Document:

apvo-ex102_6.htm

Exhibit 10.2

 

REGISTRATION RIGHTS AGREEMENT

 

REGISTRATION RIGHTS AGREEMENT (this "Agreement"), dated as of December 20, 2018, by and between APTEVO THERAPEUTICS, INC., a Delaware corporation (the "Company"), and LINCOLN PARK CAPITAL FUND, LLC, an Illinois limited liability company (together with it permitted assigns, the “Buyer”). Capitalized terms used herein and not otherwise defined herein shall have the respective meanings set forth in the Purchase Agreement by and between the parties hereto, dated as of the date hereof (as amended, restated, supplemented or otherwise modified from time to time, the "Purchase Agreement").

 

WHEREAS:

 

The Company has agreed, upon the terms and subject to the conditions of the Purchase Agreement, to sell to the Buyer up to Thirty-Five Million Dollars ($35,000,000) of Purchase Shares and to induce the Buyer to enter into the Purchase Agreement, the Company has agreed to provide certain registration rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively, the "Securities Act"), and applicable state securities laws.

 

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

 

			
	
 
	
1.
	
DEFINITIONS.

 

As used in this Agreement, the following terms shall have the following meanings:

 

a.           "Investor" means the Buyer, any transferee or assignee thereof to whom a Buyer assigns its rights under this Agreement in accordance with Section 9 and who agrees to become bound by the provisions of this Agreement, and any transferee or assignee thereof to whom a transferee or assignee assigns its rights under this Agreement in accordance with Section 9 and who agrees to become bound by the provisions of this Agreement.

 

b.           "Person" means any individual or entity including but not limited to any corporation, a limited liability company, an association, a partnership, an organization, a business, an individual, a governmental or political subdivision thereof or a governmental agency.

 

c.           "Register," "registered," and "registration" refer to a registration effected by preparing and filing one or more registration statements of the Company in compliance with the Securities Act and pursuant to Rule 415 under the Securities Act or any successor rule providing for offering securities on a continuous basis ("Rule 415"), and the declaration or ordering of effectiveness of such registration statement(s) by the United States Securities and Exchange Commission (the "SEC").

 

d.           "Registrable Securities" means all of the Commitment Shares and all of the Purchase Shares that may, from time to time, be issued or become issuable to the Investor under the Purchase Agreement (without regard to any limitation or restriction on purchases), and any and all shares of capital stock issued or issuable with respect to the Purchase Shares, the Commitment Shares or the Purchase Agreement as a result of any stock split, stock dividend, recapitalization, exchange or similar event or otherwise, without regard to any limitation on purchases under the Purchase Agreement.

 

e.           "Registration Statement" means one or more registration statements of the Company covering only the sale of the Registrable Securities.

194109110 v4 

Exhibit 10.2

 

 

			
	
 
	
2.
	
REGISTRATION.

 

a.           Mandatory Registration. The Company shall, within thirty (30) calendar days after the date hereof, file with the SEC an initial Registration Statement covering the maximum number of Registrable Securities as shall be permitted to be included thereon in accordance with applicable SEC rules, regulations and interpretations so as to permit the resale of such Registrable Securities by the Investor under Rule 415 under the Securities Act at then prevailing market prices (and not fixed prices), as mutually determined by both the Company and the Investor in consultation with their respective legal counsel, subject to the aggregate number of authorized shares of the Company’s Common Stock then available for issuance in its Certificate of Incorporation. The initial Registration Statement shall register only the Registrable Securities. The Investor and its counsel shall have a reasonable opportunity to review and comment upon such Registration Statement and any amendment or supplement to such Registration Statement and any related prospectus prior to its filing with the SEC, and the Company shall give due consideration to all such comments. The Investor shall furnish all information reasonably requested by the Company for inclusion therein. The Company shall use its reasonable best efforts to have the Registration Statement and any amendment declared effective by the SEC at the earliest possible date. The Company shall use reasonable best efforts to keep the Registration Statement effective pursuant to Rule 415 promulgated under the Securities Act and available for the resale by the Investor of all of the Registrable Securities covered thereby at all times until the date on which the Investor shall have resold all the Registrable Securities covered thereby and no Available Amount remains under the Purchase Agreement (the "Registration Period"). The Registration Statement (including any amendments or supplements thereto and prospectuses contained therein) shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading.

 

b.           Rule 424 Prospectus. The Company shall, as required by applicable securities regulations, from time to time file with the SEC, pursuant to Rule 424 promulgated under the Securities Act, the prospectus and prospectus supplements, if any, to be used in connection with sales of the Registrable Securities under the Registration Statement. The Investor and its counsel shall have a reasonable opportunity to review and comment upon such prospectus prior to its filing with the SEC, and the Company shall give due consideration to all such comments. The Investor shall use its reasonable best efforts to comment upon such prospectus within one (1) Business Day from the date the Investor receives a substantially complete draft of such prospectus.

 

c.           Sufficient Number of Shares Registered. In the event the number of shares available under the Registration Statement is insufficient to cover all of the Registrable Securities, the Company shall amend the Registration Statement or file a new Registration Statement (a ”New Registration Statement”), so as to cover all of such Registrable Securities (subject to the limitations set forth in Section 2(a)) as soon as practicable, but in any event not later than ten (10) Business Days after the necessity therefor arises, subject to any limits that may be imposed by the SEC pursuant to Rule 415 under the Securities Act. The Company shall use its commercially reasonable efforts to cause such amendment and/or New Registration Statement to become effective as soon as practicable following the filing thereof.

 

d.            Offering. If the staff of the SEC (the “Staff”) or the SEC seeks to characterize any offering pursuant to a Registration Statement filed pursuant to this Agreement as constituting an offering of securities that does not permit such Registration Statement to become effective and be used for resales by the Investor under Rule 415 at then-prevailing market prices (and not fixed prices), or if after the filing of the initial Registration Statement with the SEC pursuant to Section 2(a), the Company is otherwise required by the Staff or the SEC to reduce the number of Registrable Securities included in such initial Registration Statement, then the Company shall reduce the number of Registrable Securities to be included 

194109110 v4 

Exhibit 10.2

 

in such initial Registration Statement (with the prior consent, which shall not be unreasoanably withheld, of the Investor and its legal counsel as to the specific Registrable Securities to be removed therefrom) until such time as the Staff and the SEC shall so permit such Registration Statement to become effective and be used as aforesaid. In the event of any reduction in Registrable Securities pursuant to this paragraph, the Company shall file one or more New Registration Statements in accordance with Section 2(c) until such time as all Registrable Securities have been included in Registration Statements that have been declared effective and the prospectus contained therein is available for use by the Investor. Notwithstanding any provision herein or in the Purchase Agreement to the contrary, the Company’s obligations to register Registrable Securities (and any related conditions to the Investor’s obligations) shall be qualified as necessary to comport with any requirement of the SEC or the Staff as addressed in this Section 2(d).

 

			
	
 
	
3.
	
RELATED OBLIGATIONS.

 

With respect to the Registration Statement and whenever any Registrable Securities are to be registered pursuant to Section 2 including on any New Registration Statement, the Company shall use its commercially reasonable efforts to effect the registration of the Registrable Securities in accordance with the intended method of disposition thereof and, pursuant thereto, the Company shall have the following obligations:

 

a.           The Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to any Registration Statement and the prospectus used in connection with such Registration Statement, which prospectus is to be filed pursuant to Rule 424 promulgated under the Securities Act, as may be necessary to keep the Registration Statement or any New Registration Statement effective at all times during the Registration Period, and, during such period, comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities of the Company covered by the Registration Statement or any New Registration Statement until such time as all of such Registrable Securities shall have been disposed of in accordance with the intended methods of disposition by the Investor as set forth in such Registration Statement.

 

b.           The Company shall permit the Investor to review and comment upon the Registration Statement or any New Registration Statement and all amendments and supplements thereto at least two (2) Business Days prior to their filing with the SEC, and not file any such document in a form to which Investor reasonably objects. The Investor shall use its reasonable best efforts to comment upon the Registration Statement or any New Registration Statement and any amendments or supplements thereto within two (2) Business Days from the date the Investor receives the  substantially complete draft thereof. Company shall furnish to the Investor, without charge any correspondence from the SEC or the staff of the SEC to the Company or its representatives relating to the Registration Statement or any New Registration Statement.

 

c.           Upon request of the Investor, the Company shall furnish to the Investor, (i) promptly after the same is prepared and filed with the SEC, at least one copy of such Registration Statement and any amendment(s) thereto, including financial statements and schedules, all documents incorporated therein by reference and all exhibits, (ii) upon the effectiveness of any Registration Statement, a copy of the prospectus included in such Registration Statement and all amendments and supplements thereto (or such other number of copies as the Investor may reasonably request) and (iii) such other documents, including copies of any preliminary or final prospectus, as the Investor may reasonably request from time to time in order to facilitate the disposition of the Registrable Securities owned by the Investor. For the avoidance of doubt, any filing available to the Investor via the SEC’s EDGAR system shall be deemed “furnished to the Investor” hereunder.

 

194109110 v4 

Exhibit 10.2

 

d.           The Company shall use commercially reasonable efforts to (i) register and qualify the resale by the Investor of the Registrable Securities covered by a Registration Statement under such other securities or "blue sky" laws of such jurisdictions in the United States as the Investor reasonably requests, (ii) prepare and file in those jurisdictions, such amendments (including post-effective amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period, (iii) take such other actions as may be necessary to maintain such registrations and qualifications in effect at all times during the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however, that the Company shall not be required in connection therewith or as a condition thereto to (x) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(d), (y) subject itself to general taxation in any such jurisdiction, or (z) file a general consent to service of process in any such jurisdiction. The Company shall promptly notify the Investor who holds Registrable Securities of the receipt by the Company of any notification with respect to the suspension of the registration or qualification of any of the Registrable Securities for sale under the securities or "blue sky" laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or threatening of any proceeding for such purpose.

 

e.           As promptly as practicable after becoming aware of such event or facts, the Company shall notify the Investor in writing of the happening of any event or existence of such facts as a result of which the prospectus included in any Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, (provided that in no event shall such notice contain any material non-public information regarding the Company) and promptly prepare a supplement or amendment to such Registration Statement to correct such untrue statement or omission, and deliver a copy of such supplement or amendment to the Investor (or such other number of copies as the Investor may reasonably request). The Company shall also promptly notify the Investor in writing (i) when a prospectus or any prospectus supplement or post-effective amendment has been filed, and when a Registration Statement or any post-effective amendment has become effective (notification of such effectiveness shall be delivered to the Investor by email or facsimile on the same day of such effectiveness and by overnight mail), (ii) of any request by the SEC for amendments or supplements to any Registration Statement or related prospectus or related information, and (iii) of the Company's reasonable determination that a post-effective amendment to a Registration Statement would be appropriate.

 

f.            The Company shall use its commercially reasonable efforts to prevent the issuance of any stop order or other suspension of effectiveness of any Registration Statement, or the suspension of the qualification of any Registrable Securities for sale in any jurisdiction and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment and to notify the Investor of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

 

g.           The Company shall (i) cause all the Registrable Securities to be listed on each securities exchange on which securities of the same class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is then permitted under the rules of such exchange, or (ii) secure designation and quotation of all the Registrable Securities on the Principal Market. The Company shall pay all fees and expenses in connection with satisfying its obligation under this Section.

 

h.           The Company shall cooperate with the Investor to facilitate the timely issuance of the Registrable Securities to be offered pursuant to any Registration Statement, it being agreed that such Registrable Securities shall be issued as DWAC Shares and in such denominations or amounts as the Investor may reasonably request and registered in such names as the Investor may request.

 

194109110 v4 

Exhibit 10.2

 

i.            The Company shall at all times provide a transfer agent and registrar with respect to its Common Stock.

 

j.            If reasonably requested in writing by the Investor, the Company shall (i) promptly incorporate in a prospectus supplement or post-effective amendment such information as the Investor believes should be included therein relating to the sale and distribution of Registrable Securities, including, without limitation, information with respect to the number of Registrable Securities being sold, the purchase price being paid therefor and any other terms of the offering of the Registrable Securities; (ii) make all required filings of such prospectus supplement or post-effective amendment as soon as practicable upon notification of the matters to be incorporated in such prospectus supplement or post-effective amendment; and (iii) supplement or make amendments to any Registration Statement or New Registration Statement.

 

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

 

l.            Within one (1) Business Day after any Registration Statement which includes the Registrable Securities is declared effective by the SEC, the Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable Securities (with copies to the Investor) confirmation that such Registration Statement has been declared effective by the SEC in the form attached hereto as Exhibit A. Thereafter, if requested by the Buyer at any time, the Company shall require its counsel to deliver to the Buyer a written confirmation whether or not the effectiveness of such Registration Statement has lapsed at any time for any reason (including, without limitation, the issuance of a stop order) and whether or not the Registration Statement is current and available to the Buyer for sale of all of the Registrable Securities.

 

m.          The Company shall take all other reasonable actions necessary to expedite and facilitate disposition by the Investor of the Registrable Securities pursuant to any Registration Statement.

 

			
	
 
	
4.
	
OBLIGATIONS OF THE INVESTOR.

 

a.           The Company shall notify the Investor in writing of the information the Company reasonably requires from the Investor in connection with any Registration Statement hereunder. The Investor shall furnish to the Company such information regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required to effect the registration of such Registrable Securities and shall execute such documents in connection with such registration as the Company may reasonably request.

 

b.           The Investor agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing of any Registration Statement hereunder.

  

c.           The Investor agrees that, upon receipt of any notice from the Company of the happening of any event or existence of facts of the kind described in Section 3(f) or the first sentence of 3(e), the Investor will immediately discontinue disposition of Registrable Securities pursuant to any Registration Statement(s) covering such Registrable Securities until the Investor's receipt of the copies of a notice regarding the resolution or withdrawal of the stop order or suspension as contemplated by Section 3(f) or the supplemented or amended prospectus as contemplated by the first sentence of 3(e). Notwithstanding anything to the contrary, the Company shall cause its transfer agent to promptly deliver shares of Common Stock without any restrictive legend in accordance with the terms of the Purchase Agreement in connection with any sale of Registrable Securities with respect to which an Investor has entered into a contract for sale prior to the Investor's receipt of a notice from the Company of the happening of any event of the kind described in Section 3(f) or the first sentence of Section 3(e) and for which the Investor has not yet settled.

194109110 v4 

Exhibit 10.2

 

 

			
	
 
	
5.
	
EXPENSES OF REGISTRATION.

 

All reasonable expenses, other than sales or brokerage commissions, incurred in connection with registrations, filings or qualifications pursuant to Sections 2 and 3, including, without limitation, all registration, listing and qualifications fees, printers and accounting fees, and fees and disbursements of counsel for the Company, shall be paid by the Company.

 

			
	
 
	
6.
	
INDEMNIFICATION.

 

a.           To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Investor, the members, the directors, officers, partners, employees, agents, representatives of the Investor and each Person, if any, who controls the Investor within the meaning of the Securities Act or the Securities Exchange Act of 1934, as amended (the "Exchange Act") (each, an "Indemnified Person"), against any losses, claims, damages, liabilities, judgments, fines, penalties, charges, costs, attorneys' fees, amounts paid in settlement or expenses, joint or several, (collectively, "Claims") incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental, administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party is or may be a party thereto ("Indemnified Damages"), to which any of them may become subject insofar as such Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact in the Registration Statement, any New Registration Statement or any post-effective amendment thereto or in any filing made in connection with the qualification of the offering under the securities or other "blue sky" laws of any jurisdiction in which Registrable Securities are offered ("Blue Sky Filing"), or the omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, (ii) any untrue statement or alleged untrue statement of a material fact contained in the final prospectus (as amended or supplemented, if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein any material fact necessary to make the statements made therein, in light of the circumstances under which the statements therein were made, not misleading, (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any other law, including, without limitation, any state securities law, or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities pursuant to the Registration Statement or any New Registration Statement or (iv) any material violation by the Company of this Agreement (the matters in the foregoing clauses (i) through (iv) being, collectively, "Violations"). The Company shall reimburse each Indemnified Person promptly as such expenses are incurred and are due and payable, for any reasonable legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Section 6(a): (i) shall not apply to a Claim by an Indemnified Person arising out of or based upon a Violation which occurs in reliance upon and in conformity with information about the Investor furnished in writing to the Company by any Indemnified Person expressly for use in connection with the preparation of the Registration Statement, any New Registration Statement or any such amendment thereof or supplement thereto or prospectus contained therein, if such Registration Statement, New Registration Statement or amendment thereof or supplement thereto or prospectus contained therein was timely made available by the Company pursuant to Section 3(c) or Section 3(e); (ii) with respect to any superseded prospectus, shall not inure to the benefit of any Indemnified Person from whom the Indemnified Person asserting any such Claim purchased the Registrable Securities that are the subject thereof (or to the benefit of any person controlling such Indemnified Person) if the untrue statement or omission of material fact contained in the superseded prospectus was corrected in the revised prospectus, as then amended or supplemented, if such revised prospectus was timely made available by the Company pursuant to Section 3(c) or Section 3(e), and the Indemnified Person was promptly advised in writing not 

194109110 v4 

Exhibit 10.2

 

to use the incorrect prospectus prior to the use giving rise to a violation and such Indemnified Person, notwithstanding such advice, used it; (iii) shall not be available to the extent such Claim is based on a failure of the Investor to deliver or to cause to be delivered the prospectus made available by the Company, if such prospectus was timely made available by the Company pursuant to Section 3(c) or Section 3(e); and (iv) shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the transfer of the Registrable Securities by the Investor pursuant to Section 9.

 

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

 

c.           Promptly after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any action or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified Party, as the case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its own counsel with the fees and expenses to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying party, the representation by such counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate due to actual or potential differing interests between such Indemnified Person or Indemnified Party and any other party represented by such counsel in such proceeding. The Indemnified Party or Indemnified Person shall cooperate fully with the indemnifying party in connection with any negotiation or defense of any such action or claim by the indemnifying party and shall furnish to the indemnifying party all information reasonably available to the Indemnified Party or Indemnified Person which relates to such action or claim. The indemnifying party shall keep the Indemnified Party or Indemnified Person fully apprised at all times as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying party shall be liable for any settlement of any action, claim or proceeding effected without its written consent, provided, however, that the indemnifying 

194109110 v4 

Exhibit 10.2

 

party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without the consent of the Indemnified Party or Indemnified Person, consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a release from all liability in respect to such claim or litigation. Following indemnification as provided for hereunder, the indemnifying party shall be subrogated to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms or corporations relating to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to the Indemnified Person or Indemnified Party under this Section 6, except to the extent that the indemnifying party is prejudiced in its ability to defend such action.

 

d.           The indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received or Indemnified Damages are incurred.

 

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

 

			
	
 
	
7.
	
CONTRIBUTION.

 

To the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided, however, that: (i) no seller of Registrable Securities guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any seller of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited in amount to the net amount of proceeds received by such seller from the sale of such Registrable Securities.

 

			
	
 
	
8.
	
REPORTS AND DISCLOSURE UNDER THE SECURITIES ACTS.

 

With a view to making available to the Investor the benefits of Rule 144 promulgated under the Securities Act or any other similar rule or regulation of the SEC that may at any time permit the Investor to sell securities of the Company to the public without registration ("Rule 144"), the Company agrees, at the Company’s sole expense, to:

 

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

 

b.           file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act so long as the Company remains subject to such requirements and the filing of such reports and other documents is required for the applicable provisions of Rule 144;

 

c.           furnish to the Investor so long as the Investor owns Registrable Securities, promptly upon request, (i) a written statement by the Company that it has complied with the reporting and or disclosure provisions of Rule 144, the Securities Act and the Exchange Act, (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested to permit the Investor to sell such securities pursuant to Rule 144 without registration; and

194109110 v4 

Exhibit 10.2

 

 

d.           take such additional action as is requested by the Investor to enable the Investor to sell the Registrable Securities pursuant to Rule 144, including, without limitation, delivering all such legal opinions, consents, certificates, resolutions and instructions to the Company’s Transfer Agent as may be requested from time to time by the Investor and otherwise fully cooperate with Investor and Investor’s broker to effect such sale of securities pursuant to Rule 144.

 

The Company agrees that damages may be an inadequate remedy for any breach of the terms and provisions of this Section 8 and that Investor shall, whether or not it is pursuing any remedies at law, be entitled to seek equitable relief in the form of a preliminary or permanent injunctions, without having to post any bond or other security, upon any breach or threatened breach of any such terms or provisions.

 

			
	
 
	
9.
	
ASSIGNMENT OF REGISTRATION RIGHTS.

 

The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Investor. The Investor may not assign its rights under this Agreement without the written consent of the Company, other than to an affiliate of the Investor controlled by Jonathan Cope or Josh Scheinfeld, in which case the assignee must agree in writing to be bound by the terms and conditions of this Agreement.

 

			
	
 
	
10.
	
AMENDMENT OF REGISTRATION RIGHTS.

 

No provision of this Agreement may be amended or waived by the parties from and after the date that is one Business Day immediately preceding the initial filing of the Registration Statement with the SEC. Subject to the immediately preceding sentence, no provision of this Agreement may be (i) amended other than by a written instrument signed by both parties hereto or (ii) waived other than in a written instrument signed by the party against whom enforcement of such waiver is sought. Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or remedy, shall not operate as a waiver thereof.

 

			
	
 
	
11.
	
MISCELLANEOUS.

 

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

 

b.           Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile or email (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one (1) Business Day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same. The addresses for such communications shall be:

 

194109110 v4 

Exhibit 10.2

 

If to the Company:

 

Aptevo Therapeutics, Inc.

2401 4th Avenue, Suite 1050

Seattle, WA 98121

	
 
	
Telephone:
	
206.838.0500

E-mail:

Attention:  

 

With a copy to (which shall not constitute notice or service of process):

 

Cooley LLP

1700 Seventh Avenue, Suite 1900

Seattle, WA 98101

Telephone: 206-452-8756

Facsimile: 206-229-3428

E-mail: ahambelton@cooley.com

Attention: Alan Hambelton

 

If to the Investor:

 

Lincoln Park Capital Fund, LLC

440 North Wells, Suite 410

Chicago, IL 60654

	
 
	
Telephone:
	
312-822-9300

	
 
	
Facsimile:
	
312-822-9301

	
 
	
E-mail:
	
jscheinfeld@lpcfunds.com/jcope@lpcfunds.com

	
 
	
Attention:
	
Josh Scheinfeld/Jonathan Cope

 

With a copy to (which shall not constitute notice or service of process):

 

 

K&L Gates, LLP

200 South Biscayne Boulevard

Suite 3900

Miami, Florida 33131

	
 
	
Telephone:
	
305.539.3300

	
 
	
Facsimile: 
	
305.358.7095

	
 
	
E-mail:
	
clayton.parker@klgates.com/matthew.ogurick@klgates.com

	
 
	
Attention:
	
Clayton E. Parker, Esq./Mathew Ogurick, Esq.

 

or at such other address, email address and/or facsimile number and/or to the attention of such other person as the recipient party has specified by written notice given to each other party three (3) Business Days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender's facsimile machine or email account containing the time, date, recipient facsimile number or email address, as applicable, or (C) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of personal service, receipt by facsimile or email, or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

 

194109110 v4 

Exhibit 10.2

 

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

 

d.           This Agreement and the Purchase Agreement constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof. There are no restrictions, promises, warranties or undertakings among the parties hereto, other than those set forth or referred to herein and therein. This Agreement and the Purchase Agreement supersede all prior agreements and understandings among the parties hereto with respect to the subject matter hereof and thereof.

 

e.           Subject to the requirements of Section 9, this Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties hereto.

 

f.            The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

g.          This Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission or by e-mail in a “.pdf” format data file of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

  

194109110 v4 

Exhibit 10.2

 

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

 

i.            The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rules of strict construction will be applied against any party.

 

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

 

* * * * * *

 

194109110 v4 

Exhibit 10.2

 

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

 

	
 
	
THE COMPANY:

	
 
	
 

	
 
	
APTEVO THERAPEUTICS, INC.

	
 
	
 
	
 

	
 
	
By:
	
/s/ 

	
 
	
Name: 

	
 
	
Title:  

	
 
	
 
	
 

	
 
	
BUYER:

	
 
	
 

	
 
	
LINCOLN PARK CAPITAL FUND, LLC

	
 
	
BY: LINCOLN PARK CAPITAL, LLC

	
 
	
BY: ALEX NOAH INVESTORS, INC.

	
 
	
 
	
 

	
 
	
By:
	
/s/ 

	
 
	
Name: Jonathan Cope

	
 
	
Title: President

 

 

194109110 v4 

Exhibit 10.2

 

EXHIBIT A

 

TO REGISTRATION RIGHTS AGREEMENT

 

FORM OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

[Date]

 

[NAME/ADDRESS]

 

Re: Aptevo Therapeutics, Inc.

 

Ladies and Gentlemen:

 

We are counsel to Aptevo Therapeutics, Inc., a Delaware corporation (the “Company”), and have represented the Company in connection with that certain Purchase Agreement, dated as of December 20, 2018 (the “Purchase Agreement”), entered into by and between the Company and Lincoln Park Capital Fund, LLC (the “Buyer”), pursuant to which the Company has issued to the Buyer an aggregate of [                  ] shares of the Company's common stock, par value $0.001 per share (the “Common Stock”), and may in the future issue to the Buyer shares of Common Stock in an amount up to an additional Thirty-Five Million Dollars ($35,000,000), in accordance with the terms of the Purchase Agreement. In connection with the transactions contemplated by the Purchase Agreement, the Company has registered with the U.S. Securities and Exchange Commission (the “SEC”) the following shares of Common Stock:

	
 
	
(1)
	
[_______________] shares of Common Stock to be issued to the Buyer upon purchase by the Buyer from the Company from time to time in accordance with the terms of the Purchase Agreement (the “Purchase Shares”); 

	
 
	
(2)
	
105,467 shares of Common Stock that have been issued to the Buyer as a commitment fee on the date of the Purchase Agreement (the “Initial Commitment Shares”); and

	
 
	
(3)
	
195,867 shares of Common Stock to be issued to the Buyer (the “Additional Commitment Shares”, and together with the Initial Commitment Shares, the “Commitment Shares”) as a commitment fee on the Commencement Date (as defined in the Purchase Agreement).

 

Pursuant to the Purchase Agreement, the Company also has entered into a Registration Rights Agreement, dated as of December 20, 2018, with the Buyer (the “Registration Rights Agreement”) pursuant to which the Company agreed, among other things, to register the Purchase Shares and the Commitment Shares under the Securities Act of 1933, as amended (the “Securities Act”). In connection with the Company's obligations under the Purchase Agreement and the Registration Rights Agreement, on [_________], 2019, the Company filed a Registration Statement (File No. 333-[_________]) (the “Registration Statement”) with the SEC relating to the resale of the Purchase Shares [and the Commitment Shares].

 

194109110 v4 

Exhibit 10.2

 

In connection with the foregoing, we advise you that the SEC has entered an order declaring the Registration Statement effective under the Securities Act at [_____] [A.M./P.M.] on [__________], 2019 and we have no knowledge, after review of the stop order notification website maintained by the SEC, that any stop order suspending its effectiveness has been issued or that any proceedings for that purpose are pending before, or threatened by, the SEC and the Purchase Shares and the Commitment Shares are available for resale under the Securities Act pursuant to the Registration Statement and may be issued without any restrictive legend or stop transfer orders maintained against them.

 

	
 
	
Very truly yours,

	
 
	
 
	
 

	
 
	
By:
	
 

 

			
	
 
	
cc:
	
Lincoln Park Capital Fund, LLC

 

194109110 v4 

Exhibit 10.2

 

EXHIBIT B

 

TO REGISTRATION RIGHTS AGREEMENT

 

Information About The Investor Furnished To The Company By The Investor 

Expressly For Use In Connection With The Registration Statement

 

Information With Respect to Lincoln Park Capital

 

As of the date of the Purchase Agreement, Lincoln Park Capital Fund, LLC, beneficially owned [                  ] shares of our common stock. Josh Scheinfeld and Jonathan Cope, the Managing Members of Lincoln Park Capital, LLC, the manager of Lincoln Park Capital Fund, LLC, are deemed to be beneficial owners of all of the shares of common stock owned by Lincoln Park Capital Fund, LLC. Messrs. Cope and Scheinfeld have shared voting and investment power over the shares being offered under the prospectus filed with the SEC in connection with the transactions contemplated under the Purchase Agreement. Lincoln Park Capital, LLC is not a licensed broker dealer or an affiliate of a licensed broker dealer.

 

 

194109110 v4Exhibit 10.1

 

Execution Version

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

AMONG

 

PRIORITY TECHNOLOGY HOLDINGS, INC.

 

AND

 

MICHAEL VOLLKOMMER

 

December 20, 2018

 

     

     

    

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

THIS EXECUTIVE EMPLOYMENT
AGREEMENT (the “Agreement”) by and among Priority Technology Holdings, Inc., a Delaware corporation with its principal
place of business located at 2001 Westside Parkway, Suite 155, Alpharetta, Georgia 30004 (“PRTH”), and Michael Vollkommer,
an individual resident of the State of Georgia with his principal place of residence located at 10620 Oxford Mill Circle, Johns
Creek, GA 30022 (“Employee”) is entered into and effective as of the 20th day of December, 2018 (the “Effective
Date”). PRTH and You are collectively referred to herein as the “Parties”. Further, for purposes of this Agreement,
the services provided pursuant to this Agreement are to be performed for the benefit of PRTH and its Subsidiary Affiliates, which
are collectively referred to herein as the “Company”, as applicable. “Subsidiary Affiliate” means, with
respect to PRTH, any corporation, limited liability company, partnership, firm, joint venture, association, joint-stock company,
trust, unincorporated organization, governmental body or other entity that is, directly or indirectly, controlled by or under common
control with PRTH.

 

WHEREAS, PRTH
desires to continue to employ Employee on and after the Effective Date and to enter into this Agreement with Employee embodying
the terms of such employment; and

 

WHEREAS, Employee
desires to continue to accept such employment by entering into this Agreement with the Company.

 

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

 

1.          Term
of Employment. Employee became employed by the Company as it’s Chief Financial Officer (“CFO”) effective
as of December 3, 2018 (“Hire Date”) pursuant to that certain offer letter between the Company and Executive dated
November 8, 2018, a copy of which is attached hereto as Exhibit A. PRTH hereby agrees to continue to employ Employee, and
Employee hereby accepts such continued employment with PRTH, upon the terms and subject to the conditions set forth in this Agreement,
for a period commencing on the Hire Date and continuing for an initial term of three (3) years with automatic successive one-year
extension terms thereafter unless earlier terminated in accordance with the provisions of Section 5 (the “Employment Term”).

 

    - 2 - 

     

    

 

2.          Title;
Duties. Employee shall serve as the Chief Financial Officer (“CFO”) of PRTH and the Companies. Employee shall
report to the Board of Directors of PRTH (“the Board”), with specific direct reporting to the Executive Chairman
of the Board. Notwithstanding the foregoing obligation to report to the Board and the Executive Chairman, Employee shall
provide such management updates, division performance updates, personnel and operational updates, and any such other updates
or business performance reports as reasonably requested by the CEO of the Companies from time to time at the CEO’s
reasonable request. In the event of a dispute or request for clarification of direction between Employee and the CEO, then such dispute or request for clarification
shall be submitted to the Board for resolution. Employee agrees to undertake the duties and responsibilities inherent in such position
and such other duties and responsibilities consistent with such position as the Executive Chairman shall from time to time reasonably
assign to Employee. Employee further agrees to devote substantially all of Employee’s working time and attention on a full
time basis to such duties and responsibilities, except for PTO as set forth in Section 4.3, absence for sickness or similar disability
in accordance with the Company’s existing policies and practices, and reasonable amounts of time spent performing services
for any charitable, religious, or community organizations, so long as such services do not interfere with the performance of Employee’s
duties under this Agreement.

  

3.             No
Conflicting Commitments. Employee will not enter into any employment or consulting agreement that, in the opinion of the Board,
conflicts with the Company’s interests or that might impair the performance of Employee’s duties as an employee of
the Company consistent with the terms of this Agreement.

 

4.             Compensation
and Benefits.

 

4.1.          Salary
& Bonus.

 

(a)          Base
Salary. The Company shall pay Employee for Employee’s services hereunder a base salary at the initial annual rate of
Four Hundred Twenty Five Thousand Dollars ($425,000), payable in regular installments in accordance with the Company’s usual
payment practices and subject to annual review and increase. Such amount (as it may be increased from time to time) shall be referred
to herein as the “Base Salary.” The Company will review the Base Salary of Employee at least annually and may
increase (but not decrease other than pursuant to across-the-board reductions for all or substantially all employees or personnel
similarly situated) the Base Salary based upon the past and projected performance of the Company.

 

(b)          Bonus.
Beginning with calendar years commencing on and after January 1, 2019, Employee will be eligible to receive an annual bonus during
the Employment Term (“Bonus”). The target Bonus for each calendar year shall be an amount equal to but not less than
twenty-five percent (25%) and not more than fifty percent (50%) of Employee’s Base Salary with the actual amount to be based
on the level of achievement of individual and Company performance criteria established by the Board for such calendar year. Employee
will not be eligible to receive any Bonus if Employee is not employed on the last day of the calendar year for which the Bonus
is to be paid, except as provided in Section 5 below. The Bonus will be subject to all applicable withholdings and will be paid
no later than forty-five (45) days after the end of the applicable calendar year.

 

    - 3 - 

     

    

 

(c)          Equity
Incentive. During the Employment Term, Employee shall be eligible to participate in the PRTH Equity Incentive Plan, under the
terms and conditions set forth in the PRTH Equity Incentive Plan. The Company and the Employee shall enter into a restricted stock
unit (RSU) award agreement (the “Award Agreement”) pursuant to which the Employee receives the right to to earn up
to Seven Hundred Fifty Thousand Dollars ($750,000) worth of Restricted Stock Units on each anniversary of his Hire Date with the
Company (based on current market value of the Company’s shares on each anniversary of his Hire Date) for the first five (5)
years of Participant’s employment with the Company as the Company’s CFO, with each annual issuance of Restricted Stock
Units subject to a two (2) year vesting schedule as set forth in the Award Agreement (such shares, the “Restricted Stock
Unit Award”). Employee and the Company will negotiate in good faith to resolve and execute any applicable PRTH Equity Incentive
Plan documents, including any applicable Restricted Stock Unit Award Agreements, within ninety (90) days of the execution of this
Agreement. Any Restricted Stock Unit Award Agreement will be in substantially the form as that attached as Exhibit D.

 

Notwithstanding the foregoing
or anything in this Agreement or the PRTH Equity Incentive Plan to the contrary, the unvested portion of any outstanding Restricted
Stock Unit award granted to Employee under the PRTH Equity Incentive Plan shall immediately and automatically become one-hundred
percent (100%) vested upon the closing of any go-private transaction that causes all of the equity to cease to be publicly traded
on Nasdaq or any other public stock exchange or in the event of a Change of Control of the Company. For purposes of this definition,
a “Change of Control” shall have such meaning as defined in the Company’s Credit and Guaranty Agreement with
SunTrust Bank dated January 3, 2017, as amended from time to time (the “SunTrust Agreement”).

 

4.2.          Employee
Benefits. Subject to any contributions therefor generally required of employees of the Company, Employee shall be entitled
to receive such employee benefits (including fringe benefits, 401(k) plan participation, and life, health, dental, accident and
short- and long-term disability insurance) that the Company may, in its sole and absolute discretion, make available generally
to its employees or personnel similarly situated; provided that, Employee acknowledges and agrees that any such employee benefit
plans may be altered, modified or terminated by the Company in accordance with their terms at any time in its sole discretion without
recourse by Employee.

 

4.3.          Paid
Time Off. Employee shall be entitled to paid time off (“PTO”), accrued in accordance with the Company’s
existing policies and practices, provided that such PTO shall to be taken at such time or times as shall be mutually convenient
for the Company and Employee. PTO shall accrue, and unused PTO shall be allocated, pursuant to the Company’s existing policies
and practices. For purposes of clarity, PTO shall not include any paid holidays separately observed by the Company pursuant to
the Company’s policies and practices. Notwithstanding the foregoing or anything in this Agreement to the contrary, during
the Employment Term, Employee is entitled to four (4) weeks of paid vacation per calendar year. All vacation must be pre-approved
by the Executive Chairman.

 

4.4.          Business
Expenses and Perquisites. Upon delivery of adequate documentation of expenses incurred in accordance with the policies and
practices of the Company as may from time to time be in effect, Employee shall be entitled to reimbursement by the Company for
reasonable travel and other business expenses incurred by Employee in the performance of Employee’s duties hereunder.

 

    - 4 - 

     

    

 

4.5.          Certain
Other Matters. In connection with this Agreement, Employee shall execute and deliver the Employee Confidentiality, Assignment
of Inventions, and Non-Solicitation Agreement (the “Non-Solicitation Agreement”) attached as Exhibit B.

 

4.6.          Taxes.
All of Employee’s compensation, including, without limitation, the Base Salary and Bonus, shall be subject to withholding
for all applicable federal, state and local employment-related taxes, including income, social security, and similar taxes.

 

5.             Termination.

 

5.1.          Termination
by the Company. The Company may terminate Employee’s employment hereunder at any time with or without cause to be effective
immediately upon delivery of notice thereof. The effective date of Employee’s termination shall be referred to herein as
the “Termination Date.” If Employee’s employment is terminated by the Company pursuant to this Section
5.1, the Company shall pay Employee all earned but unpaid Base Salary prior to the Termination Date and, if consistent with the
Company’s then-current policies and practices, the cash value of any accrued but unused PTO as of the Termination Date (collectively,
“Accrued Obligations”).

 

(a)          Without
Cause Termination. In the event Employee’s employment is terminated during the initial term of this Agreement by the
Company or surviving companies (i.e., if the Company is acquired), in addition to the Accrued Obligations, for reasons other than
for cause pursuant to Section 5.1(b) below, the Company shall also pay Employee (in increments according to the Company’s
normal payroll schedule) the Base Salary for a period of six (6) months following the Termination Date and the earned but unpaid
portion of the Bonus for the calendar year preceding the calendar year in which the Termination Date occurs (collectively, the
“Severance Package”), provided that Employee satisfies the conditions set forth at the end of this paragraph
(the “Severance Conditions”). Employee shall not be eligible for the Severance Package unless and until twenty-eight
(28) days (including a seven-day revocation period) after Employee has first satisfied and continues to satisfy the following Severance
Conditions: (1) Employee is in compliance with the Non-Solicitation Agreement; (2) Employee is in compliance with all of Employee’s
obligations under this Agreement; and (3) Employee executes and delivers a waiver and general release of claims in favor of the
Company and its affiliates substantially in the form of Exhibit C.

 

    - 5 - 

     

    

 

(b)          For
Cause Termination. In the event Employee’s employment is terminated “for cause” (defined below) by the Company
under this Section 5.1(b), the Company shall pay Employee only the Accrued Obligations. For purposes of this Agreement, “for
cause” means: (i) Employee’s arbitrary, unreasonable or willful failure to perform, in any material respect, the duties
and responsibilities required hereunder and assigned by the Executive Chairman from time to time (including, without limitation,
continuous constructive collaboration with the Executive Chairman and other members of the management team) that is not cured by
Employee within ten days after the first notice from the Company specifying the nature of the default in reasonable detail (i.e.,
how Employee has failed to perform or comply) or, if the default cannot be cured within such ten-day period, failure of Employee
within such ten-day period to commence and pursue curative action with reasonable diligence; (ii) Employee’s gross negligence
or willful misconduct in the performance of Employee’s duties under this Agreement; (iii) Employee’s commission of
an act constituting fraud, embezzlement, breach of any fiduciary duty owed to the Company or its shareholders or other material
dishonesty with respect to the Company; (iv) Employee’s conviction of, or the filing of a plea of nolo contendere or its
equivalent, with respect to a felony or any other crime involving dishonesty or moral turpitude; (v) substance abuse (for the purposes
of this agreement substance abuse is the use of alcohol or illegal substances including misuse of otherwise legally obtained medications
that otherwise interferes with Employee’s ability to perform the functions of the position) that is materially injurious
to the Company (whether from a monetary perspective or otherwise); or (vi) Employee’s material breach of Employee’s
obligations under this Agreement or the Non-Solicitation Agreement that is not cured by Employee within ten days after the first
notice from the Company specifying the nature of the default in reasonable detail (i.e., how Employee has failed to perform or
comply) or, if the default cannot be cured within such ten-day period, failure of Employee within such ten-day period to commence
and pursue curative action with reasonable diligence and to the reasonable satisfaction of the Company.

 

5.2.          Termination
by Employee; Deemed Termination. Employee’s employment hereunder may be terminated by Employee at any time upon not less
than ninety (90) days’ prior written notice from Employee to the Company. Employee agrees that such notice period is reasonable
and necessary in light of the duties assumed by Employee pursuant to this Agreement and fair in light of the consideration Employee
is receiving pursuant to this Agreement. In the event of such notice by Employee, the Company may limit the Employee’s activities
during the notice period or the Company may impose any other restrictions it deems necessary and reasonable, including relieving
Employee of all duties during the notice period.

 

(a)          Termination
for Good Reason. Notwithstanding the foregoing, Employee shall be deemed to have terminated Employee’s employment with
the Company for “good reason” and, in such case, in addition to the Accrued Obligations, Employee shall be entitled
to the Severance Package (provided Employee satisfies the Severance Conditions) in the event any of the following occurs and Employee
provides to the Company Notice of Termination (as defined in Section 5.3) during the time frame specified above or, if later, after
any applicable cure period: (i) the Company reduces Employee’s Base Salary or benefits (other than in connection with a proportional
reduction of the base salaries or benefits in excess of twenty percent (20%) of all executive employees of the Company); or (ii)
the Company materially breaches any of Sections 4.1 through 4.4 hereof, or otherwise requires Employee to report to a senior executive
other than the Chairman of the Board or the Chief Executive Officer; provided that any of the events described in clauses (i) or
(ii) of this Section 5.2(a) shall be deemed termination for “good reason” only if the Company fails to cure such event
within ten days after a written notice is delivered by Employee to the Company specifically identifying the event that may be deemed
termination for “good reason” pursuant to this Section 5.2(a) or, if the default cannot be cured within such ten-day
period, failure of the Company within such ten-day period to commence and pursue curative action with reasonable diligence and
to the reasonable satisfaction of Employee.

 

    - 6 - 

     

    

 

(b)          Termination
Without Good Reason. In the event Employee terminates Employee’s employment with the Company without “good reason”
(as defined in Section 5.2(a)), the Company shall only pay Employee the Accrued Obligations.

 

5.3.          Notice
of Termination. Any termination of employment by the Company or Employee shall be communicated by written Notice of Termination
to the other Party in accordance with Section 9 hereof. For purposes of this Agreement, a “Notice of Termination”
means a notice that shall indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination of employment under the provision so indicated.

 

5.4.          Survival.
The provisions of Sections 4, 5, and 6 hereof and the Non-Solicitation Agreement shall survive the termination of this Agreement.

 

6.           Confidentiality
Agreement. In connection with this Agreement, Employee has executed the Non-Solicitation Agreement, which is incorporated herein
by reference and made a part of this Agreement.

 

7.           Return
of Company Property. Employee agrees that upon termination of Employee’s employment hereunder, Employee shall return
immediately to the Company any proprietary materials, any materials containing Confidential Information (as defined in the Non-Solicitation
Agreement) and any other Company or Company affiliate’s property then in Employee’s possession or under Employee’s
control, including without limitation all notes, customer, voluntary benefits carrier, employer, employee and broker lists and
contact information, drawings, memoranda, magnetic disks or tapes, or other recording media containing such Confidential Information,
whether alone or together with non-confidential information, all documents, reports, files, memoranda, records, software, credit
cards, door and file keys, telephones, personal digital assistants, computers, tablet devices, computer access codes, disks and
instructional manuals, or any other physical property that Employee received, had access to, prepared, or helped prepare in connection
with Employee’s employment under this Agreement. Following termination, Employee shall not retain any copies, duplicates,
reproductions, or excerpts of Confidential Information, nor shall Employee show or give any of the above to any third party. Employee
further agrees that Employee shall not retain or use for Employee’s account at any time any trade name, trademark, service
mark, logo or other proprietary business designation used or owned in connection with the business of the Company or any affiliate
of the Company.

 

    - 7 - 

     

    

 

8.          Specific
Performance; Remedies. Employee agrees that, in the event of a breach or threatened breach of the Non-Solicitation Agreement,
in addition to any remedies at law, the Company, without posting any bond, shall be entitled to obtain equitable relief in the
form of specific performance, temporary restraining orders, temporary or permanent injunctions or any other equitable remedy that
may then be available.

 

9.          Notices.
Any notice hereunder by either Party to the other shall be given in writing by personal delivery, email (with confirmation from
the receiving party), facsimile, overnight courier or certified mail, return receipt requested, addressed, if to the Company, to
the attention of the Executive Chairman at the Company’s executive offices or to such other address as the Company may designate
in writing at any time or from time to time to Employee with a copy (which shall not constitute notice) to the Company’s
General Counsel at the Company’s executives offices, and if to Employee, to Employee’s most recent address and contact
information on file with the Company. Notice shall be deemed given, if by personal delivery or by overnight courier, on the date
of such delivery or, if by facsimile, on the business day following receipt of delivery confirmation, if by email, on the date
confirmation from the receiving Party is received by the Party providing notice, or, if by certified mail, on the date shown on
the applicable return receipt.

 

10.          Successors
and Assigns. This Agreement shall inure to the benefit of the Company and its respective successors and assigns. This Agreement
may not be assigned by either Party without the prior written consent of the other Party; provided that the Company may assign
this Agreement without Employee’s consent to an affiliate of the Company (or its successor), provided, however,
that in the event of a sale of all or substantially all of the assets of the Company or any direct or indirect division or subsidiary
thereof to which employee’s employment primarily relates, the Company may provide that this Agreement will be assigned to,
and assumed by, the acquiror of such assets, it being agreed that in such circumstances, Employee’s consent will not be required
in connection therewith. This Agreement shall be binding on the Parties’ permitted successors and assigns.

 

11.          Entire
Agreement. This Agreement, the Non-Solicitation Agreement, and the Company’s policies and procedures as approved by the
Company and in effect and as amended from time to time constitute the entire agreement between the Parties with respect to the
subject matter hereof. To the extent there is any conflict between this Agreement and the Non-Solicitation Agreement, this Agreement
shall prevail.

 

12.          Expenses.
The Parties shall each pay their own respective expenses incident to the enforcement or interpretation of, or dispute resolution
with respect to, this Agreement, including all fees and expenses of their counsel for all activities of such counsel undertaken
pursuant to this Agreement.

 

    - 8 - 

     

    

 

13.          Governing
Law. THIS AGREEMENT (INCLUDING ANY CLAIM OR CONTROVERSY ARISING OUT OF OR RELATING TO THIS AGREEMENT) SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF GEORGIA, WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THAT WOULD RESULT
IN THE APPLICATION OF ANY LAW OTHER THAN THE LAWS OF THE STATE OF GEORGIA. ANY DISPUTE OR CLAIM ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR CLAIM OF BREACH HEREOF SHALL BE BROUGHT EXCLUSIVELY IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT
OF GEORGIA, ATLANTA DIVISION, TO THE EXTENT FEDERAL JURISDICTION EXISTS, AND IN THE SUPERIOR COURT OF FULTON COUNTY, GEORGIA, BUT
ONLY IN THE EVENT FEDERAL JURISDICTION DOES NOT EXIST, AND ANY APPLICABLE APPELLATE COURTS. BY EXECUTION OF THIS AGREEMENT, THE
PARTIES HERETO, AND THEIR RESPECTIVE AFFILIATES, CONSENT TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS, AND WAIVE ANY RIGHT TO CHALLENGE
JURISDICTION OR VENUE IN SUCH COURT WITH REGARD TO ANY SUIT, ACTION, OR PROCEEDING UNDER OR IN CONNECTION WITH THIS AGREEMENT.

 

14.          Waiver
of Jury Trial. EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT SUCH PARTY MAY HAVE TO
A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT
OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

15.          Waivers
and Further Agreements. Any waiver of any terms or conditions of this Agreement shall not operate as a waiver of any other
breach of such terms or conditions or any other term or condition, nor shall any failure to enforce any provision hereof operate
as a waiver of such provision or of any other provision hereof; provided, that no such written waiver, unless it, by its own terms,
explicitly provides to the contrary, shall be construed to effect a continuing waiver of the provision being waived and no such
waiver in any instance shall constitute a waiver in any other instance or for any other purpose or impair the right of the Party
against whom such waiver is claimed in all other instances or for all other purposes to require full compliance with such provision.
Each Party agrees to execute all such further instruments and documents and to take all such further action as the other Party
may reasonably request to effectuate the terms and purposes of this Agreement.

 

    - 9 - 

     

    

 

16.          Amendments.
This Agreement may not be amended, nor shall any waiver, change, modification, consent or discharge be effected, except by an instrument
in writing executed by both Parties.

 

17.          Severability;
Headings. If any portion of this Agreement is held invalid or inoperative, the other portions of this Agreement shall be deemed
valid and operative and, so far as is reasonable and possible, effect shall be given to the intent manifested by the portion held
invalid or inoperative. The section headings are for reference purposes only and are not intended in any way to describe, interpret,
define or limit the extent of the Agreement or of any part hereof.

 

18.          Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. This Agreement may be executed by facsimile and electronically transmitted signature
(e.g., portable document format) and such signatures shall be deemed to be originals.

 

19.          Legal
Advice. Employee acknowledges that Employee has been advised to seek the advice of independent legal counsel and has either
obtained such advice or has voluntarily and without compulsion elected to enter into and be bound by the terms of this Agreement
without such advice of independent legal counsel.

 

[Signature Page Follows]

 

    - 10 - 

     

    

 

Execution Version

  

IN WITNESS WHEREOF,
the Parties have duly executed and delivered this Employment Agreement as of the Effective Date.

 

	 	EMPLOYEE:
	 	/s/ Michael Vollkommer
	 	Michael Vollkommer
	 	 	 
	 	COMPANY:
	 	 	 
	 	Priority Technology Holdings, Inc.
	 	 	 
	 	By:	/s/ Thomas Priore
	 	Name:	Thomas Priore
	 	Title:	President and Chief Executive Officer

 

Signature Page
to Employment Agreement

 

     

     

    

 

Execution Version

 

Exhibit B

 

EMPLOYEE CONFIDENTIALITY, ASSIGNMENT
OF INVENTIONS, 

AND NON-SOLICITATION AGREEMENT

 

Michael Vollkommer

 

In consideration of
my employment with and continued employment by Priority Technology Holdings, Inc., a Delaware corporation (together with
its affiliates, the “Company”), and for other valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, I agree as follows:

 

Confidentiality

 

I understand that the
Company and its affiliates continually obtain and develop valuable proprietary and confidential information concerning their business,
business relationships, and financial affairs, (the “Confidential Information”), that has or may become known
to me in connection with my employment. By way of illustration but not limitation, Confidential Information shall include Inventions
(as defined below), trade secrets, technical information, know-how, research and development activities, product, service and marketing
plans, business plans, budgets and unpublished financial statements, licenses, prices and costs, customer and supplier information,
information (including contact coordinates) for employers and employees, and information disclosed to the Company or to me by third
parties of a proprietary or confidential nature or under an obligation of confidence. Confidential Information is contained in
various media, including without limitation, patent applications, computer programs in object and source code, flow charts and
other program documentation, manuals, plans, drawings, designs, technical specifications, supplier, customer, carrier and claimant
lists, claimant case files, internal financial data and other documents and records of the Company.

 

Confidential Information
shall not include information that I can demonstrate: (1) is or becomes generally known within the Company’s industry through
no fault of mine or any other person with an obligation of confidentiality to the Company; (2) is lawfully and in good faith made
available to me by a third party who did not derive it from the Company and who imposes no obligation of confidence on me; or (3)
is required to be disclosed by a governmental authority or by order of a court of competent jurisdiction, provided that such disclosure
is subject to all applicable governmental or judicial protection available for like material and reasonable advance notice is given
to the Company.

 

I represent and warrant
that: (1) I am not subject to any legal or contractual duty or agreement that would prevent or prohibit me from performing the
duties contemplated by my employment agreement with the Company or otherwise contained herein, and (2) I am not in breach of any
legal or contractual duty or agreement, including any agreement concerning trade secrets or confidential information owned by any
other party.

 

     

     

    

 

I agree that I will
not: (1) use, disclose, or reverse engineer any Confidential Information for any purpose other than the Business (as defined below),
except as authorized in writing by the Company; (2) during my employment with the Company, use, disclose, or reverse engineer (a)
any confidential information or trade secrets of any former employer or third party or (b) any works of authorship developed in
whole or in part by me during any former employment or for any other party, unless authorized in writing by the former employer
or third party; or (3) upon my resignation or termination (a) retain any Confidential Information, including any copies existing
in any form (including electronic form), which are in my possession, custody, or control, or (b) destroy, delete, or alter any
Confidential Information without the Company’s written consent.

 

I acknowledge that
the confidentiality, property, and proprietary rights protections contained in this Agreement are in addition to, and not exclusive
of, any and all other rights to which the Company may be entitled under federal and state law, including without limitation rights
provided under copyright laws, trade secret and confidential information laws, and laws concerning fiduciary duties.

 

I acknowledge that
all Confidential Information, whether or not in writing and whether or not labeled or identified as confidential or proprietary,
is and shall remain the exclusive property of the Company or the third party providing such Confidential Information to myself
or the Company.

 

I agree to exercise
all reasonable precautions to protect the integrity and confidentiality of Confidential Information in my possession and not to
remove any materials containing Confidential Information from the Company’s premises except to the extent necessary for my
employment. Upon the termination of my employment, or at any time upon the Company’s request, I shall return immediately
to the Company any and all materials containing any Confidential Information then in my possession or under my control.

 

Nothing contained herein
or in my employment agreement with the Company is intended to or will be used in any way to limit your rights to communicate or
cooperate with, or provide information to, a governmental agency or entity as provided for, protected under, or warranted by whistleblower
or other provisions of applicable law or regulation.

 

Assignment of
Inventions

 

I agree promptly to
disclose to the Company any and all discoveries, inventions, developments, original works of authorship, software programs, software
and systems documentation, trade secrets, technical data, and know-how that are conceived, devised, invented, developed or reduced
to practice or tangible medium by me, under my direction or jointly with others in the course and scope of my employment by the
Company, whether or not during normal working hours or on the premises of the Company, which relate directly or indirectly to the
business of the Company or its affiliates (collectively, the “Business”) and arise out of my employment with
the Company (hereinafter “Inventions”).

 

     

     

    

 

I hereby assign to
the Company (or its designated affiliates) all of my right, title, and interest to the Inventions and any and all related patent
rights, copyrights, and applications and registrations therefor. During and after my employment, I shall cooperate with the Company,
at the Company’s expense, in obtaining proprietary protection for the Inventions, and I shall execute all documents that
the Company shall reasonably request in order to perfect the Company’s (or its designated affiliates’) rights in the
Inventions. I understand that, to the extent this Agreement shall be construed in accordance with the laws of any state which limits
the assignability to the Company of certain employee inventions, this Agreement shall be interpreted not to apply to any such invention
that a court rules or the Company agrees is subject to such state limitation.

 

I acknowledge that
all original works of authorship made by me within the scope of my employment that are protectable by copyright are intended to
be “works made for hire”, as that term is defined in Section 101 of the United States Copyright Act of 1976 (the “Act”),
and shall be the property of the Company, and the Company shall be the sole author within the meaning of the Act. I hereby waive
all claims to moral rights in any Inventions. I further represent that there are no inventions made, conceived or first reduced
to practice by me, under my direction or jointly with others prior to my employment with the Company.

 

Restrictive Covenants

 

I acknowledge and agree
that: (1) my position is a position of trust and responsibility with access to Confidential Information; (2) the Confidential Information,
and the relationship between the Company, its affiliates, and the employees and customers of each, are valuable assets of the Company
that may not be used for any purpose other than the Business; (3) the names of any customers of the Company or its affiliates are
considered Confidential Information that constitutes valuable, special, and unique property of the Company; (4) customer lists
and customer information that have been compiled by the Company or its affiliates represent a material investment of the Company’s
time and money; (5) the Company will invest its time and money in the development of my skills in the Business; and (6) the restrictions
contained in this herein, including without limitation the restrictive covenants set forth in this Agreement, are reasonable and
necessary to protect the legitimate business interests of the Company and its affiliates, and they will not impair or infringe
upon my right to work or earn a living when my employment with the Company ends.

 

I acknowledge that
(1) the markets served by the Company are intended to be national in scope and not dependent on the geographic location of the
executive personnel or the businesses by which they are employed, and (2) the below covenants are manifestly reasonable on their
face. The Company and I expressly agree that such restrictions have been designed to be reasonable and no greater than is required
for the protection of the Company and are a significant element of the consideration hereunder. If the final judgment of a court
of competent jurisdiction declares that any term or provision contained herein is invalid or unenforceable, the Company and I agree
that the court making the determination of invalidity or unenforceability shall have the power to reduce the scope, duration, or
area of the term or provision, to delete specific words or phrases, or to replace any invalid or unenforceable term or provision
with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable
term or provision, and the covenants and agreements contained herein shall be enforceable as so modified to cover the maximum duration,
scope, or area permitted by law.

 

     

     

    

 

Non-Solicitation
of Customers

 

I agree that, while
I am employed by the Company and for a period of two years following any termination or cessation of such employment (such period,
the “Non-Interference Period”), I shall not solicit, divert, or take away, or attempt to divert or take away,
the business or patronage of any of the referral sources, clients, customers, or accounts of the Company for the purpose of selling
or providing any products or services competitive with the Business.

 

Non-Solicitation
and Non-Hire of Employees

 

While I am employed
by the Company and during the Non-Interference Period, I will not, directly or indirectly, for my benefit or for the benefit of
any person other than the Company, (1) solicit or assist any person to solicit, recruit, or induce any officer, director, Executive
Chairman, executive, employee or consultant of the Company or its affiliates to (a) terminate his or her employment or relationship
with the Company or its affiliates, or (b) work for any other person, or (2) hire or cause to be hired any person who is then,
or who will have been at any point in time during the Non-Interference Period, an officer, director, Executive Chairman, executive,
employee, or consultant of the Company or its affiliates.

 

Non-Competition

 

While I am employed
by the Company and during the Non-Interference Period, I will not engage or participate, directly or indirectly, as principal,
agent, executive, director, proprietor, joint venturer, trustee, employee, employer, consultant, stockholder, partners, or in any
other capacity whatsoever in the conduct or management of, or fund, invest in, lend to, own any stock or any other equity or debt
investment in, or provide any services of any nature whatsoever to or in respect of any business that is competitive with or in
the same line of business as the Business in the United States, provided that nothing in this Agreement shall prohibit me from
being passive beneficial owner of less than two percent of the outstanding stock of any publicly-traded corporation.

 

Separate Obligations

 

I hereby acknowledge
that the foregoing obligations are separate and distinct (and that I have received or will receive separate consideration for the
foregoing obligations) from and not in derogation of any obligations I have undertaken in connection with any other agreements
between myself and the Company.

 

     

     

    

 

Other Agreements

 

I hereby represent
to the Company that I am not bound by any agreement or any other previous or existing business relationship that conflicts with
or prevents the full performance of my duties and obligations to the Company (including my duties and obligations under this or
any other agreement with the Company) during my employment. All existing business relationships and agreements that I have with
persons other than the Company are set forth on Schedule A hereto.

 

General

 

This Agreement may
not be assigned by either party, except that the Company may assign this Agreement to its affiliates or in connection with the
merger, consolidation or sale of all or substantially all of its business or assets. This Agreement shall be binding upon and shall
inure to the benefit of the parties hereto and their respective successors and other legal representatives and, to the extent that
any assignment hereof is permitted hereunder, their assignees. This Agreement may be executed in two or more counterparts, each
of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement may
be executed by facsimile or electronically transmitted signature (e.g., portable document format), and such signatures shall be
deemed to be originals.

 

This Agreement supersedes
all prior agreements, written or oral, with respect to the subject matter of this Agreement. This Agreement may be changed only
by a written instrument signed by both parties hereto.

 

In the event that any
one or more of the provisions contained herein shall, for any reason, be held to be invalid, illegal, or unenforceable in any respect,
such invalidity, illegality, or unenforceability shall not affect any other provisions of this Agreement, and all other provisions
shall remain in full force and effect. If any of the provisions of this Agreement is held to be excessively broad, it shall be
reformed and construed by limiting and reducing it so as to be enforceable to the maximum extent permitted by law. I agree that
should I violate any obligation imposed on me in this Agreement, I shall continue to be bound by the obligation until a period
equal to the term of such obligation has expired without violation of such obligation.

 

No delay or omission
by the Company in exercising any right under this Agreement will operate as a waiver of that or any other right. A waiver or consent
given by the Company on any occasion is effective only in that instance and will not be construed as a bar to or waiver of any
right on any other occasion.

 

     

     

    

 

I acknowledge that
the restrictions contained in this Agreement are necessary for the protection of the business and goodwill of the Company and the
Company’s legitimate business interests, are reasonable for such purpose, and are reasonable and valid in geographical and
temporal scope and in all other respects and not overly broad or unduly burdensome. I agree that any breach of this Agreement by
me will cause irreparable damage to the Company and that, in the event of such breach, the prevailing party in any such enforcement
action shall be entitled, in addition to monetary damages and any other remedies available to the prevailing party under this Agreement
and at law, to equitable relief, including injunctive relief, and to payment of all costs incurred by the prevailing party in enforcing
or defending the provisions of this Agreement, including reasonable attorneys’ fees and costs. I agree that should I violate
any obligation imposed on me in this Agreement, I shall continue to be bound by the obligation until a period equal to the term
of such obligation has expired without violation of such obligation.

 

 

This Agreement shall
be construed as a sealed instrument and shall in all events and for all purposes be governed by, and construed in accordance with,
the laws of the State of Georgia without regard to any choice of law principles that would dictate the application of the laws
of another jurisdiction.

 

[Signature Page Follows] 

 

     

     

    

 

Execution
Version

 

I HAVE READ ALL OF THE PROVISIONS OF
THIS EMPLOYEE CONFIDENTIALITY, ASSIGNMENT OF INVENTIONS, AND NON-SOLICITATION AGREEMENT AND I UNDERSTAND AND AGREE TO EACH OF SUCH
PROVISIONS EFFECTIVE AS OF THE DATE FIRST SET FORTH ABOVE.

 

	/s/ Michael
    Vollkommer	 
	Michael Vollkommer	 
	 	 	 
	Acknowledged and Agreed to by:	 
	 	 	 
	Priority Technology Holdings, Inc.	 
	 	 	 
	By:	/s/ Thomas Priore	 
	Name:	Thomas Priore	 
	Title:	President and Chief Executive Officer	 

 

Signature Page
to

Employee Confidentiality, Assignment of Inventions, and Non-Solicitation Agreement

 

     

     

    

 

Exhibit C

 

Form of Release

 

[DATE]

 

Priority Technology Holdings, Inc.

Attn: General Counsel

2001 Westside Parkway, Suite 155

Alpharetta, GA 30004

(together with its affiliates, the “Company”)

 

Except as set forth in the Employment Agreement
by and between myself (the “Employee” or “I”) and the Company dated as of ___________ (the
“Employment Agreement”), I am entitled to no severance or termination payment or benefits. I acknowledge the
Company has no legal obligation to provide me with the benefits and consideration outlined in the Employment Agreement except as
part of this release letter and in consideration for my signing of this release letter. I have been notified of my right to review
this release letter with counsel, and I have received, if I so chose, legal advice concerning this release letter.

 

General Release.
Employee acknowledges that the Company has no legal obligation to provide Employee with these benefits except as part of the Employment
Agreement and in consideration for Employee signing this release letter and the waiver and release of claims contained herein.
In return for these benefits, Employee irrevocably and unconditionally releases the Company and all affiliated companies, predecessors
and successors of each and each such entity’s officers, directors, employees, agents, attorneys or insurers in their individual
and representative capacities (collectively referred to as the “Company Parties”) from any and all claims, causes
of action, complaints, damages, liabilities and expenses whatsoever, whether known or unknown, direct or indirect, at law or in
equity and whether sounding in contract, tort or other theory (collectively, “Claims”) that Employee may have
now, have had in the past or have in the future for or by reason of any matter, cause or thing whatsoever that has happened, developed
or occurred on or before the date hereof, including without limitation in connection with Employee’s employment or termination
of employment with the Company. This release of the Company includes any Claims that Employee might have for re-employment or for
additional compensation or benefits (except as specifically stated below), and applies to Claims that Employee might have under
federal, state or local law or ordinance dealing with employment, contract, wage and hour, tort, or civil rights matters, including,
but not limited to, applicable local and state civil rights matters, including, but not limited to, applicable local and state
civil rights laws or wage payment laws, Employee Retirement Income Security Act, Title VII of the Civil Rights Act of 1964, the
Civil Rights Acts (42 USC § 1981-1988), the Civil Rights Act of 1991, the Age Discrimination in Employment Act of 1967 (the
“ADEA”), Section 806 of the Sarbanes Oxley Act of 2002 and any other Claims alleging retaliation of any nature,
the Vietnam Era Veterans Readjustment Assistance Act, the Uniformed Services Employment and Reemployment Rights Act of 1994, the
Older Workers Benefit Protection Act, the Equal Pay Act of 1963, the Rehabilitation Act of 1973, the Americans with Disabilities
Act of 1990, the Equal Pay Act of 1963, the Fair Labor Standards Act, sections 503 and 504 of the Vocational Rehabilitation Act,
the Family and Medical Leave Act, Executive Order 11246, and the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”),
all as amended from time to time, together with all laws and regulations promulgated thereunder. Employee represents that there
are no claims, complaints or charges pending against the Company in which Employee is a party or complainant, or any unasserted
Workers’ Compensation claims. Employee further agrees not to institute any Claim to challenge the validity of this release
or the circumstances surrounding its execution. This is a general release, including a waiver of Claims for age discrimination
under federal and state statutes, such as the ADEA. Employee understands the waiver and release of claims does not affect rights
or claims arising under the ADEA or the Older Workers Benefit Protection Act after the date of the execution of this release letter.

 

     

     

    

 

Covenant Not to Sue.
Employee represents and warrants that Employee has not filed any Claims against the Company or any of the Company Parties with
any local, state or federal court or administrative agency. Employee agrees and covenants not to sue or bring any Claims against
the Company or any of the Company Parties with respect to any matters arising out of or relating to Employee’s employment
with the Company or separation from the Company, or any Claims that as a matter of law cannot be released, such as under workers’
compensation, for unemployment benefits or any Claims related to the Company’s future involvement with, if any, Employee’s
401(k)/retirement plans with the Company. Except as set forth herein, in the event that Employee on Employee’s behalf institutes
any such action, that Claim shall be dismissed upon presentation of this release letter, and Employee shall reimburse the Company
for all legal fees and expenses incurred in defending such Claim and obtaining its dismissal.

 

Exclusion. Nothing in this release
letter shall preclude Employee from filing a charge or complaint, including a challenge to the validity of this release letter,
with the Equal Employment Opportunity Commission or any state anti-discrimination agency or from participating or cooperating in
any investigation or proceeding conducted by any of such agencies. In the event that a charge or complaint is filed with any administrative
agency by Employee or in the event of an authorized investigation, charge or lawsuit filed by any administrative agency, Employee
expressly waives and shall not accept any monetary awards or damages, costs or attorneys’ fees of any sort therefrom against
the Company or any of the Releasees.

 

     

     

    

 

Waiting Period. I understand I have
a period of up to 21 days to consider this release letter and that I have been advised to speak with an attorney. I agree this
release letter is written in a manner that I understand what I am releasing. I understand that this release must be signed no later
than 21 days from the date first set forth above for me to be entitled to the benefits of the Severance Package (as defined in
the Employment Agreement). I agree that upon signing this release letter I become bound by its terms unless I revoke the release
contained herein. I understand I may revoke the release contained herein within seven days after signing it; and that, unless I
so revoke it, the release contained herein will be fully effective seven days after I have signed it. Once this release letter
is fully effective, the Severance Package will be forwarded by U.S. mail according to the schedule in the terms of the Employment
Agreement.

 

	Yours truly,	 	 	 
	Date:	 	 	Signature:	 
	 	Print Name:   Michael Vollkommer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}]]