’s employment with Employer is terminated
by Employer without Cause pursuant to Section 8.5 above, then Employee shall be entitled to receive payment of two (2) weeks of
Employee’s base salary in effect as of the date of such termination and only if the employee has been with the company more
than 2 years. The severance payments will be made in accordance with the normal payroll cycle of Employer and subject to any required
tax withholdings and deductions. In the event that Employee breaches any of the covenants set forth in Article 2 or is terminated
with Cause pursuant to Section 8.4 above, Employer shall have no obligation to provide, and Employee shall have no right to receive,
any payments or benefits pursuant to this Section 8.6.

 

Section
8.7 Return of Documents. Upon the termination of Employee’s employment with Employer for any reason, including without
limitation termination by the Employer for Cause, Employee shall promptly deliver to Employer all correspondence, manuals, orders,
letters, notes, notebooks, reports, programs, proposals, appraisal documents, agreements, and any documents and copies concerning
Employer’s customers or concerning products or processes used by Employer and, without limiting the foregoing, will promptly
deliver to the Employer any and all other documents or material containing or constituting trade secrets.

 

ARTICLE
9. GENERAL PROVISIONS

 

 Section
9.1. Notices. Any notices to be given hereunder by either party to the other shall be in writing and may be transmitted
by personal delivery or facsimile or overnight mail. Notices shall be addressed to the parties at the addresses below. Such notice
or communication shall be deemed to have been given or made, as of the date of delivery, as evidenced by a signed declaration
under penalty of perjury in the event of personal delivery, as evidenced by a facsimile confirmation sheet in the event of facsimile
delivery, or as evidenced by prove of overnight delivery in the event of delivery by overnight courier.

 

    	 	 	 

    	 	 	 

    

 

	If to Employer:	Saleen Automotive
	 	2735
Wardlow Rd.

Corona,
CA 92882

Facsimile:
888-729-4827

 

	with a copy
to:	Stephen
    M. Lewis, Esq.
	 	THE
WALKER LAW FIRM,

A
Professional Corporation

3991
MacArthur Blvd., Suite 350

Newport
Beach, California 92660

 

If
to Employee:

 

 Section
9.2. Arbitration.

 

(a)  Any
controversy between Employer and Employee involving the construction or application of any of the terms, provisions, or conditions
of this agreement shall on written request of either party served on the other be submitted to arbitration.

 

(b)  Employer
and Employee shall each appoint one person to hear and determine the dispute. If the two (2) persons so appointed are unable to
agree, then those persons shall select a third impartial arbitrator whose decision shall be final and conclusive upon both parties.

 

(c)  The
cost of arbitration shall be borne by the losing party or in such proportions as the arbitrators decide.

 

Section
9.3. Attorney’s Fees and Costs. If any action at law or in equity is necessary to enforce or interpret the terms
of this agreement, the prevailing party shall be entitled to reasonable attorney’s fees, costs, and necessary disbursements
in addition to any other relief to which that party may be entitled. This provision shall be construed as applicable to the entire
contract.

 

Section
9.4. Entire Agreement. This agreement supersedes any and all other agreements, either oral or in writing, between the parties
hereto with respect to the employment of Employee by Employer and contains all of the covenants and agreements between the parties
with respect to that employment in any manner whatsoever. Each party to this agreement acknowledges that no representation, inducements,
promises, or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are
not embodied herein, and that no other agreement, statement, or promise not contained in this agreement shall be valid or binding
on either party.

 

Section
9.5. Modifications. Any modification of this agreement will be effective only if it is in writing and signed by the party
to be charged.

 

Section
9.6. Effect of Waiver. The failure of either party to insist on strict compliance with any of the terms, covenants, or
conditions of this agreement by the other party shall not be deemed a waiver or relinquishment of any right or power at any one
time or times be deemed a waiver or relinquishment of that right or power for all or any other times.

 

Section
9.7. Partial Invalidity. If any provision in this agreement is held by a court of competent jurisdiction to be invalid,
void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated
in any way.

 

    	 	 	 

    	 	 	 

    

 

Section
9.8. Law Governing Agreement/Venue. This agreement shall be governed by and construed in accordance with the laws of the
State of California. Any legal action, suit, arbitration, or proceeding arising from or relating to this Agreement shall be brought
and maintained in the appropriate court or arbitrator located in and with jurisdiction over Orange County, California and the
parties hereby submit to the jurisdiction thereof.

 

Section
9.9. Understanding Agreement.  Employee has read and fully understands the points listed above and has agreed to adhere
to all sections as presented. Employee has had an opportunity to seek the advice of legal counsel regarding the terms of this
agreement.

 

Section
9.10. Assignment. This agreement, and the Employee’s rights and obligations hereunder, may not be assigned by the
Employee.

 

Section
9.11. Amendment; Waiver. This agreement may be amended, modified, superseded, cancelled, renewed or extended and the terms
or covenants hereof may be waived, only by a written instrument executed by both parties as hereto, as in the case of a waiver,
by the party waiving compliance.

 

Section
9.12 Severability. If any term, provision, or part of this agreement is found by a court or arbitrator to be invalid, illegal
or incapable of being enforced by any rule of law or public policy, all other terms, provisions, and parts of this agreement shall
nevertheless remain in full force and effect as long as the economic or legal substance of the transactions contemplated hereby
is not affected in any manner materially adverse to any party. On such determination that any term, provision or part of this
agreement is invalid, illegal or incapable of being enforced, this agreement shall be deemed to be modified so as to effect the
parties’ original intent as closely as possible to the end that the transactions contemplated by this agreement and the
terms and provisions of this agreement are fulfilled to the greatest extent possible.

 

IN
WITNESS WHEREOF, the parties hereto, by their duly authorized officers or other authorized signatory, have executed this agreement
as of the date first above written. This agreement may be signed in counterparts and facsimile signatures are treated as original
signatures.

 

	“Employee”	 	“Employer”

	 	 	 
	Lawrence
                                         Balingit 
	 	Steve
                                         Saleen 

	( PRINT NAME)	 	( PRINT NAME)
	 	 	 
	/s/
    Lawrence Balingit	 	/s/
    Steve Saleen
	SIGNATURE
	 	SIGNATURE

	 	 	By:
CEO

 

    	 	 	 

    	 	 	 

    

 

The
CFO/COO assists the CEO with developing, communicating and implementing the company’s vision.; formulates and implements
the company’s financial plans, supports all aspects of business planning/development from financial analysis and budget
development.

 

Primary
Duties:

 

		●	Assists
                                         the CEO in raising capital in the private and public markets.

		●	Prepare,
                                         review and approve all Form 10, 8-K, 10-K, 10-Q filings with the SEC

		●	Prepare
                                         month-end, quarter-end and year-end financial statements including year-end activities,
                                         general ledger
maintenance, Balance Sheet and Profit & Loss accounts reconciliation and corporate/overhead cost
allocation.

		●	Report
                                         financial results to the board of directors

		●	Responsible
                                         for long-term budgetary planning and costs management

		●	Prepare
                                         and maintain financial reports; Monthly/ Quarterly/ Annual P&L (actual vs budget);
                                         weekly cash flow
forecast

		●	Complete
                                         Analysis of financial results

		●	Engage
                                         the board or directors, audit and investment committee around issues, trends and changes
                                         in the operations
of the company

		●	Responsible
                                         for development and monitoring of budgets, prepare financial forecasts and monitor performance
vs. budget, consolidate results, prepare rolling 6 months forecasts.

		●	Develop
                                         short, medium and long-term financial plans and projections

		●	Responsible
                                         for audits and proper tax filings; Prepare all fiscal reporting including regulatory
                                         and government
reports

		●	Ensure
                                         legal and regulatory compliance regarding all financial functions

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