Document:

Exhibit 10.76

 

Non-Employee Director Grantee:                  

Grant Date:                  

Number of Contingent Option Shares:                  

Exercise Price Per Share: $               

 

CONTINGENT STOCK OPTION AGREEMENT

 

THIS AGREEMENT, dated as of the grant date set forth above (the “Grant Date”), is made by and between Rockwell Medical, Inc., a Michigan corporation (the “Company”), and the individual set forth above, who is a director of the Company (the “Optionee”). Any capitalized terms used herein but not otherwise defined shall have the meaning set forth in the Company’s 2018 Long Term Incentive Plan (the “Plan”).

 

WHEREAS, the Plan was approved and adopted by the Company’s Board of Directors (the “Board”) on January 29, 2018, subject to the approval of the Plan by the Company’s shareholders at the Company’s 2018 annual shareholders meeting (“Annual Meeting”);

 

WHEREAS, contingent upon the approval of the Plan by the Company’s shareholders at the Annual Meeting, the Company wishes to afford the Optionee the opportunity to purchase shares of its common stock (the “Common Stock”) pursuant to the terms and conditions of this Agreement and the Plan, the terms of which are hereby incorporated by reference and made a part of this Agreement; and

 

WHEREAS, the Committee and the Board have determined that it would be in the best interest of the Company and its shareholders to grant this Option provided for herein to the Optionee as an incentive for increased efforts during his or her term as a director of the Company, have approved the grant of this Option on the Grant Date and have advised the Company thereof and instructed the undersigned officer to issue said Option.

 

NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows:

 

ARTICLE I

OPTION GRANT

 

1.1.                            Grant of Options.  For good and valuable consideration, on and as of the date hereof, the Company grants to the Optionee a Nonqualified Stock Option to purchase the number of shares of Common Stock set forth above upon the terms and conditions set forth in this Agreement (this “Option”).

 

1.2.                            Contingency of Options.  The granting of this Option hereunder is expressly contingent upon the approval of the Plan by the Company’s shareholders at the Annual Meeting.  If the Company’s shareholders do not approve the Plan at the Annual Meeting, this Option granted hereunder shall not be exercisable and shall be null and void.

 

1.3                               Exercise Price.  Subject to Section 2.1, the exercise price of the shares of Common Stock covered by this Option shall be the price per share set forth above without commission or other charge (which is the Fair Market Value per share of the Common Stock on the Grant Date).

 

 

ARTICLE II

ADJUSTMENTS

 

2.1.                            Adjustments to Option.  In the event of a merger, reorganization, consolidation, recapitalization, dividend or distribution (whether in cash, shares or other property), stock split, reverse stock split, spin-off or similar transaction or other change in corporate structure affecting the Common Stock or the value thereof, such adjustments and other substitutions shall be made to this Option as the Committee, in its sole discretion, deems equitable or appropriate, including adjustments in the number, class, kind and exercise price of securities subject to this Option (including, if the Committee deems appropriate, the substitution of similar options to purchase the shares of another company, as the Committee may determine to be appropriate in its sole discretion).

 

ARTICLE III

PERIOD OF EXERCISABILITY

 

3.1.                            Exercisability of Option.

 

(a) This Option shall vest and become exercisable as to 100% of the shares of Common Stock subject to this Option on the first anniversary of the Grant Date (the “Vesting Date”) so long as the Optionee is then continuing to serve as a director through such date. If the Optionee’s service as a director terminates prior to the Vesting Date, then this Option shall terminate and shall not be exercisable.  If the Optionee’s service as a director terminates after the Vesting Date for any reason, then this Option shall continue to be exercisable until the expiration date of this Option. Notwithstanding the foregoing, if the Optionee’s service as a director terminates after the Grant Date and prior to the Vesting Date, the Committee shall have the discretion to vest all or any portion of this Option and all or any such portion so vested of this Option shall continue to be exercisable until the expiration date of this Option.

 

(b) Notwithstanding (a), this Option shall become immediately vested and exercisable as to 100% of the shares of Common Stock subject to such Option if the Optionee ceases to be a director due to Optionee’s death or Disability prior to the Vesting Date.

 

3.2                               Change in Control.  Upon a Change in Control, this Option shall be treated in accordance with the terms of Section 10.2 of the Plan.

 

3.3.                            Expiration Date.  This Option shall expire, and shall be unexerciseable after, the tenth anniversary of the Grant Date.

 

ARTICLE IV

EXERCISE OF OPTION

 

4.1.                            Person Eligible to Exercise.  During the lifetime of the Optionee, only the Optionee may exercise this Option or any portion thereof. After the death of the Optionee, any exercisable portion of this Option may, prior to the time when this Option becomes unexercisable under Section 3.3, be exercised by his or her personal representative or by any person empowered to do so under the Optionee’s will or under the then applicable laws of descent and distribution.

 

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4.2.                            Partial Exercise.  Any exercisable portion of this Option or the entire Option, if then wholly exercisable, may be exercised in whole or in part at any time prior to the time when this Option becomes unexercisable under Section 3.3 of this Agreement; provided, however, that any partial exercise shall be for whole shares of Common Stock only.

 

4.3.                            Manner of Exercise.  The exercise price for shares of Common Stock to be acquired upon exercise of this Option shall be paid in full in any manner permitted by the Plan.

 

4.4.                            Conditions to Issuance of Stock.  The Company shall not be required to issue or deliver any stock purchased upon the exercise of this Option or portion thereof prior to fulfillment of all of the following conditions:

 

(a)                                 The obtaining of approval or other clearance from any state or federal governmental agency or Stock Exchange which the Committee shall, in its reasonable and good faith discretion, determine to be necessary or advisable; and

 

(b)                                 The receipt by the Company of such assurance of compliance with federal and state securities laws as it may deem necessary or advisable.

 

4.5.                            Rights as Shareholder.  Optionee shall not be, nor have any of the rights or privileges of, a shareholder of the Company in respect of any shares purchasable upon the exercise of this Option or any portion thereof unless and until a certificate or certificates representing such shares shall have been issued by the Company to the Optionee or a book entry representing such shares has been made and such shares have been deposited with the appropriate registered book-entry custodian.  The Company shall not be liable to the Optionee for damages relating to any delay in issuing shares or a stock certificate to Optionee, any loss of a certificate, or any mistakes or errors in the issuance of shares or a certificate to Optionee.

 

4.6.                            Withholding.  To the extent applicable, the Company shall have the right to withhold from Optionee’s compensation or to require Optionee to remit sufficient funds to satisfy applicable withholding tax obligations upon the exercise of this Option. Subject to the limitations in Section 11.5 of the Plan, Optionee may, in order to fulfill the withholding obligation, make payment to the Company in any manner permitted under Section 11.5 of the Plan.  The Company shall not withhold from the exercise of this Option more shares than are necessary to meet the established tax withholding requirements of federal, state and local obligations and pay the exercise price of this Option.  The Company shall be authorized to take any such action as may be necessary, in the opinion of the Company’s counsel, to satisfy the Company’s obligations for payment of such taxes.

 

ARTICLE V

MISCELLANEOUS

 

5.1.                            Option Not Transferable.  Neither this Option nor any interest or right therein or part thereof shall be liable for the debts, contracts or engagements of the Optionee or his or her successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal

 

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or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect; provided, however, that this Section 5.1 shall not prevent transfers by will or by the applicable laws of descent and distribution, or transfers to which the Committee has given prior written consent subject to the conditions set forth in Section 11.3(a) of the Plan.

 

5.2.                            Notices.  Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of its Secretary, and any notice to be given to the Optionee shall be addressed to him or her at the address stated in the Company’s records. By a notice given pursuant to this Section 5.2, either party may hereafter designate a different address for notices to be given to the party. Any notice, which is required to be given to the Optionee, shall, if the Optionee is then deceased, be given to the Optionee’s personal representative if such representative has previously informed the Company of his or her status and address by written notice under this Section 5.2. Any notice shall have been deemed duly given when enclosed in a properly sealed envelope or wrapper addressed as aforesaid, deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service or when delivered personally to the Secretary or Optionee.

 

5.3.                            Amendment.  Subject to Section 2.1 of this Agreement and the terms of the Plan, this Agreement may be amended only by a writing executed by the parties hereto if such amendment would adversely affect Optionee.  Any such amendment shall specifically state that it is amending this Agreement.

 

5.4.                            Governing Law.  The laws of the State of Michigan shall govern the interpretation, validity and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflicts of laws.

 

5.5                               Plan Terms Control.  In the event of any conflict between the Plan and this Agreement, the terms of the Plan shall control, it being understood that variations in this Agreement from terms set forth in the Plan shall not be considered to be in conflict if the Plan permits such variations.

 

[Signatures on next page.]

 

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the Grant Date.

 

	
 
    	
ROCKWELL   MEDICAL, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
OPTIONEE:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[Name]
    

 

5Exhibit 10.1

 

SECOND AMENDMENT

TO

EMPLOYMENT AGREEMENT

 

This Second Amendment (this “Amendment”)
to the Employment Agreement (as defined below) is made and entered into as of March 16, 2018 by Digital Turbine, Inc., a Delaware
corporation (the “Employer”), and William Stone (the “Executive”). Capitalized
terms used but not defined herein shall have the respective meanings assigned to them in the Employment Agreement.

 

WHEREAS, the Employer and the Executive
entered into that certain Employment Agreement, dated as of September 9, 2014, as amended May 26, 2016 (as so amended, the “Employment
Agreement”), pursuant to which the Executive currently is serving as Chief Executive Officer of the Employer;

 

WHEREAS, the Board of Directors has determined
that the Employer should make certain amendments to the Employment Agreement as further described herein; and

 

WHEREAS, the Employer and the Executive
desire to enter into this Amendment to effectuate such amendments to the Employment Agreement;

 

NOW, THEREFORE, in consideration of the
foregoing, the mutual promises of the parties hereto and other good and valuable consideration, the receipt and sufficiency of
which hereby are acknowledged, the parties hereto hereby agree to amend the Employment Agreement, as follows:

 

1.       Amendment
to Section 3 of the Employment Agreement. Section 3 of the Employment Agreement is amended and restated to read as follows:

 

“3. Term. Subject to the provisions
of Section 6, the term of employment pursuant to this Agreement commenced on the Transition Date and shall continue on an at-will
basis, subject to termination by the Company or Executive at any time (the period of time commencing on the Transition Date through
the termination of this Agreement being the “Term”)”

 

2.       Amendment
to Section 4(b)(ii) of the Employment Agreement. Section 4(b)(ii) of the Employment Agreement is amended and restated to
read as follows:

 

“(ii) Effective for the Stub Period,
The Year 1 Period, the Year 2 Period, the Year 3 Period (each, as defined in Schedule A), the Executive shall be eligible to be
paid an annual incentive bonus in cash in an amount of up to one hundred fifty percent (150%) of the Executive’s Salary with
respect to the applicable period subject to satisfaction of performance-related milestones, as specified on Schedule A. Effective
for all periods after the Year 3 Period, the Executive shall be eligible to the annual and long term incentive bonuses in the amounts,
and subject to the terms as conditions, as set forth in Schedule B.”

 

 

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3.       Amendment
to Section 4(b)(iii) of the Employment Agreement. Section 4(b)(iii) of the Employment Agreement is amended and restated
to read as follows:

 

“(iii) Any bonus amounts due under subsection
(b)(i) and (b)(ii) of this Section 4 (x) shall be paid within thirty (30) days after the revenue and EBITDA criteria are determined
for the applicable period in the manner described in Schedule A and Schedule B, as applicable, but not later than two and one-half
(2-1/2) months following the later of the last day of the calendar year or the last day of the Employer’s fiscal year in
which the applicable period with respect to which the bonus is determined ends, and (y) shall be conditioned on the Executive being
employed throughout the entire applicable period with respect to which the bonus is determined.”

 

4.       Amendment
to Section 4(f) of the Employment Agreement. Section 4(f) of the Employment Agreement is amended and restated to read as
follows:

 

“The Executive shall be entitled to
a one-time bonus of One Hundred Thousand Dollars ($100,000) payable within five (5) days of signing the Amendment to the Employment
Agreement entered on or about March 16, 2018.”

 

5.       Amendment
to Section 6(d) of the Employment Agreement. Section 6(d) of the Employment Agreement is amended and restated to read as
follows:

 

“(d)       Disability.
If the Executive shall become Disabled so as to be unable to perform the essential functions of the Executive’s then existing
position or positions under this Agreement with or without reasonable accommodation, the Board of Directors may remove the Executive
from any responsibilities and/or reassign the Executive to another position with the Employer during the period of such Disability.
Notwithstanding any such removal or reassignment, the Executive shall continue to receive the Executive’s full Salary (less
any disability pay or sick pay benefits to which the Executive may be entitled under the Employer’s policies) and benefits
under Section 4 of this Agreement (except to the extent that the Executive may be ineligible for one or more such benefits under
applicable plan terms) for a period of time equal to twelve (12) months payable at the same time as such amounts would otherwise
have been paid to the Executive had he continued in his current capacity. If the Executive is unable to perform substantial services
of any kind for the Employer during this period, such period shall be considered a paid leave of absence and the Executive shall
have the contractual right to return to employment at any time during such period. If the Executive’s Disability continues
beyond such twelve (12) month period, the Executive’s employment may be terminated by the Employer by reason of Disability
at any time thereafter. For purposes hereof, the term “Disabled” or “Disability” shall mean a written determination
that the Executive, as certified by at least two (2) duly licensed and qualified physicians, one (1) approved by the Board of Directors
of the Employer and one (1) physician approved by the Executive (the “Examining Physicians”), or, in the event of the
Executive’s total physical or mental disability, the Executive’s legal representative, that the Executive suffers from
a physical or mental impairment that renders the Executive unable to perform the Executive’s regular personal duties under
this Agreement and that such impairment can reasonably be expected to continue for a period of three (3) consecutive months or
for shorter periods aggregating ninety (90) days in any twelve (12) month period; provided, however, that the Executive’s
primary care physician may not serve as one of the Examining Physicians without the consent of the Employer and the Executive (or
the Executive’s legal representation). The Executive shall cooperate with any reasonable request of a physician to submit
to a physical examination for purposes of such certification. Nothing in this Section 6(d) shall be construed to waive the Executive’s
rights, if any, under existing law including, without limitation, the Family and Medical Leave Act of 1993, 29 U.S.C. §2601
et seq. and the Americans with Disabilities Act, 42 U.S.C. §12101 et seq.”

 

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6.       Amendment
to Section 6(e) of the Employment Agreement. Section 6(e) of the Employment Agreement is amended and restated to read as
follows:

 

“ (e) Termination by the Executive
for Good Reason. Subject to the payment of Termination Benefits pursuant to Section 7(b), the Executive’s employment
under this Agreement may be terminated by the Executive for Good Reason. For purposes of this Agreement, “Good Reason”
shall be present where Executive gives notice to the Board of Directors of his voluntary resignation within thirty (30) days after
the occurrence of any of the following, without Executive’s written consent: (i) breach by the Employer of the insurance
or indemnification provisions herein or in Executive’s indemnification agreement with Employer as in effect on the date hereof
or failure of the Employer to pay or cause to be paid or delivered any amounts or options due Executive when due under the terms
and conditions hereunder, in each case subject to a thirty (30) day cure period by the Employer following reasonably specific written
notice by the Executive; (ii) the Executive’s not reporting directly to the Board of Directors, subject to a thirty (30)
day cure period by the Employer following reasonably specific written notice by the Executive, unless the sole reason for such
failure to report to the Board of Directors is that a Change of Control occurred and as a result the Executive’s reporting
structure in the buyer’s organization puts Executive at effectively the same or higher level of overall responsibility and
authority (comparing the positions in each organization) as was the case immediately prior to such Change of Control, as reasonably
determined by the Board of Directors prior to such Change of Control; or (iii) material diminution in Executive’s position,
duties, authority or responsibility, without Cause, subject to a thirty (30) day cure period by the Employer following reasonably
specific written notice by the Executive. If the Executive fails to resign within sixty (60) days after the expiration of the applicable
cure period, then such event will not be a basis to resign for Good Reason.”

 

7.       Amendment
to Section 7(a) of the Employment Agreement. Section 7(a) of the Employment Agreement is amended by deleting from the first
sentence thereof the words “during or upon expiration of the Term.”

 

8.       Amendment
to Section 7(b) of the Employment Agreement. Section 7(b) of the Employment Agreement is amended and restated to read as
follows:

 

“ (b) Termination by the Employer
Without Cause or by the Executive for Good Reason. In the event of termination of the Executive’s employment with the
Employer pursuant to Section 6(b) or 6(e) above, and subject to the Executive’s execution and delivery of a release of any
and all legal claims in a form satisfactory to the Employer, and expiration of any revocation period without the release being
revoked, within forty-five (45) days following the Termination Date (the “Release Period”), the Employer shall provide
to the Executive, in addition to the Accrued Compensation, the following termination benefits (“Termination Benefits”):

 

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(i) continuation of the Executive’s Salary at
the rate and in accordance with the Employer’s payroll practices then in effect pursuant to Section 4(a); and

 

(ii) continuation of any executive health and group
health plan benefits to the extent authorized by and consistent with 29 U.S.C. § 1161 et seq. (commonly known as “COBRA”),
subject to payment of premiums by the Employer to the extent that the Employer was covering such premiums as of the Termination
Date (if permitted by law without violation of applicable discrimination rules, or, if not, the equivalent after-tax value payable
as additional severance at the same time such premiums are otherwise payable); and

 

(iii) a pro-rated portion of the Annual Cash Incentive
(as provided for in Schedule B) applicable to the fiscal year in which the Termination Date occurs (but, for clarity, not for any
period after such fiscal year), based on the percentage completion of such fiscal year (measured from April 1st of such
year through the Termination Date) and the degree of attainment of the applicable Annual Financial Goals (as defined in Schedule
B) as of the Termination Date, as reasonably determined by the Compensation Committee, and paid at the same time as a bonus would
otherwise be payable under Section 4(b);

 

(iv) acceleration of vesting of the options amended
and/or granted under this Agreement on a pro-rata basis as if the vesting schedule had been monthly rather than annual, advanced
to the next month; and

 

(v)       acceleration
of vesting of such number of PSUs that have been granted to Executive under Schedule B but which are then unvested, determined,
for each then outstanding granted but unvested grant, by multiplying the PSUs that Executive would receive at each applicable “Target”
level of performance, by a fraction, the numerator of which is the number of calendar months elapsed from the Grant Date of the
applicable grant of PSUs through the Termination Date, and the denominator of which is 36 months.

 

The Termination Benefits set forth in subsections 7(b)(i) and
(ii) and above shall continue effective for a period starting on the Termination Date and ending on the first anniversary of the
Termination Date (the “Termination Benefits Period”); provided, however, (i) that if the termination pursuant to Section
6(b) or 6(e) above occurs within twelve (12) months of a Change of Control, then the Termination Benefits Period shall be a period
of eighteen (18) consecutive months starting on the Termination Date; and (ii) that in the event that the Executive commences any
employment during the Termination Benefits Period, the benefits provided under Section 7(b)(ii) shall cease effective as of the
date Executive qualifies for group health plan benefits in his new employment. The Employer’s liability for Salary continuation
pursuant to Section 7(b)(i) shall not be reduced by the amount of any severance pay paid to the Executive pursuant to any severance
pay plan or stay bonus plan of the Employer. Notwithstanding the foregoing, nothing in this Section 7(b) shall be construed to
affect the Executive’s right to receive COBRA continuation entirely at the Executive’s own cost to the extent that
the Executive may continue to be entitled to COBRA continuation after Employer-paid premiums cease. The Executive shall be obligated
to give prompt notice of the date of commencement of any employment during the Termination Benefits Period and shall respond promptly
to any reasonable inquiries concerning any employment in which the Executive engages during the Termination Benefits Period.

 

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The Employer acknowledges and agrees that under certain circumstances
involving the termination of the Executive’s employment and/or a Change of Control transaction involving the Employer, the
Executive shall be entitled to accelerated vesting on his options to purchase shares of capital stock of the Employer, all to the
extent provided in that certain Stock Option Agreements referred to in Section 4(e) hereof.

 

Any Termination Benefits (subject to Executive’s timely
execution, delivery and nonrevocation of the required release) that otherwise would become due any payable prior to the end of
the Release Period (including Salary continuation payments and COBRA premium payments otherwise due during the Release Period)
shall be paid on Employer’s first regular payroll date following the end of the Release Period.”

 

9.       Amendment
to Section 7(c) of the Employment Agreement. Section 7(c) of the Employment Agreement is amended and restated to read as
follows:

 

“(c) Termination by Reason of Cause,
Death, Disability, Voluntary Termination by the Executive or Company. If the Executive’s employment is terminated for
any reason other than (i) by the Employer without Cause under Section 6(b) or (ii) by the Executive for Good Reason under Section
6(e), the Employer shall have no further obligation to the Executive other than payment of his Accrued Compensation.”

 

10.       Amendment
to Section 8(g) of the Employment Agreement. Section 8(g) of the Employment Agreement is amended by changing the reference
therein to “Schedule B” to be “Schedule C”.

 

11.       Addition
of New Schedule B to Employment Agreement. A new Schedule B is hereby added to the Employment Agreement, immediately after
Schedule A, which shall read as follows (and previous Schedule B is hereby renamed Schedule C):

 

Schedule B

Annual Cash Incentive:

 

Commencing for the fiscal year ending March
31, 2019 and continuing for each fiscal year thereafter while the Executive is employed as the CEO of the Company, the Compensation
Committee of the Board will, within 30 days the Board’s approval of the annual operating plan for a given fiscal year, but
not later than the end of the first fiscal quarter of the fiscal year, determine, after consultation with the Executive, Threshold,
Target and Stretch Target revenue and earnings goals for that specific fiscal year, each representing an increasingly higher level
of achievement, which goals shall be provided in the writing to the Executive (“Annual Financial Goals”). Earnings
goals shall generally be the same primary measure of profitability used by the Company in its public guidance (such as Adjusted
EBITDA), but the Committee retains the right to use a different measure. If an extraordinary change occurs, such as a merger or
recapitalization, the Committee may, in its reasonable discretion, revise the Annual Financial Goals after discussion with the
Executive to preserve the original incentive structure and degree of achievement as existed prior to such change.

 

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The amount of the Threshold, Target and
Stretch Target bonuses shall be 25%, 50% and 100% of the Executive’s Base Salary for the applicable fiscal year, and shall
only be paid in cash. For example, for the fiscal year ending March 31, 2019, the Base Salary is $500,000, so the Threshold, Target
and Stretch Target bonus would be, if the applicable goals are achieved, $125,000; $250,000; and $500,000.

 

Achievement of Annual Financial Goals shall
be determined promptly after the Company’s annual financial statements for the fiscal year for the applicable period have
been publicly issued and certified by the Company’s auditors. Any interpretative issues in reconciling earnings goals to
audited numbers shall (a) be resolved as much as possible based on the Company’s publicly filed reconciliations of the same
and (b) as to any other questions shall be determined in the reasonable discretion of the Compensation Committee after good faith
discussion with Executive.

 

The Committee retains the sole discretion
to award a pro-rated amount of any applicable bonus based on partial achievement, but the Company and the Committee has no obligation
to do so and Executive confirms he has no expectation that the Company or the Committee will do so.

 

	Annual Cash Incentive	
        Threshold Bonus

         

         

         
	
        Target Bonus

         

         

         
	
        Stretch Target Bonus

         

         

         

	Revenue Goal (40%)	Executive receives 40% of the Threshold Bonus only if the applicable Revenue goal is achieved.	Executive receives 40% of the Target Bonus only if the applicable Revenue goal is achieved.	Executive receives 40% of the Stretch Target Bonus only if the applicable Revenue goal is achieved.
	Earnings Goal (40%)	Executive receives 40% of the Threshold Bonus only if the applicable earnings goal is achieved.	Executive receives 40% of the Target Bonus only if the applicable earnings goal is achieved.	Executive receives 40% of the Stretch Target Bonus only if the applicable earnings goal is achieved.
	Discretionary (20%)	Executives receives 20% of the highest bonus tier he has earned if, in the sole discretion of the Compensation Committee, he has achieved exceptional results for the Company in the areas of compliance and operations and such other areas of focus as the Committee deems appropriate.  If Executive has not earned any bonus tier, the Committee retains the discretion to award the Discretionary bonus base on 20% of the Threshold bonus.

 

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Long Term Incentive:

 

Commencing with the fiscal year ending March
31, 2019, and continuing for each fiscal year thereafter while the Executive is employed as the CEO of the Company, the Compensation
Committee of the Board will grant to the Executive, when the Company makes Company-wide annual equity grants for such fiscal year
(such date, the “Grant Date”), time-vesting and performance-vesting Restricted Stock Units pursuant to the Amended
and Restated 2011 Equity Incentive Plan of Mandalay Digital Group, Inc. (the “Plan”) in amounts determined below, subject,
for the avoidance of doubt, to any applicable annual limit set forth in Section 9.5 of the Plan. Capitalized terms used in these
provisions pertaining to the Long Term Incentive, and not otherwise defined in the Agreement, shall have the meanings set forth
in the Plan.

 

Time-Vesting Restricted Stock Units

 

The time-vesting Restricted Stock Units
(RSUs) shall be for a number of Shares of Company common stock having aggregate Fair Market Value on the Grant Date as determined
by the Compensation Committee in its discretion. Such RSUs will vest on the following schedule, provided that the Executive continues
to be employed by the Company through each vesting date:

 

	 	On the first anniversary of the Grant Date	1/3 of the Shares
	 	 	 
	 	On the monthly anniversary of the Grant Date each	 
	 	month after the first anniversary of the Grant Date	an additional 1/36
	 	through the third anniversary of the Grant Date	of the Shares

 

 

Any RSUs that have not vested prior to the
termination of the Executive’s employment with the Company shall terminate immediately upon the Executive’s termination
of employment and thereafter shall be of no further force or effect.

 

On each vesting date, the number of Shares
with respect to which the RSU then vests immediately shall be issued to the Executive. The Company is authorized to withhold applicable
taxes upon issuance of such Shares pursuant to Section 21 of the Agreement.

 

Performance-Vesting Restricted Stock
Units

 

The performance-vesting Performance Stock
Units (PSUs) shall be for a number of Shares of Company common stock having aggregate Fair Market Value on the Grant Date as determined
by the Compensation Committee in its discretion. Such PSUs will be earned and vest on the third anniversary of the Grant Date,
provided that the Executive continues to be employed by the Company through such date, with the number of Shares then earned and
vested determined as described below.

 

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On or before the Grant Date of the PSUs,
the Board shall establish, after consultation with the Executive, Threshold, Target and Stretch Target Revenue and EBITDA goals
for the three fiscal year period beginning with the fiscal year immediately following the fiscal year for which the Long Term Incentive
grant is being made, which goals shall be provided in the writing to the Executive (“LTI Financial Goals”).
Vesting of PSUs granted for each fiscal year will be based fifty percent (50%) upon level of satisfaction of the 3-year Revenue
goal and fifty percent (50%) upon level of satisfaction of the 3-year EBITDA goal. If an extraordinary event occurs during the
three fiscal year period, such as a merger or recapitalization of the Company, the Board may, in its reasonable discretion, revise
the LTI Financial Goals after discussion with the Executive to preserve the original incentive structure and degree of achievement
as existed prior to such change. LTI Financial Goals may be stated as achievement of a given level of revenue and EBITDA for each
year of the three-year period, or of a given aggregate level of revenue and EBITDA over the three-year period. Level of vesting
of PSUs with respect to Revenue and EBITDA goals will be in accordance with the following schedule, with straight line interpolation
for achievement between Threshold and Target performance and between Target and Stretch Target performance:

 

	PSU Vesting	Threshold

	Target

	Stretch Target

	3 Year Revenue Target (50% of 3-year vest PSU grant)	50% of Revenue goal portion of PSUs	100% of Revenue goal portion of PSUs	200% of Revenue goal portion of PSUs
	3 Year EBITDA Target (50% of 3-year vest PSU grant)	50% of EBITDA goal portion of PSUs	100% of EBITDA goal portion of PSUs	200% of EBITDA goal portion of PSUs

 

Achievement of LTI Financial Goals shall
be determined promptly after the Company’s annual financial statements for the last fiscal year for the applicable period
have been publicly issued and certified by the Company’s auditors. Any interpretative issues in reconciling EBITDA goals
to audited numbers shall (a) be resolved as much as possible based on the Company’s publicly filed reconciliations of the
same and (b) as to any other questions shall be determined in the reasonable discretion of the Compensation Committee after good
faith discussion with Executive.

 

No PSUs shall vest with respect to any LTI
Financial Goal that is not met at the Threshold level of above. Vesting shall not exceed 200% of PSUs for performance above the
Stretch Target level.

 

Except as set forth in Section 7(b)(v) of
the Agreement, if the Executive’s employment with the Company terminates prior to the third anniversary of the Grant Date,
the PSUs shall not vest and shall terminate immediately upon the Executive’s termination of employment and thereafter shall
be of no further force or effect.

 

    	 	8	 

     

    

 

On the vesting date (including on the last
day of the Release Period for any PSUs vesting under Section 7(b)(v) of the Agreement), the number of Shares with respect to which
the PSU then vests immediately shall be issued to the Executive. The Company is authorized to withhold applicable taxes upon issuance
of such Shares pursuant to Section 21 of the Agreement.

 

Notwithstanding anything herein to the contrary,
in addition to the clawback rights contained elsewhere in this Agreement or applicable under the law, the Compensation Committee
shall be entitled to exercise negative discretion to nullify any grant of PSUs and to cancel any Shares issued with respect thereto
up until the date that is two (2) years after the vesting date thereof if the Compensation Committee determines in good faith that
the Company’s financial statements for any period whose performance was measured as part of the PSUs are, or must be, restated
in any manner adverse to the Company or the attainment of any Threshold, Target or Stretch Target goal, or if the Executive committed
any of the acts specified in Section 6(a)(i) or 6(a)(ii) of this Agreement. Executive shall not sell or otherwise dispose of any
Shares issued pursuant to PSUs until the period applicable to such Shares for exercising negative discretion has lapsed.”

 

12.       Miscellaneous.

 

a. Except as amended and/or restated hereby, all other provisions
of the Employment Agreement shall remain unchanged and are in full and force and effect in accordance with their terms and conditions.

 

b. In the event of a conflict between this Amendment and the
Employment Agreement, this Amendment shall govern.

 

c. The Employment Agreement and this Amendment may only be amended
further by a written agreement executed by the parties hereto and approved by the Board of Directors of the Employer or a committee
of the Board of Directors.

 

d. This Amendment may be executed in one or more counterparts
and, if executed in more than one counterpart, the executed counterparts shall each be deemed to be an original but all such counterparts
shall together constitute one and the same instrument.

 

e.The Employment Agreement, as amended by this Amendment,
represents the entire agreement between the parties with respect to the subject matter hereof.

 

[Next page is signature page]

 

    	 	9	 

     

    

 

 

IN WITNESS WHEREOF, the parties hereto have
caused this Amendment to be executed as of the date first above written.

 

	  	DIGITAL TURBINE, INC.
	 	 
	 	By:	/s/ Jeff Karish
	 	 	Name: Jeff Karish
	 	 	Title: Director, Chairman,
	 	 	 Compensation Committee
	 	 	 
	 	WILLIAM STONE
	 	 	 
	 	/s/ Bill Stone
	 	William Stone

 

    	 	10

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