Document:

Exhibit 10.2 

 

NXT-ID, INC.

 

2013 LONG-TERM STOCK INCENTIVE PLAN

 

1. Purpose

 

The Nxt-ID, Inc. 2013 Long-Term Stock Incentive
Plan is intended to promote the best interests of Nxt-ID, Inc. and its stockholders by (i) assisting the Corporation and its Affiliates
in the recruitment and retention of persons with ability and initiative, (ii) providing an incentive to such persons to contribute
to the growth and success of the Corporation’s businesses by affording such persons equity participation in the Corporation
and (iii) associating the interests of such persons with those of the Corporation and its Affiliates and stockholders.

 

2. Definitions

 

As used in this Plan the following definitions
shall apply:

 

A. “Affiliate” means (i)
any Subsidiary, (ii) any Parent, (iii) any corporation, or trade or business (including, without limitation, a partnership, limited
liability company or other entity) which is directly or indirectly controlled fifty percent (50%) or more (whether by ownership
of stock, assets or an equivalent ownership interest or voting interest) by the Corporation or one of its Affiliates, and (iv)
any other entity in which the Corporation or any of its Affiliates has a material equity interest and which is designated as an
“Affiliate” by resolution of the Committee.

 

B. “Award” means any Option
or Stock Award granted hereunder.

 

C. “Board” means the Board
of Directors of the Corporation.

 

D. “Cause” means: (i) conduct
involving a felony criminal offense under U. S. federal or state law or an equivalent violation of the laws of any other country;
(ii) dishonesty, fraud, self dealing or material violations of civil law in the course of fulfilling the Participant’s employment
or other assigned duties on behalf of the Corporation; (iii) breach of any confidentiality, employment, or other written agreement
with the Corporation; or (iv) willful misconduct injurious to the Corporation or any of its Subsidiaries or Affiliates as shall
be determined by the Committee.

 

E. “Code” means the Internal
Revenue Code of 1986, and any amendments thereto.

 

F. “Committee” means the
Board or any Committee of the Board to which the Board has delegated any responsibility for the implementation, interpretation
or administration of this Plan. As of the date of the Plan, the Board has initially delegated responsibility for the administration
of the Plan to the Corporation’s Compensation Committee.

 

G. “Common Stock” means
the common stock, $0.0001 par value, of the Corporation.

 

H. “Consultant” means (i)
any person performing consulting or advisory services for the Corporation or any Affiliate, or (ii) a director of an Affiliate.

 

I. “Corporation” means Nxt-ID,
Inc., a Delaware corporation.

 

J. “Corporation Law” means
the Delaware General Corporation Law.

 

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K. “Deferral Period” means
the period of time during which Deferred Shares are subject to deferral limitations under Section 7.D of this Plan.

 

L. “Deferred Shares” means
an award pursuant to Section 7.D of this Plan of the right to receive shares of Common Stock at the end of a specified Deferral
Period.

 

M. “Director” means a member
of the Board.

 

N. “Eligible Person” means
an employee of the Corporation or an Affiliate (including a corporation that becomes an Affiliate after the adoption of this Plan),
a Director or a Consultant to the Corporation or an Affiliate (including a corporation that becomes an Affiliate after the adoption
of this Plan).

 

O. “Exchange Act” means
the Securities Exchange Act of 1934, as amended.

 

P. “Fair Market Value” means,
on any given date, the current fair market value of the shares of Common Stock as determined as follows:

 

(i) If the Common Stock is traded
on a national securities exchange, the closing price for the day of determination as quoted on such market or exchange, including
the NASDAQ Global Market or NASDAQ Capital Market, or the OTC Bulletin Board, whichever is the primary market or exchange for trading
of the Common Stock or if no trading occurs on such date, the last day on which trading occurred, or such other appropriate date
as determined by the Committee in its discretion, as reported in The Wall Street Journal or such other source as the Committee
deems reliable;

 

(ii) If the Common Stock is regularly
quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value shall be the mean between the
high and the low asked prices for the Common Stock for the day of determination; or

 

(iii) In the absence of an established
market for the Common Stock, Fair Market Value shall be determined by the Committee in good faith.

 

Q. “Incentive Stock Option”
means an Option (or portion thereof) intended to qualify for special tax treatment under Section 422 of the Code.

 

R. “Nonqualified Stock Option”
means an Option (or portion thereof) which is not intended or does not for any reason qualify as an Incentive Stock Option.

 

S. “Option” means any option
to purchase shares of Common Stock granted under this Plan.

 

T. “Parent” means any corporation
(other than the Corporation) in an unbroken chain of corporations ending with the Corporation if each of the corporations (other
than the Corporation) owns stock possessing at least fifty percent (50%) of the total combined voting power of all classes of stock
in one of the other corporations in such chain.

 

U. “Participant” means an
Eligible Person who (i) is selected by the Committee or an authorized officer of the Corporation to receive an Award and (ii) is
party to an agreement setting forth the terms of the Award, as appropriate.

 

V. “Performance Agreement”
means an agreement described in Section 8 of this Plan.

 

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W. “Performance Objectives”
means the performance objectives established pursuant to this Plan for Participants who have received grants of Performance Shares
or, when so determined by the Committee, Stock Awards. Performance Objectives may be described in terms of Corporation-wide objectives
or objectives that are related to the performance of the individual Participant or the Affiliate, subsidiary, division, department
or function within the Corporation or Affiliate in which the Participant is employed or has responsibility. Any Performance Objectives
applicable to Awards to the extent that such an Award is intended to qualify as “performance-based compensation” under
Section 162(m) of the Code shall be limited to specified levels of or increases in the Corporation’s or a business unit’s
return on equity, earnings per share, total earnings, earnings growth, return on capital, return on assets, economic value added,
earnings before interest and taxes, earnings before interest, taxes, depreciation and amortization, sales growth, gross margin
return on investment, increase in the Fair Market Value of the shares, share price (including but not limited to growth measures
and total stockholder return), net operating profit, cash flow (including, but not limited to, operating cash flow and free cash
flow), cash flow return on investments (which equals net cash flow divided by total capital), internal rate of return, increase
in net present value or expense targets. The Awards intended to qualify as “Performance Based Compensation” under Section
162(m) of the Code shall be pre-established in accordance with applicable regulations under Section 162(m) of the Code and the
determination of attainment of such goals shall be made by the Committee. If the Committee determines that a change in the business,
operations, corporate structure or capital structure of the Corporation (including an event described in Section 9), or the manner
in which it conducts is business, or other events or circumstances render the Performance Objectives unsuitable, the Committee
may modify such Performance Objectives or the related minimum acceptable level of achievement, in whole or in part, as the Committee
deems appropriate and equitable; provided, however, that no such modification shall be made to an Award intended to qualify as
performance-based compensation under Section 162(m) of the Code unless the Committee determines that such modification will not
result in loss of such qualification or the Committee determines that loss of such qualification is in the best interests of the
Corporation.

 

X. “Performance Period”
means a period of time established under Section 8 of this Plan within which the Performance Objectives relating to a Performance
Share or Stock Award are to be achieved.

 

Y. “Performance Share” means
a bookkeeping entry that records the equivalent of one share of Common Stock awarded pursuant to Section 8 of this Plan.

 

Z. “Plan” means this Nxt-ID,
Inc. 2013 Long-term Stock Incentive Plan.

 

AA. “Repricing” means, other
than in connection with an event described in Section 9 of this Plan, (i) lowering the exercise price of an Option or Stock Appreciation
Right after it has been granted or (ii) canceling an Option or Stock Appreciation Right at a time when the exercise price exceeds
the then Fair Market Value of the Common Stock in exchange for another Option or Stock Award.

 

BB. “Restricted Stock Award”
means an award of Common Stock under Section 7.B.

 

CC. “Securities Act” means
the Securities Act of 1933, as amended.

 

DD. “Stock Award” means
a Stock Bonus Award, Restricted Stock Award, Stock Appreciation Right, Deferred Shares, or Performance Shares.

 

EE. “Stock Bonus Award”
means an award of Common Stock under Section 7.A.

 

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FF. “Stock Appreciation Right”
means an award of a right of the Participant under Section 7.C to receive a payment in cash or shares of Common Stock (or a combination
thereof) based on the increase in Fair Market Value of the shares of Common Stock covered by the award between the date of grant
of such award and the Fair Market Value of the Common Stock on the date of exercise of such Stock Appreciation Right.

 

GG. “Stock Award Agreement”
means an agreement (written or electronic) between the Corporation and a Participant setting forth the specific terms and conditions
of a Stock Award granted to the Participant under Section 7. Each Stock Award Agreement shall be subject to the terms and conditions
of this Plan and shall include such terms and conditions as the Committee shall authorize.

 

HH. “Stock Option Agreement”
means an agreement (written or electronic) between the Corporation and a Participant setting forth the specific terms and conditions
of an Option granted to the Participant. Each Stock Option Agreement shall be subject to the terms and conditions of this Plan
and shall include such terms and conditions as the Committee shall authorize.

 

II. “Subsidiary” means any
corporation (other than the Corporation) in an unbroken chain of corporations beginning with the Corporation if each of the corporations
(other than the last corporation in the unbroken chain) owns stock possessing at least fifty percent (50%) of the total combined
voting power of all classes of stock in one of the other corporations in such chain.

 

JJ. “Ten Percent Owner”
means any Eligible Person owning at the time an Option is granted more than ten percent (10%) of the total combined voting power
of all classes of stock of the Corporation or of a Parent or Subsidiary. An individual shall, in accordance with Section 424(d)
of the Code, be considered to own any voting stock owned (directly or indirectly) by or for such Eligible Person’s brothers,
sisters, spouse, ancestors and lineal descendants and any voting stock owned (directly or indirectly) by or for a corporation,
partnership, estate or trust shall be considered as being owned proportionately by or for its stockholders, partners, or beneficiaries.

 

3. Administration

 

A. Delegation to Board Committee. The
Board shall be the sole Committee of this Plan unless the Board delegates all or any portion of its authority to administer this
Plan to a Committee. To the extent not prohibited by the charter or bylaws of the Corporation, the Board may delegate all or a
portion of its authority to administer this Plan to a Committee of the Board appointed by the Board and constituted in compliance
with the applicable Corporation Law. The Committee shall consist solely of two (2) or more Directors who are (i) Non-Employee Directors
(within the meaning of Rule 16b-3 under the Exchange Act) for purposes of exercising administrative authority with respect to Awards
granted to Eligible Persons who are subject to Section 16 of the Exchange Act; (ii) to the extent required by the rules of the
market on which the Corporation’s shares are traded or the exchange on which the Corporation’ shares are listed, “independent”
within the meaning of such rules; and (iii) at such times as an Award under this Plan by the Corporation is subject to Section
162(m) of the Code (to the extent relief from the limitation of Section 162(m) of the Code is sought with respect to Awards and
administration of the Awards by a committee of “outside directors” is required to receive such relief) “outside
directors” within the meaning of Section 162(m) of the Code.

 

B. Delegation to Officers. The Committee
may delegate to one or more officers of the Corporation the authority to grant and administer Awards to Eligible Persons who are
not Directors or executive officers of the Corporation; provided that the Committee shall have fixed the total number of shares
of Common Stock that may be subject to such Awards. No officer holding such a delegation is authorized to grant Awards to himself
or herself. In addition to the Committee, the officer or officers to whom the Committee has delegated the authority to grant and
administer Awards shall have all powers delegated to the Committee with respect to such Awards. Such delegation shall be subject
to the limitations of Section 157(c) (or any successor provision) of the Corporation Law.

 

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C. Powers of the Committee. Subject
to the provisions of this Plan, and in the case of a Committee appointed by the Board, the specific duties delegated to such Committee,
the Committee (and the officers to whom the Committee has delegated such authority) shall have the authority:

 

(i) To construe and interpret all
provisions of this Plan and all Stock Option Agreements, Stock Award Agreements and Performance Agreements under this Plan.

 

(ii) To determine the Fair Market
Value of Common Stock.

 

(iii) To select the Eligible Persons
to whom Awards are granted from time to time hereunder.

 

(iv) To determine the number of shares
of Common Stock covered by an Award; to determine whether an Option shall be an Incentive Stock Option or Nonqualified Stock Option;
and to determine such other terms and conditions, not inconsistent with the terms of this Plan, of each such Award. Such terms
and conditions include, but are not limited to, the exercise price of an Option, purchase price of Common Stock subject to a Stock
Award, the time or times when Options or Stock Awards may be exercised or Common Stock issued thereunder, the right of the Corporation
to repurchase Common Stock issued pursuant to the exercise of an Option or a Stock Award and other restrictions or limitations
(in addition to those contained in this Plan) on the forfeitability or transferability of Options, Stock Awards or Common Stock
issued upon exercise of an Option or pursuant to an Award. Such terms may include conditions which shall be determined by the Committee
and need not be uniform with respect to Participants.

 

(v) To accelerate the time at which
any Option or Stock Award may be exercised, or the time at which a Stock Award or Common Stock issued under this Plan may become
transferable or non-forfeitable.

 

(vi) To determine whether and under
what circumstances an Option may be settled in cash, shares of Common Stock or other property under Section 6.H instead of Common
Stock.

 

(vii) To waive, amend, cancel, extend,
renew, accept the surrender of, modify or accelerate the vesting of or lapse of restrictions on all or any portion of an outstanding
Award. Except as otherwise provided by this Plan, the Stock Option Agreement, Stock Award Agreement or Performance Agreement or
as required to comply with applicable law, regulation or rule, no amendment, cancellation or modification shall, without a Participant’s
consent, adversely affect any rights of the Participant; provided, however, that (x) an amendment or modification that may cause
an Incentive Stock Option to become a Nonqualified Stock Option shall not be treated as adversely affecting the rights of the Participant
and (y) any other amendment or modification of any Stock Option Agreement, Stock Award Agreement or Performance Agreement that
does not, in the opinion of the Committee, adversely affect any rights of any Participant, shall not require such Participant’s
consent. Notwithstanding the foregoing, the restrictions on the Repricing of Options and Stock Appreciation Rights, as set forth
in this Plan, may not be waived.

 

(viii) To prescribe the form of Stock
Option Agreements, and Stock Award Agreements and Performance Agreements; to adopt policies and procedures for the exercise of
Options or Stock Awards, including the satisfaction of withholding obligations; to adopt, amend, and rescind policies and procedures
pertaining to the administration of this Plan; and to make all other determinations necessary or advisable for the administration
of this Plan. The Award’s effectiveness will not be dependent on any signature unless specifically so provided in the Award
Agreement. Awards shall generally be subject to a three year vesting period and no more than 60% of Awards to executives and directors
may have a vesting period of less than three years; provided, however, that vesting may accelerate in the event of change in control
and certain other events as set forth in Section [__] herein, and in the events of death, disability or retirement, as will be
specified in the Award Agreement.

 

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The express grant in this Plan of any specific
power to the Committee shall not be construed as limiting any power or authority of the Committee; provided that the Committee
or any committee of the Board may not exercise any right or power reserved to the Board. Any decision made, or action taken, by
the Committee or in connection with the administration of this Plan shall be final, conclusive and binding on all persons having
an interest in this Plan.

 

4. Eligibility

 

A. Eligibility for Awards. Awards, other
than Incentive Stock Options, may be granted to any Eligible Person selected by the Committee. Incentive Stock Options may be granted
only to employees of the Corporation or a Parent or Subsidiary.

 

B. Eligibility of Consultants. A Consultant
shall be an Eligible Person only if the offer or sale of the Corporation’s securities would be eligible for registration
on Form S-8 Registration Statement because of the identity and nature of the service provided by such person, unless the Corporation
determines that an offer or sale of the Corporation’s securities to such person will satisfy another exemption from the registration
under the Securities Act and complies with the securities laws of all other jurisdictions applicable to such offer or sale.

 

C. Substitution Awards. The Committee
may make Awards and may grant Options under this Plan by assumption, in substitution or replacement of performance shares, phantom
shares, stock awards, stock options, stock appreciation rights or similar awards granted by another entity (including an Affiliate)
in connection with a merger, consolidation, acquisition of property or stock or similar transaction. Notwithstanding any provision
of this Plan (other than the maximum number of shares of Common Stock that may be issued under this Plan), the terms of such assumed,
substituted, or replaced Awards shall be as the Committee, in its discretion, determines is appropriate.

 

5. Common Stock Subject to Plan

 

A. Share Reserve and Limitations on Grants.
Subject to adjustment as provided in Section 9, the maximum aggregate number of shares of Common Stock that may be (i) issued under
this Plan pursuant to the exercise of Options, (ii) issued pursuant to Stock Awards, (iii) covered by Stock Appreciation Rights
(without regard to whether payment on exercise of the Stock Appreciation Right is made in cash or shares of Common Stock) and (iv)
covered by Performance Shares shall be limited 10% of the shares of Common Stock outstanding, which calculation shall be made on
the first business day of a new fiscal year; provided that, the Plan shall be vested with an initial grant of no fewer than [_____]
shares of Common Stock. Thereafter, the evergreen provision of 10% shall govern the Plan. The number shares of Common Stock subject
to the Plan shall be subject to adjustment as provided in Section 9. Subject to adjustment as provided in Section 9, and notwithstanding
any provision hereto to the contrary, shares subject to the Plan shall include shares forfeited in a prior year as provided herein.
For purposes of determining the number of shares of Common Stock available under this Plan, shares of Common Stock withheld by
the Corporation to satisfy applicable tax withholding obligations pursuant to Section 10 of this Plan shall be deemed issued under
this Plan. No single participant may receive more than 25% of the total shares awarded
in any single year.

 

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B. Reversion of Shares. If an Option
or Stock Award is terminated, expires or becomes unexercisable, in whole or in part, for any reason, the unissued or unpurchased
shares of Common Stock (or shares subject to an unexercised Stock Appreciation Right) which were subject thereto shall become available
for future grant under this Plan. Shares of Common Stock that have been actually issued under this Plan shall not be returned to
the share reserve for future grants under this Plan; except that shares of Common Stock issued pursuant to a Stock Award which
are forfeited to the Corporation or repurchased by the Corporation at the original purchase price of such shares, shall be returned
to the share reserve for future grant under this Plan.

 

C. Source of Shares. Common Stock issued
under this Plan may be shares of authorized and unissued Common Stock or shares of previously issued Common Stock that have been
reacquired by the Corporation.

 

6. Options

 

A. Award. In accordance with the provisions
of Section 4, the Committee will designate each Eligible Person to whom an Option is to be granted and will specify the number
of shares of Common Stock covered by such Option. The Stock Option Agreement shall specify whether the Option is an Incentive Stock
Option or Nonqualified Stock Option, the vesting schedule applicable to such Option and any other terms of such Option. No Option
that is intended to be an Incentive Stock Option shall be invalid for failure to qualify as an Incentive Stock Option.

 

B. Option Price. The exercise price
per share for Common Stock subject to an Option shall be determined by the Committee, but shall comply with the following:

 

(i) The exercise price per share for Common
Stock subject to an Option shall not be less than one hundred percent (100%) of the Fair Market Value on the date of grant.

 

(ii) The exercise price per share for Common
Stock subject to an Incentive Stock Option granted to a Participant who is deemed to be a Ten Percent Owner on the date such option
is granted, shall not be less than one hundred ten percent (110%) of the Fair Market Value on the date of grant.

 

C. Maximum Option Period. The maximum
period during which an Option may be exercised shall be ten (10) years from the date such Option was granted. In the case of an
Incentive Stock Option that is granted to a Participant who is or is deemed to be a Ten Percent Owner on the date of grant, such
Option shall not be exercisable after the expiration of five (5) years from the date of grant.

 

D. Maximum Value of Options which are Incentive
Stock Options. To the extent that the aggregate Fair Market Value of the Common Stock with respect to which Incentive Stock
Options granted to any person are exercisable for the first time during any calendar year (under all stock option plans of the
Corporation or any Parent or Subsidiary) exceeds $100,000 (or such other amount provided in Section 422 of the Code), the Options
are not Incentive Stock Options. For purposes of this section, the Fair Market Value of the Common Stock will be determined as
of the time the Incentive Stock Option with respect to the Common Stock is granted. This section will be applied by taking Incentive
Stock Options into account in the order in which they are granted.

 

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E. Nontransferability. Options granted
under this Plan which are intended to be Incentive Stock Options shall be nontransferable except by will or by the laws of descent
and distribution and during the lifetime of the Participant shall be exercisable by only the Participant to whom the Incentive
Stock Option is granted. Except to the extent transferability of a Nonqualified Stock Option is provided for in the Stock Option
Agreement or is approved by the Committee, during the lifetime of the Participant to whom the Nonqualified Stock Option is granted,
such Option may be exercised only by the Participant. If the Stock Option Agreement so provides or the Committee so approves, a
Nonqualified Stock Option may be transferred by a Participant through a gift or domestic relations order to the Participant’s
family members to the extent in compliance with applicable securities laws and regulations and provided that such transfer is not
a transfer for value (within the meaning of applicable securities laws and regulations). The holder of a Nonqualified Stock Option
transferred pursuant to this section shall be bound by the same terms and conditions that governed the Option during the period
that it was held by the Participant. No right or interest of a Participant in any Option shall be liable for, or subject to, any
lien, obligation, or liability of such Participant.

 

F. Vesting. Options will vest as provided
in the Stock Option Agreement.

 

G. Exercise. Subject to the provisions
of this Plan and the applicable Stock Option Agreement, an Option may be exercised to the extent vested in whole at any time or
in part from time to time at such times and in compliance with such requirements as the Committee shall determine. A partial exercise
of an Option shall not affect the right to exercise the Option from time to time in accordance with this Plan and the applicable
Stock Option Agreement with respect to the remaining shares subject to the Option. An Option may not be exercised with respect
to fractional shares of Common Stock.

 

H. Payment. Unless otherwise provided
by the Stock Option Agreement, payment of the exercise price for an Option shall be made in cash or a cash equivalent acceptable
to the Committee or if the Common Stock is traded on an established securities market, by payment of the exercise price by a broker-dealer
or by the Option holder with cash advanced by the broker-dealer if the exercise notice is accompanied by the Option holder’s
written irrevocable instructions to deliver the Common Stock acquired upon exercise of the Option to the broker-dealer or by delivery
of the Common Stock to the broker-dealer with an irrevocable commitment by the broker-dealer to forward the exercise price to the
Corporation. With the consent of the Committee, payment of all or a part of the exercise price of an Option may also be made (i)
by surrender to the Corporation (or delivery to the Corporation of a properly executed form of attestation of ownership) of shares
of Common Stock that have been held for such period prior to the date of exercise as is necessary to avoid adverse accounting treatment
to the Corporation, or (ii) any other method acceptable to the Committee, including without limitation, the withholding of shares
receivable upon settlement of the option in payment of the exercise price. If Common Stock is used to pay all or part of the exercise
price, the sum of the cash or cash equivalent and the Fair Market Value (determined as of the date of exercise) of the shares surrendered
must not be less than the Option price of the shares for which the Option is being exercised.

 

I. Stockholder Rights. No Participant
shall have any rights as a stockholder with respect to shares subject to an Option until the date of exercise of such Option and
the certificate for shares of Common Stock to be received on exercise of such Option has been issued by the Corporation.

 

J. Disposition and Stock Certificate Legends
for Incentive Stock Option Shares. A Participant shall notify the Corporation of any sale or other disposition of Common Stock
acquired pursuant to an Incentive Stock Option if such sale or disposition occurs (i) within two years of the grant of an Option
or (ii) within one year of the issuance of the Common Stock to the Participant. Such notice shall be in writing and directed to
the Chief Financial Officer of the Corporation or is his/her absence, the Chief Executive Officer. The Corporation may require
that certificates evidencing shares of Common Stock purchased upon the exercise of Incentive Stock Option issued under this Plan
be endorsed with a legend in substantially the following form:

 

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THE SHARES EVIDENCED BY THIS CERTIFICATE MAY
NOT BE SOLD OR TRANSFERRED PRIOR TO ___, 20___, IN THE ABSENCE OF A WRITTEN STATEMENT FROM THE CORPORATION TO THE EFFECT THAT THE
CORPORATION IS AWARE OF THE FACTS OF SUCH SALE OR TRANSFER.

 

The blank contained in this legend shall be
filled in with the date that is the later of (i) one year and one day after the date of the exercise of such Incentive Stock Option
or (ii) two years and one day after the grant of such Incentive Stock Option.

 

K. No Repricing. In no event shall the
Committee permit a Repricing of any Option without the approval of the stockholders of the Corporation.

 

7. Stock Awards

 

A. Stock Bonus Awards. Each Stock Award
Agreement for a Stock Bonus Award shall be in such form and shall contain such terms and conditions (including provisions relating
to consideration, vesting, reacquisition of shares following termination, and transferability of shares) as the Committee shall
deem appropriate. The terms and conditions of Stock Award Agreements for Stock Bonus Awards may change from time to time, and the
terms and conditions of separate Stock Bonus Awards need not be identical.

 

B. Restricted Stock Awards. Each Stock
Award Agreement for a Restricted Stock Award shall be in such form and shall contain such terms and conditions (including provisions
relating to purchase price, consideration, vesting, reacquisition of shares following termination, and transferability of shares)
as the Committee shall deem appropriate. The terms and conditions of the Stock Award Agreements for Restricted Stock Awards may
change from time to time, and the terms and conditions of separate Restricted Stock Awards need not be identical. Vesting of (or
forfeiture of) any grant of Restricted Stock Awards may be further conditioned upon the attainment of Performance Objectives established
by the Committee in accordance with the applicable provisions of Section 8 of this Plan regarding Performance Shares.

 

C. Stock Appreciation Rights. Each Stock
Award Agreement for Stock Appreciation Rights shall be in such form and shall contain such terms and conditions (including provisions
relating to vesting, reacquisition of shares following termination, and transferability of shares) as the Committee shall deem
appropriate. The terms and conditions of Stock Appreciation Rights may change from time to time, and the terms and conditions of
separate Stock Appreciation Rights need not be identical. No Stock Appreciation Right shall be exercisable after the expiration
of seven (7) years from the date such Stock Appreciation Right is granted. The base price per share for each share of Common Stock
covered by an Award of Stock Appreciation Rights shall not be less than one hundred percent (100%) of the Fair Market Value of
a share of Common Stock on the date of grant. In no event shall the Committee permit a Repricing of any Stock Appreciation Right
without the approval of the stockholders of the Corporation.

 

D. Deferred Shares. The Committee may
authorize grants of Deferred Shares to Participants upon such terms and conditions as the Committee may determine in accordance
with the following provisions:

 

(i) Each grant shall constitute the
agreement by the Corporation to issue or transfer shares of Common Stock to the Participant in the future in consideration of the
performance of services, subject to the fulfillment during the Deferral Period of such conditions as the Committee may specify.

 

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(ii) Each grant may be made without
additional consideration from the Participant or in consideration of a payment by the Participant that is less than the Fair Market
Value on the date of grant.

 

(iii) Each grant shall provide that
the Deferred Shares covered thereby shall be subject to a Deferral Period, which shall be fixed by the Committee on the date of
grant, and any grant or sale may provide for the earlier termination of such period in the event of a change in control of the
Corporation or other similar transaction or event.

 

(iv) During the Deferral Period,
the Participant shall not have any right to transfer any rights under the subject Award, shall not have any rights of ownership
in the Deferred Shares and shall not have any right to vote such shares, but the Committee may on or after the date of grant, authorize
the payment of dividend or other distribution equivalents on such shares in cash or additional shares on a current, deferred or
contingent basis.

 

(v) Any grant of the vesting thereof
may be further conditioned upon the attainment of Performance Objectives established by the Committee in accordance with the applicable
provisions of Section 8 of this Plan regarding Performance Shares.

 

(vi) Each grant shall be evidenced
by an agreement delivered to and accepted by the Participant and containing such terms and provisions as the Committee may determine
consistent with this Plan.

 

8. Performance Shares

 

A. The Committee may authorize grants of Performance
Shares, which shall become payable to the Participant upon the achievement of specified Performance Objectives, upon such terms
and conditions as the Committee may determine in accordance with the following provisions:

 

(i) Each grant shall specify the
number of Performance Shares to which it pertains, which may be subject to adjustment to reflect changes in compensation or other
factors.

 

(ii) The Performance Period with
respect to each Performance Share shall commence on the date established by the Committee and may be subject to earlier termination
in the event of a change in control of the Corporation or similar transaction or event.

 

(iii) Each grant shall specify the
Performance Objectives that are to be achieved by the Participant.

 

(iv) Each grant may specify in respect
of the specified Performance Objectives a minimum acceptable level of achievement below which no payment will be made and may set
forth a formula for determining the amount of any payment to be made if performance is at or above such minimum acceptable level
but falls short of the maximum achievement of the specified Performance Objectives.

 

(v) Each grant shall specify the
time and manner of payment of Performance Shares that shall have been earned, and any grant may specify that any such amount may
be paid by the Corporation in cash, shares of Common Stock or any combination thereof and may either grant to the Participant or
reserve to the Committee the right to elect among those alternatives.

 

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(vi) Any grant of Performance Shares
may specify that the amount payable with respect thereto may not exceed a maximum specified by the Committee on the date of grant.

 

(vii) Any grant of Performance Shares
may provide for the payment to the Participant of dividend or other distribution equivalents thereon in cash or additional shares
of Common Stock on a current, deferred or contingent basis.

 

(viii) If provided in the terms of
the grant and subject to the requirements of Section 162(m) of the Code (in the case of Awards intended to qualify for exception
therefrom), the Committee may adjust Performance Objectives and the related minimum acceptable level of achievement if, in the
sole judgment of the Committee, events or transactions have occurred after the date of grant that are unrelated to the performance
of the Participant and result in distortion of the Performance Objectives or the related minimum acceptable level of achievement.

 

(ix) Each grant shall be evidenced
by an agreement that shall be delivered to and accepted by the Participant, which shall state that the Performance Shares are subject
to all of the terms and conditions of this Plan and such other terms and provisions as the Committee may determine consistent with
this Plan.

 

9. Changes in Capital Structure

 

A. No Limitations of Rights. The existence
of outstanding Awards shall not affect in any way the right or power of the Corporation or its stockholders to make or authorize
any or all adjustments, recapitalizations, reorganizations or other changes in the Corporation’s capital structure or its
business, or any merger or consolidation of the Corporation, or any issuance of bonds, debentures, preferred or prior preference
stock ahead of or affecting the Common Stock or the rights thereof, or the dissolution or liquidation of the Corporation, or any
sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character
or otherwise.

 

B. Changes in Capitalization. If the
Corporation shall effect a subdivision or consolidation of shares or other capital readjustment, the payment of a stock dividend,
or other increase or reduction of the number of shares of the Common Stock outstanding, without receiving consideration therefore
in money, services or property, then (i) the number, class, and per share price of shares of Common Stock subject to outstanding
Options and other Awards hereunder and (ii) the number and class of shares then reserved for issuance under this Plan and the maximum
number of shares for which Awards may be granted to a Participant during a specified time period shall be appropriately and proportionately
adjusted. The conversion of convertible securities of the Corporation shall not be treated as effected “without receiving
consideration.” The Committee shall make such adjustments, and its determinations shall be final, binding and conclusive.

 

C. Merger, Consolidation or Asset Sale.
If the Corporation is merged or consolidated with another entity or sells or otherwise disposes of substantially all of its assets
to another company while Options or Stock Awards remain outstanding under this Plan, unless provisions are made in connection with
such transaction for the continuance of this Plan and/or the assumption or substitution of such Options or Stock Awards with new
options or stock awards covering the stock of the successor company, or parent or subsidiary thereof, with appropriate adjustments
as to the number and kind of shares and prices, then all outstanding Options and Stock Awards which have not been continued, assumed
or for which a substituted award has not been granted shall, whether or not vested or then exercisable, unless otherwise specified
in the Stock Option Agreement or Stock Award Agreement, terminate immediately as of the effective date of any such merger, consolidation
or sale.

 

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D. Limitation on Adjustment. Except
as previously expressly provided, neither the issuance by the Corporation of shares of stock of any class, or securities convertible
into shares of stock of any class, for cash or property, or for labor or services either upon direct sale or upon the exercise
of rights or warrants to subscribe therefor, or upon conversion of shares or obligations of the Corporation convertible into such
shares or other securities, nor the increase or decrease of the number of authorized shares of stock, nor the addition or deletion
of classes of stock, shall affect, and no adjustment by reason thereof shall be made with respect to, the number, class or price
of shares of Common Stock then subject to outstanding Options or Stock Awards.

 

10. Withholding of Taxes

 

The Corporation or an Affiliate shall have
the right, before any certificate for any Common Stock is delivered, to deduct or withhold from any payment owed to a Participant
any amount that is necessary in order to satisfy any withholding requirement that the Corporation or Affiliate in good faith believes
is imposed upon it in connection with U.S. federal, state, or local taxes, including transfer taxes, as a result of the issuance
of, or lapse of restrictions on, such Common Stock, or otherwise require such Participant to make provision for payment of any
such withholding amount. Subject to such conditions as may be established by the Committee, the Committee may permit a Participant
to (i) have Common Stock otherwise issuable under an Option or Stock Award withheld to the extent necessary to comply with minimum
statutory withholding rate requirements, (ii) tender back to the Corporation shares of Common Stock received pursuant to an Option
or Stock Award to the extent necessary to comply with minimum statutory withholding rate requirements for supplemental income,
(iii) deliver to the Corporation previously acquired Common Stock, (iv) have funds withheld from payments of wages, salary or other
cash compensation due the Participant, (v) pay the Corporation or its Affiliate in cash, in order to satisfy part or all of the
obligations for any taxes required to be withheld or otherwise deducted and paid by the Corporation or its Affiliate with respect
to the Option or Stock Award; or (vi) establish a 10b5-1 trading plan for withheld stock designed to facilitate the sale of stock
in connection with the vesting of such shares, the proceeds of which shall be utilized to make all applicable withholding payments
in a manner to be coordinated by the Corporation’s Chief Financial Officer.

 

11. Compliance with Law and Approval
of Regulatory Bodies

 

A. General Requirements. No Option or
Stock Award shall be exercisable, no Common Stock shall be issued, no certificates for shares of Common Stock shall be delivered,
and no payment shall be made under this Plan except in compliance with all applicable federal and state laws and regulations (including,
without limitation, withholding tax requirements), any listing agreement to which the Corporation is a party, and the rules of
all domestic stock exchanges or quotation systems on which the Corporation’s shares may be listed. The Corporation shall
have the right to rely on an opinion of its counsel as to such compliance. Any share certificate issued to evidence Common Stock
when a Stock Award is granted or for which an Option or Stock Award is exercised may bear such legends and statements as the Committee
may deem advisable to assure compliance with federal and state laws and regulations. No Option or Stock Award shall be exercisable,
no Stock Award shall be granted, no Common Stock shall be issued, no certificate for shares shall be delivered, and no payment
shall be made under this Plan until the Corporation has obtained such consent or approval as the Committee may deem advisable from
regulatory bodies having jurisdiction over such matters.

 

B. Participant Representations. The
Committee may require that a Participant, as a condition to receipt or exercise of a particular award, execute and deliver to the
Corporation a written statement, in form satisfactory to the Committee, in which the Participant represents and warrants that the
shares are being acquired for such person’s own account, for investment only and not with a view to the resale or distribution
thereof. The Participant shall, at the request of the Committee, be required to represent and warrant in writing that any subsequent
resale or distribution of shares of Common Stock by the Participant shall be made only pursuant to either (i) a registration statement
on an appropriate form under the Securities Act of 1933, which registration statement has become effective and is current with
regard to the shares being sold, or (ii) a specific exemption from the registration requirements of the Securities Act of 1933,
but in claiming such exemption the Participant shall, prior to any offer of sale or sale of such shares, obtain a prior favorable
written opinion of counsel, in form and substance satisfactory to counsel for the Corporation, as to the application of such exemption
thereto.

 

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12. General Provisions

 

A. Effect on Employment and Service.
Neither the adoption of this Plan, its operation, nor any documents describing or referring to this Plan (or any part thereof)
shall (i) confer upon any individual any right to continue in the employ or service of the Corporation or an Affiliate, (ii) in
any way affect any right and power of the Corporation or an Affiliate to change an individual’s duties or terminate the employment
or service of any individual at any time with or without assigning a reason therefor or (iii) except to the extent the Committee
grants an Option or Stock Award to such individual, confer on any individual the right to participate in the benefits of this Plan.

 

B. Use of Proceeds. The proceeds received
by the Corporation from the sale of Common Stock pursuant to this Plan shall be used for general corporate purposes.

 

C. Unfunded Plan. This Plan, insofar
as it provides for grants, shall be unfunded, and the Corporation shall not be required to segregate any assets that may at any
time be represented by grants under this Plan. Any liability of the Corporation to any person with respect to any grant under this
Plan shall be based solely upon any contractual obligations that may be created pursuant to this Plan. No such obligation of the
Corporation shall be deemed to be secured by any pledge of, or other encumbrance on, any property of the Corporation.

 

D. Rules of Construction. Headings are
given to the Sections of this Plan solely as a convenience to facilitate reference. The reference to any statute, regulation, or
other provision of law shall be construed to refer to any amendment to or successor of such provision of law.

 

E. Choice of Law. This Plan and all
Stock Option Agreements and Stock Award Agreements entered into under this Plan shall be interpreted under the Corporation Law
excluding (to the greatest extent permissible by law) any rule of law that would cause the application of the laws of any jurisdiction
other than the Corporation Law.

 

F. Fractional Shares. The Corporation
shall not be required to issue fractional shares pursuant to this Plan. The Committee may provide for elimination of fractional
shares or the settlement of such fraction shares in cash.

 

G. Foreign Employees. In order to facilitate
the making of any grant or combination of grants under this Plan, the Committee may provide for such special terms for Awards to
Participants who are foreign nationals, or who are employed by the Corporation or any Affiliate outside of the United States, as
the Committee may consider necessary or appropriate to accommodate differences in local law, tax policy or custom. Moreover, the
Committee may approve such supplements to, or amendments, restatements or alternative versions of, this Plan as it may consider
necessary or appropriate for such purposes without thereby affecting the terms of this Plan, as then in effect, unless this Plan
could have been amended to eliminate such inconsistency without further approval by the stockholders of the Corporation.

 

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13. Amendment and Termination

 

The Board may amend or terminate this Plan
from time to time; provided, however, stockholder approval shall be required for any amendment that (i) increases the aggregate
number of shares of Common Stock that may be issued under this Plan, except as contemplated by Section 5.A or Section 9.B; (ii)
changes the class of employees eligible to receive Incentive Stock Options; (iii) modifies the restrictions on Repricings set forth
in this Plan; or (iv) is required by the terms of any applicable law, regulation or rule, including the rules of any market on
which the Corporation shares are traded or exchange on which the Corporation shares are listed. Except as specifically permitted
by this Plan, Stock Option Agreement or Stock Award Agreement or as required to comply with applicable law, regulation or rule,
no amendment shall, without a Participant’s consent, adversely affect any rights of such Participant under any Option or
Stock Award outstanding at the time such amendment is made; provided, however, that an amendment that may cause an Incentive Stock
Option to become a Nonqualified Stock Option shall not be treated as adversely affecting the rights of the Participant. Any amendment
requiring stockholder approval shall be approved by the stockholders of the Corporation within twelve (12) months of the date such
amendment is adopted by the Board.

 

14. Effective Date of Plan; Duration
of Plan

 

A. This Plan shall be effective upon adoption
by the Board, subject to approval within twelve (12) months by the stockholders of the Corporation. In the event that the stockholders
of the Corporation shall not approve this Plan within such twelve (12) month period, this Plan shall terminate. Unless and until
the Plan has been approved by the stockholders of the Corporation, no Option or Stock Award may be exercised, and no shares of
Common Stock may be issued under the Plan. In the event that the stockholders of the Corporation shall not approve the Plan within
such twelve (12) month period, the Plan and any previously granted Options or Stock Awards shall terminate.

 

B. Unless previously terminated, this Plan
will terminate ten (10) years after the earlier of (i) the date this Plan is adopted by the Board, or (ii) the date this Plan is
approved by the stockholders, except that Awards that are granted under this Plan prior to its termination will continue to be
administered under the terms of this Plan until the Awards terminate or are exercised.

 

IN WITNESS WHEREOF, the Corporation
has caused this Plan to be executed by a duly authorized officer as of the date of adoption of this Plan by the Board of Directors.

 

NXT-ID, INC.

 

	By:	 	 
	 	
        Gino Pereira

        Chief Executive Officer
	 
	 	 	 
	 	 	 

 

 

14Exhibit 10.3 

  

NXT-ID,
INC.

 

STOCK OPTION AGREEMENT

  

Unless the context clearly
indicates otherwise, capitalized terms used in this Agreement shall have the meanings assigned to such terms in the Company’s
Long-term Incentive Plan of 2013.

 

Whereas,
the Board of Directors of the Company has adopted the Plan for the purpose of attracting and retaining the services of selected
key employees (including officers and directors), non-employee members of the Board and consultants and other independent contractors
who contribute to the financial success of the Company; and

 

Whereas,
Participant is an individual who is to render valuable services to the Company, and this Agreement is executed pursuant to, and
is intended to carry out the purposes of, the Plan in connection with the Company’s grant of a stock option to Participant;

 

Now,
Therefore, it is agreed as follows:

 

1.Provisions of Plan Binding.
This Agreement and the option evidenced hereby are made and granted pursuant to the Plan and are in all respects limited by and
subject to the express terms and provisions of the Plan, which are incorporated herein by reference.

 

2.Grant of Option. Subject to
and upon the terms and conditions set forth in this Agreement and the Plan, the Company hereby grants to Participant, as of the
Grant Date, a stock option to purchase up to that number of Option Shares specified in the Grant Notice. The Option Shares shall
be purchasable from time to time during the option term and at the Option Price per share specified in the Grant Notice.

 

3.Option Term. This Option shall
expire at the close of business on the Expiration Date specified in the Grant Notice, unless sooner terminated in accordance with
Section 6 or 18 hereof or any applicable provision of the Plan; provided, in no event shall this option have a maximum term
in excess of ten (10) years measured from the Grant Date.

 

4.Nontransferability. This Option
shall be neither transferable nor assignable by Participant other than by will or by the laws of descent and distribution following
the Participant’s death and may be exercised, during Participant’s lifetime, only by Participant.

 

5.Dates of Exercise. This Option
may not be exercised in whole or in part at any time prior to the time the Plan or any increases in shares reserved under the Plan
is approved by the Company’s shareholders. Provided such shareholder approval is obtained, this Option shall thereupon become
exercisable for the Option Shares as specified in the Grant Notice. If the Option becomes exercisable in installments, such installments
shall accumulate and the Option shall remain exercisable for such installments until the Expiration Date or the sooner termination
of the Option term under Section 6 of this Agreement or any applicable provision of the Plan.

 

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6.Accelerated Termination of Option
Term. The Option term specified in Section 3 above shall terminate (and this Option shall cease to be exercisable) prior to
the Expiration Date should any of the following provisions become applicable:

 

(a)Except as otherwise provided in
subsection (b) or (c) below, should Participant cease to remain in Service while this Option is outstanding, then the period for
exercising this Option shall be reduced to a [three (3)-month] period commencing with the date of such cessation of Service, but
in no event shall this Option be exercisable at any time after the Expiration Date. Upon the expiration of such [three (3)-month]
period or (if earlier) upon the Expiration Date, this Option shall terminate and cease to be outstanding.

 

(b)Should Participant die while this
Option is outstanding, then the personal representative of the Participant’s estate or the person or persons to whom the
option is transferred pursuant to the Participant’s will or in accordance with the law of descent and distribution shall
have the right to exercise this Option. Such right shall lapse, and this Option shall cease to be exercisable, upon the earlier
of (i) the expiration of the twelve (12) month period measured from the date of Participant’s death or (ii) the Expiration
Date. Upon the expiration of such twelve (12) month period or (if earlier) upon the Expiration Date, this Option shall terminate
and cease to be outstanding.

 

(c)Should Participant become Permanently
Disabled and cease by reason thereof to remain in Service while this Option is outstanding, then the Participant shall have a period
of twelve (12) months (commencing with the date of such cessation of Service) during which to exercise this Option, but in no event
shall this Option be exercisable at any time after the Expiration Date. Upon the expiration of such limited period of exercisability
or (if earlier) upon the Expiration Date, this Option shall terminate and cease to be outstanding.

 

(d)During the limited period of exercisability
applicable under subsections (a), (b) or (c) above, this option may be exercised for any or all of the Option Shares in which the
Participant, at the time of cessation of Service, is vested in accordance with the exercise/vesting provisions specified in the
Grant Notice or the special acceleration provisions of the Plan.

 

(e)Notwithstanding any provision of
this Section 6 or any other provision of this Agreement or the Plan to the contrary, any Options granted under the Plan shall terminate
as of the date Participant ceases to be in the Service of the Company if Participant was terminated for “cause” or
could have been terminated for “cause.” If Participant has an employment or consulting agreement with the Company,
the term “cause” shall have the meaning given that term in the employment or consulting agreement. If Participant does
not have such an agreement with the Company, or if such agreement does not define the term “cause,” the term “cause”
shall have the meaning set forth in Section 6(a) of the Plan.

 

7.Adjustment in Option Shares.

 

(a)In the event any change is made
to the Company’s outstanding Common Stock by reason of any stock split, stock dividend, combination of shares, exchange of
shares, or other change affecting the outstanding Common Stock as a class without receipt of consideration, then appropriate adjustments
shall be made to the total number of Option Shares subject to this option and the Option Price payable per share in order to reflect
such change and thereby preclude a dilution or enlargement of benefits hereunder.

 

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(b)If pursuant to the terms of the
Plan, this option is to be assumed or is otherwise to remain outstanding after a Corporate Transaction, then this option shall
be appropriately adjusted to apply and pertain to the number and class of securities that would have been issuable to the Participant
in the consummation of such Corporate Transaction had the option been exercised immediately prior to such Corporate Transaction,
and appropriate adjustments shall also be made to the Option Price payable per share, provided the aggregate Option Price
payable hereunder shall remain the same.

 

8.Privilege of Stock Ownership.
The holder of this option shall not have any of the rights of a shareholder with respect to the Option Shares until such individual
shall have exercised the option and paid the Option Price.

 

9.Manner of Exercising Option.

 

(a)The Options will be
exercisable by notice (an “Exercise Notice”) and payment to the Company in accordance with the procedure prescribed
herein; provided, that the aggregate Exercise Price with respect to any one such exercise will not be less than $[5,000], unless
the exercise represents an exercise of all Options that are vested and exercisable as of the date of the exercise. If the Employee
fails to accept delivery of and pay for all or any part of the number of shares specified in the Exercise Notice upon tender or
delivery thereof, the Employee’s right to exercise the Options with respect to the undelivered shares may be terminated in
the sole discretion of the Company’s Compensation Committee.

 

(b) Each Exercise Notice
will (1) state the number of shares in respect of which Options are being exercised, (2) be accompanied by payment as provided
in paragraph (c) below and (3) be signed by the person or persons entitled to exercise the Options. If Options are being exercised
by any person or persons other than the Employee, the Exercise Notice will be accompanied by proof, satisfactory to the Company
and its counsel, of the right of the person or persons to exercise the Options.

 

(c) Payment of the Exercise
Price will be made by delivering to the Company any one or a combination of (1) a certified or bank cashier’s check payable
to the Company or its order or a wire transfer directly to an account specified by the Company, (2) one or more certificates evidencing
shares of Common Stock owned by the Employee immediately prior to the exercise, together with a duly executed stock power, having
an aggregate Fair Market Value (defined below) on the date on which the Exercise Notice is given equal to the aggregate Exercise
Price or (3) a copy of irrevocable instructions to a registered broker/dealer to deliver promptly to the Company an amount of proceeds
from the sale of shares of Common Stock to be issued pursuant to the Options being exercised or of a loan being made by such broker-dealer
with respect to shares of Common Stock to be issued pursuant to the Options being exercised sufficient, in either case, to pay
the Exercise Price.

 

(d) The certificate or
certificates representing shares of Common Stock to be issued upon exercise of the Options will be registered in the name of the
person or persons exercising the Options, or, if the Options are exercised by the Employee and the Employee so requests in the
applicable Exercise Notice, in the name of the Employee and the Employee’s spouse, jointly, with right of survivorship. The
certificate or certificates will be delivered within 10 days after receipt of payment and compliance by the Employee; provided,
that in the case of clause (3) of the first sentence of Section 9(c), the Company will not make delivery of the certificate or
certificates until payment is actually received from the broker/dealer.

 

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(e)The Company will have
no obligation to issue or deliver fractional shares of Common Stock upon exercise of the Options but may, in its sole discretion,
elect to do so. In lieu of issuing any fractional share, the Company will pay to the person exercising the Options, promptly following
exercise, an amount in cash equal to the Fair Market Value of the fraction of a share as of the date of exercise. “Fair Market
Value” as of any date means (1) the closing sales price per share of Common Stock on the national securities exchange on
which the stock is principally traded, on the next preceding date on which there was a sale of the stock on the exchange, (2) if
the shares of Common Stock are not listed or admitted to trading on any exchange, the closing price as reported by the Nasdaq Stock
Market for the last preceding date on which there was a sale of the stock on that market, (3) if the shares of Common Stock are
not then listed on a national securities exchange or on the Nasdaq Stock Market, the average of the highest reported bid and lowest
reported asked prices for the shares of Common Stock as reported by the National Association of Securities Dealers, Inc. Automated
Quotations (“NASDAQ”) system for the last preceding date on which the bid and asked prices were reported or (4) if
the shares of Common Stock are not then listed on any securities exchange or prices therefor are not then quoted in the NASDAQ
system, the value determined in good faith by the Company’s Compensation Committee.

 

(f)Should the Company’s
outstanding common stock be registered under Section 12(g) of the Securities Exchange Act of 1934, as amended (the “1934
Act”), at the time the option is exercised, then the Option Price may also be paid as specified in Section 9(c)(3) of this
Agreement.

 

 

10.REPURCHASE RIGHTS.
THE GRANT NOTICE MAY GRANT THE COMPANY THE RIGHT TO REPURCHASE ANY SHARES ACQUIRED UNDER THIS OPTION, WHICH RIGHT SHALL LAPSE OVER
TIME BASED UPON THE PARTICIPANT’S LENGTH OF SERVICE TO THE COMPANY.

 

11.Compliance with Laws and Regulations.

 

(a)The exercise of this option and
the issuance of Option Shares upon such exercise shall be subject to compliance by the Company and the Participant with all applicable
requirements of federal and state law relating thereto (and with all applicable regulations of any stock exchange or market on
which shares of the Company’s Common Stock may be listed at the time of such exercise and issuance).

 

(b)In connection with the exercise
of this option, Participant shall execute and deliver to the Company such representations in writing as may be requested by the
Company in order for it to comply with the applicable requirements of federal and state securities laws.

 

12.Successors and Assigns. Except
to the extent otherwise provided in Section 4 above, the provisions of this Agreement shall inure to the benefit of, and be binding
upon, the successors, administrators, heirs, legal representatives and assigns of Participant and the successors and assigns of
the Company.

 

13.Liability of Company.

 

(a)If the Option Shares covered by
this Agreement exceed, as of the Grant Date, the number of shares of Common Stock that may be issued under the Plan without shareholder
approval, then this option shall be void with respect to such excess shares, unless shareholder approval of an amendment sufficiently
increasing the number of shares of Common Stock issuable under the Plan is obtained in accordance with the applicable provisions
of the Plan.

 

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(b)The inability of the Company to
obtain approval from any regulatory body having authority the Company deems necessary to the lawful issuance and sale of any Common
Stock pursuant to this option shall relieve the Company of any liability with respect to the nonissuance or sale of the Common
Stock as to which such approval shall not have been obtained. The Company shall use its best efforts to obtain all such approvals.

 

14.Notices. Any notice required
to be given or delivered to the Company under the terms of this Agreement shall be in writing and addressed to the Company in care
of the corporate secretary at its principal corporate offices. Any notice required to be given or delivered to Participant shall
be in writing and addressed to Participant at the address indicated below Participant’s signature line on the Grant Notice,
or at such other address as the Participant shall have furnished the Company in writing at least ten (10) days in advance of its
effective date. All notices shall be deemed to have been given or delivered upon personal delivery or forty-eight hours after deposit
in the U.S. mail, postage prepaid and properly addressed to the party to be notified.

 

15.Reserved.

 

16.Authority of Plan Administrator.
All decisions of the Plan Administrator with respect to any question or issue arising under the Plan or this Agreement shall be
conclusive and binding on all persons having an interest in this option.

 

17.Governing Law. The interpretation,
performance and enforcement of this Agreement shall be governed by the laws of the State of Delaware without resort to its choice
of law rules.

 

18.Additional Terms Applicable to
an Incentive Stock Option. In the event this option is designated an incentive stock option in the Grant Notice, the following
terms and conditions shall also apply to the grant:

 

(a)This option shall cease to qualify
for favorable tax treatment as an incentive stock option under the federal tax laws if (and to the extent) this option is exercised
for one or more Option Shares: (i) more than three (3) months after the date the Participant ceases to be an Employee for any reason
other than death or Permanent Disability or (ii) more than one (1) year after the date the Participant ceases to be an Employee
by reason of Permanent Disability.

 

(b)In the event this option is designated
as immediately exercisable in the Grant Notice, then except in the event of a Corporate Transaction, this option shall not become
exercisable in the calendar year in which granted if (and to the extent) the aggregate Fair Market Value (determined at the Grant
Date) of the Common Stock for which this option would otherwise first become exercisable in such calendar year, when added to the
aggregate Fair Market Value (determined as of the respective date or dates of grant) of the Common Stock for which one or more
other post-1986 incentive stock options granted to the Participant prior to the Grant Date (whether under the Plan or any other
option plan of the Company or any Parent or Subsidiary corporations) first become exercisable during the same calendar year, would
exceed one hundred thousand dollars ($100,000). To the extent the exercisability of this option is deferred by reason of the foregoing
limitation, the deferred portion first will become exercisable in the first calendar year or years thereafter in which the one
hundred thousand dollar ($100,000) limitation of this Section 18(b) would not be contravened.

 

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(c)In the event this option is designated
as an installment option in the Grant Notice, no installment under this option shall qualify for favorable tax treatment as an
incentive stock option under the federal tax laws if (and to the extent) the aggregate Fair Market Value (determined at the Grant
Date) of the Common Stock for which such installment first becomes exercisable hereunder, when added to the aggregate Fair Market
Value (determined as of the respective date or dates of grant) of the Common Stock for which this option or one or more other post-1986
incentive stock options granted to the Participant prior to the Grant Date (whether under the Plan or any other option plan of
the Company or any Parent or Subsidiary corporations) first become exercisable during the same calendar year, would exceed one
hundred thousand dollars ($100,000).

 

(d)Should the exercisability of this
option be accelerated upon a Corporate Transaction, then this option shall qualify for favorable tax treatment as an incentive
stock option under the federal tax laws only to the extent the aggregate Fair Market Value (determined at the Grant Date) of the
Common Stock for which this option first becomes exercisable in the calendar year in which the Corporate Transaction occurs does
not, when added to the aggregate Fair Market Value (determined as of the respective date or dates of grant) of the Common Stock
for which this option or one or more other post-1986 incentive stock options granted to the Participant prior to the Grant Date
(whether under the Plan or any other option plan of the Company or any Parent or Subsidiary corporations) first become exercisable
during the same calendar year, exceed one hundred thousand dollars ($100,000).

 

(e)To the extent this option should
fail to qualify as an incentive stock option under the federal tax laws, the Participant will recognize compensation income in
connection with the acquisition of one or more Option Shares hereunder, and the Participant must make appropriate arrangements
for the satisfaction of all federal, state or local income tax withholding requirements and federal Social Security employee tax
requirements applicable to such compensation income.

 

19.Additional Terms Applicable to
a Non-Statutory Stock Option. In the event this option is designated a non-statutory stock option in the Grant Notice, and
whether or not the Participant exercises the option through the Company, Participant hereby agrees to make appropriate arrangements
with the Company for the satisfaction of all federal, state or local income tax withholding requirements and federal Social Security
employee tax requirements applicable to the exercise of this option.

 

20.Definitions. The following
definitions shall apply to the respective capitalized terms used herein:

 

Board means the
Board of Directors of Nxt-Id, Inc.

 

Code means the Internal
Revenue Code of 1986, as amended.

 

Common Stock means
the Common Stock of Nxt-Id, Inc.

 

Company means Nxt-Id,
Inc., a Delaware corporation.

 

Corporate Transaction
means one or more of the following transactions: (i) a merger or consolidation in which the Company is not the surviving
entity, except for a transaction the principal purpose of which is to change the state of the Company’s incorporation, (ii)
the sale, transfer or other disposition of all or substantially all of the assets of the Company, (iii) any reverse merger
in which the Company is the surviving entity but in which fifty percent (50%) or more of the Company’s outstanding voting
stock is transferred to holders different from those who held the stock immediately prior to such merger, or (iv) the acquisition
of fifty percent (50%) or more of the Company’s outstanding voting stock by a person or group of related persons other than
the Company, a person that directly or indirectly controls, is controlled by or is under common control with the Company, or any
existing shareholder of the Company as of the date of the adoption of the Plan by such shareholders.

 

    	6

    	 	

    
 

Employee means an
individual who is in the employ of the Company or any Parent or Subsidiary corporation. An Participant shall be considered to be
an Employee for so long as such individual remains in the employ of the Company or any Parent or Subsidiary corporation, subject
to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance
or rendering consulting services.

 

Exercise Date shall
be date on which the executed Purchase Agreement for one or more Option Shares is delivered to the Company in accordance with Section
9 of this Agreement.

 

Expiration Date
means the date specified in the Grant Notice as the date on which the option shall terminate (unless sooner terminated under the
Plan or pursuant hereto).

 

Fair Market Value
of a share of Common Stock on any relevant date shall be determined in accordance with the following provisions:

 

(a)If the Common Stock is at the time
neither listed nor admitted to trading on any stock exchange nor traded in the over-the-counter market, or if the Plan Administrator
otherwise determines that the valuation provisions of subsections (b) and (c) below will not result in a true and accurate valuation
of the Common Stock, then the Fair Market Value shall be determined by the Plan Administrator after taking into account such factors
as the Plan Administrator shall deem appropriate under the circumstances.

 

(b)If the Common Stock is not at the
time listed or admitted to trading on any stock exchange but is traded in the over-the-counter market, the Fair Market Value shall
be the mean between the highest bid and the lowest asked prices (or if such information is available the closing selling price)
per share of Common Stock on the date in question in the over-the-counter market, as such prices are reported by the National Association
of Securities Dealers through its NASDAQ National Market System or any successor system. If there are no reported bid and asked
prices (or closing selling price) for the Common Stock on the date in question, then the mean between the highest bid and lowest
asked prices (or closing selling price) on the last preceding date for which such quotations exist shall be determinative of Fair
Market Value.

 

(c) If the Common Stock is at the time
listed or admitted to trading on any stock exchange, then the Fair Market Value shall be the closing selling price per share of
Common Stock on the date in question on the stock exchange determined by the Plan Administrator to be the primary market for the
Common Stock. If there is no reported sale of Common Stock on such exchange on the date in question, then the Fair Market Value
shall be the closing selling price on the exchange on the last preceding date for which such quotation exists.

 

Grant Date means
the date specified in the Grant Notice as the date on which the option was granted to the Participant under the Plan.

 

    	7

    	 	

    
 

Grant Notice means
the Notice of Grant of Stock Option which accompanies this Agreement.

 

Incentive Stock Option
means an incentive stock option which satisfies the requirements of Section 422 of the Code.

 

Non-Statutory Stock
Option means an option not intended to meet the statutory requirements prescribed for an Incentive Stock Option.

 

Option Shares means
the total number of shares of Common Stock indicated in the Grant Notice as purchasable under this option.

 

Participant means
the individual identified in the Grant Notice as the person to whom this option has been granted under the Plan.

 

Option Price means
the price indicated in the Grant Notice as the exercise price per share to be paid by the Participant for the exercise of this
option.

 

Parent corporation
means any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, provided each such
corporation in the unbroken chain (other than the Company) owns, at the time of the determination, stock possessing fifty percent
(50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

 

Permanently Disabled
or Permanent Disability means the inability of an individual to engage in any substantial gainful activity by reason of any medically-determinable
physical or mental impairment that can be expected to result in death or that has lasted or can be expected to last for a continuous
period of not less than 12 months.

 

Plan means the 2013
Long-term Incentive Plan.

 

Plan Administrator
means either the Board or a committee of one or more Board members, to the extent such committee may at the time be responsible
for plan administration.

 

Purchase Agreement
means the stock purchase agreement, in substantially the form of the exhibit to the Grant Notice, which is to be executed in connection
with the exercise of this option for one or more Option Shares.

 

Service means the
performance of services for the Company or any Parent or Subsidiary corporation by an individual in the capacity of an Employee,
a non-employee member of the board of directors or an independent consultant or advisor. Accordingly, the Participant shall be
deemed to remain in Service for so long as such individual renders services to the Company or any Parent or Subsidiary corporation
on a periodic basis in the capacity of an Employee, a non-employee member of the board of directors or an independent consultant
or advisor.

 

Subsidiary corporation
means each corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, provided each
such corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing
more than fifty percent (50%) of the total combined voting power of all classes of stock in one of the other corporations in such
chain.

 

    	8

    	 	

    
 

 

 

 

Date

  

 

	 	 	Nxt-Id, Inc.
	 	 	 
	 	 	 
	 	 	 
	 	 	By:
	 	 	Its:
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	Participant
	 	 	 
	 	Address:  	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	Participant’s Spouse
	 	 	 
	 	Address:  	 
	 	 	 

 

 

 

 

    	9

    	 	

    
 

NXT-ID, INC.

 

2013 Long Term Incentive Plan

 

RESTRICTED STOCK AWARD AGREEMENT

 

THIS AGREEMENT is made as of this __ day of ______,
by and between Nxt-ID, Inc., a Delaware corporation (the “Company”), and [______________] (“Participant”).

 

The Company, pursuant
to its 2013 Long Term Incentive Plan (the “Plan”), hereby grants the following stock
award to Participant, which award shall have the terms and conditions set forth in this Agreement:

 

		1.	Award

The Company, effective as of the date
of this Agreement, hereby grants to Participant a restricted stock award of [_____] shares (the “Shares”) of common
stock, par value $0.0001 per share, of the Company (the “Common Stock”), subject to the terms and conditions set forth
herein.

 

		2.	Vesting

Subject to the terms and conditions of
this Agreement, the Shares shall vest in Participant as follows: the Shares shall vest ratably over a three-year period, with
one-third of the Shares (------) vesting on December 31, 200X; one-third of the Shares (-----) vesting on December 31, 200Y, and
the balance or (-----) of the Shares vesting on December 31, 200Z, if, and only if, Participant remains continuously employed by
the Company from the date hereof until each respective vesting date, and subject to the forfeiture provisions below.  Vesting
of the Shares shall be accelerated to an earlier date only under the following conditions:

 

		(a)	in the event of a Change in Control of Company (as defined in the attached Exhibit A), and provided
that Participant remains continuously in the service of or employed the Company until the effective date of such Change in Control,
all unvested Shares granted under this Agreement shall become immediately vested on the effective date of the Change in Control;

 

		(b)	in the event that Participant’s employment by or service provision for the Company is terminated
because Participant becomes in the service of a new owner of any business of the Company pursuant to a Change in Control event,
and provided that Participant remains continuously employed by or in the service of the Company until the date of closing of the
Change in Control event, all unvested Shares granted under this Agreement shall become immediately vested as of the last date of
Participant’s service to or employment by the Company; or

 

		(c)	in the event that Participant’s service to the Company is involuntarily terminated by the Company
without cause within one year following a Change in Control Event, and provided that Participant remains continuously in the service
of the Company until the date of such involuntary termination, all unvested Shares granted under this Agreement shall become immediately
vested as of the last date of Participant’s employment with or service for the Company.

 

    	10

    	 

    
 

 

		(d)	in the event that the Participant’s employment with or service to
the Company terminates because of death or Disability or at the request of the Chief Executive Officer of the Company (other than
for Cause) or of a U.S. government agency, all the Shares issuable under this award will vest on such termination. Except to the
extent provided in the preceding sentence or unless specifically provided in this Agreement or in a side letter thereto, this award
will not vest upon the Participant’s retirement. On the Vesting Date (or promptly thereafter), the Company will deliver to
the Participant a certificate representing the Shares which have vested on such date. For purposes of this Agreement, the term
“Disability” shall be defined as any condition which shall render the Participant incapable of fulfilling his
or her obligations hereunder because of injury or physical or mental illness, and such incapacity shall exist or reasonably may
be expected, upon the competent medical opinion of a doctor chosen by the Company, for a period exceeding 60 consecutive days or
120 nonconsecutive days within a six-month period.

 

		3.	Restriction on Transfer

Until the Shares vest pursuant to Section
2 hereof, none of the Shares may be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of or encumbered,
and no attempt to transfer the Shares, whether voluntary or involuntary, by operation of law or otherwise, shall vest the transferee
with any interest or right in or with respect to the Shares.

 

		4.	Forfeiture 

If Participant ceases to be an employee
of or otherwise providing services to the Company or any majority-owned affiliate of the Company for any reason prior to the vesting
of the Shares pursuant to Section 2 hereof, Participant’s rights to the unvested portion of the Shares shall be immediately
and irrevocably forfeited.

 

		5.	Issuance and Custody of Certificate

		(a)	The Company shall cause to be issued one or more stock certificates, registered in the name of Participant,
evidencing the Shares.  Each such certificate (except for certificates in respect of shares to be sold for taxes) shall bear
the following legend:

 

“The
shares of common stock represented by this certificate are subject to forfeiture, and the transferability of this certificate and
the shares of stock represented hereby are subject to the restrictions, terms and conditions (including restrictions against transfer)
contained in the 2013 Long Term Incentive Plan (the “Plan”) and a Restricted Stock
Award Agreement (the “Agreement”) entered into between Nxt-ID, Inc. and the registered owner of such shares. 
Copies of the Plan and the Agreement are on file in the office of the Secretary of Nxt-ID, Inc., [_______________].”

 

		(b)	Participant shall execute stock powers relating to the Shares and deliver the same to the Company. 
Company shall use such stock powers only for the purpose of canceling any unvested Shares that are forfeited.

 

		(c)	Each certificate issued pursuant to Section 5(a) hereof, together with the stock powers relating to
the Shares, shall be deposited by the Company with the Secretary of the Company or a custodian designated by the Secretary. 
The Secretary or such custodian shall issue a receipt to Participant evidencing the certificate or certificates held which are
registered in the name of Participant.

 

		(d)	After any Shares vest pursuant to Section 2 hereof, the Company shall promptly cause to be issued
a certificate or certificates evidencing such vested Shares, free of the legend provided in section 5(a) hereof, and shall cause
such certificate or certificates to be delivered to Participant or Participant’s legal representatives, beneficiaries or
heirs.

 

    	11

    	 

    
 

 

		6.	Distributions and Adjustments

		(a)	If all or any portion of the Shares vest in Participant subsequent to any change in the number or
character of Shares of Common Stock (through stock dividend, recapitalization, stock split, reverse stock split, reorganization,
merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Shares of Common Stock or other securities of
the Company, issuance of warrants or other rights to purchase Shares of Common Stock or other securities of the Company or other
similar corporate transaction or event affecting the Shares such that an adjustment is determined by the Compensation Committee
of the Board of Directors (the “Committee”) to be appropriate in order to prevent dilution or enlargement of the interest
represented by the Shares), Participant shall then receive upon such vesting the number and type of securities or other consideration
which he would have received if the Shares had vested prior to the event changing the number or character of outstanding Shares
of Common Stock.

 

		(b)	Any additional Shares of Common Stock, any other securities of the Company and any other property
(except for cash dividends) distributed with respect to the Shares prior to the date the Shares vest shall be subject to the same
restrictions, terms and conditions as the Shares.  Any cash dividends payable with respect to the Shares shall be distributed
to Participant at the same time cash dividends are distributed to shareholders of the Company generally.

 

		(c)	Any additional Shares of Common Stock, any securities and any other property (except for cash dividends)
distributed with respect to the Shares prior to the date such Shares vest shall be promptly deposited with the Secretary or the
custodian designated by the Secretary to be held in custody in accordance with Section 5(c) hereof.

 

		7.	Taxes

		(a)	In order to provide the Company with the opportunity to claim the benefit of any income tax deduction
which may be available to it in connection with this restricted stock award, and in order to comply with all applicable federal
or state tax laws or regulations, the Company may take such action as it deems appropriate to assure that, if necessary, all applicable
federal or state income and social security taxes are withheld or collected from Participant, including through means of grossing
up the grant to so provide for the collection of such taxes.

 

		(b)	Participant may elect to satisfy his federal and state income tax withholding obligations in connection
with this restricted stock award by (i) having the Company withhold a portion of the shares of Common Stock otherwise to be delivered
upon vesting of this restricted stock award having a fair market value equal to the amount of federal and state income taxes required
to be withheld in connection with this restricted stock award, in accordance with the rules of the Committee, or (ii) delivering
to the Company shares of Common Stock other than the shares to be delivered upon vesting of this restricted stock award having
a fair market value equal to such taxes, in accordance with the rules of the Committee.

 

		(c)	Notwithstanding clause 7(b) above, if Participant elects, in accordance with Section 83(b)
of the Internal Revenue Code of 1986, as amended, to recognize ordinary income in the year of acquisition of the Shares, the Company
may require at the time of such election an additional payment for withholding tax purposes based on the fair market value of such
Shares as of the date of the acquisition of such Shares by Participant.

 

    	12

    	 

    
 

 

		8.	Confidentiality, Non-Competition And Non-Solicitation

 

In consideration of Participant’s
receipt of this award, Participant agrees as follows:

 

		(a)	Participant will hold in a fiduciary capacity for the benefit of the Company all information, knowledge
or data relating to the Company or any Subsidiaries and their respective businesses which the Company or any Subsidiaries consider
to be proprietary, trade secret or confidential that Participant obtains or have previously obtained during its service and that
is not public knowledge (other than as a result of Participant’s violation of this provision) (“Confidential Information”).
Participant will not directly or indirectly use any Confidential Information for any purpose not associated with the activities
of the Company or any Subsidiaries, or communicate, divulge or disseminate Confidential Information to any person or entity not
authorized by the Company or any Subsidiaries to receive it at any time during or after Participant’s service, except with
the prior written consent of the Company or as otherwise required by law or legal process.

 

		(b)	For a period of two years after the termination of Participant’s service, for any reason, voluntary
or involuntary, Participant will not, without the written consent of the Company, directly or indirectly, engage or hold an interest
in any company listed in Exhibit B, or any subsidiary or affiliate of such company (the “Competing Businesses”), or
directly or indirectly have any interest in, own, manage, operate, control, be connected with as a stockholder (other than as a
holder of less than five percent (5%) of any class of publicly traded securities of any such Competing Business).

 

		(c)	For a period of one year after the termination of Participant’s service, for any reason, Participant
will not, without the written consent of the Company, directly or indirectly solicit, entice, persuade or induce any person to
leave the employment of the Company or any Subsidiaries (other than persons employed in a clerical, non-professional or non-management
position).

 

		(d)	Participant understands and agrees that the restrictions set forth above, including, without limitation,
the duration, and the business scope of such restrictions, are reasonable and necessary to protect the legal interests of the Company.
Participant further agrees that the Company will be entitled to seek injunctive relief in the event of any actual or threatened
breach of such restrictions. In addition, Participant also agrees that in the event it is found by a court of law to have violated
the confidentiality provisions of this Agreement, that an adequate remedy will including, among other things, the immediate forfeit
of all shares (whether or not vested) and disgorgement of any profit associated with this grant. If any provision of this Agreement
is determined to be unenforceable by any court, then such provision will be modified or omitted only to the extent necessary to
make the remaining provisions of this Agreement enforceable.

 

		9.	Miscellaneous

		(a)	This Agreement is issued pursuant to the Plan and is subject to its terms.  Participant hereby
acknowledges receipt of a copy of the Plan.  The Plan is also available for inspection during business hours at the principal
office of the Company.

 

    	13

    	 

    
 

 

		(b)	This Agreement shall not confer on Participant any right with respect to continuance of service of
or employment by the Company or any of its subsidiaries.

 

		(c)	This award is governed by and subject to the terms and conditions of the Plan, which contain important
provisions of this award and form a part of this Agreement. Copies of the Plan are being provided to or have been provided to Participant,
along with a summary of the Plan. If there is any conflict between any provision of this Agreement and the Plan, this Agreement
will control, unless the provision is not permitted by the Plan, in which case the provision of the Plan will apply. Participant’s
rights and obligations under this Agreement are also governed by and are subject to applicable U.S. laws and foreign laws.

 

		(d)	This Agreement may be executed via facsimile and in counterparts, each of which shall be considered
an original, but all of which together shall constitute one and the same Agreement.

 

		(e)	This Agreement shall be governed by and construed under the internal laws of the State of Colorado,
without regard for conflicts of laws principles thereof.

 

IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be executed on the day and year first above written.

 

	 	NXT-ID, INC.
	 	 
	 	By: 	
	 	 	 
	 	Its:	Chairman
	 	 	 
	 	 	 
	 	PARTICIPANT
	 	 	 
	 	 	 

 

	 	 	 	 	 	 	 
	
        Grantee:
	 	
        No. of Shares:
	 	
        Grant Date:
	 	
        Vesting Date:

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

 

    	14

    	 

    
 

Exhibit A

 

Change In Control.

 

		(i)	For purposes of this Agreement and this Exhibit A, a Change in Control” of the Company shall
mean:

 

		(a)	a change in control of the Company of a nature that would be required to be reported in response to
Item 6(e) of Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), whether or not the Company is then subject to such reporting requirement;

 

		(b)	the public announcement (which, for purposes of this definition, shall include, without limitation,
a report filed pursuant to Section 13(d) of the Exchange Act) by the Company or any “person” (as such term is used
in Sections 13(d) and 14(d) of the Exchange Act) that such person has become the “beneficial owner” (as defined in
Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of securities of the Company representing 20% or more of
the combined voting power of the Company’s then outstanding securities, determined in accordance with Rule 13d-3, excluding,
however, any securities acquired directly from the Company (other than an acquisition by virtue of the exercise of a conversion
privilege unless the security being so converted was itself acquired directly from the Company); however, that for purposes of
this clause the term “person” shall not include the Company, any subsidiary of the Company or any employee benefit
plan of the Company or of any subsidiary of the Company or any entity holding shares of Common Stock organized, appointed or established
for, or pursuant to the terms of, any such plan;

 

		(c)	the Continuing Directors cease to constitute a majority of the Company’s Board of Directors;

 

		(d)	consummation of a reorganization, merger or consolidation of, or a sale or other disposition of all
or substantially all of the assets of, the Company (a “Business Combination”), in each case, unless, following such
Business Combination, (A) all or substantially all of the persons who were the beneficial owners of the Company’s outstanding
voting securities immediately prior to such Business Combination beneficially own voting securities of the corporation resulting
from such Business Combination having more than 50% of the combined voting power of the outstanding voting securities of such resulting
Corporation and (B) at least a majority of the members of the Board of Directors of the corporation resulting from such Business
Combination were Continuing Directors at the time of the action of the Board of Directors of the Company approving such Business
Combination;

 

		(e)	approval by the shareholders of the Company of a complete liquidation or dissolution of the Company;
or

 

		(f)	the majority of the Continuing Directors determine in their sole and absolute discretion that there
has been a change in control of the Company.

 

		(ii)	“Continuing Director” shall mean any person who is a member of the Board of Directors
of the Company, while such person is a member of the Board of Directors, who is not an Acquiring Person (as defined below) or an
Affiliate or Associate (as defined below) of an Acquiring Person, or a representative of an Acquiring Person or of any such Affiliate
or Associate, and who (x) was a member of the Board of Directors on the date of this Agreement as first written above or (y) subsequently
becomes a member of the Board of Directors, if such  person’s initial nomination for election or initial election to
the Board of Directors is recommended or approved by a majority of the Continuing Directors.  For purposes of this subparagraph
(ii), “Acquiring Person” shall mean any “person” (as such term is used in Sections 13(d) and 14(d) of the
Exchange Act) who or which, together with all Affiliates and Associates of such person, is the “beneficial owner” (as
defined in Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of securities of the Company representing 20%
or more of the combined voting power of the Company’s then outstanding securities, but shall not include the Company, any
subsidiary of the Company or any employee benefit plan of the Company or of any subsidiary of the Company or any entity holding
shares of Common Stock organized, appointed or established for, or pursuant to the terms of, any such plan; and “Affiliate”
and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 promulgated under the Exchange
Act.

 

    	15

    	 

    
 

 

Exhibit B

 

Prohibited Activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	16

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