On November 26, 2018, Chris Bechtel notified the board of directors of Surna Inc. of his resignation as the company's chief executive officer and president and as a member of the board effective November 26, 2018. Mr. Bechtel's resignation was a personal decision and was not the result of any disagreement with the company on any matters relating to the company's operations, policies or practices. On November 28, 2018, Mr. McDonald was appointed by the board to serve as the company's chief executive officer and president until his resignation or earlier termination or other removal there from.

Mr. McDonald will continue to serve as a director of the company but, since he will longer be an independent director. Mr. McDonald will no longer receive compensation under the Company's independent director compensation plan. The initial term of the Employment Agreement commenced on November 28, 2018, the date Mr. McDonald was appointed as chief executive officer and president, and will continue until December 31, 2020.

However, the Company and Mr. McDonald may terminate the Employment Agreement, at any time, with or without cause, by providing the other party with 30-days' prior written notice. In the event Mr. McDonald's employment is terminated by the Company during the initial term without cause, Mr. McDonald will be entitled to receive his base salary for an additional 30 days. Following the initial term, the company and Mr. McDonald may extend the Employment Agreement for additional one-year terms by mutual written agreement.