Document:

Exhibit 10.1

 

TRANSITION SERVICES AGREEMENT

 

This TRANSITION SERVICES AGREEMENT (this
“Agreement”), dated as of _____, 2019 is by and among Nxt-ID, Inc., a Delaware corporation (“Nxt-ID”),
and PartX, Inc., a Delaware corporation (“SpinCo”). Each of Nxt-ID and SpinCo is sometimes referred to
herein as a “Party” and, collectively, as the “Parties.”

 

WHEREAS, Nxt-ID and SpinCo have
entered into a Separation and Distribution Agreement (the “Separation Agreement”) which contemplates (i) the
separation of SpinCo (the “Separation”) and (ii) the distribution to Nxt-ID’s stockholders of all
of the outstanding shares of SpinCo’s common stock (the “Distribution”); and

 

WHEREAS, in order to ensure an orderly
transition under the Separation Agreement it will be necessary for Nxt-ID to provide to SpinCo, and for SpinCo to provide to Nxt-ID,
the services described herein during the term of this Agreement.

 

NOW, THEREFORE, in consideration
of the above premises and the mutual covenants contained herein, it is agreed by and between the parties as follows:

 

ARTICLE I

FEES AND TERM

 

1.1    SpinCo Price/Payment.
As consideration for the services to be provided to SpinCo by Nxt-ID pursuant to Section 2.1 of this Agreement, SpinCo shall
pay to Nxt-ID a fee (the “SpinCo Services Fee”) in accordance with Schedule 2.1. The SpinCo Services
Fee shall be payable by SpinCo to Nxt-ID in arrears 15 days after the close of each month (prorated for any partial month) during
the term of this Agreement. Any services provided by Nxt-ID to SpinCo beyond the services covered by the SpinCo Services Fee shall
be billed to SpinCo at negotiated rates, no less favorable to SpinCo than if SpinCo had received the uncovered service from a third
party, or on such other basis as the parties may agree from time to time. The SpinCo Services Fee shall be reviewed and reduced
from time to time in accordance with Section 2.3.

 

1.2    Nxt-ID Price/Payment.
As consideration for the services to be provided to Nxt-ID by SpinCo pursuant to Section 3.1 of this Agreement, Nxt-ID shall
pay to SpinCo a fee (the “Nxt-ID Services Fee”) in accordance with Schedule 3.1. The Nxt-ID Services
Fee shall be payable by Nxt-ID to SpinCo in arrears 15 days after the close of each month (prorated for any partial month) during
the term of this Agreement. Any services provided by SpinCo to Nxt-ID beyond the services covered by the Nxt-ID Services Fee shall
be billed to Nxt-ID at negotiated rates, no less favorable to the Nxt-ID than if Nxt-ID had received the uncovered service from
a third party, or on such other basis as the parties may agree from time to time. The Nxt-ID Services Fee shall be reviewed and
reduced from time to time in accordance with Section 3.3.

 

     

     

    

 

1.3    Term.
The term of this Agreement (the “Term”) shall commence on the date hereof and shall expire one year after
the effective date of the Distribution (the “Distribution
Date”); provided, however, that either Party shall have the right to terminate any or all
of the services such Party is to receive hereunder and cease paying the services fee associated with the terminated services
which such Party would otherwise be required to pay therefor upon 30 days written notice to the other Party.

 

1.4    Additional
Services. At any time during the Term, if either Party identifies any service that is needed to assure a smooth and orderly
transition of the businesses and operations in connection with the Separation and the Distribution, and that is not otherwise governed
by the provisions of this Agreement, the Separation Agreement or any other agreement between the parties, then the parties shall
cooperate in determining whether there is a mutually acceptable arm’s-length basis on which one of the parties
will provide such service to the other Party in exchange for a fee.

 

ARTICLE II

SERVICES TO BE PROVIDED BY NXT-ID TO
SPINCO

 

2.1    Services.
Nxt-ID agrees to provide the services set forth on Schedule 2.1 (subject to such modification or adjustment as
may be mutually agreed upon by the parties) to SpinCo during the Term.

 

2.2    Details of
Performance. Reasonable details of Nxt-ID’s performance of services hereunder may be specified in one or more memoranda
signed by the parties and such memoranda shall be deemed incorporated in this Agreement by reference as if recited herein in their
entirety.

 

2.3    Phase Out
of Services; Reduction of SpinCo Services Fee. The parties hereby acknowledge that SpinCo will promptly take all steps to internalize
the services to be provided herein by acquiring its own staff or outsourcing to third parties. The parties agree to periodically
review the level of services being utilized by SpinCo, and from time to time to reduce the SpinCo Services Fee proportionately
to account for reductions in the level of services being provided hereunder.

 

ARTICLE III

SERVICES TO BE PROVIDED BY SPINCO TO
NXT-ID

 

3.1    Services.
SpinCo agrees to provide the services set forth on Schedule 3.1 (subject to such modification or adjustment as
may be mutually agreed upon by the parties) to Nxt-ID during the Term.

 

3.2    Details of
Performance. Reasonable details of SpinCo’s performance of services hereunder may be specified in one or more memoranda
signed by the parties and such memoranda shall be deemed incorporated in this Agreement by reference as if recited herein in their
entirety.

 

3.3    Phase Out
of Services; Reduction of Nxt-ID Services Fees. The parties hereby acknowledge that Nxt-ID will promptly take all steps to
internalize the services to be provided herein by acquiring its own staff or outsourcing to third parties. The parties agree to
periodically review the level of services being utilized by Nxt-ID, and from time to time to reduce the Nxt-ID Services Fee proportionately
to account for reductions in the level of services being provided hereunder.

 

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ARTICLE IV

MISCELLANEOUS

 

4.1    Confidentiality.
Neither Party hereto shall use or disclose to any other person at any time, any confidential or proprietary information or trade
secrets of the other Party, including, without limitation, its customer lists, programs, pricing and strategies except to those
of its employees and those other persons who need to know such information to fulfill such Party’s obligations hereunder,
provided that such Party shall require that such other persons agree to keep confidential such confidential or proprietary information
or trade secrets. Both parties shall provide to the other Party semi-annually upon such other Party’s written request, a
list of all employees whose duties have required access to confidential or proprietary information or trade secrets, and any other
employees or other persons who to the actual knowledge of that Party’s officers have had access to such information during
the preceding six (6) month period, in each case, designating whether such persons are in the employ of such Party as of the
date such list is provided. Both parties agree that all drawings, specifications, data, memoranda, calculations, notes and other
materials, including, without limitation, any materials containing confidential or proprietary information or trade secrets of
the other Party, furnished in connection with this Agreement and any copies thereof are and shall remain the sole and exclusive
property of that other Party and shall be delivered to that Party upon its request.

 

4.2    No Agency.
Both parties shall perform their respective services under this Agreement as an independent contractor. Each Party acknowledges
and agrees that it is not granted any express or implied authority to assume or create any obligation or responsibility on behalf
of the other Party, or to bind the other Party with regard to third parties in any manner.

 

4.3    Notices.
Any notices required or permitted to be provided pursuant to this Agreement shall be provided in writing via e-mail, certified
mail, hand-delivery, telecopier with confirmation or normal mail service, addressed to the recipient Party at its e-mail or
standard mailing address set forth on the signature page.

 

4.4    Force Majeure.
In the event that either Party is prevented from performing, or is unable to perform, any of its obligations under this Agreement
due to any act of God, fire, casualty, flood, war, strike, lock out, failure of public utilities, injunction or any act, exercise,
assertion or requirement of governmental authority, epidemic, destruction of production facilities, insurrection, inability to
procure materials, labor, equipment, transportation or energy sufficient to meet manufacturing needs, or any other cause beyond
the reasonable control of the Party invoking this provision, and if such Party shall have used its best efforts to avoid such occurrence
and minimize its duration and has given prompt written notice to the other Party, then the affected Party’s performance for
the period of delay or inability to perform due to such occurrence shall be suspended. Should either Party fail to perform hereunder
and shall have provided proper notice to the other Party that it is unable to perform on account of one or more reasons set forth
in this section, such Party may obtain replacement services from a third party for the duration of such delay or inability to perform,
or for such longer period as such Party shall be reasonably required to commit to in order to obtain such replacement services
and the services fee payable by such Party shall be reduced accordingly.

 

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ARTICLE V

GENERAL PROVISIONS

 

5.1    Entire Agreement.
Except as contemplated in Sections 2.3 and 3.3, this Agreement embodies the entire agreement and understanding of the parties hereto
with respect to the subject matter hereof, and supersedes all prior agreements and understandings relative to said subject matter.

 

5.2    Binding Effect.
This Agreement shall be binding upon, and shall inure to the benefit of Nxt-ID, SpinCo and their respective successors and assigns.

 

5.3    Assignment.
Neither this Agreement nor any rights or obligations hereunder shall be assignable by either Party without the prior written consent
of the other Party hereto, which consent shall not be unreasonably withheld.

 

5.4    Governing
Law. This Agreement shall be governed by and construed in accordance with the law of the State of Delaware applicable to contracts
to be performed entirely in that State.

 

5.5    Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which together shall
constitute one and the same instrument.

 

5.6    Headings.
The headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of
this Agreement.

 

(Signatures Appear On Next Page)

 

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IN WITNESS WHEREOF, the parties have caused
this Agreement to be signed as of the date first above written.

 

	 	NXT-ID:
	 	 
	 	NXT-ID, INC.
	 	 	 
	 	By:	 
	 	Name:	Gino M. Pereira
	 	Title: 	Chief Executive Officer
	 	 	 
	 	Address: 	285 North Drive, Suite D
	 	 	Melbourne, FL 32934
	 	 	Attn: Chief Executive Officer
	 	 	 
	 	SPINCO:
	 	 
	 	PartX, Inc.
	 	 	 
	 	By:	 
	 	Name:	Michael J. Orlando
	 	Title:	President and Chief Executive Officer
	 	 	 
	 	Address:	
        5650 El Camino Real

        Carlsbad, CA 92008

        Attn: Chief Executive Officer

 

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Schedule 2.1

 

Nxt-ID Services

 

To be mutually agreed upon by Nxt-ID and SpinCo prior to the
Spin-Off. This Schedule may be amended by the parties from time to time by mutual consent. 

 

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Schedule 3.1

 

SpinCo Services

 

To be mutually agreed upon by Nxt-ID and SpinCo prior
to the Spin-Off. This Schedule may be amended by the parties from time to time by mutual consent. 

 

 

7Exhibit 10.2

 

 

TAX MATTERS AGREEMENT

 

by and among

 

Nxt-ID, Inc.

 

and

 

PartX, Inc.

 

Dated as of ___________, 2019

 

     

     

    

 

TAX MATTERS AGREEMENT

 

THIS TAX MATTERS AGREEMENT (this “Agreement”),
dated as of _______, 2019 is by and among Nxt-ID, Inc., a Delaware corporation (“Nxt-ID”), and PartX,
Inc., a Delaware corporation (“PartX”). Each of Nxt-ID and PartX is sometimes referred to herein as a
“Party” and, collectively, as the “Parties.”

 

WHEREAS, Nxt-ID and PartX have entered
into the Separation Agreement pursuant to which (a) (i) Nxt-ID will transfer all of the shares of Fit-Pay to PartX and
(ii) Nxt-ID will, and will cause its Subsidiaries to, transfer certain assets, liabilities and subsidiaries of the Payments Business
to PartX, as a result of which PartX will own, directly and indirectly through its Subsidiaries, the Payments Business and will
not own any of the Security Technology Business (collectively, the “Internal Reorganization”), (b) the
Share Exchange (as defined in the Separation Agreement) and (c) Nxt-ID will distribute, on a pro rata basis, all of the issued
and outstanding shares of PartX Common Stock owned by Nxt-ID to the holders of Nxt-ID Common Stock1 (the “Distribution”)
as described therein;

 

WHEREAS, the Parties wish to provide for
the payment of Tax liabilities and entitlement to refunds thereof, allocate responsibility for, and cooperation in, the filing
of Tax Returns, and provide for certain other matters relating to Taxes;

 

WHEREAS, it is the intention of the Parties
that the Internal Reorganization together with the distribution by Nxt-ID of all of the PartX Common Stock owned by Nxt-ID in the
Distribution, qualify as a reorganization and tax-free distribution within the meaning of Sections 368(a)(1)(D) and 355
of the Code (the “Intended Tax Treatment”);

 

NOW, THEREFORE, in consideration of the
foregoing and the representations, warranties, covenants and agreements contained herein, and intending to be legally bound hereby,
the Parties agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

Section 1.01 General.
As used in this Agreement, the following terms shall have the following meanings:

 

“Accounting Firm” has the meaning
set forth in Section 8.01.

 

“Adjustment” means an adjustment of
any item of income, gain, loss, deduction, credit or any other item affecting Taxes of a taxpayer pursuant to a Final Determination.

 

“Agreement” has the meaning set forth
in the preamble to this Agreement.

 

“Ancillary Agreement” has the meaning
set forth in the Separation Agreement.

 

 

 

 

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“Carryback” has the meaning set forth
in Section 5.02.

 

“Code” means the Internal Revenue
Code of 1986, as amended.

 

“Common Parent” means the “common
parent corporation” of an “affiliated group” (in each case, within the meaning of Section 1504 of the Code)
filing a U.S. federal consolidated Income Tax Return.

 

“Distribution” has the meaning set
forth in the recitals to this Agreement.

 

“Distribution Date” means the date
on which the Distribution is paid.

 

“Distribution Taxes” mean, without
duplication, (i) any and all U.S. federal, state and local Income Taxes required to be paid by or imposed on a Party or any
of its Affiliates resulting from, or directly arising in connection with, the failure of any of the Internal Reorganization or
the Distribution to qualify for the Intended Tax Treatment (or the failure to qualify under or the application of corresponding
provisions of the Laws of any U.S. state or local jurisdiction), and (ii) [reserved].

 

“Due Date” means (a) with respect
to a Tax Return, the date (taking into account all valid extensions) on which such Tax Return is required to be filed under applicable
Law and (b) with respect to a payment of Taxes, the date on which such payment is required to be made to the applicable Taxing
Authority to avoid the incurrence of interest, penalties and/or additions to Tax.

 

“Employee Matters Agreement” means
the Employee Matters Agreement by and between the Parties dated as of the date hereof.

 

“Extraordinary Transaction” means
any action that is not in the Ordinary Course of Business, but shall not include (a) any action described in or contemplated
by the Separation Agreement or any Ancillary Agreement, (b) any action that is undertaken pursuant to the Internal Reorganization
or the Distribution, or (c) any compensatory payment or compensatory transfer in respect of services made as a result of,
or in connection with, the Internal Reorganization or the Distribution (which shall be treated as paid immediately before the Distribution
on the Distribution Date).

 

“Final Determination” means the final
resolution of liability for any Tax for any taxable period, by or as a result of (a) a final decision, judgment, decree or
other order by any court of competent jurisdiction that can no longer be appealed to a court other than the Supreme Court of the
United States, (b) a final settlement with the IRS, a closing agreement or accepted offer in compromise under Sections 7121
or 7122 of the Code, or a comparable agreement under the Laws of other jurisdictions, which resolves the entire Tax liability for
any taxable period, (c) any allowance of a refund or credit in respect of an overpayment of Tax, but only after the expiration
of all periods during which such refund or credit may be recovered by the jurisdiction imposing the Tax, or (d) any other
final resolution, including by reason of the expiration of the applicable statute of limitations or the execution of a pre-filing agreement
with the IRS or other Taxing Authority.

 

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“Governmental Authority”
means any government, governmental or quasi-governmental authority, or any regulatory entity or body, department, commission, board,
agency, instrumentality, taxing authority, political subdivision, bureau, and any court, tribunal, or judicial body, in each case
whether supranational, national, federal, state, municipal, county or provincial, and whether local or foreign.

 

“Group” of which a Person is a member
means (i) the Nxt-ID Group if the Person is a member of the Nxt-ID Group, and (ii) the PartX Group if the Person is a
member of the PartX Group.

 

“Income Tax Return” means any Tax
Return on which Income Taxes are reflected or reported.

 

“Income Taxes” means any net income,
net receipts, net profits, excess net profits or similar Taxes based upon, measured by, or calculated with respect to net income.

 

“Indemnified Party” means the Party
which is entitled to seek indemnification from the other Party pursuant to the provisions of Article IV.

 

“Indemnifying Party” means the Party
from which the other Party is entitled to seek indemnification pursuant to the provisions of Article IV.

 

“Information” has the meaning set
forth in Section 7.01(a).

 

“Internal Reorganization” has the
meaning set forth in the recitals to this Agreement.

 

“IRS” means the U.S. Internal Revenue
Service.

 

“Law” means any U.S. or non-U.S. federal,
national, supranational, state, provincial, local or similar statute, law, ordinance, regulation, rule, code, administrative pronouncement,
order, requirement or rule of law (including common law).

 

“Legal Proceeding”
means any claim, action, charge, lawsuit, litigation, arbitration, hearing or proceeding that has been made public or of which
written notice has been received, administrative enforcement proceeding or other similarly formal legal proceeding (including civil,
criminal, administrative or appellate proceeding) commenced, brought, conducted or heard by or pending before any Governmental
Authority, arbitrator, mediator or other tribunal.

 

“Mixed Business Income Tax Return”
means any Mixed Business Tax Return on which Income Taxes are reflected or reported.

 

“Mixed Business Tax Return” means
any Tax Return (other than a Nxt-ID Consolidated Return), including any consolidated, combined or unitary Tax Return, that reflects
or reports Taxes that relate to at least one asset or activity that is part of the Security Technology Business, on the one hand,
and at least one asset or activity that is part of the Payments Business, on the other hand.

 

“Nxt-ID” has the meaning set forth
in the preamble to this Agreement.

 

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“Nxt-ID Consolidated Return” means
the U.S. federal Income Tax Return required to be filed by Nxt-ID as the Common Parent.

 

“Nxt-ID Consolidated Taxes” means
any U.S. federal Income Taxes attributable to any Nxt-ID Consolidated Return.

 

“Nxt-ID Entity” means any Subsidiary
of Nxt-ID immediately after the Distribution.

 

“Nxt-ID Group” means, individually
or collectively, as the case may be, Nxt-ID and any Nxt-ID Entity, excluding any member of the PartX Group.

 

“Nxt-ID Taxes” means, without duplication,
(a) any Nxt-ID Consolidated Taxes, (b) any Taxes imposed on PartX or any member of the PartX Group under Treasury Regulations Section 1.1502-6 (or
any similar provision of other Law) as a result of PartX or any such member being or having been included as part of a Nxt-ID Consolidated
Return (or similar consolidated or combined Tax Return under any other provision of Law), (c) any Taxes of the Nxt-ID Group
and any former Subsidiary of Nxt-ID (excluding any member of the PartX Group) for any Pre-Closing Period, (d) any
Nxt-ID Transaction Taxes, (e) any Transfer Taxes and (f) any Taxes attributable to an Extraordinary Transaction occurring
after the Distribution on the Distribution Date by Nxt-ID or a Nxt-ID Entity, in each case (x) other than PartX Taxes and
(y) including any Taxes resulting from an Adjustment.

 

“Nxt-ID Transaction Taxes” means any
Taxes (a) imposed on or by reason of the Internal Reorganization or the Distribution and (b) payable by reason of the
distribution of cash or other property from PartX to Nxt-ID (in each case including Transfer Taxes imposed on such transactions
described in (a) and (b)). For the avoidance of doubt, Nxt-ID Transaction Taxes include, without limitation, Taxes payable
by reason of deferred intercompany transactions or excess loss accounts triggered by the Internal Reorganization or the Distribution.

 

“Ordinary Course of Business” means
an action taken by a Person only if such action is taken in the ordinary course of the normal operations of such Person.

 

“PartX” has the meaning set forth
in the preamble to this Agreement.

 

“PartX Common Stock” has the meaning
set forth in the Separation Agreement.

 

“PartX Entity” means any Subsidiary
of PartX immediately after the Distribution.

 

“PartX Group” means, individually
or collectively, as the case may be, PartX and any PartX Entity.

 

“PartX Taxes” means, without duplication,
(a) any Taxes of (i) Nxt-ID or any Subsidiary or former Subsidiary of Nxt-ID attributable to assets or activities of
the Payments Business, as determined pursuant to Section 2.09 [with respect to activities during the Pre-Closing
Period] or (ii) PartX or any Subsidiary of PartX and (b) any Taxes attributable to an Extraordinary Transaction occurring
after the Distribution on the Distribution Date by PartX or a PartX Entity.

 

“Party” and “Parties”
have the meaning set forth in the preamble to this Agreement.

 

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“Past Practice” means past practices,
accounting methods, elections and conventions.

 

“Payments Business” has the meaning
set forth in the Separation Agreement.

 

“Person” has the meaning set forth
in the Separation Agreement.

 

“Post-Closing Period” means any taxable
period (or portion thereof) beginning after the Distribution Date, including for the avoidance of doubt, the portion of any Straddle
Period beginning on the day after the Distribution Date.

 

“Pre-Closing Period” means any
taxable period (or portion thereof) ending on or before the Distribution Date, including for the avoidance of doubt, the portion
of any Straddle Period ending at the end of the day on the Distribution Date.

 

“Preparing Party” has the meaning
set forth in Section 2.04(a)(ii).

 

“Privilege” means any privilege that
may be asserted under applicable Law, including any privilege arising under or relating to the attorney-client relationship (including
the attorney-client and work product privileges), the accountant-client privilege and any privilege relating to internal evaluation
processes.

 

“Proposed Acquisition Transaction”
means a transaction or series of transactions (i) as a result of which any of the Parties would merge or consolidate with
any other Person, or (ii) as a result of which any Person or any group of Persons would (directly or indirectly) acquire,
or have the right to acquire (through an option or otherwise), from any of the Parties or any of their Affiliates and/or one or
more holders of their stock, respectively, any amount of stock of any of the Parties that would, when combined with any other changes
in ownership of the stock of such Party, result in a shift of more than forty-nine percent (49%) of (a) the value of
all outstanding shares of stock of such Party as of the Distribution Date, or (b) the total combined voting power of all outstanding
shares of voting stock of such Party as of the Distribution Date. Notwithstanding the foregoing, a Proposed Acquisition Transaction
shall not include (i) the adoption by a Party of, or the issuance of stock pursuant to, a stockholder rights plan or (ii) transactions
that satisfy Safe Harbor VIII (relating to acquisitions in connection with a person’s performance of services) or Safe Harbor
IX (relating to acquisitions by a retirement plan of an employer) of Treasury Regulations Section 1.355-7(d). For purposes
of determining whether and to what extent a transaction constitutes an indirect acquisition for purposes of the first sentence
of this definition, any recapitalization or other action resulting in a shift of voting power or any redemption or repurchase of
shares of stock shall be treated as an indirect acquisition of shares of stock by the benefitted or non-exchanging stockholders.
Notwithstanding the previous sentence, the effect of any such recapitalization, other action, or redemption or repurchase (directly
or indirectly) of shares shall take into account any applicable IRS private letter ruling received by one or more of the Parties
with respect thereto. This definition and the application thereof is intended to monitor compliance with Section 355(e) of
the Code and the Treasury Regulations promulgated thereunder and shall be interpreted accordingly by the Parties in good faith.

 

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“Refund” means any refund (or credit
in lieu thereof) of Taxes (including any overpayment of Taxes that can be refunded or, alternatively, applied to other Taxes payable),
including any interest paid on or with respect to such refund of Taxes; provided, however, that for purposes
of this Agreement, the amount of any Refund required to be paid to another Party shall be reduced by the net amount of any Income
Taxes imposed on, related to, or attributable to, the receipt or accrual of such Refund.

 

“Restricted Period” means the period beginning
at the Distribution Date and ending on the two-year anniversary of the day after the Distribution Date.

 

“Reviewing Party” has the meaning
set forth in Section 2.04(a)(ii).

 

“Security Technology Business” has
the meaning set forth in the Separation Agreement.

 

“Separation Agreement” means the Separation
and Distribution Agreement by and between Nxt-ID and PartX dated as of the date hereof.

 

“Single Business Return” means any
Tax Return including any consolidated, combined or unitary Tax Return, that reflects or reports Tax Items relating only to the
Security Technology Business, on the one hand, or the Payments Business, on the other (but not both).

 

“Single Business Return Preparing Party”
has the meaning set forth in Section 2.04(b).

 

“Single Business Return Reviewing Party”
has the meaning set forth in Section 2.04(b).

 

“Straddle Period” means any taxable
period that begins on or before and ends after the Distribution Date.

 

“Subsidiary” means, with respect to
any Person (a) a corporation more than fifty percent (50%) of the voting or capital stock of which is owned, directly
or indirectly, by such Person or (b) a limited liability company, partnership, joint venture, association, joint stock company,
trust, unincorporated organization or other entity in which such Person, directly or indirectly, owns more than fifty percent (50%) of
the equity economic interests thereof or for which such Person, directly or indirectly, has the power to elect or direct the election
of more than fifty percent (50%) of the members of the governing body or which such Person otherwise has control (e.g., as
the managing partner or managing member of a partnership or limited liability company, as the case may be).

 

“Tax” means (a) all taxes, charges,
fees, duties, levies, imposts, or other similar assessments, imposed by any Governmental Authority, including net income, gross
income, gross receipts, excise, real property, personal property, sales, use, service, service use, license, lease, capital stock,
transfer, recording, franchise, business organization, occupation, premium, environmental, windfall profits, profits, customs,
duties, payroll, wage, withholding, social security, employment, unemployment, insurance, severance, workers compensation, excise,
stamp, alternative minimum, estimated, value added, ad valorem, hospitality, accommodations, transient accommodations, unclaimed
property, escheat and other taxes, charges, fees, duties, levies, imposts, or other similar assessments, (b) any interest,
penalties or additions attributable thereto and (c) all liabilities in respect of any items described in clauses (a) or
(b) payable by reason of assumption, transferee or successor liability, operation of Law or Treasury Regulation Section 1.1502-6(a) (or
any predecessor or successor thereof or any analogous or similar provision under Law).

 

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“Tax Attributes” means net operating
losses, capital losses, tax credit carryovers, earnings and profits, foreign tax credit carryovers, overall foreign losses, previously
taxed income, tax bases, separate limitation losses and any other losses, deductions, credits or other comparable items that could
affect a Tax liability for a past or future taxable period.

 

“Tax Benefit” means any refund, credit,
or other reduction in Tax payments otherwise required to be made to a Taxing Authority, including for the avoidance of doubt, any
actual Tax savings if, as and when realized arising from a step-up in Tax basis or an increase in a Tax Attribute.

 

“Tax Cost” means any increase in Tax
payments otherwise required to be made to a Taxing Authority (or any reduction in any refund otherwise receivable from any Taxing
Authority).

 

“Tax Group” means the members of a
consolidated, combined, unitary or other tax group (determined under applicable U.S., State or foreign Income Tax law) which includes
Nxt-ID or PartX, as the context requires, but for the avoidance of doubt, (i) Nxt-ID’s Tax Group does not include any
members of the PartX Group and (ii) PartX’s Tax Group does not include any members of the Nxt-ID Group.

 

“Tax Item” means any item of income,
gain, loss, deduction, credit, recapture of credit or any other item which increases or decreases Taxes paid or payable.

 

“Tax Matter” has the meaning set forth
in Section 7.01(a).

 

“Tax Opinions” mean certain Tax opinions
and supporting memoranda rendered by CohnReznick to Nxt-ID or any of its Affiliates in connection with the Separation Agreement.

 

“Tax Proceeding” means any audit,
assessment of Taxes, pre-filing agreement, other examination by any Taxing Authority, proceeding, appeal of a proceeding
or litigation relating to Taxes, whether administrative or judicial, including proceedings relating to competent authority determinations.

 

“Tax Representation Letter” means
any letter containing certain representations and covenants issued by Nxt-ID or any of its Affiliates to CohnReznick in connection
with the Tax Opinions.

 

“Tax Return” means any return, report,
certificate, form or similar statement or document (including any related or supporting information or schedule attached thereto
and any information return, or declaration of estimated Tax) required to be supplied to, or filed with, a Taxing Authority in connection
with the payment, determination, assessment or collection of any Tax or the administration of any Laws relating to any Tax and
any amended Tax return or claim for refund.

 

“Taxing Authority” means any Governmental
Authority or any subdivision, agency, commission or entity thereof or any quasi-governmental or private body having jurisdiction
over the assessment, determination, collection or imposition of any Tax (including the IRS).

 

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“Transfer Taxes” means all sales,
use, transfer, real property transfer, intangible, recordation, registration, documentary, stamp or similar Taxes imposed on the
Internal Reorganization, the Share Exchange or the Distribution.

 

“Treasury Regulations” means the final
and temporary (but not proposed) Income Tax regulations promulgated under the Code, as such regulations may be amended from time
to time (including corresponding provisions of succeeding regulations).

 

“U.S.” means the United States of
America.

 

Section 1.02 Additional Definitions.
Capitalized terms not defined in this Agreement shall have the meaning ascribed to them in the Separation Agreement.

 

ARTICLE II

 

PREPARATION, FILING AND PAYMENT OF TAXES
SHOWN DUE ON TAX RETURNS

 

Section 2.01 Nxt-ID Consolidated
Returns.

 

(a) Nxt-ID Consolidated Returns.
Nxt-ID shall prepare and file all Nxt-ID Consolidated Returns for a Pre-Closing Period or a Straddle Period, and shall
pay all Taxes shown to be due and payable on such Tax Returns; provided that PartX shall reimburse Nxt-ID for
any such Taxes that are PartX Taxes.

 

(b) Extraordinary Transactions.
Notwithstanding anything to the contrary in this Agreement, for all Tax purposes, the Parties shall report any Extraordinary Transactions
that are caused or permitted by PartX or any PartX Entity on the Distribution Date after the Distribution as occurring on the day
after the Distribution Date pursuant to Treasury Regulation Section 1.1502-76(b)(1)(ii)(B) or any similar or analogous
provision of state, local or foreign Law.

 

Section 2.02 Mixed Business
Tax Returns.

 

(a) Subject to Section 2.02(b),
Nxt-ID shall prepare (or cause a Nxt-ID Entity to prepare) and Nxt-ID, a Nxt-ID Entity or PartX shall file (or cause to be filed)
any Mixed Business Tax Returns for a Pre-Closing Period or a Straddle Period and shall pay, or cause such Nxt-ID Entity
to pay, all Taxes shown to be due and payable on such Tax Returns; provided that PartX shall reimburse Nxt-ID
for any such Taxes that are PartX Taxes.

 

(b) PartX shall prepare and file (or cause
a PartX Entity to prepare and file) any Mixed Business Tax Returns for a Pre-ClosingPeriod or a Straddle Period required to
be filed by PartX or a PartX Entity after the Distribution Date, and PartX shall pay, or cause such PartX Entity to pay, all Taxes
shown to be due and payable on such Tax Returns; provided that Nxt-ID shall reimburse PartX for any such Taxes
that are Nxt-ID Taxes.

 

    9

     

    

 

Section 2.03 Single Business
Returns.

 

(a) Nxt-ID shall prepare and file (or
cause a Nxt-ID Entity to prepare and file) any Single Business Returns for a Pre-Closing Period or a Straddle Period
required to be filed by Nxt-ID or a Nxt-ID Entity and shall pay, or cause such Nxt-ID Entity to pay, all Taxes shown to be due
and payable on such Tax Returns; provided that PartX shall reimburse Nxt-ID for any such Taxes that are PartX
Taxes.

 

(b) PartX shall prepare and file (or cause
a PartX Entity to prepare and file) any Single Business Returns for a Pre-Closing Period or a Straddle Period required
to be filed by PartX or a PartX Entity and shall pay, or cause such PartX Entity to pay, all Taxes shown to be due and payable
on such Tax Returns; provided that Nxt-ID shall reimburse PartX for any such Taxes that are Nxt-ID Taxes.

 

Section 2.04 Tax Return Procedures.

 

(a) Procedures relating to Tax
Returns other than Single Business Returns.

 

(i) Nxt-ID Consolidated Returns. With
respect to all Nxt-ID Consolidated Returns for the taxable year which includes the Distribution Date, Nxt-ID shall use the closing
of the books method under (A) Treasury Regulation Section 1.1502-76 (including adopting the “end of the
day rule” described therein) and (B) Section 382 of the Code and any applicable Treasury Regulations promulgated
thereunder. To the extent that the positions taken on any Nxt-ID Consolidated Tax Return would reasonably be expected to materially
adversely affect the Tax position of PartX or a PartX Entity for any period after the Distribution Date, Nxt-ID shall prepare the
portions of such Tax Return that relates to the Payments Business in a manner that is consistent with Past Practice unless otherwise
required by applicable Law or agreed to in writing by the Parties, and shall provide a draft of such portion of such Tax Return
to PartX for its review and comment at least thirty (30) days prior to the Due Date for such Tax Return, provided, however,
that nothing herein shall prevent Nxt-ID from timely filing any such Tax Return. In the event that Past Practice is not applicable
to a particular item or matter, Nxt-ID shall determine the reporting of such item or matter in good faith. The Parties shall negotiate
in good faith to resolve all disputed issues. Any disputes that the Parties are unable to resolve shall be resolved by the Accounting
Firm pursuant to Section 8.01. In the event that any dispute is not resolved (whether pursuant to good faith negotiations
among the Parties or by the Accounting Firm) prior to the Due Date for the filing of any such Tax Return, such Tax Return shall
be timely filed by Nxt-ID and Nxt-ID agrees to amend such Tax Return as necessary to reflect the resolution of such dispute in
a manner consistent with such resolution.

 

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(ii) Mixed Business
Tax Returns. To the extent that the positions taken on any Mixed Business Tax Return would reasonably be expected to materially
adversely affect the Tax position of the Party other than the Party that is required to prepare and file any such Tax Return pursuant
to Section 2.02 (the “Reviewing Party”) in any Post-Closing Period, the Party required
to prepare and file such Tax Return (the “Preparing Party”) shall prepare the portions of such Tax Return
that relates to the business of the Reviewing Party (the Payments Business or the Security Technology Business, as the case may
be) in a manner that is consistent with Past Practice unless otherwise required by applicable Law or agreed to in writing by the
Parties, and shall provide a draft of such portion of such Tax Return to the Reviewing Party for its review and comment at least
thirty (30) days prior to the Due Date for such Tax Return, provided, however, that nothing herein
shall prevent the Preparing Party from timely filing any such Tax Return. In the event that Past Practice is not applicable to
a particular item or matter, the Preparing Party shall determine the reporting of such item or matter in good faith. The Parties
shall negotiate in good faith to resolve all disputed issues. Any disputes that the Parties are unable to resolve shall be resolved
by the Accounting Firm pursuant to Section 8.01. In the event that any dispute is not resolved (whether pursuant
to good faith negotiations among the Parties or by the Accounting Firm) prior to the Due Date for the filing of any such Tax Return,
such Tax Return shall be timely filed by the Preparing Party and the Parties agree to amend such Tax Return as necessary to reflect
the resolution of such dispute in a manner consistent with such resolution.

 

(b) Procedures relating to Single
Business Returns. The Party that is required to prepare and file any Single Business Return pursuant to Section 2.03
(the “Single Business Return Preparing Party”) which reflects Taxes which are reimbursable by the other
Party (the “Single Business Return Reviewing Party”), in whole or in part, shall (x) unless otherwise
required by Law or agreed to in writing by the Single Business Return Reviewing Party, prepare such Tax Return in a manner consistent
with Past Practice to the extent such items affect the Taxes for which the Single Business Return Reviewing Party is responsible
pursuant to this Agreement, and (y) submit to the Single Business Return Reviewing Party a draft of any such Tax Return (or
to the extent practicable the portion of such Tax Return that relates to Taxes for which the Single Business Return Reviewing Party
is responsible pursuant to this Agreement) along with a statement setting forth the calculation of the Tax shown due and payable
on such Tax Return reimbursable by the Single Business Return Reviewing Party under Section 2.03 at least thirty
(30) days prior to the Due Date for such Tax Return provided, however, that nothing herein shall prevent
the Single Business Return Preparing Party from timely filing any such Single Business Return. The Parties shall negotiate in good
faith to resolve all disputed issues provided, however, that the Single Business Return Preparing Party shall not
be required to reflect or cause to be reflected comments to the extent such comments are inconsistent with the U.S. Preparation
Standard. Any disputes that the Parties are unable to resolve shall be resolved by the Accounting Firm pursuant to Section
8.01. In the event that any dispute is not resolved (whether pursuant to good faith negotiations among the Parties or by
the Accounting Firm) prior to the Due Date for the filing of any Single Business Return, such Single Business Return shall be timely
filed by the Single Business Return Preparing Party and the Parties agree to amend such Single Business Return as necessary to
reflect the resolution of such dispute in a manner consistent with such resolution.

 

(c) General. All such Tax Returns
shall be prepared in a manner consistent with the Intended Tax Treatment, the Tax Representation Letters, the Tax Opinions,
and otherwise in a manner consistent with this Agreement (the “U.S. Preparation Standard”),

 

    11

     

    

 

Section 2.05 Amended Returns.
Except as provided in Section 2.04 to reflect the resolution of any dispute by the Accounting Firm pursuant
to Section 8.01, (a) except with the prior written consent of Nxt-ID (such consent not to be unreasonably withheld,
delayed or conditioned), PartX shall not, and shall not permit any PartX Entity to, amend any Tax Return of PartX or any PartX
Entity for any Pre-Closing Period or Straddle Period to the extent such amendment could reasonably be expected to result
in an indemnification obligation on the part of Nxt-ID pursuant to Article IV or otherwise increase the Taxes of
any member of the Nxt-ID Group and (b) except with the prior written consent of PartX (such consent not to be unreasonably
withheld, delayed or conditioned), Nxt-ID shall not, and shall not permit any Nxt-ID Entity to, amend any Tax Return for any Pre-Closing
Period or Straddle Period to the extent such amendment could reasonably be expected to result in an indemnification obligation
on the part of PartX pursuant to Article IV or otherwise increase the Taxes of any member of the PartX Group. Notwithstanding
the forgoing, any amended Tax Return shall be prepared in a manner: consistent with the U.S. Preparation Standard.

 

Section 2.06 Straddle Period
Tax Allocation. Nxt-ID and PartX shall take all actions necessary or appropriate to close the taxable year of PartX and each
PartX Entity for all Tax purposes as of the close of the Distribution Date to the extent permissible or required under applicable
Law. If applicable Law does not require or permit PartX or a PartX Entity, as the case may be, to close its taxable year on the
Distribution Date, then the allocation of income or deductions required to determine any Taxes or other amounts attributable to
the portion of the Straddle Period ending on, or beginning after, the Distribution Date shall be made by means of a closing of
the books and records of PartX or such PartX Entity as of the close of the Distribution Date; provided that exemptions,
allowances or deductions that are calculated on an annual or periodic basis shall be allocated between such portions in proportion
to the number of days in each such portion; provided, further, that real property and other property or
similar periodic Taxes shall be apportioned on a per diem basis.

 

Section 2.07 Timing of Payments.
All Taxes required to be paid or caused to be paid pursuant to this Article II by either Nxt-ID or a Nxt-ID Entity
or PartX or a PartX Entity, as the case may be, to an applicable Taxing Authority or reimbursed by Nxt-ID or PartX to the other
Party pursuant to this Agreement, shall, in the case of a payment to a Taxing Authority, be paid on or before the Due Date for
the payment of such Taxes and, in the case of a reimbursement to the other Party, be paid at least two (2) business days before
the Due Date for the payment of such Taxes by the other Party; provided that the Party seeking reimbursement shall furnish such
other Party reasonably satisfactory documentation setting forth the basis for, and calculation of, the amount of such reimbursement
obligation at least twenty (20) days before such Due Date.

 

Section 2.08 Expenses.
Except as provided in Section 8.01 in respect of the expenses relating to the Accounting Firm, each Party shall bear
its own expenses incurred in connection with this Article II.

 

Section 2.09 Apportionment
of PartX Taxes. For all purposes of this Agreement, but subject to Section 5.03, Nxt-ID and PartX shall jointly
determine in good faith which Tax Items are properly attributable to assets or activities of the Payments Business (and in the
case of a Tax Item that is properly attributable to both the Payments Business and the Security Technology Business, the allocation
of such Tax Item between the Payments Business and the Security Technology Business) in a manner consistent with the Past Practices
of the Parties and the provisions of this Agreement and any disputes shall be resolved by the Accounting Firm in accordance with
Section 8.01.

 

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Section 2.10 Distribution
Tax Reporting. The Parties shall cause the Distribution to be reported to the IRS in accordance with the Code, including, without
limitation, the preparation and due filing of Form 8806 and Form 1099-Cap.

 

ARTICLE III

 

DISTRIBUTION TAXES 

 

Section 3.01 Liability for Distribution
Taxes. In the event that Distribution Taxes become due and payable to a Taxing Authority pursuant to a Final Determination,
then, notwithstanding anything to the contrary in this Agreement:

 

(a) No Fault. If
such Distribution Taxes are not attributable to the Fault for Distribution Purposes of any Party or any of its Affiliates, the
responsibility for such Distribution Taxes shall be allocated equally between the Parties.

 

(b) Fault. If such
Distribution Taxes are attributable to the Fault for Distribution Purposes of one or more Parties or any of their Affiliates, the
responsibility for such Distribution Taxes shall reside with the Party or Parties at Fault for Distribution Purposes. If more than
one Party is at Fault for Distribution Purposes, the responsibility for the Distribution Taxes shall be allocated equally between
the Parties at Fault for Distribution Purposes. Notwithstanding anything to the contrary in this Agreement, such Distribution Taxes
shall not be subject to Article II of this Agreement.

 

Section 3.02 Definition
of Fault for Distribution Purposes.

 

(a) For purposes of this Agreement, Distribution
Taxes shall be deemed to result from the fault (“Fault for Distribution Purposes”) of a Party if such
Distribution Taxes are attributable to, or result from:

 

(i) any
act, or failure or omission to act, by such Party or any of such Party’s Affiliates that results in one or more Parties (or
any of their Affiliates) being responsible for such Distribution Taxes pursuant to a Final Determination,

 

(ii) the direct or indirect
acquisition of all or a portion of the stock of such Party (or any transaction or series of related transactions that is
deemed to be such an acquisition for purposes of Section 355(e) of the Code and the Treasury Regulations
promulgated thereunder) by any means whatsoever by any person including pursuant to an issuance or repurchase of stock by
such Party or any of its Affiliates, as determined pursuant to a Final Determination.

 

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(b) In order to monitor compliance with
Section 355(e) of the Code and the Treasury Regulations promulgated thereunder during the Restricted Period, neither
PartX nor Nxt-ID shall (or allow any of its Subsidiaries to take any such action with respect to PartX or Nxt-ID) without the consent
of the other Party take any steps in connection with a Proposed Acquisition Transaction or allow any Proposed Acquisition Transaction
to occur.

 

Provided, however, that a Party (the “Requesting
Party”) shall be permitted to take such action or one or more actions set forth in the foregoing paragraph, if such
action is described in the Separation Agreement or if, prior to taking any such actions: (i) such Requesting Party shall have
received a favorable private letter ruling from the IRS, or a ruling from another Taxing Authority (a “Post-Distribution
Ruling”), in form and substance reasonably satisfactory to the other Party and upon which Nxt-ID and PartX are entitled
to rely that confirms that such action or actions will not result in Distribution Taxes, taking into account such actions and any
other relevant transactions in the aggregate; (ii) such Requesting Party shall have received an unqualified tax opinion that
confirms that such action or actions will not result in Distribution Taxes, taking into account such actions and any other relevant
transactions in the aggregate; or (3) such Requesting Party shall have received a written statement from the other Party that
provides that such other Party waives the requirement to obtain a Post-Distribution Ruling or unqualified tax opinion described
in this paragraph. The Requesting Party shall bear all costs and expenses of securing any such Post-Distribution Ruling or unqualified
tax opinion.

 

Section 3.03 Tax Representation
Letters, and Tax Opinions; Consistency. Each Party represents that the information and representations furnished with respect
to such Party or its Subsidiaries in or in connection with the Tax Representation Letters, and the Tax Opinions are accurate and
complete as of the Spin-Off Date. Each Party covenants that if, after the Spin-Off Date, it or any of its Affiliates obtains information
indicating, or otherwise becomes aware, that any such information or representations is or may be inaccurate or incomplete, to
promptly inform the other Party.

 

Section 3.04 Timing
of Payment of Taxes. All Distribution Taxes required to be paid or caused to be paid by a Party to a Taxing Authority under
applicable Law shall be paid or caused to be paid by such Party on or prior to the date on which such Distribution Taxes are due.
All amounts required to be paid by one Party to another Party (including obligations arising under Article IV) pursuant
to this Article shall be paid or caused to be paid by such first Party to such other Party in accordance with this Agreement.

 

Section 3.05 Protective
Section 336(e) Elections.

 

(a) Nxt-ID and PartX shall make a protective
election with respect to PartX under Section 336(e) of the Code (and any similar election under state or local law) with
respect to the Distribution in accordance with Treasury Regulations Section 1.336-2(h) and (j) (and any applicable
provisions under state and local law) and shall cooperate in the timely completion and/or filings of such elections and any related
filings or procedures (including filing or amending any Tax Returns to implement an election that becomes effective). This Section 3.05(a) is
intended to constitute a binding, written agreement to make an election under Section 336(e) of the Code with respect
to the Distribution.

 

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(b) Notwithstanding anything to
the contrary herein, in the event that the election contemplated in Section 3.05(a) is made and becomes
effective, then the Parties shall share in the Tax Benefit actually realized as a result of such election in accordance with the
Parties’ relative responsibility for such Taxes under this Article III, and payments shall be made between
the Parties, if necessary.

 

(c) Nxt-ID and PartX shall
cooperate in order to determine whether to make a protective election under Section 336(e) of the Code (any similar election
under state or local law) with respect to any PartX Subsidiary or with respect to the Internal Reorganization in accordance with
Treasury Regulations Section 1.336-2(h) and (j) (and any applicable provisions under state and local law).

 

ARTICLE IV 

 

INDEMNIFICATION

 

Section 4.01 Indemnification by
Nxt-ID. Subject to Section 4.03, Nxt-ID shall pay, and shall indemnify and hold the PartX Group harmless from
and against, without duplication, (a) all Nxt-ID Taxes, (b) all Taxes incurred by PartX or any PartX Entity arising out
of, attributable to, or resulting from the breach by Nxt-ID of any of its covenants hereunder, and (c) any out-of-pocket costs
and expenses related to the foregoing (including reasonable attorneys’ fees and expenses).

 

Section 4.02 Indemnification by
PartX. Subject to Section 4.03, PartX shall pay, and shall indemnify and hold the Nxt-ID Group harmless from
and against, without duplication, (a) all PartX Taxes, (b) all Taxes incurred by Nxt-ID or any Nxt-ID Entity arising
out of, attributable to, or resulting from the breach by PartX of any of its covenants hereunder, and (c) any out-of-pocket costs
and expenses related to the foregoing (including reasonable attorneys’ fees and expenses).

 

Section 4.03 Characterization
of and Adjustments to Payments.

 

(a) Except for payments under Section
2.07, for all Tax purposes, Nxt-ID and PartX shall treat any payment by Nxt-ID to a member of the PartX Group or by PartX to
a member of the Nxt-ID Group required by this Agreement (other than payments with respect to interest accruing after the Distribution
Date) as either a contribution by Nxt-ID to PartX or a distribution by PartX to Nxt-ID, as the case may be, occurring immediately
prior to the Distribution.

 

(b) Notwithstanding the foregoing, the
amount that any Indemnifying Party is or may be required to provide indemnification to or on behalf of any Indemnified Party pursuant
to Article IV of this Agreement shall be (i) decreased to take into account any Tax Benefit to the Indemnified
Party (or any of its affiliates) arising from the incurrence or payment of the relevant indemnified item and actually realized
in or prior to the taxable year succeeding the taxable year in which the indemnified item is incurred (which Tax Benefit would
not have arisen or been allowable but for such indemnified item), and (ii) increased to take into account any actual Tax Cost
of the Indemnified Party (or any of its affiliates) arising from the receipt of the relevant indemnity payment.

 

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Section 4.04 Timing of Indemnification
Payments. Indemnification payments in respect of any liabilities for which an Indemnified Party is entitled to indemnification
pursuant to this Article IV shall be paid by the Indemnifying Party to the Indemnified Party within ten (10) days
after written notification thereof by the Indemnified Party, including reasonably satisfactory documentation setting forth the
basis for, and calculation of, the amount of such indemnification payment, or within ten (10) days after resolution pursuant
to Section 8.01.

 

Section 4.05 Indemnification Payments
under Ancillary Agreements. To the extent that an indemnification payment is made under any other Ancillary Agreement, such
indemnification payment shall be decreased to take into account the Tax Benefit actually realized (whether directly or indirectly)
by the indemnified party and increased to take into account any Tax Cost actually incurred (whether directly or indirectly) by
the indemnified party under principles analogous to the principles described in Section 4.03 hereof.

 

ARTICLE V

 

REFUNDS, CARRYBACKS, TIMING DIFFERENCE
AND TAX ATTRIBUTES

 

Section 5.01 Refunds and Credits.

 

(a) Except as provided in Section
5.02, Nxt-ID shall be entitled to all Refunds of Taxes for which Nxt-ID is responsible pursuant to Article IV,
and PartX shall be entitled to all Refunds of Taxes for which PartX is responsible pursuant to Article IV. For the
avoidance of doubt, to the extent that a particular Refund of Taxes may be allocable to a Straddle Period with respect to which
the Parties may share responsibility pursuant to Article IV, the portion of such Refund to which each Party will
be entitled shall be determined by comparing the amount of payments made by a Party (or any of member of such Party’s Group)
to a Taxing Authority or to the other Party (and reduced by the amount of payments received from the other Party) pursuant to Articles
II and IV hereof with the Tax liability of such Party as determined under Section 2.06, taking into
account the facts as utilized for purposes of claiming such Refund. If a Party (or any member of its Tax Group) receives a Refund
to which the other Party is entitled pursuant to this Agreement, such Party shall pay the amount to which such other Party is entitled
(net of any Taxes imposed with respect to such refund and any other reasonable out-of-pocket costs incurred by such Party)
within ten (10) days after the receipt of the Refund.

 

(b) Notwithstanding Section 5.01(a),
to the extent that a Party (or any member of its Tax Group) applies or causes to be applied an overpayment of Taxes as a credit
toward or a reduction in Taxes otherwise payable (or a Taxing Authority requires such application in lieu of a Refund) and such
overpayment of Taxes, if received as a Refund, would have been payable by such Party to the other Party pursuant to this Section
5.01, such Party shall pay such amount to the other Party no later than ten (10) days following the date on which
the overpayment is reflected on a filed Tax Return.

 

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(c) To the extent that the amount of any
Refund under this Section 5.01 is later reduced by a Taxing Authority or in a Tax Proceeding, such reduction shall
be allocated to the Party to which such Refund was allocated pursuant to this Section 5.01 and an appropriate adjusting
payment shall be made.

 

Section 5.02 Carrybacks. Except
to the extent otherwise consented to by Nxt-ID or prohibited by applicable Law, PartX (or the appropriate member of its Tax Group)
shall elect to relinquish, waive or otherwise forgo the carryback of any loss, credit or other Tax Attribute from any Post-Closing
Period to any Pre-Closing Period or Straddle Period with respect to members of the PartX Group (a “Carryback”).
In the event that PartX (or the appropriate member of its Tax Group) is prohibited by applicable Law from relinquishing, waiving
or otherwise forgoing a Carryback (or Nxt-ID consents to a Carryback), Nxt-ID shall cooperate with PartX, at PartX’s expense,
in seeking from the appropriate Taxing Authority such Refund as reasonably would result from such Carryback, to the extent that
such Refund is directly attributable to such Carryback, and shall pay over to PartX the amount of such Refund, net of any Taxes
imposed on the receipt of such Refund and any other reasonable out-of-pocket costs, within ten (10) days after such
Refund is received.

 

Section 5.03 Tax Attributes.

 

(a) As soon as reasonably practicable
after the Distribution Date, Nxt-ID shall reasonably determine in good faith the allocation of Tax Attributes, as well as any limitations
on the use thereof, arising in a Pre-Closing Period to the Nxt-ID Group and the PartX Group in accordance with the Code
and Treasury Regulations including Treasury Regulations Sections 1.1502-9T, 1.1502-21,1.1502-22, 1.1502-79 and,
if applicable, 1502-95 (and any applicable state, local and foreign Tax Laws). Subject to the preceding sentence, Nxt-ID
shall be entitled to make any determination as to (A) basis, and (B) valuation, and shall make such determinations reasonably
and in good faith and consistent with Past Practice, where applicable. Nxt-ID shall consult in good faith with PartX regarding
such allocation of Tax Attributes and determinations as to basis and valuation, and shall consider in good faith any comments received
in writing from PartX regarding such allocation and determinations. Nxt-ID and PartX hereby agree to compute all Taxes for Post-Closing
Periods consistently with the determination of the allocation of Tax Attributes pursuant to this Section 5.03(a)
unless otherwise required by a Final Determination.

 

(b) To the extent that the amount of any
Tax Attribute is later reduced or increased by a Taxing Authority or Tax Proceeding, such reduction or increase shall be allocated
to the Party to which such Tax Attribute was allocated pursuant to Section 5.03(a).

 

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Section
5.04 Timing Differences. If pursuant to a Final Determination an Adjustment (i) increases the amount of liability
for any Taxes for which a member of the Nxt-ID Group is responsible hereunder and a Tax Benefit is made allowable to PartX or a
member of its Tax Group for any Tax period after the Distribution Date, which Tax Benefit would not have arisen or been allowable
but for such Adjustment, and which Tax Benefit reduces Taxes in respect of a Tax period for which PartX or a member of its Tax
Group is liable (and for which no member of the Nxt-ID Group is liable) or (ii) increases the amount of liability for any
Taxes for which a member of the PartX Group is responsible hereunder and a Tax Benefit is made allowable to Nxt-ID or a member
of its Tax Group for any Tax period prior to the Distribution Date, which Tax Benefit would not have arisen or been allowable but
for such Adjustment, and which Tax Benefit reduces Taxes in respect of a Tax period which Nxt-ID or a member of its Tax Group is
liable (and for which no member of the PartX Group is liable), then PartX or Nxt-ID, as the case may be, shall make a payment to
either Nxt-ID or PartX, as appropriate, within thirty (30) days of the date that such paying Party (or any of its Tax Group
members) actually receives such Tax Benefit (determined by comparing its (and its Tax Group members’) Tax liability with
and without the Tax consequences of the Adjustment), which payment shall not exceed the increase in the amount of liability for
any Taxes resulting from such Adjustment, for which a member of the Nxt-ID Group or PartX Group, as the case may be, is responsible
hereunder. Notwithstanding anything to the contrary in this Section 5.04, if the additional Taxes described in this Section 5.04
constitute Distribution Taxes and/or a Section 336(e) election becomes effective, the provisions in Article III shall apply to
such Taxes and Tax Benefits and not this Section 5.04. 

 

Section 5.05 Tax Benefit Determinations.
Notwithstanding anything herein to the contrary, if and to the extent a Party owns, directly or indirectly, less than 100% of the
equity of any entity and as a result of such less-than-100% ownership interest in the entity such entity is not a member
of the Party’s Tax Group, then the amount of the Tax Benefit payment under Article V shall be appropriately
adjusted to take into account the percentage ownership (based on value) of any such entity, and shall be determined and due and
owing even if such entity is not a member of the Tax Group of a Party.

 

Section 5.06 Supporting Documentation.
If a Party seeks any payment from the other Party pursuant to Article V, the requesting Party shall furnish such
other Party reasonably satisfactory documentation setting forth the basis for, and the calculation of, the amount of such payment
obligation. If such other Party disagrees with the determination of the amount of the payment obligation set forth therein, any
disputes shall be resolved by the Accounting Firm in accordance with Section 8.01

 

ARTICLE VI

 

TAX PROCEEDINGS

 

Section 6.01 Notification of Tax
Proceedings. Within ten (10) days after an Indemnified Party becomes aware of the commencement of a Tax Proceeding that
may give rise to Taxes for which an Indemnifying Party is responsible pursuant to Article IV, such Indemnified Party
shall notify the Indemnifying Party of such Tax Proceeding, and thereafter shall promptly forward or make available to the Indemnifying
Party copies of notices and communications relating to such Tax Proceeding. The failure of the Indemnified Party to notify the
Indemnifying Party of the commencement of any such Tax Proceeding within such ten (10) day period or promptly forward any
further notices or communications shall not relieve the Indemnifying Party of any obligation which it may have to the Indemnified
Party under this Agreement except to the extent that the Indemnifying Party is prejudiced by such failure.

 

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Section 6.02 Tax Proceeding Procedures
Generally.

 

(a) Tax Proceedings relating to
Nxt-ID Consolidated Returns. Nxt-ID shall be entitled to contest, compromise, control and settle any adjustment or deficiency
proposed, asserted or assessed pursuant to any Tax Proceeding with respect to any Nxt-ID Consolidated Return; provided that
to the extent such Tax Proceeding could reasonably be expected to adversely affect the amount of Taxes for which PartX is responsible
pursuant to Article IV less the amount payable to PartX pursuant to Section 5.04, Nxt-ID shall (i) defend
such Tax Proceeding diligently and in good faith, (ii) shall keep PartX informed in a timely manner of all actions proposed
to be taken by Nxt-ID with respect to such Tax Proceeding (or to the extent practicable the portion of such Tax Proceeding that
relates to Taxes for which PartX is responsible pursuant to Article IV), (iii) shall permit PartX to participate
(at PartX’s sole expense) in all proceedings with respect to such tax Proceeding (or to the extent practicable the portion
of such Tax Proceeding that relates to Taxes for which PartX is responsible pursuant to Article IV), and (iv) shall
not settle any such Tax Proceeding without the prior written consent of PartX, which shall not be unreasonably withheld, conditioned
or delayed.

 

(b) Tax Proceedings relating to
Other Returns. The Preparing Party (in the case of a Mixed Business Tax Return) or the Single Business Return Preparing
Party (in the case of a Single Business Return) shall be entitled to contest, compromise, control and settle any adjustment or
deficiency proposed, asserted or assessed pursuant to any Tax Proceeding with respect to any Mixed Business Tax Return or Single
Business Return; provided that to the extent such Tax Proceeding could reasonably be expected to adversely affect
the amount of Taxes for which the Reviewing Party or Single Business Return Reviewing Party (as applicable) is responsible pursuant
to Article IV, the controlling party shall (A) defend such Tax Proceeding diligently and in good faith, (B) shall
keep the non-controlling party informed in a timely manner of all actions proposed to be taken by the controlling party
with respect to such Tax Proceeding (or to the extent practicable the portion of such Tax Proceeding that relates to Taxes for
which thenon-controlling party is responsible pursuant to Article IV), (C) shall permit the non-controlling party
to participate (at the non-controlling party’s sole expense) in all proceedings with respect to such Tax Proceeding
(or to the extent practicable the portion of such Tax Proceeding that relates to Taxes for which the non-controlling party
is responsible pursuant to Article IV), and (D) shall not settle any such Tax Proceeding without the prior written
consent of the non-controlling party, which shall not be unreasonably withheld, conditioned or delayed.

 

ARTICLE VII

 

COOPERATION

 

Section 7.01 General Cooperation.

 

(a) Each Party shall each cooperate fully
(and each shall cause its respective Subsidiaries to cooperate fully) with all reasonable requests in writing from the other Party
hereto, or from an agent, representative or advisor to such Party, in connection with the preparation and filing of Tax Returns,
claims for Refunds, Tax Proceedings, and calculations of amounts required to be paid pursuant to this Agreement, in each case,
related or attributable to or arising in connection with Taxes of either of the Parties or their respective Subsidiaries covered
by this Agreement and in connection with any financial reporting matter relating to Taxes (a “Tax Matter”).
Such cooperation shall include the provision of any information reasonably necessary or helpful in connection with a Tax Matter
(“Information”) and shall include, without limitation:

 

(i) the provision of any Tax
Returns, other than any Nxt-ID Consolidated Return2, of the Parties and their respective Subsidiaries, books, records
(including information regarding ownership and Tax basis of property), documentation and other information relating to such Tax
Returns, including accompanying schedules, related work papers, and documents relating to rulings or other determinations by Taxing
Authorities (or, in the case of any Mixed Business Income Tax Return, to the extent practicable, the portion of such Tax Return
that relates to Taxes for which PartX is responsible pursuant to this Agreement);

 

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(ii) the execution of any document
(including any power of attorney) in connection with any Tax Proceedings of either of the Parties or their respective Subsidiaries,
or the filing of a Tax Return or a Refund claim of the Parties or any of their respective Subsidiaries;

 

(iii) the use of the Party’s
reasonable best efforts to obtain any documentation in connection with a Tax Matter;

 

(iv) the use of the Party’s
reasonable best efforts to obtain any Tax Returns (including accompanying schedules, related work papers, and documents) (other
than any Nxt-ID Consolidated Return), documents, books, records or other information in connection with the filing of any Tax Returns
of either of the Parties or their Subsidiaries (or, in the case of any Mixed Business Income Tax Return, to the extent practicable,
the portion of such Tax Return, documents, books, records or other information that relates to Taxes for which PartX is responsible
pursuant to this Agreement); and

 

(v) the making of each Party’s
employees, advisors, and facilities available on a reasonable and mutually convenient basis in connection with the foregoing matters.

 

(b) Notwithstanding anything in this Agreement
to the contrary, neither Party shall be required to provide the other Party or any of such other Party’s Subsidiaries access
to or copies of information, documents or personnel if such action could reasonably be expected to result in the waiver of any
Privilege. In the event that either Party determines that the provision of any information or documents to the other Party or any
of such other Party’s Subsidiaries could be commercially detrimental, violate any law or agreement or waive any Privilege,
the Parties shall use commercially reasonable efforts to permit compliance with its obligations hereunder in a manner that avoids
any such harm or consequence.

 

(c) The Parties shall perform all actions
required or permitted under this Agreement in good faith. If one Party requests the cooperation of the other Party pursuant to
this Section 7.01 or any other provision of this Agreement, except as otherwise expressly provided in this Agreement,
the requesting Party shall reimburse such other Party for all reasonable out-of-pocket costs and expenses incurred by
such other Party in complying with the requesting Party’s request.

 

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Section 7.02 Retention of Records.
Nxt-ID and PartX shall retain or cause to be retained all Tax Returns, schedules and work papers, and all material records or other
documents relating thereto in their possession, in each case that relate to a Pre-Closing Period, until the later of
the six-year anniversary of the filing of the relevant Tax Return or, upon the written request of the other Party, for a reasonable
time thereafter (the “Retention Period”). Upon the expiration of the Retention Period, the foregoing
information may be destroyed or disposed of by the Party retaining such documentation or other information unless the other Party
otherwise requests in writing before the expiration of the Retention Period. In such case, the Party retaining such documentation
or other information shall deliver such materials to the other Party or continue to retain such materials, in either case at the
expense of such other Party.

 

ARTICLE VIII

 

MISCELLANEOUS

 

Section 8.01 Dispute Resolution.
In the event of any dispute between the Parties as to any matter covered by this Agreement, the Parties shall appoint a nationally
recognized public accounting firm reasonably acceptable to both of the Parties (the “Accounting Firm”)
to resolve such dispute. In this regard, the Accounting Firm shall make determinations with respect to the disputed items based
solely on representations made by Nxt-ID and PartX and their respective representatives, and not by independent review, and shall
function only as an expert and not as an arbitrator and shall be required to make a determination within the ranges submitted by
the Parties. The Parties shall require the Accounting Firm to resolve all disputes no later than thirty (30) days after the
submission of such dispute to the Accounting Firm, and agree that all decisions by the Accounting Firm with respect thereto shall
be final and conclusive and binding on the Parties. The Accounting Firm shall resolve all disputes in a manner consistent with
this Agreement and, to the extent not inconsistent with this Agreement, in a manner consistent with the Past Practices of Nxt-ID
and its Subsidiaries, except as otherwise required by applicable Law. The Parties shall require the Accounting Firm to render all
determinations in writing and to set forth, in reasonable detail, the basis for such determination. The total costs and expenses
of the Accounting Firm will be allocated and borne between Nxt-ID and PartX based upon that percentage of such fees and expenses
equal to the percentage of the dollar value of the proposed determinations submitted to the Accounting Firm determined in favor
of the other Party; provided, that if in light of the nature of the dispute the foregoing is not feasible, such costs and expenses
shall be borne equally by the Parties. Any initial retainer required by the Accounting Firm shall be funded equally by the Parties
(and, following the Accounting Firm’s determination, the Parties shall make appropriate payments between themselves as are
necessary to give effect to the preceding sentence).

 

Section 8.02 Interest on Late
Payments. With respect to any payment between the Parties pursuant to this Agreement not made by the due date set forth in
this Agreement for such payment, the outstanding amount will accrue interest at a rate per annum equal to the prime rate published
in the Wall Street Journal for the relevant period.

 

Section 8.03 Survival of Covenants.
Except as otherwise contemplated by this Agreement, all covenants and agreements of the Parties contained in this Agreement shall
survive the Distribution and remain in full force and effect in accordance with their applicable terms.

 

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Section 8.04 Successors. This
Agreement shall be binding on and inure to the benefit of any successor by merger, acquisition of assets, or otherwise, to either
of the Parties hereto (including without limitation any successor of Nxt-ID or PartX succeeding to the Tax Attributes of either
under Section 381 of the Code), to the same extent as if such successor had been an original party to this Agreement.

 

Section 8.05 Severability.
If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced under any Law or as a matter
of public policy, all other conditions and provisions of this Agreement shall remain in full force and effect. Upon such determination
that any term or other provision is invalid, illegal or incapable of being enforced, the Parties to this Agreement shall negotiate
in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually
acceptable manner.

 

Section 8.06 Entire Agreement.
Except as otherwise expressly provided in this Agreement, this Agreement, the Separation Agreement and the other Ancillary Agreements
constitute the entire agreement of the Parties hereto with respect to the subject matter of this Agreement and supersede all prior
agreements and undertakings, both written and oral, between or on behalf of the Parties hereto with respect to the subject matter
of this Agreement.

 

Section 8.07 Assignment; No Third-Party
Beneficiaries. This Agreement shall not be assigned by any Party without the prior written consent of the other Party, except
that each Party may assign (a) any or all of its rights and obligations under this Agreement to any of its Subsidiaries and
(b) any or all of its rights and obligations under this Agreement in connection with a sale or disposition of any of its assets
or entities or lines of business; provided, however, that, in each case, no such assignment shall release
such Party from any liability or obligation under this Agreement. Except as provided in Article IV with respect to
Indemnified Parties, this Agreement is for the sole benefit of the Parties to this Agreement and their respective Subsidiaries
and their permitted successors and assigns and nothing in this Agreement, express or implied, is intended to or shall confer upon
any other Person any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

 

Section 8.08 Specific Performance.
In the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement,
the Party who is or is to be thereby aggrieved shall have the right to specific performance and injunctive or other equitable relief
of its rights under this Agreement, in addition to any and all other rights and remedies at law or in equity, and all such rights
and remedies shall be cumulative. The Parties agree that the remedies at law for any breach or threatened breach, including monetary
damages, may be inadequate compensation for any loss and that any defense in any action for specific performance that a remedy
at law would be adequate is waived. Any requirements for the securing or posting of any bond with such remedy are waived by the
Parties to this Agreement.

 

Section 8.09 Amendment. No
provision of this Agreement may be amended or modified except by a written instrument signed by the Parties to this Agreement.
No waiver by any Party of any provision of this Agreement shall be effective unless explicitly set forth in writing and executed
by the Party so waiving. The waiver by any Party of a breach of any provision of this Agreement shall not operate or be construed
as a waiver of any other subsequent breach.

 

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Section 8.10 Rules of Construction.
Interpretation of this Agreement shall be governed by the following rules of construction: (a) words in the singular shall
be held to include the plural and vice versa and words of one gender shall be held to include the other gender as the context requires;
(b) references to the terms Article, Section, paragraph, clause, Exhibit and Schedule are references to the Articles, Sections,
paragraphs, clauses, exhibits and schedules of this Agreement unless otherwise specified; (c) the terms “hereof,”
“herein,” “hereby,” “hereto,” and derivative or similar words refer to this entire Agreement,
including the Schedules and Exhibits hereto; (d) references to “$” shall mean U.S. dollars; (e) the word
“including” and words of similar import when used in this Agreement shall mean “including without limitation,”
unless otherwise specified; (f) the word “or” shall not be exclusive; (g) references to “written”
or “in writing” include in electronic form; (h) provisions shall apply, when appropriate, to successive events
and transactions; (i) the headings contained in this Agreement are for reference purposes only and shall not affect in any
way the meaning or interpretation of this Agreement; (j) Nxt-ID and PartX have each participated in the negotiation and drafting
of this Agreement and if an ambiguity or question of interpretation should arise, this Agreement shall be construed as if drafted
jointly by the parties hereto and no presumption or burden of proof shall arise favoring or burdening either Party by virtue of
the authorship of any of the provisions in this Agreement or any interim drafts of this Agreement; and (k) a reference to
any Person includes such Person’s successors and permitted assigns.

 

Section 8.11 Counterparts.
This Agreement may be executed in one or more counterparts each of which when executed shall be deemed to be an original but all
of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to
this Agreement by facsimile or portable document format (PDF) shall be as effective as delivery of a manually executed counterpart
of any such Agreement.

 

Section 8.12 Coordination with
the Employee Matters Agreements. To the extent any covenants or agreements between the Parties with respect to employee withholding
Taxes are set forth in the Employee Matters Agreement, such Taxes shall be governed exclusively by the Employee Matters Agreement
and not by this Agreement.

 

Section 8.13 Expenses. Except
as otherwise provided in this Agreement, whether or not the Distribution or the other transactions contemplated by this Agreement
are consummated, all costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall
be paid by the Party incurring such costs or expenses.

 

Section 8.14 Governing Law.
This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to
any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of Delaware.

 

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Section 8.15 Jurisdiction;
Consent to Jurisdiction.

 

(a) Exclusive
Jurisdiction. Except as otherwise expressly provided in the Separation Agreement or any other Ancillary Agreement, each of
the Parties hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of the Court
of Chancery of the State of Delaware or, if such court shall not have jurisdiction, any state or federal court of the United States
of America sitting in Delaware, and any appellate court from any appeal thereof, in any Legal Proceeding arising out of or relating
to this Agreement, the Separation Agreement or any other Ancillary Agreement, the documents referred to in this Agreement, or any
of the transactions contemplated hereby or thereby or for recognition or enforcement of any judgment relating thereto, and each
of the parties hereby irrevocably and unconditionally (i) agrees not to commence any such Legal Proceeding except in such
courts, (ii) agrees that any claim in respect of any such Legal Proceeding may be heard and determined in the Court of Chancery
of the State of Delaware or, to the extent permitted by Law, in such state or federal court, (iii) waives, to the fullest
extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any such
Legal Proceeding in the Court of Chancery of the State of Delaware or such state or federal court and (iv) waives, to the
fullest extent permitted by Law, the defense of an inconvenient forum to the maintenance of such Legal Proceeding in the Court
of Chancery of the State of Delaware or such state or federal court. Each of the Parties agrees that a final judgment in any such
Legal Proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner
provided by Law. To the fullest extent permitted by Law, each Party irrevocably consents to service of process in the manner provided
for notices in Section 8.16. Nothing in this Agreement shall affect the right of any party to this Agreement to serve process in
any other manner permitted by Law.

 

(b) Waiver of
Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT, THE SEPARATION AGREEMENT
OR THE OTHER ANCILLARY AGREEMENTS IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE IT HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT
OF OR RELATING TO THIS AGREEMENT, THE SEPARATION AGREEMENT, THE OTHER ANCILLARY AGREEMENTS OR THE TRANSACTIONS CONTEMPLATED BY
THIS AGREEMENT, THE SEPARATION AGREEMENT AND THE OTHER ANCILLARY AGREEMENTS. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (i) NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT,
IN THE EVENT OF ANY LITIGATION, SEEK TO ENFORCE SUCH WAIVERS, (ii) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS
OF SUCH WAIVERS, (iii) EACH PARTY MAKES SUCH WAIVERS VOLUNTARILY, AND (iv) EACH PARTY HAS BEEN INDUCED TO ENTER INTO
THIS AGREEMENT, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 8.15(b).

 

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Section 8.16 Notices. All
notices and other communications among the parties hereto shall be in writing and shall be deemed to have been duly given (a) when
delivered in person, (b) when delivered after posting in the United States mail having been sent registered or certified mail
return receipt requested, postage prepaid, (c) when delivered by FedEx or other nationally recognized overnight delivery service
or (d) when delivered by facsimile (solely if receipt is confirmed) or email (so long as the sender of such email does not
receive an automatic reply from the recipient’s email server indicating that the recipient did not receive such email), addressed
as follows:

 

If to: PartX:

5650 El Camino Real 

Carlsbad, CA 92008

Attn: Chief Executive Officer

Email:

Fax:

 

If to: Nxt-ID: 

Nxt-ID, Inc.

1627 U.S. Highway 1

Unit 206

Sebastian, FL 32958

Attn:
Gino M. Pereira, Chief Executive Officer

 

or to such other address addresses as the Parties hereto may
from time to time designate in writing. Any notice to Nxt-ID will be deemed notice to all members of the Nxt-ID Group, and any
notice to PartX will be deemed notice to all members of the PartX Group.

 

Section 8.17 Coordination with
Ancillary Agreements. Except as explicitly set forth in the Separation Agreement or any other Ancillary Agreement, this Agreement
shall be the exclusive agreement among the Parties with respect to all Tax Matters, including indemnification in respect of Tax
Matters. The Parties agree that this Agreement shall take precedence over any and all agreements among the Parties with respect
to Tax matters.

 

Section 8.18 Effective Date.
This Agreement shall become effective only upon the occurrence of the Distribution.

 

[The remainder of this page is intentionally
left blank.]

 

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IN WITNESS WHEREOF,
the Parties have caused this Agreement to be duly executed as of the day and year first above written.

 

	 	Nxt-ID, Inc.
	 	 	 
	 	By:	 
	 	Name:	Gino M. Pereira
	 	Title:	Chief Executive Officer
	 	 
	 	PartX, Inc.
	 	 	 
	 	By:	 
	 	Name: 	Michael J. Orlando
	 	Title:	President and Chief Executive Officer

 

 

26

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