Document:

Exhibit

Exhibit 10.5

Portions of this document have been redacted pursuant to Item 601(b)(10)(iv) of Regulation S-K because it is both not material and would likely cause competitive harm to the registrant if publicly disclosed.  Redacted portions are indicated with the notation “[***]”.
NOBLE CORPORATION

PERFORMANCE-VESTED CASH AWARD (INDUCEMENT AWARD) AGREEMENT

THIS PERFORMANCE-VESTED CASH AWARD (INDUCEMENT AWARD) AGREEMENT (this “Instrument”), effective as of July 1, 2020, by and between Noble Corporation plc, a public limited company incorporated under the laws of England and Wales (the “Company”), and Robert W. Eifler (“Employee”), evidences the performance-vested Cash Award (as defined in the Noble Corporation 2015 Omnibus Incentive Plan, as amended (the “Plan”)) granted hereunder to Employee and sets forth the restrictions, terms and conditions that apply thereto.

W I T N E S S E T H:
WHEREAS, the Compensation Committee (the “Committee”) of the Board of Directors of the Company (the “Board”) and the Board previously determined that Employee shall be granted one or more Inducement awards (the “Inducement Awards”) under the Plan totaling $1,800,000 and in connection with, and effective as of the May 21, 2020 date of Employee’s appointment to Chief Executive Officer of the Company (the “Transition Date”); 

WHEREAS, the Inducement Awards have not previously been granted to Employee, and the Committee and the Board have since determined that the Company’s 2020 compensation program shall be restructured to better align the compensation provided thereunder with the Company’s current circumstances and employee retention priorities (the “Compensation Restructuring”);

WHEREAS, Employee understands how the Compensation Restructuring shall relate to him, and in connection therewith, the Committee has determined that it is desirable to grant a portion of the Inducement Awards to Employee in the form of a performance-vested Cash Award pursuant to the Plan; and

WHEREAS, pursuant to the Plan, the Committee has determined that the performance-vested Cash Award so granted shall be subject to the restrictions, terms and conditions set forth in this Instrument, and Employee desires to accept such award subject to such terms and conditions; 

NOW, THEREFORE, a performance-vested Cash Award is hereby granted to Employee as follows: 

1.     Performance-Vested Cash Award. On the terms and conditions and subject to the restrictions, including forfeiture, hereinafter set forth, the Company hereby grants a $990,000 Cash Award (the “Awarded Cash Amount”) to Employee pursuant to the Plan. The Awarded Cash Amount is being granted to Employee effective as of the date of this Instrument (the “Effective Date”), and shall be paid to Employee as soon as practicable following the grant thereof, but shall remain subject to service-based and performance-based clawback restrictions pursuant to the Plan and this Instrument (“Clawback Restrictions”).  Pursuant to such 

Exhibit 10.5

Clawback Restrictions, the Awarded Cash Amount shall not be deemed to be vested, unless and until such time that the Clawback Restrictions shall lapse as set forth below.  

2.     Vesting and Clawback Restrictions. Determinations regarding vesting and the corresponding lapse of Clawback Restrictions under this Instrument shall relate to the portion of the Awarded Cash Amount that remains outstanding under this Instrument as set forth below (the “Outstanding Cash Amount”). 
(a)    Service-Based Clawback Restrictions. No portion of the Awarded Cash Amount shall vest, and Employee shall be obligated to repay the Awarded Cash Amount to the Company (i.e., the Clawback Restrictions shall apply to the Awarded Cash Amount), upon the termination of Employee’s employment with the Company (including any of its affiliates) during the Restricted Period (as defined in the attached Schedule I) for any reason other than (i) death of Employee, (ii) Disability of Employee, (iii) the Company’s termination of Employee’s employment other than for Cause (as defined below) or (iv) Employee’s voluntary termination of employment due to Good Reason (as defined below). Any such event of termination described in clauses (i) through (iv) of the preceding sentence is referred to herein as “Qualified Termination” and any such termination that is not a result of a Qualified Termination is referred to herein as a “Service Clawback Trigger Event”. Any repayment required pursuant to this Section 2(a) shall be paid by Employee to the Company within fifteen days after receipt by Employee of the associated repayment instructions relating to the Service Clawback Trigger Event, it being understood that repayment instructions will be provided to Employee promptly following the occurrence of such Service Clawback Trigger Event. No vesting determinations shall be made with respect to the Outstanding Cash Amount under Section 2(b) or (c) below after the occurrence of such Service Clawback Trigger Event and any prior determinations made under such Sections shall be deemed void and without any effect.  

(b)    Performance-Based Clawback Restrictions. 
(i)The applicable performance-related vesting and corresponding lapse of the Clawback Restrictions of the Outstanding Cash Amount as applicable with respect to the remaining 2020 goals and performance measures shall (as further described below) be determined and certified, confirmed or approved in writing by the Committee. The Committee shall make the foregoing determinations as soon as practicable after the end of each “Performance Cycle” as defined in the attached Schedule I, but in no event later than 60 days after the end of such Performance Cycle (the “Determination Date”).
(ii)Subject to all applicable Clawback Restrictions herein, the portion of any Outstanding Cash Amount that shall vest, if at all, and for which the corresponding Clawback Restrictions shall lapse, shall be based on the applicable “Final Performance Percentage” that the Committee determines and certifies, confirms or approves as being achieved under the “Performance Measures” as further described in the attached Schedule I. 
(iii)If at least a “Threshold” performance level (as described in Annex I to Schedule I) is achieved during the Performance Cycle (“Qualifying Performance”), then, subject to all applicable Clawback Restrictions herein, some portion of the Outstanding Cash Amount determined under the attached Schedule I (“Certified Cash Amount”) shall be eligible to vest and the corresponding Clawback Restrictions shall lapse with respect to such portion, in each case as determined pursuant to Annex I and Annex II to Schedule I. For the avoidance of doubt, if Qualifying Performance is not achieved with respect to any of the Performance Cycles, then no portion of the Outstanding Cash Amount shall vest with respect to the Performance Cycles and Employee shall be obligated to repay the entire Outstanding Cash 

Exhibit 10.5

Amount to the Company (i.e., the Clawback Restrictions shall apply to the entire Outstanding Cash Amount). 

(iv)If Qualifying Performance is achieved with respect to a Performance Cycle as determined pursuant to Annex I to Schedule I, but the “Final Performance Percentage” (as further described in Annex I to Schedule I) is less than 100%, then, subject to all applicable Clawback Restrictions set forth herein, (w) less than 100% of the Outstanding Cash Amount related to the Performance Cycle shall vest, (x) the Clawback Restrictions shall lapse with respect to such vested portion of the Outstanding Cash Amount, (y) the Clawback Restrictions shall apply to the remainder of the Outstanding Cash Amount that does not vest and (z) Employee shall be obligated to repay the applicable portion of the Outstanding Cash Amount that does not vest to the Company (i.e., based on the extent to which such Outstanding Cash Amount exceeds the portion thereof that vests as the Certified Cash Amount). 
(v)Any repayment required pursuant to this Section 2(b) shall be paid by Employee to the Company within fifteen days after receipt by Employee of the associated repayment instructions relating to the Determination Date for the final Performance Cycle, it being understood that repayment instructions will be provided to Employee promptly following the occurrence of such Determination Date.  

(c)    Qualified Termination Clawback Restrictions. If Employee’s employment terminates during the Restricted Period due to a Qualified Termination, then, if applicable, a portion of the Outstanding Cash Amount shall not vest and Employee shall be obligated to repay such portion of the Outstanding Cash Amount to the Company (i.e., the Clawback Restrictions shall apply to such portion of the Outstanding Cash Amount) (the “Excluded Amount”). The Excluded Amount shall be determined by multiplying the Outstanding Cash Amount by a fraction, (x) the numerator of which is the number of calendar months remaining in 2020 that end after the date of Employee’s Qualified Termination, and (y) the denominator of which is 6. Any repayment required pursuant to this Section 2(c) shall be paid by Employee to the Company within fifteen days after receipt by Employee of the associated repayment instructions relating to Employee’s Qualified Termination (the “Early Clawback Trigger Event”), it being understood that repayment instructions will be provided to Employee promptly following the occurrence of such Early Clawback Trigger Event (and references to Employee in this sentence include the parties, as applicable, described in Section 8 below). Thereafter, the Outstanding Cash Amount shall be reduced by an amount equal to the Excluded Amount, and such Outstanding Cash Amount, as so reduced, shall remain eligible for vesting under this Instrument as the Certified Cash Amount subject to the achievement of Qualifying Performance. 

For purposes of this Instrument, transfers of employment without interruption of service between or among the Company and any of its affiliates shall not be considered a termination of employment. 

3.     Definitions. 
(a)    For purposes of this Instrument, “Cause” shall mean (i) the willful and continued failure of Employee to perform substantially Employee’s duties for the Company (other than any such failure resulting from bodily injury or disease or any other incapacity due to mental or physical illness); or (ii) the willful engaging by Employee in illegal conduct or gross misconduct that is materially and demonstrably detrimental to the Company and/or its affiliates, monetarily or otherwise.  

Exhibit 10.5

For purposes of this provision, no act, or failure to act, on the part of Employee shall be considered “willful” unless done, or omitted to be done, by Employee in bad faith or without reasonable belief that Employee’s action or omission was in the best interests of the Company.  Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by Employee in good faith and in the best interests of the Company and its affiliates.  

(b)    For purposes of this Instrument, “Good Reason” shall mean any of the following (without Employee’s express written consent): (i) a material diminution in Employee’s base salary other than any diminution effected as a part of, and consistent with, a general reduction in salaries also applicable to other similarly situated employees, or (ii) the Company’s requiring Employee to be based at any office or location that is more than 50 miles from Employee’s principal office or location other than such a change in office or location where there is no material diminution in Employee’s general overall responsibility.  Notwithstanding the foregoing, Employee shall not have the right to terminate Employee’s employment hereunder for Good Reason unless (x) within 60 days of the initial existence of the condition or conditions giving rise to such right Employee provides written notice to the Corporate Secretary of the Company of the existence of such condition or conditions, and (y) the Company fails to remedy such condition or conditions within 30 days following the receipt of such written notice (the “Cure Period”).  If any such condition is not remedied within the Cure Period, Employee must terminate his employment with the Company within a reasonable period of time, not to exceed 30 days, following the end of the Cure Period.

4.     Withholding Taxes. The Company may withhold from any amounts payable under this Instrument such federal, state, local, foreign or other taxes of any kind that are required to be withheld pursuant to any applicable law or regulation.

5.     Non-Assignability. This Instrument is not assignable or transferable by Employee.  No right or interest of Employee under this Instrument or the Plan may be assigned, transferred or alienated, in whole or in part, either directly or by operation of law (except pursuant to a qualified domestic relations order within the meaning of Section 414(p) of the Code or a similar domestic relations order under applicable foreign law, either in such form as is acceptable to the Committee), and no such right or interest shall be liable for or subject to any debt, obligation or liability of Employee. 

6.     Other Defined Terms; Plan Provisions. Unless the context clearly indicates otherwise, the capitalized terms used (and not otherwise defined) in this Instrument shall have the meanings assigned to them under the provisions of the Plan.  The Awarded Cash Amount subject to this Instrument shall be governed by and subject to all applicable provisions of the Plan.  This Instrument is subject to the Plan, and the Plan shall govern where there is any inconsistency between the Plan and this Instrument. 

7.     Governing Law. This Instrument shall be governed by and construed and enforced in accordance with the laws of the State of Texas, without regard to the principles of conflicts of laws thereof, except to the extent Texas law is preempted by federal law of the United States or by the laws of England and Wales. 

Exhibit 10.5

8.     Binding Effect. This Instrument shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors and permitted assigns. 

9.     Prior Communications; Amendment. This Instrument, together with any Schedules, Exhibits and Annexes and any other writings referred to herein or delivered pursuant hereto, evidences the Award granted hereunder, which shall be subject to the restrictions, terms and conditions hereof, and supersedes all prior agreements and understandings, whether written or oral, between the parties with respect to the subject matter hereof. To the fullest extent provided by applicable law, this Instrument may only be amended, modified and supplemented in accordance with the applicable terms and conditions set forth in the Plan.

10.     Notices. All notices and other communications hereunder shall be in writing and shall be deemed given if directed in the manner specified below, to the parties at the following addresses and numbers: 

(a)     If to the Company, when delivered by hand, confirmed fax or mail (registered or certified mail with postage prepaid) to: 

Noble Corporation plc 
c/o Noble Drilling Services Inc. 
13135 South Dairy Ashford, Suite 800
Sugar Land, Texas 77478-3686
Attention: Corporate Secretary
Fax: 281-491-2092

With a copy to: 

Chairman of Compensation Committee 
of Noble Corporation plc
c/o Noble Drilling Services Inc. 
13135 South Dairy Ashford, Suite 800
Sugar Land, Texas 77478-3686
Fax: 281-491-2092

(b)    If to Employee, when delivered by hand, confirmed fax or mail (registered or certified mail with postage prepaid) to: 

The last known address and number for Employee as maintained in the personnel records of the Company 

Exhibit 10.5

For purposes of this Section 10, the Company shall provide Employee with written notice of any change of the Company’s address, and Employee shall be responsible for providing the Company with proper notice of any change of Employee’s address pursuant to the Company’s personnel policies, and from and after the giving of such notice the address or addresses therein specified will be deemed to be the address of such party for the purposes of giving notice hereunder.

11.     Severability. If any provision of this Instrument is held to be unenforceable, this Instrument shall be considered divisible and such provision shall be deemed inoperative to the extent it is deemed unenforceable, and in all other respects the restrictions, terms and conditions set forth in this Instrument shall remain in full force and effect; provided, however, that if any such provision may be made enforceable by limitation thereof, then such provision shall be deemed to be so limited and shall be enforceable to the maximum extent permitted by applicable law. 

12.     Descriptive Headings. The descriptive headings herein are inserted for convenience of reference only, do not constitute a part of this Instrument, and shall not affect in any manner the meaning or interpretation of this Instrument. 

13.     Gender. Pronouns in masculine, feminine and neuter genders shall be construed to include any other gender, and words in the singular form shall be construed to include the plural and vice versa, unless the context otherwise requires. 

14.     References. The words “this Instrument,” “herein,” “hereof,” “hereby,” “hereunder” and words of similar import refer to this Instrument as a whole and not to any particular subdivision unless expressly so limited. Whenever the words “include,” “includes” and “including” are used in this Instrument, such words shall be deemed to be followed by the words “without limitation.” 

15.     Compliance with Code Section 409A. The compensation payable to or with respect to Employee pursuant to the Awarded Cash Amount is intended to be compensation that is not subject to the tax imposed by Code Section 409A, and this Instrument shall be administered and construed to the fullest extent possible to reflect and implement such intent. 

Exhibit 10.5

IN WITNESS WHEREOF, the Company and Employee have entered into this Instrument as of the date first above written.
NOBLE CORPORATION PLC

By:    /s/ William E. Turcotte    
William E. Turcotte
Senior Vice President, General Counsel
and Corporate Secretary

EMPLOYEE

/s/ Robert W. Eifler                        
Robert W. Eifler

Exhibit 10.5

SCHEDULE I
NOBLE CORPORATION
KEY TERMS FOR THE 2020 PERFORMANCE CYCLE
PERFORMANCE-VESTED CASH AWARD (INDUCEMENT AWARD)

The Committee has determined and specifies that the following Performance Cycle, Restricted Period and Performance Measures (each as defined below), shall be applied with respect to the Awarded Cash Amount:
1.    Performance Cycle.  Each of the third and fourth calendar quarters for 2020 shall be a “Performance Cycle”.  
2.    Restricted Period.  The “Restricted Period” applicable to this Instrument shall begin on the Transition Date and shall end as of the later of (i) the first anniversary of the Transition Date (the “One-Year Period”), or (ii) in the event the Company is subject to chapter 11 bankruptcy protection under the U.S. Bankruptcy Code as of the close of the One-Year Period, such time that the bankruptcy court (x) approves the Company’s chapter 11 plan of reorganization, (y) converts the Company’s chapter 11 plan of reorganization to a chapter 7 liquidation proceeding, or (z) dismisses the Company’s bankruptcy proceeding, whichever is earliest and without regard to any appeal of any order of the bankruptcy court in connection with clauses (x), (y) or (z) above.  
3.    Performance Measures.  The “Performance Measures” applicable to this Instrument consist of the EBITDA Measure, the Unpaid Downtime Measure and the Safety Measure (each as defined in Annex I below).  The level of performance under each of these Performance Measures shall be determined with respect to each of the Performance Cycles in order to establish (i) the Certified Cash Amount, if any, and (ii) the extent to which the Outstanding Cash Amount shall vest and the corresponding lapse of Clawback Restrictions shall apply.  Each Performance Measure shall be evaluated to determine its respective performance percentage as set forth on Annex I below.  As further discussed in paragraph 4 below, the performance percentages that apply for the Performance Measures under both Performance Cycles shall be blended on a weighted average basis for purposes of clauses (i) and (ii) above.
4.    Vesting Calculation.  As further described in Annex II below, the vesting calculation for the 50% portion of the Outstanding Cash Amount that relates to a Performance Cycle (“PC Tranche Amount”) shall be based on, as applicable, (i) the “Incremental Performance Percentage” for the Performance Cycle, (ii) the “Blended Performance Percentage” with respect to both Performance Cycles, and (iii) the “Final Performance Percentage” that relates to each Performance Cycle, in each case, as determined in accordance with Annex II below.  

Exhibit 10.5

ANNEX I TO SCHEDULE I
2020 Performance Cycle
Performance-Vested Cash Award (Inducement Award) 
Goals and Performance Measures
With respect to each of the Performance Cycles, performance relative to the following goals will be applied in determining the Certified Cash Amount for 2020. Achievement at levels between the points shown below will be determined via linear interpolation.
		
	•
	EBITDA Measure - Financial

	
				
	EBITDA Measure (50% Weighting Separately for Q3 and Q4)

	Level of Achievement
	Threshold
	Target
	Maximum

	OCA Multiple
	0.50
	1.00
	2.00

	Q3 2020 Goal
	[***]
	[***]
	[***]

	Q4 2020 Goal
	[***]
	[***]
	[***]

The EBITDA Measure relates to EBITDA, which is defined as the Company’s earnings before the deduction of interest, tax, depreciation and amortization expenses, subject to adjustment to exclude extraordinary gains or losses, including the exclusion of restructuring related expenses and significant litigation expenses.  
		
	•
	Unpaid Downtime Measure - Operational

	
				
	Downtime Measure (25% Weighting Separately for Q3 and Q4)

	Level of Achievement
	Threshold
	Target
	Maximum

	OCA Multiple
	0.50
	1.00
	2.00

	Q3 / Q4 2020 Goal
	3.5%
	2.75%
	2%

The Unpaid Downtime Measure is calculated based on the total number of unpaid repair days divided by the total operating days.  Any unpaid days that may occur relating to or as a result of the COVID-19 pandemic are to be excluded when calculating the downtime percentage.

		
	•
	Safety Measure - Other

	
				
	Safety Measure (25% Weighting Separately for Q3 and Q4)

	Level of Achievement
	Threshold
	Target
	Maximum

	OCA Multiple
	0.50
	1.00
	2.00

	Q3 / Q4 2020 Goal TRIR Rate
	0.65
	0.50
	0.35

The Safety Measure is based on the Total Recordable Incident Rate (“TRIR”) which is calculated based upon the total number of recordable work-related injuries or illnesses multiplied by 200,000 and then divided by hours worked, pursuant to the guidelines set forth by the International Association of Drilling Contractors (the “IADC”).

Exhibit 10.5

ANNEX II TO SCHEDULE I
2020 Performance Cycle
Performance-Vested Cash Award (Inducement Award) 

Performance Percentages for the Performance Cycles

Incremental Performance Percentage. With respect to each Performance Cycle and on the Determination Date related thereto, the Committee shall determine the applicable Incremental Performance Percentage that relates to such Performance Cycle, as follows: 
	
				
	Incremental Performance Percentage Determination

	 
	Weighting
(A)
	OCA Multiple (Interpolated)
(B)
	Performance Percentage
(A × B)

	EBITDA Measure 
	50%
	[Based on Actual Performance]
	[Percentage Result 1]

	Unpaid Downtime Measure 
	25%
	[Based on Actual Performance]
	[Percentage Result 2]

	Safety Measure 
	25%
	[Based on Actual Performance]
	[Percentage Result 3]

	Totals:
	100%
	N/A
	Sum of Results 1 - 3

The “Sum of Results 1-3” in the chart above shall equal the Incremental Performance Percentage, it being understood that, notwithstanding such “Sum of Results 1-3”, in no event shall the Incremental Performance Percentage exceed 100%.

Blended Performance Percentage. With respect to the Determination Date that relates to the final Performance Cycle, the Committee shall also determine the applicable Blended Performance Percentage that relates to both Performance Cycles, as follows:
	
				
	Blended Performance Percentage Determination

	 
	Weighting
(A)
	OCA Multiple (Interpolated)
(B)
	Performance Percentage
(A × B)

	EBITDA Measure Q3
	25%
	[Based on Actual Performance]
	[Percentage Result 1]

	Unpaid Downtime Measure Q3
	12.5%
	[Based on Actual Performance]
	[Percentage Result 2]

	Safety Measure Q3
	12.5%
	[Based on Actual Performance]
	[Percentage Result 3]

	EBITDA Measure Q4
	25%
	[Based on Actual Performance]
	[Percentage Result 4]

	Unpaid Downtime Measure Q4
	12.5%
	[Based on Actual Performance]
	[Percentage Result 5]

	Safety Measure Q4
	12.5%
	[Based on Actual Performance]
	[Percentage Result 6]

	Totals:
	100%
	N/A
	Sum of Results 1 - 6

The “Sum of Results 1-6” in the chart above shall equal the Blended Performance Percentage, it being understood that, notwithstanding such “Sum of Results 1-6”, in no event shall the Blended Performance Percentage exceed 100%.

Final Performance Percentage.  With respect to each Performance Cycle, the Final Performance Percentage shall be applied to determine the extent to which the related PC Tranche Amount shall vest and the corresponding performance related Clawback Restrictions applicable thereto shall lapse.  In connection with the foregoing, the Final Performance Percentage shall be based on, as applicable, the Incremental Performance Percentage for such Performance Cycle or the Blended Performance Percentage, whichever is closest to or equals 100% (assuming either the Incremental Performance Percentage or the Blended Performance Percentage is less than 100%).Exhibit 4.1

 

Warrant No. 2020-__

 

NEITHER THE WARRANT NOR THE SHARES ISSUABLE
UPON EXERCISE OF THE WARRANT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR UNDER THE SECURITIES LAWS OF ANY STATES. THE WARRANT AND THE SHARES ISSUABLE UPON EXERCISE OF THE WARRANT ARE SUBJECT TO RESTRICTIONS
ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND THE APPLICABLE
STATE SECURITIES LAWS. UNLESS SOLD PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, THE ISSUER OF THESE
SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT REGISTRATION IS
NOT REQUIRED UNDER THE SECURITIES ACT.

 

	 	Right to Purchase _____________
	 	Shares of Common Stock, par value $.0001 per share

 

STOCK PURCHASE WARRANT

 

THIS CERTIFIES THAT, for value received,
the person named below (the “Holder”) or its registered assigns, is entitled to purchase from Ipsidy Inc., a
Delaware corporation (the “Company”), at any time or from time to time during the period specified in Paragraph 2
hereof, the number of fully paid and nonassessable shares of the Company’s Common Stock, par value $.0001 per share (the
“Common Stock”), at an exercise price per share (the “Exercise Price”) each as are set forth in the Warrant
details below.

 

Warrant Information.

 

	 	(a)	Date of Warrant:	___________, 2020
	 	(b)	Holder:	 
	 	(c)	Holder Address:	 
	 	 	 	 
	 	(d)	Number of Warrant Shares:	____________________
	 	(e)	Exercise Price:	$0.15
	 	(f)	Expiration Date:	October 31, 2025

 

The term “Warrant Shares,” as
used herein, refers to the shares of Common Stock purchasable hereunder. The Warrant Shares and the Exercise Price are subject
to adjustment as provided in Paragraph 4 hereof.

 

This Warrant is subject to the following
terms, provisions, and conditions:

 

1. Manner
of Exercise; Issuance of Shares; Payment for Shares.

 

		a.	Subject to the provisions hereof, this Warrant may be exercised by the Holder, in whole or in part, by the surrender of this
Warrant, together with a completed notice of exercise in the form attached hereto (the “Notice of Exercise”), to the
Company during normal business hours on any business day at the Company’s principal executive offices (or such other office
or agency of the Company as it may designate by notice to the Holder), and upon payment to the Company in cash, by certified or
official bank check or by wire transfer for the account of the Company of the Exercise Price for the Warrant Shares specified in
the Notice of Exercise. The Warrant Shares so purchased shall be deemed to be issued to the Holder or such Holder’s designee,
as the record owner of such Shares, as of the close of business on the date on which this Warrant shall have been surrendered,
the completed Notice of Exercise shall have been delivered, and payment shall have been made for such Shares as set forth above.
The Company will direct the Company’s Transfer Agent to issue to the Holder the Warrant Shares to which Holder is entitled
within a reasonable time, not exceeding three (3) business days, after this Warrant shall have been so exercised. If this Warrant
shall have been exercised only in part, then, unless this Warrant has expired, the Company shall, at its expense, at the time of
delivery of such certificates or other evidence, deliver to the Holder a new Warrant representing the number of Warrant Shares
with respect to which this Warrant shall not then have been exercised.

 

     

     

    

 

		b.	All Warrant Shares will be issued in “Book Entry” form and no certificates will be
issued, unless the Warrant Shares are then registered under the Securities Act, in which case they may be issued to the Holder
by DWAC, upon Holder providing the necessary information. Unless the Warrant Shares are then so registered, the Warrant Shares
will be “restricted securities” under applicable securities laws and pursuant to these laws, Holder must hold the Warrant
Shares indefinitely unless they are registered with the SEC and qualified by state authorities, or an exemption from such registration
and qualification requirements is available.  Holder acknowledges that the Company has no obligation to register or qualify
the Warrant Shares for resale. 

 

		c.	Unless the Warrant Shares are then registered under the Securities Act, the Warrant Shares shall
bear a legend substantially to the following effect (as well as any legends required by applicable state corporate law or federal
or state securities laws):

 

 “THESE SHARES HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (“THE ACT”) AND ARE “RESTRICTED SECURITIES” AS THAT
TERM IS DEFINED IN RULE 144 UNDER THE ACT. THESE SHARES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED
EXCEPT (I) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT, OR (II) UNLESS THE ISSUER HAS RECEIVED AN OPINION OF
COUNSEL SATISFACTORY TO IT THAT THESE SHARES MAY BE SOLD PURSUANT TO RULE 144 OR ANOTHER AVAILABLE EXEMPTION UNDER THE ACT AND
THE RULES AND REGULATIONS THEREUNDER.”

 

To ensure compliance with the restrictions
referred to herein, the Company may issue appropriate “stop transfer” instructions to its transfer agent.

 

		d.	Notwithstanding anything in this Warrant to the contrary, in no event shall the Holder be entitled
to exercise a number of Warrants (or portions thereof) in excess of the number of Warrants (or portions thereof) upon exercise
of which the sum of (i) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares
of Common Stock which may be deemed beneficially owned through the ownership of the unexercised Warrants and the unexercised or
unconverted portion of any other securities of the Company subject to a limitation on conversion or exercise analogous to the limitation
contained herein) and (ii) the number of shares of Common Stock issuable upon exercise of the Warrants (or portions thereof) with
respect to which the determination described herein is being made, would result in beneficial ownership by the Holder and its affiliates
of more than 4.9% of the outstanding shares of Common Stock. For purposes of the immediately preceding sentence, beneficial ownership
shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and Regulation 13D-G thereunder,
except as otherwise provided in clause (i) of the preceding sentence. Notwithstanding anything to the contrary contained herein,
the limitation on exercise of this Warrant set forth herein may not be amended without the written consent of the Holder and the
Company.

 

    2

     

    

 

2. Period
of Exercise. This Warrant is exercisable at any time or from time to time on or after the date on which this Warrant is
issued and delivered and before 6:00 p.m., New York, New York time on the fifth (5th) anniversary of the date of issuance
(the “Exercise Period”).

 

3.
Certain Agreements of the Company. The Company hereby covenants and agrees as follows:

 

		a.	Shares to be Fully Paid. All Warrant Shares will, upon issuance in accordance with
the terms of this Warrant, be validly issued, fully paid, and nonassessable and free from all taxes, liens, and charges with respect
to the issue thereof.

 

		b.	Reservation of Shares. During the Exercise Period, the Company shall at all times
have authorized, and reserved for the purpose of issuance upon exercise of this Warrant, a sufficient number of shares of Common
Stock to provide for the exercise of this Warrant.

 

		c.	Successors and Assigns. This Warrant will be binding upon any entity succeeding to
the Company by merger, consolidation, or acquisition of all or substantially all the Company’s assets.

 

4.
Adjustment Provisions. During the Exercise Period, the Exercise Price and the number of Warrant Shares shall
be subject to adjustment from time to time as provided in this Paragraph 4. In the event that any adjustment of the Exercise Price
as required herein results in a fraction of a cent, such Exercise Price shall be rounded up to the nearest cent.

 

		a.	Subdivision or Combination of Common Stock. If the Company at any time subdivides
(by any stock split, stock dividend, recapitalization, reorganization, reclassification or otherwise) the shares of Common Stock
acquirable hereunder into a greater number of shares, then, after the date of record for effecting such subdivision, the Exercise
Price in effect immediately prior to such subdivision will be proportionately reduced. If the Company at any time combines (by
reverse stock split, recapitalization, reorganization, reclassification or otherwise) the shares of Common Stock acquirable hereunder
into a smaller number of shares, then, after the date of record for effecting such combination, the Exercise Price in effect immediately
prior to such combination will be proportionately increased.

 

		b.	Adjustment in Number of Shares. Upon each adjustment of the Exercise Price pursuant
to the provisions of this Paragraph 4(a), the number of shares of Common Stock issuable upon exercise of this Warrant shall be
adjusted by multiplying a number equal to the Exercise Price in effect immediately prior to such adjustment by the number of shares
of Common Stock issuable upon exercise of this Warrant immediately prior to such adjustment and dividing the product so obtained
by the adjusted Exercise Price.

 

    3

     

    

 

		c.	Consolidation, Merger or Sale. In case of any consolidation of the Company with,
or merger of the Company into any other corporation, or in case of any sale or conveyance of all or substantially all of the assets
of the Company other than in connection with a plan of complete liquidation of the Company, then as a condition of such consolidation,
merger or sale or conveyance, adequate provision will be made whereby the Holder will have the right to acquire and receive upon
exercise of this Warrant in lieu of the shares of Common Stock immediately theretofore acquirable upon the exercise of this Warrant,
such shares of stock, securities or assets as may be issued or payable with respect to or in exchange for the number of shares
of Common Stock immediately theretofore acquirable and receivable upon exercise of this Warrant had such consolidation, merger
or sale or conveyance not taken place. In any such case, the Company will make appropriate provision to insure that the provisions
of this Paragraph 4 hereof will thereafter be applicable as nearly as may be in relation to any shares of stock or securities thereafter
deliverable upon the exercise of this Warrant. The Company will not effect any consolidation, merger or sale or conveyance unless
prior to the consummation thereof, the successor corporation (if other than the Company) assumes by written instrument the obligations
under this Paragraph 4 and the obligations to deliver to the Holder such shares of stock, securities or assets as, in accordance
with the foregoing provisions, the Holder may be entitled to acquire.

 

5.
Issue Tax. The issuance of the Warrant Shares upon the exercise of this Warrant shall be made without charge
to the Holder or such shares for any issuance tax or other costs in respect thereof, provided that the Company shall not be required
to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of any certificate in a name
other than the Holder.

 

6.
No Rights or Liabilities as a Shareholder. This Warrant shall not entitle the Holder to any voting rights or
other rights as a shareholder of the Company. No provision of this Warrant, in the absence of affirmative action by the Holder
to purchase Warrant Shares, and no mere enumeration herein of the rights or privileges of the Holder, shall give rise to any liability
of such Holder for the Exercise Price or as a shareholder of the Company, whether such liability is asserted by the Company or
by creditors of the Company.

 

7.
Transfer, Exchange, and Replacement of Warrant.

 

		a.	Procedure on Transfer. This Warrant and the rights granted to the Holder are transferable,
in whole or in part, upon surrender of this Warrant, together with a properly executed assignment in the form attached hereto,
at the office or agency of the Company. Until due presentment for registration of transfer on the books of the Company, the Company
may treat the registered Holder as the owner and holder of this Warrant for all purposes, and the Company shall not be affected
by any notice to the contrary.

 

		b.	Warrant Exchangeable for Different Denominations. This Warrant is exchangeable, upon
the surrender hereof by the Holder at the office or agency of the Company, for new Warrants of like tenor representing in the aggregate
the right to purchase the number of shares of Common Stock which may be purchased hereunder, each of such new Warrants to represent
the right to purchase such number of shares as shall be designated by the Holder at the time of such surrender.

 

		c.	Replacement of Warrant. Upon receipt of evidence reasonably satisfactory to the Company
of the loss, theft, destruction, or mutilation of this Warrant and, in the case of any such loss, theft, or destruction, upon delivery
of an indemnity agreement reasonably satisfactory in form and amount to the Company, or, in the case of any such mutilation, upon
surrender and cancellation of this Warrant, the Company, at its expense, will execute and deliver, in lieu thereof, a new Warrant
of like tenor.

 

    4

     

    

 

		d.	Cancellation. Upon the surrender of this Warrant in connection with any transfer,
exchange, or replacement as provided in this Paragraph 7, this Warrant shall be promptly canceled by the Company.

 

		e.	Register. The Company shall maintain, at its principal executive offices (or such
other office or agency of the Company as it may designate by notice to the Holder), a register for this Warrant, in which the Company
shall record the name and address of the person in whose name this Warrant has been issued, as well as the name and address of
each transferee and each prior owner of this Warrant.

 

		f.	Exercise or Transfer Without Registration. If, at the time of the surrender of this
Warrant in connection with any exercise, transfer, or exchange of this Warrant, this Warrant (or, in the case of any exercise,
the Warrant Shares issuable hereunder), shall not be registered under the Securities Act of 1933, as amended (the “Securities
Act”) and under applicable state securities or blue sky laws, the Company may require, as a condition of allowing such exercise,
transfer, or exchange, (i) that the Holder or transferee of this Warrant, as the case may be, furnish to the Company a written
opinion of counsel, which opinion and counsel are acceptable to the Company, to the effect that such exercise, transfer, or exchange
may be made without registration under said Act and under applicable state securities or blue sky laws, (ii) that the Holder or
transferee execute and deliver to the Company an investment representation letter in form and substance acceptable to the Company
and (iii) that the transferee be an “accredited investor” as defined in Rule 501(a) promulgated under the Securities
Act and provides representations to that effect in form and substance acceptable to the Company; provided that no such opinion,
letter or status as an “accredited investor” shall be required in connection with a transfer pursuant to Rule 144 under
the Securities Act. The first holder of this Warrant, by taking and holding the same, represents to the Company that such holder
is acquiring this Warrant for investment and not with a view to the distribution thereof. In no event shall the Holder be permitted
to assign the Warrant unless provided with express written consent by the Company.

 

8.
Notices. All notices, requests, and other communications required or permitted to be given or delivered hereunder
to the Holder shall be in writing, and shall be personally delivered, or shall be sent by certified or registered mail or by recognized
overnight mail courier, postage prepaid and addressed, to such holder at the address shown for such holder on the books of the
Company, or at such other address as shall have been furnished to the Company by notice from such holder. All notices, requests,
and other communications required or permitted to be given or delivered hereunder to the Company shall be in writing, and shall
be personally delivered, or shall be sent by certified or registered mail or by recognized overnight mail courier, postage prepaid
and addressed, to the office of the Company at the address set forth in the Purchase Agreement, or at such other address as shall
have been furnished to the Holder by notice from the Company. Any such notice, request, or other communication may be sent by
facsimile, but shall in such case be subsequently confirmed by a writing personally delivered or sent by certified or registered
mail or by recognized overnight mail courier as provided above. All notices, requests, and other communications shall be deemed
to have been given either at the time of the receipt thereof by the person entitled to receive such notice at the address of such
person for purposes of this Paragraph 8, or, if mailed by registered or certified mail or with a recognized overnight mail courier
upon deposit with the United States Post Office or such overnight mail courier, if postage is prepaid and the mailing is properly
addressed, as the case may be.

 

    5

     

    

 

9.
Governing Law. This Warrant shall be enforced, governed by and construed in accordance with the laws of the
State of New York applicable to agreements made and to be performed entirely within such state, without regard to the principles
of conflict of laws. The parties hereto hereby submit to the exclusive jurisdiction of the United States federal courts located
in Nassau County, New York with respect to any dispute arising under this Warrant, the agreements entered into in connection herewith
or the transactions contemplated hereby or thereby. Both parties irrevocably waive the defense of an inconvenient forum to the
maintenance of such suit or proceeding. Both parties further agree that service of process upon a party mailed by first class
mail shall be deemed in every respect effective service of process upon the party in any such suit or proceeding. Nothing herein
shall affect either party’s right to serve process in any other manner permitted by law. Both parties agree that a final
non-appealable judgment in any such suit or proceeding shall be conclusive and may be enforced in other jurisdictions by suit
on such judgment or in any other lawful manner. The party which does not prevail in any dispute arising under this warrant shall
be responsible for all fees and expenses, including attorneys’ fees, incurred by the prevailing party in connection with
such dispute.

 

10. Miscellaneous.

 

		a.	Amendments. This Warrant and any provision hereof may only be amended by an instrument
in writing signed by the Company and the Holder.

 

		b.	Descriptive Headings. The descriptive headings of the several paragraphs of this
Warrant are inserted for purposes of reference only, and shall not affect the meaning or construction of any of the provisions
hereof.

 

		c.	Remedies. The Company acknowledges that a breach by it of its obligations hereunder
will cause irreparable harm to the Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly,
the Company acknowledges that the remedy at law for a breach of its obligations under this Warrant will be inadequate and agrees,
in the event of a breach or threatened breach by the Company of the provisions of this Warrant, that the Holder shall be entitled,
in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction
or injunctions restraining, preventing or curing any breach of this Warrant and to enforce specifically the terms and provisions
thereof, without the necessity of showing economic loss and without any bond or other security being required.

 

IN WITNESS WHEREOF,
the Company has caused this Warrant to be signed by its duly authorized officer.

 

	 	IPSIDY INC.
	 	 	 
	 	By:	 
	 	 	Phillip L. Kumnick
	 	 	Chief Executive Officer

 

Dated as of _____________, 2020

 

    6

     

    

 

FORM OF NOTICE OF EXERCISE

 

Dated: ________ __, 20__

 

		To:	______________________

 

The undersigned, pursuant
to the provisions set forth in the within Warrant, hereby agrees to purchase ________ shares of Common Stock covered by such Warrant.
The undersigned intends that payment of the Exercise Price shall be made as follows (check one and initial)

 

_____ a cash exercise
in the amount of $________ by means of check enclosed herewith.

 

_____ a cash exercise
in the amount of $________ by means of wire transfer to Company’s bank account within two banking days of the date hereof.

 

Please issue such shares
of Common Stock in the name of and pay any cash for any fractional share to:

 

	 	Name:	    
	 	 	 
	 	Signature: 	 
	 	Address:	 
	 	 	 
	 	 	 
	 	Note:	The above signature should correspond exactly with the name on the face of the within Warrant, if applicable.

 

     

     

    

 

FORM OF ASSIGNMENT

 

FOR VALUE RECEIVED,
the undersigned hereby sells, assigns, and transfers all the rights of the undersigned under the within Warrant, with respect to
the number of shares of Common Stock covered thereby set forth hereinbelow, to:

 

	Name of Assignee	 	Address	 	No of Shares
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

, and hereby irrevocably constitutes and
appoints ___________________________________ as agent and attorney-in-fact to transfer said Warrant on the books of the within-named
corporation, with full power of substitution in the premises.

 

Dated:  ________ __,
20__

 

	In the presence of:	 	 
	 
	 	Name:	 
	 
	 	Signature: 	 
	 	Title of Signing Officer or Agent (if any):

 

	 	 	 
	 	Address: 	    
	 	 	 
	 	 	                                                
	 	Note:  The above signature should correspond exactly with the name on the face of the within Warrant, if applicable

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