Document:

Exhibit 10.1

 

ESCROW
AGREEMENt

 

This
Escrow Agreement (the “Agreement”)
is made and entered into as of April 3, 2017, by and between CardConnect Corp.,
a Delaware corporation (the “Parent”); Michael J. Mertz, the sole stockholder of Mertzco, Inc., an Illinois
corporation (the “Target”); and Continental Stock Transfer & Trust Company, a New York corporation (the
“Escrow Agent”).

 

Recitals

 

WHEREAS,
Parent, CCN Chicago, LLC, a Delaware limited liability company and indirect wholly-owned subsidiary of Parent (“Merger
Sub”), Target, and Michael J. Mertz have entered into an Agreement and Plan of Merger dated as of April 3, 2017 (the
“Merger Agreement”), pursuant to which, among other things, (i) Target will be merged with and into Merger
Sub (the “Merger”) and (ii) shares of Parent Common Stock will be issued to Michael J. Mertz. A copy of the
Merger Agreement is attached hereto as Exhibit A;

 

WHEREAS,
the Merger Agreement contemplates the establishment of an Escrow Fund to secure certain rights of the Parent Indemnitees (as defined
in the Merger Agreement) with respect to Michael J. Mertz’s indemnification obligations as provided in the Merger Agreement;
and

 

WHEREAS,
the execution and delivery of this Agreement is a condition to the consummation of the transactions contemplated by the Merger
Agreement.

 

Agreement

 

The
parties, intending to be legally bound, agree as follows:

 

Section
1.         Defined Terms. Capitalized terms
used and not defined in this Agreement shall have the meanings given to them in the Merger Agreement.

 

Section
2.         Escrow and Indemnification.

 

2.1     Parent Common Stock and Stock Powers Placed in Escrow. In accordance with the Merger Agreement, (a) Parent shall issue 236,850
shares of Parent Common Stock in book-entry form in the name of Michael J. Mertz to be held in the Escrow Fund pursuant to this
Agreement, and shall cause such shares to be held by the Escrow Agent in restricted book-entry form pursuant to the terms of this
Agreement and the Merger Agreement and (b) Michael J. Mertz shall deliver to the Escrow Agent ten “assignments separate
from book-entry shares” (“Stock Powers”) endorsed by Michael J. Mertz in blank. Michael J. Mertz shall
ensure that all signatures on the Stock Powers delivered to the Escrow Agent in accordance with the preceding sentence have been
medallion guaranteed by a national bank or a Nasdaq Stock Market member firm.

 

     

     

    

 

2.2     Escrow Fund. The Escrow Fund shall be held in escrow pursuant to this Agreement and shall secure the rights of the Parent
Indemnitees with respect to Michael J. Mertz’s indemnification obligations under the Merger Agreement. The Escrow Agent
hereby accepts delivery of the Escrow Fund and agrees to hold the Escrow Fund, subject to the terms and conditions of this Agreement
and the Merger Agreement.

 

2.3     Voting of Shares in the Escrow Fund. Michael J. Mertz shall be entitled to exercise all voting rights with respect to shares
of Parent Common Stock in the Escrow Fund. The Escrow Agent shall promptly distribute to Michael J. Mertz any proxy materials
and other documents relating to the Escrow Fund received by the Escrow Agent from Parent.

 

2.4     Investments. At the instruction of Michael J. Mertz, the Escrow Agent shall invest and reinvest the cash (if any pursuant
to dividends or otherwise) held in the Escrow Fund from time to time in (a) short-term securities issued or guaranteed by the
United States Government, its agencies or instrumentalities; and/or (b) repurchase agreements with maturity dates of ninety (90)
days or less that are fully secured as to payment of principal and interest by collateral consisting of obligations relating to
such securities stated in clause (a) above. Upon the request of either Parent or Michael J. Mertz, the Escrow Agent shall provide
a statement to the requesting party that describes any deposit, distribution or investment activity or deductions with respect
to any cash funds held in the Escrow Fund. In addition, the Escrow Agent shall provide Parent and Michael J. Mertz with quarterly
account statements for any fiscal quarter during there are changes to the Escrow Fund.

 

2.5     Interest, Etc. Parent and Michael J. Mertz agree that any interest accruing on or income otherwise earned (including any ordinary
cash dividends paid in respect to the Escrow Fund) on any investment of any cash funds in the Escrow Fund shall be held by the
Escrow Agent in the Escrow Fund. The aggregate amount of all interest and other income earned on any investment of any cash funds
in the Escrow Fund shall be distributed by the Escrow Agent as set forth in Section 3.

 

2.6     Dividends, Etc. Parent and Michael J. Mertz agree that any shares of Parent Common Stock or other property (including ordinary
cash dividends) distributable or issuable (whether by way of dividend, stock split or otherwise) in respect of or in exchange
for any shares of Parent Common Stock in the Escrow Fund (including pursuant to or as a part of a merger, consolidation, acquisition
of property or stock, reorganization or liquidation involving Parent) shall not be distributed or issued to Michael J. Mertz,
but rather shall be distributed or issued to and held by the Escrow Agent as part of the Escrow Fund. Any securities or other
property received by the Escrow Agent in respect of any shares of Parent Common Stock in the Escrow Fund as a result of any stock
split or combination of shares of Parent Common Stock, payment of a stock dividend or other stock distribution in or on shares
of Parent Common Stock, or change of Parent Common Stock into any other securities pursuant to or as a part of a merger, consolidation,
acquisition of property or stock, reorganization or liquidation involving Parent, or otherwise, shall be held by the Escrow Agent
as part of the Escrow Fund.

 

    	 	2	 

     

    

 

2.7     Transferability. Except as provided for herein or by operation of law, the interests of Michael J. Mertz and the Parent in
the Escrow Fund shall not be assignable or transferable.

 

2.8     Trust
Fund. The shares of Parent Common Stock held in the Escrow Fund shall be held as a trust fund and shall not be subject to
any lien, attachment, trustee process or any other judicial process of any creditor of Michael J. Mertz or Parent, respectively,
or of any party hereto. The Escrow Agent shall hold and safeguard the Escrow Fund until the Termination Date (as defined in Section
6) or earlier distribution in accordance with this Agreement.

 

2.9     Taxes. Michael J. Mertz shall be responsible for paying all taxes with respect to the shares of Parent Common Stock in the
Escrow Fund, including any and all dividends, distributions and income made or earned and held in the Escrow Fund.

 

Section
3.         Release of Shares from the Escrow
Fund.

 

3.1     General. At any time and from time to time on or prior to October 3, 2018 (the “Escrow Release Date”),
if the Parent makes a claim for indemnity pursuant to and in accordance with Article VIII of the Merger Agreement1,
the Parent shall deliver to the Escrow Agent and Michael J. Mertz a written notice setting forth in reasonable detail the amount,
nature, and basis of the claim by the Parent. If the Escrow Agent has not received a written objection to such claim or portion
thereof or the amount of such claim from Michael J. Mertz within thirty days following the Escrow Agent’s and Michael J.
Mertz’s receipt of such escrow notice, then on the next business day following such receipt, the Escrow Agent shall release,
by wire transfer to an account or accounts designated by Parent, an amount of Escrow Funds equal to the amount of such claim.

 

If
Michael J. Mertz in good faith delivers to the Escrow Agent and Parent a written objection to any claim or portion thereof or
the amount of such claim within thirty days following both the Escrow Agent’s and Michael J. Mertz’s receipt of such
escrow notice, then the Escrow Agent shall not distribute to Parent any portion of the shares of Parent Common Stock in the Escrow
Fund that is the subject of the dispute notice until the Escrow Agent receives either (A) joint written instructions signed by
Michael J. Mertz and Parent (“Joint Written Instructions”) authorizing the release to Parent of the portion
of the shares of Parent Common Stock in the Escrow Fund that is agreed upon as the amount recoverable in respect of the dispute
notice or (B) a final and non-appealable order of any court of competent jurisdiction (“Court Order”) directing
the release to Parent of the portion of the shares of Parent Common Stock in the Escrow Fund that is determined to be the amount
recoverable in respect of the dispute notice; provided, that notwithstanding the foregoing, if Michael J. Mertz objects in parts
to the amount of the claim, the Escrow Agent shall, after the lapse of the aforementioned thirty day period, deliver to Parent
an amount from the Escrow Fund equal to the portion of the claim not objected to by Michael J. Mertz. Upon receipt of such Joint
Written Instructions or Court Order, as the case may be, the Escrow Agent shall release to Parent such shares of Parent Common
Stock in the Escrow Fund in accordance with such written instructions or Court Order.

 

    	 	3	 

     

    

 

3.2     Distributions Deemed Adjustments to Purchase Price. All distributions from the Escrow Fund to Parent pursuant to this Agreement
shall be deemed to be adjustments to the Purchase Price pursuant to the terms of the Merger Agreement.

 

3.3     Claims in Excess of the Escrow Fund. If at any time during the term of this Agreement, the amount of any payment required
to be made by the Escrow Agent to the Parent pursuant to Section 3.1 of the Agreement with respect to an escrow notice exceeds
the amount of shares of Parent Common Stock in the Escrow Fund, the Escrow Agent shall pay to the Parent the entire Escrow Fund
(including any escrow income). Notwithstanding any such payment, the rights of Parent under the Merger Agreement shall not be
satisfied or extinguished, and Parent shall be entitled to recover from Michael J. Mertz the balance of any amounts owed to it
thereunder.

 

3.4     Release of Parent Common Stock in the Escrow Fund. Upon receipt of Joint Written Instructions, which Parent and Michael J.
Mertz shall provide no later than five (5) business days following January 3, 2018, the Escrow Agent shall release to Michael
J. Mertz a number of shares of the Parent Common Stock from the Escrow Fund equal to (A) the amount of Parent Common Stock and
other property, if any, then held in the Escrow Fund less the amount of any Unresolved Claims (as defined below) and other claims
that have not been fully paid, multiplied by (B) one-half. Upon receipt of Joint Written Instructions, which Parent and Michael
J. Mertz shall provide no later than thirty days following the Escrow Release Date, the Escrow Agent shall release to Michael
J. Mertz a number of shares of the Parent Common Stock from the Escrow Fund equal to the excess, if any, by which the value of
the amounts held in the Escrow Fund exceed an amount equal to 150% of the amount of any Unresolved Claims, plus the amount of
any other claims that have not otherwise been fully paid. Upon the resolution of any Unresolved Claim subsequent to the Escrow
Release Date, the Escrow Agent shall make distributions from the Escrow Fund to Parent or Michael J. Mertz, as the case may be,
only in accordance with Joint Written Instructions or a Court Order. As used herein, “Unresolved Claims” shall
mean, as of a given date, the amount of all unresolved or unsatisfied claims that are the subject of a dispute notice as described
in Section 3.1 that was timely and properly asserted under this Agreement, and any claims for which Parent has provided an escrow
notice but for which the 30 day objection period has not expired.

 

3.5     Distributions. Whenever shares of Parent Common Stock held in the Escrow Fund are to be distributed to Parent pursuant to
the terms of this Agreement, the Escrow Agent shall transfer such shares from the Escrow Fund to Parent in accordance with its
book entry registration procedures, and is hereby authorized and directed by Parent to cancel and retire such shares of Parent
Common Stock, treating such shares of Parent Common Stock as authorized but unissued shares of Parent Common Stock. Whenever shares
of Parent Common Stock are to be released from the Escrow Fund to Michael J. Mertz pursuant to the terms of this Agreement, the
Escrow Agent shall release such shares from the Escrow Fund and remove any restrictive legend pertaining solely to the Escrow
Fund and this Agreement from such shares in accordance with its book entry registration procedures.

 

    	 	4	 

     

    

 

3.6     Disputes. All disputes, claims, or controversies arising out of or relating to Section 3 of this Agreement that are not resolved
by mutual agreement within thirty days from the date of commencement of discussion between Parent and Michael J. Mertz shall be
resolved by arbitration to be held in Philadelphia, Pennsylvania. A single arbitrator shall be mutually appointed by the Parent
and Michael J. Mertz, or in case of disagreement as to the appointment of a sole arbitrator, by three (3) arbitrators of which
each party shall appoint one arbitrator and the two appointed arbitrators shall jointly appoint the third arbitrator. The arbitration
shall be governed by the rules of the American Arbitration Association. The arbitration award shall be in writing and shall be
final and binding on the parties. The arbitrators shall have the power to award the costs and reasonable expenses (including reasonable
fees of counsel) incurred in the arbitration as also interest on any amounts payable by a party to another.

 

Section
4.         Fees and Expenses. The Escrow
Agent shall be entitled to receive, from time to time, fees in accordance with Schedule 1. In accordance with Schedule 1, the
Escrow Agent will also be entitled to reimbursement for reasonable and documented out-of-pocket expenses incurred by the Escrow
Agent in the performance of its duties hereunder and the execution and delivery of this Agreement. Each of Parent, on the one
hand, and Michael J. Mertz, on the other hand, shall pay one-half of the fees and expenses (including reasonable and documented
attorneys’ fees) of the Escrow Agent for the services to be rendered by the Escrow Agent pursuant to this Agreement. The
Escrow Agent agrees to serve as Escrow Agent in accordance with the fee schedule attached as Schedule 1 hereto.

 

Section
5.         Limitation of Escrow Agent’s
Liability.

 

5.1     The Escrow Agent undertakes to perform such duties as are specifically set forth in this Agreement only and shall have no
duty under any other agreement or document, and no implied covenants or obligations shall be read into this Agreement against
the Escrow Agent. The Escrow Agent shall incur no liability with respect to any action taken by it or for any inaction on its
part in reliance upon any notice, direction, instruction, consent, statement or other document believed by it in good faith to
be genuine and duly authorized, nor for any other action or inaction except for its own negligence or willful misconduct. In all
questions arising under this Agreement, the Escrow Agent may rely on the advice of counsel, and for anything done, omitted or
suffered in good faith by the Escrow Agent based upon such advice the Escrow Agent shall not be liable to anyone. In no event
shall the Escrow Agent be liable for incidental, punitive or consequential damages.

 

5.2     Parent and Michael J. Mertz hereby agree to indemnify the Escrow Agent and its officers, directors, employees and agents for,
and hold it and them harmless against, any loss, liability or expense incurred without negligence or willful misconduct on the
part of Escrow Agent, arising out of or in connection with the Escrow Agent’s carrying out its duties hereunder. This right
of indemnification shall be allocated and paid in the same manner as fees and expenses under Section 4 of this Agreement and shall
survive the termination of this Agreement and the resignation or removal of the Escrow Agent.

 

    	 	5	 

     

    

 

Section
6.         Termination.

 

This
Agreement shall terminate upon the distribution or release by the Escrow Agent of all shares of Parent Common Stock and other
property, if any, held in the Escrow Fund in accordance with this Agreement (the date of such release being referred to as the
“Termination Date”). Sections 3.2, 3.3, 3.6 and 4 shall survive termination of this Agreement.

 

Section
7.         Successor Escrow Agent.

 

In
the event the Escrow Agent becomes unavailable or unwilling to continue as escrow agent under this Agreement, the Escrow Agent
may resign and be discharged from its duties and obligations hereunder by giving its written resignation to the parties to this
Agreement. Such resignation shall take effect not less than 45 days after it is given to all the other parties hereto. In such
event, Parent may appoint a successor Escrow Agent (acceptable to Michael J. Mertz, acting reasonably). If Parent fails to appoint
a successor Escrow Agent within 30 days after receiving the Escrow Agent’s written resignation, the Escrow Agent shall have
the right to apply to a court of competent jurisdiction for the appointment of a successor Escrow Agent. The successor Escrow
Agent shall execute and deliver to the Escrow Agent an instrument accepting such appointment, and the successor Escrow Agent shall,
without further acts, be vested with all the estates, property rights, powers and duties of the predecessor Escrow Agent as if
originally named as Escrow Agent herein. The Escrow Agent shall act in accordance with written instructions from Parent and Michael
J. Mertz as to the transfer of the shares of Parent Common Stock in the Escrow Fund to a successor Escrow Agent.

 

Section
8.         Miscellaneous.

 

8.1     Attorneys’ Fees. In any action at law or suit in equity to enforce or interpret this Agreement or the rights
of any of the parties hereunder, the prevailing party in such action or suit shall be entitled to receive a reasonable sum for
its attorneys’ fees and all other reasonable costs and expenses incurred in such action or suit.

 

8.2     Notices. Any notice or other communication required or permitted to be delivered to any party under this Agreement shall be
in writing and shall be deemed properly delivered, given and received when delivered (by hand, by registered mail, by courier
or express delivery service or by facsimile) to the address or facsimile telephone number set forth beneath the name of such party
below (or to such other address or facsimile telephone number as such party shall have specified in a written notice given to
the other parties hereto):

 

if
to Parent:

 

CardConnect
Corp.

1000
Continental Drive, Suite 300 

King
of Prussia, PA 19406

Attention:
Jeff Shanahan

Phone:
(484) 581-2920

Email:
jshanahan@cardconnect.com

 

    	 	6	 

     

    

 

with
a copy, which shall not constitute notice, to:

 

Ledgewood
PC

2001 Market Street, Suite 3400

Philadelphia, PA 19103

Attention: Amanda Abrams

Phone: (215) 731-9450 

Email:
aabrams@ledgewood.com

Facsimile:
(215) 735-2513

 

if
to Michael J. Mertz:

 

Michael
J. Mertz

313
North Racine

Chicago,
IL 60607

Phone:
(312) 644-2744

Michaelmertz@hotmail.com

 

with
a copy, which shall not constitute notice, to:

 

Fried,
Frank, Harris, Shriver & Jacobson LLC

One New York Plaza

New
York, New York 10004

Attention:
Christopher Roman

Phone:
(212) 859-8000

Email:
christopher.roman@friedfrank.com

 

if
to the Escrow Agent:

 

Continental
Stock Transfer & Trust Company

17
Battery Place 

New
York, NY 10004

Attention:
Isaac Kagan

Email:
ikagan@continentalstock.com

 

Notwithstanding
the foregoing, notices addressed to the Escrow Agent shall be effective only upon receipt. If any notice or other document is
required to be delivered to the Escrow Agent and any other party, the Escrow Agent may assume without inquiry that notice or other
document was received by such other party on the date on which it was received by the Escrow Agent.

 

    	 	7	 

     

    

 

8.3     Headings. The bold-faced headings contained in this Agreement are for convenience of reference only, shall not be deemed
to be a part of this Agreement and shall not be referred to in connection with the construction or interpretation of this Agreement.

 

8.4     Counterparts and Exchanges by Facsimile or Other Electronic Transmission. This Agreement may be executed in several counterparts,
each of which shall constitute an original and all of which, when taken together, shall constitute one agreement. The exchange
of a fully executed Agreement (in counterparts or otherwise) by facsimile or other means of electronic transmission shall be sufficient
to bind the parties to the terms and conditions of this Agreement.

 

8.5     Applicable Law; Jurisdiction. This Agreement shall be governed by, and construed in accordance with, the laws of the
State of New York, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof.
Subject to Section 3.6 of this Agreement, in any action between the parties arising out of or relating to this Agreement or any
of the transactions contemplated by this Agreement: (a) each of the parties irrevocably and unconditionally consents and
submits to the non-exclusive jurisdiction and venue of the state and federal courts located in the State of New York; (b) if any
such action is commenced in a state court, then, subject to applicable law, no party shall object to the removal of such action
to any federal court located in the State of New York; and (c) each of the parties irrevocably waives the right to trial by jury.

 

8.6     Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of each of the parties
hereto and each of their respective permitted successors and assigns, if any. The rights of Michael J. Mertz under this Agreement
may be assigned, delegated or transferred, in whole or in part, to any Affiliate (as defined in Rule 12b-2 under the Exchange
Act) of Michael J. Mertz, or any other party, managed fund or managed client account over which Michael J. Mertz or any of his
affiliates exercise investment authority, including, without limitation, with respect to voting and dispositive rights.

 

8.7     Waiver. No failure on the part of any party to exercise any power, right, privilege or remedy under this Agreement,
and no delay on the part of any party in exercising any power, right, privilege or remedy under this Agreement, shall operate
as a waiver of such power, right, privilege or remedy; and no single or partial exercise of any such power, right, privilege or
remedy shall preclude any other or further exercise thereof or of any other power, right, privilege or remedy. No party shall
be deemed to have waived any claim arising out of this Agreement, or any power, right, privilege or remedy under this Agreement,
unless the waiver of such claim, power, right, privilege or remedy is expressly set forth in a written instrument duly executed
and delivered on behalf of such party; and any such waiver shall not be applicable or have any effect except in the specific instance
in which it is given.

 

8.8     Amendment. This Agreement may not be amended, modified, altered or supplemented other than by means of a written instrument
duly executed and delivered on behalf of Parent, Michael J. Mertz, and the Escrow Agent.

 

    	 	8	 

     

    

 

8.9     Severability. Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction
shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability
of the offending term or provision in any other situation or in any other jurisdiction. If the final judgment of a court of competent
jurisdiction declares that any term or provision hereof is invalid or unenforceable, the parties hereto agree that the court making
such determination shall have the power to limit 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 this Agreement shall be enforceable as so modified. In the
event such court does not exercise the power granted to it in the prior sentence, the parties hereto agree to replace such invalid
or unenforceable term or provision with a valid and enforceable term or provision that will achieve, to the extent possible, the
economic, business and other purposes of such invalid or unenforceable term.

 

8.10   Parties in Interest. Except as expressly provided herein, none of the provisions of this Agreement, express or implied,
is intended to provide any rights or remedies to any party other than the parties hereto and their respective successors and assigns,
if any.

 

8.11   Entire Agreement. This Agreement and the Merger Agreement set forth the entire understanding of the parties hereto
relating to the subject matter hereof and supersede all prior agreements and understandings among or between any of the parties
relating to the subject matter hereof.

 

8.12   Waiver of Jury Trial. Each of the parties hereto hereby irrevocably waives any and all right to trial by jury in any action
arising out of or related to this Agreement or the transactions contemplated hereby.

 

8.13   Tax Reporting Information. Parent agrees to provide the Escrow Agent with a certified tax identification number, and Michael
J. Mertz agrees to provide the Escrow Agent with a certified social security number by furnishing appropriate form W-9 and any
other forms and documents that the Escrow Agent may reasonably request (collectively, “Tax Reporting Documentation”).
If the Tax Reporting Documentation is incomplete or not provided to the Escrow Agent, the Escrow Agent shall, as required by the
Code, deduct and withhold from any amount distributed or released from the Escrow Fund all taxes which may be required to be deducted
or withheld under any provision of applicable tax law. All such withheld amounts shall be treated as having been delivered to
the party entitled to the amount distributed or released in respect of which such tax has been deducted or withheld.

 

8.14   Cooperation. Michael J. Mertz and Parent agree to cooperate fully with each other and the Escrow Agent and to execute and
deliver such further documents, certificates, agreements, stock powers and instruments and to take such other actions as may be
reasonably requested by Parent, Michael J. Mertz, or the Escrow Agent to evidence or reflect the transactions contemplated by
this Agreement and to carry out the intent and purposes of this Agreement.

 

    	 	9	 

     

    

 

8.15   Construction.

 

(a)         For purposes of this Agreement, whenever the context requires: the singular number shall include the plural, and vice versa;
the masculine gender shall include the feminine and neutral genders; the feminine gender shall include the masculine and neutral
genders; and the neutral gender shall include masculine and feminine genders.

 

(b)         The parties hereto agree that any rule of
construction to the effect that ambiguities are to be resolved against the drafting party shall not be applied in the construction
or interpretation of this Agreement.

 

(c)         As used in this Agreement, the words “include”
and “including,” and variations thereof, shall not be deemed to be terms of limitation, but rather shall be deemed
to be followed by the words “without limitation.”

 

(d)         Except as otherwise indicated, all references
in this Agreement to “Sections”, “Schedules” and “Exhibits” are intended to refer to Sections
of this Agreement, Schedules to this Agreement and Exhibits to this Agreement.

 

[Remainder
of page intentionally left blank]

 

    	 	10	 

     

    

 

In
Witness Whereof, the parties have duly caused
this Agreement to be executed as of the day and year first above written.

 

	 	CardConnect
    Corp., a Delaware corporation
	 	 
	 	By:	/s/
    Jeff Shanahan
	 	Name:  	Jeff
    Shanahan
	 	Title:  	Chief
    Executive Officer and President

 

[Escrow Agreement Signature
Page]

     

     

    

 

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

 

[Escrow
Agreement Signature Page]

     

     

    

 

	 	Continental Stock Transfer & Trust
	 	Company, a New York corporation
	 	 
	 	By: 	/s/ Isaac Kagan
	 	Name: 	Isaac Kagan
	 	Title: 	Account Administrator

 

[Escrow
Agreement Signature Page]

     

     

    

 

Schedule
1

Escrow Agent’s Fees
and Expenses

 

	Review of Documents	 	$	2,500.00	 
	 	 	 	 	 
	Set up and Issuance of Escrow Account shares	 	$	2,500.00	 
	 	 	 	 	 
	Monthly Fee for holding securities and/or cash:	 	$	200.00 per monthExhibit 10.2

 

CARDCONNECT,
LLC

 

EMPLOYMENT
AGREEMENT

 

This
EMPLOYMENT AGREEMENT (the “Agreement”) is made as of April 3, 2017, by and between CardConnect Corp., a Delaware
corporation (“Parent”), CardConnect, LLC (f/k/a Financial Transaction Services, LLC), a Delaware limited liability
company and indirect wholly-owned subsidiary of Parent (the “Company”), and Michael J. Mertz (“Executive”).

 

WHEREAS,
pursuant to that certain Agreement and Plan of Merger by and among Parent, CCN Chicago, LLC, a Delaware limited liability company
and indirect wholly owned subsidiary of Parent (“Merger Sub”), Executive, the sole stockholder of MertzCo,
Inc., a Delaware limited liability company (“Target”) and Target, effective as of the date hereof (the “Effective
Date”), Target was merged with and into Merger Sub (the “Merger”), with Merger Sub being the surviving
entity and continuing as a wholly owned indirect subsidiary of Parent;

 

WHEREAS,
the Company and the Executive desire to enter into this Agreement to provide for the terms of Executive’s employment with
Parent and its subsidiaries.

 

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

 

1.           Employment. Parent and the Company shall employ Executive, and Executive hereby accepts employment with Parent and the
Company, upon the terms and conditions set forth in this Agreement for the period beginning on the date hereof and ending as provided
in Section 4 hereof (the “Employment Period”).

 

2.           Position and Duties.

 

(a)         During the Employment Period, Executive shall serve as the Chief Sales Officer of Parent, the Company and their Subsidiaries (as
defined below) and shall have the normal duties, responsibilities, and authority of an executive serving in such position subject
to the direction of Parent’s Chief Executive Officer and Parent’s board of directors (the “Board”).

 

(b)        
Executive shall report to Parent’s Chief Executive Officer and the Board and shall devote his best efforts and full business
time and attention (except for permitted vacation periods and reasonable periods of illness or other incapacity) to the business
and affairs of Parent, the Company and their Subsidiaries. Executive shall perform his duties, responsibilities and functions
to Parent, the Company and their Subsidiaries hereunder in good faith and to the best of his abilities in a diligent, trustworthy,
professional and efficient manner and shall comply with Parent’s, the Company’s and their Subsidiaries’ policies
and procedures in all material respects. So long as Executive is employed by Parent or the Company, Executive shall not, without
the prior written consent of the Board (which consent shall not be unreasonably withheld), accept other employment or perform
other services for compensation; provided, that Executive may (i) serve as an officer or director of or otherwise participate
in purely educational, welfare, social, religious and civic organizations so long as such activities do not materially interfere
with Executive’s services and obligations hereunder, and (ii) make and manage personal investments of his choice so
long as such activities do not materially interfere with Executive’s services and obligations hereunder.

 

     

     

    

 

(c)         Executive shall perform his duties hereunder at the Company’s office in Chicago, Illinois. It is understood that Executive
shall undertake such business travel as reasonably required by Parent or the Company to perform his duties and responsibilities.

 

(d)        
For purposes of this Agreement, “Subsidiaries” shall mean any corporation or other entity of which the securities
or other ownership interests having the voting power to elect a majority of the board of directors or other governing body are,
at the time of determination, owned by Parent or the Company, directly or through one of more Subsidiaries.

 

3.           Compensation and Benefits.

 

(a)         During the Employment Period, Executive’s base salary shall be four hundred thousand dollars ($400,000) per annum, subject
to increase as approved by Parent’s compensation committee (the “Base Salary”), which salary shall be
payable by Parent in regular installments in accordance with Parent’s general payroll practices (in effect from time to
time). In addition, during the Employment Period, Executive shall be entitled to participate in all of Parent’s and the
Company’s vacation, paid holidays, medical and other employee benefit programs for which members of Parent, the Company
and their Subsidiaries’ executive management team are generally eligible. Executive shall be entitled to six (6) weeks of
paid time off each calendar year, which if not taken during any year may not be carried forward to any subsequent year and no
compensation shall be payable in lieu thereof, except as otherwise required by law.

 

(b)         During the Employment Period, Parent shall reimburse Executive for all reasonable business expenses incurred by Executive in the
course of performing his duties and responsibilities under this Agreement which are consistent with Parent’s policies in
effect from time to time with respect to travel, entertainment and other business expenses, subject to Parent’s requirements
with respect to reporting and documentation of such expenses.

 

(c)         All expenses or other reimbursements under this Agreement which would be deemed taxable income to the Executive shall be made
on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by Executive.
Any right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit, and no such reimbursement,
expenses eligible for reimbursement, or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible
for reimbursement, or in-kind benefits to be provided, in any other taxable year.

 

(d)         In addition to the Base Salary, Executive shall be eligible to receive, in respect of each full calendar year, subject to his
continued employment through the last day of each calendar year and at the discretion of Parent’s compensation committee
(except as otherwise provided herein), a bonus based on the performance of the Company, as measured by the Company’s achievement
of certain target(s) approved by Parent’s compensation committee (the “Annual Bonus”). The amount of
the target Annual Bonus for the period from commencement of the Employment Period through the end of the 2017 calendar year shall
be $225,000, which shall be payable quarterly. Commencing with the 2018 calendar year, all amounts payable pursuant to this subsection
shall be payable in cash to Executive within fourteen (14) days following completion of the annual accounting audit of Parent
and the Company, but in any event no later than the fifteenth (15th) day of the third month following the fiscal year in respect
of which such payment is earned or as soon as administratively practicable within the meaning of Code Section 409A (as defined
below).

 

    	 	-2-	 

     

    

 

(e)         As an inducement to enter into this Agreement, Executive has been granted equity compensation in the form of nonqualified stock
options (the “Options”) pursuant to an award agreement (the “Inducement Award”) to purchase
400,000 shares of common stock of the Parent at an exercise price equal to the fair market value of such shares on the grant date.
Within 90 days of the date hereof, Parent shall register such shares subject to the Options with the Securities and Exchange Commission
on a Form S-8. During the Employment Period, Executive shall be eligible for future grants of equity compensation that may be
awarded under the Parent’s equity compensation plans and programs on a basis commensurate with other senior executives of
Parent and its Subsidiaries.

 

4.           Term.

 

(a)         The Employment Period shall end on the fifth (5th) anniversary of the date hereof and shall automatically be renewed on the same
terms and conditions set forth herein as modified from time to time by the parties hereto for additional one-year periods beginning
on such fifth (5th) anniversary unless either party notifies the other no later than sixty (60) days prior to the end of the then
current term that it does not wish to renew the Agreement; provided, that (i) the Employment Period shall terminate immediately
upon Executive’s resignation with Good Reason or without Good Reason, death or Disability, and (ii) the Employment Period
may be terminated by Parent at the discretion of the Chief Executive Officer or the Board at any time for Cause or without Cause.
Any termination of the Employment Period by Parent shall be effective as specified in a written notice from Parent to Executive.

 

(b)         If the Employment Period is terminated by Parent without Cause (other than as a result of Executive’s Disability) or by
Executive with Good Reason, Executive shall be entitled to (i) a lump sum cash payment within fourteen (14) days following the
date of his termination of employment equal to the sum of (A) his accrued but unused vacation, (B) Base Salary payable through
the date of termination, (C) any accrued but unpaid bonus or incentive compensation earned by Executive for a prior fiscal year,
(D) any bonus which would have been payable to Executive under Section 3(d) with respect to the year in which the Employment Period
was terminated but for such termination of the Employment Period, prorated on the basis of the number of full days of service
rendered by Executive during such year, and (E) any unreimbursed business expenses that are reimbursable in accordance with Section
3(b), and (ii) an amount equal to twelve (12) months of Executive’s Base Salary, less applicable withholdings and deductions,
such amount payable in regular installments in accordance with Parent’s normal payroll practices at the time of termination
over a period of twelve (12) months commencing on the date the Employment Period is terminated (the “Severance Period”),
in each case if and only if Executive has executed and delivered to Parent and the Company the Parent’s standard, general
release in form and substance reasonably satisfactory to the Board (the “Release”) within thirty (30) days
of such termination and only so long as Executive has not revoked or breached the provisions of such Release or breached the provisions
of Sections 5, 6 and 7 hereof during the Severance Period. Executive shall forfeit all rights to payment
under clause (ii) of this Section 4(b) unless the Release is signed and delivered (and no longer subject to revocation,
if applicable) within thirty (30) days following the date of Executive’s termination of employment. Subject to the provisions
of Section 24, if the general release is executed and delivered and no longer subject to revocation as provided in the
preceding sentence, then payments under clause (ii) of this Section 4(b) shall be made or commence upon the thirtieth (30th)
day following Executive’s termination of employment. The first such cash payment shall include payment of all amounts that
otherwise would have been due prior thereto under the terms of this Agreement had such payments commenced immediately upon Executive’s
termination of employment, and any payments made thereafter shall continue in accordance with Parent ’s payroll practices
at the time of termination. In addition, if Executive elects to continue and pays his health insurance coverage under Section
4980B of the Internal Revenue Code of 1986, as amended (“COBRA”), following the termination of Executive’s
employment, then Parent shall pay or reimburse Executive for the portion of the monthly premium under COBRA for such coverage
in excess of the portion paid by active employees for similar coverage until the earliest of (x) the expiration of the Severance
Period and (y) the date Executive receives substantially equivalent health insurance coverage in connection with new employment
or self-employment.

 

    	 	-3-	 

     

    

 

(c)         If the Employment Period is terminated (i) by Parent for Cause, (ii) due to Executive’s death or Disability, or (iii) by
Executive’s resignation without Good Reason, Executive shall be entitled to receive his Base Salary through the date of
such termination, any accrued but unused vacation, any accrued but unpaid bonus or incentive compensation earned by Executive
for a prior fiscal year, and unreimbursed business expenses that are reimbursable in accordance with Section 3(b), all
of which shall be payable in a lump sum cash payment within fourteen (14) days following the date of his termination of employment.

 

(d)         Except as otherwise expressly provided herein, Executive shall not be entitled to any other salary, bonuses, employee benefits
or compensation from Parent, the Company or their Subsidiaries after the termination of the Employment Period and all of Executive’s
rights to salary, bonuses, employee benefits and other compensation hereunder which would have accrued or become payable after
the termination of the Employment Period (other than vested retirement or other benefits accrued on or prior to the termination
of the Employment Period (including, without limitation, any vested rights under any equity incentive plan of Parent or the Company)
or other amounts owing hereunder as of the date of such termination that have not yet been paid) shall cease upon such termination,
other than those expressly required under applicable law (such as COBRA).

 

(e)         Parent, the Company and their Subsidiaries may offset any amounts Executive owes Parent, the Company or such Subsidiaries against
any amounts Parent, the Company or such Subsidiaries, as applicable, owes Executive hereunder, except as provided in Section
24(e) or under applicable law.

 

(f)          For purposes of this Agreement, “Cause” shall mean with respect to Executive one or more of the following:
(i) the conviction of, or plea of no contest by, Executive with respect to a felony or other crime involving moral turpitude offense
if, and only if, it is determined by the Board that such event has occurred and merits termination of the Executive’s employment
pursuant to this Agreement, (ii) the commission of any other act or omission by Executive involving misappropriation, embezzlement,
dishonesty, theft or fraud with respect to Parent, the Company or any of their Subsidiaries or any of their business relationships,
(iii) Executive’s illegal possession of a controlled substance, use of illegal drugs or repetitive abuse of alcohol or other
behavior which materially interferes with the performance of his duties to Parent, the Company or any Subsidiary or which compromises
the integrity and reputation of Executive, Parent, the Company or any Subsidiaries, (iv) Executive’s failure to substantially
perform material duties as reasonably directed by Parent’s Chief Executive Officer or the Board in accordance with this
Agreement continuing beyond thirty (30) days’ prior written notice of such failure, (v) Executive’s willful act
or omission aiding or abetting a competitor of Parent, the Company or any of their Subsidiaries to the material disadvantage or
detriment of Parent, the Company and their Subsidiaries, (vi) Executive’s willful failure to comply in all material respects
with Parent and the Company’s material policies, procedures and guidelines, including corporate governance and human relations
policies, and applicable laws with respect to Parent’s and the Company’s business operations, (vii) Executive’s
breach of fiduciary duty, gross negligence or willful misconduct with respect to Parent, the Company or any of their Subsidiaries,
or (viii) any other material breach by Executive of this Agreement which is not cured to the Board’s reasonable satisfaction
within thirty (30) days after written notice thereof to Executive. For purposes of clauses (v), (vi) and (vii) above, no act or
failure to act on the part of Executive shall be considered “willful” unless it is done, or omitted to be done, by
Executive in bad faith or without reasonable belief that Executive’s action or omission was in the best interests of Parent
or the Company.

 

    	 	-4-	 

     

    

 

(g)         The Executive’s “Disability” shall be deemed to have occurred only if, as a result of his incapacity
due to physical or mental illness, Executive is considered disabled under the Company’s or Parent’s long-term disability
insurance plans.

 

(h)         For purposes of this Agreement, “Good Reason” shall mean if Executive resigns from employment with Parent or
the Company prior to the end of the Employment Period as a result of one or more of the following reasons: (i) any material breach
by Parent or the Company of this Agreement including a reduction in Executive’s Base Salary or target Annual Bonus opportunity
or a material reduction in Executive’s employee benefits in the aggregate under this Agreement, (ii) a material reduction
or diminution of Executive’s duties, authority or responsibilities (including any change in his reporting requirements),
or (iii) a material change in Executive’s principal place of employment to a location more than 25 miles outside of Chicago,
Illinois. Notwithstanding the above, the occurrence of any of the events described in (i), (ii) or (iii) above will not constitute
a “Good Reason” unless Executive gives Parent written notice, within sixty (60) calendar days after the occurrence
of any such events that such circumstances constitute “Good Reason,” and Parent or the Company thereafter fails to
cure such circumstances within 30 days after receipt of such notice. The termination of the Employment Period for Cause shall
preclude Executive’s resignation with Good Reason.

 

(i)          Executive shall not be required to mitigate the severance benefits contemplated by this Agreement, nor will any earnings that
Executive may receive from any other source reduce any such severance benefits.

 

5.           Confidential Information.

 

(a)         Executive acknowledges that the continued success of Parent, the Company and their Subsidiaries and affiliates, depends upon the
use and protection of a large body of confidential and proprietary information. All of such confidential and proprietary information
now existing or to be developed in the future will be referred to in this Agreement as “Confidential Information.”
Confidential Information will be interpreted as broadly as possible to include all information of any sort (whether merely remembered
or embodied in a tangible or intangible form) that is (i) related to Parent’s, the Company’s or their Subsidiaries’
or affiliates’ current or potential business, and (ii) is not generally or publicly known. Confidential Information
includes, without specific limitation, the information, observations and data obtained by him whether before or after the date
of this Agreement concerning the business and affairs of Parent, the Company and their Subsidiaries and affiliates, information
concerning acquisition opportunities in or reasonably related to Parent, the Company’s or their Subsidiaries’ or affiliates’
business or industry of which Executive becomes aware, the persons or entities that are current, former or prospective business
relations, as well as development, transition and transformation plans, methodologies and methods of doing business, strategic,
marketing and expansion plans, including plans regarding planned and potential sales, financial and business plans, employee lists
and telephone numbers, locations of sales agents, new and existing programs and services, prices and terms, merchant service,
integration processes, requirements and costs of providing service, support and equipment. Therefore, Executive agrees that he
shall not disclose to any unauthorized person or use for his own account any of such Confidential Information without the Board’s
prior written consent, unless and to the extent that any Confidential Information (i) becomes generally known to and available
for use by the public other than as a result of Executive’s acts or omissions to act, or (ii) is required to be disclosed
pursuant to any applicable law or court order. Executive agrees to deliver to Parent at the end of the Employment Period, or at
any other time the Board may request in writing, all memoranda, notes, plans, records, reports and other documents (and copies
thereof) relating to the business of Parent, the Company or their Subsidiaries or affiliates (including, without limitation, all
Confidential Information) that he may then possess or have under his control.

 

    	 	-5-	 

     

    

 

(b)         During the Employment Period, Executive shall not use or disclose any confidential information or trade secrets, if any, of any
former employers or any other person to whom Executive has an obligation of confidentiality, and shall not bring onto the premises
of Parent, the Company or their Subsidiaries or affiliates any unpublished documents or any property belonging to any former employer
or any other person (other than Target) to whom Executive has an obligation of confidentiality unless consented to in writing
by the former employer or person. Executive shall use in the performance of his duties only information that is (i) generally
known and used by persons with training and experience comparable to Executive’s and that is (x) common knowledge in
the industry or (y) is otherwise legally in the public domain, (ii) otherwise provided or developed by Parent, the Company
or their Subsidiaries or affiliates, or (iii) in the case of materials, property or information belonging to any former employer
or other person to whom Executive has an obligation of confidentiality, approved for such use in writing by such former employer
or person. If at any time during employment with Parent, the Company or any Subsidiary, Executive believes he is being asked to
engage in work that will, or will be likely to, jeopardize any confidentiality or other obligations Executive may have to former
employers or other persons, Executive shall immediately advise the Board so that Executive’s duties can be modified appropriately.

 

(c)         Executive shall immediately notify the Board of any intended or unintended, unauthorized disclosure or use of any trade secrets
or Confidential Information by Executive or any other person or entity of which Executive becomes aware. Executive shall cooperate
fully with the Company in the procurement of any protection of Parent or the Company’s rights to or in any of the trade
secrets or Confidential Information.

 

(d)         Executive understands that Parent, the Company and their Subsidiaries and affiliates will receive from third parties confidential
or proprietary information (“Third Party Information”) subject to a duty on Parent’s, the Company’s
and their Subsidiaries’ and affiliates’ part to maintain the confidentiality of such information and to use it only
for certain limited purposes. During the Employment Period and thereafter, and without in any way limiting the provisions of Section 5(a)
above, Executive will hold Third Party Information in the strictest confidence and will not disclose to anyone (other than
personnel of Parent, the Company or their Subsidiaries and affiliates who need to know such information in connection with their
work for Parent, the Company or such Subsidiaries and affiliates) or use, except in connection with his work for Parent, the Company
or their Subsidiaries and affiliates, Third Party Information unless expressly authorized by the Board’s written consent.

 

6.           Intellectual Property, Inventions and Patents. Executive acknowledges that all discoveries, concepts, ideas, inventions,
innovations, improvements, developments, methods, designs, analyses, drawings, reports, patent applications, copyrightable work
and mask work (whether or not including any Confidential Information) and all registrations or applications related thereto, all
other proprietary information and all similar or related information (whether or not patentable) which relate to Parent’s,
the Company’s or any of their Subsidiaries’ actual or anticipated business, research and development or existing or
future products or services and which are conceived, developed or made by Executive (whether alone or jointly with others) while
employed by Parent, the Company or any Subsidiary, whether before or after the date of this Agreement (“Work Product”),
shall be deemed to be “work made for hire” (as defined in the Copyright Act, 17 U.S.C.A. § 101 et seq.,
as amended) and belong exclusively to Parent, the Company or such Subsidiary. Executive shall promptly disclose such Work Product
to the Board and, at Parent’s expense, perform all actions reasonably requested by the Board (whether during or after the
Employment Period) to establish and confirm such title and ownership (including, without limitation, assignments, consents, powers
of attorney and other instruments).

 

    	 	-6-	 

     

    

 

7.           Non-Compete, Non-Solicitation.

 

(a)         In further consideration of the compensation to be paid to Executive hereunder, Executive acknowledges that during the course
of his employment with Parent, the Company and their Subsidiaries (including predecessors of such entities) Executive has and
shall become familiar with Parent’s, the Company’s and their Subsidiaries’ trade secrets and with other Confidential
Information concerning Parent, the Company and their Subsidiaries and affiliates and that his services have been and shall be
of special, unique and extraordinary value to Parent, the Company and their Subsidiaries and affiliates, and, therefore, Executive
agrees that, (i) during the Employment Period and for twenty-four (24) months thereafter (the “Noncompete Period”),
Executive shall not, directly or indirectly, either for himself or for any other person, partnership, corporation, company or
other entity, own any interest in, manage, control, participate in, consult with, render services for, or in any other manner
engage in any business or enterprise which (i) is engaged in the business of developing, marketing, licensing and maintaining
payment, security and encryption software solutions, including payment acceptance, authorization, settlement and reconciliation
of funds functionality, or (ii) provides payment processing services to merchants (provided directly and indirectly through independent
sales organizations and agents) and related operations, including, but not limited to, facilitating the exchange of information
and funds between merchants and cardholders’ financial institutions, providing end-to-end electronic payment processing
services to merchants, including merchant set-up and training, transaction authorization and electronic draft capture, clearing
and settlement, merchant accounting, merchant assistance and support and risk management or provides products, or services which
are similar to or compete with any other products or services of Parent, the Company or any of their Subsidiaries (or any products
or services Parent, the Company or any of their Subsidiaries are currently in the process of developing), as of the expiration
date or earlier termination of the Employment Period, anywhere within the United States of America (any of the foregoing, a “Competitive
Activity”). Notwithstanding the foregoing, if the Employment Period is terminated by Parent without Cause or by Executive
with Good Reason, during the Noncompete Period Executive may, directly or indirectly, either for himself or for any other person,
partnership, corporation, company or other entity, own any interest in, manage, control, participate in, consult with, render
services for, or in any other manner engage in any business or enterprise that conducts business activities substantially similar
to the business activities of Target immediately prior to the Merger and exclusively with Parent and its Subsidiaries, in which
case the Executive and Parent (or its applicable subsidiary) shall use reasonable commercial efforts to establish and maintain
a business relationship substantially similar to, and on the basis of reasonably the same terms and conditions of, the business
relationship between Target and Parent immediately prior to the Merger. For purposes of this Agreement, “participate”
includes any direct or indirect interest in any enterprise, whether as an officer, director, employee, partner, sole proprietor,
agent, representative, independent contractor, executive, franchisor, franchisee, creditor, owner or otherwise; provided,
that the foregoing activities shall not include the passive ownership (i.e., Executive does not directly or indirectly participate
in the business or management of the applicable entity) of less than two (2)% of the stock of a publicly-traded corporation or
any ownership of the stock of Parent or its affiliates.

 

(b)         During the Employment Period and for twenty-four (24) months thereafter, Executive shall not directly or indirectly through another
person or entity (i) induce or attempt to induce any employee of Parent, the Company or any Subsidiary to leave the employ of
Parent, the Company or such Subsidiary, or in any way interfere with the relationship between Parent, the Company or any Subsidiary
and any employee thereof, (ii) hire any person who was an employee of Parent, the Company or any Subsidiary at any time during
the twelve (12) months preceding such hiring, (iii) induce or attempt to induce any merchant, agent, independent sales organization,
or other business relation of Parent, the Company or any Subsidiary to cease doing business with Parent, the Company or such Subsidiary,
or in any way interfere with the relationship between any such merchant, agent, independent sales organization, or other business
relation and Parent, the Company or any Subsidiary (including, without limitation, making any negative or disparaging statements
or communications about Parent, the Company or their Subsidiaries) or (iv) service, engage in business with or provide products
or services to any merchant, agent, independent sales organization, or other business relation of Parent, the Company or any Subsidiary
with respect to any product or service provided or rendered by Parent, the Company or any of their Subsidiaries or which Parent,
the Company or any of their Subsidiaries is in the process of developing, as of the expiration date or earlier termination of
the Employment Period. For purposes of this Section 7(b), the term “employee” shall include consultants and
independent contractors of Parent, the Company and their Subsidiaries.

 

    	 	-7-	 

     

    

 

(c)        
If, at the time of enforcement of Section 5, 6 or 7, a court shall hold that the duration, scope or area
restrictions stated herein are unreasonable under circumstances then existing, the parties agree that the maximum duration, scope
or area reasonable under such circumstances shall be substituted for the stated duration, scope or area and that the court shall
be allowed to revise the restrictions contained herein to cover the maximum period, scope and area permitted by law. Executive
acknowledges that the restrictions contained in this Section 7 are reasonable and that he has reviewed the provisions of
this Agreement with his legal counsel.

 

(d)       
In the event of the breach or a threatened breach by Executive of any of the provisions of this Section 7, Parent and the
Company would suffer irreparable harm, and in addition and supplementary to other rights and remedies existing in its favor, each
of Parent and the Company shall be entitled to specific performance and/or injunctive or other equitable relief from a court of
competent jurisdiction in order to enforce or prevent any violations of the provisions hereof (without posting a bond or other
security). In addition, in the event of an alleged breach or violation by Executive of this Section 7, the Noncompete Period
or other restricted period shall be tolled until such breach or violation has been duly cured.

 

(e)        
Executive agrees that the aforementioned covenants are reasonable with respect to their duration, geographical area and scope.
In particular, Executive acknowledges and agrees that the geographic scope of these restrictions is necessary to protect the goodwill
and Confidential Information of Parent, the Company and their Subsidiaries.

 

8.           Executive’s Representations. Executive hereby represents and warrants to Parent and the Company that (i) the execution,
delivery and performance of this Agreement by Executive do not and shall not conflict with, breach, violate or cause a default
under any contract, agreement, instrument, order, judgment or decree to which Executive is a party or by which he is bound, (ii) Executive
is not a party to or bound by any employment agreement, noncompete agreement or confidentiality agreement with any other person
or entity, and (iii) upon the execution and delivery of this Agreement by Parent and the Company, this Agreement shall be the
valid and binding obligation of Executive, enforceable in accordance with its terms. Executive hereby acknowledges and represents
that he has consulted with independent legal counsel regarding his rights and obligations under this Agreement and that he fully
understands the terms and conditions contained herein.

 

9.           Attorney’s Fees. The Company agrees to promptly pay all fees and charges of the Executive’s attorneys reasonably
incurred by the Executive in connection with the negotiation and execution of this Employment Agreement and related Inducement
Award, up to an amount not to exceed twenty-five thousand dollars ($25,000).

 

    	 	-8-	 

     

    

 

10.         Survival. Sections 4 through 25 (other than Section 23) shall survive and continue in full force in
accordance with their terms notwithstanding the termination of the Employment Period.

 

11.         Notices. Any notice provided for in this Agreement will be in writing and will be either personally delivered, delivered
by certified mail (return receipt requested), sent by reputable overnight courier service (charges prepaid), delivered by means
of electronic mail (with hard copy sent to the recipient by reputable overnight courier service (charges prepaid) that same day),
or transmitted by facsimile (transmission confirmed) to the address, facsimile number or electronic mail address set forth below
or at any address listed in the Company’s records, or at such address or to the attention of such other person as the recipient
party has specified by prior written notice to the sending party. Notices will be deemed to have been given hereunder when delivered
personally, sent by facsimile (with receipt confirmed) or electronic mail on a business day during regular business hours of the
recipient (or, if not, on the next succeeding business day), three (3) days after deposit in the U.S. mail and one day after deposit
with a reputable overnight courier service.

 

Notices
to Executive:

 

Michael
J. Mertz

313
North Racine

Chicago,
IL 60607

Phone:
(312) 644-2744

Michaelmertz@hotmail.com

  

Notices
to Parent or the Company:

 

CardConnect,
LLC

1000
Continental Drive

Suite
300

King
of Prussia, PA 19406

Attention:
Chief Executive Officer

Facsimile:
(216) 682-2401

 

or
such other address or to the attention of such other person as the recipient party shall have specified by prior written notice
to the sending party. Any notice under this Agreement shall be deemed to have been given when so delivered, sent, mailed or faxed.

 

12.         Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any
respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect
any other provision of this Agreement or any action in any other jurisdiction, but this Agreement shall be reformed, construed
and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

 

    	 	-9-	 

     

    

 

13.         Complete Agreement. This Agreement, those documents expressly referred to herein and other documents of even date herewith
embody the complete agreement and understanding among the parties and supersede and preempt any prior understandings, agreements
or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way. Nothing
contained herein shall diminish or abrogate (i) Executive’s rights under any indemnification agreements between Parent,
the Company or any of their Subsidiaries on the one hand, and Executive on the other, (ii) the provisions of any such entity’s
charter, bylaws, memorandum and articles of association, agreement, policies, resolutions or similar documents or statements which
provide for indemnification, advancement of expenses, or contribution, or relieve Executive from fiduciary duties or standards
of care, (iii) any agreement with a third party, or (iv) Executive’s rights under any insurance policy or similar arrangement.

 

14.         No Strict Construction. The language used in this Agreement shall be deemed to be the language chosen by the parties hereto
to express their mutual intent, and no rule of strict construction shall be applied against any party.

 

15.         Counterparts. This Agreement may be executed in separate counterparts (including by means of facsimile), each of which
is deemed to be an original and all of which taken together constitute one and the same agreement.

 

16.         Successors and Assigns. This Agreement will be binding upon and inure to the benefit of the Company and any successor to
the Company, including without limitation any persons acquiring directly or indirectly all or substantially all of the business
or assets of the Company whether by purchase, merger, consolidation, reorganization or otherwise (and such successor shall thereafter
be deemed the “Company” for the purposes of this Agreement). This Agreement will inure to the benefit of and be enforceable
by Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees and legatees,
but otherwise will not otherwise be assignable, transferable or delegable by Executive. This Agreement is personal in nature and
neither of the parties hereto shall, without the consent of the other, assign, transfer or delegate this Agreement or any rights
or obligations hereunder except as otherwise expressly provided in this Section 16.

 

17.         Choice of Law. All issues and questions concerning the construction, validity, enforcement and interpretation of this Agreement
and the exhibits and schedules hereto shall be governed by, and construed in accordance with, the laws of the Commonwealth of
Pennsylvania, without giving effect to any choice of law or conflict of law rules or provisions (whether of the Commonwealth of
Pennsylvania or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the Commonwealth
of Pennsylvania.

 

18.         Amendment and Waiver. The provisions of this Agreement may be amended or waived only with the prior written consent of
the Company (as approved by the Board) and Executive, and no course of conduct or course of dealing or failure or delay by any
party hereto in enforcing or exercising any of the provisions of this Agreement (including, without limitation, the Company’s
right to terminate the Employment Period for Cause or, except as otherwise stated herein, Executive’s right to terminate
this Agreement for Good Reason) shall affect the validity, binding effect or enforceability of this Agreement or be deemed to
be an implied waiver of any provision of this Agreement.

 

19.         Insurance. The Company may, at its discretion, apply for and procure in its own name and for its own benefit life and/or
disability insurance on Executive in any amount or amounts considered advisable. Executive agrees to cooperate in any medical
or other examination, supply any information and execute and deliver any applications or other instruments in writing as may be
reasonably necessary to obtain and constitute such insurance. Executive hereby represents that he has no reason to believe that
his life is not insurable at rates now prevailing for healthy men of his age.

 

    	 	-10-	 

     

    

 

20.         Taxes. Parent, the Company and their Subsidiaries shall be entitled to deduct or withhold from any amounts owing from Parent,
the Company or any of their Subsidiaries to Executive any federal, state, local or foreign withholding taxes, excise tax, or employment
taxes imposed with respect to Executive’s compensation or other payments from Parent, the Company or any of their Subsidiaries
or Executive’s ownership interest in Parent or the Company (including, without limitation, wages, bonuses, dividends, the
receipt or exercise of equity options and/or the receipt or vesting of restricted equity).

 

21.         Dispute Resolution. Except with respect to disputes or claims under Sections 5, 6 or 7 hereof (which
may be pursued in any court of competent jurisdiction and with respect to which each party shall bear the cost of its own attorney’s
fees and expenses except as otherwise required by applicable law), this Agreement and the rights of any and all parties hereto
pursuant hereto shall be settled by arbitration in Philadelphia, Pennsylvania, before three (3) arbitrators pursuant to the National
Rules for the Resolution of Employment Disputes of the American Arbitration Association (the “Association”).
Arbitration may be commenced at any time by any party hereto giving written notice to each other party to a dispute that such
dispute has been referred to arbitration under this Section 20. Each of the parties hereto shall select one (1) arbitrator
within twenty (20) days after the date of the notice referred to above and the third arbitrator shall be a state or federal court
judge selected by the two arbitrators appointed by the parties hereto, but if the two arbitrators do not so agree within twenty
(20) days after their selection by the parties hereto, the selection shall be made pursuant to the rules of, and from the panels
of arbitrators maintained by, the Association. Any award rendered by the arbitrators shall be conclusive and binding upon the
parties hereto; provided, however, that any such award shall be accompanied by a written opinion of the arbitrators
giving the reasons for the award. This provision for arbitration shall be specifically enforceable by the parties and the decision
of the arbitrators in accordance herewith shall be final and binding and there shall be no right of appeal therefrom. Each party
shall pay its own expenses of arbitration and the expenses of the arbitrators shall be equally shared; provided, however,
that if in the opinion of the arbitrators any claim for indemnification or any defense or objection thereto was unreasonable,
the arbitrators may assess, as part of their award, all or any part of the arbitration expenses of the other party (including
reasonable attorneys’ fees) and of the arbitrators against the party raising such unreasonable claim, defense or objection.
To the extent that arbitration may not be legally permitted hereunder and the parties to any dispute hereunder may not at the
time of such dispute mutually agree to submit such dispute to arbitration, the resolution of such dispute shall be subject to
the other provisions of this Agreement. Nothing contained in this Section 20 shall prevent the parties from settling any
dispute by mutual agreement at any time.

 

22.         Waiver of Jury Trial. As a specifically bargained for inducement for each of the
parties hereto to enter into this Agreement (after having the opportunity to consult with counsel), each
party hereto expressly waives the right to trial by jury in any lawsuit or proceeding relating to or arising in any way from this
Agreement or the matters contemplated hereby.

 

23.         Corporate Opportunity. During the Employment Period, Executive shall submit to the Board all business, commercial and investment
opportunities or offers presented to Executive or of which Executive becomes aware which relate to the business of providing payment
processing services to merchants (provided directly and indirectly through independent sales organizations and agents) and related
operations, including, but not limited to, facilitating the exchange of information and funds between merchants and cardholders’
financial institutions, providing end-to-end electronic payment processing services to merchants, including merchant set-up and
training, transaction authorization and electronic draft capture, clearing and settlement, merchant accounting, merchant assistance
and support and risk management or provides products at any time during the Employment Period (“Corporate Opportunities”).
Unless approved by the Board, Executive shall not accept or pursue, directly or indirectly, any Corporate Opportunities on Executive’s
own behalf.

 

    	 	-11-	 

     

    

 

24.         Executive’s Cooperation. During the Employment Period and for one (1) year thereafter, Executive shall, subject to
the Company reimbursing Executive for out-of-pocket expenses, cooperate with Parent, the Company and their Subsidiaries in any
internal investigation or administrative, regulatory or judicial proceeding as reasonably requested by the Company (including,
without limitation, Executive being available to the Company upon reasonable notice for interviews and factual investigations,
appearing at the Company’s request to give testimony without requiring service of a subpoena or other legal process, volunteering
to the Company all pertinent information and turning over to the Company all relevant documents which are or may come into Executive’s
possession, all at times and on schedules that are reasonably consistent with Executive’s other permitted activities and
commitments).

 

25.         Section 409A Compliance.

 

(a)         The intent of the parties is that payments and benefits under this Agreement comply with Internal Revenue Code Section 409A and
the regulations and guidance promulgated thereunder (collectively “Code Section 409A”) and, accordingly, to
the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith. In no event whatsoever shall
the Company be liable for any additional tax, interest or penalty that may be imposed on Executive by Code Section 409A or damages
for failing to comply with Code Section 409A.

 

(b)        
A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for
the payment of any amounts or benefits upon or following a termination of employment unless such termination is also a “separation
from service” within the meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references
to a “termination,” “termination of employment” or like terms shall mean “separation from service.”

 

(c)         
Notwithstanding any other payment schedule provided herein to the contrary, if Executive is deemed on the date of termination
to be a “specified employee” within the meaning of that term under Code Section 409A(a)(2)(B), then each of the following
shall apply:

 

(i)          With regard to any payment that is considered deferred compensation under Code Section 409A payable on account of a “separation
from service,” such payment shall be made on the date which is the earlier of (A) the expiration of the six (6)-month period
measured from the date of such “separation from service” of Executive, and (B) the date of Executive’s death
(the “Delay Period”) to the extent required under Code Section 409A. Upon the expiration of the Delay Period,
all payments delayed pursuant to this Section (whether they would have otherwise been payable in a single sum or in installments
in the absence of such delay) shall be paid to Executive in a lump sum, and all remaining payments due under this Agreement shall
be paid or provided in accordance with the normal payment dates specified for them herein; and

 

(ii)         To the extent that any benefits to be provided during the Delay Period is considered deferred compensation under Code Section
409A provided on account of a “separation from service,” and such benefits are not otherwise exempt from Code Section
409A, Executive shall pay the cost of such benefits during the Delay Period, and the Company shall reimburse Executive, to the
extent that such costs would otherwise have been paid by the Company or to the extent that such benefits would otherwise have
been provided by the Company at no cost to Executive, the Company’s share of the cost of such benefits upon expiration of
the Delay Period, and any remaining benefits shall be reimbursed or provided by the Company in accordance with the procedures
specified herein.

 

    	 	-12-	 

     

    

 

(d)        
For purposes of Code Section 409A, Executive’s right to receive any installment payment pursuant to this Agreement shall
be treated as a right to receive a series of separate and distinct payments.

 

(e)         Notwithstanding any other provision of this Agreement to the contrary, in no event shall any payment under this Agreement that
constitutes “deferred compensation” for purposes of Code Section 409A be subject to offset, counterclaim or recoupment
by any other amount payable to Executive unless otherwise permitted by Code Section 409A.

 

*
* * * *

 

    	 	-13-	 

     

    

 

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

 

	 	CARDCONNECT
    CORP.
	 	 	 
	 	/s/
    Jeffrey Shanahan
	 	By:	Jeffrey
    Shanahan
	 	Its:	Chief
    Executive Officer and President

 

	 	CARDCONNECT,
    LLC
	 	 	 
	 	/s/
    Jeffrey Shanahan
	 	By:	Jeffrey
    Shanahan
	 	Its:	Chief
    Executive Officer and President

 

 

 

 

 

{Employment
Agreement - Michael J. Mertz}

 

     

     

    

 

	 	/s/
    Michael J. Mertz
	 	Michael
    J. Mertz

 

 

 

 

 

 

 

 

{Employment
Agreement - Michael J. Mertz}

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