Document:

Exhibit 10.1

 

 

October
12, 2020

 

 

 

Mr. Patrick White

 

 

Re:     Amendment of
Employment Agreement

 

Dear Patrick:

 

This letter agreement
modifies your Employment Agreement, dated August 15, 2017, as amended on August 13, 2019 and May 19, 2020 (the “Agreement”).
In consideration of the mutual promises contained in this letter agreement, VerifyMe, Inc. (“VRME”) and you agree as
follows:

 

1.       The
annual Base Salary shall be increased from $200,000 to $280,000 with immediate effect; and

 

2.       Section
2(a) of the Agreement, shall be amended by adding a new sentence to the end of the existing language as follows:

 

“The Term shall be automatically
extended for a period of not less than 18 months from and after the occurrence of a Change of Control.”; and

 

3.       Section
6(c)(3) of the Agreement, shall be amended and restated in its entirety as follows:

 

“(3)     In the event of a Change
of Control during the Term, the Executive, upon termination of employment or change in title as outlined in Section 6(c)(1), shall
be entitled to receive each of the provisions of Section 6(c)(2)(A) – (F) above except the Severance Amount shall equal
18 months of the then Base Salary and the benefits under Section 6(c)(2)(F) shall continue for an 18 month period provided that
such benefits are exempt from Section 409A of the Code by reason of Treasury Regulation 1.409A-1(a)(5) or otherwise. In the event
all or a portion of the benefits under Section 6(c)(2)(F) are subject to 409A of the Code, the Executive shall not be entitled
to the benefits that are subject to Section 409A of the Code subsequent to the “applicable 2 1⁄2 month period”
(as such term is defined under Treasury Regulation Section 1.409A-1(b)(4)(i)(A)). In the event of Executive’s death within
12 months following a Change of Control, all payments (in addition and without duplication to payments under subparagraph (a)
of this Section) that would have been due for Base Salary under this Agreement through the 18-month anniversary of such Change
of Control shall be paid to his surviving spouse, and in the absence of a surviving spouse to his estate, promptly in a lump sum
upon the Executive's death. The Executive shall receive 100% of the existing Target Bonus, if any, for that fiscal year when the
Change of Control occurs.”

 

Clinton
Square, 75 S. Clinton Ave, Suite 510 | Rochester, NY 14604

Phone:
585-736-9400 | www.verifyme.com
OTCQB:VRME

    	 		 

    	 

    

 

Mr. Patrick
White

October 12
, 2020

Page 2

 

In all other respects,
the Agreement is ratified and confirmed.

 

	 	Sincerely yours,	 
	 	 	 
	 	VerifyMe, Inc.	 
	 	 	 
	 	/s/ Norman Gardner 	 
	 	By:	Norman Gardner	 
	 	 	Chairman	 

I
hereby agree to the foregoing:

 

	/s/ Patrick White 	 
	Patrick White	 

 

 

Clinton
Square, 75 S. Clinton Ave, Suite 510 | Rochester, NY 14604

Phone:
585-736-9400 | www.verifyme.com
OTCQB:VRMEExhibit 10.2

 

 

 

October 12, 2020

 

 

 

Mr. Norman Gardner

 

 

Re:Amendment of
Consulting Agreement

 

Dear Norman:

 

This letter agreement
modifies your Consulting Agreement, dated June 29, 2017, as amended on May 19, 2020 (the “Agreement”). In consideration
of the mutual promises contained in this letter agreement, VerifyMe, Inc. (“VRME”) and you agree as follows:

 

1.       Section
2(a) of the Agreement shall be amended by adding a new sentence to the end of the existing language as follows:

 

“The
Term shall be automatically extended for a period of not less than 18 months from and after the occurrence of a Change of Control.”;

 

2.       The
monthly fee provided for in Section 4(a) of the Agreement shall be increased from $12,500 to $14,583.33 representing an annual
aggregate fee of $175,000; and

 

3.       Section
5(c)(3) of the Agreement, shall be amended and restated in its entirety as follows:

 

“In the event of a Change of Control during the Term
and if the Company or the Consultant terminates this Agreement within one year of the Change of Control, Consultant shall be entitled
to receive each of the provisions of Section 6(c)(2)(A) – (D) above except the Severance Amount shall equal 18 months of
consulting fees and the benefits under Section 6(c)(2)(D) shall continue for an 18 month period provided that such benefits are
exempt from Section 409A of the Code by reason of Treasury Regulation 1.409A-1(a)(5) or otherwise.  In the event all or a
portion of the benefits under Section 6(c)(2) (D) are subject to 409A of the Code, the Consultant shall not be entitled to the
benefits that are subject to Section 409A of the Code subsequent to the “applicable 2 1⁄2 month period” (as such
term is defined under Treasury Regulation Section 1.409A-1(b)(4)(i)(A)).  In the event of Consultant’s death within
12 months following a Change of Control, all payments (in addition and without duplication to payments under subparagraph (a) of
this Section) that would have been due under this Agreement for consulting fees through the 18-month anniversary of such Change
of Control shall be paid to his surviving spouse, and in the absence of a surviving spouse to his estate, promptly in a lump sum
upon the Consultant's death.”

 

 

Clinton Square, 75 S. Clinton
Ave, Suite 510 | Rochester, NY 14604

Phone:
585-736-9400 | www.verifyme.com OTCQB:VRME

 

    	 	 	 

    	 

    

  

Mr. Norman Gardner

October 12, 2020

Page 2

 

 

In all other respects,
the Agreement is ratified and confirmed.

 

	 	Sincerely yours, 	 
	 	 	 	 
	 	VerifyMe, Inc.	 
	 	 	 	 
	 	/s/ 	Patrick White	 
	 	By:	Patrick White 	 
	 	 	Chief Executive Officer	 

 

 

I hereby agree to the foregoing:

 

 

	/s/ Norman Gardner 	 
	Norman Gardner	 

 

 

Clinton Square, 75 S. Clinton
Ave, Suite 510 | Rochester, NY 14604

Phone:
585-736-9400 | www.verifyme.com OTCQB:VRMEExhibit 10.4

 

 

RESTRICTED STOCK AGREEMENT

 

(under the 2013 Omnibus Equity Compensation
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 2013 Omnibus Equity Compensation 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;

 

    	 	1	 

    	 

    

 

(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.

 

    	 	2	 

    	 

    

 

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. Notwithstanding the terms
of the Plan, for purposes of this Agreement, “Change of Control” shall have the meaning given such term in the
Company’s 2017 Equity Incentive Plan.

 

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: [***]

 

    	 	3	 

    	 

    

 

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.]

 

    	 	4	 

    	 

    

 

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: 

 

 

5

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