On February 20, 2022, David L. Anderson (“Anderson”), the Executive Vice President and Chief Operating Officer of Basanite Inc., provided written notice to the Board of Directors of the Company of his resignation from the Company. Anderson's notice contained a purported claim for a separation payment from the Company on account of “Good Reason” under Section 8(a) of Anderson's employment agreement with the Company, dated February 1, 2019 (as amended, the “Employment Agreement”). On February 24, 2022, the Company provided written notice to Anderson that his resignation of employment with the Company was accepted, effective immediately.

As such, Anderson is no longer affiliated with the Company as of February 24, 2022. In its notice to Anderson, the Company denied any assertions by Anderson of “Good Reason” to resign his employment and any claim for alleged payments due to Anderson under the Employment Agreement.