Document:

EX-10.1

 Exhibit 10.1 

CUE BIOPHARMA, INC. 

EXECUTIVE EMPLOYMENT AGREEMENT 

This Executive Employment Agreement (“Agreement”), dated as of August 21, 2020 (the “Effective Date”),
is made by and between Cue Biopharma, Inc., a Delaware corporation (“Cue” or the “Company”)), and Kerri-Ann Millar (“Executive,” and together with Cue, the
“Parties”). 
 WHEREAS, the Company and Executive desire to enter into this Agreement to set forth the conditions
under which the Executive is to be employed by the Company. 
 NOW, THEREFORE, in consideration of the foregoing, of the mutual
promises contained herein and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 

1. POSITION AND DUTIES. 
 (a) Beginning on
the Effective Date, Cue shall employ Executive as its Chief Financial Officer (“CFO”). In Executive’s role as CFO, Executive shall have such duties and authority commensurate with the position of CFO, and such other duties
commensurate with the positions that may be assigned by the Board of Directors of Cue (the “Board”) or the Chief Executive Officer of Cue (the “CEO”). 

(b) Executive shall report directly to the CEO. 

(c) Executive shall devote all of Executive’s business time, energy, judgment, knowledge and skill and Executive’s best efforts to
the performance of Executive’s duties with Cue, provided that the foregoing shall not prevent Executive from (i) participating in charitable, civic, educational, professional, community or industry affairs or (ii) managing
Executive’s passive personal investments, so long as such activities in the aggregate do not interfere or conflict with Executive’s duties hereunder or create a potential business or fiduciary conflict. 

2. TERM. Subject to the remaining terms of this Section 2, and Section 7, this Agreement
shall be for an initial term that begins on the Effective Date and continues in effect through December 31, 2021 (the “Initial Term”) and, unless terminated sooner as herein provided, shall continue on a year-to-year basis after the Initial Term (each year, a “Renewal Term,” and each Renewal Term together with the Initial Term, the “Term”). If
either Party elects not to renew this Agreement, that Party must give a written notice of non-renewal to the other Party at least 60 days before the expiration of the then-current Initial Term or Renewal Term.
In the event that one Party provides the other with a notice of non-renewal pursuant to this Section 2, no further automatic extensions shall occur and this Agreement shall terminate
at the end of the then-existing Initial Term or Renewal Term, as applicable, and except as provided in the following sentence such non-renewal shall not result in any entitlement to compensation pursuant to
Section 8 below or otherwise. 
 3. BASE SALARY. During the Term, Cue shall pay Executive a base salary
(“Base Salary”) at the rate of $27,083 per month, which equates to an annual rate of $325,000, in accordance with the regular payroll practices of Cue. The Base Salary shall be subject to annual review and potential increase (but
not decrease) in accordance with Cue’s normal compensation practices. 

  
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 4. ANNUAL BONUS. Executive shall be eligible to receive an annual incentive bonus (the
“Annual Bonus”), subject to achievement of key performance indicators for Cue, with the level of achievement determined by the Compensation Committee of the Board or its delegate (the “Committee”). Executive’s
target annual bonus percentage for each calendar year shall be no less than thirty-five percent (35%) of the Base Salary. The Committee shall establish such key performance indicators. The terms of the Annual Bonus developed by the Committee shall
govern any Annual Bonus that may be paid. Any Annual Bonus shall be paid in all events within two and one-half months after the end of the year in which such Annual Bonus becomes earned, provided that
no Annual Bonus shall be considered earned until the Board makes all necessary determinations with respect to the Annual Bonus. 
 5. STOCK OPTIONS;
RESTRICTED STOCK UNITS. 
 (a) STOCK OPTIONS. On the Effective Date, Executive shall be granted an Option (as defined in the Cue
Biopharma, Inc. 2016 Omnibus Incentive Plan (the “Plan”)) to purchase 65,000 shares of Cue’s Common Stock (the “Option”). The exercise price per share of the Option shall be equal to the Fair Market Value (as
defined in the Plan) of a share of Common Stock as of the Grant Date (as defined in the Plan). The Option shall have a term that expires ten years from the Grant Date. The Option shall be subject to the terms and conditions applicable to Options
granted under the Plan, as described in the Plan and the applicable Award Agreement (as defined in the Plan). The Option shall become exercisable over four years in equal, semi-annual installments beginning six months from the Grant Date, subject to
the terms and conditions of the Plan and the applicable Award Agreement. 
 (b) RESTRICTED STOCK UNITS. On the Effective Date,
Executive shall be granted 20,000 Restricted Stock Units (as defined in the Plan) (the “RSUs”). The RSUs shall be subject to the terms and conditions applicable to RSUs granted under the Plan, as described in the Plan and the
applicable Award Agreement. The RSUs shall vest as follows: One third of the RSUs shall vest on the applicable Grant Date (as defined in the Plan) and the balance shall become exercisable in two equal annual installments on the first and second
anniversaries of the applicable Grant Date, subject to the terms and conditions of the Plan and the applicable Award Agreement. The Award Agreement for the RSUs shall provide that Executive shall have the right to elect to meet any tax withholding
requirement by having withheld shares with a Fair Market Value (as defined in the Plan) equal to the amount of any taxes required to be withheld. 
 6.
EMPLOYEE BENEFITS. 
 (a) BENEFIT PLANS. During the Term, Executive shall be entitled to participate in any employee
benefit plans that Cue has adopted or may adopt, maintains or contributes to for the benefit of its employees generally, subject to satisfying the applicable eligibility requirements, except to the extent such plans are duplicative of the benefits
otherwise provided to Executive hereunder. Executive’s participation shall be subject to the terms of the applicable plan documents and generally applicable Cue policies. Notwithstanding the foregoing, Cue may modify or terminate any employee
benefit plan at any time. 
 (b) VACATIONS. During the Term, Executive shall be entitled to paid vacation time in accordance with
Cue’s policy applicable to senior management employees as in effect from time to time (the “Vacation Policy”). Since vacation time is not accrued, unused vacation time may not be carried forward from one calendar year to any
subsequent calendar year and shall not be paid out upon termination. 
 (c) BUSINESS EXPENSES. Upon presentation of reasonable
substantiation and documentation as Cue may require from time to time, Executive shall be reimbursed in accordance with Cue’s expense reimbursement policy, for all reasonable
out-of-pocket business expenses incurred and paid by Executive during the Term and in connection with the performance of Executive’s duties hereunder. 

  
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 7. TERMINATION. Executive’s employment under this Agreement shall terminate on the first
to occur of the following: 
 (a) DISABILITY. Upon 10 days’ prior written notice by Cue to Executive of termination due to
Disability while a Disability exists. “Disability” shall mean Executive is unable to perform each of the essential duties of Executive’s position by reason of a medically determinable physical or mental impairment that is
potentially permanent in character or that can be expected to last for a continuous period of not less than 12 months. 
 (b) DEATH.
Automatically upon the death of Executive. 
 (c) CAUSE. Immediately upon written notice by Cue to Executive of a termination for
Cause. “Cause” shall mean: 
 (i) the commission of any act by Executive constituting financial dishonesty against Cue or
its Affiliates (which act would be chargeable as a crime under applicable law); 
 (ii) Executive’s engaging in any other act of
dishonesty, fraud, intentional misrepresentation, moral turpitude, illegality or harassment that would (a) materially adversely affect the business or the reputation of Cue or any of its Affiliates with their respective current or prospective
customers, suppliers, lenders or other third parties with whom such entity does or might do business or (b) expose Cue or any of its Affiliates to a risk of civil or criminal legal damages, liabilities or penalties; 

(iii) the repeated failure by Executive to follow the reasonable and lawful directives of the Board or the CEO; 

(iv) any material misconduct, material and willful violation of Cue’s or its Affiliates’ written policies applicable to Executive, or
willful and deliberate breach of duty by Executive in connection with the business affairs of Cue or its Affiliates; or 
 (v)
Executive’s material breach of this Agreement. 
 Executive shall be given written notice detailing the specific Cause event and a period of 10 days
following Executive’s receipt of such notice to cure such event (if susceptible to cure) to the reasonable satisfaction of the Board. Notwithstanding anything to the contrary contained herein, Executive’s right to cure as set forth in the
preceding sentence shall not apply if there are habitual or repeated breaches by Executive. A termination for Cause shall be deemed to include a determination by the Board or its designee following Executive’s termination of service that
circumstances existing prior to such termination would have entitled Cue to have terminated Executive for Cause. All rights Executive has or may have under this Agreement shall be suspended automatically during the pendency of any investigation by
the Board or its designee, or during any negotiations between the Board or its designee and Executive, regarding any actual or alleged act or omission by Executive of the type described in this definition of Cause. For purposes of the foregoing, no
act, or failure to act or refusal to act, on the part of Executive shall be considered “willful” unless it is done, or omitted to be done, by Executive in bad faith or without reasonable belief that Executive’s action or omission was
in the best interests of Cue. 

  
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 (d) GOOD REASON. Upon written notice by Executive to Cue of a termination for Good
Reason. “Good Reason” shall mean the occurrence of any of the following events, without the consent of Executive, unless such events are fully corrected in all material respects by Cue within 30 days following written notification
by Executive to Cue of the occurrence of one of the events: 
 (i) a material diminution in Executive’s Base Salary or Annual Bonus
opportunity in a manner that is not applied proportionately to all other senior executive officers of the Company; 
 (ii) a material
diminution in Executive’s authority, responsibilities or duties set forth in Section 1 above, other than temporarily while physically or mentally incapacitated, as required by applicable law; 

(iii) a relocation of Executive’s primary work location by more than 50 miles from its then current location; 

(iv) a requirement that Executive report to anyone other than the CEO; or 

(v) a material breach by Cue of a material term of this Agreement. 

Executive shall provide Cue with a written notice detailing the specific circumstances alleged to constitute Good Reason within 30 days after the first
occurrence of such circumstances, and actually terminate employment within 30 days following the expiration of Cue’s 30-day cure period described above. Otherwise, any claim of such circumstances as Good
Reason shall be deemed irrevocably waived by Executive. 
 (e) WITHOUT CAUSE. Immediately upon written notice by Cue to Executive of
an involuntary termination without Cause (other than for death or Disability). 
 (f) VOLUNTARY TERMINATION. Upon 60 days’ prior
written notice by Executive to Cue of Executive’s voluntary termination of employment without Good Reason (which Cue may make effective earlier than any notice date). 

8. CONSEQUENCES OF TERMINATION. 
 (a)
DEATH/DISABILITY. In the event that Executive’s employment ends on account of Executive’s death or Disability, Executive or Executive’s estate, as the case may be, shall be entitled to the following (with the amounts due under
Sections 8(a)(i) through 8(a)(iv) below to be paid within 60 days following termination of employment, or such earlier date as may be required by applicable law): 

(i) any unpaid Base Salary through the date of termination; 

(ii) any Annual Bonus for the year prior to the year in which such termination occurs that is earned but unpaid prior to the date of
termination, paid when annual bonuses are paid to actively employed employees of Cue; 
 (iii) reimbursement for any unreimbursed business
expenses incurred through the date of termination; 
 (iv) any accrued but unused vacation time in accordance with Cue policy, which shall be
prorated for any year in which Executive’s employment with Cue is terminated; 

  
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 (v) all other payments, benefits or fringe benefits to which Executive shall be entitled
under the terms of any applicable compensation arrangement or benefit, equity or fringe benefit plan or program or grant (collectively, Sections 8(a)(i) through 8(a)(v) hereof shall be hereafter referred to as the “Accrued
Benefits”); and 
 (vi) an Annual Bonus for the year in which such termination occurs, determined and payable pursuant to the terms
and conditions of Section 4 above as though no such termination had occurred. 
 (b) TERMINATION FOR CAUSE OR
RESIGNATION WITHOUT GOOD REASON. If Executive’s employment is terminated (i) by Cue for Cause or (ii) by Executive without Good Reason, Cue shall pay to Executive the Accrued Benefits (other than the Annual Bonus described in
Section 8(a)(ii) above). 
 (c) TERMINATION WITHOUT CAUSE OR RESIGNATION FOR GOOD REASON. If
Executive’s employment by Cue is terminated by Cue other than for Cause or Executive’s death or Disability or by Executive for Good Reason, Cue shall pay or provide Executive the following: 

(i) the Accrued Benefits; 
 (ii)
subject to Executive’s compliance with Section 9 below and Executive’s continued compliance with Section 10 below, a lump sum cash severance payment in an amount equal to the sum of
(A) the target Annual Bonus for the year of termination, prorated based on the number of days that Executive is employed in such year through the date of termination, plus (B) nine months of Base Salary, with such lump sum payable on the
first payroll date of Cue that occurs more than 60 days after Executive’s termination or resignation (collectively, the “Severance Amount”); and 

(iii) subject to Executive’s compliance with Section 9 below and Executive’s continued compliance with
Section 10 below, if Executive elects COBRA coverage for health and/or dental insurance in a timely manner, the Company shall pay the monthly premium payments for such timely elected coverage (consistent with what was in
place at termination) when each premium is due until the earliest of the following: (i) nine months from termination; (ii) the date Executive obtains new employment that offers health and/or dental insurance that is reasonably comparable
to that offered by the Company; or (iii) the date COBRA continuation coverage would otherwise terminate in accordance with the provisions of COBRA. 

Payments and benefits provided under this Section 8(c) shall be in lieu of any termination or severance payments or benefits to
which Executive may be eligible under any of the plans, policies or programs of Cue or under the Worker Adjustment Retraining Notification Act of 1988, as amended, or any similar state statute or regulation. Should Executive die prior to the payment
of the Severance Amount, the Severance Amount shall be paid to the heirs or estate of Executive in accordance with the schedule set forth herein. 

(d) OTHER OBLIGATIONS. Upon any termination of Executive’s employment with Cue, Executive shall automatically be deemed to have
resigned from any and all other positions she then holds as an officer, director or fiduciary of Cue and any other entity that is part of the same consolidated group as Cue or in which capacity Executive serves at the direction of or as a result of
Executive’s position with Cue; and Executive shall, within 10 days of such termination, take all actions as may be necessary under applicable law or requested by Cue to effect any such resignations. 

  
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 (e) EXCLUSIVE REMEDY. The amounts payable to Executive following termination of
employment hereunder pursuant to Sections 8(a), (b) and (c) above shall be in full and complete satisfaction of Executive’s rights under this Agreement and any other claims that Executive may have in
respect of Executive’s employment with Cue or any of its Affiliates, and Executive acknowledges that such amounts are fair and reasonable, and are Executive’s sole and exclusive remedy, in lieu of all other remedies at law or in equity,
with respect to the termination of Executive’s employment hereunder or any breach of this Agreement. 
 (f) NO MITIGATION OR OFFSET.
Executive shall not be required to seek or accept other employment or otherwise to mitigate damages as a condition to the receipt of benefits pursuant to this Section 8, and amounts payable pursuant to this
Section 8 shall not be offset or reduced by any amounts received by Executive from other sources. 
 (g) NO
WAIVER OF ERISA-RELATED RIGHTS. Nothing in this Agreement shall be construed to be a waiver by Executive of any benefits accrued for or due to Executive under any employee benefit plan (as such term is defined in the Employee Retirement Income
Security Act of 1974, as amended) maintained by Cue, if any, except that Executive shall not be entitled to any severance benefits pursuant to any severance plan or program of Cue other than as provided herein. 

(h) CLAWBACK. All awards, amounts or benefits received or outstanding under this Agreement shall be subject to clawback, cancellation,
recoupment, rescission, payback, reduction or other similar action in accordance with the terms of any applicable law related to such actions, as may be in effect from time to time. Cue may take such actions as may be necessary to effectuate any
provision of applicable law relating to clawback, cancellation, recoupment, rescission, payback or reduction of compensation, whether adopted before or after the Effective Date, without further consideration or action. 

9. RELEASE. Any and all amounts payable and benefits or additional rights provided pursuant to this Agreement upon termination beyond the
Accrued Benefits shall only be payable if Executive delivers to Cue and does not revoke a general release of claims in favor of Cue in a form satisfactory to Cue. Such release shall be furnished to Executive within two business days after
Executive’s date of termination, and must be executed and delivered (and no longer subject to revocation, if applicable) within 30 days following termination (or such longer period to the extent required by law). 

10. RESTRICTIVE COVENANTS. 
 (a)
CONFIDENTIALITY. 
 (i) COMPANY INFORMATION. At all times during the Term and thereafter, Executive shall hold in strictest
confidence, and shall not use, except in connection with the performance of Executive’s duties, and shall not disclose to any person or entity, any Confidential Information of Cue. “Confidential Information” means any Cue
proprietary or confidential information, technical data, trade secrets or know-how, including research, product plans, products, services, customer lists and customers, markets, software, developments,
inventions, processes, formulas, technology, designs, drawings, engineering, marketing, distribution and sales methods and systems, sales and profit figures, finances and other business information disclosed to Executive by Cue, either directly or
indirectly in writing, orally or by drawings or inspection of documents or other tangible property. However, Confidential Information does not include any of the foregoing items which has become publicly known and made generally available through no
wrongful act of Executive. 
 (ii) EXECUTIVE-RESTRICTED INFORMATION. During the Term, Executive shall not improperly use or disclose
any proprietary or confidential information or trade secrets of any person or entity with whom Executive has an agreement or duty to keep such information or secrets confidential. 

  
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 (iii) THIRD PARTY INFORMATION. Executive recognizes that Cue has received and in the
future shall receive from third parties their confidential or proprietary information subject to a duty on Cue’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. At all times during the
Term and thereafter, Executive shall hold in strictest confidence, and shall not use, except in connection with the performance of Executive’s duties, and shall not disclose to any person or entity except in connection with the performance of
Executive’s duties and consistent with Cue’s agreement with such third party, such third party confidential or proprietary information, and shall not use it except as necessary in performing Executive’s duties, consistent with
Cue’s agreement with such third party. 
 (b) NONCOMPETITION. In consideration for the Option referenced above in
Section 5, Executive acknowledges that (i) Executive performs services of a unique nature for Cue that are irreplaceable, and that Executive’s performance of such services to a competing business shall result in
irreparable harm to Cue, (ii) Executive is a member of the management personnel of Cue, (iii) Executive has had and will continue to have access to Confidential Information and trade secrets which, if disclosed, would unfairly and
inappropriately assist in competition against Cue, (iv) in the course of Executive’s employment by a competitor, Executive would inevitably use or disclose such Confidential Information and trade secrets, (v) Cue has substantial
relationships with its customers and Executive has had and will continue to have access to these customers, (vi) Executive has received and will receive specialized experience and training from Cue and (vii) Executive has generated and
will continue to generate goodwill for Cue in the course of Executive’s employment. Accordingly, during Executive’s employment with Cue or its Affiliates and for a period of 12 months thereafter except in the case of
(i) Executive’s termination by the Company without Cause or (ii) Executive’s inclusion in a Company reduction in force or layoff, in which case this Section 10(b) shall not apply, Executive shall not, directly or
indirectly, own, manage, operate, control, be employed by or render services to (whether as an employee, consultant, independent contractor or otherwise, and whether or not for compensation, in each case in the capacity or any substantially similar
capacity that Executive rendered services to Cue or its Affiliates) any person or entity, in whatever form, that is substantially similar to or competes with the Business (as defined below) in any jurisdiction in which Executive performed services
or had a material presence or influence on behalf of the Company. For purposes of this Agreement, “Business” means the development of drug candidates utilizing Fc-fusion proteins that
incorporate peptide-HLA complexes along with different activating and/or inhibitory signals to target antigen-specific T cells. Notwithstanding the foregoing, nothing herein shall prohibit Executive from
(x) being a passive owner of not more than 1% of the equity shares of a publicly-traded corporation engaged in the Business or (y) becoming employed by or rendering services to (as an independent contractor, consultant or otherwise) an
entity that engages in the Business as long as Executive has no direct involvement in the business unit or division of such entity that engages in the Business and the revenues such entity receives from the Business represent in the aggregate less
than 10% of the revenue of such entity. 
 (c) NONSOLICITATION; NONINTERFERENCE. 

(i) During Executive’s employment with Cue and for a period of 24 months thereafter, Executive shall not, except in the furtherance of
Executive’s duties with Cue, directly or indirectly, individually or on behalf of any other person or entity, (i) solicit, aid or induce any customer of Cue or its Affiliates with whom Executive had meaningful business contact to purchase
goods or services then sold by Cue or its Affiliates from another person or entity or assist or aid any other person or entity with whom Executive had meaningful business contact in identifying or soliciting any such customer, or
(ii) interfere, or aid or induce any other person or entity with whom Executive had meaningful business contact in interfering, with the relationship between Cue or its Affiliates and any of their respective vendors, customers, joint venturers,
licensees or licensors. 

  
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 (ii) During Executive’s employment with Cue and for a period of 24 months thereafter,
Executive shall not, except in the furtherance of Executive’s duties with Cue, directly or indirectly, individually or on behalf of any other person or entity, solicit, aid or induce any employee, consultant, representative or agent of Cue or
its Affiliates (or any employee, consultant, representative or agent who has left the employment or retention of Cue or its Affiliates less than one year prior to the date that Executive solicits, aids or induces such person or entity (a
“Covered Person”)) to any other person or entity unaffiliated with Cue or hire or retain any such employee, consultant, representative or agent or any Covered Person, or take any action to materially assist or aid any other person
or entity in identifying, hiring or soliciting any such employee, consultant, representative or agent or any Covered Person. 
 (d)
NONDISPARAGEMENT. During the Term and for a period of 24 months thereafter, Executive shall not make negative comments or otherwise disparage Cue or any company or other trade or business that “controls,” is “controlled
by” or is “under common control with,” Cue within the meaning of Rule 405 of Regulation C under the Securities Act, including any “subsidiary corporation” of Cue within the meaning of Section 424(f) of the Internal
Revenue Code of 1986 (“Affiliates”) or any of their officers, directors, managers, employees, consultants, equityholders, agents or products. The foregoing shall not be violated by truthful statements (i) in response to legal
process, required governmental testimony or filings or administrative or arbitral proceedings (including depositions in connection with such proceedings) or (ii) made in the course of Executive discharging Executive’s duties for Cue. 

(e) COOPERATION. Upon the receipt of reasonable notice from Cue, while employed by Cue and for a reasonable period of time thereafter,
Executive shall respond and provide information with regard to matters in which Executive has knowledge as a result of Executive’s employment with Cue, and shall provide reasonable assistance to Cue, its Affiliates and their respective
representatives in defense of any claims that may be made against Cue or its Affiliates, and shall assist Cue and its Affiliates in the prosecution of any claims that may be made by Cue or its Affiliates, to the extent that such claims may relate to
the period of Executive’s employment with Cue (collectively, the “Claims”). Executive shall promptly inform Cue if Executive becomes aware of any lawsuits involving Claims that may be filed or threatened against Cue or its
Affiliates. Executive also shall promptly inform Cue (to the extent that Executive is legally permitted to do so) if Executive is asked to assist in any investigation of Cue or its Affiliates (or their actions) or another party attempts to obtain
information or documents from Executive (other than in connection with any litigation or other proceeding in which Executive is a party-in-opposition) with respect to
matters Executive believes in good faith to relate to any investigation of Cue or its Affiliates, in each case, regardless of whether a lawsuit or other proceeding has then been filed against Cue or its Affiliates with respect to such investigation,
and shall not do so unless legally required. During the pendency of any litigation or other proceeding involving Claims, Executive shall not communicate with anyone (other than Executive’s attorneys and tax and/or financial advisors and except
to the extent that Executive determines in good faith is necessary in connection with the performance of Executive’s duties hereunder) with respect to the facts or subject matter of any pending or potential litigation or regulatory or
administrative proceeding involving Cue or any of its Affiliates without getting the prior written consent of Cue. Upon presentation of appropriate documentation, Cue shall pay or reimburse Executive for all reasonable
out-of-pocket travel, duplicating or telephonic expenses incurred by Executive in accordance with Cue’s applicable policies in complying with this
Section 10(e), and Executive shall be compensated by Cue at a reasonable hourly rate for assistance given after the end of the Term. 

  
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 (f) OWNERSHIP OF INFORMATION, IDEAS, CONCEPTS, IMPROVEMENTS, DISCOVERIES AND INVENTIONS,
AND ALL ORIGINAL WORKS OF AUTHORSHIP. 
 (i) As between the Parties, all information, ideas, concepts, improvements, discoveries and
inventions, whether patentable or not, which are conceived, made, developed or acquired by Executive or which are disclosed or made known to Executive, individually or in conjunction with others, during the Term and which relate to Cue’s
business, products or services (including all such information relating to corporate opportunities, research, financial and sales data, pricing and trading terms, evaluations, opinions, interpretations, acquisition prospects, the identity of clients
or customers or their requirements, the identity of key contacts within the client or customers’ organizations or within the organization of acquisition prospects, or marketing and merchandising techniques, prospective names and marks) are and
shall be the sole and exclusive property of Cue. Moreover, all drawings, memoranda, notes, records, files, correspondence, manuals, models, specifications, computer programs, maps and all other writings or materials of any type embodying any of such
information, ideas, concepts, improvements, discoveries and inventions are and shall be the sole and exclusive property of Cue. 
 (ii) In
particular, Executive hereby specifically assigns and transfers to Cue all of Executive’s worldwide right, title and interest in and to all such information, ideas, concepts, improvements, discoveries or inventions, and any United States or
foreign applications for patents, inventor’s certificates or other industrial rights that may be filed thereon, and applications for registration of such names and marks. During the Term and thereafter, Executive shall assist Cue and its
nominee at all times in the protection of such information, ideas, concepts, improvements, discoveries or inventions, both in the United States and all foreign countries, including the execution of all lawful oaths and all assignment documents
requested by Cue or its nominee in connection with the preparation, prosecution, issuance or enforcement of any applications for United States or foreign letters patent, and any application for the registration of such names and marks. 

(iii) Moreover, if during the Term, Executive creates any original work of authorship fixed in any tangible medium of expression which is the
subject matter of copyright (such as reports, videotapes, written presentations, computer programs, drawings, maps, architectural renditions, models, manuals, brochures or the like) relating to Cue’s business, products or services, whether such
work is created solely by Executive or jointly with others, Cue shall be deemed the author of such work if the work is prepared by Executive in the scope of Executive’s employment; or, if the work is not prepared by Executive within the scope
of Executive’s employment but is specially ordered by Cue as a contribution to a collective work, as a part of any written or audiovisual work, as a translation, as a supplementary work, as a compilation or as an instructional text, then the
work shall be considered to be work made for hire and Cue shall be the author of the work. In the event such work is neither prepared by Executive within the scope of Executive’s employment or is not a work specially ordered and deemed to be a
work made for hire, then Executive shall assign, and by these presents, does assign, to Cue all of Executive’s worldwide right, title and interest in and to such work and all rights of copyright therein. Both during the Term and thereafter,
Executive shall assist Cue and its nominee, at any time, in the protection of Cue’s worldwide right, title and interest in and to the work and all rights of copyright therein, including the execution of all formal assignment documents requested
by Cue or its nominee and the execution of all lawful oaths and applications for registration of copyright in the United States and foreign countries; provided, however, that Executive shall be compensated by Cue at a reasonable hourly
rate for assistance given after the end of the Term. 
 (iv) Notwithstanding the foregoing provisions of this
Section 10(f), Cue hereby notifies Executive that the provisions of this Section 10(f) shall not apply to any inventions for which no equipment, supplies, facility or trade secret information of
Cue was used and which were developed entirely on Executive’s own time, unless (A) the invention relates (1) to the business of Cue, or (2) to actual or demonstrably anticipated research or development of Cue, or (B) the
invention results from any work performed by Executive for Cue. 

  
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 (g) RETURN OF COMPANY PROPERTY. On the date of Executive’s termination of
employment with Cue for any reason (or at any time prior thereto at Cue’s request), Executive shall return all property belonging to Cue or its Affiliates (including any Cue or Affiliate-provided laptops, computers, cell phones, wireless
electronic mail devices or other equipment, or documents or property belonging to Cue or an Affiliate). 
 (h) EFFECT OF EXECUTIVE
BECOMING A BAD LEAVER. Notwithstanding any provision of this Agreement to the contrary, if (i) Executive breaches any of the covenants set forth in this Agreement at any time during the period commencing on the Effective Date and ending 24
months after Executive’s termination of employment with Cue for any reason and (ii) Executive fails to cure such breach within 10 days of the effective date of written notice of such breach given by Cue, then Executive shall be deemed a
“Bad Leaver.” If Executive is or becomes a Bad Leaver, then (i) any severance being paid to Executive pursuant to this Agreement or otherwise shall immediately cease upon commencement of such action and (ii) Executive
shall be liable to repay to Cue any severance previously paid to Executive by Cue, less $100 to serve as consideration for the release described in Section 9 above. 

(i) TOLLING. If Executive violates any of the terms of the restrictive covenant obligations articulated herein, the obligation at issue
shall run from the first date on which Executive ceases to be in violation of such obligation. 
 11. EQUITABLE RELIEF AND OTHER REMEDIES.
Executive acknowledges that Cue’s remedies at law for a breach or threatened breach of any of the provisions of Section 10 above would be inadequate and in the event of such a breach or threatened breach, in
addition to any remedies at law, Cue, without posting any bond, shall be entitled to seek to obtain equitable relief in the form of specific performance, a temporary restraining order, a temporary or permanent injunction or any other equitable
remedy that may then be available, without the necessity of showing actual monetary damages or the posting of a bond or other security. 
 12. NO
ASSIGNMENTS. This Agreement is personal to each of the Parties. Except as provided in this Section 12, neither Party may assign or delegate any rights or obligations hereunder without first obtaining the written consent
of the other Party. Cue may assign this Agreement to any of its Affiliates or to any successor to all or substantially all of the business and/or assets of Cue, provided that Cue shall require such Affiliate or successor to expressly assume
and agree to perform this Agreement in the same manner and to the same extent that Cue would be required to perform it if no such succession had taken place. As used in this Agreement, “Cue” shall mean Cue and any Affiliate or successor to
its business and/or assets that assumes and agrees to perform the duties and obligations of Cue under this Agreement by operation of law or otherwise. 

13. NOTICE. Any notice that either Party may be required or permitted to give to the other shall be in writing and may be delivered personally,
by electronic mail or via a postal service, postage prepaid, to such electronic mail or postal address and directed to such person as Cue may notify Executive from time to time; and to Executive at Executive’s electronic mail or postal address
as shown on the records of Cue from time to time, or at such other electronic mail or postal address as Executive, by notice to Cue, may designate in writing from time to time. 

  
 10 

 14. SECTION HEADINGS; INCONSISTENCY. The section headings used in this Agreement are included
solely for convenience and shall not affect, or be used in connection with, the interpretation of this Agreement. In the event of any inconsistency between the terms of this Agreement and any form, award, plan or policy of Cue, the terms of this
Agreement shall govern and control. 
 15. SEVERABILITY. Whenever possible, each provision of this Agreement shall be interpreted in such
manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or
unenforceability shall not affect any other provision of this Agreement or any action in any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction. 

16. COUNTERPARTS. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which
together shall constitute one and the same instrument. 
 17. APPLICABLE LAW; CHOICE OF VENUE AND CONSENT TO JURISDICTION; SERVICE OF PROCESS; WAIVER OF
JURY TRIAL. 
 (a) All questions concerning the construction, validity and interpretation of this Agreement and the performance of the
obligations imposed by this Agreement shall be governed by the internal laws of the State of Delaware applicable to agreements made and wholly to be performed in such state without regard to conflicts of law provisions of any jurisdiction. 

(b) For purposes of resolving any dispute that arises directly or indirectly from the relationship of the Parties evidenced by this Agreement,
the Parties hereby submit to and consent to the exclusive jurisdiction of the Commonwealth of Massachusetts and further agree that any related litigation shall be conducted solely in the courts of Middlesex County, Massachusetts or the federal
courts for the United States for the District of Massachusetts, where this Agreement is made and/or to be performed, and no other courts. 

(c) Each Party may be served with process in any manner permitted under State of Delaware law, or by United States registered or certified
mail, return receipt requested. 
 (d) BY EXECUTION OF THIS AGREEMENT, THE PARTIES ARE WAIVING ANY RIGHT TO TRIAL BY JURY IN CONNECTION WITH
ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED ON THIS AGREEMENT. 
 18. MISCELLANEOUS. No provision of this Agreement may be
modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by Executive and such officer or director as may be designated by Cue. No waiver by either Party at any time of any breach by the other
Party of, or compliance with, any condition or provision of this Agreement to be performed by such other Party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. This Agreement
together with all exhibits hereto sets forth the entire agreement of the Parties in respect of the subject matter contained herein and supersedes any and all prior agreements or understandings between Executive and Cue or its Affiliates with respect
to the subject matter hereof. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof, have been made by either Party that are not expressly set forth in this Agreement. 

19. REPRESENTATIONS. Executive represents and warrants to Cue that (a) Executive has the legal right to enter into this Agreement and to
perform all of the obligations on Executive’s part to be performed hereunder in accordance with its terms, and (b) Executive is not a party to any agreement or understanding, written or oral, and is not subject to any restriction, which,
in either case, could prevent Executive from entering into this Agreement or performing all of Executive’s duties and obligations hereunder. 

  
 11 

 20. TAX MATTERS. 

(a) WITHHOLDING. Any and all amounts payable under this Agreement or otherwise shall be subject to, and Cue may withhold from such
amounts, any federal, state, local or other taxes as may be required to be withheld pursuant to any applicable law or regulation. 
 (b)
SECTION 409A COMPLIANCE. 
 (i) The intent of the Parties is that payments and benefits under this Agreement be exempt from (to the
extent possible) Section 409A (“Section 409A”) of the Internal Revenue Code of 1986 and the regulations and guidance promulgated thereunder, as amended (collectively, the “Code”) and,
accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith. To the extent that any provision hereof is modified in order to comply with Section 409A, such modification shall be made in good
faith and shall, to the maximum extent reasonably possible, maintain the original intent and economic benefit to the Parties of the applicable provision without violating the provisions of Section 409A. In no event shall Cue be liable for any
additional tax, interest or penalty that may be imposed on Executive by Section 409A or damages for failing to comply with Section 409A. 

(ii) A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment
of any amounts or benefits that constitute “nonqualified deferred compensation” under Section 409A upon or following a termination of employment unless such termination is also a “separation from service” within the meaning
of Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.” Notwithstanding anything to
the contrary in this Agreement, if Executive is deemed on the date of termination to be a “specified employee” under Section 409A, then with regard to any payment or the provision of any benefit that is considered “nonqualified
deferred compensation” under Section 409A payable on account of a “separation from service,” such payment or benefit shall not be made or provided until the earlier of (A) the expiration of the
six-month period measured from the date of such “separation from service” of Executive, and (B) the date of Executive’s death, to the extent required under Section 409A. Upon the
expiration of the foregoing delay period, all payments and benefits delayed pursuant to this Section 20(b)(ii) (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay)
shall be paid or reimbursed to Executive in a lump sum on the first business day following the six-month period, and any remaining payments and benefits due under this Agreement shall be paid or provided in
accordance with the normal payment dates specified for them herein. 
 (iii) To the extent that reimbursements or other in-kind benefits under this Agreement constitute “nonqualified deferred compensation” for purposes of Section 409A, (A) all expenses or other reimbursements hereunder shall be made on or prior to
the last day of the taxable year following the taxable year in which such expenses were incurred by Executive, (B) any right to reimbursement or in-kind benefits shall not be subject to liquidation or
exchange for another benefit and (C) no such reimbursement, expenses eligible for reimbursement or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible for
reimbursement, or in-kind benefits to be provided, in any other taxable year. 

  
 12 

 (iv) For purposes of Section 409A, Executive’s right to receive any installment
payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments. Whenever a payment under this Agreement specifies a payment period with reference to a number of days, the actual date of payment
within the specified period shall be at the sole discretion of the Board. 
 (v) Notwithstanding any other provision of this Agreement to the
contrary, in no event shall any payment under this Agreement that constitutes “nonqualified deferred compensation” for purposes of Section 409A be subject to offset by any other amount unless otherwise permitted by Section 409A.

 (c) MODIFICATION OF PAYMENTS. In the event it shall be determined that any payment, right or distribution by Cue or any other
person or entity to or for the benefit of Executive pursuant to the terms of this Agreement or otherwise, in connection with, or arising out of, Executive’s employment with Cue or a change in ownership or effective control of Cue or a
substantial portion of its assets (a “Payment”) is a “parachute payment” within the meaning of Code Section 280G on account of the aggregate value of the Payments due to Executive being equal to or greater than three
times the “base amount,” as defined in Code Section 280G (the “Parachute Threshold”), so that Executive would be subject to the excise tax imposed by Code Section 4999 (the “Excise Tax”) and the
net after-tax benefit that Executive would receive by reducing the Payments to the Parachute Threshold is greater than the net after-tax benefit Executive would receive
if the full amount of the Payments were paid to Executive, then the Payments payable to Executive shall be reduced (but not below zero) so that the Payments due to Executive do not exceed the amount of the Parachute Threshold, reducing first any
Payments under Section 8 above. 
 BY SIGNING THIS AGREEMENT BELOW, EXECUTIVE ACKNOWLEDGES THAT EXECUTIVE:

  

	 	(1)	 HAS READ AND UNDERSTOOD THE ENTIRE AGREEMENT; 

 

	 	(2)	 HAS HAD THE OPPORTUNITY TO ASK QUESTIONS AND CONSULT COUNSEL OR OTHER ADVISORS ABOUT THE AGREEMENT’S
TERMS; AND 

  

	 	(3)	 AGREES TO BE BOUND BY THE AGREEMENT. 

IN WITNESS WHEREOF, Cue has caused this Agreement to be executed in its name and on its behalf, and Executive acknowledges
understanding and acceptance of, and agrees to, the terms of this Agreement, all as of the Effective Date. 
  

					
	CUE BIOPHARMA, INC.	  	                    	  	KERRI-ANN MILLAR
			
	 /s/ Daniel R. Passeri
	  		  	 /s/ Kerri-Ann Millar

	Print Name: Daniel R. Passeri	  		  	
	Title: Chief Executive Officer	  		  	

  
 13Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT
(this “Agreement”) is made and entered into as of August 20, 2020 (“Effective Date”), by
and between AudioEye, Inc. (the “Company”), and David Moradi, a natural person (“Executive”).

 

W I T N E S E T H:

 

The Company and Executive
hereby agree as follows:

 

1.                 
Employment and Duties. (a) The Company agrees to employ Executive and Executive agrees to serve as Interim Chief
Executive Officer of the Company (“ICEO”) and as Chief Strategy Officer of the Company (“CSO”).
Executive shall report to the Board of Directors of the Company (the “Board”). The duties and responsibilities
of Executive shall include the duties and responsibilities typical of a Chief Executive Officer and Chief Strategy Officer and
such other duties and responsibilities as the Board may from time to time reasonably assign to Executive. The Company and Executive
acknowledge that by agreeing to be employed as herein set forth, Executive is not resigning from his position as a member of the
Board.

 

(b) The Board understands that Executive
has significant other responsibilities and is unable to devote all of his business time, attention, and energies to the business
of the Company and, accordingly, Executive shall devote such time as he reasonably believes to be necessary to discharge his fiduciary
duties to the Company.

 

2.                 
Term. This Agreement and Executive’s employment shall commence on the Effective Date and shall continue for
a period of five (5) years unless earlier terminated pursuant to Section 7. For the avoidance of doubt, the provisions of Sections
9, 10, 12 and 13 shall survive the expiration of the term of employment.

 

3.                 
Place of Employment. Executive’s job site shall be in the sole discretion of the Executive.

 

4.                 
Salary.
The Company agrees to pay Executive a salary (the “Salary”) during his employment at an annual rate of $1 per
year payable in arrears. The Salary shall be paid on an annual basis.

 

    	 	1	 

     

    

 

5.       Performance-Based
Equity Award. On or as soon as practicable following the Effective Date, the Board (or its Compensation Committee) will grant
Executive a performance share award (the “PSA”) under the Company’s 2019 Equity Incentive Plan (as amended,
the “Plan”). The PSA will cover 260,000 shares of the Company’s common stock and will vest based on the
achievement of performance goals as follows:

 

	Performance Condition	 	PSA Vesting if

 Performance Condition

 Deemed Achieved	 
	 	 	 	 
	Monthly Recurring Revenue (as defined below) greater than or equal to $3.0 million for two consecutive calendar months 
	 	 	55,000	 
	Monthly Recurring Revenue greater than or equal to $5.0 million for two consecutive calendar months 
	 	 	50,000	 
	Volume Weight Average Price “VWAP” greater than or equal to $25 on The Nasdaq Stock Market LLC over 20 Consecutive Trading Days 
	 	 	55,000	 
	Volume Weight Average Price “VWAP” greater than or equal to $50 on The Nasdaq Stock Market LLC over 20 Consecutive Trading Days 
	 	 	50,000	 
	Volume Weight Average Price “VWAP” greater than or equal to $100 on The Nasdaq Stock Market LLC over 20 Consecutive Trading Days 
	 	 	50,000	 

 

    	 	2	 

     

    

 

The PSA will be subject to the Plan and a form of award
agreement thereunder, which will provide that: (i) vested portions of the PSA will be settled shortly following vesting (i.e.,
there will be no deferral of the receipt of shares); (ii) tax withholdings required in connection with the vesting and settlement
of shares under the PSA shall be satisfied by a share withholding procedure pursuant to which the Company will withhold, immediately
as shares are issued under the PSA, a portion of those shares with a fair market value (measured as of the issuance date) equal
to the statutory minimum withholding amount; (iii) except as set forth below, if a Performance Condition set forth above is not
achieved on or prior to the 5-year anniversary of the Grant Date, the portion of the PSA corresponding to such condition shall
not vest and shall be forfeited by Executive; (iv) except as set forth below, in order for Executive to vest in a portion of the
PSA corresponding to a Performance Condition set forth above, Executive must be serving as ICEO or as CSO on the date on which
the condition is achieved; (v) except as set forth below, if Executive is not serving as ICEO or as CSO on the date on which a
Performance Condition is achieved, the portion of the PSA corresponding to such condition shall not vest and shall be forfeited
by Executive (but Executive shall not be required to be employed on the settlement date); (vi) all Performance Conditions are
independent and more than one Performance Condition can be satisfied at one time (e.g., if Monthly Recurring Revenue greater than
or equal to $5.0 million for two consecutive calendar months is achieved, 50,000 shares subject to the PSA will vest in addition
to the 55,000 shares subject to the PSA which will vest because Monthly Recurring Revenue greater than or equal to $3.0 million
for two consecutive calendar months will also have been achieved); (vii) “Monthly Recurring Revenue” will be determined
by the Board (or its Compensation Committee or the Chairperson of the Compensation Committee on behalf of such Committee) using
the methodology for calculating Monthly Recurring Revenues for purposes of the Company’s reporting on the Form 10-Q; and
(viii) the trading prices set forth in the table above will be equitably adjusted in the event of stock splits, dividends and
other similar events, as will be more fully set forth in the award agreement evidencing the PSA.

 

Notwithstanding anything to the contrary
in this Agreement, the PSA will accelerate vesting and become 100% vested if, on or prior to the 5th anniversary of the Grant Date,
Executive’s employment is terminated by the Company without Cause. For this purpose, “Cause” shall consist of
a termination due to the following as specified in the notice of termination (and in each case Executive fails to cure within thirty
(30) days of delivery of such notice of termination, except as to clauses (v) or (vi), which shall not be subject to cure) (i)
Executive’s failure, subject to the relaxed standard in Section 1(c), to substantially perform the fundamental duties and
responsibilities associated with the position(s) he holds for any reason, including Executive’s failure or refusal to carry
out reasonable instructions; (ii) Executive’s breach of any material written Company policy; (iii) Executive’s gross
misconduct in the performance of Executive’s duties for the Company; (iv) Executive’s material breach of the terms
of this Agreement; (v) Executive being convicted of, or pleading nolo contendere or equivalent to, any fraudulent or felony
criminal offense or any other criminal offense which reflects adversely on the Company or reflects conduct or character that the
Board reasonably concludes is inconsistent with continued employment; or (vi) any criminal conduct that is a “statutory disqualifying
event” (as defined under federal securities laws, rules and regulations). Prior to any termination for Cause, and subsequent
to any applicable thirty (30) day period of time within which Executive may be permitted to cure, Executive will be entitled to
appear (with counsel) before the full Board to present information regarding his views on the Cause event, and after such hearing,
there must be at least a majority vote of the full Board (other than Executive) to terminate him for Cause. After providing the
notice in foregoing sentence, the Board may suspend Executive with full pay and benefits until a final determination pursuant to
this paragraph has been made.

 

    	 	3	 

     

    

 

Notwithstanding anything to the contrary
in this Agreement, in the event of a Change in Control (as defined in the Plan), the PSA will be subject to the provisions of the
Plan relating to a Change in Control.

 

6.      The
obligations of the Company under the Agreement shall be binding upon any successor corporation or organization resulting from
the merger, consolidation or other reorganization of the Company, or upon any successor corporation or organization succeeding
to all or substantially all of the assets and business of the Company, with equitable adjustments as appropriate as determined
by the Board.

 

7.       Termination
of Employment; Severance Compensation. At any time, Executive may resign his position as ICEO while, if he so elects, retaining
his position employed as CSO. Executive may at any time resign as CSO; if Executive resigns as CSO, he must resign as ICEO. The
Board may terminate Executive from either or both positions at any time, provided that if such termination is solely from his position
as ICEO, he shall remain employed as CSO. Upon such termination of employment, the Company shall have no further obligations or
liability hereunder to Executive or his heirs, administrators or executors with respect to compensation and benefits accruing thereafter,
except for the obligation to pay Executive or Executive’s heirs, administrators or executors, as applicable: (i) any earned
but unpaid Salary accrued through the date of termination of employment, (ii) reimbursement of any and all reasonable business
expenses paid or incurred by Executive in connection with and related to the performance of his duties and responsibilities for
the Company during the period ending on the date of termination of employment, and (iii) any accrued but unused vacation through
the date of termination in accordance with Company policy. There is no severance compensation hereunder (except as set forth above
with respect to the acceleration of the PSA). To the extent all or any portion of the PSA becomes vested prior to or in connection
with Executive’s termination of employment, the Company shall honor its settlement obligations thereunder. Any termination
of Executive’s employment by the Company or by Executive (other than termination by reason of Executive’s death) shall
be communicated by written notice of termination to the other party of this Agreement.

 

8.       Deductions
and Withholdings. The Company shall deduct and withhold, from all payments made pursuant to this Agreement, including but not
limited to the Salary, all applicable taxes, including income tax, FICA and FUTA, and other deductions and withholdings required
by law.

 

    	 	4	 

     

    

 

9.       Clawback
Rights. All amounts paid to Executive by the Company under this Agreement (other than Executive’s Salary, accrued but
unused vacation, and reimbursement of expenses) (collectively, the “Clawback Benefits”) shall be subject to
the Company’s “Clawback Rights” policy as follows: during the period that Executive is employed by the
Company and for a period of three (3) years thereafter, if there occurs a restatement (a “Restatement”) of
any financial results from which any Clawback Benefits to Executive shall have been determined, including vesting due to the achievement
of stock price targets (such restatement resulting from material non-compliance of the Company with any financial reporting requirement
under the federal securities laws and shall not include a restatement of financial results resulting from subsequent changes in
accounting pronouncements or requirements which were not in effect on the date the financial statements were originally prepared),
then Executive agrees to immediately repay or surrender upon demand by the Company any Clawback Benefits which were determined
by reference to any Company financial results which were later restated, but only to the extent the Clawback Benefits amounts
paid exceed the Clawback Benefits amounts that would have been paid, based on the restatement of the Company’s financial
information. All Clawback Benefits amounts resulting from such Restatements shall be retroactively adjusted by the Compensation
Committee (or the Board, if there is no Compensation Committee) to take into account the restated results and if any excess portion
of the Clawback Benefits resulting from such restated results is not so repaid or surrendered by Executive within ninety (90)
days of the revised calculation being provided to Executive by the Company following a publicly announced restatement, the Company
shall have the right to take any and all action to effectuate such adjustment.

 

The Clawback Rights
shall terminate following a Change in Control (as defined in the Plan as in effect on the date of this Agreement), subject to applicable
law, rules, and regulations. The amount of Clawback Benefits to be repaid or surrendered to the Company shall be determined by
the Compensation Committee (or the Board, if there is no Compensation Committee) in its sole judgment in accordance with applicable
law, rules and regulations. All determinations by the Compensation Committee (or the Board, if there is no Compensation Committee)
with respect to the Clawback Rights shall be final and binding on the Company and Executive. The parties acknowledge it is their
intention that the foregoing Clawback Rights as relates to Restatements conform in all respects to the provisions of the Dodd-Frank
Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd Frank Act”) and requires recovery of all “incentive-based”
compensation, pursuant to the provisions of the Dodd Frank Act and any and all rules and regulations promulgated thereunder from
time to time in effect. Accordingly, the terms and provisions of this Agreement shall be deemed automatically amended from time
to time to assure compliance with the Dodd Frank Act and such rules and regulations, if any, as hereafter may be adopted and in
effect.

 

10.       Expenses.
Executive shall be entitled to prompt reimbursement by the Company for all reasonable ordinary and necessary travel, entertainment,
and other expenses incurred by Executive while employed (in accordance with the policies and procedures established by the Company
for its senior executive officers) in the performance of his duties and responsibilities under this Agreement; provided,
that Executive shall properly account for such expenses in accordance with Company policies and procedures. Executive shall be
entitled to prompt reimbursement by the Company for reasonable and documented legal fees and expenses incurred by Executive in
connection with this Agreement and the PSA award agreement contemplated hereby.

 

    	 	5	 

     

    

 

11.       Other
Benefits; Vacation. During the term of employment, Executive shall be eligible to participate in incentive, stock purchase,
savings, retirement (401(k)), and welfare benefit plans, including, without limitation, health, medical, dental, vision, life (including
accidental death and dismemberment) and disability insurance plans to the extent provided by the Company generally to its employees
(collectively, “Benefit Plans”), in substantially the same manner and at substantially the same levels as the
Company makes such opportunities available to the Company’s managerial or salaried executive employees, subject to the terms
and conditions, including eligibility provisions, of any such Benefit Plans, which may be amended or terminated from time to time.
During the term of employment, Executive shall be entitled to accrue, on a pro rata basis, twenty (20) paid vacation days per year,
which if not taken, will accrue and be carried forward into the next year. Vacation shall be taken at such times as are mutually
convenient to Executive and the Company and no more than twenty (20) consecutive days shall be taken at any one time without the
advance written approval of the Board. In addition, Executive shall be entitled to receive future awards under the Plan or any
other equity plan maintained by the Company at such times and on such terms as may be determined by the Board or the Compensation
Committee.

 

12.       Section
280G Gross-Up. Notwithstanding anything in this Agreement or any other plan, program, policy, agreement or arrangement to the
contrary, if any of the payments, rights, benefits, distributions, or entitlements provided or to be provided by the Company or
any of its affiliates to Executive or for the Executive’s benefit pursuant to the terms of this Agreement, the PSA award
agreement or otherwise (a “Covered Payment”) would constitute parachute payments (“Parachute Payments”)
within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”) and will be
subject to the excise tax imposed under Section 4999 of the Code (or any successor provision thereto) or any interest or penalties
with respect to such excise tax (collectively, the “Excise Tax”), then the Company shall pay to Executive, no
later than the time the Excise Tax is required to be paid by Executive or withheld by the Company, an additional amount (the “Gross-Up
Payment”) equal to the sum of the Excise Tax payable by Executive, plus the amount necessary to put Executive in the
same after-tax position (taking into account any and all applicable federal, state, local and foreign income, employment, excise
and any other applicable taxes (including the Excise Tax and any income and employment taxes imposed on the Gross-Up Payment”)
that he would have been in if Executive had not incurred any tax liability under Section 4999 of the Code. For purposes of determining
the amount of the Gross-Up Payment, unless Executive specifies that other rates apply, Executive shall be deemed to pay federal
income tax and employment taxes at the highest marginal rate of federal income and employment taxation in the calendar year in
which the Gross-Up Payment is to be made, and state and local income taxes at the highest marginal rate of taxation in the state
and locality of Executive’s residence on the date of change of control, net of the maximum reduction in federal income taxes
that may be obtained from the deduction of such state and local taxes. All determinations to be made under this Section 12 shall
be made in writing and in good faith by an independent accounting firm selected by the Company which is reasonably acceptable to
Executive (the “Accountants”), which shall provide detailed supporting calculations to the Company and Executive as
requested by the Company or Executive and any such determination shall be binding upon the Company and Executive. All fees and
expenses of the Accountants shall be borne by the Company.

 

    	 	6	 

     

    

 

13.       Section
409A.

 

No compensation under
this agreement is intended to constitute deferred compensation. The provisions of this Agreement are intended to comply with or
meet an exemption from Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and any regulations
and guidance promulgated thereunder (“Section 409A”) and shall be construed in a manner consistent with the
requirements for avoiding taxes or penalties under Section 409A. The Company and Executive agree to work together in good faith
to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid
imposition of any additional tax or income recognition prior to actual payment to Executive under Section 409A.

 

To the extent that
Executive will be reimbursed for costs and expenses or in-kind benefits, except as otherwise permitted by Section 409A, (a) the
right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit, (b) the amount of expenses
eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement,
or in-kind benefits to be provided, in any other taxable year; provided that the foregoing clause (b) shall not
be violated with regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Code solely because such
expenses are subject to a limit related to the period the arrangement is in effect and (c) such payments shall be made on or before
the last day of the taxable year following the taxable year in which the expense was incurred.

 

A termination of employment
shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or
benefits upon or following a termination of employment that constitute “nonqualified deferred compensation” (within
the meaning of Section 409A) unless such termination constitutes a “Separation from Service” within the meaning of
Section 409A and, for purposes of any such provision of this Agreement references to a “termination,” “termination
of employment” or like terms shall mean Separation from Service.

 

Each installment payable
hereunder shall constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b), including Treasury Regulation
Section 1.409A-2(b)(2)(iii). Each payment that is made within the terms of the “short-term deferral” rule set forth
in Treasury Regulation Section 1.409A-1(b)(4) is intended to meet the “short-term deferral” rule. Each other payment
is intended to be a payment upon an involuntary termination from service and payable pursuant to Treasury Regulation Section 1.409A-1(b)(9)(iii),
et. seq., to the maximum extent permitted by that regulation, with any amount that is not exempt from Code Section 409A being subject
to Code Section 409A.

 

    	 	7	 

     

    

 

Notwithstanding anything
to the contrary in this Agreement, if Executive is a “specified employee” within the meaning of Section 409A, any payment
otherwise due to Executive on or within the six (6) month period following Executive’s termination will accrue during such
six (6) month period and will become payable in one lump sum cash payment on the date six (6) months and one (1) day following
the date of Executive’s termination of employment, to the extent required to avoid any adverse tax consequences under Section
409A. Any remaining payment(s) will be payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding
anything herein to the contrary, if Executive dies following termination but prior to the six (6) month anniversary of Executive’s
termination date, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively
practicable after the date of Executive’s death and all other amounts will be payable in accordance with the payment schedule
applicable to each payment or benefit, to the extent and in a manner consistent with Section 409A.

 

14.       Miscellaneous.

 

(a) This Agreement
constitutes and embodies the full and complete understanding and agreement of the parties with respect to Executive’s employment
by the Company (it being understood that the Plan and PSA award agreement shall apply to the PSA), supersedes all prior understandings
and agreements, whether oral or written, between Executive and the Company, and shall not be amended, modified or changed except
by an instrument in writing executed by the party to be charged. The invalidity or partial invalidity of one or more provisions
of this Agreement shall not invalidate any other provision of this Agreement. No waiver by either party of any provision or condition
to be performed shall be deemed a waiver of similar or dissimilar provisions or conditions at the same time or any prior or subsequent
time.

 

(b)       Neither
Executive nor the Company may assign or delegate any of their rights or duties under this Agreement without the express written
consent of the other; provided, however, that the Company shall have the right to delegate its obligation
of payment of all sums due to Executive hereunder, provided that such delegation shall not relieve the Company
of any of its obligations hereunder.

 

(c)       This
Agreement shall inure to the benefit of, be binding upon and enforceable against, the parties hereto and their respective successors,
heirs, beneficiaries and permitted assigns.

 

(d)       The
headings contained in this Agreement are for convenience of reference only and shall not affect in any way the meaning or interpretation
of this Agreement.

 

    	 	8	 

     

    

 

(e)       All
notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing and shall be
deemed to have been duly given when personally delivered, sent by registered or certified mail, return receipt requested, postage
prepaid, or by reputable national overnight delivery service (e.g. Federal Express) for overnight delivery to the Company at its
principal executive office or to Executive at his address of record in the Company’s records, or to such other address as
either party may hereafter give the other party notice of in accordance with the provisions hereof. Notices shall be deemed given
on the sooner of the date actually received or the third business day after deposited in the mail or one business day after deposited
with an overnight delivery service for overnight delivery.

 

(f)       This
Agreement shall be governed by and construed in accordance with the internal laws of the State of Florida without reference to
principles of conflicts of laws and each of the parties hereto irrevocably consents to the exclusive jurisdiction and venue of
the federal and state courts located in the Miami-Dade County, Florida.

 

(g)       This
Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but which together
shall constitute one of the same instrument. The parties hereto have executed this Agreement as of the date set forth above. 

 

(h)       Executive
represents and warrants to the Company that he has the full power and authority to enter into this Agreement and to fully perform
his obligations hereunder and that the execution and delivery of this Agreement and the performance of all of his obligations under
this Agreement will not conflict with any agreement to which Executive is a party.

 

(i)       The
Company represents and warrants to Executive that (i) it has the full power and authority to enter into this Agreement and to perform
its obligations hereunder and (ii) the execution and delivery of this Agreement and the performance of its obligations hereunder
will not conflict with any agreement to which the Company is a party.

 

[SIGNATURE
PAGE TO FOLLOW]

 

    	 	9	 

     

    

 

IN WITNESS
WHEREOF, Executive and the Company have caused this Employment Agreement to be executed as of the date first above written.

 

AudioEye, Inc.

 

 

	By: 	/s/ Carr Bettis 	 	/s/ David Moradi
	 	 Carr Bettis 	 	David Moradi
	 	 Chairman of the Board and Executive Chairman

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