Document:

Exhibit 10.1

 

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

This EXECUTIVE EMPLOYMENT AGREEMENT (this
 “Agreement”) is made and entered into as of May 10, 2019, with an effective date of May 16, 2019 (the “Effective
Date”), by and between AudioEye, Inc., a Delaware corporation with an address at 5210 East Williams Circle, Suite 750,
Tucson, Arizona 85711 (the “Company”), and Sachin Barot, a natural person (“Executive”).

 

WITNESSETH:

 

WHEREAS, Executive desires to be employed
by the Company as its Chief Financial Officer (the “Position”) and the Company wishes to employ Executive in
such capacity;

 

NOW, THEREFORE, in consideration of the
foregoing recitals and the respective covenants and agreements of the parties contained in this document, the Company and Executive
hereby agree as follows:

 

1.           Employment
and Duties.  The Company agrees to employ and Executive agrees to serve in the Position.  The duties and
responsibilities of Executive shall include the duties and responsibilities typical of a Chief Financial Officer of a publicly
traded company and such other duties and responsibilities as the Board of Directors of the Company (the “Board”),
the Executive Chairman of the Board, or the Chief Executive Officer may from time to time reasonably assign to Executive.

 

Executive shall devote all of his business
time, attention, and energies to the business of the Company, provided that nothing in this Section 1 shall prohibit Executive
from (a) serving as a director or trustee of any charitable or educational organization or (b) engaging in additional activities
in connection with personal investments and community affairs, as long as these additional activities do not materially interfere,
individually or collectively, with the performance of the duties and responsibilities of Executive, and these activities are not
inconsistent with Executive’s duties under this Agreement and do not violate the terms of Section 13.

 

2.           Term.  This
Agreement and Executive’s employment shall commence on the Effective Date and shall continue for a period of one (1) year
(the “Initial Term”) unless earlier terminated pursuant to Section 11. This Agreement will be automatically
renewed for successive additional one (1) year terms (each such term referred to as a “Subsequent Term,” and
together with the Initial Term, the “Term”), unless earlier terminated pursuant to Section 11 or either party
gives the other written notice of termination of the Agreement at least sixty (60) days before the expiration date (a “Non-Renewal
Notice”).  The restrictions in Sections 12 and 13 of this Agreement that apply after employment ends, and the provisions
of Sections 8 and 18, shall survive the expiration of the Term and the termination of Executive’s employment.

 

3.           Place
of Employment.  Executive’s job site shall initially be in Tucson, Arizona (for up to three months) and then
be in the Atlanta, Georgia metropolitan area (each, a “Job Site”) as more specifically described in Section
15 of this Agreement.  The parties acknowledge, however, that Executive may be required to travel in connection with
the performance of his duties hereunder.

 

     

     

    

 

4.           Base
Salary.  For all services to be rendered by Executive pursuant to this Agreement, the Company agrees to pay Executive
during the Term a base salary (the “Base Salary”) at an annual rate of $350,000.  The Base Salary
shall be paid in periodic installments in accordance with the Company’s regular payroll practices. The Company shall deduct
from Base Salary, and all other payments made to Executive hereunder, all applicable taxes, including income tax, FICA and FUTA,
and other required or authorized deductions.

 

5.           Bonus.  For
services to be rendered during the period from the Effective Date through the one-year anniversary of the Effective Date (the “Anniversary
Date”), Executive will be paid a bonus of $175,000 (the “2019/2020 Bonus”) within thirty (30) days after
the Anniversary Date, unless Executive resigns without Good Reason, or is terminated for Cause based on an act or omission that
occurred, before the Anniversary Date. Beginning in 2020, for each year during the Term in which Executive is employed by the Company
as of the last day of such year, the Board or the Compensation Committee of the Board (the “Compensation Committee”)
may grant to Executive a bonus or bonuses based on overall performance of the Company and Executive (“Bonus”),
which will be paid within 30 days after the audited year end financials are approved by the Audit Committee of the Company but
in no event later than the end of the year following the year for which the Bonus is awarded; provided, however, for 2020
any discretionary bonus will take into account that the 2019/2020 Bonus provides bonus compensation to Executive for the period
January 1, 2020 through the Anniversary Date. With respect to any Bonus (other than the 2019/2020 Bonus), the Compensation Committee,
in its sole discretion, shall establish performance targets for the bonus year (based on overall performance of the Company and/or
Executive), determine whether any bonuses will be awarded for such bonus year, and determine whether the Company and/or Executive,
as applicable, have achieved the targets for that year; and if the Compensation Committee determines both that bonuses will be
awarded for a bonus year and that the Company and/or Executive, as applicable, have achieved the targets for that year, then Executive
will be awarded a bonus of 50% of Base Salary at target, subject to Executive’s being employed by the Company as of the last
day of such year. Beginning in 2020, if Executive is not employed by the Company as of the last day of any full calendar year during
the Term as the result of a termination by the Company for a reason other than Executive’s death, Disability or Cause, or
a resignation by Executive for Good Reason, then Executive will be eligible to be considered for a pro rata Bonus for such year
based on the number of days Executive was employed by the Company during such year (a “Pro Rata Bonus”).

 

6.           Severance
Compensation.  The Company may terminate Executive’s employment by providing written notice of the termination
date pursuant to Section 11(f), subject to any additional notice requirements for a termination for “Cause” set forth
in Section 11(c).

 

(a)           Upon termination of Executive’s
employment during the Initial Term as the result of a termination by the Company for a reason other than Executive’s death,
Disability or Cause, or a resignation by Executive for Good Reason, and with respect to clauses (i), (ii) and (v) subject to Executive’s
satisfying the Release conditions described in Section 6(e), Executive shall be entitled to receive and the Company will pay Executive
(i) Base Salary through the Anniversary Date; (ii) the 2019/2020 bonus; (iii) reimbursement of reasonable expenses paid or incurred
by Executive in connection with and related to the performance of his duties and responsibilities for the Company during the period
ending on the termination date; (iv) any accrued but unused vacation time through the termination date in accordance with Company
policy; and (v) an amount equal to Executive’s Base Salary as of the date of termination (the “Separation Payment”).

 

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(b)           Upon termination of Executive’s
employment during a Subsequent Term as the result of a termination by the Company for a reason other than Executive’s death,
Disability or Cause, or a resignation by Executive for Good Reason, and with respect to clause (iv) and the Pro Rata Bonus subject
to Executive’s satisfying the Release conditions described in Section 6(e), Executive shall be entitled to receive and the
Company will pay Executive (i) Base Salary earned through the termination date; (ii) reimbursement of reasonable expenses paid
or incurred by Executive in connection with and related to the performance of his duties and responsibilities for the Company during
the period ending on the termination date, (iii) any accrued but unused vacation time through the termination date in accordance
with Company policy, and (iv) the Separation Payment, and Executive will be eligible to be paid a Pro Rata Bonus for such year.

 

(c)           If Executive’s employment is terminated
within twenty four (24) months after his relocation to the Atlanta, Georgia area as the result of a termination by the Company
for a reason other than Executive’s death, Disability or Cause, or a resignation by Executive for Good Reason, and subject
to Executive’s satisfying the Release conditions described in Section 6(e), then in addition to the Separation Payment, Executive
will be paid the gross amount of $10,000 on the Company’s first payroll date following the Release Effective Date (as defined
below).

 

(d)           If Executive’s employment is terminated
within twelve (12) months after a Change of Control as the result of a termination by the Company for a reason other than Executive’s
death, Disability or Cause, or a resignation by Executive for Good Reason, and subject to Executive’s satisfying the Release
conditions described in Section 6(e), then all of Executive’s granted but unvested options, stock or stock units will immediately
vest on the Release Effective Date.

 

(e)           Subject to the condition that Executive
executes an agreement releasing the Company and its affiliates from any liability associated with Executive’s employment
with the Company in form and terms satisfactory to the Company (the “Release”) and that all time periods imposed
by law permitting cancellation or revocation of the Release by Executive shall have passed or expired (the “Release Effective
Date”), the Company will pay Executive any amount owed pursuant to Section 6(c), and for a qualifying termination that
occurs (i) during the Initial Term, the amounts set forth in clause 6(a)(i) and (v) on the Company’s regular payroll dates
starting on the first payroll date following the Release Effective Date (and the payment on such first payroll date will include
all payments that were not paid between the last day of employment and such first payroll date), and the 2019/2020 Bonus within
thirty (30) days after the Release Effective Date, or (ii) during any Subsequent Term, the Separation Payment in substantially
equal installments over the course of the twelve (12) months following the Release Effective Date (the “Separation Period”)
in accordance with the customary payroll practices of the Company, and any Pro Rata Bonus will be paid within thirty (30) days
after the Release Effective Date,. Notwithstanding the foregoing, if the Release could become effective during the calendar year
following the calendar year of the date of termination, then no such payments that constitute “deferred compensation”
under Internal Revenue Code Section 409A shall be made earlier than the first day of the calendar year following the calendar year
of the date of termination.

 

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(f)            Notwithstanding
anything herein to the contrary, the compensation and benefits payable to Executive under this Agreement shall be reduced by the
amount of any insurance proceeds payable to Executive, as determined by the Company, but only to the extent that such reduction
would not cause adverse tax consequences under Section 409A of the Code (as defined below).

 

7.           Initial
Equity Award.  The Company has informed Executive that the AudioEye, Inc. 2019 Incentive Compensation Plan (the “Plan”)
will be presented to the stockholders of the Company at a stockholders meeting scheduled for May 10, 2019. The Company agrees that
if the Plan is approved by the stockholders at the May 10, 2019 meeting, then the Company will recommend to the Compensation Committee
that Executive be awarded 161,800 Restricted Stock Units (“RSUs”); that 80,900 RSUs will vest annually over
a three (3) year period from the date the RSUs are awarded, in installments of 26, 967 RSUs (first vesting date), 26,967 RSUs (second
vesting date) and 26,966 RSUs (third vesting date), subject to Executive’s continued employment on each vesting date; and
80,900 RSUs shall vest based on the Company’s achievement of performance goals that are approved by the Compensation Committee.
RSUs approved by the Compensation Committee will be awarded to Executive subject to Executive’s execution of an award agreement
acceptable to the Company.

 

8.           Clawback
Rights.  All amounts paid to Executive by the Company (other than Executive’s Base Salary, any accrued but
unused vacation time through the termination date in accordance with Company policy, the 2019/2020 Bonus and reimbursement of expenses
pursuant to paragraph 9 hereof) during the Term and any time thereafter and any and all stock based compensation (such as options,
stock, stock unit and other equity awards) granted during the Term and any time thereafter (collectively, the “Clawback
Benefits”) shall be subject to the Company’s Clawback Rights as described in this Section 8 whether or not Executive
is employed by the Company at the time the Company exercises its Clawback Rights. If the Company is required to prepare an accounting
restatement of any financial information contained in any publicly issued or filed financial document (“Original Financial
Information”) due to the material noncompliance of the Company with any financial reporting requirement under the federal
securities laws with respect to such Original Financial Information (which shall not include a restatement of financial results
resulting from subsequent changes in accounting pronouncements or  requirements which were not in effect on the date
the financial statements were originally prepared) (a “Restatement”), then the Company shall have the following
 “Clawback Rights” following a publicly announced Restatement: (a) Executive shall immediately repay or surrender
upon written demand by the Company any Clawback Benefits paid to or received by Executive, and any profits realized from the sale
of securities of the Company, within the twelve (12) month period immediately following the first public issuance or filing with
the U.S. Securities and Exchange Commission (“SEC”) (whichever first occurs) of the Original Financial Information;
and (b) Executive shall repay or surrender upon written demand by the Company any Clawback Benefits that were paid or awarded to
Executive during the three (3)-year period preceding the date on which the Company is required to prepare a Restatement to the
extent that Clawback Benefits amounts that were determined by reference to the financial results reported in the Original Financial
Information exceed the Clawback Benefits amounts that would have been paid or awarded based on the financial results in the Restatement,
provided, however, if any Clawback Benefit is subject to both clause 8(a) and clause 8(b), then clause 8(a) shall apply. Any written
demand by the Company pursuant to clause 8(a) or clause 8(b) shall include the amount of the Clawback Benefits that are subject,
respectively, to repayment or surrender. With respect to the Clawback Rights described in clause 8(b), if any excess portion of
the Clawback Benefits resulting from restated financial results is not repaid or surrendered by Executive within ninety (90) days
of Executive’s receipt of the Company’s written demand, then the Company shall have the right to take any and all action
to effectuate such adjustment.

 

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The amount of Clawback Benefits to be repaid
or surrendered to the Company shall be determined by the Compensation Committee and applicable law, rules and regulations.  With
respect to the Clawback Rights described in clause 8(b): Executive shall be permitted to make a presentation or submit documentation,
either individually or through an attorney, to the Compensation Committee prior to any final determination by the Compensation
Committee; and if Executive, or his attorney, appears before or submits documentation to the Compensation Committee, then at least
a majority vote of the Compensation Committee is required for any determination that Clawback Benefits are due from Executive.
All determinations by the Compensation Committee with respect to the Clawback Rights described in clauses 8(a) and 8(b)shall be
final and binding on the Company and Executive.  The parties acknowledge it is their intention that the foregoing Clawback
Rights as they relate to Restatements conform in all respects to applicable provisions of Section 304 of the Sarbanes Oxley Act
(“Sarbanes Oxley Act”) and Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
(the “Dodd Frank Act”) and require recovery of bonus or other incentive-based or equity-based compensation pursuant
to the Sarbanes Oxley Act and/or incentive-based compensation pursuant to the provisions of the Dodd Frank Act, and any and all
rules and regulations promulgated thereunder from time to time in effect.  Accordingly, the terms and provisions of this
Agreement shall be deemed automatically amended from time to time to assure compliance with the Dodd Frank Act and such  rules
and regulation as hereafter may be adopted and in effect.

 

9.           Expenses.  Executive
shall be entitled to prompt reimbursement by the Company for all reasonable ordinary and necessary travel, entertainment, and other
expenses incurred by Executive while employed (in accordance with the policies and procedures established by the Company for its
senior executive officers) in the performance of his duties and responsibilities under this Agreement; provided, that Executive
shall properly account for such expenses in accordance with Company policies and procedures.

 

10.         Other
Benefits; Vacation.  During the Term, Executive shall be eligible to participate in incentive, stock purchase, savings,
retirement (401(k)), and welfare benefit plans, including, without limitation, health, medical, dental, vision, life (including
accidental death and dismemberment) and disability insurance plans to the extent provided by the Company generally to its employees
(collectively, “Benefit Plans”), in substantially the same manner and at substantially the same levels as the
Company makes such opportunities available to the Company’s managerial or salaried executive employees.  During
the Term, Executive shall be entitled to accrue, on a pro rata basis, twenty (20) paid vacation days per year, which if not taken
will accrue and be carried forward. Vacation shall be taken at such times as are mutually convenient to Executive and the Company
and no more than twenty (20) consecutive days shall be taken at any one time without the advance written approval of the Executive
Chairman or Chief Executive Officer.

 

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11.         Termination
of Employment.

 

(a)           Death.  If
Executive dies during the Term, this Agreement and Executive’s employment with the Company shall automatically terminate
and the Company shall have no further obligations to Executive or his heirs, administrators or executors with respect to compensation
and benefits accruing thereafter, except for the obligation to pay to Executive’s heirs, administrators or executors any
earned but unpaid Base Salary, reimbursement of any and all reasonable expenses paid or incurred by Executive in connection with
and related to the performance of his duties and responsibilities for the Company during the period ending on the termination date,
and any accrued but unused vacation time through the termination date in accordance with Company policy.

 

(b)           Disability.  In
the event that, during the Term Executive shall be prevented from performing his duties and responsibilities hereunder to the full
extent required by the Company by reason of Disability (as defined below), this Agreement and Executive’s employment with
the Company shall automatically terminate and the Company shall have no further obligations or liability to Executive or his heirs,
administrators or executors with respect to compensation and benefits accruing thereafter, except for the obligation to pay Executive
or his heirs, administrators or executors any earned but unpaid Base Salary, reimbursement of any and all reasonable expenses paid
or incurred by Executive in connection with and related to the performance of his duties and responsibilities for the Company during
the period ending on the termination date, and any accrued but unused vacation time through the termination date in accordance
with Company policy.  For purposes of this Agreement, “Disability” shall mean a physical or mental disability
that prevents the performance by Executive, even with a reasonable accommodation, of his duties and responsibilities hereunder
for a total of sixty five (65) business days during any twelve (12) consecutive months.

 

(c)           Cause.

 

(1)           At
any time during the Term, the Company may terminate this Agreement and Executive’s employment hereunder for Cause. For purposes
of this Agreement, “Cause” shall consist of a termination due to the following, as specified in the written
notice of termination pursuant to Section 11(f) (and in each case Executive fails to cure within thirty (30) days of delivery of
such notice, except as to clauses (E) or (F), which shall not be subject to cure): (A) Executive’s failure to substantially
perform the fundamental duties and responsibilities associated with Executive’s position for any reason other than a physical
or mental disability, including Executive’s failure or refusal to carry out reasonable instructions; (B) Executive’s
material breach of any material written Company policy; (C) Executive’s gross misconduct in the performance of Executive’s
duties for the Company; (D) Executive’s material breach of the terms of this Agreement; (E) being arrested or charged with
any fraudulent or felony criminal offense or any other criminal offense which reflects adversely on the Company or reflects conduct
or character that the Board reasonably concludes is inconsistent with continued employment; or (F) any criminal conduct that is
a “statutory disqualifying event” (as defined under federal securities laws, rules and regulations).

 

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(2)           Prior
to any termination for Cause, and subsequent to any applicable thirty (30) day period of time within which Executive may be permitted
to cure, Executive will be given five (5) business days written notice specifying the alleged Cause event and will be entitled
to appear (with counsel) before the full Board to present information regarding his views on the Cause event. If Executive appears
before the Board, then at least a majority vote of the full Board is required to terminate him for Cause; if Executive fails to
make a written request for an appearance before the Board within (5) business days after delivery of written notice, then the termination
for Cause will be effective at the end of that five day period.  After providing the foregoing notice, the Board may
suspend Executive with full pay and benefits until a final determination pursuant to this Section 11(c) has been made or is effective.

 

(3)           Upon
termination of this Agreement for Cause, the Company shall have no further obligations or liability to Executive or his heirs,
administrators or executors with respect to compensation and benefits thereafter, except for the obligation to pay Executive any
earned but unpaid Base Salary, reimbursement of any and all reasonable expenses paid or incurred by Executive in connection with
and related to the performance of his duties and responsibilities for the Company during the period ending on the termination date,
and any accrued but unused vacation time through the termination date in accordance with Company policy.  

 

(d)           Good
Reason.

 

(1)           At
any time during the Term, subject to the conditions set forth in Section 11(d)(2) below, Executive may terminate this Agreement
and Executive’s employment with the Company for “Good Reason.”. For purposes of this Agreement, “Good
Reason” shall mean any of the following actions taken by the Company or a successor corporation or entity without Executive’s
consent: (A) material reduction of Executive’s base compensation; (B) material reduction in Executive’s title, authority,
duties or responsibilities; (C) failure or refusal of a successor to the Company to materially assume the Company’s obligations
under this Agreement in the event of a Change of Control as defined in Section 11(e)(ii); (D) relocation of Executive’s
Job Site that results in an increase in Executive’s one-way driving distance by more than fifty (50) miles from Executive’s
then-current principal residence; or (E) any other material breach by the Company of this Agreement.

 

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(2)           Notwithstanding
any provision of Section 11(d) to the contrary, Executive shall not be entitled to terminate this Agreement and Executive’s
employment with the Company for Good Reason unless and until Executive shall have delivered written notice to the Company within
ninety (90) days of the date upon which the facts giving rise to Good Reason occurred of his intention to terminate this Agreement
and his employment with the Company for Good Reason, which notice specifies in reasonable detail the circumstances claimed to provide
the basis for such termination for Good Reason; the Company shall not have eliminated the circumstances constituting Good Reason
within thirty (30) days of its receipt from Executive of such written notice; and Executive, in fact, terminates this Agreement
and his employment with the Company for Good Reason within 120 days following the initial existence of the event triggering Good
Reason.

 

(3)          The
payments that the Company will make to Executive (or, following his death, to Executive’s heirs, administrators or executors)
in the event that Executive terminates this Agreement and his employment with the Company for Good Reason, or the Company terminates
this Agreement and Executive’s employment with the Company for a reason other than Cause, death or Disability, are described
in Section 6.       

 

(e)           Change
of Control.  For purposes of this Agreement, “Change of Control” shall mean the occurrence of
any one or more of the following: (i) the accumulation (if over time, in any consecutive twelve (12) month period), whether directly,
indirectly, beneficially or of record, by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of
the Securities Exchange Act of 1934, as amended) of 80% or more of the shares of the outstanding common stock of the Company, whether
by merger, consolidation, sale or other transfer of shares of Company common stock (other than a merger or consolidation where
the stockholders of the Company prior to the merger or consolidation are the holders of a majority of the voting securities of
the entity that survives such merger or consolidation), (ii) a sale of all or substantially all of the assets of the Company or
(iii) during any period of twelve (12) consecutive months, the individuals who, at the beginning of such period, constitute the
Board, and any new director whose election by the Board or nomination for election by the Company’s stockholders was approved
by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the
12-month period or whose election or nomination for election was previously so approved, cease for any reason to constitute at
least a majority of the Board; provided, however, that the following acquisitions shall not constitute a Change of
Control for the purposes of this Agreement: (A) any acquisitions of Company common stock or securities convertible, exercisable
or exchangeable into Company common stock directly from the Company, or (B) any acquisition of Company common stock or securities
convertible, exercisable or exchangeable into Company common stock by any employee benefit plan (or related trust) sponsored by
or maintained by the Company.

 

(f)            Any
termination of Executive’s employment by the Company or by Executive (other than termination by reason of Executive’s
death) shall be communicated by written Notice of Termination to the other party of this Agreement. For purposes of this Agreement,
a “Notice of Termination” shall mean a written notice which shall indicate the specific termination provision
in this Agreement relied upon and for a termination for Cause, Disability or for Good Reason shall set forth in reasonable detail
the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated,
provided, however, failure to provide timely notification shall not affect the employment status of Executive.

 

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(g)           In
the event of a termination of Executive’s employment with the Company for any reason, (i) Executive agrees not to disparage
the Company or its Board members, officers or other senior management employees, or say or do anything that will adversely impact
the Company’s business practices or the reputation of the Company or its Board members, officers or management employees,
and (ii) the Company agrees that its Board members, officers and other senior management employees will not disparage Executive,
or say or do anything that will adversely impact Executive’s reputation. Notwithstanding the foregoing, this Section 11(g)
does not apply to Executive, the Company, or its Board members, officers or other senior management employees, in (a) filing
any pleading, or providing truthful oral or written testimony, in any administrative, arbitration or judicial proceeding, (b) providing
information pursuant to subpoena, court order, or similar legal process, (c) reporting violations of any law or regulation,
or otherwise providing truthful information, to any government or regulatory agencies, or in any document required to be filed
with the SEC, or (d) otherwise engaging in whistleblower activity protected by the Securities Exchange Act of 1934, the Dodd-Frank
Wall Street Reform and Consumer Protection Act, or any rules or regulations issued thereunder, including, without limitation, SEC
Rule 21F-17.

 

12.         Confidential
Information.

 

(a)           Disclosure
of Confidential Information. Executive recognizes, acknowledges and agrees that he or she has had and will continue to have
access to secret and confidential information regarding the Company, its subsidiaries and their respective businesses (“Confidential
Information”), including but not limited to, its products, methods, formulas, software code, patents, sources of supply,
customer dealings, data, know-how, trade secrets and business plans, provided such information is not in or does not hereafter
become part of the public domain, or become known to others through no fault of Executive.  Executive acknowledges that
such information is of great value to the Company, is the sole property of the Company, and has been and will be acquired by him
in confidence.  In consideration of the obligations undertaken by the Company herein, Executive will not, at any time,
during or after his employment hereunder, reveal, divulge or make known to any person, any information acquired by Executive during
the course of his employment, which is treated as confidential by the Company, and not otherwise in the public domain. The provisions
of this Section 12 shall survive the termination of Executive’s employment hereunder for a period of three (3) years. Information
will not be deemed to be Confidential Information if: (i) the information was in Executive’s possession or within Executive’s
knowledge before the Company disclosed it to Executive; (ii) the information was or became generally known to those who could take
economic advantage of it; (iii) Executive obtained the information from a third party that was not known by Executive to be bound
by a confidentiality agreement or other obligation of confidentiality to the Company or any other party with respect to such information;
or (iv) Executive is required to disclose the information pursuant to legal process (e.g. a subpoena), provided that Executive
notifies the Company promptly upon receiving or becoming aware of such legal process.

 

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(b)           Executive
affirms that he or she will not rely upon the protected trade secrets or confidential or proprietary information of any prior employer(s)
in providing services to the Company or its subsidiaries.

 

(c)           In
the event that Executive’s employment with the Company terminates for any reason, Executive shall deliver forthwith to the
Company any and all originals and copies, including those in electronic or digital formats, of Confidential Information; provided,
however, Executive shall be entitled to retain (i) papers and other materials of a personal nature, including, but not limited
to, photographs, correspondence, personal diaries, calendars and rolodexes, personal files and phone books, (ii) information showing
his compensation or relating to reimbursement of expenses, (iii) information that he or she reasonably believes may be needed for
tax purposes and (iv) copies of plans, programs and agreements relating to his employment, or termination thereof, with the Company.

 

(d)           Notwithstanding
any provision of this Agreement to the contrary, under 18 U.S.C. §1833(b), “An individual shall not be held criminally
or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that (A) is made (i) in confidence
to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose
of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit
or other proceeding, if such filing is made under seal.” Nothing in this Agreement or any other Company policy is intended
to conflict with this statutory protection, and no Company director, officer, or member of management has the authority to impose
any rule to the contrary.

 

13.         Non-Competition
and Non-Solicitation.

 

(a)           Executive
agrees and acknowledges that the non-competition restrictions set forth herein are reasonable and necessary to protect the Company’s
legitimate proprietary interests and do not impose undue hardship or burdens on Executive. Executive also acknowledges that the
technology, software and related products and services developed or provided by the Company and its affiliates relating to ADA-related
and other digital accessibility compliance requirements and enhancements (the “Business”) are or are intended to be
sold, provided, licensed and/or distributed to customers and clients primarily in and throughout the United States (the “Territory”)
(to the extent the Company comes to operate, either directly or through the engagement of a distributor or joint or co-venturer,
or sell a significant amount of its products and services to customers located, in areas other than the United States during the
Term, the definition of Territory shall be automatically expanded to cover such other areas in which the Company did business at
any time during the last year of Employee’s employment with the Company). If that geographical scope of the Territory is
deemed by a court of competent jurisdiction to be overly broad, then the Territory extends to the United States, Guam and Puerto
Rico; or if that geographical scope is deemed by a court to be overly broad, then the Territory extends to the United States; or
if that geographical scope is deemed by a court of competent jurisdiction to be overly broad, then the Territory extends to Pima
County, Arizona and Maricopa County, Arizona. Executive further acknowledges and agrees that the Territory, scope of prohibited
competition with the Business, and time duration set forth in the non-competition restrictions set forth below are reasonable and
necessary to maintain the value of the Confidential Information of, and to protect the goodwill and other legitimate business interests
of, the Company, its affiliates and/or its clients or customers.  The provisions of this Section 13 shall survive the
termination of Executive’s employment hereunder.

 

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(b)           Executive
hereby agrees and covenants that he or she shall not without the prior written consent of the Company, directly or indirectly,
in any capacity whatsoever, including, without limitation, as an employee, employer, consultant, principal, partner, shareholder,
officer, director or any other individual or representative capacity (other than (i) as a holder of less than ten (10%) percent
of the outstanding securities of a Company whose shares are traded on any national securities exchange or (ii) as a limited partner,
passive minority interest holder in a venture capital fund, private equity fund or similar investment entity which holds or may
hold an equity or debt position in portfolio companies that are competitive with the Company’s Business; provided however,
that Executive shall be precluded from serving as an operating partner, general partner, manager or governing board designee with
respect to such portfolio companies), or whether on Executive’s own behalf or on behalf of any other person or entity or
otherwise howsoever, during the Term and the Separation Period and thereafter to the extent described below, within the Territory:

 

(1)           Engage,
own, manage, operate, control, be employed by, consult for, participate in, or be connected in any manner with the ownership, management,
operation or control of any business in competition with the Business of the Company;

 

(2)           Recruit,
solicit or hire, or attempt to recruit, solicit or hire-, any current or former employee, or independent contractor of the Company
who was employed by or contracted with the Company any time during the final year of Executive’s employment with the Company,
to leave the employment (or independent contractor relationship) thereof, whether or not any such employee or independent contractor
is party to an employment agreement, for the purpose of competing with the Business of the Company;

 

(3)           Attempt
in any manner to solicit or accept from any customer of the Company, with whom Executive had significant contact with or knowledge
of during Executive’s employment by the Company (whether under this Agreement or otherwise), business of the kind or competitive
with the Company’s Business with such customer or to persuade or attempt to persuade any such customer to cease to do business
or to reduce the amount of business which such customer has customarily done or might do with the Company, or if any such customer
elects to move its business to a person other than the Company, provide any services of the kind or competitive with the Business
of the Company for such customer, or have any discussions regarding any such service with such customer, on behalf of such other
person; or

 

(4)           Interfere
with the Company’s Business or with any relationship, contractual or otherwise, between the Company and any other party,
including, without limitation, any employee, customer, supplier, distributor, co-venturer or joint venturer of the Company, for
the purpose of soliciting such other party to discontinue or reduce its business with the Company.

 

    	 	11	 

     

    

 

With respect to the activities described
in Paragraphs (1), (2), (3) and (4) above, the restrictions of this Section 13(b) shall apply when Executive is employed by the
Company and until one (1) year following the termination of Executive’s employment with the Company (including upon expiration
of this Agreement); provided, however, that if this Agreement or Executive’s employment is terminated by Executive for Good
Reason or by the Company without Cause, then the restrictions of this Section 13(b) shall terminate concurrently with the termination
and shall be of no further effect.  In the event that any provision of this Section 13 is determined by a court
of competent jurisdiction to be unenforceable, such provision shall not render the entire Section unenforceable but, to the extent
possible, the court may appropriately blue pencil the Section to render such provision enforceable.

 

14.         Inventions.  All
systems, inventions, discoveries, apparatus, techniques, methods, know-how, formulae or improvements made, developed or conceived
by Executive during Executive’s employment by the Company that (i) are directly relevant to the Company’s business
as then constituted, (ii) are developed as a part of the tasks and assignments that are the duties and responsibilities of Executive,
and (iii) were created using substantially the Company’s resources, such as time, materials and space, shall be and continue
to remain the Company’s exclusive property, without any added compensation or any reimbursement for expenses to Executive,
and upon the conception of any and every such invention, process, discovery or improvement and without waiting to perfect or complete
it, Executive promises and agrees that Executive will immediately disclose it to the Company and to no one else and thenceforth
will treat it as the property and secret of the Company. Executive will also execute any instruments requested from time to time
by the Company to vest in it complete title and ownership to such invention, discovery or improvement and will, at the request
of the Company, do such acts and execute such instruments as the Company may require, but at the Company’s expense to obtain
patents, trademarks or copyrights in the United States and foreign countries, for such invention, discovery or improvement and
for the purpose of vesting title thereto in the Company, all without any reimbursement for expenses (except as provided in Section
9 or otherwise) and without any additional compensation of any kind to Executive.

 

15.         Relocation
Package

 

(a)           Arizona.
It is understood that Executive will spend up to the first three (3) months of employment with the Company at its current location
in the State of Arizona (the “Arizona Location”). The Company will provide the following relocation package with respect
to the time Executive is employed at the Arizona Location:

 

(1)           In
advance of the Executive beginning working out of the Arizona Location, the Company shall pay for the Executive to fly to the Arizona
Location and shall pay for a hotel for the Executive for a period not exceeding three (3) nights to allow for the Executive to
locate suitable living arrangements for the period of time Executive is employed at the Arizona Location;

 

    	 	12	 

     

    

 

(2)           The
Company shall pay, or reimburse Executive, for all rent, deposits, utilities and all other rent-related items incurred by Executive
during the time Executive is employed at the Arizona Location, up to a maximum of $5,000 per month;

 

(3)           The
Company shall provide to Executive a $700.00/month stipend to rent a car during the time Executive is employed at the Arizona Location.
In the event Executive decides to ship his car from New Jersey to the Arizona Location, Company shall pay up to $2,000 for such
shipping costs, fees and related expenses and will not be responsible for the $700.00/month stipend; and

 

(4)           The
Company shall pay for six (6) airplane tickets for Executive and/or his wife to use for visitation purposes during the time the
Executive is employed at the Arizona Location.

 

(b)           Georgia.
After temporarily residing in Arizona for up to three (3) months, it is understood that Executive thereafter will be employed by
the Company at its new location in the State of Georgia. (the “Georgia Location”). The Company will provide the following
relocation package with respect to the time Executive is employed at the Georgia Location:

 

(1)           The
Company shall pay for all penalties, fees and costs associated with Executive terminating his current lease up to a maximum of
$10,000;

 

(2)           In
advance of the Executive beginning working out of the Georgia Location, the Company shall pay for the Executive and his wife to
fly to the Georgia Location on two (2) separate trips and the Company shall pay for a hotel for the Executive and his wife for
a period not exceeding three (3) nights for each trip to allow for the Executive to locate suitable living arrangements for the
period of time Executive is employed at the Georgia Location;

 

(3)           For
a period not exceeding two (2) months, the Company shall pay for all rent, deposits, utilities and all other rent-related items
incurred by Executive and his wife once Executive begins employment at the Georgia Location, if necessary, up to a maximum of $5,000
per month;

 

(4)           The
Company shall pay 100% of the transaction costs associated with any home purchase or purchase of any condominium or other, similar
unit, such as attorney’s fees, title search fees, filing fees and condominium processing fees. All such non-recurring transaction
costs in connection with such purchases will be reimbursed by the Company. This includes the typical purchase closing costs associated
with the purchase of a new home, condominium or other, similar unit, but does not include payments at closing of mortgage interest,
condominium fees, or property tax adjustments.

 

(5)           The
Company shall reimburse Executive for the reasonable costs, expenses and fees associated with Executive and his wife moving any
personalty to the Georgia Location; and

 

    	 	13	 

     

    

 

(6)           The
Company shall reimburse Executive for the reasonable shipping costs, fees and expenses associated with shipping Executive’s
car to the Georgia Location.

 

(c)           Additional
Terms. All airplane travel will be coach class, and the hotels selected will be consistent with the Company’s travel
and expense reimbursement policies for its executives.

 

16.         Attorneys’
Fees

 

The Company will provide to Executive an
amount totaling up to $5,000.00 payable towards attorneys’ fees incurred by Executive in reviewing, revising and negotiating
this Agreement. Executive shall provide to the Company Executive’s invoice for services rendered in this regard that has
been reviewed and approved by Executive, and the Company shall pay Executive’s attorney directly the amount of invoice, up
to $5,000, within thirty (30) days after its receipt of the invoice.

 

17.         Section
409A.

 

The provisions of this Agreement are intended
to comply with or meet an exemption from Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”)
and any final regulations and guidance promulgated thereunder (“Section 409A”) and shall be construed in a manner
consistent with the requirements for avoiding taxes or penalties under Section 409A.  The Company and Executive agree
to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary,
appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Executive under
Section 409A.

 

To the extent that Executive will be reimbursed
for costs and expenses or in-kind benefits, except as otherwise permitted by Section 409A, (a) the right to reimbursement or in-kind
benefits is not subject to liquidation or exchange for another benefit, (b) the amount of expenses eligible for reimbursement,
or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits
to be provided, in any other taxable year; provided that the foregoing clause (b) shall not be violated with regard to expenses
reimbursed under any arrangement covered by Section 105(b) of the Code solely because such expenses are subject to a limit related
to the period the arrangement is in effect and (c) such payments shall be made on or before the last day of the taxable year following
the taxable year in which you incurred the expense.

 

A termination of employment shall not be
deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits upon
or following a termination of employment unless such termination constitutes a “Separation from Service” within the
meaning of Section 409A and, for purposes of any such provision of this Agreement references to a “termination,” “termination
of employment” or like terms shall mean Separation from Service.

 

    	 	14	 

     

    

 

Each installment payable hereunder shall
constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b), including Treasury Regulation Section 1.409A-2(b)(2)(iii).  Each
payment that is made within the terms of the “short-term deferral” rule set forth in Treasury Regulation Section 1.409A-1(b)(4)
is intended to meet the “short-term deferral” rule.  Each other payment is intended to be a payment upon
an involuntary termination from service and payable pursuant to Treasury Regulation Section 1.409A-1(b)(9)(iii), et. seq., to the
maximum extent permitted by that regulation, with any amount that is not exempt from Code Section 409A being subject to Code Section
409A.

 

Notwithstanding anything to the contrary
in this Agreement, if Executive is a “specified employee” within the meaning of Section 409A, any payment otherwise
due to Executive on or within the six (6) month period following Executive’s termination will accrue during such six (6)
month period and will become payable in one lump sum cash payment on the date six (6) months and one (1) day following the date
of Executive’s termination of employment, to the extent required to avoid any adverse tax consequences under Section 409A.  Any
remaining payment(s), will be payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding
anything herein to the contrary, if Executive dies following termination but prior to the six (6) month anniversary of Executive’s
termination date, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively
practicable after the date of Executive’s death and all other amounts will be payable in accordance with the payment schedule
applicable to each payment or benefit, to the extent and in a manner consistent with Section 409A.

 

18.         Miscellaneous.

 

(a)           Executive
acknowledges that the services to be rendered by him under the provisions of this Agreement are of a special, unique and extraordinary
character and that it would be difficult or impossible to replace such services.  Furthermore, the parties acknowledge
that monetary damages alone would not be an adequate remedy for any breach by Executive of Section 12 or Section 13 of this Agreement.
Accordingly, Executive agrees that any breach by Executive of Section 12 or Section 13 of this Agreement shall entitle the Company,
in addition to all other legal remedies available to it, to apply to any court of competent jurisdiction to seek to enjoin such
breach. The parties understand and intend that each restriction agreed to by Executive hereinabove shall be construed as separable
and divisible from every other restriction, that the unenforceability of any restriction shall not limit the enforceability, in
whole or in part, of any other restriction, and that one or more or all of such restrictions may be enforced in whole or in part
as the circumstances warrant. In the event that any restriction in this Agreement is more restrictive than permitted by law in
the jurisdiction in which the Company seeks enforcement thereof, such restriction shall be limited to the extent permitted by law.
The remedy of injunctive relief herein set forth shall be in addition to, and not in lieu of, any other rights or remedies that
the Company may have at law or in equity.

 

(b)           Neither
Executive nor the Company may assign or delegate any of their rights or duties under this Agreement without the express written
consent of the other; provided, however, that the Company shall have the right to delegate its obligation of payment of all sums
due to Executive hereunder, provided that such delegation shall not relieve the Company of any of its obligations hereunder.

 

    	 	15	 

     

    

 

(c)           During
the Term, the Company (i) shall indemnify and hold harmless Executive and his heirs and representatives as, and to the extent,
provided in the Company’s bylaws and (ii) shall cover Executive under the Company’s directors’ and officers’
liability insurance on the same basis as it covers other senior executive officers and directors of the Company during the Term
and thereafter with respect to acts or omissions that occurred during the Term.

 

(d)           This
Agreement constitutes and embodies the full and complete understanding and agreement of the parties with respect to Executive’s
employment by the Company (it being understood that the Plan and RSU award agreement shall also apply to RSUs awarded pursuant
to Section 7), supersedes all prior understandings and agreements, whether oral or written, between Executive and the Company,
and shall not be amended, modified or changed except by an instrument in writing executed by the party to be charged. The invalidity
or partial invalidity of one or more provisions of this Agreement shall not invalidate any other provision of this Agreement. No
waiver by either party of any provision or condition to be performed shall be deemed a waiver of similar or dissimilar provisions
or conditions at the same time or any prior or subsequent time.

 

(e)           This
Agreement shall inure to the benefit of, be binding upon and enforceable against, the parties hereto and their respective heirs
(to the extent that assets or rights of the Executive are transferred to them) and permitted assigns.

 

(f)            The
headings contained in this Agreement are for convenience of reference only and shall not affect in any way the meaning or interpretation
of this Agreement.

 

(g)           All
notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing and shall be
deemed to have been duly given when personally delivered, sent by registered or certified mail, return receipt requested, postage
prepaid, or by reputable national overnight delivery service (e.g. Federal Express) for overnight delivery to the Company at its
principal executive office or to Executive at his address of record in the Company’s records, or to such other address as
either party may hereafter give the other party notice of in accordance with the provisions hereof.  Notices shall be
deemed given on the sooner of the date actually received or the third business day after deposited in the mail or one business
day after deposited with an overnight delivery service for overnight delivery.

 

(h)           This
Agreement shall be governed by and construed in accordance with the internal laws of the State of Arizona without reference to
principles of conflicts of laws and each of the parties hereto irrevocably consents to the exclusive jurisdiction and venue of
the federal and state courts located in the County of Pima, State of Arizona.

 

(i)            This
Agreement may be executed simultaneously in counterparts, each of which shall be deemed an original, but which together shall constitute
the same instrument. The parties hereto have executed this Agreement as of the first date set forth above.

 

    	 	16	 

     

    

 

(j)            Executive
represents and warrants to the Company that he or she has the full power and authority to enter into this Agreement and to
perform his obligations hereunder and that the execution and delivery of this Agreement and the performance of his obligations
hereunder will not conflict with any agreement to which Executive is a party.

 

(k)           The
Company represents and warrants to Executive that it has the full power and authority to enter into this Agreement and to perform
its obligations hereunder and that the execution and delivery of this Agreement and the performance of its obligations hereunder
will not conflict with any agreement to which the Company is a party.

 

IN WITNESS WHEREOF, Executive and the Company
have caused this Executive Employment Agreement to be executed as of the date first above written.

 

	 	THE COMPANY:
	 	 	 
	 	AUDIOEYE, INC.
	 	 	 
	 	By:	 /s/ Carr Bettis
	 	 	Name:	Carr Bettis
	 	 	Title:	Executive Chairman

 

	 	EXECUTIVE:
	 	 	 
	 	/s/ Sachin Barot
	 	Sachin Barot 

 

    	 	17Exhibit 10.2

 

AudioEye, Inc.

2019 Equity Incentive Plan

 

		1.	Purpose; Eligibility.

 

1.1    General
Purpose. The name of this plan is the AudioEye, Inc. 2019 Equity Incentive Plan. The purposes of the Plan are to (a) enable
AudioEye, Inc., a Delaware corporation, and any Affiliate to attract and retain the types of Employees, Consultants and Directors
who will contribute to the Company’s long range success; (b) provide incentives that align the interests of Employees, Consultants
and Directors with those of the stockholders of the Company; and (c) promote the success of the Company’s business.

 

1.2    Eligible
Award Recipients. The persons eligible to receive Awards are the Employees, Consultants and Directors of the Company and its
Affiliates and such other individuals designated by the Committee who are reasonably expected to become Employees, Consultants
and Directors after the receipt of Awards.

 

1.3    Available
Awards. Awards that may be granted under the Plan include: (a) Incentive Stock Options, (b) Non-Qualified Stock Options, (c)
Stock Appreciation Rights, (d) Restricted Awards, (e) Performance Share Awards, (f) Cash Awards, and (g) Other Equity-Based Awards.

 

		2.	Definitions.

 

“Affiliate”
means a corporation or other entity that, directly or through one or more intermediaries, controls, is controlled by or is under
common control with, the Company.

 

“Applicable
Laws” means the requirements related to or implicated by the administration of the Plan under applicable state corporate
law, United States federal and state securities laws, the Code, any stock exchange or quotation system on which the shares of
Common Stock are listed or quoted, and the applicable laws of any foreign country or jurisdiction where Awards are granted under
the Plan.

 

“Award”
means any right granted under the Plan, including an Incentive Stock Option, a Non-Qualified Stock Option, a Stock Appreciation
Right, a Restricted Award, a Performance Share Award, a Cash Award, or an Other Equity-Based Award.

 

“Award
Agreement” means a written agreement, contract, certificate or other instrument or document evidencing the terms and
conditions of an individual Award granted under the Plan which may, in the discretion of the Company, be transmitted electronically
to any Participant. Each Award Agreement shall be subject to the terms and conditions of the Plan.

 

“Beneficial
Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating
the beneficial ownership of any particular Person, such Person shall be deemed to have beneficial ownership of all securities
that such Person has the right to acquire by conversion or exercise of other securities, whether such right is currently exercisable
or is exercisable only after the passage of time. The terms “Beneficially Owns” and “Beneficially Owned”
have a corresponding meaning.

 

“Board”
means the Board of Directors of the Company, as constituted at any time.

 

“Cash
Award” means an Award denominated in cash that is granted under Section 7.4 of the Plan.

 

“Cause”
with respect to any Participant shall have the meaning specified in the Participant’s Award Agreement. In the absence of
any definition in the Award Agreement, “Cause” shall have the equivalent meaning or the same meaning as “cause”
or “for cause” set forth in any employment, consulting, or other agreement for the performance of services between
the Participant and the Company or an Affiliate or, in the absence of any such agreement or any such definition in such agreement,
such term shall mean (i) the failure by the Participant to perform, in a reasonable manner, his or her duties as assigned by the
Company or an Affiliate, (ii) any violation or breach by the Participant of his or her employment, consulting or other similar
agreement with the Company or an Affiliate, if any, (iii) any violation or breach by the Participant of any non-competition, non-solicitation,
non-disclosure and/or other similar agreement with the Company or an Affiliate, (iv) any act by the Participant of dishonesty
or bad faith with respect to the Company or an Affiliate, (v) use of alcohol, drugs or other similar substances in a manner that
adversely affects the Participant’s work performance, or (vi) the commission by the Participant of any act, misdemeanor,
or crime reflecting unfavorably upon the Participant or the Company or any Affiliate. The good faith determination by the Committee
of whether the Participant’s Continuous Service was terminated by the Company for “Cause” shall be final and
binding for all purposes hereunder.

 

     

     

    

 

“Change
in Control” with respect to any Participant shall have the meaning specified in the Participant’s Award Agreement
or any employment agreement between the Participant and the Company or its Affiliates. In the absence of any such definition,
a “Change in Control” shall mean the occurrence of any of the following:

 

(i)          The
acquisition by any Person of Beneficial Ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more
than eighty percent (80%) of either (A) the value of then outstanding equity securities of the Company (the “Outstanding
Company Stock”) or (B) the combined voting power of the then outstanding voting securities of the Company entitled to
vote generally in the election of directors (the “Outstanding Company Voting Securities”) (the foregoing Beneficial
Ownership hereinafter being referred to as a “Controlling Interest”); provided, however, that the following
acquisitions shall not constitute or result in a Change in Control: (v) any acquisition directly from the Company; (w) any acquisition
by the Company; (x) any acquisition by any Person that as of the Effective Date owns Beneficial Ownership of a Controlling Interest;
(y) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Affiliate; or
(z) any acquisition by any entity pursuant to a transaction which complies with clauses (A), (B) and (C) of subsection (iii) below;
or

 

(ii)         During
any period of two (2) consecutive years (not including any period prior to the Effective Date) individuals who constitute the
Board on the Effective Date (the “Incumbent Board”) cease for any reason to constitute at least a majority
of the Board; provided, however, that any individual becoming a director subsequent to the Effective Date whose election, or nomination
for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising
the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest
with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on
behalf of a Person other than the Board; or

 

(iii)        Consummation
of a reorganization, merger, statutory share exchange or consolidation or similar transaction involving the Company or any of
its Affiliates, a sale or other disposition of all or substantially all of the assets of the Company, or the acquisition of assets
or equity of another entity by the Company or any of its Affiliates (each a “Business Combination”), in each
case, unless, following such Business Combination, (A) all or substantially all of the individuals and entities who were the Beneficial
Owners, respectively, of the Outstanding Company Stock and Outstanding Company Voting Securities immediately prior to such Business
Combination beneficially own, directly or indirectly, more than eighty percent (80%) of the value of the then outstanding equity
securities and the combined voting power of the then outstanding voting securities entitled to vote generally in the election
of members of the board of directors (or comparable governing body of an entity that does not have such a board), as the case
may be, of the entity resulting from such Business Combination (including, without limitation, an entity which as a result of
such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or
more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination of
the Outstanding Company Stock and Outstanding Company Voting Securities, as the case may be, (B) no Person (excluding any employee
benefit plan (or related trust) of the Company or such entity resulting from such Business Combination or any Person that as of
the Effective Date owns Beneficial Ownership of a Controlling Interest) beneficially owns, directly or indirectly, eighty percent
(80%) or more of the value of the then outstanding equity securities of the entity resulting from such Business Combination or
the combined voting power of the then outstanding voting securities of such entity except to the extent that such ownership existed
prior to the Business Combination and (C) at least a majority of the members of the board of directors or other governing body
of the entity resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the
initial agreement, or of the action of the Board, providing for such Business Combination; or

 

(iv)        A
complete liquidation or dissolution of the Company.

 

If required
for compliance with Section 409A of the Code, in no event will a Change in Control be deemed to have occurred if such transaction
is not also a “change in the ownership or effective control of” the Company or “a change in the ownership of
a substantial portion of the assets of” the Company as determined under Treasury Regulation Section 1.409A-3(i)(5) (without
regard to any alternative definition thereunder). The Board may, in its sole discretion and without a Participant’s consent,
amend the definition of “Change in Control” to conform to the definition of “Change in Control” under
Section 409A of the Code, and the regulations thereunder.

 

“Code”
means the Internal Revenue Code of 1986, as it may be amended from time to time. Any reference to a section of the Code shall
be deemed to include a reference to any regulations promulgated thereunder.

 

    	 	2	 

     

    

 

“Committee”
means a committee of one or more members of the Board appointed by the Board to administer the Plan in accordance with Section
3.3 and Section 3.4.

 

“Common
Stock” means the common stock, $0.00001 par value per share, of the Company, or such other securities of the Company
as may be designated by the Committee from time to time in substitution thereof.

 

“Company”
means AudioEye, Inc., a Delaware corporation, and any successor thereto.

 

“Consultant”
means any individual or entity which performs bona fide services to the Company or an Affiliate, other than as an Employee or
Director, and who may be offered securities registerable pursuant to a registration statement on Form S-8 under the Securities
Act.

 

“Continuous
Service” means that the Participant’s service with the Company or an Affiliate, whether as an Employee, Consultant
or Director, is not interrupted or terminated. The Participant’s Continuous Service shall not be deemed to have terminated
merely because of a change in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee,
Consultant or Director or a change in the entity for which the Participant renders such service, provided that there is
no interruption or termination of the Participant’s Continuous Service; provided further that if any Award is subject
to Section 409A of the Code, this sentence shall only be given effect to the extent consistent with Section 409A of the Code.
For example, a change in status from an Employee of the Company to a Director of an Affiliate will not constitute an interruption
of Continuous Service. The Committee or its delegate, in its sole discretion, may determine whether Continuous Service shall be
considered interrupted in the case of any leave of absence approved by that party, including sick leave, military leave or any
other personal or family leave of absence. The Committee or its delegate, in its sole discretion, may determine whether a Company
transaction, such as a sale or spin-off of a division or subsidiary that employs a Participant, shall be deemed to result in a
termination of Continuous Service for purposes of affected Awards, and such decision shall be final, conclusive and binding.

 

“Deferred
Stock Units” has the meaning set forth in Section 7.2 hereof.

 

“Director”
means a member of the Board.

 

“Disability”
means, unless the applicable Award Agreement says otherwise, that the Participant is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment; provided, however, for purposes of determining
the term of an Incentive Stock Option pursuant to Section 6.10 hereof, the term Disability shall have the meaning ascribed
to it under Section 22(e)(3) of the Code. The determination of whether an individual has a Disability shall be determined under
procedures established by the Committee. Except in situations where the Committee is determining Disability for purposes of the
term of an Incentive Stock Option pursuant to Section 6.10 hereof within the meaning of Section 22(e)(3) of the Code, the
Committee may rely on any determination that a Participant is disabled for purposes of benefits under any long-term disability
plan maintained by the Company or any Affiliate in which a Participant participates.

 

“Disqualifying
Disposition” has the meaning set forth in Section 14.12.

 

“Effective
Date” shall mean the date as of which this Plan is adopted by the Board.

 

“Employee”
means any person, including an Officer or Director, employed by the Company or an Affiliate; provided, that, for purposes
of determining eligibility to receive Incentive Stock Options, an Employee shall mean an employee of the Company or a parent or
subsidiary corporation within the meaning of Section 424 of the Code. Mere service as a Director or payment of a director’s
fee by the Company or an Affiliate shall not be sufficient to constitute “employment” by the Company or an Affiliate.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Fair
Market Value” means, as of any date, the value of the Common Stock as determined below. If the Common Stock is listed
on any established stock exchange or a national market system, including without limitation, the New York Stock Exchange or the
NASDAQ Stock Market, the Fair Market Value shall be the closing price of a share of Common Stock (or if no sales were reported
the closing price on the date immediately preceding such date) as quoted on such exchange or system on the day of determination,
as reported in the Wall Street Journal. In the absence of an established market for the Common Stock, the Fair Market Value
shall be determined in good faith by the Committee and such determination shall be conclusive and binding on all persons. Notwithstanding
the foregoing, the Committee may also determine the Fair Market Value upon the average selling price of the Stock during a specified
period that is within thirty (30) days before or thirty (30) days after such date, provided that, with respect to the grant of
an Option or Stock Appreciation Right, the commitment to grant such Award based on such valuation method must be irrevocable before
the beginning of the specified period and otherwise compliant with Section 409A of the Code.

 

“Fiscal
Year” means the Company’s fiscal year.

 

    	 	3	 

     

    

 

“Free
Standing Rights” has the meaning set forth in Section 7.1(a).

 

“Good
Reason” shall, with respect to any Participant, have the meaning specified in the Award Agreement. In the absence of
any definition in the Award Agreement, “Good Reason” shall have the equivalent meaning or the same meaning as “good
reason” or “for good reason” set forth in any employment, consulting or other agreement for the performance
of services between the Participant and the Company or an Affiliate or, in the absence of any such agreement or any such definition
in such agreement, such term shall mean (i) the assignment to the Participant of any duties inconsistent in any material respect
with the Participant’s duties or responsibilities as assigned by the Company or an Affiliate, or any other action by the
Company or an Affiliate which results in a material diminution in such duties or responsibilities, excluding for this purpose
an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the Company or an Affiliate
promptly after receipt of notice thereof given by the Participant; or (ii) any material failure by the Company or an Affiliate
to comply with its obligations to the Participant as agreed upon, other than an isolated, insubstantial and inadvertent failure
not occurring in bad faith and which is remedied by the Company or an Affiliate promptly after receipt of notice thereof given
by the Participant. An event or action will not give the Participant grounds for Good Reason unless (A) the Participant gives
the Company written notice within 60 days after the initial existence of the event or action that the Participant intends to resign
for Good Reason due to such event or action; (B) the event or action is not reasonably cured by the Company within 30 days after
the Company receives written notice from the Participant; and (C) the Participant terminates service within 30 days after the
end of the cure period.

 

“Grant
Date” means the date on which the Committee adopts a resolution, or takes other appropriate action, expressly granting
an Award to a Participant that specifies the key terms and conditions of the Award or, if a later date is set forth in such resolution,
then such date as is set forth in such resolution.

 

“Incentive
Stock Option” means an Option that is designated by the Committee as an incentive stock option within the meaning of
Section 422 of the Code and that meets the requirements set out in the Plan.

 

“Non-Employee
Director” means a Director who is a “non-employee director” within the meaning of Rule 16b-3 and an “independent
director” as defined in the Marketplace Rules of The NASDAQ Stock Market LLC.

 

“Non-Qualified
Stock Option” means an Option that by its terms does not qualify or is not intended to qualify as an Incentive Stock
Option.

 

“Officer”
means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

 

“Option”
means an Incentive Stock Option or a Non-Qualified Stock Option granted pursuant to the Plan.

 

“Optionholder”
means a person to whom an Option is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding
Option.

 

“Option
Exercise Price” means the price at which a share of Common Stock may be purchased upon the exercise of an Option.

 

“Other
Equity-Based Award” means an Award that is not an Option, Stock Appreciation Right, Restricted Stock, Restricted Stock
Unit, or Performance Share Award that is granted under Section 7.4 and is payable by delivery of Common Stock and/or which
is measured by reference to the value of Common Stock.

 

“Participant”
means an eligible person to whom an Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding
Award.

 

“Performance
Goals” means, for a Performance Period, the one or more goals established by the Committee for the Performance Period
based upon business criteria or other performance measures determined by the Committee in its discretion.

 

“Performance
Period” means the one or more periods of time, as the Committee may select, over which the attainment of one or more
Performance Goals will be measured for the purpose of determining a Participant’s right to and the payment of a Performance
Share Award or a Cash Award.

 

“Performance
Share Award” means any Award granted pursuant to Section 7.3 hereof.

 

“Performance
Share” means the grant of a right to receive a number of actual shares of Common Stock or share units based upon the
performance of the Company during a Performance Period, as determined by the Committee.

 

    	 	4	 

     

    

 

“Permitted
Transferee” means a member of the Optionholder’s immediate family (child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law,
or sister-in-law, including adoptive relationships), any person sharing the Optionholder’s household (other than a tenant
or employee), a trust in which these persons have more than 50% of the beneficial interest, a foundation in which these persons
(or the Optionholder) control the management of assets, and any other entity in which these persons (or the Optionholder) own
more than 50% of the voting interests.

 

“Person”
means a person as defined in Section 13(d)(3) of the Exchange Act.

 

“Plan”
means this AudioEye, Inc. 2019 Equity Incentive Plan, as amended and/or amended and restated from time to time.

 

“Related
Rights” has the meaning set forth in Section 7.1(a).

 

“Restricted
Award” means any Award granted pursuant to Section 7.2(a).

 

“Restricted
Period” has the meaning set forth in Section 7.2(a).

 

“Restricted
Stock” has the meaning set forth in Section 7.2(a).

 

“Restricted
Stock Units” has the meaning set forth in Section 7.2(a).

 

“Rule
16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3, as in effect from time to
time.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Stock
Appreciation Right” means the right pursuant to an Award granted under Section 7.1 to receive, upon exercise,
an amount payable in cash or shares equal to the number of shares subject to the Stock Appreciation Right that is being exercised
multiplied by the excess of (a) the Fair Market Value of a share of Common Stock on the date the Award is exercised, over (b)
the exercise price specified in the Stock Appreciation Right Award Agreement.

 

“Stock
for Stock Exchange” has the meaning set forth in Section 6.4.

 

“Substitute
Award” has the meaning set forth in Section 4.7.

 

“Ten
Percent Stockholder” means a person who owns (or is deemed to own pursuant to Section 424(d) of the Code) stock possessing
more than 10% of the total combined voting power of all classes of stock of the Company or of any of its Affiliates.

 

“Total
Share Reserve” has the meaning set forth in Section 4.1.

 

		3.	Administration.

 

3.1    Authority
of Committee. The Plan shall be administered by the Committee or, in the Board’s sole discretion, by the Board. Subject
to the terms of the Plan, the Committee’s charter and Applicable Laws, and in addition to other express powers and authorization
conferred by the Plan, the Committee shall have the authority:

 

(a)         to
construe and interpret the Plan and apply its provisions;

 

(b)         to
promulgate, amend, and rescind rules and regulations relating to the administration of the Plan;

 

(c)         to
authorize any person to execute, on behalf of the Company, any instrument required to carry out the purposes of the Plan;

 

(d)         to
determine when Awards are to be granted under the Plan and the applicable Grant Date;

 

(e)         from
time to time to select, subject to the limitations set forth in this Plan, those eligible Award recipients to whom Awards shall
be granted;

 

(f)          to
determine the number of shares of Common Stock to be made subject to each Award;

 

(g)         to
determine whether each Option is to be an Incentive Stock Option or a Non-Qualified Stock Option;

 

(h)         to
prescribe the terms and conditions of each Award, including, without limitation, the exercise price and medium of payment and
vesting provisions, and to specify the provisions of the Award Agreement relating to such grant;

 

    	 	5	 

     

    

 

(i)          to
determine the target number of Performance Shares to be granted pursuant to a Performance Share Award, the performance measures
that will be used to establish the Performance Goals, the Performance Period(s) and the number of Performance Shares earned by
a Participant;

 

(j)          to
amend any outstanding Awards; provided, however, that if any such amendment impairs a Participant’s rights or increases
a Participant’s obligations under his or her Award or creates or increases a Participant’s federal income tax liability
with respect to an Award, such amendment shall also be subject to the Participant’s consent;

 

(k)         to
determine the duration and purpose of leaves of absences which may be granted to a Participant without constituting termination
of their employment for purposes of the Plan, which periods shall be no shorter than the periods generally applicable to Employees
under the Company’s employment policies;

 

(l)          to
make decisions with respect to outstanding Awards that may become necessary upon a change in corporate control or an event that
triggers anti-dilution adjustments;

 

(m)        to
interpret, administer, reconcile any inconsistency in, correct any defect in and/or supply any omission in the Plan and any instrument
or agreement relating to, or Award granted under, the Plan; and

 

(n)         to
exercise discretion to make any and all other determinations which it determines to be necessary or advisable for the administration
of the Plan.

 

The Committee also may modify the purchase
price or the exercise price of any outstanding Award, provided that if the modification effects a repricing, stockholder
approval shall be required before the repricing is effective.

 

3.2    Committee
Decisions Final. All decisions made by the Committee pursuant to the provisions of the Plan shall be final and binding on
the Company and the Participants, unless such decisions are determined by a court having jurisdiction to be arbitrary and capricious.

 

3.3    Delegation.
The Committee or, if no Committee has been appointed, the Board may delegate administration of the Plan to a committee or committees
of one or more members of the Board, and the term “Committee” shall apply to any person or persons to whom
such authority has been delegated. The Committee shall have the power to delegate to a subcommittee any of the administrative
powers the Committee is authorized to exercise (and references in this Plan to the Board or the Committee shall thereafter be
to the committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as
may be adopted from time to time by the Board. The Board may abolish the Committee at any time and revest in the Board the administration
of the Plan. The members of the Committee shall be appointed by and serve at the pleasure of the Board. From time to time, the
Board may increase or decrease the size of the Committee, add additional members to, remove members (with or without cause) from,
appoint new members in substitution therefor, and fill vacancies, however caused, in the Committee. The Committee shall act pursuant
to a vote of the majority of its members or, in the case of a Committee comprised of only two members, the unanimous consent of
its members, whether present or not, or by the written consent of the majority of its members and minutes shall be kept of all
of its meetings and copies thereof shall be provided to the Board. Subject to the limitations prescribed by the Plan and the Board,
the Committee may establish and follow such rules and regulations for the conduct of its business as it may determine to be advisable.

 

3.4    Committee
Composition. Except as otherwise determined by the Board, the Committee shall consist solely of two or more Non-Employee Directors.
The Board shall have discretion to determine whether or not it intends to comply with the exemption requirements of Rule 16b-3.
However, if the Board intends to satisfy such exemption requirements, with respect to any insider subject to Section 16 of the
Exchange Act, the Committee shall be a compensation committee of the Board that at all times consists solely of two or more Non-Employee
Directors. Nothing herein shall create an inference that an Award is not validly granted under the Plan in the event Awards are
granted under the Plan by a compensation committee of the Board that does not at all times consist solely of two or more Non-Employee
Directors.

 

    	 	6	 

     

    

 

3.5    Indemnification.
In addition to such other rights of indemnification as they may have as Directors or members of the Committee, and to the extent
allowed by Applicable Laws, the Committee shall be indemnified by the Company against the reasonable expenses, including attorney’s
fees, actually incurred in connection with any action, suit or proceeding or in connection with any appeal therein, to which the
Committee may be party by reason of any action taken or failure to act under or in connection with the Plan or any Award granted
under the Plan, and against all amounts paid by the Committee in settlement thereof (provided, however, that the settlement
has been approved by the Company, which approval shall not be unreasonably withheld) or paid by the Committee in satisfaction
of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action,
suit or proceeding that such Committee did not act in good faith and in a manner which such person reasonably believed to be in
the best interests of the Company, or in the case of a criminal proceeding, had no reason to believe that the conduct complained
of was unlawful; provided, however, that within 60 days after the institution of any such action, suit or proceeding, such
Committee shall, in writing, offer the Company the opportunity at its own expense to handle and defend such action, suit or proceeding.

 

		4.	Shares Subject
                                         to the Plan.

 

4.1    Subject
to adjustment in accordance with Section 11, no more than 1,000,000 shares of Common Stock shall be available for the grant
of Awards under the Plan (the “Total Share Reserve”). Any shares of Common Stock granted in connection with
Options and Stock Appreciation Rights shall be counted against this limit as one share for every one Option or Stock Appreciation
Right awarded. Any shares of Common Stock granted in connection with Awards other than Options and Stock Appreciation Rights shall
be counted against this limit as two shares of Common Stock for every one share of Common Stock granted in connection with such
Award. During the terms of the Awards, the Company shall keep available at all times the number of shares of Common Stock required
to satisfy such Awards.

 

4.2    Shares
of Common Stock available for distribution under the Plan may consist, in whole or in part, of authorized and unissued shares,
treasury shares or shares reacquired by the Company in any manner.

 

4.3    Subject
to adjustment in accordance with Section 11, no more than 1,000,000 shares of Common Stock may be issued in the aggregate
pursuant to the exercise of Incentive Stock Options (the “ISO Limit”).

 

4.4    The
maximum number of shares of Common Stock subject to Awards granted during a single Fiscal Year to any Director who is not an Employee
or Consultant during the Fiscal Year, together with any cash fees paid to such Director during the Fiscal Year, shall not exceed
a total value of $400,000 (calculating the value of any Awards based on the grant date fair value for financial reporting purposes).

 

4.5    The
maximum number of shares of Common Stock subject to Awards granted during a single Fiscal Year to any Employee or Consultant who
is not a Director during the Fiscal Year shall not exceed a total value of $5,000,000 (calculating the value of any Awards based
on the grant date fair value for financial reporting purposes).

 

4.6    Any
shares of Common Stock subject to an Award that expires or is canceled, forfeited, or terminated without issuance of the full
number of shares of Common Stock to which the Award related will again be available for issuance under the Plan. Any shares of
Common Stock that again become available for future grants pursuant to this Section 4.6 shall
be added back as one (1) share if such shares were subject to Options or Stock Appreciation Rights and as two (2) shares if such
shares were subject to other Awards. Notwithstanding anything to the contrary contained herein: shares subject to an Award under
the Plan shall not again be made available for issuance or delivery under the Plan if such shares are (a) shares tendered in payment
of an Option, (b) shares delivered or withheld by the Company to satisfy any tax withholding obligation, or (c) shares covered
by a stock-settled Stock Appreciation Right or other Awards that were not issued upon the settlement of the Award.

 

4.7    Awards
may, in the sole discretion of the Committee, be granted under the Plan in assumption of, or in substitution for, outstanding
awards previously granted by an entity acquired by the Company or with which the Company combines (“Substitute Awards”).
Substitute Awards shall not be counted against the Total Share Reserve; provided, that, Substitute Awards issued in connection
with the assumption of, or in substitution for, outstanding options intended to qualify as Incentive Stock Options shall be counted
against the ISO limit. Subject to applicable stock exchange requirements, available shares under a stockholder-approved plan of
an entity directly or indirectly acquired by the Company or with which the Company combines (as appropriately adjusted to reflect
such acquisition or transaction) may be used for Awards under the Plan and shall not count toward the Total Share Limit.

 

4.8    Notwithstanding
anything to the contrary in the Plan, no Award may vest, in the ordinary course, prior to the first anniversary of the date of
grant of the Award. However, up to 5% of the Total Share Reserve may be subject to Awards that do not meet such vesting requirements.
The minimum vesting criteria set forth in this Section 4.8 shall
not apply to Substitute Awards described in Section 4.7.

 

    	 	7	 

     

    

 

4.9    No
dividends will be paid to a Participant with respect to any shares subject to an Award prior to the vesting of such Award. For
the avoidance of doubt, as described in Section 7.2(b), any dividends
that may be attributable to any particular share of Restricted Stock or any particular Restricted Stock Unit or Deferred Stock
Unit shall only be distributed to a Participant upon the release of restrictions on such share of Restricted Stock or the settlement
of such Restricted Stock Unit or Deferred Stock Unit, as applicable, and a Participant shall have no right to such dividends if
such Award is forfeited.

 

		5.	Eligibility.

 

5.1    Eligibility
for Specific Awards. Incentive Stock Options may be granted only to Employees. Awards other than Incentive Stock Options may
be granted to Employees, Consultants and Directors and those individuals whom the Committee determines are reasonably expected
to become Employees, Consultants and Directors following the Grant Date.

 

5.2    Ten
Percent Stockholders. A Ten Percent Stockholder shall not be granted an Incentive Stock Option unless the Option Exercise
Price is at least 110% of the Fair Market Value of the Common Stock on the Grant Date and the Option is not exercisable after
the expiration of five years from the Grant Date.

 

6.     Option
Provisions. Each Option granted under the Plan shall be evidenced by an Award Agreement. Each Option so granted shall be subject
to the conditions set forth in this Section 6, and to such other conditions not inconsistent with the Plan as may be reflected
in the applicable Award Agreement. All Options shall be separately designated Incentive Stock Options or Non-Qualified Stock Options
at the time of grant, and, if certificates are issued, a separate certificate or certificates will be issued for shares of Common
Stock purchased on exercise of each type of Option. Notwithstanding the foregoing, the Company shall have no liability to any
Participant or any other person if an Option designated as an Incentive Stock Option fails to qualify as such at any time or if
an Option is determined to constitute “nonqualified deferred compensation” within the meaning of Section 409A of the
Code and the terms of such Option do not satisfy the requirements of Section 409A of the Code. The provisions of separate Options
need not be identical, but each Option shall include (through incorporation of provisions hereof by reference in the Option or
otherwise) the substance of each of the following provisions:

 

6.1    Term.
Subject to the provisions of Section 5.2 regarding Ten Percent Stockholders, no Incentive Stock Option shall be exercisable
after the expiration of 10 years from the Grant Date. The term of a Non-Qualified Stock Option granted under the Plan shall be
determined by the Committee; provided, however, no Non-Qualified Stock Option shall be exercisable after the expiration
of 10 years from the Grant Date.

 

6.2    Exercise
Price of an Incentive Stock Option. Subject to the provisions of Section 5.2 regarding Ten Percent Stockholders, the
Option Exercise Price of each Incentive Stock Option shall be not less than 100% of the Fair Market Value of the Common Stock
subject to the Option on the Grant Date. Notwithstanding the foregoing, an Incentive Stock Option may be granted with an Option
Exercise Price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution
for another option in a manner satisfying the provisions of Section 424(a) of the Code.

 

6.3    Exercise
Price of a Non-Qualified Stock Option. The Option Exercise Price of each Non-Qualified Stock Option shall be not less than
100% of the Fair Market Value of the Common Stock subject to the Option on the Grant Date. Notwithstanding the foregoing, a Non-Qualified
Stock Option may be granted with an Option Exercise Price lower than that set forth in the preceding sentence if such Option is
granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of Section 409A of
the Code.

 

    	 	8	 

     

    

 

6.4    Consideration.
The Option Exercise Price of Common Stock acquired pursuant to an Option shall be paid, to the extent permitted by applicable
statutes and regulations, either (a) in cash or by certified or bank check at the time the Option is exercised or (b) in the discretion
of the Committee, upon such terms as the Committee shall approve, the Option Exercise Price may be paid: (i) by delivery to the
Company of other Common Stock, duly endorsed for transfer to the Company, with a Fair Market Value on the date of delivery equal
to the Option Exercise Price (or portion thereof) due for the number of shares being acquired, or by means of attestation whereby
the Participant identifies for delivery specific shares of Common Stock that have an aggregate Fair Market Value on the date of
attestation equal to the Option Exercise Price (or portion thereof) and receives a number of shares of Common Stock equal to the
difference between the number of shares thereby purchased and the number of identified attestation shares of Common Stock (a “Stock
for Stock Exchange”); (ii) if the Common Stock is listed on any established stock exchange or a national market system,
through the delivery of irrevocable instructions to a broker to deliver promptly to the Company an amount equal to the exercise
price (i.e., by means of a “cashless” exercise procedure); (iii) by reduction in the number of shares of Common Stock
otherwise deliverable upon exercise of such Option with a Fair Market Value equal to the aggregate Option Exercise Price at the
time of exercise (i.e., by means of a “net exercise”); (iv) by any combination of the foregoing methods; or (v) in
any other form of legal consideration that may be acceptable to the Committee. Unless otherwise specifically provided in the Option,
the exercise price of Common Stock acquired pursuant to an Option that is paid by delivery (or attestation) to the Company of
other Common Stock acquired, directly or indirectly from the Company, shall be paid only by shares of the Common Stock of the
Company that have been held for more than six months (or such longer or shorter period of time required to avoid a charge to earnings
for financial accounting purposes). Notwithstanding the foregoing, during any period for which the Common Stock is publicly traded
(i.e., the Common Stock is listed on any established stock exchange or a national market system) an exercise by a Director or
Officer that involves or may involve a direct or indirect extension of credit or arrangement of an extension of credit by the
Company, directly or indirectly, in violation of Section 402(a) of the Sarbanes-Oxley Act of 2002 shall be prohibited with respect
to any Award under this Plan.

 

6.5    Transferability
of an Incentive Stock Option. An Incentive Stock Option shall not be transferable except by will or by the laws of descent
and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder. Notwithstanding the
foregoing, the Optionholder may, by delivering written notice to the Company, in a form satisfactory to the Company, designate
a third party who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise the Option.

 

6.6    Transferability
of a Non-Qualified Stock Option. A Non-Qualified Stock Option may, in the sole discretion of the Committee, be transferable
to a Permitted Transferee, upon written approval by the Committee to the extent provided in the Award Agreement. If the Non-Qualified
Stock Option does not provide for transferability, then the Non-Qualified Stock Option shall not be transferable except by will
or by the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder.
Notwithstanding the foregoing, the Optionholder may, by delivering written notice to the Company, in a form satisfactory to the
Company, designate a third party who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise
the Option.

 

6.7    Vesting
of Options. Each Option may, but need not, vest and therefore become exercisable in periodic installments that may, but need
not, be equal. The Option may be subject to such other terms and conditions on the time or times when it may be exercised (which
may be based on performance or other criteria) as the Committee may deem appropriate. The vesting provisions of individual Options
may vary. No Option may be exercised for a fraction of a share of Common Stock.

 

6.8    Termination
of Continuous Service. Unless otherwise provided in an Award Agreement or in an employment agreement the terms of which have
been approved by the Committee, in the event an Optionholder’s Continuous Service terminates (other than upon the Optionholder’s
death or Disability), the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise
such Option as of the date of termination) but only within such period of time ending on the earlier of (a) the date three months
following the termination of the Optionholder’s Continuous Service or (b) the expiration of the term of the Option as set
forth in the Award Agreement; provided that, if the termination of Continuous Service is by the Company for Cause, all
outstanding Options (whether or not vested) shall immediately terminate and cease to be exercisable. If, after termination, the
Optionholder does not exercise his or her Option within the time specified in the Award Agreement, the Option shall terminate.

 

6.9    Extension
of Termination Date. An Optionholder’s Award Agreement may also provide that if the exercise of the Option following
the termination of the Optionholder’s Continuous Service for any reason would be prohibited at any time because the issuance
of shares of Common Stock would violate the registration requirements under the Securities Act or any other state or federal securities
law or the rules of any securities exchange or interdealer quotation system, then the Option shall terminate on the earlier of
(a) the expiration of the term of the Option in accordance with Section 6.1 or (b) the expiration of a period after termination
of the Participant’s Continuous Service that is three months after the end of the period during which the exercise of the
Option would be in violation of such registration or other securities law requirements.

 

    	 	9	 

     

    

 

 

6.10  Disability
of Optionholder. Unless otherwise provided in an Award Agreement, in the event that an Optionholder’s Continuous Service
terminates as a result of the Optionholder’s Disability, the Optionholder may exercise his or her Option (to the extent
that the Optionholder was entitled to exercise such Option as of the date of termination), but only within such period of time
ending on the earlier of (a) the date that is 12 months following such termination or (b) the expiration of the term of the Option
as set forth in the Award Agreement. If, after termination, the Optionholder does not exercise his or her Option within the time
specified herein or in the Award Agreement, the Option shall terminate.

 

6.11  Death
of Optionholder. Unless otherwise provided in an Award Agreement, in the event an Optionholder’s Continuous Service
terminates as a result of the Optionholder’s death, then the Option may be exercised (to the extent the Optionholder was
entitled to exercise such Option as of the date of death) by the Optionholder’s estate, by a person who acquired the right
to exercise the Option by bequest or inheritance or by a person designated to exercise the Option upon the Optionholder’s
death, but only within the period ending on the earlier of (a) the date 12 months following the date of death or (b) the expiration
of the term of such Option as set forth in the Award Agreement. If, after the Optionholder’s death, the Option is not exercised
within the time specified herein or in the Award Agreement, the Option shall terminate.

 

6.12  Incentive
Stock Option $100,000 Limitation. To the extent that the aggregate Fair Market Value (determined at the time of grant) of
Common Stock with respect to which Incentive Stock Options are exercisable for the first time by any Optionholder during any calendar
year (under all plans of the Company and its Affiliates) exceeds $100,000, the Options or portions thereof which exceed such limit
(according to the order in which they were granted) shall be treated as Non-Qualified Stock Options.

 

6.13  Reload
Options. No Option may include provisions that "reload" the Option upon exercise.

 

		7.	Provisions of Awards Other Than Options.

 

7.1   Stock
Appreciation Rights.

 

(a)          General.
Each Stock Appreciation Right granted under the Plan shall be evidenced by an Award Agreement. Each Stock Appreciation Right
so granted shall be subject to the conditions set forth in this Section 7.1, and to such other conditions not inconsistent
with the Plan as may be reflected in the applicable Award Agreement. Stock Appreciation Rights may be granted alone (“Free
Standing Rights”) or in tandem with an Option granted under the Plan (“Related Rights”).

 

(b)         Grant
Requirements. Any Related Right that relates to a Non-Qualified Stock Option may be granted at the same time the Option is
granted or at any time thereafter but before the exercise or expiration of the Option. Any Related Right that relates to an Incentive
Stock Option must be granted at the same time the Incentive Stock Option is granted.

 

(c)          Term
of Stock Appreciation Rights. The term of a Stock Appreciation Right granted under the Plan shall be determined by the Committee;
provided, however, no Stock Appreciation Right shall be exercisable later than the tenth anniversary of the Grant Date.

 

(d)          Vesting
of Stock Appreciation Rights. Each Stock Appreciation Right may, but need not, vest and therefore become exercisable in periodic
installments that may, but need not, be equal. The Stock Appreciation Right may be subject to such other terms and conditions
on the time or times when it may be exercised as the Committee may deem appropriate. The vesting provisions of individual Stock
Appreciation Rights may vary. No Stock Appreciation Right may be exercised for a fraction of a share of Common Stock.

 

(e)          Exercise
and Payment. Upon exercise of a Stock Appreciation Right, the holder shall be entitled to receive from the Company an amount
equal to the number of shares of Common Stock subject to the Stock Appreciation Right that is being exercised multiplied by the
excess of (i) the Fair Market Value of a share of Common Stock on the date the Award is exercised, over (ii) the exercise price
specified in the Stock Appreciation Right or related Option. Payment with respect to the exercise of a Stock Appreciation Right
shall be made on the date of exercise. Payment shall be made in the form of shares of Common Stock (with or without restrictions
as to substantial risk of forfeiture and transferability, as determined by the Committee in its sole discretion), cash or a combination
thereof, as determined by the Committee.

 

    	 	10	 

     

    

 

(f)          Exercise
Price. The exercise price of a Free Standing Right shall be determined by the Committee. A Related Right granted simultaneously
with or subsequent to the grant of an Option and in conjunction therewith or in the alternative thereto shall have the same exercise
price as the related Option, shall be transferable only upon the same terms and conditions as the related Option, and shall be
exercisable only to the same extent as the related Option; provided, however, that a Stock Appreciation Right, by its terms,
shall be exercisable only when the Fair Market Value per share of Common Stock subject to the Stock Appreciation Right and related
Option exceeds the exercise price per share thereof and no Stock Appreciation Rights may be granted in tandem with an Option unless
the Committee determines that the requirements of Section 7.1(b) are satisfied.

 

(g)          Reduction
in the Underlying Option Shares. Upon any exercise of a Related Right, the number of shares of Common Stock for which any
related Option shall be exercisable shall be reduced by the number of shares for which the Stock Appreciation Right has been exercised.
The number of shares of Common Stock for which a Related Right shall be exercisable shall be reduced upon any exercise of any
related Option by the number of shares of Common Stock for which such Option has been exercised.

 

7.2   Restricted
Awards.

 

(a)          General.
A Restricted Award is an Award of actual shares of Common Stock (“Restricted Stock”) or hypothetical Common
Stock units (“Restricted Stock Units”) having a value equal to the Fair Market Value of an identical number
of shares of Common Stock, which may, but need not, provide that such Restricted Award may not be sold, assigned, transferred
or otherwise disposed of, pledged or hypothecated as collateral for a loan or as security for the performance of any obligation
or for any other purpose for such period (the “Restricted Period”) as the Committee shall determine. Each Restricted
Award granted under the Plan shall be evidenced by an Award Agreement. Each Restricted Award so granted shall be subject to the
conditions set forth in this Section 7.2 and to such other conditions not inconsistent with the Plan as may be reflected
in the applicable Award Agreement.

 

(b)          Restricted
Stock and Restricted Stock Units.

 

(i)  Each
Participant granted Restricted Stock shall execute and deliver to the Company an Award Agreement with respect to the Restricted
Stock setting forth the restrictions and other terms and conditions applicable to such Restricted Stock. If the Committee determines
that the Restricted Stock shall be held by the Company or in escrow rather than delivered to the Participant pending the release
of the applicable restrictions, the Committee may require the Participant to additionally execute and deliver to the Company (A)
an escrow agreement satisfactory to the Committee, if applicable and (B) the appropriate blank stock power with respect to the
Restricted Stock covered by such agreement. If a Participant fails to execute an agreement evidencing an Award of Restricted Stock
and, if applicable, an escrow agreement and stock power, the Award shall be null and void. Subject to the restrictions set forth
in the Award, the Participant generally shall have the rights and privileges of a stockholder as to such Restricted Stock, including
the right to vote such Restricted Stock and the right to receive dividends; provided that, any cash dividends and stock
dividends with respect to the Restricted Stock shall be withheld by the Company for the Participant’s account, and interest
may be credited on the amount of the cash dividends withheld at a rate and subject to such terms as determined by the Committee.
The cash dividends or stock dividends so withheld by the Committee and attributable to any particular share of Restricted Stock
(and earnings thereon, if applicable) shall be distributed to the Participant in cash or, at the discretion of the Committee,
in shares of Common Stock having a Fair Market Value equal to the amount of such dividends, if applicable, upon the release of
restrictions on such share and, if such share is forfeited, the Participant shall have no right to such dividends.

 

    	 	11	 

     

    

 

(ii)  The
terms and conditions of a grant of Restricted Stock Units shall be reflected in an Award Agreement. No shares of Common Stock
shall be issued at the time a Restricted Stock Unit is granted, and the Company will not be required to set aside funds for the
payment of any such Award. A Participant shall have no voting rights with respect to any Restricted Stock Units granted hereunder.
The Committee may also grant Restricted Stock Units with a deferral feature, whereby settlement is deferred beyond the vesting
date until the occurrence of a future payment date or event set forth in an Award Agreement (“Deferred Stock Units”).
At the discretion of the Committee, each Restricted Stock Unit or Deferred Stock Unit (representing one share of Common Stock)
may be credited with an amount equal to the cash and stock dividends paid by the Company in respect of one share of Common Stock
(“Dividend Equivalents”). Dividend Equivalents shall be withheld by the Company and credited to the Participant’s
account, and interest may be credited on the amount of cash Dividend Equivalents credited to the Participant’s account at
a rate and subject to such terms as determined by the Committee. Dividend Equivalents credited to a Participant’s account
and attributable to any particular Restricted Stock Unit or Deferred Stock Unit (and earnings thereon, if applicable) shall be
distributed in cash or, at the discretion of the Committee, in shares of Common Stock having a Fair Market Value equal to the
amount of such Dividend Equivalents and earnings, if applicable, to the Participant upon settlement of such Restricted Stock Unit
or Deferred Stock Unit and, if such Restricted Stock Unit or Deferred Stock Unit is forfeited, the Participant shall have no right
to such Dividend Equivalents.

 

(c)          Restrictions.

 

(i)  Restricted
Stock awarded to a Participant shall be subject to the following restrictions until the expiration of the Restricted Period, and
to such other terms and conditions as may be set forth in the applicable Award Agreement: (A) if an escrow arrangement is used,
the Participant shall not be entitled to delivery of the stock certificate; (B) the shares shall be subject to the restrictions
on transferability set forth in the Award Agreement; (C) the shares shall be subject to forfeiture to the extent provided in the
applicable Award Agreement; and (D) to the extent such shares are forfeited, the stock certificates shall be returned to the Company,
and all rights of the Participant to such shares and as a stockholder with respect to such shares shall terminate without further
obligation on the part of the Company.

 

(ii)  Restricted
Stock Units and Deferred Stock Units awarded to any Participant shall be subject to (A) forfeiture until the expiration of the
Restricted Period, and satisfaction of any applicable Performance Goals during such period, to the extent provided in the applicable
Award Agreement, and to the extent such Restricted Stock Units or Deferred Stock Units are forfeited, all rights of the Participant
to such Restricted Stock Units or Deferred Stock Units shall terminate without further obligation on the part of the Company and
(B) such other terms and conditions as may be set forth in the applicable Award Agreement.

 

(d)          Restricted
Period. With respect to Restricted Awards, the Restricted Period shall commence on the Grant Date and end at the time or times
set forth on a schedule established by the Committee in the applicable Award Agreement. No Restricted Award may be granted or
settled for a fraction of a share of Common Stock.

 

(e)          Delivery
of Restricted Stock and Settlement of Restricted Stock Units. Upon the expiration of the Restricted Period with respect to
any shares of Restricted Stock, the restrictions set forth in Section 7.2(c) and the applicable Award Agreement shall be
of no further force or effect with respect to such shares, except as set forth in the applicable Award Agreement. If an escrow
arrangement is used, upon such expiration, the Company shall deliver to the Participant, or his or her beneficiary, without charge,
the stock certificate evidencing the shares of Restricted Stock which have not then been forfeited and with respect to which the
Restricted Period has expired (to the nearest full share) and any cash dividends or stock dividends credited to the Participant’s
account with respect to such Restricted Stock and the interest thereon, if any. Upon the expiration of the Restricted Period with
respect to any outstanding Restricted Stock Units, or at the expiration of the deferral period with respect to any outstanding
Deferred Stock Units, the Company shall deliver to the Participant, or his or her beneficiary, without charge, one share of Common
Stock for each such outstanding vested Restricted Stock Unit or Deferred Stock Unit (“Vested Unit”) and cash
equal to any Dividend Equivalents credited with respect to each such Vested Unit in accordance with Section 7.2(b)(ii)
hereof and the interest thereon or, at the discretion of the Committee, in shares of Common Stock having a Fair Market Value equal
to such Dividend Equivalents and the interest thereon, if any; provided, however, that, if explicitly provided in the applicable
Award Agreement, the Committee may, in its sole discretion, elect to pay cash or part cash and part Common Stock in lieu of delivering
only shares of Common Stock for Vested Units. If a cash payment is made in lieu of delivering shares of Common Stock, the amount
of such payment shall be equal to the Fair Market Value of the Common Stock as of the date on which the Restricted Period lapsed
in the case of Restricted Stock Units, or the delivery date in the case of Deferred Stock Units, with respect to each Vested Unit.

 

(f)          Stock
Restrictions. Each certificate representing Restricted Stock awarded under the Plan shall bear a legend in such form as the
Company deems appropriate.

 

    	 	12	 

     

    

 

7.3   Performance
Share Awards.

 

(a)          Grant
of Performance Share Awards. Each Performance Share Award granted under the Plan shall be evidenced by an Award Agreement.
Each Performance Share Award so granted shall be subject to the conditions set forth in this Section 7.3, and to such other
conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement. The Committee shall have the
discretion to determine: (i) the number of shares of Common Stock or stock-denominated units subject to a Performance Share Award
granted to any Participant; (ii) the Performance Period applicable to any Award; (iii) the conditions that must be satisfied for
a Participant to earn an Award; and (iv) the other terms, conditions and restrictions of the Award.

 

(b)          Earning
Performance Share Awards. The number of Performance Shares earned by a Participant will depend on the extent to which the
performance goals established by the Committee are attained within the applicable Performance Period, as determined by the Committee.

 

7.4   Other
Equity-Based Awards and Cash Awards. The Committee may grant Other Equity-Based Awards, either alone or in tandem with other
Awards, in such amounts and subject to such conditions as the Committee shall determine in its sole discretion. Each Equity-Based
Award shall be evidenced by an Award Agreement and shall be subject to such conditions, not inconsistent with the Plan, as may
be reflected in the applicable Award Agreement. The Committee may grant Cash Awards in such amounts and subject to such Performance
Goals, other vesting conditions, and such other terms as the Committee determines in its discretion. Cash Awards shall be evidenced
in such form as the Committee may determine.

 

8.     Securities
Law Compliance. Each Award Agreement shall provide that no shares of Common Stock shall be purchased or sold thereunder unless
and until (a) any then applicable requirements of state or federal laws and regulatory agencies have been fully complied with
to the satisfaction of the Company and its counsel and (b) if required to do so by the Company, the Participant has executed and
delivered to the Company a letter of investment intent in such form and containing such provisions as the Committee may require.
The Company shall use reasonable efforts to seek to obtain from each regulatory commission or agency having jurisdiction over
the Plan such authority as may be required to grant Awards and to issue and sell shares of Common Stock upon exercise of the Awards;
provided, however, that this undertaking shall not require the Company to register under the Securities Act the Plan, any
Award or any Common Stock issued or issuable pursuant to any such Award. If, after reasonable efforts, the Company is unable to
obtain from any such regulatory commission or agency the authority which counsel for the Company deems necessary for the lawful
issuance and sale of Common Stock under the Plan, the Company shall be relieved from any liability for failure to issue and sell
Common Stock upon exercise of such Awards unless and until such authority is obtained.

 

9.     Use
of Proceeds from Stock. Proceeds from the sale of Common Stock pursuant to Awards, or upon exercise thereof, shall constitute
general funds of the Company.

 

10.   Miscellaneous.

 

10.1  Exercisability
and Vesting upon Death or Disability. Subject to Section 4.8, the
Committee shall have the power to accelerate the time at which an Award may first be exercised or the time during which an Award
or any part thereof will vest on a Participant’s termination of employment or service due to death or Disability, notwithstanding
the provisions in the Award stating the time at which it may first be exercised or the time during which it will vest.

 

10.3  Stockholder
Rights. Except as provided in the Plan or an Award Agreement, no Participant shall be deemed to be the holder of, or to have
any of the rights of a holder with respect to, any shares of Common Stock subject to such Award unless and until such Participant
has satisfied all requirements for exercise of the Award pursuant to its terms and no adjustment shall be made for dividends (ordinary
or extraordinary, whether in cash, securities or other property) or distributions of other rights for which the record date is
prior to the date such Common Stock certificate is issued, except as provided in Section 11 hereof.

 

10.4  No
Employment or Other Service Rights. Nothing in the Plan or any instrument executed or Award granted pursuant thereto shall
confer upon any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the
Award was granted or shall affect the right of the Company or an Affiliate to terminate (a) the employment of an Employee with
or without notice and with or without Cause or (b) the service of a Director pursuant to the Bylaws of the Company or an Affiliate,
and any applicable provisions of the corporate law of the state in which the Company or the Affiliate is incorporated, as the
case may be.

 

    	 	13	 

     

    

 

10.5  Transfer;
Approved Leave of Absence. For purposes of the Plan, no termination of employment by an Employee shall be deemed to result
from either (a) a transfer of employment to the Company from an Affiliate or from the Company to an Affiliate, or from one Affiliate
to another, or (b) an approved leave of absence for military service or sickness, or for any other purpose approved by the Company,
if the Employee’s right to reemployment is guaranteed either by a statute or by contract or under the policy pursuant to
which the leave of absence was granted or if the Committee otherwise so provides in writing, in either case, except to the extent
inconsistent with Section 409A of the Code if the applicable Award is subject thereto.

 

10.6  Withholding
Obligations. To the extent provided by the terms of an Award Agreement and subject to the discretion of the Committee, the
Participant may satisfy any federal, state or local tax withholding obligation relating to the exercise or acquisition of Common
Stock under an Award by any of the following means (in addition to the Company’s right to withhold from any compensation
paid to the Participant by the Company) or by a combination of such means: (a) tendering a cash payment; (b) authorizing the Company
to withhold shares of Common Stock from the shares of Common Stock otherwise issuable to the Participant as a result of the exercise
or acquisition of Common Stock under the Award, provided, however, that no shares of Common Stock are withheld for such
purpose with a value exceeding the maximum amount of tax required to be withheld by law; (c) delivering to the Company previously
owned and unencumbered shares of Common Stock of the Company; or (d) if the Common Stock is listed on any established stock exchange
or a national market system, through the delivery of irrevocable instructions to a broker to deliver promptly to the Company an
amount equal to the tax required to be withheld by law (i.e., by means of a “cashless” exercise procedure).

 

11.   Adjustments
Upon Changes in Stock. In the event of changes in the outstanding Common Stock or in the capital structure of the Company
by reason of any stock or extraordinary cash dividend, stock split, reverse stock split, an extraordinary corporate transaction
such as any recapitalization, reorganization, merger, consolidation, combination, exchange, or other relevant change in capitalization
occurring after the Grant Date of any Award, Awards granted under the Plan and any Award Agreements, the exercise price of Options
and Stock Appreciation Rights, the Performance Goals to which Performance Share Awards and Cash Awards are subject, the maximum
number of shares of Common Stock subject to all Awards stated in Section 4 will be equitably adjusted or substituted, as
to the number, price or kind of a share of Common Stock or other consideration subject to such Awards to the extent necessary
to preserve the economic intent of such Award. In the case of adjustments made pursuant to this Section 11, unless the
Committee specifically determines that such adjustment is in the best interests of the Company or its Affiliates, the Committee
shall, in the case of Incentive Stock Options, ensure that any adjustments under this Section 11 will not constitute a
modification, extension or renewal of the Incentive Stock Options within the meaning of Section 424(h)(3) of the Code and
in the case of Non-Qualified Stock Options, ensure that any adjustments under this Section 11 will not constitute a modification
of such Non-Qualified Stock Options within the meaning of Section 409A of the Code. Any adjustments made under this Section
11 shall be made in a manner which does not adversely affect the exemption provided pursuant to Rule 16b-3 under the Exchange
Act. The Company shall give each Participant notice of an adjustment hereunder and, upon notice, such adjustment shall be conclusive
and binding for all purposes.

 

12.   Effect
of Change in Control.

 

12.1  Notwithstanding
any provision of the Plan to the contrary:

 

(a)   
In the event of a Participant’s termination of Continuous Service without Cause or for Good Reason during the 12-month period
following a Change in Control, all outstanding Options and Stock Appreciation Rights shall become immediately exercisable with
respect to 100% of the shares subject to such Options or Stock Appreciation Rights, and/or the Restricted Period shall expire
immediately with respect to 100% of the outstanding shares of Restricted Stock or Restricted Stock Units as of the date of the
Participant’s termination of Continuous Service.

 

(b)    With
respect to Performance Share Awards and Cash Awards, in the event of a Change in Control, all incomplete Performance Periods in
respect of such Awards in effect on the date the Change in Control occurs shall end on the date of such change and the Committee
shall (i) determine the extent to which Performance Goals with respect to each such Performance Period have been met based upon
such audited or unaudited financial information then available as it deems relevant and (ii) cause to be paid to the applicable
Participant partial or full Awards with respect to Performance Goals for each such Performance Period based upon the Committee’s
determination of the degree of attainment of Performance Goals or, if not determinable, assuming that the applicable “target”
levels of performance have been attained, or on such other basis determined by the Committee.

 

    	 	14	 

     

    

 

To the extent
practicable, any actions taken by the Committee under the immediately preceding clauses (a) and (b) shall occur in a manner and
at a time which allows affected Participants the ability to participate in the Change in Control with respect to the shares of
Common Stock subject to their Awards.

 

12.2  In
the event of a Change in Control, the Committee may cancel any outstanding Awards and pay to the holders thereof, in cash or stock,
or any combination thereof, the value of such Awards based upon the price per share of Common Stock received or to be received
by other stockholders of the Company in the event. In the case of any Option or Stock Appreciation Right with an exercise price
that equals or exceeds the price paid for a share of Common Stock in connection with the Change in Control, the Committee may
cancel the Option or Stock Appreciation Right without the payment of consideration therefor.

 

12.3  The
obligations of the Company under the Plan shall be binding upon any successor corporation or organization resulting from the merger,
consolidation or other reorganization of the Company, or upon any successor corporation or organization succeeding to all or substantially
all of the assets and business of the Company and its Affiliates, taken as a whole.

 

		13.	Amendment of the Plan and Awards.

 

13.1 Amendment
of Plan. The Board at any time, and from time to time, may amend or terminate the Plan. However, except as provided in Section
11 relating to adjustments upon changes in Common Stock and Section 13.3, no amendment shall be effective unless approved
by the stockholders of the Company to the extent stockholder approval is necessary to satisfy any Applicable Laws. At the time
of such amendment, the Board shall determine, upon advice from counsel, whether such amendment will be contingent on stockholder
approval.

 

13.2  Stockholder
Approval. The Board may, in its sole discretion, submit any other amendment to the Plan for stockholder approval.

 

13.3  Contemplated
Amendments. It is expressly contemplated that the Board may amend the Plan in any respect the Board deems necessary or advisable
to provide eligible Employees, Consultants and Directors with the maximum benefits provided or to be provided under the provisions
of the Code and the regulations promulgated thereunder relating to Incentive Stock Options or to the nonqualified deferred compensation
provisions of Section 409A of the Code and/or to bring the Plan and/or Awards granted under it into compliance therewith.

 

13.4  No
Impairment of Rights. Rights under any Award granted before amendment of the Plan shall not be impaired by any amendment of
the Plan unless (a) the Company requests the consent of the Participant and (b) the Participant consents in writing.

 

13.5  Amendment
of Awards. The Committee at any time, and from time to time, may amend the terms of any one or more Awards; provided, however,
that the Committee may not affect any amendment which would otherwise constitute an impairment of the rights under any Award unless
(a) the Company requests the consent of the Participant and (b) the Participant consents in writing.

 

14.         General
Provisions.

 

14.1  Forfeiture
Events. The Committee may specify in an Award Agreement that the Participant’s rights, payments and benefits with respect
to an Award shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain events, in addition
to applicable vesting conditions of an Award. Such events may include, without limitation, breach of non-competition, non-solicitation,
confidentiality, or other restrictive covenants that are contained in the Award Agreement or otherwise applicable to the Participant,
a termination of the Participant’s Continuous Service for Cause, or other conduct by the Participant that is detrimental
to the business or reputation of the Company and/or its Affiliates.

 

    	 	15	 

     

    

 

14.2  Clawback.
Notwithstanding any other provisions in this Plan, the Company may cancel any Award, require reimbursement of any Award by a Participant,
and effect any other right of recoupment of equity or other compensation provided under the Plan in accordance with any Company
policies that may be adopted and/or modified from time to time (“Clawback Policy”). In addition, a Participant
may be required to repay to the Company previously paid compensation, whether provided pursuant to the Plan or an Award Agreement,
in accordance with the Clawback Policy. By accepting an Award, the Participant is agreeing to be bound by the Clawback Policy,
as in effect or as may be adopted and/or modified from time to time by the Company in its discretion (including, without limitation,
to comply with applicable law or stock exchange listing requirements).

 

14.3  Other
Compensation Arrangements. Nothing contained in this Plan shall prevent the Board from adopting other or additional compensation
arrangements, subject to stockholder approval if such approval is required; and such arrangements may be either generally applicable
or applicable only in specific cases.

 

14.4  Sub-Plans.
The Committee may from time to time establish sub-plans under the Plan for purposes of satisfying securities, tax or other laws
of various jurisdictions in which the Company intends to grant Awards. Any sub-plans shall contain such limitations and other
terms and conditions as the Committee determines are necessary or desirable. All sub-plans shall be deemed a part of the Plan,
but each sub-plan shall apply only to the Participants in the jurisdiction for which the sub-plan was designed.

 

14.5  Deferral
of Awards. The Committee may establish one or more programs under the Plan to permit selected Participants the opportunity
to elect to defer receipt of consideration upon exercise of an Award, satisfaction of performance criteria, or other event that
absent the election would entitle the Participant to payment or receipt of shares of Common Stock or other consideration under
an Award. The Committee may establish the election procedures, the timing of such elections, the mechanisms for payments of, and
accrual of interest or other earnings, if any, on amounts, shares or other consideration so deferred, and such other terms, conditions,
rules and procedures that the Committee deems advisable for the administration of any such deferral program.

 

14.6  Unfunded
Plan. The Plan shall be unfunded. Neither the Company, the Board nor the Committee shall be required to establish any special
or separate fund or to segregate any assets to assure the performance of its obligations under the Plan.

 

14.7  Recapitalizations.
Each Award Agreement shall contain provisions required to reflect the provisions of Section 11.

 

14.8  Delivery.
Upon exercise of a right granted under this Plan, the Company shall issue Common Stock or pay any amounts due within a reasonable
period of time thereafter. Subject to any statutory or regulatory obligations the Company may otherwise have, for purposes of
this Plan, 30 days shall be considered a reasonable period of time.

 

14.9   No
Fractional Shares. No fractional shares of Common Stock shall be issued or delivered pursuant to the Plan. The Committee shall
determine whether cash, additional Awards or other securities or property shall be issued or paid in lieu of fractional shares
of Common Stock or whether any fractional shares should be rounded, forfeited or otherwise eliminated.

 

14.10 Other
Provisions. The Award Agreements authorized under the Plan may contain such other provisions not inconsistent with this Plan,
including, without limitation, restrictions upon the exercise of Awards, as the Committee may deem advisable.

 

14.11 Section
409A. The Plan is intended to comply with Section 409A of the Code to the extent subject thereto, and, accordingly, to the
maximum extent permitted, the Plan shall be interpreted and administered to be in compliance therewith. Any payments described
in the Plan that are due within the “short-term deferral period” as defined in Section 409A of the Code shall not
be treated as deferred compensation unless Applicable Laws require otherwise. Notwithstanding anything to the contrary in the
Plan, to the extent required to avoid accelerated taxation and tax penalties under Section 409A of the Code, amounts that would
otherwise be payable and benefits that would otherwise be provided pursuant to the Plan during the six month period immediately
following the Participant’s termination of Continuous Service shall instead be paid on the first payroll date after the
six-month anniversary of the Participant’s separation from service (or the Participant’s death, if earlier). Notwithstanding
the foregoing, neither the Company nor the Committee shall have any obligation to take any action to prevent the assessment of
any additional tax or penalty on any Participant under Section 409A of the Code and neither the Company nor the Committee will
have any liability to any Participant for such tax or penalty.

 

    	 	16	 

     

    

 

14.12 Disqualifying
Dispositions. Any Participant who shall make a “disposition” (as defined in Section 424 of the Code) of all or
any portion of shares of Common Stock acquired upon exercise of an Incentive Stock Option within two years from the Grant Date
of such Incentive Stock Option or within one year after the issuance of the shares of Common Stock acquired upon exercise of such
Incentive Stock Option (a “Disqualifying Disposition”) shall be required to immediately advise the Company
in writing as to the occurrence of the sale and the price realized upon the sale of such shares of Common Stock.

 

14.13 Section
16. It is the intent of the Company that the Plan satisfy, and be interpreted in a manner that satisfies, the applicable requirements
of Rule 16b-3 as promulgated under Section 16 of the Exchange Act so that Participants will be entitled to the benefit of Rule
16b-3, or any other rule promulgated under Section 16 of the Exchange Act, and will not be subject to short-swing liability under
Section 16 of the Exchange Act. Accordingly, if the operation of any provision of the Plan would conflict with the intent expressed
in this Section 14.13, such provision to the extent possible shall be interpreted and/or deemed amended so as to avoid
such conflict.

 

14.14 Beneficiary
Designation. Each Participant under the Plan may from time to time name any beneficiary or beneficiaries by whom any right
under the Plan is to be exercised in case of such Participant’s death. Each designation will revoke all prior designations
by the same Participant, shall be in a form reasonably prescribed by the Committee and shall be effective only when filed by the
Participant in writing with the Company during the Participant’s lifetime.

 

14.15 Expenses.
The costs of administering the Plan shall be paid by the Company.

 

14.16 Severability.
If any of the provisions of the Plan or any Award Agreement is held to be invalid, illegal or unenforceable, whether in whole
or in part, such provision shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability
and the remaining provisions shall not be affected thereby.

 

14.17 Plan
Headings. The headings in the Plan are for purposes of convenience only and are not intended to define or limit the construction
of the provisions hereof.

 

14.18 Non-Uniform
Treatment. The Committee’s determinations under the Plan need not be uniform and may be made by it selectively among
persons who are eligible to receive, or actually receive, Awards. Without limiting the generality of the foregoing, the Committee
shall be entitled to make non-uniform and selective determinations, amendments and adjustments, and to enter into non-uniform
and selective Award Agreements.

 

15.   Effective
Date of Plan. The Plan shall become effective as of the Effective Date, but no Award shall be exercised (or, in the case of
a stock Award, shall be granted) unless and until the Plan has been approved by the stockholders of the Company, which approval
shall be within twelve (12) months before or after the date the Plan is adopted by the Board.

 

16.   Termination
or Suspension of the Plan. The Plan shall terminate automatically on tenth anniversary of the Effective Date. No Award shall
be granted pursuant to the Plan after such date, but Awards theretofore granted may extend beyond that date. The Board may suspend
or terminate the Plan at any earlier date pursuant to Section 13.1 hereof. No Awards may be granted under the Plan while
the Plan is suspended or after it is terminated.

 

17.   Choice
of Law. The law of the State of Delaware shall govern all questions concerning the construction, validity and interpretation
of this Plan, without regard to such state’s conflict of law rules.

 

    	 	17

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