Document:

Exhibit 10.16

 

February 13, 2018

 

Bruce Rogers

 

 

		Re:	Offer Letter

 

Dear Bruce:

 

On behalf of SITO Mobile, Ltd. (the “Company”),
1 am pleased to offer you full time employment with the Company in the role and on the terms described below.

 

Position: You will start in a full-time the position
as the SVP and Managing Director of SITO Institute for Consumer Behavior & Location Science. In this position you will
be located at our office at Jersey City, NJ. You will initially be reporting to William Seagrave, COO. Your start date will be
March 1, 2018.

 

Salary: The starting salary for this position is $250,000
annually, paid semi-monthly on the 5th and 20th of each month subject to normal payroll taxes and other applicable
withholdings and deductions. Your position with the Company will be classified as exempt from the overtime and other requirements
of federal and state law.

 

Bonus: In this position you will also have the ability
to earn an annual bonus as set forth below subject to successful achievement of goals established between you and your manager
within 30 days of your start date.

 

		●	On target earnings (“OTE”) of $425.000

 

		●	$175.000 Bonus

 

Equity: In your position, subject to the approval of
the Company’s Board of Directors, you will be granted a stock option grant of 50,000 shares with a strike price as determined
by the Board at the time of approval. The vesting of the option grant will occur over a 4 year period during your continuous employment
with Company. The option grant shall be governed by the terms and conditions of the Company’s Stock Plan that will be provided
to you when the option is granted.

 

Benefits: Effective March 1, 2018, as a full-time employee,
you may participate in our group health insurance plan, including coverage for medical, vision, dental, long-term disability and
term life insurance. Enrollment forms will be provided to you by the Company’s benefits coordinator. To remain eligible,
you must work a minimum of 20 hours per week.

 

     

     

    

 

As an eligible employee, you may enroll in an individual or
family contract. The Company currently pays 70% of the premium for an employee’s medical, vision and dental benefit plan
coverage and you are responsible for 30% of the premiums. Should you choose medical and vision coverage for only yourself, the
Company will pay 100% of the premium up to $500.00per month and you are responsible for 30% of the premium in excess of $500.00.
Your portion of any premiums will be deducted from payroll. The Company currently pays 100% of the premium for long- term disability
and term life insurance coverage for you.

 

Should this summary in any way conflict with the actual verbiage
of the health insurance plan, the health insurance plan will supersede this summary. The Company reserves the right to change or
discontinue any employee benefit, policy or practice at any time.

 

Paid Time Off: You will be entitled to 15 days per year
of paid time off, which consists of 10 vacation days and 5 personal days (plus Company observed holidays) according to the Company’s
standard policies, subject to any and all accrual caps imposed by such policies (as they may be revised from time to time). Vacation
time is calculated according to your anniversary date and is accrued at a rate of 0.0384 days per day, starting from your first
day of work. Vacation time may be taken as it accrues with management approval. Whenever possible, requests should be submitted
at least 30 days in advance to your manager. Requests will be reviewed and granted whenever possible, workload permitting. Personal
time, which covers absences due to illnesses and personal matters, is calculated according to your anniversary date and is accrued
at a rate of 0.0192 days per day, starting from your first day of work.

 

401(k)Plan: You are immediately eligible to enroll in
the Company’s 401(k) plan and request to rollover your other 401(k) plan holdings into the Company’s plan.

 

Employment Relationship: Your employment with the Company
is for no specific period of time and will be “at will,” meaning that either you or the Company may terminate your
employment at any time and for any reason, with or without cause. Any contrary representations which may have been made to you
are superseded by this offer and nothing in this agreement shall be interpreted to contradict such at will employment. This is
the full and complete agreement between you and the Company on this term. Although your job duties, title, compensation and benefits,
as well as the Company’s personnel policies and procedures, may change from time to time, the “at will” nature
of your employment may only be changed in an express written agreement signed by you and the Company’s Chief Executive Officer.

 

Confidential Information and Invention Assignment Agreement:
Like all Company employees, you will be required, as a condition of your acceptance of this offer and commencement of employment
with the Company, to sign and deliver to the Company the Company’s enclosed standard Confidential Information and Invention
Assignment Agreement.

 

 

SITO Mobile, Ltd. Newport Corporate Center
100 Town Square Place, Suite 204, Jersey City,

NJ 07310 Tel: 201-275-0551 www.sitomobile.com

 

    1

     

    

 

You understand and agree that by accepting this offer of employment,
you represent to the Company that your acceptance will not breach any other agreement to which you are a party and which you have
not disclosed in writing to the Company before signing this letter agreement, and that you have not, and will not during the term
of your employment with the Company, cause a conflict with any of the provisions of this letter or the Company’s policies.
You are not to bring with you to the Company, or use or disclose to any person associated with the Company, any confidential or
proprietary information belonging to any former employer or other person or entity with respect to which you owe an obligation
of confidentiality under any agreement or otherwise. The Company does not need and will not use such information and we will assist
you in any way possible to preserve and protect the confidentiality of proprietary information belonging to third parties. Also,
we expect you to abide by any obligations to refrain from soliciting any person employed by or otherwise associated with any former
employer and suggest that you refrain from having any contact with such persons until such time as any non- solicitation obligation
expires.

 

On your first day of employment, you will be provided with additional
information about the objectives and policies, benefit programs and general employment conditions. As required by law, your employment
with the Company is also contingent upon your providing legal proof of your identity and authorization to work in the United States.

 

If you wish to accept this offer, please sign and date both
of this letter and the enclosed Confidential Information and Invention Assignment Agreement and return them to me. This offer,
if not accepted, will expire at the close of business on February 14, 2018.

 

 

SITO Mobile, Ltd. Newport Corporate Center
100 Town Square Place, Suite 204, Jersey City,

NJ 07310 Tel: 201-275-0551 www.sitomobile.com

 

    2

     

    

 

We are pleased to have you join the SITO Mobile team as a member
of what we feel is an organization that offers each employee an opportunity for personal and professional development. If you have
any questions, please do not hesitate to contact me at 201.275.0551. We look forward to working with you in the future and hope
you will find your employment at the Company a rewarding experience.

 

	Very truly yours,	 	ACCEPTED AND AGREED:
	 	 	 
	SITO MOBILE SOLUTIONS, INC.	 	Bruce Rogers
	 	 	 	 	 
	By:	/s/ Mark Del Priore	 	Signature 	/s/ Bruce Rogers
	Name: 	Mark Del Priore	 	 
	Title:	Chief Financial Officer	 	 
	 	 	 	 
	By:	/s/ Tom Pallack	 	 
	Name:	Tom Pallack	 	 
	Title:	Chief Executive Officer	 	 

 

 

SITO Mobile, Ltd. Newport Corporate Center
100 Town Square Place, Suite 204, Jersey City,

NJ 07310 Tel: 201-275-0551 www.sitomobile.com

 

    3

     

    

 

Attachment A

 

Confidential Information and Invention Assignment
Agreement

 

SITO MOBILE
LTD. CONFIDENTIAL INFORMATION AND

INVENTION ASSIGNMENT AGREEMENT

 

As a condition of my becoming employed (or
my employment being continued) by SITO Mobile, Ltd. (including any of its subsidiaries) (together, the “Company”),
and in consideration of my employment relationship with the Company and my receipt of the compensation now and hereafter paid to
me by the Company, I agree to the following:

 

1. Confidential Information.

 

(a) Company Information. I
agree at all times during the Relationship and thereafter, to hold in strictest confidence, and not to use, except for the benefit
of the Company to the extent necessary to perform my obligations to the Company under the Relationship, or to disclose to any person,
firm, corporation or other entity without written authorization of the Board of Directors of the Company, any Confidential Information
of the Company which 1 obtain or create. I further agree not to make copies of such Confidential Information except as authorized
by the Company. I understand that “Confidential Information” means any Company proprietary information, technical
data, trade secrets or know-how, including, but not limited to, research, product plans, products, services, suppliers, and customer
information (including, but not limited to, any information about customers of the Company on whom I called or with whom 1 became
acquainted during the Relationship that would not otherwise be publicly available), prices and costs, markets, software, developments,
inventions, laboratory notebooks, processes, formulas, technology, designs, drawings, engineering, hardware configuration information,
marketing, licenses, finances, budgets or other business information disclosed to me by the Company either directly or indirectly
in writing, orally or by drawings or observation of parts or equipment or created by me during the Relationship, whether or not
during working hours. 1 understand that Confidential Information includes, but is not limited to, information pertaining to any
aspect of the Company’s business which is either information not known by actual or potential competitors of the Company
or other third parties not under confidentiality obligations to the Company, or is otherwise proprietary information of the Company
or its customers or suppliers, whether of a technical nature or otherwise. I further understand that Confidential Information does
not include any of the foregoing items (i) of which I had knowledge prior to my employment with the Company, or (ii) which has
become publicly and widely known and made generally available through no wrongful act of mine.

 

(b) Prior Obligations. I represent
that my performance of all terms of this Agreement as an employee of the Company has not breached and will not breach any agreement
to keep in confidence proprietary information, knowledge or data acquired by me prior or after the commencement of the Relationship,
and I will not disclose to the Company or use any inventions, confidential or non-public proprietary information or material belonging
to any current or former client or employer or any other party. I will not induce the Company to use any inventions, confidential
or non-public proprietary information, or material belonging to any current or former client or employer or any other party. I
acknowledge and agree that I have listed on Exhibit A hereto all agreements (e.g., non-competition agreements, non-solicitation
of customers agreements, non-solicitation of employees agreements, confidentiality agreements, inventions agreements, etc.) with
a current or former employer, or any other person or entity, that may restrict my ability to accept employment with the Company
or my ability as an employee to recruit or engage customers or service providers on behalf of the Company, or otherwise relate
to or restrict my ability to perform my duties as an employee of the Company or any obligation I may have to the Company.

 

 

SITO Mobile, Ltd. Newport Corporate Center
100 Town Square Place, Suite 204, Jersey City,

NJ 07310 Tel: 201-275-0551 www.sitomobile.com

 

    4

     

    

 

(c) Third Party Information.
I recognize that the Company has received and in the future will receive confidential or proprietary information from third parties
subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain
limited purposes. I agree to hold all such confidential or proprietary information in the strictest confidence and not to disclose
it to any person, firm or corporation or to use it except as necessary in carrying out my work for the Company consistent with
the Company’s agreement with such third party.

 

2. Inventions.

 

(a) Inventions Retained and Licensed.
I have attached hereto, in Exhibit A, a list describing with particularity all inventions, original works of authorship,
developments, improvements, and trade secrets which were made by me before the commencement of the Relationship (collectively referred
to as “Prior Inventions”), which belong solely to me or belong to me jointly with another, which relate in any
way to any of the Company’s proposed businesses, products or research and development, and which are not assigned to the
Company hereunder; or, if no such list is attached, 1 represent that there are no such Prior Inventions. If, in the course of the
Relationship, I incorporate into a Company product, process or machine a Prior Invention owned by me or in which 1 have an interest,
the Company is hereby granted and shall have a non-exclusive, royalty-free, irrevocable, perpetual, worldwide license (with the
right to sublicense) to make, have made, copy, modify, make derivative works of, use, sell and otherwise distribute such Prior
Invention as part of or in connection with such product, process or machine.

 

(b) Assignment of Inventions. I agree
that I will promptly make full written disclosure to the Company, will hold in trust for the sole right and benefit of the Company,
and hereby assign to the Company, or its designee, ail my right, title and interest throughout the world in and to any and all
inventions, original works of authorship, developments, concepts, know-how, improvements or trade secrets, whether or not patentable
or registrable under copyright or similar laws, which I may solely or jointly conceive or develop or reduce to practice, or cause
to be conceived or developed or reduced to practice, during the Relationship, which relate to the messaging/notification business
(collectively referred to as “Inventions”), except as provided in Section 2(e) below. I further acknowledge
that all Inventions which are made by me (solely or jointly with others) within the scope of and during the Relationship are “works
made for hire” (to the greatest extent permitted by applicable law) and are compensated by my salary, unless regulated
otherwise by the mandatory law of the state of New Jersey.

 

 

SITO Mobile, Ltd. Newport Corporate Center
100 Town Square Place, Suite 204, Jersey City,

NJ 07310 Tel: 201-275-0551 www.sitomobile.com

 

    5

     

    

 

(c) Maintenance of Records. I agree
to keep and maintain adequate and current written records of all Inventions made by me (solely or jointly with others) during the
Relationship. The records may be in the form of notes, sketches, drawings, flow charts, electronic data or recordings, laboratory
notebooks, and any other format. The records will be available to and remain the sole property of the Company at all times. I agree
not to remove such records from the Company’s place of business except as expressly permitted by Company policy which may,
from time to time, be revised at the sole election of the Company for the purpose of furthering the Company’s business. I
agree to return all such records (including any copies thereof) to the Company at the time of termination of the Relationship as
provided for in Section 3.

 

(d) Patent and Copyright Rights.
I agree to assist the Company, or its designee, at its expense, in every proper way to secure the Company’s, or its designee’s,
rights in the Inventions and any copyrights, patents, trademarks, mask work rights, moral rights, or other intellectual property
rights relating thereto in any and all countries, including the disclosure to the Company or its designee of all pertinent information
and data with respect thereto, the execution of all applications, specifications, oaths, assignments, recordations, and all other
instruments which the Company or its designee shall deem necessary in order to apply for, obtain, maintain and transfer such rights,
or if not transferable, waive such rights, and in order to assign and convey to the Company or its designee, and any successors,
assigns and nominees the sole and exclusive rights, title and interest in and to such Inventions, and any copyrights, patents,
mask work rights or other intellectual property rights relating thereto. I further agree that my obligation to execute or cause
to be executed, when it is in my power to do so, any such instrument or papers shall continue after the termination of this Agreement
until the expiration of the last such intellectual property right to expire in any country of the world. If the Company or its
designee is unable because of my mental or physical incapacity or unavailability or for any other reason to secure my signature
to apply for or to pursue any application for any United States or foreign patents, copyright, mask works or other registrations
covering Inventions or original works of authorship assigned to the Company or its designee as above, then I hereby irrevocably
designate and appoint the Company and its duly authorized officers and agents as my agent and attorney in fact, to act for and
in my behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further the application
for, prosecution, issuance, maintenance or transfer of letters patent, copyright or other registrations thereon with the same legal
force and effect as if originally executed by me. I hereby waive and irrevocably quitclaim to the Company or its designee any and
all claims, of any nature whatsoever, which I now or hereafter have for infringement of any and all proprietary rights assigned
to the Company or such designee.

 

(e) Exception for Assignments.
I understand that the provisions of this Agreement requiring assignment of Inventions to the Company do not apply to any concepts
or ideas developed prior to my employment by the Company, or to any Invention which qualifies fully under the provisions of any
applicable New Jersey limiting an employer’s right to require that Inventions created in certain circumstances be assigned
to the employer. I will advise the Company promptly in writing of any inventions that I believe meet such provisions and are not
otherwise disclosed on Exhibit A.

 

 

SITO Mobile, Ltd. Newport Corporate Center
100 Town Square Place, Suite 204, Jersey City,

NJ 07310 Tel: 201-275-0551 www.sitomobile.com

 

    6

     

    

 

3. Company Property; Returning Company
Documents.

 

I acknowledge and agree that I have no expectation
of privacy with respect to the Company’s telecommunications, networking or information processing systems (including, without
limitation, stored company files, e-mail messages and voice messages) and that my activity and any files or messages on or using
any of those systems may be monitored at any time without notice. 1 further agree that any property situated on the Company’s
premises and owned by the Company, including disks and other storage media, filing cabinets or other work areas, is subject to
inspection by Company personnel at any time with or without notice. I agree that, at the time of termination of the Relationship,
I will deliver to the Company (and will not keep in my possession, recreate or deliver to anyone else) any and all devices, records,
data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, laboratory notebooks, materials,
flow charts, equipment, other documents or property, or reproductions of any of the aforementioned items developed by me pursuant
to the Relationship or otherwise belonging to the Company, its successors or assigns. In the event of the termination of the Relationship,
I agree to sign and deliver the “Termination Certification” attached hereto as Exhibit B; however, my
failure to sign and deliver the Termination Certification shall in no way diminish my continuing obligations under this Agreement.

 

4. Notification to Other Parties.

 

(a) Employee. In the event
that I leave the employ of the Company, I hereby consent to notification by the Company to my new employer about my rights and
obligations under this Agreement.

 

(b) Consultants. I hereby
grant consent to notification by the Company to any other parties besides the Company with whom I maintain a consulting relationship,
including parties with whom such relationship commences after the effective date of this Agreement, about my rights and obligations
under this Agreement.

 

5. Solicitation of Employees. Consultants
and Other Parties.

 

I agree that, during the Relationship and
for a period of 12 months immediately following the termination of the Relationship for any reason, whether with or without cause,
I shall not either directly or indirectly: (i) solicit, induce, recruit or encourage any of the Company’s current (as
of the time of any such solicitation, inducement, recruitment, or encouragement) employees or consultants to terminate their relationship
with the Company, or (ii) attempt to solicit, induce, recruit, encourage or take away current (as of the time of any such
solicitation, inducement, recruitment, encouragement or taking away) employees or consultants of the Company, either for myself
or for any other person or entity, except that it shall not be a violation of this provision to place an advertisement in any newspaper
or trade publication, or to make any other non- individually targeted solicitations, Further, during the Relationship and at any
time following termination of the Relationship for any reason, with or without cause, I shall not use any Confidential Information
of the Company to attempt to negatively influence any of the Company’s clients or customers from purchasing Company products
or services or to solicit or influence or attempt to influence any client, customer or other person either directly or indirectly,
to direct his or its purchase of products and/or services to any person, firm, corporation, institution or other entity in competition
with the business of the Company.

 

 

SITO Mobile, Ltd. Newport Corporate Center
100 Town Square Place, Suite 204, Jersey City,

NJ 07310 Tel: 201-275-0551 www.sitomobile.com

 

    7

     

    

 

6. Representations and Covenants.

 

(a) Facilitation of Agreement.
I agree to execute promptly any proper oath or verify any proper document required to carry out the terms of this Agreement
upon the Company’s written request to do so.

 

(b) Conflicts. I represent
that my performance of all the terms of this Agreement does not and will not breach any agreement I have entered into, or will
enter into with any third party, including without limitation any agreement to keep in confidence proprietary information acquired
by me in confidence or in trust prior to commencement of my Relationship with the Company. I represent that I do not presently
perform or intend to perform, during the term of the my employment, consulting or other services for, and I am not presently employed
by and have no intention of being employed by, companies who businesses or proposed businesses in any way involve products or services
which would be competitive with the Company’s products or services, or those products or services proposed or in development
by the Company during the term of my employment. If, however, my employment with the Company is terminated for any reason, I agree
that, I will not consult, become employed by, or otherwise provide services to, and provide information to the companies listed
on Exhibit B for a period of two years from my last day of employment with the Company.

 

(c) Voluntary Execution. I
certify and acknowledge that I have carefully read all of the provisions of this Agreement and that I understand and will fully
and faithfully comply with such provisions.

 

7. General Provisions.

 

(a) Governing Law. The validity,
interpretation, construction and performance of this Agreement shall he governed by the laws of the State of New Jersey, without
giving effect to the principles of conflict of laws.

 

(b) Entire Agreement. This
Agreement sets forth the entire agreement and understanding between the Company and me relating to the subject matter herein and
merges all prior discussions between us. No modification or amendment to this Agreement, nor any waiver of any rights under this
Agreement, will be effective unless in writing signed by both parties. Any subsequent change or changes in my duties, obligations,
rights or compensation will not affect the validity or scope of this Agreement.

 

(c) Severability. If one or
more of the provisions in this Agreement are deemed void by law, then the remaining provisions will continue in full force and
effect.

 

(d) Successors and Assigns. This
Agreement will be binding upon my heirs, executors, administrators and other legal representatives, and my successors and assigns,
and will be for the benefit of the Company, its successors, and its assigns.

 

(e) Survival. The provisions
of this Agreement shall survive the termination of the Relationship.

 

 

SITO Mobile, Ltd. Newport Corporate Center
100 Town Square Place, Suite 204, Jersey City,

NJ 07310 Tel: 201-275-0551 www.sitomobile.com

 

    8

     

    

 

(f) Remedies. I acknowledge
and agree that violation of this Agreement by me may cause the Company irreparable harm, and therefore agree that the Company will
be entitled to seek extraordinary relief in court, including but not limited to temporary restraining orders, preliminary injunctions
and permanent injunctions and in addition to and without prejudice to any other rights or remedies that the Company may have for
a breach of this Agreement.

 

(g) ADVICE OF COUNSEL. I
ACKNOWLEDGE THAT, IN EXECUTING THIS AGREEMENT, I HAVE HAD THE OPPORTUNITY TO SEEK THE ADVICE OF INDEPENDENT LEGAL COUNSEL,
AND I HAVE READ AND UNDERSTOOD ALL OF THE TERMS AND PROVISIONS OF THIS AGREEMENT. THIS AGREEMENT SHALL NOT BE CONSTRUED AGAINST
ANY PARTY BY REASON OF THE DRAFTING OR. PREPARATION HEREOF.

 

[Signature Page Follows]

 

 

SITO Mobile, Ltd. Newport Corporate Center
100 Town Square Place, Suite 204, Jersey City,

NJ 07310 Tel: 201-275-0551 www.sitomobile.com

 

    9

     

    

 

The parties have executed this Confidential
Information and Invention Assignment Agreement on the respective dates set forth below:

 

	Company:	 	Bruce Rogers:

an Individual
	 	 	 
	SITO MOBILE SOLUTIONS, INC.	 	 
	 	 	 
	By:	/s/ Tom Pallack	 	Signature 	/s/ Bruce Rogers
	Name: 	Tom Pallack	 	Date:	2/20/18
	Title:	CEO	 	 	 
	Date:	2/20/18	 	 	 

 

 

SITO Mobile, Ltd. Newport Corporate Center
100 Town Square Place, Suite 204, Jersey City,

NJ 07310 Tel: 201-275-0551 www.sitomobile.com

 

    10

     

    

 

EXHIBIT
A

 

LIST OF
RESTRICTIVE AGREEMENTS UNDER SECTION l(b); LIST OF

PRIOR INVENTIONS AND ORIGINAL WORKS OF AUTHORSHIP

EXCLUDED UNDER SECTION 5

 

 

	Title
    of Agreement	Date	Nature
    of Restriction
	 	  
	 

 

 

	Title of Invention, etc.	Date	Identifying Number or Brief Description

 

 

☒ No restrictive agreements, and no inventions or improvements

 

☐ Additional Sheets Attached

 

Signature of Employee:     /s/ Bruce H. Rogers      

 

Print Name of Employee:   Bruce H. Rogers            

 

Date: 2/20/18        

 

 

SITO Mobile, Ltd. Newport Corporate Center
100 Town Square Place, Suite 204, Jersey City,

NJ 07310 Tel: 201-275-0551 www.sitomobile.com

 

    11

     

    

 

EXHIBIT
B

 

LIST OF
COMPANIES

IN REFERENCE TO UNDER SECTION 6(b)

 

Opera Place IQ

 

Verve

 

Xad/Groundtruth

 

ThinkNear

 

9th Decimal

 

☒ No conflicts

 

☐ Addition Sheets Attached

 

Signature of Employee:     /s/ Bruce H. Rogers      

 

Print Name of Employee:   Bruce H. Rogers            

 

Date: 2/20/18        

 

 

SITO Mobile, Ltd. Newport Corporate Center
100 Town Square Place, Suite 204, Jersey City,

NJ 07310 Tel: 201-275-0551 www.sitomobile.com

 

 

12EX-10.22

 Exhibit 10.22 

CONFIDENTIAL SETTLEMENT MATERIAL SUBJECT TO FRE 408 
  

			
	SETTLEMENT TERM SHEET	  	
		
	Confidentiality	  	Standard confidentiality provision
		
	Inadmissibility of Settlement Negotiations	  	All discussions, communications, and materials exchanged in the course of the party’s negotiation pursuant to and agreed upon through this term sheet shall be protected by Federal Rule of Evidence 408 and all equivalent
state and other local rules.
		
	 Time Frame for:
  

1.  Negotiated Agreement
  

2.  Term Sheet
	  	 1.  120 days from date of execution.

 
 Period can be extended or shortened by mutual agreement.

 
 Parties have tentatively agreed to meet on the following dates to
initiate the negotiation and will in good faith schedule further meetings thereafter:
  

•   Call: February 13

 
 •   Meeting: March 11
(China)
  
 •   Meeting:
March 19 (NY)
  

•   Meeting: May 14-16 (NY)

 
 •   Meeting: June 17-18 (NY)
  
 Parties have agreed
to reinstate biweekly calls between the parties.

		
	Covenant re: special distributions	  	 UBI will covenant not to make dividend payments, distribute or otherwise encumber LifeScan lump sum or engage in M&A transactions
(subject to a “fiduciary out” with respect to M&A transactions) during the period determined for negotiated agreement. (See Rider)
  

This covenant will be subject to extension by mutual agreement.

  
 1 

			
	Service of Existing Customers and Commercialization of New Customers	  	 The Collaboration and Supply Agreements and all obligations thereunder continue during the period determined for the negotiated
agreement.
  
 Obligations of Siemens to apply Commercially Reasonable efforts and to
apply reasonably necessary resources are suspended for the parties’ agreements during the period determined for the negotiated agreement.

		
	Ongoing Work Regarding Prime	  	 The Collaboration Agreement and all obligations thereunder continue during the period determined for the negotiated agreement.

 
 Obligations of UBI to apply Commercially Reasonable efforts and to apply reasonably
necessary resources are suspended during the period determined for the negotiated agreement.

		
	Freeze of Section 14.1 ADR Provision and Preservation of All Parties’ Rights	  	Freeze period ends ten days prior to period determined for the negotiated agreement.
		
	Negotiation Obligation	  	Parties agree to negotiate in good faith regarding the business options as discussed in the mediation. (See “Business Proposals” sheet provided by UBI at Mediation).

  
 2 

 CONFIDENTIAL SETTLEMENT MATERIAL SUBJECT TO FRE 408 

Rider A 
  

	1.	 For the period determined for the negotiated agreement (the “Negotiation Period”), UBI and its
parents, affiliates or subsidiaries, and any successors and/or assigns (the “Company”): 

  

	 	a.	 Shall not declare, set aside or pay any dividends on, make any other distributions, or in any other way
encumber (whether in cash, securities or other property) in respect of any of the Company’s capital stock and/or any other assets, including, but not limited to, the LifeScan lump sum; redeem, repurchase or otherwise reacquire, split, reduce,
return, combine or reclassify its capital stock or otherwise change the capital structure of the Company (except with respect to employees’ exercise of their options or vesting of their restricted shares); prepay in any form any loans to any of
its parents, affiliates or subsidiaries; advance any loans to any of its parents, affiliates or subsidiaries (other than in the ordinary course with respect to HRL); engage in any transaction with its shareholders or related parties, including the
sale of a substantial asset to a substantial holder;1 reduce capital stock; engage in any share buy-backs; or otherwise encumber any material assets or
stock of the Company. 

  

	 	b.	 Shall not directly or indirectly, acquire or invest in or otherwise combine with in whole or in part (whether
by merger, consolidation, business combination, purchase, joint venture, partnership or any purchase of material assets outside the ordinary course, disposition of material assets or stock of the Company, or any similar transaction), or enter into
any binding agreement to effect any of the foregoing; 

  

	 	c.	 Shall not make capital expenditures and/or any operating distributions in an aggregate amount exceeding US
$4,000,000, approved by a proposal with consent by Siemens not to be unreasonably withheld (together with Paragraphs A and B above, the “Restricted Activities”), inclusive of on-going HRL
recapitalization; 

  

	 	d.	 Shall provide written notice to Siemens when LifeScan lump sum is received within twenty-four hours of receipt
of payment; 

  

	 	e.	 Shall ensure that the LifeScan lump sum is held in a segregated bank account, confirmed in writing to Siemens
within thirty-six hours after the LifeScan lump sum is received in Australia, and a copy of the Covenant is provided to the financial institution; 

 
  

	1 	 An employee of Viburnum Funds Pty Ltd has on occasions been seconded to Universal Biosensors to assist the
Company on strategic matters. During this period Viburnum Funds Pty Ltd continue to pay all the salary entitlements of the seconded person. Universal Biosensors is solely responsible for the reimbursement of certain expenditure such as travel and
rental whilst the employee is on secondment. The total expenditure reimbursed by the Company to Viburnum Funds Pty Ltd as at December 31, 2018 was A$21,716. 

  
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	2.	 Fiduciary Out. 

  

	 	a.	 For the avoidance of doubt, nothing in the agreement will prevent UBI’s board of directors from
considering or engaging in any M&A sales transaction referenced in 1.b. if the UBI’s board of directors determines, in good faith, that not taking such action would be inconsistent with the board of director’s fiduciary duties under
applicable law. 

  

  
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 CONFIDENTIAL SETTLEMENT MATERIAL SUBJECT TO FRE 408 

 

	3.	 Injunctive Relief and Specific Performance. 

 

	 	a.	 The parties hereto agree that irreparable damage would occur and that the parties would not have any adequate
remedy at law in the event that any of the provisions of this Covenant were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties hereto shall be entitled to seek an injunction or
injunctions to prevent breaches of this Agreement and to seek to enforce specifically the terms and provisions of this Agreement, and the Company will waive jurisdictional defenses. 

 

	4.	 Potential Negotiated Agreement Discussion Points — Non-Binding

  

			
	Innovin	  	Subject to approval of Licensor, the parties will agree to substantially the same terms as the draft agreement provided by Siemens.
		
		  	Payment will be in the form of a license fee and royalties.
		
	Service of Existing Customers	  	Siemens to continue selling to existing customers. (Manufacturing will continue.)
		
	Consideration	  	TBD

  

  
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 This term sheet is effective as of the date of the last signatory below. 

 

									
	Universal Biosensors, Inc.	 		 	Siemens Healthcare Diagnostics Inc.
			
	 /s/ Rick Legleiter
	 		 	 /s/ Christoph Pedain

	By: Rick Legleiter	 		 	By: Christoph Pedain
			
	 /s/ Craig Coleman
	 		 	Date: 8 Feb 2019
	By: Board Chairman	 		 		 	
			
	Date: 8 Feb 2019	 		 	Siemens Healthcare Diagnostics Inc.
				
		 		 		 	 /s/ VIVEK MEHROTRA

		 		 		 	By: VIVEK MEHROTRA
				
		 		 		 	Date: Feb 8, 2019
				
	Universal Biosensors Pty Ltd.	 		 		 	
				
	 /s/ Rick Legleiter
	 		 		 	
	By: Rick Legleiter	 		 		 	
				
	 /s/ Craig Coleman
	 		 		 	
	By: Board Chairman	 		 		 	
				
	Date: 8 Feb 2019	 		 		 	

  
 6

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