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relt_ex101.htm

EXHIBIT 10.1
  
 2021 EQUITY INCENTIVE PLAN
  
 TABLE OF CONTENTS
  
 	 ARTICLE I. PREAMBLE
	 1
	  

	 ARTICLE II. DEFINITIONS
	 1
	  

	 ARTICLE III. ADMINISTRATION
	 6
	  

	 ARTICLE IV. NONQUALIFIED STOCK OPTIONS
	 10
	  

	 ARTICLE V. INCIDENTS OF STOCK OPTIONS
	 11
	  

	 ARTICLE VI. RESTRICTED STOCK
	 13
	  

	 ARTICLE VII. STOCK AWARDS
	 15
	  

	 ARTICLE VIII. PERFORMANCE SHARES
	 16
	  

	 ARTICLE IX. CHANGES OF CONTROL OR OTHER FUNDAMENTAL CHANGES
	 17
	  

	 ARTICLE X. AMENDMENT AND TERMINATION
	 18
	  

	 ARTICLE XI. SECURITIES MATTERS AND REGULATIONS
	 19
	  

	 ARTICLE XII. SECTION 409A OF THE CODE
	 20
	  

	 ARTICLE XIII. MISCELLANEOUS PROVISIONS
	 20
	  

  
 2021 Equity Incentive Plan
 Reliant Holdings, Inc.
  
  	 
	
	

	 

  
 RELIANT HOLDINGS, INC.
 2021 EQUITY INCENTIVE PLAN
  
 ARTICLE I. 
PREAMBLE
  
 1.1. This 2021 Equity Incentive Plan of Reliant Holdings, Inc. (the “Company”) is intended to secure for the Company and its Affiliates the benefits arising from ownership of the Company’s Common Stock by the Employees, Officers, Directors and Consultants of the Company and its Affiliates, all of whom are and will be responsible for the Company’s future growth. The Plan is designed to help attract and retain for the Company and its Affiliates personnel of superior ability for positions of exceptional responsibility, to reward Employees, Officers, Directors and Consultants for their services and to motivate such individuals through added incentives to further contribute to the success of the Company and its Affiliates. With respect to persons subject to Section 16 of the Act, transactions under this Plan are intended to satisfy the requirements of Rule 16b-3 of the Act.
  
 1.2. Awards under the Plan may be made to an Eligible Person in the form of (i) Nonqualified Stock Options; (ii) Restricted Stock; (iii) Stock Awards; (iv) Performance Shares; or (v) any combination of the foregoing.
  
 1.3. The Company’s Board of Directors adopted the Plan on June 15, 2021 (the “Adoption Date”). Unless sooner terminated as provided elsewhere in this Plan, this Plan shall terminate upon the close of business on the day next preceding the tenth (10th) anniversary of the Adoption Date. Award Agreements outstanding on such date shall continue to have force and effect in accordance with the provisions thereof.
  
 1.4. The Plan shall be governed by, and construed in accordance with, the laws of the State of Nevada (except its choice-of-law provisions).
  
 1.5. Capitalized terms shall have the meaning provided in ARTICLE II unless otherwise provided in this Plan or any related Award Agreement.
  
 ARTICLE II.
DEFINITIONS
  
 DEFINITIONS. Except where the context otherwise indicates, the following definitions apply:
  
 2.1. “Act” means the Securities Exchange Act of 1934, as now in effect or as hereafter amended.
  
 2.2. “Adoption Date” has the meaning given to such term in Section 1.3.
  
 2.3. “Administrator” means the Board or a Committee.
  
 2.4. “Affiliate” means any parent corporation or subsidiary corporation of the Company, whether now or hereinafter existing, as those terms are defined in Sections 424(e) and (f), respectively, of the Code.
  
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 2.5. “Applicable Laws” means all applicable laws, rules, regulations and requirements, including, but not limited to, all applicable U.S. federal, state or local laws, any Stock Exchange rules or regulations and the applicable laws, rules or regulations of any other country or jurisdiction where Awards are granted under the Plan or Participants reside or provide services, as such laws, rules and regulations shall be in effect from time to time.
  
 2.6. “Available Shares” means 2,500,000 shares of Common Stock.
  
 2.7. “Award” means an award granted to a Participant in accordance with the provisions of the Plan, including, but not limited to, Stock Options, Restricted Stock, Stock Awards, Performance Shares, or any combination of the foregoing.
  
 2.8. “Award Agreement” means the separate written agreement evidencing each Award granted to a Participant under the Plan.
  
 2.9. “Board of Directors” or “Board” means the Board of Directors of the Company, as constituted from time to time.
  
 2.10. “Bylaws” means the Company’s Bylaws as amended and restated from time to time.
  
 2.11. “Change of Control” means (i) the adoption of a plan of merger or consolidation of the Company with any other corporation or association as a result of which the holders of the voting capital stock of the Company as a group would receive less than 50% of the voting capital stock of the surviving or resulting corporation; (ii) the approval by the Board of Directors of an agreement providing for the sale or transfer (other than as security for obligations of the Company) of substantially all the assets of the Company; or (iii) in the absence of a prior expression of approval by the Board of Directors, the acquisition of more than 20% of the Company’s voting capital stock by any person within the meaning of Rule 13d-3 under the Act (other than the Company or a person that directly or indirectly controls, is controlled by, or is under common control with, the Company).
  
 2.12. “Code” means the Internal Revenue Code of 1986, as amended, and the regulations and interpretations promulgated thereunder.
  
 2.13. “Committee” means a committee of two or more members of the Board appointed by the Board in accordance with Section 3.2 of the Plan. In the event the Company has not designated a Committee pursuant to Section 3.2 of the Plan, “Committee” shall refer to the Compensation Committee of the Company (in the event the Company has a Compensation Committee and it has authority to administer the Plan), if any, or the Board of Directors of the Company.
  
 2.14. “Common Stock” means the Company’s common stock.
  
 2.15. “Company” means Reliant Holdings, Inc., a Nevada corporation.
  
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 2.16. “Consultant” means any person, including an advisor engaged by the Company or an Affiliate to render bona fide consulting or advisory services to the Company or an Affiliate, other than as an Employee, Director or Non-Employee Director.
  
 2.17. “Continuous Service Status” means the absence of any interruption or termination of service as an Employee or Consultant (unless otherwise provided for in the applicable Award Agreement), as determined by the Administrator in good faith and subject to Applicable Laws. Subject to Applicable Laws, the Administrator shall determine whether a leave of absence, or absence in military or government service, shall constitute an interruption of Continuous Service Status; provided, however, that, the Administrator shall not have any such discretion to the extent that the grant of such discretion would cause any tax to become due under Section 409A of the Code. Also, Continuous Service Status as an Employee or Consultant shall not be considered interrupted or terminated in the case of a transfer between locations of the Company or between the Company, its subsidiaries or Affiliates, or their respective successors.
  
 2.18. “Director” means a member of the Board of Directors of the Company.
  
 2.19. “Disability” means the permanent and total disability of a person within the meaning of Section 22(e)(3) of the Code.
  
 2.20. “Eligible Employee” means an Eligible Person who is an Employee of the Company or any Affiliate.
  
 2.21. “Eligible Person” means any Employee, Officer, Director, Non-Employee Director or Consultant of the Company or any Affiliate, except for instances where services are in connection with the offer or sale of securities in a capital-raising transaction, or they directly or indirectly promote or maintain a market for the Company’s securities, subject to any other limitations as may be provided by the Code, the Act, or the Administrator. In making such determinations, the Administrator may take into account the nature of the services rendered by such person, his or her present and potential contribution to the Company’s success, and such other factors as the Administrator in its discretion shall deem relevant.
  
 2.22. “Employee” means an individual who is a common-law employee of the Company or an Affiliate including employment as an Officer. Mere service as a Director or payment of a director’s fee by the Company or an Affiliate shall not be sufficient to constitute “employment” by the Company or an Affiliate.
  
 2.23. “ERISA” means the Employee Retirement Income Security Act of 1974, as now in effect or as hereafter amended.
  
 2.24. “Fair Market Value” means, as of any date and unless the Administrator determines otherwise, the value of Common Stock determined as follows:
  
 2.24.1 If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the NYSE American, Nasdaq National Market or The Nasdaq Capital Market of The Nasdaq Stock Market, its Fair Market Value will be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable;
  
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 2.24.2 If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported for the date in question, or the Common Stock is quoted on an over-the-counter market, the Fair Market Value will be the mean between the high bid and low asked prices for the Common Stock for the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or
  
 2.24.3 In the absence of an established market for the Common Stock, the Fair Market Value will be determined in good faith by the Administrator.
  
 2.24.4 The Administrator may also adopt a different methodology for determining Fair Market Value with respect to one or more Awards if a different methodology is necessary or advisable to secure any intended favorable tax, legal or other treatment for the particular Award(s) (for example, and without limitation, the Administrator may provide that Fair Market Value for purposes of one or more Awards will be based on an average of closing prices (or the average of high and low daily trading prices) for a specified period preceding the relevant date).
  
 2.25. “Grant Date” means, as to any Award, the latest of:
  
 2.25.1 the date on which the Administrator authorizes the grant of the Award; or
  
 2.25.2 the date the Participant receiving the Award becomes an Employee or a Director of the Company or its Affiliate, to the extent employment status is a condition of the grant or a requirement of the Code or the Act; or
  
 2.25.3 such other date (later than the dates described in 2.25.1 and 2.25.2 above) as the Administrator may designate and as set forth in the Participant’s Award Agreement.
  
 2.26. “Immediate Family” means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law and shall include adoptive relationships.
  
 2.27. “Incentive Stock Option” means a Stock Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code.
  
 2.28. “Non-Employee Director” shall have the meaning set forth in Rule 16b-3 under the Act.
  
 2.29. “Nonqualified Stock Option” means a Stock Option not intended to qualify as an Incentive Stock Option and is not so designated in the Participant’s Award Agreement.
  
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 2.30. “Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Act.
  
 2.31. “Option Period” means the period during which a Stock Option may be exercised from time to time, as established by the Administrator and set forth in the Award Agreement for each Participant who is granted a Stock Option.
  
 2.32. “Option Price” means the purchase price for a share of Common Stock subject to purchase pursuant to a Stock Option, as established by the Administrator and set forth in the Award Agreement for each Participant who is granted a Stock Option.
  
 2.33. “Outside Director” means a Director who either (i) is not a current employee of the Company or an “affiliated corporation” (within the meaning of Treasury Regulations promulgated under Section 162(m) of the Code), is not a former employee of the Company or an “affiliated corporation” receiving compensation for prior services (other than benefits under a tax qualified pension plan), was not an officer of the Company or an “affiliated corporation” at any time and is not currently receiving direct or indirect remuneration from the Company or an “affiliated corporation” for services in any capacity other than as a Director or (ii) is otherwise considered an “outside director” for purposes of Section 162(m) of the Code.
  
 2.34. “Participant” means an Eligible Person to whom an Award has been granted and who has entered into an Award Agreement evidencing the Award or, if applicable, such other person who holds an outstanding Award.
  
 2.35. “Performance Objectives” shall have the meaning set forth in ARTICLE VIII of the Plan.
  
 2.36. “Performance Period” shall have the meaning set forth in ARTICLE VIII of the Plan.
  
 2.37. “Performance Share” means an Award under ARTICLE VIII of the Plan of a unit valued by reference to the Common Stock, the payout of which is subject to achievement of such Performance Objectives, measured during one or more Performance Periods, as the Administrator, in its sole discretion, shall establish at the time of such Award and set forth in a Participant’s Award Agreement.
  
 2.38. “Plan” means this Reliant Holdings, Inc. 2021 Equity Incentive Plan, as it may be amended from time to time.
  
 2.39. “Reporting Person” means a person required to file reports under Section 16(a) of the Act.
  
 2.40. “Restricted Stock” means an Award under ARTICLE VI of the Plan of shares of Common Stock that are at the time of the Award subject to restrictions or limitations as to the Participant’s ability to sell, transfer, pledge or assign such shares, which restrictions or limitations may lapse separately or in combination at such time or times, in installments or otherwise, as the Administrator, in its sole discretion, shall determine at the time of such Award and set forth in a Participant’s Award Agreement.
  
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 2.41. “Restriction Period” means the period commencing on the Grant Date with respect to such shares of Restricted Stock and ending on such date as the Administrator, in its sole discretion, shall establish and set forth in a Participant’s Award Agreement.
  
 2.42. “Retirement” means retirement as determined under procedures established by the Administrator or in any Award, as set forth in a Participant’s Award Agreement.
  
 2.43. “Rule 16b-3” means Rule 16b-3 promulgated under the Act or any successor to Rule 16b-3, as in effect from time to time. Those provisions of the Plan which make express reference to Rule 16b-3, or which are required in order for certain option transactions to qualify for exemption under Rule 16b-3, shall apply only to a Reporting Person.
  
 2.44. “Shares” means shares of Common Stock issued in connection with Awards granted under this Plan, including, where applicable, upon exercise of Stock Options granted under this Plan.
  
 2.45. “Stock Exchange” means any stock exchange or consolidated stock price reporting system (including, but not limited to NASDAQ) on which prices for the Common Stock are quoted at any given time.
  
 2.46. “Stock Award” means an Award of shares of Common Stock under ARTICLE VII of the Plan.
  
 2.47. “Stock Option” means an Award under ARTICLE IV of the Plan of an option to purchase Common Stock. A Stock Option may not be an Incentive Stock Option and may only be a Nonqualified Stock Option.
  
 2.48. “Termination of Service” means (i) in the case of an Eligible Employee, the discontinuance of employment of such Participant with the Company or its Subsidiaries for any reason other than a transfer to another member of the group consisting of the Company and its Affiliates and (ii) in the case of a Director who is not an Employee of the Company or any Affiliate, the date such Participant ceases to serve as a Director. The determination of whether a Participant has discontinued service shall be made by the Administrator in its sole discretion. In determining whether a Termination of Service has occurred, the Administrator may provide that service as a Consultant or service with a business enterprise in which the Company has a significant ownership interest shall be treated as employment with the Company.
  
 ARTICLE III.
ADMINISTRATION
  
 3.1. The Plan shall be administered by the Administrator and shall be administered, to the extent applicable, in accordance with Rule 16b-3. The Administrator shall have the exclusive right to interpret and construe the Plan, to select the Eligible Persons who shall receive an Award, and to act in all matters pertaining to the grant of an Award and the determination and interpretation of the provisions of the related Award Agreement, including, without limitation, the determination of the number of shares subject to Stock Options and the Option Period(s) and Option Price(s) thereof, the number of shares of Restricted Stock or shares subject to Stock Awards or Performance Shares subject to an Award, the vesting periods (if any) and the form, terms, conditions and duration of each Award, and any amendment thereof consistent with the provisions of the Plan. The Administrator may adopt, establish, amend and rescind such rules, regulations and procedures as it may deem appropriate for the proper administration of the Plan, make all other determinations which are, in the Administrator’s judgment, necessary or desirable for the proper administration of the Plan, amend the Plan or a Stock Award as provided in ARTICLE X, and terminate or suspend the Plan as provided in ARTICLE X. All acts, determinations and decisions of the Administrator made or taken pursuant to the Plan or with respect to any questions arising in connection with the administration and interpretation of the Plan or any Award Agreement, including the severability of any and all of the provisions thereof, shall be conclusive, final and binding upon all persons. On or after the date of grant of an Award under the Plan, the Administrator may (i) accelerate the date on which any such Award becomes vested, exercisable or transferable, as the case may be, (ii) extend the term of any such Award, including, without limitation, extending the period following a termination of a Participant’s employment during which any such Award may remain outstanding, or (iii) waive any conditions to the vesting, exercisability or transferability, as the case may be, of any such Award; provided, that the Administrator shall not have any such authority to the extent that the grant of such authority would cause any tax to become due under Section 409A of the Code.
  
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 3.2. The Administrator may, to the full extent permitted by and consistent with Applicable Law and the Company’s Bylaws, and subject to Subparagraph 3.2.1 herein below, delegate any or all of its powers with respect to the administration of the Plan to the Company’s Compensation Committee (if any) or another Committee of the Company consisting of not fewer than two members of the Board each of whom shall qualify (at the time of appointment to the Committee and during all periods of service on the Committee) in all respects as a Non-Employee Director and as an Outside Director.
  
 3.2.1 If administration is delegated to a Committee, the Committee shall have, in connection with the administration of the Plan, the powers theretofore possessed by the Administrator as set forth herein, including the power to delegate to a subcommittee any of the administrative powers the Committee is authorized to exercise (and references in the Plan to the Administrator shall thereafter be to the Committee or subcommittee), subject, however, to such resolutions, not consistent with the provisions of the Plan, as may be adopted from time to time by the Board.
  
 3.2.2 The Board may abolish the Committee at any time and reassume all powers and authority previously delegated to the Committee.
  
 3.2.3 In addition to, and not in limitation of, the right of Administrator, the full Board of Directors and/or the Company’s Compensation Committee (if any) may from time to time grant Awards to Eligible Persons pursuant to the terms and conditions of this Plan, subject to the requirements of the Code, Rule 16b-3 under the Act or any other Applicable Law, rule or regulation. In connection with any such grants, the Board of Directors and/or the Company’s Compensation Committee shall have all of the power and authority of the Administrator to determine the Eligible Persons to whom such Awards shall be granted and the other terms and conditions of such Awards.
  
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 3.3. Without limiting the provisions of this ARTICLE III, and subject to the provisions of ARTICLE IX, the Administrator is authorized to take such action as it determines to be necessary or advisable, and fair and equitable to Participants and to the Company, with respect to an outstanding Award in the event of a Change of Control as described in ARTICLE IX or other similar event. Such action may include, but shall not be limited to, establishing, amending or waiving the form, terms, conditions and duration of an Award and the related Award Agreement, so as to provide for earlier, later, extended or additional times for exercise or payments, differing methods for calculating payments, alternate forms and amounts of payment, an accelerated release of restrictions or other modifications. The Administrator may take such actions pursuant to this Section 3.3 by adopting rules and regulations of general applicability to all Participants or to certain categories of Participants, by including, amending or waiving terms and conditions in an Award and the related Award Agreement, or by taking action with respect to individual Participants from time to time. In the event any Award is not evidenced by a written Award Agreement, such Award shall be governed by the terms of this Plan and the terms and conditions of the grant of the Award as evidenced by the minutes of the Board (or any authorized Committee thereof). For the sake of clarity, the failure of the Company to document an Award by way of a written Award Agreement shall not affect the validity of such Award.
  
 3.4. Subject to the provisions of Section 3.9 and this Section 3.4, the maximum aggregate number of shares of Common Stock which may be issued pursuant to Awards under the Plan shall be the Available Shares. Such shares of Common Stock shall be made available from authorized and unissued shares of the Company.
  
 3.4.1 For all purposes under the Plan, each Performance Share awarded shall be counted as one share of Common Stock subject to an Award.
  
 3.4.2 If, for any reason, any shares of Common Stock (including shares of Common Stock subject to Performance Shares) that have been awarded or are subject to issuance or purchase pursuant to Awards outstanding under the Plan are not delivered or purchased, or are reacquired by the Company, for any reason, including but not limited to a forfeiture of Restricted Stock or failure to earn Performance Shares or the termination, expiration or cancellation of a Stock Option, or any other termination of an Award without payment being made in the form of shares of Common Stock (whether or not Restricted Stock), such shares of Common Stock shall not be charged against the aggregate number of shares of Common Stock available for Award under the Plan and shall again be available for Awards under the Plan. In no event, however, may Common Stock that is surrendered or withheld to pay the exercise price of a Stock Option or to satisfy tax withholding requirements be available for future grants under the Plan.
  
 3.4.3 For purposes of clarifying the preceding paragraph, shares of Common Stock covered by Awards shall only be counted as used to the extent they are actually issued and delivered to a Participant (or such Participant’s permitted transferees as described in the Plan) pursuant to the Plan. In addition, shares of Common Stock related to Awards that expire, are forfeited or cancelled or terminate for any reason without the issuance of shares shall not be treated as issued pursuant to the Plan. 
  
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 3.4.4 The foregoing subsections 3.4.1 and 3.4.2 of this Section 3.4 shall be subject to any limitations provided by the Code or by Rule 16b-3 under the Act or by any other Applicable Law, rule or regulation.
  
 3.5. Each Award granted under the Plan shall be evidenced by a written Award Agreement, which shall be subject to and shall incorporate (by reference or otherwise) the applicable terms and conditions of the Plan and shall include any other terms and conditions (not inconsistent with the Plan) required by the Administrator. In the event any Award is not evidenced by a written Award Agreement and no written Award Agreement is contemplated by the resolutions of the Administrator approving the grant of such Award, such Award shall be governed by the terms of this Plan and the terms and conditions of the grant of the Award as evidenced by the minutes of the Administrator (or any authorized Committee thereof). For the sake of clarity, the failure of the Company to document an Award by way of a written Award Agreement shall not affect the validity of such Award, unless the resolutions of the Administrator approving such award specifically references a formal Award agreement.
  
 3.6. In the event the Plan and/or the Common Stock issuable in connection with Awards hereunder are registered with the Securities Exchange Commission (the “SEC”) under the Act on Form S-8, no registered shares of Common Stock shall be issuable by the Company under the Plan and pursuant to such registration statement, (a) except to natural persons (as such term is interpreted by the SEC); and (b) except where such persons provide bona fide services to the Company; and no such registered shares shall be issuable (i) in connection with services associated with the offer or sale of securities in a capital-raising transaction; or (ii) where the services directly or indirectly promote or maintain a market for the Company’s securities.
  
 3.7. The Administrator may require any Participant acquiring shares of Common Stock pursuant to any Award under the Plan to represent to and agree with the Company in writing that such person is acquiring the shares of Common Stock for investment purposes and without a view to resale or distribution thereof. Shares of Common Stock issued and delivered under the Plan shall also be subject to such stop-transfer orders and other restrictions as the Administrator may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any Stock Exchange upon which the Common Stock is then listed and any applicable federal or state laws, and the Administrator may cause a legend or legends to be placed on the certificate or certificates representing any such shares to make appropriate reference to any such restrictions. In making such determination, the Administrator may rely upon an opinion of counsel for the Company.
  
 3.8. Except as otherwise expressly provided in the Plan or in an Award Agreement with respect to an Award, no Participant shall have any right as a shareholder of the Company with respect to any shares of Common Stock subject to such Participant’s Award except to the extent that, and until, one or more certificates representing such shares of Common Stock shall have been delivered to the Participant. No shares shall be required to be issued, and no certificates shall be required to be delivered, under the Plan unless and until all of the terms and conditions applicable to such Award shall have, in the sole discretion of the Administrator, been satisfied in full and any restrictions shall have lapsed in full, and unless and until all of the requirements of law and of all regulatory bodies having jurisdiction over the offer and sale, or issuance and delivery, of the shares shall have been fully complied with.
  
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 3.9. The total amount of shares with respect to which Awards may be granted under the Plan, and rights of outstanding Awards (both as to the number of shares subject to the outstanding Awards and the Option Price(s) or other purchase price(s) of such shares, as applicable) shall be appropriately adjusted for any increase or decrease in the number of outstanding shares of Common Stock of the Company resulting from payment of a stock dividend on the Common Stock, a stock split or subdivision or combination of shares of the Common Stock, or a reorganization or reclassification of the Common Stock, or any other change in the structure of shares of the Common Stock. The foregoing adjustments and the manner of application of the foregoing provisions shall be determined by the Administrator in its sole discretion. Any such adjustment may provide for the elimination of any fractional shares which might otherwise become subject to an Award. 
  
 3.10. No director or person acting pursuant to authority delegated by the Administrator shall be liable for any action or determination under the Plan made in good faith. The members of the Administrator shall be entitled to indemnification by the Company in the manner and to the extent set forth in the Company’s Articles of Incorporation, as amended, Bylaws or as otherwise provided from time to time regarding indemnification of Directors.
  
 3.11. The Administrator shall be authorized to make adjustments in any performance based criteria or in the other terms and conditions of outstanding Awards in recognition of unusual or nonrecurring events affecting the Company (or any Affiliate, if applicable) or its financial statements or changes in Applicable Laws, regulations or accounting principles. The Administrator may correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award Agreement in the manner and to the extent it shall deem necessary or desirable to reflect any such adjustment. In the event the Company (or any Affiliate, if applicable) shall assume outstanding employee benefit awards or the right or obligation to make future such awards in connection with the acquisition of another corporation or business entity, the Administrator may, in its sole discretion, make such adjustments in the terms of outstanding Awards under the Plan as it shall deem appropriate.
  
 3.12. Subject to the express provisions of the Plan, the Administrator shall have full power and authority to determine whether, to what extent and under what circumstances any outstanding Award shall be terminated, canceled, forfeited or suspended. Notwithstanding the foregoing or any other provision of the Plan or an Award Agreement, all Awards to any Participant that are subject to any restriction or have not been earned or exercised in full by the Participant shall be terminated and canceled if the Participant is terminated for cause, as determined by the Administrator in its sole discretion.
  
 ARTICLE IV.
NONQUALIFIED STOCK OPTIONS
  
 4.1. The Administrator, in its sole discretion, may from time to time on or after the Adoption Date grant Nonqualified Stock Options to Eligible Persons, subject to the provisions of this ARTICLE IV and ARTICLE III or ARTICLE V and subject to the following conditions:
  
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 4.1.1 Nonqualified Stock Options may be granted to any Eligible Person, each of whom may be granted one or more of such Nonqualified Stock Options, at such time or times determined by the Administrator.
  
 4.1.2 The Option Price per share of Common Stock for a Nonqualified Stock Option shall be set in the Award Agreement and may be less than one hundred percent (100%) of the Fair Market Value of the Common Stock at the Grant Date; provided, however, that the exercise price of each Nonqualified Stock Option granted under the Plan shall in no event be less than the par value per share of the Company’s Common Stock.
  
 4.1.3 A Nonqualified Stock Option may be exercised in full or in part from time to time within the Option Period specified by the Administrator and set forth in the Award Agreement; provided, however, that, in any event, the Nonqualified Stock Option shall lapse and cease to be exercisable upon a Termination of Service or within such period following a Termination of Service as shall have been determined by the Administrator and set forth in the related Award Agreement.
  
 4.2. The Administrator may provide for any other terms and conditions for a Nonqualified Stock Option not inconsistent with this ARTICLE IV or ARTICLE III or ARTICLE V, as determined in its sole discretion and set forth in the Award Agreement for such Nonqualified Stock Option.
  
 ARTICLE V.
INCIDENTS OF STOCK OPTIONS
  
 5.1. Each Stock Option shall be granted subject to such terms and conditions, if any, not inconsistent with this Plan, as shall be determined by the Administrator and set forth in the related Award Agreement, including any provisions as to continued employment as consideration for the grant or exercise of such Stock Option and any provisions which may be advisable to comply with Applicable Laws, regulations or rulings of any governmental authority.
  
 5.2. Except as hereinafter described, a Stock Option shall not be transferable by the Participant other than by will or by the laws of descent and distribution, and shall be exercisable during the lifetime of the Participant only by the Participant or the Participant’s guardian or legal representative. In the event of the death of a Participant, any unexercised Stock Options may be exercised to the extent otherwise provided herein or in such Participant’s Award Agreement by the executor or personal representative of such Participant’s estate or by any person who acquired the right to exercise such Stock Options by bequest under the Participant’s will or by inheritance. The Administrator, in its sole discretion, may at any time permit a Participant to transfer a Nonqualified Stock Option for no consideration to or for the benefit of one or more members of the Participant’s Immediate Family (including, without limitation, to a trust for the benefit of the Participant and/or one or more members of such Participant’s Immediate Family or a corporation, partnership or limited liability company established and controlled by the Participant and/or one or more members of such Participant’s Immediate Family), subject to such limits as the Administrator may establish. The transferee of such Nonqualified Stock Option shall remain subject to all terms and conditions applicable to such Nonqualified Stock Option prior to such transfer. The foregoing right to transfer the Nonqualified Stock Option, if granted by the Administrator shall apply to the right to consent to amendments to the Award Agreement.
  
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 5.3. Shares of Common Stock purchased upon exercise of a Stock Option shall be paid for in such amounts, at such times and upon such terms as shall be determined by the Administrator, subject to limitations set forth in the Stock Option Award Agreement. The Administrator may, in its sole discretion, permit the exercise of a Stock Option by payment in cash or by tendering shares of Common Stock (either by actual delivery of such shares or by attestation), or any combination thereof, as determined by the Administrator. In the sole discretion of the Administrator, payment in shares of Common Stock also may be made with shares received upon the exercise or partial exercise of the Stock Option, whether or not involving a series of exercises or partial exercises and whether or not share certificates for such shares surrendered have been delivered to the Participant. The Administrator also may, in its sole discretion, permit the payment of the exercise price of a Stock Option by the voluntary surrender of all or a portion of the Stock Option. Shares of Common Stock previously held by the Participant and surrendered in payment of the Option Price of a Stock Option shall be valued for such purpose at the Fair Market Value thereof on the date the Stock Option is exercised. 
  
 5.4. The holder of a Stock Option shall have no rights as a shareholder with respect to any shares covered by the Stock Option (including, without limitation, any voting rights, the right to inspect or receive the Company’s balance sheets or financial statements or any rights to receive dividends or non-cash distributions with respect to such shares) until such time as the holder has exercised the Stock Option and then only with respect to the number of shares which are the subject of the exercise. No adjustment shall be made for dividends or other rights for which the record date is prior to the date such stock certificate is issued.
  
 5.5. The Administrator may permit the voluntary surrender of all or a portion of any Stock Option granted under the Plan to be conditioned upon the granting to the Participant of a new Stock Option for the same or a different number of shares of Common Stock as the Stock Option surrendered, or may require such voluntary surrender as a condition precedent to a grant of a new Stock Option to such Participant. Subject to the provisions of the Plan, such new Stock Option shall be exercisable at such Option Price, during such Option Period and on such other terms and conditions as are specified by the Administrator at the time the new Stock Option is granted. Upon surrender, the Stock Options surrendered shall be canceled and the shares of Common Stock previously subject to them shall be available for the grant of other Stock Options.
  
 5.6. The Administrator may at any time offer to purchase a Participant’s outstanding Stock Option for a payment equal to the value of such Stock Option payable in cash, shares of Common Stock or Restricted Stock or other property upon surrender of the Participant’s Stock Option, based on such terms and conditions as the Administrator shall establish and communicate to the Participant at the time that such offer is made.
  
 5.7. The Administrator shall have the discretion, exercisable either at the time the Award is granted or at the time the Participant discontinues employment, to establish as a provision applicable to the exercise of one or more Stock Options that, during a limited period of exercisability following a Termination of Service, the Stock Option may be exercised not only with respect to the number of shares of Common Stock for which it is exercisable at the time of the Termination of Service but also with respect to one or more subsequent installments for which the Stock Option would have become exercisable had the Termination of Service not occurred.
  
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 5.8. Notwithstanding anything to the contrary herein, the Company may reprice any Stock Option without the approval of the shareholders of the Company, or the holder of the Stock Option. For this purpose, “reprice” means (i) any of the following or any other action that has the same effect: (A) lowering the exercise price of a Stock Option after it is granted, (B) any other action that is treated as a repricing under U.S. generally accepted accounting principles (“GAAP”), or (C) cancelling a Stock Option at a time when its exercise price exceeds the Fair Market Value of the underlying Common Stock, in exchange for another Stock Option, restricted stock or other equity, unless the cancellation and exchange occurs in connection with a merger, acquisition, spin-off or other similar corporate transaction; and (ii) any other action that is considered to be a repricing under formal or informal guidance issued by exchange or market on which the Company’s Common Stock then trades or is quoted, provided that no repricing may (1) increase the exercise price of any Stock Option, or (2) reduce the exercise price below the Fair Market Value of the Company’s Common Stock on the date the action is taken to reduce such exercise price (without the approval of the holder thereof). 
  
 5.9. In addition to, and without limiting the above Section 5.8, the Administrator may permit the voluntary surrender of all or a portion of any Stock Option granted under the Plan to be conditioned upon the granting to the Participant of a new Stock Option for the same or a different number of shares of Common Stock as the Stock Option surrendered, or may require such voluntary surrender as a condition precedent to a grant of a new Stock Option to such Participant. Subject to the provisions of the Plan, such new Stock Option shall be exercisable at such Option Price, during such Option Period and on such other terms and conditions as are specified by the Administrator at the time the new Stock Option is granted. Upon surrender, the Stock Options surrendered shall be canceled and the shares of Common Stock previously subject to them shall be available for the grant of other Stock Options.
  
 ARTICLE VI.
RESTRICTED STOCK
  
 6.1. The Administrator, in its sole discretion, may from time to time on or after the Adoption Date award shares of Restricted Stock to Eligible Persons as a reward for past service and an incentive for the performance of future services that will contribute materially to the successful operation of the Company and its Affiliates, subject to the terms and conditions set forth in this ARTICLE VI.
  
 6.2. The Administrator shall determine the terms and conditions of any Award of Restricted Stock, which shall be set forth in the related Award Agreement, including without limitation:
  
 6.2.1 the purchase price, if any, to be paid for such Restricted Stock, which may be zero, subject to such minimum consideration as may be required by Applicable Law;
  
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 6.2.2 the duration of the Restriction Period or Restriction Periods with respect to such Restricted Stock and whether any events may accelerate or delay the end of such Restriction Period(s);
  
 6.2.3 the circumstances upon which the restrictions or limitations shall lapse, and whether such restrictions or limitations shall lapse as to all shares of Restricted Stock at the end of the Restriction Period or as to a portion of the shares of Restricted Stock in installments during the Restriction Period by means of one or more vesting schedules;
  
 6.2.4 whether such Restricted Stock is subject to repurchase by the Company or to a right of first refusal at a predetermined price or if the Restricted Stock may be forfeited entirely under certain conditions;
  
 6.2.5 whether any performance goals may apply to a Restriction Period to shorten or lengthen such period; and
  
 6.2.6 whether dividends and other distributions with respect to such Restricted Stock are to be paid currently to the Participant or withheld by the Company for the account of the Participant.
  
 6.3. Awards of Restricted Stock must be accepted within a period of thirty (30) days after the Grant Date (or such shorter or longer period as the Administrator may specify at such time) by executing an Award Agreement with respect to such Restricted Stock and tendering the purchase price, if any. A prospective recipient of an Award of Restricted Stock shall not have any rights with respect to such Award, unless such recipient has executed an Award Agreement with respect to such Restricted Stock, has delivered a fully executed copy thereof to the Administrator and has otherwise complied with the applicable terms and conditions of such Award.
  
 6.4. In the sole discretion of the Administrator and as set forth in the Award Agreement for an Award of Restricted Stock, all shares of Restricted Stock held by a Participant and still subject to restrictions shall be forfeited by the Participant upon the Participant’s Termination of Service and shall be reacquired, canceled and retired by the Company. Notwithstanding the foregoing, unless otherwise provided in an Award Agreement with respect to an Award of Restricted Stock, in the event of the death, Disability or Retirement of a Participant during the Restriction Period, or in other cases of special circumstances (including hardship or other special circumstances of a Participant whose employment is involuntarily terminated), the Administrator may elect to waive in whole or in part any remaining restrictions with respect to all or any part of such Participant’s Restricted Stock, if it finds that a waiver would be appropriate.
  
 6.5. Except as otherwise provided in this ARTICLE VI, no shares of Restricted Stock received by a Participant shall be sold, exchanged, transferred, pledged, hypothecated or otherwise disposed of during the Restriction Period.
  
 6.6. Upon an Award of Restricted Stock to a Participant, a certificate or certificates representing the shares of such Restricted Stock will be issued to and registered in the name of the Participant. Unless otherwise determined by the Administrator, such certificate or certificates will be held in custody by the Company until (i) the Restriction Period expires and the restrictions or limitations lapse, in which case one or more certificates representing such shares of Restricted Stock that do not bear a restrictive legend (other than any legend as required under applicable federal or state securities laws) shall be delivered to the Participant, or (ii) a prior forfeiture by the Participant of the shares of Restricted Stock subject to such Restriction Period, in which case the Company shall cause such certificate or certificates to be canceled and the shares represented thereby to be retired, all as set forth in the Participant’s Award Agreement. It shall be a condition of an Award of Restricted Stock that the Participant deliver to the Company a stock power endorsed in blank relating to the shares of Restricted Stock to be held in custody by the Company.
  
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 6.7. Except as provided in this ARTICLE VI or in the related Award Agreement, a Participant receiving an Award of shares of Restricted Stock Award shall have, with respect to such shares, all rights of a shareholder of the Company, including the right to vote the shares and the right to receive any distributions, unless and until such shares are otherwise forfeited by such Participant; provided, however, the Administrator may require that any cash dividends with respect to such shares of Restricted Stock be automatically reinvested in additional shares of Restricted Stock subject to the same restrictions as the underlying Award, or may require that cash dividends and other distributions on Restricted Stock be withheld by the Company or its Affiliates for the account of the Participant. The Administrator shall determine whether interest shall be paid on amounts withheld, the rate of any such interest, and the other terms applicable to such withheld amounts.
  
 ARTICLE VII.
STOCK AWARDS
  
 7.1. The Administrator, in its sole discretion, may from time to time on or after the Adoption Date grant Stock Awards to Eligible Persons in payment of compensation that has been earned or as compensation to be earned, including without limitation compensation awarded or earned concurrently with or prior to the grant of the Stock Award, subject to the terms and conditions set forth in this ARTICLE VII.
  
 7.2. For the purposes of this Plan, in determining the value of a Stock Award, all shares of Common Stock subject to such Stock Award shall be set in the Award Agreement and may be less than one hundred percent (100%) of the Fair Market Value of the Common Stock at the Grant Date.
  
 7.3. Unless otherwise determined by the Administrator and set forth in the related Award Agreement, shares of Common Stock subject to a Stock Award will be issued, and one or more certificates representing such shares will be delivered, to the Participant as soon as practicable following the Grant Date of such Stock Award. Upon the issuance of such shares and the delivery of one or more certificates representing such shares to the Participant, such Participant shall be and become a shareholder of the Company fully entitled to receive dividends, to vote and to exercise all other rights of a shareholder of the Company. Notwithstanding any other provision of this Plan, unless the Administrator expressly provides otherwise with respect to a Stock Award, as set forth in the related Award Agreement, no Stock Award shall be deemed to be an outstanding Award for purposes of the Plan.
  
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 ARTICLE VIII.
PERFORMANCE SHARES
  
 8.1. The Administrator, in its sole discretion, may from time to time on or after the Adoption Date award Performance Shares to Eligible Persons as an incentive for the performance of future services that will contribute materially to the successful operation of the Company and its Affiliates, subject to the terms and conditions set forth in this ARTICLE VIII.
  
 8.2. The Administrator shall determine the terms and conditions of any Award of Performance Shares, which shall be set forth in the related Award Agreement, including without limitation:
  
 8.2.1 the purchase price, if any, to be paid for such Performance Shares, which may be zero, subject to such minimum consideration as may be required by Applicable Law;
  
 8.2.2 the performance period (the “Performance Period”) and/or performance objectives (the “Performance Objectives”) applicable to such Awards;
  
 8.2.3 the number of Performance Shares that shall be paid to the Participant if the applicable Performance Objectives are exceeded or met in whole or in part; and
  
 8.2.4 the form of settlement of a Performance Share.
  
 8.3. At any date, each Performance Share shall have a value equal to the Fair Market Value of a share of Common Stock.
  
 8.4. Performance Periods may overlap, and Participants may participate simultaneously with respect to Performance Shares for which different Performance Periods are prescribed.
  
 8.5. Performance Objectives may vary from Participant to Participant and between Awards and shall be based upon such performance criteria or combination of factors as the Administrator may deem appropriate, including, but not limited to, minimum earnings per share or return on equity. If during the course of a Performance Period there shall occur significant events which the Administrator expects to have a substantial effect on the applicable Performance Objectives during such period, the Administrator may revise such Performance Objectives.
  
 8.6. In the sole discretion of the Administrator and as set forth in the Award Agreement for an Award of Performance Shares, all Performance Shares held by a Participant and not earned shall be forfeited by the Participant upon the Participant’s Termination of Service. Notwithstanding the foregoing, unless otherwise provided in an Award Agreement with respect to an Award of Performance Shares, in the event of the death, Disability or Retirement of a Participant during the applicable Performance Period, or in other cases of special circumstances (including hardship or other special circumstances of a Participant whose employment is involuntarily terminated), the Administrator may determine to make a payment in settlement of such Performance Shares at the end of the Performance Period, based upon the extent to which the Performance Objectives were satisfied at the end of such period and pro-rated for the portion of the Performance Period during which the Participant was employed by the Company or an Affiliate; provided, however, that the Administrator may provide for an earlier payment in settlement of such Performance Shares in such amount and under such terms and conditions as the Administrator deems appropriate or desirable.
  
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 8.7. The settlement of a Performance Share shall be made in cash, whole shares of Common Stock or a combination thereof and shall be made as soon as practicable after the end of the applicable Performance Period. Notwithstanding the foregoing, the Administrator in its sole discretion may allow a Participant to defer payment in settlement of Performance Shares on terms and conditions approved by the Administrator and set forth in the related Award Agreement entered into in advance of the time of receipt or constructive receipt of payment by the Participant.
  
 8.8. Performance Shares shall not be transferable by the Participant. The Administrator shall have the authority to place additional restrictions on the Performance Shares including, but not limited to, restrictions on transfer of any shares of Common Stock that are delivered to a Participant in settlement of any Performance Shares.
  
 ARTICLE IX.
CHANGES OF CONTROL OR OTHER FUNDAMENTAL CHANGES
  
 9.1. Upon the occurrence of a Change of Control and unless otherwise provided in the Award Agreement with respect to a particular Award:
  
 9.1.1 all outstanding Stock Options shall become immediately exercisable in full, subject to any appropriate adjustments in the number of shares subject to the Stock Option and the Option Price, and shall remain exercisable for the remaining Option Period, regardless of any provision in the related Award Agreement limiting the exercisability of such Stock Option or any portion thereof for any length of time;
  
 9.1.2 all outstanding Performance Shares with respect to which the applicable Performance Period has not been completed shall be paid out as soon as practicable as follows:
  
 (i) all Performance Objectives applicable to the Award of Performance Shares shall be deemed to have been satisfied to the extent necessary to earn one hundred percent (100%) of the Performance Shares covered by the Award;
  
 (ii) the applicable Performance Period shall be deemed to have been completed upon occurrence of the Change of Control;
  
 (iii) the payment to the Participant in settlement of the Performance Shares shall be the amount determined by the Administrator, in its sole discretion, or in the manner stated in the Award Agreement, as multiplied by a fraction, the numerator of which is the number of full calendar months of the applicable Performance Period that have elapsed prior to occurrence of the Change of Control, and the denominator of which is the total number of months in the original Performance Period; and
  
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 (iv) upon the making of any such payment, the Award Agreement as to which it relates shall be deemed terminated and of no further force and effect; and
  
 9.1.3 all outstanding shares of Restricted Stock with respect to which the restrictions have not lapsed shall be deemed vested, and all such restrictions shall be deemed lapsed and the Restriction Period ended.
  
 9.2. Anything contained herein to the contrary notwithstanding, upon the dissolution or liquidation of the Company, each Award granted under the Plan and then outstanding shall terminate; provided, however, that following the adoption of a plan of dissolution or liquidation, and in any event prior to the effective date of such dissolution or liquidation, each such outstanding Award granted hereunder shall be exercisable in full and all restrictions shall lapse, to the extent set forth in Section 9.1.1, 9.1.2 and 9.1.3 above.
  
 9.3. After the merger of one or more corporations into the Company or any Affiliate, any merger of the Company into another corporation, any consolidation of the Company or any Affiliate of the Company and one or more corporations, or any other corporate reorganization of any form involving the Company as a party thereto and involving any exchange, conversion, adjustment or other modification of the outstanding shares of the Common Stock, each Participant shall, at no additional cost, be entitled, upon any exercise of such Participant’s Stock Option, to receive, in lieu of the number of shares as to which such Stock Option shall then be so exercised, the number and class of shares of stock or other securities or such other property to which such Participant would have been entitled to pursuant to the terms of the agreement of merger or consolidation or reorganization, if at the time of such merger or consolidation or reorganization, such Participant had been a holder of record of a number of shares of Common Stock equal to the number of shares as to which such Stock Option shall then be so exercised. Comparable rights shall accrue to each Participant in the event of successive mergers, consolidations or reorganizations of the character described above. The Administrator may, in its sole discretion, provide for similar adjustments upon the occurrence of such events with regard to other outstanding Awards under this Plan. The foregoing adjustments and the manner of application of the foregoing provisions shall be determined by the Administrator in its sole discretion. Any such adjustment may provide for the elimination of any fractional shares which might otherwise become subject to an Award. 
  
 ARTICLE X.
AMENDMENT AND TERMINATION
  
 10.1. Subject to the provisions of Section 10.2, the Board of Directors at any time and from time to time may amend or terminate the Plan as may be necessary or desirable to implement or discontinue the Plan or any provision hereof, to the extent required by the Act or the Code, or rules and regulations of the Stock Exchange and/or such other securities exchanges, if any, which the Company’s Common Stock is then subject to, however, no amendment, without approval by the Company’s shareholders, shall:
  
 10.1.1 materially alter the group of persons eligible to participate in the Plan; or
  
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 10.1.2 except as provided in Section 3.4, change the maximum aggregate number of shares of Common Stock that are available for Awards under the Plan. 
  
 10.2. No amendment to or discontinuance of the Plan or any provision hereof by the Board of Directors or the shareholders of the Company shall, without the written consent of the Participant, adversely affect (in the sole discretion of the Administrator) any Award theretofore granted to such Participant under this Plan; provided, however, that the Administrator retains the right and power to annul any Award if the Participant is terminated for cause as determined by the Administrator.
  
 10.3. If a Change of Control has occurred, no amendment or termination shall impair the rights of any person with respect to an outstanding Award as provided in ARTICLE IX.
  
 ARTICLE XI.
SECURITIES MATTERS AND REGULATIONS
  
 11.1. Notwithstanding anything herein to the contrary, the obligation of the Company to sell or deliver Shares with respect to any Award granted under the Plan shall be subject to all Applicable Laws, rules and regulations, including all applicable federal and state securities laws, and the obtaining of all such approvals by governmental agencies as may be deemed necessary or appropriate by the Administrator. The Administrator may require, as a condition of the issuance and delivery of certificates evidencing shares of Common Stock pursuant to the terms hereof, that the recipient of such shares make such agreements and representations, and that such certificates bear such legends, as the Administrator, in its sole discretion, deems necessary or advisable.
  
 11.2. Each Award is subject to the requirement that, if at any time the Administrator determines that the listing, registration or qualification of Shares is required by any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body is necessary or desirable as a condition of, or in connection with, the grant of an Award or the issuance of Shares, no such Award shall be granted or payment made or Shares issued, in whole or in part, unless listing, registration, qualification, consent or approval has been effected or obtained free of any conditions not acceptable to the Administrator.
  
 11.3. In the event that the disposition of Shares acquired pursuant to the Plan is not covered by a then current registration statement under the Securities Act and is not otherwise exempt from such registration, such Shares shall be restricted against transfer to the extent required by the Securities Act or regulations thereunder, and the Administrator may require a Participant receiving Common Stock pursuant to the Plan, as a condition precedent to receipt of such Common Stock, to represent to the Company in writing that the Common Stock acquired by such Participant is acquired for investment only and not with a view to distribution.
  
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 ARTICLE XII.
SECTION 409A OF THE CODE
  
 12.1. Unless otherwise expressly provided for in an Award Agreement, the Plan and each Award Agreement will be interpreted to the greatest extent possible in a manner that makes the Plan and the Awards granted hereunder exempt from Section 409A of the Code, and, to the extent not so exempt, in compliance with Section 409A of the Code. If the Administrator determines that any Award granted hereunder is not exempt from and is therefore subject to Section 409A of the Code, the Award Agreement evidencing such Award will incorporate the terms and conditions necessary to avoid the consequences specified in Section 409A(a)(1) of the Code, and to the extent an Award Agreement is silent on terms necessary for compliance, such terms are hereby incorporated by reference into the Award Agreement. Notwithstanding anything to the contrary in this Plan (and unless the Award Agreement specifically provides otherwise), if the Shares are publicly traded, and if a Participant holding an Award that constitutes “deferred compensation” under Section 409A of the Code is a “specified employee” for purposes of Section 409A of the Code, no distribution or payment of any amount that is due because of a “separation from service” (as defined in Section 409A of the Code without regard to alternative definitions thereunder) will be issued or paid before the date that is six months following the date of such Participant’s “separation from service” (as defined in Section 409A of the Code without regard to alternative definitions thereunder) or, if earlier, the date of the Participant’s death, unless such distribution or payment can be made in a manner that complies with Section 409A of the Code, and any amounts so deferred will be paid in a lump sum on the day after such six month period elapses, with the balance paid thereafter on the original schedule.
  
 12.2. With respect to any Award that constitutes nonqualified deferred compensation within the meaning of Section 409A of the Code, termination of a Participant’s Continuous Service Status shall mean a separation from service within the meaning of Section 409A of the Code, unless the Participant was an Employee immediately prior to such termination and is then contemporaneously retained as a Consultant pursuant to a written agreement and such agreement provides otherwise. The Continuous Service Status of a Participant shall be deemed to have terminated for all purposes of the Plan if such person is employed by or provides services to Subsidiary and such Subsidiary ceases to be a Subsidiary, unless the Administrator determines otherwise. To the extent permitted by Section 409A of the Code, a Participant who ceases to be an Employee of the Company but continues, or simultaneously commences, services as a Director of the Company shall be deemed to have had a termination of Continuous Service Status for purposes of the Plan.
  
 ARTICLE XIII.
MISCELLANEOUS PROVISIONS
  
 13.1. Nothing in the Plan or any Award granted hereunder shall confer upon any Participant any right to continue in the employ of the Company or its Affiliates or to serve as a Director or shall interfere in any way with the right of the Company or its Affiliates or the shareholders of the Company, as applicable, to terminate the employment of a Participant or to release or remove a Director at any time. Unless specifically provided otherwise, no Award granted under the Plan shall be deemed salary or compensation for the purpose of computing benefits under any employee benefit plan or other arrangement of the Company or its Affiliates for the benefit of their respective employees unless the Company shall determine otherwise. No Participant shall have any claim to an Award until it is actually granted under the Plan and an Award Agreement has been executed and delivered to the Company. To the extent that any person acquires a right to receive payments from the Company under the Plan, such right shall, except as otherwise provided by the Administrator, be no greater than the right of an unsecured general creditor of the Company. All payments to be made hereunder shall be paid from the general funds of the Company, and no special or separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts, except as provided in ARTICLE VI with respect to Restricted Stock and except as otherwise provided by the Administrator.
  
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 13.2. The Plan and the grant of Awards shall be subject to all applicable federal and state laws, rules, and regulations and to such approvals by any government or regulatory agency as may be required. Any provision herein relating to compliance with Rule 16b-3 under the Act shall not be applicable with respect to participation in the Plan by Participants who are not subject to Section 16 of the Act.
  
 13.3. The terms of the Plan shall be binding upon the Company, its successors and assigns.
  
 13.4. Neither a Stock Option nor any other type of equity-based compensation provided for hereunder shall be transferable except as provided for in Section 5.2. In addition to the transfer restrictions otherwise contained herein, additional transfer restrictions shall apply to the extent required by federal or state securities laws. If any Participant makes such a transfer in violation hereof, any obligation hereunder of the Company to such Participant shall terminate immediately.
  
 13.5. This Plan and all actions taken hereunder shall be governed by the laws of the State of Nevada.
  
 13.6. Each Participant exercising an Award hereunder agrees to give the Administrator prompt written notice of any election made by such Participant under Section 83(b) of the Code, or any similar provision thereof, as applicable.
  
 13.7. If any provision of this Plan or an Award Agreement is or becomes or is deemed invalid, illegal or unenforceable in any jurisdiction, or would disqualify the Plan or any Award Agreement under any law deemed applicable by the Administrator, such provision shall be construed or deemed amended to conform to Applicable Laws, or if it cannot be construed or deemed amended without, in the determination of the Administrator, materially altering the intent of the Plan or the Award Agreement, it shall be stricken, and the remainder of the Plan or the Award Agreement shall remain in full force and effect.
  
 13.8. The grant of an Award pursuant to this Plan shall not affect in any way the right or power of the Company or any of its Affiliates to make adjustments, reclassification, reorganizations, or changes of its capital or business structure, or to merge or consolidate, or to dissolve, liquidate or sell, or to transfer all or part of its business or assets.
  
 13.9. The Plan is not subject to the provisions of ERISA or qualified under Section 401(a) of the Code.
  
 13.10. If a Participant is required to pay to the Company an amount with respect to income and employment tax withholding obligations in connection with (i) the exercise of a Nonqualified Stock Option, or (ii) the receipt of Common Stock pursuant to any other Award, then the issuance of Common Stock to such Participant shall not be made (or the transfer of shares by such Participant shall not be required to be effected, as applicable) unless such withholding tax or other withholding liabilities shall have been satisfied in a manner acceptable to the Company. To the extent provided by the terms of an Award Agreement, the Participant may satisfy any federal, state or local tax withholding obligation relating to the exercise or acquisition of Common Stock under an Award by any of the following means (in addition to the Company’s right to withhold from any compensation paid to the Participant by the Company) or by a combination of such means: (i) tendering a cash payment; (ii) authorizing the Company to withhold shares of Common Stock from the shares of Common Stock otherwise issuable to the Participant as a result of the exercise or acquisition of Common Stock under the Award, provided, however, that no shares of Common Stock are withheld with a value exceeding the minimum amount of tax required to be withheld by law; or (iii) delivering to the Company owned and unencumbered shares of Common Stock.
  
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 13.11. Compliance with other laws.
  
 13.11.1 For Reporting Persons:
  
 (i) the Plan is intended to satisfy the provisions of Rule 16b-3;
  
 (ii) all transactions involving Participants who are subject to Section 16(b) of the Act are subject to the provisions of Rule 16b-3 regardless of whether they are set forth in the Plan; and
  
 (iii) any provision of the Plan that conflicts with Rule 16b-3 does not apply to the extent of the conflict.
  
 13.11.2 If any provision of the Plan, any Award, or Award Agreement conflicts with the requirements of Code Section 162(m) or 422 for Awards subject to these requirements, then that provision does not apply to the extent of the conflict.
  
 13.12. In addition to the remedies of the Company elsewhere provided for herein, failure by a Participant to comply with any of the terms and conditions of the Plan or any Award Agreement, unless such failure is remedied by such Participant within ten days after having been notified of such failure by the Administrator, shall be grounds for the cancellation and forfeiture of such Award, in whole or in part, as the Administrator, in its sole discretion, may determine.
  
 13.13. Any reference in the Plan to a written document includes any document delivered electronically or posted on the Company’s intranet.
  
 13.14. The headings and captions in the Plan are inserted as a matter of convenience for organizational purposes, and do not construe, define, extend, interpret, or limit any provision of the Plan.
  
 13.15. Whenever the context may require, any pronoun includes the corresponding masculine, feminine, or neuter form, and the singular includes the plural and vice versa.
  
 13.16. Any reference in the Plan to a statutory or regulatory provision includes corresponding successor provisions.
  
 13.17. The proceeds from the sale of shares pursuant to Awards granted under the Plan shall constitute general funds of the Company.
  
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 13.18. A Participant’s electronic signature of an Award Agreement shall have the same validity and effect as a signature affixed by hand.
  
 13.19. Notwithstanding anything in the Plan or in any Award Agreement to the contrary, the Company will be entitled to the extent permitted or required by Applicable Law, Company policy and/or the requirements of a Stock Exchange on which the Shares are listed for trading, in each case, as in effect from time to time, to recoup compensation of whatever kind paid by the Company at any time to a Participant under this Plan. No such recoupment of compensation will be an event giving rise to a right to resign for “good reason” or “constructive termination” (or similar term) under any agreement between any Participant and the Company.
  
 13.20. Corporate action constituting a grant by the Company of an Award to any Participant shall be deemed completed as of the date of such corporate action, unless otherwise determined by the Administrator, regardless of when the instrument, certificate, or letter evidencing the Award is communicated to, or actually received or accepted by, the Participant. In the event that the corporate records (e.g., Board consents, resolutions or minutes) documenting the corporate action constituting the grant contain terms (e.g., exercise price, vesting schedule or number of Shares) that are inconsistent with those in the Award Agreement or related grant documents as a result of a clerical error in the preparation of the Award Agreement or related grant documentation, the corporate records will control, and the Participant will have no legally binding right to the incorrect term in the Award Agreement or related grant documentation.
  
 13.21. Nothing contained in the Plan or in any Award agreement executed pursuant hereto shall be deemed to confer upon any individual or entity to whom an Award is or may be granted hereunder any right to remain in the employ or service of the Company or a parent or subsidiary of the Company or any entitlement to any remuneration or other benefit pursuant to any consulting or advisory arrangement.
  
 2021 Equity Incentive Plan | Reliant Holdings, Inc.
 23 of 23Exhibit 10.1

 

EXECUTION COPY

 

 

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT
(this “Agreement”), dated as of June 8, 2021 (the “Signing Date”) is entered into by and between Nxt-ID, Inc.,
a Delaware corporation (the “Company”), and Chia-Lin Simmons (the “Executive”) (collectively, the “Parties,”
individually, a “Party”).

 

W I T N E S S E T H:

WHEREAS, Company and the
Executive desire to formalize the employment relationship that will exist between Company and the Executive from and after the Signing
Date by means of this Agreement.

NOW, THEREFORE, in consideration
of the premises and the mutual covenants and agreements set forth herein, the Parties, intending to be legally bound, hereby agree as
follows:

1.                  
Definitions. As used in this Agreement:

		1.1	The term “Board” means the Board of Directors of the Company.

1.2              
The term “Business Day” means any day other than a Saturday or Sunday or a day on which banks are not open for business
in Oxford, Connecticut.

1.3              
The term “Compensation Committee” shall mean the Company’s Compensation Committee of the Board.

1.4              
The term “Competitive Business” shall mean any business which provides technology products or services for healthcare
applications.

1.5       The
term “Fiscal Year” shall mean the Company’s fiscal year, being the twelve month period ending on December 31st
of each year.

2.                  
Employment.

2.1       Title.
The Executive shall serve as the Company’s Chief Executive Officer (“CEO”) and agrees to perform services for the Company
and such other affiliates of the Company, including Logicmark, LLC, as described herein.

2.2       Term.
The Company agrees to employ Executive pursuant to the terms of this Agreement, and Executive agrees to be so employed for a term commencing
on June 14, 2021 (the “Effective Date”) through and until the one year anniversary of the Effective Date (the “Initial
Term”). After the Initial Term, if the Executive has achieved the objectives for the Initial Term as reasonably set by the Board
and Executive, the term of this Agreement shall be automatically renewed for an additional year through the second anniversary of the
Effective Date, and any number of additional periods (each a “Renewal Term”), provided, however, that either Party hereto
may elect not to extend this Agreement by written notice to the other Party at least ninety (90) days prior to the end of the applicable
term. Notwithstanding the foregoing, Executive’s employment hereunder may be earlier terminated in accordance with Section 5. The
period of time between the Effective Date and the termination of Executive’s employment hereunder shall be referred to herein as
the “Employment Term.”

2.3       Duties
and Responsibilities. The Executive shall report to the Board and in her capacity as an officer of the Company shall perform such
duties and services as may be appropriate and as are assigned to her by the Board. Such duties shall include, without limitation, those
set forth in Schedule 1 annexed hereto. Executive shall serve as a member of the Board, and will be entitled to vote on such matters
as come before the Board, unless otherwise excused in accordance with the Company’s bylaws.

     

     

    

2.4       Performance
of Duties. During the term of the Agreement, except as otherwise approved by the Board or as provided below, the Executive agrees
to devote her full business time, effort, skill and attention to the affairs of the Company and its affiliates, to use her best efforts
to promote the interests of the Company, and to discharge her responsibilities in a diligent and faithful manner, consistent with sound
business practices. The foregoing shall not, however, preclude Executive from devoting reasonable time, attention and energy in connection
with the following activities, provided that such activities do not materially interfere with the performance of her duties and services
hereunder, and that her participation in such activities has been fully disclosed in writing to the Board:

(1)       serving
as a director, or a member of a committee of the board of directors of any company or organization, if serving in such capacity does not
involve any conflict with the business of the Company or any of its affiliates and such other company or organization is not engaged in
a Competitive Business;

(2)               
fulfilling speaking engagements of which the Board has been notified 48 hours in advance and has not disapproved;

(3)               
engaging in charitable and community activities;

(4)               
managing her personal business and investments;

(5)               
any activities that are necessary to wind up the affairs of Executive’s existing business; provided, that Executive
shall keep the Company apprised, with reasonable frequency, of the progress and status thereof; and, provided further, that in the event
of any conflict between Executive’s obligations in respect of such wind up and her obligations hereunder, such conflicts shall be
resolved in favor of the Company; and

(6)               
any other activity approved of by the Board, in writing and in advance.

2.5       Representations
and Warranties of the Executive with Respect to Conflicts, Past Employers and Corporate Opportunities. The Executive represents and
warrants that:

(1)          
her employment by the Company will not conflict with any obligations which she has to any other person, firm or entity;

(2)          
she has not brought to the Company, at any time prior to the Effective Date, and she will not bring to the Company at any
time during the Employment Term, any materials or documents of a former employer, or any confidential information or property of any other
person, firm or entity; and

(3)          
she will not, without disclosure to and written approval of the Board, directly or indirectly, assist or have an active
interest in (whether as a principal, stockholder, lender, employee, officer, director, partner, joint venturer, consultant or otherwise)
in any person, firm, partnership, association, corporation or business organization, entity or enterprise that is engaged in a Competitive
Business; provided, however, that ownership of not more than two percent (2%) of the outstanding securities of any class of any
publicly held corporation shall not be deemed a violation of this Section 2.5.

2.6       Activities
and Interests with Companies Doing Business with the Company. Executive shall promptly disclose to the Board, in accordance with the
Company’s policies, full information concerning any interests, direct or indirect, she holds (whether as a principal, stockholder,
lender, executive, director, officer, partner, joint venturer, consultant or otherwise) in any business which, as is reasonably known
to Executive, purchases or provides services or products to the Company or any of its subsidiaries, provided that the Executive need not
disclose any such interest resulting from ownership of not more than two (2%) of the outstanding securities, or equivalent equity interests,
of any class of any corporation, company, partnership, or other enterprise that is engaged in a Competitive Business, which securities
are listed on a national securities exchange or traded in the over-the-counter, as long as such interest is solely a passive investment
and the Executive does not participate in the business of such corporation in any manner.

2.7       Reporting
Location. For purposes of this Agreement, the Executive’s reporting location shall be Moraga, California or other agreed upon
location from time to time. (the “Reporting Location”); provided, however, that it is understood and agreed that the Executive’
s responsibilities may require her to visit the Company’s various operating facilities and offices and may also include frequent
travel.

3.                  
Compensation.

3.1       Base
Salary. Executive shall receive, during the Initial Term, a base salary at the rate of Four Hundred Fifty Thousand Dollars ($450,000.00)
per annum, payable according to the Company’s normal payroll policies and procedures (the “Base Salary”) and subject
to all federal, state, and municipal withholding requirements. The Base Salary shall be reviewed by the Board annually.

3.2       Cash
Bonus. The Executive shall be eligible for a cash bonus equal to up to one (1) times the then-Base Salary pursuant to Schedule 2 attached
hereto. Schedule 1 shall be revised for any Renewal Term by mutual agreement of the Board and the Executive.

3.3       Equity-Based
Compensation. On the Effective Date, the Company shall grant to the Executive a number of shares equal to 5.0% of the issued and outstanding
shares of the Company’s Common Stock as of the Effective Date as an inducement grant. This award shall be granted pursuant to a
Restricted Stock Award Agreement (the “Award Agreement”) in the form annexed hereto as Exhibit A.

3.4       Sign-On
Bonus. The Company shall pay Executive a one-time sign-on bonus of $50,000 (the “Sign-On Bonus”) within thirty (30) calendar
days of the Effective Date, less all required tax withholdings and other applicable deductions. Executive will earn and be permitted to
retain the full amount of the Sign-On Bonus if Executive remains in Employment on the one (1) year anniversary of the Effective Date.
If Executive voluntarily resigns from the Company or is terminated by the Company for Cause before such time, Executive will be required
to return the prorated net after-tax amount of the Sign-On Bonus to the Company within 60 days.

3.5       Executive
Coach Allowance. The Company shall reimburse Executive for all properly documented expenses incurred by Executive in connection with
executive coach services up to an aggregate amount of $10,000 per year. The Company shall issue the reimbursements within a reasonable
timeframe and in accordance with the Company’s customary expense reimbursement practices.

     

     

    

3.6       Benefit
Plans, Insurance.

(1) The Company shall
provide the Executive with employee benefit plans and insurance programs of the Company that the Company may sponsor from time to time.
Nothing herein shall obligate the Company to offer any such plans or programs, however, if the Company elects not to offer insurance programs,
they will reimburse Executive for the cost of sourcing plans of comparable value to the benefits Executive is to receive under this Section
3.6.

(2) The Company will
maintain in place during the course of Executive’s employment, directors’ and officers’ liability insurance coverage
in an amount equal to at least $3,000,000, with excess coverage in an amount equal to at least $3,000,000. Any such policy or policies
shall provide for coverage to Executive on the same terms and conditions applicable to the coverage provided under such policy to the
Company’s other directors and officers.

3.7       Vacation and
Holidays.

(1)          
The Executive shall be entitled to take four (4) weeks of vacation, with pay, per year, which vacation level shall be reviewed
by the Compensation Committee from time to time. No more than 1 times (1.0x) Executive’s authorized annual vacation allocation may
be accrued, at any given time. In the event that Executive has reached her maximum authorized vacation allocation, accrual will not re-commence
until Executive uses some of her paid vacation credit and thereby brings the balance below her maximum. Accrued paid vacation credit forfeited
because of an excess balance cannot be retroactively reapplied. Pay will only be provided for any unused, accrued paid vacation credit
at the time of Executive’s separation from the Company.

(2)          
The Executive shall be entitled to such paid holidays as are generally available to all employees of the Company.

3.8       Reimbursement.
The Company shall reimburse business expenses of Executive directly related to Company business, including, but not limited to, airfare,
lodging, meals, travel expenses, medical expenses while traveling not covered by insurance, business entertainment, expenses associated
with entertaining business persons, local expenses to governments or governmental officials, tariffs, applicable taxes outside of the
United States, special expenses associated with travel to certain countries, supplemental life insurance or supplemental insurance of
any kind or special insurance rates or charges for travel outside the United States (unless such insurance is being provided by the Company),
rental cars and insurance for rental cars, and any other expenses of travel that are reasonable in nature or that have been otherwise
pre-approved by the Board, in writing. Executive shall be governed by the travel and entertainment policy in effect at the Company to
the extent it does not conflict with this Section 3.8.

3.9       Payroll
Procedures and Policies. All payments required to be made by the Company to the Executive pursuant to this Section 3 shall be paid
on a regular basis in accordance with the Company’s normal payroll procedures and policies.

4.       Confidentiality;
Non-Competition; and Non-Solicitation.

4.1       Confidentiality.
In consideration of employment by the Company and Executive’s receipt of the salary and other benefits associated with Executive’s
employment, and in acknowledgment that (a) the Company maintains secret and confidential information, (b) during the course of Executive’s
employment by the Company such secret or confidential information may become known to Executive, and (c) full protection of the Company’s
business makes it essential that no employee appropriate for his or her own use, or disclose such secret or confidential information,
Executive agrees that during the Employment Term and at all times thereafter, to hold in strict confidence and shall not, directly or
indirectly, disclose or reveal to any person, or use for her own personal benefit or for the benefit of anyone else, any trade secrets,
confidential dealings, or other confidential or proprietary information of any kind, nature, or description (whether or not acquired,
learned, obtained, or developed by Executive alone or in conjunction with others) belonging to or concerning the Company or any of its
subsidiaries, except (i) with the prior written consent of the Company duly authorized by its Board, (ii) in the course of the proper
performance of Executive’s duties hereunder, (iii) for information (x) that becomes generally available to the public other than
as a result of unauthorized disclosure by Executive or her affiliates, or (y) that becomes available to Executive on a non-confidential
basis from a source other than the Company or its subsidiaries who is not bound by a duty of confidentiality, or other contractual, legal,
or fiduciary obligation, to the Company, or (iv) as required by applicable law or legal process.

4.2       Non-Competition.
During the Employment Term and for a period of one (1) year thereafter, Executive shall not be engaged as a director, officer, employee,
consultant, or in any other way be associated, whether through ownership or in any other capacity with any corporation, company, partnership
or other enterprise or venture which is engaged in a Competitive Business anywhere in North America; provided, however, that Executive
may own not more than two percent (2%) of the outstanding securities, or equivalent equity interests, of any class of any corporation,
company, partnership, or either enterprise that engages in a Competitive Business, which securities are listed on a national securities
exchange or traded in the over-the-counter market, as long as such interest is solely a passive investment and the Executive does not
participate in the business of such company in any manner. This Section 4.2 shall become void and unenforceable if Executive is terminated
without cause, Executive’s employment is not renewed without cause or if Executive is terminated, expressly or constructively, resulting
from or arising out of the Company’s unwillingness or inability to meet its obligations under this Agreement.

     

     

    

4.3       Non-Solicitation.
Executive also agrees that she will not, directly or indirectly, during the Employment Term and (a) for a period of one (1) year thereafter,
in any manner, knowingly cause, induce, solicit, request, advise or encourage any actual or prospective customer, distributor, agent,
consultant, licensor, supplier or vendor of the Company’s business or any other business which has a material business relationship
with the Company’s business to terminate, modify or otherwise knowingly interfere with, influence, alter, curtail or impair any
such actual or prospective relationship of the Company; (b) for a period of two (2) years thereafter, cause, induce, solicit, request,
advise, recruit or encourage any employees of the Company to leave the employment or engagement of the Company; or (c) for a period of
two (2) years thereafter, hire, employ or otherwise engage any such employee of the Company who has left the employment or engagement
of the Company within ninety (90) days of such departure; provided, however, that the foregoing clauses shall not prohibit any general
solicitation not specifically directed to any customer, distributor, agent, consultant, licensor, supplier or vendor of the Company, employees
of the Company or hiring of an employee of the Company, in each case in response to such permitted general solicitation.

4.4       Definition
of Company. For the purposes of this Section 4, “Company” shall mean the Company its affiliates.

5.       Termination
of Employment. Executive’s employment and the Employment Term shall terminate on the first, if any, of the following to occur
(the “Termination Date”).

5.1       Termination
due to Disability. Upon ten (10) Business Days’ prior written notice by the Company to Executive of termination due to Disability.
For purposes of this Agreement, “Disability” shall mean that Executive, because of accident, disability, or physical or mental
illness, is incapable of performing Executive’s duties to the Company or any affiliate of the Company, as reasonably determined
by the Board. Notwithstanding the foregoing, Executive will be deemed to have become incapable of performing Executive’s duties
to the Company or any affiliate of the Company if (i) Executive is incapable of so doing for (A) a continuous period of one hundred eighty
days and remains so incapable at the end of such one hundred eighty day period or (B) periods amounting in the aggregate to one hundred
eighty (180) days within any one period of two hundred ten (210) days and remains so incapable at the end of such aggregate period of
two hundred ten (210) days, (ii) Executive qualifies to receive long-term disability payments under the long-term disability insurance
program, as it may be amended from time to time, covering employees of the Company or affiliates of the Company and in which program Executive
participates or (iii) Executive qualifies as totally disabled under United States Social Security Administration regulations. Nothing
in this Section 5.1 shall be construed to waive the Executive’s rights, if any, under law including, without limitation, the Family
and Medical Leave Act of 1993, 29 U.S.C. §2601 et seq. and the Americans with Disabilities Act, 42 U.S.C. §12101 et seq.

5.2       Termination
due to Death. Automatically upon the date of death of Executive.

5.3       Termination
by the Company for Cause. Immediately upon written notice by the Company to Executive of a termination for Cause. “Cause”
shall mean (i) Executive’s willful or intentional failure to perform Executive’s duties to the Company including, without
limitation, the duties set forth in Schedule 1 annexed hereto, or to follow the lawful directives of the Board (other than as a
result of death or Disability) which failure, to the extent curable is not cured within thirty (30) days after written notice of any such
failure to perform such duties or directives was given to Executive specifying such failure; (ii) conviction of, or pleading of guilty
to, a felony; (iii) Executive’s failure to reasonably cooperate in any audit or investigation of the business or financial practices
of the Company or any of its affiliates, which failure, to the extent curable is not cured within thirty (30) days after written notice
of any such failure to perform such duties or directives was given to Executive specifying such failure; (iv) Executive’s performance
of any act of theft, embezzlement, fraud, malfeasance or misappropriation of the Company’s or any of its affiliates’ property;
or (v) material breach of this Agreement or any other agreement with the Company or any of its affiliates, or a violation of the Company’s
or Company’s code of conduct or other written policy, which failure, to the extent curable is not cured within thirty (30) days
after written notice of any such failure to perform such duties or directives was given to Executive specifying the nature of such failure.

     

     

    

5.4       Termination
by the Company without Cause. Upon at least sixty (60) days prior written notice by the Company to Executive of the termination of
Executive’s employment without Cause (other than for death or Disability).

5.5Termination
by Executive. Upon at least sixty (60) days’ prior written notice by Executive to the Company of Executive’s voluntary
termination of employment for any reason, other than Good Reason, which the Company may, in its sole discretion, make effective earlier
than any such date notified by the Executive, or upon at least thirty (30) days’ prior written notice by Executive to the Company
for Good Reason, provided that the reason for such termination for Good Reason is not cured by the Company, during such applicable notice
period. “Good Reason” shall mean any of the following: (i) any material breach by the Company of this Agreement; (ii) any
material adverse change in Executive’s title, duties, responsibilities, or reporting obligations; (iii) any reduction in the Executive’s
annual rate of Base Salary; (iv) a requirement by the Company that Executive perform any act that is unlawful or dishonest; or (v) a requirement
by the Company that the Executive’s Reporting Location be more than 60 miles from the Reporting Location identified in Section 2.7.

5.6Expiration
of Employment Term; Non-Extension of Agreement. Automatically upon the expiration of the Initial Term or any then current Renewal
Term due to a non-extension of the Agreement by the Company or Executive pursuant to the provisions of Section 2.2.

5.7.       Termination
by Change in Control. Any termination of Executive’s employment related to, arising out of, or in connection to a Change of
Control (as such term is defined in the Award Agreement).

5.8       Effects of Termination.

(a)       Termination
due to Death or Disability. In the event that Executive’s employment and the Employment Term ends on account of either Executive’s
death or Disability, Executive or Executive’s legal representative, as applicable, shall be entitled to the following (with the
amounts due to be paid on, or within three (3) Business Days of, the Termination Date):

(i)     
any unpaid Base Salary through the Termination Date;

(ii)   
reimbursement for any unreimbursed business expenses incurred through the Termination Date;

(iii) 
any accrued but unused vacation time in accordance with Company policy; and

(iv)  
all other payments, benefits or fringe benefits to which Executive shall be entitled under the terms of any applicable compensation
arrangement or benefit, equity or fringe benefit plan or program or grant or this Agreement (clauses (i), (ii) and (iii) and this clause
(iv) collectively, the “Accrued Benefits”).

(b)       Termination
for Cause or by Executive without Good Reason. If Executive’s employment is terminated (i) by the Company for Cause or (ii)
by Executive for any reason other than Good Reason, the Company shall pay to Executive the Accrued Benefits (with the amounts due to be
paid on, within three (3) Business Days of the Termination Date).

(c)       Termination
without Cause or for Good Reason or through a Change In Control. If Executive’s employment is terminated: (i) by the Company,
other than for Cause; (ii) by Executive for Good Reason; or (iii) due to a Change in Control, the Company shall pay or provide Executive
with the following:

     

     

    

(i)                
the Accrued Benefits (with the amounts due to be paid on, or within three (3) Business Days of, the Termination Date); and

(ii)  
subject to Executive’s continued compliance with the obligations in Section 4, severance in an amount equal to twelve (12)
months of the Executive’s then current Base Salary paid after the Termination Date in twelve (12) equal monthly payments on the
Company’s regular payroll dates; and

(iii) the Company
shall continue Executive’s coverage under any health insurance plan insuring Executive and her spouse, or shall reimburse Executive
for the cost of any comparable plan, for the lesser of (A) twelve (12) months after the Termination Date or (B) the remainder of the
Initial Term or the then current Renewal Term, as applicable.

In the event that the Executive breaches
any of her obligations under Section 4.2 or Section 4.3, during the period in which severance payments are being made to her, pursuant
to the provisions of clause (ii) immediately preceding and/or health insurance coverage or reimbursement therefor is being provided,
pursuant to clause (iii) immediately preceding, any further obligations of the Company under clauses (ii) and (iii) shall be immediately
terminated.

In the event that the Company breaches
any of its obligations to make the severance payments to the Executive, pursuant to the provisions of clause (ii) immediately preceding
or to provide health insurance or reimbursement therefor, pursuant to the provisions of clause (iii) immediately preceding, any further
obligations of the Executive under Sections 4.2 and 4.3 shall be immediately terminated. Notwithstanding the foregoing, nothing herein
excuses or waives the Company’s obligations to make such severance payments to Executive.

(d)       Termination
as a Result of Non-Extension of this Agreement by the Company. If Executive’s employment is terminated as a result of the Company’s
election not to extend the Employment Term as provided in Section 2, the Company shall pay or provide to Executive the following:

(i)    
the Accrued Benefits (with the amounts due to be paid on, within three (3) Business Days of the Termination Date); and

(ii)  
subject to Executive’s continued compliance with the obligations in Section 4, severance in an amount equal to six (6) months
of the Executive’s then current Base Salary paid after the Termination Date in six (6) equal monthly payments on the Company’s
regular payroll dates; and

     

     

    

(iii) the Company
shall continue Executive’s coverage under any health insurance plan insuring Executive and her spouse, or shall reimburse Executive
for the cost of any comparable plan, for six (6) months after the Termination Date.

In the event that the Executive breaches
any of her obligations under Section 4.2 or Section 4.3, during the period in which severance payments are being made to her, pursuant
to the provisions of clause (ii) immediately preceding and/or health insurance coverage or reimbursement therefor is being provided,
pursuant to clause (iii) immediately preceding, any further obligations of the Company under clauses (ii) and (iii) shall be immediately
terminated.

In the event that the Company breaches
any of its obligations to make the severance payments to the Executive, pursuant to the provisions of clause (ii) immediately preceding
or to provide health insurance or reimbursement therefor, pursuant to the provisions of clause (iii) immediately preceding, any further
obligations of the Executive under Sections 4.2 and 4.3 shall be immediately terminated. Notwithstanding the foregoing, nothing herein
excuses or waives the Company’s obligations to make such severance payments to Executive.

(e)       Termination
as a Result of Non-Extension of this Agreement by the Executive or the Mutual Agreement of the Executive and the Company. If Executive’s
employment is terminated as a result of the Executive’s sole election or the mutual agreement of the Executive and the Company not
to extend an Employment Term (whether the Initial Term or a Renewal Term) as provided in Section 2.2, the Company shall pay to Executive
the Accrued Benefits (with the amounts due to be paid as soon as is practicable on or after Termination Date).

Payments and benefits provided in this
Section shall be in lieu of any termination or severance payments or benefits for which Executive may be eligible under any of the plans,
policies or programs of the Company.

The payments and benefits set out in
this Section are the Company’s sole obligation and are intended and deemed to satisfy all of the Company’s obligations in
connection with the termination of Executive’s employment in the event of a termination by the Company without Cause, whether statutory,
contractual or at law.

5.9       Other
Obligations. Upon any termination of Executive’s employment with the Company, Executive shall promptly resign or be automatically
terminated, as applicable, from the Board and any other position as an officer, director or fiduciary of any Company-related entity.

5.10       Exclusive
Remedy. Any and all amounts payable and benefits or additional rights provided pursuant to this Agreement beyond the Accrued Benefits
shall be in full and complete satisfaction of Executive’s rights under this Agreement and any other claims that Executive may have
in respect of Executive’s employment with the Company or any of its affiliates, and Executive acknowledges that such amounts are
fair and reasonable, and are Executive’s sole and exclusive remedy, in lieu of all other remedies at law or in equity, with respect
to the termination of Executive’s employment hereunder or any breach of this Agreement.

     

     

    

5.11       Release.
Any and all amounts payable and benefits or additional rights provided pursuant to this Agreement beyond the Accrued Benefits shall only
be payable if Executive delivers to the Company and does not revoke a general release of claims in favor of the Company substantially
in the form attached hereto as Exhibit B.

6.       Indemnity.
The Company shall defend, indemnify, and hold the Executive harmless for all past or future acts, omissions or decisions made by her in
good faith while performing services for the Company, and for all necessary expenditures or losses incurred by Executive in direct consequence
of the discharge of her duties, to the fullest extent permitted by applicable law, including either Delaware or Connecticut, but whichever
jurisdiction provides Executive the broadest protections under this section. The Company’s obligations under this section shall
extend to claims, allegations, threats, losses, liabilities, causes of action, lawsuits, proceedings, judgments, fines, penalties, damages,
costs and expenses including attorneys’ fees and other legal expenses, made against Executive arising out of or related to any act
or omission by or attributable to any employee of the Company or its affiliates, including but not limited to any individual that previously
served as Chief Executive Officer of the Company or its affiliates. For purposes of the Company’s obligation to defend the Executive,
the Company shall have the right to select counsel to defend Executive, subject to the Executive’s consent and approval. If Executive
reasonably concludes, after consulting with independent counsel at her expense, that a conflict of interest exists with counsel the Company
has selected, Executive may retain her own counsel at Company’s expense.

The Company may satisfy
its indemnity obligations under this section by purchasing Directors and Officers insurance coverage that provides the defense and indemnity
required by this section, including prior acts of prior directors or officers. If any carrier reserves its rights to decline coverage,
even while providing a defense, or denies coverage as to any claim, Executive may exercise her right to retain counsel at Company or the
insurance carrier’s expense.

Company shall not settle
any claim against Executive without the Executive’s written consent, which shall not be unreasonably withheld. Any such settlement
shall not include any admission of fault, wrongdoing, or liability by Executive.

7.       Section 409A
Compliance.

7.1       The
intent of the Parties is that payments and benefits under this Agreement comply with Internal Revenue Code Section 409A and the regulations
and guidance promulgated thereunder (collectively “Code Section 409A”) and, accordingly, to the maximum extent permitted,
this Agreement shall be interpreted to be in compliance therewith. To the extent that any provision hereof is modified in order to comply
with Code Section 409A, such modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the
original intent and economic benefit to the Executive and the Company of the applicable provision without violating the provisions of
Code Section 409A.

     

     

    

7.2       A
termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment
of any amounts or benefits upon or following a termination of employment unless such termination is also a “separation from service”
within the meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,”
“termination of employment” or like terms shall mean “separation from service.” Notwithstanding anything to the
contrary in this Agreement, if the Executive is deemed on the date of termination to be a “specified employee” within the
meaning of that term under Code Section 409A(a)(2)(B), then with regard to any payment or the provision of any benefit that is considered
deferred compensation under Code Section 409A payable on account of a “separation from service,” such payment or benefit shall
not be made or provided until the date which is the earlier of (A) the expiration of the six (6)-month period measured from the date of
such “separation from service” of the Executive, and (B) the date of the Executive’s death, to the extent required under
Code Section 409A. Upon the expiration of the foregoing delay period, all payments and benefits delayed pursuant to this Section 23(b)(ii)
(whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed
to the Executive in a lump sum, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance
with the normal payment dates specified for them herein.

7.3       To
the extent that reimbursements or other in-kind benefits under this Agreement constitute “nonqualified deferred compensation”
for purposes of Code Section 409A, (A) all expenses or other reimbursements hereunder shall be made on or prior to the last day of the
taxable year following the taxable year in which such expenses were incurred by the Executive, (B) any right to reimbursement or in-kind
benefits shall not be subject to liquidation or exchange for another benefit, and (C) no such reimbursement, expenses eligible for reimbursement,
or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible for reimbursement, or in-kind benefits
to be provided, in any other taxable year.

7.4       For
purposes of Code Section 409A, the Executive’s right to receive any installment payments pursuant to this Agreement shall be treated
as a right to receive a series of separate and distinct payments. Whenever a payment under this Agreement specifies a payment period with
reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion of the Company.

7.5       Notwithstanding
any other provision of this Agreement to the contrary, in no event shall any payment under this Agreement that constitutes “nonqualified
deferred compensation” for purposes of Code Section 409A be subject to offset by any other amount unless otherwise permitted by
Code Section 409A.

8.       Miscellaneous.

8.1       Benefit.
This Agreement shall inure to the benefit of and be binding upon each of the Parties, and their respective successors and permitted assigns.
This Agreement shall not be assignable by the Executive without the prior written consent of the Company. The Company shall require any
successor, whether direct or indirect, to all or substantially all the business and/or assets of the Company to expressly assume and agree
to perform, by instrument in a form reasonably satisfactory to Executive, this Agreement and any other agreements between Executive and
the Company or any of its subsidiaries, in the same manner and to the same extent as the Company.

     

     

    

8.2       Governing
Law and Jurisdiction. For the duration of the Initial Term, this Agreement shall be governed by, and construed in accordance with
the laws of the State of Delaware without resort to any principle of conflict of laws that would require application of the laws of any
other jurisdiction. For the duration of the Initial Term, Executive and Company consent to the exclusive jurisdiction of Delaware state
and federal courts for any action arising out of or related to this Agreement or Executive’s employment. After the end date of the
Initial Term, this Agreement shall be governed by, and construed in accordance with, the laws of the State of California without resort
to any principle of conflict of laws that would require application of the laws of any other jurisdiction. After the end date of the Initial
Term, Executive and Company consent to the exclusive jurisdiction of California state and federal courts for any action arising out of
or related to this Agreement or Executive’s employment.

8.3       Counterparts.
This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed to constitute an original, but all of which
together shall constitute one and the same Agreement. Counterparts may be delivered via facsimile, electronic mail (including .pdf or
any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any
counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

8.4       Headings.
The headings of the various articles and sections of this Agreement are for convenience of reference only and shall not be deemed a part
of this Agreement or considered in construing the provisions thereof.

8.5       Severability.

(a)       Any
term or provision of this Agreement that shall be prohibited or declared invalid or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective only to the extent of such prohibition or declaration, without invalidating the remaining terms and provisions
hereof or affecting the validity or enforceability of such provision in any other jurisdiction, and if any term or provision of this Agreement
is held by any court of competent jurisdiction to be void, voidable, invalid or unenforceable in any given circumstance or situation,
then all other terms and provisions hereof, being severable, shall remain in full force and effect in such circumstance or situation,
and such term or provision shall remain valid and in effect in any other circumstances or situation.

(b)       If
any of the covenants contained in this Agreement are held to be invalid or unenforceable because of the duration of such provisions or
the area or scope covered thereby, the Parties agrees that the court making such determination shall have the power to reduce the duration,
scope, and/or area of such provision to the maximum and/or broadest duration, scope, and/or area permissible by law, and in its reduced
form said provision shall then be enforceable.

     

     

    

8.6       Construction.
Use of the masculine pronoun herein shall be deemed to refer to the feminine and neuter genders and the use of singular references shall
be deemed to include the plural and vice versa, as appropriate. No inference in favor of or against any Party shall be drawn from the
fact that such Party or such Party’s counsel has drafted any portion of this Agreement.

8.7       Equitable
Remedies. The Parties hereto agree that, in the event of a breach, threatened breach or failure to perform under this Agreement by
either Party, the other Party, if not then in breach of this Agreement, including, without limitation, a breach by the Executive of the
restrictive covenants set forth in Section 4 hereof, the non-breaching Party shall have the right and remedy, without the requirement
to post a bond or other security, to enforce the obligations of breaching Party hereunder by a decree of specific performance issued by
any court of competent jurisdiction and appropriate temporary or permanent injunctive relief may be applied for and granted in connection
therewith, it being acknowledged and agreed that any such violation, breach or failure to perform, or threatened violation or breach,
would cause irreparable injury to the non-breaching Party and that money damages would be difficult if not impossible to ascertain and
will not provide adequate remedy to the non-breaching Party. The periods under Sections 4.2 and 4.3 shall each be extended by the number
of days in which the Executive is in violation or breach of the provisions of such applicable section.

8.8       Attorney’s
Fees. If any Party hereto shall bring an action at law or in equity to enforce its rights under this Agreement, the prevailing Party
in such action shall be entitled to recover from the Party against whom enforcement is sought its costs and expenses incurred in connection
with such action (including reasonable fees, disbursements and expenses of attorneys and costs of investigation).

8.9       No
Waiver. No failure, delay or omission of or by any Party in exercising any right, power or remedy upon any breach or default of any
other Party, or otherwise, shall impair any such rights, powers or remedies of the Party not in breach or default, nor shall it be construed
to be a waiver of any such right, power or remedy, or an acquiescence in any similar breach or default; nor shall any waiver of any single
breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or
approval of any kind or character on the part of any Party of any provisions of this Agreement must be in writing and be executed by the
Parties and shall be effective only to the extent specifically set forth in such writing.

8.10       Remedies
Cumulative. All remedies provided in this Agreement, by law or otherwise, shall be cumulative and not alternative.

     

     

    

8.11       Amendment.
This Agreement, including any schedules and exhibits hereto, may be amended only by a writing signed by all of the Parties hereto.

8.12       Entire
Agreement. This Agreement and the documents and instruments referred to herein constitute the entire contract between the Parties
and supersede all other understandings, written or oral, with respect to the subject matter of this Agreement.

8.13       Survival.
This Agreement shall constitute a binding obligation of the Company and any successor thereto. Notwithstanding any other provision in
this Agreement, the obligations under Sections 4, 5, 6, 7 and this Section 8 shall survive termination of this Agreement.

8.14       No
Limitation. Notwithstanding any other provision of this Agreement, for avoidance of doubt, the Parties confirm that the foregoing
does not apply to or limit Executive’s rights under the Company’s Certificate of Incorporation, as amended, and/or its Bylaws,
as amended.

8.15       Notices.
All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been given (i) when
delivered by hand; (ii) one (1) Business Day after deposited with a nationally-recognized overnight courier (e.g. FedEx); (iii) if mailed
by certified or registered mail with postage prepaid, on the third day after the date on which it is so mailed or (iv) if sent by email,
upon receipt by the sender of confirmation of delivery:

(1)               
if to Executive:

 

with a copy to:

 

(2)               
if to the Company:

  

with a copy to:

 

or to such other address as may have been furnished
to Executive by the Company or to the Company by Executive, as the case may be.

 

 

[Signature Page Follows]

 

     

     

    

EXECUTION COPY

 

 

IN WITNESS WHEREOF, the Parties have set their
hands and seals hereunto on the date first above written.

 

	 	NXT-ID, INC.
	 	 	 
	 	 	 
	 	 	 
	 	By:	/s/ Robert A. Curtis
	 	Name:	Robert A. Curtis
	 	Title:	Director
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	/s/ Chia-Lin Simmons
	 	 	CHIA-LIN SIMMONS

[Signature Page to Nxt-ID – Chia-Lin Simmons
Employment Agreement]

     

     

    

EXECUTION COPY

 

SCHEDULE 1

 

 

Certain Executive Duties

 

 

See Attached

 

SCHEDULE 2

 

Cash Bonus

 

See Attached

     

     

    

 

EXHIBIT A

 

 

Form of Restricted Stock Award Agreement –
Chia-Lin Simmons

 

See Attached

 

     

     

    

 

EXHIBIT B

 

 

Form of General Release

 

See Attached

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