Document:

Exhibit 10.3

 

PHUNWARE,
INC.

 

2018
EMPLOYEE STOCK PURCHASE PLAN

 

SUBSCRIPTION
AGREEMENT

 

	_____ Original Application	Offering Date: ________________
	_____ Change in Payroll Deduction Rate	 

 

1. ____________________
(“Employee”) hereby elects to participate in the Phunware, Inc. 2018 Employee Stock Purchase Plan (the “Plan”)
and subscribes to purchase shares of the Company’s Common Stock in accordance with this Subscription Agreement and the Plan.
Unless otherwise defined herein, the terms defined in the 2018 Employee Stock Purchase Plan (the “Plan”) shall have
the same defined meanings in this Subscription Agreement.

 

2. Employee
hereby authorizes payroll deductions from each paycheck in the amount of ____% (from 0 to fifteen percent (15%)) of his or her
Compensation on each payday during the Offering Period in accordance with the Plan. (Please note that no fractional percentages
are permitted.)

 

3. Employee
understands that said payroll deductions will be accumulated for the purchase of shares of Common Stock at the applicable Purchase
Price determined in accordance with the Plan. Employee understands that if he or she does not withdraw from an Offering Period,
any accumulated payroll deductions will be used to automatically exercise his or her option and purchase Common Stock under the
Plan.

 

4. Employee
has received a copy of the complete Plan and its accompanying prospectus. Employee understands that his or her participation in
the Plan is in all respects subject to the terms of the Plan.

 

5. Shares
of Common Stock purchased by Employee under the Plan should be issued in the name(s) of _____________ (Employee or Employee and
Spouse only).

 

6. Employee
understands that if he or she disposes of any shares that he or she purchased under the Plan within two (2) years after the
Enrollment Date (the first day of the Offering Period during which he or she purchased such shares) or one (1) year after
the applicable Exercise Date, he or she will be treated for federal income tax purposes as having received ordinary income at
the time of such disposition in an amount equal to the excess of the fair market value of the shares at the time such shares were
purchased over the price paid for the shares. Employee hereby agrees to notify the Company in writing within thirty (30)
days after the date of any disposition of such shares and to make adequate provision for federal, state or other tax withholding
obligations, if any, that arise upon the disposition of such shares. The Company may, but will not be obligated to, withhold
from Employee’s compensation the amount necessary to meet any applicable withholding obligation including any withholding
necessary to make available to the Company any tax deductions or benefits attributable to Employee’s sale or early disposition
of such shares. Employee understands that if he or she disposes of such shares at any time after the expiration of the two (2)-year
and one-(1) year holding periods, he or she will be treated for federal income tax purposes as having received income only
at the time of such disposition, and that such income will be taxed as ordinary income only to the extent of an amount equal to
the lesser of (i) the excess of the fair market value of the shares at the time of such disposition over the purchase price
paid for the shares, or (ii) fifteen percent (15%) of the fair market value of the shares on the first day of the Offering
Period. The remainder of the gain, if any, recognized on such disposition will be taxed as capital gain.

 

     

     

    

 

7. Employee
hereby agrees to be bound by the terms of the Plan. The effectiveness of this Subscription Agreement is dependent upon Employee’s
eligibility to participate in the Plan.

 

	Employee’s [ID Number]:	 
	 	 
	Employee’s Address:	 
	 	 
	 	 
	 	 
	 	 

 

EMPLOYEE
UNDERSTANDS THAT THIS SUBSCRIPTION AGREEMENT WILL REMAIN IN EFFECT THROUGHOUT SUCCESSIVE OFFERING PERIODS UNLESS TERMINATED BY
EMPLOYEE.

 

	Dated:	 	 	 
	 	 	 	Signature of Employee

 

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EXHIBIT
B

 

PHUNWARE,
INC.

 

2018
EMPLOYEE STOCK PURCHASE PLAN

 

NOTICE
OF WITHDRAWAL

 

Unless
otherwise defined herein, the terms defined in the 2018 Employee Stock Purchase Plan (the “Plan”) shall have the same
defined meanings in this Notice of Withdrawal.

 

The
undersigned Participant in the Offering Period of the Phunware, Inc. 2018 Employee Stock Purchase Plan that began on ____________,
______ (the “Offering Date”) hereby notifies the Company that he or she hereby withdraws from the Offering Period.
He or she hereby directs the Company to pay to the undersigned as promptly as practicable all the payroll deductions credited
to his or her account with respect to such Offering Period. The undersigned understands and agrees that his or her option for
such Offering Period will be terminated automatically. The undersigned understands further that no further payroll deductions
will be made for the purchase of shares in the current Offering Period and the undersigned will be eligible to participate in
succeeding Offering Periods only by delivering to the Company a new Subscription Agreement.

 

	 	Name and Address of Participant:
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 	 
	 	Signature:	 
	 	 	 
	 	Date:	 

 

 

- 3 -Exhibit 10.1

 

 

 

March 22, 2019

 

Travis Bowman, Controller

Associated Food Stores, Inc.

1850 West 2100 S.

 

Salt Lake City, UT 84119

 

Ladies and Gentlemen,

 

1.       We
hereby establish, at the request and for the account of Dougherty's Pharmacy, Inc., (the "Applicant") our Irrevocable
Letter of Credit No. 444801 (the "Letter of Credit") in the initial amount of $825,000.00 (the "Letter of Credit
Amount") effective as of the date referenced above, and expiring on March 22, 2020 (the "Expiration Date"). Notwithstanding
the foregoing, this Letter of Credit shall be automatically renewed for additional periods of one year upon the Expiration Date
and upon each anniversary of such date, unless at least sixty (60) days prior to the Expiration Date or anniversary thereof, as
applicable, we notify you in writing that we elect not to renew his Letter of Credit for such additional period. Upon any such
renewal, all references to the "Expiration Date" here in shall be deemed to refer to the Expiration Date as extended
by such renewal. In the event that Lender elects to not renew the Letter of Credit, Beneficiary would be permitted to present the
Letter of Credit for payment without the documentation required in Section 2 below. In addition, this letter of credit will
be reduced by $100,000 at each anniversary of the Effective Date of this letter of credit (for the avoidance of doubt, as an example,
during the second year after the Effective Date, the Letter of Credit may be at least $725,000.00 and in the third year, at least
$625,000.00). Said decrease of this letter of credit shall be effective without any further action on the part of the Lender or
notice to any party.

 

2.       We
irrevocably authorize you to draw upon us, in an aggregate amount not to exceed the Letter of Credit Amount, and in accordance
with the terms and conditions set forth herein in multiple drawings by your draft in the form of Exhibit A hereto (the "Draft"),
payable at sight on a Business Day, accompanied by a completed certificate in the form of Exhibit B hereto (the "Certificate")
and the following documents (collectively the "Required Documents"):

 

		A.	Associated Food Stores, Inc. (AFS) is to present to the bank: A copy of the
written notice sent by "Certified Mail" or delivered in person from AFS stating that Applicant is in default of its payment
obligations for purchase of inventory.

 

		B.	AFS is to present to the bank: A notarized statement from AFS stating the
following: "The Payment Default as per the prior written notice previously sent to Company remains uncured and remains in
default after a 10 day period has passed from the date of the said written notice as previously presented and received by Company.

 

The Draft and Certificate
must be in writing and signed by you. As used in this Letter of Credit, "Business Day" means any day other than a Saturday,
Sunday or holiday on which LegacyTexas Bank is open for business with the public in Plano, Texas and "in writing" includes
a transmission by telecopier.

 

 

P.O.
Box 869105, Plano, TX 75086-9105 1972.578 5000 I 800.578.9009 I LegacyTexas.com

Member FDIC I C1' Equal Housing Lender I NMLS: 440732

 

    	 	1	 

     

    

 

3.       Funds
under this Letter of Credit are available to you against your Draft and Certificate. The Draft and Certificate are to bear the
date of presentation, and are to be presented in person, with the original of this Letter of Credit, on or prior to the Expiration
Date, to our Letter of Credit Department at 2101 Custer Road, Plano, TX 75075.

 

Upon
receiving this Letter of Credit, the Required Documents, and your Draft and Certificate in strict conformity with the terms of
this Letter of Credit on or prior to the Expiration Date and on or before 5:00 pm, Central Time, on a Business Day, on or prior
to the time set forth in Paragraph 4 we either will honor the presentation through a credit to the account designated in your Draft
or give written notice of discrepancies pursuant to Paragraph 4 which written notice shall include the return of the Letter of
Credit.

 

4.       If
a presentation pursuant to Paragraph 3 does not conform to the terms and conditions of this Letter of Credit, we will notify you
of discrepancies in writing by a notice of dishonor in substantially the form of Exhibit C hereto not later than 5:00 pm,
Central Time, on the fifth (5`h) Business Day following the Business Day of presentation. Prior to the Expiration Date,
or within five (5) Business Days after receiving notice of dishonor, whichever is later, you may correct discrepancies and again
present the Draft and other documents in accordance with Paragraph 3.

 

5.       Only
you may draw upon this Letter of Credit. After payment to the account designated by your Draft of the amount specified in your
Draft, we will issue a new Letter of Credit under all of the same terms and conditions as contained herein in an amount equal to
the remaining available balance which is the original Letter of Credit Amount set forth above less all payments made to date pursuant
to the Letter of Credit and each replacement thereof. After payment to the account designated by your Draft of the full amount
specified in this Letter of Credit, we shall be fully discharged from our obligations under this Letter of Credit. No person shall
be deemed a third party beneficiary hereunder and no person other than Beneficiary may enforce a draw upon the Letter of Credit.

 

6.       This
Letter of Credit is governed by the laws of the State of Texas that are in force upon the date of this Letter of Credit. The Uniform
Customs and Practices for Documentary Credits (2007 Revision), International Chamber of Commerce, Publication No. 600 (the "UCP"),
governs this Letter of Credit to the extent permitted by the Texas enactment of Article 5 of the Uniform Commercial Code in force
upon the date of this Letter of Credit. In the event of any conflict between the UCP and the Texas Uniform Commercial Code, the
UCP shall control except as prohibited by the Texas Uniform Commercial Code.

 

7.       This
Letter of Credit sets forth our full and complete undertaking. This undertaking shall not in any way be modified, amended, amplified,
or limited by the reference herein to any document, instrument, or agreement, (including, without limitation the Contract), except
Exhibits A, B, C and D and consistent provisions of the UCP. This Letter of Credit may only be amended by an amendment signed by
us and consented to in writing by you and the Applicant.

 

8.       Any
notice or demand required hereunder shall be in writing and deemed to be given when deposited in the United States mail, postage
prepaid, certified mail, return receipt requested, addressed to the issuer or the beneficiary, as the case may be, at the address
set forth herein, or at such other address as such party may hereafter give by written notice in accordance herewith. Any other
method of delivery or demand shall be effective only when actually received by the recipient thereof. Notwithstanding the foregoing,
draws on this Letter of Credit may only be submitted in person by an Officer of Beneficiary pursuant to Section 3.

 

 

 

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9.       We
are not responsible for the performance or nonperformance of any underlying contract, arrangement or transaction, any act or omission
of others, or the observance or knowledge of the usage of a particular trade other than the standard practice of financial institutions
that regularly issue letters of credit. Notwithstanding anything contained in this Letter of Credit or related documents, we shall
not be liable for consequential damages.

 

10.       All
charges and commissions of issuer incurred in this transaction are for the Applicant's account.

 

 

	 	Very truly yours,
	 	 
	 	LEGACY TEXAS BANK
	 	 
	 	By: /s/ Leah Smith
	 	 
	 	Name: Leah Smith
	 	 
	 	Title: Vice President
	 	 

 

 

ADDRESSES FOR NOTICE

 

	ISSUER:	BENEFICIARY:
	LegacyTexas Bank	Travis Bowman, Controller
	Attn: Leah Smith	Associated Food Stores, Inc.
	2101 Custer Road	1850 West 2100 S.
	Plano, TX 75075	Salt Lake City, UT 84119

 

 

 

 

 

 

 

 

 

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EXHIBIT A

TO

LETTER OF CREDIT No. 444801

 

FORM OF DRAFT 

 

	$__________	Plano, TX __________, 20

 

At sight pay to Account No. __________at_______, the sum of [*Amount In Words] ($[*Amount in Numbers*]). Drawn
under the LegacyTexas Bank Irrevocable Letter of credit No. 444801 dated March 22, 2019. The amount of this draft does not exceed
the amount available to be drawn by the undersigned beneficiary under the Letter of Credit.

 

	 	 
	 	 
	 	By: _______________________
	 	 
	 	Name: _____________________
	 	 
	 	Title: ______________________

 

 

	To:	LEGACYTEXAS BANK
	 	Attn: Leah Smith
	 	2101 Custer Road
	 	Plano, TX 75075

 

 

 

 

 

    	 	4	 

     

    

 

EXHIBIT B

TO

LETTER OF CREDIT No. 444801

 

 

 

FORM OF CERTIFICATE

 

The undersigned,
a duly authorized officer of Associated Food Stores, Inc. ("Beneficiary"), hereby certifies to LegacyTexas Bank (the
"Bank"), with reference to Irrevocable Letter of Credit No. 444801 (the "Letter of Credit") (the terms defined
therein and not otherwise defined herein being used as therein defined), issued by the Bank in favor of Beneficiary, the following:

 

		1)	Attached hereto are the Required Documents as required by the Letter of Credit,
which are originals or, if permitted by the Letter of Credit, true and correct copies thereof;

 

		2)	This certification is in conformity with the Letter of Credit;

 

		3)	Dougherty's Pharmacy, Inc. has defaulted in the payment of [*The Amount Requested
Pursuant to the Draft Accompanying this Certificate*], which is due to Beneficiary pursuant to [*Describe Contract/Lease/Or other
Document*].

 

		4)	Items described specifically in 2. A and B of the Original Letter of Credit.

 

IN WITNESS WHEREOF, Beneficiary has executed and
delivered this certificate as of the day of _________, 20__.

 

	 	Associated Food Stores, Inc. 
	 	 
	 	By: _____________________
	 	 
	 	Name: ____________________
	 	 
	 	Title:_____________________

 

 

 

 

    	 	5	 

     

    

 

EXHIBIT C

TO

LETTER OF CREDIT No. 444801

 

 

FORM OF NOTICE OF DISHONOR

 

Travis Bowman, Controller

Associated Food Stores, Inc.

1850 W. 2100 S.

 

Salt Lake City, UT 84119

 

	 	Re:	Irrevocable Letter of Credit No. 444801

 

Ladies and Gentlemen:

 

You are hereby notified that we will not honor your
demand for payment under the above- referenced Letter of Credit as evidenced by your Draft and Certificate dated __________, 20
which Draft and Certificate did not comply strictly with the terms and conditions of the Letter of Credit because:

 

 

  

 

 

 

 

 

 

We [use as applicable:
herewith return/are holding at your disposal] your Draft, Certificate and the following Required Documents which were presented
to us:

 

	 	1	 
	 	2	 
	 	3	 
	 	 	 
	 	 	 

 

 

 

 

	 	LEGACY TEXAS BANK
	 	 
	 	By: __________________
	 	 
	 	Name: Leah Smith
	 	 
	 	Title: Vice President

 

 

 

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