Document:

Exhibit 10.1

 

LIMITED WAIVER AND AMENDMENT

 

LIMITED WAIVER AND AMENDMENT dated as of September 13, 2019 (this “Limited Waiver and Amendment”) to the Superpriority Senior Secured Priming Debtor-in-Possession Credit Agreement dated as of May 15, 2019, by and among Cloud Peak Energy Inc., a Delaware corporation and a debtor and debtor-in-possession under chapter 11 of the Bankruptcy Code (the “CPE”), the other Persons party hereto from time to time as a “Borrower”, the Persons party thereto from time to time as “Lenders”, and Ankura Trust Company, LLC, as administrative agent (in such capacity, including any sub-agent or any successor or assignee of any of the foregoing, the “Administrative Agent”) and as collateral agent (in such capacity, including any sub-agent or any successor or assignee of any of the foregoing, the “Collateral Agent”) (as amended, supplemented, restated or otherwise modified from time to time prior to the date hereof, the “Existing Credit Agreement”).

 

RECITALS:

 

WHEREAS, the parties hereto desire to amend the Existing Credit Agreement upon the terms and conditions set forth herein.

 

WHEREAS, an Event of Default has occurred and is continuing as a result of the non-compliance with the Approved Budget as required under Section 5.16 of the Existing Credit Agreement due to an Unpermitted Variance with respect to receipts for the week ending on September 6, 2019 (together with any failure to satisfy notice requirements with respect to such Event of Default, collectively the “Specified Default”) and the Borrowers have requested that the Required Lenders waive the Specified Default.

 

WHEREAS, the Lenders  party hereto collectively constitute the Required Lenders and the requisite Lenders to effectuate the amendments to the Existing Credit Agreement set forth herein and the waiver of the Specified Default.

 

1.                                      Defined Terms.  Capitalized terms used and not otherwise defined herein, including the recitals, have the meanings assigned to them in the Existing Credit Agreement, as amended hereby (the “Amended Credit Agreement”).

 

2.                                      Limited Waiver and Amendment.

 

(a)                                 Subject to the satisfaction of the conditions set forth in Section 4 and in reliance on the representations, warranties, covenants and agreements set forth in this Limited Waiver and Amendment, the Lenders party hereto which collectively constitute the Required Lenders hereby waive the Specified Default.  Except for the limited waiver set forth herein, nothing contained herein shall be deemed a consent to or waiver of any other Default or Event of Default or any action or inaction of any Borrower that requires consent of any Agent or Lender, constitutes a violation of any provision of the Existing Credit Agreement or any other Loan Document, or that has resulted or will result in a Default or an Event of Default under the Existing Credit Agreement or any other Loan Document.  Agents and Lenders shall not be obligated to grant any future consents, waivers or amendments with respect to the Existing Credit Agreement or any other Loan Document.  No failure or delay on the part of any Agent or Lenders to exercise any right or remedy under the Existing Credit Agreement, any other Loan Document or applicable law shall operate as a waiver thereof or give rise to any course of conduct defense, nor shall any single or partial exercise of any right or remedy preclude any other or further exercise of any right or remedy, all of which are cumulative and are hereby reserved.

 

 

(b)                                 Each party hereto agrees that, effective on the Amendment Effective Date, paragraph (g) of Section 5.15 of the Existing Credit Agreement shall be amended and restated as follows:

 

“(g)                            No later than September 20, 2019, the Bankruptcy Court shall have entered a 363 Sale Order, in form and substance reasonably satisfactory to the Required Lenders, with respect to an Acceptable 363 Sale in the Cases.”

 

3.                                            Representations and Warranties.  Each Borrower party hereto represents and warrants to the Agents and the Lenders, on and as of the Limited Waiver and Amendment Effective Date (after giving effect to this Limited Waiver and Amendment) that:

 

(a)                                 Each Borrower and each of the Subsidiaries (a) is a partnership, limited liability company or corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, formation or incorporation, (b) has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals to own its assets and to carry on its business as now conducted, (c) is duly qualified and is licensed and, as applicable, in good standing, under the laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification or license and (d) subject, in the case of each Borrower that is a Debtor, to the terms of the DIP Orders, has the power and authority to execute, deliver and perform its obligations under this Limited Waiver and Amendment and to perform the transactions contemplated thereby.

 

(b)                                 Subject to the terms of the DIP Orders, the execution, delivery and performance by each Borrower and each of the Subsidiaries of this Limited Waiver and Amendment (a) have been duly authorized by all corporate, stockholder, limited liability company or partnership or other organizational action required to be obtained by such Borrower and such Subsidiaries and (b) (i) do not violate (A) any provision of law, statute, rule or regulation (including, without limitation, any Mining Law), or contravene the terms of any Organizational Document of any Borrower or any Subsidiary, (B) any applicable order of any court or any rule, regulation or order of any Governmental Authority (including, without limitation, any Mining Permit) or (C) any indenture, lease (including, without limitation, any Mining Lease), agreement or other instrument to which any such Borrower or any such Subsidiary is a party or by which any of them or any of their respective assets are or may be bound, except in respect of the Existing Indenture Documents, (ii) are not in conflict with, and do not result in a breach of or constitute (alone or with notice or lapse of time or both) a default under, give rise to a right of or result in any cancellation or acceleration of any right or obligation (including any payment) or to a loss of a material benefit under, any indenture, lease (including, without limitation, any Mining Lease), or other similar agreement or instrument, except in respect of the Existing Indenture Documents, or (iii) conflict with or result in any breach or contravention of, or the creation or imposition of any Lien (except for any Liens that arise under the Loan Documents) upon or with respect to any assets now owned or hereafter acquired by any Borrower or any such Subsidiary, or require any payment to be made under (A) any contractual obligation to which such Borrower or such Subsidiary is a party or affecting such Borrower or such Subsidiary or the properties of such Borrower, such Subsidiary or any of its or their Subsidiaries, except in respect of the Existing Indenture Documents or (B) any order, injunction, writ or decree of any governmental authority or any arbitral award to which such Borrower or such Subsidiary or its or their property is subject.

 

2

 

(c)                                  Subject, in the case of each Borrower that is a Debtor, to the terms of the DIP Orders, this Limited Waiver and Amendment has been duly executed and delivered by each Borrower and constitutes a legal, valid and binding obligation of such Borrower enforceable against each such Borrower in accordance with its terms, subject to (i) except in the case of each Borrower that is not a Debtor, the effects of bankruptcy, insolvency, moratorium, reorganization, fraudulent conveyance or other similar laws affecting creditors’ rights generally, (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and (iii) implied covenants of good faith and fair dealing.

 

(d)                                 Subject to the terms of the DIP Orders, no action, consent or approval of, registration or filing with or any other action by any Governmental Authority is or will be required in connection with this Limited Waiver and Amendment except for (a) such consents, authorizations, filings or other actions that (i) have been made or obtained and are in full force and effect, (ii) notices required under the Mining Permits and Environmental Permits regarding a change in control solely to the extent required for the exercise of remedies in respect of the Liens created hereunder, which will be given to the applicable Governmental Authority on or prior to the date by which such notices are due or (iii) are listed on Schedule 3.04 of the Existing Credit Agreement and (b)  such actions, consents and approvals the failure to be obtained or made which would not reasonably be expected to have a Material Adverse Effect.

 

4.                                      Conditions to Effectiveness.  The date on which the Administrative Agent shall have received counterparts to this Limited Waiver and Amendment executed by the Administrative Agent, the Collateral Agent, each Borrower and Lenders which collectively constitute the Required Lenders as of the date of this Limited Waiver and Amendment shall be referred to as the “Limited Waiver and Amendment Effective Date”.

 

5.                                      Ratification.  Subject to the limited waiver of the Specified Default and the amendment set forth in Section 2, the Existing Credit Agreement and each of the other Loan Documents remain in full force and effect and are hereby ratified and affirmed as of the Limited Waiver and Amendment Effective Date.  Each Borrower expressly confirms that, with effect from (and including) the Limited Waiver and Amendment Effective Date, the Security Documents shall apply and extend to the liabilities and obligations of each relevant Borrower under the Amended Credit Agreement and the other Loan Documents.

 

6.                                      Miscellaneous.  This Limited Waiver and Amendment shall be limited precisely as written and, except as expressly provided herein, shall not be deemed (a) to be a consent granted pursuant to, or a waiver or modification of, any term or condition of the Existing Credit Agreement, any other Loan Documents or any of the instruments or agreements referred to therein or (b) to prejudice any right or rights which the Agents or the other Secured Parties may now have or have in the future under or in connection with the Existing Credit Agreement, the other Loan Documents or any of the instruments or agreements referred to therein. Unless the context indicates otherwise, on and after the Amendment Effective Date, whenever the Existing Credit Agreement is referred to in the Amended Credit Agreement or other Loan Documents or any of the instruments, agreements or other documents or papers executed or delivered in connection therewith, such reference shall be deemed to mean the Amended Credit Agreement.  The Borrowers agree that their obligations set forth in Section 9.05 of the Amended Credit Agreement shall extend to the preparation, execution and delivery of this Limited Waiver and Amendment.  This Limited Waiver and Amendment is hereby deemed to be a Loan Document for purposes of each Loan Document.

 

3

 

7.                                      Counterparts.  This Limited Waiver and Amendment may be executed in two or more counterparts, each of which shall constitute an original but all of which, when taken together, shall constitute but one contract, and shall become effective as provided in Section 10.03 of the Existing Credit Agreement.  Delivery of an executed counterpart to this Limited Waiver and Amendment by facsimile or electronic transmission shall be as effective as delivery of a manually signed original.

 

8.                                      Governing Law.  THIS LIMITED WAIVER AND AMENDMENT AND ALL ACTIONS ARISING UNDER THIS LIMITED WAIVER AND AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK AND (TO THE EXTENT APPLICABLE) THE BANKRUPTCY CODE.

 

9.                                      Entire Agreement.  This Limited Waiver and Amendment constitutes the entire contract between the parties relative to the subject matter hereof.  Any previous agreement among or representations from the parties or their Affiliates with respect to the subject matter hereof is superseded by this Limited Waiver and Amendment. Nothing in this Limited Waiver and Amendment, expressed or implied, is intended to confer upon any party other than the parties hereto and thereto any rights, remedies, obligations or liabilities under or by reason of this Limited Waiver and Amendment.  To the extent that any provision herein is inconsistent with any term of the DIP Orders, the DIP Orders shall control.

 

10.                               Severability.  In the event any one or more of the provisions contained in this Limited Waiver and Amendment should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected or impaired thereby.  The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

 

11.                               Waiver of Jury Trial; Jurisdiction.             The provisions of Sections 10.11 and 10.15 of the Existing Credit Agreement shall apply to this Limited Waiver and Amendment, mutatis mutandis.

 

[SIGNATURE PAGES FOLLOW]

 

4

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective authorized officers as of the day and year first above written.

 

	
 
    	
CLOUD PEAK ENERGY INC.,
    
	
 
    	
CLOUD PEAK ENERGY RESOURCES LLC
    
	
 
    	
CABALLO ROJO HOLDINGS LLC,
    
	
 
    	
CORDERO MINING HOLDINGS LLC,
    
	
 
    	
CLOUD PEAK ENERGY SERVICES COMPANY,
    
	
 
    	
NERCO LLC,
    
	
 
    	
CLOUD PEAK ENERGY FINANCE CORP.,
    
	
 
    	
CABALLO ROJO LLC,
    
	
 
    	
CORDERO MINING LLC,
    
	
 
    	
NERCO COAL LLC,
    
	
 
    	
CORDERO OIL AND GAS LLC,
    
	
 
    	
CLOUD PEAK ENERGY LOGISTICS LLC,
    
	
 
    	
BIG METAL COAL CO. LLC,
    
	
 
    	
ANTELOPE COAL LLC,
    
	
 
    	
KENNECOTT COAL SALES LLC,
    
	
 
    	
PROSPECT LAND AND DEVELOPMENT LLC,
    
	
 
    	
SPRING CREEK COAL LLC,
    
	
 
    	
SEQUATCHIE VALLEY COAL CORPORATION,
    
	
 
    	
CLOUD PEAK ENERGY LOGISTICS I LLC,
    
	
 
    	
ARROWHEAD I LLC,
    
	
 
    	
WESTERN MINERALS LLC,
    
	
 
    	
RESOURCE DEVELOPMENT LLC,
    
	
 
    	
NERCO COAL SALES LLC,
    
	
 
    	
ARROWHEAD II LLC,
    
	
 
    	
ARROWHEAD III LLC,
    
	
 
    	
YOUNGS CREEK HOLDINGS I LLC,
   YOUNGS CREEK HOLDINGS II LLC,
   and YOUNGS CREEK MINING COMPANY, LLC, as Borrowers
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Bryan Pechersky
    
	
 
    	
Name:
    	
Bryan Pechersky
    
	
 
    	
Title:
    	
Executive Vice President, General Counsel and Corporate   Secretary
    

 

[Signature Page to Limited Waiver and Amendment]

 

 

	
 
    	
ANKURA TRUST COMPANY, LLC, as Administrative   Agent and Collateral Agent
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael J. Fey
    
	
 
    	
Name:
    	
Michael J. Fey
    
	
 
    	
Title:
    	
Managing Director
    

 

[Signature Page to Limited Waiver]

 

 

	
 
    	
Arena Short   Duration High Yield Fund, L.P., Series A, as Lender
    
	
 
    	
 
    
	
 
    	
By: ARENA CAPITAL ADVISORS, LLC
   for and on behalf of the funds and accounts it manages
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sanije Perrett
    
	
 
    	
Name:
    	
Sanije Perrett
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    
	
 
    	
Arena Short   Duration High Yield Fund, L.P., Series B, as Lender
    
	
 
    	
 
    
	
 
    	
By: ARENA CAPITAL ADVISORS, LLC
   for and on behalf of the funds and accounts it manages
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sanije Perrett
    
	
 
    	
Name:
    	
Sanije Perrett
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    
	
 
    	
Arena Short   Duration High Yield Fund, L.P., Series C, as Lender
    
	
 
    	
 
    
	
 
    	
By: ARENA CAPITAL ADVISORS, LLC
   for and on behalf of the funds and accounts it manages
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sanije Perrett
    
	
 
    	
Name:
    	
Sanije Perrett
    
	
 
    	
Title:
    	
President
    

 

[Signature Page to Limited Waiver]

 

 

	
 
    	
Arena Short   Duration High Yield Fund, L.P., Series D, as Lender
    
	
 
    	
 
    
	
 
    	
By: ARENA CAPITAL ADVISORS, LLC
   for and on behalf of the funds and accounts it manages
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sanije Perrett
    
	
 
    	
Name:
    	
Sanije Perrett
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
Arena VII, LLC, as   Lender
    
	
 
    	
 
    
	
 
    	
By: ARENA CAPITAL ADVISORS, LLC
   for and on behalf of the funds and accounts it manages
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sanije Perrett
    
	
 
    	
Name:
    	
Sanije Perrett
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    
	
 
    	
INKA for the   account of beTurn,
    
	
 
    	
 
    
	
 
    	
By: ARENA CAPITAL ADVISORS, LLC
   for and on behalf of the funds and accounts it manages
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sanije Perrett
    
	
 
    	
Name:
    	
Sanije Perrett
    
	
 
    	
Title:
    	
President
    

 

[Signature Page to Limited Waiver]

 

 

	
 
    	
TDC, National   Assurance Company
    
	
 
    	
 
    
	
 
    	
By: ARENA CAPITAL ADVISORS, LLC
   for and on behalf of the funds and accounts it manages
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sanije Perrett
    
	
 
    	
Name:
    	
Sanije Perrett
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    
	
 
    	
The Doctor’s   Company, an Interinsurance Exchange
    
	
 
    	
 
    
	
 
    	
By: ARENA CAPITAL ADVISORS, LLC
   for and on behalf of the funds and accounts it manages
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sanije Perrett
    
	
 
    	
Name:
    	
Sanije Perrett
    
	
 
    	
Title:
    	
President
    

 

[Signature Page to Limited Waiver]

 

 

	
 
    	
GRACE   BROTHERS, LP, as Lender
    
	
 
    	
 
    
	
 
    	
By: BRO-GP, its General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Bradford T.   Whitmore
    
	
 
    	
Name:
    	
Bradford T.   Whitmore
    
	
 
    	
Title:
    	
Manager
    

 

[Signature Page to Limited Waiver]

 

 

	
 
    	
TIAA Global Public Investments, LLC -   Series Loan, as Lender
    
	
 
    	
 
    
	
 
    	
By: Teachers Advisors, LLC, its investment   manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ji Min Shin
    
	
 
    	
Name:
    	
Ji Min Shin
    
	
 
    	
Title:
    	
Senior Director
    
	
 
    	
 
    	
 
    
	
 
    	
TIAA Global Public Investments, LLC —   Series High Yield, as Lender
    
	
 
    	
 
    
	
 
    	
By: Teachers Advisors, LLC, its investment   manager
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ji Min Shin
    
	
 
    	
Name:
    	
Ji Min Shin
    
	
 
    	
Title:
    	
Senior Director
    
	
 
    	
 
    	
 
    
	
 
    	
TIAA-CREF High Yield Fund, as Lender
    
	
 
    	
 
    
	
 
    	
By: Teachers Advisors, LLC, its investment   manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ji Min Shin
    
	
 
    	
Name:
    	
Ji Min Shin
    
	
 
    	
Title:
    	
Senior Director
    
	
 
    	
 
    	
 
    
	
 
    	
TIAA-CREF Bond Plus Fund, as Lender
    
	
 
    	
 
    
	
 
    	
By: Teachers Advisors, LLC, its investment   manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ji Min Shin
    
	
 
    	
Name:
    	
Ji Min Shin
    
	
 
    	
Title:
    	
Senior Director
    

 

[Signature Page to Limited Waiver]

 

 

	
 
    	
Teachers Insurance and Annuity Association of   America, as Lender
    
	
 
    	
 
    
	
 
    	
By: Nuveen   Alternatives Advisors LLC, its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ji Min Shin
    
	
 
    	
Name:
    	
Ji Min Shin
    
	
 
    	
Title:
    	
Senior Director
    

 

[Signature Page to Limited Waiver]

 

 

	
 
    	
American Century U.S. High Yield Corporate   Bond Collective Fund, as Lender
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
Illinois State   Board of Investment, as Lender
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
American Century Investment Trust — High   Income Fund, as Lender
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    

 

[Signature Page to Limited Waiver]

 

 

	
 
    	
Nomura   Bond & Loan Fund, as Lender
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
Louisiana State   Employees’ Retirement System, as Lender
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset Management, Inc.,   its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
Stichting   Pensioenfonds Hoogovens, as Lender
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    

 

[Signature Page to Limited Waiver]

 

 

	
 
    	
Mars Associates Retirement Plan, as Lender
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
Stichting Mars Pensioenfonds, as Lender
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
Montgomery County Consolidated Retiree Health   Benefits Trust, as Lender
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    

 

[Signature Page to Limited Waiver]

 

 

	
 
    	
Montgomery County Employees’ Retirement   System, as Lender
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
Nomura US Attractive Yield Corporate Bond   Fund Mother Fund, as Lender
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
L-3 Communications Corporation Master Trust,   as Lender
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    

 

[Signature Page to Limited Waiver]

 

 

	
 
    	
Northern Multi-Manager High Yield Opportunity   Fund, as Lender
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
General Organization for Social Insurance, as   Lender
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
PensionDanmark
   Pensionforsikringsaktieselskab, as Lender
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    

 

[Signature Page to Limited Waiver]

 

 

	
 
    	
 
    	
PACE High Yield Investments, as Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Government of Guam Retirement Fund, as Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
 
    	
Name: 
    	
Stephen Kotsen
    
	
 
    	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Ohio Public Employees Retirement System, as   Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
 
    	
Title:
    	
Managing Director
    

 

[Signature Page to Limited Waiver]

 

 

	
 
    	
 
    	
Pinnacol Assurance, as Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Nomura Funds Ireland plc — Global High Yield   Bond Fund, as Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Kapitalforeningen MP Invest High yield   obligationer V, as Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
 
    	
Title:
    	
Managing Director
    

 

[Signature Page to Limited Waiver]

 

 

	
 
    	
 
    	
The State of Connecticut Acting Through Its   treasurer, as Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Blue Cross and Blue Shield Association   National Retirement Trust, as Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
American Century Investment Trust - NT High   Income Fund, as Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
 
    	
Title:
    	
Managing Director
    

 

[Signature Page to Limited Waiver]

 

 

	
 
    	
 
    	
Stichting Pensioenfonds TNO, as Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Delta Master Trust, as Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Commonwealth of Massachusetts Employees   Deferred Compensation Plan, as Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
 
    	
Title:
    	
Managing Director
    

 

[Signature Page to Limited Waiver]

 

 

	
 
    	
 
    	
National Railroad Retirement Investment   Trust, as Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Delta Pilots Disability and Survivorship   Trust, as Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
 
    	
Title:
    	
Managing Director
    

 

[Signature Page to Limited Waiver]

 

 

	
 
    	
 
    	
WEXFORD CATALYST INVESTORS LLC
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ George C. Landrove Jr.
    
	
 
    	
 
    	
Name:
    	
George C. Landrove Jr.
    
	
 
    	
 
    	
Title:
    	
Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
WEXFORD SPECTRUM INVESTORS LLC
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ George C. Landrove Jr.
    
	
 
    	
 
    	
Name:
    	
George C. Landrove Jr.
    
	
 
    	
 
    	
Title:
    	
Vice President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
DEBELLO INVESTORS LLC
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ George C. Landrove Jr.
    
	
 
    	
 
    	
Name:
    	
George C. Landrove Jr.
    
	
 
    	
 
    	
Title:
    	
Vice President and Treasurer
    

 

[Signature Page to Limited Waiver]

 

 

	
 
    	
 
    	
WOLVERINE FLAGSHIP FUND TRADING LIMITED, as Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: Wolverine Asset Management, LLC, its   investment manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Niraj Patel
    
	
 
    	
 
    	
Name:
    	
Niraj Patel
    
	
 
    	
 
    	
Title:
    	
Chief Legal Officer
    
					

 

[Signature Page to Limited Waiver]Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement
(this “Agreement”) is entered into as of September 17, 2019, by and between Aware, Inc., a Massachusetts corporation
with its principal offices located at 40 Middlesex Turnpike, Bedford, Massachusetts 01730 (together with its successors and assigns,
the "Company"), and Robert A. Eckel (the "Executive").

 

WHEREAS, the Company desires
to employ the Executive on the terms and conditions of this Agreement; and

 

WHEREAS, the Executive
desires to become an employee of the Company on the terms and conditions of this Agreement;

 

NOW, THEREFORE, in consideration
of the mutual covenants and agreements set forth herein, the parties agree as follows:

 

1.                 
Employment.

 

      1.1.           
Term. The term of this Agreement shall commence on the date the Executive begins employment with the Company (the “Effective
Date”) and shall continue until terminated in accordance with the provisions hereof (the “Term”). The Executive’s
employment with the Company will be “at will,” meaning that the Executive’s employment may be terminated by the
Company or the Executive at any time and for any reason subject to the terms of this Agreement.

 

      1.2.           
Position and Duties. During the Term, the Executive shall serve as the President and Chief Executive Officer of the Company,
and shall have supervision and control over and responsibility for the day-to-day business and affairs of the Company and shall
have such other powers and duties as may from time to time be prescribed by the Board of Directors of the Company (the “Board”).
The Executive shall devote his full working time and efforts to the business and affairs of the Company. Notwithstanding the foregoing,
the Executive may serve on other boards of directors, with the approval of the Board, or engage in religious, charitable or other
community activities as long as such services and activities are disclosed to the Board and do not materially interfere with the
Executive’s performance of his duties to the Company as provided in this Agreement. For the avoidance of doubt, the Executive
may continue to serve in the roles set forth in Schedule 1 hereto without the necessity of further approval from the Board, provided
that no conflicts result in the future from the Executive’s service in such roles. If a conflict serving in such role ever
does exist, the Executive shall immediately notify the Board. At any time, the Board, in its sole discretion, may require that
the Executive promptly resign from any role on Schedule 1 upon written notice. 

 

2.                 
Compensation and Related Matters.

 

       2.1.           
Base Salary. During the Term, the Executive’s annual base salary will be $300,000. The Executive’s base salary
shall be reviewed annually by the Board or the Compensation Committee of the Board (the “Compensation Committee”).
The base salary in effect at any given time is referred to herein as “Base Salary.” The Base Salary shall be payable
in a manner that is consistent with the Company’s usual payroll practices for executive officers.

 

    -1-

     

    

 

     2.2.           
Incentive Compensation. During the Term, the Executive shall be eligible to receive annual cash incentive compensation as
determined by the Board or the Compensation Committee from time to time. The Executive’s initial target annual incentive
compensation shall be up to 50% of his Base Salary and tied to Company performance targets as determined by the Compensation Committee.
To earn incentive compensation, the Executive must be employed by the Company on the day such incentive compensation is paid.

 

       2.3.           
Expenses. The Executive shall be entitled to receive prompt reimbursement for all reasonable expenses incurred by him during
the Term in performing services hereunder, in accordance with the policies and procedures then in effect and established by the
Company for its executive officers.

 

       2.4.           
Equity. At the first meeting of the Compensation Committee after the Effective Date, the Company shall grant the Executive:
(a) a performance share award of 20,000 shares of the Company’s common stock, which such shares shall be issued to the Executive
on the date of such Compensation Committee meeting and will be forfeitable if the Executive is not serving as a director, officer
or employee of the Company or any subsidiary of the Company on the six month anniversary of the Effective Date; (b) an unrestricted
stock award of 80,000 shares of the Company’s common stock (the “80,000 Share Award”), which such shares shall
be issued and vested to the Executive in four (4) equal installments on each of the first, second, third and fourth anniversaries
of the Effective Date provided the Executive is serving as a director, officer or employee of the Company or any subsidiary of
the Company on such date; (c) an unrestricted stock award of 15,000 shares of the Company’s common stock, which such shares
shall be issued to the Executive on December 31, 2019 provided the Executive is serving as a director, officer or employee of the
Company or any subsidiary of the Company on such date; (d) a stock option for 50,000 shares of the Company’s Common Stock
with an exercise price per share equal to the greater of (i) the fair market value of a share of the Company’s common stock
on the date of grant or (ii) $4.50 (such exercise price referred to as the “Base Exercise Price”) and vesting over
four years; (e) a stock option for 50,000 shares of the Company’s Common Stock with an exercise price per share equal to
the Base Exercise Price plus $1.00 and vesting over four years; (f) a stock option for 50,000 shares of the Company’s Common
Stock with an exercise price per share equal to the Base Exercise Price plus $2.00 and vesting over four years; and (g) a stock
option for 50,000 shares of the Company’s Common Stock with an exercise price per share equal to the Base Exercise Price
plus $3.00 and vesting over four years. All stock options must be exercised within 60 days of the Executive ceasing to be an employee
of, or paid consultant to, the Company.

 

       2.5.           
Additional Equity. In addition to the equity granted pursuant to Section 2.4, the Executive shall be eligible to receive
such additional equity awards of the Company from time to time as determined by the Compensation Committee or the Board. 

 

       2.6.           
Other Benefits. During the Term, the Executive shall be eligible to participate in or receive benefits under the Company’s
employee benefit plans in effect from time to time, subject to the terms of such plans. Additionally, during the Term, the Executive
shall be eligible to receive such benefits and perquisites as those made available to the other employees of the Company generally
and to similarly situated senior executives of the Company. 

 

    -2-

     

    

 

     2.7.           
Vacations. During the Term, the Executive shall be entitled to paid vacation in accordance with the Company’s policies
and procedures, which at the outset shall be 20 days in addition to the Company’s paid holidays. The vacation time will increase
over time if the Company’s policies so provide. The Executive shall also be entitled to all paid holidays given by the Company
to its executive officers.

 

3.                 
Termination. During the Term, the Executive’s employment hereunder may be terminated without any breach of this Agreement
under the following circumstances:

 

       3.1.           
Death. The Executive’s employment hereunder shall terminate upon his death.

 

       3.2.           
Disability. The Company may terminate the Executive’s employment if he is disabled and unable to perform the essential
functions of the Executive’s then existing position or positions under this Agreement with any reasonable accommodation required
by law for a period of 180 days (which need not be consecutive) in any 12-month period. If any question shall arise as to whether
during any period the Executive is disabled so as to be unable to perform the essential functions of the Executive’s then
existing position or positions with any reasonable accommodation required by law, the Executive may, and at the request of the
Company shall, submit to the Company a certification in reasonable detail by a physician selected by the Company to whom the Executive
or the Executive’s guardian has no reasonable objection as to whether the Executive is so disabled or how long such disability
is expected to continue, and such certification shall for the purposes of this Agreement be conclusive of the issue. The Executive
shall cooperate with any reasonable request of the physician in connection with such certification. If such question shall arise
and the Executive shall fail to submit such certification, the Company’s determination of such issue shall be binding on
the Executive. Nothing in this Section 3.2 shall be construed to waive the Executive’s rights, if any, under existing law
including, without limitation, the Family and Medical Leave Act of 1993, 29 U.S.C. §2601 et seq. and the Americans with Disabilities
Act, 42 U.S.C. §12101 et seq.

 

       3.3.           
Termination by Company for Cause. The Company may terminate the Executive’s employment hereunder for Cause. For purposes
of this Agreement, “Cause” shall mean: (a) the Executive has been charged by the United States or a state or political
subdivision thereof with conduct which is a felony or which is a misdemeanor involving moral turpitude, deceit, dishonesty or fraud
under the laws of the United States or any state or political subdivision thereof; (b) fraud or embezzlement by the Executive with
respect to funds of the Company or dishonest, unethical or improper conduct by the Executive that has had, or is reasonably likely
to have, a material adverse impact on the reputation for honesty and fair dealing of the Company; (c) the Executive’s failure
to comply with lawful instructions not inconsistent with this Agreement given to the Executive by the Board, which failure is not
cured or corrected within thirty (30) days after the Executive’s receipt of written notice from the Company referring to
this Section and describing with specificity the instructions with which the Executive did not comply; (d) the Executive’s
material failure to comply with reasonable policies, directives, standards and regulations adopted by the Company, including, without
limitation, the Company’s policies regarding insider trading, except any such failure, that, if capable of cure, is remedied
by the Executive within thirty (30) days after the Executive’s receipt of written notice from the Company referring to this
paragraph and describing with specificity the failure of the Executive to comply; and (e) material breach by the Executive of the
Employee Non-Disclosure and Intellectual Property Agreement by and between the Executive and the Company (the “Employee Agreement”)
or any other written agreement between the Executive and the Company.

 

    -3-

     

    

 

       3.4.           
Termination Without Cause. The Company may terminate the Executive’s employment hereunder at any time without Cause.
Any termination by the Company of the Executive’s employment under this Agreement which does not constitute a termination
for Cause under Section 3.3 and does not result from the death or disability of the Executive under Section 3.1 or 3.2 shall be
deemed a termination without Cause.

 

       3.5.           
Termination by the Executive. The Executive may terminate his employment hereunder at any time for any reason, including
but not limited to Good Reason. For purposes of this Agreement, “Good Reason” shall mean the occurrence of any of the
following events: (a) a relocation of the Executive's principal workplace to a location more than 50 miles from Bedford, Massachusetts
without the Executive's express written consent; (b) a material diminution in the Executive’s authority or responsibilities,
provided that after a Change of Control a change in title or reporting relationship or a change in the Executive’s authority
or responsibilities from President and Chief Executive Officer to a senior executive position shall not be deemed to constitute
such a material diminution, or the assignment to the Executive of duties or responsibilities inappropriate to the office of a senior
executive; or (c) a material diminution in the Executive's compensation or benefits without the express written consent of the
Executive; provided, that no such event or occurrence shall constitute Good Reason unless (x) written notice thereof is given by
the Executive to the Company within ninety (90) days of its occurrence, (y) the Company shall fail to remedy or cure such event
or occurrence within thirty (30) days following its receipt of such notice from the Executive (the “Cure Period”),
and (z) the Executive shall within sixty (60) days after the expiration of such 30-day period give written notice to the Company
of his election to terminate his employment pursuant to this paragraph by reason of such event or occurrence.

 

       3.6.           
Notice of Termination. Except for termination as specified in Section 3.1, any termination of the Executive’s employment
by the Company or any such termination by the Executive shall be communicated by written Notice of Termination to the other party
hereto. For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific
termination provision in this Agreement relied upon.

 

       3.7.           
Date of Termination. “Date of Termination” shall mean: (i) if the Executive’s employment is terminated
by his death, the date of his death; (ii) if the Executive’s employment is terminated on account of disability under Section
3.2 or by the Company for Cause under Section 3.3, the date on which Notice of Termination is given; (iii) if the Executive’s
employment is terminated by the Company under Section 3.4, the date on which a Notice of Termination is given; (iv) if the Executive’s
employment is terminated by the Executive under Section 3.5 without Good Reason, thirty (30) days after the date on which a Notice
of Termination is given, and (v) if the Executive’s employment is terminated by the Executive under Section 3.5 with Good
Reason, the date on which a Notice of Termination is given after the end of the Cure Period. Notwithstanding the foregoing, in
the event that the Executive gives a Notice of Termination to the Company, the Company may unilaterally accelerate the Date of
Termination and such acceleration shall not result in a termination by the Company for purposes of this Agreement.

 

    -4-

     

    

 

4.                 
Compensation Upon Termination.

 

       4.1.            Termination
Generally. If the Executive’s employment with the Company is terminated for any reason, the Company shall pay or provide
to the Executive (or to his authorized representative or estate) (i) any Base Salary earned through the Date of Termination, unpaid
expense reimbursements (subject to, and in accordance with, Section 2.3 of this Agreement) and unused vacation that accrued through
the Date of Termination on or before the time required by law but in no event more than thirty (30) days after the Executive’s
Date of Termination; and (ii) any vested benefits the Executive may have under any employee benefit plan of the Company through
the Date of Termination, which vested benefits shall be paid and/or provided in accordance with the terms of such employee benefit
plans (collectively, the “Accrued Benefit”).

 

       4.2.            Termination
by the Company Without Cause or by the Executive with Good Reason. During the Term, if the Executive’s employment is terminated
by the Company without Cause as provided in Section 3.4, or the Executive terminates his employment for Good Reason as provided
in Section 3.5, then the Company shall pay the Executive his Accrued Benefit. In addition, subject to the Executive signing and
delivering to the Company a noncompetition agreement (the “Noncompete Agreement”) in substantially the form attached
hereto as Exhibit A and a general release (the “Release”) substantially in the form attached hereto as Exhibit B, with
the Release becoming irrevocable and fully effective and, if applicable, the Executive resigning as a member of the Board of Directors,
within 60 days after the Date of Termination:

 

		(i)	subject to clause (iv) below, the Company shall pay the Executive an amount equal to the Executive’s Base Salary paid
during the twelve (12) months immediately preceding the termination of the Executive’s employment with the Company, divided
by the number of days employed during the twelve (12) months immediately preceding the termination of the Executive’s employment
with the Company and multiplied by 365 (the “Severance Amount”);

 

		(ii)	notwithstanding anything to the contrary in any applicable option agreement or stock-based award agreement, all time-based
stock options and other time-based stock-based awards (including, without limitation, the 80,000 Share Award) held by the Executive
in which such stock option or other stock-based award would have vested if the Executive had remained employed for an additional
twelve (12) months following the Date of Termination shall vest and become exercisable or nonforfeitable as of the Date of Termination;

 

		(iii)	the Company paying the difference between the cost of COBRA continuation coverage, should the Executive elect to receive it,
for the Executive and any dependent who received health insurance coverage prior to termination of the Executive’s employment
with the Company, and any premium contribution amount applicable to the Executive as of such termination, for a period of twelve
(12) months following the date of termination of the Executive’s employment with the Company (“Continuation Benefits”).
Continuation Benefits otherwise receivable by the Executive will be reduced to the extent benefits of the same type are received
by or made available to him during the applicable twelve-month period (and any such benefits received by or made available to the
Executive shall be reported by him to the Company); and

 

    -5-

     

    

 

		(iv)	the amounts payable under Section 4.2(i) and (iii) shall be paid out in substantially equal installments in accordance with
the Company’s payroll practice over twelve (12) months commencing within 60 days after the Date of Termination; provided,
however, that if the 60-day period begins in one calendar year and ends in a second calendar year, the Severance Amount shall begin
to be paid in the second calendar year by the last day of such 60-day period; provided, further, that the initial payment shall
include a catch-up payment to cover amounts retroactive to the day immediately following the Date of Termination.

 

5.                 
Change of Control Payment.

 

       5.1.            The
provisions of this Section 5 set forth certain terms of an agreement reached between the Executive and the Company regarding the
Executive’s rights and obligations upon the occurrence of a Change of Control of the Company (as defined below). These provisions
are intended to assure and encourage in advance the Executive’s continued attention and dedication to his assigned duties
and his objectivity during the pendency and after the occurrence of any such event. These provisions shall apply in lieu of, and
expressly supersede, the provisions of Section 4.2 regarding severance pay and benefits upon a termination of employment, if such
termination of employment occurs within eighteen (18) months after the occurrence of the first event constituting a Change of Control.
These provisions shall terminate and be of no further force or effect beginning eighteen (18) months after the occurrence of a
Change of Control.

 

         (a)  
Change of Control. During the Term, if within eighteen (18) months after a Change of Control, the Executive’s
employment is terminated by the Company without Cause as provided in Section 3.4 or the Executive terminates his employment for
Good Reason as provided in Section 3.5, then, subject to the Executive signing and delivering to the Company the Noncompete Agreement
and the Release, and the Release becoming irrevocable and fully effective and, if applicable, the Executive resigning as a member
of the Board of Directors, all within 60 days after the Date of Termination (or such shorter time period provided in the Release):

 

		(i)	the Company shall pay the Executive a lump sum in cash an amount equal to (A) 1.5 times (B) the Executive’s Base Salary
paid during the twelve (12) months immediately preceding the termination of the Executive’s employment with the Company,
divided by the number of days employed during the twelve (12) months immediately preceding the termination of the Executive’s
employment with the Company and multiplied by 365 (the “Change of Control Severance Amount”);

 

		(ii)	notwithstanding anything to the contrary in any applicable option agreement or stock-based award agreement, (A) if the Change
of Control occurs on or before the one (1) year anniversary of the Effective Date, all time-based stock options and other time-based
stock-based awards (including, without limitation, the 80,000 Share Award) held by the Executive in which such stock option or
other stock-based award would have vested if the Executive had remained employed for an additional eighteen (18) months following
the Date of Termination shall vest and become exercisable or nonforfeitable as of the Date of Termination and (B) if the Change
of Control occurs after the one (1) year anniversary of the Effective Date, all time-based stock options and other time-based stock-based
awards (including, without limitation, the 80,000 Share Award) held by the Executive as of the occurrence of such Change of Control
shall immediately accelerate and become fully exercisable or nonforfeitable as of the Date of Termination;

 

    -6-

     

    

 

		(iii)	the Company paying the difference between the cost of COBRA continuation coverage, should the Executive elect to receive it,
for the Executive and any dependent who received health insurance coverage prior to termination of the Executive’s employment
with the Company, and any premium contribution amount applicable to the Executive as of such termination, for a period of eighteen
(18) months following the date of termination of the Executive’s employment with the Company (“Change of Control
Continuation Benefits”). Change of Control Continuation Benefits otherwise receivable by the Executive will be reduced
to the extent benefits of the same type are received by or made available to him during the applicable eighteen-month period (and
any such benefits received by or made available to the Executive shall be reported by him to the Company); and

 

		(iv)	the amounts payable under Section 5.1(a)(i) and 5.1(a)(iii) shall be paid or commence to be paid within 60 days after the Date
of Termination; provided, however, that if the 60-day period begins in one calendar year and ends in a second calendar year, the
Change of Control Severance Amount shall be paid in the second calendar year by the last day of such 60-day period.

 

       5.2.            Definition
of Change of Control. For purposes of this Agreement, a "Change of Control" shall mean the occurrence of any of the following:
(i) the acquisition by an individual, entity, group or any other person of beneficial ownership of more than fifty percent (50%)
or more of either (x) the then-outstanding shares of common stock of the Company or (y) the combined voting power of the election
of directors for the Company; and/or (ii) the sale of substantially all of the Company's assets or a merger or sale of stock
wherein the holders of the Company's capital stock immediately prior to such sale do not hold at least a majority of the outstanding
capital stock of the Company or its successor immediately following such sale; and/or (iii) the Company’s shareholders approve
and complete any plan or proposal for the liquidation or dissolution of the Company.

 

    -7-

     

    

 

6.                 
Other Provisions.

 

       6.1.           Amounts
Payable Less Withholding Taxes. The amounts payable by the Company hereunder shall be less any federal, state or local withholding
taxes and social security.

 

       6.2.            Parachute
Payments. It is the intention of the parties that no payment or benefit arising out of or in connection with a Change of Control
that is made or provided, or to be made or provided, by the Company to the Executive, whether pursuant to the terms of this Agreement
or any other plan, agreement, or arrangement (any such payment or benefit, a “Parachute Payment”) shall be non-deductible
to the Company by reason of the operation of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”)
relating to parachute payments.  Accordingly, and notwithstanding any other provision of this Agreement or any such agreement
or plan, if by reason of the operation of said Section 280G, any such Parachute Payments exceed the amount which can be deducted
by the Company, such Parachute Payments shall be reduced to the maximum amount which can be deducted by the Company.  To the
extent that Parachute Payments exceeding such maximum deductible amount have been made to the Executive or his beneficiary, he
or his beneficiary shall refund such excess payments to the Company with interest thereon at the Applicable Federal Rate determined
under Section 1274(d) of the Code, compounded annually, or at such other rate as may be required in order that no such payments
shall be non-deductible to the Company by reason of the operation of said Section 280G.  Any reduction in Parachute Payments
required to be made pursuant to this Section 6.2 shall be made first with respect to Parachute Payments payable in cash before
being made in respect to any Parachute Payments to be provided in the form of benefits or equity award acceleration, and in the
form of benefits before being made with respect to equity award acceleration, and in any case, shall be made with respect to such
Parachute Payments in inverse order of the scheduled dates or times for the payment or provision of such Parachute Payments.

 

       6.3.            Section
409A. It is intended that this Agreement comply with or be exempt from Section 409A of the Internal Revenue Code and the Treasury
Regulations and IRS guidance thereunder (collectively referred to as “Section 409A”). Notwithstanding anything to the
contrary in this Agreement, this Agreement shall, to the maximum extent possible, be administered, interpreted, and construed in
a manner consistent with Section 409A. If and to the extent required to comply with Section 409A, no payment or benefit required
to be paid under this Agreement on account of termination of the Executive’s employment shall be made unless and until the
Executive has a “separation from service” within the meaning of Section 409A. In the case of any amounts payable under
this Agreement that may be treated as payable in the form of “a series of installment payments,” as defined in Treasury
Regulation Section 1.409A-2(b)(2)(iii), the right to receive such payments shall be treated as a right to receive a series of separate
payments for purposes of such Treasury Regulation. If the Executive is a “specified employee” as determined pursuant
to Section 409A as of the date of termination of employment and if any payment or benefit provided for in this Agreement or otherwise
both (x) constitutes a “deferral of compensation” within the meaning of Section 409A and (y) cannot be paid or provided
in the manner otherwise provided without subjecting the Executive to additional tax, interest, or penalties under Section 409A,
then any such payment or benefit shall be delayed until the earlier of (i) the date which is six (6) months after the Executive’s
“separation from service” within the meaning of Section 409A for any reason other than death, or (ii) the date of the
Executive’s death. Any payment or benefit otherwise payable or to be provided to the Executive upon or in the six (6) month
period following “separation from service” that is not so paid or provided by reason of this Section 6.3 shall be accumulated
and paid or provided to the Executive in a single lump sum, as soon as practicable (and in all events within 15 days) after the
date that is six (6) months after the Executive’s “separation from service” (or, if earlier, as soon as practicable,
and in all events within fifteen (15) days, after the date of the Executive’s death). All subsequent payments or benefits,
if any, shall be payable or provided in accordance with the payment schedule applicable to each payment or benefit.  It
is the intent of this Agreement to comply with the requirements of Section 409A so that none of the severance payments and benefits
to be provided hereunder shall be subject to the additional tax imposed under Section 409A, and any ambiguities herein shall be
interpreted to so comply.  The Company and the Executive agree to work together in good faith to consider amendments
to this Agreement and to take such reasonable actions that are necessary, appropriate or desirable to avoid imposition of any additional
tax or income recognition prior to actual payment to the Executive under Section 409A.

 

    -8-

     

    

 

       6.4.            Post-termination
Determination of Cause.

 

           (a)     
 If following termination of the Executive’s employment other than for Cause there shall occur any event that would
otherwise constitute Cause for termination of such employment, the Executive will repay any Severance Amount, Change of Control
Severance Amount, Continuation Benefits and Change of Control Continuation Benefits previously paid, and his right to receive any
future Severance Amount, Change of Control Severance Amount, Continuation Benefits and Change of Control Continuation Benefits
will terminate.

 

           (b)     
 If the employment of the Executive is terminated by the Company for Cause pursuant to Section 3.3(a) above, and if the
charges of criminal conduct are subsequently dismissed, or the Executive is acquitted of such charges, then in such event the Executive’s
termination shall be deemed to have been made without Cause, and in such event the Company shall pay to the Executive the amounts
he would have been entitled had the Company terminated his employment without Cause.

 

       6.5.            Employee
Agreement. The Executive acknowledges and agrees that the Employee Agreement, except to the extent superseded by the Noncompete
Agreement, is a binding and enforceable obligation of the Executive that inures to the benefit of the Company’s successors
and assigns, including any corporation with which or into which the Company may be merged or which may succeed to its assets or
business in a Change of Control. 

 

       6.6.            Notices.
Any notice or other communication required or permitted hereunder shall be in writing and shall be deemed given when delivered
personally (including by overnight courier) or, if sent by regular mail, three days after the date of deposit in the United States
mails addressed as follows:

 

           (a)   
if to the Company, to:

 

Aware, Inc.

40 Middlesex Turnpike

Bedford, Massachusetts 01730

Attention: Chair of the Compensation Committee

 

           (b)  
if to the Executive, to:

 

Robert A. Eckel

 

    -9-

     

    

 

or to such other address as either party may
from time to time provide to the other by notice as provided in this section.

 

       6.7.            Entire
Agreement. This Agreement and the Employee Agreement constitute the entire agreement and understanding between the Company and
the Executive, and supersede all prior negotiations, agreements, arrangements, and understandings, both written or oral, between
the Company and the Executive with respect to the subject matter of this Agreement.

 

       6.8.            Waiver
or Amendment.

 

           (a)     
The waiver by either party of a breach or violation of any term or provision of this Agreement by the other party shall
not operate or be construed as a waiver of any subsequent breach or violation of any provision of this Agreement or of any other
right or remedy.

 

           (b)     
No provision in this Agreement may be amended unless such amendment is set forth in a writing that specifically refers to
this Agreement and is signed by the Executive and the Company.

 

       6.9.            Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of The Commonwealth of Massachusetts without
regard to its conflict of laws rules.

 

       6.10.         
Successors; Assignment. The Company shall require any successor via a Change of Control (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to assume expressly and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform it if no such succession had taken place. This Agreement shall inure
to the benefit of, and shall be binding upon, each of the Company and the Executive and their respective heirs, personal representatives,
legal representatives, successors and assigns.

 

       6.11.         
Severability. The invalidity of any one or more of the words, phrases, sentences, clauses or sections contained in this
Agreement shall not affect the enforceability of the remaining portions of this Agreement or any part hereof. If any part of this
Agreement shall be declared invalid by a court of competent jurisdiction, this Agreement shall be construed as if such invalid
part had not been inserted.

 

       6.12.         
Section Headings. The section and subsection headings contained in this Agreement are for reference purposes only and shall
not affect any way the meaning, construction or interpretation of any or all of the provisions of this Agreement.

 

       6.13.         
Counterparts. This Agreement may be executed in any number of counterparts and by the separate parties hereto in separate
counterparts, each of which shall be deemed to constitute an original and all of which shall be deemed to be one and the same instrument.

 

       6.14.         
Authority to Execute. The undersigned representative of the Company represents and warrants that he has full power and authority
to enter into this Agreement on behalf of the Company, and that the execution, delivery and performance of this Agreement have
been authorized by the Board. Upon the Executive's acceptance of this Agreement by signing and returning it to the Company, this
Agreement will become binding upon the Executive and the Company.

 

    -10-

     

    

 

IN WITNESS WHEREOF, the
parties have executed this Agreement as of the day and year first written above.

 

	EXECUTIVE	 	AWARE, INC.
	 	 	 
	 	 	By:	       
	Robert A. Eckel	 		 

 

    -11-

     

    

  

Exhibit A

 

NONCOMPETE AGREEMENT

  

This NONCOMPETE AGREEMENT (the "AGREEMENT"),
made as of the [ ] day of [ ], is entered into between Aware, Inc., a Massachusetts corporation with offices at 40 Middlesex Turnpike,
Bedford, Massachusetts 01730 (the "Company") and [ ], an individual residing at [ ] (the "Employee").

 

RECITALS:

 

A.       The
Company is willing to grant certain severance and other benefits to the Employee, under the circumstances specified in that certain
Employment Agreement dated August [ ], 2019 between the Company and the Employee (the “Employment Agreement”);
and

 

B.       As
set forth in the Employment Agreement, the Employee's execution of this Agreement is a condition to his receipt of such benefits;

 

NOW, THEREFORE, in consideration of the
mutual covenants and promises contained herein, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:

 

		1.	NON-COMPETITION COVENANTS.

 

(a)              
NON-COMPETITION COVENANTS. The Employee agrees that he will not, during the Non-Competition Period (as hereinafter defined),
directly or indirectly:

 

(i)                
as owner, employee, officer, director, partner, sales representative, agent, stockholder, capital investor, lessor, consultant
or advisor, either alone or in association with others (other than as a holder of not more than one percent of the outstanding
shares of any series or class of securities of a company, which securities of such class or series are publicly traded in the securities
markets), develop, design, produce, market, sell or render (or assist any other person or entity in developing, designing, producing,
marketing, selling or rendering), products or services which are competitive with the Business of the Company (as hereinafter defined)
anywhere in the world;

 

(ii)             
solicit, divert or take away, or attempt to solicit, divert or take away, the business or patronage of any of the customers,
prospective customers or referral sources of the Company with whom the Company has had a relationship during the period of the
Employee's employment by the Company; or

 

(iii)           
recruit, solicit or hire any employee of the Company, or induce or attempt to induce any employee of the Company to terminate
his or her employment with, or otherwise cease his or her relationship with, the Company.

 

(b)              
DEFINITIONS. For the purposes of this Section 1, the following terms shall have the respective meanings indicated below:

 

    -12-

     

    

 

(i)                
"NON-COMPETITION PERIOD" shall mean the period during which the Employee is employed by the Company and the one-year
period commencing on the last day of the Employee's employment by the Company, regardless of whether the Employee's termination
was at the election of the Company, with or without cause, or at the election of the Employee, with or without good reason.

 

"BUSINESS OF THE COMPANY" shall mean the development,
manufacture, marketing and/or distribution of (A) biometric technologies or wavelet compression technologies or (B) any other products
or services which the Company sells, has under development or which are subject to active planning at any time during the term
of the Employee's employment with the Company.

 

		2.	INJUNCTIVE AND OTHER EQUITABLE RELIEF.

 

(a)              
The Employee consents and agrees that if he violates any of the provisions of Section 1 hereof, the Company shall be entitled,
in addition to any other remedies it may have at law, to the remedies of injunction, specific performance and other equitable relief
for a breach by the Employee of Section 1 of this Agreement. This Section 2(a) shall not, however, be construed as a waiver of
any of the rights which the Company may have for damages or otherwise.

 

(b)              
Any waiver by the Company of a breach of any provision of Section 1 hereof shall not operate or be construed as a waiver
of any subsequent breach of such provision or any other provision hereof.

 

(c)              
The Employee agrees that each provision of Section 1 shall be treated as a separate and independent clause, and the unenforceability
of any one clause shall in no way impair the enforceability of the other clauses herein. Moreover, if one or more of the provisions
contained in Section 1 shall for any reason be held to be excessively broad as to scope, activity or subject so as to be unenforceable
at law, such provision or provisions shall be construed by the appropriate judicial body by limiting and reducing it or them so
as to be enforceable to the maximum extent compatible with the applicable law as it shall then appear.

 

(d)              
If the Company shall prevail in any action, suit or other proceeding (whether at law, in equity or otherwise) instituted
concerning or arising out of this Agreement, it shall recover, in addition to any other remedy granted to it therein, all its costs
and reasonable attorneys’ fees incurred in connection with the prosecution or defense of such action, suit or other proceeding.

 

		3.	OTHER AGREEMENTS. The Employee represents and warrants that his performance
of all the terms of this Agreement and as an employee of the Company does not and will not breach any other agreement by which
he is bound.

 

		4.	NOT A CONTRACT OF EMPLOYMENT. The Employee understands that this Agreement does
not constitute a contract of employment or give the Employee rights to employment or continued employment by the Company.

 

    -13-

     

    

 

		5.	ENTIRE AGREEMENT. This Agreement constitutes the entire agreement between the
parties and supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter of this
Agreement. In particular, this Agreement supersedes Section 10 of the Employee Agreement, but the rest of the Employee Agreement
remains in full force and effect.

 

		6.	AMENDMENT. This Agreement may be amended or modified only by a written instrument
executed by both the Company and the Employee.

 

		7.	GOVERNING LAW. This Agreement shall be construed, interpreted and enforced in
accordance with the laws of The Commonwealth of Massachusetts, without regard to its choice of law principles. The Employee hereby
consents to (a) service of process, and to be sued, in The Commonwealth of Massachusetts and (b) to the jurisdiction of the courts
of The Commonwealth of Massachusetts and the United States District Court for the District of Massachusetts, as well as to the
jurisdiction of all courts to which an appeal may be taken from such courts, for the purpose of any suit, action or other proceeding
arising out of any of Employee's obligations hereunder, and Employee expressly waives any and all objections he or she may have
as to venue in any such courts.

 

		8.	SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and inure to the
benefit of both parties and their respective successors and assigns, including any corporation with which or into which the Company
may be merged or which may succeed to its assets or business, provided, however, that the obligations of the Employee are personal
and shall not be assigned by him.

 

		9.	MISCELLANEOUS.

 

(a)              
No delay or omission by the Company in exercising any right under this Agreement shall operate as a waiver of that or any
other right. A waiver or consent given by the Company on any one occasion shall be effective only in that instance and shall not
be construed as a bar or waiver of any right on any other occasion.

 

(b)              
The captions of the sections of this Agreement are for convenience of reference only and in no way define, limit or affect
the scope or substance of any section of this Agreement.

 

(c)              
This Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision
hereof shall be prohibited or invalid under any such law, such provision shall be ineffective to the extent of such prohibition
or invalidity, without invalidating or nullifying the remainder of such provision or any other provisions of this Agreement. If
any one or more of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to duration,
geographical scope, activity or subject, such provisions shall be construed by limiting and reducing it so as to be enforceable
to the maximum extent permitted by applicable law.

 

    -14-

     

    

 

IN WITNESS WHEREOF, the parties hereto
have executed this Agreement as of the day and year set forth above.

 

	 	AWARE, INC.
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	EMPLOYEE
	 	 
	 	 
	 	Name:

 

    -15-

     

    

 

Exhibit B

 

GENERAL RELEASE AND WAIVER OF ALL
CLAIMS

(INCLUDING OLDER WORKER BENEFITS PROTECTION ACT CLAIMS)

 

For good and valuable consideration, including without limitation
the compensation and benefits set forth in the Employment Agreement dated August [ ], 2019 (the “Agreement”)
between the undersigned and Aware, Inc. (the “Company”), to which this General Release and Waiver of All Claims
is attached, the terms of which Agreement shall survive this General Release and Waiver of Claims, the undersigned, on behalf of
and for himself or herself and his or her heirs, administrators, executors, representatives, estates, attorneys, insurers, successors
and assigns (hereafter referred to separately and collectively as the “Releasor”), hereby voluntarily releases
and forever discharges the Company, and its subsidiaries (direct and indirect), affiliates, related companies, divisions, predecessor
and successor companies, and each of its and their present, former, and future shareholders, officers, directors, employees, agents,
representatives, attorneys, insurers and assigns (collectively as “Releasees”), jointly and individually, from
any and all actions, causes of action, claims, suits, charges, complaints, contracts, covenants, agreements, promises, debts, accounts,
damages, losses, sums of money, obligations, demands, and judgments all of any kind whatsoever, known or unknown, at law or in
equity, in tort, contract, by statute, or on any other basis, for contractual, compensatory, punitive or other damages, expenses
(including attorney’s fees and cost), reimbursements, or costs of any kind, which the undersigned employee ever had, now
has, or may have, from the beginning of the world to the date of this Release, known or unknown, in law or equity, whether statutory
or common law, whether federal, state, local or otherwise, including but not limited to any and all claims arising out of or in
any way related to the undersigned’s engagement by the Company (including the hiring or termination of that engagement),
or any related matters including, but not limited to claims, if any arising under the Age Discrimination in Employment Act of 1967,
as amended by the Older Worker Benefits Protection Act; the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991,
as amended; the Family and Medical Leave Act of 1993, as amended; the Immigration Reform and Control Act of 1986; the Americans
with Disabilities Act of 1990, as amended; the Employee Retirement Income Security Act (ERISA), as amended; the Massachusetts laws
against discrimination and harassment (including Mass. Gen. L. c. 151B), protecting equal rights or concerning the payment of wages
(including Mass. Gen. L. c. 149, section 148 et seq. and Mass. Gen. L. c. 151, section 1A, et seq.), and federal, state or local
common law, laws, statutes, ordinances or regulations. Notwithstanding the foregoing, nothing contained in this General Release
and Waiver of Claims shall be construed to bar any claim by the undersigned to enforce the terms of the Agreement.

 

Releasor represents and acknowledges the following:

 

		(a)	that Releasor understands the various claims Releasor could have asserted under federal or state law, including but not limited
to the Age Discrimination in Employment Act, Mass. Gen. L. c. 151B, the Massachusetts Wage Act and Massachusetts overtime pay law
and other similar laws;

 

		(b)	that Releasor has read this General Release carefully and understands all of its provisions;

 

    -16-

     

    

 

		(c)	that Releasor understands that Releasor has the right to and is advised to consult an attorney concerning this General Release
and in particular the waiver of rights Releasor might have under the laws described herein and that to the extent, if any, that
Releasor desired, Releasor availed himself or herself of this right;

 

		(d)	that Releasor has been provided at least twenty-one (21) days to consider whether to sign this General Release and that to
the extent Releasor has signed this General Release before the expiration of such twenty-one (21) day period Releasor has done
so knowingly and willingly;

 

		(e)	that Releasor enters into this General Release and waives any claims knowingly and willingly; and

 

		(f)	that this General Release shall become effective seven (7) days after it is signed. Releasor may revoke this General Release
within seven (7) days after it is signed by delivering a written notice of rescission to Chair, Compensation Committee of the Board
of Directors at Aware, Inc., 40 Middlesex Turnpike, Bedford, Massachusetts 01730. To be effective, the notice of rescission must
be hand delivered, or postmarked within the seven (7) day period and sent by certified mail, return receipt requested, to the referenced
address.

 

Signed and sealed this ____ day of _____________, 20__.

Signed:__________________________

Name (print): ___________________________

 

    -17-

     

    

 

Schedule 1

 

Approved Activities

 

Evolv Technology, Strategic Advisory Board member

 

Digimarc Corporation, Consultant

 

    -18-

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