Document:

Term Sheet

 

This Term Sheet (the “Term Sheet”)
between T3 Motion, Inc., a Delaware corporation (the “Company”), and Ki Nam, the founder and a shareholder of the Company
(and with the Company each a “Party” and collectively the “Parties”), is dated as of July 17, 2012 (the
“Effective Date”), and sets forth the understandings of the Parties concerning: (1) the appointment of Mr. Nam to certain
management positions with R3 Motion Inc., a wholly owned subsidiary of the Company (“the Subsidiary”), (2) the resignation
of Mr. Nam from his positions with the Company, and (3) licensing and other rights of the Subsidiary. Unless otherwise provided
herein, and subject to the Parties entering into formal agreements as specified herein, the terms of this Term Sheet is binding
on the Parties.

 

(1)         Launch
of the Subsidiary. No later than 45 days from the Effective Date, the Company shall appoint all of the members of its Board
of Directors (the “T3 Board”) as of the date of this Term Sheet (the “Company Directors”), including Mr.
Nam, to the initial Board of Directors of the Subsidiary (the “R3 Board”), provided, however, that upon
the Subsidiary entering into definitive agreement to secure financing in any form such that the Company, post-financing, owns less
than 40% of the voting stock of the Subsidiary, then all of the Company Directors excluding Mr. Nam shall submit their resignations
from the R3 Board, which resignations shall take effect immediately upon the closing of such financing.

 

(2)         Mr.
Nam’s Positions with the Subsidiary and Resignations from the Company. Effective immediately Mr. Nam shall: (a) be engaged
as Chief Executive Officer of the Subsidiary, and appointed to the R3 Board as a director, (b) resign from his positions as an
officer, employee and Chairman of the T3 Board pursuant to a letter of resignation in the form of Exhibit A attached hereto,
(c) retain his position as a director of the T3 Board and be named as Chairman Emeritus of the Company. In connection with his
positions with the Subsidiary: (a) the Subsidiary and Mr. Nam shall enter into an employment agreement in the form of Exhibit
B attached hereto and incorporated hereby; (b) Mr. Nam’s compensations shall be borne by the Company until the Subsidiary
closes a financing transaction with gross proceeds of not less than $500,000, after which Mr. Nam’s compensations shall be
borne by the Subsidiary.

 

(3)         Subsidiary’s
Licensing Rights. Subject to a definitive agreement between the Parties to be entered into within 90 days from the Effective
Date, which definitive agreement shall not be inconsistent with the provisions herein and negotiated in good faith between the
Parties, the Company shall license to the Subsidiary (the “License”), on an exclusive basis, all of its patents, trademarks,
copyrights (including applications thereof), designs, trade secrets and knowhow that the Company determines are necessary to the
production of the R3 consumer vehicles to be distributed by the Subsidiary. The License shall be granted for an initial 18-month
license during which the Subsidiary must achieve certain benchmarks to be negotiated in good faith and agreed to by the Parties,
including but not limited to, securing third party financing and development of a plan of production. Upon successfully achieving
such benchmarks, the License shall be automatically extended for an additional 18 months during which the Subsidiary must achieve
certain additional benchmarks to be negotiated in good faith and agreed to by the Parties, including but not limited to, producing
and marketing the R3 vehicle. After successfully reaching these additional benchmarks, the License shall become perpetual and the
Company shall receive a 2% royalty on sales of products derived from the License for a period of five (5) years thereafter.

 

    	 

    	 

    

 

(4)         Subsidiary’s
Marketing and Resell Rights. Subject to a definitive agreement between the Parties to be entered into within 60 days from the
Effective Date, which definitive agreement shall not be inconsistent with the provisions herein, the Company shall grant the Subsidiary,
on an exclusive basis, the right to market and resell the Company’s products, whether currently existing or currently in
development, in the Republic of Korea.

 

	Ki Nam	 
	 	 
	/s/ Ki Nam	 
	 	 
	T3 Motion, Inc.	 
	 	 	 
	By	/s/ Rod Keller	 
	Name:	Rod KellerEMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(this “Agreement”) is effective as of July 17, 2012, between R3 Motion, Inc. (the “Company”)
and T3 Motion, Inc. (the “Parent”), on the one hand, and Ki Nam (“Executive”), on the other hand.
The Company and Executive are the “Parties” and, each, a “Party”. The Parent is made a party
to this Agreement in connection with its obligations under Section 3.4 hereof.

 

WHEREAS, the Company
desires to employ Executive, and Executive desires to accept such employment, on the terms and conditions set forth in this Agreement;

 

NOW, THEREFORE, on
the basis of the foregoing premises and in consideration of the mutual covenants and agreements contained herein, the Parties agree
as follows:

 

1.          Employment,
Title and Duties. The Company hereby agrees to employ Executive, and Executive hereby accepts employment with the Company,
on the terms and subject to the conditions set forth herein. During the Employment Period (as defined in Section 2 below), Executive
shall serve as Chief Executive Officer (“CEO”) of the Company and shall report directly to the Board of Directors
of the Company (the “Board”). In his capacity as CEO, Executive shall perform the duties consistent with those
typical of a CEO of a publically traded company and such other duties commensurate with his position as shall be specified or designated
by the Board from time to time. The principal place of performance by Executive of his duties hereunder shall be determined, although
Executive may be required to reasonably travel outside of the area where the Company’s headquarters is located in connection
with the operations and affairs of the Company.

 

2.          Term.
Executive’s employment hereunder shall commence on July 17, 2012 (the “Commencement Date”) and shall continue
for a period of two (2) years thereafter (the “Initial Term”), subject to earlier termination exclusively as
provided for in Section 6 below, and subject to extension as provided in the following sentence. Following the Initial Term, provided
Notice of Non-Renewal has not been given (as defined in and in accordance with the provisions of Section 6.6 below), Executive’s
employment hereunder shall automatically be extended for successive, additional one-year periods (each a “Renewal Term”),
subject to earlier termination exclusively as provided for in Section 6 below. For the purposes of this Agreement, the “Term”
at any given time shall mean the Initial Term as it may have been extended by one or more Renewal Terms as of such time (without
regard to whether Executive’s employment is terminated prior to the end of such Term), and the “Employment Period”
means the period of Executive’s employment hereunder (regardless of whether such period ends prior to the end of the Term
and regardless of the reason for Executive’s termination of employment hereunder).

 

3.          
Compensation. During the Employment Period only (unless otherwise expressly provided for herein), Executive shall be entitled
to the following compensation and benefits.

 

3.1           Salary.
Executive shall receive a base salary (the “Base Salary”) payable in substantially equal installments in accordance
with the Company’s normal payroll practices and procedures in effect from time to time and subject to applicable withholdings
and deductions. Executive’s starting Base Salary shall be at the annual rate of $190,000. From time to time, the Board, at
its sole discretion, may review and adjust Executive’s Base Salary, except that the annual rate of Executive’s Base
Salary shall not be less than $190,000.

 

    	 

    	 

    

 

3.2           Bonus.
Executive shall be eligible to participate in the Company’s bonus plan (the “Bonus Plan”). Participants
in the Bonus Plan shall be eligible for annual bonus awards (each, a “Bonus”) based on the terms and conditions
thereof, which shall include annual performance goals for the Company and/or Executive to be established by the Board or
its Compensation Committee, in consultation with Executive (“Performance Goals”). The Performance Goals for
the calendar year in which the Commencement Date occurs shall be established within 120 days of the Commencement Date, and
the Performance Goals for subsequent calendar years shall be established by no later than February 15th of each such year.
To be eligible for a Bonus, Executive must be employed by the Company at the time such Bonus is paid.

 

3.3           Benefits.
Executive shall have the right to receive or participate in all employee benefit programs and perquisites established from time
to time by the Company on a basis that is no less favorable than such programs and perquisites are provided by the Company to the
Company’s other senior executives, subject to the eligibility requirements and other terms of such programs and perquisites,
and subject to the Company’s right to amend, terminate or take other action with respect to any such programs and perquisites.

 

3.4           Stock
Options. On the Commencement Date, the Parent will grant to Executive an option to purchase 250,000 shares of the Parent’s
common stock (the “Option”), with a per share exercise price equal to the then fair market value of a share
of the Parent’s common stock (a “Share”) on the Commencement Date, under and subject to all of the terms
of the Parent’s 2010 Stock Incentive Plan. Subject to such terms, twenty-five percent (25%) of the Option will vest on the
first year anniversary of the Commencement Date, and the remaining portion of the Option will vest in 24 equal and consecutive
monthly installments commencing on the date that is thirteen months immediately after the Commencement Date and ending on the third
year anniversary of the Commencement Date. Notwithstanding the foregoing, in the event of a Change in Control, all unvested portions
of the Option shall thereupon become fully vested and exercisable. For the purposes of this Agreement, a “Change in Control”
shall mean approval by the Parent’s shareholders of (i) a reorganization, merger, consolidation or other form of corporate
transaction or series of transactions, in each case, with respect to which persons who were the Parent’s shareholders immediately
prior to such reorganization, merger or consolidation or other transaction do not, immediately thereafter, own more than 60% of
the combined voting power entitled to vote generally in the election of directors of the reorganized, merged or consolidated company’s
then outstanding voting securities, in substantially the same proportions as their ownership immediately prior to such reorganization,
merger, consolidation or other transaction, or (ii) the Parent’s liquidation or dissolution or (iii) the sale of all or substantially
all of the Parent’s assets (unless such reorganization, merger, consolidation or other corporate transaction, liquidation,
dissolution or sale is subsequently abandoned).

 

3.5           Vacation
and Other Paid Time Off. Executive will be entitled to 3 weeks of paid vacation per calendar year, as well as sick days and
any other paid time off, all in accordance with the then current Company policy.

 

    	 

    	 

    

 

3.6           Required
Taxes and Withholdings. The Company shall withhold from any payments made to Executive (including, without limitation, those
made under this Agreement) all federal, state, local or other taxes and withholdings as shall be required pursuant to any law or
governmental regulation or ruling.

 

4.          Best
Efforts. During the Employment Period, Executive shall (i) in all respects conform to and comply with the lawful directions
and instructions given to him by the Board; (ii) subject to the proviso below, devote such amount of business time, energy and
skill as necessary to carry out his services under this Agreement; (iii) use his best efforts to promote and serve the interests
of the Company and to perform his duties and obligations hereunder in a diligent, trustworthy, businesslike and efficient manner;
(iv) comply with the policies and practices established by the Company from time to time and made applicable to its employees generally
or senior executives; (v) not engage in any other business, profession or occupation for compensation or otherwise that, directly
or indirectly, impairs or conflicts with the performance of his obligations and duties to the Company, or create a potential business
or fiduciary conflict with the Company, as reasonably determined by the Board.

 

5.          Reimbursement
for Expenses. Executive is authorized to incur reasonable expenses in the discharge of the services to be performed hereunder
in accordance with the Company’s expense reimbursement policies, as the same may be modified by the Company from time to
time in its sole and complete discretion (the “Reimbursement Policies”). Subject to the provisions of Section
19.2 below (“Section 409A Compliance”), the Company shall reimburse Executive for all such proper expenses upon presentation
by Executive of itemized accounts of such expenditures in accordance with the terms of the Reimbursement Policies.

 

6.          Termination.

 

6.1           Death.
Executive’s employment shall immediately and automatically be terminated upon Executive’s death.

 

6.2           Disability.
The Board may terminate Executive’s employment due to a Disability by providing written notice of such termination and its
effective date to Executive. For the purposes of this Agreement, “Disability” shall mean Executive has been,
with or without a reasonable accommodation, unable to perform the essential functions of the services contemplated hereunder due
to a physical or mental injury, infirmity or incapacity for a period of 120 days, whether or not consecutive, during any twelve-month
period. Any dispute as to whether Executive is disabled shall be resolved by an independent physician, reasonably acceptable to
Executive and the Board, whose determination shall be final and binding upon both Executive and the Company. If the Board and Executive
are unable to agree on the selection of such an independent physician, each shall appoint a physician and those two physicians
shall select a third physician who shall make the determination of whether Executive has a Disability. Notwithstanding the foregoing,
in the event that, as a result of earlier absence because of mental or physical incapacity, Executive incurs a “separation
from service” within the meaning of such term under “Section 409A” (as defined in Section 19.2 below), Executive
shall on such date automatically be terminated from employment as a Disability termination.

 

    	 

    	 

    

 

6.3           For
Cause by the Company. The Board may terminate Executive’s employment for Cause, at any time, upon written notice describing
the nature of such Cause. For purposes of this Agreement, the term “Cause” means Executive’s (i) willful
misconduct; (ii) willful or gross neglect of his job duties; (iii) material failure to materially perform his job duties; (iv)
refusal to follow a lawful directive of the Board, or committee thereof, that is materially related to and consistent with the
provisions of Section 1 above; (v) material failure to materially comply with the Company’s policies and practices; (vi)
an act of moral turpitude, theft, fraud or dishonesty; (vii) commission of any felony or misdemeanor (other than minor traffic
violations or offenses of a comparable magnitude not involving dishonesty, fraud or breach of trust); (viii) material breach of
any material term of a contractual agreement between Executive and the Company, including, without limitation, this Agreement and
the Confidentiality Agreement (defined in Section 9 below); or (ix) a willful act that is (or reasonably would be expected to be)
materially damaging or detrimental to the Company; provided, however, that, in the event of conduct described in clauses
(iii), (iv), (v), (viii) and (ix) that is capable of being cured, Cause shall exist only if the Company provides written notice
to Executive reasonably detailing such grounds giving rise to Cause and Executive fails to cure such grounds for Cause to the reasonable
satisfaction of Employer within two (2) business days after delivery to Executive of such written notice, if reasonably curable
within two (2) business days, or, if not, then within such time as is reasonable under the circumstances, which in no event shall
exceed fifteen (15) calendar days. Executive’s date of termination in the event Executive’s employment is terminated
for Cause shall be the date on which Executive is given notice of termination under this Section 6.3, except, if a notice period
is required, Executive’s date of termination shall be upon the expiration of said notice period if Executive fails to previously
cure the grounds giving rise to Cause.

 

6.4           Resignation
by Executive for Good Reason. Executive may resign his employment hereunder for Good Reason, at any time, provided that Executive
provides the Company with ten (10) days’ prior written notice of such resignation and such notice is given within thirty
(30) days of when Good Reason first arises. For the purpose of this Agreement, "Good Reason" means (i) a material
and substantial diminution in Executive’s duties, authority, or responsibilities that would be inconsistent with Executive’s
position (other than while Executive is temporarily physically or mentally incapacitated or as required by applicable law), (ii)
a material failure by the Company to pay Executive’s Base Salary as provided for herein; (iii) a material reduction of the
employment benefits provided for herein (which reduction is not applicable to other employees), (iv) a requirement that Executive
report to a person other than the Board; or (v) other material breach by the Company of a material provision of this Agreement;
provided (i) Executive has provided the Company with written notice reasonably detailing such breach within thirty (30)
days of the occurrence thereof or, if later, within thirty (30) days of the date upon which Executive first becomes aware of such
breach, and (ii) the Company fails to cure such breach within thirty (30) days after delivery to it of such written notice. Executive’s
date of termination in the event Executive resigns his employment for Good Reason shall be the effective date of Executive’s
notice of resignation for Good Reason, except that Company may waive all or any part of the above-referenced 10-day notice period
or of the 30-day cure period, in which event Executive’s date of termination shall be the last day of such notice or cure
period that has not been waived or, if the entire notice or cure period has been waived, the date that Executive provided notice
of the event giving rise to Good Reason or of his resignation for Good Reason.

 

    	 

    	 

    

 

6.5           Without
Good Reason. Executive may terminate his employment without Good Reason upon sixty (60) days prior written notice to the Board
without any liability.

 

6.6           Expiration
of the Term. Provided Executive’s employment has not been previously terminated pursuant to the terms hereof, Executive’s
employment shall be terminated upon the expiration of the then current Term if one Party provides notice to the other of its decision
not to renew this Agreement upon the expiration of the then current Term (“Notice of Non-Renewal”). A Notice
of Non-Renewal by Executive shall be effective only if it is provided to the Company at least sixty (60) days prior to the end
of the then current Term.

 

7.          Effect
of Termination of Employment.

 

7.1         Generally.
In the event Executive’s employment with the Company terminates, Executive shall have no right to receive any compensation,
benefits or any other payments or remuneration of any kind from the Company, except as otherwise provided by this Section 7, in
Section 18 below, in any separate written agreement between Executive and the Company or as may be required by law. In the event
Executive’s employment with the Company is terminated for any reason, Executive shall receive the following (collectively,
the “Accrued Amounts”): (i) his Base Salary through and including the effective date of his termination of
employment (the “Termination Date”), which shall be paid on the Termination Date; (ii) payment for accrued
unused vacation pay, subject to the Company’s then current vacation policy, which shall also be paid on the Termination
Date; (iii) payment of any vested benefit due and owing under any employee benefit plan, policy or program pursuant to the terms
of such plan, policy or program; and (iv) payment for unreimbursed business expenses subject to, and in accordance with, the terms
of Section 5 above.

 

7.2          Severance
Benefits. In the event Executive’s employment is terminated by the Company pursuant to Section 6.6 above (by Notice
of Non-Renewal), or by Executive pursuant to Section 6.4 hereof (Good Reason), in addition to the Accrued Amounts, Executive shall
be entitled to receive severance benefits (the “Severance Benefits”), subject to and in accordance with the
terms of this Section 7.2.

 

(a)          The
Severance Benefits shall consist of the following:

 

(i)          payment
of an amount equal to Executive’s Base Salary immediately prior to the Termination Date (“Executive’s Final
Base Salary”), and provision of medical benefits (or cash equivalent if necessary to comply with applicable health
care discrimination laws), for the greater of (i) the period of time from the day after the Termination Date through the last day
of the Term or (ii) a six (6) month period, provided, however, that the aggregate amount described in this Section 7.2(a)(i)
shall be reduced by the present value of any other cash severance or termination benefits payable to Executive under any other
plans, programs or arrangement of the Company, subject to compliance with Section 409A.

 

(b)          Provision
of the Severance Benefits is conditioned on (i) Executive’s continued compliance in all material respects with the terms
of this Agreement and of the Confidentiality Agreement (as defined in Section 9 below) that, in each case, survive termination
of Executive’s employment with the Company, and (ii) Executive signing (without revoking if such right is provided under
applicable law), within 60 days following the Termination Date, a separation agreement and release that is substantially in the
form attached as Exhibit A hereto (the “Separation Agreement”), which may be modified for changes in
the law. Payment of Executive’s Final Base Salary for the above period shall be paid in the form of salary continuation pursuant
to the terms and conditions of Section 3.1 above, commencing on a regularly scheduled payroll date of the Company within 90 days
following the Termination Date, provided that, if such 90-day period spans two calendar years, then such salary continuation
shall commence in the calendar year following the year in which the Termination Date occurs, and provided further that the first
payment shall include payment for any payroll dates between the Termination Date and the date of such payment.

 

    	 

    	 

    

 

8.          Notice
of Termination. In the event Executive elects to terminate his employment hereunder by resigning with Good Reason under Sections
6.4 above or by giving Notice of Non-Renewal under Section 6.6 above, Executive agrees to provide the Company with the applicable
prior written notice of termination required by such Sections (the “Notice Period”). The Board may, in their
discretion, place Executive on a paid leave of absence for all or any part of the Notice Period. Additionally, during the Notice
Period, (i) Executive shall perform any duties and responsibilities the Board reasonably request of Executive consistent with the
provisions of Section 1 hereof, and (ii) the Company retains the right to terminate Executive’s employment under Section
6.3 above.

 

9.          Confidentiality.
Contemporaneously with their respective execution of this Agreement, the Company and Executive shall each execute the Company’s
current standard Confidentiality Agreement (the “Confidentiality Agreement”), a copy of which is annexed hereto
as Exhibit B. The terms of the Confidentiality Agreement are hereby incorporated by reference into this Agreement, except
that, to the extent there is an irreconcilable conflict between the terms of this Agreement and those of the Confidentiality Agreement,
the terms of this Agreement shall govern. Executive’s execution and compliance with the terms of the Confidentiality Agreement
is a material term of this Agreement, upon which Executive’s employment and continued employment with the Company is conditioned.

 

10.         Non-Solicitation.

 

10.1         Non-Solicitation
of Employees. Executive acknowledges that Executive will receive valuable Trade Secrets (as defined below) concerning the Company’s
employees which is not otherwise publicly available and which Executive will learn of only through Executive’s employment
with the Company. Executive further acknowledges that the Company has hired, trained and developed an unusual and extraordinary
workforce through the expenditure of extensive time, effort and resources, which it wishes to retain. Executive therefore agrees
that, during the period of Executive’s employment with the Company and for 24 months after the termination thereof, Executive
will not directly or indirectly use any such Trade Secrets to induce or attempt to induce any employee of the Company to leave
the employ of the Company, or otherwise interfere with the employment relationships of those in the Company’s employ. For
the purposes of this Agreement, the term “Trade Secrets” is defined under Section 3426.1 of the California Civil
Code and Section 1839 of the United States Code.

 

    	 

    	 

    

 

10.2         Non-Solicitation
of Clients, Business Partners and Business Providers. Executive further acknowledges that Executive will receive valuable Trade
Secrets concerning the Company’s clients, business partners and business providers which is not otherwise publicly available
and which Executive will learn of only through Executive’s employment with the Company. Executive therefore agrees that during
the period of Executive’s employment with the Company and for 24 months after the termination thereof, Executive will not
directly or indirectly use any such Trade Secrets to solicit or attempt to persuade or solicit any of the Company’s clients,
business partners or business providers to cease to do business with the Company, terminate or otherwise alter their relationships
with the Company or otherwise interfere with the Company’s business relationships.

 

11.         Invention
Assignment.

 

11.1         Disclosure.
Executive agrees that, throughout the performance of Executive’s services for the Company, all intellectual property, including,
without limitation, ideas, inventions, improvements, discoveries, strategies, tools, concepts, designs, drawings, illustrations,
and photographs, whether patentable or unpatentable, and all works of authorship, whether copyrightable or uncopyrightable, made,
developed, conceived, modified, acquired, devised, discovered or created by Executive, whether solely by Executive or jointly with
others, whether by using the Company’s or any of its subsidiaries’, divisions’, affiliates’ or parents’,
equipment, supplies, facilities, Confidential Information (as defined in the Confidentiality Agreement) or Trade Secrets or otherwise,
and which relate to or pertain in any way at the time of conception or reduction to practice of the invention or of creation of
the work of authorship to the business of the Company, or any of its subsidiaries, divisions, affiliates or parents or actual or
demonstrably anticipated research or development of the Company, or any of its subsidiaries, divisions, affiliates, or parents,
or which result from any work performed by Executive for the Company, or any of its subsidiaries, divisions, affiliates or parents,
shall be promptly disclosed in writing by Executive to the Company.

 

11.2         Works
for Hire. Executive acknowledges that the intellectual property referred to in Section 11.1 above, which is made, conceived
or modified jointly or solely by Executive at any time during the performance of services for the Company, or its subsidiaries,
divisions, affiliates or parents, or which results from tasks assigned to Executive by the Company, shall be considered “Works
for Hire” under the copyright laws of the United States, and moreover, that all rights, title and interest therein, including
all rights of copyright, patent or otherwise, in the United States and in all foreign countries, in any form or medium and in all
fields of use now known or hereafter existing, shall belong exclusively to the Company and are hereby irrevocably assigned by Executive
to the Company. Executive agrees that the Company is under no further obligation, monetary or otherwise, to Executive for such
assignment.

 

11.3         Ownership.
Any such intellectual property and/or Works for Hire as described in Sections 11.1 and 11.2 above, shall be the exclusive property
of the Company or its assignee.

 

    	 

    	 

    

 

11.4         Assignment.
Executive hereby irrevocably assigns to the Company or its assignee, all of Executive’s rights, titles and interests in and
to any such intellectual property and Works for Hire described in Sections 11.1 and 11.2 above (to the extent such assignment is
necessary to perfect ownership in the property on behalf of the Company), and agrees that neither the Company, nor any of its subsidiaries,
divisions, affiliates or parents, are under any further obligation, monetary or otherwise, to Executive for such assignment. Executive
agrees to execute, acknowledge and deliver to the Company, its successors and assigns, all documentation, including, but not limited
to, applications for patents and/or copyrights, as the Company may deem necessary or desirable to obtain and perfect the interests
of the Company, its successors and assigns, in any and all countries, in such intellectual property and/or Works for Hire and to
vest title thereto in the Company. This covenant shall not apply to an invention that, pursuant to applicable law, excludes from
assignment items which were developed entirely on the Executive’s own time and without using the Company’s, or its
subsidiaries’, divisions’, affiliates’ or parents’, equipment, facilities or Trade Secrets or Confidential
Information. Executive acknowledges that all unpatented intellectual property and/or Works for Hire as described in this Section
11.4, which were owned and controlled by Executive on the initial date of performance of services for the Company, have been listed
by Executive on Exhibit C attached hereto. By signing this Agreement, Executive acknowledges receipt of a copy of this Agreement
and of written notification of the provisions of California Labor Code Section 2870 (which is attached hereto as Exhibit D).

 

12.         Non-Disparagement.
During and after Executive’s employment with the Company, except as may be required by law, Executive must not make any statement
(verbal, written or otherwise) about the Company or its financial status, business, personnel, directors, officers, consultants,
services or business methods that is intended to or is reasonably likely to disparage or denigrate the Company.

 

13.         Cooperation.
During and after the Employment Period, Executive shall assist and cooperate with the Company in connection with the defense or
prosecution of any claim that may be made against or by the Company, or in connection with any ongoing or future investigation
or dispute or claim of any kind involving the Company, including any proceeding before any arbitral, administrative, judicial,
legislative, or other body or agency, including testifying in any proceeding to the extent such claims, investigations or proceedings
relate to services performed or required to be performed by Executive, pertinent knowledge possessed by Executive, or any act or
omission by Executive. Executive will also perform all acts and execute and deliver any documents that may be reasonably necessary
to carry out the provisions of this paragraph. The Company will reimburse Executive for reasonable expenses Executive incurs in
fulfilling Executive’s obligations under this Section 13.

 

14.         Company
Property. Executive agrees that all Confidential Information, Trade Secrets, drawings, designs, reports, computer programs
or data, books, handbooks, manuals, files (electronic or otherwise), computerized storage media, papers, memoranda, letters, notes,
photographs, facsimile, software, computers, PDAs, Blackberries and other documents (electronic or otherwise), materials and equipment
of any kind that Executive has acquired or will acquire during the course of Executive’s employment with the Company are
and remain the property of the Company. Upon termination of employment with the Company, or sooner if requested by the Company,
Executive agrees to return all such documents, materials and records to the Company and not to make or take copies of the same
without the prior written consent of the Company.

 

15.         Remedies.
Executive acknowledges and agrees that a breach of any provision of Sections 9-13 of this Agreement would injure the Company irreparably
in a way which could not be adequately compensated for by an award of monetary damages. Therefore, Executive agrees that, in addition
to such other damages or remedies that may be available for any violations of such sections, the Company shall be entitled to equitable
relief, including, without limitation, specific performance and/or immediate, preliminary and permanent injunctive relief, without
the necessity of proving actual damages or posting a bond.

 

    	 

    	 

    

 

16.         Representations
Regarding Prior Work and Legal Obligations.

 

16.1         Executive
represents and warrants that Executive has no agreement or other legal obligation with any prior employer, or any other person
or entity, that restricts Executive’s ability to accept employment with the Company. Executive further represents and warrants
that he is not a party to any agreement (including, without limitation, a non-competition, non-solicitation, no hire or similar
agreement) and has no other legal obligation that restricts in any way Executive’s ability to perform his duties and satisfy
his other obligations to the Company, including, without limitation, those under this Agreement and the Confidentiality Agreement.

 

16.2         Executive
represents and acknowledges that he has been instructed by the Company that at no time should he divulge to or use for the benefit
of the Company any trade secret or confidential or proprietary information of any previous employer or entity with which Executive
was affiliated or of any other third-party. Executive expressly represents and warrants that Executive has not divulged or used
any such information for the benefit of the Company and will not do so.

 

16.3         Executive
represents and agrees that the Executive has not and will not misappropriate any intellectual property belonging to any other person
or entity.

 

16.4         Executive
represents and acknowledges that the Company is basing important business decisions on these representations, agreements and warranties,
and he affirms that all of the statements included herein are true. Executive agrees that Executive shall defend, indemnify and
hold the Company harmless (including attorneys’ fees) from any liability, expense or claim by any person in any way arising
out of, relating to, or in connection with a breach and/or the falsity of any of the representations, agreements and warranties
made by Executive in this Section 16.

 

17.         Insurance.
The Company shall have the right to take out life, health, accident, “key-man” or other insurance covering Executive,
in the name of the Company and at the Company’s expense in any amount deemed appropriate by the Company, but not to exceed
[Five Million Dollars ($5,000,000)]. Executive shall assist the Company in obtaining such insurance, including, without limitation,
submitting to any required examinations by a doctor mutually acceptable to the Company and Executive, and providing information
and data required by insurance companies. Notwithstanding the foregoing, the uninsurability of Executive shall not constitute a
breach of this Agreement by Executive.

 

18.         Indemnification
and Liability Insurance. The Company will indemnify the executive and hold him harmless pursuant to the terms of the Company’s
Indemnification Policy (a copy of which is annexed hereto as Exhibit E) and to the extent provided by the Company’s
charter documents. The Company will cover Executive under its officers’ and directors’ liability insurance in the same
amount and to the same extent as the Company covers its other officers and directors. If, after the Company indemnifies Executive
hereunder, it is finally adjudicated that Executive was not entitled to have been so indemnified, Executive shall promptly repay
to the Company the full amount for which he was so indemnified.

 

    	 

    	 

    

 

19.         Miscellaneous
Provisions.

 

19.1         IRCA
Compliance. This Agreement, and Executive’s employment with the Company, is conditioned on Executive’s establishing
Executive’s identity and authorization to work as required by the Immigration Reform and Control Act of 1986 (IRCA).

 

19.2         Section
409A Compliance. Unless otherwise expressly provided, any payment of compensation by Company to Executive, whether pursuant
to this Agreement or otherwise, shall be made no later than the 15th day of the third month (i.e., 21⁄2
months) after the later of the end of the calendar year or the Company’s fiscal year in which Executive’s right to
such payment vests (i.e., is not subject to a “substantial risk of forfeiture” for purposes of Code Section
409A of the Internal Revenue Code of 1986, as amended (“Section 409A”)). For purposes of this Agreement, termination
of employment shall be deemed to occur only upon “separation from service” as such term is defined under Section 409A.
Each payment and each installment of any severance payments provided for under this Agreement shall be treated as a separate payment
for purposes of application of Section 409A. To the extent that any severance payments (including payments on termination for “Good
Reason”) come within the definition of “involuntary severance” under Section 409A, such amounts up to the lesser
of two times the Executive’s annual compensation for the year preceding the year of termination or two times the Section
401(a)(17) limit for the year of termination, shall be excluded from “deferred compensation” as allowed under Section
409A, and shall not be subject to the following Section 409A compliance requirements. All payments of “nonqualified
deferred compensation” (within the meaning of Section 409A) are intended to comply with the requirements of Section 409A,
and shall be interpreted in accordance therewith. Neither party individually or in combination may accelerate, offset or assign
any such deferred payment, except in compliance with Section 409A. No amount shall be paid prior to the earliest date on which
it is permitted to be paid under Section 409A and Executive shall have no discretion with respect to the timing of payments except
as permitted under Section 409A. Any Section 409A payments which are subject to execution of a waiver
and release which may be executed and/or revoked in a calendar year following the calendar year in which the payment event (such
as termination of employment) occurs shall commence payment only in the calendar year in which the release revocation period ends
as necessary to comply with Section 409A. In the event that Executive is determined to be a “key employee” (as
defined and determined under Section 409A) of the Company at a time when its stock is deemed to be publicly traded on an established
securities market, payments determined to be “nonqualified deferred compensation” payable upon separation from service
shall be made no earlier than (i) the first day of the seventh (7th) complete calendar month following such termination
of employment, or (ii) Executive’s death, consistent with the provisions of Section 409A.  Any payment delayed by reason
of the prior sentence shall be paid out in a single lump sum at the end of such required delay period in order to catch up to the
original payment schedule.  All expense reimbursement or in-kind benefits subject to Section 409A provided under this Agreement
or, unless otherwise specified in writing, under any Company program or policy, shall be subject to the following rules: (i) the
amount of expenses eligible for reimbursement or in-kind benefits provided during one calendar year may not affect the benefits
provided during any other year; (ii) reimbursements shall be paid no later than the end of the calendar year following the year
in which the Executive incurs such expenses, and the Executive shall take all actions necessary to claim all such reimbursements
on a timely basis to permit the Company to make all such reimbursement payments prior to the end of said period, and (iii) the
right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit. Notwithstanding
anything herein to the contrary, no amendment may be made to this Agreement if it would cause the Agreement or any payment hereunder
not to be in compliance with Section 409A.

 

    	 

    	 

    

 

19.3         Limitation
on Benefits. Notwithstanding anything to the contrary contained in this Agreement, to the extent that any of the payments and
benefits provided for under this Agreement or any other agreement or arrangement between the Company and Executive (collectively,
the “Payments”) (i) constitute a “parachute payment” within the meaning of Section 280G of the Internal
Revenue Code of 1986, as amended (the “Code”) and (ii) but for this Section 19.3, would be subject to the excise
tax imposed by Section 4999 of the Code, then the Payments shall be payable either (i) in full or (ii) as to such lesser amount
which would result in no portion of such Payments being subject to excise tax under Section 4999 of the Code (determined in accordance
with the reduction of payments and benefits paragraph set forth below); whichever of the foregoing amounts, taking into account
the applicable federal, state and local income taxes and the excise tax imposed by Section 4999, results in Executive’s receipt
on an after-tax basis, of the greatest amount of benefits under this Agreement, notwithstanding that all or some portion of such
benefits may be taxable under Section 4999 of the Code. Unless Executive and the Company otherwise agree in writing, any determination
required under this Section shall be made in writing by the Company’s independent public accountants (the “Accountants”),
whose determination shall be conclusive and binding upon Executive and the Company for all purposes. For purposes of making the
calculations required by this Section, the Accountants may make reasonable assumptions and approximations concerning applicable
taxes and may rely in reasonable, good faith interpretations concerning the application of Section 280G and 4999 of the Code. The
Company and Executive shall furnish to the Accountants such information and documents as the Accountants may reasonably request
in order to make a determination under this Section. If any Payments would be reduced pursuant to the immediately preceding sentence
but would not be so reduced if the stockholder approval requirements of section 280G(b)(5) of the Code are satisfied, the Company
shall use its reasonable best efforts to cause such payments to be submitted for such approval prior to the event giving rise to
such payments. The reduction of payments and benefits hereunder, if applicable, shall be made by reducing, first, payments or benefits
to be paid in cash hereunder in the order in which such payment or benefit would be paid or provided (beginning with such payment
or benefit that would be made last in time and continuing, to the extent necessary, through to such payment or benefit that would
be made first in time) and, then, reducing any benefit to be provided in-kind hereunder in a similar order.

 

19.4         Assignability
and Binding Effect. This Agreement shall inure to the benefit of and shall be binding upon the heirs, executors, administrators,
successors and legal representatives of Executive, and shall inure to the benefit of and be binding upon the Company and its successors
and assigns, but the obligations of Executive are personal services and may not be delegated or assigned. Executive shall not be
entitled to assign, transfer, pledge, encumber, hypothecate or otherwise dispose of this Agreement, or any of Executive’s
rights and obligations hereunder, and any such attempted delegation or disposition shall be null and void and without effect. This
Agreement may be assigned by the Company to a person or entity that is an affiliate or a successor in interest to substantially
all of the business operations of the Company. Upon such assignment, the rights and obligations of the Company hereunder shall
become the rights and obligations of such affiliate or successor person or entity.

 

    	 

    	 

    

 

19.5         Severability
and Blue Penciling. If any provision of this Agreement is held to be invalid, the remaining provisions shall remain in full
force and effect. However, if any court determines that any covenant in this Agreement, including, without limitation, any covenant
in the Confidentiality Agreement, is unenforceable because the duration, geographic scope or restricted activities thereof are
overly broad, then such provision or part thereof shall be modified by reducing the overly broad duration, geographic scope or
restricted activities by the minimum amount so as to make the covenant, in its modified form, enforceable.

 

19.6         Choice
of Law and Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of California,
without regard to principles of conflicts of law. Additionally, the parties hereto agree that any proceeding for preliminary injunctive
relief or any other non-arbitral claim relating to or arising out of this Agreement or Executive’s employment with the Company
shall be resolved exclusively in an appropriate state or federal court located in Orange County, California or, if there is no
federal court in such county, then the closest federal court to Orange County, and the parties hereto hereby consent and waive
any objection to the jurisdiction of any such court.

 

19.7         Arbitration.
All claims, disputes and controversies arising out of, or related to this Agreement, the Confidentiality Agreement, Executive’s
employment with Company or the separation of that employment shall be submitted to final and binding arbitration pursuant to the
terms of this Section 19.7 with the sole exception of: (i) claims for workers’ compensation benefits; (ii) claims for unemployment
insurance compensation benefits; and (iii) to the extent required by law, administrative claims before applicable federal and state
administrative agencies (including but not limited to the Department of Fair Employment and Housing, the Equal Employment Opportunity
Commission, and any unfair labor charge which is to be brought under the National Labor Relations Act). Examples of claims, disputes
or controversies that must be resolved through arbitration rather than a court include, but are not limited to, wage and benefit
claims; contract claims; personal injury claims; tort claims; claims for wrongful termination; defamation claims; claims for discrimination
and harassment; and any other employment-related claim of any kind, including claims relating to this Agreement or any alleged
breach thereof. To the extent permitted by applicable law, (i) claims required to be arbitrated hereunder must be brought in the
Parties’ individual capacity, and not as a plaintiff or class member in any purported class or representative proceeding,
and (ii) the arbitrator may not consolidate more than one person’s/entity’s claims, and may not otherwise preside over
any form of a representative or class proceeding. Such arbitration shall be conducted in the State of California in the county
in which Executive performed services for the Company and shall be administered by the American Arbitration Association’s
(“AAA”) in accordance with the AAA’s then current employment arbitration rules and procedures, as well
as the Federal Arbitration Act (the “FAA”) and Cal. Code Civ. Proc.§1280, et seq. and any successor
or replacement statutes. Claims must be submitted to the AAA for arbitration in accordance with the AAA’s rules for commencing
an arbitration and within the time period set forth in the applicable statute of limitations. The arbitral award shall be binding
upon the parties. Judgment upon the award rendered by the arbitrator may be entered in any court having competent jurisdiction
thereof. Fees of the Arbitrator shall be paid by the Company where required by applicable law. Otherwise, each party shall be solely
responsible for paying their own costs associated with the arbitration, including but not limited to their own attorneys’
fees and expert witness fees. However, if either Party prevails on a statutory or contract claim which affords the prevailing party
their attorneys’ fees, the arbitrator may award reasonable attorneys’ fees to the prevailing Party. The arbitrator
shall have the authority to award any damages authorized by law. The award of the arbitrator shall be in writing and shall contain
the arbitrator’s factual findings, legal conclusions and reasons for the award. THE PARTIES UNDERSTAND AND AGREE THAT THEY
ARE WAIVING THEIR RIGHTS TO BRING SUCH CLAIMS TO COURT, INCLUDING THE RIGHT TO A JURY TRIAL.

 

    	 

    	 

    

 

19.8        Notices.

 

(a)          Any
notice or other communication under this Agreement shall be in writing and shall be delivered by hand, email, facsimile or mailed
by overnight courier or by registered or certified mail, postage prepaid:

 

(i)          If
to Executive, to Executive’s address on the books and records of the Company, with copies to Kevin Leung, LKP Global Law,
LLP, 1901 Avenue of the Stars, Suite 480, Los Angeles, CA 90067, kleung@lkpgl.com.

 

(ii)         If
to the Company, to the Chairman of the Board of Directors, 2990 Airway Avenue, Building A, Costa Mesa California 92626, or at such
other mailing address, email address or facsimile number as it may have furnished in writing to Executive, with copies to Fran
Stoller, Loeb & Loeb LLP, 345 Park Avenue, New York, N.Y. 10154, fstoller@loeb.com.

 

(b)          Any
notice so addressed shall be deemed to be given: if delivered by hand, email or facsimile, on the date of such delivery; if mailed
by overnight courier, on the first business day following the date of such mailing; and if mailed by registered or certified mail,
on the third business day after the date of such mailing.

 

19.9        Survival
of Terms. All provisions of this Agreement that, either expressly or impliedly, contain obligations that extend beyond termination
of Executive’s employment hereunder, as well as the terms of the Confidentiality Agreement, shall survive the termination
of this Agreement and of Executive’s employment hereunder for any reason.

 

19.10      Interpretation.
The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation
of this Agreement. The language in all parts of this Agreement shall in all cases be construed according to its fair meaning,
and not strictly for or against any Party. The Parties acknowledge that both of them have participated in drafting this Agreement;
therefore, any general rule of construction that any ambiguity shall be construed against the drafter shall not apply to this
Agreement. In this Agreement, unless the context otherwise requires, the masculine, feminine and neuter genders and the singular
and the plural include one another.

 

    	 

    	 

    

 

19.11         Entire
Agreement. This Agreement and the Confidentiality Agreement constitute the entire understanding and agreement of the Parties.
Such agreements supersede all prior negotiations, discussions, correspondence, communications, understandings and agreements regarding
such subject matter. The Company and Executive each acknowledges and agrees that it/he is not relying on, and it/he may not rely
on, any oral or written representation of any kind that is not set forth in writing in this Agreement.

 

19.12         Waivers
and Amendments. This Agreement may be altered, amended, modified, superseded or canceled, and the terms hereof may be waived,
only by a written instrument signed by the Parties or, in the case of a waiver, by the Party alleged to have waived compliance.
Any such signature of the Company must be by an authorized signatory for the Board. No delay by any Party in exercising any right,
power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any Party of any such right,
power or privilege, nor any single or partial exercise of any such right, power or privilege, preclude any other or further exercise
thereof or the exercise of any other such right, power or privilege.

 

19.13         Counterparts.
This Agreement may be executed in counterparts, and each counterpart, when executed, shall have the efficacy of a signed original.
Photographic, electronically scanned and facsimiles of such signed counterparts may be used in lieu of the originals for any purpose.

 

[The remainder of this page is intentionally
blank; signature page follows.]

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the
Parties have executed and delivered this Agreement as of the date first above written.

 

	/s/ Ki Nam	 
	KI NAM	 
	 	 
	R3 MOTION, INC.	 
	 	 	 
	By:	/s/ Ki Nam	 
	 	Name: Ki Nam	 
	 	Title: Chief Executive Officer	 
	 	 	 
	T3 MOTION, INC.	 
	 	 	 
	By:	/s/ Rod Keller	 
	 	Name: Rod Keller	 
	 	Title: Chief Executive Officer

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