Document:

Exhibit 10.2

 

EXECUTIVE RETENTION AGREEMENT

 

This Executive Retention Agreement
(the “Agreement”) is made and entered into as of June 14, 2021 by and between IPSIDY INC., a Delaware corporation
(the “Company”), and CECIL N. SMITH III (the “Executive”).

 

Recitals:

 

WHEREAS, the Executive is
a key employee of the Company who possesses valuable proprietary knowledge of the Company, its business and operations and the markets
in which the Company competes; and

 

WHEREAS, the Company and the
Executive desire to enter into this Agreement to encourage the Executive to continue to devote the Executive’s full attention and
dedication to the success of the Company, and to provide specified compensation and benefits to the Executive in the event of a Termination
Upon Change of Control or certain other terminations pursuant to the terms of this Agreement.

 

NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:

1.
PURPOSE AND TERM

 

The purpose of this Agreement
is to provide specified compensation and benefits to the Executive in the event of (i) a Termination Upon Change of Control or (ii) an
Involuntary Termination. Subject to the terms of any applicable written employment agreement between Company and the Executive (as to
which Executive acknowledges no other such agreement exists as of the date hereof), either the Executive or Company may terminate the
Executive’s employment at any time for any reason, with or without notice. The term of this Agreement shall be the period from the
date set forth above until Executive’s employment is terminated for any reason or this Agreement is terminated by mutual agreement
of the parties.

 

2.
TERMINATION GENERALLY

 

2.1
Termination of Employment Generally. In the event the Executive’s employment with the Company terminates, for any
reason whatsoever including death or disability the Executive shall be entitled to the benefits described in this Section 2.1.

 

2.1.1
Accrued Salary and Vacation. All salary and accrued vacation earned through the Termination
Date shall be paid to Executive on such Date.

 

2.1.2
Accrued Bonus Payment. The Executive shall receive a lump sum payment of any actual bonus
amount to the extent that all the conditions for payment of such bonus have been satisfied and any such bonus was earned and is unpaid
on the Termination Date.

 

2.1.3
Expense Reimbursement. Within ten (10) days following submission to the Company of proper
expense reports by the Executive, the Company shall reimburse the Executive for all expenses incurred by the Executive, consistent with
the Company’s expense reimbursement policy in effect prior to the incurring of each such expense, in connection with the business
of the Company prior to the Termination Date.

 

     

     

    

 

3.
TERMINATION UPON CHANGE OF CONTROL

 

3.1
Severance Payment. In the event of the Executive’s Termination Upon Change of Control, the Executive shall be entitled
to receive an amount equal to twelve (12) months of the Executive’s Base Salary and 100% of Executive’s target annual bonus
for the year in which the Termination Date occurs (or, if greater, the target annual bonus in effect immediately prior to the Change of
Control) which shall be paid in a lump sum payment within ten (10) days following the Termination Date; provided, however, that if Section
409A of the Code would otherwise apply to such cash severance payment, it instead shall be paid at such time as permitted by Section 409A
of the Code. The severance payment payable hereunder shall be reduced to the extent of the amount of any bonus payable to Executive upon
a Change of Control.

 

3.2
COBRA. The Company will reimburse Executive for the cost of continuation of health coverage for Executive and Executive’s
eligible dependents pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”)
until the earlier of (i) 12 months following the Termination Date, (ii) the date Executive is eligible for health coverage for Executive
and Executive’s eligible dependents from a new employer or (iii) the date Executive and Executive’s eligible dependents are
no longer eligible for COBRA; provided, however, if, at the time of the Termination Date, the Company determines that providing the COBRA
reimbursement in this paragraph would result in a violation of law or an excise tax to the Company, then the Company instead will pay
a lump sum payment equal to 150% of 12 months of Executive’s estimated COBRA premiums, less applicable withholdings, within 10 days
following the Termination Date.

 

3.3
Equity Compensation Acceleration. Upon the Executive’s Termination Upon Change of Control, the vesting and exercisability
of all then outstanding stock options and shares of restricted stock (or any other equity award, including, without limitation, stock
appreciation rights and restricted stock units) granted to the Executive under any Company Plans shall be accelerated as to 100% of the
shares subject to any such equity awards granted to the Executive.

 

3.4
Indemnification. In the event of the Executive’s Termination Upon Change of Control, (a) the Company shall continue
to indemnify the Executive against all claims related to actions arising prior to the termination of the Executive’s employment
to the fullest extent permitted by law, and (b) if the Executive was covered by the Company’s directors’ and officers’
insurance policy, or an equivalent thereto, (the “D&O Insurance Policy”) immediately prior to the Change
of Control, the Company or its Successor shall continue to provide coverage under a D&O Insurance Policy for not less than twenty-four
(24) months following the Executive’s Termination Upon Change of Control on substantially the same terms of the D&O Insurance
Policy in effect immediately prior to the Change of Control.

 

4.
INVOLUNTARY TERMINATION

 

4.1
Severance Payment. In the event of the Executive’s Involuntary Termination, the Executive shall be entitled to receive
an amount equal to twelve (12) months of the Executive’s Base Salary, which shall be paid according to the following schedule: (i)
a lump sum payment equal to one-fourth of such amount shall be payable within ten (10) days following the Termination Date, and (ii) one-fourth
of such amount shall be payable within ten (10) days of each of the three-month, six-month and nine-month anniversaries of the Termination
Date (and in each case no interest shall accrue on such amount); provided, however, that if Section 409A of the Code would otherwise apply
to such cash severance payment, it instead shall be paid at such time as permitted by Section 409A of the Code. Notwithstanding the foregoing,
if the Involuntary Termination occurs within the first twelve (12) months following the Effective Date, the amounts paid will instead
equal six (6) months of the Executive’s Base Salary.

 

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4.2
COBRA. The Company will reimburse Executive for the cost of continuation of health coverage for Executive and Executive’s
eligible dependents pursuant to COBRA until the earlier of (i) 12 months following the Termination Date, (ii) the date Executive
is eligible for health coverage for Executive and Executive’s eligible dependents from a new employer or (iii) the date Executive
and Executive’s eligible dependents are no longer eligible for COBRA; provided, however, if, at the time of the Termination Date,
the Company determines that providing the COBRA reimbursement in this paragraph would result in a violation of law or an excise tax to
the Company, then the Company instead will pay a lump sum payment equal to 150% of 12 months of Executive’s estimated COBRA premiums,
less applicable withholdings, within 10 days following the Termination Date.

 

4.3
Equity Compensation Exercise. Upon the Executive’s Involuntary Termination, the Exercise Period with respect to vested
Shares, under the Company Plans for the purposes of the Executive’s stock options granted under the Company Plans shall be extended
so as to expire two (2) years from the date of Involuntary Termination or the remaining term of the relevant equity award, whichever is
the lesser. All unvested Shares under any such grants or other equity awards shall lapse and no longer be exercisable as of the date of
Involuntary Termination.

 

4.4
Indemnification. In the event of the Executive’s Involuntary Termination, (a) the Company shall continue to indemnify
the Executive against all claims related to actions arising prior to the Termination Date to the fullest extent permitted by law, and
(b) if the Executive was covered by the D&O Insurance Policy immediately prior to the Termination Date, the Company shall continue
to provide coverage under a D&O Insurance Policy for not less than twenty-four (24) months following the Executive’s Involuntary
Termination on substantially the same terms of the D&O Insurance Policy in effect immediately prior to the Termination Date.

 

5.
FEDERAL EXCISE TAX UNDER SECTION 280G

 

5.1
Excise Tax. If (a) any amounts payable to the Executive under this Agreement or otherwise are characterized as excess parachute
payments pursuant to Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), and (b) the
Executive thereby would be subject to any United States federal excise tax due to that characterization, then such amounts will either
be (i) delivered in full, or (ii) delivered to such lesser extent which would result in no portion of such amounts being subject
to excise tax pursuant to Section 4999 of the Code, whichever of the foregoing amounts, taking into account the applicable federal, state
and local income taxes and the excise tax imposed by Code Section 4999, results in Executive’s receipt on an after-tax basis, of
the greatest amounts, notwithstanding that all or some portion of such amounts may be taxable under Code Section 4999. If a reduction
in the amounts constituting “parachute payments” is necessary so that no portion of such amounts are subject to the excise
tax under Code Section 4999, the reduction will occur in the following order: (i) reduction of the cash severance payments, which
will occur in reverse chronological order such that the cash payment owed on the latest date following the occurrence of the event triggering
such excise tax will be the first cash payment to be reduce; (ii) cancellation of accelerated vesting of equity awards which will occur
in the reverse order of the date of grant for such stock awards (i.e., the vesting of the most recently granted stock awards will be reduced
first); and (iii) reduction of continued employee benefits, which will occur in reverse chronological order such that the benefit owed
on the latest date following the occurrence of the event triggering such excise tax will be the first benefit to be reduced. If two or
more equity awards are granted on the same date, each award will be reduced on a pro-rata basis. Notwithstanding the foregoing, no such
reduction or elimination shall apply to any non-qualified deferred compensation amounts (within the meaning of Section 409A of the Code)
to the extent such reduction or elimination would accelerate or defer the timing of such payment in a manner that does not comply with
Section 409A of the Code.

 

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5.2
Calculation by Independent Public Accountants. Unless the Company and the Executive otherwise agree in writing, any calculation
of the amount of any excess parachute payments payable by the Executive shall be made in writing by the Company’s independent public
accountants (the “Accountants”) whose conclusion shall be final and binding on the parties. For purposes of
making such calculations, the Accountants may rely on reasonable, good faith interpretations concerning the application of Sections 280G
and 4999 of the Code. The Company and the Executive shall furnish to the Accountants such information and documents as the Accountants
may reasonably request in order to make the required calculations. The Company shall bear all fees and expenses the Accountants may charge
in connection with these services, but the engagement of the Accountants for this purpose shall be pursuant to an agreement between the
Executive and the Accountants.

 

6.
DEFINITIONS

 

6.1
Capitalized Terms Defined. Capitalized terms used in this Agreement shall have the meanings set forth in this Section 4,
unless the context clearly requires a different meaning.

 

6.2
“Base Salary” means the greater of (a) if applicable, the monthly salary of the Executive in effect immediately
prior to the Change of Control, or (b) the monthly salary of the Executive in effect immediately prior to the Termination Date.

 

6.3
“Cause” means:

 

		(a)	the Executive willfully failed to follow the lawful written directions of
the Board of Directors of the Company (the “Board”) or Executive’s immediate superior; provided that no
termination for such Cause shall occur unless the Executive: (i) has been provided with notice, specifying such willful failure in reasonable
detail, of the Company’s intention to terminate the Executive for Cause; and (ii) has failed to cure or correct such willful failure
within thirty (30) days of receiving such notice; 

 

		(b)	the Executive engaged in gross misconduct, or gross incompetence which is
materially detrimental to the Company; provided that no termination for such Cause shall occur unless the Executive: (i) has been provided
with notice, specifying such gross misconduct or gross incompetence in reasonable detail, of the Company’s intention to terminate
the Executive for Cause; and (ii) has failed to cure or correct such gross misconduct within thirty (30) days of receiving such notice;

 

		(c)	the Executive willfully failed to comply in any material respect with the
Employee Invention Assignment & Confidentiality Agreement, the Company’s share dealing code, the Executive’s non-competition
agreement, or any other reasonable policies of the Company where non-compliance would be materially detrimental to the Company; provided
that no termination for such Cause shall occur unless the Executive: (i) has been provided with notice of the Company’s intention
to terminate the Executive for such Cause, and (ii) has failed to cure or correct such willful failure within thirty (30) days of receiving
such notice, provided that such notice and cure period requirements shall not apply in the event that such non-compliance is of a nature
that it is unable to be remedied; or

 

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		(d)	The Executive is convicted of a felony or crime involving moral turpitude
(excluding drunk driving unless combined with other aggravating circumstances or offenses) or commission of a fraud that the Company reasonably
believes would have a material adverse effect on the Company.

 

6.4
“Change of Control” means:

 

		(a)	any “person” (as such term is used in Sections 13(d) and 14(d)
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) becomes the “beneficial owner”
(as defined in Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of securities of the Company representing fifty
(50%) percent or more of (i) the outstanding shares of common stock of the Company, or (ii) the combined voting power of the Company’s
outstanding securities;

 

		(b)	the Company is party to a merger or consolidation, or series of related
transactions, which results in the voting securities of the Company outstanding immediately prior thereto failing to continue to represent
(either by remaining outstanding or by being converted into voting securities of the surviving entity), directly or indirectly, at least
fifty (50%) percent of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately
after such merger or consolidation;

 

		(c)	the sale or disposition of all or substantially all of the Company’s
assets, or consummation of any transaction, or series of related transactions, having similar effect (other than to a subsidiary of the
Company); 

 

		(d)	a change in the composition of the Board within any consecutive two-year
period, as a result of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” shall mean
directors who either (i) were directors of the Company as of the effective date of this Agreement, or (ii) are elected, or nominated for
election, to the Board with the affirmative votes of a least a majority of those directors whose election or nomination was not in connection
with an actual or threatened proxy contest related to the election of directors to the Company; or

 

		(e)	the dissolution or liquidation of the Company. 

 

6.5
“Company” shall mean IPSIDY INC. and, following a Change of Control, any Successor.

 

6.6
“Company Plans” shall mean the Company’s 2017 Incentive Stock Plan and any employee equity plan
that replaces or supplements such plan, as well as any grant of stock options, restricted stock, stock appreciation rights, stock award,
or stock purchase offer, which may be made to Executive outside of any such plan.

 

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6.7
“Involuntary Termination” means:

 

		(a)	any termination without Cause of the employment of the Executive by the
Company; or

 

		(b)	any resignation by Executive for Good Reason where such resignation occurs
within one hundred twenty (120) days following the occurrence of such Good Reason.

 

Notwithstanding the foregoing, the term “Involuntary
Termination” shall not include any termination of the employment of the Executive: (1) by the Company for Cause; (2) by the Company
as a result of the Permanent Disability of the Executive; (3) as a result of the death of the Executive; (4) as a result of the voluntary
termination of employment by the Executive for any reason other than Good Reason, or (5) that would qualify as a Termination Upon Change
of Control hereunder.

 

6.8
“Good Reason” means the occurrence of any of the following conditions, without the Executive’s
written consent:

 

		(a)	Any act, set of facts or omissions with respect to the Executive that would,
as a matter of applicable law, constitute a constructive termination of the Executive.

 

		(b)	The assignment to the Executive of a title, position, responsibilities or
duties that is not a “Substantive Functional Equivalent” to the title, position, responsibilities or duties which the Executive
had immediately prior to such assignment (including, as relevant, immediately prior to the public announcement of the Change of Control).

 

		(c)	A material reduction in the Executive’s Base Salary or, if applicable,
target bonus opportunity (subject to applicable performance requirements with respect to the actual amount of bonus compensation earned
similar to the applicable performance requirements currently in effect), and in the event of a Change of Control, as compared to Executive’s
Base Salary and target bonus opportunity in effect immediately prior to the public announcement of the Change of Control; provided, however,
that this clause (c) shall not apply in the event of a reduction in the Executive’s Base Salary or, if applicable, target bonus
opportunity as part of a Company-wide or executive team-wide cost-cutting measure or Company-wide or executive team-wide cutback as a
result of overall Company performance. 

 

		(d)	The failure of the Company (i) to continue to provide the Executive an opportunity
to participate in any benefit or compensation plans provided to employees who hold positions with the Company comparable to the Executive’s
position, (ii) to provide the Executive all other fringe benefits (or the equivalent) in effect for the benefit of any employee group
which includes any employee who hold a position with the Company comparable to the Executive’s position, where in the event of a
Change of Control, such comparison shall be made relative to the time immediately prior to the public announcement of such Change of Control);
or (iii) continue to provide director’s and officers’ insurance.

 

		(e)	A material breach of this Agreement by the Company, including, in the event
of a Change of Control, failure of the Company to obtain the consent of a Successor to perform all of the obligations of the Company under
this Agreement.

 

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The Executive must first give the Company an opportunity
to cure any of the foregoing within thirty (30) days following delivery to the Company of a written explanation specifying the specific
basis for Executive’s belief that Executive is entitled to terminate employment for Good Reason, and Executive terminates employment
with the Company not later than (30) days following the Company’s failure to cure.

 

6.9
“Permanent Disability” means that:

 

		(a)	the Executive has been incapacitated by bodily injury, illness or disease
so as to be prevented thereby from engaging in the performance of the Executive’s duties;

 

		(b)	such total incapacity shall have continued for a period of six consecutive
months; and

 

		(c)	such incapacity will, in the opinion of a qualified physician, be permanent
and continuous during the remainder of the Executive’s life.

 

6.10
“Substantive Functional Equivalent” means that the Executive’s position must:

 

		(a)	be in a substantive area of the Executive’s competence (e.g., finance
or executive management) and not materially different from the position occupied immediately prior;

 

		(b)	allow the Executive to serve in a role and perform duties functionally equivalent
to those performed immediately prior; and

 

		(c)	not otherwise constitute a material, adverse change in authority, title,
status, responsibilities or duties from those of the Executive immediately prior, causing the Executive to be of materially lesser rank
or responsibility, including requiring the Executive to report to a person other than the Board.

 

6.11
“Successor” means any successor in interest to, or assignee of, substantially all of the business and
assets of the Company.

 

6.12
“Termination Date” means the date of the termination of the Executive’s employment with the Company.

 

6.13
“Termination Upon Change of Control” means:

 

		(a)	any termination of the employment of the Executive by the Company without
Cause during the period commencing on or after the date that the Company first publicly announces a definitive agreement that results
in a Change of Control (even though still subject to approval by the Company’s stockholders and other conditions and contingencies,
but provided that the Change of Control actually occurs) and ending on the date which is twelve (12) months following the Change of Control;
or

 

		(b)	any resignation by Executive for Good Reason where (i) such Good Reason
occurs during the period commencing on or after the date that the Company first publicly announces a definitive agreement that results
in a Change of Control (even though still subject to approval by the Company’s stockholders and other conditions and contingencies,
but provided that the Change of Control actually occurs) and ending on the date which is twelve (12) months following the Change of Control,
and (ii) such resignation occurs at or after such Change in Control and in any event within twelve (12) months following the expiration
of any Company cure period.

 

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Notwithstanding the foregoing, the term “Termination
Upon Change of Control” shall not include any termination of the employment of the Executive: (1) by the Company for Cause; (2)
by the Company as a result of the Permanent Disability of the Executive; (3) as a result of the death of the Executive; or (4) as
a result of the voluntary termination of employment by the Executive for any reason other than Good Reason.

 

7.
EXCLUSIVE REMEDY

 

7.1
No Other Benefits Payable. The Executive shall be entitled to no other termination, severance or change of control compensation,
benefits, or other payments from the Company as a result of any termination with respect to which the payments and benefits described
in Section 2 have been provided to the Executive, except as expressly set forth in this Agreement.

 

7.2
No Limitation of Regular Benefit Plans. Except as may be provided elsewhere in this Agreement, this Agreement is not intended
to and shall not affect, limit or terminate any plans, programs or arrangements of the Company that are regularly made available to a
significant number of employees or officers of the Company, including, without limitation, the Company’s stock option plans.

 

7.3
Release of Claims. The payment of the benefits described in Sections 3 and 4 of this Agreement is conditioned upon the delivery
by the Executive to the Company of a signed and effective general release of claims as provided by the Company in the form attached hereto
as Exhibit 1; provided, however, that the Executive shall not be required to release any rights the Executive may have to be indemnified
by the Company or as otherwise provided under this Agreement.

 

7.4
Noncumulation of Benefits. The Executive may not cumulate cash severance payments, stock option vesting and exercisability
and restricted stock vesting under this Agreement, any other written agreement with the Company and/or another plan or policy of the Company.
If the Executive has any other binding written agreement with the Company which provides that, upon a Change of Control or Termination
Upon a Change of Control or Involuntary Termination, the Executive shall receive termination, severance or similar benefits, then no benefits
shall be received by Executive under this Agreement unless, prior to payment or receipt of benefits under this Agreement, the Executive
waives Executive’s rights to all such other benefits, in which case this Agreement shall supersede any such written agreement with
respect to such other benefits.

 

8.
ARBITRATION

 

8.1
Disputes Subject to Arbitration. Any claim, dispute or controversy arising out of this Agreement (other than claims relating
to misuse or misappropriation of the intellectual property of the Company), the interpretation, validity or enforceability of this Agreement
or the alleged breach thereof shall be submitted by the parties to binding arbitration by a sole arbitrator under the rules of the American
Arbitration Association; provided, however, that (a) the arbitrator shall have no authority to make any ruling or judgment that would
confer any rights with respect to the trade secrets, confidential and proprietary information or other intellectual property of the Company
upon the Executive or any third party; and (b) this arbitration provision shall not preclude the Company from seeking legal and equitable
relief from any court having jurisdiction with respect to any disputes or claims relating to or arising out of the misuse or misappropriation
of the Company’s intellectual property. Judgment may be entered on the award of the arbitrator in any court having jurisdiction.

 

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8.2
Costs of Arbitration. All costs of arbitration, including reasonable attorney’s fees of the Executive, will be borne
by the Company, except that if the Executive initiates arbitration and the arbitrator finds the Executive’s claims to be frivolous
the Executive shall be responsible for his own costs and attorneys’ fees.

 

8.3
Site of Arbitration. The site of the arbitration proceeding shall be in Denver, Colorado.

 

9.
NOTICES

 

For purposes of this Agreement, notices and all
other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered or five
(5) business days after being mailed, return receipt requested, as follows: (a) if to the Company, attention: General Counsel, at the
Company’s offices at 670 Long Beach Boulevard, Long Beach, New York 11561 USA or legal@ipsidy.com and, (b) if to the Executive,
at the address indicated below or such other address specified by the Executive in writing to the Company. Either party may provide the
other with notices of change of address, which shall be effective upon receipt.

 

12. MISCELLANEOUS PROVISIONS

 

12.1 Heirs
and Representatives of the Executive; Successors and Assigns of the Company. This Agreement shall be binding upon and shall inure
to the benefit of and be enforceable by the Executive’s personal and legal representatives, executors, administrators, successors,
heirs, distributees, devises and legatees. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the
successors and assigns of the Company.

 

12.2 Amendment
and Waiver. No provision of this Agreement shall be modified, amended, waived or discharged unless the modification, amendment, waiver
or discharge is agreed to in writing, specifying such modification, amendment, waiver or discharge, and signed by the Executive and by
an authorized officer of the Company (other than the Executive). No waiver by either party of any breach of, or of compliance with, any
condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the
same condition or provision at another time.

 

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

 

12.4 Severability.
The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of
any other provision hereof, which shall remain in full force and effect.

 

12.5 Choice
of Law. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of
Colorado, without regard to where the Executive has his residence or principal office or where he performs his duties hereunder.

 

12.6 No
Duty to Mitigate. The Executive is not required to seek alternative employment following termination, and payments called for under
this Agreement will not be reduced by earnings from any other source.

 

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12.7. Section
409A of the Code. The intent of the parties is that payments and benefits under this Agreement comply with Section 409A of the Code
and the Treasury Regulations and guidance promulgated thereunder (“Section 409A”), to the extent subject thereto, and
accordingly, to the maximum extent permitted, this letter shall be interpreted and administered to be in compliance therewith. Notwithstanding
anything contained herein to the contrary, Executive shall not be considered to have terminated employment with the Company for purposes
of any provision in this Agreement providing for the payment of any amounts or benefits subject to Section 409A upon or following a termination
of employment until Executive would be considered to have incurred a “separation from service” from the Company within the
meaning of Section 409A and this Agreement shall be interpreted consistently therewith. Without limiting the foregoing, and notwithstanding
anything to the contrary contained herein, to the extent (a) any payments or benefits to which Executive becomes entitled under this Agreement,
or under any agreement or plan referenced herein, in connection with Executive’s termination of employment with the Company constitute
deferred compensation subject to Section 409A of the Code and (b) Executive is deemed at the time of such termination of employment to
be a “specified employee” under Section 409A of the Code, then such payments shall not be made or commence until the earliest
of (i) the expiration of the six (6)-month period measured from the date of Executive’s “separation from service” (as
such term is at the time defined in Treasury Regulations under Section 409A of the Code) from the Company; or (ii) the date of Executive’s
death following such separation from service; provided, however, that such deferral shall only be effected to the extent required to avoid
adverse tax treatment to Executive, including (without limitation) the additional twenty percent (20%) tax for which Executive would otherwise
be liable under Section 409A(a)(1)(B) of the Code in the absence of such deferral. Upon the expiration of the applicable deferral period,
any payments which would have otherwise been made during that period (whether in a single sum or in installments) in the absence of this
paragraph shall be paid to Executive or Executive’s beneficiary in one lump sum (without interest). Any termination of Executive’s
employment is intended to constitute a “separation from service” as such term is defined in Treasury Regulation Section 1.409A-1.
It is intended that each installment of the payments provided hereunder constitute separate and distinct “payments” for purposes
of Section 1.409A of the Code. It is further intended that payments hereunder satisfy, to the greatest extent possible, the exemption
from the application of Code Section 409A (and any state law of similar effect) provided under Treasury Regulation Section 1.409A-1(b)(4)
(as a “short-term deferral”). The Company makes no representation that any or all of the payments described or referenced
in this letter will be exempt from or comply with Section 409A and makes no undertaking to preclude Section 409A from applying to any
such payment, and Company’s only obligation is to comply with its obligations set forth herein.

 

12.8 Entire
Agreement. This Agreement represents the entire agreement and understanding between the parties as to the subject matter herein (whether
oral or written and whether express or implied). The Executive hereby acknowledges, represents and warrants that he has been individually
represented by counsel in negotiating and signing this agreement.

 

[SIGNATURE
PAGE FOLLOWS]

 

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In Witness
Whereof, each of the parties has executed this Agreement, in the case of the Company, by its duly authorized officer, as of the
day and year first above written.

 

	 	Executive
	 	 
	 	/s/
    Cecil Smith
	 	Cecil
    N. Smith III
	 	 
	 	1420
    S. Elizabeth Street
	 	Denver, Colorado 80210

 

	 	Ipsidy Inc.
	 	 	 
	 	By:	/s/ Phillip Kumnick
	 	Phillip L. Kumnick, CEOExhibit 10.3

 

	 	Phillip L. Kumnick

Chief Executive Officer

phillipkumnick@ipsidy.com

 

June 14, 2021

 

PRIVATE AND CONFIDENTIAL

Thomas Thimot

333 Johnson Ave,

Los Gatos, CA 95030

 

Re:   Employment Offer

 

Dear Tom:

 

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

 

Job Description

 

Your job responsibilities
will comprise managing and overseeing all operations and matters of the Group, in order to establish a successful business and manage
growth. In addition, you will undertake such functions as are customarily applicable to your position, as well as those that are reasonably
assigned to you by the Board. Upon commencement of your employment with the Company, you will be appointed as a member of the Board and
thereafter you will be nominated for election and re-election to the Board continuously during your employment as Chief Executive
Officer of the Company, subject to any required stockholder approval.

 

Compensation

 

Your compensation package
shall consist of the following:

 

(a) Initial
base salary of $325,000 per annum, which will be payable semi-monthly in arrears, and subject to all applicable deductions required by
law. Your salary will be reviewed by the Board from time to time and may thereafter be increased.

 

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

 

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

 

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

 

 

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

 

     

    	 	Thomas Thimot
Page 2
June 14, 2021

    

 

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

 

(d) At
the outset of your employment you will be provided with an initial grant of options to purchase 36,000,000 shares of Common Stock of $0.0001
par value in the Company (“Common Stock”), vesting subject to achievement of performance and service conditions as
set forth in the option grant attached hereto as Exhibit “A”. The exercise price of the options shall be equal to the
closing price of the Common Stock on the date of grant, the Exercise Period shall be 10 years and the other terms of the options shall
be as set forth in the aforementioned option grant. For the avoidance of doubt all references herein to shares of Common Stock are to
the shares prior to the planned reverse stock split and the share figures and exercise price shall be adjusted after such split, in accordance
with terms of the option grant agreement.

 

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

 

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

 

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

 

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

 

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

 

		2.	Location and Travel. You will work at your home office in the California Bay Area, but as part
of your duties you will be required to travel as necessary to perform your duties and responsibilities, including visiting Company’s
offices in the locations where they may exist from time to time.

 

		3.	Working Hours. You will be expected to devote your full time and attention to your employment,
to the extent necessary to carry out your duties hereunder. Because of the nature of your position, and as an exempt employee you will
be required to work outside of usual working hours, where the circumstances and business needs require it. You shall not engage or be
involved in any other business activity without the approval of the Board; provided, you may make investments, perform services
for non-profits and other charitable work, and serve on company board of directors, and perform advisory work for small businesses and
individuals outside of your scheduled business times at the Company with initial exceptions listed in Exhibit C attached hereto, if such
activities, in each case, (i) do not materially interfere with your performance of Company duties and responsibilities, including the
non-competition provisions of Section 9 and (ii) have been disclosed in advance to and pre-approved by the Board.

 

     

    	 	Thomas Thimot
Page 3
June 14, 2021

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

     

    	 	Thomas Thimot
Page 4
June 14, 2021

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

     

    	 	Thomas Thimot
Page 5
June 14, 2021

    

 

We look forward to a long and mutually beneficial
relationship.

 

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

 

AGREED & ACCEPTED:

 

	/s/ Tom Thimot	 	 
	THOMAS THIMOT	 	Dated:  June 14, 2021

 

     

    

    

 

EXHIBIT C

 

Permitted Activities

 

1. Lead Independent
Director of Quintech Inc.  – Rova Software

 

[END]

 

    C-1

    

    

 

EXHIBIT D

 

EMPLOYEE INVENTION ASSIGNMENT AND CONFIDENTIALITY
AGREEMENT

 

THIS EMPLOYEE INVENTION ASSIGNMENT AND CONFIDENTIALITY
AGREEMENT is entered into as of the 14th day of June, 2021 between I the undersigned THOMAS THIMOT residing at 333 Johnson
Ave, Los Gatos, CA 95030, and IPSIDY INC., a Delaware corporation with a place of business at 670 Long Beach Boulevard, Long Beach,
New York 11561 USA, (the “Company”).

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    D-1

    

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    D-2

    

    

 

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

 

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

 

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

 

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

 

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

 

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

 

SIGNED AS OF THIS 14th DAY OF JUNE 2021

 

THOMAS THIMOT

 

	/S/ Tom Thimot	 

 

 

 

D-3

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