Document:

Frankly
Inc.

Strategic
Transaction Retention Plan

 

	Purpose	The
    purposes of the Frankly Inc. (the “Company”) Strategic Transaction Retention Plan (the “Plan”)
    are to induce selected key contributors to remain employed with the Company, or an acquirer of the Company in a Strategic
    Transaction (as defined herein), and to remain actively engaged in the Company’s business, and to enhance the Company’s
    value by providing participants incentive benefits to help assure the success of a Strategic Transaction concerning the Company.
	 	 
	Retention
    Bonus	The
    undersigned participant (“Participant”) will be eligible to receive an award in the amount of fifty-four percent
    (54%) of your current base salary (the “Retention Bonus”) in the event that you remain employed by the Company
    subsidiary with whom you are currently employed through February 15, 2018. The Retention Bonus amount will be increased by
    nineteen percent (19%) of your base salary in the event that the Company enters a definitive binding agreement for a “Strategic
    Transaction” by February 15, 2018 and such transaction closes by February 15, 2018. The Retention Bonus amount will
    be further increased by an additional twenty seven percent (27%) of your base salary in the event that the Company achieves
    internal performance goals in the following areas for the last four months of 2017, subject to final approval by the Board
    of Directors of the Company:   Performance Goal Criteria Target Weighting Revenue As measured against budget and/or stated
    Board objectives. 30% EBITDA As measured against budget and/or stated Board objectives. 30% New Client Acquisition Winning
    new large clients with significant revenue potential (i.e., Fox, CBS, Univision) 30% Client Retention As determined by the
    retention of Frankly’s current clients and recurring revenue 10%

 

	Performance Goal	 	Criteria	 	Target

 Weighting
	Revenue	 	As measured against budget and/or stated Board objectives.	 	30%
	EBITDA	 	As measured against budget and/or stated Board objectives.	 	30%
	New Client Acquisition	 	Winning new large clients with significant revenue potential (i.e., Fox, CBS, Univision)	 	30%
	Client Retention	 	As determined by the retention of Frankly’s current clients and recurring revenue	 	10%

 

	Strategic
    Transaction	As
    used herein, Strategic Transaction means: (a) a third-party equity investment in Company in which the Company receives at
    least US$5 million, (b) the merger with or acquisition by a third-party of equity interests of the Company representing 50%
    or more of the equity value of the Company (measured as of immediately prior to the closing of such transaction), or (c) The
    acquisition by a third-party of all or substantially all of the Company’s assets. Transactions falling under sections
    (b) or (c) above are also referred to herein as a “Change of Control.”

 

    	 	 	 1

    	 

    

 

	 	Notwithstanding the foregoing, a Change of Control hereunder shall not be deemed to occur unless such transaction also qualifies as an event under Treasury Regulation Section 1.409A-3(i)(5)(v) (change in the ownership of a corporation) or Treasury Regulation Section 1.409A-3(i)(5)(vii) (change in the ownership of a substantial portion of a corporation’s assets).
	 	 
	Retention Bonus – Form and Timing of Payments	The Retention Bonus will be payable in a combination of cash and/or Company RSUs to be determined by Company in its sole discretion, with a target payout consisting of: zero-quarters (0/4) in cash and four-quarters (4/4) in Restricted Stock Units in Company (“RSUs”). The full amount of the cash component of the Retention Bonus will be paid on February 15, 2018, provided you have not terminated your employment with Company by that date. All of the RSUs component of the Retention Bonus will vest, on February 15, 2018. In the event of a Change of Control, the Company, in its discretion, may accelerate the vesting and/or payout date for all or a portion of your Retention Bonus. Note: The allocation targets identified above for the cash/RSUs composition of your Retention Bonus are not guaranteed, and the Company in its discretion will determine the final allocation on or before the payout date based on circumstances at that time. To the extent that your Retention Bonus includes RSUs, in the computation of your Retention Bonus, each such RSU will be valued at CAD$2.52. Notwithstanding anything to the contrary herein, no portion of the Retention Bonus will vest or be payable if, prior to February 15, 2018, you terminate your employment with the Company subsidiary that employs you, or such entity terminates your employment for “Cause,” as defined in the Frankly Inc. Amended and Restated Equity Incentive Plan.
	 	 
	Withholding Taxes	All cash payments under the Plan will be reduced as necessary to pay withholding and payroll taxes and other deductions required by law. Participants are solely responsible for payment of all applicable income and other applicable taxes due in connection with the receipt and/or vesting of RSUs.
	 	 
	Section 409A	
        It is intended that awards under the Plan satisfy,
        to the greatest extent possible, the exemption from the application of Section 409A of the Code (and any state law of similar effect)
        provided under Treasury Regulation Section 1.409A-1(b)(4) (as a “short-term deferral”). To the extent not so exempt,
        it is intended that awards under the Plan comply with Treasury Regulation Section 1.409A-3(i)(5)(iv)(A) (applicable to “transaction-based
        compensation”), which may entail a six-month deferral on payment for “specified employees” if the acquirer is
        a public entity and the payment results from a separation of service following the change of control.

         

        Notwithstanding the foregoing, in no event
        will Company or any successor be responsible for or have any obligation to reimburse a Participant for any taxes that may be imposed
        on a Participant under Section 409A of the Code or similar taxes imposed by state law.

 

    	 	 	 2

    	 

    

 

	Source
    of Payments	Company
    will make all cash payments under the Plan from its general assets. Company’s obligations under the Plan are unfunded
    and unsecured, and Participants have no rights other than those of general creditors.
	 	 
	No
    Assignment of Bonuses	Retention
                                         Bonuses under the Plan are not assignable or transferable by Participants before they
                                         are paid. Retention Bonuses will be paid only to the Participants who are entitled to
                                         receive them under the Plan.

         

        Moreover,
        this Plan will be paid in lieu of any potential annual discretionary bonuses for services rendered in 2017, and will not
        be additive to any other potential discretionary bonuses Participants may have been eligible in their employment contracts.

	 	 
	Employment
    at Will	Unless
    otherwise specified in a written employment agreement between a Participant and Company (or any subsidiary or successor),
    employment with the Company (or any subsidiary or successor) is for no specific period of time. Participation in the Plan
    does not confer any right to continued employment with the Company (or any subsidiary or successor). 
	 	 
	Administration	The
    Plan will be interpreted and administered by the Company. The determinations of the Company with regard to the Plan will be
    final and binding on all Participants.
	 	 
	Amendment	Prior
    to the closing of a Strategic Transaction, the Plan may be amended in Company’s discretion, including any amendments
    deemed advisable in order to avoid adverse tax consequences for one or more Participants imposed by Section 409A(a)(1) of
    the Code (or similar taxes imposed by state law).
	 	 
	Notices	Any
    notice or document required to be given under the Plan shall be considered to be given if actually delivered or mailed by
    certified mail, postage prepaid, if to Company, to 27-01 Queens Plaza North, Suite 502, Long Island City, NY 11101, Attention:
    Chief Executive Officer or, if to a Participant, at the last address of such Participant filed with Company.
	 	 
	Governing
    Law	ANY
    ACTION RELATING TO THIS PLAN SHALL BE GOVERNED BY THE APPLICABLE FEDERAL LAW AND THE LAWS OF THE STATE OF NEW YORK, WITHOUT
    GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF.
	 	 
	Severability	If
    any provision of this Plan is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction or as to
    any individual Participant, or would disqualify this Plan under any law deemed applicable by the Company, such provision shall
    be construed or deemed amended to conform to applicable law, or if it cannot be construed or deemed amended without, in the
    sole determination of the Company, materially altering the intent of this Plan, such provision shall be stricken as to such
    jurisdiction or Participant and the remainder of this Plan shall remain in full force and effect.
	 	 

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	Prerequisite
    for Payment	The
    Bonus will not be paid to a Participant unless the Participant executes a general release of all claims (in a form prescribed
    by Company) he or she may have against the Company or persons affiliated with the Company. The release must be effective and
    irrevocable as of February 15, 2018 or such other date prescribed by Company (the “Release Deadline”).
    If a Participant has not executed a release by the Release Deadline or revokes his or her release, the Participant will not
    be entitled to any benefits under the Plan. To the extent applicable, the effectiveness of the Plan will be subject to any
    required shareholder, exchange or other regulatory approval.
	 	 
	Confidentiality	Participant
                                         agrees to keep the contents and terms of this Plan confidential. Any unapproved sharing
                                         of the contents and terms of the Plan with other parties may result in the revocation
                                         of Participant’s award hereunder at Company’s sole discretion. 

 

Dated
as of November 3, 2017

 

Accepted
and Agreed:

 

Participant

 

	/s/
    Lou Schwartz	 
	Lou
    Schwartz	 

 

    	 	 	 4FRANKLY
INC.

NOTICE
OF GRANT OF RESTRICTED STOCK UNITS

 

The
Participant has been granted the number of Restricted Stock Units set forth below (the “RSUs”) pursuant to
the Frankly Inc. Equity Incentive Plan (as amended and restated, the “Plan”), as follows:

 

	Participant:	____________
	Date
    of Grant:	____________
	Number
    of Restricted Stock Units:	____RSUs
                                              Board [Member or Chair]

        ____RSUs
             Strategic Process Committee Member

        ____RSUs
             Compensation Committee [Member or Chair]

        ____RSUs
             Audit Committee [Member or Chair]

        ____RSUs
             Governance Committee [Member or Chair]

        _____RSUs

 

	Vesting:	(a)
                                         Vesting Date – The RSUs for each role above (excluding the ______ Strategic
                                         Process Committee RSUs) shall become vested pro-rata by role on the following schedule:
                                         (a) one-quarter (______ RSUs) on December 31, 2017, (b) one-quarter (_____ RSUs) on March
                                         31, 2018, (c) one-quarter (____ RSUs) on June 30, 2018, and (d) one-quarter (______ RSUs)
                                         on September 30, 2018. The ____ Strategic Process Committee Member RSUs shall become
                                         vested on the earlier of: (a) March 31, 2018, or (b) the conclusion of the Company’s
                                         Strategic Process, which shall be the date that the Company’s Board dissolves the
                                         Strategic Process Committee.

         

        (b)
        Termination of Service – The RSUs granted herein are compensation for Participant’s services for the
        period from October 1, 2017 through September 30, 2018 as a member of Frankly Inc.’s Board of Directors and various
        committees thereof. In the event that the Participant’s role as a member of the Company’s Board of Directors,
        or as a member of an individual committee thereof, terminate, the unvested RSUs under this Notice of Grant as of the date
        of such termination will be forfeited with respect to the terminated roles.

         

        (c)
        Change of Control: In the event of a Change of Control (as defined in the Plan) prior to the Vesting Date, all
        outstanding unvested RSUs granted to Participant under this Notice of Grant will vest upon the occurrence of such Change
        of Control.

        

 

Capitalized
terms not defined herein shall have the meaning as set forth in the Plan. RSUs granted hereunder that do not vest as set forth
herein, will be forfeited.

 

By
signing below, the Participant agrees that the Company, its officers, shareholders and other directors shall not be held liable
for any tax, penalty, interest or cost incurred by the Participant as a result of such determination by the IRS or other tax authority.
The Participant acknowledges and agrees that the Company may be required to withhold taxes under applicable law in connection
with the grant of the RSUs or the issuance of the Vested Shares and the Board has the full and final power and authority, in its
discretion, to determine the method for satisfaction of any tax withholding obligation arising in connection with any Award or
shares acquired pursuant thereto, including by the withholding or delivery of Shares. The Participant is urged to consult with
his or her own tax advisor regarding the tax consequences of the RSUs, including the application of Section 409A.

 

By
their signatures below, the Company and the Participant agree that the RSUs are governed by this Grant Notice and by the provisions
of the Plan and the Award Agreement, both of which are attached to and made a part of this document. The Participant acknowledges
receipt of copies of the Plan and the Award Agreement, represents that the Participant has read and is familiar with their provisions,
and hereby accepts the RSUs subject to all of their terms and conditions.

 

	Frankly,
    Inc.	PARTICIPANT
	 		 
	By:	Steve
    Chung	Signature
				 
	Its	CEO	 
		Date	 
	Address:	Address:	 
	 	333
    Bryant Street, Suite 310	 	 
	 	San
    Francisco, CA 94107	 	 

 

    	 

    	 

    

 

Frankly,
Inc.

AWARD
AGREEMENT

 

Frankly
Inc. has granted to the Participant named in the Notice of Grant of Restricted Stock Units (the “Grant Notice”)
to which this Award Agreement is attached a number of Restricted Stock Units (the “RSUs”) pursuant to
the terms and conditions set forth in the Grant Notice and this Award Agreement. The RSUs have been granted pursuant to and shall
in all respects be subject to the terms and conditions of the Plan, as amended to the Date of Grant, the provisions of which are
incorporated herein by reference. By signing the Grant Notice, the Participant: (a) acknowledges receipt of, and represents that
the Participant has read and is familiar with the terms and conditions of, the Grant Notice, this Award Agreement and the Plan,
(b) accepts the RSUs subject to all of the terms and conditions of the Grant Notice, this Award Agreement and the Plan, and (c)
agrees to accept as binding, conclusive and final all decisions or interpretations of the Board upon any questions arising under
the Grant Notice, this Award Agreement or the Plan.

 

1.
Definitions
and Construction.

 

1.1
Definitions. Unless otherwise defined herein, capitalized terms shall have the meanings assigned to such terms in
the Grant Notice or the Plan.

 

1.2
Construction. Captions and titles contained herein are for convenience only and shall not affect the meaning or
interpretation of any provision of this Award Agreement. Except when otherwise indicated by the context, the singular shall include
the plural and the plural shall include the singular. Use of the term “or” is not intended to be exclusive, unless
the context clearly requires otherwise.

 

2.
Administration.

 

All
questions of interpretation concerning the Grant Notice, this Award Agreement, the Plan or any other form of agreement or other
document employed by the Company in the administration of the Plan or the RSUs shall be determined by the Board. All such determinations
by the Board shall be final, binding and conclusive upon all persons having an interest in the RSUs, unless fraudulent or made
in bad faith. Any and all actions, decisions and determinations taken or made by the Board in the exercise of its discretion pursuant
to the Plan or the RSUs or other agreement thereunder (other than determining questions of interpretation pursuant to the preceding
sentence) shall be final, binding and conclusive upon all persons having an interest in the RSUs. Any Officer shall have the authority
to act on behalf of the Company with respect to any matter, right, obligation, or election which is the responsibility of or which
is allocated to the Company herein, provided the Officer has apparent authority with respect to such matter, right, obligation,
or election.

 

    	 

    	 

    

 

3.
Vesting.

 

Subject
to the limitations contained herein and under applicable law, including the rules of any stock exchange upon which the Shares
are listed, the RSUs shall vest as provided in the Grant Notice, provided that vesting shall cease upon the termination of the
Participant’s Service. Any RSUs that have not vested shall be forfeited upon termination of Service.

 

4.
Distribution
of Shares.

 

The
Company will deliver to the Participant a number of shares of Stock equal to the number of vested Shares subject to the RSUs on
the vesting date or dates provided in the Grant Notice; provided, however, that in the event that the Company determines
that the Participant is subject to its policy regarding insider trading of the Company’s stock and any Shares subject to
the RSUs are scheduled to be delivered on a day (the “Original Distribution Date”) that does not occur
during an applicable “window period,” as determined by the Company in accordance with such policy, then such Shares
shall not be delivered on such Original Distribution Date and shall instead be delivered as soon as practicable within the next
applicable “window period” pursuant to such policy.

 

5.
Execution
of Documents.

 

The
Participant hereby acknowledges and agrees that the manner selected by the Company to indicate the Participant’s consent
to the Grant Notice is also deemed to be execution of the Grant Notice and of this Award Agreement. The Participant further agree
that such manner of indicating consent may be relied upon as the Participant’s signature for establishing execution of any
documents to be executed in the future in connection with the RSUs. This Award Agreement shall be deemed to be signed by the Company
and the Participant upon the respective signing by the Company and the Participant of the Grant Notice to which it is attached.

 

6.
RSUs not
a Service Contract.

 

The
RSUs are not an employment or service contract, and nothing in this Award Agreement shall be deemed to create in any way whatsoever
any obligation on the Participant to continue in the service of the Company or Participating Company, or on the part of the Company
or Participating Company to continue such service. In addition, nothing in this Award Agreement shall obligate the Company or
Participating Companies, their respective stockholders, boards of directors, Officers or Employees to continue any relationship
that the Participant might have as an Employee, Director or Consultant for the Company or Participating Company.

 

7.
Unsecured
Obligation.

 

The
RSUs are unfunded, and as a holder of vested number of RSUs, the Participant shall be considered an unsecured creditor of the
Company with respect to the Company’s obligation, if any, to issue Shares pursuant to this Award Agreement.

 

8.
Miscellaneous
Provisions.

 

8.1
Termination or Amendment. The Board may terminate or amend the Plan or the RSUs at any time.

 

    	-3-

    	 

    

 

8.2
Binding Effect. Subject to the restrictions on transfer set forth herein, this Award Agreement shall inure to the
benefit of and be binding upon the parties hereto and their respective heirs, executors, administrators, successors and assigns.

 

8.3
Delivery of Documents and Notices. Any document relating to participation in the Plan, or any notice required or
permitted hereunder shall be given in writing and shall be deemed effectively given (except to the extent that this Award Agreement
provides for effectiveness only upon actual receipt of such notice) upon personal delivery, electronic delivery at the e-mail
address, if any, provided for the Participant by the Company, or, upon deposit in a postal service, by registered or certified
mail, or with a nationally recognized overnight courier service with postage and fees prepaid, addressed to the other party at
the address of such party set forth in the Grant Notice or at such other address as such party may designate in writing from time
to time to the other party.

 

(a)
Description of Electronic Delivery. The Plan documents, which may include but do not necessarily include: the Plan,
the Grant Notice, this Award Agreement, and any reports of the Company provided generally to the Company’s shareholders,
may be delivered to the Participant electronically. In addition, if permitted by the Company, the Participant may deliver electronically
the Grant Notice to the Company or to such third party involved in administering the Plan as the Company may designate from time
to time. Such means of electronic delivery may include but do not necessarily include the delivery of a link to a Company intranet
or the internet site of a third party involved in administering the Plan, the delivery of the document via e-mail or such other
means of electronic delivery specified by the Company.

 

(b)
Consent to Electronic Delivery. The Participant acknowledges that the Participant has read Section 8.3(a) of this
Award Agreement and consents to the electronic delivery of the Plan documents and, if permitted by the Company, the delivery of
the Grant Notice, as described in Section 8.3(a). The Participant acknowledges that he or she may receive from the Company a paper
copy of any documents delivered electronically at no cost to the Participant by contacting the Company by telephone or in writing.
The Participant further acknowledges that the Participant will be provided with a paper copy of any documents if the attempted
electronic delivery of such documents fails. Similarly, the Participant understands that the Participant must provide the Company
or any designated third party administrator with a paper copy of any documents if the attempted electronic delivery of such documents
fails. The Participant may revoke his or her consent to the electronic delivery of documents described in Section 8.3(a) or may
change the electronic mail address to which such documents are to be delivered (if Participant has provided an electronic mail
address) at any time by notifying the Company of such revoked consent or revised e-mail address by telephone, postal service or
electronic mail. Finally, the Participant understands that he or she is not required to consent to electronic delivery of documents
described in Section 8.3(a).

 

    	-4-

    	 

    

 

8.4
Integrated Award Agreement. The Grant Notice, this Award Agreement and the Plan, together with any employment, service
or other agreement with the Participant and the Company referring to the RSUs, shall constitute the entire understanding and agreement
of the Participant and the Company with respect to the subject matter contained herein or therein and supersede any prior agreements,
understandings, restrictions, representations, or warranties among the Participant and the Company with respect to such subject
matter. To the extent contemplated herein or therein, the provisions of the Grant Notice, this Award Agreement and the Plan shall
survive any vesting of the RSUs and shall remain in full force and effect.

 

8.5
Applicable Law. This Award Agreement shall be governed by the laws of the Province of British Columbia, Canada and
the laws of Canada applicable therein.

 

8.6
Counterparts. The Grant Notice may be executed in counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument.

 

    	-5-

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