Document:

Wherify
      Wireless, Inc.

    2000
      Bridge Parkway, Suite 201

    Redwood
      Shores CA 94065

    

    

    January
      13, 2006

    

    Mr.
      W.
      Douglas Hajjar

    3126
      South Kihei Road

    Wailea,
      HI 96753

    

    Dear
      Doug,

     

    Wherify
      Wireless, Inc., a Delaware corporation (the “Company”),
      is
      pleased to confirm our understanding relating to certain matters relating to
      your election to the Company’s Board of Directors (the “Board”)
      effective November 15, 2005 and your services as Co-Chairman of the Board.
      This
      letter describes certain of the services that you are expected to provide as
      a
      Director and Co-Chairman of the Board and your compensation as a Director and
      Co-Chairman of the Board.

     

    In
      addition to your normal responsibilities as a Director and Co-Chairman, you
      will
      direct and coordinate the Board’s oversight of the business and operations of
      the Company and the activities and performance of senior management. In this
      capacity, you will maintain regular communication with all members of senior
      management and will regularly meet and confer with the chief executive officer
      regarding new developments at the Company and the Company’s progress in
      achieving its goals and objectives. To facilitate your performance of these
      responsibilities, the chief executive officer shall keep you informed of all
      significant developments in the business and operations of the Company. At
      each
      meeting of the Board, you will report on matters of strategic or operational
      importance observed in connection with your performance of these duties. In
      addition to the foregoing, you will assist senior management in developing
      strategic plans for the Company and with fund raising and financing activities.
      It is agreed and understood that your roles and responsibilities as described
      above are intended to assist and facilitate the Board in fulfilling its
      oversight responsibilities and are not intended to diminish or otherwise limit
      the duties and responsibilities of any of the other members of the Board of
      Directors.

     

    In
      consideration for your service as a member of the Board and Co-Chairman of
      the
      Board, the Company will grant you an option (the “Option”)
      pursuant to the Company’s 2004 Stock Plan (the “Plan”)
      to
      purchase 125,000 shares of Common Stock of the Company at an exercise price
      equal to the closing sales price for the Company’s Common Stock as quoted on the
      NASDAQ Small Cap Market on the date such Option is granted. The Option will
      vest
      in equal monthly increments over four years so long as you remain a member
      of
      the Board. If you serve on the Board for one year and are elected for another
      term, you will receive an additional option for 12,500 shares of Common Stock
      with an exercise price equal to the closing sales price of the Common Stock
      on
      the date such Option is granted which will vest ratably monthly over 12 months.
      You will receive additional options for 12,500 shares for each one year term
      of
      service on the Board thereafter, which also will vest ratably monthly over
      12
      months. The Option and any such additional options will be issued subject to
      the
      terms of the Company’s customary form of agreement for a non-statutory stock
      option under the Plan.

     

    In
      addition to the equity compensation described above, you will be paid $5,000
      per
      calendar month during which you serve on the Board.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    In
      addition to your compensation as a member of the Board, the Company has also
      agreed to extend the consulting agreement between you and the Company in the
      form attached to this letter. Pursuant to such agreement, the Company has agreed
      to pay you a consulting fee of $10,000 per month. 

     

    We
      are
      confident that you and the Company will find mutual satisfaction with your
      participation on the Board. As a reminder, your continued service on the Board
      is subject at all times to the sole discretion of the Company’s stockholders.
      Furthermore, the compensation described herein is entirely subject to and
      contingent upon Board approval. In addition, all Board members should be aware
      that their services as directors to the Company are subject to statutory and
      fiduciary duties and responsibilities pursuant to applicable California and
      Delaware law.

     

    All
      of us
      at the Company are very excited about your joining the team and look forward
      to
      a mutually beneficial and fruitful relationship.

     

    
      	 	 	Very
              Truly
              Yours,
	 	 
	 	 	 
	 	 	/s/ William
              Scigliano
	 	
              
William
              Scigliano, Chairman
	 	 

    

     

    cc: Wherify
      Wireless, Inc. Board of Directors 

    

    

    AGREED
      AND ACCEPTED:

    

    
      	 	 	 	 
	/s/ W.
              Douglas Hajjar	 	 	 
	
              

            	 	 	
            
	W.
              Douglas Hajjar
	 	 	 

     

    1/13/06

    Date

     

    
      
         

      

      
        2January
      24th,
      2006

    

    Mr.
      Mark
      E. Gitter

    932
      W.
      Olive Avenue

    Sunnyvale,
      CA 94086

    408-891-4116

    

    

    
      	
              Re:

            	
              Offer
                of Employment at Wherify Wireless,
                Inc.

            

    

     

    Dear
      Mark:

     

    We
      are
      very pleased to invite you to join Wherify Wireless, Inc. (the “Company”). This
      letter shall serve to set forth the terms of employment offered to you by the
      Company and to acknowledge your acceptance of the employment on such terms
      as
      detailed below. This letter (“Agreement”) shall become effective upon the
      mutually agreed upon start date of your employment with the
      Company.

     

    Duties
      and Responsibilities.
      You
      shall
      serve as Treasurer and Chief Financial Officer of the Company, with functional
      responsibility over the Company’s financial, human resources and investor
      relations’ functions. You shall render such business and professional services
      in the performance of your duties, consistent with your position and the Bylaws
      of the Company and as shall reasonably be assigned to you by the Company’s Chief
      Executive Officer and/or the Board of Directors. You shall report directly
      to
      the Chief Executive Officer. This offer is for a full time position, located
      at
      the headquarters of the Company in Redwood Shores, California. The position
      may
      require you to travel to other locations as may be necessary to fulfill your
      responsibilities. A performance review will occur annually.  

     

    Compensation.
       During
      the period beginning as of the Effective Time the Company shall pay you as
      compensation for your services an initial monthly base salary of $14,583.33.
      This equates to a base compensation annualized rate of $175,000. Thereafter,
      your compensation shall be subject to periodic review and adjustment, at least
      annually, by the Chief Executive Officer. Your salary shall be paid in
      accordance with the Company’s customary payroll practice, subject to applicable
      withholding. 

     

    Benefits
      and Vacation. You
      will
      be eligible to receive the Company’s standard employee
      benefits package, including its medical insurance, dental insurance, vision
      insurance and disability insurance, and to accrue paid vacation and holidays
      under the Company’s vacation plan. Your vacations shall be scheduled at a
      mutually agreeable time for the Company and yourself, provided that you shall
      receive not less than 15 days of paid vacation per year and such days shall
      accrue if not used.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    Director
      and Officer Insurance.  The
      Company shall obtain and maintain coverage for you under a director and officer
      insurance policy during the term of your employment that is equal to or
      comparable to the same coverage to the Company’s other executive officers and in
      amount and upon terms customary to similarly situated companies.

     

    Expenses. The
      Company shall reimburse you for reasonable travel and other expenses incurred
      by
      you in the furtherance of or in connection with the performance of your duties
      on behalf of the Company in accordance with the Company’s expense reimbursement
      policy as in effect from time to time. 

     

    Stock
      Option. The
      senior management of the Company will recommend that the Board of Directors
      grant you an option to purchase up to 260,000 shares of the Company’s Common
      Stock under the terms of the Company’s 2004 Stock Option Plan and shall be
      exercisable for a period of ten (10) years. Options typically are granted at
      the
      next meeting of the Company’s Board of Directors following your commencement of
      employment. The exercise price for this option will be the fair market value
      of
      the Company’s Common Stock on the grant date of such option. Each stock option
      grant will be in the form of incentive stock options in the maximum amount
      permitted by applicable law. You will also be considered for additional grants
      of stock options in connection with each review, at least annually, by the
      Board. Following your formal written acceptance of the stock option grant,
      the
      option will vest in accordance with the following schedule:

     

    (i)
      the
      option will vest with respect to twenty five percent of the total number of
      shares purchasable upon exercise of the option (25% of the total option grant)
      after 12 months of continuous employment; and 

    (ii)
      the
      option will vest with respect to an additional 1/48th of the option shares
      (approximately 2.08333% of the total option grant) at the close of each month
      during the remaining term of the option, so that the entire option is vested
      after four years of continuous employment.

    

    Employee
      Confidential Information and Inventions Agreement.
      To
      enable the Company to safeguard its proprietary and confidential information,
      it
      is a condition of employment that you agree to sign the Company’s standard form
      of “Employee Confidential Information and Inventions Agreement.” A copy of this
      Agreement will be forwarded to you for your review. We understand that you
      are
      likely to have signed similar agreements with prior employers, and wish to
      impress upon you that the Company does not want to receive the confidential
      or
      proprietary information of others, and will support you in respecting your
      lawful obligations to prior employers.

     

    At-Will
      Employment.
      Should
      you decide to accept our offer, you will be an “at-will” employee of the
      Company. This means that either you or the Company may terminate the employment
      relationship with or without cause at any time. Participation in any stock
      option, benefit, compensation or incentive program does not change the nature
      of
      the employment relationship, which remains “at-will”.

     

    Voluntary
      Termination; Termination for Cause. In
      the
      event that your employment with the Company is terminated voluntarily by you
      or
      for Cause by the Company, then (i) all options which have been vested shall
      continue to be exercisable in accordance with the terms of the Company’s stock
      option plan and applicable legal requirements; (ii) all payments of Base Salary
      accrued but unpaid on the date of termination, as well as all expenses incurred
      to the date of termination, shall be due and payable to within the required
      timeframe allowed by law and all further compensation by the Company to you
      hereunder shall terminate as of the date of termination; and (iii) you shall
      be
      entitled to continue medical and dental insurance coverage for yourself and
      your
      dependents, at your expense, at the same level of coverage as was provided
      to
      you under the Company’s insurance plan immediately prior to termination (“Health
      Care Coverage”) by electing COBRA continuation coverage (“COBRA”) in accordance
      with applicable law.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    Termination
      upon Death or Disability.
      In the
      event that your employment with the Company is terminated as a result of your
      death or permanent disability then (i) all options which have been vested shall
      continue to be exercisable in accordance with the terms of the Company’s stock
      option plan and applicable legal requirements; (ii) the Company shall pay to
      you, your estate or your designated trust, as applicable, all payments of Base
      Salary accrued but unpaid on the date of termination, as well as all expenses
      incurred to the date of termination, shall be due and payable to within the
      required timeframe allowed by law and all further compensation by the Company
      to
      you hereunder shall terminate as of the date of termination; and (iii) you
      shall
      be entitled to continue medical and dental insurance coverage for yourself
      and
      your dependents, at your expense, at the same level of coverage as was provided
      to you under the Company’s Health Care Coverage by electing COBRA in accordance
      with applicable law. For purposes hereof, the term “permanent disability” shall
      mean your inability to perform your duties as they exist at the time disability
      commences on account of illness, accident or other physical or mental incapacity
      which shall continue for a consecutive period of ninety (90) days or an
      aggregate of one hundred twenty (120) days in any consecutive twelve-month
      period.

    

    Termination
      without Cause or resignation as a result of Constructive
      Termination. 
      In the
      event that your employment with the Company is terminated by the Company without
      Cause or through your resignation as a result of Constructive Termination,
      then
      (i) all options which have been vested shall continue to be exercisable in
      accordance with the terms of the Company’s stock option plan and applicable
      legal requirements; (ii) all payments of Base Salary accrued but unpaid on
      the
      date of termination, as well as all expenses incurred to the date of
      termination, shall be due and payable to you immediately; (iii) unvested options
      will forfeit back to the Company on the date of termination, (iv) the Company
      shall pay to you a severance payment, in monthly installments, equal to your
      Base Salary for a period of three (3) months, but only if such termination
      occurs subsequent to your achieving a satisfactory performance review as given
      by the CEO and (v) the Company shall be responsible for all costs relating
      to
      maintaining your Health Care Coverage for you and your dependents under COBRA
      during the severance period. You shall be entitled to continue medical and
      dental insurance coverage for yourself and your dependents for the remaining
      period, at your expense in accordance with applicable law. However, such Health
      Care Coverage shall terminate upon your obtaining alternative Health Care
      Coverage (after completing any waiting periods for such coverage to become
      effective.)

    

    Authorization
      to Work.
      Federal
      government regulations require that all prospective employees present
      documentation verifying their identity and demonstrating that they are
      authorized to work in the United States. If you have any questions about this
      requirement, which applies to U.S. citizens and non-U.S. citizens alike, please
      contact our Human Resources Department.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    Complete
      Offer and Agreement.
      This
      letter contains our complete understanding and agreement regarding the terms
      of
      your employment by the Company. There are no other, different or prior
      agreements or understandings on this or related subjects. Changes to the terms
      of your employment can be made only in a writing signed by you and an authorized
      executive of the Company, although it is understood that the Company may, from
      time to time, in its sole discretion, adjust the salaries, incentive
      compensation and benefits paid to you and its other employees, as well as job
      titles, locations, duties, responsibilities, assignments and reporting
      relationships.

     

    Start
      Date; Acceptance of Offer.
      We hope
      that you will accept this offer promptly, and begin your full-time employment
      at
      Wherify by February 13th, 2006. If our offer is acceptable to you, please sign
      the enclosed copy of this letter in the space indicated and return it to me
      at
      your earliest convenience.

     

    Mark,
      our
      team was impressed by your accomplishments and potential, and we are
      enthusiastic at the prospect of your joining us. I look forward to your early
      acceptance of this offer, and to your contributions to the growth and success
      of
      Wherify.

     

    
      	 	 	Sincerely,
	 	 
	 
 	 
 	 
 
	 	  	/s/ Timothy
              Neher
	 	
              
Timothy
              Neher
	 	Chief
              Executive Officer

    

    
 

    ACCEPTANCE
      OF EMPLOYMENT OFFER:

     

    I
      accept
      the offer of employment by Wherify Wireless, Inc. on the terms described in
      this
      letter.

     

    

    
      	 	 	 	 	 
	Signature: 	/s/ Mark
              E.
              Gitter	 	 	 
	 	
              

              Mark E. Gitter	 	 	
            

    

     

    Date:
      1/27/06

     

    My
      start
      date will be: 1/13/06

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