Document:

Exhibit 10.1

 

Ondas Holdings Inc.

 

2021 Director Compensation Policy

 

		I.	Overview 

 

The Board of Directors (the “Board”)
of Ondas Holdings Inc. (“Ondas” or the “Company”) has approved the following Director Compensation Policy
(the “Policy”) to provide an inducement to attract and retain the services of qualified persons to serve as directors.

 

		II.	Overview 

 

This Policy shall apply to each director
of the Board who is not an employee of, or compensated consultant to, Ondas or any of its affiliates (a “Non-Employee Director”).
Employees of Ondas and their affiliates are not eligible to receive compensation under this Policy.

 

		III.	Director Compensation 

 

The following is a description of the compensation
arrangements under which our Non-Employee Directors are compensated for their service as directors, including as members of the
various committees of our Board, consisting of the cash retainers described in Section III.A and the annual equity award described
in Section III.B.

 

		A.	Cash Compensation

 

Subject to Section III.A.2, each Non-Employee
Director shall receive the following cash compensation on a quarterly basis for his/her service on the Board and/or committees
of the Board, payable at such time as the Company’s common stock is traded on Nasdaq (or a similar national exchange):

 

	Quarterly Board Retainer	 	$	2,500	 
	Additional Board Chair Retainer	 	$	2,000	 
	Additional Audit Committee Chair Retainer	 	$	2,000	 
	Additional Compensation Committee Chair Retainer	 	$	2,000	 
	Additional Nominating Committee Chair Retainer	 	$	1,000	 

 

		1.	Terms for Cash Payment

 

Cash payments to Non-Employee Directors
shall be paid quarterly in arrears on the fifth business day following the end of the fiscal quarter to which service relates (each,
a “Payment Date”).

 

Each Non-Employee Director that is elected
or appointed to the Board after the date hereof shall receive a prorated cash retainer for the portion of the fiscal quarter during
which he/she begins serving on the Board or a committee of the Board (the “Prorated Retainer”). The Prorated Retainer
shall be an amount equal to the product of (A) the aggregate amount payable in respect of such Non-Employee Director’s service
for a full fiscal quarter multiplied by (B) a fraction, the numerator of which is (x) the number of days during
which the Non-Employee Director serves on the Board or committees during his/her initial fiscal quarter and the denominator of
which is (y) the total number of days during such fiscal quarter. The Prorated Retainer shall be paid on first Payment Date following
such Non-Employee Director’s election or appointment to the Board.

 

     

     

    

 

		2.	Election for Equity in Lieu of Cash Retainers 

 

Prior to the end of each calendar
year, each Non-Employee Director shall make an annual election with respect to cash retainers for the following calendar
year, indicating whether he/she elects to receive the retainers in cash, as described in Section III.A.1, or in the
Company’s common stock, $0.0001 par value per share (“Common Stock”), in lieu of the cash retainers. If no
election has been made as of the first day of the year, the Non-Employee Director shall receive all retainers in cash as set
forth in Section III.A.1, or, if a previous election has been made to receive Common Stock in lieu of the cash retainers,
such election shall remain in effect for subsequent calendar years until such election is changed by the completion,
signature and delivery to the Company of a new election form in accordance with the terms of this Policy. Each newly elected
or appointed Non-Employee Director shall make an election prior to, or within 30 days of, his/her initial appointment or
election to the Board, for the remainder of the year of such appointment or election, whether to receive the retainers in
cash or in Common Stock.

 

In the event an election is made to receive
Common Stock in lieu of cash retainers, such director shall automatically be granted on the applicable Payment Date a number of
shares of Common Stock having an aggregate fair market value equal to the aggregate amount of such Non-Employee Director’s
cash retainer for such fiscal quarter, determined by dividing (A) the aggregate amount of the retainers by (B)
the Fair Market Value as set forth in the Company’s Stock Incentive Plan (rounded down to the nearest whole share) (the “Quarterly
Retainer Award”).

 

All Common Stock granted to Non-Employee
Directors under this Policy shall be (i) granted under the Company’s 2018 Incentive Stock Plan, or any successor plan (the ”Plan”)
and will be subject to the terms and conditions set forth in the Plan and (ii) subject to a resale restriction ending on the earlier
of such Non-Employee Director’s termination of service as a Non-Employee Director and the three (3)-year anniversary of the
Payment Date, as set forth in the Non-Employee Director Compensation Election Form.

 

		B.	Equity Compensation

 

		1.	Annual Equity Award

 

Each Non-Employee Director will automatically
be granted, without any further action by the Board, on the date (the “Grant Date”) of the annual meeting of the Board
coincident with or immediately following the Company’s annual meeting of stockholders (the ”Annual Stockholders
Meeting”), a number of restricted stock units (“RSUs”) (each RSU relating to one (1) share of Common Stock) having
an aggregate fair market value equal to $60,000, determined by dividing (A) $60,000 by (B) the Fair Market Value
as set forth in the Company’s Stock Incentive Plan (rounded down to the nearest whole share) (the “Annual Award”).
The Annual Awards shall vest in four successive equal quarterly installments with the first vesting date commencing on the first
day of the next calendar quarter (rounded down to the nearest whole share), provided that the Non-Employee Director is a director
of the Company on the applicable vesting date. All RSUs granted to Non-Employee Directors under this Section III.B.1 shall vest
in full immediately upon a Change in Control (as defined in the Plan).

 

		2.	Off-Cycle Equity Award 

 

If a Non-Employee Director is initially
elected or appointed to the Board other than at the Annual Stockholders Meeting or the annual meeting of the Board coincident with
or immediately following the Annual Stockholders Meeting, such Non-Employee Director will automatically be granted on his/her election
or appointment date, without any further action by the Board, a number of RSUs having an aggregate fair market value equal to the
product of (A) $60,000 multiplied by (B) a fraction, the numerator of which is (x) the number of days between
such Non-Employee Director’s initial election or appointment to the Board and the date that is 12 months following the Annual
Stockholders Meeting preceding such Non-Employee Director’s initial election or appointment to the Board and the denominator
of which is (y) 365 days (the “Prorated Annual Award Amount”), determined by dividing (A) the Prorated
Annual Award Amount by (B) the Fair Market Value as set forth in the Company’s Stock Incentive Plan (rounded down to the
nearest whole share) (an “Off-Cycle Award”). The Off-Cycle Awards shall vest in four successive equal quarterly installments
with the first vesting date commencing on the first day of the next calendar quarter (rounded down to the nearest whole share),
provided that the Non-Employee Director is a director of the Company on the applicable vesting date. All RSUs granted to Non-Employee
Directors under this Section III.B.2 shall vest in full immediately upon a Change in Control (as defined in the Plan).

 

All Annual Awards and Off-Cycle Awards
granted to Non-Employee Directors under this Policy shall be granted under the Plan, and will be subject to the terms and conditions
set forth in the Plan and the form of Restricted Stock Unit Agreement approved by the Board on May 5, 2020 (a “Restricted
Stock Unit Agreement”). All Annual Awards and Off-Cycle Awards will be subject to a resale restriction ending on the earlier
of such Non-Employee Director’s termination of service as a Non-Employee Director and the three (3)-year anniversary of the
date of grant, as provided in the applicable Restricted Stock Unit Agreement. 

 

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		C.	Expense Reimbursement 

 

Upon presentation of documentation of such
expenses reasonably satisfactory to the Company, each Non-Employee Director shall be reimbursed for his/her reasonable out-of-pocket
business expenses incurred in connection with attending meetings of the Board and its committees or in connection with other business
related to the Board. Each Non-Employee Director shall also be reimbursed for his/her reasonable out-of-pocket business expenses
authorized by the Board or one of its committees that are incurred in connection with attendance at meetings with the Company’s
management. Each Non-Employee Director shall abide by the Company’s travel and other policies applicable to company personnel.

 

	 	IV.	Policy Review / Amendments

 

The Compensation Committee or the Board
shall review this Policy from time to time to assess whether any amendments in the type and amount of compensation provided herein
should be adjusted to fulfill the objectives of this Policy. This Policy may only be amended by the Compensation Committee.

 

 

3Exhibit 10.1

 

DIVIDEND SETTLEMENT AGREEMENT

 

 

This Dividend Settlement
Agreement (this “Agreement”) is made effective as of January 28, 2021, by and between Vuzix Corporation, a Delaware
corporation with an address of 25 Hendrix Road, West Henrietta, NY, 14856 (“Vuzix”), and Intel Corporation,
a Delaware corporation with an address of 2200 Mission College Blvd., Santa Clara, CA 95052 (“Intel”). Vuzix
and Intel may be referred to herein collectively as the “Parties,” or individually as a “Party.”

 

WHEREAS, Intel is currently
the sole holder of Series A Preferred Stock of Vuzix (the “Preferred Stock”) and entitled to receive certain
dividends on those shares which are payable in cash or in kind with shares of Vuzix Common Stock, at Vuzix’s sole discretion;

 

WHEREAS, Intel desires
to voluntarily convert all of its shares of Preferred Stock into shares of Common Stock of Vuzix, and upon conversion receive accrued
but unpaid dividends on the converted shares in the form of cash;

 

WHEREAS, Vuzix is willing
to make a dividend payment to Intel in cash, and not in kind with shares of Common Stock, in exchange for a modest discount against
the total value of accrued dividends; and

 

WHEREAS, the Parties
desire to facilitate an orderly conversion of the Preferred Stock by mutually agreeing on the form and amount of the dividend payment,
as set forth herein.

 

NOW, THEREFORE, in
consideration of the foregoing recitals and mutual covenants, obligations, undertakings and commitments, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

 

1.                  
Dividend Payment. In full settlement of all dividends accrued on the Preferred Stock through and including the date
of conversion, Vuzix shall make a cash payment to Intel in the amount of Ten Million Dollars ($10,000,000.00 USD) (the “Payment”)
by wire transfer to an account designated in writing by Intel within two (2) business days after Intel’s conversion of the
Preferred Stock is made effective. Notwithstanding any delay between execution of this Agreement and conversion of the Preferred
Stock, no further dividends shall accrue and become payable beyond or in addition to the Payment, and the Payment when made shall
be in all cases deemed made in full satisfaction of all dividends accrued on the Preferred Stock through the time of conversion.
In consideration of all agreements contained herein, Intel waives its right to receive any other payment in connection with the
Preferred Stock or the dividends payable thereon.

 

2.                  
Due Execution. This Agreement has been duly executed by each of the Parties, and when delivered by the them in accordance
with the terms hereof, will constitute the valid and legally binding obligation of each Party respectively, enforceable against
it in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, and (ii)
as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies. 

 

3.                  
Amendments, Waivers. This Agreement may not be modified, amended, or supplemented, except by a writing signed by
the Party against whom enforcement thereof is sought. No waiver by any Party, whether express or implied, of any right or remedy
on any one occasion shall bar such Party from exercising any of its rights or remedies on any subsequent occasion, and no waiver
of any provision of this Agreement shall be binding unless it is in a writing signed by the Party against whom enforcement thereof
is sought. No course of dealing, custom or usage between or among any persons having any interest in this Agreement shall be deemed
effective to modify, amend, or discharge any part of this Agreement or any rights or obligations of any Party under or by reason
of this Agreement.

 

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4.                  
Further Assurances. Each Party agrees to execute such further and additional documents, instruments, and writings
as may be necessary or required to fully effectuate the terms and provisions of this Agreement. 

 

5.                  
Miscellaneous. This Agreement contains the entire understanding between the Parties regarding the subject matter
hereof, and any amendment, modification or waiver shall only be effective if made in a signed writing. This Agreement shall be
binding upon and inure to the benefit of the Parties’ respective successors and assigns. This Agreement shall be governed
by the laws of the State of Delaware, United States, without regard to any choice of law principles, and any dispute shall be heard
exclusively in courts located in Delaware. This Agreement may be executed and delivered electronically and in counterparts, which
shall constitute one and the same instrument and be deemed to have the same effect as manually signed originals.

 

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF,
each of the Parties hereto has caused this Agreement to be duly executed on its behalf and made effective as of the date first
written above.

 

 

	VUZIX CORPORATION	INTEL CORPORATION
	 	 
	 	 
	 	 
	Signature: /s/ Nathaniel Bank	Signature: /s/ Abhay Gadkari
	Name:  Nathaniel Bank	Name: Abhay Gadkari
	Title:    Corporate Counsel	Title:   Authorized Signor

 

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