Document:

Exhibit 4.2 

NXT-ID, INC.

FORM OF WARRANT AGREEMENT

 

WARRANT
AGREEMENT (this “Agreement”) entered into as of January ___, 2013 (the “Issuance Date”),
between Nxt-ID, Inc., a Delaware corporation, with offices at One Reservoir Corporate Centre, 4 Research Drive - Suite 402,
Shelton CT 06484 (the “Company ”), and [Transfer Agent] with offices at [______]
(the “Warrant Agent”).

WHEREAS, the Company
is engaged in a public offering (the “Offering”) of units (the “Units”) with each unit consisting
of one common voting share, par value $0.001 per share (the “Common Stock”), and one warrant (the “Warrants”),
with each such Warrant evidencing the right of the holder thereof to purchase one share of Common Stock, for $1.00, subject to
adjustment as described herein;

WHEREAS, the Company
has filed with the Securities and Exchange Commission (the “Commission”) a registration statement on Form S-1
(File No. 333-XXXXXX; as the same may be amended from time to time, the “Registration Statement ”) for
the registration, under the Securities Act of 1933, as amended (the “Securities Act”), of, among other securities,
the Units, the Warrants and shares of Common Stock issuable upon exercise of the Warrants (the “Warrant Shares”);
and such Registration Statement was declared effective by the Commission on _______;

WHEREAS, the Company
desires the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing to so act, in connection with the issuance,
registration, transfer, exchange and exercise of the Warrants;

WHEREAS, the Company
desires to provide for the form and provisions of the Warrants, the terms upon which they shall be issued and exercised, and the
respective rights, limitation of rights and immunities of the Company, the Warrant Agent, and the holders of the Warrants (each,
a “Holder”); and

WHEREAS, all acts
and things have been done and performed which are necessary to make the Warrants, when executed on behalf of the Company and countersigned
by or on behalf of the Warrant Agent, as provided herein, the valid and legally binding obligations of the Company, and to authorize
the execution and delivery of this Agreement.

NOW, THEREFORE,
in consideration of the mutual agreements herein contained, the parties hereto agree as follows:

1. Appointment
of Warrant Agent. The Company hereby appoints the Warrant Agent to act as agent for the Company for the Warrants, and the Warrant
Agent hereby accepts such appointment and agrees to perform the same in accordance with the terms and conditions set forth in this
Agreement.

2. Warrants.

2.1 Form of
Warrant. Each Warrant shall be issued in registered form only, shall be in substantially the form of Exhibit A hereto,
the provisions of which are incorporated herein and shall be signed by, or bear the facsimile signature of, the Chief Executive
Officer, President, Acting Chief Financial Officer, Chief Financial Officer, Chief Operating Officer or Secretary of the Company,
and shall bear a facsimile of the Company’s seal. In the event the person whose facsimile signature has been placed upon
any Warrant shall have ceased to serve in the capacity in which such person signed the Warrant before such Warrant is issued, such
Warrant may be issued with the same effect as if he or she had not ceased to be in such capacity at the date of issuance. All of
the Warrants shall initially be represented by one or more book-entry certificates (each, a “Book-Entry Warrant Certificate”),
unless a Holder requests issuance of his or her Warrant in certificated form.

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2.2 Effect
of Countersignature. Unless and until countersigned by the Warrant Agent pursuant to this Agreement, a Warrant shall be invalid
and of no effect and may not be exercised by a Holder.

2.3 Registration.

2.3.1 Warrant
Register. The Warrant Agent shall maintain books (“Warrant Register”), for the registration of the original
issuance and the registration of any transfer of the Warrants. Upon the initial issuance of the Warrants, the Warrant Agent shall
issue and register the Warrants in the names of the respective Holders in such denominations and otherwise in accordance with instructions
delivered to the Warrant Agent by the Company. To the extent the Warrants are “DTC Eligible” as of the Issuance Date,
all of the Warrants shall be represented by one or more Book-Entry Warrant Certificates deposited with the Depository Trust Company
(the “Depository”) and registered in the name of Cede & Co., a nominee of the Depository, subject to
the right of each Holder to request that his, her, or its Warrant be issued in certificated form. Ownership of beneficial interests
in the Book-Entry Warrant Certificates shall be shown on, and the transfer of such ownership shall be effected through, records
maintained (i) by the Depository or its nominee for each Book-Entry Warrant Certificate; (ii) by institutions that have
accounts with the Depository (such institution, with respect to a Warrant in its account, a “Participant”);
or (iii) directly on the book-entry records of the Warrant Agent with respect only to owners of beneficial interests that
represent such direct registration.

If the Warrants
are not “DTC Eligible” as of the Issuance Date or the Depository subsequently ceases to make its book-entry settlement
system available for the Warrants, the Company may instruct the Warrant Agent to make other arrangements for book-entry settlement
within ten (10) Business Days after the Depository ceases to make its book-entry settlement available. In the event that the
Company does not make alternative arrangements for book-entry settlement within ten (10) Business Days or the Warrants are
not eligible for, or it is no longer necessary to have the Warrants available in, book-entry form, the Warrant Agent shall provide
written instructions to the Depository to deliver to the Warrant Agent for cancellation each Book-Entry Warrant Certificate, and
the Company shall instruct the Warrant Agent to deliver to the Depository definitive Warrant Certificates in physical form evidencing
such Warrants. Such definitive Warrant Certificates shall be in substantially the form attached hereto as Exhibit A.

As used herein,
the term “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in
The City of New York are authorized or required by law or executive order to remain closed.

2.3.2 Beneficial
Owner; Registered Holder. Prior to due presentment for registration of transfer of any Warrant, the Company and the Warrant
Agent may deem and treat the person in whose name such Warrant shall be registered upon the Warrant Register (“registered
holder”) as the absolute owner of such Warrant and of each Warrant represented thereby (notwithstanding any notation
of ownership or other writing on the Warrant Certificate made by anyone other than the Company or the Warrant Agent) for the purpose
of any exercise thereof and for all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice
to the contrary. Any person in whose name ownership of a beneficial interest in the Warrants evidenced by a Book-Entry Warrant
Certificate is recorded in the records maintained by the Depository or its nominee shall be deemed the “beneficial owner”
thereof; provided , that all such beneficial interests shall be held through a Participant which shall be the registered
holder of such Warrants. As used herein, the term “Holder” refers only to a registered holder of the Warrants.

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[2.4 Detachability of
Warrants. The Units will not be separable into the underlying Common Stock and Warrants until the earlier of (i) the exercise
in full of the over-allotment option granted to the underwriters in connection with the Offering (the “Underwriters”)
and (ii) forty-five (45) calendar days from the date of the final prospectus in connection with the Offering (the “Initial
Separation Date”). Following the Initial Separation Date, the Units will be separable only upon the request of a Holder.
In the event that the Offering is not conducted by an Underwriter, then the Units shall be separable immediately following the
closing of the Offering.]

3. Terms and
Exercise of Warrants.

3.1 Exercise
Price. Each Warrant shall, when countersigned by the Warrant Agent, entitle the Holder, subject to the provisions of such Warrant
and of this Agreement, to purchase from the Company the number of shares of Common Stock stated therein, at a price of $1.00 per
whole share, subject to the subsequent adjustments provided in Section 4 hereof. The term “Exercise Price”
as used in this Agreement refers to the price per share at which Common Stock may be purchased at the time a Warrant is exercised.

3.2 Duration
of Warrants. The Warrants may be exercised only after the separation of the Units, as described above in Section 2.4.
Following the separation of a Unit, the underlying Warrant may be exercised at any time during the period (the “Exercise
Period”) beginning on the date of such separation and terminating at 5:00 PM (time), New York City time, on June 30,
2016 (the “ Expiration Date ”). Each Warrant not exercised on or before the Expiration Date shall become null
and void, and all rights thereunder and all rights in respect thereof under this Agreement shall cease at the close of business
on the Expiration Date.

3.3 Exercise
of Warrants.

3.3.1 Exercise
and Payment. A Holder may exercise a Warrant in whole, but not in part, by delivering, not later than 5:00 PM, New York City
time, on any Business Day during the Exercise Period (the “Exercise Date”) to the Warrant Agent at its corporate
trust department (i) the Warrant Certificate evidencing the Warrants to be exercised or, in the case of a Book-Entry Warrant
Certificate, the Warrants to be exercised shown on the records of the Depository (the “Book-Entry Warrants”)
to an account of the Warrant Agent at the Depository designated for such purpose in writing by the Warrant Agent to the Depository
from time to time; (ii) an election to purchase the Warrant Shares underlying the Warrants to be exercised (an “Election
to Purchase”), properly completed and executed by the Holder on the reverse of the Warrant Certificate or, in the case
of a Book-Entry Warrant Certificate, properly delivered by the Participant in accordance with the Depository’s procedures;
and (iii) the Exercise Price for each Warrant to be exercised in lawful money of the United States of America by certified
or official bank check or a bank wire transfer in immediately available funds, in each case payable to the order of the Company.

If any of: (a) the
Warrant Certificate or the Book-Entry Warrants; (b) the Election to Purchase; or (c) the Exercise Price therefor, is
received by the Warrant Agent after 5:00 PM, New York City time, on the specified Exercise Date, the Warrants shall be deemed to
be received and exercised on the Business Day next succeeding the Exercise Date. If the date specified as the Exercise Date is
not a Business Day, the Warrants shall be deemed to be received and exercised on the next succeeding day that is a Business Day.
If the Warrants are received or deemed to be received after the Expiration Date, the exercise thereof shall be null and void and
any funds delivered to the Warrant Agent shall be returned to the Holder. In no event will interest accrue on funds deposited with
the Warrant Agent in respect of an exercise or attempted exercise of Warrants. The validity of any exercise of Warrants shall be
determined by the Company, in its sole discretion, and such determination shall be final and binding upon the Holder and the Warrant
Agent. Neither the Company nor the Warrant Agent shall have any obligation to inform a Holder of the invalidity of any exercise
of any Warrants.

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The Warrant Agent
promptly shall provide to the Company all certified or official bank checks received by it in payment of the Exercise Price and
shall advise the Company via telephone at the end of each day on which funds for the exercise of the Warrants are received of such
amounts. The Warrant Agent shall promptly confirm such telephonic advice to the Company in writing.

3.3.2 Issuance
of Certificates. The Warrant Agent shall, by 5:00 PM, New York City time, on the Business Day following the Exercise Date of
any Warrant, advise the Company or the transfer agent and registrar in respect of (a) the number of Warrant Shares issuable
upon such exercise in accordance with the terms and conditions of this Agreement; (b) the instructions of each Holder with
respect to delivery of the Warrant Shares issuable upon such exercise, and the delivery of definitive Warrant Certificates, as
appropriate, evidencing the balance, if any, of the Warrants remaining after such exercise; (c) in case of a Book-Entry Warrant
Certificate, the notation that shall be made to the records maintained by the Depository, its nominee for each Book-Entry Warrant
Certificate, or a Participant, as appropriate, evidencing the balance, if any, of the Warrants remaining after such exercise; and
(d) such other information as the Company or such transfer agent and registrar shall reasonably require.

The Company shall,
by 5:00 PM, New York City time, on the third Business Day next succeeding the Exercise Date of any Warrant and the clearance of
the funds in payment of the aggregate Exercise Price, execute, issue, and deliver to the Warrant Agent, the Warrant Shares to which
such Holder is entitled, in fully registered form, registered in such name or names as may be directed by such Holder. Upon receipt
of such Warrant Shares, the Warrant Agent shall, by 5:00 PM, New York City time, on the third Business Day next succeeding such
Exercise Date, transmit such Warrant Shares to, or upon the order of, such Holder.

In lieu of delivering
physical certificates representing the Warrant Shares issuable upon exercise of any Warrants (provided the Company’s
transfer agent is participating in the Depository’s Fast Automated Securities Transfer program), the Company shall use its
commercially reasonable efforts to cause its transfer agent to electronically transmit the Warrant Shares issuable upon exercise
to the Depository by crediting the account of the Depository or of the Participant, as the case may be, through its Deposit Withdrawal
Agent Commission system. The time periods for delivery described in the immediately preceding paragraph shall apply to the electronic
transmittals described herein.

3.3.3 Valid Issuance.
All shares of Common Stock issued upon the proper exercise of any Warrants in conformity with this Agreement shall be duly authorized,
validly issued, fully paid and nonassessable.

3.3.4 No Fractional
Exercise. Warrants may be exercised only into whole numbers of Warrant Shares. No fractional Warrant Shares shall be issued
upon the exercise of a Warrant, but rather the number of Warrant Shares to be issued shall be rounded up to the nearest whole
number. If fewer than all of the Warrants evidenced by a Warrant Certificate are exercised, a new Warrant Certificate for the
number of unexercised Warrants remaining shall be executed by the Company and countersigned by the Warrant Agent, as provided
in Section 2 of this Agreement, and delivered to the Holder at the address specified on the books of the Warrant Agent or
as otherwise specified by such Holder. If fewer than all of the Warrants evidenced by a Book-Entry Warrant Certificate are exercised,
a notation shall be made to the records maintained by the Depository, its nominee for each Book-Entry Warrant Certificate, or
a Participant, as appropriate, evidencing the balance of the Warrants remaining after such exercise.

3.3.5 No Transfer
Taxes. The Company shall not be required to pay any stamp or other tax or governmental charge required to be paid in connection
with any transfer involved in the issue of the Warrant Shares upon the exercise of Warrants; and in the event that any such transfer
is involved, the Company shall not be required to issue or deliver any Warrant Shares until such tax or other charge shall have
been paid or it has been established to the Company’s satisfaction that no such tax or other charge is due.

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3.3.6 Date of
Issuance. Each person in whose name any such certificate for shares of Common Stock is issued shall, for all purposes, be deemed
to have become the holder of record of such shares on the date on which the applicable Warrant was surrendered and payment of the
Exercise Price was made, irrespective of the date of delivery of any such certificate, except that, if the date of such surrender
and payment is a date when the stock transfer books of the Company are closed, such person shall be deemed to have become the holder
of record of such shares at the close of business on the next succeeding date on which such stock transfer books are open.

3.3.7 Disputes.
In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the
Company shall promptly issue to the applicable Holders the number of Warrant Shares that are not disputed.

4. Adjustments.

4.1 Adjustment
upon Subdivision or Combination of Common Stock. If the Company at any time after the Issuance Date subdivides (by any stock
split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) its outstanding shares of Common Stock
into a greater number of shares, the Exercise Price in effect immediately prior to such subdivision shall be proportionately reduced
and the number of Warrant Shares shall be proportionately increased. If the Company at any time after the Issuance Date combines
(by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) its outstanding shares
of Common Stock into a smaller number of shares, the Exercise Price in effect immediately prior to such combination shall be proportionately
increased and the number of Warrant Shares shall be proportionately decreased. Any adjustment under this Section 4.1 shall
become effective at the close of business on the date the subdivision or combination becomes effective. The Company shall promptly
notify the Warrant Agent of any such adjustment and give specific instructions to the Warrant Agent with respect to any adjustments
to the Warrant Register.

4.2 Adjustment
for Other Distributions. In the event the Company shall fix a record date for the making of a dividend or distribution to all
holders of Common Stock of any evidences of indebtedness or assets or subscription rights or warrants (excluding those referred
to in Section 4.1 or other dividends paid out of retained earnings), then, in each such case, the Exercise Price shall be
adjusted by multiplying (i) the Exercise Price in effect immediately prior to the record date fixed for determination of stockholders
entitled to receive such distribution by (ii) a fraction of which (a) the denominator shall be the VWAP determined as
of the record date mentioned above, and (b) numerator shall be such VWAP on such record date less the then per share fair
market value at such record date of the portion of such assets or evidence of indebtedness so distributed applicable to one outstanding
share of the Common Stock as determined by the Board of Directors in good faith. In either case the adjustments shall be described
in a statement provided to each Holder of the portion of assets or evidences of indebtedness so distributed or such subscription
rights applicable to one share of Common Stock. Such adjustment shall be made whenever any such distribution is made and shall
become effective immediately after the record date mentioned above.

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then
listed or quoted on NYSE MKT (formerly NYSE AMEX), The NASDAQ Capital Market, The NASDAQ Global Market, The NASDAQ Global Select
Market or the New York Stock Exchange (each, a “Trading Market”), the daily volume weighted average price of
the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or
quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m., New York City time, to 4:02 p.m., New York City time);
(b) the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Over-the-Counter
Bulletin Board; (c) if the Common Stock is not then listed or quoted for trading on the Over-the-Counter Bulletin Board and
if prices for the Common Stock are then reported in the “Pink Sheets” published by OTC Markets, Inc. (or a similar
organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock
so reported; or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser
selected in good faith by the Holders of a majority in interest of the Warrants then outstanding and reasonably acceptable to the
Company, the fees and expenses of which shall be paid by the Company.

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4.3 Reclassification,
Consolidation, Purchase, Combination, Sale, or Conveyance. If, at any time while the Warrants are outstanding, (i) the
Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or
into another person; (ii) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance
or other disposition of all or substantially all of its assets in one or a series of related transactions; (iii) any, direct
or indirect, purchase offer, tender offer, or exchange offer (whether by the Company or another person) is completed pursuant to
which holders of Common Stock are permitted to sell, tender, or exchange their shares for other securities, cash, or property and
has been accepted by the holders of 50% or more of the outstanding Common Stock; (iv) the Company, directly or indirectly,
in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any
compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash
or property; or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share
purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or
scheme of arrangement) with another person whereby such other person acquires more than 50% of the outstanding shares of Common
Stock (not including any shares of Common Stock held by the other person or other persons making or party to, or associated or
affiliated with the other persons making or party to, such stock or share purchase agreement or other business combination) (each
a “Fundamental Transaction”), then, upon any subsequent exercise of a Warrant, each Holder shall have the right
to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such
Fundamental Transaction, the same amount and kind of securities, cash or property, if any, of the successor or acquiring corporation
or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which each Warrant
is exercisable immediately prior to such Fundamental Transaction. For purposes of any such exercise, the determination of the Exercise
Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable
in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among
the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration.
If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction,
then the Holder shall be given the same choice as to the Alternate Consideration that such Holder receives upon any exercise of
each Warrant following such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction
in which the Company is not the survivor (the “Successor Entity”), and for which stockholders received any equity
securities of the Successor Entity, to assume in writing all of the obligations of the Company under this Agreement in accordance
with the provisions of this Section 4.3 pursuant to written agreements and shall, upon the written request of such Holder,
deliver to such Holder, in exchange for the applicable Warrants created by this Agreement, a security of the Successor Entity evidenced
by a written instrument substantially similar in form and substance to the Warrants which are exercisable for a corresponding number
of shares of capital stock of such Successor Entity (or its parent entity), if any, plus any Alternate Consideration, receivable
as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which the Warrants are exercisable
immediately prior to such Fundamental Transaction, and with an exercise price which applies the Exercise Price hereunder to such
shares of capital stock, if any, plus any Alternate Consideration (but taking into account the relative value of the shares of
Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital
stock and such exercise price being for the purpose of protecting the economic value of such Warrant immediately prior to the consummation
of such Fundamental Transaction). Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to,
and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Agreement and the
Warrants referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right
and power of the Company and shall assume all of the obligations of the Company under this Agreement and the Warrants with the
same effect as if such Successor Entity had been named as the Company herein and therein.

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The Company shall
instruct the Warrant Agent to mail, by first class mail, postage prepaid, to each Holder, written notice of the execution of any
such amendment, supplement to this Agreement and/or the Warrants, or other agreement. Any such amendment, supplement or other agreement
entered into by the Successor Entity shall provide for adjustments, which shall be as nearly equivalent as may be practicable to
the adjustments provided for in this Section 4. The Warrant Agent shall be under no responsibility to determine the correctness
of any provisions contained in such amendment, supplement or other agreement relating either to the kind or amount of securities
or other property receivable upon exercise of the Warrants or with respect to the method employed and provided therein for any
adjustments, and shall be entitled to rely upon the provisions contained in any such amendment, supplement or other agreement.
The provisions of this Section 4.3 shall similarly apply to successive reclassifications, changes, consolidations, mergers,
sales, and conveyances of the kind described above.

4.4 Other Events.
If any event occurs of the type contemplated by the provisions of Section 4.1, 4.2, or 4.3 but not expressly provided for
by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights
with equity features to all holders of Common Stock for no consideration), then the Company’s Board of Directors shall in
good faith make an adjustment in the Exercise Price and the number of Warrant Shares so as to protect the rights of each Holder.

4.5 Notices
of Changes in Warrant. Upon every adjustment of the Price or the number of Warrant Shares, the Company shall give written notice
thereof to the Warrant Agent, which notice shall (i) state the Exercise Price resulting from such adjustment; (ii) state
the increase or decrease, if any, in the number of Warrant Shares purchasable upon the exercise of a Warrant; and (iii) set
forth in reasonable detail the method of calculation and the facts upon which such calculation is based. Upon the occurrence of
any event specified in Sections 4.1, 4.2 or 4.3 then, in any such event, the Company shall give written notice to each Holder,
at the last address set forth for such Holder in the Warrant Register, of the record date or the effective date of the event. Failure
to give such notice, or any defect therein, shall not affect the legality or validity of such event.

4.6 No Fractional
Shares. If, by reason of any adjustment made pursuant to this Section 4, a Holder would be entitled, upon the exercise
of such Warrant, to receive a fractional interest in a share, the Company shall, upon such exercise, round up to the nearest whole
number the number of the shares of Common Stock to be issued to such Holder.

4.7 Form of
Warrant. The form of Warrant attached hereto as Exhibit A need not be changed because of any adjustment pursuant to
this Section 4, and any Warrants issued after such adjustment may state the same Exercise Price and the same number of shares
as is stated in the Warrants initially issued pursuant to this Agreement. However, the Company may at any time, in its sole discretion,
make any change in the form of Warrant that the Company may deem appropriate and that does not affect the substance thereof, and
any Warrant thereafter issued or countersigned, whether in exchange or substitution for an outstanding Warrant or otherwise, may
be in the form as so changed.

5. Transfer
and Exchange of Warrants.

5.1 Registration
of Transfer. The Warrant Agent shall register the transfer, from time to time, of any outstanding Warrant upon the Warrant
Register, upon surrender of such Warrant for transfer, properly endorsed with signatures properly guaranteed and accompanied by
appropriate instructions for transfer. Upon any such transfer, a new Warrant representing an equal aggregate number of Warrants
shall be issued and the old Warrant shall be cancelled by the Warrant Agent. The Warrants so cancelled shall be delivered by the
Warrant Agent to the Company from time to time upon request.

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5.2 Procedure
for Surrender of Warrants. Warrants may be surrendered to the Warrant Agent, together with a written request for exchange or
transfer reasonably acceptable to the Warrant Agent, duly executed by the Holder thereof, or by a duly authorized attorney, and
thereupon the Warrant Agent shall issue in exchange therefor one or more new Warrants as requested by the Holder of the Warrants
so surrendered, representing an equal aggregate number of Warrants; provided, however , that except as otherwise provided
herein or in any Book-Entry Warrant Certificate, each Book-Entry Warrant Certificate may be transferred only in whole and only
to the Depository, to another nominee of the Depository, to a successor depository, or to a nominee of a successor depository;
provided further, however , that in the event that a Warrant surrendered for transfer bears a restrictive legend, the Warrant
Agent shall not cancel such Warrant and issue new Warrants in exchange therefor until the Warrant Agent has received an opinion
of counsel for the Company stating that such transfer may be made and indicating whether the new Warrants must also bear a restrictive
legend. Upon any such registration of transfer, the Company shall execute, and the Warrant Agent shall countersign and deliver,
in the name of the designated transferee a new Warrant Certificate or Warrant Certificates of any authorized denomination evidencing
in the aggregate a like number of unexercised Warrants.

5.3 Fractional
Warrants. The Warrant Agent shall not be required to effect any registration of transfer or exchange which will result in the
issuance of a Warrant Certificate for a fraction of a Warrant.

5.4 Service
Charges. A service charge shall be made for any exchange or registration of transfer of Warrants, as negotiated between the
Company and the Warrant Agent.

5.5 Warrant
Execution and Countersignature. The Warrant Agent is hereby authorized to countersign and to deliver, in accordance with the
terms of this Agreement, the Warrants required to be issued pursuant to the provisions of this Section 5, and the Company,
whenever required by the Warrant Agent, shall supply the Warrant Agent with Warrants duly executed on behalf of the Company for
such purpose.

 

6. Limitations on Exercise.
Neither the Warrant Agent nor the Company shall effect any exercise of any Warrant, and no Holder shall have the right to exercise
any portion of a Warrant, to the extent that after giving effect to the issuance of shares of Common Stock after exercise as set
forth on the applicable Election to Purchase, such Holder (together with such Holder’s Affiliates (as defined in Rule 405
under the Securities Act), and any other persons acting as a group together with such Holder or any of such Holder’s Affiliates),
would beneficially own in excess of 4.99% of the Company’s Common Stock. For purposes of the foregoing sentence, the number
of shares of Common Stock beneficially owned by a Holder and its Affiliates shall include the number of shares of Common Stock
issuable upon exercise of a Warrant with respect to which such determination is being made, but shall exclude the number of shares
of Common Stock which would be issuable upon exercise of the remaining, nonexercised portion of any Warrant beneficially owned
by such Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this Section 6, beneficial
ownership shall be calculated in accordance with Section 13(d) of the Securities and Exchange Act of 1934 (the “Exchange
Act”), and the rules and regulations promulgated thereunder, it being acknowledged by each Holder that neither the Warrant
Agent nor the Company is representing to such Holder that such calculation is in compliance with Section 13(d) of the Exchange
Act and such Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the
limitation contained in this Section 6 applies, the determination of whether a Warrant is exercisable (in relation to other
securities owned by a Holder together with any Affiliates) and of which portion of a Warrant is exercisable shall be in the sole
discretion of a Holder, and the submission of an Election to Purchase shall be deemed to be such Holder’s determination of
whether such Warrant is exercisable (in relation to other securities owned by such Holder together with any Affiliates) and of
which portion of a Warrant is exercisable, and neither the Warrant Agent nor the Company shall have any obligation to verify or
confirm the accuracy of such determination and neither of them shall have any liability for any error made by such Holder. In addition,
a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange
Act and the rules and regulations promulgated thereunder. For purposes of this Section 6, in determining the number of outstanding
shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (a) the Company’s
most recent Form 10-Q or Form 10-K filed with the Commission, as the case may be, (b) a more recent public announcement by
the Company or (c) a more recent written notice by the Company or the Company’s transfer agent setting forth the number
of shares of Common Stock outstanding. The provisions of this Section 6 shall be construed and implemented in a manner otherwise
than in strict conformity with the terms of this Section 6 to correct this subsection (or any portion hereof) which may be
defective or inconsistent with the intended beneficial ownership limitation herein contained or to make changes or supplements
necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to any
successor Holder.

    	8

    	 	

    

7. Other Provisions
Relating to Rights of Holders.

7.1 No Rights
as Stockholder. Except as otherwise specifically provided herein, a Holder, solely in its capacity as an owner of a Warrant,
shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor
shall anything contained in this Agreement be construed to confer upon a Holder, solely in its capacity as the owner of a Warrant,
any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether
any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice
of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares
which it is then entitled to receive upon the due exercise of a Warrant. For the avoidance of doubt, ownership of a Warrant does
not entitle the Holder or any beneficial owner thereof to any other rights of a holder of shares of Common Stock.

7.2 Lost, Stolen,
Mutilated, or Destroyed Warrants. If any Warrant is lost, stolen, mutilated, or destroyed, the Company and the Warrant Agent
may, on such terms as to indemnity (including obtaining an open penalty bond protecting the Warrant Agent) or otherwise as they
may in their discretion impose (which shall, in the case of a mutilated Warrant, include the surrender thereof), issue a new Warrant
of like denomination, tenor, and date as the Warrant so lost, stolen, mutilated, or destroyed. Any such new Warrant shall constitute
a substitute contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated, or destroyed Warrant
shall be at any time enforceable by anyone.

7.3 Reservation
of Common Stock. The Company shall at all times reserve and keep available a number of its authorized but unissued shares of
Common Stock that will be sufficient to permit the exercise in full of all outstanding Warrants issued pursuant to this Agreement.

8. Concerning
the Warrant Agent and Other Matters.

8.1 Concerning
the Warrant Agent. The Warrant Agent:

(i) shall have
no duties or obligations other than those set forth herein and no duties or obligations shall be inferred or implied;

(ii) may rely
on and shall be held harmless by the Company in acting upon any certificate, statement, instrument, opinion, notice, letter, facsimile
transmission, telegram or other document, or any security delivered to it, and reasonably believed by it to be genuine and to have
been made or signed by the proper party or parties;

(iii) may rely
on, and shall be held harmless by the Company in acting upon, written or oral instructions or statements from the Company with
respect to any matter relating to its acting as the Warrant Agent;

    	9

    	 	

    

(iv) may consult
with counsel satisfactory to it (including counsel for the Company) and shall be held harmless by the Company in relying on the
advice or opinion of such counsel in respect of any action taken, suffered, or omitted by it hereunder in good faith and in accordance
with such advice or opinion of such counsel;

(v) solely shall
make the final determination as to whether or not a Warrant received by the Warrant Agent is duly, completely and correctly executed,
and the Warrant Agent shall be held harmless by the Company in respect of any action taken, suffered or omitted by the Warrant
Agent hereunder in good faith and in accordance with such determination;

(vi) shall not
be obligated to take any legal or other action hereunder which might, in its judgment, subject or expose it to any expense or liability
unless it shall have been furnished with an indemnity satisfactory to it; and

(vii) shall not
be liable or responsible for any failure of the Company to comply with any of the Company’s obligations relating to the Registration
Statement or this Agreement, including, without limitation, obligations under applicable regulation or law.

 

8.2 Payment of Taxes.
The Company shall, from time to time, promptly pay all taxes and charges that may be imposed upon the Company or the Warrant Agent
in respect of the issuance or delivery of Warrant Shares upon the exercise of Warrants, but the Company shall not be obligated
to pay any transfer taxes in respect of the Warrants or such Warrant Shares. The Warrant Agent shall not register any transfer,
or issue or deliver any Warrant Certificate(s) or Warrant Shares, unless or until the persons requesting such registration or issuance
shall have paid to the Warrant Agent, for the account of the Company, the amount of such tax, if any, or shall have established
to the reasonable satisfaction of the Company that such tax, if any, has been paid.

8.3 Resignation,
Consolidation, or Merger of Warrant Agent.

8.3.1 Appointment
of Successor Warrant Agent. The Warrant Agent, or any successor to it hereafter appointed, may resign its duties and be discharged
from all further duties and liabilities hereunder after giving sixty (60) calendar days’ notice in writing to the Company.
If the office of the Warrant Agent becomes vacant by resignation or incapacity to act or otherwise, the Company shall appoint in
writing a successor Warrant Agent in place of the Warrant Agent. If the Company shall fail to make such appointment within a period
of thirty (30) calendar days after it has been notified in writing of such resignation or incapacity by the Warrant Agent
or by the Holder (who shall, with such notice, submit such Holder’s Warrants for inspection by the Company), then such Holder
may apply to the Supreme Court of the State of New York for the County of New York for the appointment of a successor Warrant Agent,
the expenses of which shall be paid by the Company. Any successor Warrant Agent (but not including the initial Warrant Agent),
whether appointed by the Company or by such court, shall be a corporation organized and existing under the laws of the State of
New York, in good standing and having its principal office in the Borough of Manhattan, City of New York and State of New York,
and authorized under such laws to exercise corporate trust powers and subject to supervision or examination by federal or state
authority. After appointment, any successor Warrant Agent shall be vested with all the authority, powers, rights, immunities, duties,
and obligations of its predecessor Warrant Agent with like effect as if originally named as the Warrant Agent hereunder, without
any further act or deed; but if for any reason it becomes necessary or appropriate, the predecessor Warrant Agent shall execute
and deliver, at the expense of the Company, an instrument transferring to such successor Warrant Agent all the authority, powers,
and rights of such predecessor Warrant Agent hereunder; and upon request of any successor Warrant Agent the Company shall make,
execute, acknowledge, and deliver any and all instruments in writing for more fully and effectually vesting in and confirming to
such successor Warrant Agent all such authority, powers, rights, immunities, duties, and obligations.

    	10

    	 	

    

8.3.2 Notice
of Successor Warrant Agent. In the event a successor Warrant Agent shall be appointed, the Company shall give notice thereof
to the predecessor Warrant Agent and the transfer agent for the Common Stock not later than the effective date of any such appointment.

8.3.3 Merger,
Conversion or Consolidation of Warrant Agent. Any corporation into which the Warrant Agent may be merged, converted or with
which it may be consolidated or any corporation resulting from any merger, conversion or consolidation to which the Warrant Agent
shall be a party shall be the successor Warrant Agent under this Agreement without any further act.

 

8.4 Fees and Expenses
of Warrant Agent.

8.4.1 Remuneration.
The Company agrees to pay the Warrant Agent reasonable remuneration in an amount separately agreed to between the Company and the
Warrant Agent for its services as the Warrant Agent hereunder and will reimburse the Warrant Agent upon demand for all expenditures
that the Warrant Agent may reasonably incur in the execution of its duties hereunder. One half of the total Warrant Agent fees
(not including postage) must be paid upon execution of this Agreement. The remaining half must be paid within fifteen (15) Business
Days thereafter. An invoice for any out-of-pocket and/or per item fees incurred will be rendered to and payable by the Company
within fifteen (15) days of the date of said invoice. It is understood and agreed that all services to be performed by the
Warrant Agent shall cease if full payment for its services has not been received in accordance with the above schedule, and said
services will not commence thereafter until all payment due has been received by the Warrant Agent.

8.4.2 Further
Assurances. The Company agrees to perform, execute, acknowledge, and deliver or cause to be performed, executed, acknowledged,
and delivered all such further and other acts, instruments, and assurances as may reasonably be required by the Warrant Agent for
the carrying out or performing of the provisions of this Agreement.

8.5 Liability
of Warrant Agent.

8.5.1 Reliance
on Company Statement. Whenever in the performance of its duties under this Agreement, the Warrant Agent shall deem it necessary
or desirable that any fact or matter be proved or established by the Company prior to taking or suffering any action hereunder,
such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively
proved and established by a statement signed by the President, Chief Executive Officer, Acting Chief Financial Officer, Chief Financial
Officer or Chief Operating Officer of the Company and delivered to the Warrant Agent. The Warrant Agent may rely upon such statement
for any action taken or suffered in good faith by it pursuant to the provisions of this Agreement.

8.5.2 Indemnity.
The Warrant Agent shall be liable hereunder only for its own gross negligence, willful misconduct, or bad faith. The Company agrees
to indemnify the Warrant Agent and save it harmless against any and all liabilities, including judgments, claims, losses, damages,
costs, and reasonable counsel fees, for anything done or omitted by the Warrant Agent in the execution of this Agreement, except
as a result of the Warrant Agent’s gross negligence, willful misconduct, or bad faith.

    	11

    	 	

    

8.5.3 Limitation
of Liability. The Warrant Agent’s aggregate liability, if any, during the term of this Agreement with respect to, arising
from, or arising in connection with this Agreement, or from all services provided or omitted to be provided under this Agreement,
whether in contract, or in tort, or otherwise, is limited to, and shall not exceed, the amounts paid or payable hereunder by the
Company to the Warrant Agent as fees and charges (not including reimbursable expenses).

8.5.4 Disputes.
In the event any question or dispute arises with respect to the proper interpretation of this Agreement or the Warrant Agent’s
duties hereunder or the rights of the Company or of any Holder, the Warrant Agent shall not be required to act and shall not be
held liable or responsible for refusing to act until the question or dispute has been judicially settled (and the Warrant Agent
may, if it deems it advisable, but shall not be obligated to, file a suit in interpleader or for a declaratory judgment for such
purpose) by final judgment rendered by a court of competent jurisdiction, binding on all parties interested in the matter which
is no longer subject to review or appeal, or settled by a written document in form and substance satisfactory to the Warrant Agent
and executed by the Company and each other interested party. In addition, the Warrant Agent may require for such purpose, but shall
not be obligated to require, the execution of such written settlement by all of the Holders of the Warrants and all other parties
that may have an interest in the settlement.

 

8.5.5 Exclusions.
The Warrant Agent shall have no responsibility with respect to the validity of this Agreement or with respect to the validity or
execution of any Warrant (except its countersignature hereof and thereof); nor shall it be responsible for any breach by the Company
of any covenant or condition contained in this Agreement or in any Warrant; nor shall it be responsible to make any adjustments
required under the provisions of Section 4 hereof or responsible for the manner, method, or amount of any such adjustment
or the ascertaining of the existence of facts that would require any such adjustment; nor shall it by any act hereunder be deemed
to make any representation or warranty as to the authorization or reservation of any Warrant Shares to be issued pursuant to this
Agreement or any Warrant or as to whether any Warrant Shares will, when issued, be duly authorized, validly issued, fully paid
and nonassessable.

8.6 Acceptance
of Agency. The Warrant Agent hereby accepts the agency established by this Agreement and agrees to perform the same upon the
terms and conditions herein set forth, and, among other things, shall account promptly to the Company with respect to Warrants
exercised and concurrently account for, and pay to the Company, all moneys received by the Warrant Agent for the purchase of Warrant
Shares through the exercise of Warrants.

9. Miscellaneous
Provisions.

9.1 Successors.
All the covenants and provisions of this Agreement by or for the benefit of the Company or the Warrant Agent shall bind and inure
to the benefit of their respective successors and assigns.

    	12

    	 	

    

9.2 Notices.
Any notice, statement, or demand authorized by this Agreement to be given or made by the Warrant Agent or by a Holder to or on
the Company shall be sufficiently given when so delivered if by hand or overnight delivery or if sent by certified mail or private
courier service within five (5) calendar days after deposit of such notice, postage prepaid, addressed (until another address
is filed in writing by the Company with the Warrant Agent), as follows:

 

Nxt-ID, Inc.

One Reservoir Corporate Centre

4 Research Drive - Suite 402

Shelton CT 06484

Telephone: (203)
242-3076

Email: gino@nxt-id.com

Attn: Gino Pereira, Chief Executive Officer &
Director

 

Any notice, statement,
or demand authorized by this Agreement to be given or made by a Holder or by the Company to or on the Warrant Agent shall be sufficiently
given when so delivered if by hand or overnight delivery or if sent by certified mail or private courier service within five (5) calendar
days after deposit of such notice, postage prepaid, addressed (until another address is filed in writing by the Warrant Agent with
the Company), as follows:

 

[TA]

 

with a copy in each case to:

[TA Counsel]

and:

[If an Underwriter]

and:

[Company Counsel]

 

9.3 Applicable
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 inconvenience
forum. Any such process or summons to be served upon the Company may be served by transmitting a copy thereof by registered or
certified mail, return receipt requested, postage prepaid, addressed to it at the address set forth in Section 9.2 hereof.
Such mailing shall be deemed personal service and shall be legal and binding upon the Company in any action, proceeding, or claim.

 

    	13

    	 	

    
 

9.4 Persons
Having Rights under this Agreement. Nothing in this Agreement expressed and nothing that may be implied from any of the provisions
hereof is intended, or shall be construed, to confer upon, or give to, any person or corporation other than the parties hereto
and the Holders of the Warrants and, for purposes of Sections 3.3, 9.3, and 9.8, the [Underwriters], any right, remedy, or claim
under or by reason of this Agreement or of any covenant, condition, stipulation, promise, or agreement hereof. The [Underwriters]
shall be deemed to be an express third-party beneficiary of this Agreement with respect to Sections 3.3, 9.3, and 9.8 hereof. All
covenants, conditions, stipulations, promises, and agreements contained in this Agreement shall be for the sole and exclusive benefit
of the parties hereto (and the [Underwriters] with respect to the Sections 3.3, 9.3, and 9.8 hereof) and their successors and assigns
and of the Holders.

9.5 Examination
of this Agreement. A copy of this Agreement shall be available at all reasonable times at the office of the Warrant Agent in
the City of New York, State of New York, for inspection by any Holder. The Warrant Agent may require any such Holder to submit
his Warrant for inspection by it.

 

9.6 Counterparts.
This Agreement may be executed in any number of original or facsimile counterparts and each of such counterparts shall for all
purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

9.7 Effect
of Headings. The Section headings herein are for convenience only and are not part of this Agreement and shall not affect the
interpretation thereof.

9.8 Amendments.
This Agreement may be amended by the parties hereto without the consent of any Holder for the purpose of curing any ambiguity,
or of curing, correcting, or supplementing any defective provision contained herein or adding or changing any other provisions
with respect to matters or questions arising under this Agreement as the parties may deem necessary or desirable and that the parties
deem shall not adversely affect the interest of the Holders. All other modifications or amendments, including any amendment to
increase the Exercise Price or shorten the Exercise Period, shall require the written consent of the [Underwriters] and the Holders
of a majority of the then outstanding Warrants.

9.9 Severability.
This Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect
the validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid
or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Agreement a provision
as similar in terms to such invalid or unenforceable provision as may be possible that is also valid and enforceable.

9.10 Force
Majeure. In the event either party is unable to perform its obligations under the terms of this Agreement because of acts of
God, strikes, failure of carrier or utilities, equipment or transmission failure or damage that is reasonably beyond its control,
or any other cause that is reasonably beyond its control, such party shall not be liable for damages to the other for any damages
resulting from such failure to perform or otherwise from such causes. Performance under this Agreement shall resume when the affected
party or parties are able to perform substantially that party’s duties.

9.11 Consequential
Damages. Notwithstanding anything in this Agreement to the contrary, neither party to this Agreement shall be liable to the
other party for any consequential, indirect, special or incidental damages under any provision of this Agreement or for any consequential,
indirect, punitive, special, or incidental damages arising out of any act or failure to act hereunder, even if that party has been
advised of or has foreseen the possibility of such damages.

[Signature Page Follows]

    	14

    	 	

    
 

 

IN WITNESS WHEREOF, this Agreement has been
duly executed by the parties hereto as of the day and year first above written.

 

	 	 	 
	NXT-ID, INC.
	 	 
	By:	 	
 

 

	 	 	 
	Name:	 	 
	Title:	 	 
	 
	[TA]

 

	 	 	 
	 	 
	By	 	
 

 

	 	 	 
	Name:	 	 
	Title:	 	 

 

 

    	15

    	 	

    
 

 

 

 

 

EXHIBIT A

[FORM OF WARRANT CERTIFICATE]

EXERCISABLE ONLY IF COUNTERSIGNED BY
THE WARRANT

AGENT AS PROVIDED HEREIN

Warrant Certificate Evidencing Warrants
to Purchase

Common Voting Shares, par value of $0.001
per share, as described herein, of

NXT-ID, INC.

 

	 	 	 
	No. [—]	 	CUSIP [_________]

VOID AFTER 5:00 PM, NEW YORK CITY TIME,

ON ____________

This certifies
that                     or
registered assigns is the registered holder (the “Holder”) of                    warrants
to purchase certain securities (each a “Warrant”). Each Warrant entitles the Holder, subject to the provisions
contained herein and in the Warrant Agreement (as defined below), to purchase from Nxt-ID Inc., a Delaware corporation (the “
Company ”),                  shares (collectively,
the “Warrant Shares”) of common voting shares, par value $0.001 per share, of the Company (the “Common
Stock”), at the Exercise Price set forth below. The price per share at which each Warrant Share may be purchased at the
time each Warrant is exercised (the “Exercise Price”) is $___ initially, subject to adjustments as set forth
in the Warrant Agreement.

This Warrant Certificate
is issued under and in accordance with the Warrant Agreement, dated as of January ____, 2013 (the “Warrant Agreement”),
between the Company and the Warrant Agent, and is subject to the terms and provisions contained in the Warrant Agreement, to all
of which terms and provisions the Holder of this Warrant Certificate and the beneficial owners of the Warrants represented by this
Warrant Certificate consent by acceptance hereof. Copies of the Warrant Agreement are on file and can be inspected at the below-mentioned
office of the Warrant Agent and at the office of the Company at [__________]. Capitalized terms used but not defined herein shall
have the meaning ascribed to them in the Warrant Agreement.

Subject to
the terms of the Warrant Agreement, each Warrant evidenced hereby may be exercised only after the separation of the Units, as set
forth in Section 2.4 of the Warrant Agreement. Following the separation of the Units, the underlying Warrants of which are
represented by this Warrant Certificate, the Holder may exercise such Warrants, at any time during the period (the “Exercise
Period”) beginning on the date of such separation and terminating at _____, New York City time, on _______ (the “Expiration
Date”), by delivering, not later than ______, New York City time, on any Business Day during the Exercise Period (the
“Exercise Date”) to ____________ (the “Warrant Agent”, which term includes any successor
warrant agent under the Warrant Agreement described below) at its corporate trust department at ___________________, (i) this
Warrant Certificate or, in the case of a Book-Entry Warrant Certificate (as defined in the Warrant Agreement), the Warrants to
be exercised (the “Book-Entry Warrants”) as shown on the records of The Depository Trust Company (the “Depository”)
to an account of the Warrant Agent at the Depository designated for such purpose in writing by the Warrant Agent to the Depository;
(ii) an election to purchase (“Election to Purchase”), properly executed by the Holder hereof on the reverse
of this Warrant Certificate or properly executed by the institution in whose account the Warrant is recorded on the records of
the Depository (the “Participant”), and substantially in the form included on the reverse of this Warrant Certificate;
and (iii) certified or official bank check or a bank wire transfer in immediately available funds, in each case payable to
the order of the Company. Each Warrant represented by this Warrant Certificate not exercised on or before the Expiration Date shall
become null and void, and all rights of the Holder of this Warrant Certificate shall cease at the close of business on the Expiration
Date.

    	16

    	 	

    
 

As used herein,
the term “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in
the City of New York are authorized or required by law or executive order to remain closed.

Warrants may be
exercised only in whole numbers of Warrants. No fractional Warrant Shares are to be issued upon the exercise of this Warrant, but
rather the number of Warrant Shares to be issued shall be rounded up to the nearest whole number. If fewer than all of the Warrants
evidenced by this Warrant Certificate are exercised, a new Warrant Certificate for the number of Warrants remaining unexercised
shall be executed by the Company and countersigned by the Warrant Agent as provided in Section 2 of the Warrant Agreement,
and delivered to the Holder of this Warrant Certificate at the address specified on the books of the Warrant Agent or as otherwise
specified by such Holder.

The Exercise Price
and the number of Warrant Shares purchasable upon the exercise of each Warrant shall be subject to adjustment as provided pursuant
to Section 4 of the Warrant Agreement.

Upon due presentment
for registration of transfer or exchange of this Warrant Certificate at the stock transfer division of the Warrant Agent, the Company
shall execute, and the Warrant Agent shall countersign and deliver, as provided in Section 5 of the Warrant Agreement, in
the name of the designated transferee, one or more new Warrant Certificates of any authorized denomination evidencing in the aggregate
a like number of unexercised Warrants, subject to the limitations provided in the Warrant Agreement.

Neither this Warrant
Certificate nor the Warrants evidenced hereby entitles the Holder to any of the rights of a stockholder of the Company, including,
without limitation, the right to receive dividends, or other distributions, exercise any preemptive rights to vote or to consent
or to receive notice as stockholders in respect of the meetings of stockholders or the election of directors of the Company or
any other matter.

The Warrant Agreement
and this Warrant Certificate may be amended as provided in the Warrant Agreement including, under certain circumstances described
therein, without the consent of the Holder of this Warrant Certificate or the Warrants evidenced thereby.

THIS WARRANT CERTIFICATE AND ALL
RIGHTS HEREUNDER AND UNDER THE WARRANT AGREEMENT SHALL BE GOVERNED BY AND INTERPRETED AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS FORMED AND TO BE PERFORMED ENTIRELY WITHIN THE STATE OF NEW YORK, WITHOUT REGARD
TO THE CONFLICTS OF LAW PROVISIONS THEREOF TO THE EXTENT SUCH PRINCIPLES OR RULES WOULD REQUIRE OR PERMIT THE APPLICATION OF THE
LAWS OF ANOTHER JURISDICTION.

    	17

    	 	

    
 

This Warrant Certificate
shall not be entitled to any benefit under the Warrant Agreement or be valid or obligatory for any purpose, and no Warrant evidenced
hereby may be exercised, unless this Warrant Certificate has been countersigned by the manual signature of the Warrant Agent.

IN WITNESS WHEREOF, the Company has
caused this instrument to be duly executed.

Dated as of January _____, 2013

 

	 	 	 
	NXT-ID, INC.
	 	 
	By:	 	
 

	 	 	Name:
	 	 	Title:

 

	 	 	 
	[TA]
	 	 
	By:	 	
 

	 	 	Name:
	 	 	Title:

 

    	18

    	 	

    
 

 

 

 

 

[REVERSE]

Instructions for Exercise of Warrant

To exercise the
Warrants evidenced hereby, the Holder must, by _______, New York City time, on the specified Exercise Date, deliver to the Warrant
Agent at its stock transfer division, a certified or official bank check or a bank wire transfer in immediately available funds,
in each case payable to the Company, in an amount equal to the Exercise Price in full for the Warrants exercised. In addition,
the Holder must provide the information required below and deliver this Warrant Certificate to the Warrant Agent at the address
set forth below and the Book-Entry Warrants to the Warrant Agent in its account with the Depository designated for such purpose.
The Warrant Certificate and this Election to Purchase must be received by the Warrant Agent by 5:00 p.m., New York City time, on
the specified Exercise Date.

ELECTION TO PURCHASE

TO BE EXECUTED IF WARRANT HOLDER DESIRES

TO EXERCISE THE WARRANTS EVIDENCED HEREBY

The undersigned hereby irrevocably
elects to exercise, on             (the “Exercise Date”),
            Warrants, evidenced by this Warrant Certificate, to purchase
            shares (the “Warrant Shares”) of common
voting shares, par value of $0.001 per share (the “ Common Stock ”) of Nxt-ID, Inc., a Delaware corporation
(the “Company”), and represents that on or before the Exercise Date:

 ̈
such Holder has tendered payment for such Warrant Shares by certified or official bank check payable to the order of the Company
c/o ______________, __________________________, or by bank wire transfer in immediately available funds payable to the Company
at Account No.         , in each case in the amount of $        in
accordance with the terms hereof, or

The undersigned requests that said
number of Warrant Shares be in fully registered form, registered in such names and delivered, all as specified in accordance with
the instructions set forth below.

If said number of Warrant Shares is
less than all of the Warrant Shares purchasable hereunder, the undersigned requests that a new Warrant Certificate evidencing the
remaining balance of the Warrants evidenced hereby be issued and delivered to the Holder of the Warrant Certificate, unless otherwise
specified in the instructions below.

Dated:                     ,

 

	Name: 	 	 	 	 
	(Please Print)	 
	            -             -                    	 	 
	(Insert Social Security or Other Identifying Number of Holder)	 	 
	 	 	 
	Address	 	
 

	 	 
	 	 	 
	 	 	
 

	 	 
	 	 	 
	Signature	 	
 

	 	 
	 	 	 	 	 	 	 	 	 	 

    	19

    	 	

    

This Warrant may only be exercised by presentation to the
Warrant Agent at one of the following locations:

 

	 	 	 
	By hand at:	 	[TA]
	 	 
	 	 	[TA Address]
	 	 
	 	 	 
	 	 
	By mail at:	 	[TA]
	 	 
	 	 	[TA Address]
	 	 
	 	 	 

 

The method of delivery of this Warrant Certificate is at
the option and risk of the exercising Holder and the delivery of this Warrant Certificate will be deemed to be made only when
actually received by the Warrant Agent. If delivery is by mail, registered mail with return receipt requested, properly insured,
is recommended. In all cases, sufficient time should be allowed to insure timely delivery.

(Instructions as to form and delivery of Warrant Shares
and/or Warrant Certificates)

 

	 
	Name in which Warrant Shares are to be registered if other than in the name of the Holder of this Warrant Certificate:
	
 

Address to which Warrant Shares are to be mailed if other
than to the address of the Holder of this Warrant Certificate as shown on the books of the Warrant Agent:

	 
	 
	
 

	(Street Address)
	 
	
 

	(City and State) (Zip Code)

    	20

    	 	

    

Name in which Warrant Certificate evidencing unexercised
Warrants, if any, is to be registered if other than in the name of the Holder of this Warrant Certificate:

	 

 

	 	 	 
	Address to which certificate representing unexercised Warrants, if any, is to be mailed if other than to the address of the Holder of this Warrant Certificate as shown on the books of the Warrant Agent:

 

	 
	
 

	(Street Address)
	 
	
 

	(City and State) (Zip Code)
	 
	
 

	Dated:
	 
	
 

	Signature

Signature must conform in all respects to the name of
the Holder as specified on the face of this Warrant Certificate. If Warrant Shares, or a Warrant Certificate evidencing unexercised
Warrants, are to be issued in a name other than that of the Holder hereof or are to be delivered to an address other than the address
of such Holder as shown on the books of the Warrant Agent, the above signature must be guaranteed by a an Eligible Guarantor Institution
(as that term is defined in Rule 17Ad-15 of the Securities Exchange Act of 1934, as amended).

 

	 	 	 	 
	SIGNATURE GUARANTEE	 
	 	 	 
	Name of Firm	 	
 

	 
	 	 	 	 
	Address	 	
 

	 
	 	 	 
	Area Code & Number	 	
 

	 	 	 	 
	Authorized Signature	 	
 

	 
	 	 	 	 
	Name	 	
 

	 
	 	 	 	 
	Title	 	
 

	 
	Dated:                     , 201    	 
	 	 	 	 	 	 	 	 	 	 	 	 

 

 

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ASSIGNMENT

(FORM OF ASSIGNMENT TO BE EXECUTED IF
WARRANT HOLDER

DESIRES TO TRANSFER WARRANTS EVIDENCED HEREBY)

 

	 	 	 	 	 
	 	 
	FOR VALUE RECEIVED,	 	 
	(Please print name and address including zip code of assignee)
	 
	HEREBY SELL(S), ASSIGN(S) AND TRANSFER(S) UNTO
	 
	
 

	(Please insert social security or including zip code of assignee)

the rights represented by the within Warrant Certificate
and does hereby irrevocably constitute and appoint Attorney to transfer said Warrant Certificate on the books of the Warrant Agent
with full power of substitution in the premises.

 

	 	 	 
	Dated:	 	
 

 

	 	 	 
	 
	
 

	Signature

 

(Signature must conform in all respects to the name of the Holder
as specified on the face of this Warrant Certificate and must bear a signature guarantee by an Eligible Guarantor Institution
(as that term is defined in Rule 17Ad-15 of the Securities Exchange Act of 1934, as amended).

 

	 	 	 
	SIGNATURE GUARANTEE
	 	 
	Name of Firm	 	
 

	 	 	 
	Address	 	
 

	 	 	 
	Area Code & Number	 	
 

	 	 	 
	Authorized Signature	 	
 

	 	 	 
	Name	 	
 

	 	 	 
	Title	 	
 

	Dated:                     , 201    
	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

22Exhibit 10.1 

 

INDEMNITY
AGREEMENT

This INDEMNITY AGREEMENT
(the “Agreement”) is dated as of January __, 2013, and is made by and between Nxt-ID, Inc. a Delaware corporation (the
“Company”), and [_____], an officer or director 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 due to the fact that the exposure frequently bears no reasonable relationship
to the compensation of such directors and officers;

B.             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 make the business decisions necessary or
appropriate for the success of the Company and its Subsidiaries (as defined in Section 1 below), it is necessary for the Company
contractually to indemnify its directors and certain of its officers, and certain of the directors and officers of its Subsidiaries,
and to assume for itself maximum permissible liability for Expenses, losses, liabilities and damages in connection with claims
against such officers and directors relating to their service in such capacities, and has further concluded that the failure to
provide such contractual indemnification could result in significant harm to the Company and its Subsidiaries and the Company’s
stockholders;

C.             The statutes
and judicial decisions regarding the duties of directors and officers are often difficult to apply, ambiguous, or conflicting,
and therefore fail to provide such directors and officers with adequate, reliable knowledge of legal risks to which they are exposed
or information regarding the proper course of action to take;

D.             Plaintiffs
often seek damages in such large amounts and the costs of litigation may be so great (whether or not the case is meritorious),
that the defense and/or settlement of such litigation may be beyond the personal resources of directors and officers;

E.             Section 145
of the General Corporation Law of Delaware, 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; further the provisions of the Amended Certificate of Incorporation of the Company (the “Certificate
of Incorporation”) specifically state that the rights to indemnification and payment of expenses described therein are not
exclusive, and thereby contemplate that contracts with respect to indemnification and payment of Expenses by the Company and similar
obligations of the Company may be entered into by and between the Company and persons entitled to such rights described in the
Certificate of Incorporation; and

 

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F.The Company
desires and has requested the Indemnitee to serve or continue to serve as a director or officer of the Company. As an inducement
to serve and in consideration for such service, the Company has agreed to indemnify the Indemnitee for claims for damages arising
out of or related to the performance of such services to the Company in accordance with the terms and conditions set forth in this
Agreement.

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 at any time was a director or
officer of the Company or a subsidiary of the Company; or is or at any time 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 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.             Change
in Control. “Change in Control” means a change in control of the Company occurring after December 1, 2008, of a nature
that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar
item on any similar schedule or form) promulgated under the Securities Exchange Act of 1934 (the “Act”), whether or
not the Company is then subject to such reporting requirement; provided, however, that, without limitation, such
a Change in Control shall be deemed to have occurred if after December 1, 2008, (i) any “person” (as such term is used
in Sections 13(d) and 14(d) of the Act) other than a trustee or other fiduciary holding securities under an employee benefit plan
of the Company or a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions
as their ownership of stock of the Company is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Act), directly or indirectly, of securities of the Company representing 15% or more of the combined voting power of the Company’s
then outstanding securities without the prior approval of at least two-thirds of the members of the board of directors of the Company
in office immediately prior to such person attaining such percentage interest; (ii) there occurs a proxy contest, or the Company
is a party to a merger, consolidation, sale of assets, plan of liquidation or other reorganization not approved by at least two-thirds
of the members of the board of directors of the Company then in office, as a consequence of which members of the board of directors
in office immediately prior to such transaction or event constitute less than a majority of the board of directors thereafter;
or (iii) during any period of two consecutive years, other than as a result of an event described in clause (ii) of this subsection
(c), individuals who at the beginning of such period constituted the board of directors of the Company (including for this purpose
any new director whose election or nomination for election by the Company’s stockholders was approved by a vote of at least
two-thirds of the directors then still in office who were directors at the beginning of such period) cease for any reason to constitute
at least a majority of the board of directors.

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1.3.             Company.
As used herein the term “Company” includes all successors and assigns to the Company, including, without limitation,
any corporation or other entity that is a successor to the Company by virtue of a Change in Control.

1.4.             Controlled.
“Controlled” means subject to the power to exercise a controlling influence over the management or policies of a corporation,
partnership, joint venture, trust or other entity.

1.5.             Expenses.
For purposes of this Agreement, “Expenses” includes all direct and indirect costs of any type or nature whatsoever
(including, without limitation, attorneys’ fees and related disbursements and retainers, costs of travel, other out-of-pocket
costs such as fees and disbursements of expert witnesses, private investigators and professional advisors, court costs, transcript
costs, fees of experts, duplicating, printing, and binding costs, telephone and fax transmission charges, postage, delivery services,
secretarial services and other disbursements and expenses and reasonable compensation for time spent by the Indemnitee for which
he is not otherwise compensated by the Company or any third party) 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, Section 145 of the Law or otherwise.

1.6.             Proceeding.
For the purposes of this Agreement, a “Proceeding” means any threatened, pending, or completed action, suit, arbitration,
alternate dispute resolution process, investigation, administrative hearing, appeal, inquiry or other proceeding, whether civil,
criminal, administrative, investigative or any other type whatsoever, whether formal or informal, including a proceeding initiated
by Indemnitee pursuant to Section 9 of this Agreement to enforce Indemnitee’s rights hereunder.

1.7.             Subsidiary.
For purposes of this Agreement, “Subsidiary” means any corporation, partnership, limited liability company, trust,
joint venture, or other entity of which more than fifty percent (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 his ability, so long as he 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 the Indemnitee
in any such position. For the avoidance of doubt, the Company and Indemnitee each acknowledge and agree that the resignation or
other termination of Indemnitee as an agent of the Company under this paragraph 2 shall not impair any right that Indemnitee may
otherwise have to be indemnified under the terms of this Agreement.

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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.

4.             Mandatory
Indemnification. Subject to Section 9 below, the Company shall indemnify and hold the Indemnitee harmless to the fullest extent
permitted by the Law. Without limiting the generality of the foregoing, the Company shall indemnify and hold harmless the Indemnitee
as follows:

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 he is or at any time was an agent of the Company,
or by reason of anything done or not done by him in any such capacity, against any and all claims, expenses and liabilities of
any type whatsoever (including, but not limited to, attorneys’ fees, judgments, fines, ERISA excise taxes or penalties and
amounts paid in settlement) actually and reasonably incurred by him in connection with the investigation, defense, settlement or
appeal of such proceeding if he acted in good faith and in a manner he 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 his conduct
was unlawful; and/or

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 he is or at any time was an agent of the Company,
or by reason of anything done or not done by him in any such capacity, against any and all claims, expenses and liabilities, including
without limitation attorneys’ fees, amounts paid in settlement of any such proceeding and all expenses actually and reasonably
incurred by him in connection with the investigation, defense, settlement, or appeal of such proceeding if he acted in good faith
and in a manner he 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,
in a judgment not subject to appeal, to be liable to the Company by a court of competent jurisdiction due to willful misconduct
of a culpable nature in the performance of his duty to the Company, unless and only to the extent that the Court of Chancery in
Delaware 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/or

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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, ERISA excise
taxes or penalties and amounts paid in settlement) incurred by him 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, which does not take account of the foregoing equitable
considerations.

6.             Mandatory Advancement of Expenses.

6.1.             Advancement.
Subject to Section 9 below, the Company shall advance all expenses incurred by the Indemnitee in connection with the investigation,
participation, 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 at any time was an agent of the Company or by reason of anything done or
not done by him in any such capacity. The Indemnitee hereby undertakes promptly to 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 thirty (30) 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 thirty (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 fifteen (15) 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 as a result of such proceeding in accordance with
the terms of such D&O Insurance policies.

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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 his own counsel in any such proceeding at the Indemnitee’s
expense; (b) the Indemnitee shall have the right to employ his 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; or (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.

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 him in connection with the investigation, defense or appeal of such proceeding,
or such claim, issue or matter, as the case may be, including without limitation Indemnitee’s attorneys’ fees.

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:

(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, provided however that the Indemnitee can select a forum consisting of the stockholders of the Company
only with the approval 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;

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(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 or other court having jurisdiction of subject matter and the parties.

8.4.             As
soon as practicable, and in no event later than thirty (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, the court in which the proceeding
giving rise to the Indemnitee’s claim for indemnification is or was pending or any other court having jurisdiction of subject
matter and the parties, for the purpose of appealing the decision of such forum, provided that such right is executed within sixty
(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.

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 specifically authorized by
the Board or 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

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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
l6(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, in a judgment not
subject to appeal, 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 HIS 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.            Burden
of Proof. In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity
making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement, and the Company shall
have the burden of proof to overcome that presumption in connection with the making by any person, persons or entity of any determination
contrary to that presumption.

12.            Duration of Agreement.

This Agreement shall continue
until and terminate upon the later of: (a) 10 years after the date that the Indemnitee shall have ceased to serve as a director
and/or officer of the Company or director, officer, employee or agent of any other corporation, partnership, joint venture, trust,
employee benefit plan or other enterprise which the Indemnitee served at the request of the Company; or (b) one year after the
final, nonappealable termination of any Proceeding then pending in respect of which the Indemnitee is granted rights of indemnification
or advancement of Expenses hereunder and of any proceeding commenced by the Indemnitee pursuant to Section 10 of this Agreement
relating thereto.

 

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13.            General Provisions.

13.1.             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.

13.2.             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 13.1 hereof.

13.3.             Modification
and Waiver. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of
the 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.

13.4.             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.

13.5.             Counterparts. This Agreement may be executed in one or more counterparts and via facsimile, each of which shall constitute
an original, but all of which when taken together shall constitute a single agreement.

13.6.             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.

 

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13.7.             Notice. All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed
duly given: (a) if delivered by hand and signed for by the party addressee; or (b) if mailed by certified or registered mail, with
postage prepaid, on the third business day after the mailing date. Addresses for notices to either party are as shown on the signature
page of this Agreement or as subsequently modified by written notice.

13.8.             Gender. The masculine, feminine or neuter pronouns used herein shall be interpreted without regard to gender, and the use
of the singular or plural shall be deemed to include the other whenever the context so requires.

13.9.             Governing Law. This Agreement shall be governed exclusively by and construed according to the laws of the State of Delaware,
as applied to contracts between Delaware residents entered into and to be performed entirely within Delaware.

If the General
Corporation Law of the State of Delaware (the “Delaware Law”) or any other applicable law is amended after the date
hereof to permit the Company to indemnify Indemnitee for Expenses or liabilities, or to indemnify Indemnitee with respect to any
action or Proceeding, not contemplated by this Agreement, then this Agreement (without any further action be either party hereto)
shall automatically be deemed to be amended to require that the Company indemnify Indemnitee to the fullest extent permitted by
the Delaware Law.

13.10.            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, which arises out of or relates to this Agreement.

13.11.            Attorneys’ Fees. In the event Indemnitee is required to bring any action to enforce rights under this Agreement (including,
without limitation, the payment or reimbursement of expenses of any proceeding described in Section 4), 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.

 

 

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

 

	
        NXT-ID, INC.

         

         

        By:____________________________

        Name:

        Title:
	
        INDEMNITEE

         

         

        ___________________________

	 	 
	Date: [____] [__________] 2013	Date: [____] [__________] 2013
	 	 
	
         

         
	Address:

 

 

 

 

 

 

 

 

 

 

 

 

 

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