Document:

Exhibit 10.4

 

	Dated	27th
    September 2022

 

KOALA
CAPITAL LIMITED

 

and

 

PROFESSIONAL
DIVERSITY NETWORK, INC.

 

 

 

GUARANTEE
AND INDEMNITY

 

 

 

    	 

    	 

    

 

THIS
DEED IS MADE ON THE 27th DAY OF September 2022

 

BETWEEN

 

	(1)	Koala
    Capital Limited, incorporated and registered in England and Wales with company number 07886666 whose registered office is at
    33 St. James’s Square, London, England, SW1Y 4JS as guarantor (the Guarantor); and
	 	 
	(2)	Professional
    Diversity Network, Inc., a public company listed in the NASDAQ market (trading symbol: IPDN) incorporated under the laws of the
    State of Delaware with company tax number 80-0900177 and having its principal executive office situated at 55 East Monroe Street,
    Suite 2120, Chicago, Illinois 60603, USA (the Buyer).

 

RECITALS

 

	(A)	Koala
    Crypto Limited is a private limited liability company registered under the laws of Malta with company registration number C 97348
    and having its registered office situated at Dragonara Business Centre, 5th Floor, Dragonara Road, St Julian’s STJ 3141, Malta
    (the Company).
	 	 
	(B)	The
    Company is licensed as a Virtual Financial Assets Service Provider by the MFSA in terms of the VFA Licence and the VFA Act. The Company
    has voluntarily suspended, and the MFSA has approved the voluntary suspension of, the VFA Licence.
	 	 
	(C)	The
    Buyer has agreed to purchase 9% of the total issued share capital of the Company from the Seller on the terms and conditions of the
    Share Purchase Agreement.

 

IT
IS HEREBY AGREED

 

	1.	Interpretation

 

	1.1	The
    definitions and rules of interpretation in this clause apply in this deed.

 

	 	Business
    Day:	 	a
    day other than a Saturday, Sunday or public holiday in England when banks in London are open for business.
	 	 	 	 
	 	MFSA:	 	means
    the Malta Financial Services Authority as established by the Malta Financial Services Authority Act, Chapter 330 of the Laws of Malta.
	 	 	 	 
	 	Secured
    Obligations:	 	(i)
    the Seller’s obligation to obtain the MFSA’s consent, ‘no objection’ or similar decision in writing for the
    suspension of the VFA Licence to be lifted (in such form and substance as is acceptable to the Buyer) such that, by no later than
    31 December 2022, the Company will be in a position to operate its business in the ordinary course; and

 

    	1

     

    

 

	 	 	 	(ii)the
    Seller’s obligations under the SHA to pay the amounts due to the Buyer in accordance with the SHA in the event that the put
    option contained in the SHA (the right of the Buyer to require the Seller to repurchase the Sale Shares from the Buyer) is exercised
    by the Buyer.
	 	 	 	 
	 	Seller:	 	Koala
    Malta Limited, a private limited liability company registered under the laws of Malta with company registration number C 94406 and
    having its registered office situated at Dragonara Business Centre, 5th Floor, Dragonara Road, St Julian’s STJ 3141, Malta.
	 	 	 	 
	 	SHA:	 	the
    shareholders’ agreement relating to the Company to be entered into between the Seller and the Buyer on completion of the Share
    Purchase Agreement.
	 	 	 	 
	 	Share
    Purchase Agreement:	 	the
    share purchase agreement made between the Buyer and the Seller and dated the same date as this deed, relating to the sale and purchase
    of 9% of the total issued share capital of the Company (Sale Shares).
	 	 	 	 
	 	VFA
    Act:	 	means
    the Virtual Financial Assets Act, Chapter 590 of the Laws of Malta.
	 	 	 	 
	 	VFA
    Licence:	 	means
    the ‘Class 4 Virtual Financial Assets Licence’ issued by the MFSA in favour of the Company on the 3rd December 2020.

 

	1.2	Clause
    headings shall not affect the interpretation of this deed.
	 	 
	1.3	References
    to clauses are to the clauses of this deed.
	 	 
	1.4	A
    reference to this deed or any other agreement or document referred to in this deed, is a reference to this deed or such other
    agreement or document, in each case as varied from time to time.
	 	 
	1.5	Unless
    the context otherwise requires, words in the singular shall include the plural and in the plural shall include the singular.
	 	 
	1.6	Unless
    the context otherwise requires, a reference to one gender shall include a reference to the other genders.
	 	 
	1.7	A
    person includes a natural person, corporate or unincorporated body (whether or not having separate legal personality).

 

    	2

     

    

 

	1.8	This
    deed shall be binding on and enure to the benefit of, the parties to this deed and their respective successors and permitted assigns,
    and references to a party shall include that party’s successors and permitted assigns.
	 	 
	1.9	A
    reference to a company shall include any company, corporation or other body corporate, wherever and however incorporated or
    established.
	 	 
	1.10	Unless
    otherwise expressly provided in this deed, a reference to writing or written excludes fax but not email.
	 	 
	1.11	Any
    words following the terms including, include, in particular, for example or any similar expression shall
    be interpreted as illustrative and shall not limit the sense of the words preceding those terms.
	 	 
	1.12	Any
    obligation on a person not to do something includes an obligation not to allow that thing to be done.

 

	2.	Guarantee
	 	 
	 	In
    consideration of the Buyer entering into the Share Purchase Agreement, the Guarantor guarantees to the Buyer the performance by the
    Seller of the Guaranteed Obligations.
	 	 
	3.	Indemnity
	 	 
	3.1	The
    Guarantor shall indemnify the Buyer against all liabilities, damages and losses suffered or incurred by the Buyer (including properly
    incurred legal fees), subject to the Buyer providing evidence of such liabilities, damages and losses to the Guarantor, arising out
    of or in connection with:

 

	 	3.1.1	any
    fact, matter, event or circumstance occurring in or which is referable to any period prior to the date of the Share Purchase Agreement;
    and/or
	 	 	 
	 	3.1.2	the
    existing dispute between the shareholders of the Guarantor; and or
	 	 	 
	 	3.1.3	any
    failure of the Seller to discharge any of the Secured Obligations.

 

	4.	Representations
    and warranties
	 	 
	4.1	The
    Guarantor makes the representations and warranties set out in this clause 4 to the Buyer on the date of this deed.
	 	 
	4.2	The
    Guarantor:

 

	 	4.2.1	is
    a duly incorporated limited liability company validly existing under the law of its jurisdiction of incorporation;
	 	 	 
	 	4.2.2	has
    the power to own its assets and carry on its business as it is being conducted; and
	 	 	 
	 	4.2.3	has
    the power to execute, deliver and perform its obligations under this deed and the transactions contemplated by it.

 

    	3

     

    

 

	4.3	The
    execution, delivery and performance of the obligations in, and transactions contemplated by, this deed does not and will not contravene
    the Guarantor’s constitutional documents, any agreement or instrument binding on the Guarantor or its assets, or any applicable
    law or regulation.
	 	 
	4.4	The
    Guarantor has taken all necessary action and obtained all required or desirable consents to enable it to execute, deliver and perform
    its obligations under this deed and to make this deed admissible in evidence in its jurisdiction of incorporation. Any such authorisations
    are in full force and effect.
	 	 
	4.5	The
    Guarantor’s obligations under this deed are, subject to any general principles of law limiting obligations, legal, valid, binding
    and enforceable.

 

	5.	Severance
	 	 
	 	If
    any provision or part-provision of this deed is or becomes invalid, illegal or unenforceable, it shall be deemed deleted, but that
    shall not affect the validity and enforceability of the rest of this deed.

 

	6.	Notices
	 	 
	6.1	A
    notice given to a party under or in connection with this deed:

 

	 	6.1.1	shall
    be in writing and in English;
	 	 	 
	 	6.1.2	shall
    be signed by or on behalf of the party giving it;
	 	 	 
	 	6.1.3	shall
    be sent to the party for the attention of the contact and to the address and email address specified in clause 6.2, or such other
    address or email address as that party may notify in accordance with clause 6.3; and
	 	 	 
	 	6.1.4	shall
    be sent by a method listed in clause 6.4.

 

	6.2	The
    addresses and email addresses for service of notices are:

 

	 	6.2.1	Guarantor

 

	 	 	(a)	address:
    33 St. James’s Square, London, England, SW1Y 4JS
	 	 	 	 
	 	 	(b)	for
    the attention of: Liu Yang
	 	 	 	 
	 	 	(c)	email
    address: liu.yang@koalaplatform.com

 

	 	6.2.2	Buyer

 

	 	 	(a)	address:
    55 East Monroe Street, Suite 2120, Chicago, Illinois 60603, USA
	 	 	 	 
	 	 	(b)	for
    the attention of: Adam He
	 	 	 	 
	 	 	(c)	email
    address: adamhe@ipdnusa.com

 

	6.3	A
    party may change its details for service given in clause 6.2 by giving notice to the other party. Any change notified pursuant to
    this clause shall take effect at 9.00 am on the later of:

 

	 	6.3.1	the
    date, if any, specified in the notice as the effective date for the change; or
	 	 	 
	 	6.3.2	the
    date five Business Days after deemed receipt of the notice.

 

    	4

     

    

 

	6.4	This
    clause sets out the delivery methods for sending a notice to a party under this deed and, for each delivery method, the date and
    time when the notice is deemed to have been received:

 

	 	6.4.1	if
    delivered by hand, at the time the notice is left at the address;
	 	 	 
	 	6.4.2	if
    sent by email, at the time of transmission;
	 	 	 
	 	6.4.3	if
    sent by pre-paid first class post or other next working day delivery service to an address in the UK, at 9.00 am on the second Business
    Day after posting; or
	 	 	 
	 	6.4.4	if
    sent by pre-paid airmail to an address outside the country from which it is sent, at 9.00 am on the fifth Business Day after posting.

 

	6.5	If
    deemed receipt under clause 6.4 would occur outside business hours in the place of receipt (which, in the case of service of a notice
    by email shall be deemed to be the same place as is specified for service of notices on the relevant party by hand or post), it shall
    be deferred until business hours resume. In this clause, business hours means 9.00 am to 5.00 pm Monday to Friday on a day
    that is not a public holiday in the place of receipt.
	 	 
	6.6	This
    clause 6 does not apply to the service of any proceedings or other documents in any legal action or, where applicable, any arbitration
    or other method of dispute resolution.

 

	7.	Entire
    agreement
	 	 
	 	This
    deed constitutes the entire agreement between the parties and supersedes and extinguishes all previous and contemporaneous agreements,
    promises, assurances, warranties, representations and understandings between them, whether written or oral, relating to its subject
    matter.

 

	8.	Variation,
    waiver and remedies

 

	8.1	No
    variation of this deed shall be effective unless it is in writing and signed as a deed by the parties (or their authorised representatives).
	 	 
	8.2	A
    waiver of any right or remedy is only effective if given in writing and shall not be deemed a waiver of any subsequent right or remedy.
	 	 
	8.3	A
    delay or failure to exercise, or the single or partial exercise of, any right or remedy shall not waive that or any other right or
    remedy, nor shall it prevent or restrict the further exercise of that or any other right or remedy.
	 	 
	8.4	Except
    as expressly provided in this deed, the rights and remedies provided under this deed are cumulative and are in addition to, and not
    exclusive of, any rights and remedies provided by law.

 

    	5

     

    

 

	9.	Assignment
    and other dealings

 

	9.1	Subject
    to clause 9.2, neither party shall assign, novate, transfer, mortgage, charge, subcontract, delegate, declare a trust over, or deal
    in any other manner with any or all of its rights and obligations under this deed
	 	 
	9.2	The
    Buyer may assign or transfer its rights under this deed to or in favour of any person to whom it assigns or transfers all or any
    of its rights under the Share Purchase Agreement.

 

	10.	Third
    party rights
	 	 
	 	This
    deed does not give rise to any rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this deed.
	 	 
	11.	Counterparts
	 	 
	11.1	This
    deed may be executed in any number of counterparts, each of which when executed and delivered shall constitute a duplicate original,
    but all the counterparts shall together constitute the one deed.
	 	 
	11.2	Transmission
    of an executed counterpart of this deed (but for the avoidance of doubt not just a signature page) by email (in PDF, JPEG or other
    agreed format) shall take effect as the transmission of a “wet-ink” counterpart of this deed.
	 	 
	11.3	No
    counterpart shall be effective until each party has delivered to the other at least one executed counterpart.
	 	 
	12.	Governing
    law and jurisdiction
	 	 
	12.1	This
    deed and any dispute or claim (including non-contractual disputes or claims) arising out of or in connection with it or its subject
    matter or formation shall be governed by and construed in accordance with the law of England and Wales.
	 	 
	12.2	Each
    party irrevocably agrees that the courts of England and Wales shall have exclusive jurisdiction to settle any dispute or claim (including
    non-contractual disputes or claims) arising out of or in connection with this deed or its subject matter or formation.

 

    	6

     

    

 

IN
WITNESS WHEREOF this document has been executed and delivered as a deed on the date first stated above.

 

	Executed
and delivered as a deed by Koala Capital Limited acting by its director, Alan Tak Wai Yau,	 	 
	 	 	 
	in
    the presence of:	 	 
	 	 	
	Claire
    Wang	 	
	

                                                         Witness Name
	 	Signature
	 	 	 
		 	 
	Witness
    Signature	 	 
	 	 	 
	40
    Gracechurch Street, London, England, EC3V
    0BT	 	 
	Witness
    Address Solicitor	 	 
	 	 	 
	 	 	 
	Witness
    Occupation	 	 

 

	Executed
and delivered as a deed by Professional Diversity Network, Inc. acting by its director, Adam He,	 	 
	 	 	 
	in
    the presence of:	 	 
	 	 	 
	 	 	 
	Witness
    Name	 	Signature
	 	 	 
	 	 	 
	Witness
    Signature	 	 
	 	 	 
	 	 	 
	Witness
    Address	 	 
	 	 	 
	 	 	 
	Witness
    Occupation	 	 

 

    	7Exhibit 4.1

 

INNOVATIVE
EYEWEAR, INC. EQUITY INCENTIVE PLAN

 

1.
Purpose; Eligibility.

 

1.1
General Purpose. The name of this plan is the
Innovative Eyewear, Inc. Equity Incentive Plan (the “Plan”). The purposes of the Plan are to (a) enable Innovative
Eyewear, Inc., a Florida corporation (the “Company”), and any Affiliate to attract and retain the types of Employees,
Consultants and Directors who will contribute to the Company’s long range success; (b) provide incentives that align the interests
of Employees, Consultants and Directors with those of the shareholders of the Company; and (c) promote the success of the Company’s
business.

 

1.2
Eligible Award Recipients. The persons eligible
to receive Awards are the Employees, Consultants and Directors of the Company and its Affiliates and such other individuals designated
by the Committee who are reasonably expected to become Employees, Consultants and Directors after the receipt of Awards.

 

1.3
Available Awards. Awards that may be granted
under the Plan include: (a) Incentive Stock Options, (b) Non-qualified Stock Options, (c) Stock Appreciation Rights, (d) Restricted Awards,
(e) Performance Share Awards, (f) Cash Awards and (g) Other Equity-Based Awards.

 

2.
Definitions.

 

“Affiliate”
means a corporation or other entity that, directly or through one or more intermediaries, controls, is controlled by or is under common
control with, the Company.

 

“Applicable
Laws” means the requirements related to or implicated by the administration of the Plan under applicable state corporate law,
United States federal and state securities laws, the Code, and the applicable laws of any foreign country or jurisdiction where Awards
are granted under the Plan.

 

“Award”
means any right granted under the Plan, including an Incentive Stock Option, a Non-qualified Stock Option, a Restricted Stock Award,
a Restricted Stock Unit Award or a Cash Award.

 

“Award
Agreement” means a written agreement, contract, certificate or other instrument or document evidencing the terms and conditions
of an individual Award granted under the Plan which may, in the discretion of the Company, be transmitted electronically to any Participant.
Each Award Agreement shall be subject to the terms and conditions of the Plan.

 

“Board”
means the Board of Directors of the Company, as constituted at any time.

 

     

     

    

 

“Cash
Award” means an Award denominated in cash that is granted under Section 11 of
the Plan.

 

“Cause”
means:

 

	 	With
                                            respect to any Employee or Consultant, unless the applicable Award Agreement states otherwise:

     

    (a)
    If the Employee or Consultant is a party to an employment or service agreement with the Company or its Affiliates and such agreement
    provides for a definition of Cause, the definition contained therein; or

     

    (b)
    If no such agreement exists, or if such agreement does not define Cause: (i) the commission of, or plea of guilty or no contest to,
    a felony or a crime involving moral turpitude or the commission of any other act involving willful malfeasance or material fiduciary
    breach with respect to the Company or an Affiliate; (ii) conduct that brings or is reasonably likely to bring the Company or an Affiliate
    negative publicity or into public disgrace, embarrassment, or disrepute; (iii) gross negligence or willful misconduct with respect
    to the Company or an Affiliate; (iv) material violation of state or federal securities laws; or (v) material violation of the Company’s
    written policies or codes of conduct, including written policies related to discrimination, harassment, performance of illegal or
    unethical activities, and ethical misconduct.

	 	 
	 	With
                                            respect to any Director, unless the applicable Award Agreement states otherwise, a determination
                                            by a majority of the disinterested Board members that the Director has engaged in any of
                                            the following:

     

    (a)
    malfeasance in office;

     

    (b)
    gross misconduct or neglect;

     

    (c)
    false or fraudulent misrepresentation inducing the director’s appointment;

     

    (d)
    willful conversion of corporate funds; or

     

    (e)
    repeated failure to participate in Board meetings on a regular basis despite having received proper notice of the meetings in advance.

     

    The
    Committee, in its absolute discretion, shall determine the effect of all matters and questions relating to whether a Participant
    has been discharged for Cause.

     

“Change
in Control”

 

	 	(a)
                                            The acquisition (whether by purchase, merger, consolidation, combination or other similar
                                            transaction) by any Person of beneficial ownership (within the meaning of Rule 13d-3 promulgated
                                            under the Exchange Act) of more than 50% (on a fully diluted basis) of the combined voting
                                            power of the then outstanding voting securities of the Company; provided, however,
                                            that for purposes of this Plan, the following acquisitions shall not constitute a Change
                                            in Control: (A) any acquisition by the Company or any Affiliate, (B) any acquisition by any
                                            employee benefit plan sponsored or maintained by the Company or any subsidiary, (C) in respect
                                            of an Award held by a particular Participant, any acquisition by the Participant or any group
                                            of persons including the Participant (or any entity controlled by the Participant or any
                                            group of persons including the Participant); or (D) the acquisition of securities pursuant
                                            to an offer made to the general public through a registration statement filed with the Securities
                                            and Exchange Commission; or

     

    (b)
    The sale, transfer or other disposition of all or substantially all of the assets of the Company to any Person other than an Affiliate.

 

    2

     

    

 

“Code”
means the Internal Revenue Code of 1986, as it may be amended from time to time. Any reference to a section of the Code shall be deemed
to include a reference to any regulations promulgated thereunder.

 

“Committee”
means a committee of one or more members of the Board appointed by the Board to administer the Plan in accordance with Section 3.4
and Section 3.5.

 

“Common
Stock” means the common stock, $0.00001 par value per share, of the Company, or such other securities of the Company as may
be designated by the Committee from time to time in substitution thereof.

 

“Company”
means Innovative Eyewear, Inc., a Florida corporation, and any successor thereto.

 

“Consultant”
means any individual who is engaged by the Company or any Affiliate to render consulting or advisory services, whether or not compensated
for such services.

 

“Continuous
Service” means that the Participant’s service with the Company or an Affiliate, whether as an Employee, Consultant or
Director, is not interrupted or terminated. The Participant’s Continuous Service shall not be deemed to have terminated merely
because of a change in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee, Consultant
or Director or a change in the entity for which the Participant renders such service, provided that there is no interruption or
termination of the Participant’s Continuous Service; provided further that if any Award is subject to Section 409A of the
Code, this sentence shall only be given effect to the extent consistent with Section 409A of the Code. For example, a change in status
from an Employee of the Company to a Director of an Affiliate will not constitute an interruption of Continuous Service. The Committee
or its delegate, in its sole discretion, may determine whether Continuous Service shall be considered interrupted in the case of any
leave of absence approved by that party, including sick leave, military leave or any other personal or family leave of absence. The Committee
or its delegate, in its sole discretion, may determine whether a Company transaction, such as a sale or spin-off of a division or subsidiary
that employs a Participant, shall be deemed to result in a termination of Continuous Service for purposes of affected Awards, and such
decision shall be final, conclusive and binding.

 

    3

     

    

 

“Detrimental
Activity” means any of the following: (i) unauthorized disclosure of any confidential or proprietary information of the Company
or any of its Affiliates; (ii) any activity that would be grounds to terminate the Participant’s employment or service with the
Company or any of its subsidiaries for Cause; (iii) the breach of any non-competition, non-solicitation, non-disparagement or other agreement
containing restrictive covenants, with the Company or its Affiliates; (iv) fraud or conduct contributing to any financial restatements
or irregularities, as determined by the Committee in its sole discretion; or (v) any other conduct or act determined to be materially
injurious, detrimental or prejudicial to any interest of the Company or any of its Affiliates, as determined by the Committee in its
sole discretion.

 

“Director”
means a member of the Board.

 

“Disability”
means, unless the applicable Award Agreement says otherwise, that the Participant is unable to engage in any substantial gainful activity
by reason of any medically determinable physical or mental impairment; provided, however, for purposes of determining the term
of an Incentive Stock Option pursuant to Section 6.9 hereof, the term Disability shall
have the meaning ascribed to it under Section 22(e)(3) of the Code. The determination of whether an individual has a Disability shall
be determined under procedures established by the Committee. Except in situations where the Committee is determining Disability for purposes
of the term of an Incentive Stock Option pursuant to Section 6.9 hereof within the meaning
of Section 22(e)(3) of the Code, the Committee may rely on any determination that a Participant is disabled for purposes of benefits
under any long-term disability plan maintained by the Company or any Affiliate in which a Participant participates.

 

“Disqualifying
Disposition” has the meaning set forth in Section 16.12.

 

“Effective
Date” shall mean the date as of which this Plan is adopted by the Board.

 

“Employee”
means any person, including an officer or Director, employed by the Company or an Affiliate; provided, that, for purposes
of determining eligibility to receive Incentive Stock Options, an Employee shall mean an employee of the Company or a parent or subsidiary
corporation within the meaning of Section 424 of the Code. Mere service as a Director or payment of a director’s fee by the Company
or an Affiliate shall not be sufficient to constitute “employment” by the Company or an Affiliate.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Fair
Market Value” means, on a given date, (i) if there is a public market for the shares of Common Stock on such date, the closing
price of the shares as reported on such date on the principal national securities exchange on which the shares are listed or, if no sales
of shares have been reported on any national securities exchange, then the immediately preceding date on which sales of the shares have
been so reported or quoted, and (ii) if there is no public market for the shares of Common Stock on such date, then the fair market value
shall be determined by the Committee in good faith after taking into consideration all factors which it deems appropriate, including,
without limitation, Sections 409A and 422 of the Code.

 

    4

     

    

 

“Grant
Date” means the date on which the Committee adopts a resolution, or takes other appropriate action, expressly granting an Award
to a Participant that specifies the key terms and conditions of the Award or, if a later date is set forth in such resolution, then such
date as is set forth in such resolution.

 

“Incentive
Stock Option” means an Option that is designated by the Committee as an incentive stock option within the meaning of Section
422 of the Code and that meets the requirements set out in the Plan.

 

“Non-qualified
Stock Option” means an Option that by its terms does not qualify or is not intended to qualify as an Incentive Stock Option.

 

“Option”
means an Incentive Stock Option or a Non-qualified Stock Option granted pursuant to the Plan.

 

“Optionholder”
means a person to whom an Option is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Option.

 

“Option
Exercise Price” means the price at which a share of Common Stock may be purchased upon the exercise of an Option.

 

“Participant”
means an eligible person to whom an Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding
Award.

 

“Performance
Goals” means, for a Performance Period, the one or more goals established by the Committee for the Performance Period based
upon business criteria or other performance measures determined by the Committee in its discretion.

 

“Performance
Period” means the one or more periods of time as the Committee may select, over which the attainment of one or more Performance
Goals will be measured for the purpose of determining a Participant’s right to and the payment of a Performance Share Award.

 

“Performance
Share Award” means any Award granted pursuant to Section 7.2 hereof.

 

“Performance
Share” means the grant of a right to receive a number of actual shares of Common Stock or share units based upon the performance
of the Company during a Performance Period, as determined by the Committee.

 

“Permitted
Transferee” means: (a) a member of the Optionholder’s immediate family (child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law,
or sister-in-law, including adoptive relationships), any person sharing the Optionholder’s household (other than a tenant or employee),
a trust in which these persons have more than 50% of the beneficial interest, a foundation in which these persons (or the Optionholder)
control the management of assets, and any other entity in which these persons (or the Optionholder) own more than 50% of the voting interests;
(b) third parties designated by the Committee in connection with a program established and approved by the Committee pursuant to which
Participants may receive a cash payment or other consideration in consideration for the transfer of a Non-qualified Stock Option; and
(c) such other transferees as may be permitted by the Committee in its sole discretion; provided that, unless otherwise determined by
the Committee, no person shall be a Permitted Transferee unless he or she executes and becomes a party to the Shareholders’ Agreement.

 

    5

     

    

 

“Person”
means any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act).

 

“Plan”
means this Innovative Eyewear, Inc. Equity Incentive Plan, as amended and/or amended and restated from time to time.

 

“Restricted
Award” means any Award granted pursuant to Section 7.

 

“Restricted
Period” means the period during which the transfer of Restricted Stock or the settlement of Restricted Stock Units is subject
to restrictions and a substantial risk of forfeiture. Such restrictions may be based on the passage of time, Performance Goals, or the
occurrence of other events as determined by the Committee.

 

“Restricted
Stock” means Common Stock, subject to certain specified restrictions (including, without limitation, a requirement that the
Participant provide Continuous Service for a specified period of time) granted under Section 7
of the Plan.

 

“Restricted
Stock Unit” means an unfunded and unsecured promise to deliver shares of Common Stock, cash, other securities or other property,
subject to certain restrictions (including, without limitation, a requirement that the Participant provide Continuous Service for a specified
period of time) granted under Section 7 of the Plan.

 

“Stock
Appreciation Right” means the right pursuant to an Award granted under Section 7
to receive, upon exercise, an amount payable in cash or shares equal to the number of shares subject to the Stock Appreciation Right
that is being exercised multiplied by the excess of (a) the Fair Market Value of a share of Common Stock on the date the Award is exercised,
over (b) the exercise price specified in the Stock Appreciation Right Award Agreement.

 

“Ten
Percent Shareholder” means a person who owns (or is deemed to own pursuant to Section 424(d) of the Code) stock possessing
more than 10% of the total combined voting power of all classes of stock of the Company or of any of its Affiliates.

 

3.
Administration.

 

3.1
Authority of Committee. The Plan shall be administered
by the Committee or, in the Board’s sole discretion, by the Board. Subject to the terms of the Plan, the Committee’s charter
and Applicable Laws, and in addition to other express powers and authorization conferred by the Plan, the Committee shall have the authority:

 

(a)
to construe and interpret the Plan and apply its provisions;

 

    6

     

    

 

(b)
to promulgate, amend, and rescind rules and regulations relating to the administration of the Plan;

 

(c)
to authorize any person to execute, on behalf of the Company, any instrument required to carry out the purposes of the
Plan;

 

(d)
to delegate its authority to one or more officers of the Company;

 

(e)
to determine when Awards are to be granted under the Plan and the applicable Grant Date;

 

(f)
from time to time to select, subject to the limitations set forth in this Plan, those Participants to whom Awards shall be
granted;

 

(g)
to determine the number of shares of Common Stock to be made subject to each Award;

 

(h)
to determine whether each Option is to be an Incentive Stock Option or a Non-Qualified Stock Option;

 

(i)
to prescribe the terms and conditions of each Award, including, without limitation, the exercise price and medium of payment and
vesting provisions, and to specify the provisions of the Award Agreement relating to such grant;

 

(j)
to determine the target number of Performance Shares to be granted pursuant to a Performance Share Award, the performance measures
that will be used to establish the Performance Goals, the Performance Period(s) and the number of Performance Shares earned by a
Participant;

 

(k)
to amend any outstanding Awards, including for the purpose of modifying the time or manner of vesting, or the term of any
outstanding Award; provided, however, that if any such amendment impairs a Participant’s rights or increases a
Participant’s obligations under his or her Award or creates or increases a Participant’s federal income tax liability
with respect to an Award, such amendment shall also be subject to the Participant’s consent;

 

(l)
to determine the duration and purpose of leaves of absences which may be granted to a Participant without constituting termination
of their employment for purposes of the Plan, which periods shall be no shorter than the periods generally applicable to Employees
under the Company’s employment policies;

 

(m)
to make decisions with respect to outstanding Awards that may become necessary upon a change in corporate control or an event that
triggers anti-dilution adjustments;

 

(n)
to interpret, administer, reconcile any inconsistency in, correct any defect in and/or supply any omission in the Plan and any
instrument or agreement relating to, or Award granted under, the Plan; and

 

(o)
to exercise discretion to make any and all other determinations which it determines to be necessary or advisable for the
administration of the Plan.

 

    7

     

    

 

3.2
Acquisitions and Other Transactions. The Committee
may, from time to time, assume outstanding awards granted by another entity, whether in connection with an acquisition of such other
entity or otherwise, by either (i) granting an Award under the Plan in replacement of or in substitution for the award assumed by the
Company, or (ii) treating the assumed award as if it had been granted under the Plan if the terms of such assumed award could be applied
to an Award granted under the Plan. Such assumed award shall be permissible if the holder of the assumed award would have been eligible
to be granted an Award hereunder if the other entity had applied the rules of this Plan to such grant. The Committee may also grant Awards
under the Plan in settlement of or in substitution for outstanding awards or obligations to grant future awards in connection with the
Company or an Affiliate acquiring another entity, an interest in another entity, or an additional interest in an Affiliate whether by
merger, stock purchase, asset purchase or other form of transaction.

 

3.3
Committee Decisions Final. All decisions made
by the Committee pursuant to the provisions of the Plan shall be final and binding on the Company and the Participants, unless such decisions
are determined by a court having jurisdiction to be arbitrary and capricious.

 

3.4
Delegation. The Committee, or if no Committee
has been appointed, the Board, may delegate administration of the Plan to a committee or committees of one or more members of the Board,
and the term “Committee” shall apply to any person or persons to whom such authority has been delegated. The Committee
shall have the power to delegate to a subcommittee any of the administrative powers the Committee is authorized to exercise (and references
in this Plan to the Board or the Committee shall thereafter be to the committee or subcommittee), subject, however, to such resolutions,
not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The Board may abolish the Committee
at any time and revest in the Board the administration of the Plan. The members of the Committee shall be appointed by and serve at the
pleasure of the Board. From time to time, the Board may increase or decrease the size of the Committee, add additional members to, remove
members (with or without cause) from, appoint new members in substitution therefor, and fill vacancies, however caused, in the Committee.
The Committee shall act pursuant to a vote of the majority of its members or, in the case of a Committee comprised of only two members,
the unanimous consent of its members, whether present or not, or by the written consent of the majority of its members and minutes shall
be kept of all of its meetings and copies thereof shall be provided to the Board. Subject to the limitations prescribed by the Plan and
the Board, the Committee may establish and follow such rules and regulations for the conduct of its business as it may determine to be
advisable.

 

3.5
Committee Composition. Except as otherwise determined
by the Board, the Committee shall consist solely of two or more Directors appointed to the Committee from time to time by the Board.

 

    8

     

    

 

3.6
Indemnification. In addition to such other rights
of indemnification as they may have as Directors or members of the Committee, and to the extent allowed by Applicable Laws, the Committee
shall be indemnified by the Company against the reasonable expenses, including attorney’s fees, actually incurred in connection
with any action, suit or proceeding or in connection with any appeal therein, to which the Committee may be party by reason of any action
taken or failure to act under or in connection with the Plan or any Award granted under the Plan, and against all amounts paid by the
Committee in settlement thereof (provided, however, that the settlement has been approved by the Company, which approval shall
not be unreasonably withheld) or paid by the Committee in satisfaction of a judgment in any such action, suit or proceeding, except in
relation to matters as to which it shall be adjudged in such action, suit or proceeding that such Committee did not act in good faith
and in a manner which such person reasonably believed to be in the best interests of the Company, or in the case of a criminal proceeding,
had no reason to believe that the conduct complained of was unlawful; provided, however, that within 60 days after institution
of any such action, suit or proceeding, such Committee shall, in writing, offer the Company the opportunity at its own expense to handle
and defend such action, suit or proceeding.

 

4.
Shares Subject to the Plan.

 

4.1
Subject to adjustment in accordance with Section 13, a total equal to 20% of the total
issued shares (without giving effect to any share repurchases and cancellations) shall be available for the grant of Awards under
the Plan. No more than 25,000,000 shares of Common Stock (subject to adjustment pursuant to Section 13) may be issued as Awards
under the Plan upon the exercise of Incentive Stock Options. During the terms of the Awards, the Company shall keep available at all
times the number of shares of Common Stock required to satisfy such Awards.

 

4.2
Shares of Common Stock available for distribution under the Plan may consist, in whole or in part, of authorized and unissued
shares, treasury shares or shares reacquired by the Company in any manner.

 

4.3
Any shares of Common Stock subject to an Award that expires or is canceled, forfeited, or terminated without issuance of the full
number of shares of Common Stock to which the Award related will again be available for issuance under the Plan. Notwithstanding
anything to the contrary contained herein: shares subject to an Award under the Plan shall not again be made available for issuance
or delivery under the Plan if such shares are (a) shares tendered in payment of an Option, (b) shares delivered or withheld by the
Company to satisfy any tax withholding obligation, or (c) shares covered by a stock-settled Stock Appreciation Right or other Awards
that were not issued upon the settlement of the Award.

 

4.4
If the Committee authorizes the assumption of awards pursuant to Section 3.2 or
Section 14.1 hereof, the assumption will reduce the number of shares available for
issuance under the Plan in the same manner as if the assumed awards had been granted under the Plan.

 

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5.
Eligibility.

 

5.1
Eligibility for Specific Awards. Incentive Stock
Options may be granted only to Employees. Awards other than Incentive Stock Options may be granted to Employees, Consultants and Directors
and those individuals whom the Committee determines are reasonably expected to become Employees, Consultants and Directors following
the Grant Date.

 

5.2
Ten Percent Shareholders. A Ten Percent Shareholder
shall not be granted an Incentive Stock Option unless the Option Exercise Price is at least 110% of the Fair Market Value of the Common
Stock on the Grant Date and the Option is not exercisable after the expiration of five years from the Grant Date.

 

6.
Option Provisions. Each Option granted under
the Plan shall be evidenced by an Award Agreement. Each Option so granted shall be subject to the conditions set forth in this Section
6, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement. All Options shall
be separately designated Incentive Stock Options or Non-qualified Stock Options at the time of grant, and, if certificates are issued,
a separate certificate or certificates will be issued for shares of Common Stock purchased on exercise of each type of Option. Notwithstanding
the foregoing, the Company shall have no liability to any Participant or any other person if an Option designated as an Incentive Stock
Option fails to qualify as such at any time or if an Option is determined to constitute “nonqualified deferred compensation”
within the meaning of Section 409A of the Code and the terms of such Option do not satisfy the requirements of Section 409A of the Code.
The provisions of separate Options need not be identical, but each Option shall include (through incorporation of provisions hereof by
reference in the Option or otherwise) the substance of each of the following provisions:

 

6.1
Term. Subject to the provisions of Section 5.2
regarding Ten Percent Shareholders, no Incentive Stock Option shall be exercisable after the expiration of 10 years from the Grant
Date. The term of a Non-qualified Stock Option granted under the Plan shall be determined by the Committee; provided, however,
no Non-qualified Stock Option shall be exercisable after the expiration of 10 years from the Grant Date.

 

6.2
Exercise Price of an Incentive Stock Option.
Subject to the provisions of Section 5.2 regarding Ten Percent Shareholders, the Option
Exercise Price of each Incentive Stock Option shall be not less than 100% of the Fair Market Value of the Common Stock subject to the
Option on the Grant Date. Notwithstanding the foregoing, an Incentive Stock Option may be granted with an Option Exercise Price lower
than that set forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution for another option
in a manner satisfying the provisions of Section 424(a) of the Code.

 

6.3
Exercise Price of a Non-qualified Stock Option.
The Option Exercise Price of each Non-qualified Stock Option shall be not less than 100% of the Fair Market Value of the Common Stock
subject to the Option on the Grant Date. Notwithstanding the foregoing, a Non-qualified Stock Option may be granted with an Option Exercise
Price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution for another
option in a manner satisfying the provisions of Section 409A of the Code.

 

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6.4
Method of Exercise. The Option Exercise Price
shall be paid, to the extent permitted by Applicable Laws, either (a) in cash or by certified or bank check at the time the Option is
exercised or (b) in the discretion of the Committee, upon such terms as the Committee shall approve: (i) by delivery to the Company of
other shares of Common Stock, duly endorsed for transfer to the Company, with a Fair Market Value on the date of delivery equal to the
Option Exercise Price (or portion thereof) due for the number of shares being acquired; (ii) by a “net exercise” procedure
effected by withholding the minimum number of shares of Common Stock otherwise issuable in respect of an Option that are needed to pay
the Option Exercise Price; (iii) by any combination of the foregoing methods; or (iv) in any other form of legal consideration that may
be acceptable to the Committee. Unless otherwise specifically provided in the Option, the Option Exercise Price that is paid by delivery
to the Company of other Common Stock acquired, directly or indirectly from the Company, shall be paid only by shares of Common Stock
that have been held for more than six months (or such longer or shorter period of time required to avoid a charge to earnings for financial
accounting purposes).

 

6.5
Transferability of an Incentive Stock Option.
An Incentive Stock Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable
during the lifetime of the Optionholder only by the Optionholder. Notwithstanding the foregoing, the Optionholder may, by delivering
written notice to the Company, in a form satisfactory to the Company, designate a third party who, in the event of the death of the Optionholder,
shall thereafter be entitled to exercise the Option.

 

6.6
Transferability of a Non-qualified Stock Option.
A Non-qualified Stock Option may, in the sole discretion of the Committee, be transferable to a Permitted Transferee, upon written approval
by the Committee to the extent provided in the Award Agreement. If the Non-qualified Stock Option does not provide for transferability,
then the Non-qualified Stock Option shall not be transferable except by will or by the laws of descent and distribution and shall be
exercisable during the lifetime of the Optionholder only by the Optionholder. Notwithstanding the foregoing, the Optionholder may, by
delivering written notice to the Company, in a form satisfactory to the Company, designate a third party who, in the event of the death
of the Optionholder, shall thereafter be entitled to exercise the Option.

 

6.7
Vesting of Options. Each Option may, but need
not, vest and therefore become exercisable in periodic installments that may, but need not, be equal. The Option may be subject to such
other terms and conditions on the time or times when it may be exercised (which may be based on performance or other criteria) as the
Committee may deem appropriate. The vesting provisions of individual Options may vary. No Option may be exercised for a fraction of a
share of Common Stock. The Committee may, but shall not be required to, provide for an acceleration of vesting and exercisability in
the terms of any Award Agreement upon the occurrence of a specified event.

 

    11

     

    

 

6.8
Termination of Continuous Service. Unless otherwise
provided in an Award Agreement or in an employment agreement the terms of which have been approved by the Committee, in the event an
Optionholder’s Continuous Service terminates (other than upon the Optionholder’s death or Disability), the Optionholder may
exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of termination) but
only within such period of time ending on the earlier of (a) the date three months following the termination of the Optionholder’s
Continuous Service or (b) the expiration of the term of the Option as set forth in the Award Agreement; provided that, if the
termination of Continuous Service is by the Company for Cause, all outstanding Options (whether or not vested) shall immediately terminate
and cease to be exercisable. If, after termination, the Optionholder does not exercise his or her Option within the time specified in
the Award Agreement, the Option shall terminate.

 

6.9 Disability
of Optionholder. Unless otherwise provided in
an Award Agreement, in the event that an Optionholder’s Continuous Service terminates as a result of the Optionholder’s
Disability, the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such
Option as of the date of termination), but only within such period of time ending on the earlier of (a) the date 12 months following
such termination or (b) the expiration of the term of the Option as set forth in the Award Agreement. If, after termination, the
Optionholder does not exercise his or her Option within the time specified herein or in the Award Agreement, the Option shall
terminate.

 

6.10
Death of Optionholder. Unless otherwise provided
in an Award Agreement, in the event an Optionholder’s Continuous Service terminates as a result of the Optionholder’s death,
then the Option may be exercised (to the extent the Optionholder was entitled to exercise such Option as of the date of death) by the
Optionholder’s estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by a person designated
to exercise the Option upon the Optionholder’s death, but only within the period ending on the earlier of (a) the date 12 months
following the date of death or (b) the expiration of the term of such Option as set forth in the Award Agreement. If, after the Optionholder’s
death, the Option is not exercised within the time specified herein or in the Award Agreement, the Option shall terminate.

 

6.11
Incentive Stock Option $100,000 Limitation. To the extent that the aggregate Fair Market Value (determined at the time
of grant) of Common Stock with respect to which Incentive Stock Options are exercisable for the first time by any Optionholder during
any calendar year (under all plans of the Company and its Affiliates) exceeds $100,000, the Options or portions thereof which exceed
such limit (according to the order in which they were granted) shall be treated as Non-qualified Stock Options.

 

6.12
Detrimental Activity. Unless otherwise provided
in an Award Agreement, all outstanding Options (whether or not vested) shall immediately terminate and cease to be exercisable on the
date on which an Optionholder engages in Detrimental Activity.

 

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7.
Restricted Awards.
A Restricted Award is an Award of actual shares of Common Stock (“Restricted Stock”) or an Award of hypothetical Common
Stock Units (“Restricted Stock Units”) having a value equal to the Fair Market Value of an identical number of shares
of Common Stock. Restricted Awards may, but need not, provide that such Restricted Award may not be sold, assigned, transferred or otherwise
disposed of, pledged or hypothecated as collateral for a loan or as security for the performance of any obligation or for any other purpose
during the Restricted Period as the Committee shall determine. Each Restricted Award granted under the Plan shall be evidenced by an
Award Agreement. Each Restricted Award so granted shall be subject to the conditions set forth in this Section 7, and to such other conditions
not inconsistent with the Plan as may be reflected in the applicable Award Agreement.

 

7.1
Restricted Stock. Each Participant granted Restricted
Stock shall execute and deliver to the Company an Award Agreement with respect to the Restricted Stock setting forth the restrictions
and other terms and conditions applicable to such Restricted Stock. If the Committee determines that the Restricted Stock shall be held
by the Company or in escrow rather than delivered to the Participant pending the release of the applicable restrictions, the Committee
may require the Participant to additionally execute and deliver to the Company (A) an escrow agreement satisfactory to the Committee,
if applicable and (B) the appropriate blank stock power with respect to the Restricted Stock covered by such agreement. If a Participant
fails to execute an agreement evidencing an Award of Restricted Stock and, if applicable, an escrow agreement and stock power, the Award
shall be null and void. Subject to the restrictions set forth in the Award, the Participant generally shall have the rights and privileges
of a shareholder as to such Restricted Stock, including the right to vote such Restricted Stock and the right to receive dividends.

 

7.2
Restricted Stock Units. The terms and conditions
of a grant of Restricted Stock Units shall be reflected in an Award Agreement. No shares of Common Stock shall be issued at the time
a Restricted Stock Unit is granted, and the Company will not be required to set aside funds for the payment of any such Award. A Participant
shall have no voting rights with respect to any Restricted Stock Units granted hereunder.

 

7.3
Restrictions.  

 

(a)
Restrictions on Restricted Stock. Restricted Stock awarded to a Participant shall be subject to the following restrictions until
the expiration of the Restricted Period, and to such other terms and conditions as may be set forth in the applicable Award Agreement:
(A) if an escrow arrangement is used, the Participant shall not be entitled to delivery of the stock certificate; (B) the shares shall
be subject to the restrictions on transferability set forth in the Award Agreement; (C) the shares shall be subject to forfeiture to
the extent provided in the applicable Award Agreement; and (D) to the extent such shares are forfeited, the stock certificates shall
be returned to the Company, and all rights of the Participant to such shares and as a shareholder with respect to such shares shall terminate
without further obligation on the part of the Company.

 

(b) Restrictions
on Restricted Stock Units. Restricted Stock Units awarded to a Participant shall be subject to (A) forfeiture until the
expiration of the Restricted Period and satisfaction of any applicable Performance Goals during such period, to the extent provided
in the applicable Award Agreement, and to the extent such Restricted Stock Units are forfeited, all rights of the Participant to
such Restricted Stock Units shall terminate without further obligation on the part of the Company and (B) such other terms and
conditions as may be set forth in the applicable Award Agreement.

 

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(c) Committee
Discretion to Remove Restrictions. The Committee shall have the authority to remove any or all of the restrictions on the
Restricted Stock or Restricted Stock Units whenever it may determine that, by reason of changes in Applicable Laws or other changes
in circumstances arising after the Grant Date, such action is appropriate.

 

7.4
Restricted Period. The Restricted Period shall
commence on the Grant Date and end at the time or times set forth on a schedule established by the Committee in the applicable Award
Agreement; provided, however, that notwithstanding any such vesting dates, the Committee may in its sole discretion accelerate
the vesting of any Restricted Award at any time and for any reason. The Committee may, but shall not be required to, provide for an acceleration
of vesting in the terms of any Award Agreement upon the occurrence of a specified event.

 

7.5
Delivery of Restricted Stock and Settlement of Restricted Stock Units.
Upon the expiration of the Restricted Period with respect to any shares of Restricted Stock, the restrictions set forth in Section 7.3(a)
and the applicable Award Agreement shall be of no further force or effect with respect to such shares, except as set forth in
the applicable Award Agreement. If an escrow arrangement is used, upon such expiration, the Company shall deliver to the Participant,
or his or her beneficiary, without charge, the stock certificate evidencing the shares of Restricted Stock which have not then been forfeited
and with respect to which the Restricted Period has expired (to the nearest full share). Upon the expiration of the Restricted Period
with respect to any outstanding Restricted Stock Units, the Company shall deliver to the Participant, or his or her beneficiary, without
charge, one share of Common Stock for each outstanding Restricted Stock Unit; provided, however, that if explicitly provided in
the Award Agreement, the Committee may, in its sole discretion, elect to pay part cash or part cash and part Common Stock in lieu of
delivering only shares of Common Stock for vested Restricted Stock Units. If a cash payment is made in lieu of delivering shares of Common
Stock, the amount of such payment shall be equal to the Fair Market Value of the Common Stock as of the date on which the Restricted
Period lapsed.

 

No
Restricted Award may be granted or settled for a fraction of a share of Common Stock.

 

8. Performance
Share Awards Each Performance Share Award granted under the Plan shall be evidenced by an Award Agreement. Each
Performance Share Award so granted shall be subject to the conditions set forth in this Section 8, and to such other conditions not
inconsistent with the Plan as may be reflected in the applicable Award Agreement. The Committee shall have the discretion to
determine: (i) the number of shares of Common Stock or stock-denominated units subject to a Performance Share Award granted to any
Participant; (ii) the Performance Period applicable to any Award; (iii) the conditions that must be satisfied for a Participant to
earn an Award; and (iv) the other terms, conditions and restrictions of the Award.

 

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8.1 Earning
Performance Share Awards The number of Performance Shares earned by a Participant will depend on the extent to which the
Performance Goals established by the Committee are attained within the applicable Performance Period, as determined by the
Committee.

 

9.
Securities Law Compliance.

 

9.1
Securities Registration. No Awards shall be granted
under the Plan and no shares of Common Stock shall be issued and delivered upon the exercise of Options granted under the Plan unless
and until the Company and/or the Participant have complied with all applicable federal and state registration, listing and/or qualification
requirements and all other requirements of law or of any regulatory agencies having jurisdiction.

 

9.2
Representations; Legends. The Committee may,
as a condition to the grant of any Award or the exercise of any Option under the Plan, require a Participant to (i) represent in writing
that the shares of Common Stock received in connection with such Award are being acquired for investment and not with a view to distribution
and (ii) make such other representations and warranties as are deemed appropriate by counsel to the Company. Each certificate representing
shares of Common Stock acquired under the Plan shall bear a legend in such form as the Company deems appropriate.

 

10.
Use of Proceeds from Stock. Proceeds from the
sale of Common Stock pursuant to Awards, or upon exercise thereof, shall constitute general funds of the Company.

 

11.
Other Equity-Based Awards and Cash Awards. The
Committee may grant Other Equity-Based Awards, either alone or in tandem with other Awards, in such amounts and subject to such conditions
as the Committee shall determine in its sole discretion. Each Equity-Based Award shall be evidenced by an Award Agreement and shall be
subject to such conditions, not inconsistent with the Plan, as may be reflected in the applicable Award Agreement. The Committee may
grant Cash Awards in such amounts and subject to such Performance Goals, other vesting conditions, and such other terms as the Committee
determines in its discretion. Cash Awards shall be evidenced in such form as the Committee may determine.

 

12.
Miscellaneous.

 

12.1 Acceleration
of Exercisability and Vesting. The Committee shall have the power to accelerate the time at which an Award may first be
exercised or the time during which an Award or any part thereof will vest in accordance with the Plan, notwithstanding the
provisions in the Award stating the time at which it may first be exercised or the time during which it will vest.

 

12.2
Shareholder Rights. Except as provided in the
Plan or an Award Agreement, no Participant shall be deemed to be the holder of, or to have any of the rights of a holder with respect
to, any shares of Common Stock subject to an Award unless and until such Participant has satisfied all requirements for exercise or settlement
of the Award pursuant to its terms (including any obligation to execute the Shareholders’ Agreement) and no adjustment shall be
made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions of other rights for which
the record date is prior to the date such Common Stock certificate is issued, except as provided in Section 13
hereof.

 

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12.3
No Employment or Other Service Rights. Nothing
in the Plan or any instrument executed or Award granted pursuant thereto shall confer upon any Participant any right to continue to serve
the Company or an Affiliate in the capacity in effect at the time the Award was granted or shall affect the right of the Company or an
Affiliate to terminate (a) the employment of an Employee with or without notice and with or without Cause or (b) the service of a Director
pursuant to the By-laws of the Company or an Affiliate, and any applicable provisions of the corporate law of the state in which the
Company or the Affiliate is incorporated, as the case may be.

 

12.4
Transfer; Approved Leave of Absence. For purposes
of the Plan, no termination of employment by an Employee shall be deemed to result from either (a) a transfer of employment to the Company
from an Affiliate or from the Company to an Affiliate, or from one Affiliate to another, or (b) an approved leave of absence for military
service or sickness, or for any other purpose approved by the Company, if the Employee’s right to reemployment is guaranteed either
by a statute or by contract or under the policy pursuant to which the leave of absence was granted or if the Committee otherwise so provides
in writing, in either case, except to the extent inconsistent with Section 409A of the Code if the applicable Award is subject thereto.

 

12.5
Withholding Obligations. To the extent provided
by the terms of an Award Agreement and subject to the discretion of the Committee, the Participant may satisfy any federal, state or
local tax withholding obligation relating to the exercise or acquisition of Common Stock under an Award by any of the following means
(in addition to the Company’s right to withhold from any compensation paid to the Participant by the Company) or by a combination
of such means: (a) tendering a cash payment; (b) authorizing the Company to withhold shares of Common Stock from the shares of Common
Stock otherwise issuable to the Participant as a result of the exercise or acquisition of Common Stock under the Award, provided,
however, that no shares of Common Stock are withheld with a value exceeding the maximum amount of tax required to be withheld by
law; or (c) delivering to the Company previously owned and unencumbered shares of Common Stock of the Company.

 

13.
Adjustments Upon Changes in Stock. In the event
of changes in the outstanding Common Stock or in the capital structure of the Company by reason of any stock or extraordinary cash dividend,
stock split, reverse stock split, an extraordinary corporate transaction such as any recapitalization, reorganization, merger, consolidation,
combination, exchange, or other relevant change in capitalization occurring after the Grant Date of any Award, Awards granted under the
Plan and any Award Agreements, the exercise price of Options and Stock Appreciation Rights, the Performance Goals to which Performance
Share Awards and Cash Awards are subject, the maximum number of shares of Common Stock subject to all Awards stated in Section 3.1
will be equitably adjusted or substituted, as to the number, price or kind of a share of Common Stock or other consideration subject
to such Awards to the extent necessary to preserve the economic intent of such Award. In the case of adjustments made pursuant to this
Section 13, unless the Committee specifically determines that such adjustment is in the best interests of the Company or its Affiliates,
the Committee shall, in the case of Incentive Stock Options, ensure that any adjustments under this Section 13 will not constitute a
modification, extension or renewal of the Incentive Stock Options within the meaning of Section 424(h)(3) of the Code and in the case
of Non-qualified Stock Options, ensure that any adjustments under this Section 13 will not constitute a modification of such Non-qualified
Stock Options within the meaning of Section 409A of the Code.

 

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14.
Effect of Change in Control.

 

14.1
In the event of a Change in Control, the Committee may, but shall not be obligated to:

 

(a)
accelerate, vest or cause the restrictions to lapse with respect to all or any portion of any Award;

 

(b)
cancel Awards and cause to be paid to the holders of vested Awards the value of such Awards, if any, as determined by the Committee,
in its sole discretion, it being understood that in the case of any Option with an Option Exercise Price that equals or exceeds the
price paid for a share of Common Stock in connection with the Change in Control, the Committee may cancel the Option without the
payment of consideration therefor;

 

(c)
provide for the issuance of substitute Awards or the assumption or replacement of such Awards; or

 

(d)
provide written notice to Participants that for a period of at least ten days prior to the Change in Control, such Awards shall be
exercisable, to the extent applicable, as to all shares of Common Stock subject thereto and upon the occurrence of the Change in
Control, any Awards not so exercised shall terminate and be of no further force and effect.

 

14.2
The obligations of the Company under the Plan 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 and its Affiliates, taken as a whole.

 

15.
Amendment of the Plan and Awards.

 

15.1
Amendment of Plan. The Board at any time, and
from time to time, may amend or terminate the Plan. However, except as provided in Section 13
relating to adjustments upon changes in Common Stock and Section 15.3, no amendment
shall be effective unless approved by the shareholders of the Company to the extent shareholder approval is necessary to satisfy any
Applicable Laws. At the time of such amendment, the Board shall determine, upon advice from counsel, whether such amendment will be contingent
on shareholder approval.

 

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15.2
Shareholder Approval. The Board may, in its sole
discretion, submit any other amendment to the Plan for shareholder approval.

 

15.3
Contemplated Amendments. It is expressly contemplated
that the Board may amend the Plan in any respect the Board deems necessary or advisable to provide eligible Employees, Consultants and
Directors with the maximum benefits provided or to be provided under the provisions of the Code and the regulations promulgated thereunder
relating to Incentive Stock Options or to the nonqualified deferred compensation provisions of Section 409A of the Code and/or to bring
the Plan and/or Awards granted under it into compliance therewith.

 

15.4
No Impairment of Rights. Rights under any Award
granted before amendment of the Plan shall not be impaired by any amendment of the Plan unless (a) the Company requests the consent of
the Participant and (b) the Participant consents in writing.

 

15.5
Amendment of Awards. The Committee at any time,
and from time to time, may amend the terms of any one or more Awards; provided, however, that the Committee may not affect any
amendment which would otherwise constitute an impairment of the rights under any Award unless (a) the Company requests the consent of
the Participant and (b) the Participant consents in writing.

 

16.
General Provisions.

 

16.1
Clawback; Forfeiture. Notwithstanding anything
to the contrary contained herein, the Committee may, in its sole discretion, provide in an Award Agreement or otherwise that the Committee
may cancel such Award if the Participant has engaged in or engages in any Detrimental Activity. The Committee may, in its sole discretion,
also provide in an Award Agreement or otherwise that (i) if the Participant has engaged in or engages in Detrimental Activity, the Participant
will forfeit any gain realized on the vesting, exercise or settlement of any Award, and must repay the gain to the Company and (ii) if
the Participant receives any amount in excess of what the Participant should have received under the terms of the Award for any reason
(including, without limitation, by reason of a financial restatement, mistake in calculations or other administrative error), then the
Participant shall be required to repay any such excess amount to the Company. Without limiting the foregoing, all Awards shall be subject
to reduction, cancellation, forfeiture or recoupment to the extent necessary to comply with Applicable Laws.

 

16.2
Shareholders’ Agreement. In connection
with the grant, vesting and/or exercise of any Award under the Plan, the Committee may require a Participant to execute and become a
party to the Shareholders’ Agreement as a condition of such grant, vesting and/or exercise. The Shareholders’ Agreement may
contain restrictions on the transferability of shares of Common Stock acquired under the Plan (such as a right of first refusal or a
prohibition on transfer) and such shares may be subject to call rights and drag-along rights of the Company and certain of its investors.
The Company shall also have any repurchase rights set forth in the Shareholders’ Agreement or any Award Agreement.

 

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16.3
Other Compensation Arrangements. Nothing contained
in this Plan shall prevent the Board from adopting other or additional compensation arrangements, subject to shareholder approval if
such approval is required; and such arrangements may be either generally applicable or applicable only in specific cases.

 

16.4
Sub-Plans. The Committee may from time to time
establish sub-plans under the Plan for purposes of satisfying securities, tax or other laws of various jurisdictions in which the Company
intends to grant Awards. Any sub-plans shall contain such limitations and other terms and conditions as the Committee determines are
necessary or desirable. All sub-plans shall be deemed a part of the Plan, but each sub-plan shall apply only to the Participants in the
jurisdiction for which the sub-plan was designed.

 

16.5
Deferral of Awards. The Committee may establish
one or more programs under the Plan to permit selected Participants the opportunity to elect to defer receipt of consideration upon exercise
of an Award, satisfaction of performance criteria, or other event that absent the election would entitle the Participant to payment or
receipt of shares of Common Stock or other consideration under an Award. The Committee may establish the election procedures, the timing
of such elections, the mechanisms for payments of, and accrual of interest or other earnings, if any, on amounts, shares or other consideration
so deferred, and such other terms, conditions, rules and procedures that the Committee deems advisable for the administration of any
such deferral program.

 

16.6
Unfunded Plan. The Plan shall be unfunded. Neither
the Company, the Board nor the Committee shall be required to establish any special or separate fund or to segregate any assets to assure
the performance of its obligations under the Plan.

 

16.7
Recapitalizations. Each Award Agreement shall
contain provisions required to reflect the provisions of Section 13.

 

16.8
Delivery. Upon exercise of a right granted under
this Plan, the Company shall issue Common Stock or pay any amounts due within a reasonable period of time thereafter. Subject to any
statutory or regulatory obligations the Company may otherwise have, for purposes of this Plan, 30 days shall be considered a reasonable
period of time.

 

16.9
No Fractional Shares. No fractional shares of
Common Stock shall be issued or delivered pursuant to the Plan. The Committee shall determine whether cash, additional Awards or other
securities or property shall be issued or paid in lieu of fractional shares of Common Stock or whether any fractional shares should be
rounded, forfeited or otherwise eliminated.

 

16.10
Other Provisions. The Award Agreements authorized
under the Plan may contain such other provisions not inconsistent with this Plan, including, without limitation, restrictions upon the
exercise of Awards, as the Committee may deem advisable.

 

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16.11
Section 409A. The Plan is intended to comply
with Section 409A of the Code to the extent subject thereto, and, accordingly, to the maximum extent permitted, the Plan shall be interpreted
and administered to be in compliance therewith. Any payments described in the Plan that are due within the “short-term deferral
period” as defined in Section 409A of the Code shall not be treated as deferred compensation unless Applicable Laws require otherwise.
Notwithstanding anything to the contrary in the Plan, to the extent required to avoid accelerated taxation and tax penalties under Section
409A of the Code, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to the Plan during the
six (6) month period immediately following the Participant’s termination of Continuous Service shall instead be paid on the first
payroll date after the six-month anniversary of the Participant’s separation from service (or the Participant’s death, if
earlier). Notwithstanding the foregoing, neither the Company nor the Committee shall have any obligation to take any action to prevent
the assessment of any additional tax or penalty on any Participant under Section 409A of the Code and neither the Company nor the Committee
will have any liability to any Participant for such tax or penalty.

 

16.12
Disqualifying Dispositions. Any Participant who
shall make a “disposition” (as defined in Section 424 of the Code) of all or any portion of shares of Common Stock acquired
upon exercise of an Incentive Stock Option within two years from the Grant Date of such Incentive Stock Option or within one year after
the issuance of the shares of Common Stock acquired upon exercise of such Incentive Stock Option (a “Disqualifying Disposition”)
shall be required to immediately advise the Company in writing as to the occurrence of the sale and the price realized upon the sale
of such shares of Common Stock.

 

16.13
Beneficiary Designation. Each Participant under
the Plan may from time to time name any beneficiary or beneficiaries by whom any right under the Plan is to be exercised in case of such
Participant’s death. Each designation will revoke all prior designations by the same Participant, shall be in a form reasonably
prescribed by the Committee and shall be effective only when filed by the Participant in writing with the Company during the Participant’s
lifetime.

 

16.14
Expenses. The costs of administering the Plan
shall be paid by the Company.

 

16.15
Severability. If any of the provisions of the
Plan or any Award Agreement is held to be invalid, illegal or unenforceable, whether in whole or in part, such provision shall be deemed
modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability and the remaining provisions shall
not be affected thereby.

 

16.16
Plan Headings. The headings in the Plan are for
purposes of convenience only and are not intended to define or limit the construction of the provisions hereof.

 

16.17
Non-Uniform Treatment. The Committee’s
determinations under the Plan need not be uniform and may be made by it selectively among persons who are eligible to receive, or actually
receive, Awards. Without limiting the generality of the foregoing, the Committee shall be entitled to make non-uniform and selective
determinations, amendments and adjustments, and to enter into non-uniform and selective Award Agreements.

 

17.
Termination or Suspension of the Plan.
The Plan shall terminate automatically on the tenth anniversary of the date of adoption. No Award shall be granted pursuant to the Plan
after such date, but Awards theretofore granted may extend beyond that date. The Board may suspend or terminate the Plan at any earlier
date pursuant to Section 15.1 hereof. No Awards may be granted under the Plan while the
Plan is suspended or after it is terminated.

 

18.
Choice of Law. The law of the State of Florida
shall govern all questions concerning the construction, validity and interpretation of this Plan, without regard to such state’s
conflict of law rules.

 

As
adopted by the Board of Directors of Innovative Eyewear, Inc. on July 1, 2021.

 

As
approved by the shareholders of Innovative Eyewear, Inc. on July 1, 2021.

 

    20

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