Document:

Exhibit 10.5

 

 

RESTRICTED STOCK AGREEMENT

 

(under the 2017 Equity Incentive Plan)

 

 

This Restricted Stock
Agreement (this “Agreement”) entered into as of [________], 2020 (“Grant Date”) between VerifyMe,
Inc. (the “Company”), and [________] (the “Recipient”).

 

WHEREAS, by action
taken by the Board of Directors (the “Board”) it adopted the 2017 Equity Incentive Plan, as amended (the “Plan”);

 

WHEREAS, it has been
determined that in order to enhance the ability of the Company to attract and retain qualified employees, consultants, officers
and directors, the Company may grant employees, consultants, officers and directors restricted shares of Common Stock pursuant
to awards under the Plan.

 

WHEREAS, the Company
is of the opinion that its interests will be advanced by granting the Recipient an award of Restricted Stock, thus providing the
Recipient with a more direct stake in the welfare of the Company and creating a closer relationship between the Recipient’s
interests and those of the Company.

 

WHEREAS, the Board
intends to grant the Recipient an award of Restricted Stock under the Plan; and

 

NOW, THEREFORE, in
consideration of services rendered to the Company by the Recipient and other good and valuable consideration, receipt of which
is acknowledged, the Company hereby grants this award to the Recipient on the terms expressed herein.

 

1.            Award. 
As of the Grant Date, the Recipient has been granted [________] restricted shares of restricted common stock (the “Restricted
Stock”) under the Plan in exchange for the Recipient’s continued service as a director of the Company; on the terms
and conditions set forth in the Plan and this Agreement.  All certificates issued shall contain an appropriate restrictive
legend. The Recipient acknowledges receipt of a copy of the Plan. Capitalized terms used but not defined in this Agreement will
have the meaning ascribed to them in the Plan.

 

2.            Vesting. 
The Restricted Stock shall vest in full one-year from the Grant Date, subject to continued services as a director of the Company
through such date.  The Restricted Stock shall be unregistered unless the Company voluntarily files a registration statement
covering such shares with the Securities and Exchange Commission.

 

3.            Forfeiture. 
Notwithstanding any other provision of this Agreement, at the option of the Board or the Compensation Committee, all shares of
Restricted Stock subject to this Agreement shall be immediately forfeited in the event that the Recipient:

 

(a)       purchases
or sells securities of the Company without written authorization in accordance with the Company’s inside information guidelines
then in effect;

 

    	 	 	 

    	 

    

 

(b)       breaches
any duty of confidentiality including that required by the Company’s inside information guidelines then in effect;

 

(c)       competes
with the Company;

 

(d)       recruits
Company personnel after ceasing to be a director;

 

(e)       acts
in a disloyal manner to the Company; or

 

(f)        has
acted against the interests of the Company.

 

Notwithstanding any other provision of
this Agreement, if the Recipient ceases to act in the capacity as described in Section 3 prior to the date that all of the shares
of Restricted Stock are vested, the Recipient shall automatically forfeit to the Company all unvested shares.  Shares that
are not vested are referred to herein as Unvested Shares.

 

4.            Profits
on the Sale of Certain Shares; Cancellation.  If any of the events specified in Section 3 of this Agreement occur within
one year from the last day as service as a director (the “Termination Date”), all profits earned from the Recipient’s
sale of the Company’s Restricted Stock during the two-year period commencing one year prior to the Termination Date shall
be forfeited and forthwith paid by the Recipient to the Company.  Further, in such event, the Company may at its option, cancel
the shares of Restricted Stock granted under this Agreement.  The Company’s rights under this Section 4 do not lapse
one year from the Termination Date but are a contract right subject to any appropriate statutory limitation period.

 

5.            Refusal
to Transfer.  The Company shall not be required to transfer on its books any of the Restricted Stock that have been sold
or otherwise transferred in violation of any of the provisions of this Agreement or to treat as owner of such Restricted Stock
or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such Restricted Stock shall have been
so transferred.

 

6.            Tax
Withholding.  The Recipient acknowledges and agrees that the Company may require the Recipient to pay, or may withhold
from sums owed by the Company to the Recipient, any amount that the Company, in its sole discretion, deems necessary to comply
with any federal, state or local withholding requirements for income tax purposes.  The failure to pay the required taxes
to the Company within 10 days after written request shall permit the Company to decline to remove the restrictive legend on the
stock certificate.

 

7.            Section
83(b) Election.  The Recipient hereby acknowledges that he or she may file a Section 83(b) election with the Internal
Revenue Service within 30 days of the Grant Date, electing thereby to be taxed on the fair market value of the Restricted Stock
as of the Grant Date. Absent such an election, ordinary income will be measured and recognized by the Recipient as the shares vest.
If the Recipient makes a Section 83(b) election and later forfeits any unvested Restricted Stock upon termination of service to
the Company, the Recipient could suffer adverse tax consequences. The Recipient is strongly encouraged to seek the advice of his
or her own tax consultants in connection with the grant of the Restricted Stock and the advisability of filing of an election under
Section 83(b) of the Internal Revenue Code.

 

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The Recipient acknowledges that it is
his or her sole responsibility and not the Company’s responsibility to file the election under Section 83(b), even if 
the Recipient requests the Company or its representative to make this filing on the recipient’s behalf.

 

8.        No
Guarantee of Continued Service.  The Recipient acknowledges and agrees that the Restricted Stock shall vest only through
continued service to the Company as a director or, through a Change of Control of the Company. The Recipient further acknowledges
and agrees that neither this Agreement nor the vesting schedule set forth herein constitute an express or implied promise of continued
service as a director of the Company and shall not interfere with the Company’s shareholders’ or the Recipient’s
right to terminate the Recipient’s relationship with the Company at any time, with or without cause. In the event of a Change
of Control, all Unvested Shares will immediately vest as of one minute prior to the Change of Control.

 

9.       Parties
Bound by Plan. The Plan is hereby incorporated into this Agreement by reference. The Plan and each determination, interpretation
or other action made or taken pursuant to the provisions of the Plan shall be final and shall be binding and conclusive for all
purposes on the Company and the Recipient and the Recipient’s respective successors in interest.

 

10.       Severability. 
If any term or condition of this Agreement shall be invalid or unenforceable to any extent or in any application, then the remainder
of this Agreement, and such term or condition except to such extent or in such application, shall not be affected hereby and each
and every term and condition of this Agreement shall be valid and enforced to the fullest extent and in the broadest application
permitted by law.

 

11.       Benefit.
This Agreement shall be binding upon and inure to the benefit of the parties hereto and their legal representatives, successors
and assigns.

 

12.       Notices
and Addresses.  All notices, offers, acceptance and any other acts under this  Agreement (except payment) shall be
in writing, and shall be sufficiently given if delivered to the addressees in person, by FedEx or similar overnight next business
day delivery, or by email delivery followed by overnight next day delivery, as follows:

 

	The Recipient:          	 	To the Recipient at the address on the signature page of this Agreement.
	 	 	 
	The Company:	 	
        VerifyMe, Inc.

        Clinton Square

        75 S. Clinton Ave., Suite 510

        Rochester, NY 14604

        Attention: Patrick White

        Email: [***]

	 	 	 
	with a copy to:	 	
        Harter Secrest & Emery LLP

        1600 Bausch & Lomb Place

        Rochester, NY 14604

        Attention: Alex R. McClean, Esq.

        Email: [***]

 

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or to such other address as either of them,
by notice to the other may designate from time to time. Time shall be counted to, or from, as the case may be, the delivery in
person or by mailing.

 

13.           Attorney’s
Fees.  In the event that there is any controversy or claim arising out of or relating to this Agreement, or to the interpretation,
breach or enforcement thereof, and any action or proceeding is commenced to enforce the provisions of this Agreement, the prevailing
party shall be entitled to a reasonable attorney’s fee, costs and expenses.

 

14.           Governing
Law.  This Agreement and any dispute, disagreement, or issue of construction or interpretation arising hereunder whether
relating to its execution, its validity, the obligations provided herein or performance shall be governed or interpreted according
to the laws of the State of Nevada without regard to choice of law considerations.

 

15.           Entire
Agreement. This Agreement (including the Plan) constitutes the entire Agreement between the parties and supersedes all prior
oral and written agreements between the parties hereto with respect to the subject matter hereof. Neither this Agreement nor any
provision hereof may be changed, waived, discharged or terminated orally, except by a statement in writing signed by the party
or parties against whom enforcement or the change, waiver discharge or termination is sought.

 

16.          Counterparts. 
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together
shall constitute one and the same instrument. The execution of this Agreement may be by actual, PDF, electronic or facsimile signature.

 

17.           Headings. 
Section headings herein have been inserted for reference only and shall not be deemed to limit or otherwise affect, in any matter,
or be deemed to interpret in whole or in part any of the terms or provisions of this Agreement.

 

18.           Stop-Transfer
Orders.

 

(a)       The
Recipient agrees that, in order to ensure compliance with the restrictions set forth in the Plan and this Agreement, the Company
may issue appropriate “stop transfer” instructions to its duly authorized transfer agent, if any, and that, if the
Company transfers its own securities, it may make appropriate notations to the same effect in its own records.

 

(b)       The
Company shall not be required (i) to transfer on its books any shares of Common Stock that have been sold or otherwise transferred
in violation of any of the provisions of the Plan or the Agreement or (ii) to treat the owner of such shares of Common Stock or
to accord the right to vote or pay dividends to any purchaser or other transferee to whom such shares of Common Stock shall have
been so transferred. 

 

[Signature Page To Follow.]

 

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IN WITNESS WHEREOF,
the undersigned have caused this Agreement to be duly executed and delivered as of the date aforesaid.  

 

	 	VERIFYME, INC.
	 	 	 
	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:  	 
	 	 	 
	 	 	 
	 	RECIPIENT
	 	 	 
	 	 	 
	 	By:	 
	 	 	 Name: 	 
	 	 	 
	 	Address of the Recipient:
	 	 	 
	 	 
	 	 
	 	 
	 	Email address: 

 

 

 

5Exhibit 10.6

 

VERIFYME, INC.

2020 EQUITY INCENTIVE PLAN

 

RESTRICTED STOCK UNIT AWARD AGREEMENT

 

This Restricted Stock
Unit Award Agreement (this “Award Agreement”) is made and entered into as of [________] (the “Date
of Grant”), by and between VerifyMe, Inc. (the “Company”) and [________] (the “Participant”).
Capitalized terms not defined in this Award Agreement shall have the respective meanings given such terms by the VerifyMe, Inc.
2020 Equity Incentive Plan (the “Plan”).

 

1.       Award.
The Company hereby grants to the Participant an Award (the “Award”) of [________] Restricted Stock Units (the
“RSUs”) subject to the provisions of the Plan and to the terms and conditions of this Award Agreement.

 

2.       Vesting
and Payment. Subject to the provisions of the Plan and this Award Agreement, the RSUs are fully vested on the Date of Grant
(the “Vesting Date”). Each vested RSU represents the right to receive one share of Common Stock, which, less
the number of shares of Common Stock withheld to satisfy tax withholding pursuant to Paragraph 4 below, if any, will be issued
to the Participant as soon as practicable following the Vesting Date, but no later than 90 days thereafter.

 

3.       Stockholder
Rights. The Participant shall not be entitled, prior to the conversion of the RSUs into the right to receive shares of
Common Stock and the issuance of such shares to the Participant, to any rights as a stockholder with respect to such shares of
Common Stock, including the right to vote, sell, pledge, transfer or otherwise dispose of the shares.

 

4.       Withholding
of Taxes. The Company and its Affiliates shall have the right to deduct shares of Common Stock that would otherwise be
distributed pursuant to this Award Agreement from any payment made under this Award Agreement in satisfaction of the federal, state,
local or foreign income or other taxes required by law to be withheld with respect to such payment. Shares of Common Stock tendered
as payment of required tax withholding shall be valued at the fair market value of the Company’s Common Stock on the date
such tax withholding obligation arises. It shall be a condition to the obligation of the Company to issue shares of Common Stock
or other property, or any combination thereof, upon payment of the Award, that the Participant pay to the Company or an Affiliate,
upon its demand, such amount as may be requested by the Company or the Affiliate for the purpose of satisfying any liability to
withhold federal, state, local or foreign income or other taxes. If the amount requested is not paid, the Company may refuse to
issue or pay shares of Common Stock or other property, or any combination thereof.

 

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5.       Miscellaneous.

 

(a)       Compliance
with Laws. If the Company, in its sole discretion, determines that the listing upon any securities exchange or registration
or qualification under any federal, state or local law or any foreign law of any shares to be issued pursuant to an Award is necessary
or desirable, issuance of such shares shall not be made until such listing, registration or qualification shall have been completed.

 

(b)       Incorporation
of Plan. The RSUs are subject to the Plan and any interpretations by the Committee under the Plan, which are hereby incorporated
into this Award Agreement by reference and made a part hereof. By the execution of this Award Agreement, the Participant acknowledges
that the Plan document and the Plan prospectus, as in effect on the date of this Agreement, have been made available to the Participant
for review.

 

(c)       Administration,
Interpretation, Etc. Any action taken or decision made by the Company, the Board or the Committee arising out of or in connection
with the construction, administration, interpretation or effect of any provision of the Plan or this Award Agreement shall lie
within its sole and absolute discretion, as the case may be, and shall be final, conclusive and binding on the Participant and
all persons claiming under or through the Participant. By receipt of the RSUs or other benefit under the Plan, the Participant
and each person claiming under or through the Participant shall be conclusively deemed to have indicated acceptance and ratification
of, and consent to, any action taken under the Plan or this Award Agreement by the Company, the Board or the Committee.

 

(d)       Entire
Agreement. This Award Agreement constitutes the entire agreement of the parties hereto with respect to the matters contained
herein and constitutes the only agreement between the parties hereto with respect to the matters contained herein.

 

(e)       Notices.
Any notices necessary or required to be given under this Award Agreement shall be sufficiently given if in writing, and personally
delivered or mailed by registered or certified mail, return receipt requested, postage prepaid, to the last known addresses of
the parties hereto, or to such other address or addresses as any of the parties shall have specified in writing to the other party
hereto.

 

(f)       Choice
of Law. This Agreement and any dispute, disagreement, or issue of construction or interpretation arising hereunder whether
relating to its execution, its validity, the obligations provided herein or performance shall be governed by the substantive laws,
but not the choice of law rules, of the State of Nevada without regard to choice of law considerations.

 

6.       Counterparts;
Participant Acknowledgement. This Award Agreement may be executed in one or more counterparts, each of which shall be deemed
an original, and all of which shall constitute one and the same agreement. By the execution of this Award Agreement, the Participant
signifies that the Participant has fully read, completely understands, and voluntarily agrees with this Award Agreement and knowingly
and voluntarily accepts all of its terms and conditions.

 

*        *        *        *        *

 

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IN WITNESS WHEREOF,
the Company and the Participant have executed this Award Agreement as of the Date of Grant set forth above.

 

	 	VERIFYME, INC.
	 	 
	 	By:  	 
	 	Name:	 
	 	Title:	 
	 	 
	 	PARTICIPANT
	 	 
	 	 

 

 

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