Document:

Exhibit 10.2

Aware, Inc.

 

PERFORMANCE SHARE AWARD AGREEMENT

 

This Agreement (“Agreement”)
is entered into as of September 19, 2019 by and between Aware, Inc. (the “Company”) and Robert A. Eckel (the
“Grantee”). This Agreement is and shall be subject in every respect to the provisions of the Company’s
2001 Nonqualified Stock Plan, as amended from time to time (the “Plan”), which is incorporated herein by reference
and made a part hereof. The Grantee acknowledges that this Agreement shall be subject to all the terms and provisions of the Plan
and agrees that (a) in the event of any conflict between the terms hereof and those of the Plan, the latter shall prevail, and
(b) all decisions under and interpretations of the Plan by the Board or the Committee shall be final, binding and conclusive upon
the Grantee and his heirs and legal representatives.

 

For valuable consideration, the receipt
of which is hereby acknowledged, the parties hereby agree as follows:

 

1.       Grant
of Shares. Upon the execution of this Agreement, the Company shall issue to the Grantee, in consideration of the Grantee’s
service to the Company, subject to the terms and conditions set forth in this Agreement, 20,000 shares of common stock, $0.01 par
value per share, of the Company. Such shares, together with any securities of the Company that may be issued in exchange for or
in respect of the shares, whether by way of stock split, stock dividend, combination of shares, reclassification, recapitalization,
reorganization or any other means, shall be referred to herein as the “Shares.”

 

2.       Forfeiture
of Unvested Shares. In the event that the Grantee ceases to serve as a director, an officer or an employee of the Company or
any subsidiary of the Company for any reason or no reason, with or without cause (“Termination”), all of the
Shares that have not become “Vested Shares” as of the date of Termination in accordance with the vesting schedule set
forth in Exhibit A hereto (any such shares, “Unvested Shares”) and all rights therein shall immediately be transferred
to the Company pursuant to Section 3 below, and as of the date of Termination the Grantee shall have no further rights with respect
to such Shares.

 

3.       Transfer
of Unvested Shares to the Company.

 

(a)       The
Grantee acknowledges and agrees that any certificate or other document evidencing any Shares shall be held by the Company until
such Shares become Vested Shares. Promptly after any Shares become Vested Shares, the Company shall issue to the Grantee a certificate
or other document evidencing such Vested Shares. The Grantee shall execute and deliver to the Company such number of stock assignments
as and when the Company shall request, duly endorsed in blank, in the form requested by the Company. Upon Termination, the Unvested
Shares shall be transferred to the Company, and the certificates or other documents evidencing the Unvested Shares shall be cancelled.

 

(b)       From
and after the date of Termination, the Company shall not pay any dividend to the Grantee on account of such Unvested Shares or
permit the Grantee to exercise any of the privileges or rights as a stockholder with respect to the Unvested Shares, but shall,
in so far as permitted by law, treat the Company as the owner of such Unvested Shares.

 

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(c)       No
amount shall be payable to the Grantee with respect to Unvested Shares transferred to the Company pursuant to this Section 3.

 

4.       Restrictions
on Transfer of Unvested Shares. The Grantee shall not sell, assign, transfer, pledge, hypothecate or otherwise dispose of,
voluntarily or involuntarily, by operation of law or otherwise (collectively “Transfer”) any Unvested Shares
or any interest therein, except for Transfers to the Company pursuant to Section 3.

 

5.       Effect
of Prohibited Transfer. The Company shall not be required (a) to transfer on its books any of the Shares which shall have
been sold or transferred in violation of any of the provisions set forth in this Agreement, or (b) to treat as owner of such
Shares or to pay dividends to any transferee to whom any such Shares shall have been so sold or transferred.

 

6.       Restrictive
Legend. All certificates representing Shares shall bear a legend which refers to the restrictions imposed by this
Agreement and the Plan and any applicable state or federal securities laws or regulations, and which legend is otherwise in
such form as the Company may deem appropriate.

 

7.       Adjustments
for Recapitalizations and Other Transactions. The Shares issued pursuant to this Agreement shall be subject to adjustment upon
recapitalizations or other transactions pursuant to the provisions of Section 3 of the Plan.

 

8.       Taxes.
The Grantee understands and agrees that he will be fully liable for any federal, state or local taxes of any kind owed by him with
regard to issuance of the Shares, whether owed at the time of transfer pursuant to the Grantee having made an election under Section
83(b) of the Internal Revenue Code of 1986, as amended (an “83(b) Election”), or at the time that the Shares
vest pursuant to the vesting schedule set forth at Exhibit A hereto.

 

The Grantee shall, no later than the date
as of which the value of any Shares first becomes includable in the gross income of the Grantee for Federal income tax purposes,
pay to the Company, or make arrangements satisfactory to the Company regarding payment of any Federal, state, local and/or payroll
taxes of any kind required by law to be withheld with respect to such income. The Company and its affiliates shall, to the extent
permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the Grantee. The Grantee
may elect to have such tax withholding obligation satisfied, in whole or in part, by (i) authorizing the Company to withhold from
the Shares a number of shares with an aggregate Fair Market Value (as defined in the Plan, and determined of the date the withholding
is effected) that would satisfy the withholding amount due with respect to such Shares or (ii) delivering to the Company a check
that would satisfy the withholding amount due.

 

9.       83(b)
Election. The Grantee understands that it shall be his decision whether to make an 83(b) Election with respect to the Shares,
and that if he chooses to make such election, it must be made within 30 days of the date of execution of this Agreement. The filing
of a Section 83(b) election is solely the Grantee’s responsibility, and if the Grantee chooses to make such an election with
respect to issuance of the Shares, he must provide a copy of such election to the Company.

 

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10.       Miscellaneous.

 

(a)       Except
as provided herein, this Agreement may not be amended or otherwise modified unless evidenced in writing and signed by the Company
and the Grantee.

 

(b)       All
notices under this Agreement shall be mailed or delivered by hand to the parties at their respective addresses set forth beneath
their names below or at such other address as may be designated in writing by either of the parties to one another.

 

(c)       This
Agreement shall be governed by and construed in accordance with the laws of The Commonwealth of Massachusetts, without regard to
its principles of conflicts of laws.

 

(d)       This
Agreement is executed in two (2) counterpart originals, one (1) to be retained by the Grantee and one (1) to be retained by the
Company.

 

*          *          *

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be executed as an agreement under seal as of the date first written above.

 

	Aware, Inc.	 
	40 Middlesex Turnpike	 
	Bedford, MA 01730	 
	 	 
	By:	 	 
	Title:	 
	 	 
	 	 
	GRANTEE	 
	 	 
	Name: Robert A. Eckel	 
	 	 
	Address:	 
	 	 

 

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Exhibit
A

 

 

Vesting Schedule

 

The Shares shall vest in full and become
“Vested Shares” if the Grantee is serving as a director, officer or employee of the Company or any subsidiary
of the Company on March 19, 2020.

 

In addition, the Company and the Grantee have entered into an
Employment Agreement dated as of September 17, 2019, which provides for accelerated vesting of some or all of the Shares under
certain circumstances as set forth in such Employment Agreement.

 

    -4-Exhibit 10.3

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement
(this “Agreement”) is entered into as of September 19, 2019 (the “Effective Date”), by and
between Aware, Inc., a Massachusetts corporation with its principal offices located at 40 Middlesex Turnpike, Bedford, Massachusetts
01730 (together with its successors and assigns, the "Company"), and Kevin T. Russell (the "Executive").

 

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

 

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

 

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

 

1.     
Employment.

 

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

 

1.2.       Position and Duties. During the Term, the Executive shall serve as the Chief Legal and Administrative Officer of the Company,
reporting to the Chief Executive Officer of the Company. The Executive shall devote his full working time and efforts to the
business and affairs of the Company. Notwithstanding the foregoing, the Executive may serve on other boards of directors,
with the approval of the Board of Directors of the Company (the “Board”), or engage in religious, charitable or
other community activities as long as such services and activities are disclosed to the Board and do not materially interfere
with the Executive’s performance of his duties to the Company as provided in this Agreement. 

 

2.     
Compensation and Related Matters.

 

2.1.
       Base Salary. During the Term, the Executive’s annual base salary will be $275,000. The Executive’s base salary
shall be reviewed annually by the Board or the Compensation Committee of the Board (the “Compensation
Committee”). The base salary in effect at any given time is referred to herein as “Base Salary.” The Base
Salary shall be payable in a manner that is consistent with the Company’s usual payroll practices for executive
officers.

 

2.2.        
Incentive Compensation. During the Term, the Executive shall be eligible to receive annual cash incentive compensation as
determined by the Board or the Compensation Committee from time to time. The Executive’s initial target annual incentive
compensation shall be up to $100,000 and tied to Company performance targets as determined by the Compensation Committee. To earn
incentive compensation, the Executive must be employed by the Company on the day such incentive compensation is paid.

 

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

 

2.4.       Equity. At the first meeting of the Compensation Committee after the Effective Date, the Company shall grant the Executive:
(a) a stock option for 15,000 shares of the Company’s Common Stock with an exercise price per share equal to the
greater of (i) the fair market value of a share of the Company’s common stock on the date of grant or (ii) $4.50 (such
exercise price referred to as the “Base Exercise Price”) and vesting over four years; (b) a stock option for
15,000 shares of the Company’s Common Stock with an exercise price per share equal to the Base Exercise Price plus
$1.00 and vesting over four years; (c) a stock option for 15,000 shares of the Company’s Common Stock with an exercise
price per share equal to the Base Exercise Price plus $2.00 and vesting over four years; and (d) a stock option for 15,000
shares of the Company’s Common Stock with an exercise price per share equal to the Base Exercise Price plus $3.00 and
vesting over four years. All stock options must be exercised within 60 days of the Executive ceasing to be an employee of, or
paid consultant to, the Company.

 

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

 

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

 

2.7.        Vacations.
During the Term, the Executive shall be entitled to paid vacation in accordance with the Company’s policies and
procedures, which at the outset shall be 25 days in addition to the Company’s paid holidays. The vacation time will
increase over time if the Company’s policies so provide. The Executive shall also be entitled to all paid holidays
given by the Company to its executive officers.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

4.     
Compensation Upon Termination.

 

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

 

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

 

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

 

		(vi)	notwithstanding anything to the contrary in any applicable option agreement or stock-based award agreement, all time-based
stock options and other time-based stock-based awards held by the Executive in which such stock option or other stock-based award
would have vested if the Executive had remained employed for an additional twelve (12) months following the Date of Termination
shall vest and become exercisable or nonforfeitable as of the Date of Termination;

 

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

 

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

 

5.     
Change of Control Payment.

 

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

 

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

 

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

 

		(ii)	notwithstanding anything to the contrary in any applicable option agreement or stock-based award agreement, all time-based
stock options and other time-based stock-based awards held by the Executive as of the occurrence of such Change of Control shall
immediately accelerate and become fully exercisable or nonforfeitable as of the Date of Termination;

 

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

 

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

 

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

 

6.     
Other Provisions.

 

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

 

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

 

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

 

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6.4.       Post-termination
Determination of Cause.

 

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

 

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

 

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

 

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

 

(a)  
if to the Company, to:

 

Aware, Inc.

40 Middlesex Turnpike

Bedford, Massachusetts 01730

Attention: Chair of the Compensation Committee

 

(b)  
if to the Executive, to:

 

Kevin T. Russell

 

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

 

    -8-

     

    

 

6.7.       Entire
Agreement. This Agreement and the Employee Agreement constitute the entire agreement and understanding between the Company and
the Executive, and supersede all prior negotiations, agreements, arrangements, and understandings, both written or oral, between
the Company and the Executive with respect to the subject matter of this Agreement. For the avoidance of doubt, this Agreement
supersedes and replaces the Change in Control Retention Agreement dated as of March 26, 2015 by and between the Company and the
Executive, and such Change in Control Retention Agreement shall be of no further force or effect. 

 

6.8.       Waiver
or Amendment.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    -9-

     

    

 

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

 

	EXECUTIVE	AWARE, INC.
	 	 
	 	 	By:	 	 
	Kevin T. Russell	 

 

    -10-

     

    

 

 

  

Exhibit A

NONCOMPETE AGREEMENT

  

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

 

RECITALS:

 

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

 

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

 

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

 

		10.	NON-COMPETITION COVENANTS.

 

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

 

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

 

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

 

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

 

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

 

    -11-

     

    

 

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

 

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

 

		11.	INJUNCTIVE AND OTHER EQUITABLE RELIEF.

 

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

 

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

 

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

 

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

 

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

 

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

 

    -12-

     

    

 

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

 

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

 

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

 

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

 

		18.	MISCELLANEOUS.

 

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

 

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

 

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

 

    -13-

     

    

 

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

 

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

 

    -14-

     

    

 

Exhibit B

 

GENERAL RELEASE AND WAIVER OF ALL
CLAIMS

(INCLUDING OLDER WORKER BENEFITS PROTECTION ACT CLAIMS)

 

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

 

Releasor represents and acknowledges the following:

 

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

 

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

 

    -15-

     

    

 

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

 

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

 

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

 

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

 

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

 

Signed:______________________________

 

Name (print): ___________________________

 

    -16-

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