Document:

Exhibit 10.4

 

GUARANTY

 

This GUARANTY, dated as of
March 21, 2022 (this “Guaranty”), is made by each of the undersigned (each a “Guarantor”, and collectively,
the “Guarantors”), in favor of Stephen Garchik in his capacity as collateral agent (in such capacity, the “Collateral
Agent” as hereinafter further defined) for the “Buyers” party to the Securities Purchase Agreement (each as defined
below).

 

W I T N E S S E T H :

 

WHEREAS, Ipsidy, Inc., a Delaware
corporation (the “Company”), and each party listed as a “Buyer” on the Schedule of Buyers attached to the
Securities Purchase Agreement (each a “Buyer” and collectively, the “Buyers”) are parties to the
Securities Purchase Agreement, pursuant to which the Company shall be required to sell, and the Buyers shall purchase or have the right
to purchase, the “Notes” issued pursuant thereto (as such Notes may be amended, modified, supplemented, extended, renewed,
restated or replaced from time to time in accordance with the terms thereof, collectively, the “Notes”);

 

WHEREAS, the Securities Purchase
Agreement requires that the Guarantors execute and deliver to the Collateral Agent, (i) a guaranty guaranteeing all of the obligations
of the Company under the Securities Purchase Agreement, the Notes and the other Transaction Documents (as defined below); and (ii) a
Security and Pledge Agreement, dated as of March 21, 2022, granting the Collateral Agent a lien on and security interest in substantially
all of their assets and properties (the “Security Agreement”); and

 

WHEREAS, each Guarantor has
determined that the execution, delivery and performance of this Guaranty directly benefits, and is in the best interest of, such Guarantor.

 

NOW, THEREFORE, in consideration
of the premises and the agreements herein and in order to induce the Buyers to perform under the Securities Purchase Agreement, each Guarantor
hereby agrees with each Buyer as follows:

 

SECTION 1. Definitions.
Reference is hereby made to the Securities Purchase Agreement and the Notes for a statement of the terms thereof. All terms used in
this Guaranty and the recitals hereto which are defined in the Securities Purchase Agreement or the Notes, and which are not
otherwise defined herein shall have the same meanings herein as set forth therein. In addition, the following terms when used in the
Guaranty shall have the meanings set forth below:

 

“Bankruptcy Code”
means Title 11 of the United States Code, 11 U.S.C §§ 101 et seq. (or other applicable bankruptcy, insolvency or similar
laws, or any successor statute thereto).

 

“Business Day”
means any day other than Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to
remain closed.

 

“Buyer”
or “Buyers” shall have the meaning set forth in the recitals hereto.

 

“Collateral”
shall have the meaning set forth in the Security Agreement.

 

“Collateral Agent”
shall have the meaning set forth in the recitals hereto.

 

“Company”
shall have the meaning set forth in the recitals hereto.

 

“Governmental Authority”
means any nation or government, any Federal, state, city, town, municipality, county, local, foreign or other political subdivision thereof
or thereto and any department, commission, board, bureau, instrumentality, agency or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to government.

 

“Guaranteed Obligations”
shall have the meaning set forth in Section 2 of this Guaranty.

 

     

     

    

 

“Guarantor”
or “Guarantors” shall have the meaning set forth in the recitals hereto.

 

“Indemnified Party”
shall have the meaning set forth in Section 13(a) of this Guaranty

 

“Insolvency Proceeding”
means any proceeding commenced by or against any Person under any provision of the Bankruptcy Code or under any other bankruptcy or insolvency
law, assignments for the benefit of creditors, formal or informal moratoria, compositions, or extensions generally with creditors, or
proceedings seeking reorganization, arrangement, or other similar relief.

 

“Notes”
shall have the meaning set forth in the recitals hereto.

 

“Obligations”
shall have the meaning set forth in Section 3 of the Security Agreement.

 

“Other Connection
Taxes” means, with respect to any Buyer or the Collateral Agent, Taxes imposed as a result of a present or former connection
between such Person and the jurisdiction imposing such Tax (other than connections arising from such Person having executed, delivered,
become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged
in any other transaction pursuant to or enforced any Transaction Document, or sold or assigned an interest in this Guaranty or any Transaction
Document).

 

“Other Taxes”
shall have the meaning set forth in Section 12(b) of this Guaranty.

 

“Paid in Full”
or “Payment in Full” means the indefeasible payment in full in cash (or, solely with respect to the Notes, the conversion
of all of the Notes pursuant to their respective terms) of all of the Guaranteed Obligations (other than contingent indemnification obligations
to the extent no claim giving rise thereto has been asserted).

 

“Person”
means an individual, corporation, limited liability company, partnership, association, joint-stock company, trust, unincorporated organization,
joint venture or other enterprise or entity or Governmental Authority.

 

“Securities Purchase
Agreement” shall have the meaning set forth in the recitals hereto.

 

“Security Agreement”
shall have the meaning set forth in the recitals hereto.

 

“Subsidiary”
shall have the meaning set forth in the Security Agreement.

 

“Taxes”
shall have the meaning set forth in Section 12(a) of this Guaranty.

 

“Transaction Party”
means the Company and each Guarantor, collectively, “Transaction Parties”.

 

Section
2. Guaranty.

 

(a) The Guarantors, jointly
and severally, hereby unconditionally and irrevocably, guaranty to the Collateral Agent, for the benefit of the Collateral Agent and the
Buyers, the punctual payment, as and when due and payable, by stated maturity or otherwise, of all Obligations, including, without limitation,
all interest, make-whole and other amounts that accrue after the commencement of any Insolvency Proceeding of the Company or any Guarantor,
whether or not the payment of such interest, make-whole and/or other amounts are enforceable or are allowable in such Insolvency Proceeding,
and all fees, interest, premiums, penalties, causes of actions, costs, commissions, expense reimbursements, indemnifications and all other
amounts due or to become due under any of the Transaction Documents (all of the foregoing collectively being the “Guaranteed
Obligations”). Without limiting the generality of the foregoing, each Guarantor’s liability hereunder shall extend to
all amounts that constitute part of the Guaranteed Obligations and would be owed by the Company to the Collateral Agent or any Buyer under
the Securities Purchase Agreement and the Notes but for the fact that they are unenforceable or not allowable due to the existence of
an Insolvency Proceeding involving any Transaction Party.

 

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(b) Each Guarantor, and by
his, her or its acceptance of this Guaranty, the Collateral Agent and each Buyer, hereby confirms that it is the intention of all such
Persons that this Guaranty and the Guaranteed Obligations of each Guarantor hereunder not constitute a fraudulent transfer or conveyance
for purposes of the Bankruptcy Code, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar foreign,
federal, provincial, state, or other applicable law to the extent applicable to this Guaranty and the Guaranteed Obligations of each Guarantor
hereunder. To effectuate the foregoing intention, the Collateral Agent, the Buyers and the Guarantors hereby irrevocably agree that the
Guaranteed Obligations of each Guarantor under this Guaranty at any time shall be limited to the maximum amount as will result in the
Guaranteed Obligations of such Guarantor under this Guaranty not constituting a fraudulent transfer or conveyance.

 

Section
3. Guaranty Absolute; Continuing Guaranty; Assignments.

 

(a) The Guarantors, jointly
and severally, guaranty that the Guaranteed Obligations will be paid strictly in accordance with the terms of the Transaction Documents,
regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of
the Collateral Agent or any Buyer with respect thereto. The obligations of each Guarantor under this Guaranty are independent of the Guaranteed
Obligations, and a separate action or actions may be brought and prosecuted against any Guarantor to enforce such obligations, irrespective
of whether any action is brought against any Transaction Party or whether any Transaction Party is joined in any such action or actions.
The liability of any Guarantor under this Guaranty shall be as a primary obligor (and not merely as a surety) and shall be irrevocable,
absolute and unconditional irrespective of, and each Guarantor hereby irrevocably waives, to the extent permitted by law, any defenses
it may now or hereafter have in any way relating to, any or all of the following:

 

(i) any lack of validity or
enforceability of any Transaction Document;

 

(ii) any change in the time,
manner or place of payment of, or in any other term of, all or any of the Guaranteed Obligations, or any other amendment or waiver of
or any consent to departure from any Transaction Document, including, without limitation, any increase in the Guaranteed Obligations resulting
from the extension of additional credit to any Transaction Party or extension of the maturity of any Guaranteed Obligations or otherwise;

 

(iii) any taking, exchange,
release or non-perfection of any Collateral;

 

(iv) any taking, release or
amendment or waiver of or consent to departure from any other guaranty, for all or any of the Guaranteed Obligations;

 

(v) any change, restructuring
or termination of the corporate, limited liability company or partnership structure or existence of any Transaction Party;

 

(vi) any manner of application
of Collateral or any other collateral, or proceeds thereof, to all or any of the Guaranteed Obligations, or any manner of sale or other
disposition of any Collateral or any other collateral for all or any of the Guaranteed Obligations or any other Obligations of any Transaction
Party under the Transaction Documents or any other assets of any Transaction Party or any of its Subsidiaries;

 

(vii) any failure of the Collateral
Agent or any Buyer to disclose to any Transaction Party any information relating to the business, condition (financial or otherwise),
operations, performance, properties or prospects of any other Transaction Party now or hereafter known to the Collateral Agent or any
Buyer (each Guarantor waiving any duty on the part of the Collateral Agent or any Buyer to disclose such information);

 

(viii) taking any action in
furtherance of the release of any Guarantor or any other Person that is liable for the Obligations from all or any part of any liability
arising under or in connection with any Transaction Document without the prior written consent of the Collateral Agent; or

 

(ix) any other circumstance
(including, without limitation, any statute of limitations) or any existence of or reliance on any representation by the Collateral Agent
or any Buyer that might otherwise constitute a defense available to, or a discharge of, any Transaction Party or any other guarantor or
surety.

 

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(b) This Guaranty shall continue
to be effective or be reinstated, as the case may be, if at any time any payment of any of the Guaranteed Obligations is rescinded or
must otherwise be returned by the Collateral Agent, any Buyer, or any other Person upon the insolvency, bankruptcy or reorganization of
any Transaction Party or otherwise, all as though such payment had not been made.

 

(c) This Guaranty is a continuing
guaranty and shall (i) remain in full force and effect until Payment in Full of the Guaranteed Obligations (other than inchoate indemnity
obligations) and shall not terminate for any reason prior to the respective Maturity Date of each Note (other than Payment in Full of
the Guaranteed Obligations) and (ii) be binding upon each Guarantor and its respective successors and assigns. This Guaranty shall
inure to the benefit of and be enforceable by the Collateral Agent, the Buyers, and their respective successors, and permitted pledgees,
transferees and assigns. Without limiting the generality of the foregoing sentence, the Collateral Agent or any Buyer may pledge, assign
or otherwise transfer all or any portion of its rights and obligations under and subject to the terms of any Transaction Document to any
other Person, and such other Person shall thereupon become vested with all the benefits in respect thereof granted to the Collateral Agent
or such Buyer (as applicable) herein or otherwise, in each case as provided in the Securities Purchase Agreement or such Transaction Document.

 

Section
4. Waivers. To the extent
permitted by applicable law, each Guarantor hereby waives promptness, diligence, protest, notice of acceptance and any other notice or
formality of any kind with respect to any of the Guaranteed Obligations and this Guaranty and any requirement that the Collateral Agent
exhaust any right or take any action against any Transaction Party or any other Person or any Collateral. Each Guarantor acknowledges
that it will receive direct and indirect benefits from the financing arrangements contemplated herein and that the waiver set forth in
this Section 4 is knowingly made in contemplation of such benefits. The Guarantors hereby waive any right to revoke this Guaranty,
and acknowledge that this Guaranty is continuing in nature and applies to all Guaranteed Obligations, whether existing now or in the future.
Without limiting the foregoing, to the extent permitted by applicable law, each Guarantor hereby unconditionally and irrevocably waives
(a) any defense arising by reason of any claim or defense based upon an election of remedies by the Collateral Agent or any Buyer
that in any manner impairs, reduces, releases or otherwise adversely affects the subrogation, reimbursement, exoneration, contribution
or indemnification rights of such Guarantor or other rights of such Guarantor to proceed against any of the other Transaction Parties,
any other guarantor or any other Person or any Collateral, and (b) any defense based on any right of set-off or counterclaim against
or in respect of the Guaranteed Obligations of such Guarantor hereunder. Each Guarantor hereby unconditionally and irrevocably waives
any duty on the part of the Collateral Agent or any Buyer to disclose to such Guarantor any matter, fact or thing relating to the business,
condition (financial or otherwise), operations, performance, properties or prospects of any other Transaction Party or any of its Subsidiaries
now or hereafter known by the Collateral Agent or a Buyer.

 

Section
5. Subrogation. No Guarantor may exercise any rights that it may now or hereafter acquire against any Transaction
Party or any other guarantor that arise from the existence, payment, performance or enforcement of any Guarantor’s obligations
under this Guaranty, including, without limitation, any right of subrogation, reimbursement, exoneration, contribution or
indemnification and any right to participate in any claim or remedy of the Collateral Agent or any Buyer against any Transaction
Party or any other guarantor or any Collateral, whether or not such claim, remedy or right arises in equity or under contract,
statute or common law, including, without limitation, the right to take or receive from any Transaction Party or any other
guarantor, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security solely on
account of such claim, remedy or right, unless and until there has been Payment in Full of the Guaranteed Obligations. If any amount
shall be paid to a Guarantor in violation of the immediately preceding sentence at any time prior to Payment in Full of the
Guaranteed Obligations and all other amounts payable under this Guaranty, such amount shall be held in trust for the benefit of the
Collateral Agent and shall forthwith be paid to the Collateral Agent to be credited and applied to the Guaranteed Obligations and
all other amounts payable under this Guaranty, whether matured or unmatured, in accordance with the terms of the Transaction
Document, or to be held as Collateral for any Guaranteed Obligations or other amounts payable under this Guaranty thereafter
arising. If (a) any Guarantor shall make payment to the Collateral Agent of all or any part of the Guaranteed Obligations, and
(b) there has been Payment in Full of the Guaranteed Obligations, the Collateral Agent will, at such Guarantor’s request
and expense, execute and deliver to such Guarantor appropriate documents, without recourse and without representation or warranty,
necessary to evidence the transfer by subrogation to such Guarantor of an interest in the Guaranteed Obligations resulting from such
payment by such Guarantor.

 

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Section
6. Representations, Warranties and Covenants. Each Guarantor hereby represents and warrants as of the date first written
above as follows:

 

(a) such Guarantor (i) is
a corporation, limited liability company or limited partnership duly organized, validly existing and in good standing under the laws of
the jurisdiction of its organization as set forth on the signature pages hereto, (ii) has all requisite corporate, limited liability
company or limited partnership power and authority to conduct its business as now conducted and as presently contemplated and to execute,
deliver and perform its obligations under this Guaranty and each other Transaction Document to which such Guarantor is a party, and to
consummate the transactions contemplated hereby and thereby and (iii) is duly qualified to do business and is in good standing in
each jurisdiction in which the character of the properties owned or leased by it or in which the transaction of its business makes such
qualification necessary except where the failure to be so qualified (individually or in the aggregate) would not result in a Material
Adverse Effect.

 

(b) The execution, delivery
and performance by such Guarantor of this Guaranty and each other Transaction Document to which such Guarantor is a party (i) have
been duly authorized by all necessary corporate, limited liability company or limited partnership action, (ii) do not and will not
contravene its charter, articles, certificate of formation or by-laws, its limited liability company or operating agreement or its certificate
of partnership or partnership agreement, as applicable, or any applicable law or any contractual restriction binding on such Guarantor
or its properties do not and will not result in or require the creation of any lien, security interest or encumbrance (other than pursuant
to any Transaction Document) upon or with respect to any of its properties, and (iii) do not and will not result in any default,
noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal of any material permit, license, authorization or approval
applicable to it or its operations or any of its properties.

 

(c) No authorization or approval
or other action by, and no notice to or filing with, any Governmental Authority or other Person is required in connection with the due
execution, delivery and performance by such Guarantor of this Guaranty or any of the other Transaction Documents to which such Guarantor
is a party (other than expressly provided for in any of the Transaction Documents).

 

(d) This Guaranty has been
duly executed and delivered by each Guarantor and is, and each of the other Transaction Documents to which such Guarantor is or will be
a party, when executed and delivered, will be, a legal, valid and binding obligation of such Guarantor, enforceable against such Guarantor
in accordance with its terms, except as may be limited by the Bankruptcy Code or other applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance, suretyship or similar laws and equitable principles (regardless of whether enforcement is sought in
equity or at law).

 

(e) There is no pending or,
to the best knowledge of such Guarantor, threatened action, suit or proceeding against such Guarantor or to which any of the properties
of such Guarantor is subject, before any court or other Governmental Authority or any arbitrator that (i) if adversely determined, could
reasonably be expected to have a Material Adverse Effect or (ii) relates to this Guaranty or any of the other Transaction Documents
to which such Guarantor is a party or any transaction contemplated hereby or thereby.

 

(f) Such Guarantor (i) has
read and understands the terms and conditions of the Securities Purchase Agreement and the other Transaction Documents, and (ii) now
has and will continue to have independent means of obtaining information concerning the affairs, financial condition and business of the
Company and the other Transaction Parties, and has no need of, or right to obtain from the Collateral Agent or any Buyer, any credit or
other information concerning the affairs, financial condition or business of the Company or the other Transaction Parties.

 

(g) Each Guarantor covenants
and agrees that until Payment in Full of the Guaranteed Obligations, it will comply with each of the covenants (except to the extent applicable
only to a public company) which are set forth in Section 4 of the Securities Purchase Agreement as if such Guarantor were a party thereto.

 

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SECTION 7. Right of
Set-off. Upon the occurrence and during the continuance of any Event of Default, the Collateral Agent and any Buyer may, and is
hereby authorized to, at any time and from time to time, without notice to the Guarantors (any such notice being expressly waived by
each Guarantor) and to the fullest extent permitted by law, set-off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other indebtedness at any time owing by the Collateral Agent or any Buyer to or
for the credit or the account of any Guarantor against any and all obligations of the Guarantors now or hereafter existing under
this Guaranty or any other Transaction Document, irrespective of whether or not the Collateral Agent or any Buyer shall have made
any demand under this Guaranty or any other Transaction Document and although such obligations may be contingent or unmatured. The
Collateral Agent and each Buyer agrees to notify the relevant Guarantor promptly after any such set-off and application made by the
Collateral Agent or such Buyer, provided that the failure to give such notice shall not affect the validity of such set-off and
application. The rights of the Collateral Agent or any Buyer under this Section 7 are in addition to other rights and
remedies (including, without limitation, other rights of set-off) which the Collateral Agent or such Buyer may have under this
Guaranty or any other Transaction Document in law or otherwise.

 

Section
8. Limitation on Guaranteed Obligations.

 

(a) Notwithstanding any provision
herein contained to the contrary, each Guarantor’s liability hereunder shall be limited to an amount not to exceed as of any date
of determination the greater of:

 

(i) the amount of all Guaranteed
Obligations; and

 

(ii) the amount which could
be claimed by the Collateral Agent from any Guarantor under this Guaranty without rendering such claim voidable or avoidable under the
Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act or similar statute or
common law after taking into account, among other things, Guarantor’s right of contribution and indemnification.

 

(b) Each Guarantor agrees
that the Guaranteed Obligations may at any time and from time to time exceed the amount of the liability of such Guarantor hereunder without
impairing the guaranty hereunder or affecting the rights and remedies of the Collateral Agent or any Buyer hereunder or under applicable
law.

 

(c) No payment made by the
Company, any Guarantor, any other guarantor or any other Person or received or collected by the Collateral Agent or any other Buyer from
the Company, any of the Guarantors, any other guarantor or any other Person by virtue of any action or proceeding or any set-off or appropriation
or application at any time or from time to time in reduction of or in payment of the Guaranteed Obligations shall be deemed to modify,
reduce, release or otherwise affect the liability of any Guarantor hereunder which shall, notwithstanding any such payment (other than
any payment made by such Guarantor in respect of the Guaranteed Obligations or any payment received or collected from such Guarantor in
respect of the Guaranteed Obligations), remain liable for the Guaranteed Obligations up to the maximum liability of such Guarantor hereunder
until after all of the Guaranteed Obligations and all other amounts payable under this Guaranty shall have been Paid in Full.

 

SECTION 9. Notices, Etc.
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Guaranty must be
in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when
sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party); or (iii) one (1) Business Day after deposit with an nationally recognized overnight courier service with next day delivery
specified, in each case, properly addressed to the party to receive the same. All notices and other communications provided for hereunder
shall be sent, if to any Guarantor, to the Company’s address and/or facsimile number, or if to the Collateral Agent or any Buyer,
to it at his, her or its respective address and/or facsimile number, each as set forth in Section 9(f) of the Securities Purchase
Agreement.

 

SECTION 10. Governing
Law; Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Guaranty shall be
governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or
rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdiction
other than the State of New York. Each Guarantor hereby irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection
herewith or under any of the other Transaction Documents or with any transaction contemplated hereby or thereby, and hereby
irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim, obligation or defense that it is not
personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum
or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process
and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address
for such notices to it under Section 9(f) of the Securities Purchase Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to
serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate to preclude the Collateral Agent
or the Buyers from bringing suit or taking other legal action against any Guarantor in any other jurisdiction to collect on a
Guarantor’s obligations or to enforce a judgment or other court ruling in favor of the Collateral Agent or a Buyer.

 

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SECTION 11. WAIVER OF
JURY TRIAL, ETC. EACH GUARANTOR HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR
THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR UNDER ANY OTHER TRANSACTION DOCUMENT OR IN CONNECTION WITH OR ARISING OUT OF THIS
GUARANTY, ANY OTHER TRANSACTION DOCUMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY.

 

Section
12. Taxes.

 

(a) All payments made by any
Guarantor hereunder or under any other Transaction Document shall be made in accordance with the terms of the respective Transaction Document
and shall be made without set-off, counterclaim, withholding, deduction or other defense, except as required by applicable law. Without
limiting the foregoing, if any applicable law (as determined in the good faith discretion of the applicable Guarantor) requires the deduction
or withholding for any present or future taxes, levies, imposts, deductions, charges or withholdings, and all interest, additions to tax
or penalties with respect thereto (“Taxes”), then the applicable Guarantor shall be entitled to make such deduction
or withholding and shall pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable
law. If any Guarantor shall be required to deduct or to withhold any Tax from or in respect of any amount payable hereunder or under any
other Transaction Document, excluding (i) Taxes imposed by the United States (or any political subdivision thereof), (ii) Taxes imposed
on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (A) imposed as a result of
the Collateral Agent or any Buyer being organized under the laws of, or having its principal office or applicable lending office located
in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (B) that are Other Connection Taxes, and (iii) Taxes
attributable to the failure of the Collateral Agent or any Buyer to provide to the Guarantor such properly completed and executed documentation
reasonably requested by the Guarantor as will permit such payment to be made without deduction or withholding or at a reduced rate of
deduction or withholding that the Collateral Agent or a Buyer, as applicable, is legally entitled to provide (all such nonexcluded Taxes,
collectively or individually, “Indemnified Taxes”), the amount so payable shall be increased to the extent necessary
so that after making all required deductions and withholdings for Indemnified Taxes (including Indemnified Taxes on amounts payable to
the Collateral Agent or any Buyer pursuant to this sentence) the Collateral Agent or each Buyer receives an amount equal to the sum he,
she or it would have received had no such deduction or withholding of Indemnified Taxes been made. As promptly as possible after any payment
of Taxes by a Guarantor to a Governmental Authority pursuant to this Section 12, such Guarantor shall send the Collateral Agent or each
Buyer an official receipt (or, if an official receipt is not available, such other documentation as shall be reasonably satisfactory to
the Collateral Agent, as the case may be) showing payment.

 

(b) Each Guarantor agrees
to pay any present or future stamp or documentary Taxes or any other excise or property Taxes that arise from the execution, delivery,
registration or enforcement of, or otherwise with respect to, this Guaranty or any other Transaction Document, except any such Taxes that
are Other Connection Taxes imposed with respect to an assignment by a Buyer (collectively, all such nonexcluded Taxes, “Other
Taxes”).

 

(c) Each Guarantor hereby
indemnifies and agrees to hold each Indemnified Party harmless from and against Indemnified Taxes or Other Taxes (including, without limitation,
any Indemnified Taxes or Other Taxes imposed by any jurisdiction on amounts payable under this Section 12) paid by any Indemnified Party
as a result of any payment made hereunder or from the execution, delivery, registration or enforcement of, or otherwise with respect to,
this Guaranty or any other Transaction Document, and any liability (including penalties, interest and reasonable expenses for nonpayment,
late payment or otherwise) arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly
or legally asserted. This indemnification shall be paid within thirty (30) days from the date on which the Collateral Agent or such Buyer
makes written demand therefor, which demand shall identify the nature and amount of such Indemnified Taxes or Other Taxes.

 

(d) The obligations of the
Guarantors under this Section 12 shall survive the termination of this Guaranty and the payment of the Obligations and all other amounts
payable hereunder.

 

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Section
13. Indemnification.

 

(a) Each Guarantor agrees,
jointly and severally, to defend, protect, indemnify and hold the Collateral Agent, each Noteholder and all of their respective shareholders,
partners, members, officers, directors, employees and direct or indirect investors and any of the foregoing Persons’ agents or other
representatives (including, without limitation, those retained in connection with the transactions contemplated by this Guaranty) (each
an “Indemnified Party”) harmless from and against any and all claims, damages, losses, liabilities, obligations, penalties,
fees, costs and expenses (including, without limitation, reasonable legal fees, costs, expenses, and disbursements of such Person’s
counsel as a result of, arising out of, or relating to this Guaranty (including, without limitation, enforcement of this Guaranty)) or
any failure of any Guaranteed Obligations to be the legal, valid and binding obligations of any Transaction Party enforceable against
such Transaction Party in accordance with their terms (the “Indemnified Liabilities”), except to the extent resulting
from such Person’s gross negligence or willful misconduct, as determined by a final judgment of a court of competent jurisdiction
no longer subject to appeal. To the extent that the foregoing undertaking by any Guarantor hereunder may be unenforceable for any reason,
such Guarantor shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities that is permissible
under applicable law. Except as otherwise set forth herein, the mechanics and procedures with respect to the rights and obligations under
this Section 13(a) shall be the same as those set forth in Section 6 of the Registration Rights Agreement.

 

(b) Each Guarantor agrees,
jointly and severally, to pay to the Collateral Agent and each Buyer upon demand the amount of any and all costs and expenses, including
the reasonable fees, costs, expenses and disbursements of counsel for the Collateral Agent or such Buyer and of any experts and agents
(including, without limitation, any collateral trustee which may act as agent of the Collateral Agent), which the Collateral Agent or
any Buyer may incur in connection with (i) the preparation, negotiation, execution, delivery, recordation, administration, amendment,
waiver or other modification or termination of this Guaranty, (ii) the exercise or enforcement of any of the rights of the Collateral
Agent or any Buyer hereunder, or (iii) the failure by any Guarantor to perform or observe any of the provisions hereof. Paragraphs (a)
and (b) of this Section 13 shall not apply with respect to taxes other than any Taxes that represent losses, claims, damages, etc.
arising from any non-Tax claim.

 

(c) Each Guarantor hereby
also agrees that none of the Indemnified Parties shall have any liability (whether direct or indirect, in contract, tort or otherwise)
or any fiduciary duty or obligation to any of the Guarantors or any of their respective affiliates or any of their respective officers,
directors, employees, agents and advisors, and each Guarantor hereby agrees not to assert any claim against any Indemnified Party on any
theory of liability, for special, indirect, consequential, incidental or punitive damages arising out of or otherwise relating to the
facilities, the actual or proposed use of the proceeds of the advances, the Transaction Documents or any of the transactions contemplated
by the Transaction Documents.

 

Section
14. Miscellaneous.

 

(a) Each Guarantor will make
each payment hereunder in lawful money of the United States of America and in immediately available funds to the Collateral Agent or each
Buyer, at such address specified by the Collateral Agent or such Buyer from time to time by notice to the Guarantors.

 

(b) No amendment or waiver
of any provision of this Guaranty and no consent to any departure by any Guarantor therefrom shall in any event be effective unless the
same shall be in writing and signed by each Guarantor, and the Collateral Agent (and approved by the Required Holders), and then such
waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

 

(c) No failure on the part
of the Collateral Agent or any Buyer to exercise, and no delay in exercising, any right or remedy hereunder or under any other Transaction
Document shall operate as a waiver thereof, nor shall any single or partial exercise of any right hereunder or under any Transaction Document
preclude any other or further exercise thereof or the exercise of any other right or remedy. The rights and remedies of the Collateral
Agent and the Buyers provided herein and in the other Transaction Documents are cumulative and are in addition to, and not exclusive of,
any rights or remedies provided by law. The rights and remedies of the Collateral Agent and the Buyers under any Transaction Document
against any party thereto are not conditional or contingent on any attempt by the Collateral Agent or any Buyer to exercise any of their
respective rights or remedies under any other Transaction Document against such party or against any other Person.

 

    8

     

    

 

(d) Any provision of this
Guaranty that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining portions hereof or affecting the validity or enforceability of such
provision in any other jurisdiction.

 

(e) This Guaranty is a continuing
guaranty and shall (i) remain in full force and effect until Payment in Full of the Guaranteed Obligations (other than inchoate indemnity
obligations) and shall not terminate for any reason prior to the respective Maturity Date of each Note (other than Payment in Full of
the Guaranteed Obligations) and (ii) be binding upon each Guarantor and its respective successors and assigns. At the request and
sole expense of the Company, a Guarantor shall be released from its obligations hereunder in the event that all of the equity interests
of such Guarantor shall be sold, transferred or otherwise disposed of in a transaction permitted by the Transaction Documents. This Guaranty
shall inure, together with all rights and remedies of the Collateral Agent hereunder, to the benefit of and be enforceable by the Collateral
Agent, the Buyers, and their respective successors, and permitted pledgees, transferees and assigns. Without limiting the generality of
the foregoing sentence, the Collateral Agent or any Buyer may pledge, assign or otherwise transfer all or any portion of its rights and
obligations under and subject to the terms of the Securities Purchase Agreement or any other Transaction Document to any other Person
in accordance with the terms thereof, and such other Person shall thereupon become vested with all the benefits in respect thereof granted
to the Collateral Agent or such Buyer (as applicable) herein or otherwise, in each case as provided in the Securities Purchase Agreement
or such Transaction Document. None of the rights or obligations of any Guarantor hereunder may be assigned or otherwise transferred without
the prior written consent of each Buyer.

 

(f) This Guaranty and the
other Transaction Documents reflect the entire understanding of the transaction contemplated hereby and shall not be contradicted or qualified
by any other agreement, oral or written, entered into before the date hereof.

 

(g) Section headings
herein are included for convenience of reference only and shall not constitute a part of this Guaranty for any other purpose.

 

Section
15. Currency Indemnity.

 

If, for the purpose of obtaining
or enforcing judgment against Guarantor in any court in any jurisdiction, it becomes necessary to convert into any other currency (such
other currency being hereinafter in this Section 15 referred to as the “Judgment Currency”) an amount due
under this Guaranty in any currency (the “Obligation Currency”) other than the Judgment Currency, the conversion shall
be made at the rate of exchange prevailing on the Business Day immediately preceding (a) the date of actual payment of the amount
due, in the case of any proceeding in the courts of courts of the jurisdiction that will give effect to such conversion being made on
such date, or (b) the date on which the judgment is given, in the case of any proceeding in the courts of any other jurisdiction
(the applicable date as of which such conversion is made pursuant to this Section 15 being hereinafter in this Section 15
referred to as the “Judgment Conversion Date”).

 

If, in the case of any proceeding
in the court of any jurisdiction referred to in the preceding paragraph, there is a change in the rate of exchange prevailing between
the Judgment Conversion Date and the date of actual receipt of the amount due in immediately available funds, the Guarantors shall pay
such additional amount (if any, but in any event not a lesser amount) as may be necessary to ensure that the amount actually received
in the Judgment Currency, when converted at the rate of exchange prevailing on the date of payment, will produce the amount of the Obligation
Currency which could have been purchased with the amount of the Judgment Currency stipulated in the judgment or judicial order at the
rate of exchange prevailing on the Judgment Conversion Date. Any amount due from the Guarantors under this Section 15 shall
be due as a separate debt and shall not be affected by judgment being obtained for any other amounts due under or in respect of this Guaranty.

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

    9

     

    

 

IN WITNESS WHEREOF, each Guarantor
has caused this Guaranty to be executed by its respective duly authorized officer, as of the date first above written.

 

	 	GUARANTORS:
	 	 	 
	 	FIN HOLDINGS INC.
	 	 	 
	 	By:	/s/ Stuart Stoller
	 	Name:	Stuart Stoller
	 	Title:	Chief Financial Officer
	 	 	 
	 	INNOVATION IN MOTION, INC.
	 	 	 
	 	By:	/s/ Stuart Stoller
	 	Name:	Stuart Stoller
	 	Title:	Chief Financial Officer
	 	 	 
	 	ID SOLUTIONS, INC.
	 	 	 
	 	By:	/s/ Stuart Stoller
	 	Name:	Stuart Stoller
	 	Title:	Chief Financial Officer

 

[Signatures continue on following page]

 

[Signature Page to Guaranty – Ipsidy (March
2022)]

  

     

     

    

  

ACCEPTED BY:

 

STEPHEN GARCHIK

as Collateral Agent

 

	By:	/s/ Stephen Garchik	 
	 	Name: 	Stephen Garchik	 
	 	Title:	Collateral Agent	 

 

[Signature Page to Guaranty – Ipsidy (March
2022)]Exhibit 10.5

 

REGISTRATION RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS
AGREEMENT (this “Agreement”), dated as of March 21, 2022, is by and among Ipsidy Inc., a Delaware corporation (the
“Company”), and the undersigned investors (individually, a “Buyer,” and collectively, the “Buyers”).

 

RECITALS

 

A. In
connection with the Securities Purchase Agreement by and among the parties hereto, dated as of March 21, 2022 (the “Securities
Purchase Agreement”), the Company has agreed, upon the terms and subject to the conditions of the Securities Purchase Agreement,
to issue and sell to each Buyer the Notes (as defined in the Securities Purchase Agreement) which will be convertible into Conversion
Shares (as defined in the Securities Purchase Agreement) in accordance with the terms of the Notes.

 

B. To
induce the Buyers to consummate the transactions contemplated by the Securities Purchase Agreement, the Company has agreed to provide
certain registration rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor
statute (collectively, the “Securities Act”), and applicable state securities laws.

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants contained herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and each of the Buyers hereby agree as follows:

 

		1)	Definitions.

 

Capitalized terms used herein
and not otherwise defined herein shall have the respective meanings set forth in the Securities Purchase Agreement. As used in this Agreement,
the following terms shall have the following meanings:

 

(a) “Business
Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized
or required by law to remain closed; provided, however,
for clarification, commercial banks shall not be deemed to be authorized or required by law to remain closed due to “stay at home”,
“shelter-in-place”, “non-essential employee” or any other similar orders or restrictions or the closure of any
physical branch locations at the direction of any governmental authority so long as the electronic funds transfer systems (including for
wire transfers) of commercial banks in The City of New York generally are open for use by customers on such day.

 

(b) “Closing
Date” shall have the meaning set forth in the Securities Purchase Agreement.

 

(c) “Effective
Date” means the date that the applicable Registration Statement has been declared effective by the SEC.

 

(d) “Effectiveness
Deadline” means (i) with respect to the initial Registration Statement required to be filed pursuant to Section 2(a), the earlier
of the (A) 75th calendar day after the Closing Date and (B) the third Business Day after the date the Company is notified (orally or in
writing, whichever is earlier) by the SEC that such Registration Statement will not be reviewed or will not be subject to further review
and (ii) with respect to any additional Registration Statements that may be required to be filed by the Company pursuant to this
Agreement, the earlier of the (A) 75th calendar day following the date on which the Company was required to file such additional Registration
Statement and (B) the third Business Day after the date the Company is notified (orally or in writing, whichever is earlier) by the SEC
that such Registration Statement will not be reviewed or will not be subject to further review.

 

     

     

    

 

(e) “Filing
Deadline” means (i) with respect to the initial Registration Statement required to be filed pursuant to Section 2(a), the 30th
calendar day after the Closing Date and (ii) with respect to any additional Registration Statements that may be required to be filed by
the Company pursuant to this Agreement, the date on which the Company was required to file such additional Registration Statement pursuant
to the terms of this Agreement.

 

(f) “Investor”
means a Buyer or any transferee or assignee of any Registrable Securities or Notes to whom a Buyer assigns its rights under this Agreement
and who agrees to become bound by the provisions of this Agreement in accordance with Section 9 and any transferee or assignee thereof
to whom a transferee or assignee of any Registrable Securities or Notes, as applicable, assigns its rights under this Agreement and who
agrees to become bound by the provisions of this Agreement in accordance with Section 9.

 

(g) “Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization
or a government or any department or agency thereof.

 

(h) “register,”
“registered,” and “registration” refer to a registration effected by preparing and filing one or
more Registration Statements in compliance with the Securities Act and pursuant to Rule 415 and the declaration of effectiveness
of such Registration Statement(s) by the SEC.

 

(i) “Registrable
Securities” means (i) the Conversion Shares, (ii) the Shares of Common Stock issuable as payment of the Origination Fee (as
defined in the Securities Purchase Agreement), and (iii) any capital stock of the Company issued or issuable with respect to the Conversion
Shares or the Notes, including, without limitation, (1) as a result of any stock split, stock dividend, recapitalization, exchange or
similar event or otherwise and (2) shares of capital stock of the Company into which the shares of Common Stock (as defined in the Stock
Purchase Agreement) are converted or exchanged without regard to any limitations on conversion of the Notes. As to any particular Registrable
Securities, such securities shall cease to be Registrable Securities when (x) the SEC has declared a Registration Statement covering such
securities effective and such securities have been disposed of pursuant to such effective Registration Statement, or (y) such securities
are sold under circumstances in which all of the applicable conditions of Rule 144 under the Securities Act are met.

 

(j) “Registration
Statement” means a registration statement or registration statements of the Company filed under the Securities Act covering
Registrable Securities.

 

(k) “Required
Holders” shall have the meaning as set forth in the Securities Purchase Agreement.

 

(l) “Required
Registration Amount” means an aggregate of 3,384,011 shares of Common Stock issuable pursuant to or in connection with the Notes,
all subject to adjustment as provided in Section 2(c) and/or Section 2(e).

 

(m) “Rule
144” means Rule 144 promulgated by the SEC under the Securities Act, as such rule may be amended from time to time, or any other
similar or successor rule or regulation of the SEC that may at any time permit the Investors to sell securities of the Company to the
public without registration.

 

(n) “Rule
415” means Rule 415 promulgated by the SEC under the Securities Act, as such rule may be amended from time to time, or any other
similar or successor rule or regulation of the SEC providing for offering securities on a continuous or delayed basis.

 

(o) “SEC”
means the United States Securities and Exchange Commission or any successor thereto.

 

    	 	2	 

     

    

 

		2)	Registration.

 

(a) Mandatory
Registration. The Company shall prepare and, as soon as practicable, but in no event later than the Filing Deadline, file with the
SEC an initial Registration Statement on Form S-3 covering the resale of all of the Registrable Securities, provided, that such
initial Registration Statement shall register for resale at least the number of shares of Common Stock equal to the Required Registration
Amount as of the date such Registration Statement is initially filed with the SEC; provided, further, that if Form S-3 is unavailable
for such a registration, the Company shall use such other form as is required by Section 2(b). Such initial Registration Statement, and
each other Registration Statement required to be filed pursuant to the terms of this Agreement, shall contain (except if otherwise directed
by the Required Holders) disclosure in “Selling Stockholders” and “Plan of Distribution” sections
in substantially the form attached hereto as Exhibit A. The Company shall use its reasonable best efforts to have such initial
Registration Statement, and each other Registration Statement required to be filed pursuant to the terms of this Agreement, declared effective
by the SEC as soon as practicable, but in no event later than the applicable Effectiveness Deadline for such Registration Statement.

 

(b) Ineligibility
to Use Form S-3. In the event that Form S-3 is not available for the registration of the resale of Registrable Securities hereunder,
the Company shall (i) register the resale of the Registrable Securities on Form S-1 or another appropriate form reasonably acceptable
to the Required Holders and (ii) undertake to register the resale of the Registrable Securities on Form S-3 as soon as such form
is available, provided, that the Company shall maintain the effectiveness of all Registration Statements then in effect until such
time as a Registration Statement on Form S-3 covering the resale of all the Registrable Securities has been declared effective by the
SEC and the prospectus contained therein is available for use.

 

(c) Sufficient
Number of Shares Registered. In the event the number of shares available under any Registration Statement is insufficient to cover
all of the Registrable Securities required to be covered by such Registration Statement or an Investor’s allocated portion of the
Registrable Securities pursuant to Section 2(g), the Company shall amend such Registration Statement (if permissible), or file with the
SEC a new Registration Statement (on the short form available therefor, if applicable), or both, so as to cover at least the Required
Registration Amount as of the Trading Day (as defined in the Note) immediately preceding the date of the filing of such amendment or new
Registration Statement, in each case, as soon as practicable, but in any event not later than twenty (20) days after the necessity therefor
arises (but taking account of any rule adopted by the SEC or Staff position with respect to the date on which the Staff will permit such
amendment to the Registration Statement and/or such new Registration Statement (as the case may be) to be filed with the SEC). The Company
shall use its reasonable best efforts to cause such amendment to such Registration Statement and/or such new Registration Statement (as
the case may be) to become effective as soon as practicable following the filing thereof with the SEC. For purposes of the foregoing provision,
the number of shares available under a Registration Statement shall be deemed “insufficient to cover all of the Registrable Securities”
if at any time the number of shares of Common Stock available for resale under the applicable Registration Statement is less than the
product determined by multiplying (i) the Required Registration Amount as of such time by (ii) 0.90. The calculation set forth in the
foregoing sentence shall be made without regard to any limitations on conversion, amortization and/or redemption of the Notes (and such
calculation shall assume (A) that the Notes are then convertible in full into shares of Common Stock at the then prevailing Conversion
Rate (as defined in the Notes), and (B) the initial outstanding principal amount of the Notes remains outstanding through the scheduled
Maturity Date (as defined in the Notes) and no redemptions of the Notes occur prior to the scheduled Maturity Date).

 

    	 	3	 

     

    

 

(d) Effect
of Failure to File and Obtain and Maintain Effectiveness of any Registration Statement. If (i) a Registration Statement covering the
resale of all of the Registrable Securities required to be covered thereby (disregarding any reduction pursuant to Section 2(e)) and required
to be filed by the Company pursuant to this Agreement is (A) not filed with the SEC on or before the Filing Deadline for such Registration
Statement (a “Filing Failure”) (it being understood that if the Company files a Registration Statement without affording
legal counsel, if any, for each Investor the opportunity to review and comment on the same as required by Section 3(c) hereof, the Company
shall be deemed to not have satisfied this clause (i)(A) and such event shall be deemed to be a Filing Failure) or (B) not declared
effective by the SEC on or before the Effectiveness Deadline for such Registration Statement (an “Effectiveness Failure”)
(it being understood that if on the Business Day immediately following the Effective Date for such Registration Statement the Company
shall not have filed a “final” prospectus for such Registration Statement with the SEC under Rule 424(b) in accordance with
Section 3(b) (whether or not such a prospectus is technically required by such rule), the Company shall be deemed to not have satisfied
this clause (i)(B) and such event shall be deemed to be an Effectiveness Failure), (ii) other than during an Allowable Grace Period (as
defined below), on any day after the Effective Date of a Registration Statement sales of all of the Registrable Securities required to
be included on such Registration Statement (disregarding any reduction pursuant to Section 2(e)) cannot be made pursuant to such Registration
Statement (including, without limitation, because of a failure to keep such Registration Statement effective, a failure to disclose such
information as is necessary for sales to be made pursuant to such Registration Statement, a suspension or delisting of (or a failure to
timely list) the shares of Common Stock on the Principal Market (as defined in the Securities Purchase Agreement) or any other limitations
imposed by the Principal Market, or a failure to register a sufficient number of shares of Common Stock or by reason of a stop order)
or (for any reason other than an Allowable Grace Period) the prospectus contained therein is not available for use for any reason (a “Maintenance
Failure”), or (iii) if a Registration Statement is not effective for any reason or the prospectus contained therein is not available
for use for any reason, and either (x) the Company fails for any reason to satisfy the requirements of Rule 144(c)(1), including, without
limitation, the failure to satisfy the current public information requirement under Rule 144(c) or (y) the Company has ever been an issuer
described in Rule 144(i)(1)(i) or becomes such an issuer in the future, and the Company shall fail to satisfy any condition set forth
in Rule 144(i)(2) (a “Current Public Information Failure”) as a result of which any of the Investors are unable to
sell Registrable Securities without restriction under Rule 144 (including, without limitation, volume restrictions), then, as partial
relief for the damages to any holder by reason of any such delay in, or reduction of, its ability to sell the underlying shares of Common
Stock (which remedy shall not be exclusive of any other remedies available at law or in equity, including, without limitation, specific
performance), the Company shall pay to each holder of Registrable Securities relating to such Registration Statement an amount in cash
equal to one and one-half percent (1.5%) of such Investor’s original principal amount stated in such Investor’s Note on the
Closing Date (1) on the date of such Filing Failure, Effectiveness Failure, Maintenance Failure or Current Public Information Failure,
as applicable, and (2) on every thirty (30) day anniversary of (I) a Filing Failure until such Filing Failure is cured; (II) an Effectiveness
Failure until such Effectiveness Failure is cured; (III) a Maintenance Failure until such Maintenance Failure is cured; and (IV) a Current
Public Information Failure until the earlier of (i) the date such Current Public Information Failure is cured and (ii) such time that
such public information is no longer required pursuant to Rule 144 (in each case, pro rated for periods totaling less than thirty (30)
days). The payments to which a holder of Registrable Securities shall be entitled pursuant to this Section 2(d) are referred to herein
as “Registration Delay Payments”; provided, however, that no Registration Delay Payments shall be payable to an Investor
with respect to a Filing Failure or an Effectiveness Failure to the extent (x) such Registration Delay Payments relate to Registrable
Securities such Investor elects not to include in such Registration Statement, or (y) such Investor fails to timely deliver the Company
the information required to be delivered to the Company pursuant to Section 4(a); provided, further, that, in the event of any reduction
in Registrable Securities required to be included in such Registration Statement pursuant to Sections 2(f) or 3(s), the Company shall
not be obligated to make any Registration Delay Payments with respect to such reduced number of Registrable Securities as a result thereof.
Following the initial Registration Delay Payment for any particular event or failure (which shall be paid on the date of such event or
failure, as set forth above), without limiting the foregoing, if an event or failure giving rise to the Registration Delay Payments is
cured prior to any thirty (30) day anniversary of such event or failure, then such Registration Delay Payment shall be made on the third
(3rd) Business Day after such cure. In the event the Company fails to make Registration Delay Payments in a timely manner in accordance
with the foregoing, such Registration Delay Payments shall bear interest at the rate of one percent (1%) per month (prorated for partial
months) until paid in full. Notwithstanding the foregoing, no Registration Delay Payments shall be owed to an Investor (other than with
respect to a Maintenance Failure resulting from a suspension or delisting of (or a failure to timely list) the shares of Common Stock
on the Principal Market) with respect to any period during which all of such Investor’s Registrable Securities may be sold by such
Investor without restriction under Rule 144 (including, without limitation, volume restrictions) and without the need for current public
information required by Rule 144(c)(1) (or Rule 144(i)(2), if applicable).

 

    	 	4	 

     

    

 

(e) Offering.
Notwithstanding anything to the contrary contained in this Agreement, but subject to the payment of the Registration Delay Payments pursuant
to Section 2(d), in the event the staff of the SEC (the “Staff”) or the SEC seeks to characterize any offering pursuant
to a Registration Statement filed pursuant to this Agreement as constituting an offering of securities by, or on behalf of, the Company,
or in any other manner, such that the Staff or the SEC do not permit such Registration Statement to become effective and used for resales
in a manner that does not constitute such an offering and that permits the continuous resale at the market by the Investors participating
therein (or as otherwise may be acceptable to each Investor) without being named therein as an “underwriter,” then the Company
shall reduce the number of shares to be included in such Registration Statement by all Investors until such time as the Staff and the
SEC shall so permit such Registration Statement to become effective as aforesaid. In making such reduction, the Company shall reduce the
number of shares to be included by all Investors on a pro rata basis (based upon the number of Registrable Securities otherwise required
to be included for each Investor) unless the inclusion of shares by a particular Investor or a particular set of Investors are resulting
in the Staff or the SEC’s “by or on behalf of the Company” offering position, in which event the shares held by such
Investor or set of Investors shall be the only shares subject to reduction (and if by a set of Investors on a pro rata basis by such Investors
or on such other basis as would result in the exclusion of the least number of shares by all such Investors); provided, that, with respect
to such pro rata portion allocated to any Investor, such Investor may elect the allocation of such pro rata portion among the Registrable
Securities of such Investor. In addition, in the event that the Staff or the SEC requires any Investor seeking to sell securities under
a Registration Statement filed pursuant to this Agreement to be specifically identified as an “underwriter” in order to permit
such Registration Statement to become effective, and such Investor does not consent to being so named as an underwriter in such Registration
Statement, then, in each such case, the Company shall reduce the total number of Registrable Securities to be registered on behalf of
such Investor, until such time as the Staff or the SEC does not require such identification or until such Investor accepts such identification
and the manner thereof. Any reduction pursuant to this paragraph will first reduce all Registrable Securities other than those issued
pursuant to the Securities Purchase Agreement. In the event of any reduction in Registrable Securities pursuant to this paragraph, an
affected Investor shall have the right to require, upon delivery of a written request to the Company signed by such Investor, the Company
to file a registration statement within thirty (30) days of such request (subject to any restrictions imposed by Rule 415 or such other
applicable rule adopted by the SEC or required by the Staff or the SEC) for resale by such Investor of its Registrable Securities in a
manner reasonably acceptable to such Investor, and the Company shall following such request cause to be and keep effective such registration
statement in the same manner as otherwise contemplated in this Agreement for registration statements hereunder, in each case until such
time as: (i) all Registrable Securities held by such Investor have been registered and sold pursuant to an effective Registration Statement
in a manner reasonably acceptable to such Investor or (ii) all Registrable Securities may be resold by such Investor without restriction
(including, without limitation, volume limitations) pursuant to Rule 144 (taking account of any Staff position with respect to “affiliate”
status) and without the need for current public information required by Rule 144(c)(1) (or Rule 144(i)(2), if applicable) or (iii) such
Investor agrees to be named as an underwriter in any such Registration Statement in a manner acceptable to such Investor as to all Registrable
Securities held by such Investor and that have not theretofore been included in a Registration Statement under this Agreement (it being
understood that the special demand right under this sentence may be exercised by an Investor multiple times and with respect to limited
amounts of Registrable Securities in order to permit the resale thereof by such Investor as contemplated above).

 

    	 	5	 

     

    

 

(f) Piggyback
Registrations. Without limiting any obligation of the Company hereunder or under the Securities Purchase Agreement, if there is not
an effective Registration Statement covering all of the Registrable Securities or the prospectus contained therein is not available for
use and the Company shall determine to prepare and file with the SEC a registration statement or offering statement relating to an offering
for its own account or the account of others under the Securities Act of any of its equity securities (other than on Form S-4 or Form
S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely in connection
with any acquisition of any entity or business (or a business combination subject to Rule 145 under the Securities Act) or equity securities
issuable in connection with the Company’s stock option or other employee benefit plans), then the Company shall deliver to each
Investor a written notice of such determination and, if within fifteen (15) days after the date of the delivery of such notice, any such
Investor shall so request in writing, the Company shall include in such registration statement or offering statement all or any part of
such Registrable Securities such Investor requests to be registered; provided, however, the Company shall not be required to register
any Registrable Securities pursuant to this Section 2(f) that are eligible for resale pursuant to Rule 144 without restriction (including,
without limitation, volume restrictions) and without the need for current public information required by Rule 144(c)(1) (or Rule 144(i)(2),
if applicable) or that are the subject of a then-effective Registration Statement; and provided, further, that the Company shall not be
required to include any Registrable Securities which an underwriter shall advise the Company will materially adversely affect the Company’s
ability to sell all of the shares which the Company intended to sell. The Company may postpone or withdraw the filing or the effectiveness
of a piggyback registration at any time in its sole discretion.

 

(g) Allocation
of Registrable Securities. The initial number of Registrable Securities included in any Registration Statement and any increase in
the number of Registrable Securities included therein shall be allocated pro rata among the Investors based on the number of Registrable
Securities held by each Investor at the time such Registration Statement covering such initial number of Registrable Securities or increase
thereof is declared effective by the SEC. In the event that an Investor sells or otherwise transfers any of such Investor’s Registrable
Securities other than pursuant to a Registration Statement, each transferee or assignee (as the case may be) that becomes an Investor
shall be allocated a pro rata portion of the then-remaining number of Registrable Securities included in such Registration Statement for
such transferor or assignee (as the case may be). Any shares of Common Stock included in a Registration Statement and which remain allocated
to any Person which ceases to hold any Registrable Securities covered by such Registration Statement shall be allocated to the remaining
Investors, pro rata based on the number of Registrable Securities then held by such Investors which are covered by such Registration Statement.

 

(h) Inclusion
of Other Securities. Except for up to (i) 1,063,514 shares being issued on the date hereof to certain accredited investors pursuant
to subscription agreements entered into with such accredited investors, (ii) 200,000 shares of Common Stock issuable in connection with
Permitted LOC Debt (as defined in the Notes), and (iii) 142,710 shares of Common Stock (or warrants therefor) otherwise issuable in connection
with the Closing (the “Other Shares”), the Company shall in no event include any securities other than Registrable
Securities for issuance or resale on any Registration Statement filed in accordance herewith without the prior written consent of the
Required Holders. Until the earlier of (x) the first date on which the resale by the Buyers of all the Registrable Securities required
to be filed on the initial Registration Statement pursuant to this Agreement is declared effective by the SEC (and each prospectus contained
therein is available for use on such date) or (y) the first date on which all of the Registrable Securities are eligible to be resold
by the Buyers pursuant to Rule 144 (or, if a Current Public Information Failure has occurred and is continuing, such later date after
which the Company has cured such Current Public Information Failure), the Company shall not enter into any agreement providing any registration
rights to any of its security holders, except as to the Other Shares and as otherwise permitted under the Securities Purchase Agreement.

 

    	 	6	 

     

    

 

		3)	Related Obligations.

 

The Company shall use its
reasonable best efforts to effect the registration of the Registrable Securities in accordance with the intended method of disposition
thereof, and, pursuant thereto, the Company shall have the following obligations:

 

(a) The
Company shall promptly prepare and file with the SEC a Registration Statement with respect to all the Registrable Securities (but in no
event later than the applicable Filing Deadline) and use its reasonable best efforts to cause such Registration Statement to become effective
as soon as practicable after such filing (but in no event later than the Effectiveness Deadline). Subject to Allowable Grace Periods,
the Company shall keep each Registration Statement effective (and the prospectus contained therein available for use) pursuant to Rule
415 for resales by the Investors on a delayed or continuous basis at then-prevailing market prices (and not fixed prices) at all times
until the earlier of (i) the date as of which all of the Investors may sell all of the Registrable Securities required to be covered by
such Registration Statement (disregarding any reduction pursuant to Section 2(e)) without restriction pursuant to Rule 144 (including,
without limitation, volume restrictions) and without the need for current public information required by Rule 144(c)(1) (or Rule 144(i)(2),
if applicable) or (ii) the date on which the Investors shall have sold all of the Registrable Securities covered by such Registration
Statement (the “Registration Period”). Notwithstanding anything to the contrary contained in this Agreement, the Company
shall ensure that, when filed and at all times while effective, each Registration Statement (including, without limitation, all amendments
and supplements thereto) and the prospectus (including, without limitation, all amendments and supplements thereto) used in connection
with such Registration Statement (1) shall not contain any untrue statement of a material fact or omit to state a material fact required
to be stated therein, or necessary to make the statements therein (in the case of prospectuses, in the light of the circumstances in which
they were made) not misleading and (2) will disclose (whether directly or through incorporation by reference to other SEC filings to the
extent permitted) all material information regarding the Company and its securities. Unless by reason of material Company developments
or SEC rules or Staff positions the Company has a reason for deferring effectiveness (including during an Allowable Grace Period), the
Company shall submit to the SEC, within two (2) Business Days after the date that the Company learns that no review of a particular Registration
Statement will be made by the Staff or that the Staff has no further comments on a particular Registration Statement (as the case may
be), a request for acceleration of effectiveness of such Registration Statement to a time and date not later than forty-eight (48) hours
after the submission of such request. The Company shall respond in writing to comments made by the SEC in respect of a Registration Statement
as soon as practicable, but in no event later than fifteen (15) days after the receipt of comments by or notice from the SEC that an amendment
is required in order for a Registration Statement to be declared effective.

 

(b) Subject
to Section 3(q) of this Agreement, the Company shall prepare and file with the SEC such amendments (including, without limitation, post-effective
amendments) and supplements to each Registration Statement and the prospectus used in connection with each such Registration Statement,
which prospectus is to be filed pursuant to Rule 424 promulgated under the Securities Act, as may be necessary to keep each such Registration
Statement effective at all times during the Registration Period for such Registration Statement, and, during such period, comply with
the provisions of the Securities Act with respect to the disposition of all Registrable Securities of the Company required to be covered
by such Registration Statement until the earlier of (i) such time as all of such Registrable Securities cease to be Registrable Securities
and (ii) completion of the Registration Period; provided, however, that by 8:30 a.m. (New York time) on the Business Day
immediately following each Effective Date, the Company shall file with the SEC in accordance with Rule 424(b) under the Securities Act
the final prospectus to be used in connection with sales pursuant to the applicable Registration Statement (whether or not such a prospectus
is technically required by such rule). In the case of amendments and supplements to any Registration Statement which are required to be
filed pursuant to this Agreement (including, without limitation, pursuant to this Section 3(b)) by reason of the Company filing a report
on Form 8-K, Form 10-Q or Form 10-K or any analogous report under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), the Company shall, if permitted under the applicable rules and regulations of the SEC, have incorporated such report
by reference into such Registration Statement, if applicable, or shall file such amendments or supplements with the SEC on the next Business
Day after the Exchange Act report is filed which created the requirement for the Company to amend or supplement such Registration Statement.

 

    	 	7	 

     

    

 

(c) The
Company shall (A) permit legal counsel, if any, for each Investor to review and comment upon (i) each Registration Statement at least
three (3) Business Days prior to its filing with the SEC and (ii) all amendments and supplements to each Registration Statement (including,
without limitation, the prospectus contained therein) (except for Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current
Reports on Form 8-K, and any similar or successor reports (collectively, the “Excluded Reports”)) within a reasonable
number of days prior to their filing with the SEC, and (B) not file any Registration Statement or amendment or supplement thereto (other
than Excluded Reports) in a form to which any legal counsel for any Investor reasonably objects; provided, however, that
the Company shall not have any obligation to modify any information if the Company reasonably expects that so doing would cause (i) the
Registration Statement to contain an untrue statement of a material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein not misleading or (ii) the prospectus contained therein to contain an untrue statement
of a material fact or to omit to state a material fact necessary in order to make the statements made, in light of the circumstances under
which they would be made, not misleading. The Company shall promptly furnish to legal counsel for each Investor, without charge, (i) copies
of any written correspondence from the SEC or the Staff to the Company or its representatives relating to each Registration Statement,
provided that such correspondence shall not contain any material, non-public information regarding the Company or any of its Subsidiaries
(as defined in the Securities Purchase Agreement), (ii) after the same is prepared and filed with the SEC, one (1) copy of each Registration
Statement and any amendment(s) and supplement(s) thereto, including, without limitation, financial statements and schedules, all documents
incorporated therein by reference, if requested by an Investor, and all exhibits, in each case unless publicly available on the SEC Electronic
Data Gathering, Analysis and Retrieval website (“EDGAR”); and (iii) upon the effectiveness of each Registration Statement,
one (1) copy of the prospectus included in such Registration Statement and all amendments and supplements thereto, unless publicly available
on EDGAR. The Company shall reasonably cooperate with legal counsel for each Investor in performing the Company’s obligations pursuant
to this Section 3.

 

(d) The
Company shall promptly furnish to each Investor whose Registrable Securities are included in any Registration Statement, without charge,
(i) after the same is prepared and filed with the SEC, at least one (1) copy of each Registration Statement and any amendment(s) and supplement(s)
thereto, including, without limitation, financial statements and schedules, all documents incorporated therein by reference, if requested
by an Investor, all exhibits and each preliminary prospectus, (ii) upon the effectiveness of each Registration Statement, ten (10) copies
of the prospectus included in such Registration Statement and all amendments and supplements thereto (or such other number of copies as
such Investor may reasonably request from time to time) and (iii) such other documents, including, without limitation, copies of any preliminary
or final prospectus, as such Investor may reasonably request from time to time in order to facilitate the disposition of the Registrable
Securities owned by such Investor, in each case unless publicly available on EDGAR.

 

(e) The
Company shall use its reasonable best efforts to (i) register and qualify, unless an exemption from registration and qualification applies,
the resale by Investors of the Registrable Securities covered by a Registration Statement under such other securities or “blue sky”
laws of all applicable jurisdictions in the United States, (ii) prepare and file in those jurisdictions, such amendments (including, without
limitation, post-effective amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness
thereof during the Registration Period, (iii) take such other actions as may be necessary to maintain such registrations and qualifications
in effect at all times during the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify the
Registrable Securities for sale in such jurisdictions; provided, however, the Company shall not be required in connection therewith or
as a condition thereto to (x) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this
Section 3(e), (y) subject itself to general taxation in any such jurisdiction, or (z) file a general consent to service of process in
any such jurisdiction. The Company shall promptly notify legal counsel for each Investor and each Investor who holds Registrable Securities
of the receipt by the Company of any notification with respect to the suspension of the registration or qualification of any of the Registrable
Securities for sale under the securities or “blue sky” laws of any jurisdiction in the United States or its receipt of actual
notice of the initiation or threatening of any proceeding for such purpose.

 

    	 	8	 

     

    

 

(f) The
Company shall notify legal counsel for each Investor and each Investor in writing of the happening of any event, as promptly as practicable
after becoming aware of such event, as a result of which the prospectus included in a Registration Statement, as then in effect, may include
an untrue statement of a material fact or omission to state a material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading (provided that in no event shall such notice contain
any material, non-public information regarding the Company or any of its Subsidiaries), and, subject to Section 3(q), promptly prepare
a supplement or amendment to such Registration Statement and such prospectus contained therein to correct such untrue statement or omission
and deliver ten (10) copies of such supplement or amendment to legal counsel for each Investor and each Investor (or such other number
of copies as legal counsel for each Investor or such Investor may reasonably request). The Company shall also promptly notify legal counsel
for each Investor and each Investor in writing (i) when a prospectus or any prospectus supplement or post-effective amendment has been
filed, when a Registration Statement or any post-effective amendment has become effective (notification of such effectiveness shall be
delivered to legal counsel for each Investor and each Investor by facsimile or e-mail on the same day of such effectiveness), and when
the Company receives written notice from the SEC that a Registration Statement or any post-effective amendment will be reviewed by the
SEC, (ii) of any request by the SEC for amendments or supplements to a Registration Statement or related prospectus or related information,
(iii) of the Company’s reasonable determination that a post-effective amendment to a Registration Statement would be appropriate;
and (iv) of the receipt of any request by the SEC or any other federal or state governmental authority for any additional information
relating to the Registration Statement or any amendment or supplement thereto or any related prospectus. The Company shall respond as
promptly as practicable to any comments received from the SEC with respect to each Registration Statement or any amendment thereto (it
being understood and agreed that the Company’s response to any such comments shall be delivered to the SEC no later than fifteen
(15) Business Days after the receipt thereof).

 

(g) The
Company shall (i) use its reasonable best efforts to prevent the issuance of any stop order or other suspension of effectiveness of each
Registration Statement or the use of any prospectus contained therein, or the suspension of the qualification, or the loss of an exemption
from qualification, of any of the Registrable Securities for sale in any jurisdiction and, if such an order or suspension is issued, to
obtain the withdrawal of such order or suspension at the earliest possible moment and (ii) notify legal counsel for each Investor and
each Investor who holds Registrable Securities of the issuance of such order and the resolution thereof or its receipt of actual notice
of the initiation or threat of any proceeding for such purpose.

 

(h) If
any Investor may be required under applicable securities law to be described in any Registration Statement as an underwriter and such
Investor consents to so being named an underwriter, at the request of any Investor, the Company shall furnish to such Investor, on the
date of the effectiveness of such Registration Statement and thereafter from time to time on such dates as an Investor may reasonably
request (i) a letter, dated such date, from the Company’s independent certified public accountants in form and substance as is customarily
given by independent certified public accountants to underwriters in an underwritten public offering, addressed to the Investors, and
(ii) an opinion, dated as of such date, of counsel representing the Company for purposes of such Registration Statement, in form, scope
and substance as is customarily given in an underwritten public offering, addressed to the Investors.

 

    	 	9	 

     

    

 

(i) If
any Investor may be required under applicable securities law to be described in any Registration Statement as an underwriter and such
Investor consents to so being named an underwriter, upon the written request of such Investor, the Company shall make available for inspection
upon reasonable notice and during normal business hours by (i) such Investor, (ii) legal counsel for such Investor and (iii) one
(1) firm of accountants or other agents retained by such Investor (collectively, the “Inspectors”), all pertinent financial
and other records, and pertinent corporate documents and properties of the Company (collectively, the “Records”), as
shall be reasonably deemed reasonably necessary by each Inspector to enable such Investor to exercise its due diligence responsibility,
and cause the Company’s officers, directors and employees to supply all information which any Inspector may reasonably request;
provided, however, each Inspector shall agree in writing to hold in strict confidence and not to make any disclosure (except to such Investor)
or use of any Record or other information which the Company’s board of directors determines in good faith to be confidential, and
of which determination the Inspectors are so notified, unless (1) the disclosure of such Records is necessary to avoid or correct a misstatement
or omission in any Registration Statement or is otherwise required under the Securities Act, (2) the release of such Records is ordered
pursuant to a final, non-appealable subpoena or order from a court or government body of competent jurisdiction, or (3) the information
in such Records has been made generally available to the public other than by disclosure in violation of this Agreement or any other Transaction
Document (as defined in the Securities Purchase Agreement). Such Investor agrees that it shall, upon learning that disclosure of such
Records is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt notice to the Company
and allow the Company, at its expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for,
the Records deemed confidential. Nothing herein (or in any other confidentiality agreement between the Company and such Investor, if any)
shall be deemed to limit any Investor’s ability to sell Registrable Securities in a manner which is otherwise consistent with applicable
laws and regulations.

 

(j) The
Company shall hold in confidence and not make any disclosure of information concerning an Investor provided to the Company unless (i)
disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information is
necessary to avoid or correct a misstatement or omission in any Registration Statement or is otherwise required to be disclosed in such
Registration Statement pursuant to the Securities Act, (iii) the release of such information is ordered pursuant to a subpoena or other
final, non-appealable order from a court or governmental body of competent jurisdiction, or (iv) such information has been made generally
available to the public other than by disclosure in violation of this Agreement or any other Transaction Document. The Company agrees
that it shall, upon learning that disclosure of such information concerning an Investor is sought in or by a court or governmental body
of competent jurisdiction or through other means, give prompt written notice to such Investor and allow such Investor, at such Investor’s
expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, such information.

 

(k) Without
limiting any obligation of the Company under the Securities Purchase Agreement, the Company shall use its reasonable best efforts either
to (i) cause all of the Registrable Securities covered by each Registration Statement to be listed on each securities exchange on which
securities of the same class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is
then permitted under the rules of such exchange, (ii) secure designation and quotation of all of the Registrable Securities covered by
each Registration Statement on an Eligible Market (as defined in the Securities Purchase Agreement), or (iii) if, despite the Company’s
best efforts to satisfy the preceding clauses (i) or (ii) the Company is unsuccessful in satisfying the preceding clauses (i) or (ii),
without limiting the generality of the foregoing, to use its reasonable best efforts to arrange for at least two market makers to register
with the Financial Industry Regulatory Authority (“FINRA”) as such with respect to such Registrable Securities. In
addition, the Company shall cooperate with each Investor and any broker or dealer through which any such Investor proposes to sell its
Registrable Securities in effecting a filing with FINRA pursuant to FINRA Rule 5110 as reasonably requested by such Investor. The Company
shall pay all fees and expenses in connection with satisfying its obligations under this Section 3(k).

 

    	 	10	 

     

    

 

(l) The
Company shall cooperate with the Investors who hold Registrable Securities being offered and, to the extent applicable, facilitate the
timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable Securities to be offered
pursuant to a Registration Statement and enable such certificates to be in such denominations or amounts (as the case may be) as the Investors
may reasonably request from time to time and registered in such names as the Investors may request.

 

(m) If
requested by an Investor, the Company shall as soon as practicable after receipt of notice from such Investor and subject to Section 3(q)
hereof, (i) incorporate in a prospectus supplement or post-effective amendment such information as an Investor reasonably requests to
be included therein relating to the sale and distribution of Registrable Securities, including, without limitation, information with respect
to the number of Registrable Securities being offered or sold, the purchase price being paid therefor and any other terms of the offering
of the Registrable Securities to be sold in such offering; (ii) make all required filings of such prospectus supplement or post-effective
amendment after being notified of the matters to be incorporated in such prospectus supplement or post-effective amendment; and (iii)
supplement or make amendments to any Registration Statement or prospectus contained therein if reasonably requested by an Investor holding
any Registrable Securities.

 

(n) The
Company shall use its reasonable best efforts to cause the Registrable Securities covered by a Registration Statement to be registered
with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition of such Registrable
Securities.

 

(o) The
Company shall make generally available to its security holders as soon as practical, but not later than ninety (90) days after the close
of the period covered thereby, an earnings statement (in form complying with, and in the manner provided by, the provisions of Rule 158
under the Securities Act) covering a twelve-month period beginning not later than the first day of the Company’s fiscal quarter
next following the applicable Effective Date of each Registration Statement.

 

(p) The
Company shall otherwise use its reasonable best efforts to comply with all applicable rules and regulations of the SEC in connection with
any registration hereunder.

 

(q) Notwithstanding
anything to the contrary herein (but subject to the last sentence of this Section 3(q)), at any time after the Effective Date of a particular
Registration Statement, the Company may delay the disclosure of material, non-public information concerning the Company or any of its
Subsidiaries the disclosure of which at the time is not, in the good faith opinion of the board of directors of the Company, in the best
interest of the Company and, in the opinion of counsel to the Company, otherwise required (a “Grace Period”), provided
that the Company shall promptly notify the Investors in writing of the (i) existence of material, non-public information giving rise to
a Grace Period (provided that in each such notice the Company shall not disclose the content of such material, non-public information
to any of the Investors) and the date on which such Grace Period will begin and (ii) date on which such Grace Period ends, provided further
that (I) no Grace Period shall exceed fifteen (15) consecutive days and during any three hundred sixty five (365) day period all such
Grace Periods shall not exceed an aggregate of thirty (30) days, (II) the first day of any Grace Period must be at least five (5) Trading
Days after the last day of any prior Grace Period and (III) no Grace Period may exist during the sixty (60) Trading Day period immediately
following the Effective Date of such Registration Statement (provided that such sixty (60) Trading Day period shall be extended by the
number of Trading Days during such period and any extension thereof contemplated by this proviso during which such Registration Statement
is not effective or the prospectus contained therein is not available for use) (each, an “Allowable Grace Period”).
For purposes of determining the length of a Grace Period above, such Grace Period shall begin on and include the date the Investors receive
the notice referred to in clause (i) above and shall end on and include the later of the date the Investors receive the notice referred
to in clause (ii) above and the date referred to in such notice. The provisions of Section 3(g) hereof shall not be applicable during
the period of any Allowable Grace Period. Upon expiration of each Grace Period, the Company shall again be bound by the first sentence
of Section 3(f) with respect to the information giving rise thereto unless such material, non-public information is no longer applicable.
Notwithstanding anything to the contrary contained in this Section 3(q), the Company shall cause its transfer agent to deliver unlegended
shares of Common Stock to a transferee of an Investor in accordance with the terms of the Securities Purchase Agreement in connection
with any sale of Registrable Securities with respect to which such Investor has entered into a contract for sale, and delivered a copy
of the prospectus included as part of the particular Registration Statement to the extent applicable, prior to such Investor’s receipt
of the notice of a Grace Period and for which the Investor has not yet settled.

 

    	 	11	 

     

    

 

(r) The
Company shall take all other reasonable actions necessary to expedite and facilitate disposition by each Investor of its Registrable Securities
pursuant to each Registration Statement (which shall include the Company using its reasonable best efforts to cause its transfer agent
to remove any restrictive legends relating to the Registrable Securities as promptly as practicable following the SEC’s declaring
a Registration Statement effective with respect to such Registrable Securities).

 

(s) Neither
the Company nor any Subsidiary or affiliate thereof shall identify any Investor as an underwriter in any public disclosure or filing with
the SEC, the Principal Market or any Eligible Market, and any Buyer being deemed an underwriter by the SEC shall not relieve the Company
of any obligations it has under this Agreement or any other Transaction Document (as defined in the Securities Purchase Agreement); provided,
however, that the foregoing shall not prohibit the Company from including the disclosure found in the “Plan of Distribution”
section attached hereto as Exhibit A in the Registration Statement; provided, further,
that if a reduction of the number of Registrable Securities to be included in the Registration Statement for resale by such Investor in
accordance with Section 2(e) would not cause the Investor to cease to be deemed an “underwriter” by the SEC and such Investor
does not consent to be named as an “underwriter” in such Registration Statement, the Company shall have no obligation hereunder
to include such Investor’s Registrable Securities in such Registration Statement (nor shall the Company incur any Registration Delay
Payments with respect thereto).

 

(t) Neither
the Company nor any of its Subsidiaries has entered, as of the date hereof, nor shall the Company or any of its Subsidiaries, on or after
the date of this Agreement, enter into any agreement with respect to its securities, that would have the effect of impairing the rights
granted to the Buyers in this Agreement or otherwise conflicts with the provisions hereof.

 

		4)	Obligations of the Investors.

 

(a) At
least five (5) Business Days prior to the first anticipated filing date of each Registration Statement, the Company shall notify each
Investor in writing of the information the Company requires from each such Investor with respect to such Registration Statement. It shall
be a condition precedent to the obligations of the Company to complete the registration pursuant to this Agreement with respect to the
Registrable Securities of a particular Investor that such Investor shall furnish to the Company such information regarding itself, the
Registrable Securities held by it and the intended method of disposition of the Registrable Securities held by it, as shall be reasonably
required to effect and maintain the effectiveness of the registration of such Registrable Securities and shall execute such documents
in connection with such registration as the Company may reasonably request.

 

(b) Each
Investor, by such Investor’s acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested
by the Company in connection with the preparation and filing of each Registration Statement hereunder, unless such Investor has notified
the Company in writing of such Investor’s election to exclude all of such Investor’s Registrable Securities from such Registration
Statement.

 

(c) Each
Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 3(g)
or the first sentence of 3(f), such Investor will immediately discontinue disposition of Registrable Securities pursuant to any Registration
Statement(s) covering such Registrable Securities until such Investor’s receipt of the copies of the supplemented or amended prospectus
contemplated by Section 3(g) or the first sentence of Section 3(f) or receipt of notice that no supplement or amendment is required. Notwithstanding
anything to the contrary in this Section 4(c), the Company shall cause its transfer agent to deliver unlegended shares of Common Stock
to a transferee of an Investor in accordance with the terms of the Securities Purchase Agreement in connection with any sale of Registrable
Securities with respect to which such Investor has entered into a contract for sale prior to the Investor’s receipt of a notice
from the Company of the happening of any event of the kind described in Section 3(g) or the first sentence of Section 3(f) and for which
such Investor has not yet settled.

 

    	 	12	 

     

    

 

		5)	Expenses of Registration.

 

All reasonable expenses, other
than underwriting discounts and commissions, stock transfer taxes, and fees and disbursements of legal counsel to any Investor not subject
to reimbursement under any other Transaction Document, incurred in connection with registrations, filings or qualifications pursuant to
Sections 2 and 3, including, without limitation, all registration, listing and qualifications fees, printers and accounting fees, FINRA
filing fees (if any) and fees and disbursements of counsel for the Company, shall be paid by the Company.

 

		6)	Indemnification.

 

(a) To
the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend each Investor and each of
its directors, officers, shareholders, members, partners, employees, agents, advisors, representatives (and any other Persons with a functionally
equivalent role of a Person holding such titles notwithstanding the lack of such title or any other title) and each Person, if any, who
controls such Investor within the meaning of the Securities Act or the Exchange Act and each of the directors, officers, shareholders,
members, partners, employees, agents, advisors, representatives (and any other Persons with a functionally equivalent role of a Person
holding such titles notwithstanding the lack of such title or any other title) of such controlling Persons (each, an “Indemnified
Person”), against any losses, obligations, claims, damages, liabilities, contingencies, judgments, fines, penalties, charges,
costs (including, without limitation, court costs, reasonable attorneys’ fees and costs of defense and investigation), amounts
paid in settlement or expenses, joint or several, (collectively, “Claims”) incurred in investigating, preparing or
defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental,
administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an Indemnified Person is or
may reasonably be a party thereto (“Indemnified Damages”), to which any of them may become subject insofar as such
Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any untrue
statement or alleged untrue statement of a material fact in a Registration Statement or any post-effective amendment thereto or in any
filing made in connection with the qualification of the offering under the securities or other “blue sky” laws of any jurisdiction
in which Registrable Securities are offered, or the omission or alleged omission to state a material fact required to be stated therein
or necessary to make the statements therein not misleading, (ii) any untrue statement or alleged untrue statement of a material fact contained
in any preliminary prospectus if used prior to the effective date of such Registration Statement, or contained in the final prospectus
(as amended or supplemented, if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged
omission to state therein any material fact necessary to make the statements made therein, in light of the circumstances under which the
statements therein were made, not misleading or (iii) any violation or alleged violation by the Company of the Securities Act, the
Exchange Act, any other law, including, without limitation, any state securities law, or any rule or regulation thereunder relating to
the offer or sale of the Registrable Securities pursuant to a Registration Statement or (iv) any violation of this Agreement (the matters
in the foregoing clauses (i) through (iv) being, collectively, “Violations”). Subject to Section 6(c), the Company
shall reimburse the Indemnified Persons, promptly as such expenses are incurred and are due and payable, for any legal fees or other reasonable
expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary contained
herein, the indemnification agreement contained in this Section 6(a): (i) shall not apply to a Claim by an Indemnified Person arising
out of or based upon a Violation which occurs in reliance upon and in conformity with information furnished in writing to the Company
by such Indemnified Person for such Indemnified Person expressly for use in connection with the preparation of such Registration Statement
or any such amendment thereof or supplement thereto, if such prospectus was timely made available by the Company pursuant to Section 3(d);
and (ii) shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of
the Company, which consent shall not be unreasonably withheld or delayed.

 

    	 	13	 

     

    

 

Such indemnity shall remain in full force and
effect regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the transfer of any of the Registrable
Securities by any of the Investors pursuant to Section 9.

 

(b) In
connection with any Registration Statement in which an Investor is participating, such Investor agrees to severally and not jointly indemnify,
hold harmless and defend, to the same extent and in the same manner as is set forth in Section 6(a), the Company, each of its directors,
each of its officers who signs the Registration Statement and each Person, if any, who controls the Company within the meaning of the
Securities Act or the Exchange Act (each, an “Indemnified Party”), against any Claim or Indemnified Damages to which
any of them may become subject, under the Securities Act, the Exchange Act or otherwise, insofar as such Claim or Indemnified Damages
arise out of or are based upon any Violation, in each case, to the extent, and only to the extent, that such Violation occurs in reliance
upon and in conformity with written information furnished to the Company by such Investor expressly for use in connection with such Registration
Statement; and, subject to Section 6(c) and the below provisos in this Section 6(b), such Investor will reimburse an Indemnified Party
any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such Claim;
provided, however, the indemnity agreement contained in this Section 6(b) and the agreement with respect to contribution
contained in Section 7 shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written
consent of such Investor, which consent shall not be unreasonably withheld or delayed, provided, further, that such Investor shall
be liable under this Section 6(b) for only that amount of a Claim or Indemnified Damages as does not exceed the net proceeds to such Investor
as a result of the applicable sale of Registrable Securities pursuant to such Registration Statement. Such indemnity shall remain in full
force and effect regardless of any investigation made by or on behalf of such Indemnified Party and shall survive the transfer of any
of the Registrable Securities by any of the Investors pursuant to Section 9.

 

(c) Promptly
after receipt by an Indemnified Person or Indemnified Party (as the case may be) under this Section 6 of notice of the commencement of
any action or proceeding (including, without limitation, any governmental action or proceeding) involving a Claim, such Indemnified Person
or Indemnified Party (as the case may be) shall, if a Claim in respect thereof is to be made against any indemnifying party under this
Section 6, deliver to the indemnifying party a written notice of the commencement thereof, and the indemnifying party shall have the right
to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed,
to assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the
Indemnified Party (as the case may be); provided, however, an Indemnified Person or Indemnified Party (as the case may be)
shall have the right to retain its own counsel with the reasonable fees and expenses of such counsel to be paid by the indemnifying party
if: (i) the indemnifying party has agreed in writing to pay such fees and expenses; (ii) the indemnifying party shall have failed promptly
to assume the defense of such Claim and to employ counsel reasonably satisfactory to such Indemnified Person or Indemnified Party (as
the case may be) in any such Claim; or (iii) the named parties to any such Claim (including, without limitation, any impleaded parties)
include both such Indemnified Person or Indemnified Party (as the case may be) and the indemnifying party, and such Indemnified Person
or such Indemnified Party (as the case may be) shall have been advised by counsel that a conflict of interest is likely to exist if the
same counsel were to represent such Indemnified Person or such Indemnified Party and the indemnifying party (in which case, if such Indemnified
Person or such Indemnified Party (as the case may be) notifies the indemnifying party in writing that it elects to employ separate counsel
at the expense of the indemnifying party, then the indemnifying party shall not have the right to assume the defense thereof and such
counsel shall be at the expense of the indemnifying party), provided further that in the case of clause (iii) above the indemnifying party
shall not be responsible for the reasonable fees and expenses of more than one (1) separate legal counsel for such Indemnified Person
or Indemnified Party (as the case may be). The Indemnified Party or Indemnified Person (as the case may be) shall reasonably cooperate
with the indemnifying party in connection with any negotiation or defense of any such action or Claim by the indemnifying party and shall
furnish to the indemnifying party all information reasonably available to the Indemnified Party or Indemnified Person (as the case may
be) which relates to such action or Claim. The indemnifying party shall keep the Indemnified Party or Indemnified Person (as the case
may be) reasonably apprised at all times as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying
party shall be liable for any settlement of any action, claim or proceeding effected without its prior written consent; provided,
however, the indemnifying party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without
the prior written consent of the Indemnified Party or Indemnified Person (as the case may be), consent to entry of any judgment or enter
into any settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff
to such Indemnified Party or Indemnified Person (as the case may be) of a release from all liability in respect to such Claim or litigation,
and such settlement shall not include any admission as to fault on the part of the Indemnified Party. Following indemnification as provided
for hereunder, the indemnifying party shall be subrogated to all rights of the Indemnified Party or Indemnified Person (as the case may
be) with respect to all third parties, firms or corporations relating to the matter for which indemnification has been made. The failure
to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall not relieve
such indemnifying party of any liability to the Indemnified Person or Indemnified Party (as the case may be) under this Section 6, except
to the extent that the indemnifying party is materially and adversely prejudiced in its ability to defend such action.

 

(d) The
indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation
or defense, as and when bills are received or Indemnified Damages are incurred, subject to delivery
by the Indemnified Party or Indemnified Person (as the case may be) of an undertaking to return any amount so paid if it is later determined
such Indemnified Party or Indemnified Person is not entitled to indemnification hereunder.

 

(e) The
indemnity and contribution agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified
Party or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject to
pursuant to the law.

 

    	 	14	 

     

    

 

		7)	Contribution.

 

To the extent any indemnification
by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect
to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law. Notwithstanding the provisions
of this Section 7, no Investor shall be required to contribute, in the aggregate, any amount in excess of the amount by which the net
proceeds actually received by such Investor from the applicable sale of the Registrable Securities subject to the Claim exceeds the amount
of any damages that such Investor has otherwise been required to pay, or would otherwise be required to pay under Section 6(b), by reason
of such untrue or alleged untrue statement or omission or alleged omission.

 

		8)	Reports Under the Exchange Act.

 

With a view to making available to the Investors
the benefits of Rule 144, the Company agrees to, so long as any Investor holds any Notes or Registrable Securities:

 

(a) make
and keep public information available, as those terms are understood and defined in Rule 144;

 

(b) file
with the SEC in a timely manner, subject to any extension periods permitted by the applicable SEC rules and regulations, all reports and
other documents required of the Company under the Securities Act and the Exchange Act so long as the Company remains subject to such requirements
(it being understood and agreed that nothing herein shall limit any obligations of the Company under the Securities Purchase Agreement)
and the filing of such reports and other documents is required for the applicable provisions of Rule 144; and

 

(c) furnish
to each Investor so long as such Investor owns Registrable Securities, promptly upon request, (i) a written statement by the Company,
if true, that it has complied with the reporting, submission and posting requirements of Rule 144, the Securities Act and the Exchange
Act, (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company
with the SEC if such reports are not publicly available via EDGAR, and (iii) such other information as may be reasonably requested to
permit the Investors to sell such securities pursuant to Rule 144 without registration.

 

		9)	Assignment of Registration Rights.

 

All or any portion of the
rights under this Agreement shall be automatically assignable by each Investor to any transferee or assignee (as the case may be) of all
or any portion of such Investor’s Registrable Securities or Notes if: (i) such Investor agrees in writing with such transferee or
assignee (as the case may be) to assign all or any portion of such rights, and a copy of such agreement is furnished to the Company within
a reasonable time after such transfer or assignment (as the case may be); (ii) the Company is, within a reasonable time after such transfer
or assignment (as the case may be), furnished with written notice of (a) the name and address of such transferee or assignee (as the case
may be), and (b) the securities with respect to which such registration rights are being transferred or assigned (as the case may be);
(iii) immediately following such transfer or assignment (as the case may be) the further disposition of such securities by such transferee
or assignee (as the case may be) is restricted under the Securities Act or applicable state securities laws if so required; (iv) at or
before the time the Company receives the written notice contemplated by clause (ii) of this sentence such transferee or assignee (as the
case may be) agrees in writing with the Company to be bound by all of the provisions contained herein; (v) such transfer or assignment
(as the case may be) shall have been made in accordance with the applicable requirements of the Securities Purchase Agreement and the
Notes (as the case may be); and (vi) such transfer or assignment (as the case may be) shall have been conducted in accordance with all
applicable federal and state securities laws.

 

		10)	Amendment of Registration Rights.

 

Provisions of this Agreement
may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively or prospectively),
only with the written consent of the Company and the Required Holders; provided that any such amendment or waiver that complies with the
foregoing, but that disproportionately, materially and adversely affects the rights and obligations of any Investor relative to the comparable
rights and obligations of the other Investors shall require the prior written consent of such adversely affected Investor. Any amendment
or waiver effected in accordance with this Section 10 shall be binding upon each Investor and the Company, provided that no such amendment
shall be effective to the extent that it (1) applies to less than all of the holders of Registrable Securities or (2) imposes any obligation
or liability on any Investor without such Investor’s prior written consent (which may be granted or withheld in such Investor’s
sole discretion). No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving party.
No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of this Agreement
unless the same consideration (other than the reimbursement of legal fees) also is offered to all of the parties to this Agreement.

 

    	 	15	 

     

    

 

		11)	Miscellaneous.

 

(a) Solely
for purposes of this Agreement, a Person is deemed to be a holder of Registrable Securities whenever such Person owns, or is deemed to
own, of record such Registrable Securities. If the Company receives conflicting instructions, notices or elections from two or more Persons
with respect to the same Registrable Securities, the Company shall act upon the basis of instructions, notice or election received from
such record owner of such Registrable Securities.

 

(b) Any
notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing
and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile or by
electronic mail (provided that such sent email is kept on file (whether electronically or otherwise) by the sending party and the sending
party does not receive an automatically generated message from the recipient’s email server that such e-mail could not be delivered
to such recipient); or (iii) one Business Day after deposit with an overnight courier service with next day delivery specified, in each
case, properly addressed to the party to receive the same. The addresses, facsimile numbers and e-mail addresses, as applicable, for such
communications shall be:

 

If to the Company:

 

Ipsidy Inc.

670 Long Beach Boulevard

Long Beach, NY 11561

Attention: Thomas L. Thimot

E-Mail: legal@authid.ai

 

With a copy (for informational purposes only) to:

 

Arnold & Porter Kaye Scholer LLP

250 West 55th Street

New York, NY 10019-1970

Telephone: (212) 836-8861

Attention: Christopher Peterson, Esq.

 

If to a Buyer, to its address, e-mail
address and facsimile number set forth on the Schedule of Buyers to the Securities Purchase Agreement, with copies to such Buyer’s
representatives as set forth on the Schedule of Buyers, or in each case, to such other address, e-mail address and/or facsimile number
and/or to the attention of such other Person as the recipient party has specified by written notice given to each other party five (5)
days prior to the effectiveness of such change.

 

Written confirmation of receipt (A) given by the
recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s facsimile
machine or e-mail containing the time, date, recipient facsimile number or e-mail address, as applicable, and, with respect to each facsimile
transmission, an image of the first page of such transmission or (C) provided by an overnight courier service shall be rebuttable evidence
of personal service, receipt by facsimile or e-mail or receipt from an overnight courier service in accordance with clause (i), (ii) or
(iii) above, respectively.

 

    	 	16	 

     

    

 

(c) Failure
of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or remedy,
shall not operate as a waiver thereof. The Company and each Investor acknowledge and agree that irreparable damage would occur in the
event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached.
It is accordingly agreed that each party hereto shall be entitled to an injunction or injunctions to prevent or cure breaches of the provisions
of this Agreement by any other party hereto and to enforce specifically the terms and provisions hereof (without the necessity of showing
economic loss and without any bond or other security being required), this being in addition to any other remedy to which any party may
be entitled by law or equity.

 

(d) All
questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws
of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New
York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. Each
party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough
of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed
herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue
of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process
being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under
this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained
herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY
WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION
HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

(e) If
any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction,
the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that
it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining
provisions of this Agreement so long as this Agreement as so modified continues to express, without material change, the original intentions
of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question
does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the
benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited,
invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited,
invalid or unenforceable provision(s).

 

(f) This
Agreement, the other Transaction Documents, the schedules and exhibits attached hereto and thereto and the instruments referenced herein
and therein constitute the entire agreement among the parties hereto and thereto solely with respect to the subject matter hereof and
thereof. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein and therein.
This Agreement, the other Transaction Documents, the schedules and exhibits attached hereto and thereto and the instruments referenced
herein and therein supersede all prior agreements and understandings among the parties hereto solely with respect to the subject matter
hereof and thereof; provided, however, nothing contained in this Agreement or any other Transaction Document shall (or shall be deemed
to) (i) have any effect on any agreements any Investor has entered into with the Company or any of its Subsidiaries prior to the date
hereof with respect to any prior investment made by such Investor in the Company, (ii) waive, alter, modify or amend in any respect any
obligations of the Company or any of its Subsidiaries or any rights of or benefits to any Investor or any other Person in any agreement
entered into prior to the date hereof between or among the Company and/or any of its Subsidiaries and any Investor and all such agreements
shall continue in full force and effect or (iii) limit any obligations of the Company under any of the other Transaction Documents.

 

    	 	17	 

     

    

 

(g) Subject
to compliance with Section 9 (if applicable), this Agreement shall inure to the benefit of and be binding upon the permitted successors
and assigns of each of the parties hereto. This Agreement is not for the benefit of, nor may any provision hereof be enforced by, any
Person, other than the parties hereto, their respective permitted successors and assigns and the Persons referred to in Sections 6 and
7 hereof.

 

(h) The
headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. Unless the
context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine, feminine, neuter, singular and plural
forms thereof. The terms “including,” “include” and words of like import shall be construed broadly as if followed
by the words “without limitation.” The terms “herein,” “hereunder,” “hereof” and words
of like import refer to this entire Agreement instead of just the provision in which they are found.

 

(i) This
Agreement may be executed in two or more identical counterparts, each of which shall be deemed an original, but all of which shall be
considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the
other party. In the event that any signature is delivered by facsimile transmission or by an email which contains a portable document
format (.pdf) file of an executed signature page, such signature page shall create a valid and binding obligation of the party executing
(or on whose behalf such signature is executed) with the same force and effect as if such signature page were an original thereof.

 

(j) Each
party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such
other agreements, certificates, instruments and documents as any other party may reasonably request in order to carry out the intent and
accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

(k) The
language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rules of
strict construction will be applied against any party. Notwithstanding anything to the contrary set forth in Section 10, terms used in
this Agreement but defined in the other Transaction Documents shall have the meanings ascribed to such terms on the Closing Date in such
other Transaction Documents unless otherwise consented to in writing by each Investor.

 

(l) All
consents and other determinations required to be made by the Investors pursuant to this Agreement shall be made, unless otherwise specified
in this Agreement, by the Required Holders, determined as if all of the outstanding Notes then held by the Investors have been converted
for Registrable Securities without regard to any limitations on redemption, amortization and/or conversion of the Notes then held by Investors
have been exercised for Registrable Securities.

 

(m) This
Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the
benefit of, nor may any provision hereof be enforced by, any other Person.

 

(n) The
obligations of each Investor under this Agreement and the other Transaction Documents are several and not joint with the obligations of
any other Investor, and no Investor shall be responsible in any way for the performance of the obligations of any other Investor under
this Agreement or any other Transaction Document. Nothing contained herein or in any other Transaction Document, and no action taken by
any Investor pursuant hereto or thereto, shall be deemed to constitute the Investors as, and the Company acknowledges that the Investors
do not so constitute, a partnership, an association, a joint venture or any other kind of group or entity, or create a presumption that
the Investors are in any way acting in concert or as a group or entity with respect to such obligations or the transactions contemplated
by the Transaction Documents or any matters, and the Company acknowledges that the Investors are not acting in concert or as a group,
and the Company shall not assert any such claim, with respect to such obligations or the transactions contemplated by this Agreement or
any of the other the Transaction Documents. Each Investor shall be entitled to independently protect and enforce its rights, including,
without limitation, the rights arising out of this Agreement or out of any other Transaction Documents, and it shall not be necessary
for any other Investor to be joined as an additional party in any proceeding for such purpose. The use of a single agreement with respect
to the obligations of the Company contained herein was solely in the control of the Company, not the action or decision of any Investor,
and was done solely for the convenience of the Company and not because it was required or requested to do so by any Investor. It is expressly
understood and agreed that each provision contained in this Agreement and in each other Transaction Document is between the Company and
an Investor, solely, and not between the Company and the Investors collectively and not between and among Investors.

 

[signature page follows]

 

    	 	18	 

     

    

 

SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT

 

IN WITNESS WHEREOF, each Buyer
and the Company have caused their respective signature page to this Agreement to be duly executed as of the date first written above.

 

	 	COMPANY:
	 	IPSIDY INC.  
	 	 
	 	By:  	 
	 	 	Name: Stuart Stoller
	 	 	Title: Chief Financial Officer

 

     

     

    

 

SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT

 

IN WITNESS WHEREOF, each Buyer and the Company
have caused their respective signature page to this Registration Rights Agreement to be duly executed as of the date first written above.

 

	 	BUYER:
	 	 
	 	[NAME]
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

     

     

    

 

EXHIBIT A

 

SELLING STOCKHOLDERS

 

The shares of common stock
being offered by the selling shareholders are those issuable to the selling shareholders upon conversion of the notes. For additional
information regarding the issuance of the notes, see “Private Placement of Notes” above. We are registering the shares of
common stock in order to permit the selling shareholders to offer the shares for resale from time to time. Except for the ownership of
the notes issued pursuant to the Securities Purchase Agreement, the selling shareholders have not had any material relationship with us
within the past three years.

 

The table below lists the
selling shareholders and other information regarding the beneficial ownership (as determined under Section 13(d) of the Securities Exchange
Act of 1934, as amended, and the rules and regulations thereunder) of the shares of common stock held by each of the selling shareholders.
The second column lists the number of shares of common stock beneficially owned by the selling shareholders, based on their respective
ownership of shares of common stock and notes, as of __________, 2022, assuming conversion of the notes held by each such selling shareholder
on that date but taking account of any limitations on conversion set forth therein.

 

The third column lists the
shares of common stock being offered by this prospectus by the selling shareholders and does not take in account any limitations on conversion
of the notes set forth therein.

 

In accordance with the terms
of a registration rights agreement with the holders of the notes, this prospectus generally covers the resale of all of the Registrable
Securities. The fourth column assumes the sale of all of the shares offered by the selling shareholders pursuant to this prospectus.

 

Under the terms of the notes,
a selling shareholder may not convert the notes to the extent (but only to the extent) such selling shareholder or any of its affiliates
would beneficially own a number of shares of common stock which would exceed 9.99% of the outstanding shares of the Company. The notes
also provide that if the issuance of shares of common stock to a selling shareholder who is an officer or director of the Company (or
an entity affiliated with any such officer or director) pursuant to the notes or any related document would be (i) subject to Rule 5635(c)
of The Nasdaq Stock Market (or any successor to such rule) (“Rule 5635(c)”) and (ii) deemed to be at a price less than $2.99,
then the number of shares to be issued to such selling shareholder upon any such conversion, redemption, payment of interest or other
issuance will be recalculated to ensure that the value of any such shares is at least equal to $2.99 per share and will otherwise be in
conformity with exclusion from Rule 5635(c) and the related interpretations of The Nasdaq Stock Market. Additionally, the terms of the
notes provide that unless and until the Company obtains (i) shareholder approval to issue 20% or more of common stock outstanding
at the time the Note is originally issued in accordance with Rule 5635(d) of The Nasdaq Stock Market (or any successor to such rule) (“Rule
5635(d)”) or (ii) a written opinion (that is reasonably satisfactory to the applicable holder) from outside counsel to the Company
that such approval is not required, if the Company is required to deliver shares of common stock to the holders of the notes or pursuant
to any related documents (upon conversion, redemption, as payment of interest or otherwise) and such number of shares, in the aggregate
with all other shares of common stock previously delivered by us to (x) all noteholders pursuant to the notes and the other related documents
and (y) the purchasers of any other securities that are required to be aggregated for purposes of Rule 5635(d) with the transactions
contemplated by the notes, would exceed 19.99% of common stock outstanding on the date that the notes were first issued, we will pay to
each holder the value of any the holder’s shares that are subject to the foregoing 19.99% limitation in cash (with the value of
each such excess share equal to the arithmetic average of the volume-weighted average price (as calculated under the notes) of common
stock for each of the ten trading days immediately preceding the date any such payment is due). The numbers of shares in the second column
reflect these limitations. The selling shareholders may sell all, some or none of their shares in this offering. See “Plan of Distribution.”

 

	Name
of Selling Stockholder	 	Number of Shares of Common Stock Owned Prior to Offering	 	Maximum Number of Shares of Common Stock to be Sold Pursuant to this Prospectus	 	Number of Shares of Common Stock of Owned After Offering
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

	(1)	[      ]

 

    	 	A-2	 

     

    

 

PLAN OF DISTRIBUTION

 

We are registering the shares
of common stock issuable upon conversion of the notes to permit the resale of these shares of common stock by the holders of the notes
from time to time after the date of this prospectus. We will not receive any of the proceeds from the sale by the selling shareholders
of the shares of common stock. We will bear all fees and expenses incident to our obligation to register the shares of common stock.

 

The selling shareholders may
sell all or a portion of the shares of common stock held by them and offered hereby from time to time directly or through one or more
underwriters, broker-dealers or agents. If the shares of common stock are sold through underwriters or broker-dealers, the selling shareholders
will be responsible for underwriting discounts or commissions or agent’s commissions. The shares of common stock may be sold in
one or more transactions at fixed prices, at prevailing market prices at the time of the sale, at varying prices determined at the time
of sale or at negotiated prices. These sales may be effected in transactions, which may involve crosses or block transactions, pursuant
to one or more of the following methods:

 

		●	on any national securities exchange or quotation service on which the securities may be listed or quoted
at the time of sale;
	 	 	 

		●	in the over-the-counter market;
	 	 	 

		●	in transactions otherwise than on these exchanges or systems or in the over-the-counter market;
	 	 	 

		●	through the writing or settlement of options, whether such options are listed on an options exchange or
otherwise;
	 	 	 

		●	ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;
	 	 	 

		●	block trades in which the broker-dealer will attempt to sell the shares as agent but may position and
resell a portion of the block as principal to facilitate the transaction;
	 	 	 

		●	purchases by a broker-dealer as principal and resale by the broker-dealer for its account;
	 	 	 

		●	an exchange distribution in accordance with the rules of the applicable exchange;
	 	 	 

		●	privately negotiated transactions;
	 	 	 

		●	short sales made after the date the Registration Statement is declared effective by the SEC;
	 	 	 

		●	broker-dealers may agree with a selling security holder to sell a specified number of such shares at a
stipulated price per share;
	 	 	 

		●	a combination of any such methods of sale; and
	 	 	 

		●	any other method permitted pursuant to applicable law.

 

The selling shareholders may
also sell shares of common stock under Rule 144 promulgated under the Securities Act of 1933, as amended, if available, rather than under
this prospectus. In addition, the selling shareholders may transfer the shares of common stock by other means not described in this prospectus.
If the selling shareholders effect such transactions by selling shares of common stock to or through underwriters, broker-dealers or agents,
such underwriters, broker-dealers or agents may receive commissions in the form of discounts, concessions or commissions from the selling
shareholders or commissions from purchasers of the shares of common stock for whom they may act as agent or to whom they may sell as principal
(which discounts, concessions or commissions as to particular underwriters, broker-dealers or agents may be in excess of those customary
in the types of transactions involved). In connection with sales of the shares of common stock or otherwise, the selling shareholders
may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the shares of common stock in the
course of hedging in positions they assume. The selling shareholders may also sell shares of common stock short and deliver shares of
common stock covered by this prospectus to close out short positions and to return borrowed shares in connection with such short sales.
The selling shareholders may also loan or pledge shares of common stock to broker-dealers that in turn may sell such shares.

 

    	 	A-3	 

     

    

 

The selling shareholders may
pledge or grant a security interest in some or all of the notes or shares of common stock owned by them and, if they default in the performance
of their secured obligations, the pledgees or secured parties may offer and sell the shares of common stock from time to time pursuant
to this prospectus or any amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act amending,
if necessary, the list of selling shareholders to include the pledgee, transferee or other successors in interest as selling shareholders
under this prospectus. The selling shareholders also may transfer and donate the shares of common stock in other circumstances in which
case the transferees, donees, pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus.

 

To the extent required by
the Securities Act and the rules and regulations thereunder, the selling shareholders and any broker-dealer participating in the distribution
of the shares of common stock may be deemed to be “underwriters” within the meaning of the Securities Act, and any commission
paid, or any discounts or concessions allowed to, any such broker-dealer may be deemed to be underwriting commissions or discounts under
the Securities Act. At the time a particular offering of the shares of common stock is made, a prospectus supplement, if required, will
be distributed, which will set forth the aggregate amount of shares of common stock being offered and the terms of the offering, including
the name or names of any broker-dealers or agents, any discounts, commissions and other terms constituting compensation from the selling
shareholders and any discounts, commissions or concessions allowed or re-allowed or paid to broker-dealers.

 

Under the securities laws
of some states, the shares of common stock may be sold in such states only through registered or licensed brokers or dealers. In addition,
in some states the shares of common stock may not be sold unless such shares have been registered or qualified for sale in such state
or an exemption from registration or qualification is available and is complied with.

 

There can be no assurance
that any selling shareholder will sell any or all of the shares of common stock registered pursuant to the registration statement of which
this prospectus forms a part.

 

The selling shareholders and
any other person participating in such distribution will be subject to applicable provisions of the Securities Exchange Act of 1934, as
amended, and the rules and regulations thereunder, including, without limitation, to the extent applicable, Regulation M of the Exchange
Act, which may limit the timing of purchases and sales of any of the shares of common stock by the selling shareholders and any other
participating person. To the extent applicable, Regulation M may also restrict the ability of any person engaged in the distribution of
the shares of common stock to engage in market-making activities with respect to the shares of common stock. All of the foregoing may
affect the marketability of the shares of common stock and the ability of any person or entity to engage in market-making activities with
respect to the shares of common stock.

 

We will pay all expenses of
the registration of the shares of common stock pursuant to the registration rights agreement, estimated to be $[●] in total, including,
without limitation, Securities and Exchange Commission filing fees and expenses of compliance with state securities or “blue sky”
laws; provided, however, a selling shareholder will pay all underwriting discounts and selling commissions, if any. We will indemnify
the selling shareholders against liabilities, including some liabilities under the Securities Act in accordance with the registration
rights agreements or the selling shareholders will be entitled to contribution. We may be indemnified by the selling shareholders against
civil liabilities, including liabilities under the Securities Act that may arise from any written information furnished to us by the selling
shareholder specifically for use in this prospectus, in accordance with the related registration rights agreements or we may be entitled
to contribution.

 

Once sold under the registration
statement, of which this prospectus forms a part, the shares of common stock will be freely tradable in the hands of persons other than
our affiliates.

 

    	 	A-4

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