Document:

plpm_EX_10-26

		

			Exhibit 10.26

		

		

			EXECUTION VERSION

		

		
			SECOND AMENDMENT TO CREDIT AND SECURITY AGREEMENT
		

		
			This Second Amendment to Credit and Security Agreement (this “Amendment”), dated as of January 28, 2016, is made by and among (i) CITIZENS BANK, N.A. (the “Bank”), (ii) PLANET PAYMENT, INC., a Delaware corporation (“Parent”), (iii) each of the Affiliates of Parent identified on the signature pages hereof as a “Borrower” (Parent and such Affiliates are referred to hereinafter each individually as a “Borrower” and collectively, jointly and severally, as the “Borrowers”), and (iv) each of the Affiliates of Parent identified on the signature pages hereof as a “Guarantor”).
		

		
			RECITALS
		

		
			A.The Borrowers, the Guarantors, and the Bank are parties to that certain Credit and Security Agreement, dated as of June 10, 2015, as amended by that certain First Amendment to Credit and Security Agreement, dated as of July 10, 2015 (as the same may hereafter be further amended or modified from time to time, the “Credit Agreement”).
		

		
			B.The Guarantors are parties to that certain Guaranty, dated as of June 10, 2015 (as the same may hereafter be amended or modified from time to time, the “Guaranty Agreement”), pursuant to which the Guarantors guaranteed all of the Obligations of the Borrowers arising under the Credit Agreement.
		

		
			C.The Borrowers have requested that the Bank increase the Line of Credit and extend that maturity date, and the Bank is willing to amend the Credit Agreement subject to the terms and conditions of this Amendment.
		

		
			NOW, THEREFORE, in consideration of the premises herein contained, and for other good and valuable consideration (the receipt, sufficiency, and adequacy of which are hereby acknowledged), the parties hereto (intending to be legally bound) hereby agree as follows:
		

			
	
			
				 1.
			Definitions.  Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Credit Agreement.

			
	
			
				 2.
			Amendments to Credit Agreement.  Subject to the terms and conditions contained herein, Borrower and The Bank hereby amend the Credit Agreement as follows:

			
	
			
				 (a)
			The definition of “Line of Credit” contained in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety as follows:

		
			“Line of Credit” means a $20,000,000 revolving line of credit for general corporate purposes, repurchases of issued and outstanding capital stock of Parent, and other permitted purposes.
		

			
	
			
				 (b)
			The definition of “Line of Credit Note” contained in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety as follows:

		
			“Line of Credit Note” means the promissory note from the Borrowers to the Bank in the amount of $20,000,000, dated as of June 10, 2015, 

		 

		

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as the same may hereafter be amended or modified from time to time, including by that certain First Modification to Revolving Line of Credit Promissory Note, dated as of January 28, 2016.
		

			
	
			
				 (c)
			Section 2.2 of the Credit Agreement is hereby amended and restated in its entirety as follows:

		
			2.2Line of Credit.  The Line of Credit is a revolving line of credit pursuant to which the Borrowers may borrow, repay, and re-borrow, subject to the terms of this Agreement (including Exhibit B) and the other Loan Documents.  At no one time shall the outstanding principal balance of the Line of Credit exceed $20,000,000.
		

			
	
			
				 (d)
			Section 2.2(g) of the Credit Agreement is hereby amended and restated in its entirety as follows:

		
			(g)Payments.  On each Interest Payment Date (as defined in Exhibit B attached hereto), the Borrowers shall make a payment in the amount of the accrued interest on the outstanding principal balance of the Line of Credit.  The entire unpaid principal amount of the Line of Credit, together with accrued and unpaid interest thereon and all other amounts payable hereunder in connection with the Line of Credit, shall be due and payable in full on December 31, 2020.
		

			
	
			
				 (e)
			Section 1(n) of Exhibit B (Standard LIBOR Language) of the Credit Agreement is hereby amended and restated in its entirety as follows:

		
			n.“Maturity Date” means December 31, 2020, unless sooner accelerated pursuant to the terms hereof.
		

			
	
			
				 3.
			Conditions Precedent.  The amendments contained in Section 2 above are subject to, and contingent upon, the Bank receiving each of the following items, each in form and substance acceptable to the Bank, unless waived in writing by the Bank in its sole and absolute determination:

			
	
			
				 (a)
			A duly executed counterpart hereof signed by each Loan Party;

			
	
			
				 (b)
			A duly executed First Modification to Revolving Line of Credit Promissory Note signed by the Borrowers;

			
	
			
				 (c)
			certified copies of resolutions of each Loan Party authorizing or ratifying the execution, delivery, and performance by the Loan Parties of this Amendment and any other instrument, agreement, or document provided for herein to be executed by any Loan Party, together with a certification that there have been no changes to any Loan Party’s bylaws or certificates of incorporation or articles of incorporation, as applicable, since the date certified as of June 10, 2015, as applicable, and a certificate of incumbency; 

		 

		

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				 (d)
			receipt by the Bank of (x) an amendment fee in the amount of $20,000, which fee shall be non-refundable and deemed fully earned as of the date hereof and (y) the amount of the reasonable fees and out-of-pocket costs and expenses of counsel to the Bank in connection with this Amendment pursuant to Section 4 hereof and otherwise due and owing pursuant to the Credit Agreement;

			
	
			
				 (e)
			the favorable legal opinion of counsel to Loan Parties addressed to the Bank covering such matters as the Bank may reasonably require; and

			
	
			
				 (f)
			Such other documents, certificates, schedules, exhibits, instruments, and agreements as the Bank shall reasonably request.

			
	
			
				 4.
			Costs, Expenses and Taxes.  Without limiting the obligation of Borrower to reimburse the Bank for all reasonable costs, fees, disbursements, and expenses incurred by the Bank as specified in the Credit Agreement, as amended by this Amendment, each Borrower agrees to pay on demand all reasonable costs, fees, disbursements, and expenses of the Bank in connection with the preparation, execution, and delivery of this Amendment and the other agreements, modifications, reaffirmations, instruments, and documents contemplated hereby (collectively, the “Second Amendment Documents”), including, without limitation, reasonable attorneys’ fees and out-of-pocket expenses.

			
	
			
				 5.
			Reference to and Effect on Credit Agreement.  Except as expressly provided in this Amendment and the other Second Amendment Documents, the Credit Agreement and all of the other Loan Documents shall remain unmodified and continue in full force and effect and are hereby ratified and confirmed in all respects.  Except as expressly provided in this Amendment and the other Second Amendment Documents, the execution, delivery, and effectiveness of this Amendment shall not operate as a waiver of:  (a) any right, power, or remedy of the Bank under or pursuant to the Credit Agreement or any of the other Loan Documents, or (b) any Default or Event of Default under or pursuant to the Credit Agreement.  The Loan Parties and the Bank hereby expressly intend that this Amendment shall not in any manner (x) except as expressly provided in this Amendment, constitute the refinancing, refunding, payment, or extinguishment of the Obligations evidenced by the Credit Agreement and the Loan Documents, (y) be deemed to evidence a novation of the outstanding balance of the Obligations, or (z) replace, impair, or extinguish in any way the creation, attachment, perfection, or priority of the Liens in and on the Collateral granted in favor of the Bank pursuant to the Credit Agreement and the other Loan Documents.

			
	
			
				 6.
			Representations and Warranties.

			
	
			
				 (a)
			Each Loan Party represents and warrants to the Bank, which representations and warranties shall survive the execution and delivery of this Amendment, that on and as of the date hereof and after giving effect to this Amendment:  (i) such Loan Party has the corporate or limited liability company power and authority to execute and deliver this Amendment and the other Second Amendment Documents to which it is a party, and this Amendment and such other Second Amendment Documents have been duly authorized by all necessary corporate or limited liability company action of such Loan Party; (ii) this Amendment and such other Second Amendment Documents (and the Loan Documents as amended by the 

		 

		

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	Second Amendment Documents) are the legal, valid, and binding obligations of such Loan Party and are enforceable against such Loan Party in accordance with their terms, subject to bankruptcy, insolvency, reorganization, moratorium, or other similar laws affecting the enforcement of creditor’s rights and remedies generally and to general principles of equity; (iii) the representations and warranties of such Loan Party set forth in the Credit Agreement and in the other Loan Documents to which it is a party are true, correct, and complete in all material respects (without duplication of any materiality or Material Adverse Effect qualifier, if and as applicable) on and as of the date hereof; (except to the extent made as of a certain date, in which case they are true, correct and complete in all material respects as of such date); and (iv) no Default or Event of Default has occurred and is continuing.

			
	
			
				 (b)
			Each Loan Party acknowledges and agrees that the Bank is specifically relying upon the representations, warranties, and agreements contained in this Amendment and that such representations, warranties, and agreements constitute a material inducement to the Bank in entering into this Amendment.

			
	
			
				 7.
			Reaffirmation of Security.  Each Loan Party ratifies and reaffirms each of the grants of Liens to the Bank in and on the Collateral as security for the Obligations, and each Loan Party acknowledges and confirms that the grants of the Liens to the Bank on the Collateral:  (i) represent continuing Liens in and on all of the Collateral; (ii) secure in favor of the Bank all of the Obligations; and (iii) represent valid and first priority perfected Liens in and on all of the Collateral except solely to the extent of Permitted Liens (if any).  Each Loan Party acknowledges and agrees that pursuant to the Credit Agreement and the Loan Documents, the Bank holds first priority, perfected security interests in, and Liens upon all of the Collateral of each Borrower and each Guarantor wherever located, now owned or hereafter acquired or arising (subject solely to Permitted Liens, if any).

			
	
			
				 8.
			Reaffirmation of Guaranty.  Each Guarantor hereby (a) confirms and agrees with the Bank that the Guaranty Agreement remains in full force and effect and is hereby ratified and confirmed in all respects, including with regard to the Credit Agreement as amended by this Amendment, and all of each Borrower’s Obligations and the obligations of the Guarantors under and pursuant to the Guaranty Agreement, each as modified by this Amendment, are and shall be valid and enforceable and shall not be impaired or limited in any way by the execution, delivery, or effectiveness of this Amendment, (b) represents and warrants to the Bank, which representations and warranties shall survive the execution and delivery hereof, that such Guarantor’s representations and warranties contained in the Guaranty are true and correct in all material respects (without duplication of any materiality or Material Adverse Effect qualifier, if and as applicable) as of the date hereof, with the same effect as though made on the date hereof (except to the extent made as of a certain date, in which case they are true and correct in all material respects as of such date), (c) agrees and acknowledges that such ratification and confirmation is not a condition to the continued effectiveness of this Amendment or the Guaranty Agreement, and (d) agrees that neither such ratification and confirmation, nor the solicitation of such ratification and confirmation by the Bank constitutes a course of dealing giving rise to any obligation or condition requiring a similar or any other ratification or confirmation from the undersigned with respect to subsequent amendments or modifications, if any, to the Credit Agreement, as amended by this Amendment or any other Loan Document.  The execution, 

		 

		

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	delivery, and effectiveness of this instrument shall not operate as a waiver of any right, power, or remedy of Lender under the Guaranty Agreement.

			
	
			
				 9.
			Release.  In further consideration of the Bank’s execution of this Amendment, to the furthest extent permitted by applicable law, each Loan Party (on behalf of itself and its members, managers, officers, affiliates, agents, successors and assigns) hereby forever irrevocably and unconditionally:  (a) waives any defense, right of set-off or claim against the Bank and its successors, assigns, affiliates, officers, employees, directors, shareholders, agents and attorneys (collectively, the “Released Parties”) as of the date hereof with respect to the Credit Agreement and the Loan Documents; and (b) remises, releases, acquits, satisfies, and discharges the Bank and the Released Parties from any and all claims, demands, obligations, disputes, damages, suits, controversies, penalties, fees, losses, costs, expenses, reasonable attorneys’ fees, actions and causes of action (whether at law or in equity) and obligations of every nature whatsoever, whether liquidated or unliquidated, known or unknown, matured or unmatured, fixed or contingent, that such Loan Party ever had, now has, or may have against or seek from the Bank or any or all of the Released Parties arising from, relating to or in connection with any actions, omissions, conditions, events, or any other circumstances whatsoever on or prior to the date hereof, including, without limitation, with respect to the Obligations, any Collateral, the Credit Agreement, the transactions relating thereto, and any Loan Documents, other than for the Bank’s gross negligence or willful misconduct as finally determined in a non-appealable order of a court of competent jurisdiction.  Each Loan Party understands, acknowledges, and agrees that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit, or other proceeding which may be instituted, prosecuted, or attempted in breach of the provisions of such release.  To the furthest extent permitted by law, each Loan Party hereby knowingly, voluntarily, intentionally, and expressly waives and relinquishes any and all rights and benefits that it respectively may have as against Released Parties under any law, rule, or regulation of any jurisdiction that would or could have the effect of limiting the extent to which a general release extends to claims which a Loan Party or Released Party does not know or suspect to exist as of the date hereof.  Each Loan Party hereby acknowledges that the waiver set forth in the prior sentence was separately bargained for and that such waiver is an essential term and condition of this Amendment.

			
	
			
				 10.
			No Waiver.  The term “Loan Documents” as defined in Section 1.1 of the Credit Agreement shall include (in addition to the Loan Documents described in the Credit Agreement) this Amendment and the other Second Amendment Documents (as defined herein).  The Bank’s failure, at any time or times hereafter, to require strict performance by any Loan Party of any provision or term of the Credit Agreement, this Amendment, or the other Loan Documents shall not waive, affect, or diminish any right of the Bank thereafter to demand strict compliance and performance therewith.  Any suspension or waiver by the Bank of a breach of this Amendment or any Event of Default under the Credit Agreement shall not suspend, waive, or affect any other breach of this Amendment or any other Event of Default under the Credit Agreement, whether the same is prior or subsequent thereto and whether of the same or of a different kind or character.  The Bank’s execution and delivery of this Amendment does not establish a course of dealing between the Bank and the Loan Parties, or any other obligor or in any other way obligate the Bank to hereafter provide any waiver, modification, or amendment with respect to the Credit Agreement or any other Loan Document.  The terms and provisions of this Amendment shall be 

		 

		

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	limited precisely as written and shall not be deemed:  (a) to be a consent to a modification, amendment, or waiver of any other term or condition of the Credit Agreement or of any other Loan Documents; or (b) to prejudice any right or remedy that the Bank may now have under or in connection with the Credit Agreement or any of the other Loan Documents.

			
	
			
				 11.
			Miscellaneous.  Titles and headings herein are solely for the convenience of the parties and are without substantive legal meaning.  This Amendment may only be amended or modified by a writing signed by the Bank and the Loan Parties.  Neither this Amendment nor any uncertainty or ambiguity herein shall be construed or resolved against the Bank, whether under any rule of construction or otherwise.  This Amendment and the other Second Amendment Documents, together with the Credit Agreement and the other Loan Documents, sets forth the entire agreement of the parties with respect to the subject matter hereof and thereof and supersedes all previous understandings, written or oral, in respect of this Amendment and such other Second Amendment Documents.  The Loan Parties shall, at their own cost and expense, cause to be promptly and duly taken, executed, acknowledged, and delivered all such further acts, certificates, instruments, reaffirmations, amendments, documents, and assurances as may from time to time be necessary or as the Bank may from time to time reasonably request in order to more fully carry out the intent and purposes of this Amendment and the other Second Amendment Documents.

			
	
			
				 12.
			Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns; provided,  however, no Loan Party may assign any of its rights or obligations under this Amendment without the prior written consent of the Bank.

			
	
			
				 13.
			Severability.  Wherever possible, each provision of this Amendment shall be interpreted in such a manner so as to be effective and valid under applicable law, but if any provision of this Amendment is held to be prohibited by or invalid under applicable law, such provision or provisions shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of this Amendment.

			
	
			
				 14.
			Counterparts; Facsimile.  This Amendment may be executed in one or more counterparts, each of which when taken together shall constitute one and the same instrument.  A signature hereto sent or delivered by facsimile or other electronic transmission shall be as legally binding and enforceable as a signed original for all purposes.

			
	
			
				 15.
			Governing Law.  This Amendment shall be governed as to its validity, interpretation, and effect by the laws of the State of Delaware without regard to the conflicts of laws provisions contained therein.

			
	
			
				 16.
			JURY TRIAL.  EACH OF THE PARTIES HERETO HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVES ANY RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AMENDMENT OR THE Line of Credit NOTE OR THE LOAN DOCUMENTS OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN), OR ACTIONS OF THE BANK.  THIS PROVISION IS A 

		 

		

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	MATERIAL INDUCEMENT FOR THE BANK’S ENTERING INTO THIS AMENDMENT.

		
			[Signature Pages Follow]
		

		
			 
		

		
			

		 

		

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IN WITNESS WHEREOF, the undersigned, by their duly authorized officers or members, have signed, sealed, and delivered this Amendment the day and year first above written.
		

			
					
						

____________________________
Name:
(Assistant) Secretary

					
						
Name:
(Assistant) Secretary

					
						 

					
					
						
a Delaware corporation, as Parent

By: ____________________________(SEAL)
       Name:
       Title:

					
						
       Name:
       Title:  

					
						 

				
	
					
						 

					
						ATTEST:

____________________________
Name:
(Assistant) Secretary

					
						____________________________
Name:
(Assistant) Secretary

					
					
						 

					
						PLANET PAYMENT, INC.,
a Delaware corporation, as Parent

By: ____________________________(SEAL)
       Name:
       Title:

					
						By: ____________________________(SEAL)
       Name:
       Title:  

				
	
					
						ATTEST:

					
						____________________________
Name:
(Assistant) Secretary

					
						____________________________
Name:
(Assistant) Secretary

					
					
						PLANET PAYMENT PROCESSING SERVICES, INC.,
a Delaware corporation, as a Borrower

By: ____________________________(SEAL)
       Name:
       Title:

					
						By: ____________________________(SEAL)
       Name:
       Title:  

				

		
			 
		

		
			
		

		
			

		 

		

			{SIGNATURE PAGE TO Second AMENDMENT TO CREDIT AND SECURITY AGREEMENT}

		

		

			 

		

 

 
		

			
					
						ATTEST:

____________________________
Name:
(Assistant) Secretary

					
						____________________________
Name:
(Assistant) Secretary

					
					
						PLANET GROUP, INC.,
a Delaware corporation, as a Borrower

By: ____________________________(SEAL)
       Name:
       Title:

					
						By: ____________________________(SEAL)
       Name:
       Title:  

				

		
			 
		

		
			

		 

		

			{SIGNATURE PAGE TO Second AMENDMENT TO CREDIT AND SECURITY AGREEMENT}

		

		

			 

		

 

		

			 

		

 
		

			
					
						ATTEST:

					
						____________________________
Name:
(Assistant) Secretary

					
						____________________________
Name:
(Assistant) Secretary

					
					
						PLANET technology services, LLC,
a Delaware limited liability company, as a Guarantor

By: ____________________________(SEAL)
       Name:
       Title:

					
						By: ____________________________(SEAL)
       Name:
       Title:  

				
	
					
						ATTEST:

					
						____________________________
Name:
(Assistant) Secretary

					
						____________________________
Name:
(Assistant) Secretary

					
					
						PLANET PAYMENT SOLUTIONS, LLC,
a Delaware limited liability company, as a Guarantor

By: ____________________________(SEAL)
       Name:
       Title:

					
						By: ____________________________(SEAL)
       Name:
       Title:  

				

		
			 
		

		
			 
		

		
			

		 

		

			{SIGNATURE PAGE TO Second AMENDMENT TO CREDIT AND SECURITY AGREEMENT}

		

		

			 

		

 

		

			 

		

 
		

			
					
						WITNESS:

					
						_____________________________

					
					
						CITIZENS BANK, N.A. 

By__________________________(SEAL)
      Benjamin B. Rogers

					
						      Vice President

				

		
			 
		

		 

		

			{SIGNATURE PAGE TO Second AMENDMENT TO CREDIT AND SECURITY AGREEMENT}plpm_EX_10-27

		
			Exhibit 10.27
		

		
			 
		

		
			Employment Agreement
		

		
			 
		

		
			This Employment Agreement (this “Agreement”) is made and entered into as of February 2, 2016 by and between Planet Payment, Inc., a Delaware corporation (the “Company”), and Carl J. Williams (“Executive”).  Capitalized terms not otherwise defined shall have the meanings ascribed thereto in Section 6 hereof.
		

		
			 
		

		
			Recitals:
		

		
			 
		

		
			WHEREAS,  Executive is the Chief Executive Officer of the Company who possesses valuable proprietary knowledge of the Company, its business and operations and the markets and industry in which the Company competes; and
		

		
			 
		

		
			WHEREAS,  the Company and Executive desire to enter into this Agreement to encourage Executive to continue to devote Executive’s full attention and dedication to the success of the Company, and to provide specified compensation and benefits to Executive in the event of certain terminations of Executive’s employment with the Company pursuant to the terms of this Agreement.
		

		
			 
		

		
			NOW THEREFORE,  the parties hereby agree as follows:
		

		
			 
		

			
	
			
				 1.
			

			
	
			
			 Purpose and Term.

		
			 
		

		
			The purpose of this Agreement is to provide specified compensation and benefits to Executive in the event of certain terminations of Executive’s employment with the Company.  Either Executive or the Company may terminate Executive’s employment at any time for any reason with or without notice.  The term of this Agreement shall be the period from the date set forth above until May 1, 2017 and shall automatically be renewed for successive one-year periods thereafter unless written notice of non-renewal is provided by either party hereto no less than thirty (30) days prior to the date this Agreement would otherwise renew.
		

		
			 
		

			
	
			
				 2.
			

			
	
			
			 Compensation.

		
			 
		

		
			Executive’s current Base Salary of $300,000 per annum shall remain in place, but shall be subject to periodic review and modification by the Company’s Compensation Committee (the “Compensation Committee”) at such time or times as it shall determine.  Further, Executive may be entitled to cash bonuses, at such times and in such amounts as may be determined by the Compensation Committee.  The Compensation Committee may also from time to time, in its discretion, determine the type and amount of other 

		 

		

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forms of compensation for Executive’s service with the Company (including, without limitation, stock options or other forms of equity awards).
		

		
			 
		

		
			 
		

			
	
			
				 3.
			

			
	
			
			Termination of Employment Generally.

		
			 
		

		
			3.1General.  In the event Executive’s employment with the Company terminates for any reason, Executive shall be entitled to the benefits described in this Section 3.
		

		
			 
		

		
			3.2.Accrued Salary and Vacation.  All Base Salary and accrued vacation earned through the Termination Date shall be paid to Executive on such date.
		

		
			 
		

		
			3.3.Bonus.  The determination of any bonus upon termination of Executive’s employment with the Company for any reason shall be within the sole discretion of the Compensation Committee.
		

		
			 
		

		
			3.4.Expense Reimbursement.  Within ten (10) days following submission to the Company of proper expense reports and supporting documentation by Executive, the Company shall reimburse Executive for all reasonable business expenses incurred by Executive, consistent with the Company’s expense reimbursement policy in effect prior to the incurring of each such expense.  Without limiting the generality of the foregoing, the Company shall reimburse Executive for reasonable travel and lodging expenses incurred by Executive when traveling to and from the Company’s principal executive offices.
		

		
			 
		

		
			3.5.Equity Compensation.  The terms and conditions under any outstanding stock options and shares of restricted stock (or any other equity award, including without limitation, stock appreciation rights and restricted stock units) granted to Executive under any equity incentive plan or agreement of the Company (the “Company Plans”), including without limitation the exercise period thereof, shall, except as provided in Section 4 hereof, remain unchanged and in full force and effect as set forth thereunder; provided, that in the event of termination of the employment of Executive:  (1) as a result of the Permanent Disability of Executive; or (2) as a result of the death of Executive, the exercise period of any of Executive’s outstanding and then vested stock options shall be extended so as to expire on the shorter of (x) three (3) years, or (y) the remaining term applicable to such stock option, both (x) and (y) as measured from the Termination Date.
		

		
			 
		

			
	
			
				 4.
			

			
	
			
			Involuntary Termination; Change of Control.

		
			 
		

		
			4.1.Severance Payment – Involuntary Termination.  In the event of Executive’s Involuntary Termination prior to a Change of Control,  and subject to Executive signing a separation agreement containing, among other provisions, a general 

		 

		

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release of claims in favor of the Company and related persons and entities, confidentiality, return of property and non-disparagement, in a form and manner reasonably satisfactory to the Company (the “Release”), and such Release becoming irrevocable, all within 60 days after the Termination Date,  Executive shall be entitled to receive an amount equal to twelve (12) months of Executive’s Base Salary then in effect as salary continuation, which shall be paid in accordance with the normal payroll practices of the Company (and in each case no interest shall accrue on such amount) for the 12-month period following the Termination Date.    Such payments shall commence within 60 days after the Termination Date;  provided, however, that if the 60-day period begins in one calendar year and ends in a second calendar year, such amount shall begin to be paid in the second calendar year by the last day of such 60-day period; provided, further, that the initial payment shall include a catch-up payment to cover amounts retroactive to the day immediately following the Termination Date.
		

		
			 
		

		
			4.2Change of Control Payment.  In the event of a Change of Control,  and subject to Executive signing a Release, and such Release becoming irrevocable, all within 60 days after the Change of Control, Executive shall be entitled to receive an amount equal to six (6) months of Executive’s Base Salary then in effect as salary continuation, which shall be paid in accordance with the normal payroll practices of the Company (and in each case no interest shall accrue on such amount) for the six-month period following the Change of Control.    Such payments shall commence within 60 days after the Termination Date;  provided, however, that if the 60-day period begins in one calendar year and ends in a second calendar year, such amount shall begin to be paid in the second calendar year by the last day of such 60-day period; provided, further, that the initial payment shall include a catch-up payment to cover amounts retroactive to the day immediately following the Termination Date.
		

		
			 
		

		
			4.3.Equity Compensation Treatment.  Upon Executive’s Involuntary Termination at any time, and notwithstanding anything to the contrary contained in any award agreement or Company Plan in respect thereof:
		

		
			 
		

			
	
			
				 A.
			

			
	
			
			The exercisability of all then outstanding and vested stock options granted to Executive shall be extended so as to expire on the shorter of (i) one (1) year, or (ii) the remaining term applicable to such stock option, both (i) and (ii) as measured from the Termination Date; and

		
			 
		

			
	
			
				 B.
			

			
	
			
			All then unvested shares of restricted stock granted to Executive shall remain valid and subject to vesting in accordance with the terms and conditions set forth in the individual restricted stock grant awards for a period of 30 months from the date of this Agreement.

		
			 
		

		
			

		 

		

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4.4.COBRA.  Upon an Involuntary Termination, if  Executive timely elects coverage under the Consolidated Budget Reconciliation Act of 1985, as amended (“COBRA”), the Company shall continue to provide to Executive, at the Company’s expense, the Company’s health-related employee insurance coverage as in effect immediately prior to Executive’s Involuntary Termination for a period equal to the shorter of twelve (12) months following such Involuntary Termination, or such time as Executive is employed and eligible for health insurance coverage comparable to that of the Company.  The date of the “qualifying event” for Executive and any dependents shall be the Termination Date.
		

		
			 
		

			
	
			
				 5.
			

			
	
			
			Federal Excise Tax Under Section 280G.

		
			 
		

		
			5.1Excise Tax.  If (a) any amounts payable to Executive under this Agreement or otherwise are characterized as excess parachute payments pursuant to Sections 280G and/or 4999 of the Code, and (b) Executive thereby would be subject to any United States federal excise tax due to that characterization, then if Executive would thereby be in a better after-tax position, the Company may elect, in the Company’s sole discretion, to reduce the amounts payable under this Agreement  or otherwise, or to have any portion of applicable options or restricted stock not vest or become exercisable, in order to avoid any “excess parachute payment” under Section 280G(b)(1) of the Code.    In such event, such amounts shall be reduced in the following order:  (1) cash payments not subject to Section 409A of the Code; (2) cash payments subject to Section 409A of the Code; (3) equity-based payments and acceleration; and (4) non-cash forms of benefits; provided that in the case of all the foregoing payments, all amounts or payments that are not subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c) shall be reduced before any amounts that are subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c). To the extent any payment is to be made over time (e.g., in installments, etc.), then the payments shall be reduced in reverse chronological order.
		

		
			 
		

		
			5.2Calculation by Independent Public Accountants.  Unless the Company and Executive otherwise agree in writing, any calculation of the amount of any excess parachute payments payable to Executive shall be made in writing by the Company’s independent public accountants (the “Accountants”) whose conclusion shall be final and binding on the parties hereto.  For purposes of making such calculations, the Accountants may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code.  The Company and Executive shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make the required calculations.  The Company shall bear all fees and expenses the Accountants may charge in connection with these services, but the engagement of 

		 

		

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the Accountants for this purpose shall be pursuant to an agreement between Executive and the Accountants.
		

		
			 
		

			
	
			
				 6.
			

			
	
			
			Definitions.

		
			 
		

		
			6.1Capitalized Terms Defined.  Capitalized terms used in this Agreement shall have the meanings set forth in this Section 6, unless the context clearly requires a different meaning.
		

		
			 
		

		
			6.2.“Base Salary” means the base salary of Executive in effect immediately prior to the Termination Date as paid in accordance with the Company’s normal payroll practices.
		

		
			 
		

		
			6.3.“Cause” means:
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			Executive willfully failed to follow the lawful directions of the Board of Directors of the Company; provided, that no termination for such Cause shall occur unless Executive:  (i) has been provided with written notice, specifying such willful failure in reasonable detail, of the Company’s intention to terminate Executive for Cause; and (ii) has failed to cure or correct such willful failure within thirty (30) days of receiving such notice, unless such failure is not of the type that would ordinarily be curable, in which case, no such notice shall be required.

			
	
			
				 (b)
			

			
	
			
			Executive engaged in gross misconduct which is materially detrimental to the Company; provided, that no termination for such Cause shall occur unless Executive has been provided with notice, specifying such gross misconduct in reasonable detail, and of the Company’s intention to terminate Executive for Cause.

			
	
			
				 (c)
			

			
	
			
			Executive willfully or knowingly failed to comply in any material respect with the Company’s Confidentiality, Non-Disclosure and Invention Assignment Agreement; Acceptable Use Policy; Information Security Policy and Procedures; Non-Competition Agreement; or any other reasonable policies of the Company as may be determined by the Company or the Board of Directors.

			
	
			
				 (d)
			

			
	
			
			Executive is convicted of a felony or crime involving moral turpitude (excluding drunk driving unless combined with other aggravating circumstances or offenses) or commission of a fraud or other similar misconduct.

		
			 
		

		
			6.4“Change of Control” means:
		

		
			

		 

		

			5

		

		

			 

		

 

 
		

			
	
			
				 (a)
			

			
	
			
			Any ‘person’ as such term is defined in the Securities Exchange Act of 1934, as amended (the “Exchange Act”), becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or greater of either the (i) outstanding shares of common stock of the Company, or (ii) combined voting power of the Company’s outstanding securities;

		
			 
		

			
	
			
				 (b)
			

			
	
			
			The Company is party to a merger, acquisition, consolidation, or series of related transactions, which results in the voting securities of the Company outstanding immediately prior thereto failing to continue to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity), directly or indirectly, at least fifty percent (50%) of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such transaction; or

		
			 
		

			
	
			
				 (c)
			

			
	
			
			The sale or disposition of all or substantially all of the Company’s assets.

		
			 
		

		
			;  provided, in each case, that such event also constitutes a “change in control event” within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(i).
		

		
			In each instance set forth above, a Change of Control shall be deemed to occur upon the closing of the specified transaction or event, as applicable.
		

		
			 
		

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

		
			 
		

		
			6.6“Company” shall mean Planet Payment, Inc. and if applicable, any subsidiary thereof.
		

		
			 
		

		
			6.7“Good Reason” means a material diminution of Executive’s position, duties, responsibilities or Base Salary, unless, in the case of Base Salary, such reduction is part of a Company-wide or executive team-wide cost-cutting or cutback measure as a result of overall Company performance.
		

		
			 
		

		
			Executive must first give the Company written notice within thirty (30) days of the occurrence of the event giving rise to Executive’s belief that Executive is entitled to terminate employment for Good Reason (“Good Reason Notice”).  The Company shall have thirty (30) days after receipt of the Good Reason Notice to cure (“Cure Period”).  Should the Company fail to so cure within the Cure Period, Executive may then terminate his employment for Good Reason within fifteen (15) days after the expiration of the Cure Period.
		

		
			 
		

		
			6.8“Involuntary Termination” means:
		

		
			 
		

		 

		

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				 (a)
			

			
	
			
			 any termination by the Company of the employment of Executive without Cause; or

			
	
			
				 (b)
			

			
	
			
			Any resignation by Executive for Good Reason.

		
			 
		

		
			Notwithstanding the foregoing, the term “Involuntary Termination” shall not include any termination of the employment of Executive:  (1) by the Company for Cause; (2) by the Company as a result of the Permanent Disability of Executive; (3) as a result of the death of Executive; (4) as a result of the voluntary termination of employment by Executive for any reason other than Good Reason; or (5) as a result of a Change of Control.
		

		
			 
		

		
			6.9“Permanent Disability” means that Executive has been incapacitated by physical or mental injury, illness or disease so as to be  prevented thereby from materially engaging in the performance of Executive’s duties without reasonable accommodation.

		

		
			 
		

		
			6.10.“Termination Date” means the date of the termination of Executive’s employment with the Company.
		

		
			
		

			
	
			
				 7.
			

			
	
			
			Exclusive Remedy.

		
			 
		

		
			7.1No Other Benefits Payable.  Executive shall be entitled to no other termination severance compensation, benefits, or other payments from the Company except as expressly set forth in this Agreement.
		

		
			 
		

		
			7.2No Limitation of Regular Benefit Plans.  Except as may be provided elsewhere in this Agreement, this Agreement is not intended to and shall not affect, limit or terminate any plans, programs or arrangements of the Company that are regularly made available to a significant number of employees or officers of the Company, including, without limitation, the Company Plans.
		

		
			 
		

		
			7.3Release and Separation Agreement.  The payment of the benefits described herein is conditioned upon the delivery by Executive to the Company of a signed and effective general release and separation agreement in the form provided by the Company.
		

		
			 
		

		
			7.4Non-Cumulative Benefits.  Executive may not cumulate cash severance payments, stock option vesting and exercisability and restricted stock vesting under this Agreement, any other written agreement with the Company and/or another plan or policy of the Company.  If Executive has any other binding written agreement with the Company which provides that, upon an Involuntary Termination, Executive shall receive termination, severance or similar benefits, 

		 

		

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then no benefits shall be received by Executive under this Agreement unless, prior to payment or receipt of benefits under this Agreement, Executive waives Executive’s right to all such other benefits, in which case this Agreement shall supersede any such written agreement with respect to such other benefits.
		

		
			 
		

			
	
			
				 8.
			

			
	
			
			Non-Compete; Proprietary and Confidential Information.

		
			During the term of this Agreement and following any termination of employment, Executive agrees to continue to abide by the terms and conditions of each of the Non-Competition Agreement (during the term of such Agreement) and the Confidentiality, Non-Disclosure and Invention Assignment Agreement between Executive and the Company.

		

			
	
			
				 9.
			

			
	
			
			Non-Solicitation.

		
			For a period of twelve (12) months after termination of Executive’s employment for any reason,  Executive will not solicit the services or business of any employee or consultant of the Company, which, if accepted, would result in the discontinuance of that person’s or entity’s relationship with or to the Company, without the prior written consent of the Company.

		

			
	
			
				 10.
			

			
	
			
			Arbitration.

		
			 
		

		
			10.1.Disputes Subject to Arbitration.  Any claim, dispute or controversy arising out of this Agreement (other than claims relating to misuse or misappropriation of the intellectual property of the Company), the interpretation, validity or enforceability of this Agreement or the alleged breach thereof shall be submitted by the parties to binding arbitration by a sole arbitrator under the rules of the American Arbitration Association; provided, however, that (a) the arbitrator shall have no authority to make any ruling or judgment that would confer any rights with respect to the trade secrets, confidential and proprietary information or other intellectual property of the Company upon Executive or any third party; and (b) this arbitration provision shall not preclude the Company from seeking legal and equitable relief from any court having jurisdiction with respect to any disputes or claims relating to or arising out of the misuse or misappropriation of the company’s intellectual property.  Judgment may be entered on the award of the arbitrator in any court having jurisdiction.
		

		
			 
		

		
			10.2. Costs of Arbitration.  All costs of arbitration shall be borne equally between the Company and Executive.  Each party shall be responsible for its own legal fees.  
		

		
			 
		

		
			10.3.Site of Arbitration.  The site of the arbitration proceeding shall be in New York City, New York.
		

		
			

		 

		

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				 11.
			

			
	
			
			 Notices.

		
			All notices and other communications required by or provided for in this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered, one (1) business day after being placed with an overnight courier, or five (5) business days after being mailed, return receipt requested, as follows:  (a) if to the Company, Attention:  David R. Fishkin, Vice President and Corporate Counsel, at the Company’s offices at 670 Long Beach Boulevard, Long Beach, New York 11561 and (b) if to Executive, at the address indicated on the signature page hereto, or such other address specified by either party in writing to the other party.
		

		
			 
		

			
	
			
				 12.
			

			
	
			
			 Miscellaneous Provisions.

		
			 
		

		
			12.1.  Heirs and Representatives of Executive; Successors and Assigns of the Company.  This Agreement shall be binding upon and shall insure to the benefit of and be enforceable by Executive’s personal and legal representatives, executors, administrators, successors, heirs, distributees, devices and legatees.  This Agreement shall be binding upon and insure to the benefit of and be enforceable by the successors and assigns of the Company.
		

		
			 
		

		
			12.2.  Amendment and Waiver.  No provision of this Agreement shall be modified, amended, waived or discharged unless the modification, amendment, waiver or discharge, is agreed to in writing, specifying such modification, amendment, waiver or discharge, and signed by Executive and by an authorized officer of the Company (other than Executive).  No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time. 
		

		
			 
		

		
			12.3.  Withholding Taxes.  All payments made under this Agreement shall be subject to reduction to reflect all federal, state, local and other taxes required to be withheld by applicable law.
		

		
			 
		

		
			12.4.  Severability.  The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect.
		

		
			 
		

		
			12.5.  Choice of Law; Jurisdiction.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of New York, without regard to principals of conflicts or choice or laws thereof.  Subject to the provisions of Section 10 hereof, any disputes or claims arising out of, or 

		 

		

			9

		

		

			 

		

 

relating to this Agreement, shall be heard before a court of competent jurisdiction located in Nassau County, New York.
		

		
			 
		

		
			12.6.  No Duty to Mitigate.  Executive is not required to seek alternative employment following termination, and payments called for under this Agreement will not be reduced by earnings from any other source.
		

		
			 
		

		
			12.7.  Section 409A of the Code.   (a)Anything in this Agreement to the contrary notwithstanding, if at the time of Executive’s separation from service within the meaning of Section 409A of the Code, the Company determines that Executive is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit that Executive becomes entitled to under this Agreement on account of Executive’s separation from service would be considered deferred compensation otherwise subject to the 20 percent additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, such payment shall not be payable and such benefit shall not be provided until the date that is the earlier of (A) six months and one day after Executive’s separation from service, or (B) Executive’s death.  If any such delayed cash payment is otherwise payable on an installment basis, the first payment shall include a catch-up payment covering amounts that would otherwise have been paid during the six-month period but for the application of this provision, and the balance of the installments shall be payable in accordance with their original schedule.  
		

		
			(b)All in-kind benefits provided and expenses eligible for reimbursement under this Agreement shall be provided by the Company or incurred by Executive during the time periods set forth in this Agreement.  All reimbursements shall be paid as soon as administratively practicable, but in no event shall any reimbursement be paid after the last day of the taxable year following the taxable year in which the expense was incurred.  The amount of in-kind benefits provided or reimbursable expenses incurred in one taxable year shall not affect the in-kind benefits to be provided or the expenses eligible for reimbursement in any other taxable year (except for any lifetime or other aggregate limitation applicable to medical expenses).  Such right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.
		

		
			(c)To the extent that any payment or benefit described in this Agreement constitutes “non-qualified deferred compensation” under Section 409A of the Code, and to the extent that such payment or benefit is payable upon Executive’s termination of employment, then such payments or benefits shall be payable only upon Executive’s “separation from service.”  The determination of whether and when a separation from service has occurred shall be made in accordance with the presumptions set forth in Treasury Regulation Section 1.409A‐1(h).
		

		
			(d)The parties intend that this Agreement will be administered in accordance with Section 409A of the Code.  To the extent that any provision of this 

		 

		

			10

		

		

			 

		

 

Agreement is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in such a manner so that all payments hereunder comply with Section 409A of the Code.  Each payment pursuant to this Agreement is intended to constitute a separate payment for purposes of Treasury Regulation Section 1.409A‐2(b)(2).  The parties agree that this Agreement may be amended, as reasonably requested by either party, and as may be necessary to fully comply with Section 409A of the Code and all related rules and regulations in order to preserve the payments and benefits provided hereunder without additional cost to either party.
		

		
			(e)The Company makes no representation or warranty and shall have no liability to Executive or any other person if any provisions of this Agreement are determined to constitute deferred compensation subject to Section 409A of the Code but do not satisfy an exemption from, or the conditions of, such Section.
		

		
			12.8. Entire Agreement.  This Agreement represents the entire agreement and understanding between the parties as to the subject matter herein (whether oral or written and whether express or implied).
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			[Signature Page Follows]

		

		
			 
		

		
			 
		

		
			 
		

		
			
		

		
			

		 

		

			11

		

		

			 

		

 

IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company, by its duly authorized officer, as of the day and year first above written.
		

		
			 
		

		
			 
		

		
			 
		

		
			_________________________________
		

		
			Carl J. Williams
		

		
			Address:
		

		
			6000 Collins Avenue, #506
		

		
			Miami Beach, FL 33140
		

		
			 
		

		
			 
		

		
			PLANET PAYMENT, INC.
		

		
			 
		

		
			 
		

		
			 
		

		
			_________________________________
		

		
			Name:David R. Fishkin
		

		
			Title:Vice President and Corporate Counsel
		

		 

		

			12

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