Document:

PROMISSORY NOTE

 

	Borrower:	American Rare Earths and Materials, Corp. of 200 Queen's Quay East, Unit 1, Toronto, Ontario M5A 4K9 (individually and collectively the "Borrower")
	Lender:	Werner Zapfe

 

Principal Amount:$150,000.00

 

		1.	FOR VALUE RECEIVED, The Borrower promises to pay to Werner
Zapfe at such address as may be provided in writing to the Borrower, the principal sum of one hundred fifty thousand ( $150,000.00
) CAD, with interest payable on the unpaid principal at the rate of 10 percent per annum, calculated yearly not in advance.

 

		2.	This Note is repayable in full within 14 days of Werner
Zapfe providing the Borrower with written notice of demand.

 

		3.	At any time while not in default under this Note, the
Borrower may pay the outstanding balance then owing under this Note to Werner Zapfe without further bonus or penalty.

 

		4.	This Note will be construed in accordance with and governed
by the laws of the Province of Ontario.

 

		5.	This Note is made for business purposes and is a "business
agreement" as defined in the Consumer Protection Act (the "Act"). No limitation periods found in the Act, other
than the ultimate limitation period found in section 15 of that Act, will apply to this Note and to the obligations imposed by
this Note.

 

		6.	If any term, covenant, condition or provision of this
Note is held by a court of competent jurisdiction to be invalid, void or unenforceable, it is the parties' intent that such provision
be reduced in scope by the court only to the extent deemed necessary by that court to render the provision reasonable and enforceable
and the remainder of the provisions of this Note will in no way be affected, impaired or invalidated as a result.

 

		7.	All costs, expenses and expenditures including, and without
limitation, the complete legal costs incurred by Werner Zapfe in enforcing this Note as a result of any default by the Borrower,
will be added to the principal then outstanding and will immediately be paid by the Borrower.

 

		8.	This Note will enure to the benefit of and be binding
upon the respective heirs, executors, administrators, successors and assigns of the Borrower and Werner Zapfe. The Borrower

 

IN WITNESS WHEREOF the parties have duly affixed their signatures
under seal on this 4th day of October, 2011.

 

	SIGNED, SEALED, AND DELIVERED

this 4th day of October, 2011.	 	American Rare Earths and Materials, Corp
	 	 	Per:	 	(SEAL)

 

 

	SIGNED, SEALED, AND DELIVERED

this 4th day of October, 2011.	 	Zapfe Holdings Inc.  
	 	 		 
	 	 	Werner ZapfePROMISSORY NOTE

 

	Borrower:	American Rare Earths and Materials, Corp. of 200 Queen's Quay East, Unit 1, Toronto, Ontario M5A 4K9 (individually and collectively the "Borrower")
	Lender:	Zapfe Holdings Inc.

 

Principal Amount:$200,000.00

 

		1.	FOR VALUE RECEIVED, The Borrower promises to pay to Zapfe
Holdings Inc. at such address as may be provided in writing to the Borrower, the principal sum of two-hundred thousand ($200,000.00)
CAD, with interest payable on the unpaid principal at the rate of 10 percent per annum, calculated yearly not in advance.

 

		2.	This Note is repayable in full within 14 days of Zapfe
Holdings Inc. providing the Borrower with written notice of demand.

 

		3.	At any time while not in default under this Note, the
Borrower may pay the outstanding balance then owing under this Note to Zapfe Holdings Inc. without further bonus or penalty.

 

		4.	This Note will be construed in accordance with and governed
by the laws of the Province of Ontario.

 

		5.	This Note is made for business purposes and is a "business
agreement" as defined in the Consumer Protection Act (the "Act"). No limitation periods found in the Act, other
than the ultimate limitation period found in section 15 of that Act, will apply to this Note and to the obligations imposed by
this Note.

 

		6.	If any term, covenant, condition or provision of this
Note is held by a court of competent jurisdiction to be invalid, void or unenforceable, it is the parties' intent that such provision
be reduced in scope by the court only to the extent deemed necessary by that court to render the provision reasonable and enforceable
and the remainder of the provisions of this Note will in no way be affected, impaired or invalidated as a result.

 

		7.	All costs, expenses and expenditures including, and without
limitation, the complete legal costs incurred by Zapfe Holdings Inc. in enforcing this Note as a result of any default by the
Borrower, will be added to the principal then outstanding and will immediately be paid by the Borrower.

 

		8.	This Note will enure to the benefit of and be binding
upon the respective heirs, executors, administrators, successors and assigns of the Borrower and Zapfe Holdings Inc.. The Borrower
waives presentment for payment, notice of non-payment, protest and notice of protest.

 

 

IN WITNESS WHEREOF the parties have duly affixed their signatures
under seal on this 20th day of December, 2011.

 

 

	SIGNED, SEALED, AND DELIVERED

this 20th day of December, 2011.	 	American Rare Earths and Materials, Corp
	 	 	Per:	 	(SEAL)

 

 

	SIGNED, SEALED, AND DELIVERED

this 20th day of December, 2011.	 	Zapfe Holdings Inc.  
	 	 	Per:Exhibit 10.1

 

AMENDMENT TO THE

 

AMENDED 1999 DIRECTOR OPTION PLAN OF

 

I.D. SYSTEMS, INC.

 

 

WHEREAS, I.D.
Systems, Inc., a Delaware corporation (the “Company”), sponsors and maintains the Company’s Amended 1999
Director Option Plan (the “Plan”);

 

WHEREAS, Paragraph
13 of the Plan, among other things, and subject to certain limitations set forth therein, reserves to the Board of Directors of
the Company (the “Board”) the right to amend the Plan from time to time; and

 

WHEREAS, the
Board has determined that it is advisable and in the best interests of the Company to amend the Plan to provide that payment of
the exercise price for shares of common stock, par value $0.01 per share (“Common Stock”), of the Company purchased
upon the exercise of an option may be made by “cashless exercise,” such that the holder may elect to surrender to the
Company shares of Common Stock that otherwise would have been delivered to the holder upon exercise of the option as payment of
the exercise price for such option; and

 

WHEREAS, the
Company hereby desires to amend the Plan to provide for such payment by “cashless exercise”;

 

NOW, THEREFORE,
effective immediately, the Plan is hereby amended as follows:

 

Paragraph 7 of the
Plan is hereby amended by deleting the first paragraph of said Paragraph 7 in its entirety and replacing such paragraph with the
following:

 

“7.          EXERCISE.
An Outside Director Option (or any part or installment thereof), to the extent then exercisable, shall be exercised by giving written
notice to the Company at its principal office (at present 123 Tice Boulevard, Woodcliff Lake, New Jersey 07677, Attn: Corporate
Secretary), specifying the number of shares of Common Stock as to which such option is being exercised and accompanied by payment
in full of the aggregate exercise price therefor (or the amount due on exercise if the Contract permits installment payments) (a)
in cash or by certified check; (b) with the consent of the Committee (in the Contract or otherwise), with shares of Common Stock
held by the person exercising such Outside Director Option and having an aggregate fair market value (determined in accordance
Paragraph 5), on the date of exercise, equal to the aggregate exercise price of the Outside Director Option being exercised; (c)
if permitted by the Committee and subject to any terms and conditions it may impose on the use of such methods, by the surrender
to the Company of shares of Common Stock that otherwise would have been delivered to the person exercising such Outside Director
Option upon exercise of such Outside Director Option; (d) to the extent permissible under applicable law, through any cashless
exercise sale and remittance procedure that the Committee in its discretion may from time to time approve; or (e) with any combination
of cash, certified check or shares of Common Stock. For purposes of determining the portion of the exercise price payable upon
the exercise of an Outside Director Option that will be treated as satisfied by the surrender of shares of Common Stock pursuant
to clause (c) above, shares of Common Stock so surrendered shall be valued at their fair market value determined in accordance
with Paragraph 5.”

  

Except as amended herein,
the Plan shall continue in full force and effect, in accordance with its terms.

 

[Signature Page Follows]

    	 

    	 

    

 

 

IN WITNESS WHEREOF,
the undersigned, being a duly authorized officer of the Company, has executed this Amendment as evidence of its adoption by the
Company this 15th day of March, 2012.

 

 

	 	I.D. SYSTEMS, INC.
	 	 	 
	 	By: 	/s/ Ned Mavrommatis
	 	 	 
	 	Title: 	Chief Financial Officer

 

Witness:

/s/ Jeffrey M. JagidExhibit 10.2

 

AMENDMENT TO THE

 

2009 NON-EMPLOYEE DIRECTOR EQUITY COMPENSATION
PLAN

 

OF

 

I.D. SYSTEMS, INC.

 

 

WHEREAS, I.D.
Systems, Inc., a Delaware corporation (the “Company”), sponsors and maintains the Company’s 2009 Non-Employee
Director Equity Compensation Plan (the “Plan”; capitalized terms used and not otherwise defined herein shall
have the meanings ascribed thereto in the Plan); and

 

WHEREAS, Section
15(a) of the Plan reserves to the Board of Directors of the Company (the “Board”) the right to amend, alter,
suspend or terminate the Plan; and

 

WHEREAS, the
Board has determined that it is advisable and in the best interests of the Company to amend the Plan to provide that the Board,
or the Compensation Committee of the Board (the “Committee”) in the event that the Board delegates its authority
to the Committee, in its discretion, and without any restrictions or limitations, shall determine the vesting schedule with respect
to all awards of Restricted Shares and Options made under the Plan after the date hereof;

 

NOW, THEREFORE,
effective immediately, the Plan is hereby amended as follows:

 

A.          Section 8 of the Plan is hereby
amended by deleting the first paragraph of said Section 8 in its entirety and replacing such paragraph with the following:

 

“8.      Terms
of Restricted Stock Awards. Except as provided herein, Restricted Shares shall be subject to restrictions (“Restrictions”)
prohibiting such Restricted Shares from being sold, transferred, assigned, pledged or otherwise encumbered or disposed of. The
Board, or the Compensation Committee of the Board (the “Compensation Committee”) in the event that the Board
delegates its authority hereunder to the Compensation Committee, shall determine the terms and conditions under which the Restrictions
with respect to each award of Restricted Shares shall lapse; provided, however, that notwithstanding the foregoing,
the Restrictions with respect to a Participant’s Restricted Shares shall lapse immediately in the event that (i) the Participant
is removed from service as a Director (other than for Cause) before his or her term has expired (and does not continue as, or become,
an employee of the Company or a subsidiary of the Company), (ii) the Participant is nominated for a new term as an Outside Director
but is not elected by stockholders of the Company, (iii) the Participant ceases to be a member of the Board due to death, disability
or mandatory retirement (if any), or (iv) if the Participant ceases to continue as a member of the Board or of the board of directors
of a successor company following a Change in Control.”

 

B.          Section 9(c)
of the Plan is hereby amended by deleting said Section 9(c) in its entirety and replacing such paragraph with the following:

 

“Vesting.
Subject to Section 13 hereof, the Board, or the Compensation Committee in the event that the Board delegates its authority hereunder
to the Compensation Committee, shall determine the exercise terms of all Options, including such terms as the Board or the Compensation
Committee, as applicable, may determine to be applicable in the event that a Participant ceases to be a member of the Board due
to death, disability or mandatory retirement (if any).”

 

Except as amended herein,
the Plan shall continue in full force and effect, in accordance with its terms.

  

[Signature Page Follows]

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
the undersigned, being a duly authorized officer of the Company, has executed this Amendment as evidence of its adoption by the
Company this 16th day of March, 2012.

  

	 	I.D. SYSTEMS, INC.
	 	 	 
	 	By: 	/s/ Ned Mavrommatis
	 	 	 
	 	Title: 	Chief Financial Officer

 

Witness:

/s/ Jeffrey M. Jagid

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