Document:

Execution Version

  

Amendment,
Guarantee and Waiver Agreement

 

This Amendment, Guarantee and Waiver Agreement
(this “Agreement”) is made by each of Universal Business Payment Solutions Acquisition Corporation, (“Parent”),
Ten Lords, Ltd (“Ten Lords”) and JetPay, LLC (“JetPay”) as of December 28, 2012. Reference
is made to that certain Loan Agreement, dated as of May 31, 2010 (the “Loan Agreement”) by and among Ten Lords,
Providence Interactive Capital, LLC, JetPay, JetPay ISO Services, LLC, JetPay Merchant Services, LLC, JT Holdings, L.P., JT Holdings
Management, LLC (together with JetPay, JetPay ISO Services, LLC, JetPay Merchant Services, LLC and JT Holdings, L.P., the “JetPay
Companies”), WLES, Ltd. and Trent Voigt. Capitalized terms used but not otherwise defined herein shall have the meanings
ascribed to them in the Loan Agreement.

 

WHEREAS, JetPay has agreed to an acquisition
by a wholly-owned subsidiary of Parent of all of JetPay’s outstanding equity interests (the “JetPay Sale”),
pursuant to an Agreement and Plan of Merger by and among Parent, JP Merger Sub, LLC, JetPay, WLES, L.P.., and Trent Voigt (the
“Merger Agreement”);

 

WHEREAS, in order to induce the Paine Companies
to consent to transactions contemplated by the Merger Agreement, the parties to the Loan Agreement desire to modify certain provisions
of the Loan Agreement, the Redemption Note, the Pledge Agreement and the Security Agreement (collectively, the “Loan Documents”),
and Parent desires to guarantee certain of JetPay’s obligations under the Loan Documents;

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.          Adjustment
to Balance Due; Tax Gross-Up Payment.

 

(a) The parties acknowledge that
as of the date of this Agreement, but before giving effect to the transactions contemplated in this Agreement, the balance of principal
and accrued, unpaid interest due under the Redemption Note (the “Note Balance”) is $8,331,368.69. Contingent
and effective upon consummation of the Merger Agreement, the Note Balance shall be immediately and automatically increased by $10,000
to reimburse attorneys’ fees the Paine Companies have incurred and reasonably anticipate incurring in connection with the
transactions contemplated in this Agreement.

 

    	 

    	 

    

 

(b ) In addition, JetPay shall cause
a cash payment to be made, on or before April 15 of each calendar year following a calendar year in which payments are made on
the Redemption Note, in the amount, calculated on a grossed up after-tax basis and determined separately for each separate taxpayer,
of any increase in actual tax liability of the owners of Ten Lords, Ltd. and Providence Interactive Capital, LLC (collectively,
the “Payees”) resulting from (a) any increase in the capital gains tax rate over 15%, (b) the 3.8% surtax on
investment income and gains imposed by Internal Revenue Code Section 1411, and (c) any other increase in taxes or similar obligations
the owners of the Payees will be required to pay as a result of the Redemption Note being paid after December 31, 2012. Prior to
or on the date such tax payments are made, the Payees shall provide reasonable documentation to JetPay evidencing such increases
in actual tax liability. A written or emailed statement signed by an accountant, attorney or another professional tax advisor familiar
with the Payees’ owners’ tax filings and stating the amount of the increase in the Payees’ owners’ actual
tax liability as a result of the matters discussed in this paragraph shall be sufficient for this purpose. The purpose of this
provision of this Section 1 is to put the owners of the Payees in the same after-tax economic position they would have been in
if the Redemption Note was paid and taxed under 15% capital gains rates and income tax rates applicable under the tax law on or
before December 31, 2012.

 

2.          Minimum
Payment Amount. Contingent and effective upon consummation of the Merger Agreement, the JetPay Companies shall pay to the Payees,
as a partial payment of the Note Balance, an amount equal to the greater of:

 

(a)   the
portion of the Note Balance, as adjusted pursuant to Section 1(a) above, that exceeds $6,000,000; or

 

(b)   the
Note Balance, as adjusted pursuant to Section 1(a) above, minus the product of $6.08 multiplied by the Excess Redemption Amount.
The “Excess Redemption Amount” shall be equal to the number of shares of Parent common stock in excess of 6,385,482
shares that are to be redeemed for pro rata shares of the funds being held in a trust account established in connection with Parent’s
initial public offering.

 

3.          Consent
and Waiver. Notwithstanding the provisions of Article 8 of the Loan Agreement, contingent and effective upon consummation of
the Merger Agreement the Paine Companies hereby consent to the JetPay Sale, the entry by JetPay into the Merger Agreement and the
performance of any of the transactions contemplated thereby, and the Paine Companies hereby waive compliance with the Loan Agreement
to the extent the JetPay Sale, the entry by JetPay into the Merger Agreement and the performance of any of the transactions contemplated
thereby are inconsistent with the Loan Agreement.

 

4.          Limited
Guarantee.

 

(a) Contingent and effective upon consummation
of the Merger Agreement, Parent unconditionally and irrevocably, as a primary obligor and not only a surety, guarantees the due
and punctual payment, performance and discharge of each of the JetPay Companies’ obligations under the Loan Documents and
under this Agreement (the “Obligations”). In no event shall Parent be deemed to be obligated to pay any amounts
in excess of the amounts currently outstanding under the Redemption Note (as modified pursuant to Section 1 above) plus any accrued
but unpaid interest thereon. This is an absolute, unconditional, present, primary and continuing guarantee of payment and not only
of collectability.

 

    	 

    	 

    

 

(b) In the event that any payment to Ten
Lords in respect of any Obligations is rescinded or must otherwise be returned for any reason whatsoever, Parent shall remain liable
hereunder with respect to such Obligations as if such payment had not been made.

 

(c) Such guarantee will remain in full force
and effect until such time as the Obligations have been satisfied in full.

 

5.          Amendment.
Contingent and effective upon consummation of the Merger Agreement, the Redemption Note shall be modified as follows:

 

(a)          Interest
shall accrue on the Redemption Note at a rate of 9.5% per annum for the first 180 days after consummation of the transactions contemplated
in this Agreement, and 13.5% per annum for so long thereafter as any amounts remain outstanding (subject to other provisions of
the Redemption Note imposing a “Past Due Rate”).

 

(b)          The Redemption
Note shall be due and payable in full on the first anniversary of the date of this Agreement. The JetPay Companies shall use commercially
reasonable efforts to cause all amounts due and payable under the Redemption Note to be repaid as soon as commercially practicable.

 

6.          Conversion
Option. The Payees may, at their option by one or more written notices (each a “Conversion Notice”) delivered
to Parent at any time or times before repayment of the Redemption Note in full, elect to convert the then-existing Note Balance
into shares of common stock of Parent. Each Conversion Notice shall state the portion of the Redemption Note the Payees wish to
convert (the “Conversion Amount”). Upon receipt of a Conversion Notice, (a) the Note Balance shall be deemed
immediately and automatically reduced by the Conversion Amount and (b) Parent shall immediately issue or cause to be issued to
the Payees or their designee a number of shares of common stock of Parent equal to the quotient of the Conversion Amount divided
by the Conversion Price. The “Conversion Price” shall be equal to $6.00 per share unless an Event of Default
(as that term is defined in the Loan Agreement) has occurred and has not been cured, in which case the Conversion Price shall be
equal to the lower of: (i) $6.00 per share and (ii) such lower price per share as was the average closing price of shares of Parent
common stock on any national stock exchange on which such shares trade for the previous ten trading days prior to the date Payees
deliver a Conversion Notice. Parent shall grant the Payees certain registration rights as set forth on Exhibit A attached hereto.

 

    	 

    	 

    

 

7.          Conflict
with the Loan Documents. Except as set forth herein, all other provisions of the Loan Documents shall remain in full force
and effect. To the extent any provision of this Agreement is inconsistent with the Loan Documents, this Agreement will govern and
control.

 

8.          Binding
Effect. Except as otherwise provided in this Agreement to the contrary, this Agreement shall be binding upon and inure to the
benefit of the Parties and their respective successors and permitted assigns.

 

9.          Governing
Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Texas.

 

10.         Counterparts.
This Agreement may be executed in two or more counterparts for the convenience of the parties hereto, each of which shall be deemed
an original and all of which together will constitute one and the same instrument. Delivery of an executed counterpart of a signature
page to this Agreement by facsimile or portable document format shall be effective as delivery of a mutually executed counterpart
to this Agreement.

 

11.         Attorneys’
Fees. In the event of any dispute among the parties to this Agreement regarding its interpretation or a claim brought by a
party to enforce its rights under this Agreement, the losing party in any such dispute or claim shall be responsible for the reasonable
attorneys’ fees incurred by the prevailing party in connection with such dispute or claim.

 

[THE REST OF THIS PAGE IS LEFT INTENTIONALLY
BLANK]

 

    	 

    	 

    

 

IN WITNESS WHEREOF, and intending to
be legally bound, the undersigned have signed this Agreement as of the date first written above.

 

	 	Universal business payment
	 	solutions acquisition
	 	corporation
	 	 
	 	By:	 
	 	Name: 	Bipin C. Shah
	 	Title: 	Chief Executive Officer
	 	 
	 	JEtpay, llc
	 	 
	 	By:	 
	 	Name: 	Trent Voigt
	 	Title: 	CEO
	 	 
	 	TEN LORds LTD
	 	 
	 	by:	 
	 	Name:
	 	Title:

 

    	 

    	 

    

 

REGISTRATION RIGHTS 

 

1.          Definitions.

 

“Common Stock” means (i)
shares of the Common Stock, par value $0.001 per share, of the Company and (ii) any shares of capital stock of the Company issued
or issuable with respect to securities referred to in clause (i) above by way of a stock dividend or distribution payable thereon
or stock split, reverse stock split, recapitalization, reclassification, reorganization, exchange, subdivision or combination thereof.

 

“Company” means Universal
Business Payment Solutions Acquisition Corporation, a Delaware corporation.

 

“Damages” has the meaning
set forth in Section 6(a) hereof.

 

“Demand Registration” has
the meaning set forth in Section 4(a) hereof.

 

“Exchange Act” means the
Securities Exchange Act of 1934, as amended from time to time.

 

“Incidental Registration”
has the meaning set forth in Section 3(a) hereof.

 

“Investor” means a holder
of Registrable Securities who is not an “affiliate” of the Company, as the term “affiliate” is defined
under Rule 144 (or any similar provisions then in force) under the Securities Act.

 

“Prospectus” means the
prospectus included in any Registration Statement, as amended or supplemented by any prospectus supplement with respect to the
terms of the offering of any portion of the Registrable Securities covered by such Registration Statement and all other amendments
and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference in such Prospectus.

 

“Registration Expenses”
means (i) all registration and filing fees, (ii) fees and expenses of compliance with any securities or blue sky laws (including
reasonable fees and disbursements of counsel in connection with blue sky qualifications of the securities registered), (iii) printing
expenses, (iv) internal expenses of the Company (including, without limitation, all salaries and expenses of its officers and employees
performing legal or accounting duties), (v) reasonable fees and disbursements of counsel for the Company and customary fees and
expenses for independent certified public accountants retained by the Company (including the expenses relating to any comfort letters
or costs associated with the delivery by independent certified public accountants of a comfort letter or comfort letters requested
pursuant to Section 5(g) hereof), (vi) reasonable fees and expenses of any special experts retained by the Stockholder in connection
with such registration, (vii) reasonable fees and expenses of one counsel for all of the holders of Registrable Securities participating
in the offering selected by the holders of the majority of Registrable Securities to be sold for the account of all holders of
Registrable Securities in the offering, (viii) fees and expenses in connection with any review of underwriting arrangements by
the Financial Industry Regulatory Authority (“FINRA”) including fees and expenses of any “qualified independent
underwriter” and (ix) fees and disbursements of underwriters customarily paid by issuers or sellers of securities, but shall
not include any underwriting fees, discounts or commissions attributable to the sale of Registrable Securities, or any out-of-pocket
expenses (except as set forth in clause (vii) above) of the holders of Registrable Securities to be sold in the offering (or the
agents who manage their accounts) or any fees and expenses of underwriter’s counsel.

 

    	 

    	 

    

 

“Registration Statement”
means any registration statement of the Company which covers any of the Registrable Securities pursuant to the terms hereof, including
the Prospectus, amendments and supplements to such Registration Statement, including post-effective amendments, all exhibits and
all material incorporated by reference in such Registration Statement.

 

“Registrable Securities”
has the meaning set forth in Section 2 hereof.

 

“Special Registration Statement”
means (i) a registration statement on Forms S-8 or S-4 or any similar or successor form or any other registration statement relating
to an exchange offer or an offering of securities solely to the Company’s security holders, employees, directors, consultants
or other business associates or (ii) a registration statement registering a Unit Offering.

 

“Stockholder” means one
or both of the Payees (as that term is defined in the Amendment, Guarantee and Waiver Agreement to which this Registration Rights
exhibit is attached), or the other person(s) or entity(ies) designated by such Payees to be issued shares of Common Stock pursuant
to Section 6 of said Amendment, Guarantee and Waiver Agreement.

 

“Underwritten Registration”
or “Underwritten Offering” means a registration in which securities of the Company are sold to an underwriter
for reoffering to the public.

 

2.          Registrable
Securities. The securities entitled to the benefits set forth herein are the Registrable Securities. As used herein, “Registrable
Securities” means the shares of Common Stock that are issued (or issuable) and outstanding as a result of the Stockholder’s
conversion rights under that certain Amendment, Guarantee and Waiver Agreement by each of the Company, Ten Lords, Ltd and JetPay,
LLC , dated as of December 28, 2012; provided, however, that each share of Common Stock shall cease to be a Registrable
Security when (i) it has been effectively registered under the Securities Act and disposed of in accordance with the registration
statement covering it; (ii) it is distributed to the public pursuant to Rule 144 (or any similar provisions then in force) under
the Securities Act or all shares of Common Stock held by an Investor or its Affiliates are then distributable at one time under
Rule 144 (or any similar provisions then in force) under the Securities Act; or (iii) it has otherwise been transferred and a new
certificate or other evidence of ownership for it not bearing or requiring a legend and not subject to any stop transfer order
has been delivered by or on behalf of the Company and no other restriction on transfer exists under the Securities Act.

 

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3.            Incidental
Registration.

 

(a)          Right
to Include Common Stock. If at any time or from time to time following the date the Company has consummated an Initial Public
Offering the Company at any time proposes to register any of its Common Stock under the Securities Act (other than in connection
with the Initial Public Offering and other than on a Special Registration Statement), whether or not for sale for its own account,
it will each such time, as promptly as practicable following the date of filing with the Commission or other applicable regulatory
authority of a registration statement or similar document with respect to such registration, give written notice (the “Incidental
Registration Notice”) to all holders of Registrable Securities of its intention to register its Common Stock under the
Securities Act, and of such holders’ rights under this Section 3. Upon the written request of any such holders of Registrable
Securities made within five (5) days of the date of the Incidental Registration Notice (which request shall specify the aggregate
number of the Registrable Securities to be registered and will also specify the intended method of disposition thereof), the Company
will effect the registration under the Securities Act of all Registrable Securities which the Company has been so requested to
register by the holders thereof (an “Incidental Registration”), to the extent required to permit the public
disposition (in accordance with such intended methods thereof) of the Registrable Securities to be so registered; provided,
however, that (i) if, at any time after giving written notice of its intention to register shares of Common Stock and prior
to the effective date of the registration statement filed in connection with such registration, the Company shall determine for
any reason not to register the Company’s Common Stock, the Company shall give written notice of such determination to each
holder of Registrable Securities and, thereupon, shall be relieved of its obligation to register any Registrable Securities in
connection with such registration (but not from its obligation to pay the Registration Expenses in connection therewith); (ii)
if a registration requested pursuant to this Section 3 shall involve an underwritten public offering, any holder of Registrable
Securities requesting to be included in such registration may elect, in writing at least five (5) days prior to the effective date
of the registration statement filed in connection with such registration, not to register such securities in connection with such
registration; and (iii) if, at any time after the 180-day or shorter period specified in Section 3(b), the sale of the securities
has not been completed, the Company may withdraw from the registration the Registrable Securities which the Company has been requested
to register and which have not been sold.

 

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(b)          Priority
in Incidental Registrations. If a registration pursuant to Section 3(a) involves an Underwritten Offering and the managing
underwriter advises the Company in writing that, in its opinion, the total number of shares of Common Stock to be included in such
registration, including the Registrable Securities requested to be included pursuant to this Section 3, exceeds the maximum number
of shares of Common Stock specified by the managing underwriter that may be distributed without adversely affecting the price,
timing or distribution of such shares of Common Stock, then the Company shall include in such registration only such maximum number
of Registrable Securities which, in the reasonable opinion of such underwriter or underwriters, can be sold in the following order
of priority: (i) first, all of the shares of Common Stock that the Company proposes to sell for its own account, if any, (ii)
second, all of the shares of Common Stock being registered by holder(s) of Registrable Securities pursuant to a Demand Registration
(as hereinafter defined), and (iii) third, the Registrable Securities of the holder(s) of Registrable Securities requested to be
included in such Incidental Registration. To the extent that shares of Common Stock to be included in the Incidental Registration
must be allocated among the holder(s) of Registrable Securities pursuant to clause (iii) above, such shares shall be allocated
pro rata among the holder(s) of Registrable Securities based on the number of shares of Common Stock that such holder(s) of Registrable
Securities shall have requested to be included therein. Notwithstanding the foregoing, if an Incidental Registration is an Underwritten
Offering, the managing underwriter or underwriters may select shares for inclusion, or exclude shares completely, in such Incidental
Registration on a basis other than a pro rata basis if, in the reasonable opinion of such underwriter or underwriters, selection
on such other basis, or inclusion of such shares, would be material to the success of the offering.

 

(c)          Expenses.
The Company will pay all Registration Expenses in connection with any registration of Registrable Securities requested pursuant
to this Section 3.

 

(d)          Liability
for Delay. The Company shall not be held responsible for any delay in the filing or processing of a registration statement
which includes any Registrable Securities due to requests by holders of Registrable Securities pursuant to this Section 3 nor for
any delay in requesting the effectiveness of such registration statement.

 

(e)          Participation
in Underwritten Registrations. No holder of Registrable Securities may participate in any Underwritten Registration hereunder
unless such holder (i) agrees to sell such holder’s Common Stock on the basis provided in any underwriting arrangements approved
by the persons who have selected the underwriter and (ii) accurately completes in a timely manner and executes all questionnaires,
powers of attorney, escrow agreements, underwriting agreements and other documents customarily required under the terms of such
underwriting arrangements.

 

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4.            Demand
Registration.

 

(a)          Right
to Demand Registration. Subject to Section 4(b) below, the Stockholder shall be entitled to make ua written request (“Demand
Registration Request”) to the Company for registration with the Commission under and in accordance with the provisions
of the Securities Act of all or part of the Registrable Securities owned by it (a “Demand Registration”) (which
Demand Registration Request shall specify the intended number of Registrable Securities to be disposed of by such holder and the
intended method of disposition thereof); provided, however, that (i) the Company may, if the Board of Directors so
determines in the exercise of its reasonable judgment that due to a pending or contemplated acquisition or disposition or public
offering it would be inadvisable to effect such Demand Registration at such time, defer such Demand Registration for a single period
not to exceed ninety (90) days but, if requested by the party requesting such Demand Registration, the Company shall prepare for
such Demand Registration so that it will be in a position to file for such Demand Registration promptly following the expiration
of such period; provided, however, that the Company may not defer Demand Registrations more than once in any 365-day
period, and (ii) if the Company elects not to effect the Demand Registration pursuant to the terms of this sentence, no Demand
Registration shall be deemed to have occurred for purposes hereof. Promptly after receipt of the Demand Registration Request, the
Company will serve written notice (the “Demand Notice”) of such Demand Registration Request to all holders of
Registrable Securities and, subject to paragraph (c) below, the Company will include in such registration all Registrable Securities
of such holders with respect to which the Company has received written requests for inclusion therein from such holders within
five (5) business days after the receipt by the applicable holder of the Demand Notice. All requests made pursuant to this Section
4(a) will specify the aggregate number of the Registrable Securities to be registered and will also specify the intended methods
of disposition thereof.

  

(b)          Number
of Demand Registrations. The Stockhodler shall be entitled to make up to three (3) Demand Registration Requests at any time.
A Demand Registration shall not be counted as a Demand Registration hereunder until such Demand Registration has been declared
effective and maintained continuously effective for a period of at least six (6) months or such shorter period when all Registrable
Securities included therein have been sold in accordance with such Demand Registration.

 

(c)          Priority
on Demand Registration. If any of the Registrable Securities proposed to be registered pursuant to a Demand Registration are
to be sold in a firm commitment Underwritten Offering and the managing underwriter or underwriters of a Demand Registration advise
the Company and the holders of such Registrable Securities in writing that in its or their reasonable opinion the number of shares
of Common Stock proposed to be sold in such Demand Registration exceeds the maximum number of shares specified by the managing
underwriter that may be distributed without adversely affecting the price, timing or distribution of the Common Stock, the Company
shall include in such registration only such maximum number of Registrable Securities which, in the reasonable opinion of such
underwriter or underwriters can be sold in the following order of priority: (i) first, the Registrable Securities requested to
be included in such Demand Registration held by the party requesting such Demand Registration and such party’s Permitted
Transferees; (ii) second, shares of Common Stock to be offered by the Company in such Demand Registration; and (iii) third, shares
of Common Stock requested to be included in such Demand Registration held by all other holders of Common Stock, provided that such
amount shall be allocated among such other holders as provided in Section 3(b).

 

(d)          Expenses.
The Company will pay all Registration Expenses in connection with any registration of Registrable Securities requested pursuant
to this Section 4.

 

5.          Registration
Procedures. If and whenever the Company is required to effect or cause the registration of any Registrable Securities under
the Securities Act as provided herein, the Company will, as expeditiously as possible:

 

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(a)          prepare
and file with the Commission a registration statement with respect to such Registrable Securities, and use its best efforts to
cause such registration statement to become effective; provided, however, that the Company may discontinue any registration
of its securities which is being effected pursuant to Sections 3 or 4 herein at any time prior to the effective date of the registration
statement relating thereto, provided, however, that any such discontinuance is conducted in accordance with all other
applicable provisions hereof;

 

(b)          prepare
and file with the Commission such amendments and supplements to such registration statement and the prospectus used in connection
therewith as may be necessary to keep such registration statement effective for a period of not less than 180 days or such shorter
period which will terminate when all Registrable Securities covered by such registration statement have been sold (but not before
the expiration of the applicable period referred to in Section 4(3) of the Securities Act and Rule 174 thereunder, if applicable)
and comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration
statement during such period in accordance with the intended methods of disposition by the seller or sellers thereof set forth
in such registration statement;

 

(c)          furnish
to each seller of such Registrable Securities such number of copies of such registration statement and of each such amendment and
supplement thereof (in each case including all exhibits), such number of copies of the prospectus included in such registration
statement (including each preliminary prospectus and summary prospectus), in conformity with the requirements of the Securities
Act, and such other documents as such seller may reasonably request in order to facilitate the disposition of the Registrable Securities
by such seller;

 

(d)          use
its best efforts to register or qualify such Registrable Securities covered by such registration statement under such other securities
or blue sky laws of such jurisdictions as each seller shall request, and do any and all other acts and things which may be necessary
or advisable to enable such seller to consummate the disposition in such jurisdictions of the Registrable Securities owned by such
seller; provided, however, that the Company shall not be required to qualify generally to do business in any jurisdiction
where it is not then so qualified or subject itself to general taxation in any jurisdiction where it is not then so subject;

 

(e)          immediately
notify each seller of any Registrable Securities covered by such registration statement, at any time when a prospectus relating
thereto is required to be delivered under the Act within the appropriate period mentioned in clause (b) of this Section 5, of the
Company becoming aware that the prospectus included in such registration statement, as then in effect, includes an untrue statement
of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein
not misleading in the light of the circumstances then existing, and within ten (10) days prepare and furnish to all sellers a reasonable
number of copies of an amended or supplemental prospectus as may be necessary so that, as thereafter delivered to the purchasers
of such Registrable Securities, such prospectus shall not include an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances
then existing;

 

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(f)          The
Company will have the right, in its sole discretion, to select an underwriter or underwriters. In connection with any Public Offering,
the Company will enter into customary agreements (including an underwriting agreement in customary form) and take such other actions
as are reasonably required in order to expedite or facilitate the disposition of such Registrable Securities in any such Public
Offering, including the engagement of a “qualified independent underwriter” in connection with the qualification of
the underwriting arrangements with the FINRA;

 

(g)          if
such Registrable Securities are not already listed or quoted and if such listing is then permitted under the rules of an exchange
on which the Common Stock is then listed, use its best efforts to list such Registrable Securities on any securities exchange on
which the Common Stock is then listed, and provide an independent transfer agent and registrar for such Registrable Securities
covered by such registration statement not later than the effective date of such registration statement;

 

(h)          furnish
to each seller of Registrable Securities covered by such registration statement a signed counterpart, addressed to such seller
(and the underwriters, if any) of:

 

(i)          an
opinion of counsel for the Company, dated the effective date of such registration statement (or, if such registration involves
an underwritten public offering, dated the date of the closing under the underwriting agreement), reasonably satisfactory in form
and substance to the sellers of not less than fifty percent (50%) of such Registrable Securities (and the managing underwriter,
if any); and

 

(ii)          a “comfort” letter, dated
the effective date of such registration statement (and, if such registration involves an underwritten public offering, dated the
date of the closing under the underwriting agreement), signed by the independent public accountants who have certified the Company’s
financial statements included in such registration statement, covering such matters with respect to such registration statement
as are customarily covered in accountants’ letters delivered to the underwriters in underwritten offerings of securities
as may reasonably be requested by the sellers of not less than fifty percent (50%) of such Registrable Securities (and the managing
underwriter, if any);

 

(i)          make
available for inspection by any seller of such Registrable Securities covered by such registration statement, by any underwriter
participating in any disposition to be effected pursuant to such registration statement and by any attorney, accountant or other
agent retained by any such seller or any such underwriter (individually, an “Inspector” and collectively, the
“Inspectors”), all pertinent financial and other records, pertinent corporate documents and properties of the
Company as shall be reasonably necessary to enable them to exercise their due diligence responsibility (collectively, the “Records”),
and cause all of the Company’s officers, directors and employees to supply all information reasonably requested by any such
seller, underwriter, attorney, accountant or agent in connection with such registration statement; provided, however,
that any Records that are designated by the Company in writing as confidential shall be kept confidential by the Inspectors unless
(i) the disclosure of such Records is necessary to avoid or correct a misstatement or omission in such registration statement or
(ii) the release of such Records is ordered pursuant to a subpoena or other order from a court of competent jurisdiction or by
any regulatory authority having jurisdiction. Each Investor agrees that non-public information obtained by it as a result of such
Inspections shall be deemed confidential and acknowledges its obligations under the Federal securities laws not to trade any securities
of the Company on the basis of material non-public information; and

 

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(j)          cause
appropriate officers of the Company to (i) prepare and make presentations at any “road shows” and before analysts and
rating agencies, as the case may be, (ii) take other actions to obtain ratings for any Registrable Securities and (iii) otherwise
use their reasonable best efforts to cooperate as reasonably requested by the underwriters in the offering, marketing or selling
of the Registrable Securities.

 

(k)          The
Company may require each seller of Registrable Securities as to which any registration is being effected promptly to furnish to
the Company such information regarding the distribution of such Registrable Securities as may be legally required. Such information
shall be furnished in writing and shall state that it is being furnished for use in the registration statement.

 

(l)          Each
holder of Registrable Securities agrees by acquisition of such Registrable Securities that, upon receipt of any notice from the
Company of the happening of any event of the kind described in clause (e) of this Section 5, such holder will forthwith discontinue
disposition of Registrable Securities pursuant to the registration statement covering such Registrable Securities until such holder’s
receipt of the copies of the supplemented or amended prospectus contemplated by clause (e) of this Section 5, and, if so directed
by the Company, such holder will deliver to the Company (at the Company’s expense) all copies, other than permanent file
copies then in such holder’s possession, of the prospectus covering such Registrable Securities current at the time of receipt
of the Company’s notice. In the event the Company shall give any such notice, the period mentioned in clause (b) of this
Section 5 shall be extended by the number of days during the period from and including the date of the giving of such notice pursuant
to clause (e) of this Section 5 and including the date when each seller of Registrable Securities covered by such registration
statement shall have received the copies of the supplemented or amended prospectus contemplated by clause (e) of this Section 5.

 

    	8

    	 

    

 

6.          Indemnification.

 

(a)          Indemnification
by the Company. The Company hereby agrees to indemnify and hold harmless each holder of Registrable Securities which shall
have been registered under the Securities Act, and such holder’s officers, directors and agents and each other Person, if
any, who controls such holder within the meaning of the Securities Act and each other Person (including underwriters) who participates
in the offering of such Registrable Securities against any losses, claims, damages, liabilities, reasonable attorneys’ fees,
costs or expenses (collectively, the “Damages”), joint or several, to which such holder or controlling Person
or participating Person may become subject under the Securities Act or otherwise, insofar as such Damages (or proceedings in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact made by the Company
or its agents contained in any registration statement under which such Registrable Securities are registered under the Securities
Act, in any preliminary prospectus or final prospectus contained therein, or in any amendment or supplement thereof, or arise out
of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary
to make the statements therein not misleading, and will reimburse such holder of Registrable Securities or such controlling Person
or participating Person in connection with investigating or defending any such Damages or proceeding; provided, however,
that the Company will not be liable in any such case to the extent that any such Damages arise out of or are based upon (i) an
untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, such preliminary
or final prospectus or such amendment or supplement in reliance upon and in conformity with written information furnished to the
Company by such holder or such controlling or participating Person, as the case may be, specifically for inclusion in any such
document; or (ii) an untrue statement or alleged untrue statement, omission or alleged omission in a prospectus if such untrue
statement or alleged untrue statement, omission or alleged omission is corrected in an amendment or supplement to the prospectus
which amendment or supplement is delivered to such holder in a timely manner and such holder thereafter fails to deliver such prospectus
as so amended or supplemented prior to or concurrently with the sale of such Registrable Securities to the Person asserting such
Damages and such Damages would have been avoided if such holder had so delivered such prospectus as so amended or supplemented.

 

(b)          Indemnification
by the Holders of Registrable Securities Which Are Registered. It shall be a condition of the Company’s obligations herein
to effect any registration under the Securities Act that there shall have been delivered to the Company an agreement or agreements
duly executed by each holder of Registrable Securities to be so registered, whereby such holder agrees to indemnify and hold harmless
the Company, its directors, officers and agents and each other Person, if any, which controls the Company within the meaning of
the Securities Act against any Damages, joint or several, to which the Company, or such other Person or such Person controlling
the Company may become subject under the Securities Act or otherwise, but only to the extent that such Damages (or proceedings
in respect thereof) arise out of or are based upon any untrue statements or alleged untrue statement of any material fact contained,
on the effective date thereof, in any registration statement under which such Registrable Securities are registered under the Securities
Act, in any preliminary prospectus or final prospectus contained therein or in any amendment or supplement thereto, or arise out
of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary
to make the statements therein not misleading, which, in each such case, has been made in or omitted from such registration statement,
such preliminary or final prospectus or such amendment or supplement in reliance upon, and in conformity with, written information
furnished to the Company by such holder of Registrable Securities specifically for inclusion in such document. The Company shall
be entitled to receive indemnities from underwriters, selling brokers, dealer managers and similar securities industry professionals
participating in the distribution, to the same extent as provided above, with respect to information furnished in writing by such
Persons specifically for inclusion in any prospectus or registration statement.

 

    	9

    	 

    

 

(c)          Conduct
of Indemnification Proceedings. Any Person entitled to indemnification hereunder shall (i) give prompt written notice to the
indemnifying party of the commencement of any action or proceeding involving a claim referred to in the preceding Sections 6(a)
and 6(b); and (ii) unless the indemnified party has been advised by its counsel that a conflict of interest exists between such
indemnified and indemnifying parties with respect to such claim, permit such indemnifying party to assume the defense of such claim
with counsel reasonably satisfactory to the indemnified party. Whether or not such defense is assumed by the indemnifying party,
the indemnifying party will not be subject to any liability for any settlement made without its consent (but such consent will
not be unreasonably withheld). No indemnifying party will consent to the entry of any judgment or enter into any settlement which
does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release
from all liability in respect of such claim or litigation; provided, however, that no indemnifying party will consent
to the entry of any judgment or enter into any settlement (other than for the payment of money only) without the consent of the
indemnified party (which consent will not be unreasonably withheld). An indemnifying party who is not entitled to, or elects not
to, assume the defense of the claim, will not be obligated to pay the fees and expenses of more than one counsel for all parties
indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party a
conflict of interest may exist between such indemnified party and any other such indemnified parties with respect to such claim,
in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel or counsels.

 

(d)          Contribution.
If for any reason the indemnification provided for in the preceding Sections 6(a) or 6(b) is unavailable to an indemnified party
in respect of any Damages referred to therein, the indemnifying party shall contribute to the amount paid or payable by the indemnified
party as a result of such Damages in such proportion as is appropriate to reflect not only the relative benefits received by the
indemnified party and the indemnifying party, but also the relative fault of the indemnified party and the indemnifying party,
as well as any other relevant equitable considerations. The relative fault of such indemnifying party and indemnified parties shall
be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement
of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied
by, such indemnifying party or indemnified parties, and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such action; provided, however, that in no event shall the liability of any selling
holder of Registrable Securities hereunder be greater in amount than the difference between the dollar amount of the proceeds received
by such holder upon the sale of the Registrable Securities giving rise to such contribution obligation and all amounts previously
contributed by such holder with respect to such Damages. No Person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of fraudulent misrepresentation.

 

    	10

    	 

    

 

7.          Hold-Back
Agreements.

 

(a)          Restrictions
on Public Sale by Company and Holders of Common Stock. The Company and each holder of Common Stock whose Common Stock is eligible
for inclusion in a Registration Statement filed pursuant to Sections 3 or 4, if requested by the managing underwriter or underwriters
in an Underwritten Offering of any Registrable Securities, agrees not to, directly or indirectly (except with respect to the Company
in connection with a Special Registration Statement), (i) offer for sale, sell, pledge or otherwise dispose of (or enter into any
transaction or device that is designed to, or could be expected to, result in the disposition by any person at any time in the
future of) any Common Stock (including, without limitation, Common Stock that may be deemed to be beneficially owned by the undersigned
in accordance with the rules and regulations of the Commission and Common Stock that may be issued upon exercise of any option
or warrant) or securities convertible into or exchangeable for Common Stock , or (ii) enter into any swap or other derivatives
transaction that transfers to another, in whole or in part, any of the economic benefits or risks of ownership of such Common Stock
, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or other securities,
in cash or otherwise, during the ten (10) day period prior to, and for a period of 180 days after, the effective date of the Registration
Statement, to the extent timely notified in writing by the managing underwriter, or, with respect to each such holder of Common
Stock, the Company. Additionally, the Company agrees to use reasonable efforts to cause each holder of Common Stock purchased from
the Company at any time after the date of the Agreement (other than in a registered public offering) to agree to the provisions
of this Section 7(a).

 

(b)          Certain
Holders of Registrable Securities Excepted. The provisions of Section 7(a) shall not apply to any holder of Registrable Securities
if such holder is prevented by applicable statute or regulation from entering into any such agreement; provided, however,
that any such holder shall undertake, in its request to participate in any such Underwritten Offering, not to effect any public
sale or distribution of Registrable Securities (except as part of such Underwritten Registration) during such period unless it
has provided forty-five (45) days prior written notice of such sale or distribution to the managing underwriter or underwriter.

 

8.          Underwritten
Registration. If any of the Registrable Securities covered by any Incidental Registration or Demand Registration are to be
sold in an Underwritten Offering, the investment banker or investment bankers and manager or managers that will administer the
offering will be selected by the Company. Notwithstanding anything herein to the contrary, no Person may participate in any Underwritten
Registration hereunder unless such Person (a) agrees to sell such Person’s securities on the basis provided in any underwritten
arrangements approved by the Persons entitled hereunder to approve such arrangement and (b) accurately completes and executes all
questionnaires, powers of attorney, indemnities, custody agreements, underwriting agreements and other documents required under
the terms of such underwriting arrangements.

 

* * * * *

 

    	11Exhibit 10.1

 

SECOND AMENDMENT

TO THE

INSPIREMD, INC.

AMENDED AND RESTATED 2011 UMBRELLA OPTION
PLAN

 

November 1, 2012

 

This SECOND
AMENDMENT TO THE INSPIREMD, INC. AMENDED AND RESTATED 2011 UMBRELLA OPTION PLAN (this “Amendment”),
is made and entered into by InspireMD, Inc., a Delaware corporation (the “Company”). Terms used in this
Amendment with initial capital letters that are not otherwise defined herein shall have the meanings ascribed to such terms in
the Plan (as defined below).

 

WHEREAS, the
Company sponsors the InspireMD, Inc. Amended and Restated 2011 UMBRELLA Option Plan (the “Umbrella Plan”),
the 2006 Employee Stock Option Plan (the “Israeli Appendix”), which is a sub-plan to the Umbrella Plan,
and the 2011 U.S. Equity Incentive Plan (the “US Appendix”), which is a sub-plan to the Umbrella Plan
(collectively, the Umbrella Plan, the Israeli Appendix, and the US Appendix being referred to herein as, the “Plan”);
and

 

WHEREAS, Section
11.2 of the Umbrella Plan permits the Company to amend the Plan at any time, and from time to time; and

 

WHEREAS,
subject to stockholder approval, the Company desires to amend the Plan to (i) increase the total number of shares of the Company’s
common stock, par value $0.0001 per share, available for issuance under the Plan from 15,000,000 shares to 20,000,000 shares, and
(ii) permit, pursuant to the US Appendix, the granting of “incentive stock options” that qualify under Section 422
of the U.S. Internal Revenue Code of 1986, as amended.

 

NOW THEREFORE,
in accordance with Section 11.2 of the Umbrella Plan, the Plan shall be, and hereby is, amended as follows:

 

1. Section 4 of
the Umbrella Plan is hereby amended by deleted said section in its entirety and substituting in lieu thereof the following new
Section 4:

 

	 	4.	RESERVED SHARES
	 	 	 

The Company reserves twenty million
(20,000,000) shares of the Company’s common stock, par value $0.0001 per share (the “Shares”) for purposes
of the Plan, subject to adjustment in case of subdivision or combination of the Shares of the Company. Such initial number may
be increased from time to time by resolutions of the Board. Up to one hundred percent (100%) of the Shares reserved under the Plan
may be granted pursuant to the U.S. Plan as Incentive Stock Options (as defined in the U.S. Plan).

 

Any Share under the Plan, in respect
of which the right hereunder of a Grantee to purchase the same shall for any reason terminate, expire or otherwise cease to exist,
shall again be available for grant under the Plan; provided that, only Shares forfeited back to the Company, Shares canceled on
account of termination, expiration or lapse of an award, or Shares surrendered in payment of the exercise price of Options shall
again be available for the grant of Incentive Stock Options under the Plan. The Board may resolve to reserve out of the abovementioned
pool (as may be increased from time to time) part of the reserved pool specifically for each separate Appendix.

 

2. Article II of
the US Appendix is hereby amended by deleting said article in its entirety and substituting in lieu thereof the following new Article
II:

 

    	 

    	 	

    
 

ARTICLE II

Options and Shares

 

3. The Options granted and the
Shares to be issued are as defined under the Umbrella Plan.

 

a. Types of Options. Options
may be granted under the U.S. Plan as (i) Options that meet the requirements of Section 422 of the Code (“Incentive Stock
Options”), or (ii) Options that do not meet the requirements of Section 422 of the Code (“Nonqualified Stock
Options”). Options may be granted from time to time by the Board to all employees of the Company or of any parent or
subsidiary company of the Company (as defined in Sections 424(e) and (f), respectively, of the Code), and also to all non-employee
directors and consultants of the Company or any such other company; provided that, Incentive Stock Options may only be granted
to employees of a corporation (as defined under Section 7701 of the Code).

 

b. Incentive Stock Options.
The Company may not grant Incentive Stock Options to any employee which would permit the aggregate fair market value (determined
on the Date of Grant) of the Shares with respect to which Incentive Stock Options (under this and any other plan of the Company
and its subsidiaries) are exercisable for the first time by such employee during any calendar year to exceed U.S. $100,000. To
the extent any Options granted which are designated as Incentive Stock Options exceed this limit or otherwise fails to qualify
as Incentive Stock Options, such Options (or any such portion thereof) shall be Nonqualified Stock Options. Notwithstanding anything
herein to the contrary, if an employee owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code)
more than ten percent (10%) of the combined voting power of all classes of stock of the Company (or any subsidiary) and Incentive
Stock Options are granted to such employee, the Expiration Date of such Incentive Stock Options (to the extent required by the
Code at the time of grant) shall be no more than five (5) years from the Date of Grant. If Shares acquired upon exercise of Incentive
Stock Options are disposed of by a US Grantee prior to the expiration of either two (2) years from the Date of Grant of such Incentive
Stock Options or one (1) year from the transfer of Shares to the US Grantee pursuant to the exercise of such Options, or in any
other disqualifying disposition within the meaning of Section 422 of the Code, such US Grantee shall notify the Company in writing
of the date and terms of such disposition. A disqualifying disposition by a US Grantee shall not affect the status of other Incentive
Stock Options.

 

c. Limitations on Options
and Shares. Notwithstanding anything to the contrary contained herein, subject to adjustment pursuant to Section 9 of the Umbrella
Plan, during any calendar year the maximum number of shares with respect to which Options may be granted to an officer of the Company
(or any subsidiary) subject to Section 16 of the Exchange Act or a “covered employee” as defined in Section 162(m)(3)
of the Code is one million (1,000,000) Shares.

 

d. Limitations on Grantees.
“Consultant” means any natural person, who is not an employee, rendering bona fide services to the Company or
a subsidiary, with compensation, pursuant to a written independent contractor agreement between such person (or any entity employing
such person) and the Company or a subsidiary, provided that such services are not rendered in connection with the offer or sale
of securities in a capital raising transaction and do not directly or indirectly promote or maintain a market for the Company’s
securities.

 

    	 

    	 	

    
 

3. Article III of
the US Appendix is hereby amended by deleting said article in its entirety and substituting in lieu thereof the following new Article
III:

 

ARTICLE III

Exercise Price

 

4. The Exercise Price shall be
as defined under the Plan provided that the Exercise Price shall be equal to the fair market value of the Share on the date of
such grant, determined as follows: (i) if the Company is publicly-traded, the closing price of a Share on the Date of Grant, provided
that if the Date of Grant is not a trading day, the closing price on the trading day immediately prior to the Date of Grant shall
apply; or (ii) if the Company is not publicly-traded, as determined by (A) the Administrator, in good faith, based on the reasonable
application of a reasonable valuation method, considering factors relevant to the value of the Shares, or (B) a qualified independent
appraiser, based on a reasonable valuation method, which determination being made no more than twelve (12) months before the respective
stock option grant date; provided however, that in the event that prior to the end of each such twelve (12) months period
subsequent to the relevant appraisal date the Company undergoes an event which will have a material effect on the value of the
Share, the Company shall carry out and receive an updated analysis from a qualified independent appraiser regarding the fair market
value of the Share for any new grant. Each Option Agreement shall contain the exercise price determined for each Grantee. Each
vested Option shall entitle the Grantee to purchase one Share at the Exercise Price, subject to the provisions of the Plan, the
Option Agreement and the Tax Rules. Notwithstanding the foregoing, if Incentive Stock Options are granted to an employee who owns
or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than ten percent (10%) of the combined
voting power of all classes of stock of the Company (or any subsidiary), the Exercise Price shall be at least one hundred ten percent
(110%) of the fair market value of a Share on the Date of Grant.

 

4. Except as expressly
amended by this Amendment, the Plan shall continue in full force and effect in accordance with the provisions thereof.

 

* * * * * *

 

[Remainder of Page Intentionally Left
Blank

Signature Page Follows.]

 

    	 

    	 	

    
 

IN WITNESS WHEREOF, the Company
has caused this amendment to be executed by its duly authorized representative, effective as of the date above.

 

	 	INSPIRE MD, INC.
	 	 
	 	/s/ Craig Shore
	 	Name:	Craig Shore
	 	Title:	Chief Financial Officer, Secretary and Treasurer

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