Document:

Exhibit 10.1

  

EXECUTIVE EMPLOYMENT AGREEMENT

 

This EXECUTIVE EMPLOYMENT
AGREEMENT (the “Agreement”) is entered into effective October 1, 2020 (the “Effective
Date”), by and between Tom Reilly (“Executive”) and Cara Therapeutics, Inc.
(the “Company”).

 

WHEREAS, the Company
desires to employ Executive and, in connection therewith, to compensate Executive for Executive’s personal services to the
Company; and

 

WHEREAS, Executive
wishes to be employed by the Company and provide personal services to the Company in return for certain compensation.

 

Accordingly, in consideration
of the mutual promises and covenants contained herein, the parties agree to the following:

 

1.            EMPLOYMENT
BY THE COMPANY.

 

1.1          Position.
Subject to the terms set forth herein, the Company agrees to employ Executive in the position of Chief Financial Officer (“CFO”),
and Executive hereby accepts such employment. The Company reserves the right to change or modify Executive’s title and/or
duties as business needs may require. During the term of Executive’s employment with the Company, Executive will devote his
best efforts and substantially all of his business time and attention to the business of the Company.

 

1.2          Duties.
Executive will report to the Chief Executive Officer of the Company (the “CEO”) performing such duties
as are normally associated with Executive’s position, and as more fully described on Exhibit A hereto, and such
duties as are assigned to Executive from time to time by the CEO, subject to the oversight and direction of the CEO. Executive
shall perform Executive’s duties under this Agreement principally out of the Company’s corporate headquarters which
are currently located in Stamford, Connecticut. Where required, the Company will provide an overnight accommodation at a local
hotel. In addition, Executive shall make such business trips to such places as may be necessary or advisable for the efficient
operations of the Company.

 

1.3          At-Will
Employment. Executive’s employment relationship with the Company is, and shall
at all times remain, at-will. This means that either Executive or the Company may terminate the employment relationship at any
time, for any reason or for no reason, with or without cause or advance notice.

 

1.4          Company
Policies and Benefits. The employment relationship between the parties shall also
be subject to the Company’s personnel policies and procedures as they may be interpreted, adopted, revised or deleted from
time to time in the Company’s sole discretion. Executive will be eligible to participate on the same basis as similarly
situated employees in the Company’s benefit plans in effect from time to time during his employment. All matters of eligibility
for coverage or benefits under any benefit plan shall be determined in accordance with the provisions of such plan. The Company
reserves the right to change, alter, or terminate any benefit plan in its sole discretion. Notwithstanding the foregoing, in the
event that the terms of this Agreement differ from or are in conflict with the Company’s general employment policies
or practices, this Agreement shall control.

 

    	 	 

     

    

 

1.5          Start
Date. Executive’s employment with the Company shall commence on October 1,
2020 (the “Start Date”).

 

		2.	COMPENSATION.

 

2.1          Salary.
Executive shall receive for Executive’s services to be rendered hereunder an initial annualized base salary of $400,000,
subject to review and adjustment from time to time by the Board of Directors of the Company (the “Board”)
in its sole discretion and payable subject to standard federal and state payroll withholding requirements in accordance with Company’s
standard payroll practices (“Base Salary”). The Base Salary shall be prorated for any partial year of
employment on the basis of a 365-day year.

 

		2.2	Target Bonus.

 

(a)            During
Employment. Executive shall be eligible for an annual cash bonus with the initial
target amount of such bonus equal to forty percent (40%) of Executive’s Base Salary during the then current bonus year (“Target
Bonus”), subject to review and adjustment from time to time by the CEO and Compensation Committee in their sole discretion,
payable subject to standard federal and state payroll withholding requirements. Whether or not Executive is eligible for any annual
bonus will be dependent upon (a) the actual achievement by Executive and the Company of the applicable individual and corporate
performance goals, as determined by the Company, and (b) Executive’s continuous performance of services to the Company
through the date any annual bonus is paid. Executive will be eligible for a pro-rated annual bonus for 2020, subject to the eligibility
criteria in this Section 2.2 and provided that the annual bonus for 2020 (if any) will be prorated based upon the number of
days during which he was employed by the Company in 2020. In all events, any bonus awarded pursuant to this Section 2.2 will
be paid on or before March 15 of the year following the year for which is awarded.

 

(b)            Upon
Termination. Except as otherwise set forth in Section 6 herein, in the event
Executive leaves the employ of the Company for any reason prior to payment of any bonus, Executive is not eligible for such bonus,
prorated or otherwise.

 

2.3            Signing
and Retention Payment. The Company will make a one-time payment to Executive of $30,000
(the “Signing and Retention Payment”), less applicable withholding taxes, which will be earned upon
Executive remaining in employment through the one (1) year anniversary of the Start Date. The Signing and Retention Payment
will be paid as an advance, in a lump sum within thirty (30) days following Executive’s Start Date, subject to Executive’s
continued employment through and including the date on which the Signing and Retention Payment is paid. If at any time prior to
the one (1) year anniversary of Executive’s Start Date, Executive’s service to the Company terminates for any
reason (other than a termination by the Company without Cause (as defined below), Executive will be required to, and hereby agrees
to, repay to the Company 100% of the Signing and Retention Payment (on a net of tax basis). Executive agrees that if he
is obligated to repay the Signing and Retention Payment, the Company may deduct, in accordance with applicable law, the amount
from any payments the Company owes Executive, including but not limited to any regular payroll amount and any expense payments.
Executive further agrees to pay to the Company, within thirty (30) days of the termination date, any remaining unpaid balance
of the unearned Signing and Retention Payment not covered by such deductions.

 

    	 	 

     

    

 

2.4          Expense
Reimbursement. The Company will reimburse Executive for reasonable business expenses
in accordance with the Company’s standard expense reimbursement policy. These will include any expenses incurred by Executive
with respect to travel to the Stamford, CT office when requested by the Company. To the extent that any reimbursements payable
to Executive under this Agreement are subject to the provisions of Section 409A of the Code, then (i) any such reimbursements
will be paid no later than December 31 of the year following the year in which the expense was incurred or, with respect to
any tax reimbursement, the year in which the taxes were paid, (ii) the amount of expenses reimbursed in one year will not
affect the amount eligible for reimbursement in any subsequent year, and (iii) the right to reimbursement under this Agreement
will not be subject to liquidation or exchange for another benefit.

 

2.5           Stock
Option. Subject to approval by the Board and subject to the terms of the Company’s
2014 Equity Incentive Plan (the “Plan”), Executive will be granted an option (the “Option”)
to purchase 175,000 shares of the Company’s Common Stock (the “Option Shares”). Subject to Executive’s
continuous service through each applicable vesting date, the Option will vest and become exercisable with respect to twenty-five
percent of the Option Shares on the first anniversary of the Start Date and will vest with respect to the remaining 75% of the
Option Shares in equal amounts at the end of each calendar month for the 36-month period following the first anniversary of the
Start Date. The exercise price of the Option will be equal to the fair market value of the Company’s Common Stock on the
date of grant of the Option, as determined by the Company. The Option will be governed by the Plan and other documents issued in
connection with the grant.

 

3.            CONFIDENTIAL
INFORMATION, INVENTIONS, NON-COMPETITION AND NON- SOLICITATION OBLIGATIONS. As
a condition of employment Executive agrees to execute and abide by the Cara Therapeutics, Inc., At Will Employment, Confidential
Information, Invention Assignment, And Arbitration Agreement, attached as Exhibit B which may be amended by the
parties from time to time without regard to this Agreement (the “Confidential Information Agreement”).

 

4.            OUTSIDE
ACTIVITIES. Except with the prior written consent of the Company’s Board, Executive
will not, while employed by the Company, undertake or engage in any other employment, occupation or business enterprise that would
interfere with Executive’s responsibilities and the performance of Executive’s duties hereunder except for (i) reasonable
time devoted to volunteer services for or on behalf of such religious, educational, non-profit and/or other charitable organization
as Executive may wish to serve, (ii) reasonable time devoted to activities in the non-profit and business communities consistent
with Executive’s duties; and (iii) such other activities as may be specifically approved by the Board. This restriction
shall not, however, preclude Executive from owning less than one percent (1%) of the total outstanding shares of a publicly traded
company.

 

    	 	 

     

    

 

5.            NO
CONFLICT WITH EXISTING OBLIGATIONS. Executive represents that Executive’s performance
of all the terms of this Agreement and as an Executive of the Company does not and will not breach any agreement or obligation
of any kind made prior to Executive’s employment by the Company, including agreements or obligations Executive may have with
prior employers or entities for which Executive has provided services. Executive has not entered into, and Executive agrees that
Executive will not enter into, any agreement or obligation, either written or oral, in conflict herewith.

 

6.            TERMINATION
OF EMPLOYMENT. The parties acknowledge that either Executive or the Company may terminate
the employment relationship at any time for any reason by giving notice as described in Sections 6.6 and 7.1. The provisions in
this Section 6 govern the amount of compensation, if any, to be provided to Executive upon termination of employment and do
not restrict the right of either party to terminate the employment relationship.

 

6.1          Termination
by the Company Without Cause.

 

(a)           The
Company shall have the right to terminate Executive’s employment with the Company pursuant to this Section 6.1 at any
time without “Cause” (as defined in Section 6.2(b) below) by giving notice as described in Section 6.6
of this Agreement. A termination pursuant to Section 6.5 below is not a termination without “Cause” for purposes
of receiving the benefits described in this Section 6.1.

 

(b)           In
the event Executive’s employment is terminated without Cause on or after the first anniversary of the Start Date, then provided
that Executive executes a general release in favor of the Company, in substantially the form attached as Exhibit C (the
“Release”), and subject to Section 6.1(c) (the date that the Release becomes effective and
may no longer be revoked by Executive is referred to as the “Release Date”), then the Company shall provide
the following severance benefits to Executive (the “Severance Benefits”):

 

(i)            an
amount equal to Executive’s then current Base Salary for a period of nine (9) months following the Release Date (such
applicable period is referred to as the “Severance Period”), less applicable withholdings and deductions,
on the Company’s regular payroll dates;

 

(ii)            an
amount equal to 50% of the Target Bonus that Executive was eligible to receive during the calendar year in which Executive is terminated
without Cause (if any) prorated for any partial year of employment on the basis of a 365-day year, less applicable withholdings
and deductions, payable in a lump sum on the later of (x) the date that annual performance bonuses are normally paid to other
executives at the Company for that calendar year or (y) the Release Date, but in no event later than March 15 of the
year following the year for which the Target Bonus is paid; and

 

    	 	 

     

    

 

(iii)            provided
Executive timely elects and remains eligible for continued coverage under COBRA, the Company will pay Executive COBRA premiums
for the coverage that Executive and Executive’s eligible dependents had at the time of the separation from the Company until
the earliest of: (x) nine (9) months following the separation from the Company (the “COBRA Period”);
(y) the date when Executive becomes eligible for substantially equivalent health insurance coverage in connection with new
employment or self-employment; or (z) the date Executive cease to be eligible for COBRA continuation coverage for any reason
(such period from the termination date through the earlier of (x)-(z), (the “COBRA Payment Period”).
Notwithstanding the foregoing, if at any time the Company determines that its payment of COBRA premiums on Executive’s behalf
would result in a violation of applicable law (including, but not limited to, the 2010 Patient Protection and Affordable Care
Act, as amended by the 2010 Health Care and Education Reconciliation Act), then in lieu of paying such portion of the premiums
pursuant to this Section, the Company shall pay Executive on the last day of each remaining month of the COBRA Payment Period,
a fully taxable cash payment equal to the portion of such COBRA premium that would have been paid by the Company for such month,
subject to applicable tax withholding, for the remainder of the COBRA Payment Period. Nothing in this Agreement shall deprive
Executive of his rights under COBRA or ERISA for benefits under plans and policies arising under his employment by the Company.
For the avoidance of doubt, COBRA premiums paid by Executive before the Release Date, if any, will be reimbursed by the Company
through a lump-sum payment to Executive on the Release Date, contingent upon Executive’s submission of any required documentation
of proof of payment.

 

In the event Executive’s employment
is terminated without Cause before the first anniversary of the Start Date, then provided that Executive executes and does not
revoke the Release, and subject to Section 6.1(c) then the Company shall provide the Executive with the Severance Benefits,
except that the Severance Period under Sections 6.1(b)(i) shall be reduced to three (3) months and the COBRA Period set
forth in Section 6.1(b)(iii)(x) shall be reduced to three (3) months. To receive any Severance Benefits under this
Section 6.1, Executive’s termination must constitute a “separation from service” (as defined under Treasury
Regulation Section 1.409A- 1(h)) and Executive must execute and allow the Release to become effective within sixty (60) days
of Executive’s termination (or sooner in accordance with the consideration period specified in the Release).

 

(c)            Executive
shall not receive any of the benefits pursuant to Section 6.1(b) or Section 6.4 unless he executes the Release within
the consideration period specified therein, which shall in no event be more than 60 days, and until the Release becomes effective
and can no longer be revoked by Executive under its terms. If the consideration period for signing the Release spans two calendar
years, then, notwithstanding when Executive signs the Release and the Release becomes effective, no payments under Sections 6.1(b) or
6.4 will occur until the subsequent calendar year if necessary to avoid the imposition of taxes under Section 409A (with such
payments beginning or being made, as applicable, on the later of the Company’s first regularly scheduled payroll date in
the subsequent calendar year or the first payroll date after the Release Date). Executive’s ability to receive benefits pursuant
to Section 6.1(b) or Section 6.4 is further conditioned upon his: returning all Company property; complying with
his post-termination obligations under this Agreement and the Confidential Information Agreement; and complying with the Release,
including without limitation any non- disparagement and confidentiality provisions contained therein.

 

(d)            In
the event Executive’s employment is terminated at any time without Cause, in addition to the severance benefits in Section 6.1(b) or
in Section 6.4, the Company shall pay to Executive the accrued but unpaid salary of Executive through the date of termination,
in accordance with the Company’s standard payroll policies, together with all compensation and benefits payable to Executive
based on his participation in any compensation or benefit plan, program or arrangement through the date of termination. The Company
will also reimburse Executive for reasonable business expenses in accordance with the Company’s standard expense reimbursement
policy.

 

    	 	 

     

    

 

(e)            The
damages caused by the termination of Executive’s employment without Cause would be difficult to ascertain; therefore, the
severance for which Executive is eligible pursuant to Section 6.1(b) or Section 6.4 in exchange for the Release
is agreed to by the parties as liquidated damages, to serve as full compensation, and not a penalty.

 

		6.2	Termination by the Company for Cause.

 

(a)            Subject
to Section 6.2(c) below, the Company shall have the right to terminate Executive’s employment with the Company
at any time for Cause by giving notice as described in Sections 6.6 and 7.1 of this Agreement.

 

(b)            “Cause”
for termination shall mean that the Company has determined in its sole discretion that Executive has engaged in any one or more
of the following:

 

(i) Executive’s commission
of a felony; (ii) any act or omission of Executive constituting dishonesty, fraud, immoral, or disreputable conduct that
causes material harm to the Company; (iii) Executive’s
violation of Company policy that causes material harm to the Company; (iv) Executive’s material breach of any
written agreement between Executive and the Company which, if curable, remains uncured for thirty (30) days after notice; or
(v) breach of fiduciary duty.

 

(c)            In
the event Executive’s employment is terminated at any time for Cause, Executive will not receive severance benefits in Sections
6.1(b) or 6.4, or any other severance compensation or benefit, except that, pursuant to the Company’s standard payroll
policies, the Company shall pay to Executive the accrued but unpaid salary of Executive through the date of termination, together
with all compensation and benefits payable to Executive based on his participation in any compensation or benefit plan, program
or arrangement through the date of termination. The Company will also reimburse Executive for reasonable business expenses in accordance
with the Company’s standard expense reimbursement policy.

 

		6.3	Resignation by Executive.

 

(a)            Executive
may resign from Executive’s employment with the Company at any time by giving notice as described in Sections 6.6 and 7.1.

 

(b)            In
the event Executive resigns from Executive’s employment with the Company, Executive will not receive severance benefits
under Section 6.1(b), Section 6.4 or any other severance compensation or benefit, except that, pursuant to the
Company’s standard payroll policies, the Company shall pay to Executive the accrued but unpaid salary of Executive
through the date of resignation, together with all compensation and benefits payable to Executive through the date of
resignation under any compensation or benefit plan, program or arrangement during such period and Executive shall be eligible
for any benefit continuation or conversion rights provided by the provisions of a benefit plan or by law. The Company will
also reimburse Executive for reasonable business expenses in accordance with the Company’s standard expense
reimbursement policy.

 

    	 	 

     

    

 

6.4            Termination
in Connection With a Change in Control. In the event that the Company terminates Executive
without Cause within the three month period immediately prior to a Change in Control (“Change in Control”
to have the same meaning and effect as “Change in Control” is defined in the Plan, as may be amended from time to time
) or during the twelve month period after any such Change in Control (a “Change in Control Termination”),
then provided that Executive executes the Release and allows it to become effective and subject to Section 6.1(c), the Company
shall provide the following “Change in Control Severance Benefits”:

 

(a)            The
Severance Benefits described in Section 6.1(b); and

 

(b)            Notwithstanding
anything contained in Executive’s stock option or other equity award agreements to the contrary, upon a Change in Control
Termination, provided that the Executive executes the Release and allows it to become effective and, provided further, if such
termination occurs after a Change in Control, that Executive’s equity awards have been continued, assumed or substituted
for by the Company or the acquirer or the surviving entity in such Change in Control, then effective as of the later of the effective
date of the Change in Control or the termination date, any unvested portion of the equity awards will vest in full.

 

		6.5	Termination by Virtue of Death or Disability of Executive.

 

(a)            In
the event of Executive’s death while employed pursuant to this Agreement, all obligations of the parties hereunder shall
terminate immediately, and the Company shall, pursuant to the Company’s standard payroll policies, pay to Executive’s
legal representatives Executive’s accrued but unpaid salary through the date of death together with all legally required
compensation and benefits payable to Executive based on Executive’s participation in any compensation or benefit plan, program
or arrangement through the date of termination.

 

(b)            Subject
to applicable state and federal law, the Company shall at all times have the right, upon written notice to Executive, to terminate
this Agreement based on Executive’s Disability (as defined below). Termination by the Company of Executive’s employment
based on “Disability” shall mean termination because Executive is unable due to a physical or mental
condition to perform the essential functions of Executive’s position with or without reasonable accommodation for one hundred
twenty (120) consecutive calendar days in the aggregate during any twelve (12) month period or based on the written certification
by two licensed physicians of the likely continuation of such condition for such period. This definition shall be interpreted
and applied consistent with the Americans with Disabilities Act, the Family and Medical Leave Act, and other applicable law. In
the event Executive’s employment is terminated based on Executive’s Disability, Executive will not receive severance
payments, or any other severance compensation or benefit, except that, pursuant to the Company’s standard payroll policies,
the Company shall pay to Executive the accrued but unpaid salary of Executive through the date of termination, together with all
compensation and benefits payable to Executive based on Executive’s participation in any compensation or benefit plan, program
or arrangement through the date of termination.

 

    	 	 

     

    

 

		6.6	Notice; Effective Date of Termination.

 

(a)           Termination
of Executive’s employment pursuant to this Agreement shall be effective on the earliest of:

 

(i)              immediately
after the Company gives notice to Executive of Executive’s termination, with or without Cause (except for a termination for
“Cause” under Section 6.2(b)(iv)), unless the Company specifies a later date, in which case, termination shall
be effective as of such later date;

 

(ii)           thirty
(30) days after the Company gives notice to Executive of Executive’s termination for Cause under Section 6.2(b)(iv) and
Executive fails to cure such breach;

 

 (iii)          immediately upon Executive’s death;

 

(iv)           ten
(10) days after the Company gives notice to Executive of Executive’s termination on account of Executive’s Disability,
unless the Company specifies a later date, in which case, termination shall be effective as of such later date, provided that
Executive has not returned to the full time performance of Executive’s duties prior to such date; or

 

(v)             thirty
(30) days after Executive gives written notice to the Company of Executive’s resignation, provided that the Company
may set a termination date at any time between the date of notice and the date of resignation, in which case Executive’s
resignation shall be effective as of such other date. Executive will receive compensation through any required notice period.

 

(b)            In
the event notice of a termination under subsections (a)(i), (ii), (iv), and (v) is given orally, at the other party’s
request, the party giving notice must provide written confirmation of such notice within five (5) business days of the request
in compliance with the requirement of Section 7.1 below.

 

6.7          Cooperation
With Company. During Executive’s employment and following termination of Executive’s
employment for any reason, Executive shall reasonably cooperate with the Company in all matters relating to the winding up of Executive’s
pending work including, but not limited to, any litigation in which the Company is involved, and the orderly transfer of any such
pending work to such other employees as may be designated by the Company. To the extent Executive is required to spend more than
ten (10) total hours following Executive’s termination , the Company shall reasonably compensate Executive for any additional
time spent.

 

    	 	 

     

    

 

6.8           Application
of Section 409A. It is intended that all of the benefits and payments under
this Agreement satisfy, to the greatest extent possible, the exemptions from the application of Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”) provided under Treasury Regulations 1.409A-1(b)(4), 1.409A-1(b)(5) and
1.409A-1(b)(9), and this Agreement will be construed to the greatest extent possible as consistent with those provisions. If not
so exempt, this Agreement (and any definitions hereunder) will be construed in a manner that complies with Section 409A of
the Code, and incorporates by reference all required definitions and payment terms. For purposes of Section 409A of the Code
(including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), Executive’s right
to receive any installment payments under this Agreement (whether severance payments, reimbursements or otherwise) will be treated
as a right to receive a series of separate payments and, accordingly, each installment payment hereunder will at all times be
considered a separate and distinct payment. Notwithstanding any provision to the contrary in this Agreement, if Executive is deemed
by the Company at the time of his Separation from Service to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of
the Code, and if any of the payments upon Separation from Service set forth herein and/or under any other agreement with the Company
are deemed to be “deferred compensation”, then if delayed commencement of any portion of such payments is required
to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code and the related adverse taxation under
Section 409A of the Code, the timing of the payments upon a Separation from Service will be delayed as follows: on the earlier
to occur of (i) the date that is six months and one day after the effective date of Executive’s Separation from Service,
and (ii) the date of Executive’s death (such earlier date, the “Delayed Initial Payment Date”),
the Company will (A) pay to Executive a lump sum amount equal to the sum of the payments upon Separation from Service that
Executive would otherwise have received through the Delayed Initial Payment Date if the commencement of the payments had not been
delayed pursuant to this paragraph, and (B) commence paying the balance of the payments in accordance with the applicable
payment schedules set forth above. No interest will be due on any amounts so deferred.

 

		6.9	Parachute Taxes.

 

(a)            If
any payment or benefit Executive would receive from the Company or otherwise in connection with a Change in Control or other similar
transaction (“Payment”) would (i) constitute a “parachute payment” within the meaning
of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999
of the Code (the “Excise Tax”), then such Payment will be equal to the Reduced Amount. The “Reduced
Amount” will be either (x) the largest portion of the Payment that would result in no portion of the Payment
being subject to the Excise Tax, or (y) the largest portion, up to and including the total, of the Payment, whichever amount
((x) or (y)), after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise
Tax (all computed at the highest applicable marginal rate), results in Executive’s receipt of the greater economic benefit
notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a Reduced Amount will give rise to
the greater after tax benefit, the reduction in the Payments will occur in the following order: (a) reduction of cash payments;
(b) cancellation of accelerated vesting of equity awards other than stock options; (c) cancellation of accelerated vesting
of stock options; and (d) reduction of other benefits paid to Executive. Within any such category of payments and benefits
(that is, (a), (b), (c) or (d)), a reduction will occur first with respect to amounts that are not “deferred compensation”
within the meaning of Section 409A of the Code and then with respect to amounts that are “deferred compensation”
within the meaning of Section 409A of the Code. In the event that acceleration of compensation from Executive’s equity
awards is to be reduced, such acceleration of vesting will be canceled, subject to the immediately preceding sentence, in the
reverse order of the date of grant.

 

    	 	 

     

    

 

(b)            The
registered public accounting firm engaged by the Company for general audit purposes as of the day prior to the effective date of
the event described in Section 280G(b)(2)(A)(i) of the Code will perform the foregoing calculations. If the registered
public accounting firm so engaged by the Company is serving as accountant or auditor for the acquirer or is otherwise unable or
unwilling to perform the calculations, the Company will appoint a nationally recognized firm that has expertise in these calculations
to make the determinations required hereunder. The Company will bear all expenses with respect to the determinations by such independent
registered public accounting firm required to be made hereunder. The Company will use reasonable efforts to cause firm engaged
to make the determinations hereunder will provide its calculations, together with detailed supporting documentation, to the Company
and Executive within 30 calendar days after the date on which Executive’s right to a Payment is triggered (if requested at
that time by the Company or Executive) or such other time as reasonably requested by the Company or Executive. Any good faith determinations
of the independent registered public accounting firm made hereunder will be final, binding and conclusive upon the Company and
Executive.

 

		7.	GENERAL PROVISIONS.

 

7.1            Notices.
Any notices required hereunder to be in writing shall be deemed effectively given: (a) upon personal delivery to the party
to be notified, (b) when sent by electronic mail or confirmed facsimile if sent during normal business hours of the recipient,
and if not, then on the next business day, (c) five (5) days after having been sent by registered or certified mail,
return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier,
specifying next day delivery, with written verification of receipt. All communications shall be sent to the Company, “Attention
Chairman of the Board,” at its primary office location and to Executive at Executive’s address as listed on the Company
payroll, or at such other address as the Company or Executive may designate by ten (10) days advance written notice to the
other.

 

7.2            Severability.
Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable
law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any
other jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal
or unenforceable provisions had never been contained herein.

 

7.3            Waiver.
If either party should waive any breach of any provisions of this Agreement, Executive or the Company shall not thereby be deemed
to have waived any preceding or succeeding breach of the same or any other provision of this Agreement.

 

    	 	 

     

    

 

7.4            Complete
Agreement. This Agreement constitutes the entire agreement between Executive and
the Company with regard to the subject matter hereof. This Agreement is the complete, final, and exclusive embodiment of their
agreement with regard to this subject matter and supersedes any prior oral discussions or written communications and agreements.
This Agreement is entered into without reliance on any promise or representation other than those expressly contained herein,
and it cannot be modified or amended except in writing signed by Executive and an authorized officer of the Company. The parties
have entered into a separate Confidential Information Agreement, and have or may enter into separate agreements related to stock
awards. These separate agreements govern other aspects of the relationship between the parties, have or may have provisions that
survive termination of Executive’s employment under this Agreement, may be amended or superseded by the parties without
regard to this Agreement and are enforceable according to their terms without regard to the enforcement provision of this Agreement.

 

7.5            Counterparts.
This Agreement may be executed in separate counterparts, any one of which need not contain signatures of more than one party, but
all of which taken together will constitute one and the same Agreement.

 

7.6            Headings.
The headings of the sections hereof are inserted for convenience only and shall not be deemed to constitute a part hereof nor to
affect the meaning thereof.

 

7.7            Successors
and Assigns. This Agreement is intended to bind and inure to the benefit of and be
enforceable by Executive and the Company, and their respective successors, assigns, heirs, executors and administrators, except
that Executive may not assign any of his duties hereunder and he may not assign any of his rights hereunder without the written
consent of the Company, which shall not be withheld unreasonably.

 

7.8            Choice
of Law. All questions concerning the construction, validity and interpretation of
this Agreement will be governed by the law of the State of Connecticut, without giving effect to choice of law principles.

 

    	 	 

     

    

 

 

7.9            Resolution
of Disputes. The parties recognize that litigation in federal or state courts or
before federal or state administrative agencies of disputes arising out of Executive’s employment with the Company or out
of this Agreement, or Executive’s termination of employment or termination of this Agreement, may not be in the best interests
of either Executive or the Company, and may result in unnecessary costs, delays, complexities, and uncertainty. The parties agree
that any dispute between the parties arising out of or relating to the negotiation, execution, performance or termination of this
Agreement or Executive’s employment, including, but not limited to, any claim arising out of this Agreement, claims under
Title VII of the Civil Rights Act of 1964, as amended, the Civil Rights Act of 1991, the Age Discrimination in Employment Act
of 1967, the Americans with Disabilities Act of 1990, Section 1981 of the Civil Rights Act of 1966, as amended, the Family
Medical Leave Act, the Employee Retirement Income Security Act, and any similar federal, state or local law, statute, regulation,
or any common law doctrine, whether that dispute arises during or after employment, shall be settled by binding arbitration in
accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration Association; provided
however, that this dispute resolution provision shall not apply to any separate agreements between the parties that do not
themselves specify arbitration as an exclusive remedy. The location for the arbitration shall be in Fairfield County, Connecticut.
Any award made by such panel shall be final, binding and conclusive on the parties for all purposes, and judgment upon the award
rendered by the arbitrators may be entered in any court having jurisdiction thereof. The arbitrators’ fees and expenses
and all administrative fees and expenses associated with the filing of the arbitration shall be borne by the Company; provided
however, that at Executive’s option, Executive may voluntarily pay up to one-half the costs and fees. The parties acknowledge
and agree that their obligations to arbitrate under this Section survive the termination of this Agreement and continue after
the termination of the employment relationship between Executive and the Company. The parties each further agree that the arbitration
provisions of this Agreement shall provide each party with its exclusive remedy, and each party expressly waives any right
it might have to seek redress in any other forum, except as otherwise expressly provided in this Agreement. By election arbitration
as the means for final settlement of all claims, the parties hereby waive their respective rights to, and agree not to, sue
each other in any action in a Federal, State or local court with respect to such claims, but may seek to enforce in court an arbitration
award rendered pursuant to this Agreement. The parties specifically agree to waive their respective rights to a trial by jury,
and further agree that no demand, request or motion will be made for trial by jury.

 

IN WITNESS WHEREOF, the
parties have executed this Executive Employment Agreement on the day and year first written above.

 

	CARA THERAPEUTICS, INC.	 	EXECUTIVE: 
	 	 	 
	 	 	 
	/s/ Derek Chalmers, Ph.D., D.Sc.	 	/s/ Tom Reilly
	(Signature)	 	(Signature)
	 	 	 
	By: Derek Chalmers, Ph.D., D.Sc.	 	By: Tom Reilly
	 	 	 
	 	 	 
	Title: President & CEO	 	 

 

    	 	 

     

    

 

 

Exhibit A

 

CFO POSITION DESCRIPTION

 

In this position, you will be a strategic partner to the President
and CEO and will work closely with the CEO, management team, and members of the Board of Directors to further create and build
value at the Company. As CFO, you will have primary responsibility for planning, implementing, managing and controlling all financial-related
activities of the Company, which include overall responsibility for finance, accounting, treasury, tax, foreign exchange, forecasting
and strategic planning, particularly with respect to investor relations (IR). You will also:

 

		·	Ensure that effective internal controls are in place and ensure effective cost controls and compliance with GAAP and applicable
federal, state and local regulatory laws and rules for financial and tax reporting.

 

		·	Work closely with the CEO, Audit Committee of the Board of Directors, outside accountants and outside counsel in the preparation
and coordination of all timely and accurate public company filings and documents.

 

		·	Ensure Company compliance with all Sarbanes-Oxley Section 404 requirements.

 

		·	Ensure audit coordination and public reporting in the U.S. under GAAP (principal accounting officer for SEC filings).

 

		·	Establish and manage key banking relationships.

 

		·	Act to provide oversight of financial operations to include regular financial statements, income statements, balance sheets
and cash flow statements, and the reporting of operational results as required to management, the Board of Directors, public shareholders
and the SEC.

 

		·	Work with the CEO and management team in preparing presentations to the Board of Directors, investors and other stakeholders
and work to effectively represent the Company both internally and externally to the investor and business communities, including
the Board of Directors, investors, partners, auditors, regulators and advisors.

 

		·	In coordination with the CEO, design and implement on overall IR strategy which will aim to derive a more institutionally –
related investor base and coordinate NDR activity which will raise Cara’s profile amongst the investment community.

 

		·	Participate in Cara’s business development activities related to out-licensing and in- licensing agreements as needed.

 

		·	Other duties consistent with the CFO position as assigned.

 

    	 	 

     

    

 

Exhibit B

 

Cara Therapeutics, Inc., At Will
Employment, Confidential Information, Invention Assignment, And Arbitration Agreement

 

    	 	 

     

    

 

Exhibit C

 

Release Agreement

 

This Release
Agreement (“Release”) is made by and between Cara Therapeutics, Inc. (the “Company”) and Tom Reilly
(“you”).   You and the Company entered into
an Employment Agreement dated                               (the “Employment Agreement”). You
and the Company hereby further agree as follows:

 

1.            A
blank copy of this Release was attached to the Employment Agreement as Exhibit C.

 

2.            Severance
Benefits. In connection with your separation from the Company, you are eligible for certain
severance benefits under Section 6 of the Employment Agreement for a termination without Cause [and a Change in Control
Termination]. In consideration for your execution, return and non-revocation of this Release, following the Release Date (as
defined in Section 4 below) the Company will provide severance benefits, in accordance with Section 6 of the Employment
Agreement, to you as follows:

 

(i)              an
amount equal to your current Base Salary for a period of [nine (9)] [three (3)] months following the Release Date (such
applicable period is referred to as the “Severance Period”), less applicable withholdings and deductions,
on the Company’s regular payroll dates;

 

(ii)              an
amount equal to 50% of the Target Bonus that you were eligible to receive during the year in which you were terminated without
Cause (if any) prorated for any partial year of employment on the basis of a 365-day year, payable in a lump sum on the later of
(x) the date annual performance bonuses are normally paid to other executives at the Company for that calendar year, or (y) the
Release Date, but in no event later than March 15 of the year following the year for which the Target Bonus is paid;

 

(iii)           provided
you timely elect and remain eligible for continued coverage under COBRA, the Company will pay you COBRA premiums for the coverage
that you and your eligible dependents had at the time of the separation from the Company until the earliest of: (x) [nine
(9)] [three (3)] months following the separation from the Company; (y) the date when you become eligible for substantially
equivalent health insurance coverage in connection with new employment or self-employment; or (z) the date you cease to be
eligible for COBRA continuation coverage for any reason; [and

 

(iv)            Notwithstanding
anything contained in your stock option or other equity award agreements to the contrary, upon a Change in Control Termination,
provided that your equity awards have been continued, assumed or substituted for by the Company or the acquirer or the surviving
entity in such Change in Control if such termination occurs after a Change in Control, then, effective as of the later of the
effective date of the Change in Control or the termination date, any unvested portion of the equity awards will vest in full.
For the purposes of this Release, “Change in Control” will have the same meaning and effect as “Change in Control”
is defined in the Company’s 2014 Equity Incentive Plan, as may be amended from time to time].

  

    	 	1.	 

     

    

 

3.            Release.
In exchange payments and other consideration under this Release, to which you would not
otherwise be entitled, and except as otherwise set forth in this Release, you, on behalf of yourself and, to the extent permitted
by law, on behalf of your spouse, heirs, executors, administrators, assigns, insurers, attorneys and other persons or entities,
acting or purporting to act on your behalf (collectively, the “Employee Parties”), hereby generally and completely
release, acquit and forever discharge the Company, its parents and subsidiaries, and its and their officers, directors, managers,
partners, agents, representatives, employees, attorneys, shareholders, predecessors, successors, assigns, insurers and affiliates
(the “Company Parties”) of and from any and all claims, liabilities, demands, contentions, actions, causes of action,
suits, costs, expenses, attorneys’ fees, damages, indemnities, debts, judgments, levies, executions and obligations of every
kind and nature, in law, equity, or otherwise, both known and unknown, suspected and unsuspected, disclosed and undisclosed, arising
out of or in any way related to agreements, events, acts or conduct at any time prior to and including the execution date of this
Release, including but not limited to: all such claims and demands directly or indirectly arising out of or in any way connected
with your employment with the Company or the termination of that employment; claims or demands related to salary, bonuses, commissions,
stock, stock options, or any other ownership interests in the Company, vacation pay, fringe benefits, expense reimbursements, severance
pay, or any other form of compensation; claims pursuant to any federal, state or local law, statute, or cause of action; tort law;
or contract law (individually a “Claim” and collectively “Claims”). The Claims you are releasing and waiving
in this Release include, but are not limited to, any and all Claims that any of the Company Parties:

 

		·	has violated its personnel policies, handbooks, contracts of employment, or covenants of good faith
and fair dealing;

 

		·	has discriminated against you on the basis of age, race, color, sex (including sexual harassment),
national origin, ancestry, disability, religion, sexual orientation, marital status, parental status, source of income, entitlement
to benefits, any union activities or other protected category in violation of any local, state or federal law, constitution, ordinance,
or regulation, including but not limited to: the Age Discrimination in Employment Act, as amended (“ADEA”); Title VII
of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991; 42 U.S.C. § 1981, as amended; the Equal Pay Act;
the Americans With Disabilities Act; the Genetic Information Nondiscrimination Act; the Family and Medical Leave Act; the Connecticut
Fair Employment Practices Act; the New Jersey Law Against Discrimination; the New Jersey Equal Pay Act; the New Jersey Conscientious
Employee Protection Act; the New Jersey Civil Rights Act; the New Jersey Family Leave Act; the New Jersey State Wage and Hour Law;
the New Jersey Wage Withholding Protection Law; the Employee Retirement Income Security Act; the Employee Polygraph Protection
Act; the Worker Adjustment and Retraining Notification Act; the Older Workers Benefit Protection Act; the anti-retaliation provisions
of the Sarbanes-Oxley Act, or any other federal or state law regarding whistleblower retaliation; the Lilly Ledbetter Fair Pay
Act; the Uniformed Services Employment and Reemployment Rights Act; the Fair Credit Reporting Act; and the National Labor Relations
Act; or

 

    	 	 	 

     

    

 

		·	has violated any statute, public policy or common law (including but not limited to Claims for
retaliatory discharge; negligent hiring, retention or supervision; defamation; intentional or negligent infliction of emotional
distress and/or mental anguish; intentional interference with contract; negligence; detrimental reliance; loss of consortium to
you or any member of your family and/or promissory estoppel).

 

Notwithstanding the foregoing, other than
events expressly contemplated by this Release you do not waive or release rights or Claims that may arise from events that occur
after the date this waiver is executed. Also excluded from this Release are any Claims which cannot be waived by law, including,
without limitation, any rights you may have under applicable workers’ compensation or unemployment laws and your right, if
applicable, to file or participate in an investigative proceeding of any federal, state or local governmental agency. Nothing in
this Release shall prevent you from filing, cooperating with, or participating in any proceeding or investigation before the Equal
Employment Opportunity Commission, United States Department of Labor, the National Labor Relations Board, the Occupational Safety
and Health Administration, the Securities and Exchange Commission or any other federal government agency, or similar state or local
agency (“Government Agencies”), or exercising any rights pursuant to Section 7 of the National Labor Relations
Act. You further understand this Release does not limit your ability to voluntarily communicate with any Government Agencies or
otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents
or other information, without notice to the Company. While this Release does not limit your right to receive an award for information
provided to the Securities and Exchange Commission, you understand and agree that, you are otherwise waiving, to the fullest extent
permitted by law, any and all rights you may have to individual relief based on any Claims that you have released and any rights
you have waived by signing this Release. If any Claim is not subject to release, to the extent permitted by law, you waive any
right or ability to be a class or collective action representative or to otherwise participate in any putative or certified class,
collective or multi-party action or proceeding based on such a Claim in which any of the Company Parties is a party. This Release
does not abrogate your existing rights under any Company benefit plan or any plan or agreement related to equity ownership in the
Company; however, it does waive, release and forever discharge Claims existing as of the date you execute this Release pursuant
to any such plan or agreement.

 

4.            Your
Acknowledgments and Affirmations / Effective Date of Release. You acknowledge that
you are knowingly and voluntarily waiving and releasing any and all rights you may have under the ADEA, as amended. You also
acknowledge and agree that (i) the consideration given to you in exchange for the waiver and release in this Release is
in addition to anything of value to which you were already entitled, and (ii) that you have been paid for all time
worked, have received all the leave, leaves of absence and leave benefits and protections for which you are eligible, and
have not suffered any on-the-job injury for which you have not already filed a Claim. You affirm that all of the decisions of
the Company Parties regarding your pay and benefits through the date of your execution of this Release were not
discriminatory based on age, disability, race, color, sex, religion, national origin or any other classification protected by
law. You affirm that you have not filed or caused to be filed, and are not presently a party to, a Claim against any of the
Company Parties. You further affirm that you have no known workplace injuries or occupational diseases. You acknowledge and
affirm that you have not been retaliated against for reporting any allegation of corporate fraud or other wrongdoing by any
of the Company Parties, or for exercising any rights protected by law, including any rights protected by the Fair Labor
Standards Act, the Family Medical Leave Act or any related statute or local leave or disability accommodation laws, or any
applicable state workers’ compensation law. You further acknowledge and affirm that you have been advised by this
writing that: (a) your waiver and release do not apply to any rights or Claims that may arise after the execution date
of this Release; (b) you have been advised hereby that you have the right to consult with an attorney prior to executing
this Release; (c) you have been given [twenty-one (21)/ forty-five (45)] days to consider this Release (although
you may choose to voluntarily execute this Release earlier and if you do you will sign the Consideration Period waiver
below); (d) you have seven (7) days following your execution of this Release to revoke this Release; and
(e) this Release shall not be effective until the date upon which the revocation period has expired unexercised (the
“Release Date”), which shall be the eighth day after this Release is executed by you.

 

    	 	 	 

     

    

 

5.            Return
of Company Property. Within ten (10) days of the effective date of the termination
of employment, you agree to return to the Company all Company documents (and all copies thereof) and other Company property then
in existence that you have had in your possession at any time, including, but not limited to, Company files, notes, drawings, records,
business plans and forecasts, financial information, specifications, computer-recorded information, tangible property (including,
but not limited to, computers), credit cards, entry cards, identification badges and keys; and, any materials of any kind that
contain or embody any proprietary or confidential information of the Company (and all reproductions thereof). Receipt of the
Severance Benefits described in paragraph 2 of this Release expressly conditioned upon return of all such Company Property.

 

6.            Confidentiality.
The provisions of this Release will be held in strictest confidence by you and will not
be publicized or disclosed in any manner whatsoever; provided, however, that: (a) you may disclose this Release in
confidence to your immediate family; (b) you may disclose this Release in confidence to your attorney, accountant, auditor,
tax preparer, and financial advisor; and (c) you may disclose this Release insofar as such disclosure may be required by law.
Notwithstanding the foregoing, nothing in this Release shall limit your right to voluntarily communicate with the Equal Employment
Opportunity Commission, United States Department of Labor, the National Labor Relations Board, the Securities and Exchange Commission,
other federal government agency or similar state or local agency or to discuss the terms and conditions of your employment with
others to the extent expressly permitted by Section 7 of the National Labor Relations Act.

 

7.            Proprietary
Information and Post-Termination Obligations. You acknowledge your continuing obligations
to the Company under the Cara Therapeutics, Inc., At Will Employment, Confidential Information, Invention Assignment,
And Arbitration Agreement. Proprietary and/or confidential information that is also a “trade secret,”
as defined by law, may be disclosed (A) if it 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. In addition, in the event that you file a lawsuit for retaliation by the Company for reporting a suspected
violation of law, you may disclose the trade secret to your attorney and use the trade secret information in the court
proceeding, if you: (A) file any document containing the trade secret under seal; and (B) do not disclose the trade
secret, except pursuant to court order.

 

    	 	 	 

     

    

 

8.            Non-Disparagement.
You agree not to disparage the Company, and the Company’s attorneys, directors,
managers, partners, employees, agents and affiliates, in any manner likely to be harmful to them or their business, business reputation
or personal reputation; provided that you may respond accurately and fully to any question, inquiry or request for information
when required by legal process. Notwithstanding the foregoing, nothing in this Release shall limit your right to voluntarily communicate
with the Equal Employment Opportunity Commission, United States Department of Labor, the National Labor Relations Board, the Securities
and Exchange Commission, other federal government agency or similar state or local agency or to discuss the terms and conditions
of your employment with others to the extent expressly permitted by Section 7 of the National Labor Relations Act.

 

9.            No
Admission. This Release does not constitute an admission by the Company of any wrongful
action or violation of any federal, state, or local statute, or common law rights, including those relating to the provisions of
any law or statute concerning employment actions, or of any other possible or claimed violation of law or rights.

 

10.            Breach.
You agree that upon any material breach of this Release you will forfeit all amounts paid
or owing to you under this Release. Further, you acknowledge that it may be impossible to assess the damages caused by your material
violation of the terms of paragraphs 5, 6, 7 and 8 of this Release and further agree that any threatened or actual material violation
or breach of those paragraphs of this Release will constitute immediate and irreparable injury to the Company. You therefore agree
that any such breach of this Release is a material breach of this Release, and, in addition to any and all other damages and remedies
available to the Company upon your breach of this Release, the Company shall be entitled to an injunction to prevent you from violating
or breaching this Release.

 

11.            Miscellaneous.
This Release, together with your Cara Therapeutics, Inc., At Will Employment, Confidential
Information, Invention Assignment, And Arbitration Agreement, constitute the complete, final and exclusive embodiment of the
entire agreement between you and the Company with regard to this subject matter. It is entered into without reliance on any promise
or representation, written or oral, other than those expressly contained herein, and it supersedes any other such promises, warranties
or representations. This Release may not be modified or amended except in a writing signed by both you and a duly authorized officer
of the Company. This Release will bind the heirs, personal representatives, successors and assigns of both you and the Company,
and inure to the benefit of both you and the Company, their heirs, successors and assigns. If any provision of this Release is
determined to be invalid or unenforceable, in whole or in part, this determination will not affect any other provision of this
Release and the provision in question will be modified by the court so as to be rendered enforceable. This Release will be deemed
to have been entered into and will be construed and enforced in accordance with the laws of the State of Connecticut as applied
to contracts made and performed entirely within the State of Connecticut.

 

 

    	 	 	 

     

    

 

 

	CARA THERAPEUTICS, INC.	 	
	 	 	 
	 	 	 
	By:	 	 	
	 	Derek Chalmers, Ph.D., D.Sc.	 	 
	 	President &
CEO	 	Date

  

I UNDERSTAND THAT THIS RELEASE INCLUDES
A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS, EVEN THOSE UNKNOWN CLAIMS THAT IF KNOWN BY ME, WOULD AFFECT MY DECISION TO ACCEPT THIS
RELEASE.

 

	EXECUTIVE	 	 
	 	 	 
	 	 	 
		 	 	
	 	Tom Reilly	 	Date

 

CONSIDERATION PERIOD

 

I, Tom Reilly,
understand that I have the right to take at least [21/] [45] days to consider whether to sign this Release, which I received
on                  ,
20 . If I elect to sign this Release before [21/] [45] days have passed, I understand I am to sign and date below
this paragraph to confirm that I knowingly and voluntarily agree to waive the [21/] [45]-day consideration period.

 

 

	AGREED:	 	 
	 	 	 
	 

         
	 	 
	Signature	 	 
	 

         
	 	 
	DateExhibit
10.1

 

FIRST
AMENDMENT TO 

Amended
and Restated Executive EMPLOYMENT AGREEMENT

 

This
FIRST AMENDMENT TO Amended and Restated Executive EMPLOYMENT AGREEMENT (this
“Amendment”), is entered into as of September 29, 2020 (the “Effective Date”),
by and between Rodney Keller (“Executive”) and AYRO, Inc., as successor in interest to DropCar, Inc.
(the “Company”), for the purpose of amending that certain Amended and Restated Executive Employment
Agreement, dated as of May 28, 2020, by and between Executive and the Company (the “Agreement”). Terms
used in this Amendment with initial capital letters that are not otherwise defined herein shall have the meanings ascribed to
such terms in the Agreement.

 

WHEREAS,
Section 10(k) of the Agreement provides that it may only be amended by a written agreement among the parties; and

 

WHEREAS,
the parties mutually desire to amend the Agreement to (i) change the form of certain equity awards from restricted stock units
to shares of restricted common stock of the Company, (ii) modify certain vesting conditions that apply to the restricted stock
award as described in the Agreement and (iii) to reduce the number of shares of restricted stock to be granted to Executive by
the number of stock options to be granted to him by the Company contemporaneously with this Amendment.

 

NOW,
THEREFORE, pursuant to Section 10(k) of the Agreement, in consideration of the mutual provisions, conditions, and covenants
contained herein, and other good and valuable consideration, the adequacy of which is hereby acknowledged, the parties hereby
agree as follows:

 

1. Section
5(c) of the Agreement is hereby deleted in its entirety and restated as follows:

 

(c)
Equity Award. Any stock options or other equity awards outstanding and held by Executive on the closing date of the Merger
(the “Outstanding Awards”) shall remain in place, subject to the terms and conditions of the award agreements
relating to such awards, provided, however that the option price and number of shares subject to such options and awards shall
be adjusted ratably pursuant to the Exchange Ratio (as defined in the Merger Agreement). In addition to the Outstanding Awards,
the Company agrees to grant Executive an additional award of 1,110,718 shares of restricted common stock of the Company (the “Awarded
Shares”), subject to adjustment for any future changes in capitalization, including, without limitation, any stock splits
or reverse stock splits, less the number of stock options granted by the Company to Executive in September 2020 (the “September
Options”), subject to the terms and conditions of this Amendment, the Company’s equity plan and form of restricted
stock award agreement, which terms shall include, without limitation: (i) forfeiture of any unvested Awarded Shares on Executive’s
termination of employment for any reason; and (ii) vesting of the Awarded Shares in accordance with the following 2020 AYRO performance
milestones and assumptions (the successful completion of each shall be determined by the Company in its reasonable discretion):

 

i. 33.33%
of the Awarded Shares (rounded down for any fractional shares and reduced by a pro rata number of the September Options) will
vest upon the Company’s receipt of purchase orders for at least 200 AYRO vehicles to be sold to Club Car Inc. in calendar
year 2020 with the following quarterly targets 1Q2020 - 11 vehicles; 2Q2020 – 39 vehicles; 3Q2020 – 60 vehicles; 4Q2020
90 vehicles, provided, that (1) on or before December 16, 2019, a definitive written agreement with respect to such purchase is
executed, and at least $1,000,000 of the purchase has been received by the Company; (2) on the closing date of the Merger, AYRO
secures borrowing based on a line of credit of $4,000,000 to support inventory purchase flow in line with the Company’s
2020 budget; (3) the Merger’s closing date is on or before May 28, 2020 and the Company receives additional funding of at
least $5,000,000 is received by such date; (4) in the event the closing date of the Merger is after January 25, 2020, AYRO and
the investors mutually agree on earlier release of approved funding of at least $500,000; and (5) the Company receives additional
funding from third parties of at least $1,500,000 on or before September 30, 2020 (subsections (1) through (5) are referred to
herein in as the “Assumptions”);

 

    	 

    	 

    

 

ii. An
additional 33.33% of the Awarded Shares (rounded down for any fractional shares and reduced by a pro rata number of the September
Options) shall vest on the date (1) that the Company enters into a definitive written agreement with Club Car Inc./Ingersoll Rand,
Karma Automotive, Wanxiang Group Corporation, or any other strategic investor as may be approved by the Board, in its sole discretion
(each, a “Strategic Investor”), on or before December 31, 2020 that results in a minimum equity investment
of $1,500,000 payable to AYRO solely in cash, (2) such Strategic Investor’s agreement to publicly disclose such investment,
and (3) the Assumptions have been achieved;

 

iii. The
remaining Awarded Shares reduced by a pro rata number of the September Options shall vest on the date that the Company achieves
a minimum average valuation of 25% higher for twenty (20) out of the thirty (30) calendar days following the end of the first
full quarter after the closing date of the Merger than the Company’s valuation on the date of the Merger, provided that
the Assumptions have been achieved by such date; and

 

iv. Notwithstanding
anything herein to the contrary, in the event the Company enters into at least two investment transactions pursuant to definitive
written agreements with one or more Strategic Investors on or before December 31, 2020 that result in a combined minimum equity
investment of at least $4,500,000 payable to AYRO solely in cash, then all unvested Awarded Shares and all unvested September
Options shall thereupon immediately become fully vested without further action by the parties and shall no longer be subject to
the vesting requirements set forth in Sections 5(c)(i), 5(c)(ii) and 5(c)(iii) above or the vesting schedule of the Stock Option
Agreement entered into by the Executive and the Company with respect to the September Options. Awarded Shares that become vested
hereunder shall be delivered to Executive within ten (10) days following the vesting date.

 

In
the event the performance milestones and assumptions are not achieved with respect to a tranche of Awarded Shares, such Awarded
Shares shall be forfeited.

 

2. Section
9(c)(ii)(3) of the Agreement is hereby amended by deleting said section in its entirety and replacing it with the following new
Section 9(c)(ii)(3):

 

(3) All
outstanding stock options and Awarded Shares granted to Executive pursuant to Section 5(c) hereof shall be fully and immediately
vested, to the extent not previously vested, without further action by the parties and shall no longer be subject to the vesting
requirements set forth in Sections 5(c)(i), 5(c)(ii) and 5(c)(iii) above. Awarded Shares that become vested hereunder shall be
delivered to Executive within ten (10) days following the date that the Release is effective.

 

3. Except
as expressly amended by this Amendment, the Agreement shall remain in full force and effect in accordance with the provisions
thereof.

 

[Remainder
of the Page Intentionally Left Blank;

Signature
Page Follows]

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the parties have executed this Agreement to be effective as of the Effective Date.

 

	 	EXECUTIVE: 
	 	 	 
	 	/s/
    Rodney Keller
	 	Rodney Keller
	 	 	 
	 	THE COMPANY: 
	 	 	 
	 	By:	/s/
    Joshua Silverman
	 	Name:	Joshua
    Silverman
	 	Title:	Chairman
    of the Board of Directors

 

Signature
                                         Page to First Amendment to 

Amended
and Restated Executive Employment Agreement

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