Document:

LOAN AND SECURITY MODIFICATION AGREEMENT

 

This Loan and Security
Modification Agreement is entered into as of November 14, 2012, by and between Document Capture Technologies, Inc. and Syscan,
Inc. (jointly and severally the “Borrower” or “Borrowers”) and Bridge Bank, National Association (“Bank”).

 

1.            DESCRIPTION
OF EXISTING INDEBTEDNESS: Among other indebtedness which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant
to, among other documents, a Loan and Security Agreement, dated September 2, 2009 by and between Borrower and Bank, as may be amended
from time to time (the “Loan and Security Agreement”). Capitalized terms used without definition herein shall have
the meanings assigned to them in the Loan and Security Agreement.

 

Hereinafter, all indebtedness owing by
Borrower to Bank shall be referred to as the "Indebtedness" and the Loan and Security Agreement and any and all other
documents executed by Borrower in favor of Bank shall be referred to as the “Existing Documents.”

 

2.            DESCRIPTION
OF CHANGE IN TERMS.

 

		A.	Modification(s) to Loan and Security Agreement:

 

		1)	The following defined terms in Section 1.1 entitled “Definitions” are hereby amended
as follows:

 

“Revolving Maturity Date”
means November 15, 2013.

 

Subsection (i) of the defined term
“Eligible Accounts” is hereby amended as follows:

(i)
             Accounts with respect to an account debtor, including Subsidiaries and Affiliates, whose total obligations to a Borrower exceed
thirty percent (30%) of all Accounts, to the extend such obligations exceed the aforementioned percentage, except as approve in
writing by Bank.

 

		2)	Section 2.5(a) entitled “Facility Fee” is hereby amended as follows:

 

		(a)	Facility Fee. On the date of the Business Financing
Modification Agreement dated November 14, 2012 and annually on each November 15 thereafter, a fee equal to 0.25% of the Revolving
Line.

 

3.            CONSISTENT
CHANGES. The Existing Documents are each hereby amended wherever necessary to reflect the changes described above.

 

4.            PAYMENT
OF FEES. Borrower shall pay Bank the Facility Fee in the amount of $7,500 and a fee in the amount of $75 (“Renewal Due
Diligence Fee”), plus all out-of-pocket expenses.

 

    	 

    	 

    

 

5.            NO
DEFENSES OF BORROWER/GENERAL Release. Borrower agrees that, as of this date,
it has no defenses against the obligations to pay any amounts under the Indebtedness. Each of Borrower and Guarantor (each, a “Releasing
Party”) acknowledges that Bank would not enter into this Loan and Security Modification Agreement without Releasing Party’s
assurance that it has no claims against Bank or any of Bank’s officers, directors, employees or agents. Except for the obligations
arising hereafter under this Loan and Security Modification Agreement, each Releasing Party releases Bank, and each of Bank’s
and entity’s officers, directors and employees from any known or unknown claims that Releasing Party now has against Bank
of any nature, including any claims that Releasing Party, its successors, counsel, and advisors may in the future discover they
would have now had if they had known facts not now known to them, whether founded in contract, in tort or pursuant to any other
theory of liability, including but not limited to any claims arising out of or related to the Agreement or the transactions contemplated
thereby. Releasing Party waives the provisions of California Civil Code section 1542, which states:

 

A GENERAL RELEASE DOES NOT EXTEND
TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH
IF KNOWN BY HIM OR HER, MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

 

The provisions, waivers and releases set
forth in this section are binding upon each Releasing Party and its shareholders, agents, employees, assigns and successors in
interest. The provisions, waivers and releases of this section shall inure to the benefit of Bank and its agents, employees, officers,
directors, assigns and successors in interest. The provisions of this section shall survive payment in full of the Obligations,
full performance of all the terms of this Loan and Security Modification Agreement and the Agreement, and/or Bank’s actions
to exercise any remedy available under the Agreement or otherwise.

 

6.            CONTINUING
VALIDITY. Borrower understands and agrees that in modifying the existing Indebtedness, Bank is relying upon Borrower's representations,
warranties, and agreements, as set forth in the Existing Documents. Except as expressly modified pursuant to this Loan and Security
Modification Agreement, the terms of the Existing Documents remain unchanged and in full force and effect. Bank's agreement to
modifications to the existing Indebtedness pursuant to this Loan and Security Modification Agreement in no way shall obligate Bank
to make any future modifications to the Indebtedness. Nothing in this Loan and Security Modification Agreement shall constitute
a satisfaction of the Indebtedness. It is the intention of Bank and Borrower to retain as liable parties all makers and endorsers
of Existing Documents, unless the party is expressly released by Bank in writing. No maker, endorser, or guarantor will be released
by virtue of this Loan and Security Modification Agreement. The terms of this paragraph apply not only to this Loan and Security
Modification Agreement, but also to any subsequent Loan and Security modification agreements.

 

8.            CONDITIONS.
The effectiveness of this Loan and Security Modification Agreement is conditioned upon payment of the Facility Fee and the Renewal
Due Diligence Fee.

 

9.            COUNTERSIGNATURE.
This Loan and Security Modification Agreement shall become effective only when executed by Bank and Borrower.

 

	BORROWER:	 	BANK:
	 	 	 
	DOCUMENT CAPTURE TECHNOLOGIES, INC.	 	BRIDGE BANK, NATIONAL ASSOCIATION
	 	 	 
	By:	 	 	By:	 
	 	 	 	 	 
	Name:	 	 	Name:	 
	 	 

                                 
		 	 
	Title:	 	 	Title:	 

 

    	 

    	 

    

 

	BORROWER:	 	
	 	 	 
	SYSCAN, INC.

	 	
	 	 	 
	By:	 	 		 
	 	 	 	 	 
	Name:	 	 		 
	 	 	 	 	 
	Title:2013 STOCK OPTION PLAN

OF

DOCUMENT CAPTURE TECHNOLOGIES, INC.

 

1.           PURPOSES
OF THE PLAN

 

The purposes of the
2013 Stock Option Plan (the “Plan”) of Document Capture Technologies, Inc., a Delaware corporation (the “Company”),
are to:

 

(a)          Encourage
selected employees, directors and consultants to improve operations and increase profits of the Company;

 

(b)          Encourage
selected employees, directors and consultants to accept or continue employment or association with the Company or its Affiliates;
and

 

(c)          Increase
the interest of selected employees, directors and consultants in the Company's welfare through participation in the growth in value
of the common stock of the Company (the “Shares”).

 

Options granted under
this Plan (“Options”) may be “incentive stock options” (“ISOs”) intended to satisfy the requirements
of Section 422 of the Internal Revenue Code of 1986, as amended, and the regulations thereunder (the “Code”), or “non-qualified
stock options” (“NQSOs”).

 

2.           ELIGIBLE
PERSONS

 

Every person who at
the date of grant of an Option is an employee of the Company or of any Affiliate (as defined below) of the Company is eligible
to receive NQSOs or ISOs under this Plan. Every person who at the date of grant is a consultant to, or non-employee director of,
the Company or any Affiliate (as defined below) of the Company is eligible to receive NQSOs under this Plan. The term “Affiliate”
as used in the Plan means a parent or subsidiary corporation as defined in the applicable provisions (currently Sections 424(e)
and (f), respectively) of the Code. The term “employee” (within the meaning of Section 3401(c) of the Code) includes
an officer or director who is an employee of the Company. The term “consultant” includes persons employed by, or otherwise
affiliated with, a consultant.

 

3.           STOCK
SUBJECT TO THIS PLAN; MAXIMUM NUMBER OF GRANTS

 

Subject to the provisions
of Section 6.1.1 of the Plan, the total number of Shares which may be issued under Options granted pursuant to this Plan shall
not exceed three million five hundred thousand (3,500,000) Shares. The Shares covered by the portion of any grant under the Plan
which expires unexercised shall become available again for grants under the Plan.

 

4.           ADMINISTRATION

 

(a)          The
Plan shall be administered by either the Board of Directors of the Company (the “Board”) or by a committee (the “Committee”)
to which administration of the Plan, or of part of the Plan, may be delegated by the Board (in either case, the “Administrator”).
The Board shall appoint and remove members of such Committee, if any, in its discretion in accordance with applicable laws. If
necessary in order to comply with Rule 16b-3 under the Exchange Act and Section 162(m) of the Code, the Committee shall, in the
Board's discretion, be comprised solely of “non-employee directors” within the meaning of said Rule 16b-3 and “outside
directors” within the meaning of Section 162(m) of the Code. The foregoing notwithstanding, the Administrator may delegate
nondiscretionary administrative duties to such employees of the Company as it deems proper and the Board, in its absolute discretion,
may at any time and from time to time exercise any and all rights and duties of the Administrator under the Plan.

 

    	 

    	 

    

 

(b)          Subject
to the other provisions of this Plan, the Administrator shall have the authority, in its discretion: (i) to grant Options; (ii)
to determine the fair market value of the Shares subject to Options; (iii) to determine the exercise price of Options granted;
(iv) to determine the persons to whom, and the time or times at which, Options shall be granted, and the number of shares subject
to each Option; (v) to interpret this Plan; (vi) to prescribe, amend, and rescind rules and regulations relating to this Plan;
(vii) to determine the terms and provisions of each Option granted (which need not be identical), including but not limited to,
the time or times at which Options shall be exercisable; (viii) with the consent of the optionee, to modify or amend any Option;
(ix) to defer (with the consent of the optionee) the exercise date of any Option; (x) to authorize any person to execute on behalf
of the Company any instrument evidencing the grant of an Option; and (xi) to make all other determinations deemed necessary or
advisable for the administration of this Plan. The Administrator may delegate nondiscretionary administrative duties to such employees
of the Company as it deems proper.

 

(c)          All
questions of interpretation, implementation, and application of this Plan shall be determined by the Administrator. Such determinations
shall be final and binding on all persons.

 

5.           GRANTING
OF OPTIONS; OPTION AGREEMENT

 

(a)          No
Options shall be granted under this Plan after 10 years from the date of adoption of this Plan by the Board.

 

(b)          Each
Option shall be evidenced by a written stock option agreement, in form satisfactory to the Administrator, executed by the Company
and the person to whom such Option is granted.

 

(c)          The
stock option agreement shall specify whether each Option it evidences is an NQSO or an ISO.

 

(d)          Subject
to Section 6.3.3 with respect to ISOs, the Administrator may approve the grant of Options under this Plan to persons who are expected
to become employees, directors or consultants of the Company, but are not employees, directors or consultants at the date of approval,
and the date of approval shall be deemed to be the date of grant unless otherwise specified by the Administrator.

 

6.           TERMS
AND CONDITIONS OF OPTIONS

 

Each Option granted
under this Plan shall be subject to the terms and conditions set forth in Section 6.1. NQSOs shall also be subject to the terms
and conditions set forth in Section 6.2, but not those set forth in Section 6.3. ISOs shall also be subject to the terms and conditions
set forth in Section 6.3, but not those set forth in Section 6.2.

 

6.1           Terms
and Conditions to Which All Options Are Subject. All Options granted under this Plan shall be subject to the following terms and
conditions:

 

6.1.1           Changes
in Capital Structure. Subject to Section 6.1.2, if the stock of the Company is changed by reason of a stock split, reverse stock
split, stock dividend, or recapitalization, combination or reclassification, appropriate adjustments shall be made by the Board
in (a) the number and class of shares of stock subject to this Plan and each Option outstanding under this Plan, and (b) the exercise
price of each outstanding Option; provided, however, that the Company shall not be required to issue fractional shares as a result
of any such adjustments. Each such adjustment shall be subject to approval by the Board in its sole discretion.

 

6.1.2           Corporate
Transactions. In the event of the proposed dissolution or liquidation of the Company, the Administrator shall notify each optionee
at least 30 days prior to such proposed action. To the extent not previously exercised, all Options will terminate immediately
prior to the consummation of such proposed action; provided, however, that the Administrator, in the exercise of its sole discretion,
may permit exercise of any Options prior to their termination, even if such Options were not otherwise exercisable. In the event
of a merger or consolidation of the Company with or into another corporation or entity in which the Company does not survive, or
in the event of a sale of all or substantially all of the assets of the Company in which the shareholders of the Company receive
securities of the acquiring entity or an affiliate thereof, all Options shall be assumed or equivalent options shall be substituted
by the successor corporation (or other entity) or a parent or subsidiary of such successor corporation (or other entity); provided,
however, that if such successor does not agree to assume the Options or to substitute equivalent options therefor, the Administrator,
in the exercise of its sole discretion, may permit the exercise of any of the Options prior to consummation of such event, even
if such Options were not otherwise exercisable.

 

    	 

    	 

    

 

6.1.3           Time
of Option Exercise. Subject to Section 5 and Section 6.3.4, Options granted under this Plan shall be exercisable (a) immediately
as of the effective date of the stock option agreement granting the Option, or (b) in accordance with a schedule as may be set
by the Administrator (each such date on such schedule, the “Vesting Base Date”) and specified in the written stock
option agreement relating to such Option. In any case, no Option shall be exercisable until a written stock option agreement in
form satisfactory to the Company is executed by the Company and the optionee.

 

6.1.4           Option
Grant Date. The date of grant of an Option under this Plan shall be the date as of which the Administrator approves the grant.

 

6.1.5           Nontransferability
of Option Rights. Except with the express written approval of the Administrator which approval the Administrator is authorized
to give only with respect to NQSOs, no Option granted under this Plan shall be assignable or otherwise transferable by the optionee
except by will, by the laws of descent and distribution or pursuant to a qualified domestic relations order. During the life of
the optionee, an Option shall be exercisable only by the optionee.

 

6.1.6           Payment.
Except as provided below, payment in full, in cash, shall be made for all stock purchased at the time written notice of exercise
of an Option is given to the Company, and proceeds of any payment shall constitute general funds of the Company. The Administrator,
in the exercise of its absolute discretion, may authorize any one or more of the following additional methods of payment:

 

(a)          Subject
to the discretion of the Administrator and the terms of the stock option agreement granting the Option, delivery by the optionee
of Shares already owned by the optionee for all or part of the Option price, provided the fair market value (determined as set
forth in Section 6.1.10) of such Shares being delivered is equal on the date of exercise to the Option price, or such portion thereof
as the optionee is authorized to pay by delivery of such stock; and

 

(b)          Subject
to the discretion of the Administrator, through the surrender of Shares then issuable upon exercise of the Option, provided the
fair market value (determined as set forth in Section 6.1.10) of such Shares is equal on the date of exercise to the Option price,
or such portion thereof as the optionee is authorized to pay by surrender of such stock.

 

6.1.7           Termination
of Employment. If for any reason other than death or permanent and total disability, an optionee ceases to be employed by the Company
or any of its Affiliates (such event being called a “Termination”), Options held at the date of Termination (to the
extent then exercisable) may be exercised in whole or in part at any time within three months of the date of such Termination,
or such other period of not less than 30 days after the date of such Termination as is specified in the Option Agreement or by
amendment thereof (but in no event after the Expiration Date); provided, however, that if such exercise of the Option would result
in liability for the optionee under Section 16(b) of the Exchange Act, then such three-month period automatically shall be extended
until the tenth day following the last date upon which optionee has any liability under Section 16(b) (but in no event after the
Expiration Date). If an optionee dies or becomes permanently and totally disabled (within the meaning of Section 22(e)(3) of the
Code) while employed by the Company or an Affiliate or within the period that the Option remains exercisable after Termination,
Options then held (to the extent then exercisable) may be exercised, in whole or in part, by the optionee, by the optionee's personal
representative or by the person to whom the Option is transferred by devise or the laws of descent and distribution, at any time
within twelve months after the death or twelve months after the permanent and total disability of the optionee or any longer period
specified in the Option Agreement or by amendment thereof (but in no event after the Expiration Date). For purposes of this Section
6.1.7, “employment” includes service as a director or as a consultant. For purposes of this Section 6.1.7, an optionee's
employment shall not be deemed to terminate by reason of sick leave, military leave or other leave of absence approved by the Administrator,
if the period of any such leave does not exceed 90 days or, if longer, if the optionee's right to reemployment by the Company or
any Affiliate is guaranteed either contractually or by statute.

 

    	 

    	 

    

 

6.1.8           Withholding
and Employment Taxes. At the time of exercise of an Option and as a condition thereto, or at such other time as the amount of such
obligations becomes determinable (the “Tax Date”), the optionee shall remit to the Company in cash all applicable federal
and state withholding and employment taxes. Such obligation to remit may be satisfied, if authorized by the Administrator in its
sole discretion, after considering any tax, accounting and financial consequences, by the optionee's (i) delivery of a promissory
note in the required amount on such terms as the Administrator deems appropriate, (ii) tendering to the Company previously owned
Shares or other securities of the Company with a fair market value equal to the required amount, or (iii) agreeing to have Shares
(with a fair market value equal to the required amount) which are acquired upon exercise of the Option withheld by the Company.

 

6.1.9           Other
Provisions. Each Option granted under this Plan may contain such other terms, provisions, and conditions not inconsistent with
this Plan as may be determined by the Administrator, and each ISO granted under this Plan shall include such provisions and conditions
as are necessary to qualify the Option as an “incentive stock option” within the meaning of Section 422 of the Code.

 

6.1.10         Determination
of Value. For purposes of the Plan, the fair market value of Shares or other securities of the Company shall be determined as follows:

 

(a)          Fair
market value shall be the closing price of such stock on the date before the date the value is to be determined on the principal
recognized securities exchange or recognized securities market on which such stock is reported, but if selling prices are not reported,
its fair market value shall be the mean between the high bid and low asked prices for such stock on the date before the date the
value is to be determined (or if there are no quoted prices for such date, then for the last preceding business day on which there
were quoted prices).

 

(b)          In
the absence of an established market for the stock, the fair market value thereof shall be determined in good faith by the Administrator,
with reference to the Company's net worth, prospective earning power, dividend-paying capacity, and other relevant factors, including
the goodwill of the Company, the economic outlook in the Company's industry, the Company's position in the industry, the Company's
management, and the values of stock of other corporations in the same or similar line of business.

 

6.1.11         Option
Term. Subject to Section 6.3.4, no Option shall be exercisable more than 10 years after the date of grant, or such lesser period
of time as is set forth in the stock option agreement (the end of the maximum exercise period stated in the stock option agreement
is referred to in this Plan as the “Expiration Date”).

 

6.2           Terms
and Conditions to Which Only NQSOs Are Subject. Options granted under this Plan which are designated as NQSOs shall be subject
to the following terms and conditions:

 

6.2.1           Exercise
Price.

 

(a)          Except
as set forth in Section 6.2.1(b), the exercise price of an NQSO shall be not less than 85% of the fair market value (determined
in accordance with Section 6.1.10) of the stock subject to the Option on the date of grant.

 

(b)          To
the extent required by applicable laws, rules and regulations, the exercise price of a NQSO granted to any person who owns, directly
or by attribution under the Code (currently Section 424(d)), stock possessing more than ten percent of the total combined voting
power of all classes of stock of the Company or of any Affiliate (a “Ten Percent Shareholder”) shall in no event be
less than 110% of the fair market value (determined in accordance with Section 6.1.10) of the stock covered by the Option at the
time the Option is granted.

 

6.3           Terms
and Conditions to Which Only ISOs Are Subject. Options granted under this Plan which are designated as ISOs shall be subject to
the following terms and conditions:

 

    	 

    	 

    

 

6.3.1           Exercise
Price.

 

(a)          Except
as set forth in Section 6.3.1(b), the exercise price of an ISO shall be determined in accordance with the applicable provisions
of the Code and shall in no event be less than the fair market value (determined in accordance with Section 6.1.10) of the stock
covered by the Option at the time the Option is granted.

 

(b)          The
exercise price of an ISO granted to any Ten Percent Shareholder shall in no event be less than 110% of the fair market value (determined
in accordance with Section 6.1.10) of the stock covered by the Option at the time the Option is granted.

 

6.3.2           Disqualifying
Dispositions. If stock acquired by exercise of an ISO granted pursuant to this Plan is disposed of in a “disqualifying disposition”
within the meaning of Section 422 of the Code (a disposition within two years from the date of grant of the Option or within one
year after the transfer such stock on exercise of the Option), the holder of the stock immediately before the disposition shall
promptly notify the Company in writing of the date and terms of the disposition and shall provide such other information regarding
the Option as the Company may reasonably require.

 

6.3.3           Grant
Date. If an ISO is granted in anticipation of employment as provided in Section 5(d), the Option shall be deemed granted, without
further approval, on the date the grantee assumes the employment relationship forming the basis for such grant, and, in addition,
satisfies all requirements of this Plan for Options granted on that date.

 

6.3.4           Term.
Notwithstanding Section 6.1.11, no ISO granted to any Ten Percent Shareholder shall be exercisable more than five years after the
date of grant.

 

7.           MANNER
OF EXERCISE

 

(a)          An
optionee wishing to exercise an Option shall give written notice to the Company at its principal executive office, to the attention
of the officer of the Company designated by the Administrator, accompanied by payment of the exercise price and withholding taxes
as provided in Sections 6.1.6 and 6.1.8. The date the Company receives written notice of an exercise hereunder accompanied by payment
of the exercise price will be considered as the date such Option was exercised.

 

(b)          Promptly
after receipt of written notice of exercise of an Option and the payments called for by Section 7(a), the Company shall, without
stock issue or transfer taxes to the optionee or other person entitled to exercise the Option, deliver to the optionee or such
other person a certificate or certificates for the requisite number of shares of stock. An optionee or permitted transferee of
the Option shall not have any privileges as a shareholder with respect to any shares of stock covered by the Option until the date
of issuance (as evidenced by the appropriate entry on the books of the Company or a duly authorized transfer agent) of such shares.

 

8.           EMPLOYMENT
OR CONSULTING RELATIONSHIP

 

Nothing in this Plan
or any Option granted hereunder shall interfere with or limit in any way the right of the Company or of any of its Affiliates to
terminate any optionee's employment or consulting at any time, nor confer upon any optionee any right to continue in the employ
of, or consult with, the Company or any of its Affiliates.

 

9.           CONDITIONS
UPON ISSUANCE OF SHARES

 

Shares shall not be
issued pursuant to the exercise of an Option unless the exercise of such Option and the issuance and delivery of such shares pursuant
thereto shall comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933, as amended
(the “Securities Act”).

 

10.          NON-EXCLUSIVITY
OF THE PLAN

 

The adoption of the
Plan shall not be construed as creating any limitations on the power of the Company to adopt such other incentive arrangements
as it may deem desirable, including, without limitation, the granting of stock options other than under the Plan.

 

    	 

    	 

    

 

11.          AMENDMENTS
TO PLAN

 

The Board may at any
time amend, alter, suspend or discontinue this Plan. Without the consent of an optionee, no amendment, alteration, suspension or
discontinuance may adversely affect outstanding Options except to conform this Plan and ISOs granted under this Plan to the requirements
of federal or other tax laws relating to incentive stock options. No amendment, alteration, suspension or discontinuance shall
require shareholder approval unless (a) shareholder approval is required to preserve incentive stock option treatment for federal
income tax purposes or (b) the Board otherwise concludes that shareholder approval is advisable.

 

12.          EFFECTIVE
DATE OF PLAN; TERMINATION

 

This Plan shall become
effective upon adoption by the Board; provided, however, that no Option shall be exercisable unless and until written consent of
the shareholders of the Company, or approval of shareholders of the Company voting at a validly called shareholders' meeting, is
obtained within twelve months after adoption by the Board. If such shareholder approval is not obtained within such time, Options
granted hereunder shall be of the same force and effect as if such approval was obtained except that all ISOs granted hereunder
shall be treated as NQSOs. Options may be granted and exercised under this Plan only after there has been compliance with all applicable
federal and state securities laws. This Plan shall terminate within ten years from the date of its adoption by the Board.

 

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