Document:

Exhibit 10.2

 

AudioEye,
Inc.

2019
Equity Incentive Plan

 

Notice of Award of Performance Shares

 

The Participant is
hereby provided this Notice of the following grant of Performance Shares with respect to shares of the Common Stock of AudioEye,
Inc., a Delaware corporation (the “Company”) under the AudioEye, Inc. 2019 Equity Incentive Plan, as amended
from time to time (the “Plan”). All capitalized terms in this Notice shall have the meaning assigned to them
in this Notice or in the attached Performance Share Award Agreement, or, if not defined herein or therein, in the Plan. 

 

	Participant: 	David Moradi
	Grant Date: 	August 20, 2020
	Number of Shares Subject to	 
	Performance Share Award:	260,000

 

Vesting Schedule: The Participant shall vest in the Performance
Share Award as follows:

 

	Performance Condition	 	Number of Performance Shares Vesting if Performance Condition Deemed Achieved
	
        Monthly Recurring Revenue (as defined below) equal
to or more than $3.0 million for two consecutive calendar months
	 	55,000
	
        Monthly Recurring Revenue equal to or more than $5.0
million for two consecutive calendar months
	 	50,000
	
        Volume Weight Average Price “VWAP” in excess
of $25 on The Nasdaq Stock Market LLC over 20 Consecutive Trading Days
	 	55,000
	
        Volume Weight Average Price “VWAP” in excess of
        $50 on The Nasdaq Stock Market LLC over 20 Consecutive Trading Days

        
	 	50,000
	
        Volume Weight Average Price “VWAP” in excess of
        $100 on The Nasdaq Stock Market LLC over 20 Consecutive Trading Days

        

        
	 	50,000

 

     

     

    

 

If a Performance Condition set forth above is not achieved on
or prior to the 5-year anniversary of the Grant Date, the portion of the Performance Share Award corresponding to such condition
shall not vest and shall be forfeited by Participant.

 

In order for Participant to vest in a portion of the Performance
Share Award corresponding to a Performance Condition set forth above, Participant must be serving as Interim Chief Executive Officer
(“ICEO”) or as Chief Strategy Officer (“CSO”) on the date on which the condition is achieved.

 

If Participant is not serving as ICEO or as CSO on the date
on which a Performance Condition is achieved, the portion of the Performance Share Award corresponding to such condition shall
not vest and shall be forfeited by Participant.

 

All Performance Conditions are independent, and more than one
Performance Condition can be satisfied at one time (e.g., if Monthly Recurring Revenue greater than or equal to $5.0 million for
two consecutive calendar months is achieved, 50,000 Performance Shares will vest in addition to the 55,000 Performance Shares which
will vest because Monthly Recurring Revenue greater than or equal to $3.0 million for two consecutive calendar months will also
have been achieved). But a Performance Condition can only be satisfied once.

 

Notwithstanding anything herein to the contrary, the Performance
Share Award will accelerate vesting and become 100% vested if, on or prior to the 5th anniversary of the Grant Date, Participant’s
employment is terminated by the Company without Cause. For this purpose, “Cause” shall consist of a termination due
to the following as specified in the notice of termination (and in each case Participant fails to cure within thirty (30) days
of delivery of such notice of termination, except as to clauses (v) or (vi), which shall not be subject to cure) (i) Participant’s
failure, subject to the relaxed standard in Section 1(c) of the Participant’s employment agreement with the Company, to substantially
perform the fundamental duties and responsibilities associated with the position(s) he holds for any reason, including Participant’s
failure or refusal to carry out reasonable instructions; (ii) Participant’s breach of any material written Company policy;
(iii) Participant’s gross misconduct in the performance of Participant’s duties for the Company; (iv) Participant’s
material breach of the terms of the Participant’s employment agreement with the Company; (v) Participant being convicted
of, or pleading nolo contendere or equivalent to, 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 (vi) any criminal conduct that is a “statutory disqualifying event” (as defined under federal
securities laws, rules and regulations). Prior to any termination for Cause, and subsequent to any applicable thirty (30) day period
of time within which Participant may be permitted to cure, Executive will be entitled to appear (with counsel) before the full
Board to present information regarding his views on the Cause event, and after such hearing, there must be at least a majority
vote of the full Board (other than Participant) to terminate him for Cause.

 

Notwithstanding anything to the contrary in this Agreement,
in the event of a Change in Control, the Performance Shares will be subject to the provisions of the Plan relating to a Change
in Control.

 

    2

     

    

 

“Monthly Recurring Revenue” will be determined by
the Board (or the Committee or the Chairperson of the Compensation Committee on behalf of such Committee) using the methodology
for calculating Monthly Recurring Revenues for purposes of the Company’s reporting on the Form 10-Q.

 

The Participant hereby acknowledges and
agrees that (a) the Company has made available to the Participant copies of the Plan, the Performance Share Award Agreement
governing the Performance Share Award and the prospectus for the Plan and (b) the Participant has had the opportunity to review
such documents and this Notice and to consult with the Participant’s individual tax advisor and legal counsel with respect
to the same.

 

The Participant understands and agrees
that the Performance Shares are granted subject to and in accordance with the terms of the Plan. By executing this Notice, the
Participant further agrees to be bound by the terms of the Plan and the terms of the Performance Share Award as set forth in the
Performance Share Award Agreement attached hereto. By accepting the Performance Share Award, the Participant consents to receive
Plan documents by electronic delivery and to participate in the Plan through an on-line or electronic system established and maintained
by the Company or another third party designated by the Company.

 

[SIGNATURE PAGE TO FOLLOW]

 

    3

     

    

 

	AudioEye, Inc.	Participant

 

	By: 	/s/
    Carr Bettis	 	By: 	/s/
    David Moradi
	Name: Carr Bettis	 	Name: David Moradi
	Title: _Executive Chairman	 	Date: _August 20, 2020
	Date: August 20, 2020	 	 

 

    4

     

    

 

AudioEye, Inc.

2019 Equity Incentive Plan

 

Performance Share Award Agreement

 

AudioEye, Inc. (the
“Company”) has awarded to the Participant named in the Notice of Award of Performance Shares (the “Grant
Notice”) to which this Performance Share Award Agreement (the “Agreement”) is attached the number
of Performance Shares set forth in the Grant Notice, subject to its 2019 Equity Incentive Plan, as amended from time to time (the
“Plan”), the Grant Notice and the Agreement. Capitalized terms not explicitly defined in this Agreement or in
the Grant Notice but defined in the Plan will have the same definitions as in the Plan. In the event of any conflict between the
terms in this Agreement and the Plan, the terms of the Plan will control. This Agreement will be deemed to be signed by the Participant
on the signing by the Participant of the Grant Notice to which it is attached.

 

1.            
Grant of Performance Shares. The Company hereby issues to the Participant on the Grant Date an Award for the
number of Performance Shares set forth in the Grant Notice (the “Performance Shares”). Each Performance Share
represents the right to receive one share of Common Stock, subject to the terms and conditions set forth in this Agreement and
the Plan. The Performance Shares shall be credited to a separate account maintained for the Participant on the books and records
of the Company (the “Account”). All amounts credited to the Account shall continue for all purposes to be part
of the general assets of the Company. The terms, conditions, and definitions in the Grant Notice are hereby incorporated by reference
into this Performance Share Award Agreement.

 

2.            
Consideration. The grant of the Performance Shares is made in consideration
of the services to be rendered by the Participant to the Company.

 

3.            
Vesting. The Performance Shares will vest as set forth in the Grant Notice. The period during which any Performance
Shares remain subject to vesting is described in this Agreement as the “Restricted Period.”

 

4.            
Restrictions. Subject to any exceptions set forth in this Agreement or the Plan,
during the Restricted Period and until such time as the Performance Shares are settled in accordance with Section 6, the
Performance Shares or the rights relating thereto may not be assigned, alienated, pledged, attached, sold or otherwise transferred
or encumbered by the Participant. Any attempt to assign, alienate, pledge, attach, sell or otherwise transfer or encumber the Performance
Shares or the rights relating thereto shall be wholly ineffective and, if any such attempt is made, the Performance Shares will
be forfeited by the Participant and all of the Participant’s rights to such Performance Shares shall immediately terminate
without any payment or consideration by the Company.

 

5.            
Rights as Shareholder.

 

5.1         
The Participant shall not have any rights of a shareholder with respect to the shares of Common Stock underlying
the Performance Shares unless and until the Performance Shares vest and are settled by the issuance of such shares of Common Stock.

 

5.2         
Upon and following the settlement of the Performance Shares, the Participant shall be the record owner of the shares
of Common Stock underlying the Performance Shares unless and until such shares are sold or otherwise disposed of, and as record
owner shall be entitled to all rights of a shareholder of the Company (including voting rights).

 

6.            
Settlement of Performance Shares.

 

6.1         
Subject to Section 9 hereof, as soon as practicable after vesting (and in any event within 30 days following
vesting) the Company shall (a) issue and deliver to the Participant the number of shares of Common Stock equal to the number of
vested Performance Shares, and (b) enter the Participant’s name on the books of the Company as the shareholder of record
with respect to the shares of Common Stock delivered to the Participant.

 

    5

     

    

 

6.2         
Notwithstanding Section 6.1, in accordance with the terms of the Plan, the Committee may, but is not required
to, prescribe rules pursuant to which the Participant may elect to defer settlement of the Performance Shares. Any deferral election
must be made in compliance with such rules and procedures as the Committee deems advisable, including Section 409A of the Code.

 

7.           
No Right to Continued Service. Neither the Plan nor this Agreement shall confer
upon the Participant any right to be retained in any position, as an Employee, Consultant or Director of the Company. Further,
nothing in the Plan or this Agreement shall be construed to limit the discretion of the Company to terminate the Participant’s
Continuous Service at any time, with or without Cause. 

 

8.           
Adjustments. If any change is made
to the outstanding Common Stock or the capital structure of the Company, if required, the Performance Share Award including the
Performance Goals (i.e., the Performance Conditions set forth in the Grant Notice) shall be adjusted in any manner as contemplated
by the terms of the Plan. 

 

9.           
Tax Liability and Withholding.

 

9.1         
 The Participant shall be required to pay to the Company, and the Company shall have the right to deduct from any
compensation paid to the Participant pursuant to the Plan, the amount of any required withholding taxes in respect of the Performance
Shares and to take all such other actions as the Committee deems necessary to satisfy all obligations for the payment of such withholding
taxes. The Company shall satisfy any federal, state, or local tax withholding obligation by withholding shares of Common Stock
from the shares of Common Stock otherwise issuable or deliverable to the Participant as a result of the vesting or settlement of
the Performance Shares at the minimum statutory withholding rate. The Shares used to satisfy such withholding obligations will
be valued at the Fair Market Value as of the date of such withholding.

 

9.2         
Notwithstanding any action the Company takes with respect to any or all income tax, social insurance, payroll tax,
or other tax-related withholding (”Tax-Related Items”), the ultimate liability for all Tax-Related Items is
and remains the Participant’s responsibility and the Company (a) makes no representation or undertakings regarding the treatment
of any Tax-Related Items in connection with the grant, vesting or settlement of the Performance Shares or the subsequent sale of
any shares; and (b) does not commit to structure the Performance Shares to reduce or eliminate the Participant’s liability
for Tax-Related Items.

 

10.         
Compliance with Law. The issuance and transfer of shares of Common Stock shall
be subject to compliance by the Company and the Participant with all applicable requirements of federal and state securities laws
and with all applicable requirements of any stock exchange on which the Company’s shares of Common Stock may be listed. No
shares of Common Stock shall be issued or transferred unless and until any then applicable requirements of state and federal laws
and regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel. 

 

11.         
Notices. Any notice required to be delivered to the Company under this Agreement
shall be in writing and addressed to the Secretary of the Company at the Company’s principal corporate offices. Any notice
required to be delivered to the Participant under this Agreement shall be in writing and addressed to the Participant at the Participant’s
address as shown in the records of the Company. Either party may designate another address in writing (or by such other method
approved by the Company) from time to time.

 

12.         
Governing Law. This Agreement will be construed and interpreted in accordance
with the laws of the State of Delaware without regard to conflict of law principles.

 

13.         
Interpretation. Any dispute regarding the interpretation of this Agreement shall
be submitted by the Participant or the Company to the Committee for review. The resolution of such dispute by the Committee shall
be final and binding on the Participant and the Company.

 

    6

     

    

 

14.         
Performance Shares Subject to Plan. This Agreement is subject to the Plan as
approved by the Company’s shareholders. The terms and provisions of the Plan as it may be amended from time to time are hereby
incorporated herein by reference. In the event of a conflict between any term or provision contained herein and a term or provision
of the Plan, the applicable terms and provisions of the Plan will govern and prevail.

 

15.         
Successors and Assigns. The Company may assign any of its rights under this
Agreement. This Agreement will be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to
the restrictions on transfer set forth herein, this Agreement will be binding upon the Participant and the Participant’s
beneficiaries, executors, administrators and the person(s) to whom the Performance Shares may be transferred by will or the laws
of descent or distribution.

 

16.         
Severability. The invalidity or unenforceability of any provision of the Plan
or this Agreement shall not affect the validity or enforceability of any other provision of the Plan or this Agreement, and each
provision of the Plan and this Agreement shall be severable and enforceable to the extent permitted by law.

 

17.         
Discretionary Nature of Plan. The Plan is discretionary and may be amended,
cancelled, or terminated by the Company at any time, in its discretion. The grant of the Performance Shares in this Agreement does
not create any contractual right or other right to receive any Performance Share Award or other Awards in the future. Future Awards,
if any, will be at the sole discretion of the Company. Any amendment, modification, or termination of the Plan shall not constitute
a change or impairment of the terms and conditions of the Participant’s employment with the Company.

 

18.         
Amendment. The Committee has the right to amend, alter, suspend, discontinue
or cancel the Performance Share Award, prospectively or retroactively; provided, that, no such amendment or other action shall
adversely affect the Participant’s rights under this Agreement without the Participant’s consent.

 

19.         
Section 409A. This Agreement will be interpreted to the greatest extent possible
in a manner that makes the Performance Share Award exempt from Section 409A of the Code, and to the extent not so exempt, in compliance
with the requirements imposed by Section 409A of the Code. If any provision in the Grant Notice or this Agreement would result
in the imposition of an additional tax under Section 409A of the Code, the Company and the Participant intend that the Grant Notice
or this Agreement will be reformed to avoid imposition, to the extent possible, of the applicable tax and no action taken to comply
with Section 409A of the Code shall be deemed to adversely affect the Participant’s rights to the Performance Shares. The
Participant further agrees that the Committee, in the exercise of its sole discretion and without the consent of the Participant,
may amend or modify the Plan, the Grant Notice or this Agreement in any manner and delay the payment of any amounts payable pursuant
to the Performance Share Award to the extent necessary to meet the requirements of Section 409A of the Code as the Committee deems
appropriate or desirable. The Company makes no representation that the Plan or any Award complies with Section 409A of the Code
and shall have no liability to any Participant for any failure to comply with Section 409A of the Code. If the Performance Shares
are intended to comply with Section 409A of the Code and Participant is deemed a “specified employee” within the meaning
of Section 409A of the Code, as determined by the Committee, at a time when the Participant becomes eligible for settlement of
the Performance Shares upon his “separation from service” within the meaning of Section 409A of the Code, then to the
extent necessary to prevent any accelerated or additional tax under Section 409A of the Code, such settlement will be delayed until
the earlier of: (a) the date that is six months following the Participant’s separation from service and (b) the Participant’s
death. Provisions relating to Section 409A of the Code contained in the Participant’s employment agreement with the Company
are incorporated into this Agreement.

 

20.         
No Impact on Other Benefits. The value of the Participant’s Performance
Share Award is not part of his or her normal or expected compensation for purposes of calculating any severance, retirement, welfare,
insurance, or similar employee benefit.

 

    7

     

    

 

21.         
Acceptance. By executing the Grant Notice, the Participant acknowledges receipt
of a copy of the Plan and this Agreement. The Participant has read and understands the terms and provisions thereof and accepts
the Performance Share Award subject to all of the terms and conditions of the Plan and this Agreement. The Participant acknowledges
that there may be adverse tax consequences upon the vesting or settlement of the Performance Shares or disposition of the underlying
shares and that the Participant has been advised to consult a tax advisor prior to such vesting, settlement or disposition.

 

    8Exhibit

EXHIBIT 10.1

Summary of Revised 2020 and 2021 Non-Employee Director Compensation Program
IHS Markit Ltd.
Effective August 1, 2020

Director Compensation

Our nonemployee directors receive compensation for their service on our Board of Directors, subject to and in accordance with the IHS Markit Ltd. Non-Employee Director Equity Compensation Policy (the “Director Compensation Policy”).

Beginning August 1, 2020, each of our nonemployee directors will receive annual cash retainers and equity awards, as described in the table below. The cash retainers received by the nonemployee directors may be converted into deferred stock units.

	
			
	Annual Director Compensation
	Beginning August 1, 2020
	Beginning December 1, 2020

	Annual Board Retainer
	$67,500
	$67,500

	Lead Independent Director Retainer
	$50,000
	$50,000

	Committee Chair Retainer:
	$30,000
	$30,000

	Annual Equity Award (1)
	$180,000
	$180,000

	(1)   On the day of the Company’s annual general meeting of shareholders each year, each nonemployee director shall receive an award consisting of restricted stock units whose underlying shares shall have, on the date of grant, a fair market value equal to $180,000. Such awards will vest on the earlier to occur of: (i) the date of the first annual general meeting of shareholders occurring in the fiscal year immediately following the grant date and (ii) the first anniversary of the grant date, unless the Board expressly determines otherwise. Directors may choose to defer receipt of the shares underlying the restricted stock units until after their termination of service.

Non-Employee Director Compensation (cash and equity) shall be prorated for any partial period of service in accordance with the Director Compensation Policy.

All equity awards for nonemployee directors will be issued pursuant to the IHS Markit Ltd. 2014 Equity Incentive Award Plan and the Director Compensation Policy.

We provide liability insurance for our directors and officers. In addition, our nonemployee directors are reimbursed for reasonable expenses.

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