Letter Agreement between Phillip L. Kumnick and Ipsidy Inc


Exhibit 10.1


    Philip D. Beck
Chief Executive Officer


December 10, 2019


Phillip L. Kumnick




Re: Appointment as Non-Executive Director


Dear Phil:


I am pleased to be writing to you at the direction of the Board of Directors (“Board”) of Ipsidy Inc. (the “Company”) to confirm the terms of your appointment as a non-executive director. This letter shall take effect upon the passing of a Board Resolution formally approving your appointment.


The term of your directorship will extend until the first Annual Meeting of the Company’s Stockholders following your appointment, when you will be eligible for re-election by the stockholders, or until your earlier resignation. The Board intends to nominate you for election by the stockholders and therefore to include your information in the Company’s proxy statement for the forthcoming Annual Meeting, that will be held in the next three months.


1.Role and duties


Non-executive directors have the same general legal responsibilities to the Company as any other director. The board as a whole is collectively responsible for promoting the success of the Company by directing and supervising the Company’s affairs, with a particular focus on strategy, performance and risk. We would also expect you to be an ambassador for the Company and to promote its interests, when appropriate in your daily business activities.


You will be required to discharge the following specific functions and duties:


(a)Attend quarterly board meetings and special board meetings at the Company’s head office in New York, or such other place, or by conference call on dates to be notified to you in advance;


(b)Attendance at Board and Committee meetings by conference call will be generally available, but it is anticipated that the Board will have two full “in person” meetings per year with all directors present;


670 Long Beach Boulevard, · Long Beach, New York 11561 ·. Tel ###-###-#### ·. www.ipsidy.com


  Phillip L. Kumnick
Page 2
December 10, 2019


(c)Attend the Company’s annual meeting of stockholders and any special meetings of stockholders, which may be called from time to time;


(d)Carry out such other functions and duties as may reasonably be required of you from time to time.


In addition, subject to your consent to serve, you may be requested to serve on one or more board committees, such as the audit, compensation or governance committee. Details of any such appointment will be subject to the committee’s terms of reference.


As a director of a Company, which is a reporting Company in accordance with Securities & Exchange Commission (“SEC”) rules, you will be required to file reports of your interests in any securities of the Company and any acquisitions or disposals thereof, as well as various disclosures regarding your position in, agreements with and relations with the Company. The Company and our counsel will work with you to ensure all required reports and disclosures are filed in compliance with SEC rules.


2.Time commitment


By accepting this appointment, you have confirmed that you are able to allocate sufficient time to meet the reasonable expectations of your role, including appropriate preparation time ahead of Board (and, if applicable, committee) meetings.




It is accepted and acknowledged that you have business interests other than those of the Company and have declared any current conflicts of interest. In the event that you become aware of any potential or actual conflicts of interest these should be disclosed to the Chairman and Corporate Secretary as soon as possible.


4.Compensation and Reimbursement of Expenses


In consideration for the performance of the duties outlined above, you will be entitled to compensation in accordance with the Company’s Compensation Policy for Non-Employee Directors, from time to time in force, including awards under the Company’s 2017 Incentive Stock Plan (the “Plan”). At the present time this comprises (a) an annual equity award having a market value on the date of grant of $72,000, subject to vesting over 12 months; and (b) cash compensation of $5,000 per annum for service on each committee of the Board.


In addition, upon your appointment you shall receive a grant of options to purchase 3,000,000 Shares, vesting over a three-year period, with an exercise price equal to the market value of the Shares upon the date of your appointment and with an exercise period of 10 years. All equity awards are issued subject to the terms of their respective grant and the terms and conditions of the Plan.


670 Long Beach Boulevard, · Long Beach, New York 11561 ·. Tel ###-###-#### ·. www.ipsidy.com


  Phillip L. Kumnick
Page 3
December 10, 2019


It is envisaged that you may be asked to undertake additional services of a strategic nature on behalf of the Company and in such case we shall, with Board approval, agree upon additional compensation for such services.


This is a contract for services and not a contract of employment, and as an independent contractor you will be paid your fees on a gross basis. You will be responsible for payment of all applicable Federal, State and local taxes on compensation received and all compensation shall be subject to reporting by the Company on an annual basis on Form 1099, as required by law.


In addition to your fees, you are entitled to be reimbursed any reasonable expenses incurred in attending meetings of the Board or of any committee of the Board, or of stockholder meetings, or otherwise on the business of the Company. The Company may require written evidence of such expenses to be provided and in certain cases prior approval. All expenses are subject to the Company’s expense policy.




You are entitled to resign your membership on the Board or on any committee of the Board at any time. In addition, you agree to resign your directorship in the circumstances set forth in Section 6 below. Written notice of any such resignation should be given to the Chairman of the Board.


This Agreement will automatically terminate, without requirement of notice, upon the date of your resignation from the Board (including any resignation pursuant to Section 6 below), if you are removed from office by a resolution of the stockholders in accordance with the Company’s Bylaws and Delaware law, or if you are not re-nominated or re-elected to the Board, and you will not be entitled to any further compensation following the termination date in any of these events.


6.Immediate vacation of office


You agree to resign your office as a director on the Board and on each committee of the Board immediately in the event of any of the following circumstances:


(a)if you become prohibited by law from acting as a director;


(b)if you are convicted of a felony or crime involving moral turpitude (excluding drunk driving unless combined with other aggravating circumstances or offenses) or fraud;


670 Long Beach Boulevard, · Long Beach, New York 11561 ·. Tel ###-###-#### ·. www.ipsidy.com


  Phillip L. Kumnick
Page 4
December 10, 2019


(c)if you engage in gross misconduct which is materially detrimental to the reputation or business of the Company; provided that you shall first be entitled to receive notice from the board specifying such gross misconduct in reasonable detail, and shall have failed to cure or correct such gross misconduct within thirty (30) days of receiving such notice (unless such misconduct is of a nature that it is unable to be cured or corrected); or


(d)if you willfully fail to comply in any material respect with the Company’s Confidentiality Agreement, Insider Trading Policy, Code of Ethics, Sexual Harassment Prevention Policy or any other reasonable policies of the Company where non-compliance would be materially detrimental to the Company; provided that you shall first be entitled to receive notice from the Board specifying such noncompliance in reasonable detail, and shall have failed to cure or correct such gross misconduct within thirty (30) days of receiving such notice (unless such non-compliance is of a nature that it is unable to be cured or corrected). I will have our General Counsel provide you with all relevant policies.




You acknowledge your duties of confidentiality and loyalty to the Company as a director of a Delaware corporation, and you agree to uphold such duties. In addition, you will be asked to execute a standard Confidentiality Agreement.


8.Indemnification & Insurance


You shall be entitled to indemnification by the Company with respect to your services as a director, to the fullest extent permitted by law and under the Company’s Certificate of Incorporation and Bylaws. In addition, upon your appointment the Company will enter into a standard indemnification agreement with you.


You shall be covered under the Company’s directors’ and officers’ insurance policy, for so long as you remain a member of the Board. The Company shall continue to provide coverage to you under such policy for not less than twenty-four (24) months following your termination date on substantially the same terms of the policy in effect immediately prior to the termination date.




This letter shall be governed by and construed in accordance with the law of the State of New York law and the courts, Federal and State, located in the State of New York shall have non-exclusive jurisdiction for all matters arising under it.


670 Long Beach Boulevard, · Long Beach, New York 11561 ·. Tel ###-###-#### ·. www.ipsidy.com


  Phillip L. Kumnick
Page 5
December 10, 2019


If this letter reflects the terms that we have agreed, please sign and return a copy of this letter to me.


  Ipsidy Inc.
  /s/ Philip D. Beck
  By: Philip D. Beck, Chairman and CEO


I hereby agree to act as a non-executive director of Ipsidy Inc. upon the terms contained in the letter of which this is a copy.


/s/ Phillip L. Kumnick




Date: December 10, 2019