Document:

Exhibit 10.4

 

June 14, 2021

 

PRIVATE AND CONFIDENTIAL

Cecil N. Smith III

1420 S. Elizabeth Street

Denver, Colorado 80210

 

Re:Employment Offer

 

Dear Tripp:

 

The management of Ipsidy Inc.
(the “Company”) takes pleasure in extending you this offer to join the Company as President and Chief Technology Officer
reporting to the Chief Executive Officer (“CEO”) of the Company. As part of your responsibilities, you will be required
to provide services to other subsidiaries and affiliates of the Company (together with the Company, collectively referred to as the (“Group”).

 

Job Description

 

Your job responsibilities
will comprise:

 

		●	Design, development and delivery of all of the Group’s software and artificial intelligence solutions.
This includes the selection and use of agile methodologies to ensure the highest possible accuracy and efficiency of the software we provide
our customers.
	 	 	 

		●	Working closely with the Group’s sales and marketing teams to best articulate the benefits of the
software and remediate any defects and ensure that the software delivered meets the overall product strategy set by the Chief Product
Officer.
	 	 	 

		●	Assisting the Finance and HR functions in managing the costs associated with all aspects of design, development
and delivery of the Group’s software and artificial intelligence solutions.
	 	 	 

		●	Advice to the CEO on how to maximize shareholder value in all decisions made relative to the software
and artificial intelligence solutions we bring to market.
	 	 	 

		●	Such other responsibilities and tasks and functions as are reasonably assigned to you from time to time
by the CEO or the Board of directors of the Company (the “Board”), or are customarily applicable to your position.

 

Compensation

 

Your compensation package
shall consist of the following:

 

(a) Initial
base salary of $275,000 per annum, which will be payable semi-monthly in arrears, and subject to all applicable deductions required by
law. Your salary will be reviewed by the Compensation Committee of the Board (the “Committee”) from time to time and
may thereafter be increased.

 

(b) A
one-time signing bonus of $50,000, which will be payable after you have worked for ninety days from the start date of your employment.

 

    

     

    

 

(c) You
will also be eligible for an annual target bonus equal to fifty percent (50%) of your base salary based on achievement of performance
milestones, calculated and payable as follows:

 

		(i)	For the fiscal year 2021 subject to performance targets to be mutually agreed between you and the Committee;
and

 

		(ii)	For the fiscal year 2022, you and the Committee will mutually agree as to the performance targets to earn
your annual bonus. The expectation is that the performance target will require the Company to have revenues for fiscal year 2022 of not
less than 300% of the revenue achieved by the Company for the year 2021 as shown in the Company’s Annual Reports on Form 10-K, but
you and the Committee agree to consider in good-faith adjustments to the performance target based on the circumstances that exist at the
time the performance targets are established.

 

(d) You
will also be eligible for a bonus in an amount equal to six (6) months of your annual base salary on the occurrence of a Change of Control
(as defined in your Executive Retention Agreement).

 

(e) At
the outset of your employment you will be provided with an initial grant of options to purchase 18,000,000 shares of Common Stock of $0.0001
par value in the Company (“Common Stock”), vesting subject to achievement of performance and service conditions as
set forth in the option grant attached hereto as Exhibit “A”. The exercise price of the options shall be equal to the closing
price of the Common Stock on the date of grant, the Exercise Period shall be 10 years and the other terms of the options shall be as set
forth in the aforementioned option grant. For the avoidance of doubt all references herein to shares of Common Stock are to the shares
prior to the planned reverse stock split and the share figures and exercise price shall be adjusted after such split, in accordance with
terms of the option grant agreement.

 

(f) You
may be eligible for equity incentive grants and cash bonus awards, subject to your continued employment and satisfactory job performance,
which may be made from time to time, by the Committee. Terms and conditions of all your equity incentive grants, will be as determined
by the Committee and in accordance with the terms of the Company’s equity incentive plan in effect at the time of each such grant.

 

(g) An
Executive Retention Agreement in the form attached hereto as Exhibit “B”.

 

(h) All
payments made under this Agreement shall be subject to deduction of all federal, state, local and other taxes required to be withheld
by applicable law.

 

With respect to additional terms of your employment,
the following will apply:

 

	1.	At Will Employment. Your employment shall start on or about June 14, 2021, or such other date as
we shall agree. While we look forward to a long and mutually beneficial relationship, your employment will be “at-will” and
may be terminated at any time upon written notice and without prior warning. Further, your participation in any stock option or benefit
program are not to be regarded as assuring you of continuing employment for any particular period of time. Any modification or change
in your “at-will” employment status may only occur by way of a written employment agreement signed by you and authorized by
the Board.

 

	2.	Location and Travel. You will initially work at your home office, but it is intended that you will
work from the Company’s office in Denver, Colorado, to be established in due course. As part of your duties you will be required
to travel as necessary to perform your duties and responsibilities, including visiting Group’s offices in the locations where they
may exist from time to time.

 

    2

     

    

 

	3.	Working Hours. You will be expected to devote your full time and attention to your employment,
to the extent necessary to carry out your duties hereunder. Because of the nature of your position, and as an exempt employee you will
be required to work outside of usual working hours, where the circumstances and business needs require it. You shall not engage or be
involved in any other business activity without the approval of the CEO with initial exceptions listed in Exhibit “C” attached
hereto, if such activities, in each case, (i) do not materially interfere with your performance of Company duties and responsibilities,
including the non-competition provisions of Section 9 and (ii) have been disclosed in advance to and pre-approved by the CEO.

 

	4.	Paid Time Off. You will be entitled to Paid Time Off in accordance with the provisions of the Company’s
Employee Handbook, which will accrue on a pro-rata basis during the year, in addition to all public holidays when the office is closed.
Vacation may be taken upon reasonable prior notice to the CEO. The Company’s Employee Handbook contains further provisions relating
to your entitlement and the taking of Paid Time Off, including the circumstances under which unused days may be carried over from one
year to the next.

 

	5.	Sick & Personal Days. Paid Time Off may be used for sick or personal days. The Company’s
Employee Handbook contains further provisions relating to the taking of sick or personal days, including the circumstances under which
unused days may be carried over from one year to the next.

 

	6.	Benefits. You will be eligible to participate in all employee benefit plans established by the
Company for its employees from time to time. The Company currently offers the benefits that are detailed in the Employee Handbook.

 

	7.	Expense Reimbursement. In accordance with Company policies from time to time, we will reimburse
you for all reasonable and proper travel and business expenses incurred by you in the performance of your duties.

 

	8.	Confidentiality and Assignment of Inventions. As an employee and executive of the Company, you
will have access to certain confidential information of the Company and you may, during the course of your employment, develop certain
information or inventions that will be the property of the Company. To protect the interests of the Company, you will need to sign the
Company’s standard “Employee Invention Assignment and Confidentiality Agreement” in the form attached hereto as Exhibit “D”
as a condition of your employment.

 

	9.	Covenant Not to Compete. While you are employed by the Company, you agree that you shall not directly
or indirectly:

 

		(a)	be employed, or engaged as an independent contractor, consultant, or in any position where your responsibilities
would require you to directly or indirectly support/work on services and/or products that are in competition with the Group’s businesses
as they exist during your employment -- the Group’s businesses currently consist of its biometric identity verification products
and solutions;

 

		(b)	whether as an employee, independent contractor, consultant, advisor, or principal, enter into any agreement
which is for the provision of services in competition with any of the Group’s businesses, as they exist during your employment with
any entity, which is or was a customer of the Group, nor cause or assist any such customer to enter into any such agreement for competitive
services with any third party.

 

		(c)	whether on your own behalf or on behalf of any other person or entity directly or indirectly solicit or
encourage any employee of the Group to discontinue such employment relationship with the Group (excluding termination of such employee’s
employment in the best interests of the Company).

 

    3

     

    

 

You acknowledge that the restrictions
set forth in this paragraph are reasonable and necessary for the protection of the Group’s legitimate interests, in particular having
regard to the sensitive position which you will hold and the high level of confidential and proprietary information regarding the Group’s
business operations, systems and customers to which you will have access, during the performance of your duties hereunder.

 

	10.	No Restrictions. To the extent that you are subject to confidentiality obligations to a former
employer or any third party, you acknowledge and agree that it is your responsibility to ensure that you comply with such obligations
on a continuing basis. You acknowledge that the Company is relying upon your warranty, representation and acknowledgement in this paragraph
in making this offer to you.

 

	11.	Governing Law & Jurisdiction. This offer and your employment shall be governed by and construed
in accordance with the laws of the State of Colorado. You and the Company agree to submit to the exclusive personal jurisdiction of the
federal and state courts located in Colorado, in connection with any dispute or proceedings arising out of or relating to this offer and
your employment, and each of us hereby submits to the exclusive jurisdiction of such courts.

 

	12.	Amendment. No amendment or waiver of any of the provisions hereof shall be effective, unless in
writing and signed by each party.

 

	13.	Other Documents. Your employment is subject to the Employment Handbook and terms and conditions
(including benefits) applicable generally to employees of the Group, from time to time in force, which are subject to change, amendment,
or deletion in the Company’s sole discretion. As a condition of your employment you will also be required to enter into certain
standard undertakings and consents regarding security, confidentiality and use of the Group’s facilities and property. As part of
our objective of continuous improvement and in order to comply with certain customer and audit requirements, you will also be required
to undergo training at least annually on various matters including data security. In accordance with our standard policy this employment
offer is subject to our receiving satisfactory references and civil and criminal background checks, and by signing this letter you hereby
consent to our undertaking such reference and background checks.

 

	14.	Authorization to Work. Please note that because of employer regulations adopted in the Immigration
Reform and Control Act of 1986, within three (3) business days of starting your new position you will need to present documentation demonstrating
that you have authorization to work in the United States.

 

	15.	Severability. If any provision of this letter or the application thereof is held invalid by a court,
arbitrator or government agency of competent jurisdiction, you agree that such a determination of invalidity shall not affect other provisions
or applications of the letter which can be given effect without the invalid provisions and thus shall remain in full force and effect
or application.

 

If the terms and the conditions of this letter
are acceptable to you, please sign, date and return an original of this letter to us.

 

We look forward to a long and mutually beneficial
relationship.

 

	 	Sincerely,
	 	 	 
	 	Ipsidy Inc.
	 	 	 
	 	By:	/s/ Phillip Kumnick
	 	 	Phillip L. Kumnick, CEO

 

	AGREED & ACCEPTED:	 	 
	 	 	 
	/s/ Cecil Smith	 	 
	CECIL N. SMITH III	 	Dated: June 14, 2021

 

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EXHIBIT D

 

EMPLOYEE INVENTION ASSIGNMENT AND CONFIDENTIALITY
AGREEMENT

 

THIS EMPLOYEE INVENTION ASSIGNMENT AND CONFIDENTIALITY
AGREEMENT is entered into as of the 14th day of June, 2021 between I the undersigned CECIL N. SMITH III residing
at 1420 S. Elizabeth Street Denver, Colorado 80210, and IPSIDY INC., a Delaware corporation with a place of business at 670 Long
Beach Boulevard, Long Beach, New York 11561 USA, (the “Company”).

 

WHEREAS, I have agreed to be an employee of the
Company or one of its affiliated entities (collectively referred to herein as the “Company”).

 

IN CONSIDERATION OF, and as a condition of my
employment with the Company (the receipt and sufficiency of which I hereby acknowledge) I hereby represent to, and agree with the Company
as follows:

 

1. Purpose
of Agreement. I understand that it is critical for the Company to preserve and protect its
rights in “Inventions” (as defined in Section 2 below), its “Confidential Information”
(as defined in Section 7 below) and in all related intellectual property rights. Accordingly, I am entering into this Employee Invention
Assignment and Confidentiality Agreement (this “Agreement”) as a condition of my employment with the Company.

 

2. Disclosure
of Inventions. I will promptly disclose in confidence to the Company all inventions, improvements,
designs, original works of authorship, formulas, processes, compositions of matter, computer software programs, databases, mask works
and trade secrets (the “Inventions”) that I make or conceive or first reduce to practice or create, either alone
or jointly with others, during the period of my employment, whether or not in the course of my employment, and whether or not such Inventions
are patentable, copyrightable or protectable as trade secrets.

 

3. Work
for Hire. I acknowledge and agree that any copyrightable works prepared by me within the
scope of my employment, including for the avoidance of doubt any such works prepared prior to the date hereof are “works made for
hire” under the Copyright Law of the United States and that the Company will be considered the author and owner of such copyrightable
works. 

 

4. Assignment
of Inventions. I agree that all Inventions that (i) have been or are developed using
equipment, supplies, facilities, Confidential Information, or trade secrets of the Company, (ii) result from work performed by me
for the Company, or (iii) relate to the Company’s business or current or anticipated research and development (the “Assigned
Inventions”), will be the sole and exclusive property of the Company and are hereby irrevocably assigned by me to the Company.

 

5. Assignment
of Other Rights; Moral Rights. In addition to the foregoing assignment of Assigned Inventions
to the Company, I hereby irrevocably transfer and assign to the Company: (i) all worldwide patents, patent applications, copyrights,
mask works, trade secrets and other intellectual property rights, including but not limited to rights in databases, in any Assigned Inventions,
along with any registrations of or applications to register such rights; and (ii) any and all “Moral Rights” (as defined
below) that I may have in or with respect to any Assigned Inventions. I also hereby forever waive and agree never to assert any and all
Moral Rights I may have in or with respect to any Assigned Inventions, even after termination of my work on behalf of the Company. “Moral
Rights” mean any rights to claim authorship of or credit on an Assigned Invention, to object to or prevent the modification
or destruction of any Assigned Inventions, or to withdraw from circulation or control the publication or distribution of any Assigned
Inventions, and any similar right, existing under judicial or statutory law of any country or subdivision thereof in the world, or under
any treaty, regardless of whether or not such right is denominated or generally referred to as a “moral right.” 

 

    D-1

     

    

 

6. Assistance.
I agree to assist the Company in every proper way, at the Company’s cost, to obtain for the Company and enforce patents, copyrights,
mask work rights, trade secret rights and other legal protections for the Company’s Assigned Inventions in any and all countries.
I will execute any documents that the Company may reasonably request for use in obtaining or enforcing such patents, copyrights, mask
work rights, trade secrets and other legal protections. My obligations under this paragraph will continue beyond the termination of my
employment with the Company, provided that the Company will compensate me at a reasonable rate after such termination for time or expenses
actually spent by me at the Company’s request on such assistance. I appoint the Secretary of the Company as my attorney-in-fact
to execute documents on my behalf for this purpose.

 

7. Confidential
Information. I understand that my employment by the Company creates a relationship of confidence
and trust with respect to any information that may be disclosed to me by the Company and its officers, employees, shareholders or agents,
whether orally, in writing, by computer or other medium, by demonstration, by supply of samples and parts or in any other manner, or which
is otherwise accessible to me, that relates to the business of the Company or to the business of any parent, subsidiary, affiliate, customer
or supplier of the Company including all information received by the Company from third parties, which is subject to an obligation of
confidentiality (the “Confidential Information”). Such Confidential Information includes, but is not limited
to, Assigned Inventions, computer programming and software, Company products and services, systems, functionality, designs, hardware,
parts, concepts, specifications, features, techniques, plans, marketing, sales, performance, cost, pricing, supplier and customer information,
data, tables, schedules, contracts and other information concerning the Company and its customers. I hereby acknowledge that all such
Confidential Information belongs to the Company (or the respective customer, supplier or third party, which supplied it to the Company.)

 

8. Confidentiality.
At all times, both during my employment and after its termination (without limitation in point of time), I will keep and hold all such
Confidential Information in strict confidence and trust. I will not use or disclose any Confidential Information without the prior written
consent of the Company, except as may be necessary to perform my duties as an employee of the Company for the benefit of the Company.
Upon termination of my employment with the Company, I will promptly deliver to the Company all documents and materials of any nature pertaining
to my work with the Company. I will not take with me or retain any documents or materials or copies thereof containing any Confidential
Information. I agree that I shall at all times comply with the Company’s Information Security Policy and Procedures from time to
time in force. I acknowledge that breach of this policy or any other provision of this Agreement may be grounds for immediate dismissal.

 

9. No
Breach of Agreement or Infringement. I represent that my acceptance of the Company’s
offer of employment, performance of all the terms of this Agreement and my duties as an employee of the Company will not so far as I am
aware breach any invention assignment, proprietary information, confidentiality or similar agreement with any other party, nor infringe
the rights of any third party. I represent that I will not bring with me to the Company or use in the performance of my duties for the
Company any documents or materials or intangibles of a former employer or third party that are not generally available to the public or
have not been legally transferred to the Company. I acknowledge that the Company is relying upon my warranty, representation and acknowledgement
in this paragraph in offering me employment. 

 

10. Notification.
I hereby authorize the Company to notify my actual or future employers of the terms of this Agreement and my responsibilities hereunder.

 

11. Injunctive
Relief. I understand that in the event of a breach or threatened breach of this Agreement
by me the Company may suffer irreparable harm and will therefore be entitled to injunctive relief to enforce this Agreement.

 

    D-2

     

    

 

12. Governing
Law; Jurisdiction. This Agreement will be governed by and construed in accordance with the
laws of the State of Colorado, without giving effect to that body of laws pertaining to conflict of laws. I hereby submit to the jurisdiction
of and consent to suit in the courts, Federal and State located in the State of New York with respect to any matter or dispute arising
out of this Agreement.

 

13. Severability.
If any provision of this Agreement is determined by any court or arbitrator of competent jurisdiction
to be invalid, illegal or unenforceable in any respect, such provision will be enforced to the maximum extent possible given the intent
of the parties hereto. If such clause or provision cannot be so enforced, such provision shall be stricken from this Agreement and the
remainder of this Agreement shall be enforced as if such invalid, illegal or unenforceable clause or provision had (to the extent not
enforceable) never been contained in this Agreement.

 

14. Counterparts.
This Agreement may be executed in any number of counterparts, each of which when so executed and delivered will be deemed an original,
and all of which together shall constitute one and the same agreement.

 

15. Entire
Agreement. This Agreement and the documents referred to herein constitute the entire agreement
and understanding of the parties with respect to the subject matter of this Agreement, and supersede all prior understandings and agreements,
whether oral or written, between or among the parties hereto with respect to the specific subject matter hereof.

 

16. Amendment
and Waivers. This Agreement may be amended only by a written agreement executed by each of
the parties hereto. No amendment of or waiver of, or modification of any obligation under this Agreement will be enforceable unless set
forth in a writing signed by the party against which enforcement is sought. Any amendment effected in accordance with this section will
be binding upon all parties hereto and each of their respective successors and assigns. No delay or failure to require performance of
any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. No waiver granted under
this Agreement as to any one provision herein shall constitute a subsequent waiver of such provision or of any other provision herein,
nor shall it constitute the waiver of any performance other than the actual performance specifically waived.

 

17. Successors
and Assigns; Assignment. Except as otherwise provided in this Agreement, this Agreement,
and the rights and obligations of the parties hereunder, will be binding upon and inure to the benefit of their respective successors,
assigns, heirs, executors, administrators and legal representatives. The Company may assign any of its rights and obligations under this
Agreement to any entity which is my employer. No other party to this Agreement may assign, whether voluntarily or by operation of law,
any of its rights and obligations under this Agreement, except with the prior written consent of the Company.

 

18. Further
Assurances. The parties agree to execute such further documents and instruments and to take
such further actions as may be reasonably necessary to carry out the purposes and intent of this Agreement.

 

SIGNED AS OF THIS 14th DAY OF ____________ 2021

 

	CECIL N. SMITH III	 
	 	 
	/s/ Cecil Smith	 

 

 

D-3Exhibit 10.5

 

INDEMNIFICATION
AGREEMENT

 

This
Indemnification Agreement (this “Agreement”), dated as of ____________, 2021 is made by and between IPSIDY
INC., a Delaware corporation (the “Company”), and _________ , a director or employee officer of the Company
(the “Indemnitee”).

 

RECITALS

 

A. The
Company is aware that competent and experienced persons are increasingly reluctant to serve as directors or officers of corporations
unless they are protected by comprehensive liability insurance and/or indemnification, due to increased exposure to litigation costs
and risks resulting from their service to such corporations, and because the exposure frequently bears no reasonable relationship to
the compensation of such directors and officers;

 

B. Based
on their experience as business managers, the Board of Directors of the Company (the “Board’’) has concluded
that, to retain and attract talented and experienced individuals to serve as officers and directors of the Company, and to encourage
such individuals to take the business risks necessary for the success of the Company, it is necessary for the Company contractually to
indemnify officers and directors and to assume for itself maximum liability for expenses and damages in connection with claims against
such officers and directors in connection with their service to the Company;

 

C.
Section 145 of the Delaware General Corporation Law, under which the Company is organized (the “Law”), empowers
the Company to indemnify by agreement its officers, directors, employees and agents, and persons who serve, at the request of the Company,
as directors, officers, employees or agents of other corporations or enterprises, and expressly provides that the indemnification provided
by the Law is not exclusive; and

 

D. The
Company desires and has requested the Indemnitee to serve or continue to serve as a director or officer of the Company free from undue
concern for claims for damages arising out of or related to such services to the Company.

 

NOW,
THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows:

 

1. Definitions.

 

1.1. Agent.
For the purposes of this Agreement, “agent” of the Company means any person who is or was a director or
officer of the Company or a subsidiary of the Company; or is or was serving at the request of, for the convenience of, or to represent
the interest of the Company or a subsidiary of the Company as a director or officer of another foreign or domestic corporation, partnership,
joint venture, trust or other enterprise or an affiliate of the Company; or was a director or officer of a foreign or domestic corporation
which was a predecessor corporation of the Company, or was a director or officer of another enterprise or affiliate of the Company at
the request of, for the convenience of, or to represent the interests of such predecessor corporation. The term “enterprise”
includes any employee benefit plan of the Company, its subsidiaries, affiliates and predecessor corporations.

 

1.2 Expenses.
For purposes of this Agreement, “expenses” includes all direct and indirect costs of any type or nature whatsoever (including,
without limitation, all attorneys’ fees and related disbursements and other out-of-pocket costs) actually and reasonably incurred
by the Indemnitee in connection with the investigation, defense or appeal of a proceeding or establishing or enforcing a right to indemnification
or advancement of expenses under this Agreement, the Law or otherwise.

 

     

     

    

 

1.3 Proceeding.
For the purposes of this Agreement, “proceeding” means any threatened, pending or completed action, suit or other proceeding,
whether civil, criminal, administrative, investigative or any other type whatsoever.

 

1.4 Subsidiary.
For purposes of this Agreement, “subsidiary” means any corporation of which more than 50% of the outstanding voting securities
is owned directly or indirectly by the Company, by the Company and one or more of its subsidiaries or by one or more of the Company’s
subsidiaries.

 

2. Agreement
to Serve. The Indemnitee agrees to serve and/or continue to serve as an agent of the Company, at the will of the Company (or
under separate agreement, if such agreement exists), in the capacity the Indemnitee currently serves as an agent of the Company, faithfully
and to the best of Indemnitee’s ability, so long as Indemnitee is duly appointed or elected and qualified in accordance with the
applicable provisions of the charter documents of the Company or any subsidiary of the Company; provided, however, that the Indemnitee
may at any time and for any reason resign from such position (subject to any contractual obligation that the Indemnitee may have assumed
apart from this Agreement), and the Company or any subsidiary shall have no obligation under this Agreement to continue to indemnify
the Indemnitee for any actions taken or not taken by Indemnitee after the date of resignation or termination of such position, unless
such actions are taken or not taken at the request of the Company or any subsidiary or any agent of the Company or subsidiary. For the
avoidance of doubt and notwithstanding anything to the contrary in this Agreement, Company’s obligation to indemnify the Indemnitee
in accordance with the terms of this Agreement for all actions taken or not taken by Indemnitee prior to the date of resignation or termination
of such position shall survive the resignation or termination of Indemnitee’s position.

 

3. Directors’
and Officers’ Insurance. The Company shall, to the extent that the Board determines it to be economically reasonable, maintain
a policy of directors’ and officers’ liability insurance (“D&O Insurance”), on such terms and
conditions as may be approved by the Board. The Company shall continue to provide coverage to the Indemnitee for not less than twenty-four
(24) months following Indemnitee’s date of termination on substantially the same terms of the policy in effect immediately prior
to the termination date.

 

4. Mandatory
Indemnification. Subject to Section 9 below, the Company shall indemnify the Indemnitee:

 

4.1 Third
Party Actions. If the Indemnitee is a person who was or is a party or is threatened to be made a party to any proceeding (other
than an action by or in the right of the Company) by reason of the fact that Indemnitee is or was an agent of the Company, or by reason
of anything done or not done by Indemnitee in any such capacity, against any and all expenses and liabilities of any type whatsoever
(including, but not limited to, judgments, fines, ERISA excise taxes or penalties and amounts paid in settlement) actually and reasonably
incurred by Indemnitee in connection with the investigation, defense, settlement or appeal of such proceeding if Indemnitee acted in
good faith and in a manner Indemnitee reasonably believed to be in, or not opposed to, the best interests of the Company and, with respect
to any criminal action or proceeding, had no reasonable cause to believe Indemnitee’s conduct was unlawful; and

 

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4.2 Derivative
Actions. If the Indemnitee is a person who was or is a party or is threatened to be made a party to any proceeding by or in the
right of the Company to procure a judgment in its favor by reason of the fact that Indemnitee is or was an agent of the Company, or by
reason of anything done or not done by Indemnitee in any such capacity, against any amounts paid in settlement of any such proceeding
and all expenses actually and reasonably incurred by Indemnitee in connection with the investigation, defense, settlement or appeal of
such proceeding if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in, or not opposed to, the best
interests of the Company; except that no indemnification under this subsection shall be made in respect of any claim, issue or
matter as to which such person shall have been finally adjudged to be liable to the Company by a court of competent jurisdiction due
to willful misconduct of a culpable nature in the performance of Indemnitee’s duty to the Company, unless and only to the extent
that the Court of Chancery or the court in which such proceeding was brought shall determine upon application that, despite the adjudication
of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such amounts
which the Court of Chancery or such other court shall deem proper; and

 

4.3 Exception
for Amounts Covered by Insurance.  Notwithstanding the foregoing, the Company shall not be obligated to indemnify the Indemnitee
for expenses or liabilities of any type whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes or penalties
and amounts paid in settlement) to the extent such have been paid directly to the Indemnitee by D&O Insurance.

 

5. Partial
Indemnification and Contribution.

 

5.1 Partial
Indemnification. If the Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some
or a portion of any expenses or liabilities of any type whatsoever (including, but not limited to, judgments, fines, BRISA excise taxes
or penalties and amounts paid in settlement) incurred by Indemnitee in the investigation, defense, settlement or appeal of a proceeding
but is not entitled, however, to indemnification for all of the total amount thereof, then the Company shall nevertheless indemnify the
Indemnitee for such total amount except as to the portion thereof to which the Indemnitee is not entitled to indemnification.

 

5.2 Contribution.
If the Indemnitee is not entitled to the indemnification provided in Section 4 for any reason other than the statutory limitations
set forth in the Law, then in respect of any threatened, pending or completed proceeding in which the Company is jointly liable with
the Indemnitee (or would be if joined in such proceeding), the Company shall contribute to the amount of expenses (including attorneys’
fees), judgments, fines and amounts paid in settlement actually and reasonably incurred and paid or payable by the Indemnitee in such
proportion as is appropriate to reflect (i) the relative benefits received by the Company on the one hand and the Indemnitee on the other
hand from the transaction from which such proceeding arose and (ii) the relative fault of the Company on the one hand and of the Indemnitee
on the other hand in connection with the events which resulted in such expenses, judgments, fines or settlement amounts, as well as any
other relevant equitable considerations. The relative fault of the Company on the one hand and of the Indemnitee on the other hand shall
be determined by reference to, among other things, the parties’ relative intent, knowledge, access to information and opportunity
to correct or prevent the circumstances resulting in such expenses, judgments, fines or settlement amounts. The Company agrees that it
would not be just and equitable if contribution pursuant to this Section 5 were determined by pro rata allocation or any other method
of allocation that does not take account of the foregoing equitable considerations.

 

6. Mandatory
Advancement of Expenses.

 

6.1 Advancement.
Subject to Section 9 below and except as prohibited by law, the Company shall advance all expenses incurred by the Indemnitee
in connection with the investigation, defense, settlement or appeal of any proceeding to which the Indemnitee is a party or is threatened
to be made a party by reason of the fact that the Indemnitee is or was an agent of the Company or by reason of anything done or not done
by Indemnitee in any such capacity. The Indemnitee hereby undertakes to promptly repay such amounts advanced only if, and to the extent
that, it shall ultimately be determined that the Indemnitee is not entitled to be indemnified by the Company under the provisions of
this Agreement, the Certificate of Incorporation or Bylaws of the Company, the Law or otherwise. The advances to be made hereunder shall
be paid by the Company to the Indemnitee within 15 days following delivery of a written request therefor by the Indemnitee to the Company.

 

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6.2 Exception.
Notwithstanding the foregoing provisions of this Section 6, the Company shall not be obligated to advance any expenses to the
Indemnitee arising from a lawsuit filed directly by the Company against the Indemnitee if an absolute majority of the members of the
Board reasonably determines in good faith, within 30 days of the Indemnitee’s request to be advanced expenses, that the facts known
to them at the time such determination is made demonstrate clearly and convincingly that the Indemnitee acted in bad faith. If such a
determination is made, the Indemnitee may have such decision reviewed by another forum, in the manner set forth in Sections 8.3, 8.4
and 8.5 hereof, with all references therein to “indemnification” being deemed to refer to “advancement of expenses,”
and the burden of proof shall be on the Company to demonstrate clearly and convincingly that, based on the facts known at the time, the
Indemnitee acted in bad faith. The Company may not avail itself of this Section 6.2 as to a given lawsuit if, at any time after the occurrence
of the activities or omissions that are the primary focus of the lawsuit, the Company has undergone a change in control. For this purpose,
a change in control shall mean a given person or group of affiliated persons or groups increasing their beneficial ownership interest
in the Company by at least twenty (20) percentage points without advance Board approval.

 

7. Notice
and Other Indemnification Procedures.

 

7.1 Promptly
after receipt by the Indemnitee of notice of the commencement of or the threat of commencement of any proceeding, the Indemnitee shall,
if the Indemnitee believes that indemnification with respect thereto may be sought from the Company under this Agreement, notify the
Company of the commencement or threat of commencement thereof.

 

7.2 If,
at the time of the receipt of a notice of the commencement of a proceeding pursuant to Section 7. 1 hereof, the Company has D&O Insurance
in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures
set forth in the respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay,
on behalf of the Indemnitee, all amounts payable because of such proceeding in accordance with the terms of such D&O Insurance policies.

 

7.3 In
the event the Company shall be obligated to advance the expenses for any proceeding against the Indemnitee, the Company, if appropriate,
shall be entitled to assume the defense of such proceeding, with counsel approved by the Indemnitee (which approval shall not be unreasonably
withheld), upon the delivery to the Indemnitee of written notice of its election to do so. After delivery of such notice, approval of
such counsel by the Indemnitee and the retention of such counsel by the Company, the Company will not be liable to the Indemnitee under
this Agreement for any fees of counsel subsequently incurred by the Indemnitee with respect to the same proceeding, provided that:
(a) the Indemnitee shall have the right to employ Indemnitee’s own counsel in any such proceeding at the Indemnitee’ s expense;
(b) the Indemnitee shall have the right to employ Indemnitee’s own counsel in connection with any such proceeding, at the expense
of the Company, if such counsel serves in a review, observer, advice and counseling capacity and does not otherwise materially control
or participate in the defense of such proceeding; and (c) if (i) the employment of counsel by the Indemnitee has been previously authorized
by the Company, (ii) the Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and
the Indemnitee in the conduct of any such defense or (iii) the Company shall not, in fact, have employed counsel to assume the defense
of such proceeding, then the fees and expenses of the Indemnitee’ s counsel shall be at the expense of the Company.

 

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 8. Determination of Right to Indemnification.

 

8.1 To
the extent the Indemnitee has been successful on the merits or otherwise in defense of any proceeding referred to in Section 4.1 or 4.2
of this Agreement or in the defense of any claim, issue or matter described therein, the Company shall indemnify the Indemnitee against
expenses actually and reasonably incurred by Indemnitee in connection with the investigation, defense or appeal of such proceeding, or
such claim, issue or matter, as the case may be.

 

8.2 In
the event that Section 8.1 is inapplicable, or does not apply to the entire proceeding, the Company shall nonetheless indemnify the Indemnitee
unless the Company shall prove by clear and convincing evidence to a forum listed in Section 8.3 below that the Indemnitee has not met
the applicable standard of conduct required to entitle the Indemnitee to such indemnification.

 

8.3 The
Indemnitee shall be entitled to select the forum in which the validity of the Company’s claim under Section 8.2 hereof that the
Indemnitee is not entitled to indemnification will be heard from among the following, except that the Indemnitee can select a
forum consisting of the stockholders of the Company only with the approval of the Company:

 

(a) A
quorum of the Board consisting of directors who are not parties to the proceeding for which indemnification is being sought;

 

(b) The
stockholders of the Company;

 

(c) Legal
counsel mutually agreed upon by the Indemnitee and the Board, which counsel shall make such determination in a written opinion;

 

(d) A
panel of three arbitrators, one of whom is selected by the Company, another of whom is selected by the Indemnitee and the last of whom
is selected by the first two arbitrators so selected; or

(e) The
Court of Chancery of Delaware.

 

8.4 As
soon as practicable, and in no event later than 30 days after the forum has been selected pursuant to Section 8.3 above, the Company
shall, at its own expense, submit to the selected forum its claim that the Indemnitee is not entitled to indemnification, and the Company
shall act in the utmost good faith to assure the Indemnitee a complete opportunity to defend against such claim.

 

8.5 If
the forum selected in accordance with Section 8.3 hereof is not a court, then after the final decision of such forum is rendered, the
Company or the Indemnitee shall have the right to apply to the Court of Chancery of Delaware, for the purpose of appealing the decision
of such forum, provided that such right is executed within 60 days after the final decision of such forum is rendered. If the
forum selected in accordance with Section 8.3 hereof is a court, then the rights of the Company or the Indemnitee to appeal any decision
of such court shall be governed by the applicable laws and rules governing appeals of the decision of such court.

 

8.6 Notwithstanding
any other provision in this Agreement to the contrary, the Company shall indemnify the Indemnitee against all expenses incurred by the
Indemnitee in connection with any hearing or proceeding under this Section 8 involving the Indemnitee and against all expenses incurred
by the Indemnitee in connection with any other proceeding between the Company and the Indemnitee involving the interpretation or enforcement
of the rights of the Indemnitee under this Agreement unless a court of competent jurisdiction finds that each of the material claims
and/or defenses of the Indemnitee in any such proceeding was frivolous or not made in good faith.

 

    5

     

    

 

9. Exceptions. Any
other provision herein to the contrary notwithstanding, the Company shall not be obligated pursuant to the terms of this
Agreement:

 

9.1 Claims
Initiated by Indemnitee.  To indemnify or advance expenses to the Indemnitee with respect to proceedings or claims initiated
or brought voluntarily by the Indemnitee and not by way of defense, except with respect to proceedings or claims (a) specifically
authorized by the Board; (b) brought as a counterclaim or compulsory claim; or (c) brought to establish or enforce a right to indemnification
and/or advancement of expenses arising under this Agreement, the charter documents of the Company or any subsidiary or any statute or
law or otherwise, but such indemnification or advancement of expenses may be provided by the Company in specific cases if the Board finds
it to be appropriate; or

 

9.2
Unauthorized Settlements.  To indemnify the Indemnitee hereunder for any amounts paid in settlement of a proceeding
unless the Company consents in advance in writing to such settlement, which consent shall not be unreasonably withheld; or

 

9.3 Securities
Law Actions. To indemnify the Indemnitee on account of any suit in which judgment is rendered against the Indemnitee for an accounting
of profits made from the purchase or sale by the Indemnitee of securities of the Company pursuant to the provisions of Section l 6(b)
of the Securities Exchange Act of 1934 and amendments thereto or similar provisions of any federal, state or local statutory law; or

 

9.4 Unlawful
Indemnification. To indemnify the Indemnitee if a final decision by a court having jurisdiction in the matter shall determine
that such indemnification is not lawful. In this respect, the Company and the Indemnitee have been advised that the Securities and Exchange
Commission takes the position that indemnification for liabilities arising under the federal securities laws is against public policy
and is, therefore, unenforceable and that claims for indemnification should be submitted to appropriate courts for adjudication.

 

10. Non-Exclusivity.
The provisions for indemnification and advancement of expenses set forth in this Agreement shall not be deemed exclusive of any
other rights which the Indemnitee may have under any provision of law, the Company’s Certificate of Incorporation or Bylaws, the
vote of the Company’s stockholders or disinterested directors, other agreements or otherwise, both as to action in the Indemnitee’s
official capacity and to action in another capacity while occupying Indemnitee’s position as an agent of the Company, and the Indemnitee’s
rights hereunder shall continue after the Indemnitee has ceased acting as an agent of the Company and shall inure to the benefit of the
heirs, executors and administrators of the Indemnitee.

 

11. General
Provisions.

 

11.1 Interpretation
of Agreement.  It is understood that the parties hereto intend this Agreement to be interpreted and enforced so as to provide
indemnification and advancement of expenses to the Indemnitee to the fullest extent now or hereafter permitted by law, except as expressly
limited herein.

 

11.2 Severability.
If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever,
then: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, all
portions of any paragraphs of this Agreement containing any such provision held to be invalid, illegal or unenforceable that are not
themselves invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby; and (b) to the fullest extent possible,
the provisions of this Agreement (including, without limitation, all portions of any paragraphs of this Agreement containing any such
provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall be construed
so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable and to give effect to Section 11.1
hereof.

 

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11.3 Modification
and Waiver. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both parties
hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof
(whether or not similar), nor shall such waiver constitute a continuing waiver.

 

11.4 Subrogation.
In the event of full payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the
rights of recovery of the Indemnitee, who shall execute all documents required and shall do all acts that may be necessary or desirable
to secure such rights and to enable the Company effectively to bring suit to enforce such rights.

 

11.5 Counterparts.
This Agreement may be executed in one or more counterparts, which shall together constitute one agreement.

 

11.6 Successors
and Assigns. The terms of this Agreement shall bind, and shall inure to the benefit of, the successors and assigns of the parties
hereto.

 

11.7 Notices.
All notices to be provided pursuant to this Agreement (and any consents permitted by the terms of this Agreement) shall be in writing
and delivered by hand, or sent by e-mail transmission, or other electronic means, or international courier to the Company at 670 Long
Beach Boulevard, Long Beach, New York 11561 USA, Attn: General Counsel, E-mail: legal@ipsidy.com, or to Indemnitee at the address and
e-mail address set forth on the signature page hereto. All such notices delivered by hand or by courier shall be deemed served upon receipt
or refusal of receipt by the addressee. All notices given electronically shall be deemed served upon the next business day after transmission,
provided no error message was received. Either party may serve notice in accordance with this Section changing their respective addresses
for service.

 

11.8 Governing
Law. This Agreement shall be governed exclusively by and construed according to the laws of the State of Delaware, without giving
effect to that body of laws pertaining to conflict of laws.

 

11.9 Consent
to Jurisdiction. The Company and the Indemnitee each hereby irrevocably consent to the jurisdiction of the courts of the State
of Delaware for all purposes in connection with any action or proceeding that arises out of or relates to this Agreement.

 

11.10 Attorneys’
Fees. In the event Indemnitee is required to bring any action to enforce rights under this Agreement (including, without limitation,
the expenses of any Proceeding described in Section 1.3) the Indemnitee shall be entitled to all reasonable fees and expenses in bringing
and pursuing such action, unless a court of competent jurisdiction finds each of the material claims of the Indemnitee in any such action
was frivolous and not made in good faith.

 

[SIGNATURE
PAGE FOLLOWS]

 

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IN
WITNESS WHEREOF, the parties hereto have entered into this Indemnification Agreement effective as of the date first written above.

 

	THE COMPANY:	 
	 	 	 
	BY: 	 	 
	Name: 	Phillip L. Kumnick	 
	Title:	CEO	 

 

	THE INDEMNITEE:	 
	 	 
	 	 
	 	 
	Address:	 
	 	 
	E-mail:

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