SEC Contract Filing

Filing Date: 2019-02-01

Document Content:
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>tv512249_ex10-2.htm
<DESCRIPTION>EXHIBIT 10.2
<TEXT>
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<P STYLE="margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><B>Exhibit 10.2</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><U>EMPLOYMENT AGREEMENT</U></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">This Employment Agreement (this &ldquo;Agreement&rdquo;),
dated effective as of January 1, 2019 (the&nbsp;&ldquo;Effective Date&rdquo;), is by and between Mill City Ventures III, Ltd.,
a Minnesota corporation (the &ldquo;Company&rdquo;), and Joseph A. Geraci, II, a resident of State of Minnesota (&ldquo;Geraci&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">It is hereby agreed as follows:</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Engagement
and Acceptance</U>. The Company hereby engages Geraci to serve as the Company&rsquo;s Chief Executive Officer and perform those
services described in Section 2, in accordance with the terms and conditions hereof, for a term commencing as of the Effective
Date and continuing thereafter until the three-year anniversary of such date (the&nbsp;&ldquo;Term&rdquo;). Geraci hereby accepts
this engagement and agrees to serve as the Chief Executive Officer of the Company upon the terms and conditions specified herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Duties</U>.
During the Term, Geraci will serve in the capacity of the Chief Executive Officer of the Company, and the co-manager of the investment
portfolio of the Company. In all matters, Geraci will report solely and directly to the Board of Directors of the Company (the&nbsp;&ldquo;Board&rdquo;).
Subject to the oversight of the Board, Geraci will be responsible for management of the Company&rsquo;s operations and business
affairs, including but not limited to (a)&nbsp;implementing the Company&rsquo;s investment objectives and strategies, and (b) retaining
staff and procuring services as appropriate and reasonably necessary to carry out the business of the Company. Geraci will have
such authority and responsibilities as are customary for a chief executive officer, subject at all times, however, to the supervision
and oversight of the Board, the corporate bylaws of the Company and the provisions of the Minnesota Business Corporations Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compensation</U>.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
his services hereunder, following the completion of any fiscal year in which any portion of the Term is in effect, the Company
will pay Geraci as follows, subject in all events, however, to paragraph (b) below and any other limitations set forth under the
Investment Company Act of 1940 Act (the &ldquo;1940 Act&rdquo;):</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
base salary equal to $100,000 per annum, payable in accordance with normal payroll practices adopted by the Company, which may
be increased (but not decreased) on an annual basis at the discretion of the Compensation Committee of the Board;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;an
annual bonus, the payment (if any) and amount of which shall be determined in the discretion of the Compensation Committee of the
Board in connection with or after the conclusion of each fiscal year, and which may be subject to certain performance criteria
of Geraci, the Company, the trading price of the Company&rsquo;s common stock, the net asset value of the Company, or any other
criteria established by the Compensation Committee; and</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;subject
to Geraci&rsquo;s execution and delivery of this Agreement, the Company will pay Geraci a bonus in the amount of $10,000.</P>

<P STYLE="font: 10pt Times New Roman, Times,