Document:

Exhibit 10.12

    

     

    

    TENDER AND SUPPORT AGREEMENT

     

    TENDER AND SUPPORT AGREEMENT (this “Agreement”), dated as of November 17, 2021, by and among BTRS Holdings Inc., a
      Delaware corporation (the “Company”), and each of the persons listed on Schedule A hereto (collectively, the “Warrant Holders,” and each a “Warrant Holder”).

    

    

    W I T N E S S E T H:

     

    WHEREAS, as of the date hereof, each Warrant Holder is the beneficial owner of warrants sold as part of the units in the initial public offering (the “IPO”) (whether they were purchased in the IPO
        or thereafter in the open market) of South Mountain Merger Corp. (the “Warrants”);

     

    WHEREAS, as of the date hereof, there are a total of 12,497,692 Warrants outstanding;

     

    WHEREAS, on January 12, 2021, the Company completed its business combination with South Mountain Merger Corp., and in connection therewith the Company was renamed BTRS Holdings Inc.;

     

    WHEREAS, each whole Warrant entitles its holder to purchase one share of Class 1 common stock, $0.0001 par value per share (the “Common Stock”), of the Company, for a purchase price of $11.50,
        subject to certain adjustments;

     

    WHEREAS, the
      Company is initiating an exchange offer (the “Exchange Offer”) pursuant to a registration statement on Form S-4 to be filed with the Securities and
      Exchange Commission (as may be amended and supplemented, the “Registration Statement”), to offer all Warrant holders the opportunity to exchange
      their Warrants for shares of Common Stock, based on an exchange ratio of 0.300 shares of Common Stock per Warrant and subject to other terms and conditions to be disclosed in the Registration Statement;

     

    WHEREAS,
      concurrent with the Exchange Offer and as part of the Registration Statement, the Company is initiating a consent solicitation (the “Solicitation”)
      to solicit the consent of the holders of the Warrants to amend, effective upon the completion of the Exchange Offer, the terms of the Warrant Agreement (the “Warrant Agreement”), dated June 19, 2019, by and between South Mountain Merger Corp. and Continental Stock Transfer & Trust Company, as warrant agent (the “Warrant Amendment”), which governs all of the Warrants, to permit the Company to require that each Warrant that is outstanding upon the closing of the Exchange Offer be converted into 0.270 shares of Common Stock,
      which is a ratio of 10% less than the exchange ratio applicable to the Exchange Offer, as more fully described in the Registration Statement; and

     

    WHEREAS, as an inducement to the Company’s willingness to initiate the Exchange Offer and the Solicitation, each Warrant Holder has agreed to enter into this Agreement.

     

    NOW, THEREFORE, in consideration of the foregoing and the respective representations, warranties, covenants and agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby
        acknowledged, the parties hereto, intending to be legally bound, do hereby agree as follows:

    

    
      1

      
        

    

    Section 1.01 Agreement to Tender.
      Each Warrant Holder shall validly tender or cause to be tendered to the Company all Warrants beneficially owned by such Warrant Holder as of the date hereof, free and clear of all liens, pursuant to and in accordance with the terms of the Exchange
      Offer as described in the Registration Statement no later than the scheduled or extended expiration time of the Exchange Offer at a ratio of 0.300 shares of Common Stock per Warrant. For the avoidance of doubt, nothing in this Agreement shall
      restrict the Warrant Holder from acquiring additional Warrants subsequent to the date hereof and such additional Warrants shall not be subject to the terms of this Agreement.

     

    Section 1.02 Agreement to Consent.
      Each Warrant Holder shall deliver to the Company its timely consent with respect to the Solicitation with respect to all of such Warrant Holder’s Warrants in accordance with the terms and conditions of the Solicitation as described in the
      Registration Statement.

     

    Section 1.03 Ownership of Warrants. Each Warrant Holder represents and warrants to the Company, as of the date hereof and as of the date of tender of
      such Warrant Holder’s Warrants in accordance with this Agreement, that such Warrant Holder is the sole beneficial owner of the number of Warrants set forth opposite such Warrant Holder’s name on Schedule A, and has good and marketable title
      to such Warrants free and clear of any liens, options, rights, or any other encumbrances, limitations or restrictions whatsoever (other than liens imposed under typical prime brokerage agreements and those restrictions imposed by applicable
      securities laws, this Agreement and the Warrant Agreement). Each Warrant Holder shall not transfer any Warrants to any person (other than the Company in connection with the Exchange Offer) unless such person acquiring such Warrants signs a joinder to
      this Agreement agreeing to be bound by all terms and conditions of this Agreement.

    

    

    Section 1.04 Company Covenants. The Company agrees that it shall take all steps reasonably necessary or desirable to commence the Exchange Offer and
      Solicitation as soon as practicable consistent with this Agreement, and agrees to take all steps necessary to update the Registration Statement as required by applicable laws and regulation, and that the Registration Statement, when declared
      effective, will comply with all applicable Securities and Exchange Commission requirements.

    

    

    Section 1.05 Specific Performance. The parties hereto agree that irreparable damage would occur if any provision of this Agreement were not performed in
      accordance with the terms hereof and that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement or to enforce specifically the performance of the terms and provisions hereof, in addition to any other
      remedy to which they are entitled at law or in equity.

    

    

    
      Section 1.06 Termination.
        This Agreement shall terminate as to all Warrant Holders (a) upon written notice to all the Warrant Holders by the Company, or upon the earlier of (i) the date the Company’s board of directors or a committee thereof determines to no longer pursue
        the Exchange Offer and the Solicitation, and (ii) February 28, 2022; or (b) if the Company fails to commence the Exchange Offer and Solicitation by December 1, 2021.

    

     

    

    
      2

      
        

    

    Section 1.07 Warrant Holder Obligations Several and Not Joint.  The obligations of each Warrant Holder hereunder shall be several and not joint, and no
      Warrant Holder shall be liable for any breach of the terms of this Agreement by any other Warrant Holder.

     

    Section 1.08 Governing Law. The validity, interpretation, and performance of this Agreement and of the Warrants shall be governed in all respects by the
      laws of the State of New York, without giving effect to conflicts of law principles that would result in the application of the substantive laws of another jurisdiction. The Company hereby agrees that any action, proceeding or claim against it
      arising out of or relating in any way to this Agreement shall be brought and enforced in the courts of the State of New York or the United States District Court for the Southern District of New York, and irrevocably submits to such jurisdiction,
      which jurisdiction shall be exclusive. The Company hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum.

     

    Section 1.09 Counterparts. This Agreement may be signed in counterparts (which may include counterparts delivered by any standard form of
      telecommunication), each of which shall be an original and all of which together shall constitute one and the same instrument. The words “execution,” “signed,” “signature,” and words of like import in this Agreement or in any other certificate,
      agreement or document related to this Agreement, if any, shall include images of manually executed signatures transmitted by facsimile or other electronic format (including, without limitation, “pdf,” “tif” or “jpg”) and other electronic signatures
      (including, without limitation, DocuSign and AdobeSign). The use of electronic signatures and electronic records (including, without limitation, any contract or other record created, generated, sent, communicated, received, or stored by electronic
      means) shall be of the same legal effect, validity and enforceability as a manually executed signature or use of a paper-based record-keeping system to the fullest extent permitted by applicable law, including the Federal Electronic Signatures in
      Global and National Commerce Act, the New York State Electronic Signatures and Records Act and any other applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act or the Uniform Commercial Code.

    

    

    [Signature Page Follows]

     

    

    
      3

      
        

    

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

     

    	 	
            COMPANY:

          
	 	 	 
	 	
            BTRS HOLDINGS INC.

          
	 	 

    	 	
            By:

          	 

    	 	
            Name: Mark Shifke

          
	 	
            Title:   Chief Financial Officer

          

     

      [Signature Page – BTRS Tender and Support Agreement]

      

    

    
      
        

    

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

     

    	 	
            HOLDER:

          
	 	 	 
	 	
            [●]

          

    	 	
            By:

          	 

    	 	
            Name:

          
	 	
            Title

          

     

    

    
      [Signature Page – BTRS Tender and Support Agreement]

       

      

    

    
      
        

    

    Schedule A

     

    	
            Name of Warrant Holder

          	
            Number of Warrants

          
	
            [●]

          	
            [●]Exhibit 10.1

 

	 	Thomas L. Thimot
 Chief Executive officer

                                                                                tomthimot@authid.ai

 

November 12, 2021

 

Neepa Patel

150 East 44th Street, Apt. 10D

New York, NY 10017

 

Re:     Appointment
as Non-Executive Director

 

Dear Neepa:

 

I am pleased to be writing
to you at the direction of the Board of Directors (“Board”) of Ipsidy Inc. dba authID.ai (the "Company") to confirm
the terms of your appointment as a non-executive director. This letter shall take effect upon the passing of a Board Resolution formally
approving your appointment.

 

The initial term of your directorship
will extend until the first Annual Meeting of the Company’s Stockholders (“Annual Meeting”) following your appointment,
when you will be eligible for re-election by the stockholders, if nominated by the Board or until your earlier resignation.

 

		1.	Role and duties

 

Non-executive
directors have the same general legal responsibilities to the Company as any other director. The Board as a whole is collectively responsible
for promoting the success of the Company by directing and supervising the Company's affairs, with a particular focus on strategy, performance
and risk. We would also expect you to be an ambassador for the Company and to promote its interests, when appropriate in your daily business
activities.

 

You
will be required to discharge the following specific functions and duties: 

 

		(a)	Attend quarterly Board meetings and special Board meetings at the Company's
head office, or such other place, or by conference call on dates to be notified to you in advance;

 

		(b)	Attendance at Board and Committee meetings by conference call will be
generally available, but it is anticipated that the Board will have two full “in person” meetings per year with all directors
present;

 

		(c)	Attend the Company's Annual Meetings and any special meetings of stockholders,
which may be called from time to time;

 

	 

 

	Ipsidy
    Inc. · 670
    Long Beach Boulevard · Long
    Beach, New York 11561 · Tel
    +1 516 274 8700 · www.authid.ai
       

 

    

    
	 	  Neepa Patel: 
Page 2 
November 12, 2021

    

 

		(d)	Carry out such other functions and duties as may reasonably be required
of you from time to time.

 

As a director of a Company,
which is a reporting Company in accordance with Securities & Exchange Commission (“SEC”) rules, you will be required to
file reports of your interests in any securities of the Company and any acquisitions or disposals thereof, as well as various disclosures
regarding your position in, agreements with and relations with the Company. The Company and our counsel will work with you to ensure all
required reports and disclosures are filed in compliance with SEC rules.

 

We will need to establish
a filing reference (or CIK) for you with the SEC, as a director a public reporting company and we will send you the applicable form in
due course. Once that has been obtained our Edgar filing agent can make all necessary filings on your behalf, with your approval.

 

		2.	Time commitment 

 

By
accepting this appointment, you have confirmed that you are able to allocate sufficient time to meet the reasonable expectations of your
role, including appropriate preparation time ahead of Board (and, if applicable, committee) meetings. 

 

		3.	Conflicts 

 

It
is accepted and acknowledged that you have business interests other than those of the Company and have declared any current conflicts
of interest. In the event that you become aware of any potential or actual conflicts of interest these should be disclosed to the Chairman
and Corporate Secretary as soon as possible.

 

		4.	Compensation and Reimbursement of Expenses

 

In
consideration for the performance of the duties outlined above, you will be entitled to compensation in accordance with the Company’s
Compensation Policy for Non-Employee Directors, from time to time in force, including awards under the Company’s 2017 Incentive
Stock Plan (the “Plan”). At the present time this comprises (a) an initial equity award having a Black Scholes value on the
date of grant of $270,000, subject to annual vesting of one-third of the shares over three years on the date of each Annual Meeting commencing
with the 2022 Annual Meeting; and (b) commencing following the Company’s 2022 Annual Meeting assuming you are re-elected to office,
an annual equity award having a Black Scholes value on the date of grant of $90,000, subject to vesting over twelve months.

 

All
equity awards are issued subject to the terms of their respective grant and the terms and conditions of the Plan.

 

	 

 

	670
Long Beach Boulevard, · Long
Beach, New York 11561 ·.
Tel +1 516 274 8700 ·.
www.ipsidy.com

 

    

    
	 	  Neepa Patel: 
Page 3 
November 12, 2021

    

 

This
is a contract for services and not a contract of employment, and as an independent contractor you will be paid your fees on a gross basis.
You will be responsible for payment of all applicable Federal, State and local taxes on compensation received and all compensation shall
be subject to reporting by the Company on an annual basis on Form 1099, as required by law. 

 

In
addition to your fees, you are entitled to be reimbursed any reasonable expenses incurred in attending meetings of the Board or of any
committee of the Board, or of stockholder meetings, or otherwise on the business of the Company. The Company may require written evidence
of such expenses to be provided and in certain cases prior approval. All expenses are subject to the Company’s expense policy.

 

		5.	Termination 

 

You are entitled to resign
your membership on the Board or on any committee of the Board at any time. In addition, you agree to resign your directorship in the circumstances
set forth in Section 6 below. Written notice of any such resignation should be given to the Chairman of the Board.

 

This Agreement will automatically
terminate, without requirement of notice, upon the date of your resignation from the Board (including any resignation pursuant to Section
6 below), if you are removed from office by a resolution of the stockholders in accordance with the Company’s Bylaws and Delaware
law, or if you are not re-nominated or re-elected to the Board, and you will not be entitled to any further compensation following the
termination date in any of these events.

 

		6.	Immediate vacation of office

 

You agree to resign your office
as a director on the Board and on each committee of the Board immediately in the event of any of the following circumstances:

 

		(a)	if you become prohibited by law from acting as a director;

 

		(b)	if
                                            you are convicted of a felony or crime involving moral turpitude (excluding driving offences
                                            unless combined with other aggravating circumstances or offenses)
                                            or fraud;

 

		(c)	if
                                            you engage in gross misconduct which is materially detrimental to the reputation or business
                                            of the Company; provided that you shall first be entitled to receive notice from the Board
                                            specifying such gross misconduct in reasonable detail, and shall have failed to cure or correct
                                            such gross misconduct within thirty (30) days of receiving such notice (unless such misconduct
                                            is of a nature that it is unable to be cured or corrected); or

	 

                                             

 

  
	670
                                   Long Beach Boulevard, · Long Beach, New York 11561 ·. Tel +1 516 274 8700 ·.
                                   www.ipsidy.com

 

    

    
	 	  Neepa Patel: 
Page 4 
November 12, 2021

    

 

		(d)	if
                                            you willfully fail to comply in any material respect with the Company’s Confidentiality
                                            Agreement, Insider Trading Policy, Code of Ethics, Sexual Harassment Prevention Policy
                                            or any other reasonable policies of the Company where non-compliance would be materially
                                            detrimental to the Company; provided that you shall first be entitled to receive notice from
                                            the Board specifying such noncompliance in reasonable detail, and shall have failed to cure
                                            or correct such gross misconduct within thirty (30) days of receiving such notice (unless
                                            such non-compliance is of a nature that it is unable to be cured or corrected). I will have
                                            our General Counsel provide you with all relevant policies.

 

		7.	Confidentiality

 

You acknowledge your duties
of confidentiality and loyalty to the Company as a director of a Delaware corporation, and you agree to uphold such duties. In addition,
you will be asked to execute a standard Confidentiality Agreement.

 

		8.	Indemnification & Insurance

 

You shall be entitled to indemnification
by the Company with respect to your services as a director, to the fullest extent permitted by law and under the Company’s Certificate
of Incorporation and Bylaws. In addition, upon your appointment the Company will enter into a standard indemnification agreement with
you.

 

You shall be covered under
the Company’s directors’ and officers’ insurance policy, for so long as you remain a member of the Board. The Company
shall continue to provide coverage to you under such policy for not less than twenty-four (24) months following your termination date
on substantially the same terms of the policy in effect immediately prior to the termination date.

 

		9.	Miscellaneous

 

This
letter shall be governed by and construed in accordance with the law of the State of New York law and the courts, Federal and State, located
in the State of New York shall have non-exclusive jurisdiction for all matters arising under it.

 

If this letter reflects the
terms that we have agreed, please sign and return a copy of this letter to me.

 

	 	Sincerely,
	 	 
	 	Ipsidy Inc. dba authID.ai
	 	 
	 	/s/
    Thomas Thimot
	 	By: Thomas L. Thimot, CEO

	 

 

	670
                                   Long Beach Boulevard, · Long Beach, New York 11561 ·. Tel +1 516 274 8700 ·.
                                   www.ipsidy.com

 

    

    
	 	  Neepa Patel: 
Page 5 
November 12, 2021

    

 

I
hereby agree to act as a non-executive director of Ipsidy Inc. upon the terms contained in the letter of which this is a copy.

 

	/s/
    Neepa Patel	 
	NEEPA
    PATEL	

 

Date:
November 12, 2021

	 

 

	670
                                   Long Beach Boulevard, · Long Beach, New York 11561 ·. Tel +1 516 274 8700 ·.
                                   www.ipsidy.com

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