Document:

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (“Agreement”)
is made and entered into as of the 3rd day of May, 2017 (“Effective Date”), by and between Douglas Schaer (“You”
or “Employee”) and Loton, Corp., a Nevada corporation (“Loton” or Company”).

 

In consideration of the mutual promises and
agreements contained herein, the parties hereto hereby agree that the following will set forth the understanding reached between
you and Company, and its successors or assign for your exclusive full-time services (the “Agreement”).

 

1.            Definitions:
As used herein, “Loton Entity(ies)” includes Loton, Corp, and any of its subsidiaries (including LiveXLive), affiliates
and/or joint venture partners and any of its or their successors and/or assigns. “Contractual Person or Party” means
any person or party with or with respect to whom any Loton Entity has a direct or indirect exclusive contractual or employment
arrangement, including, without limitation, artists, producers, licensors, licensees, partners, joint ventures and employees.

 

2.            Employment:
The Company has offered you employment as Chief Operating Officer of Loton, and you accept such employment, subject to the terms
and conditions of this Agreement. You understand that during the Term of this Agreement, the Company shall have the discretion
to make reasonable changes to your title in a manner commensurate with your experience and skills; provided, however,
that any such change in title will not result in Employee receiving a title less than a C-level executive unless Employee provides
his prior written consent to such change in title.

 

3.            Duties
and Responsibilities: During the Term of this Agreement, you shall perform all duties reasonably required of you in furtherance
of your position as it relates to the Company’s business, provided all such duties assigned to you shall be consistent with
the scope and dignity of your position hereunder. You will report to the Chairman and President of the Company (currently Rob Ellin)
or, if in the future there is no executive bearing such title, to a substantially equivalent executive or an executive more senior
than you in title or responsibility, or to such other senior or corporate executive as designated by the Company, in its reasonable
discretion. You understand that during the Term of this Agreement, the Company shall have the discretion to make reasonable changes
to your duties, or assign new duties to you, commensurate with your experience and skills and your current title (or new title,
if any). You shall diligently and faithfully devote your full time, energy and skill to the promotion of the Company’s business
interests and to the performance of your duties under this Agreement. You shall conduct yourself at all times so as to advance
the best interests of the Company and shall not undertake or engage in any other business activities or continue or assume any
other business affiliations which conflict or interfere with the performance of your services hereunder; provided, however,
and notwithstanding anything to the contrary contained herein, during the Term, Employee may (a) invest in, and/or serve on advisory
boards of or boards of directors (and in similar capacities) for, other companies or ventures which are not competitive with Company’s
business and (b) engage in such additional activities as are described in Schedule A attached hereto and by this reference made
a part hereof, provided that the time devoted to any such other activities does not interfere with Employee’s commitment
to the Company as set forth in this paragraph and that the Company will have first priority for your services hereunder ahead of
the services and/or activities described in subsections (a) and (b) of this Section 3. None of the permitted activities described
above shall constitute a breach of this Agreement or any of Employee’s duties at common law or otherwise, so long as you
are in full compliance with the Agreement. During the Term of this Agreement, you shall be governed by and be subject to all of
Company’s rules and regulations that are applicable to employees generally or to employees at your salary grade or organizational
level. If and when Company shall have a Code of Conduct and Employee Handbook, you shall be bound by and fully comply with its
terms and conditions.

 

4.            Term:
The Term of this Agreement shall be for two (2) years, and shall commence on May 3, 2017 (the “Commencement Date”),
and end on May 2, 2019 (the “Term”), unless terminated earlier as provided for herein. At the end of the Term of this
Agreement, if you continue to be employed by the Company at the Company’s discretion without entering into a new written
agreement, then you will become an at-will employee and will be paid at your then-current biweekly salary. Your principal place
of employment will be at such offices as the Company may provide within the metropolitan Los Angeles, California area or such other
place you and the Company mutually designate. You will travel as reasonably necessary for the performance of your duties and be
reimbursed by Company for all of your travel-related expenses in accordance with the practices and policies of Company.

 

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5.            Compensation:

 

A.           Salary.
In consideration of the duties to be performed by you under this Agreement your annualized salary (“Base Salary”) will
be One Hundred Eighty Thousand Dollars ($180,000), effective with the Commencement Date. On the first day of the month immediately
following the date on which Company’s pending underwritten public offering of its common stock closes, if at all, your Base
Salary shall thereupon be increased to Two Hundred Forty Thousand Dollars ($240,000) per annum. Your salary shall be inclusive
of vacation pay.

 

B.            
Payment. All compensation shall be payable in accordance with the Company’s normal payroll practices as they
relate to time and frequency of payments and payroll deductions. Payments of salary and incentive bonus (if any) will be subject
to all applicable taxes and other withholdings.

 

C.            Stock
Grant. Company shall make a grant to you or your family trust (the “Stock Grant”) of Four Hundred Thousand
(400,000) shares of Company’s restricted common stock (the “Shares”), which Shares shall vest in accordance
with the terms and conditions of the Restricted Stock Agreement between Company and Employee dated as of the Effective Date including,
among other things, the following, and shall be subject to forfeiture as provided in this Agreement:

 

(i)          The
Shares shall vest in increments, in accordance with the following schedule: (a) the first tranche of Two Hundred Thousand (200,000)
Shares shall vest twelve (12) months from the Effective Date; and (b) the second tranche of 200,000 Shares shall vest in twelve
(12) equal monthly installments (at the end of each month) starting with the thirteenth (13th) month from the Effective
Date and ending with the twenty-fourth (24th) month from the Effective Date. Following the Effective Date, the Company
shall deliver to the Grantee a share certificate registered in his name for the Shares to be issued hereunder.

 

D.            Restrictions
against Transfer. You agree that you will not transfer, assign, hypothecate, or in any way dispose of any of the
Shares, or any right or interest therein, whether voluntarily or by operation of law, or by gift or otherwise (collectively, the
“Transfer Restrictions”), until the end of the following dates:

 

		(i)	The Transfer Restrictions imposed on the first tranche
of 200,000 Shares shall lapse on the date that is the latter of the one (1) year anniversary of the date on which Company’s
pending underwritten public offering of its common stock closes or September 30, 2018; and

 

		(ii)	The Transfer Restrictions imposed on the second tranche
of 200,000 Shares shall lapse on the second anniversary of the Effective Date.

 

		(iii)	In addition to the foregoing, you agree to be bound by
any Transfer Restriction or any lock-up agreements required by the underwriters of Company’s underwritten public offering
of its common stock, and, the Stock Grant shall, in all respects, be subject to the foregoing.

 

E.            Transfers
Void. Any purported transfer in violation of the Transfer Restriction or any other provision of this Agreement shall be
void and ineffectual, and shall not operate to transfer any interest or title to the purported transferee, except that Company
consents to a transfers of the Shares to any trust for the direct or indirect benefit of the Employee or any member(s) of the immediate
family of the Employee so long as such transferee agrees to be bound by the terms and conditions of this Agreement and the Restricted
Stock Agreement.

 

F.            Stock
Grant. The Stock Grant will be evidenced by and be subject to the terms and conditions of a separate Notice of Grant and
Restricted Stock Agreement (the “Restricted Stock Agreement”).

 

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G.            One-Time
Bonus. You shall be eligible to receive a discretionary bonus in an amount to be determined by the Company promptly following
the date on which Company’s underwritten public offering of its common stock closes.

 

H.            Annual
Bonus. If you are employed through the end of a fiscal year, you shall be considered for an annual bonus at the
sole discretion of the Board, in an amount up to 100% of the average salary under Section 5(A) above for the applicable fiscal
year. If you are only employed for a part of a fiscal year, any bonus under consideration for such year shall be prorated. The
Board may set any criteria for consideration of such bonus as it determines, in its sole discretion, including, without limitation
the performance of the Company in meeting its financial, business and other performance targets, as the Board determines, and your
performance in meeting any goals set by the Board for your individual performance. The final decision on all matters concerning
the annual bonus shall be in the sole and absolute discretion of the Board, and the Board shall have the right to grant the annual
bonus in whole, or in part, or not at all. Any such bonus will be payable as soon as practicable following the close of the fiscal
year concerned, but in no event later than March 15 of the calendar year following the calendar year in which such fiscal year
ends.

 

		6.	Employee Benefits:

 

A.           Benefit
Programs. During the Term, you shall be entitled to participate in any present or future employee benefit program that
may be established by the Company for its employees generally and/or for all employees at your level, subject to the Company’s
right to modify or terminate such benefit plans or programs at any time in its sole discretion (provided such modification or termination
likewise applies to all similarly-situated Company executives). You acknowledge that Company intends to establish its Benefit Programs
following the date Company’s contemplated and pending underwritten public offering of its common stock closes and that no
benefit plans currently exist. Employee shall be reimbursed on a monthly basis, commencing with the closing date of the Company’s
underwritten public offering of its Common Stock, for any and all COBRA or other reasonable family health insurance payments until
such time as the Employee is covered by Company’s health care and medical benefits plans and programs.

 

B.           Vacation.
You are eligible to accrue vacation (in addition to Company-wide holiday periods, during each Company fiscal year (prorated for
any partial fiscal year) during the Term of this Agreement in accordance with the Company’s then current vacation policy
as such policy applies to other similarly situated senior executives of the Company. Such vacation is accrued on a monthly basis
and may be taken at such time or times as the Company may approve. If you fail to take the vacation allotted to you for a particular
fiscal year, your rights to such vacation time shall not carry over, nor shall you be entitled to any additional compensation if
you fail to take any vacation that you are entitled to.

 

7.             Expenses: Subject to the
Company’s applicable Travel and Entertainment and Business Expense Policy (or, the practices and polices established by the
Board if Company does not have a formal Travel and Entertainment and Business Expense Policy) as such policies apply to other similarly
situated senior executives of the Company and upon your submission of documentation satisfactory to the Company, the Company will
reimburse you for all lawful, reasonable and necessary out-of-pocket expenses incurred by you in connection with the performance
of your duties under this Agreement in accordance with Company’s practices and policies that apply to all similarly situated
executives.

 

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8.            Duty of Confidentiality:
You acknowledge that during your employment, you will have access to confidential and proprietary information relating to the Company,
including, without limitation, financial information, trade secrets, client lists, passwords, marketing strategies, financial information,
royalty information, contracts with third parties and the terms thereof, contract proposals and negotiations, government, legislative
and regulatory activities, litigation matters, and personnel and policy information (collectively, “Confidential Information”).
At all times hereafter, you will, to the fullest extent legally permissible, maintain the confidentiality of all Confidential Information.
You will not, either directly or indirectly, make any disclosure of Confidential Information to any third party, or make any use
of Confidential Information, for your own benefit or the benefit of any third party, without the Company’s prior written
consent. In the event that you are requested pursuant to, or required by, applicable law, regulation or legal process to disclose
any of the Confidential Information, you will notify the Company’s General Counsel promptly (but no later than five (5) days
from receipt of such request) so that the Company may seek a protective order or other appropriate remedy or, in the Company’s
sole discretion, waive compliance with the terms of this Agreement. In the event that no such protective order or other remedy
is obtained, you agree to furnish only that portion of the Confidential Information which you are advised by legal counsel is required
and will exercise all reasonable efforts (at the Company’s expense) to obtain reliable assurance that confidential treatment
will be accorded the Confidential Information. Notwithstanding the foregoing, you shall be entitled to disclose Confidential Information
to your attorneys and accountants on a need-to-know basis in connection with asserting your rights under this Agreement, provided
such attorneys and accountants agree to be bound by the confidentiality provisions hereof. As remedies at law maybe inadequate
to protect the Company against any actual or threatened breach of this policy, the Company shall have the right to injunctive relief
in the Company’s favor without proof of irreparable harm. It is acknowledged that Confidential Information shall not include
(i) information that is generally available to the public and (ii) information that becomes available to you on a non-confidential
basis from a source other than the Company or any of the Loton Entities who, to your knowledge, are (A) not otherwise bound by
a confidentiality agreement with the Company or any of the Loton Entities and (B) not otherwise prohibited from transmitting the
information to you.

 

9.            Non-Competition: You acknowledge
that your services are unique and extraordinary. You also acknowledge that your position will give you access to confidential information
of substantial importance to the Company. During the Term of this Agreement and except as otherwise provided for hereunder, you
shall not (except with the Company’s prior written consent) be employed or render services for any entity other than any
of the Loton Entities or directly or indirectly engage in any activities that are competitive with or detrimental to any business
conducted by the Loton Entities. The prohibitions set forth in this paragraph 9 shall apply to such activities, whether as owner,
employee, independent contractor, partner, consultant, investor, lender or otherwise, and whether acting alone or together with
others, except that nothing herein contained shall bar you from ownership of less than one percent (1%) of the number of outstanding
shares of any securities listed for trading on any national exchange.

 

10.           Non-Solicitation:
During the Term of this Agreement, you shall not directly or indirectly solicit or encourage any Contractual Person or Party,
as defined in paragraph 1 above, to enter into or become the subject of any direct or indirect contractual or employment arrangement
with you or with any third party, business or enterprise with which you are or may become directly or indirectly affiliated.

 

11.          Work Product: All of your
work product (created solely or jointly with others) given, disclosed, created, developed or prepared in connection with your employment
with the Company (“Work Product”) shall be deemed “works made for hire,” as that term is defined in the
United States Copyright Act. Work Product as used herein shall include, without limitation, any ideas or concepts, reports, recommendations,
analyses, press materials, speeches, whitepapers and other information, data, and materials developed or prepared by you in connection
with your employment by the Company. The Company and its affiliates or their designees shall have the exclusive right to make full
and complete use of, and make changes to, all Work Product without restrictions or liabilities of any kind, and you shall not have
the right to use any such materials, other than within the legitimate scope and purpose of your employment with the Company, without
the Company’s prior written consent. You shall take whatever additional lawful action may be reasonably necessary, and sign
whatever documents the Company may reasonably require, in order to secure and vest in the Company or its designee all right, title,
and interest in and to any Work Product and any intellectual property rights therein (including full cooperation in support of
any of the Company applications for patents and copyright or trademark registrations).

 

12.          Return of Company Property:
Upon the termination of your employment with the Company, you will promptly return to the Company all Company property and all
material or documents containing Confidential Information, including without limitation, all computers (including laptops), cell
phones, keys, PDAs, Blackberries, credit cards, facsimile machines, sound systems, stereo equipment, televisions, card access to
any Company building, customer lists, computer disks, reports, files, memoranda, records and software, computer access codes or
disks and instructional manuals, internal policies, and other similar materials or documents which you received or prepared or
helped prepare in connection with your employment with the Company. You will not retain any copies, duplicates, reproductions or
excerpts of such material or documents. You further agree to take all necessary actions, if required by and at the cost of the
Company, to vest such property rights in the Company.

 

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13.           Equitable Relief: You
agree that the restrictions contained in paragraphs 8, 9, 10,11 and 12 are fair and reasonable and necessary for the protection
of the legitimate business interests of the Loton Entities and that the Company would not have entered into this Agreement without
the inclusion of such restrictions. Moreover, you recognize and expressly acknowledge that these restrictions grant the Company
only such reasonable protection as is necessary to preserve the legitimate business interests of the Loton Entities. You further
acknowledge and agree that any breach by you of the covenants and agreements contained paragraphs 8, 9, 10, 11 or 12 herein will
result in irreparable injury to the Loton Entities for which money damages could not adequately compensate the Loton Entities.
Therefore, in the event of any such breach, the Loton Entities shall be entitled (in addition and without prejudice to all other
remedies in law or equity available to them) to equitable relief byway of restraining order, injunction or other order to enforce
this Agreement without the necessity of posting a bond or other security. The existence of any claim or cause of action that you
may have against the Loton Entities or the Loton Entities may have against you shall not constitute a defense or bar to the enforcement
of such covenants. If it is determined bay court of competent jurisdiction that any restriction contained in paragraphs 8, 9, 10,
11 or 12 herein is unreasonable or unenforceable under the law, it is the intention of the parties that such restriction may be
modified or amended by the court to render it enforceable to the maximum extent permitted by law.

 

		14.	Termination:

 

A.           Termination
for Cause. The Company shall have the right at any time, upon written notice, to terminate your employment and this Agreement
for Cause. For purposes of this Agreement, “Cause” shall mean (i) a material breach by you of your material obligations
under this Agreement (other than paragraphs 8, 9, 10, and 11), and which is not remedied within fourteen (14) business days after
receipt of written notice from the Company specifying such breach, (ii) commission by you of an act of fraud, embezzlement, misappropriation,
theft, dishonesty or willful misconduct or breach of fiduciary duty, (iii) a material breach by you of paragraphs 8, 9, 10, or
11; (iv) your conviction of or entry of any pleas other than “Not Guilty” to any felony; (v) your failure to carry
out, or comply with, in any material respect any lawful and reasonable directive of the Company consistent with the terms of this
Agreement, which is not remedied within fourteen (14) business days after receipt of written notice from the Company specifying
such failure; (vi) your material violation of any law, policy or rule applicable to Company’s business and operations, including
any law, policy or rule of any regulatory agency; (vii) your material violation (as determined in Company’s sole discretion)
of any of the Company’s material policies whether in Company’s Employee Handbook, Code of Conduct, or policies determined
by the Board, or otherwise; or (viii) your engaging in conduct which, in the Company’s reasonable judgment, is materially
detrimental to the Company’s business, good will or good name. If the Company terminates your employment and this Agreement
for Cause, you will forfeit all Shares (whether or not vested) and have no right to receive any further compensation, other than
unpaid Base Salary up to the date of termination, approved but unreimbursed expenses in accordance with the Company’s policies
and payroll practices that are owed to you as of the date the Agreement is terminated and any bonus actually granted by the Board
but unpaid in respect of the Company fiscal year immediately preceding the fiscal year during which termination occurs pursuant
to this subparagraph 14.A, which shall be payable to you by the Company at such time as the Company pays bonuses to its senior
executives in respect of the fiscal year concerned, but in no event later than March 15 of the calendar year following the calendar
year in which such termination occurs.

 

B.           Death.
If you die during the Term of this Agreement, your employment and this Agreement shall automatically terminate on the date of your
death. In such event, you shall have no right to receive any further compensation, other than unpaid Base Salary up to the date
of termination, any bonus actually granted by the Board but unpaid in respect of the Company fiscal year immediately preceding
the fiscal year during which termination occurs pursuant to this subparagraph 14.B, which shall be payable to you by the Company
at such time as the Company pays bonuses to its senior executives in respect of the fiscal year concerned, but in no event later
than March 15 of the calendar year following the calendar year in which such termination occurs, accrued benefits in accordance
with their applicable policies, and approved but unreimbursed expenses that are owed to you as of the date of your death. Any such
payments that you are entitled to as of your date of death will be paid to your legal representatives in accordance with the Company’s
policies and payroll practices. Additionally, you shall forfeit a portion of the 400,000 Shares applicable the period of the Term
that is 120 days following your death as follows: You shall forfeit Shares equal to the result of the 400,000 Shares multiplied
by a fraction the numerator of which is the number of days that remain in the Term after the date that is 120 days following the
date of your death and the denominator of which is 730. The Shares that are not forfeited shall continue to vest and shall continue
to be subject to the restrictions that are otherwise applicable to such Shares, and the forfeitures shall be applied starting with
the Shares that would otherwise vest last.

 

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C.           Disability.
If you fail to render services as called for by this Agreement because of physical or mental illness or other disability for a
continuous period of ninety (90) days, or for shorter periods aggregating more than ninety (90) days in any consecutive one hundred
eighty day period (or such longer period as may be required to comply with applicable law), then the Company may terminate your
employment and this Agreement upon thirty (30) days written notice to you. Notwithstanding the foregoing, if you are a “specified
employee” as defined under Code Section 409A and you have a “separation from service” (as defined in Code Section
409A) on account of your physical or mental illness or other disability, and pursuant to the above provisions, you have not yet
been terminated, your employment shall terminate upon such “separation from service”. If the Company terminates your
employment in accordance with this subparagraph 14.C, you shall have no right to receive any further compensation, other than unpaid
Base Salary up to the date of termination, any bonus actually granted by the Board but unpaid in respect of the Company fiscal
year immediately preceding the fiscal year during which termination occurs pursuant to this subparagraph 14.B, which shall be payable
to you by the Company at such time as the Company pays bonuses to its senior executives in respect of the fiscal year concerned,
but in no event later than March 15 of the calendar year following the calendar year in which such termination occurs, accrued
benefits in accordance with their applicable policies, and approved but unreimbursed expenses that are owed to you as of the date
of such termination, which amounts shall be paid to you in accordance with the Company’s policies and payroll practices.
Additionally, you shall forfeit a portion of the 400,000 Shares applicable the period of the Term that is 120 days following the
disability termination date as follows: You shall forfeit Shares equal to the result of the 400,000 Shares multiplied by a fraction
the numerator of which is the number of days that remain in the Term after the date that is 120 days following the date of your
disability and the denominator of which is 730. The Shares that are not forfeited shall continue to vest and shall continue to
be subject to the restrictions that are otherwise applicable to such Shares, and the forfeitures shall be applied starting with
the Shares that would otherwise vest last.

 

D.           Termination
without Cause.

 

The Company shall have the right at any time to terminate your employment
and this Agreement without Cause, and in such event, the following shall apply:

 

(1)         You
shall receive (i) fifty (50%) percent of your Base Salary for the remainder of the Term up to a maximum of six (6) months’
salary, however, if such termination occurs in the last six (6) months of the Term, then you will receive three (3) months’
Salary or the salary for the remainder of the Term, whichever is less (in either case calculated at the rate in effect at the time
of your termination and all payable in substantially equal installments in accordance with the Company’s normal payroll practices
commencing as of the first regular pay date following such termination)(the “Severance Payment”), (ii) unpaid Base
Salary up to the date of termination (and calculated at the rate in effect at the time of your termination), (iii) accrued benefits
in accordance with their applicable policies, (iv) any bonus granted by the Board but unpaid in respect of the Company fiscal year
immediately preceding the fiscal year during which termination occurs pursuant to this subparagraph 14.D which shall be payable
to you by the Company at such time as the Company pays bonuses to its senior executives in respect of the fiscal year concerned,
but in no event later than March 15 of the calendar year following the calendar year in which such termination occurs, (v) approved
but unreimbursed expenses incurred through the date of termination payable in accordance with the Company’s policies and
paragraph 7 hereof. Collectively, the amounts listed in items 14.D(1)(ii) through (v) shall be referred to as “Accrued Amounts.”

 

(2)         If
the termination under this Paragraph 14D shall occur at any time up to the first anniversary of the Effective Date, you shall forfeit
a portion of the 400,000 Shares applicable the period of the Term that is 360 days following the date this Agreement is terminated
by Company without Cause as follows: You shall forfeit Shares equal to the result of the 400,000 Shares multiplied by a fraction
the numerator of which is the number of days that remain in the Term after the date that is 360 days following the termination
date and the denominator of which is 730. The Shares that are not forfeited shall continue to vest and continue to be subject to
the restrictions that are otherwise applicable to such Shares, and the forfeitures shall be applied starting with the Shares that
would otherwise vest last. If the termination under this Paragraph 14D shall occur after the first anniversary of the Effective
Date, there shall be no forfeiture of Shares under this Paragraph 14D.

 

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(3)         Notwithstanding
the foregoing, you shall not be entitled to receive the payments in 14D(1)(i) above unless you execute a general release in favor
of Company in a form provided by and acceptable to the Company (the “Release”) within fifty (50) days following the
date of termination of your employment, or such earlier date specified in the Release (collectively, the “Release Period”),
which will include, among other provisions, each of the provisions set forth on Exhibit A hereto, and the Release is not revoked
by you, and provided, further, that you are in full compliance with paragraph 12 hereof. Notwithstanding the foregoing,
any payment pursuant to Paragraph 14D(1)(i) above that is scheduled to be made prior to the date the Release is effective will
be accumulated and held by the Company on your behalf and paid to you with the Company’s regular bi-weekly payroll cycle
which is sixty (60) days following your termination of employment, but in no event prior to the effectiveness of the Release.

 

E.           Termination
For Good Reason. (1) The Employee shall have the right at any time to terminate this Agreement for Good Reason upon
written notice by the Employee to the Company of a termination for Good Reason, including providing detailed written notice of
the facts and circumstances giving rise to the termination notice, unless such events are corrected in all material respects by
the Company within 30 days following written notification by the Employee to the Company that he intends to terminate his employment
hereunder for one of the reasons set forth below. In the event that something is not reasonably curable by the Company within 30
days, if the Company has commenced in good faith the process of trying to cure the issue raised in Employee’s notice and
continues to proceed with reasonable diligence to cure it, then the termination notice shall be stayed until such time as the issue
is cured. “Good Reason” shall mean, without the express written consent of the Employee, the occurrence of any of the
following events: (i) except as permitted under Sections 2 and 3 hereunder, assignment to the Employee of any duties that are materially
with the Employee’s position (including titles and reporting relationships), authority, duties or responsibilities as contemplated
by this Agreement, or any other action by the Company which results in a material diminution in such position, authority, duties
or responsibilities; (ii) any material failure by the Company to comply with any of the material provisions regarding Employee’s
base salary or bonus; (iii) the Employee being required to relocate to a principal place of employment outside of the City of Los
Angeles; or (iv) any breach of the Company’s representations set forth herein.

 

(2)          If
the Employee’s employment by the Company is terminated by the Employee for Good Reason, the Company shall pay and provide
for the Employee in accordance with Section 14D(1) and (2) above

 

F.           Termination
Related to Financing. The Company is currently in the process of an underwritten public offering of its Common Stock (the
“Offering”). If the Offering does not close on or before August 31, 2017, the Company shall have the right to reduce
or suspend Employee’s Base Salary by written notice to Employee, effective on or after August 31, 2017 and up to the date
the Offering closes, if at all. If Company exercises said right, Employee shall have the right to provide Company with a notice
of termination, which shall be effective if Company does not reinstate Employee’s Base Salary within five (5) business days
of receipt of written notice of termination from Employee. If employment is terminated due to Company’s failure to restore
Employee’s Base Salary under this Section 14F, Employee shall receive all Accrued Amounts and no other payments. In addition,
you shall forfeit 50% of the portion of the Shares that are applicable the period of the Term following the date this Agreement
is terminated under this Paragraph 14F as follows: You shall forfeit 50% of the 400,000 Shares that are applicable to the period
of the Term after the termination date as follows: (i) start with a fraction the numerator of which is the number of days that
remain in the Term after the termination date and the denominator of which is 730 and this results in a “percentage (“X
Percentage”); (ii) the 400,000 Shares are then multiplied by X Percentage and that calculation results in a reduced number
of Shares (“Reduced Shares”); and (iii) the number of Reduced Shares are then multiplied by 50% which results in the
number of Shares to be forfeited. The Shares that are not forfeited shall continue to vest and continue to be subject to the restrictions
that are otherwise applicable to such Shares, and the forfeitures shall be applied starting with the Shares that would otherwise
vest last. (For example, if the termination occurred on September 1, 2017, you would forfeit 164,500 Shares of the 400,000 Shares
as follows: 600 days / 730 days = 82.25% times 400,000 Shares equals 329,000 Shares times 50% = 164,500 Shares forfeited).

 

15.          Notices: All notices and other
communications required by this Agreement must been writing. Notice to you shall be sent to the address to which this letter is
addressed.

Notice to the Company shall be sent to:

 

Loton, Corp.

269 S. Beverly Drive - #1450

 

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Beverly Hills, CA 90212

Attention: Rob Ellin, Executive Chairman & President

rob@livexlive.com

Attention: Rob Ellin, Executive Chairman

& President

 

Notice to you shall be sent to:

 

Douglas Schaer

2119 Pelham Avenue

Los Angeles, CA 90025

doug@livevlive.com

 

Notices delivered by hand or telefax shall be deemed received on
the date delivered; notices delivered by certified or registered mail, return receipt requested, shall be deemed received on the
date received.

 

16.          Withholding Taxes: If, and
to the extent that, the receipt by you of any amounts, benefits (including employee benefits), perquisites or similar items provided
or to be provided under this Agreement is compensation taxable to you, you shall be responsible for the payment of any and all
taxes imposed upon you in respect thereof and shall not be entitled to reimbursement therefor from the Company or to any increase
in your compensation hereunder by reason thereof. The Company may withhold from any amounts payable under this Agreement such Federal,
state and local taxes as may be required to be withheld pursuant tony applicable law or regulation.

 

17.          Compliance
with Code Section 409A. Notwithstanding any provision herein to the contrary, the Company makes no representations concerning
the your tax consequences under this Agreement as they relate to Section 409A (as defined below) of the Internal Revenue Code of
1986, as amended (“Code”), or any other federal, state, or local tax law. Your tax consequences will depend, in part,
upon the application of relevant tax law, including Code Section 409A, to the relevant facts and circumstances. You acknowledge
that Section 409A of the Code places responsibility for additional taxes and penalties on you and not the Company in the event
of a breach of the provisions of Section 409A of the Code. You should consult a competent and independent tax advisor regarding
his tax consequences under the Agreement."

 

18.          Successors and Assigns: This
Agreement shall inure to the benefit of and be binding upon you, your heirs, executors, administrators and legal representatives
and upon the Company and its successors and assigns. This is a personal service contract and may not be assigned by you but may
be assigned by the Company to any subsidiary, affiliated or controlling entity, to any entity owning or acquiring a substantial
portion of the assets of the Company, tony partnership or other venture in which the Company participates; provided, that, such
entity assumes the Company’s obligations hereunder.

 

19.          Entire Agreement: This Agreement
constitutes the entire agreement between you and the Company with respect to your employment by the Company and cannot be changed
or terminated orally. This Agreement supersedes any prior or contemporaneous written or oral agreements between you and the Company
relating to the same subject matter. No modification or waiver of any of the provisions of this Agreement shall be effective unless
in writing and signed by both you and the Company.

 

20.           Severability: If any provision
of this Agreement is held to be unenforceable by a court or arbitrator, the remaining provisions shall remain valid, binding and
in full force to the maximum extent possible. If a court determines that any portion of this Agreement is overbroad or unreasonable,
such provision shall be given effect to the maximum extent possible by narrowing or enforcing in part that aspect of the provision
found overbroad or unenforceable.

 

21.           No Waiver: No failure on the
part of either party to exercise and no delay in exercising any right, power or remedy hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise on any right, power or remedy hereunder preclude any other or further exercise thereof
or the exercise of any other right, power or remedy.

 

    	 	8	 

     

    

 

22.           Headings: The headings of
the several sections of this Agreement have been inserted for convenience of reference only and shall be given no effect in the
construction or interpretation of this Agreement.

 

23.           Governing Law: This Agreement
shall be governed by and construed and enforced in accordance with the laws of the State of California, without regard to conflicts
of laws. The parties agree to the exclusive jurisdiction and venue of the Courts of the State of California, in the County of Los
Angeles for the resolution of all disputes arising under this Agreement and consent to personal jurisdiction in Los Angeles. TO
THE EXTENT PERMITTED BY LAW, YOU AND THE COMPANY HEREBY IRREVOCABLY WAIVE TRIAL BY JURY.

 

24.           Representation: This Agreement
has been offered to you based on your representation that as of the commencement of your employment with the Company and throughout
the Term, you will not be under any written or oral agreement, nor will you have at any time entered into an agreement, noncompetition
covenant, nondisclosure agreement, or any similar agreement, covenant, understanding, or restriction, with any other person, firm,
or corporation, which would or could in any manner preclude or prevent you from giving freely, and the Company receiving, the exclusive
benefits of your services.

 

25.           Acknowledgement: You acknowledge
that you have carefully read and fully understand this Agreement and have had sufficient time to obtain independent legal advice
prior to the execution of this Agreement. You further acknowledge that you are entering this Agreement freely and voluntarily.
The parties agree to pay their own legal fees and costs incurred in connection with the preparation of this Agreement and in connection
with any dispute that may arise with respect to it.

 

26.           Survival: You acknowledge
and agree that the covenants, agreements, representations and warranties contained in paragraphs 5C, 5D, 5E, 5F and 8 through 31
of this Agreement shall survive, in accordance with their terms, the expiration or termination of this Agreement for any reason.

 

27.            Counterparts: This Agreement
may be executed in one or more counterparts, each of which shall be deemed an original, but all of which shall together constitute
one and the same instrument.

 

28.           Representations. The Company
represents and warrants that, as of the Effective Date, the Company has the legal right to enter into this Agreement and to perform
all of the obligations on its part to be performed hereunder in accordance with its terms, and that Company is not a party to any
agreement or understanding, written or oral, which could prevent Company form entering into this Agreement or performing all of
its obligations hereunder.

 

30.           Attorney’s Fees. In
the event legal action is instituted by either of the parties hereunder the subject matter of which arises out of, relates to,
or is in connection with this Agreement or the enforcement hereof, the prevailing party shall be entitled to receive from the other
party all reasonable attorney’s fees and legal costs in connection with such legal action including, but not limited to,
any reasonable fees and costs related to collection of any awards or judgments against the non-prevailing party.

 

31.           Further Assurances. 
Each party agrees to cooperate fully with the other parties and to execute such further instruments, documents and agreements and
to give such further written assurances as may be reasonably requested by any other party to evidence and reflect the relationships
described herein and contemplated hereby and to carry into effect the intents and purposes of this Agreement.

 

33.            Liability Insurance. The Company
shall cover the Employee under directors and officers’ liability insurance during the Term of this Agreement in the same
amount and to the same extent as the Company covers its other officers and directors.

 

    	 	9	 

     

    

 

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

 

	 	LOTON, CORP
	 	 	 
	 	By: 	/s/ Robert Ellin
	 	Name: Robert Ellin
	 	Title: Executive Chairman and President
	 	 
	 	 
	 	/s/ Douglas Schaer
	 	Douglas Schaer

 

    	 	10	 

     

    

 

EXHIBIT A

 

to the Employment Agreement between Douglas Schaer (“you”)
and Loton, Corp. (“Company”) dated as of May 3, 2017

 

PROVISIONS REQUIRED FOR A GENERAL RELEASE

 

Release of the Company.

In consideration of the benefits set forth above, you voluntarily,
knowingly and willingly release and forever discharge the Company, its parent entities, shareholders, predecessors, subsidiaries
(including LiveXLive), joint ventures, affiliates, successors and assigns, together with each of those entities ‘respective
owners, officers, directors, partners, shareholders, employee benefit plans, employee benefit administrators, employees, and agents
(collectively, the “Releases”), from any and all claims and rights of any nature whatsoever which you now have or in
the future may have against them up to the date upon which you execute this Agreement. This release includes, but is not limited
to, any rights or claims relating to your employment relationship with the Company, any rights or claims relating to the termination
of your employment relationship with the Company, any contract claims (expressed or implied, written or oral), any rights or claims
based on personal injury, wages, bonuses, commissions, expense reimbursements, vacation pay, benefits, defamation, slander, wrongful
discharge, tort law, contract law, or any rights or claims under any federal, state or local statute, including, without limitation,
the National Labor Relations Act, the Occupational Safety and Health Act of 1970, Title VII of the 1964 Civil Rights Act, the Age
Discrimination in Employment Act, the Older Workers’ Benefit Protection Act, the Americans with Disabilities Act, the Rehabilitation
Actor 1973, the Civil Rights Act of 1866 (42 B.SC. § 1981), the Civil Rights Act of 1991, the Equal Playact, the Family and
Medical Leave Act, the Fair Labor Standards Act, the Worker Adjustment Retraining and Notification Act, the Immigration Reform
and Control Act of 1986, the Employee Retirement Income Security Act of 1974, all as amended. This release specifically includes,
but is not limited to, any claims based upon discrimination and/or harassment on the basis of age, race, color, religion, creed,
sex, national origin, sexual orientation, ancestry, mental or physical disability, alienage or citizenship status, marital status,
or any other class protected by law. Each party acknowledges that he, she or it has been advised by legal counsel and is familiar
with the provisions of California Civil Code Section 1542, which provides, substantially, as follows: “A general release
does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release,
which, if known by him, must have materially affected his settlement with the debtor.”  Each party, being aware of and
familiar with the terms of California Civil Code Section 1542, hereby expressly waives and relinquishes any and all rights or benefits
he, she or it may have under California Civil Code Section 1542, as well as under any other codes, statutes or common law principles
of similar effect, in California or in any other state or jurisdiction whatsoever with respect to any and all matters included
in the release provisions of this agreement, expressly including within the scope of the releases as set forth in such release
provisions, any claims which are not known to him, her or it or are not ascertainable at the time this Agreement is executed.

 

    	 	11Exhibit 10.2

 

LOTON, CORP.

 

NOTICE OF GRANT 

AND 

RESTRICTED STOCK AGREEMENT

 

Subject to the terms and conditions of this Notice of Grant and
Restricted Stock Agreement including the attachments hereto (collectively, “Notice and Agreement”) and pursuant
to the Employment Agreement dated as of May 3, 2017, by and between Loton, Corp. (the “Company”) and Douglas Schaer
(“Schaer”), the Company hereby grants to THE SCHAER FAMILY TRUST DTD 2/4/08 (“Grantee”) the number of shares
of Restricted Common Stock of Loton, Corp., as set forth below (“Common Shares”):

 

	Grantee:	The Schaer Family Trust DTD 2/4/08
	 	 
	Address:	
        2119 Pelham Avenue

        Los Angeles, CA 90025

	 	 
	
        Social Security Number:

         

        Number of Restricted Common Shares Granted:
	400,000 Shares
	 	 
	Grant Date:	Dated and effective May 3, 2017
	 	 
	Period of Restriction (see Section 2 of the attached Restricted Stock Agreement)	At the end of the latter of the One (1) year anniversary of the date on which Company’s underwritten public offering of its common stock closes or September 30, 2018, the restrictions on transfer imposed by the Restricted Stock Agreement on 200,000 Shares shall lapse and on the Second Anniversary of the date hereof the restrictions on transfer imposed by the Restricted Stock Agreement on remaining 200,000 Shares shall lapse.   

 

By signing below, Grantee accepts this grant of Common Shares and
hereby represents that it: (i) agrees to the terms and conditions of this Notice and Agreement; (ii) has reviewed the Notice and
Agreement in their entirety, and has had an opportunity to obtain the advice of legal counsel and/or tax advice with respect thereto;
(iii) fully understands and accepts all provisions hereof; (iv) agrees to accept as binding, conclusive, and final all of the Company’s
decisions regarding, and all interpretations of, the Notice and Agreement; (v) agrees to notify the Company upon any change in
Grantee’s’s address indicated above; and Schaer hereby acknowledges and consents to the terms and conditions of this
Notice and Agreement.

 

	 	AGREED AND ACCEPTED:
	 	 
	 	/s/ Douglas Schaer
	 	Douglas Schaer
	 	 	 
	 	THE SCHAER FAMILY TRUST DTD 2/4/08
	 	 	 
	 	By:	/s/ Douglas Schaer
	 	 	Douglas Schaer
	 	 	 
	 	By:	/s/ Karen Schaer
	 	 	Karen Schaer

 

    	 	1	 

     

    

 

LOTON, CORP. 

RESTRICTED STOCK AGREEMENT

 

THIS RESTRICTED STOCK AGREEMENT
(this “Agreement”) is dated as of May 3, 2017 (the “Effective Date”), by and between Loton,
Corp., a Nevada corporation (the “Company”), and Douglas Schaer (“Schaer”) and The Schaer Family
Trust (“Grantee”).

 

RECITALS

 

WHEREAS, Schaer is an employee
of the Company and is entitled to a grant of “Shares” (defined below) under the terms of the Employment Agreement between
the Company and Scherer, dated as of the Effective Date (the “Employment Agreement”);

 

WHEREAS, Schaer has assigned
his right to receive the Shares to Grantee and Company desires to issue the Shares to the Grantee in accordance with and subject
to all the terms and conditions of this Agreement and the Employment Agreement; and

 

WHEREAS, the parties hereto
desire to memorialize grant of shares of the Company’s Common Stock for the reasons set forth above.

 

NOW, THEREFORE, for good
and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto agree as follows:

 

1.            Grant
of Shares.

 

(a)          Upon
the full execution of this Agreement, the Company shall issue to the Grantee 400,000 restricted shares of the Company’s Common
Stock (the “Shares”), which shares shall vest in accordance with Section 1(b) below and shall be subject to
all the terms and conditions of the Employment Agreement, including the forfeiture provisions contained therein.

 

(b)           The
Shares shall vest in increments, in accordance with the following schedule: (i) the first tranche of Two Hundred Thousand (200,000)
Shares shall vest twelve (12) months from the Effective Date; and (ii) the second tranche of 200,000 Shares shall vest in twelve
(12) equal monthly installments (at the end of each month) starting with the thirteenth (13th) month from the Effective
Date and ending with the twenty-fourth (24th) month from the Effective Date.

 

2.            Restrictions
Against Transfer.

 

(a)          Restrictions
Imposed by this Agreement. The Grantee agrees that it will not transfer, assign, hypothecate, or in any way dispose of any
of the Shares, or any right or interest therein, whether voluntarily or by operation of law, or by gift or otherwise, until the
following dates:

 

(i) At the end of the latter of the One (1)
year anniversary of the date on which Company’s underwritten public offering of its common stock closes or September 30,
2018, the restrictions on transfer imposed by this Restricted Stock Agreement on 200,000 Shares shall lapse; and

 

(ii) On the second anniversary of the date hereof,
the restrictions on transfer imposed by this Restricted Stock Agreement on remaining 200,000 Shares shall lapse.

 

Any purported transfer in violation of any provision of this Agreement
shall be void and ineffectual, and shall not operate to transfer any interest or title to the purported transferee.

 

(b)          Federal
Law Restrictions on Transfer. The Grantee hereby acknowledges that in addition to the restrictions imposed by subsection 2(a),
above, the following restrictions also apply with respect to the Shares:

 

    	 	2	 

     

    

 

(i)          The
Shares held by the Grantee must be held indefinitely unless registered under the Securities Act of 1933, as amended (the “Act”),
or unless, in the opinion of counsel of the Company, an exemption from such registration is available;

 

(ii)         Only
the Company may file a registration statement with the Securities and Exchange Commission (the “SEC”) and the
Company is under no obligation to do so with respect to the Shares;

 

(iii)        Exemption
from registration may not be available or may not permit the Grantee to transfer Shares in the amounts or at the times proposed
by the Grantee;

 

(iv)        The
Acquiror has been advised that Rule 144 promulgated by the SEC under the Act (“Rule 144”), which provides for
certain limited, routine sales of unregistered securities through brokers, is not presently available with respect to the Shares
and may never be available, and in any event, requires that the Shares be held and fully paid for within the meaning of Rule 144
for a minimum of one (1) year, and possibly longer, before they may be resold under Rule 144;

 

(v)         The
Company is under no obligation to file any disclosure statement with the SEC or to furnish the Grantee with information to sell
any of the Shares under Rule 144; and

 

(vi)        In
reliance upon the representations of the Grantee set forth in Section 3 below, the Company has not registered the Shares with
the SEC under the Act.

 

(b)          Representation
by Transferee. The Grantee agrees that it will not transfer, assign, hypothecate, or in any way dispose of any of the Shares
to a transferee until such transferee executes a written consent to be bound by the terms and conditions of this Agreement in form
and substance satisfactory to the Company.

 

3.            Representations
of the Acquiror. The Grantee represents and warrants to the Company that:

 

(a)          It
is acquiring the Shares for its own account for investment only and not with a view to, or for sale in connection with, a distribution
of the Shares within the meaning of the Act;

 

(b)          It
has no present intention of selling or otherwise disposing of all or any portion of the Shares, and no other person has any beneficial
ownership in the Shares;

 

(c)          It
has had access to all information regarding the Company and its present and prospective business, assets, liabilities and financial
condition;

 

(d)          It
has had ample opportunity to ask questions of and receive answers from the Company’s representatives concerning this investment
and to obtain any and all documents requested in order to supplement or verify any of the information supplied; and

 

(e)          It
recognizes (i) the lack of liquidity of the Shares and restrictions upon transferability thereof (e.g., that the undersigned may
not be able to sell or dispose of them or use them as collateral for loans), and (ii) the qualifications and backgrounds of the
principals of the Company, among other matters.

 

4.             Inducement.
In order to induce the Company to consent to the grant of the Shares to Grantee in accordance with this Agreement, Schaer hereby
guarantees the full and complete performance of the terms and conditions of this Agreement by the Grantee, and acknowledges and
agrees that the Shares granted hereunder to Grantee shall be subject to all the terms and conditions of this Agreement and the
Employment Agreement, including the forfeiture provisions contained therein. Schaer acknowledges and agrees that the grant of the
Shares to Grantee hereunder satisfies the Company’s obligation to grant the Shares to Schaer under the Employment Agreement.

 

    	 	3	 

     

    

 

5.            Notices.
All notices required or desired to be given pursuant to this Agreement shall be in writing and shall be personally served (including
by commercial delivery or courier service) or given by mail or facsimile. Any notice given by mail shall be deemed to have been
given and received when seventy-two (72) hours have elapsed from the time such notice was deposited in the United States mails,
certified or registered and first-class postage prepaid, addressed, if intended to a party to this Agreement, at the address set
forth below its signature or to such other address as such party may have designated by like written notice to each of the other
parties from time to time.

 

6.            Refusal
to Transfer. The Company shall not be required:

 

(a)          To
transfer on its books any Shares that have been sold, given away, or otherwise transferred in violation of any provision set forth
in this Agreement; or

 

(b)          To
treat as owner of such Shares or to accord the right to receive dividends to any purchaser, donee, or other transferee to whom
such Shares shall have been so transferred.

 

7.            Restriction
on Certificates.

 

(a)          Legends.
The Company and the Grantee agree that all certificates representing all Shares of the Company which at any time are subject to
the provisions of this Agreement shall have endorsed upon them legends substantially similar to the following:

 

THESE SHARES HAVE BEEN ACQUIRED FOR INVESTMENT
AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF THE
VARIOUS STATES, AND HAVE BEEN ISSUED AND SOLD PURSUANT TO AN EXEMPTION FROM THE ACT, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE
TRANSFERRED BY THE HOLDER THEREOF AT ANY TIME, EXCEPT (1) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT, FILED UNDER THE
ACT COVERING THE SHARES, OR (2) UPON DELIVERY TO THE COMPANY OF AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT THE
SHARES MAY BE TRANSFERRED WITHOUT REGISTRATION.

 

THESE SHARES HAVE NOT BEEN QUALIFIED UNDER
ANY STATE SECURITIES LAWS AND MAY ALSO BE RESTRICTED UNDER THE PROVISIONS OF SUCH LAWS. THESE SHARES MUST BE HELD INDEFINITELY
UNLESS THEY ARE SUBSEQUENTLY QUALIFIED OR ARE OTHERWISE EXEMPT FROM QUALIFICATION UNDER SUCH LAWS.

 

THE SHARES REPRESENTED BY THIS CERTIFICATE
MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF THAT CERTAIN RESTRICTED STOCK AGREEMENT,
BETWEEN THE COMPANY AND THE HOLDER HEREOF, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

 

(b)           Stop
Transfer Instructions. The Grantee agrees that in order to ensure compliance with the restrictions referred to herein, the
Company may issue appropriate “stop transfer” instructions to its transfer agent, if any, with respect to such certificates
or instruments and, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own
records.

 

8.            Code
Section 83(b) Election. Grantee acknowledges that he has been informed and is aware of the following income tax consequences
resulting from the receipt and vesting of the Shares:

 

(a)          Grantee
will be taxed on the fair market value of the Shares as and when the restrictions lapse in accordance with the provisions of this
Agreement and any related agreement (such fair market value determined on such vesting dates), unless Grantee files an election
pursuant to Section 83(b) of the Code (and any similar state tax provisions if applicable). If such an election is made, Grantee
will be taxed currently on the full fair market value of the Shares on the Effective Date. Any such election must be filed by Grantee
with the Internal Revenue Service and, if necessary, the proper state taxing authorities, within 30 days of the receipt of
the Shares. A form of Election under Section 83(b) is attached hereto. GRANTEE ACKNOWLEDGES THAT IT IS HIS OR HER SOLE
RESPONSIBILITY AND NOT THE COMPANY’S (i) TO DETERMINE WHETHER OR NOT TO MAKE ANY ELECTION UNDER SECTION 83(b) OF THE CODE,
AND (ii) IF GRANTEE DETERMINES TO MAKE ANY SUCH ELECTION, TO TIMELY FILE SUCH ELECTION UNDER SECTION 83(b) OF THE CODE, EVEN IF
GRANTEE ASKS THE COMPANY OR ITS REPRESENTATIVE TO MAKE THIS FILING ON HIS OR HER BEHALF. Grantee must obtain its own counsel
to determine whether Grantee is eligible to make an 83(b) election and Grantee’s compliance with all tax reporting obligations
relating to the Agreement, and the Company makes no representations with regard to any reporting obligations of the Grantee including
the filing of an 83(b) election or the form attached hereto.

 

    	 	4	 

     

    

 

(b)          Grantee
shall notify the Company immediately in writing in the event Grantee makes an election under Section 83(b) of the Code (or any
successor provision) or corresponding provisions of state or local tax laws with respect to the Shares.

 

9.            General
Provisions.

 

(a)          Severability.
In the event that any of the provisions of this Agreement are held to be unenforceable or invalid by any court of competent jurisdiction,
the validity and enforceability of the remaining provisions shall not be affected thereby.

 

(b)          Construction.
All pronouns used in this Agreement shall be deemed to refer to the masculine, feminine, neuter, singular or plural as identification
of the person or persons, firm or firms, corporation or corporations may require.

 

(c)          Governing
Law. This Agreement shall be governed by the laws of the State of Nevada, without regard to its conflicts of laws rules or
provisions.

 

(d)          Amendment.
No amendment or variation of the terms of this Agreement, with or without consideration, shall be valid unless made in writing
and signed by all of the parties to this Agreement at the time of such amendment.

 

(e)          Inurement.
Subject to the restrictions against transfer or assignment contained herein, the provisions of this Agreement shall inure to the
benefit of and shall be binding upon the assigns, successors in interest, personal representatives, estates, heirs, and legatees
of each of the parties. The Grantee agrees that it will not hypothecate or otherwise create or suffer to exist any lien, claim,
or encumbrance upon any of its Shares at any time subject hereto, other than an encumbrance created or permitted by this Agreement.

 

(f)          Entire
Agreement. This Agreement, the Notice of Grant, and the Employment Agreement contain the entire understanding between the parties
concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral
or written, between or among the parties, relating to the subject matter of this Agreement, the Notice of Grant, and the Employment
Agreement which are not fully expressed herein or therein.

 

(g)          Further
Instruments. The parties agree to execute such further instruments and to take such further action as may be reasonably necessary
to carry out the purposes and intent of this Agreement.

 

(h)          Counterparts;
Originals. This Agreement may be executed in one or more counterparts and by PDF or facsimile, each of which shall be deemed
an original and all of which together shall constitute one instrument.

 

    	 	5	 

     

    

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement on the date and year first above written.

 

	 	LOTON, CORP
	 	 	 
	 	By:	/s/ Robert Ellin
	 	Name:	 Robert Ellin
	 	Title:	Executive Chairman and President
	 	 	 
	 	/s/ Douglas Schaer
	 	Douglas Schaer
	 	 	 
	 	THE SCHAER FAMILY TRUST DTD 2/4/08
	 	 	 
	 	By:	/s/ Douglas Schaer
	 	 	Douglas Schaer
	 	 	 
	 	By: 	/s/ Karen Schaer
	 	 	Karen Schaer

 

    	 	6	 

     

    

 

SECTION 83(b) TAX ELECTION

 

This statement is being made under Section 83(b) of the Internal
Revenue Code, pursuant to Treas. Reg. Section 1.83-2.

 

(1)         Name: ______________________________________________________________

 

Address: ___________________________________________________________

 

___________________________________________________________

 

Social Security No.: __________________

 

(2)         The
property with respect to which the election is being made is ______________ shares of the common stock of Loton, Corp., a Nevada
corporation (“Shares”).

 

(3)         The
date on which the Shares were acquired is __________________, 2017.

 

(4)         The
taxable year in which the election is being made is the calendar year 2017.

 

(5)         The
property is subject to surrender and cancellation if for any reason the taxpayer ceases to be an employee the issuer prior to specified
vesting dates. This restriction lapses in accordance with the terms of an agreement between the company and taxpayer.

 

(6)         The
fair market value at the time of transfer (determined without regard to any restriction other than a restriction which by its terms
will never lapse) is $________ per share.

 

(7)         The
amount paid for such property is $  0     per share.

 

(8)         A
copy of this statement was furnished to Loton, Corp., for whom taxpayer rendered the services underlying the transfer of property.

 

(9)         This
statement is executed as of _________________, 2017.

 

	Signature:	 
	 	Taxpayer
	 	 
	 	 
	 	Taxpayer’s Spouse, if any

 

NOTE:To make the election, this form must be filed with
the Internal Revenue Service Center with which taxpayer files his/her Federal income tax returns. The filing must be made
within thirty (30) days after the Effective Date of the Restricted Stock Agreement.

 

    	 	1

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