Exhibit
10.1


 


INDEPENDENT
DIRECTOR AGREEMENT


 OF




AELUMA,
INC.


 


This
INDEPENDENT DIRECTOR AGREEMENT (the “Agreement”) is made and entered into as of December 1, 2021 (the “Effective Date”),
by and between AELUMA, INC., a Delaware corporation (the “Company”), and Palvi Mehta, a citizen of United States, with a
permanent residence at [   ] (the “Independent Director”).


 


WHEREAS,
the Company desires to engage the Independent Director, and the Independent Director desires to serve, as a non-employee director of
the Company, subject to the terms and conditions contained in this Agreement.


 


NOW,
THEREFORE, in consideration of the mutual promises and covenants contained herein, the receipt of which is hereby acknowledged, the Company
and the Independent Director, intending to be legally bound, hereby agree as follows:


 


1. DEFINITIONS.


 


(a)
“Corporate Status” describes the capacity of the Independent Director with respect to the Company and the services
performed by the Independent Director in that capacity.


 


(b) “Entity”
shall mean any corporation, partnership, limited liability company, joint venture, trust, foundation, association, organization or other
legal entity.


 


(c) “Proceeding”
shall mean any threatened, pending or completed claim, action, suit, arbitration, alternate dispute resolution process, investigation,
administrative hearing, appeal, or any other proceeding, whether civil, criminal, administrative or investigative, whether formal or
informal, including a proceeding initiated by the Independent Director pursuant to Section 12 of this Agreement to enforce the Independent
Director’s rights hereunder.


 


(d) “Expenses”
shall mean all reasonable fees, costs and expenses, approved by the Company in advance and reasonably incurred in connection with any
Proceeding, including, without limitation, attorneys’ fees, disbursements and retainers, fees and disbursements of expert witnesses,
private investigators, professional advisors (including, without limitation, accountants and investment bankers), court costs, transcript
costs, fees of experts, travel expenses, duplicating, printing and binding costs, telephone and fax transmission charges, postage, delivery
services, secretarial services, and other disbursements and expenses.


 


(e) “Liabilities”
shall mean judgments, damages, liabilities, losses, penalties, excise taxes, fines and amounts paid in settlement.


 


(f) “Parent”
shall mean any corporation or other entity (other than the Company) in any unbroken chain of corporations or other entities ending with
the Company, if each of the corporations or entities, other than the Company, owns stock or other interests possessing 50% or more of
the economic interest or the total combined voting power of all classes of stock or other interests in one of the other corporations
or entities in the chain.


 






     


     


    

 


(g) “Subsidiary”
shall mean any corporation or other entity (other than the Company) in any unbroken chain of corporations or other entities beginning
with the Company, if each of the corporations or entities, other than the last corporation or entity in the unbroken chain, owns stock
or other interests possessing 50% or more of the economic interest or the total combined voting power of all classes of stock or other
interests in one of the other corporations or entities in the chain.


 


2. SERVICES
OF INDEPENDENT DIRECTOR. While this Agreement is in effect, the Independent Director shall perform duties as an independent director
and/or a member of the committees of the Board, be compensated for such and be reimbursed expenses in accordance with the Schedule A
attached to this Agreement, subject to the following:


 


(a) The
Independent Director will perform services as is consistent with Independent Director’s position with the Company, as required
and authorized by the By-Laws and Articles of Incorporation of the Company, and in accordance with high professional and ethical standards
and all applicable laws and rules and regulations pertaining to the Independent Director’s performance hereunder, including without
limitation, laws, rules and regulations relating to a public company.


 


(b) The
Independent Director is solely responsible for taxes arising out of any compensation paid by the Company to the Independent Director
under this Agreement, and the Independent Director understands that he will be issued a U.S. Treasury form 1099 for any compensation
paid to him by the Company. The Independent Director acknowledges and agrees that because he is not an employee of the Company the Company
will not withhold any amounts for taxes from any of his payments under the Agreement.


 


(c) The
Company may offset any and all monies payable to the Independent Director to the extent of any monies owing to the Company from the Independent
Director.


 


(d) The
rules and regulations of the Company notified to the Independent Director, from time to time, apply to the Independent Director. Such
rules and regulations are subject to change by the Company in its sole discretion. Notwithstanding the foregoing, in the event of any
conflict or inconsistency between the terms and conditions of this Agreement and rules and regulations of the Company, the terms of this
Agreement control.


 


3. REQUIREMENTS
OF INDEPENDENT DIRECTOR. During the term of the Independent Director’s services to the Company hereunder, Independent Director
shall observe all applicable laws and regulations relating to independent directors of a public company as promulgated from to time,
and shall not: (1) be an employee of the Company or any Parent or Subsidiary; (2) accept, directly or indirectly, any consulting, advisory,
or other compensatory fee from the Company other than as a director and/or a member of a committee of the Board; (3) be an affiliated
person of the Company or any Parent or Subsidiary, as the term “affiliate” is defined in 17 CFR 240.10A-3(e)(1), other than
in his capacity as a director and/or a member of a committee of the Board; (4) possess an interest in any transaction with the Company
or any Parent or Subsidiary, for which disclosure would be required pursuant to 17 CFR 229.404(a), other than in his capacity as a director
and/or a member of a committee of the Board committees; and (5) be engaged in a business relationship with the Company or any Parent
or Subsidiary, for which disclosure would be required pursuant to 17 CFR 229.404(b), except that the required beneficial interest therein
shall be modified to be 5% hereby.


 






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4. REPORT
OBLIGATION. While this Agreement is in effect, the Independent Director shall immediately report to the Company in the event: (1) the
Independent Director knows or has reason to know or should have known that any of the requirements specified in Section 3 hereof is not
satisfied or is not going to be satisfied; and (2) the Independent Director simultaneously serves on an audit committee of any other
public company.


 


5. TERM
AND TERMINATION. The term of this Agreement and the Independent Director’s services hereunder shall be for one (1) year from the
Effective Date, unless terminated as provided for in this Section 5. This Agreement and the Independent Director’s services hereunder
shall terminate upon the earlier of the following:


 


(a) Removal
of the Independent Director as a director of the Company, upon proper Board or stockholder action in accordance with the By-Laws and
Articles of Incorporation of the Company and applicable law;


 


(b) Resignation
of the Independent Director as a director of the Company upon written notice to the Board of Directors of the Company;


 


(c) Director’s
failure to be reelected by the Company’s stockholders at a meeting duly called for such purpose; or


 


(d) Termination
of this Agreement by the Company, in the event any of the requirements specified in Section 3 hereof is not satisfied, as determined
by the Company in its sole discretion.


 


6. LIMITATION
OF LIABILITY. In no event shall the Independent Director be individually liable to the Company or its shareholders for any damages for
breach of fiduciary duty as an independent director of the Company, unless the Independent Director’s act or failure to act involves
intentional misconduct, fraud or a knowing violation of law.


 


7. AGREEMENT
OF INDEMNITY. The Company agrees to indemnify the Independent Director as follows:


 


(a) Subject
to the exceptions contained in Section 8(a) below, if the Independent Director was or is a party or is threatened to be made a party
to any Proceeding (other than an action by or in the right of the Company) by reason of the Independent Director’s Corporate Status,
the Independent Director shall be indemnified by the Company against all Expenses and Liabilities incurred or paid by the Independent
Director in connection with such Proceeding (referred to herein as “INDEMNIFIABLE EXPENSES” and “INDEMNIFIABLE LIABILITIES,”
respectively, and collectively as “INDEMNIFIABLE AMOUNTS”).


 






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(b) Subject
to the exceptions contained in Section 8(b) below, if the Independent Director was or is a party or is threatened to be made a party
to any Proceeding by or in the right of the Company, to procure a judgment in its favor by reason of the Independent Director’s
Corporate Status, the Independent Director shall be indemnified by the Company against all Indemnifiable Expenses.


 


(c) For
purposes of this Agreement, the Independent Director shall be deemed to have acted in good faith in conducting the Company’s affairs
as an independent director of the Company and/or a member of a committee of the Board of the Company, if the Independent Director: (i)
exercised or used the same degree of diligence, care, and skill as an ordinarily prudent man would have exercised or used under the circumstances
in the conduct of his own affairs; or (ii) took, or omitted to take, an action in reliance upon advise of counsels or other professional
advisors for the Company, or upon statements made or information furnished by other directors, officers or employees of the Company,
or upon a financial statement of the Company provided by a person in charge of its accounts or certified by a public accountant or a
firm of public accountants, which the Independent Director had reasonable grounds to believe to be true.


 


8. EXCEPTIONS
TO INDEMNIFICATION. Director shall be entitled to indemnification under Sections 7(a) and 7(b) above in all circumstances other than
the following:


 


(a) If
indemnification is requested under Section 7(a) and it has been adjudicated finally by a court or arbitral body of competent jurisdiction
that, in connection with the subject of the Proceeding out of which the claim for indemnification has arisen, (i) the Independent Director
failed to act in good faith and in a manner the Independent Director reasonably believed to be in or not opposed to the best interests
of the Company, (ii) the Independent Director had reasonable cause to believe that the Independent Director’s conduct was unlawful,
or (iii) the Independent Director’s conduct constituted willful misconduct, fraud or knowing violation of law, then the Independent
Director shall not be entitled to payment of Indemnifiable Amounts hereunder.


 


(b) If
indemnification is requested under Section 7(b) and


 


(i) it
has been adjudicated finally by a court or arbitral body of competent jurisdiction that, in connection with the subject of the Proceeding
out of which the claim for indemnification has arisen, the Independent Director failed to act in good faith and in a manner the Independent
Director reasonably believed to be in or not opposed to the best interests of the Company, including without limitation, the breach of
Section 4 hereof by the Independent Director, the Independent Director shall not be entitled to payment of Indemnifiable Expenses hereunder;
or


 


(ii) it
has been adjudicated finally by a court or arbitral body of competent jurisdiction that the Independent Director is liable to the Company
with respect to any claim, issue or matter involved in the Proceeding out of which the claim for indemnification has arisen, including,
without limitation, a claim that the Independent Director received an improper benefit or improperly took advantage of a corporate opportunity,
the Independent Director shall not be entitled to payment of Indemnifiable Expenses hereunder with respect to such claim, issue or matter.


 






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9. WHOLLY
OR PARTLY SUCCESSFUL. Notwithstanding any other provision of this Agreement, and without limiting any such provision, to the extent that
the Independent Director is, by reason of the Independent Director’s Corporate Status, a party to and is successful, on the merits
or otherwise, in any Proceeding, the Independent Director shall be indemnified in connection therewith. If the Independent Director is
not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues
or matters in such Proceeding, the Company shall indemnify the Independent Director against those Expenses reasonably incurred by the
Independent Director or on the Independent Director’s behalf in connection with each successfully resolved claim, issue or matter.
For purposes of this section, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice,
shall be deemed to be a successful result as to such claim, issue or matter.


 


10. ADVANCES
AND INTERIM EXPENSES. The Company may pay to the Independent Director all Indemnifiable Expenses incurred by the Independent Director
in connection with any Proceeding, including a Proceeding by or in the right of the Company, in advance of the final disposition of such
Proceeding, if the Independent Director furnishes the Company with a written undertaking, to the satisfaction of the Company, to repay
the amount of such Indemnifiable Expenses advanced to the Independent Director in the event it is finally determined by a court or arbitral
body of competent jurisdiction that the Independent Director is not entitled under this Agreement to indemnification with respect to
such Indemnifiable Expenses.


 


11. PROCEDURE
FOR PAYMENT OF INDEMNIFIABLE AMOUNTS. The Independent Director shall submit to the Company a written request specifying the Indemnifiable
Amounts, for which the Independent Director seeks payment under Section 7 hereof and the Proceeding of which has been previously notified
to the Company and approved by the Company for indemnification hereunder. At the request of the Company, the Independent Director shall
furnish such documentation and information as are reasonably available to the Independent Director and necessary to establish that the
Independent Director is entitled to indemnification hereunder. The Company shall pay such Indeminfiable Amounts within thirty (30) days
of receipt of all required documents.


 


12. REMEDIES
OF INDEPENDENT DIRECTOR.


 


(a) RIGHT
TO PETITION COURT. In the event that the Independent Director makes a request for payment of Indemnifiable Amounts under Sections 7,
9-11 above, and the Company fails to make such payment or advancement in a timely manner pursuant to the terms of this Agreement, the
Independent Director may petition the appropriate judicial authority to enforce the Company’s obligations under this Agreement.


 


(b) BURDEN
OF PROOF. In any judicial proceeding brought under Section 12 (a) above, the Company shall have the burden of proving that the Independent
Director is not entitled to payment of Indemnifiable Amounts hereunder.


 


(c) EXPENSES.
The Company agrees to reimburse the Independent Director in full for any Expenses incurred by the Independent Director in connection
with investigating, preparing for, litigating, defending or settling any action brought by the Independent Director under Section 12
(a) above, or in connection with any claim or counterclaim brought by the Company in connection therewith.


 


(d) VALIDITY
OF AGREEMENT. The Company shall be precluded from asserting in any Proceeding, including, without limitation, an action under Section
12 (a) above, that the provisions of this Agreement are not valid, binding and enforceable or that there is insufficient consideration
for this Agreement and shall stipulate in court that the Company is bound by all the provisions of this Agreement.


 






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(e) FAILURE
TO ACT NOT A DEFENSE. The failure of the Company (including its Board of Directors or any committee thereof, independent legal counsel,
or stockholders) to make a determination concerning the permissibility of the payment of Indemnifiable Amounts or the advancement of
Indemnifiable Expenses under this Agreement shall not be a defense in any action brought under Section 12 (a) above.


 


13. PROCEEDINGS
AGAINST COMPANY. Except as otherwise provided in this Agreement, the Independent Director shall not be entitled to payment of Indemnifiable
Amounts or advancement of Indemnifiable Expenses with respect to any Proceeding brought by the Independent Director against the Company,
any Entity which it controls, any director or officer thereof, or any third party, unless the Company has consented to the initiation
of such Proceeding. This section shall not apply to counterclaims or affirmative defenses asserted by the Independent Director in an
action brought against the Independent Director.


 


14. SUBROGATION.
In the event of any payment of Indemnifiable Amounts under this Agreement, the Company shall be subrogated to the extent of such payment
to all of the rights of contribution or recovery of the Independent Director against other persons, and the Independent Director shall
take, at the request of the Company, all reasonable action necessary to secure such rights, including the execution of such documents
as are necessary to enable the Company to bring suit to enforce such rights.


 


15. AUTHORITY.
Each party has all necessary power and authority to enter into, and be bound by the terms of, this Agreement, and the execution, delivery
and performance of the undertakings contemplated by this Agreement have been duly authorized by each party hereto.


 


16. SUCCESSORS
AND ASSIGNMENT. This Agreement shall (a) be binding upon and inure to the benefit of all successors and assigns of the Company (including
any transferee of all or a substantial portion of the business, stock and/or assets of the Company and any direct or indirect successor
by merger or consolidation or otherwise by operation of law), and (b) be binding on and shall inure to the benefit of the heirs, personal
representatives, executors and administrators of the Independent Director. The Independent Director has no power to assign this Agreement
or any rights and obligations hereunder.


 


17. CHANGE
IN LAW. To the extent that a change in applicable law (whether by statute or judicial decision) shall mandate broader or narrower indemnification
than is provided hereunder, the Independent Director shall be subject to such broader or narrower indemnification and this Agreement
shall be deemed to be amended to such extent.


 






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18. SEVERABILITY.
Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable
law, but if any provision of this Agreement, or any clause thereof, shall be determined by a court of competent jurisdiction to be illegal,
invalid or unenforceable, in whole or in part, such provision or clause shall be limited or modified in its application to the minimum
extent necessary to make such provision or clause valid, legal and enforceable, and the remaining provisions and clauses of this Agreement
shall remain fully enforceable and binding on the parties.


 


19. MODIFICATIONS
AND WAIVER. Except as provided in Section 17 hereof with respect to changes in applicable law which broaden or narrow the right of the
Independent Director to be indemnified by the Company, no supplement, modification or amendment of this Agreement shall be binding unless
executed in writing by each of the parties hereto. No delay in exercise or non-exercise by the Company of any right under this Agreement
shall operate as a current or future waiver by it as to its same or different rights under this Agreement or otherwise.


 


20. NOTICES.
All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given (a)
when delivered by hand, (b) when transmitted by facsimile or electronic mail and receipt is acknowledged, or (c) if mailed by certified
or registered mail with postage prepaid, on the third business day after the date en which it is so mailed:


 


If
to Independent Director, to: Palvi Mehta, [address].


 


If
to the Company, to: Jonathan Klamkin, AELUMA, INC., 27 Castilian Drive, Goleta, CA 93117 or to such other address as may have been furnished
in the same manner by any party to the others.


 


21. GOVERNING
LAW. This Agreement shall be governed by and construed and enforced under the laws of Delaware.


 


22. CONSENT
TO JURISDICTION. The parties hereby consent to the jurisdiction of the courts having jurisdiction over matters arising in New York County,
New York for any proceeding arising out of or relating to this Agreement. The parties agree that in any such proceeding, each party shall
waive, if applicable, inconvenience of forum and right to a jury.


 


23. AGREEMENT
GOVERNS. This Agreement is to be deemed consistent wherever possible with relevant provisions of the By-Laws and Articles of Incorporation
of the Company; however, in the event of a conflict between this Agreement and such provisions, the provisions of this Agreement shall
control.


 


24. INDEPENDENT
CONTRACTOR. The parties understand, acknowledge and agree that the Independent Director’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 relationship other than
that of independent contractor. Nothing in this Agreement shall be construed as a contract of employment/engagement between the Independent
Director and the Company or as a commitment on the part of the Company to retain the Independent Director in any capacity, for any period
of time or under any specific terms or conditions, or to continue the Independent Director’s service to the Company beyond any
period.


 


25. ENTIRE
AGREEMENT. This Agreement constitutes the entire agreement between the Company and the Independent Director with respect to the subject
matter hereof, and supersedes all prior understandings and agreements with respect to such subject matter.


 


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IN
WITNESS WHEREOF, the parties hereto have executed this Independent Director Agreement as of the day and year first above written.


 


	Company:
    AELUMA, INC.	 
	 	 
	/s/ Jonathan
    Klamkin	 
	Authorized
    Person: Jonathan Klamkin	 
	 	 
	Independent
    Director: Palvi Mehta	 
	 	 
	/s/ Palvi
    Mehta	 
	Signature	 


 




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SCHEDULE
A


 


IPOSITION:INDEPENDENT
DIRECTOR.


 


II. COMPENSATION:


 


FEES.
For all services rendered by the Independent Director pursuant to this Agreement, both during and outside of normal working hours, including
but not limited to, attending all required meetings of the Board or applicable committees thereof, executive sessions of the independent
directors, reviewing filing reports and other corporate documents as requested by the Company, providing comments and opinions as to
business matters as requested by the Company, the Company agrees to compensate the Independent Director as set forth herein.  


 


STOCK.
The Independent Director shall be granted a total amount of 125,000 stock options to purchase the Company’s Common Stock, at an
exercise price of $2.00 per share, which shall vest in accordance with the following schedule:


 


		●	50,000
                                            stock options – for one year of service as independent director with vesting in equal
                                            quarterly increments



 


		●	37,500
                                            stock options – for a second year of service as independent director with vesting in
                                            equal quarterly increments*



 


		●	37,500
                                            stock options – for a third year of service as independent director with vesting in
                                            equal quarterly increments* 



 


*assumes
reelection of Independent Director to an additional one-year term. If Independent Director is not reelected, resigns or is otherwise
terminated in accordance with the terms of this Agreement and/or the Company’s bylaws, any unvested options will be cancelled by
the Company.


 


Additional
compensation will be issued to Independent Director after the formation of committees for his/her service as below:


 


		●	Service
                                            on audit committee: 5,000 stock options per year (10,000 stock options per year for
                                            the chair of such committee) – payable in quarterly increments with immediate vesting



 


		●	Service
                                            on compensation committee: 3,750 stock options per year (7,500 stock options per year
                                            for the chair of such committee) – payable in quarterly increments with immediate vesting



 


		●	Service
                                            on nominating/governance committee: 3,000 stocks per year (6,000 stock options per
                                            year for the chair of such committee) – payable in quarterly increments with immediate
                                            vesting



 


All
options, unless otherwise specified, will have an exercise price equal to the fair market value at the time of issuance. The number of
options for committee service compensation will be subject to quarterly adjustment.


 






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EXPENSES.
During the term of the Independent Director’s service as a director of the Company, the Company shall promptly reimburse the Independent
Director for all expenses incurred by him/her in connection with attending (a) all meetings of the Board or applicable committees thereof,
(b) executive sessions of the independent directors, and (c) stockholder meetings, as a director or a member of any committee of the
Board, provided that any such expenses over $500.00 shall be approved by the Company in writing in advance. In addition, the Independent
Director shall rely on the Company to arrange all hotel accommodations in connection with any such meetings the Independent Director
must attend. The amount of such expenses eligible for reimbursement by the Company during a calendar year shall not affect such expenses
eligible for reimbursement by the Company in any other calendar year, and the reimbursement of any such eligible expenses shall be made
on or before the last day of the calendar year next following the calendar year in which the expense was incurred.


 


NO
OTHER BENEFITS OR COMPENSATION. The Independent Director acknowledges and agrees that he is not granted or entitled to any other benefits
or compensation from the Company for services provided under this Agreement except expressly provided for in this Schedule A.


 


Dated:
November 16, 2021


 





	AGREED BY:	 	AGREED BY:
	 	 	 
	Company: AELUMA, INC.	 	Independent Director: Palvi Mehta
	 	 	 
	/s/ Jonathan Klamkin	 	/s/ Palvi Mehta
	Name:  	Jonathan Klamkin	 	Name:  	Palvi Mehta
	Title: 	Chief Executive Officer 	 	 
	 	& Principal Financial Officer & Chairman	 	 


 






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