Document:

Exhibit 10.3

 

CardConnect Corp.

 

Non-Qualified Stock Option Agreement

 

Inducement Award

 

This Non-Qualified Stock Option Agreement (this “Agreement”)
is made and entered into as of April 3, 2017 by and between CardConnect Corp., a Delaware corporation (the “Company”),
and Michael J. Mertz (the “Participant”).

 

This Agreement is granted as an inducement award under
the Nasdaq Marketplace Rules (the “Nasdaq Rules”). Accordingly, the Agreement has been granted outside of the
Company’s Amended and Restated 2016 Omnibus Equity Compensation Plan as may be amended from time to time (the “Plan”).
However, the Agreement will be governed in all respects as if issued under the Plan, as currently in effect and as may be amended
hereafter from time to time (the provisions of which are incorporated herein by reference), as well as the following specific provisions:

 

Grant Date:         April 3, 2017         

 

Exercise Price per Share:           $13.10          

 

Number of Option Shares:           400,000          

 

Expiration Date:           April
3, 2027           (NTD: 10 years from Grant Date)

 

		1.	Grant
                                         of Option.

 

		(a)	Grant;
                                         Type of Option. The Company hereby grants to the Participant a non-qualified
                                         stock option (the “Option”) to purchase the total number of shares
                                         of Common Stock of the Company equal to the number of Option Shares set forth above,
                                         at the Exercise Price set forth above. This option is a non-statutory stock option under
                                         the Code. The Option is being granted as an inducement award under the Nasdaq Rules,
                                         however, the Option is governed in all respects as if issued under the Plan. In the event
                                         of a conflict between any term or provision contained herein and a term or provision
                                         of the Plan, the term or provision of the Plan shall prevail.

 

		(b)	Consideration.
                                         The grant of the Option is made in consideration of the services to be rendered by the
                                         Participant to the Company. Capitalized terms used but not defined herein will have the
                                         meaning ascribed to them in the Plan.

 

     

     

    

 

		2.	Exercise
                                         Period; Vesting.

 

		(a)	Vesting
                                         Schedule. The Option will become vested and exercisable with respect to 25%
                                         of the shares on first anniversary of the Grant Date and thereafter shall vest with respect
                                         to an additional 25% on an annual basis through the fourth anniversary of the Grant Date
                                         until the Option is 100% vested; provided, however, that the Option shall become fully
                                         vested and exercisable (A) if the Participant’s employment is terminated by Parent
                                         without Cause or by Participant with Good Reason or (B) upon a “change of control”
                                         (as such term is defined in the Plan). “Cause” and “Good Reason”
                                         shall each be defined as set forth in the Participant’s Employment Agreement, dated
                                         April 3, 2017, as the same may be amended from time to time (the “Employment
                                         Agreement”). Any unvested portion of the Option will not be exercisable on
                                         or after the date on which the Participant ceases to be employed by the Company or any
                                         of its subsidiaries.

 

		(b)	Expiration.
                                         The Option will expire on the Expiration Date set forth above, or earlier as provided
                                         in this Agreement or the Plan.

 

		3.	Termination
of Employment.

 

		(a)	Termination
for Reasons Other Than Cause, Death, Disability. If the Participant's employment is terminated without Cause or by Participant
with Good Reason (each as defined in the Employment Agreement, the Participant may exercise the Option only within such period
of time ending on the earlier of: (a) the date three months following the termination of the Participant's employment or (b) the
Expiration Date.

 

		(b)	Termination
for Cause. If the Participant's employment is terminated for Cause, the Option (whether vested or unvested) shall immediately
terminate and cease to be exercisable.

 

		(c)	Termination due to Disability. If the Participant's employment terminates as a result of the Participant's disability,
the Participant may exercise the vested portion of the Option, but only within such period of time ending on the earlier of: (a)
the date 12 months following the Participant's termination of employment or (b) the Expiration Date.

 

		(d)	Termination
due to Death. If the Participant's employment terminates as a result of the Participant's death, the vested portion
of the Option may be exercised by the Participant's estate, by a person who acquired the right to exercise the Option by bequest
or inheritance or by the person designated to exercise the Option upon the Participant's death, but only within the time period
ending on the earlier of: (a) the date 12 months following the Participant's termination of employment or (b) the Expiration Date.

 

		4.	Manner of
Exercise.

 

		(a)	Election
to Exercise. To exercise the Option, the Participant (or in the case of exercise after the Participant's death or incapacity,
the Participant's executor, administrator, heir or legatee, as the case may be) must deliver to the Company or its designated agent
a notice of intent to exercise in the manner designated by the Administrator. If someone other than the Participant exercises the
Option, then such person must submit documentation reasonably acceptable to the Company verifying that such person has the legal
right to exercise the Option.

 

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		(b)	Payment
of Exercise Price. The entire Exercise Price of the Option and any withholding taxes for the Option shall be payable:

 

		(i)	in cash or by certified check;

 

		(ii)	with the approval of the Administrator, by withholding shares of Stock subject to the Option, by delivering shares of Stock
owned by the Participant or by attestation (on a form prescribed by the Administrator) to ownership of shares of Stock (in each
case, such shares of Stock shall have an aggregate Fair Market Value on the date of exercise equal to the Option Price);

 

		(iii)	in cash, on the T+3 settlement date that occurs after the exercise date specified in the notice of exercise, provided that
the Participant exercises the Option through an irrevocable agreement with a registered broker and the payment is made in accordance
with procedures permitted by Regulation T of the Federal Reserve Board and such procedures do not violate applicable law; or

 

		(iv)	by such other method as the Administrator may approve, to the extent permitted by applicable law.

 

		(c)	Withholding.
                                         If the Company, in its discretion, determines that it is obligated to withhold any tax
                                         in connection with the exercise of the Option, the Participant must make arrangements
                                         satisfactory to the Company to pay or provide for any applicable federal, state and local
                                         withholding obligations of the Company, or the Company may deduct from other wages paid
                                         to the Participate the amount of any withholding taxes due with respect to such Grants.

 

		(d)	Issuance
                                         of Shares. Provided that the exercise notice and payment are in form and substance
                                         satisfactory to the Company, the Company shall issue the shares of Common Stock registered
                                         in the name of the Participant, the Participant's authorized assignee, or the Participant's
                                         legal representative which shall be evidenced by stock certificates representing the
                                         shares with the appropriate legends affixed thereto, appropriate entry on the books of
                                         the Company or of a duly authorized transfer agent, or other appropriate means as determined
                                         by the Company.

 

		5.	No
                                         Right to Continued Employment; No Rights as Shareholder. Neither the Plan
                                         nor this Agreement shall confer upon the Participant any right to be retained in any
                                         position, as an employee, consultant or director of the Company. Further, nothing in
                                         this Agreement shall be construed to limit the discretion of the Company to terminate
                                         the Participant's employment at any time, with or without Cause. The Participant shall
                                         not have any rights as a shareholder with respect to any shares of Common Stock subject
                                         to the Option unless and until certificates representing the shares have been issued
                                         by the Company to the holder of such shares, or the shares have otherwise been recorded
                                         on the books of the Company or of a duly authorized transfer agent as owned by such holder.

 

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		6.	Transferability.
                                         The Option is not transferable by the Participant other than to a designated beneficiary
                                         upon the Participant's death or by will or the laws of descent and distribution, and
                                         is exercisable during the Participant's lifetime only by him or her. No assignment or
                                         transfer of the Option, or the rights represented thereby, whether voluntary or involuntary,
                                         by operation of law or otherwise (except to a designated beneficiary, upon death, by
                                         will or the laws of descent or distribution) will vest in the assignee or transferee
                                         any interest or right herein whatsoever, but immediately upon such assignment or transfer
                                         the Option will terminate and become of no further effect.

 

		7.	Adjustments.
                                         The terms of this Agreement, including the number of shares of Common Stock subject to
                                         the Option, shall be adjusted as the Administrator determines is equitably required in
                                         the event the Company effects one or more stock dividends, stock splits, subdivisions
                                         or consolidations of shares or other similar changes in capitalization.

 

		8.	Tax
                                         Liability and Withholding. Notwithstanding any action the Company takes with
                                         respect to any or all income tax, social insurance, payroll tax, or other tax-related
                                         withholding (“Tax-Related Items”), the ultimate liability for all
                                         Tax-Related Items is and remains the Participant's responsibility and the Company (a)
                                         makes no representation or undertakings regarding the treatment of any Tax-Related Items
                                         in connection with the grant, vesting, or exercise of the Option or the subsequent sale
                                         of any shares acquired on exercise; and (b) does not commit to structure the Option to
                                         reduce or eliminate the Participant's liability for Tax-Related Items.

 

		9.	Compliance
                                         with Law. The exercise of the Option and the issuance and transfer of shares
                                         of Common Stock shall be subject to compliance by the Company and the Participant with
                                         all applicable requirements of federal and state securities laws and with all applicable
                                         requirements of any stock exchange on which the Company's shares of Common Stock may
                                         be listed. No shares of Common Stock shall be issued pursuant to this Option unless and
                                         until any then applicable requirements of state or federal laws and regulatory agencies
                                         have been fully complied with to the satisfaction of the Company and its counsel.

 

		10.	Notices.
                                         Any notice required to be delivered to the Company under this Agreement shall be in writing
                                         and addressed to the Secretary of the Company at the Company's principal corporate offices.
                                         Any notice required to be delivered to the Participant under this Agreement shall be
                                         in writing and addressed to the Participant at the Participant's address as shown in
                                         the records of the Company. Either party may designate another address in writing (or
                                         by such other method approved by the Company) from time to time.

 

		11.	Governing
                                         Law. This Agreement will be construed and interpreted in accordance with the
                                         laws of the State of Delaware without regard to conflict of law principles.

 

		12.	Interpretation.
                                         Any dispute regarding the interpretation of this Agreement shall be submitted by the
                                         Participant or the Company to the Administrator for review. The resolution of such dispute
                                         by the Administrator shall be final and binding on the Participant and the Company.

 

		13.	Successors
                                         and Assigns. The Company may assign any of its rights under this Agreement.
                                         This Agreement will be binding upon and inure to the benefit of the successors and assigns
                                         of the Company. Subject to the restrictions on transfer set forth herein, this Agreement
                                         will be binding upon the Participant and the Participant's beneficiaries, executors,
                                         administrators and the person(s) to whom this Agreement may be transferred by will or
                                         the laws of descent or distribution.

 

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		14.	Severability.
                                         The invalidity or unenforceability of any provision of the Plan or this Agreement shall
                                         not affect the validity or enforceability of any other provision of the Plan or this
                                         Agreement, and each provision of the Plan and this Agreement shall be severable and enforceable
                                         to the extent permitted by law.

 

		15.	Amendment.
                                         The Administrator has the right to amend, alter, suspend, discontinue or cancel the Option,
                                         prospectively or retroactively; provided, that, no such amendment shall adversely affect
                                         the Participant's material rights under this Agreement without the Participant's consent;
                                         provided, further, that, to the extent required under the rules of any securities exchange
                                         or market system on which the Company’s common stock is listed, amendments to this
                                         Agreement shall be subject to approval by the Company’s stockholders. Nothing in
                                         this Section 15 shall limit the Administrator’s authority to take any action
                                         permitted pursuant to the Plan.

 

		16.	No
                                         Impact on Other Benefits. The value of the Participant's Option is not part
                                         of his or her normal or expected compensation for purposes of calculating any severance,
                                         retirement, welfare, insurance or similar employee benefit.

 

		17.	Counterparts.
                                         This Agreement may be executed in counterparts, each of which shall be deemed an original
                                         but all of which together will constitute one and the same instrument. Counterpart signature
                                         pages to this Agreement transmitted by facsimile transmission, by electronic mail in
                                         portable document format (.pdf), or by any other electronic means intended to preserve
                                         the original graphic and pictorial appearance of a document, will have the same effect
                                         as physical delivery of the paper document bearing an original signature.

 

		18.	Acceptance.
                                         The Participant hereby acknowledges receipt of a copy of the Plan and this Agreement.
                                         The Participant has read and understands the terms and provisions thereof, and accepts
                                         the Option subject to all of the terms and conditions of the Plan and this Agreement.
                                         The Participant acknowledges that there may be adverse tax consequences upon exercise
                                         of the Option or disposition of the underlying shares and that the Participant should
                                         consult a tax advisor prior to such exercise or disposition.

 

[signature page follows]

 

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IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the date first above written.

 

	 	CARDCONNECT CORP.
	 	 
	 	By:	
        /s/ Jeffrey Shanahan

        

	 	Name:	
        Jeffrey Shanahan

        

	 	Title:	
        Chief Executive Officer and President

        

 

[Non-Qualified
Stock Option Grant – Inducement Award]

 

    	 	6	 

     

    

 

	 	EMPLOYEE
	 	 	 
	 	By:	/s/ Michael J. Mertz
	 	Name:	Michael J. Mertz

 

 

[Non-Qualified
Stock Option Grant – Inducement Award]

 

7Exhibit 4.10

 

English Summary of the Hebrew Original

 

Amendment no. 5 to the Credit Agreement dated March 14, 2013, which was 

amended on November 3, 2013, April 29, 2014, March 31, 2015 and March 10, 2016

Made and entered in Tel Aviv, on September __, 2016

 

On March 14, 2013, the Borrower entered into a credit agreement with the Lenders (hereinafter: the "Credit Agreement"), in the framework of which, and by virtue of which, inter alia, the "Credit" was made available to the Borrower; and

On November 3, 2013, following the Borrower's request to make various amendments to the Credit Agreement, Amendment no. 1 to the Credit Agreement was executed by and among the Parties, and on April 29, 2014, following the Borrower's request to make additional amendments to the Credit Agreement, instead of the amendments that were made to the Credit Agreement in the framework of Amendment no. 1, Amendment no. 2 to the Credit Agreement was executed by and among the Parties, and on March 31, 2015, following the Borrower's request to make various amendments to the Credit Agreement, inter alia, instead of various amendments that were made to the Credit Agreement in the framework of Amendment no. 2 and remained in force, Amendment no. 3 to the Credit Agreement was executed by and among the Parties (hereinafter: "Amendment no. 3") and on March 10, 2016, following the Borrower's request to make various amendments to the Credit Agreement, inter alia, instead of various amendments that were made to the Credit Agreement in the framework of Amendment no. 3, Amendment no. 4 to the Credit Agreement was executed by and among the Parties (hereinafter, jointly, the "Amendments"); and

The Borrower approached the Lenders and requested to make various amendments to the Credit Agreement and to Amendment no. 3, as specified in this Amendment below; and in reliance upon the veracity of the Borrower's representations and warranties in the Credit Agreement and in this Amendment, as specified below, and the fulfillment of all of its undertakings as specified in the Credit Agreement, as amended in this Amendment, the Lenders agreed to the Borrower's request, all subject to and in accordance with the terms and conditions and the provisions of the Credit Agreement and this Amendment (the “Amendment”);

The following is the summary of the material terms and conditions of the Amendment.

		1.	
General

The preamble to this Amendment constitutes an integral part hereof. All of the terms mentioned above and below in this Amendment shall have the meaning given to them in them in the Credit Agreement, unless explicitly stated otherwise.

This section also contains customary representations of the Borrower, including a representation that the Borrower has complied and is complying with all the provisions of the Credit Agreement; that the Borrower has full power and authority to enter into the Amendment; that certain representations and warranties as detailed in the Credit Agreement are true and correct as of the date of execution of the Amendment; that there will be no need for any further decision making or any further approvals; that the Amendment is part of the Credit Documents.

 

 

		2.	
A Permitted Factoring Transaction

		2.1	
As of the date of execution of this Amendment and until the Final Repayment Date, Section 16.16 of the Credit Agreement shall be amended such that the existing section shall be deleted and the following shall come in its stead:

		"16.16	
The Borrower and/or any of the held companies shall not perform Permitted Factoring Transactions in an aggregate sum that at any time exceeds 20 (twenty) million US dollars (hereinafter: the "Allowed Factoring Sum"). Notwithstanding that stated, the Borrower and/or any of the held companies shall be permitted to perform a Permitted Factoring Transaction with respect to the sale of their rights to receive accounts receivables from customers that are among a certain customer group, in accordance with the transaction with the customer group in an additional aggregate sum which shall not, at any time, exceed 94 million dollars. For the avoidance of doubt, that stated shall not derogate from the right of the Borrower and/or any of the held companies to perform other Permitted Factoring Transactions with the group of customers up to the Allowed Factoring Sum. The Borrower and/or any of the held companies shall not perform a Factoring Transaction that is not a Permitted Factoring Transaction or any other transaction in the framework of which any of the rights to receive accounts receivables belonging to any of them, shall be sold, endorsed, assigned or otherwise transferred. For the avoidance of doubt it is clarified that the responsibility to comply with the undertaking under this Section 16.16 lies solely on the Borrower and the held companies, and that a Lender shall be responsible for non-compliance with the said restriction only in the event in which such Lender itself performed Factoring Transactions with the Borrower and/or with a held company in an amount that, at such time, exceeds the Allowed Factoring Sum.

For the avoidance of doubt, it shall be clarified that the Borrower must confirm that the amount of a Permitted Factoring Transaction be subtracted from the customers' balance, in accordance with acceptable accounting principles."

		3.	
Miscellaneous

		3.1	
Unless otherwise expressly set forth in this Amendment, the terms and conditions and the obligations specified in this Amendment do not derogate from and/or prejudice and/or modify any other undertaking of the Borrower towards the Lenders and/or the validity of any security whatsoever that was made available to the benefit of the Securities' Trustee for the Lenders, under and by virtue of the Credit Agreement and/or the other Credit Documents and/or any other agreement or document that was and/or shall be delivered to the Lenders or to a position holder with respect to the Credit, and these shall continue to have full and binding force, including all of the provisions relating to the Lenders' rights to make the Credit immediately payable, all in accordance with and subject to the provisions and the terms and conditions of the Credit Documents.

		3.2	
This Amendment, unless explicitly stated otherwise herein, is meant to be in addition to all that is stated in the Credit Agreement and in the Amendments, and shall not derogate from and/or modify and/or prejudice them, and other than as explicitly specified in this Amendment, all of the rights of the Lenders and of the Borrower under the Credit Agreement, the Amendments and applicable law, are fully reserved.

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