Document:

Exhibit

Second Amendment to Employment Agreement

This Second Amendment (“Second Amendment”), to the Employment Agreement (the "Agreement") dated January 6, 2017 between Payment Data Systems, Inc. ("PDS") and Tom Jewell (“Executive") is made on the 28th day of November, 2018, and is made part of the Agreement which is hereby amended as follows:

1.           Definitions.  All capitalized terms used herein and not expressly defined herein shall have the respective meanings given to such terms in the Agreement.

2.           Entire Agreement.  Except as expressly modified by this Second Amendment, the Agreement shall be and remain in full force and effect in accordance with its terms and shall constitute the legal, valid, binding and enforceable obligations of PDS and Executive.

3.           Successors and Assigns.  This Second Amendment shall be binding upon and inure to the benefit of the successors and permitted assigns of the parties hereto.

4.           Section References.  Section titles and references used in this Second Amendment shall be without substantive meaning or content of any kind whatsoever and are not a part of the agreements among the parties hereto evidenced hereby.

5.           Now, therefore, in consideration of the mutual covenants set forth herein and for other good and valuable consideration, the adequacy, receipt and sufficiency of which are hereby acknowledged:

	
		
	a.
	The Base Salary as set forth in Schedule 4(a) of Schedule 1 to the Agreement is hereby amended to be $220,000 per annum effective November 26, 2018.

This Second Amendment amends the Agreement as set forth herein. All previously existing obligations under the Agreement are hereby reaffirmed in all respects.
 
In witness thereof, the parties hereto have caused this Second Amendment to the Employment Agreement on the day and year first above written.
 
 
	
			
	Payment Data Systems, Inc.
	 
	Executive

	 
	 
	 

	By: /s/ Louis A. Hoch
	 
	By: /s/ Tom Jewell

	Name: Louis A. Hoch
	 
	Name: Tom Jewell

	Title: Chief Executive Officer and President
	 
	Title: Chief Financial OfficerExhibit
4.1

 

EVINE LIVE INC.

Restricted Stock Award Agreement

(Vendors)

 

EVINE Live Inc. (the “Company”)
hereby grants to you, the Grantee named below, the number of shares of restricted common stock of Company set forth in the table
below (the “Restricted Shares”). This Award of Restricted Stock (the “Restricted Stock Award”)
shall be subject to the terms and conditions set forth in this Agreement, consisting of this cover page and the Restricted Stock
Terms and Conditions on the following pages. Capitalized terms used in the Agreement but not defined when first used have the meanings
ascribed to them in Section 11 of the Agreement.

 

	Name
    of Grantee:    Flageoli Classic Limited, LLC
	 
	Number
    of Restricted Shares Granted:  1,500,000	Grant
    Date:                                       November 23, 2018
	 	 
	Vesting
    Schedule:

 

	Vesting
        Dates

         

        The
        closing of business on the first business day following the first Appearance of the Serious Skincare brand (“SSC”)
        launching the Products on the Company’s television Network. (the “Initial Vesting Date”) featuring
        the Grantee’s representative and Spokesperson1 The Initial Vesting Date must occur on or before March
        15, 2019.
	Number
        of Shares as to Which the Award Vests

         

        500,000
        shares

         

	 

        First
        anniversary of the Initial Vesting Date (the “Second Vesting Date”)
	 

        500,000
        shares

	 

        First
        anniversary of the Second Vesting Date
	 

        500,000
        shares

 

By signing below or otherwise evidencing
your acceptance of this Agreement in a manner approved by the Company, you agree to all of the terms and conditions contained
in this Agreement. You acknowledge that you have reviewed this Agreement
and that it sets forth the entire agreement between you and the Company regarding your rights and obligations in connection with
this Restricted Stock Award.

 

	GRANTEE:
    	 	 
	FLAGEOLI
    CLASSIC LIMITED, LLC	 	EVINE
    LIVE INC.
	 	 	 
	By: 	/s/ George Simone	 	By:	/s/
    Robert Rosenblatt
	Title:
    Managing Member	 	Title:  Chief
    Executive Officer

 

 

1
Appearance, Network, Products and Spokesperson have the meanings ascribed to them in that certain Confidential Vendor
Exclusivity Agreement between the parties dated on or about November 23, 2018 (the “Vendor Agreement”).

  

     

     

    

 

EVINE LIVE INC.

Restricted Stock Award Agreement

Restricted
Stock Terms and Conditions

 

1.          Award
of Restricted Stock. The Company hereby grants to you, as of the Grant Date, the number of shares of the Company’s
common stock, par value $0.01 per share (“Shares”), of restricted stock identified on the cover page of this
Agreement, subject to the restrictions and other terms and conditions set forth herein. Unless and until these Shares vest as provided
in Section 2 below, they are subject to the restrictions provided for in this Agreement and are referred to as “Restricted
Shares.” Restricted Shares subject to this Restricted Stock Award shall be evidenced by one or more stock certificates
or book entry notations issued in your name. Any such stock certificate or book entry notation shall be deposited with the Company
or its designee, together with an assignment separate from the certificate, in blank, signed by you, and bear an appropriate legend
referring to the restricted nature of the Shares evidenced thereby.

 

2.          Vesting
of Restricted Shares. For purposes of this Agreement, “Vesting Date” means any date, including the scheduled
vesting dates specified in the Vesting Schedule on the cover page to this Agreement, on which Restricted Shares subject to this
Agreement vest as provided in this Section 2.

 

(a) Scheduled Vesting. The Restricted
Shares will vest in the numbers and on the dates specified in the vesting schedule on the cover page of this Agreement.

 

(b) Accelerated Vesting Upon Change
in Control. At the Company’s discretion, the vesting of the Restricted Shares may be accelerated upon a Change in Control.

 

(c) Effect of Termination of Service.
If your Service ends for any reason prior to the Initial Vesting Date, then this Agreement shall terminate and all remaining unvested
Restricted Shares shall be forfeited.

 

3.          Effect
of Vesting. Upon the vesting of any Restricted Shares, all restrictions specified in Section 5 on such vested Shares will
lapse and such vested Shares will no longer be subject to forfeiture as provided in Section 5 below. Upon the vesting of Restricted
Shares and the corresponding lapse of the restrictions and forfeiture conditions, at the Company’s option, the certificate
evidencing the Shares shall be delivered to you, or an appropriate entry in the stock register maintained by the Company’s
transfer agent shall be made with a notice of issuance provided to you, or the delivery shall be noted by the electronic delivery
of the Shares to a brokerage account you designate, and shall be subject to compliance with all applicable legal requirements as
provided in this Agreement.

 

4.          Rights
of a Shareholder. As of the date of grant specified at the beginning of this Agreement, you will have all of the rights
of a shareholder of the Company with respect to the Restricted Shares (including voting rights and the right to receive dividends
and other distributions), except as otherwise specifically provided in this Agreement.

 

5.          Restrictions
on Transfer.

 

(a) Neither this Restricted Stock Award
nor the Restricted Shares subject to this Restricted Stock Award may be sold, assigned, transferred, exchanged or encumbered other
than by will or the laws of descent and distribution. Any attempted transfer in violation of this Section shall be of no effect
and shall result in the forfeiture of all Restricted Shares.

 

(b) Following vesting of the Restricted
Shares: (i) no more than 100,000 Shares may be sold, assigned, transferred, exchanged, encumbered or otherwise transferred for
consideration by the Grantee or its transferees by private placement, by will or the laws of descent and distribution in any seven
day period; and (2) the Grantee may transfer all of the vested Restricted Shares to a principal of Grantee so long as the transferee
is provided a copy of this Agreement and agrees to be bound by the terms contained herein including this Section 5(b) and Section
16 and the transfer is otherwise made in compliance with the terms of the this Agreement and the legends set forth on such vested
Restricted Shares.

 

6.          Choice
of Law. This Agreement will be interpreted and enforced under the laws of the state of Minnesota (without regard to its
conflicts or choice of law principles).

 

    	 	2	 

     

    

 

7.          No
Right to Continued Service. This Agreement does not give you a right to continued Service with the Company or any Affiliate.

 

8.          Binding
Effect. This Agreement will be binding in all respects on your heirs, representatives, successors and assigns, and on the
successors and assigns of the Company.

 

9.          Notices.
Every notice or other communication relating to this Agreement shall be in writing and shall be mailed to or delivered to the party
for whom it is intended at such address as may from time to time be designated by it in a notice mailed or delivered to the other
party as herein provided. Unless and until some other address is so designated, all notices or communications by you to the Company
shall be mailed or delivered to the Company at its office at 6740 Shady Oak Road, Eden Prairie, MN 55344, and all notices or communications
by the Company to you may be mailed to you at the address provided to the Company simlutaneously with delivery of this Agreement.

 

10.         Adjustments
for Changes in Capitalization. In the event of any equity restructuring (within the meaning of FASB ASC Topic 718 - Stock
Compensation) that causes the per share value of Shares to change, such as a stock dividend, stock split, spinoff, rights offering
or recapitalization through an extraordinary dividend, the Company shall make such adjustments as it deems equitable and appropriate
to the number and kind of Shares subject to this Agreement. In the event of any other change in corporate capitalization, including
a merger, consolidation, reorganization, or partial or complete liquidation of the Company, such equitable adjustments described
in the foregoing sentence may be made as determined to be appropriate and equitable by the Company to prevent dilution or enlargement
of rights of the Grantee.

 

11.         Definitions.
The following terms, and terms derived from the following terms, shall have the following meanings when used in this Agreement
with initial capital letters unless, in the context, it would be unreasonable to do so.

 

(a) “Affiliate” means
any corporation that is a Subsidiary or Parent of the Company.

 

(b) “Change in Control”
means one of the following:

 

(1)         The
acquisition by any individual, entity or Group of beneficial ownership (within the meaning of Exchange Act Rule 13d-3) of 30% or
more of either (i) the then outstanding shares of Company Stock, or (ii) the combined voting power of the then outstanding Company
Voting Securities. Notwithstanding the foregoing sentence, the following acquisitions will not constitute a Change in Control:

 

(A)        any
acquisition of Stock or Company Voting Securities directly from the Company;

 

(B)         any
acquisition of Stock or Company Voting Securities by the Company or any of its wholly-owned Subsidiaries;

 

(C)         any
acquisition of Stock or Company Voting Securities by any employee benefit plan (or related trust) sponsored or maintained by the
Company or any of its Subsidiaries; or

 

(D)         any
acquisition of beneficial ownership by any entity with respect to which, immediately following such acquisition, more than 70%
of, respectively, the then outstanding shares of common stock and the combined voting power of the outstanding Voting Securities
of such entity (or its Parent) is beneficially owned, directly or indirectly, by all or substantially all of the individuals and
entities who beneficially owned, respectively, the outstanding Stock and outstanding Company Voting Securities immediately before
such acquisition in substantially the same proportions as their ownership of the outstanding Stock and outstanding Company Voting
Securities, as the case may be, immediately before such acquisition.

 

(2)         Individuals
who are Continuing Directors cease for any reason to constitute a majority of the members of the Board.

 

(3)         The
consummation of a Corporate Transaction unless, immediately following such Corporate Transaction, all or substantially all of the
individuals and entities who were the beneficial owners, respectively, of the outstanding Stock and outstanding Company Voting
Securities immediately prior to such Corporate Transaction beneficially own, directly or indirectly, more than 70% of, respectively,
the then outstanding shares of common stock and the combined voting power of the then outstanding Voting Securities, as the case
may be, of the of the surviving or acquiring entity (or its Parent) resulting from such Corporate Transaction in substantially
the same proportions as their ownership, immediately before such Corporate Transaction, of the outstanding Stock and outstanding
Company Voting Securities, as the case may be.

 

    	 	3	 

     

    

 

Notwithstanding the foregoing:

 

(i)          a
Change in Control shall not be deemed to occur with respect to a Grantee if the acquisition of the 30% or greater interest referred
to in Section 11(b)(1) is by a Group that includes the Grantee, or if at least 30% of the then outstanding common stock or combined
voting power of the then outstanding Voting Securities of the surviving or acquiring entity referred to in Section 11(b)(3) shall
be beneficially owned, directly or indirectly, immediately after the Corporate Transaction by a Group that includes the Grantee;
and

 

(ii)         to
the extent that this Restricted Stock Award constitutes a deferral of compensation subject to Code Section 409A, then
no Change in Control shall be deemed to have occurred upon an event described in Section 11(b) unless the event would also
constitute a change in ownership or effective control of, or a change in the ownership of a substantial portion of the assets of,
the Company under Code Section 409A.

 

(c) “Code” means the
Internal Revenue Code of 1986, as amended and in effect from time to time, and the regulations promulgated thereunder.

 

(d) “Continuing Director”
means an individual (i) who is, as of the date of the Agreement, a director of the Company, or (ii) who is elected as a director
of the Company subsequent to the date of the Agreement and whose initial election, or nomination for initial election by the Company’s
shareholders, was approved by at least a majority of the then Continuing Directors, but excluding, for purposes of this clause
(ii), any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest.

 

(e) “Corporate Transaction”
means means a reorganization, merger or consolidation of the Company, a statutory exchange of outstanding Company Voting Securities,
or a sale or disposition (in one or a series of transactions) of all or substantially all of the assets of the Company.

 

(f) “Exchange Act” means
the Securities Exchange Act of 1934, as amended and in effect from time to time.

 

(g) “Group” means two
or more persons acting as a partnership, limited partnership, syndicate or other group for the purpose of acquiring, holding or
disposing of securities of an entity.

 

(h) “Parent” means a
“parent corporation,” as defined in Code Section 424(e).

 

(i) “Securities Act”
means the Securities Act of 1933, as amended and in effect from time to time.

 

(j) “Service” means
the provision of services by the Grantee to the Company or any Affiliate pursuant to a vendor or similar agreement.

 

(k) “Stock” means the
Shares of the Company.

 

(l) “Subsidiary” means
a “subsidiary corporation,” as defined in Code Section 424(f), of the Company.

 

(m) “Voting Securities”
of an entity means the outstanding securities entitled to vote generally in the election of directors (or comparable equity interests)
of such entity.

 

12.        Compliance
with Applicable Legal Requirements. No Shares shall be issued and delivered unless the issuance of the Shares complies
with all applicable legal requirements, including compliance with the provisions of applicable state and federal securities laws,
and the requirements of any securities exchanges on which the Company’s Shares may, at the time, be listed.

 

13.        Restictive
Legends.

 

(a) Any certificate, book entry notation
or insturment representing Restricted Shares shall bear the following legends:

 

    	 	4	 

     

    

 

THE SHARES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY
SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT (I) AN EFFECTIVE
REGISTRATION OR QUALIFICATION THEREOF UNDER THE ACT AND THE SECURITIES LAWS OF ANY APPLICABLE STATE OR OTHER JURISDICTION, OR (II)
AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH REGISTRATION AND QUALIFICATION IS NOT REQUIRED.

 

THE SHARES REPRESENTED BY THIS
CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND OPTIONS TO ACQUIRE SUCH SHARES AS SET FORTH IN AN AGREEMENT BETWEEN
THE COMPANY AND THE HOLDER, OR HIS OR HER PREDECESSOR IN INTEREST. A COPY OF SUCH AGREEMENT IS ON FILE WITH THE SECRETARY OF THE
COMPANY AND WILL BE FURNISHED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY BY THE HOLDER OF THE SHARES REPRESENTED BY THIS
CERTIFICATE.

 

(b)  Any certificate, book entry notation
or instrument representing the Shares issued following vesting may be notated with one or all of the following legends:

 

THE SHARES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR ANY SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT (I) AN
EFFECTIVE REGISTRATION OR QUALIFICATION THEREOF UNDER THE ACT AND THE SECURITIES LAWS OF ANY APPLICABLE STATE OR OTHER JURISDICTION,
OR (II) AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH REGISTRATION AND QUALIFICATION IS NOT REQUIRED.

 

THE SECURITIES
REPRESENTED HEREBY ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER SET FORTH IN A RESTRICTED STOCK AGREEMENT WITH THE CORPORATION,
A COPY OF WHICH MAY BE OBTAINED UPON REQUEST FROM THE CORPORATION.

 

and any legend required by the securities
laws of any state to the extent such laws are applicable to the Shares represented by the certificate, instrument, or book entry
so legended.

 

You agree that in order to ensure compliance with the restrictions
referred to in this Agreement, the Company may issue appropriate “stop transfer” instructions to its transfer agent.
The Company shall not be required (i) to transfer on its books any Shares that have been sold or otherwise transferred in
violation of any of the provisions of this Agreement or (ii) to treat as owner of such Shares or to accord the right to vote
or pay dividends to any transferee to whom such Shares shall have been so transferred.

 

14.        Electronic
Delivery and Acceptance. The Company may deliver any documents related to this Award by electronic means and request your
acceptance of this Agreement by electronic means. You hereby consent to receive all applicable documentation by electronic delivery
and to participate in the Restricted Stock Award through an on-line (and/or voice activated) system established and maintained
by the Company or the Company’s third-party stock administrator (if any).

 

15.        Representations
and Warranties of the Grantee. The Grantee hereby represents and warrants to the Company as of the date hereof as follows:

 

(a) Authority. Grantee has all necessary
power and authority to execute and deliver this Agreement and to carry out its provisions. All action on Grantee’s part required
for the lawful execution and delivery of this Agreement has been taken. This Agreement, when executed and delivered by the Grantee,
shall constitute the valid and binding obligation of the Grantee enforceable in accordance with its terms, subject to laws of general
application relating to bankruptcy, insolvency or other laws of general application affecting enforcement of creditors’ rights.

 

    	 	5	 

     

    

 

(b) Acquisition for Own Account.
The Grantee represents that it is acquiring the Restricted Shares (and any Shares issued upon vesting) solely for its own account
and beneficial interest for investment and not for sale or with a view to distribution of the Restricted Shares or Shares or any
part thereof, has no present intention of selling (in connection with a distribution or otherwise), granting any participation
in, or otherwise distributing the same, and does not presently have reason to anticipate a change in such intention.

 

(c) Information and Sophistication.
The Grantee hereby: (i) represents that it has had an opportunity to ask questions and receive answers from the Company regarding
the terms and conditions of this Restricted Stock Award and regarding the Company’s business, financial condition and prospects
and (ii) further represents that it has such knowledge and experience in financial and business matters that it is capable of evaluating
the merits and risk of this investment. The Grantee has reviewed the reports of the Company filed with the Securities and Exchange
Commission and available at www.sec.gov/edgar.shtml, including the risks noted therein.

 

(d) Ability to Bear Economic Risk.
The Grantee acknowledges that investment in the Restricted Shares (and any Shares issued upon vesting) involves a high degree of
risk, and represents that it is able, without materially impairing its financial condition, to hold the Shares for an indefinite
period of time and to suffer a complete loss of its investment.

 

(e) Further Limitations on Disposition.
The Company has no intent to register the Shares or Restricted Shares pursuant to the Securites Act. Without in any way limiting
the representations set forth above, such Grantee acknowledges and agrees that the Restricted Shares and the Shares upon vesting
are “restricted securities” as defined in Rule 144 promulgated under the Securities Act and must be held indefinitely
unless they are subsequently registered under the Securities Act or an exemption from such registration is available. Grantee has
been advised or is aware of the provisions of Rule 144, which permits limited resale of shares acquired in a private placement
subject to the satisfaction of certain conditions, including, among other things: the availability of certain current public information
about the Company, the resale occurring following the required holding period under Rule 144 and the number of shares being sold
during any three-month period not exceeding specified limitations. Grantee further agrees not to make any disposition of all or
any portion of the Shares unless and until:

 

(i) There is then in effect a
registration statement under the Securities Act covering such proposed disposition and such disposition is made in accordance with
such registration statement (the Company has no present intention of filing such a registration statement); or

 

(ii) The Grantee shall have furnished
the Company with an opinion of counsel, reasonably satisfactory to the Company, that such disposition will not require registration
under the Securities Act or any applicable state securities laws.

 

The Grantee understands that if the Company ceases to file reports
pursuant to Section 15(d) of the Exchange Act, or if a registration statement covering the securities under the Securities Act
is not in effect when the Grantee desires to sell the Shares, the Grantee may be required to hold such securities for an indefinite
period.

 

(f) Accredited Investor Status.
The Grantee is an “accredited investor” as such term is defined in Rule 501 under the Securities Act.

 

(g) Residence. If Grantee is an
individual, then Grantee resides in the state or province identified in the address of Grantee provided to the Company; if Grantee
is a partnership, corporation, limited liability company or other entity, then the office or offices of Grantee in which its investment
decision was made is located at the address or addresses of Grantee provided to the Company.

 

(h) Foreign Investors. If Grantee
is not a United States person (as defined by Section 7701(a)(30) of the Code), Grantee hereby represents that it has satisfied
itself as to the full observance of the laws of its jurisdiction in connection with the receipt of Restricted Shares or any use
of this Agreement, including (i) the legal requirements within its jurisdiction for the receipt of the Shares, (ii) any foreign
exchange restrictions applicable to such receipt, (iii) any government or other consents that may need to be obtained, and (iv)
the income tax and other tax consequences, if any, that may be relevant to the acquisition, holding, redemption, sale or transfer
of the Shares. Grantee’s beneficial ownership of the Shares will not violate any applicable securities or other laws of Grantee’s
jurisdiction.

 

    	 	6	 

     

    

 

(i) Tax Liability. The Grantee has
reviewed with its own tax advisors and counsel the federal, state, local and foreign tax consequences of this Restricted Stock
Award and the transactions contemplated by this Agreement. The Grantee understands that it (and not the Company) shall be responsible
for its own tax liability that may arise as a result of this Restricted Stock Award or the transactions contemplated by this Agreement.

 

16.        Standstill
Agreement.

 

(a) Except as specifically permitted or
required by this Restricted Stock Award, the Grantee will not, directly or indirectly, without the prior approval of the Company’s
board of directors (the “Company Board”),

 

(i) acquire (or offer, propose
or agree to acquire) any shares of common stock of the Company (“Common Stock”) by any means whatsoever (including
pursuant to this Restricted Stock Award) if the total number of shares of Common Stock beneficially owned by the Grantee and its
Affiliates and any other persons whose beneficial ownership of Common Stock would be aggregated with the Grantee’s for purposes
of Section 13(d) of the Exchange Act, exceeds 4.999% of the total number of issued and outstanding shares of Common Stock following
such acquisition (including for such purpose the shares of Common Stock issuable upon any conversion or exercise of another security
including a warrant).  For these purposes, beneficial ownership shall be determined in accordance with Section 13(d) of the
Exchange Act and the rules and regulations promulgated thereunder;

 

(ii) engage, or become a participant,
in any “solicitation” of “proxies” (as such terms are defined in Regulation 14A under the Exchange Act)
or consents to vote any shares of Common Stock;

 

(iii) grant a proxy or otherwise
transfer the right to vote any shares of Common Stock, other than to the Company’s designee(s) pursuant to a proxy solicitation
conducted by or on behalf of the Company Board;

 

(iv) act or seek to control or
influence the management, the Company Board or policies of the Company (including by seeking to call a shareholders meeting, proposing
or nominating any person for election to the Company’s Board, submitting a proposal for action at a shareholders meeting
or by consent of the shareholders in lieu of a meeting, proposing a merger, statutory share exchange or other business combination
or extraordinary corporate transaction, or otherwise);

 

(v) publicly disclose any intention,
plan or arrangement inconsistent with the foregoing; or

 

(vi) advise, assist or encourage
any other persons in connection with any of the foregoing or to do any of the foregoing.

 

(b) The obligations of the Grantee under
this Section shall terminate in the event (i) any bona fide third party tender or exchange offer is publicly announced and commenced
by any person other than the Grantee or an affiliate of the Grantee and any other persons whose beneficial ownership of Common
Stock would be aggregated with the Grantee’s for purposes of Section 13(d) of the Exchange Act for at least 50% of the outstanding
shares of Common Stock that is conditioned upon the offeror receiving tenders for at least 50% of the outstanding shares of Common
Stock, or (ii) the Company enters into any agreement to merge or enter into a statutory share exchange with any person other than
the Grantee or an affiliate of the Grantee or any other persons whose beneficial ownership of Common Stock would be aggregated
with the Grantee’s for purposes of Section 13(d) of the Exchange Act following the closing of which the Common Stock would
cease to be registered under the Exchange Act. All of the provisions of this Section shall be reinstated and shall apply in full
force according to their terms in the event that: (A) if the provisions of Section 16(a) shall have terminated as the result of
clause (i), and such tender or exchange offer (as originally made or as amended or modified) shall have terminated without acquisition
by the offeror of at least 50% of the outstanding shares of Common Stock; or (B) if the provisions of Section 16(a) shall have
terminated as a result of clause (ii), such merger or share exchange agreement shall have been terminated prior to its closing.
Upon reinstatement of the provisions of Section 16(a), the provisions of this Section 16(b) shall continue to govern in the event
that any of the events described in this Section 16(b) shall subsequently occur.

 

17.        Severability.
In case any one or more of the provisions of this Restricted Stock Agreement shall be invalid or unenforceable in any respect,
the validity and enforceability of the remaining terms and provisions of this Restricted Stock Agreement shall not in any way be
affected or impaired thereby and the parties will attempt in good faith to agree upon a valid and enforceable provision which shall
be a commercially reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Restricted
Stock Agreement.

 

    	 	7	 

     

    

 

18.        Entire
Agreement. This Restricted Stock Agreement, together with the Vendor Agreement , constitutes the entire agreement between
the parties pertaining to the subject matter contained in it and supersedes all prior and contemporaneous agreements, representations
and undertakings of the parties, whether oral or written, with respect to such subject matter.

 

THE SALE OF THE SECURITIES WHICH ARE THE
SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE ISSUANCE
OF THE SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION THEREFOR PRIOR TO THE QUALIFICATION IS UNLAWFUL, UNLESS
THE SALE OF SECURITIES IS EXEMPT FROM THE QUALIFICATION BY SECTION 25100, 25102 OR 25105 OF THE CALIFORNIA CORPORATIONS CODE.
THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY CONDITIONED UPON THE QUALIFICATION BEING OBTAINED UNLESS THE SALE IS
SO EXEMPT.

 

By signing the cover page of this Agreement
or otherwise accepting this Restricted Stock Award in a manner approved by the Company, you agree to all the terms and conditions
contained in this Agreement.

 

    	 	8

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