Document:

Exhibit
10.3

 

EMPLOYMENT
AGREEMENT

 

This
Employment Agreement (the “Agreement”), is effective as of July 1, 2021, by and between RCI HOSPITALITY HOLDINGS, INC.,
a Texas corporation (the “Company”), and TRAVIS REESE (the “Executive”).

 

W
I T N E S S E T H:

 

WHEREAS,
the Company desires to employ Executive as provided herein, and Executive desires to accept such employment; and

 

NOW,
THEREFORE, for and in consideration of the mutual covenants and agreements contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1. Employment. Company
hereby employs Executive and Executive hereby accepts employment with Company upon the terms and conditions hereinafter set
forth.

 

2. Duties. Subject
to the power of the Board of Directors of Company to elect and remove officers, Executive will serve the Company as its Executive
Vice President and Corporate Secretary and will faithfully and diligently perform the services and functions relating to such office
or otherwise reasonably incident to such office, provided that all such services and functions will be reasonable and within
Executive’s area of expertise. Executive will, during the term of this Agreement (or any extension thereof), devote his full
business time, attention and skills and best efforts to the promotion of the business of Company. The foregoing will not be
construed as preventing Executive from making investments in other businesses or enterprises provided that (a) Executive agrees not
to become engaged in any other business activity that interferes with his ability to discharge his duties and responsibilities to
the Company and (b) Executive does not violate any other provision of this Agreement.

 

3. Term. Subject
to the terms and conditions hereof, the term of employment of Executive will commence on July 1, 2021 (the “Commencement
Date”) and will end on June 30, 2023, unless earlier terminated by either party pursuant to the terms hereof. The term of this
Agreement is referred to herein as the “Term.”

 

 4. Compensation and Benefits During the Employment Term.

 

		(a)	Salary.
                                            Commencing upon the Commencement Date, Executive will be paid an annual base salary of $420,000
                                            for the entire Term, payable bi-weekly (the “Salary”). At any time and from time
                                            to time the Salary may be increased for the remaining portion of the Term if so determined
                                            by the Board of Directors of Company after a review of Executive’s performance of his
                                            duties hereunder.
	 	 	 
		(b)	Bonus.
                                            As further compensation, Executive will be eligible for bonuses as determined from time to
                                            time by the Board of Directors.

 

Employment
Agreement - Page 1

 

    	 	 	 

     

    

 

		(c)	Expenses.
                                            Upon submission of a detailed statement and reasonable documentation, Company will reimburse
                                            Executive in the same manner as other executive officers for all reasonable and necessary
                                            or appropriate out-of-pocket travel and other expenses incurred by Executive in rendering
                                            services required under this Agreement.
	 	 	 
		(d)	Benefits;
                                            Insurance.

 

		(i)	Medical,
                                            Dental and Vision Benefits. During the Term, Executive and his dependents will be entitled
                                            to receive such group medical, dental and vision benefits as Company may provide to its other
                                            executives, provided such coverage is reasonably available, or be reimbursed if Executive
                                            is carrying his own similar insurance.
	 	 	 
		(ii)	Benefit
                                            Plans. The Executive will be entitled to participate in any benefit plan or program of
                                            the Company which may currently be in place or implemented in the future.
	 	 	 
		(iii)	Use
                                            of Automobile. Executive will be provided a Company-owned automobile that Executive may
                                            use for both business and personal travel.
	 	 	 
		(iv)	Use
                                            of Aircraft. Executive may be provided access to Company-owned aircraft which Executive
                                            may use for both business and personal travel, subject to and conditioned on the terms and
                                            conditions of the Company’s Corporate Aircraft Policy, which policy may be changed
                                            by the Board of Directors at its sole discretion.
	 	 	 
		(v)	Other
                                            Benefits. During the Term, Executive will be entitled to receive, in addition to and
                                            not in lieu of base salary, bonus or other compensation, such other benefits and normal perquisites
                                            as Company currently provides or such additional benefits as Company may provide for its
                                            executive officers in the future.

 

		(e)	Vacation.
                                            Executive will be entitled to two weeks paid vacation each year of this Agreement.

 

5. Confidentiality
and Non-Competition.

 

		(a)	Confidentiality.
                                            In the course of the performance of Executive’s duties hereunder, Executive recognizes
                                            and acknowledges that Executive may have access to certain confidential and proprietary information
                                            of Company or any of its affiliates. Without the prior written consent of Company, Executive
                                            shall not disclose any such confidential or proprietary information to any person or firm,
                                            corporation, association, or other entity for any reason or purpose whatsoever, and shall
                                            not use such information, directly or indirectly, for Executive’s own behalf or on
                                            behalf of any other party. Executive agrees and affirms that all such information is the
                                            sole property of Company and that at the termination and/or expiration of this Agreement,
                                            at Company’s written request, Executive shall promptly return to Company any and all
                                            such information so requested by Company.

 

Employment
Agreement - Page 2 

 

    	 	 	 

     

    

 

The
provisions of this Section 5 shall not, however, prohibit Executive from disclosing to others or using in any manner information that:

 

		(i)	has
                                            been published or has become part of the public domain other than by acts, omissions or fault
                                            of Executive;
		(ii)	has
                                            been furnished or made known to Executive by third parties (other than those acting directly
                                            or indirectly for or on behalf of Executive) as a matter of legal right without restriction
                                            on its use or disclosure;
	 	 	 
		(iii)	was
                                            in the possession of Executive prior to obtaining such information from Company in connection
                                            with the performance of this Agreement; or
	 	 	 
		(iv)	is
                                            required to be disclosed by law.

 

		(b)	Non-Competition.
                                            Executive agrees that he will not, for himself, on behalf of, or in conjunction with
                                            any person, firm, corporation or entity, either as principal, employee, shareholder, member,
                                            director, partner, consultant, owner or part-owner of any corporation, partnership or any
                                            other type of business entity, directly or indirectly, own, manage, operate, control, be
                                            employed by, participate in, or be connected in any manner with the ownership, management,
                                            operation, or control of any establishment which either:

 

		(i)	has
                                            live female nude or semi-nude entertainment or is in any business similar to or competitive
                                            with the female entertainment business presently conducted by the Company, or any of its
                                            affiliates; and/or
	 	 	 
		(ii)	sells
                                            alcohol for consumption on site;

 

anywhere
in the United States within 50 miles of any business of the Company or its affiliate, or any business of the Company or its affiliate
under construction, under contract, in development or leased by or to the Company or its affiliate, for a period of two years (the “Non-Compete
Period”) from the termination of this Agreement. However, in the event of the termination of Executive’s employment pursuant
to Section 7(d) or 7(f), the Non-Compete Period shall be six months.

 

Executive
agrees not to hire, solicit or attempt to solicit for employment by Executive or any company to which he may be involved, either directly
or indirectly, any party who is an employee or independent contractor of the Company or any entity which is affiliated with the Company,
or any person who was an employee or independent contractor of the Company or any entity which is affiliated with the Company within
the two-year period immediately following the termination of this Agreement.

 

Employment
Agreement - Page 3 

 

    	 	 	 

     

    

 

Executive
acknowledges that he has carefully read and considered all provisions of this Agreement and agrees that:

 

		(i)	Due
                                            to the nature of the Company’s business, the foregoing covenants place no greater restraint
                                            upon Executive than is reasonably necessary to protect the business and goodwill of the Company;
	 	 	 
		(ii)	These
                                            covenants protect the legitimate interests of the Company and do not serve solely to limit
                                            the Company’s future competition;
	 	 	 
		(iii)	This
                                            Agreement is not an invalid or unreasonable restraint of trade;
	 	 	 
		(iv)	A
                                            breach of these covenants by Executive would cause irreparable damage to the Company;
	 	 	 
		(v)	These
                                            covenants are reasonable in scope and are reasonably necessary to protect the Company’s
                                            business and goodwill which the Company has established through its own expense and effort;
                                            and
	 	 	 
		(vi)	The
                                            signing of this Agreement is necessary as part of the consummation of the transactions described
                                            in the preamble.

 

		(c)	Work
                                            Product. All work product of Executive is the sole property of the Company. Work product
                                            of Executive includes but is not limited to any and all discoveries, inventions, ideas, concepts,
                                            research, information, processes, software development, products, techniques, methods and
                                            improvements or parts thereof conceived, developed, or otherwise made by Executive alone
                                            or jointly with others during the period of his employment with the Company, and in any way
                                            relating to the present or proposed products, services and/or operations of the Company,
                                            whether or not patentable or subject to copyright or trademark protection, whether or not
                                            made during Executive’s regular working hours, and whether or not made on the Company
                                            premise.

 

6. Indemnification. The
Company shall to the full extent permitted by law or as set forth in the Articles of Incorporation and the Bylaws of the Company,
indemnify, defend and hold harmless Executive from and against any and all claims, demands, liabilities, damages, loses and expenses
(including reasonable attorney’s fees, court costs and disbursements) arising out of the performance by him of his duties
hereunder except in the case of his willful misconduct.

 

7. Termination. This
Agreement and the employment relationship created hereby will terminate (i) upon the death or disability of Executive under section
7(a) or 7(b), respectively; (ii) with cause under Section 7(c); (iii) for good reason under Section 7(d); (iv) upon the voluntary
termination of employment by Executive under Section7(e); or without cause under Section 7(f).

 

Employment
Agreement - Page 4 

 

    	 	 	 

     

    

 

		(a)	Disability.
                                            The Company shall have the right to terminate the employment of the Executive under this
                                            Agreement for disability in the event Executive suffers an injury, illness, or incapacity
                                            of such character as to substantially disable him from performing his duties without reasonable
                                            accommodation by the Company hereunder for a period of more than one hundred eighty (180)
                                            consecutive days upon the Company giving at least thirty (30) days written notice of termination.
	 	 	 
		(b)	Death.
                                            This Agreement will terminate on the Death of the Executive.
	 	 	 
		(c)	With
                                            Cause. The Company may terminate this Agreement at any time because of (i) Executive’s
                                            material breach of any term of the Agreement, (ii) the determination by the Board of Directors
                                            in the exercise of its reasonable judgment that Executive has committed an act or acts constituting
                                            a felony or other crime involving moral turpitude, dishonesty or theft or fraud; or (iii)
                                            Executive’s gross negligence in the performance of his duties hereunder, provided,
                                            in each case, however, that the Company shall not terminate this Agreement pursuant to this
                                            Section 7(c) unless the Company shall first have delivered to the Executive, a notice which
                                            specifically identifies such breach or misconduct and the executive shall not have cured
                                            the same within fifteen (15) days after receipt of such notice.
	 	 	 
		(d)	Good
                                            Reason. The Executive may terminate his employment for “Good Reason” if:

 

		(i)	he
                                            is assigned, without his express written consent, any duties materially inconsistent with
                                            his positions, duties, responsibilities, or status with the Company as of the date hereof,
                                            or a change in his reporting responsibilities or titles as in effect as of the date hereof;
                                            provided, however, that Executive must provide the Company with written notice of his dispute
                                            of such re-assignment of duties or change in his reporting responsibilities under this Section
                                            7(d)(i) and give the Company opportunity to cure such inconsistency. If such dispute is not
                                            resolved within thirty (30) days, the Company shall submit such dispute to arbitration under
                                            Section 14.
	 	 	 
		(ii)	his
                                            compensation is reduced;
	 	 	 
		(iii)	the
                                            Company does not pay any material amount of compensation due hereunder and then fails either
                                            to pay such amount within the ten (10) day notice period required for termination hereunder
                                            or to contest in good faith such notice. Further, if such contest is not resolved within
                                            thirty (30) days, the Company shall submit such dispute to arbitration under Section 14.

 

		(e)	Voluntary
                                            Termination. The Executive may terminate his employment voluntarily.
	 	 	 
		(f)	Without
                                            Cause. The Company may terminate this Agreement without cause.

 

Employment
Agreement - Page 5

 

    	 	 	 

     

    

 

		8.	Obligations
                                            of Company Upon Termination.

 

		(a)	In
                                            the event of the termination of Executive’s employment pursuant to Section 7 (a), (b),
                                            (c) or (e), Executive will be entitled only to the compensation earned by him hereunder as
                                            of the date of such termination (plus life insurance or disability benefits if applicable
                                            and provided for pursuant to Section 4(d)).
	 	 	 
		(b)	In
                                            the event of the termination of Executive’s employment pursuant to Section 7 (d), Executive
                                            will be entitled to receive, if successful in arbitration under Section 14, in one lump sum
                                            payment the full remaining amount under the Term of this Agreement to which he would have
                                            been entitled had this Agreement not been terminated.
	 	 	 
		(c)	In
                                            the event of the termination of Executive’s employment pursuant to Section 7 (f), Executive
                                            will be entitled to receive in one lump sum payment the full remaining amount under the Term
                                            of this Agreement to which he would have been entitled had this Agreement not been terminated.

 

9. Waiver
of Breach. The waiver by any party hereto of a breach of any provision of this Agreement will not operate or be construed as a
waiver of any subsequent breach by any party.

 

10. Costs.
If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party will be
entitled to reasonable attorney’s fees, costs and necessary disbursements in addition to any other relief to which he or it
may be entitled.

 

11. Notices.
Any notices, consents, demands, requests, approvals and other communications to be given under this Agreement by either party to the
other will be deemed to have been duly given if given in writing and personally delivered or within two days if sent by mail,
registered or certified, postage prepaid with return receipt requested, as follows:

 

	If
    to Company:	 	RCI
    Hospitality Holdings, Inc.
	 	 	10737
    Cutten Road
	 	 	Houston,
    Texas 77066
	 	 	Attention:
    Eric Langan, President
	 	 	 
	If
    to Executive:	 	Travis
    Reese
	 	 	10737
    Cutten Road
	 	 	Houston,
    Texas 77066

 

Notices
delivered personally will be deemed communicated as of actual receipt.

 

12. Entire
Agreement. This Agreement and the agreements contemplated hereby constitute the entire agreement of the parties regarding the
subject matter hereof, and supersede all prior agreements and understanding, both written and oral, among the parties, or any of
them, with respect to the subject matter hereof.

 

Employment
Agreement - Page 6

 

    	 	 	 

     

    

 

13. Severability. If
any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws effective during this
Agreement, such provision will be fully severable and this Agreement will be construed and enforced as if such illegal, invalid or
unenforceable provision never comprised a part hereof; and the remaining provisions hereof will remain in full force and effect and
will not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom. Furthermore, in lieu of such
illegal, invalid or unenforceable provision there will be added automatically as part of this Agreement a provision as similar in
its terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable.

 

14. Arbitration. If
a dispute should arise regarding this Agreement the parties agree that all claims, disputes, controversies, differences or other
matters in question arising out of this relationship shall be settled finally, completely and conclusively by arbitration in
Houston, Texas in accordance with the Commercial Arbitration Rules of the American Arbitration Association (the
“Rules”). The governing law of this Agreement shall be the substantive law of the State of Texas, without giving effect
to conflict of laws. A decision of the arbitrator shall be final, conclusive and binding on the Company and Executive. Any
arbitration held in accordance with this paragraph shall be private and confidential and no person shall be entitled to attend the
hearings except the arbitrator, Executive, Executive’s attorneys, a representative of the Company, the Company’s
attorneys, and advisors to or witnesses for any party. The matters submitted to arbitration, the hearings and proceedings and the
arbitration award shall be kept and maintained in the strictest confidence by Executive and the Company and shall not be discussed,
disclosed or communicated to any persons except as may be required for the preparation of expert testimony. On request of any party,
the record of the proceeding shall be sealed and may not be disclosed except insofar, and only insofar, as may be necessary to
enforce the award of the arbitrator and any judgement enforcing an award. The prevailing party shall be entitled to recover
reasonable and necessary attorneys’ fees and costs from the non-prevailing party and the determination of such fees and costs
and the award thereof shall be included in the claims to be resolved by the arbitrator hereunder.

 

15. Captions. The
captions in this Agreement are for convenience of reference only and will not limit or otherwise affect any of the terms or
provisions hereof.

 

16. Gender
and Number. When the context requires, the gender of all words used herein will include the masculine, feminine and neuter and
the number of all words will include the singular and plural.

 

17. Counterparts. This
Agreement may be executed in one or more counterparts, each of which will be deemed an original and all of which will constitute one
and the same instrument, but only one of which need be produced.

 

18. Company
Authorization. The Company represents that the Board of Directors has approved this Agreement.

 

[Signature
page follows]

 

Employment
Agreement - Page 7

 

    	 	 	 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement to become effective as of the day and year first above written.

 

	 	COMPANY:
	 	 
	 	RCI
    HOSPITALITY HOLDINGS, INC.
	 	 	 
	 	By:	/s/
    Eric Langan
	 	 	Eric
    Langan,
	 	 	Chief
    Executive Officer

 

	 	EXECUTIVE:
	 	 
	 	/s/
    Travis Reese
	 	Travis
    Reese

 

Employment
Agreement - Page 8EMPLOYMENT AGREEMENT

 

This Employment Agreement
(the “Agreement”) is made and entered into as of June 28, 2021 (the “Effective Date”), by
and between Vadim Mats (the “Employee”) and DatChat, Inc., a Nevada corporation (the “Company”).

 

WHEREAS, the Company desires
to employ the Employee on the terms and conditions set forth herein; and

 

WHEREAS, the Employee
desires to be employed by the Company on such terms and conditions.

 

NOW, THEREFORE, in consideration
of the mutual covenants, promises and obligations set forth herein, the parties agree as follows:

 

1. Term.
The Employee’s employment hereunder shall be effective as of the Effective Date, and shall continue until the
first anniversary thereof, unless terminated earlier pursuant to Section 5 of this Agreement; provided that, on such first anniversary
of the Effective Date and each annual anniversary thereafter (such date and each annual anniversary thereof, a “Renewal
Date”), the Agreement shall be deemed to be automatically extended, upon the same terms and conditions, for successive
periods of one year, unless either party provides written notice of its intention not to extend the term of the Agreement at least
thirty (30) days’ prior to the applicable Renewal Date. The period during which the Employee is employed by the Company hereunder
is hereinafter referred to as the “Employment Term”.

 

2. Position
and Duties.

 

2.1 Position.
During the Employment Term, the Employee shall serve as the Chief Financial Officer of the Company, reporting to Chief Executive
Officer of the Company. In such position, the Employee shall have such duties, authority and responsibility as shall be determined
from time to time by the Chief Executive Officer, which duties, authority and responsibility are consistent with the Employee’s
position. Employee shall perform faithfully and diligently all duties and responsibilities to be performed and assigned to him.
The Board of Directors of the Company or the Chief Executive Officer reserves the right to modify Employee’s position and
duties at any time in their reasonable discretion.

 

2.2 Duties.
The Executive shall serve as the Chief Financial Officer of the Corporation, with such duties, responsibilities, and authority
as are commensurate and consistent with his position, and such other duties, responsibilities and authority as may be, from time
to time, reasonably assigned to him by the Board of Directors (the “Board”) or Chairman of the Board of the
Corporation. In this capacity the Executive shall be responsible to lead and manage all of the operations of the Corporation that
are related to finance and capital markets, including, but is not limited to, providing expertise in making financial plan and
strategy, and working with the Corporation’s U.S. legal counsel and auditors to implement, monitor and oversee the Corporation’s
compliance with the requirements of the Sarbanes-Oxley Act of 2002, Securities Act of the 1933, as amended, Securities Exchange
Act of the 1934, and the listing rules of the Nasdaq Capital Market and to advise the Board of the Directors with respect to the
Corporation’s internal controls and procedures, including disclosure controls and procedures.

 

3. Place
of Performance. The principal place of Employee’s employment shall be at the Company’s offices located in New Brunswick,
New Jersey or such other location as mutually agreed upon between the Company and the Employee.

 

  4. Compensation.

 

4.1 Base Salary.
During the Employment Term, the Employer shall pay to Employee an initial base salary at the annual rate of Sixty Thousand ($60,000)
Dollars as compensation for Employee’s performance of Employee’s duties hereunder, payable in equal monthly
installments (the “Base Salary”). Such Base Salary shall be made payable in accordance with the normal
payroll practices of the Employer, less required deductions for state and federal withholding tax, social security and all other
employment taxes and payroll deductions.

 

     

     

    
4.2 Bonus.
For each twelve (12) month period of the Employment Term, the Employee shall be eligible to receive a bonus (the “Bonus”).
However, the decision to provide any Bonus and the amount and terms of any Bonus shall be in the sole and absolute discretion
of the Board of Directors of the Company. Any such Bonus shall be payable within one hundred twenty (120) days following the expiration
of each annual anniversary. Further, any such Bonus shall be payable at the Company’s sole option in stock or in cash.

 

4.3 Equity Awards.
Subject to the approval of the Compensation Committee, the Executive will be granted an option (the “Stock Options”)
to purchase up to 50,000 shares of the Corporation’s Common Stock at an exercise price equal to the closing price of the
Corporation’s Common Stock on the date of grant, under the Corporation’s 2021 Equity Incentive Plan (the “Plan”).
The Option will be subject to the terms and conditions of the Plan, as set forth in the Plan and the applicable Incentive Stock
Option Agreement.

 

4.4 Employee Benefits.
During the Employment Term, the Employee shall be entitled to participate in all employee benefit plans, practices and programs
maintained by the Company, as in effect from time to time (collectively, “Employee Benefit Plans”) to the extent
consistent with applicable law and the terms of the applicable Employee Benefit Plans. The Company reserves the right to amend
or cancel any Employee Benefit Plans at any time in its sole discretion, subject to the terms of such Employee Benefit Plan and
applicable law.

 

4.5 Vacation;
Paid Time-off. During the Employment Term, the Employee shall be entitled to three (3) weeks of paid vacation days per calendar
year (prorated for partial years) in accordance with the Company’s vacation policies, as in effect from time to time. The
Employee shall receive other paid time-off in accordance with the Company’s policies for employee officers as such policies
may exist from time to time.

 

4.6 Business Expenses.
The Employee shall be entitled to reimbursement for all reasonable and necessary out-of-pocket business, entertainment and travel
expenses incurred by the Employee in connection with the performance of the Employee’s duties hereunder in accordance with
the Company’s expense reimbursement policies and procedures.

 

5. Termination
of Employment. The Employment Term and the Employee’s employment hereunder may be terminated by either the Company or
the Employee at any time and for any reason; provided that, unless otherwise provided herein, either party shall be required to
give the other party at least ten (10) days advance written notice of any termination of the Employee’s employment. Upon
termination of the Employee’s employment during the Employment Term, the Employee shall be entitled to the compensation and
benefits described in this Section 5 and shall have no further rights to any compensation or any other benefits
from the Company or any of its affiliates.

  

5.1 Payments upon
Termination. Upon termination of this Agreement, the Employee shall be entitled to receive:

 

(i)any equity
award which has vested as of the Termination Date (as defined below);

 

(ii)       reimbursement
for unreimbursed business expenses properly incurred by the Employee, which shall be subject to and paid in accordance with the
Company’s expense reimbursement policy; and

 

(iii)       such
employee benefits, if any, to which the Employee may be entitled under the Company’s employee benefit plans as of the Termination
Date; provided that, in no event shall the Employee be entitled to any payments in the nature of severance or termination payments
except as specifically provided herein ((i), (ii) and (iii) collectively, the “Accrued Amounts”).

 

     

     

    
5.2 Death or Disability.

 

(a) The Employee’s
employment hereunder shall terminate automatically upon the Employee’s death during the Employment Term, and the Company
may terminate the Employee’s employment on account of the Employee’s Disability.

 

(b) If the Employee’s
employment is terminated during the Employment Term on account of the Employee’s death or Disability, the Employee (or the
Employee’s estate and/or beneficiaries, as the case may be) shall be entitled to receive the Accrued Amounts.

 

(c) For purposes of
this Agreement, “Disability” shall mean the Employee’s inability, due to physical or mental incapacity,
to substantially perform his duties and responsibilities under this Agreement for one hundred eighty (180) days out of any three
hundred sixty-five (365) day period or one hundred twenty (120) consecutive days. Any question as to the existence of the Employee’s
Disability as to which the Employee and the Company cannot agree shall be determined in writing by a qualified independent physician
mutually acceptable to the Employee and the Company. If the Employee and the Company cannot agree as to a qualified independent
physician, each shall appoint such a physician and those two (2) physicians shall select a third (3rd) who shall make
such determination in writing. The determination of Disability made in writing to the Company and the Employee shall be final
and conclusive for all purposes of this Agreement.

 

5.3 Notice of
Termination. Any termination of the Employee’s employment hereunder by the Company or by the Employee during the Employment
Term (other than termination pursuant to Section 5.2(a) on account of the Employee’s death) shall be communicated by written
notice of termination (“Notice of Termination”) to the other party hereto in accordance with Section
20.

 

5.4 Termination
Date. The Employee’s Termination Date shall be:

 

(a) If the Employee’s
employment hereunder terminates on account of the Employee’s death, the date of the Employee’s death;

 

(b) If the Employee’s
employment hereunder is terminated on account of the Employee’s Disability, the date that it is determined that the Employee
has a Disability;

 

(c) If the Company
terminates the Employee’s employment hereunder with or without cause, the date specified in the Notice of Termination, which
shall be no less than ten (10) days following the date on which the Notice of Termination is delivered; and

 

(d) If the Employee’s
employment hereunder terminates because either party provides notice of non-renewal pursuant to Section 1, the Renewal
Date immediately following the date on which the applicable party delivers notice of non-renewal.

 

5.5 Resignation
of All Other Positions. Upon termination of the Employee’s employment hereunder for any reason, the Employee agrees to
resign, effective on the Termination Date from all positions that the Employee holds as an officer of the Company or any of its
affiliates.

 

     

     

    
6. Cooperation.
The parties agree that certain matters in which the Employee will be involved during the Employment Term may necessitate the Employee’s
cooperation in the future. Accordingly, following the termination of the Employee’s employment for any reason, to the extent
reasonably requested by the Chief Executive Officer, the Employee shall cooperate with the Company in connection with matters arising
out of the Employee’s service to the Company; provided that, the Company shall make reasonable efforts to minimize disruption
of the Employee’s other activities. The Company shall reimburse the Employee for reasonable expenses incurred in connection
with such cooperation.

 

7. Confidential
Information.

 

(a) Definition.

 

For purposes of this Agreement,
“Confidential Information” includes, but is not limited to, all information not generally known to the public,
in spoken, printed, electronic or any other form or medium, relating directly or indirectly to: business processes, practices,
methods, policies, plans, publications, documents, research, operations, services, strategies, techniques, agreements, contracts,
terms of agreements, transactions, potential transactions, negotiations, pending negotiations, know-how, trade secrets, computer
programs, computer software, applications, operating systems, web design, work-in-process, databases, manuals, records, articles,
systems, material, sources of material, vendor information, financial information, results, accounting information, accounting
records, legal information, marketing information, advertising information, pricing information, credit information, payroll information,
staffing information, personnel information, employee lists, developments, reports, internal controls, security procedures, market
studies, sales information, revenue, costs, notes, communications, ideas, inventions, original works of authorship, discoveries,
specifications, customer information, customer lists, client information, and client lists of the Company or its businesses or
any existing or prospective customer, investor or other associated third party or of any other person or entity that has entrusted
information to the Company in confidence.

 

The Employee understands
that the above list is not exhaustive, and that Confidential Information also includes other information that is marked or otherwise
identified as confidential or proprietary, or that would otherwise appear to a reasonable person to be confidential or proprietary
in the context and circumstances in which the information is known or used.

 

The Employee understands
and agrees that Confidential Information includes information developed by him in the course of his employment by the Company as
if the Company furnished the same Confidential Information to the Employee in the first instance. Confidential Information shall
not include information that is generally available to and known by the public at the time of disclosure to the Employee; provided
that, such disclosure is through no direct or indirect fault of the Employee or person(s) acting on the Employee’s behalf.

 

(b) Company Creation and Use of Confidential
Information.

 

The Employee understands
and acknowledges that the Company has invested, and continues to invest, substantial time, money and specialized knowledge into
developing its resources, creating a customer base, generating investors and potential investor lists, training its employees,
and improving its business offerings. The Employee understands and acknowledges that as a result of these efforts, the Company
has created, and continues to use and create Confidential Information. This Confidential Information provides the Company with
a competitive advantage over others in the marketplace.

 

     

     

    
(c) Disclosure and Use Restrictions.

 

The Employee agrees and
covenants: (i) to treat all Confidential Information as strictly confidential; (ii) not to directly or indirectly disclose, publish,
communicate or make available Confidential Information, or allow it to be disclosed, published, communicated or made available,
in whole or part, to any entity or person whatsoever (including other employees of the Company ) not having a need to know and
authority to know and use the Confidential Information in connection with the business of the Company and, in any event, not to
anyone outside of the direct employ of the Company except as required in the performance of the Employee’s authorized employment
duties to the Company or with the prior consent of the Chief Executive Officer acting on behalf of the Company in each instance
(and then, such disclosure shall be made only within the limits and to the extent of such duties or consent); and (iii) not to
access or use any Confidential Information, and not to copy any documents, records, files, media or other resources containing
any Confidential Information, or remove any such documents, records, files, media or other resources from the premises or control
of the Company, except as required in the performance of the Employee’s authorized employment duties to the Company or with
the prior consent of the Chief Executive Officer acting on behalf of the Company in each instance (and then, such disclosure shall
be made only within the limits and to the extent of such duties or consent). Nothing herein shall be construed to prevent disclosure
of Confidential Information as may be required by applicable law or regulation, or pursuant to the valid order of a court of competent
jurisdiction or an authorized government agency, provided that the disclosure does not exceed the extent of disclosure required
by such law, regulation or order. The Employee shall promptly provide written notice of any such order to the Chief Executive Officer.

 

The Employee understands
and acknowledges that his obligations under this Agreement with regard to any particular Confidential Information shall commence
immediately upon the Employee first having access to such Confidential Information (whether before or after he begins employment
by the Company) and shall continue during and after his employment by the Company until such time as such Confidential Information
has become public knowledge other than as a result of the Employee’s breach of this Agreement or breach by those acting in
concert with the Employee or on the Employee’s behalf. 

 

8. Non-disparagement.
The Employee agrees and covenants that he will not at any time make, publish or communicate to any person or entity or in any
public forum any defamatory or disparaging remarks, comments or statements concerning the Company, the Chief Executive Officer,
or any of its employees, officers, directors and existing and prospective investors and other associated third parties. This Section
8 does not, in any way, restrict or impede the Employee from exercising protected rights to the extent that such rights
cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent
jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation
or order. The Employee shall promptly provide written notice of any such order to the Chief Executive Officer.

 

9. Acknowledgement.
The Employee acknowledges and agrees that the services to be rendered by his to the Company are of a special and unique character;
that the Employee will obtain knowledge and skill relevant to the Company’s industry, methods of doing business and marketing
strategies by virtue of the Employee’s employment; and that the terms and conditions of this Agreement are reasonable and
reasonably necessary to protect the legitimate business interest of the Company.

 

The Employee further acknowledges
that the amount of his compensation reflects, in part, his obligations and the Company’s rights under Section 7 and Section
8 of this Agreement; that he has no expectation of any additional compensation, royalties or other payment of any kind not otherwise
referenced herein in connection herewith; that he will not be subject to undue hardship by reason of his full compliance with the
terms and conditions of Section 7 and Section 8 of this Agreement or the Company’s enforcement thereof.

 

     

     

    
10. Remedies.
In the event of a breach or threatened breach by the Employee of Section 7 and Section 8 of this Agreement, the Employee hereby
consents and agrees that the Company shall be entitled to seek, in addition to other available remedies, a temporary or permanent
injunction or other equitable relief against such breach or threatened breach from any court of competent jurisdiction, without
the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and without the necessity
of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies,
monetary damages or other available forms of relief.

 

11. Security.

 

11.1 Security
and Access. The Employee agrees and covenants (a) to comply with all Company security policies and procedures as in force from
time to time, including without limitation, those regarding computer equipment, telephone systems, voicemail systems, facilities
access, monitoring, key cards, access codes, Company intranet, internet, social media and instant messaging systems, computer systems,
e-mail systems, computer networks, document storage systems, software, data security, encryption, firewalls, passwords and any
and all other Company facilities, IT resources and communication technologies (“Facilities Information Technology and
Access Resources”); (b) not to access or use any Facilities and Information Technology Resources except as authorized
by the Company; and (iii) not to access or use any Facilities and Information Technology Resources in any manner after the termination
of the Employee’s employment by the Company, whether termination is voluntary or involuntary. The Employee agrees to notify
the Company promptly in the event he learns of any violation of the foregoing by others, or of any other misappropriation or unauthorized
access, use, reproduction or reverse engineering of, or tampering with any Facilities and Information Technology Access Resources
or other Company property or materials by others.

 

11.2 Exit Obligations.
Upon (a) voluntary or involuntary termination of the Employee’s employment or (b) the Company’s request at any time
during the Employee’s employment, the Employee shall (i) provide or return to the Company any and all Company property, including
keys, key cards, access cards, identification cards, security devices, employer credit cards, network access devices, computers,
cell phones, smartphones, PDAs, pagers, fax machines, equipment, speakers, webcams, manuals, reports, files, books, compilations,
work product, e-mail messages, recordings, tapes, disks, thumb drives or other removable information storage devices, hard drives,
negatives and data and all Company documents and materials belonging to the Company and stored in any fashion, including, but not
limited to, those that constitute or contain any Confidential Information, that are in the possession or control of the Employee,
whether they were provided to the Employee by the Company or any of its business associates or created by the Employee in connection
with her employment by the Company; and (ii) delete or destroy all copies of any such documents and materials not returned to the
Company that remain in the Employee’s possession or control, including those stored on any non-Company devices, networks,
storage locations and media in the Employee’s possession or control.

 

12. Publicity.
The Employee hereby irrevocably consents to any and all uses and displays, by the Company and its agents, representatives and
licensees, of the Employee’s name, voice, likeness, image, appearance and biographical information in, on or in connection
with any pictures, photographs, audio and video recordings, digital images, websites, television programs and advertising, other
advertising and publicity, sales and marketing brochures, books, magazines, other publications, CDs, DVDs, tapes and all other
printed and electronic forms and media throughout the world, at any time during or after the period of his employment by the Company,
for all legitimate commercial and business purposes of the Company (“Permitted Uses”) without further consent
from or royalty, payment or other compensation to the Employee. The Employee hereby forever waives and releases the Company and
its directors, officers, employees and agents from any and all claims, actions, damages, losses, costs, expenses and liability
of any kind, arising under any legal or equitable theory whatsoever at any time during or after the period of his employment by
the Company, arising directly or indirectly from the Company ‘s and its agents’, representatives’ and licensees’
exercise of their rights in connection with any Permitted Uses.

 

     

     

    
13. Governing
Law: Jurisdiction and Venue. This Agreement, for all purposes, shall be construed in accordance with the laws of the State
of New York without regard to conflicts of law principles. Any action or proceeding by either of the parties to enforce this Agreement
shall be brought only in a state or federal court located in the state of New York, County of New York. The parties hereby irrevocably
submit to the exclusive jurisdiction of such courts and waive the defense of inconvenient forum to the maintenance of any such
action or proceeding in such venue.

  

14. Entire
Agreement. Unless specifically provided herein, this Agreement contains all of the understandings and representations between
the Employee and the Company pertaining to the subject matter hereof and supersedes all prior and contemporaneous understandings,
agreements, representations and warranties, both written and oral, with respect to such subject matter. The parties mutually agree
that the Agreement can be specifically enforced in court and can be cited as evidence in legal proceedings alleging breach of the
Agreement.

 

15. Modification
and Waiver. No provision of this Agreement may be amended or modified unless such amendment or modification is agreed to in
writing and signed by the Employee and by the President of the Company. No waiver by either of the parties of any breach by the
other party hereto of any condition or provision of this Agreement to be performed by the other party hereto shall be deemed a
waiver of any similar or dissimilar provision or condition at the same or any prior or subsequent time, nor shall the failure of
or delay by either of the parties in exercising any right, power or privilege hereunder operate as a waiver thereof to preclude
any other or further exercise thereof or the exercise of any other such right, power or privilege.

 

16. Severability.
Should any provision of this Agreement be held by a court of competent jurisdiction to be enforceable only if modified, or if any
portion of this Agreement shall be held as unenforceable and thus stricken, such holding shall not affect the validity of the remainder
of this Agreement, the balance of which shall continue to be binding upon the parties with any such modification to become a part
hereof and treated as though originally set forth in this Agreement. Upon such determination that any term or other provision is
invalid, illegal or unenforceable, the parties hereto 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 in order that the transactions contemplated
hereby be consummated as originally contemplated to the greatest extent possible.

 

17. Captions.
Captions and headings of the sections and paragraphs of this Agreement are intended solely for convenience and no provision of
this Agreement is to be construed by reference to the caption or heading of any section or paragraph.

 

18. Counterparts.
This Agreement may be executed in separate counterparts, each of which shall be deemed an original, but all of which taken together
shall constitute one and the same instrument.

 

19. Successors
and Assigns. This Agreement is personal to the Employee and shall not be assigned by the Employee. Any purported assignment
by the Employee shall be null and void from the initial date of the purported assignment. The Company may assign this Agreement
to any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially
all of the business or assets of the Company. This Agreement shall inure to the benefit of the Company and permitted successors
and assigns.

  

20. Notice.
Notices and all other communications provided for in this Agreement shall be in writing and shall be delivered personally or sent
by registered or certified mail, return receipt requested, or by overnight carrier to the parties at the addresses set forth below
(or such other addresses as specified by the parties by like notice):

 

     

     

    

If to the Company:

 

DatChat, Inc.

65 Church Street

2nd Floor

New Brunswick, NJ 08901

Attn: Darin Myman, Chief Executive
Officer

 

If to the Employee:

 

Vadim Mats

[_____]

[_____]

 

21. Representations
of the Employee. The Employee represents and warrants to the Company that:

 

21.1 The Employee’s
acceptance of employment with the Company and the performance of his duties hereunder will not conflict with or result in a violation
of, a breach of, or a default under any contract, agreement or understanding to which he is a party or is otherwise bound.

 

21.2 The Employee’s
acceptance of employment with the Company and the performance of his duties hereunder will not violate any non-solicitation, non-competition
or other similar covenant or agreement of a prior employer.

 

22. Withholding.
The Company shall have the right to withhold from any amount payable hereunder any Federal, state and local taxes in order for
the Company to satisfy any withholding tax obligation it may have under any applicable law or regulation.

 

23. Survival.
Upon the expiration or other termination of this Agreement, the respective rights and obligations of the parties hereto shall survive
such expiration or other termination to the extent necessary to carry out the intentions of the parties under this Agreement.

 

24. Further
Assurances. Each party to this Agreement shall execute all instruments and documents and take all actions as may be reasonably
required to effectuate this Agreement

 

25. Acknowledgment
of Full Understanding. THE EMPLOYEE ACKNOWLEDGES AND AGREES THAT HE HAS FULLY READ, UNDERSTANDS AND VOLUNTARILY ENTERS INTO
THIS AGREEMENT. THE EMPLOYEE ACKNOWLEDGES AND AGREES THAT HE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT WITH AN ATTORNEY
OF HIS CHOICE BEFORE SIGNING THIS AGREEMENT.

 

[SIGNATURE PAGE FOLLOWS]

     

     

    

 

	CORPORATION:	 
	 	 
	DatChat, Inc.	 
	 	 
	/s/ Darin Myman	 
	By: Darin Myman	 
	Title: Chief Executive Officer	 
	 	 
	EXECUTIVE:	 
	 	 
	/s/ Vadim Mats	 

By: Vadim Mats

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