Document:

EXHIBIT 10.11

 

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT, dated August 6, 2021,
is entered into by and between Telkonet, Inc., a Utah corporation, and its respective current and former parent companies,
successors, predecessors, subsidiaries and other affiliated companies as well as any of their respective current and former
directors, officers, agents, shareholders, and employees ("Telkonet" or "Company") and Richard E.
Mushrush ("Executive"). The Company and Executive may be referred to as the "Parties" or the
"Party."

 

WHEREAS, in connection with the closing
of the transaction (the "Closing") contemplated by the Stock Purchase Agreement dated as of August 6, 2021 by and between
VOA Group Group S.p.A. ("VOA"), an Italian joint stock company (societa per azioni) incorporated under the laws of the Republic
of Italy ("VOA"), and the Company (the "Purchase Agreement"), the Company desires to continue to employ Executive
and Executive desires to continue to be employed by the Company, in each case, upon the terms and conditions set forth 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.

  

(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.

 

(a) Positions and Duties. Telkonet hereby employs Executive
in the capacity of Chief Financial Officer (CFO) 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 (CEO) and Board of Directors ("Board"), may request from time to
time.  

 

2.               Term.
The term of this Agreement shall commence as of the Closing and run for 12 months from the Closing (the "Initial
Term"), unless the Agreement is terminated pursuant to Section 6 below. The Initial Term will automatically renew for an
additional twelve (12) months (the lnitial Term and any renewal term will be referred to as the "Term"), unless (a)
Executive provides written notice to the Company of his intent not to renew the Agreement at least 90 days prior to the end of the
Term in accordance with the notice provision herein; or (b) the Company provides written notice to Executive of its intent not to
renew the Agreement at least 30 days prior to the end of the Term, in accordance with the notice provision herein; or (c) the
Agreement is terminated pursuant to Section 6 below.

 

3.               
Extent of Services. During the Term, 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 CEO shall determine, consistent
therewith. Executive agrees to be bound by the provisions of the Company Handbook (the "Handbook"), as such document may be
modified from time to time. To the extent the provisions of the Handbook conflict with the terms of this Agreement, the terms of this
Agreement shall prevail. Employee acknowledges receiving a copy of the Handbook, and, by signing this Agreement, agrees to be bound by
its terms.

 

	4.	Compensation.

 

(a)            
Salary. Executive shall be paid $122,000 on an annualized basis in accordance with Telkonet's normal payroll practices, and be
subject to all lawfully required withholdings ("Base Salary"). The Base Salary may be increased, at any time, as determined
by the CEO and the Board.

 

(b)            
Bonus. Executive will also be eligible to participate in the Company-sponsored bonus plan (the "Bonus Plan").
Should the Company [and Executive] meet the targets set forth in the Bonus Plan, Executive will be eligible to receive up to 20% of Executive's
Base Salary. The Bonus Program will be presented to Executive at the beginning of the calendar year.

 

(c)            
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.

 

 

 

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(d)            
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.

 

(e)            
Equity. To the extent the Company implements an equity plan, Executive will be eligible to participate in such plan in accordance
with the terms and conditions of the plan as determined by the Compensation Committee of the Company's Board.

 

5.       Paid
Time Off. 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 paid time off ("PTO") for each full calendar year
during the term of this Agreement. Executive agrees to schedule his PTO leave in advance upon written notice to the CEO. Carryover of
PTO 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)       "Cause"
By the Company. 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 in the sole discretion of the Company 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 or the Company] believed Executive had failed to discharge his duties and responsibilities,
and Executive failed to resume substantial performance of such duties and responsibilities on a continual basis in the sole discretion
of the Company 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) in the sole discretion of the Company after written notification thereof to Executive by Telkonet.
Upon termination for Cause, Executive shall be entitled to no further compensation, except for (i) the unpaid portion of Executive's
Base Salary, computed on a pro rata basis to the date of termination; payment of accrued, unused PTO days; (iii) unpaid expenses submitted
in accordance with the Company's policy; and (iv) other payments, benefits or fringe benefits to which the Executive may be entitled
under the terms of any applicable compensation arrangement or benefit plan provided under this Agreement ("Accrued Compensation").

 

(b)          
"Good Reason" By Executive. 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 the address referenced in Section 1(b), provided
however that Executive shall provide the Company with written notice of the Good Reason setting forth in detail Executive's belief
that the Company has breached this Paragraph, and, if the claimed breach is pursuant to Paragraph 6(b)(1), the Company shall have thirty
(30) days to cure. If Executive terminates his employment with Telkonet for Good Reason and the Company fails to cure, as applicable,
Telkonet shall pay Executive, in addition to Accrued Compensation, Executive's Base Salary and COBRA (provided Executive elects COBRA)
in which Executive participated immediately prior to Executive's resignation for Good Reason, for the period starting on the first day
after the resignation date and ending upon expiration of the Term, or if such period is less than twelve (12) months, for a period of
twelve (12) months from notice.

 

(c)          
"Without Cause" By the Company. If Executive is terminated by Telkonet Without Cause, then Executive shall receive:
(i) an amount equal to Executive's base salary for twelve (12) months of Executive's Base Salary as of the date of termination, payable
in accordance with the Company's payroll schedule applicable to all employees (the "Severance Period"); and (ii) pay
for any applicable health insurance premiums, in accordance with the mandates of COBRA during the Severance Period (collectively, the
"Consideration"), subject to Executive complying with Paragraph 6(e) below; provided that if Executive finds other employment
and/or becomes eligible for similar benefits from another employer, Telkonet will no longer be obligated to pay the Consideration to
Executive.

 

(d)          
Death or Disability. If Executive becomes incapacitated or disabled at any time during the Term so as to be unable (either
mentally or physically) to substantially perform the services required of Executive pursuant to this Agreement for a period of ninety
(90) or in any twelve (12) month period, unless otherwise required by law, the Company may, at its option, terminate Executive's employment
hereunder effective immediately upon giving Executive written notice of such termination. If Executive's employment terminates by reason
of death or disability, Executive will be entitled to receive only the Accrued Compensation.

 

 

 

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(e)       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. All payments and benefits to which Executive otherwise may be entitled pursuant
to this Section 6, if any, will cease immediately should Executive breach a provision of this Agreement.

 

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.

 

9.              
Confidential Information, Non-Competition and No-Inducement.

 

(a)       Confidential
Information.

 

(1)       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").

 

(2)           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; or (iii) is information published or disseminated by the Company in the ordinary course of business without
restriction.

 

(3)           Executive
shall not disclose any Confidential Information that he receives from the Company or Telkonet's clients and customers, directly or indirectly,
nor use it in any way at any time, except as required in the course of employment with Telkonet, including, without limitation, (i) to
compete or assist in competing with the Company; (ii) to contact, either directly or indirectly, any existing or potential customers,
clients, contractors or vendors of the Company; or (iii) to interfere with or attempt to interfere with, or change the business relationship
between the Company and its existing or potential customers, clients, contractors or vendors. 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.

 

 

 

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(4)          
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 Confidential Information, including
without limitation, files, records, documents, drawings, graphics, specifications, equipment and similar items, and any and all copies
of such materials that have been removed from the premises of Telkonet, shall be immediately returned by Executive to Telkonet upon demand
or separation from the Company. As defined above, "Telkonet" includes Telkonet, Inc. and its subsidiaries and affiliates and
all successors and predecessors in interest to Telkonet.

 

(5)          
Defend Trade Secrets Act of 2016. Under the federa l Defend Trade Secrets Act of 2016, Employee shall not be held criminally
or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that: (a) is made (i) in confidence
to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose
of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document filed in a lawsuit or other
proceeding, if such filing is made under seal.

 

(b)       Non-Competition.
Non-Competition. 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 covenants and agrees as follows:

 

(1)            
Executive acknowledges that he will be provided with and have access to 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.

 

(2)            
Executive covenants and agrees that during Executive's employment with the Company, and for a period of one year commencing on the date
of Executive's separation from the Company for any reason, including termination with or Without Cause, Employee shall not, directly
or indirectly, be employed by, assist, own, manage, consult, operate or control, or participate in the ownership, management, operation
or control of 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 or prospective business conducted or considered by Telkonet at the
time of Executive's separation from Telkonet.

 

(3)            
Executive further acknowledges that because of the nature of the business, the competitive market is not limited to a defined geographic
area, and therefore, this non-compete provision is not and cannot be, restricted to a geographic area, but rather is restricted as set
forth above.

 

(c)       No-Inducement.
During Executive's employment with the Company and for a period of two years following Executive's separation from the Company for any
reason, Executive agrees that Executive will not, directly or indirectly (including but not limited to, through the use of "headhunters",
recruiters or employment agencies) (i) solicit, hire, entice, persuade, recruit, employ or induce any person who was (or is) an employee,
independent contractor, consultant, vendor and/or agent of the Company during the one (1) year period prior to the end of Executive's
employment with the Company to leave, modify or otherwise interfere with their employment or consulting relationship with the Company;
or (ii) divert, solicit, interfere with, or attempt to take away business from, render services for, accept business from, or do business
with any person or entity that is or was a customer or client (or prospective customer or client) of the Company: (a) with whom Executive
had contact during Executive's employment with the Company; (b) to whom Executive was introduced while employed by the Company; or (c)
whose identity or contact information Executive learned about as a result of Executive being employed by the Company (collectively, "Client").

 

(d)       Reasonableness
of Restrictions. Executive acknowledges and expressly agrees that:

 

(1)       the restrictions set forth
in this Paragraph 9 of this Agreement are reasonable in scope and necessary for the protection of the business and goodwill of Telkonet;

 

(2)            
Executive's services are of a unique and extraordinary nature and that the restrictions contained herein are necessary to protect the
Company;

 

 

 

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(3)            
Executive's experience and capabilities are such that enforcement of Paragraph by injunction will not prevent Executive from earning a
living;

 

(4)            
the Company takes significant steps to preserve and protect its business and competitive advantage and the loss of such advantage could
cause severe and irreparable harm to the Company;

 

(5)            
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.

 

(e)       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.           
Non-disparagement. Executive agrees not to make false or disparaging statements concerning the Company or current or former
officers, directors, members, employees or agents during Executive's employment with the Company or anytime thereafter. Employee further
agrees not to take any actions or conduct himself in any way that would reasonably be expected to adversely affect the reputation or
goodwill of the Company or any of its affiliates or any of its current or former officers, directors, members, employees or agents during
Executive's employment with the Company or anytime thereafter.

 

11.           
Resignations. As applicable, Executive agrees that he shall resign as a director and officer of the Company, and as a director
and/or officer of each other direct and indirect subsidiary, division or affiliate of the Company for which Executive currently serves
as a director or officer, effective as of the separation date, and further agrees to execute and deliver to the Company any instruments
or documents reasonably requested by the Company to effect such resignations.

 

12.           
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.

 

13.           
Mandatory and Confidential Mediation and Arbitration.

 

(a)       Except as otherwise provided
herein, in consideration of the mutual promises set forth herein, Executive and the Company agree any controversy or claim arising out
of or relating to this Agreement, its enforcement, interpretation or arbitrability, or because of an alleged breach, default, or misrepresentation
in connection with any of its provisions, or arising out of or relating to the subject matter of this Agreement, shall be settled by
confidential, final and binding arbitration in Waukesha County, Wisconsin before a single arbitrator, selected in accordance with the
National Rules for the Resolution of Employment Disputes of the American Arbitration Association ("AAA"), in accordance with
the procedures required under Wisconsin law; provided, however, that the Company may seek injunctive relief in order to prevent irreparable
harm or preserve the status quo. The parties understand and agree that this is an agreement to arbitrate under the Federal Arbitration
Act ("FAA"). The parties further understand that this arbitration clause, and its enforcement, shall be governed by the laws
of the State of Wisconsin, except where preempted by the FAA.

 

(b)           Any
award pursuant to said arbitration shall be accompanied by a written opinion of the arbitrator setting forth the reason for the award,
including findings of fact and conclusions of law. The award rendered by the arbitrator shall be conclusive and binding upon the Parties
hereto, and judgment upon the award may be entered, and enforcement may be sought in, any court of competent jurisdiction. A court shall
vacate, modify or correct any award: (i) where the arbitrator's findings of fact are not supported by substantial evidence, (ii) where
the arbitrator's conclusions of law are erroneous; (iii) in accordance with Wisconsin law governing arbitration; or (iv) where the arbitrators
knew of a governing legal principle yet refused to apply it or ignored it altogether. Executive understands and agrees that any demand
for arbitration by either Executive or the Company shall be filed within the statute of limitation that is applicable to the claim(s)
upon which arbitration is sought or required. Each Party shall pay its own expenses of arbitration and the expenses of the arbitrator
(including compensation), unless otherwise provided by law, provided however, if a Party is found to have breached this Agreement, the
prevailing Party shall be entitled to attorneys' fees.

 

 

 

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(c)           Prior
to the commencement of arbitration, Executive and the Company (the "Parties") agree to mediate any dispute arising out of or
in connection with Executive's employment, or termination of employment, with the Company before a neutral mediator appointed in accordance
with the Employment Arbitration Rules and Mediation Procedures (the "Rules") of the American Arbitration Association (AAA) exclusively
at the Company's offices in Waukesha, Wisconsin or such other place agreed upon by the Parties. Such mediation will be non-binding, and
the mediator's reasonable fee will be paid by the Company. Applicable Wisconsin law and the AAA Rules will govern the mediation.

 

(d)           EXECUTIVE
UNDERSTANDS THAT, ABSENT THIS AGREEMENT, EXECUTIVE AND THE COMPANY WOULD HAVE THE RIGHT TO SUE EACH OTHER IN COURT, AND THE RIGHT TO A
JURY TRIAL, BUT, BY THIS AGREEMENT, EXCEPT AS OTHERWISE STATED ABOVE, BOTH PARTIES GIVE UP THAT RIGHT.

 

14.       Miscellaneous.

 

(a)            
Executive shall not assign any part of his rights under this Agreement without the prior written consent of Telkonet. The Company may
assign this Agreement (i) as part of the transfer of all or substantially all of its assets or stock (by way of sale, merger or otherwise)
to another company; or (ii) to any affiliated or unaffiliated company or entity, and, upon such assignment, the burden and benefit hereof
will be upon the assignee.

 

(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, whether written or oral, including without limitation, all
prior employment agreements.

 

(c)       No modification hereof
shall be binding unless made in writing and signed by the Company. 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.

 

(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 and 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: Richard E. Mushrush 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. This Agreement is drafted by counsel for the Company as an accommodation to the Parties and is the product
of deliberation between all Parties. In the event of any dispute surrounding its interpretation, this Agreement shall not be construed
against the drafter, and the Parties expressly waive any right to assert such rule of construction. It shall be deemed to be collectively
drafted by the Parties, and shall not be construed more stringently against any one Party than another.

 

 

 

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(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. Electronically executed or faxed signatures shall be deemed the
equivalent of an original signature. The Agreement becomes effective upon receipt of the Parties' signatures, electronic or otherwise.

 

(i)       Effective
Date. This Agreement is effective upon the Closing, as defined above. If the Closing does not occur for any reason, this Agreement
will be void ab initio.

 

(J)       Survival.
The following Paragraphs of this Agreement shall survive Executive's separation from the Company: Paragraphs 6, 7, 8, 9, 10, 11 and
13.

 

 

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

 

 

	/s/ Jason L. Tienor	 	/s/ Richard E. Mushrush	 
	Jason L. Tienor, President and CEO	 	Richard E. Mushrush	 
	 	 	 	 
	08.06.2021	 	08.06.2021	 
	Date	 	Date	 

 

 

 

 

 

 

 

    	 	7EXHIBIT 10.33

 

EXECUTION VERSION

 

 

Consulting Agreement

 

 

THIS CONSULTING AGREEMENT
(the “Agreement”) is dated January 7, 2022 (the “Effective Date”), by and between Telkonet, Inc., a Utah corporation
(the “Company”) and Piercarlo Gramaglia, in his capacity as principal of his consulting company, VAT# 04992880262 (“Consultant”).

 

WITNESSETH:

 

WHEREAS, in connection with
that certain Stock Purchase Agreement (the “Purchase Agreement”), dated August 6, 2021, by and between the Company and VDA
Group S.p.A., an Italian joint stock company (“VDA”), the Board of Directors of the Company (the “Board”) appointed
Consultant to act as Chief Executive Officer (“CEO”) of the Company effective as of the Closing (as defined in the Purchase
Agreement);

 

WHEREAS, the Company believes
that it would be beneficial to engage Consultant and retain the services of Consultant; and

 

WHEREAS, the parties desire to reduce the terms of such consultant
relationship to writing.

 

NOW, THEREFORE, in consideration
of the foregoing and the terms, covenants, and conditions hereinafter set forth, the parties hereto, intending to be legally bound hereby,
mutually agree as follows:

 

1.             Engagement.
The Company hereby confirms its engagement of Consultant, and Consultant hereby confirms his acceptance of such engagement, to act as
the Company’s CEO effective as of the Effective Date, subject to the terms and conditions set forth herein.

 

2.             Duties
and Responsibilities.

 

2.1               
As CEO, Consultant shall perform such services and duties (the “Services”) as are customary of such position in a comparable
company and as required by the Board, to whom he shall report. In the performance of the Services under this Agreement, the Company will
rely on the Consultant to provide his best efforts and as much time as necessary to perform the Services. The time devoted to accomplish
the duties hereunder shall be within the Consultant’s control, it being acknowledged and understood that the Consultant shall also
devote his business time to fulfil his duties and obligations as a member of the Board and his role as chief executive officer of VDA.

 

2.2               
It is understood that the Services will be rendered primarily from VDA’s offices, although the Consultant may also travel
to the Company’s offices on occasion.

 

3.            
Directorship. Consultant has been appointed to serve on the Company's Board effective as of the Closing and at the pleasure
of the Company's shareholders. Consultant agrees to serve as a Director on the Board without additional compensation.

 

4.            
Term; Termination; Survival.

 

4.1               
Term. The term of this Agreement shall be for a period of eighteen (18) months, beginning on the Effective Date, unless earlier
terminated in accordance with Section 4.2 below.

 

4.2              
Termination by Consultant or Company. Either Consultant or the Company may terminate this Agreement with or without Cause, at any
time upon thirty (30) days’ prior written notice to the other party; provided however, that the Company may terminate this Agreement
immediately for Cause (as defined below) and in its sole discretion upon Consultant’s material breach of the Confidentiality Agreement
(as defined below).

 

 

    	 	 	 

     

    

 

4.3               
Survival. The rights and obligations contained in Section 6 (“Intellectual Property Rights”), , Section 8 (“Confidentiality”)
and Section 11 (“Indemnification”) will survive any termination or expiration of this Agreement.

 

 4.4                Definitions. For purposes of this Agreement, the following definitions shall apply:

 

(a)         
“Cause” shall mean that Consultant: (a) is convicted of, or pleads nolo contendere to, any felony or other offense
involving moral turpitude or any crime related to his service, or commits any unlawful act of personal dishonesty resulting in personal
enrichment in respect of his relationship with the Company or any subsidiary or affiliate or otherwise detrimental to the Company in any
material respect; (b) fails or refuses to consistently perform the Services in good faith and to the best of his ability if such failure
or refusal is not cured within 10 days after written notice thereof to Consultant by the Company; (c) wilfully disregards or fails to
follow instructions from the Board to do any legal act related to the Company’s business and/or the Services; (d) wilfully disregards
or violates material provisions of the Company’s Code of Conduct or other corporate policies; (e) exhibits habitual drunkenness
or engages in substance abuse which in any way materially affects his ability to perform the Services; or (f) commits any material violation
of any state or federal law relating to the workplace environment.

 

 5.             Compensation.

 

5.1               
In consideration of the full and faithful performance of the Services herein covenanted, the Company agrees to pay Consultant an
annual fee of US $30,000 (the “Consulting Fees”), which shall be paid on a pro rata monthly basis on the last day of each
calendar month.

 

5.2               
In addition to the foregoing, the Company shall pay all of Consultant’s reasonable expenses associated with the performance
of the duties as CEO. Invoices for reimbursable expenses shall be sent to the Company’s Chief Financial Officer no later than the
tenth day of the month following the calendar month in which the reimbursable expenses were incurred. The Company shall pay Consultant’s
invoices within fifteen (15) days of the receipt thereof.

 

 6.             Intellectual Property Rights.

 

6.1               
The Company shall have all rights, including international priority rights, in and to all the results and proceeds of the Services
performed under this Agreement (collectively, the “Deliverables”), and all other ideas, procedures, concepts, designs, inventions,
know- how, improvements, trade secrets, developments, discoveries, original works of authorship, suggestions, proposals, computer programs,
marketing campaigns, promotions, copy, art, photography, research materials , footage and any other materials or writings, which Consultant
authors, conceives or makes, either solely or jointly with others in the course of performing the Services, and whether or not patentable,
copyrightable or otherwise legally protectable, which Consultant conceives, develops or otherwise creates in the course of providing the
Services (collectively with the Deliverables, the "Inventions"). Consultant shall, at the Company's sole expense, give the Company
all assistance it reasonably requires to perfect, protect, and use its rights to Inventions, including by signing all documents and doing
all things and supplying all information requested by the Company to transfer Consultant's entire right, title, and interest in Inventions,
and to enable the Company to obtain patent, copyright, or trademark protection for Inventions anywhere in the world. Consultant hereby
irrevocably appoints the Company as Consultant's agent and attorney -in-fact for purposes of effectuating the acts contemplated in this
Section 6, including, without limitation, execution of any documents described in Section 6.2 below, such agency and power being an agency
and power coupled with an interest. Consultant agrees and understands that compliance with the covenants and agreements contained in this
Section 6 is not conditioned upon the payment of any additional or special consideration.

 

6.2               
All Inventions shall be deemed to be works made for hire for the Company and shall be the sole and exclusive property of the Company
for all copyright terms, renewal terms and revivals thereof throughout the world, for all uses and purposes whatsoever. The Company shall
have the sole and exclusive right to exploit in any manner and media, whether now known or hereafter devised, all rights in Inventions
throughout the world in perpetuity without any additional payment to Consultant or any other individual or entity. If, for any reason,
any Invention is found not to be a work made for hire, Consultant hereby irrevocably assigns to the Company all right, title and interest
to said Invention, including, without limitation, the copyrights to it, and Consultant agrees to execute such documents as may be necessary
to evidence such assignment(s). Consultant also waives any moral rights or similar rights which Consultant may have, including, but not
limited to, those rights arising under federal or state law in the United States or under the laws of any other country that convey similar
or other types of moral rights.

 

 

    	 	2	 

     

    

 

6.3               
Subject to Sections 6.1 and 6.2, Consultant will provide the Company with prior written notice if, in the course of performing
the Services, Consultant incorporates into any Invention or utilizes in the performance of the Services any invention, discovery, idea,
original works of authorship, development, improvements, trade secret, concept, or other proprietary information or intellectual property
right owned by Consulant or in which Consultant has an interest, prior to, or separate from, performing the Services under this Agreement
(“Prior Inventions”), and the Company is hereby granted a nonexclusive, royalty-free, perpetual, irrevocable, transferable,
worldwide license (with the right to grant and authorize sublicenses) to make, have made, use, import, offer for sale, sell, reproduce,
distribute, modify, adapt, prepare derivative works of, display, perform, and otherwise exploit such Prior Inventions, without restriction,
including, without limitation, as part of or in connection with such Invention, and to practice any method related thereto. Consultant
will not incorporate any invention, discovery, idea, original work of authorship, development, improvement, trade secret, concept, or
other proprietary information or intellectual property right owned by any third party into any Invention without Company’s prior
written permission.

 

6.4                 
It is understood that this Section 6 shall not be construed to relate to the services Consultant performs for VDA, and the Company
has no rights with respect to intellectual property relating to Consultant’s activities with respect to VDA.

 

 7.             Independent Contractor Relationship.

 

7.1               
Consultant’s relationship with the Company is that of an independent contractor, and nothing in this Agreement is intended
to, or should be construed to, create a partnership, agency, joint venture or employment relationship. Consultant will take no position
with respect to or on any tax return or application for benefits, or in any proceeding directly or indirectly involving Company, that
is inconsistent with Consultant being an independent contractor (and not an employee) of Company. As CEO, Consultant shall have authority
to make binding decisions and contractual commitments on behalf of the Company consistent with the authority granted by the Board.

 

7.2               
Consultant is not and will not be considered an employee of the Company, and as a result will not be entitled to benefits based
on work performed under this Agreement provided by the Company to its employees including but not limited to life insurance, death benefits,
accident or health insurance, qualified pension or retirement plans, or any other employee benefit. Consultant hereby waives any right
to said Company employee benefits by executing this Agreement. If, notwithstanding the foregoing, Consultant is reclassified as an employee
of Company by the U.S. Internal Revenue Service, the U.S. Department of Labor, or any other federal or state or foreign agency as the
result of any administrative or judicial proceeding, Consultant hereby waives and foregoes the right to receive any employee benefits
under any plans or programs established or maintained by the Company retroactively and prospectively, other than the compensation expressly
set forth in Section 5 above.

 

7.3               
Consultant is solely responsible for, and will file, on a timely basis, all tax returns and payments required to be filed with,
or made to, any federal, state or local tax authority with respect to the performance of services and receipt of fees under this Agreement.
Consultant is solely responsible for, and must maintain adequate records of, expenses incurred in the course of performing services under
this Agreement. Consultant will comply with all applicable federal, state, local, and foreign laws governing self-employed individuals,
including laws requiring the payment of taxes, such as income and employment taxes, and social security, disability, and other contributions.
No part of Consultant’s compensation will be subject to withholding by the Company for the payment of any social security, federal,
state or any other employee payroll taxes. The Company will regularly report amounts paid to Consultant by filing Form 1099-MISC or any
comparable form applicable to non-US residents with the Internal Revenue Service as required by law.

 

 

 

 

    	 	3	 

     

    

 

8.            
Confidentiality. Consultant acknowledges that performance of the Services called for in this Agreement shall require the Company
to disclose to Consultant certain Confidential Information (as defined below). Consultant agrees to hold and maintain any Confidential
Information in strict confidence for the sole and exclusive benefit of the Company and to at all times use appropriate measures to protect
the secrecy of and avoid disclosure and unauthorized use of the Confidential Information, including without limitation, employing at
least those measures that Consultant uses with respect to its own confidential information of a similar nature, but in no case less than
a reasonable degree of care. Consultant agrees not to use or disclose any Confidential Information (whether or not conceived, originated,
discovered, or developed by Consultant) except as reasonably necessary to perform the Services unless the Company consents to such use
or disclosure in writing, subject to the further provisions of this Section 8. Consultant shall not disclose any Confidential Information
to any third parties and shall ensure that only its employees that have a need to know will have access to the Confidential Information,
provided, that they are subject to confidentiality obligations at least as protective as those contained herein to protect such Confidential
Information. Consultant understands that these obligations remain even after Consultant’s engagement ends and shall survive expiration
or termination of this Agreement for any reason. As used herein, “Confidential Information” shall mean all information, data,
reports, analyses, compilations, transcriptions, records, notes, summaries, discussions, studies, test results, sketches, graphs, designs,
photographs, drawings, and other materials (in whatever form or media maintained) containing or reflecting information relating to the
Company provided to, learned, or developed by Consultant or its agents during the term of this Agreement, including but not limited to:
(i) all work product; (ii) information or materials which relate to the Company’s assets, applications, liabilities, properties,
accounts, financial information, budgets, operations, marketing studies, plans and materials, services, products, processes, trade secrets,
intellectual property or other proprietary rights, know-how, concepts, ideas, inventions, discoveries, research and development, business
plans, models or strategies, manufacturing or distribution methods, processes or systems, software and related documentation, object
code, source code, database technologies, systems, structures, architectures, customers, customer lists, customer requirements, vendors,
suppliers, supplier lists, advertisers, personnel, training techniques, pricing and other proprietary information; (iii) all data, reports,
analysis, compilations, extracts, summaries, writings, studies, interpretations, forecasts, records, or other materials (whether documentary,
electronic or otherwise) prepared by or on behalf of the Company that relate to, are based on, or contain any of the information listed
in subsection (ii) above or that reflect a summary, review or evaluation of any of the business, plans, operations, data, documents,
or customers and advertisers of the Company; and/or (iv) any other information that is marked or expressly designated as “Confidential”
by the Company or information that, by reason of its nature, would reasonably be concluded to be of a confidential nature. Confidential
Information shall not include (x) information that is in the public domain through no fault of the Consultant; (y) information published
or disseminated by the Company in the ordinary course of business without restriction; and (z) information received from a third party
not under an obligation to keep such information confidential and without breach of this Agreement by Consultant. Notwithstanding the
foregoing, the Company acknowledges and agrees that any disclosure of Confidential Information made by Consultant to any VDA Affiliate
(as defined below) or any of their respective employees, officers, directors, advisors and outside counsel (collectively, its "Representatives"),
and any use of such Confidential Information by a VDA Affiliate or its Representatives, shall not be deemed a violation of this Section
8; provided that such information is not disclosed by such VDA Affiliate or its Representatives to any other third party and provided
further, that as a condition to such disclosure, Consultant shall inform such VDA Affiliate and its Representatives of the confidential
nature of the Confidential Information and such VDA Affiliate and its Representatives must be subject to confidentiality obligations
at least as protective as those contained herein to protect such Confidential Information. Consultant acknowledges and agrees that any
and all Confidential Information shall be the sole property of and exclusively owned by Company, including any and all improvements,
modifications, and derivative works thereof, whether made by the Company, Consultant, or otherwise. As used herein, “VDA Affiliate”
means VDA and any other individual, corporation, company (including any company limited by shares, limited liability company or joint
stock company), firm, society or other enterprise, association, organization or entity, directly or indirectly controlling, controlled
by or under common control with VDA.

 

9.            
Notice of Immunity Under the Economic Espionage Act of 1996, as amended by the Defend Trade Secrets Act of 2016. Notwithstanding
any other provision of this Agreement:

 

9.1               
Consultant will not be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade
secret that is made: (1) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney
and solely for the purpose of reporting or investigating a suspected violation of law; or (2) in a complaint or other document that is
filed under seal in a lawsuit or other proceeding.

 

 

    	 	4	 

     

    

 

9.2               
If Consultant files a lawsuit for retaliation by the Company for reporting a suspected violation of law, Consultant may disclose
the Company's trade secrets to Consultant's attorney and use the trade secret information in the court proceeding if Consultant (1) files
any document containing the trade secret under seal; and (2) does not disclose the trade secret, except pursuant to court order.

 

9.3               
Consultant acknowledges and agrees that the Confdentiality Agreement is intended to be for the benefit of the Company and any third
party (including any customer of the Company) that has entrusted information or physical material to the Company in confidence.

 

10.         
No Conflict of Interest. During the term of this Agreement, Consultant will not accept work, enter into a contract, or accept
an obligation from any third party, inconsistent or incompatible with Consultant’s obligations, or the scope of services rendered
for the Company, under this Agreement; provided however, that the performance of any obligations Consultant may have as director or officer
of VDA shall not be deemed a violation of this Section 10.

 

11.         
Indemnification. The Company shall, at its own expense, defend, indemnify and hold harmless Consultant from and against any
and all liabilities, claims, actions, losses, costs and expenses (including reasonable attorneys' fees and disbursements) (collectively,
“Claims”) (i) relating to or arising out of the Company's actual or alleged violation of any law, statute, ordinance, order,
rule or regulation; or (ii) to the extent such Claim is primarily and directly based upon information or direction provided by the Company
to Consultant; provided, however, the foregoing shall not apply to any portion of such Claims to the extent it is found to have resulted
primarily and directly from Consultant’s (A) infringement of any United States patent, foreign letters patent, license, trademark,
copyright, trade secret or any other proprietary right other than as may be directed or induced by the Company for the Services provided
by Consultant hereunder; (B) breach of this Agreement or any other agreement; (C) violation of any law, statute, ordinance, order, rule
or regulation; or (D) any gross negligence or intentional misconduct in connection with such performance. This indemnification is not
voided by the termination of this Agreement. The indemnification applicable to the Company’s officers and directors shall not be
affected by and shall be deemed independent of this paragraph.

 

12.         
Limitation of Liability. Neither party shall be liable to the other party hereunder for penalties or liquidated damages or
for special, consequential, or incidental damages of any type or kind resulting from any breach of this Agreement.

 

13.         
Subcontracting and Assignment; Successors and Assigns. Consultant may not assign, subcontract or otherwise delegate his obligations
under this Agreement without the Company’s prior written consent. Subject to the foregoing, this Agreement will be for the benefit
of the Company’s successors and assigns.

 

14.          
Waivers. The provisions of this Agreement may not be waived, except pursuant to a writing executed by the parties. A party's
failure to enforce any provision or provisions of this Agreement shall not in any way be construed as a waiver of any such provision or
provisions, or prevent a party thereafter from enforcing each and every other provision of this Agreement.

 

15.          
Notices. All notices to be provided hereunder shall be in writing and delivered and mailed to the parties at the address that
each party provides the other from time to time in writing.

 

 16.           Miscellaneous.

 

16.1             
This Agreement is governed by the laws of the State of Wisconsin without reference to any conflict of laws principles that would
require the application of the laws of any other jurisdiction. Consultant irrevocably consents to the personal jurisdiction of the state
and federal courts located in Milwaukee County, Wisconsin for any suit or action arising from or related to this Agreement, and waives
any rights Consultant may have to object to the venue of such courts. Consultant further agrees that these courts will have exclusive
jurisdiction over any such suit or action initiated by Consultant against Company.

 

 

 

    	 	5	 

     

    

 

16.2             
This Agreement (including any exhibits hereto) forms the complete and exclusive statement of the agreement between the parties
concerning the subject matter hereof. This Agreement supersedes any other discussions, representations, agreements or arrangements between
the parties with respect to the subject matter hereof. The terms of this Agreement cannot be amended or modified without written agreement
signed by Consultant and a duly authorized officer of the Company.

 

16.3             
The provisions of this Agreement are severable and if any provision contained in this Agreement shall, for any reason, be held
invalid or unenforceable in any respect, such provision will be construed and enforced so as to render it valid and enforceable consistent
with the general intent of the parties insofar as possible under applicable law.

 

16.4             
Consultant’s obligations under Sections 6 and 8 of this Agreement are of a unique character that gives them particular value;
breach of any of such obligations will result in irreparable and continuing damage to the Company for which there will be no adequate
remedy at law; and, in the event of such breach, the Company will be entitled to injunctive relief and/or a decree for specific performance,
and such other and further relief as may be proper (including monetary damages if appropriate).

 

16.5             
This Agreement may be executed in any number of counterparts with the same effect as if all of the parties hereto had signed the
same document. All counterparts shall be construed together and shall constitute one agreement. Delivery of an executed signature page
of this Agreement by any electronic means that reproduces an image of the actual executed signature page shall be as effective as delivery
of a manually executed counterpart of this Agreement.

 

[Signature Page Follows]

 

    	 	6	 

     

    

 

 

IN WITNESS WHEREOF, Consultant and the Company have
executed this Consulting Agreement as of the date first set forth above.

 

 

TELKONET, INC.

 

 

By: /s/ Tim S. Ledwick                   

Name: Tim S. Ledwick

Title: Authorized Signatory

Date: 11.15.2021

 

 

CONSULTANT

 

/s/ Piercarlo
Gramaglia                        

Piercarlo Gramaglia

Date: 01.07.2022

 

 

 

 

 

 

    	 	7

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