Document:

Exhibit

EXHIBIT 10.14

EXECUTIVE EMPLOYMENT AGREEMENT

         THIS EXECUTIVE EMPLOYMENT AGREEMENT (the "Agreement") is made and entered into this 20th day of March 20, 2017 between TASER International, Incorporated (the "Company"), located at 17800 North 85th Street, Scottsdale, Arizona 85255 and Jawad Ahsan residing at _____________________ (the "Executive"). The Effective Date of this Agreement shall be April 3, 2017; Executive’s first day of employment with the Company. 

RECITALS:

             WHEREAS, the Company wishes to provide for the employment of Executive as its Chief Financial Officer on the conditions, set forth herein; and

             WHEREAS, Executive desires to be assured of certain minimum compensation from Company for Executive's services during the term hereof and to be protected, and compensated, in the event of any change in control affecting the Company; and,

             WHEREAS, Company desires reasonable protection of Company's confidential business and technical information which has been developed by the Company in recent years and will be developed in the future at substantial expense.

             NOW, THEREFORE, in consideration of the mutual promises contained herein, the Company and Executive each intend to be legally bound, covenant and agree as follows:

1.      EMPLOYMENT. Upon the terms and conditions set forth in this Agreement, Company hereby employs Executive as its Chief Financial Officer. Except as expressly provided herein, the termination of this Agreement by either party shall also terminate Executive's employment by Company. Executive understands and acknowledges that his employment with the Company constitutes “At Will” employment and may be terminated by either party pursuant to the terms of this Agreement.  

2.       DUTIES. Executive shall be responsible for directing and managing the Company’s financial strategy, accounting, finance, treasury, internal controls and financial reporting requirements. Executive shall devote his full-time and best efforts to the Company and shall fulfill the duties of his position which shall include such duties as may, from time to time, be assigned to him by the Chief Executive Officer, President, Chairman or Board of Directors of the Company, provided such duties are reasonably consistent with Executive's title, position, education, experience and background.   

3.    OUTSIDE ACTIVITIES. Nothing in this Agreement shall preclude the Executive, with the Company’s prior approval, from engaging in civil, charitable or religious activities, or from serving as a consultant to or on any board of directors, managers or other board of advisors or companies or organizations which will not present any direct conflict of interest with the Company or adversely affect the performance of Executive’s duties hereunder.  Executive shall provide to the Company a list of current consulting relationships or board memberships as of the effective date of this Agreement for the Company’s review and approval.

4.         TERM. Subject to the provisions of Sections 6 and 11 hereof, Executive's employment shall commence on the Effective Date hereof and continue for a period of one year (the “Initial Term”), but shall be automatically extended, unless otherwise terminated in accordance herewith, for additional consecutive one year terms on each anniversary date (each, an “Additional Term”), thereafter, unless the Company gives written notice to Executive at least ninety (90) days prior to the end of the Initial Term or any applicable Additional Term of the Company’s election not to extend for any Additional Term.  The Initial Term and any Additional Terms are collectively referred to herein as the “Term.”  Upon expiration of the Initial Term or of any Additional Term following the Company’s notice of its election not to extend, this Agreement shall automatically terminate. In any event, this Agreement shall automatically terminate, without notice, when Executive reaches 70 years of age. If employment is continued after the age of 70 by mutual agreement, it shall be terminable at will by either party.  

5.       COMPENSATION.

         (a)      Base Salary. For services rendered under this Agreement during the 2017 calendar year of this Agreement the Company shall pay Executive a base salary at the monthly rate of $25,000 (equivalent to an annual rate of $300,000), payable in accordance with the existing payroll practices of the Company and applicable law (the "Base Salary").  Base Salary shall mean regular cash compensation paid on a periodic basis, exclusive of any and all benefits, bonuses or other incentive payments made or obligated by Company to Executive hereunder. In subsequent years, Executive's Base Salary and severance provisions may be annually reviewed, based upon a performance and compensation review conducted by the Compensation Committee of the Company's Board of Directors and mutually agreed to, in good faith, between Executive and the Company's Board of Directors.  Such review will be based upon both individual and Company performance and shall be completed by the employment anniversary date of each subsequent year during the Term.  
(b)    Bonus Compensation. During the Term, in addition to the Base Salary, Executive shall be eligible to earn an annual cash bonus pursuant to the TASER Bonus Plan.  Executive’s bonus target for calendar year 2017 shall be $150,000.  This bonus is calculated and payable each quarter after the Company’s earnings are announced. Payment of the bonus is dependent on the Company’s performance.  The bonus will be prorated based on Executive’s first date of employment.  Any annual bonus paid to Executive pursuant to this Agreement shall be paid not later than March 15 of the following calendar year, so as to fully qualify as a “short term deferral” exemption pursuant to Internal Revenue Code (the “Code”) Section 409A and related regulations.  
(c)    Restricted Stock Units. The Company shall grant restricted stock units (“RSU”) to Executive pursuant to the following:
		
	(i)
	Time based RSUs having a value in the amount of $1,250,000 on the date of grant which RSUs will vest annually over a period of five (5) years at the rate of 20% each year on your employment anniversary date upon each year of continual employment with the Company with 100% vesting after five (5) years of continual employment with the Company. 

		
	(ii)
	Performance based RSUs having a value in the amount of $150,000 on the date of grant which RSUs will vest 3 years out based on performance criteria that will be used for the entire executive team's 2017 performance based RSUs.

                        
         (d)      Fringe Benefits. In addition to the compensation and incentive payments payable to Executive as provided in Sections 5(a) through (c) above, Executive shall be eligible to participate in the following fringe benefits:

		
	(i)
	Paid Time Off. TASER employees do not accrue paid time off.  The Company’s vacation, sick, and personal time off policy is at the employee’s and manager’s discretion.  The 

Company allows Executive to determine his needs related to time away from work.  TASER does have policies related to FMLA, Maternity/Paternity leave, Leave of Absence, and Bereavement which are separate from this benefit.

		
	(ii)
	Insurance. The Company provides comprehensive medical, dental, vision, life and disability insurance plans for all employees which are covered in more detail in the Company’s Plan Summary, subject to contributory payments by employees as outlined in the Plan Summary.  In the event there is a wait time before your TASER insurance becomes effective, the Company will help offset Executive’s COBRA or independent insurance by contributing 50% of the costs until Executive is eligible to participate in the Company insurance plans. 

		
	(iii)
	401(K) Plan. Executive will be eligible to participate in the TASER International 401(K) Plan.  Executive will become eligible to participate in the 401(K) Plan on the first entry date after 90 days of employment with TASER.  Entry dates are the first day of January, April, July and October.  On a discretionary basis, the Company contributes dollar for dollar on the first 3 percent of compensation the Executive contributes to the Plan and $0.50 for each $1.00 on the next 2 percent of compensation the Executive contributes to the Plan. 

		
	(iv)
	Signing Bonus. The Company will pay Executive a signing bonus in the amount of $70,000 upon Executive’s first day of employment with the Company.

		
	(v)
	Relocation.  Relocation to the greater Phoenix area is required in a mutually agreeable time frame as a condition of employment with the Company.  The Company will reimburse Executive’s relocation expenses to the greater Phoenix area up to $30,000 in accordance with our expense reimbursement policy. 

(e).       BUSINESS EXPENSES. The Company shall, in accordance with, and to the extent of, its policies in effect from time to time, bear all customary reasonable and necessary business expenses (including the advancement of certain expenses) incurred by the Executive in performing his duties as an executive of the Company, provided that Executive accounts promptly such expenses to Company in the manner prescribed from time to time by the Company.

(f).    COMPLIANCE WITH SECTION 409A OF THE INTERNAL REVENUE CODE; SHORT TERM DEFERRAL EXEMPTION.  This Agreement is intended, to the maximum extent possible, to avoid treatment of any compensation provided pursuant to this Agreement as “deferred compensation” subject to Section 409A of the Internal Revenue Code (the “Code”).  Accordingly, specified compensation provided pursuant to this Agreement is intended to be paid not later than the later of:  (i) the fifteenth day of the third month following Executive’s first taxable year in which such benefit is no longer subject to a substantial risk of forfeiture, and (ii) the fifteenth day of the third month following the first taxable year of the Company in which such benefit is no longer subject to a substantial risk of forfeiture, as determined in accordance with Section 409A of the Code and any Treasury Regulations and other guidance issued thereunder.  The date determined under this subsection is referred to as the “Short-Term Deferral Date.”  Any benefits provided pursuant to this Agreement upon Executive’s separation from service, which by their terms are not to be actually or constructively received by Employee on or before the Short-Term Deferral Date, to the extent such benefit constitutes a deferral of compensation subject to Code Section 409A, shall be paid pursuant to a fixed schedule of payments within the meaning of Section 409A of the Code and not subject to modification or acceleration.  Notwithstanding any provision to the contrary, to the extent that any amounts payable 

hereunder are subject to the requirements of Section 409A of the Code and are payable on account of separation from service and not subject to any applicable exemption thereunder, the payment of said amounts will be delayed for a period of six (6) months after the date of separation from service (or, if earlier, the death of Employee) if Employee is a “specified employee” of a publicly traded company (as defined in Section 409A of the Code and any Treasury Regulations and other guidance issued thereunder) as of the date of separate from service.  Any payment that would otherwise have been due or owing during such six-month period will be paid immediately following the end of the six-month period. Code and any Treasury Regulations and other guidance issued thereunder.  The date determined under this subsection is referred to as the “Short-Term Deferral Date.”  Any benefits provided pursuant to this Agreement upon Executive’s separation from service, which by their terms are not to be actually or constructively received by Employee on or before the Short-Term Deferral Date, to the extent such benefit constitutes a deferral of compensation subject to Code Section 409A, shall be paid pursuant to a fixed schedule of payments within the meaning of Section 409A of the Code and not subject to modification or acceleration.  Notwithstanding any provision to the contrary, to the extent that any amounts payable hereunder are subject to the requirements of Section 409A of the Code and are payable on account of separation from service and not subject to any applicable exemption thereunder, the payment of said amounts will be delayed for a period of six (6) months after the date of separation from service (or, if earlier, the death of Employee) if Employee is a “specified employee” of a publicly traded company (as defined in Section 409A of the Code and any Treasury Regulations and other guidance issued thereunder) as of the date of separate from service.  Any payment that would otherwise have been due or owing during such six-month period will be paid immediately following the end of the six-month period. 

6.       TERMINATION. Subject to the respective continuing obligations of the parties pursuant to Sections 8 through 14, this Agreement may be terminated prior to the expiration of its then remaining applicable term only as follows:

         (a)  By the Company. The Company may terminate this Agreement under the following circumstances, and in any such case, the compensation due and owing by the Company to Executive following any such early termination of this Agreement shall be paid as set forth at Section 7 hereof.:

		
	(i)
	For "Cause". The Company may terminate this Agreement on thirty (30) days written notice to Executive for "Cause".  For purposes of this Agreement, “Cause” shall be defined as: (1) Executive’s commission of fraud, misrepresentation, theft or embezzlement of Company assets; (2) Executive’s violations of law or of Company policies material to the performance of Executive’s duties; (3) Executive’s repeated insubordination; or (4) Executive’s material breach of the provisions of this Agreement, including specifically the repeated failure to perform Executive’s duties as required by Section 2 hereof after written notice of such failure from Company; provided, however, in the event of any proposed termination related to Executive's performance, Executive's termination shall only be effective upon the expiration of a sixty (60) day cure period following written notice by the Company and a lack of adequate corrective action having been undertaken by Executive to the reasonable satisfaction of the Company during said cure period. 

		
	(ii)
	Without "Cause". The Company may terminate this Agreement upon twelve (12) months written notice without "Cause" for any termination without “Cause” occurring during the first 3 years of employment.  In the event that the termination without “Cause” occurs after the first 3 years of employment, then the notice period is reduced to six (6) months.

  
		
	(iii)
	Death. If Executive should die during the Term of this Agreement, this Agreement shall thereupon terminate effective on the date of Executive’s death.

		
	(iv)
	Disability. (a) In the event that Executive should become “Disabled” during the Term of this Agreement, this Agreement shall terminate.  For purposes of this Agreement, “Disability” means that Executive is physically or mentally disabled from performing the essential functions of Executive’s position, by reason of either:  (i) Executive is unable to perform Executive’s duties under this Agreement by reason of any medically determinable physical or mental impairment that is expected to result in death or is expected to last for a continuous period of not less than twelve (12) months; or (ii) Executive is, by reason of any medically determinable physical or mental impairment that is expected to result in death or is expected to last for a continuous period for not less than twelve (12) months, receiving income replacement benefits for a period of not less than twelve (12) months under a long term disability insurance plan covering Executive.  Notwithstanding anything expressed or implied above to the contrary, the Company will fully comply with its obligations under the Americans with Disabilities Act, and with any other applicable federal, state or local law, regulation or ordinance, governing the employment of individuals with disabilities.

         (b)  By Executive.  Notwithstanding anything in this Agreement to the contrary, express or implied, this Agreement (and Executive’s employment) may be terminated by Executive as follows:

(i)     For “Good Reason,” which shall be defined as:  (i) a material reduction of Executive’s duties, authority or responsibilities, in effect immediately prior to such reduction; provided, however, that in the event of a Change of Control as defined herein, the differences in job title and duties that are normally occasioned by reason of an acquisition of one company or by another and which do not actually result in a material change in duties, authority and responsibilities inconsistent with Executive’s prior position with the acquired company do not constitute “Good Reason”; and further provided that, absent a Change of Control, changes by the Company’s Board of Directors to Executive’s specific job duties or reporting relationships which do not materially diminish Executive’s authority and responsibilities do not constitute “Good Reason”; (ii) a material reduction of Executive’s then-existing Base Salary; or (iii) the Company’s material breach of this Agreement; provided however, that the Company shall have received written notice from Executive of the event or condition constituting “Good Reason” within thirty (30) days of the initial existence of such event or condition and specifying that Executive intends to terminate his employment for such Good Reason, specifying the facts and circumstances constituting Good Reason pursuant to any one or more of the foregoing conditions, and notwithstanding such notice by Executive, the Company fails to remedy the specified condition within thirty (30) days after receipt of such notice.

(ii)     At any time, without Good Reason, for any reason or no reason whatsoever by giving thirty (30) days written notice to Employer.

7.       COMPENSATION PAYABLE FOLLOWING EARLY TERMINATION.

         (a)  In the event of any termination by the Company pursuant to Section 6(a), Executive's shall be paid as follows:

(i)      In the event of termination pursuant to Section 6(a)(i) (for "Cause"), Executive's Base Salary shall continue to be paid on a semi-monthly basis for sixty (60) days following the effective date of such termination  and Executive shall also be entitled to continue to participate in those benefit programs provided by the Company to its senior executives as of the effective date of any such termination, during such notice period;  

(ii)     In the event of termination of this Agreement by reason of Executive's death, Executive's Base Salary shall continue to be paid on a semi-monthly basis to Executive’s designated beneficiary or as otherwise provided by applicable law for a period of eighteen (18) months following Executive's death;  

(iii)    In the event of termination of this Agreement by reason of Executive’s Disability, Executive's Base Salary shall continue to be paid on a semi-monthly basis for eighteen (18) months following a final determination of Executive's Disability pursuant to Section 6(a)(iv).  Any such payments to Executive arising from a termination of this Agreement due to Executive’s disability shall first be provided and paid pursuant to the Company’s existing disability policy, as then in effect, but shall be further supplemented to the extent provided by this Agreement such that the combined amount of all such payments during any month following a termination for Disability does not exceed Executive’s monthly Base Salary in effect as of the date of termination.; and

(iv)     In the event of any termination by the Company pursuant to Section 6(a)(ii) (without "Cause"), Executive's Base Salary shall continue to be paid on a semi-monthly basis for a period of twelve (12) months following the expiration of the twelve (12) month notice period provided for in Section 6(a)(ii) for any termination without “Cause” occurring during the first 3 years of employment.  In the event that the termination without “Cause” occurs after the first 3 years of employment, then Executive's Base Salary shall continue to be paid on a semi-monthly basis for a period of six (6) months following the expiration of the six (6) month notice period provided for in Section 6(a)(ii).  

         (b)  In the event of any termination by Executive pursuant to Section 6(b), Executive shall be paid as follows: 

(i)     If Executive terminates Executive’s employment with the Company pursuant to Section 6(b)(ii) without “Good Reason,” the Company shall pay to the Executive any accrued, unpaid Base Salary payable as in effect on the Date of Termination, together with all other payments required by applicable law;

(ii)     In the event of any termination by Executive pursuant to Section 6(b)(i) for “Good Reason,” Executive's Base Salary shall continue to be paid on a semi-monthly basis for a period of twelve (12) months following the effective date of any such termination for Good Reason, together with all other payments required by applicable law.

         (c) In the event of termination by the Company by reason of Executive's death, disability, termination without cause; any termination by Executive for Good Reason; or any termination due to a Change in Control, as defined at Section 11:

(i)      Executive shall receive a pro rata portion (prorated through the last day Base Salary is payable pursuant to clauses (a)(ii), (a)(iii) and (a)(iv), or (b)(ii), or pursuant to Section 11, respectively) of any bonus or incentive payment (for the year in which termination for any of the foregoing reasons occurred), to which he would have been entitled had he remained continuously employed for the full fiscal year in which termination for any of the foregoing reasons occurred and continued to perform his duties in the same manner as they were performed immediately prior to the death, disability or termination; and

(ii)     The right to exercise any unexpired vested and non-vested stock options and as well as the right to receive as unrestricted any unexpired and unvested time based (not performance based) restricted stock units previously granted to Executive shall immediately vest and accelerate.as of the date of termination pursuant to the terms of the applicable stock incentive plan.

8.     CONFIDENTIAL INFORMATION. 
(a) For purposes of this Section 8, the term "Confidential Information" means information which is not generally known and which is proprietary to Company, including: (i) trade secret information about Company and its services; and (ii) information relating to the business of Company as conducted at any time within the previous two (2) years or anticipated to be conducted by Company, and to any of its past, current or anticipated products, including, without limitation, information about Company's research, development, services, purchasing, accounting, engineering, marketing, selling, leasing or servicing. All information which Executive has a reasonable basis to consider Confidential Information or which is treated by Company as being Confidential Information shall be presumed to be Confidential Information, whether originated by Executive, or by others, and without regard to the manner in which Executive obtains access to such information. 
(b) Executive will not during the term of this Agreement and following expiration or termination of this Agreement, use or disclose any Confidential Information to any person not employed by Company without the prior authorization of Company and will use reasonably prudent care to safeguard, protect and to prevent the unauthorized disclosure of, all of such Confidential Information. 
(c)  Former Employer Information. Executive agrees that he will not, during his employment with the Company, improperly use or disclose any proprietary information or trade secrets of any former or concurrent employer or other person or entity and that he will not bring onto the premises of the Company any unpublished document or proprietary information belonging to any such employer, person or entity unless consented to in writing by such employer, person or entity.
9.     INVENTIONS. 
(a) For purposes of this Section 9, the term "Inventions" means discoveries, improvements and ideas (whether or not in writing or reduced to practice) and works of authorship, whether or not patentable or copyrightable: (1) which relate directly to the business of Company, or to Company's actual or demonstrably anticipated research or development; (2) which result from any work performed by Executive for Company; (3) for which equipment, supplies, facilities or trade secret information of Company is utilized; or (4) which were conceived or developed during the time Executive was obligated to perform the duties described in Section 2. 
(b) Executive agrees that all Inventions made, authored or conceived by Executive, either solely or jointly with others, during Executive's employment with Company (except as otherwise provided above), shall be the sole and exclusive property of Company. Upon termination of this Agreement, Executive shall turn over to a designated representative of Company all property in Executive's possession and custody belonging to Company. Executive shall not retain any copies or reproductions of correspondence, memoranda, reports, notebooks, drawings, photographs or other documents relating in any way to the affairs of Company which came into Executive's possession at any time during the term of this Agreement. 
(c) Executive is hereby notified that this Agreement does not apply to any invention for which no equipment, supplies, facility, or trade secret information of Company was used and which was developed initially on the Executive's own time and: (1) which does not relate: (a) directly to the business of Company; or (b) to Company's actual or demonstrably anticipated research, development or products; or (2) which does not result from any work performed by Executive for the Company. 

10.     NON-SOLICITATION. Executive agrees that for a period of two (2) years following termination of this Agreement for any reason, he will not directly or indirectly, alone or as a partner, officer, director, or shareholder of any other firm or entity, use the Company’s Confidential Information to solicit or attempt to influence any client, customer or other person to direct its purchase of products or services away from the Company. 
11.     CHANGE IN CONTROL. 
(a)    Termination Following a Change In Control.  It is expressly recognized that Executive's position with the Company and agreement to be bound by the terms of this Agreement represent a commitment in terms of Executive's personal and professional career which cannot be reduced to monetary terms, and thus, necessarily constitutes a forbearance of options now and in the future open to Executive in Company's areas of endeavor.  Accordingly, if Executive’s employment with the Company or any successor is terminated by the Company or any successor for any reason, or if Executive’s employment is terminated by Executive for “Good Reason,” in either case at any time within ninety (90) days preceding or twelve (12) months following the closing date of any transaction amounting to a “Change in Control” (as defined below), Executive shall be entitled to compensation as set forth in Section 7(c).  
(b) For purposes of this Section 11, a "Change in Control" with respect to, or concerning, the Company shall mean any of the following, which shall be construed to conform to the definition set forth pursuant to regulations governing Section 409A of the Code: 
(i) A change in ownership of a substantial portion of the Company’s assets, defined as a transaction in which any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the corporation that have a total gross fair market value equal to or more than 40 percent of the total gross fair market value of all of the assets of the corporation immediately before such acquisition or acquisitions. For this purpose, gross fair market value means the value of the assets of the corporation, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets; or
(ii) A change in the effective control of the Company, defined as either: (1) the date any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the corporation possessing thirty (30) percent or more of the total voting power of the stock of the Company; or (2) the date a majority of members of the Company’s board of directors is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Company’s board of directors before the date of the appointment or election; or 
(iii) A change in the ownership of the Company, defined as a transaction in which any one person, or more than one person acting as a group, acquires ownership of stock of the corporation that, together with stock held by such person or group, constitutes more than fifty (50) percent of the total fair market value or total voting power of the stock of such corporation. 
(c) Compensation Payable to Executive Upon Termination Following a Change in Control.  In the event of the termination of this Agreement in connection with any Change in Control under this Section 11, Executive shall be compensated as follows: 
(i)  Executive shall be entitled to severance compensation in an amount equal to twelve (12) months of Executive’s Base Salary at the rate in effect as of the effective date of termination (the “Change In Control Benefit”).  The Change In Control Benefit shall be payable in a single lump sum payment, less applicable withholding, not later than ten (10) business days after the effective date of any termination related to a Change in Control, as provided for in Section 

11(b) and in any event so as to fully qualify as a “short term deferral” under Section 409A of the Code and applicable regulations.  Any Change In Control Benefit paid to Employee under this Section 11(c) shall be in lieu of, and not in addition to, any continuation of Base Salary provided for in Section 7 of this Agreement; and
(ii) Executive shall be entitled to continue to participate, at the Company’s expense, in those benefit programs and perquisites provided by subsection 5(d) hereof, for a period of the lesser of twelve (12) months following termination, or the maximum period provided pursuant to Section 409A of the Code during which any such post-separation benefit may be provided without violating Section 409A of the Code or becoming subject to treatment as deferred compensation resulting in the imposition of any additional taxes or penalties pursuant to Section 409A of the Code; and 
(iii) The right to exercise any unexpired vested and non-vested stock options and time based restricted stock units (not performance based) previously granted to Executive as of the date of termination in connection with a Change In Control shall immediately vest and accelerate such that all options and time based restricted stock units granted to Executive as of the date of termination in connection with a Change in Control shall become fully vested and immediately exercisable subject to the terms of the applicable Stock Plan. 
.(iv) Notwithstanding any other provisions of this Agreement, or any other agreement, contract or understanding heretofore, or hereafter, entered into including without limitation, any benefits or transfers of property or the acceleration between the Company and Executive, if any "payments" (including of the vesting of any benefits) and the nature of compensation under any arrangement that is considered contingent on a change in control for purpose of Section 280G of the Internal Revenue Code of 1986, as amended (the "Code"), together with any other payments that Executive has the right to receive from the Company, or any corporation that is a member of an "affiliated group" (as defined in Section 1504A of the Code without regard to Section 1504B of the Code), of which the Company is a member, would constitute a "parachute payment" (as defined in Section 280G of the Code), the aggregate amount of such payments shall be reduced to equal the largest amount as would result in no portion of such payments being subject to the excise tax imposed by Section 4999 of the Code; provided however, Executive shall be entitled to designate and select among such payments that will be reduced, and/or eliminated, in order to comply with the forgoing provision of the Code.  
12. COVENANT NOT TO COMPETE.  In consideration of Executive’s employment with the Company, the grant of RSUs as provided for herein and the payment of Executive’s monthly base salary as severance payments and other good and valuable consideration as specified in this Agreement, the Executive agrees that during the Term of this Agreement and during the two (2) year period after termination of this Agreement (the “Non-Compete Period”), he will not, directly or indirectly, own, control, manage, operate, or act for or on behalf of, assist in, engage in, have any financial interest in, or participate in any way, including as an owner, partner, employee, officer, agent, board member, consultant, advisor, volunteer, shareholder or investor in any entity, person, business or enterprise that is engaged in the design, manufacture, marketing, selling, importing, exporting, servicing or supporting of less lethal weapons, law enforcement cameras, digital evidence management, or any other products that the Company is engaged in or is on the roadmap to enter over the Non-Compete Period at the time of termination of employment; or related professional services marketed, sold or provided to public safety customers in connection with the products mentioned above throughout the world (the “TASER Business”). 
Executive acknowledges that the RSU grants, his employment with the Company and the payments specified in this Agreement are sufficient consideration for this covenant not to compete.  Executive 

further acknowledges that TASER is engaged in marketing and selling its products throughout the world and that this covenant not to compete is necessary and reasonable to protect the Company and that the Company will suffer irreparable harm and other damages in the event of a breach of this provision.  Executive acknowledges that his training and experience have prepared him for employment or other business opportunities to sell product and perform services for businesses other than those in the TASER Business.  Accordingly, Executive acknowledges that the restrictions contained in this covenant not to compete will not unduly prevent him from obtaining employment or business opportunities other than in the TASER Business.  Employee also acknowledges that the time, scope and the geographic area of this covenant not to compete are reasonable and necessary to protect the interests of the Company and the TASER Business.  The covenants set forth in this covenant not to compete are necessarily of a special, unique and extraordinary nature, and the loss arising from a breach thereof cannot reasonably and adequately be compensated solely by money damages, and such breach will cause the Company to suffer irreparable harm.  Accordingly, in the event of any breach or threatened breach of any of the covenants set forth in this covenant not to compete, the Company will be entitled to injunctive or other extraordinary relief from a court of competent jurisdiction to restrain the violation or threatened violation of such covenants by the Executive or any person acting for or with the Executive in any capacity.  The Company will be entitled to such injunctive relief without the necessity of posting a bond or other security.  The remedy set forth herein will be cumulative and not in limitation of any other available remedies.
13. NO ADEQUATE REMEDY. The parties declare that is impossible to measure in money the damages which will accrue to either party by reason of a failure to perform any of the obligations under this Agreement. Therefore, if either party shall institute any action or proceeding to enforce the provisions hereof, such person against whom such action or proceeding is brought hereby waives the claim or defense that such party has an adequate remedy at law, and such person shall not urge in any such action or proceeding the claim or defense that such party has an adequate remedy at law. 
14.    MISCELLANEOUS. 
(a) Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of all successors and assigns of the Company, whether by way of merger, consolidation, operation of law, assignment, purchase or other acquisition of substantially all of the assets or business of Company and shall only be assignable under the foregoing circumstances and shall be deemed to be materially breached by Company if any such successor or assign does not absolutely and unconditionally assume all of Company's obligations to Executive hereunder. Any such successor or assign shall be included in the term "Company" as used in this Agreement. 
(b) Notices. All notices, requests and demands given to, or made, pursuant hereto shall, except as otherwise specified herein, be in writing and be delivered or mailed to any such party at its address which: 
                  (i)      In the case of Company shall be:

                           TASER International, Incorporated
                           17800 North 85th Street
                           Scottsdale, Arizona 85255

                          
                  (ii)     In the case of the Executive shall be:

   Jawad Ahsan
___________________
___________________

Either party may, by notice hereunder, designate a change of address. Any notice, if mailed properly addressed, postage prepaid, registered or certified mail, shall be deemed dispatched on the registered date or that stamped on the certified mail receipt, and shall be deemed received within the fifth business day thereafter, or when it is actually received, whichever is sooner. 
(c) Captions. The various headings or captions in this Agreement are for convenience only and shall not affect the meaning or interpretation of this Agreement. 
(d) Governing Law. The validity, construction and performance of this Agreement shall be governed by the laws of the State of Arizona. Any dispute involving or affecting this agreement, or the services to be performed shall be determined and resolved by binding arbitration in the County of Maricopa, State of Arizona, in accordance with the Rules of the American Arbitration Association then in effect, and with applicable law. 
(e) Construction. Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of this Agreement. 
(f) Waivers. No failure on the part of either party to exercise, and no delay in exercising, any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right or remedy hereunder preclude any other or further exercise thereof or the exercise of any right or remedy granted hereby or by any related document or by law. 
(g) Modification. This Agreement may not be, and shall not be, modified or amended except by a written instrument signed by both parties hereto. 
(h) No Conflicting Business. Executive agrees that he will not, during the term of this Agreement, transact business with the Company personally, or as an agent, owner, partner, shareholder of any other entity; provided, however, Executive may enter into any business transaction that is, in the opinion of the Company's Board of Directors, reasonable, prudent or beneficial to the Company, so long as any such business transaction is at arms-length as though between independent and prudent individuals and is ratified and approved by the designated members of the Company's Board of Directors. 
(i) Returning Company Documents. Executive agrees that, at the time of leaving the employ of the Company, he 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, materials, equipment, other documents or property, or reproductions of any aforementioned items developed by me pursuant to my employment with the Company or otherwise belonging to the Company, its successors or assigns, including, without limitation, those records maintained pursuant to this Agreement.
 
(j) Conflict of Interest Guidelines. Executive agrees to diligently adhere to the Company’s Conflict of Interest Guidelines and the Company’s Code of Ethics.

(k) Representations. Executive agrees to execute any proper oath or verify any proper document required to carry out the terms of this Agreement.  Executive represents that his performance of all the terms of this Agreement will not breach any agreement to keep in confidence proprietary information acquired by me in confidence or in trust prior to my employment by the Company. Executive has not entered into, and agrees not to enter into, any oral or written agreement in conflict herewith.

(l) Equitable Remedies. EXECUTIVE AGREES THAT IT WOULD BE IMPOSSIBLE OR INADEQUATE TO MEASURE AND CALCULATE THE COMPANY'S DAMAGES FROM ANY 

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

(m) Entire Agreement. This Agreement constitutes the entire Agreement and understanding between the parties hereto in reference to all the matters herein agreed upon; provided, however, that this Agreement shall not deprive Executive of any other rights Executive may have now, or in the future, pursuant to law or the provisions of Company benefit plans. 
(n) Counterparts. This Agreement shall be executed in at least two counterparts, each of which shall constitute an original, but both of which, when taken together, will constitute one in the same instrument. 
(o) Amendment. This Agreement may be modified only by written agreement executed by both parties hereto. 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered the day and year first above written. 

                                   TASER INTERNATIONAL, INCORPORATED

        
                                    _/s/ Patrick W. Smith_____   _____________
Patrick W. Smith                                   
Its: Chief Executive Officer

                                   
EXECUTIVE

                                   _/s/ Jawad A. Ahsan______________________
                                   Jawad AhsanExhibit

EXHIBIT 10.19

Line of Credit Note

$10,000,000.00
Date: December 18, 2017

Promise to Pay. On or before December 31, 2018, for value received, Axon Enterprise, Inc. (the "Borrower") promises to pay to JPMorgan Chase Bank, N.A., whose address is 201 North Central Avenue,  Floor 21, Phoenix,  AZ 85004-0073  (the "Bank")  or order, in lawful money of the United States of America, the sum of Ten Million and 00/100 Dollars ($10,000,000.00) or so much thereof as  may be advanced and outstanding, plus interest on the unpaid principal balance as provided below.

Interest Rate Definitions. As used in this Note, the following terms have the following respective meanings:

"Adjusted LIBOR Rate" means, with respect to a LIBOR Rate Advance for the relevant Interest Period, the  sum  of  (i)  the  Applicable Margin plus (ii) the quotient of (a) the LIBOR Rate applicable to such Interest  Period, divided  by (b)  one  minus  the Reserve Requirement (expressed as a decimal) applicable to such Interest Period.

"Adjusted One Month LIBOR Rate" means, with respect to a CB Floating Rate Advance for any day, an  interest rate Per Annum  equal to the sum of (i)  2.50% plus (ii) the quotient of  (a) the interest  rate determined by the Bank by reference  to the Page to be the  rate at approximately 11:00 a.m. London time, on such date or, if such date is not a Business Day, on the immediately preceding  Business Day for dollar deposits with a maturity equal to one (1) month, divided by (b) one  minus  the  Reserve  Requirement  (expressed as a decimal) applicable to dollar deposits in the London interbank market with a maturity equal to one (1) month.

"Advance" means a LIBOR Rate Advance or a CB Floating Rate Advance and "Advances" means all LIBOR Rate Advances and all CB Floating Rate Advances under this Note.

"Applicable Margin" means with respect to any CB Floating Rate Advance or  LIBOR Rate Advance,  as  the case  may be,  the rate  Per Annum set forth below for such Advance and opposite the applicable Leverage Ratio. Leverage Ratio is defined in the Credit Agreement.

	
			
	Leverage Ratio
	Applicable Margin

	 
	CB Floating Rate
Advance
	LIBOR Rate Advance

	Less than 1.00 to 1.00
	-0.50%
	1.25%

	Greater than or equal to 1.00 to 1.00 but less than
1.50 to 1.00
	-0.25%
	1.50%

	Greater than or equal to 1.50 to 1.00
	0.00%
	1.75%

The Applicable Margin shall, in each case, be determined and adjusted quarterly on the first day of the month after the date of delivery   of the quarterly and annual financial statements required by the Credit Agreement, provided, however, that if such  financial statements are not delivered within two Business Days after the required date  (each, an "Interest Determination Date"),  the Applicable  Margin  shall increase to the maximum percentage amount set  forth in the table above from the date such financial  statements  were required to be delivered to the Bank until received by the Bank. The Applicable  Margin shall be  effective from an  Interest Determination Date  until the next Interest Determination Date. Such determinations by the Bank shall be conclusive absent manifest error. The initial Applicable Margin for CB Floating Rate Advances is -0.50% and for LIBOR Rate Advances is 1.25%.

"Credit Agreement" is defined in the paragraph entitled "Miscellaneous" below.

"Business Day" means (i) with respect to the Adjusted One Month LIBOR Rate and any borrowing, payment or rate  selection of  LIBOR Rate Advances, a day (other than a Saturday or Sunday) on which banks generally are open in Arizona and/or New York for     the conduct of substantially all of their commercial lending activities and on which dealings in United States dollars are carried on in     the London interbank market and (ii) for all other purposes, a day other than a Saturday, Sunday or any other day on which national banking associations are authorized to be closed.

"CB Floating Rate" means the Prime Rate; provided that the CB Floating Rate shall, on any day, not be less than the Adjusted One Month LIBOR Rate. The CB Floating Rate is a variable rate and any change in the CB Floating Rate due to any change in the Prime

Rate or the Adjusted One Month  LIBOR Rate  is effective from  and including the effective date of such change in the Prime  Rate or  the Adjusted One Month LIBOR Rate, respectively.

"CB Floating Rate Advance" means any borrowing under this Note when and to the extent that its interest rate is determined by reference to the CB Floating Rate.

"Interest Period" means, with respect to a LIBOR Rate Advance, a period of one (1), three (3) or six (6) month(s) commencing on a Business Day selected by the Borrower pursuant to this Note. Such Interest Period shall end  on  the  day  which  corresponds  numerically to such date one (1), three (3) or six (6) month(s) thereafter, as applicable, provided, however, that if there is no such numerically corresponding day in such first, third or sixth succeeding month(s), as applicable, such Interest Period shall end on the last Business Day of such first, third or sixth succeeding month(s), as applicable. If an Interest Period would otherwise end on a day which    is not a Business Day, such Interest Period shall end on the next succeeding Business Day, provided, however, that if said next  succeeding Business Day falls in a new calendar month, such Interest Period shall end on the immediately preceding Business Day.

"LIBOR Rate" means with respect to any LIBOR Rate Advance for any Interest Period, the London interbank offered rate as administered by ICE Benchmark Administration (or any other person that takes over the administration of such rate for Dollars) for a period  equal in length to such Interest Period as displayed on  pages  LIBOR01 or LIBOR02 of the Reuters screen that  displays such  rate (or, in the event such rate does not appear on a Reuters page or screen, on any successor or substitute page on such screen that displays such rate, or on the appropriate page of such other information service that publishes such rate from time to time as shall be selected by the Bank in its reasonable discretion (the "Page"); in each case, the "LIBOR Screen Rate") at approximately 11:00 a.m., London time, two (2) Business Days  prior to the  commencement  of such Interest Period;  provided that, if any LIBOR Screen Rate  shall be less than zero, such rate shall be deemed to be zero for the purposes of this Note. If no LIBOR Screen Rate is available to the Bank, the applicable LIBOR Rate for the relevant Interest Period shall instead be the rate determined  by the Bank  to be the rate  at  which the Bank offers to place U.S. dollar deposits having a maturity equal to such Interest Period with first-class banks in the London interbank market at approximately 11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period.

"LIBOR Rate Advance" means any borrowing under this Note when and to the extent that its interest rate is determined by reference   to the Adjusted LIBOR Rate.

"Prime Rate" means the rate of interest Per Annum announced from time to time by the Bank as its prime rate. The Prime Rate is a variable rate and each change in the Prime Rate is effective from and including the date the change is  announced  as being effective.  THE PRIME RATE IS A REFERENCE RATE AND MAY NOT BE THE BANK'S LOWEST RATE.

"Principal Payment Date" is defined in the paragraph entitled "Principal Payments" below.

"Regulation D" means Regulation D of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor thereto or other regulation or official interpretation of said Board of Governors relating to reserve requirements applicable to member banks of the Federal Reserve System.

"Reserve Requirement" means the maximum aggregate reserve requirement (including all basic, supplemental, marginal and other reserves) which is imposed under Regulation D.

Interest Rates. The Advance(s) evidenced by this Note may be drawn down and remain outstanding as up to five (5) LIBOR Rate Advances and/or a CB Floating Rate Advance. The Borrower shall pay interest to the Bank on the outstanding and unpaid principal amount of each CB Floating Rate Advance at the CB Floating Rate plus the Applicable Margin and each LIBOR Rate Advance at the Adjusted LIBOR Rate. Interest shall be calculated on the basis of the actual number of days elapsed in a year of 360 days. In no event shall the interest rate applicable to any Advance exceed the maximum rate allowed by law. Any interest payment which would for any reason be deemed unlawful under applicable law shall be applied to principal.

The Borrower hereby agrees to pay an effective rate of interest that is the sum  of the interest  rate provided for in this Note together    with any additional rate of interest resulting from any other charges of interest or in the nature of interest paid or to  be  paid  in connection with this Note or the other Related Documents.

Bank Records. The Bank shall, in the ordinary course of business, make notations in its records of the date, amount, interest rate and Interest Period of  each Advance hereunder, the amount of each payment  on the  Advances,  and other information. Such records shall,  in the absence of manifest error, be conclusive as to the outstanding principal balance of and interest  rate or rates  applicable to this  Note.

Notice and Manner of Electing Interest Rates on Advances. The Borrower shall give the  Bank written  notice (effective  upon  receipt) of the Borrower's intent to draw down an Advance under this Note no later than 2:00 p.m. Mountain time, on the date of
disbursement, if the full amount of the drawn Advance is to be disbursed as a CB Floating Rate Advance and no later than 11:00 a.m. Mountain time three (3) Business Days before disbursement, if any part of such Advance is to  be  disbursed  as  a  LIBOR  Rate Advance. The Borrower's notice must specify: (a) the disbursement date, (b) the amount of each  Advance,  (c) the type  of  each  Advance (CB Floating Rate Advance or LIBOR Rate Advance), and (d) for each LIBOR Rate Advance, the duration of the applicable Interest Period; provided, however, that the 

Borrower may not elect an Interest Period ending after the maturity date of this Note. Each LIBOR Rate Advance shall be in a minimum amount of Five Hundred Thousand and 00/100 Dollars ($500,000.00). All notices under  this paragraph are irrevocable. By the Bank's close of business on the disbursement  date and upon fulfillment of the conditions set     forth herein  and in  any other of the Related Documents, the  Bank shall  disburse the requested Advances in immediately available  funds by crediting the amount of such Advances to the Borrower's account with the Bank.

Conversion and Renewals. The Borrower may elect from time to time to convert one type of Advance into another or to renew any Advance by giving the Bank written notice no later than 2:00 p.m. Mountain time,  on the  date of the conversion into or renewal  of  a CB Floating Rate Advance and 11:00 a.m. Mountain time three (3) Business Days before conversion into or renewal of a LIBOR Rate Advance, specifying: (a) the renewal or conversion date, (b) the amount of the Advance to be converted or renewed, (c) in the case of conversion, the type of Advance to be converted into (CB Floating Rate Advance or LIBOR Rate Advance), and (d) in the case of renewals of or conversion into a LIBOR Rate Advance, the applicable Interest Period, provided that (i) the minimum principal amount   of each LIBOR Rate Advance outstanding after a renewal or conversion shall be Five Hundred Thousand and 00/100 Dollars ($500,000.00); (ii) a LIBOR Rate Advance can only be converted on the last day of the Interest Period for the Advance; and (iii) the Borrower may not elect an Interest Period ending after the maturity date of this Note. All notices given under this paragraph are irrevocable. If the Borrower fails to give the Bank the notice specified above for the renewal or conversion of a LIBOR Rate Advance    by 11:00 a.m. Mountain time three (3) Business Days before the end of the Interest Period for that Advance, the Advance shall automatically be converted to a CB Floating Rate Advance on the last day of the Interest Period for the Advance.

Interest Payments. Interest on the Advances shall be paid as follows:

A.For each  CB Floating Rate Advance, on the last  day of each quarter beginning with the first  quarter following disbursement   of the Advance or following conversion of an Advance into a CB Floating Rate Advance, and at the maturity or conversion of the Advance into a LIBOR Rate Advance;

B.For each LIBOR Rate Advance, on the last day of the Interest Period for the Advance and, if the Interest Period is longer than three months, at three-month intervals beginning with the day three months from the date the Advance is disbursed.

Principal Payments. All outstanding principal  and interest is due and payable  in full on December  31, 2018, which is defined herein  as the "Principal Payment Date".

Default Rate of  Interest. After a  default has occurred under  this Note, whether or  not the Bank elects to accelerate the maturity of   this Note because of such default, all Advances outstanding under this Note, shall bear interest  at  a  Per  Annum rate equal to the  interest rate being charged on each such Advance plus three percent (3.00%) from the date the Bank elects to impose such rate. Imposition of this rate shall not affect any limitations contained in this Note on the Borrower's right to repay principal on any LIBOR Rate Advance before the expiration of the Interest Period for each such Advance.

Prepayment/Funding Loss Indemnification. The Borrower may prepay all or any part of any CB Floating Rate Advance at any time without premium or penalty.

The Borrower shall pay the Bank amounts sufficient (in the Bank's reasonable opinion) to compensate the Bank for any loss, cost, or expense incurred as a result of:

A.Any payment of a LIBOR Rate Advance on a date other than the last day of the Interest Period for the Advance, including, without limitation, acceleration of the Advances by the Bank pursuant to this Note or the other Related Documents; or

B.Any failure by the Borrower to borrow or renew a LIBOR Rate Advance on the date specified in the relevant notice from the Borrower to the Bank.

Additional Costs. If any applicable domestic or foreign law, treaty, government  rule or  regulation now or later  in effect (whether  or not it now applies to the Bank) or the interpretation or administration thereof by a governmental authority charged with such interpretation or administration, or compliance by the Bank  with any guideline, request or  directive of  such an authority (whether  or  not having the force of law), shall (a) affect the basis of taxation of payments to the Bank of  any amounts payable by the  Borrower  under this Note or the other Related Documents (other than taxes imposed on the overall  net income of the Bank by the jurisdiction or  by any political subdivision or taxing authority of the jurisdiction in which the Bank has its principal office), or (b) impose, modify or deem applicable any reserve, special deposit or similar requirement (including, without limitation, Federal Deposit Insurance
Corporation deposit insurance premiums or assessments) against assets of, deposits with or for the account of, or credit extended by the Bank,    or (c) impose any other condition with respect to this Note or the other Related  Documents  and  the result of  any of  the foregoing is  to  increase the cost to the Bank of  extending,  maintaining or  funding any LIBOR Rate  Advance or to reduce the amount of any sum receivable  by the Bank on any Advance, or (d) affect the amount of capital or liquidity required or expected to be maintained by the Bank (or any corporation controlling the Bank) and the Bank determines that the amount of such capital or liquidity is increased by or based upon the  existence of the Bank's obligations under this Note or the other Related Documents and the  increase has the effect  of reducing the  rate  of  return on the Bank's (or its controlling corporation's) capital as a consequence of the obligations under this Note or  the  other  Related 

Documents to a level below that which the Bank (or its controlling corporation) could have achieved but for such circumstances (taking into consideration its policies with respect to capital adequacy) by an amount deemed by the Bank to  be material, then  the Borrower  shall pay to   the Bank, from time to time, upon request by the Bank,  additional amounts sufficient to  compensate the Bank  for the increased  cost  or  reduced sum receivable. Whenever the Bank shall learn of circumstances described in  this  section  which  are likely to  result  in  additional costs to the Borrower, the Bank shall give prompt written notice to the Borrower of the basis for and the estimated amount of any such anticipated additional costs. A statement as to the amount of the increased cost or reduced sum receivable, prepared in good faith and in reasonable detail by the Bank and submitted by the Bank to the Borrower,  shall  be  conclusive and binding for all purposes absent manifest  error in computation.

Illegality. If  any applicable domestic or  foreign law, treaty, rule or regulation now or  later in effect (whether or not it now applies to the    Bank) or the interpretation or administration thereof by a governmental authority charged with such interpretation or administration, or compliance by the Bank with any guideline, request or directive of such an authority (whether or not having the force of law), shall make it unlawful or impossible for the Bank to maintain or fund the LIBOR Rate Advances, then, upon notice to the Borrower by the Bank, the outstanding principal amount of the LIBOR Rate Advances, together with accrued interest and any other  amounts payable to the  Bank under  this Note or the other  Related Documents  on  account of the LIBOR  Rate Advances shall be repaid (a)  immediately upon  the Bank's  demand if such change or compliance with such requests, in the Bank's judgment, requires immediate repayment, or (b) at the expiration of the last Interest Period to expire before the effective date of any such change or request provided, however, that subject to the terms and conditions of  this Note and the other Related Documents the Borrower shall be entitled to simultaneously replace the entire outstanding balance of  any  LIBOR Rate Advance repaid in accordance with this section with a CB Floating Rate Advance in the same amount.

Inability to Determine Interest Rate. If the Bank determines that (a) quotations of interest rates for the relevant deposits referred to in the definition of Adjusted LIBOR Rate are not being provided for purposes of determining the interest rate on  a  LIBOR  Rate  Advance  as provided in this Note, or (b) the relevant interest rates referred to in the definition of Adjusted LIBOR Rate do not accurately cover the cost to  the Bank of making, funding or maintaining LIBOR Rate Advances, then the Bank shall at the Bank's option, give  notice  of  such  circumstances to the Borrower, whereupon (i) the obligation of the Bank to make LIBOR Rate Advances shall be suspended until the Bank notifies the Borrower that the circumstances giving rise to the suspension no longer exists, and (ii) the Borrower shall repay in full the then outstanding principal amount of each LIBOR Rate Advance, together with accrued interest, on the last day of the then current Interest Period applicable to the LIBOR Rate Advance, provided, however, that, subject to the terms and conditions of this Note and the other Related Documents, the Borrower shall be entitled to simultaneously replace the entire outstanding balance of any LIBOR Rate Advance repaid in accordance with this section with an Advance bearing interest at the CB Floating Rate plus the Applicable Margin for CB Floating Rate Advances in the same amount. If the Bank determines on any day that quotations of interest rates for the relevant deposits referred to in the definition of Adjusted One Month LIBOR Rate are not being provided for purposes of determining the interest rate on any CB Floating Rate Advance on any day, then each  CB Floating Rate Advance shall bear interest at the Prime Rate plus the Applicable Margin for CB Floating   Rate Advances until the Bank  determines that quotations of  interest rates  for  the relevant deposits referred to  in the definition of Adjusted  One Month LIBOR Rate are being provided.

Obligations Due on Non-Business Day. Whenever any payment under this Note becomes due and payable on  a day that  is not  a Business  Day, if no default then exists under this Note, the maturity of  the payment shall be extended  to the next succeeding Business  Day, except, in  the case of a  LIBOR Rate Advance, if the result of the extension would be to extend the payment into another calendar month, the payment  must be made on the immediately preceding Business Day.

Matters Regarding Payment. The Borrower will pay the Bank at the Bank's address shown above or at such other place as the Bank may designate. Payments shall be allocated among principal, interest and fees at the discretion of the Bank unless otherwise agreed or required by applicable law. Acceptance by the Bank of any payment which is less than the payment due at the time shall not constitute a waiver of  the  Bank's right to receive payment in full at that time or any other time.

Authorization for Direct Payments (ACH Debits). To effectuate any payment due under this Note or under any other Related Documents,    the Borrower hereby authorizes the Bank to initiate debit entries to Account Number 634958078 at the Bank and to debit the same to such account. This authorization to initiate debit entries shall remain in full force and effect until the Bank has received written notification of its termination in such time and in such manner as to afford the Bank a reasonable opportunity to act on it. The Borrower represents that the Borrower is and will be the owner of all funds in such account. The Borrower acknowledges:  (1)  that such  debit entries  may cause  an overdraft of such account which  may result in the Bank’s refusal to honor  items drawn on such account until adequate deposits are made to  such account; (2) that the Bank is under no duty or obligation to initiate any debit entry for any purpose; and (3) that if a debit is not made because the above-referenced account does not have a sufficient available balance, or otherwise, the payment may be late or past due.
Late Fee. Any principal or interest which  is not paid within 10 days  after its due date (whether  as stated, by acceleration or  otherwise)  shall  be subject to a late payment charge of five percent  (5.00%) of the total payment due,  in addition to the payment of  interest,  up to  the  maximum amount of One Thousand Five Hundred and 00/100 Dollars ($1,500.00) per late charge. The  Borrower agrees to pay and stipulates that five percent (5.00%) of the total payment due is a reasonable amount for a late payment charge. The Borrower shall pay the late payment charge upon demand by the Bank or, if billed, within the time specified.

Purpose of Loan. The Borrower acknowledges and agrees that this Note evidences a loan for a business, commercial, agricultural or similar commercial enterprise purpose, and that no advance shall be used for any personal, family or household purpose. The proceeds  of  the  loan  shall be used only for the Borrower's working capital purposes.

Credit Facility. The Bank has  approved a credit facility to the Borrower in a principal amount not to  exceed the face  amount of this Note.    The credit facility is in the form of advances made from time to time by the Bank to the Borrower. This Note evidences the Borrower's  obligation to repay those advances. The aggregate principal amount of debt evidenced by this  Note is  the  amount reflected from time to  time  in the records of the Bank. Until the earliest to occur of maturity, any default, event of default, or any event that would constitute a default or event of default but for the giving of notice, the lapse of time or both, the Borrower may borrow, pay down  and reborrow under  this Note subject to the terms of the Related Documents.

Renewal and Extension. This Note is given in replacement, renewal and/or extension of, but not in extinguishment of the indebtedness evidenced by, that Line of Credit Note dated July 12, 2017 executed by the Borrower in the original principal amount of Ten  Million  and  00/100 Dollars ($10,000,000.00), including previous renewals or modifications thereof, if any (the "Prior Note" and together with all loan agreements, credit agreements, reimbursement agreements, security agreements, mortgages, deeds of trust, pledge agreements, assignments, guaranties, and any other instrument or document executed in connection with the Prior Note, the "Prior Related Documents"), and is not a novation thereof. All interest evidenced by the Prior Note shall continue to be due and payable until paid. The Borrower fully, finally, and  forever releases and discharges the Bank and its successors, assigns, directors, officers, employees, agents, and representatives (each a "Bank Party") from any and all causes of action, claims, debts, demands, and liabilities, of whatever kind or nature,  in  law  or  equity,  of  the Borrower, whether now known or unknown to the Borrower (i) in respect of the Liabilities evidenced by the Prior Note and the Prior Related Documents, or of the actions or omissions of any Bank Party in any manner related to the Liabilities evidenced by the Prior Note or the Prior Related Documents and (ii) arising from events occurring prior to the date of this Note. If applicable, all Collateral continues to secure the payment of this Note and the Liabilities. The provisions of this Note are effective on the date that this Note has been executed by all of the signers and delivered to the Bank.

Per Annum. In this Note the term "Per Annum" means for a year deemed to be comprised of 360 days.

Miscellaneous. This Note binds the Borrower and its successors, and benefits the Bank, its successors and assigns. Any reference to the Bank includes any holder of this Note. This Note is subject to that certain Credit Agreement by and between the Borrower  and  the Bank,  dated August 18, 2014, and all amendments, restatements and replacements thereof (the "Credit Agreement") to which reference is hereby made for      a more complete statement of the terms and conditions under which the loan evidenced hereby is made and is to be repaid. The terms and provisions of the Credit Agreement are hereby incorporated and made a part hereof by this reference thereto with the same  force and effect as    if set forth at length herein. No reference to the Credit Agreement and no provisions of this Note or the Credit Agreement shall alter or impair   the  absolute and unconditional obligation of  the Borrower  to pay the principal and interest on this Note as  herein prescribed.  Capitalized  terms not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement. If any one or more of  the  obligations of the Borrower under this Note or any provision hereof is held to be invalid, illegal or unenforceable in any jurisdiction,  the  validity, legality and enforceability of the remaining obligations of the Borrower and the  remaining  provisions  shall  not  in  any way be affected or impaired; and the invalidity, illegality or unenforceability in  one jurisdiction  shall not affect the validity, legality or  enforceability  of such obligations or provisions in any other jurisdiction. Time is of the essence under this Note and in the performance  of  every term, covenant and obligation contained herein.

Address:       17800 North 85th Street                 
Scottsdale, AZ 85255

Borrower
Axon Enterprise Inc.

By:  /s/ Jawad Ahsan                    
       Jawad Ahsan, CFO

Date Signed: 12/21/2017

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