Document:

dlti_ex101.htm

EXHIBIT 10.1
 
AGREEMENT
 
AND
 
PLAN OF REORGANIZATION
 
OF
 
DLT RESOLUTION INC.
 
AND
 
UNION STRATEGIES INC.
 
(STOCK FOR STOCK EXCHANGE)
 
	 
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TABLE OF CONTENTS
 
	 
	 
	 
	 
	Page
	 

	 
	 
	 
	 
	 
	 

	Table of Contents
	 
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	Agreement
	 
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		1. 
	 Recitals
	 
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		2. 
	 Plan of Reorganization (Exchange of Shares)
	 
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		3. 
	 Delivery of Shares
	 
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		4.  
	 Representations of UNION STRATEGIES INC
	 
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		5. 
	 Representations of DLT RESOLUTION
	 
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		6. 
	 Closing Date
	 
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		7.
	Conditions Precedent to the Obligations of DLT RESOLUTION
	 
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		8. 
	Conditions Precedent to the Obligations of UNION STRATEGIES INC
	 
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		9.
	Indemnification
	 
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		10. 
	Nature and Survival of Representations
	 
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		11. 
	Documents at Closing
	 
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		12. 
	Miscellaneous Provisions
	 
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		SIGNATURE PAGE
	 
		 

			 
	 
	 
	 

		EXHIBITS Attached
	 
		 

 
	 
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THIS AGREEMENT is entered into as of the 24th day of January, 2020 by, and between
 
DLT RESOLUTION INC., a NEVADA corporation 
(hereinafter "DLT RESOLUTION"); 
 
-And-
 
UNION STRATEGIES INC., an ONTARIO corporation 
(hereinafter "UNION STRATEGIES").
  
R E C I T A L S:
 
DLT RESOLUTION desires to acquire ONE HUNDRED percent (100%) of the issued and outstanding common stock of UNION STRATEGIES. making UNION STRATEGIES, a subsidiary of DLT RESOLUTION, and owners of UNION STRATEGIES intend to exchange ONE HUNDRED percent (100%) of their shares in UNION STRATEGIES for shares of DLT RESOLUTION'S Common Stock, and the parties wish to agree to certain related terms and conditions, all as set forth herein;
 
NOW, THEREFORE, in consideration of the premises, mutual promises, covenants, terms and conditions contained herein and other good and valuable considerations, the receipt and sufficiency of which are acknowledged by the parties hereto, the parties agree, warrant, represent and covenant to one another as follows:
 
1. Recitals. The above recitals are true, correct, and complete.

2. Plan of Reorganization (Exchange of Shares). It shall be the responsibility of UNION STRATEGIES to deliver, on the closing of this Agreement (the "Closing") or within 10 days following the "Closing Date" (defined herein), 100% of the issued and outstanding Common Stock in UNION STRATEGIES hereinafter the "UNION STRATEGIES SHARES," to be deemed, in exchange, effective the Closing Date, solely for 1,500,000 common stock and a further 1,000,000 common stock subject to “2. a) Milestones” below of DLT RESOLUTION's Common Stock, hereinafter the "DLT RESOLUTION SHARES" (on the basis of an exchange of shares) with this transaction intended to qualify as a tax-free reorganization under the current Internal Revenue Code, of the United States of America, and related sections thereunder, including any amendments. 

a) Milestones for additional shares:
 
• 1,000,000 Shares on January 15, 2021 subject to USI achieving gross sales of no less than CAD $3,300,000 with CAD $250,000 of EBITDA.
 
There is a 14 month time limit and there is full acceleration to allow for full vesting as quickly as the milestones are reached. Share issuances will be issued under reliance of appropriate exemptions from registration with the Securities & Exchange Commission and will contain substantial resale restrictions.
 
b) Board of Directors -on closing DLT Resolution will appoint 2 nominees to sit on the UNION STRATEGIES INC. 
 
	 
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3. Delivery of Shares. On or within 10 days following the Closing, DLT RESOLUTION shall deliver a Certificate to UNION STRATEGIES as to the DLT RESOLUTION SHARES, to distribute, following the Closing, to the stockholders of UNION STRATEGIES (as determined by UNION STRATEGIES). 
 
4. Representations of UNION STRATEGIES. UNION STRATEGIES hereby represents that, effective as of the date first written above and the Closing, the following representations in this Section are and will be true and correct, except as otherwise provided in any EXHIBIT:
 
a. the UNION STRATEGIES SHARES, to be delivered by the stockholders of UNION STRATEGIES INC., will constitute valid and legally issued shares of UNION STRATEGIES INC., be 100% of UNION STRATEGIES and such shares shall be fully paid, and non-assessable;
 
b. the UNION STRATEGIES SHARES are free of claims, liens or other encumbrances and the owners have the unqualified right to transfer such shares pursuant to the terms and conditions of this Agreement;
 
c. the stockholders of UNION STRATEGIES (as listed on the attached EXHIBIT herein and incorporated herein by reference), are owners of the issued and outstanding shares of common stock of UNION STRATEGIES, being the UNION STRATEGIES SHARES, and are "accredited investors," as such term is defined in Regulation D of the SEC;
 
d. the UNION STRATEGIES INC.SHARES represent 100% ownership interest in UNION STRATEGIES;
 
e. i) the attached financial statements for the period ending Dec 31, 2019 are a fair and accurate statement of the Company’s current financial position. and;

ii) UNION STRATEGIES will, no later than 80 days from the Closing Date, deliver to DLT RESOLUTION its most recent available audited, and prepared under US GAAP standards, financial statements (the financial statements and said statements are true, complete and accurate), audited, for fiscal 2018 and 2019 ending. As of the Closing there shall be no liabilities, either fixed, contingent, liquidated or unliquidated, not reflected in the attached financial statements. All financial statements: fairly and accurately reflect the financial condition of UNION STRATEGIES as of the dates thereof and the results of operations for the periods reflected therein, and were prepared in accordance with generally accepted accounting principles, consistently applied. 
 
f. as of this date and Closing there is no pledge, lien, or security interest upon any of the assets of UNION STRATEGIES, and UNION STRATEGIES has no accrued liabilities, whether or not contingent, fixed or liquidated, except as disclosed herein or in its financial statements , and there will not be any negative material changes in the conditions of UNION STRATEGIES from this date, except changes arising in the ordinary course of business;
 
	 
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g. UNION STRATEGIES is not involved in any litigation or governmental investigation or proceeding not reflected herein, and no written litigation, claims, assessments, or governmental investigation or proceeding is threatened in writing against UNION STRATEGIES;
 
h. UNION STRATEGIES is in good standing in the jurisdiction identified for UNION STRATEGIES above;
 
i. UNION STRATEGIES has and will file all governmental, tax or related returns and reports due or required to be filed;
 
j. except as may be disclosed herein or in any EXHIBIT hereto, UNION STRATEGIES has not been advised in writing of any material breach of any agreement to which it is a party;
 
k. UNION STRATEGIES's representations apply to any subsidiary corporations;
 
l. the corporate financial records, minute book, and other corporate documents and records of UNION STRATEGIES are available for review by officers or representatives of DLT RESOLUTION prior to the Closing, but, in any event, do not contain anything whatsoever contrary to this Agreement or that would be deemed by DLT RESOLUTION as material ;
 
m. the execution of this Agreement will not materially violate or breach any agreement, contract, or commitment to which UNION STRATEGIES, or its stockholders is/are a party, and this Agreement has been, or will be prior to the Closing, duly authorized by appropriate corporate action of UNION STRATEGIES;
 
n. UNION STRATEGIES shall not change the number of shares of any class authorized, issued or outstanding. All outstanding shares in UNION STRATEGIES have been duly authorized, validly issued, and are fully paid and non-assessable and there are no outstanding or presently authorized securities, warrants, options or other similar commitments of any nature not described herein;
 
o. attached hereto is a true complete and correct list of all record stockholders of UNION STRATEGIES and said list shall remain true, correct and complete up to the Closing;
 
p. as to the UNION STRATEGIES SHARES, DLT RESOLUTION will have good and marketable title to such shares, free and clear of all liens, claims, and encumbrances whatsoever, and such shares shall be validly issued, fully paid and non-assessable shares of common stock under law, except such shares will be unregistered and will be transferred in a non-public offering, or isolated, private transaction, in compliance with applicable Federal securities laws.
 
	 
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q. the shareholders of UNION STRATEGIES recognize that there continued contribution is essential to the near term success of the Company and comprises significant value to the acquisition herein UNION STRATEGIES shareholders represent that they will not compete against the company and will continue to be fully committed to the company, providing a best efforts commitment to the continued growth and successful expansion, leveraging existing relationships to ensure short and long term growth and client loyalty to UNION STRATEGIES for a period of no less than 5 years as more fully described in the SERVICES contracts attached hereto. The UNION STRATEGIES principles will provide employment contracts and attach hereto in Exhibits.
 
r. as of the date of this Agreement, UNION STRATEGIES has, and at the Closing will have, disclosed all material events, conditions and facts materially affecting UNION STRATEGIES, and DLT RESOLUTION has not, and will not have as of the Closing Date, withheld disclosure of any material event, condition, matter, fact, or other information which has or may have a material adverse affect on UNION STRATEGIES or any subsidiary.
 
5. Representations of DLT RESOLUTION hereby represents that, effective as of the date first written above and the Closing, the following representations in this Section are and will be true and correct:
 
a. as of the Closing, the DLT RESOLUTION SHARES, to be delivered for the stockholders of UNION STRATEGIES, will constitute valid and legally issued, restricted (as described herein) shares of DLT RESOLUTION, and such shares shall be fully paid and non-assessable;
 
b. the President of DLT RESOLUTION is duly authorized to execute this Agreement, the Board of Directors of DLT RESOLUTION has, as of this date or by the Closing Date, approved this Agreement, and the execution hereof will not constitute a material breach of any agreement to which DLT RESOLUTION or any stockholder is a party or is otherwise bound;
 
c. DLT RESOLUTION has, or will, deliver to UNION STRATEGIES its most recent available financial statements and shall deliver all of its financial and other books and records (the financial statements are true, complete and accurate), and as of the Closing there shall be no liabilities, either fixed, contingent, liquidated or unliquidated, not reflected in the financial statements and the financial statements: (I) fairly and accurately reflect the financial condition of DLT RESOLUTION as of the dates hereof and the results of operations for the periods reflected therein, and (II) were prepared in accordance with generally accepted accounting principles, consistently applied. As of this date and Closing there is no pledge, lien, or security interest upon any of the assets of DLT RESOLUTION. At Closing, DLT RESOLUTION shall have no accrued liabilities, whether or not contingent, fixed or liquidated, except as disclosed herein or in its financial statements
 
	 
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d. Working together, DLT RESOLUTION and UNION STRATEGIES will flush out a final expansion plan including new markets in the United States.
 
e. there shall not be any material adverse changes in the financial condition , or any change in the capitalization of DLT RESOLUTION,
 
f. DLT RESOLUTION is not involved in any pending litigation, claims or governmental investigations or proceedings, and there are no lawsuits, claims assessments, investigations, proceedings or similar matters threatened or contemplated against DLT RESOLUTION to the best knowledge of the management of DLT RESOLUTION except as disclosed herein or in its financial statements;
 
g. DLT RESOLUTION is duly organized, validly existing and in good standing under the laws of the jurisdiction identified above and is qualified to do business in every jurisdiction where such qualification is necessary and it has the corporate power to own its property and to carry on its business as now being conducted;
 
h. DLT RESOLUTION has filed, all material Federal, state, county and local income, excise, property and other tax returns, forms, and reports, which are due or required to be filed by DLT RESOLUTION or is in the process of so doing;
 
i. the capitalization of DLT RESOLUTION is 275,000,000 shares of authorized Common Stock, .001 par value per share, of which such number of said shares are approximately 21,000,000 issued and outstanding as of the date hereof, as reflected on the EXHIBIT hereto. DLT RESOLUTION shall not change the number of shares of any class authorized, issued or outstanding, except as of the Closing for the issuance of the UNION STRATEGIES INC.SHARES pursuant to this Agreement. All outstanding shares in DLT RESOLUTION have been duly authorized, validly issued, and are fully paid and non-assessable and there are no outstanding or presently authorized securities, warrants, options or other similar commitments of any nature not described herein or in the Company’s financial statements;
 
j. a true complete and correct list of all record stockholders of DLT RESOLUTION is attached hereto and said list shall remain true, correct and complete up to the Closing, prior to the issuance of stock to UNION STRATEGIES contemplated herein, and shall be certified by DLT RESOLUTION'S stock transfer agent;
 
	 
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l. the stockholders of UNION STRATEGIES will have, upon issuance of the UNION STRATEGIES SHARES by DLT RESOLUTION contemplated herein on the Closing, good and marketable title to such shares, free and clear of all liens, claims, and encumbrances whatsoever, and such shares shall be validly issued, fully paid and non-assessable shares of common stock under Nevada law, except such shares will be unregistered and will be issued under exemption from Registration or in a non-public offering, or isolated, private transaction, in compliance with applicable Federal securities laws, and shall contain the standard U. S. Securities and Exchange Commission, Rule 144 or Reg D, Reg S or similar restricted legend as counsel deems required (except, notwithstanding anything herein, it is the obligation of UNION STRATEGIES to comply with its own state or jurisdictional laws for its stockholders to receive the shares hereunder).
 
m. as of the date of this Agreement, DLT RESOLUTION has, and at the Closing will have, disclosed all material events, conditions and facts materially affecting DLT RESOLUTION, and DLT RESOLUTION has not, and will not have as of the Closing Date, withheld disclosure of any material event, condition, matter, fact, or other information which has or may have a material adverse affect on DLT RESOLUTION;
 
n. DLT RESOLUTION trades on the OTC Markets under the symbol “DLTI” without any current known unusual restrictions or limitations in of its Common Stock. 
 
6. Closing Date and Status. The "Closing" of this Agreement shall occur on the "Closing Date," which shall be the date of this Agreement or such date as the parties shall agree to in writing. The Closing shall take place by fax , email or at such place as the parties agree to in writing, with the applicable law relating to the Closing, to be that of the State of West Virginia (if for any reason a court in West Virginia shall not enforce this provision, then Michigan shall apply) for all purposes without reference to conflict of law principles, with no party or related person or associated person or professional to be subject to the law of any other jurisdiction or service of process as to any other jurisdiction.
 
7. Conditions Precedent to the Obligations of DLT RESOLUTION. All obligations of DLT RESOLUTION under this Agreement are subject to the fulfillment, prior to or as of the Closing, or such other date as the parties have agreed to in writing, of each of the following conditions precedent:
 
a. the representations by UNION STRATEGIES contained in this Agreement, or in any certificate or document delivered by UNION STRATEGIES pursuant to the provisions hereof, shall be true, correct and complete when made, and as of the Closing;
 
b. UNION STRATEGIES shall have performed and complied with all covenants, agreements and conditions required by this Agreement to be performed or complied with by UNION STRATEGIES on or before the Closing;
 
c. all instruments and documents, including EXHIBITS, attached hereto, and delivered to DLT RESOLUTION pursuant to the provisions hereof, will be true, correct and complete;
 
	 
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d. UNION STRATEGIES is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation;
 
e. UNION STRATEGIES has the corporate power to carry on its business, as now being conducted, and is duly qualified to do business in any jurisdiction where so required;
 
f. this Agreement has been duly authorized, executed and delivered by UNION STRATEGIES and is a valid and binding obligation of UNION STRATEGIES enforceable in accordance with its terms;
 
g. UNION STRATEGIES, through its Board of Directors, has taken all corporate action necessary for the performance of all of its obligations under this Agreement; and
 
h. the documents executed and delivered to DLT RESOLUTION are valid and binding in accordance with their terms and, in respect of stock certificates, as to the UNION STRATEGIES SHARES to be transferred to DLT RESOLUTION, and vest in DLT RESOLUTION all rights, title and interest in and to the shares.
 
8. Conditions Precedent to the Obligations of UNION STRATEGIES All obligations of UNION STRATEGIES under this Agreement are subject to the fulfillment, prior to or on the Closing, or such other date as the parties have agreed to in writing, of each of the following conditions precedent:
 
a. the representations by DLT RESOLUTION contained in this Agreement or in any certificate or document delivered by DLT Resolution pursuant to the provisions hereof, shall be true, correct and complete when made, and at and as of the time of Closing as though such representations and warranties were made at and as of such time;
 
b. DLT RESOLUTION shall have performed and complied with its covenants, agreements, and conditions required by this Agreement to be performed or complied with by it prior to, following or at the Closing, including the delivery of the DLT RESOLUTION STOCK when required hereunder;
 
c. UNION STRATEGIES is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation;
 
d. this Agreement has been duly executed and delivered by DLT RESOLUTION;
 
e. the share certificates to be executed and delivered (DLT RESOLUTION SHARES) to the UNION STRATEGIES stockholders hereunder vest in them all of the right, title and interest in the stock and said stock is duly and validly issued, fully paid and non-assessable subject to 2. a) above;
 
f. DLT RESOLUTION shall have executed and delivered to UNION STRATEGIES the documents under EXHIBITS to be executed and delivered by DLT RESOLUTION; and
 
	 
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9. Indemnification. As to each of DLT RESOLUTION and UNION STRATEGIES INC., each party to this Agreement shall indemnify and hold harmless each other party at all times after the date of this Agreement against and in respect of any liability, damage, deficiency, action, suit, proceeding, demand, assessment, judgment, cost and expense, including attorney's fees, resulting from any misrepresentation, breach of promise or nonfulfillment of any agreement on the part of any such party under this Agreement.
 
10. Nature and Survival Representations. All representations made by the parties in this Agreement shall survive the Closing, and the parties are carrying out the provisions of this Agreement in reliance solely on the representations, covenants and agreements contained in this Agreement, or made in writing at the Closing of the transaction herein provided for, and not upon any investigation which any such party may have made, or any representation, warranty, agreement, promise or information, written or oral, made by another person or firm other than as specifically set forth herein or in the EXHIBITS delivered in connection with this Agreement.
 
11. Documents at Closing. At Closing, in addition to what is required elsewhere herein, all EXHIBITS attached hereto, and the signature page hereto, shall be executed and or initialed, delivered by all appropriate parties, except the parties shall have such additional days as identified herein to perform as expressly provided herein, in which case such provision herein providing additional time beyond the Closing Date shall control notwithstanding anything to the contrary (provided, however, it shall be deemed that the Closing of this Agreement occurred on the Closing Date).
 
12. Miscellaneous Provisions.
 
A. Gender. Wherever the context shall require, all words herein in the masculine gender shall be deemed to include the feminine or neuter gender, all singular words shall include the plural, and all plural shall include the singular.
 
B. Severability. If any provision hereof is deemed unenforceable by a court of competent jurisdiction, the remainder of this Agreement, and the application of such provision in other circumstances shall not be affected thereby.
 
C. Further Cooperation. From and after the date of this Agreement, each of the parties hereto agrees to execute whatever additional reasonable documentation or instruments as are necessary to carry out the intent and purposes of this Agreement or to comply with any law.
 
	 
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D. Waiver. No waiver of any provision of this Agreement shall be valid unless in writing and signed by the waiving party. The failure of any party at any time to insist upon strict performance of any condition, promise, agreement or understanding set forth herein, shall not be construed as a waiver or relinquishment of any other condition, promise, agreement or understanding set forth herein or of the right to insist upon strict performance of such waived condition, promise, agreement or understanding at any other time.
 
E. Expenses. Each party shall bear all expenses incurred by each such party in connection with this Agreement and in the consummation of the transactions contemplated hereby and in preparation thereof.
 
F. Amendment. This Agreement may only be amended or modified at any time, and from time to time, in writing, executed by the parties hereto.
 
G. Captions. Captions herein are for the convenience of the parties and shall not affect the interpretation of this Agreement.
 
H. Counterpart Execution and Fax. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument, and may be executed by fax.
 
I. Assignment. This Agreement is not assignable.
 
J. Parties in Interest. Provisions of this Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and, their heirs, executors, administrators, other permitted successors and assigns, if any. Nothing contained in this Agreement, whether express or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any persons other than the parties to it and their respective successors and assigns, nor is anything in this Agreement intended to relieve or discharge the obligation or liability of any third persons to any party to this agreement, nor shall any provision give any third persons any right of subrogation or action against, any party to this Agreement.
 
K. Entire Agreement. This Agreement and the EXHIBITS attached hereto constitute the entire agreement and understanding of the parties on the subject matter hereof and supersede all prior agreements and understandings.
 
L. Construction. This Agreement shall be governed by the laws of the State of West Virginia without reference to conflict of laws and the venue for any action, claim or dispute in respect of this Agreement shall be such court of competent jurisdiction as is located in West Virginia , U.S.A. (if, for any reason a court fails to accept jurisdiction in West Virginia, then Michigan shall apply). The parties agree and acknowledge that each has reviewed this Agreement and the normal rule of construction that agreements are to be construed against the drafting party shall not apply in respect of this Agreement given the parties have mutually negotiated and drafted this Agreement.
 
	 
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M. Cooperation. The parties hereto agree to cooperate with one another in respect of this Agreement, including reviewing and executing any document necessary for the performance of this Agreement, to comply with law or as reasonably requested by any party hereto, or legal counsel to any party hereto.
 
N. Independent Legal Counsel. The parties hereto agree that (I) each has retained independent legal counsel as confirmed in writing in connection with the negotiation, preparation and execution of this Agreement, (II) each has been advised of the importance of retaining legal counsel, and (III) by the execution of this Agreement, each party who has not retained independent legal counsel acknowledges having waived such right.
 
The parties have executed this Agreement as of the date first written above.
 
DLT RESOLUTION INC.
 
By: /s/ 
 
Its: President & Chief Executive Officer
 
UNION STRATEGIES INC.
 
By: /s/ 
 
Its: Chief Executive Officer
 
UNION STRATEGIES INC.
 
By: /s/ 
 
Its: Sole Shareholder
 
	 
	12EX-10.1

 Exhibit 10.1 

RESTRICTED STOCK AWARD AGREEMENT 

MARKET-BASED VESTING 

(CEO) 
 PAYCOM SOFTWARE,
INC. 
 2014 LONG-TERM INCENTIVE PLAN 

1.    Grant of Award. Pursuant to the Paycom Software, Inc. 2014 Long-Term Incentive Plan (the
“Plan”) for Employees, Contractors, and Outside Directors of Paycom Software, Inc., a Delaware corporation (the “Company”), the Company grants to 

            Chad
Richison             
 (the “Participant”) 

an Award of Restricted Stock in accordance with Section 6.4 of the Plan. The number of shares of Common Stock awarded under this Restricted Stock Award
Agreement (this “Agreement”) is                                 
(                ) shares (the “Awarded Shares”). The “Date of Grant” of this Award is
[            ], 20[    ]. 

2.    Subject to Plan; Definitions. 

a.    This Agreement is subject to the terms and conditions of the Plan, and the terms of the Plan shall
control to the extent not otherwise inconsistent with the provisions of this Agreement. To the extent the terms of the Plan are inconsistent with the provisions of the Agreement, this Agreement shall control. This Agreement is subject to any rules
promulgated pursuant to the Plan by the Board or the Committee and communicated to the Participant in writing. 

b.    The capitalized terms used herein that are defined in the Plan shall have the same meanings assigned
to them in the Plan; provided, that the following terms shall have the meanings set forth below: 

i.    “Appraised Value” means the value ascribed to a share of the subject Equity
Securities as set forth in the most recent written appraisal previously issued by an independent Person selected by the audit committee of the Company nationally recognized as having experience in providing investment banking or similar appraisal or
valuation services and with expertise generally in the valuation of securities; provided, that it being understood that neither the Board nor the audit committee shall have any obligation to obtain any such appraisal more than once per
calendar year. 
 ii.    “Cause” shall have the meaning set forth in that certain
Amended and Restated Executive Employment Agreement, dated October 28, 2019, by and between the Participant and the Company. 

iii.    “Equity Securities” means, as applicable, (a) any capital stock or
other share capital, (b) any securities (other than debt securities) directly or indirectly convertible into or exchangeable for any capital stock, membership interests or other share capital or containing any profit participation features,
(c) any rights or options directly or indirectly to subscribe for or to purchase any capital stock, other share capital or securities containing any profit participation features or to subscribe for or to purchase any securities (other than

 
debt securities) directly or indirectly convertible into or exchangeable for any capital stock, other share capital or securities (other than debt securities) containing any profit participation
features, (d) any share appreciation rights, phantom share rights or other similar rights, or (e) any Equity Securities as defined in clauses (a) through (d) above issued or issuable with respect to the securities referred to in
clauses (a) through (d) above in connection with a combination of shares, recapitalization, merger, consolidation or other reorganization. 

iv.    “Equity Securities Value Per Share” means, for any class or series of Equity
Securities of the Company, for any date, the price determined by the first of the following clauses that applies: (a) if such Equity Securities are then listed or quoted on a Trading Market, the arithmetic average of the VWAP of a share of such
Equity Securities on each of the twenty (20) consecutive Trading Days immediately preceding such date; (b) if the Equity Securities are not then listed or quoted for trading on a Trading Market and if prices for such Equity Securities are
then reported on the OTC Bulletin Board (or a similar organization or agency succeeding to its functions of reporting prices), the arithmetic average of the closing bid price per share of such Equity Securities so reported on each of the twenty
(20) consecutive Trading Days immediately preceding such date; or (c) in all other cases, the Appraised Value of a share of such Equity Securities. 
  

	 	v.	 “First TEV Threshold” means
$[            ] billion. 

  

	 	vi.	 “Paycom” means the Company and its Subsidiaries collectively. 

 

	 	vii.	 “Second TEV Threshold” means
$[            ] billion. 

viii.    “Total Enterprise Value” means the sum of: (i) the product of
(A) the Equity Securities Value Per Share of a share of Common Stock not subject to vesting or other restrictions multiplied by (B) the number of outstanding shares of Common Stock, less (y) the number of outstanding shares of
Restricted Stock or Other Awards of shares of Common Stock without vesting restrictions, in each case, issued after the date of this Agreement (including outstanding shares of Common Stock resulting from the vesting of such Restricted Stock), and
less (z) the number of shares of Common Stock issued by the Company after the date of this Agreement in connection with any merger, consolidation, share exchange or other transaction in which, in each case, the Company acquires voting
securities of another Person or all or any portion of another Person’s assets; (ii) for each other class or series of Equity Securities of the Company, if any, the product of (A) Equity Securities Value Per Share for such class or
series of such Equity Securities of the Company multiplied by (B) the number of shares of such class or series of such Equity Securities of the Company, less (y) the number of shares of such class or series of such Equity Securities issued
under the Plan (or otherwise issued for compensatory purposes) after the date of this Agreement, and less (z) the number of shares of such class or series of such Equity Securities issued by the Company after the date of this Agreement in
connection with any merger, consolidation, share exchange or other transaction in which, in each case, the Company acquires the voting securities of another Person or all or any portion of another Person’s assets; and (iii) the principal
amount of all outstanding funded indebtedness of the Company as of the last day of the month immediately preceding the date of calculation less the aggregate amount of cash and cash equivalents of the Company (exclusive of funds held on behalf of
clients) as of the last day of the month immediately preceding the date of calculation. 

  
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 ix.    “Trading Day” means each
Monday, Tuesday, Wednesday, Thursday and Friday, other than any day on which securities are not traded on the applicable Trading Market or in the applicable securities market. 

x.    “Trading Market” means the primary securities exchange on which the Common
Stock is listed or quoted for trading on the date in question. 
 xi.    “VWAP”
means the daily volume weighted average price of a share of the Common Stock for such date on the Trading Market on which the Common Stock is then listed or quoted for trading as reported by Bloomberg L.P. (or successor thereto) using its
“Volume at Price” function (based on a Trading Day from 9:30 a.m. (New York City time) to 4:00 p.m. (New York City time)). 

3.    Vesting. Except as specifically provided in this Agreement and subject to certain restrictions and conditions
set forth in the Plan, the Awarded Shares shall vest as set forth below. Any Awarded Shares that become vested in accordance with this Section 3 shall be referred to as “Vested Shares” and any
Awarded Shares that, at the particular time of determination, have not become vested in accordance with this Section 3 shall be referred to as “Non-Vested
Shares.” 
 a.     Fifty percent (50%) of the Awarded Shares shall vest on the first date,
if any, that the Total Enterprise Value equals or exceeds the First TEV Threshold, provided that (i) the Participant is employed by or providing services to the Company or a Subsidiary on that date and (ii) such date occurs
on or before the sixth (6th) anniversary of the Date of Grant; and 

b.    Fifty percent (50%) of the Awarded Shares shall vest on the first date, if any, that the Total
Enterprise Value equals or exceeds the Second TEV Threshold, provided that (i) the Participant is employed by or providing services to the Company or a Subsidiary on that date and (ii) such date occurs on or before the sixth
(6th) anniversary of the Date of Grant. 
 Notwithstanding the foregoing, all Awarded Shares not
previously vested shall immediately become vested in full upon a Termination of Service as a result of the Participant’s death or Total and Permanent Disability. In addition, in the event that (i) a Change in Control occurs, and
(ii) this Agreement is not assumed by the surviving corporation or its parent, or the surviving corporation or its parent does not substitute its own restricted shares, then immediately prior to the effective date of such Change in Control, all
Awarded Shares not previously vested shall thereupon immediately become fully vested. 
 Notwithstanding anything herein to the contrary, in the event of
the Participant’s Termination of Service by the Company without Cause, the Non-Vested Shares shall remain outstanding for a period of one (1) year following such Termination of Service (but no later
than the sixth (6th) anniversary of the Date of Grant) and shall remain eligible for vesting in accordance with this Section 3; provided, that any Non-Vested Shares that do not become
Vested Shares within the one (1) year period immediately following such Termination of Service shall be immediately forfeited and shall cease to be outstanding. 

4.    Forfeiture of Awarded Shares. Awarded Shares that are not vested in accordance with
Section 3 shall be forfeited and shall cease to be outstanding on the earlier of (i) the sixth (6th) anniversary of the Date of Grant, or (ii) the date of the
Participant’s Termination of Service. Upon forfeiture, all of the Participant’s rights with respect to the forfeited Awarded Shares shall cease and terminate, without any further obligations on the part of the Company. 

  
 - 3 - 

 5.    Restrictions on Awarded Shares. The Participant shall not
be permitted to sell, transfer, pledge, hypothecate, margin, assign or otherwise encumber any of the Non-Vested Shares until such shares become Vested Shares in accordance with
Section 3. The Committee may in its sole discretion, remove any or all of such restrictions (or any other restrictions contained herein) on any Awarded Shares whenever it may determine that, by reason of changes in
applicable law or changes in circumstances after the date of this Agreement, such action is appropriate. 

6.    Legend. The following legend shall be placed on all certificates issued representing Awarded Shares: 

On the face of the certificate: 

“TRANSFER OF THIS STOCK IS RESTRICTED IN ACCORDANCE WITH CONDITIONS PRINTED ON THE REVERSE OF THIS CERTIFICATE.” 

On the reverse: 

“THE SHARES OF STOCK EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO AND TRANSFERABLE ONLY IN ACCORDANCE WITH THAT CERTAIN PAYCOM SOFTWARE,
INC. 2014 LONG-TERM INCENTIVE PLAN AND THAT CERTAIN RESTRICTED STOCK AWARD AGREEMENT, BY AND BETWEEN THE COMPANY AND THE PARTICIPANT, DATED AS OF              20    ,
COPIES OF WHICH ARE ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY IN OKLAHOMA CITY, OKLAHOMA. NO TRANSFER OR PLEDGE OF THE SHARES EVIDENCED HEREBY MAY BE MADE EXCEPT IN ACCORDANCE WITH AND SUBJECT TO THE PROVISIONS OF SAID PLAN. BY ACCEPTANCE OF
THIS CERTIFICATE, ANY HOLDER, TRANSFEREE OR PLEDGEE HEREOF AGREES TO BE BOUND BY ALL OF THE PROVISIONS OF SAID PLAN.” 
 The following
legend shall be inserted on a certificate evidencing Common Stock issued under the Plan if the shares were not issued in a transaction registered under the applicable federal and state securities laws: 

“SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED BY THE HOLDER FOR INVESTMENT AND NOT FOR RESALE, TRANSFER OR
DISTRIBUTION, HAVE BEEN ISSUED PURSUANT TO EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF APPLICABLE STATE AND FEDERAL SECURITIES LAWS, AND MAY NOT BE OFFERED FOR SALE, SOLD OR TRANSFERRED OTHER THAN PURSUANT TO EFFECTIVE REGISTRATION UNDER SUCH
LAWS, OR IN TRANSACTIONS OTHERWISE IN COMPLIANCE WITH SUCH LAWS, AND UPON EVIDENCE SATISFACTORY TO THE COMPANY OF COMPLIANCE WITH SUCH LAWS, AS TO WHICH THE COMPANY MAY RELY UPON AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY.” 

  
 - 4 - 

 All Awarded Shares owned by the Participant shall be subject to the terms of this Agreement
and shall be represented by a certificate or certificates bearing the foregoing legend. 
 7.    Delivery of
Certificates; Registration of Shares. The Company shall deliver certificates for Awarded Shares to the Participant or shall register such Awarded Shares in the Participant’s name, free of restriction under this Agreement, promptly after,
and only after, such Awarded Shares have become Vested Shares in accordance with Section 3. In connection with any issuance of a certificate for Restricted Stock, the Participant shall endorse such certificate in blank or
execute a stock power in a form satisfactory to the Company in blank and deliver such certificate and executed stock power to the Company. 

8.    Rights of a Stockholder. Except as provided in Section 4 and
Section 5 above, the Participant shall have, with respect to his Awarded Shares, all of the rights of a stockholder of the Company, including the right to vote the shares, and the right to receive any dividends thereon,
subject to the provisions of this Section 8. Any stock dividends paid with respect to Awarded Shares shall at all times be treated as Awarded Shares and shall be subject to all restrictions placed on such Awarded Shares;
any such stock dividends paid with respect to such Awarded Shares shall vest as the related Awarded Shares become vested. Any cash dividends paid with respect to Non-Vested Shares shall at all times be subject
to the provisions of this Agreement (including the vesting and forfeiture provisions set forth above); any such cash dividends paid with respect to such Non-Vested Shares shall vest as such shares become
Vested Shares, and shall be paid to the Participant on the date the Non-Vested Shares to which such cash dividends relate become Vested Shares. 

9.    Voting. The Participant, as record holder of the Awarded Shares, has the exclusive right to vote, or consent
with respect to, such Awarded Shares until such time as the Awarded Shares are transferred in accordance with this Agreement; provided that this Section 9 shall not create any voting right where the holders of such
Awarded Shares otherwise have no such right. 
 10.    Adjustment to Number of Awarded Shares. The number of
Awarded Shares shall be subject to adjustment in accordance with Articles 11-13 of the Plan. 

11.    Specific Performance. The parties acknowledge that remedies at law will be inadequate remedies for breach of
this Agreement and consequently agree that this Agreement shall be enforceable by specific performance. The remedy of specific performance shall be cumulative of all of the rights and remedies at law or in equity of the parties under this Agreement.

 12.    Participant’s Representations. Notwithstanding any of the provisions hereof, the Participant
hereby agrees that he or she will not acquire any Awarded Shares, and that the Company will not be obligated to issue any Awarded Shares to the Participant hereunder, if the issuance of such shares shall constitute a violation by the Participant or
the Company of any provision of any law or regulation of any governmental authority. Any such determination by the Company shall be final, binding, and conclusive. The rights and obligations of the Company and the rights and obligations of the
Participant are subject to all applicable laws. 
 13.    Investment Representation. Unless the Awarded Shares
are issued in a transaction registered under applicable federal and state securities laws, by his or her execution hereof, the Participant represents and warrants to the Company that all Common Stock which may be purchased and or received hereunder
will be acquired by the Participant for investment purposes for his or her own account and not with any intent for resale or distribution in violation of federal or state securities laws. Unless the Common

  
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Stock is issued to him or her in a transaction registered under the applicable federal and state securities laws, all certificates issued with respect to the Common Stock shall bear an
appropriate restrictive investment legend and shall be held indefinitely, unless they are subsequently registered under the applicable federal and state securities laws or the Participant obtains an opinion of counsel, in form and substance
satisfactory to the Company and its counsel, that such registration is not required. 
 14.    Participant’s
Acknowledgments. The Participant acknowledges that a copy of the Plan has been made available for his review by the Company, and represents that he is familiar with the terms and provisions thereof, and hereby accepts this Award subject to all
the terms and provisions thereof. The Participant hereby agrees to accept as binding, conclusive, and final all decisions or interpretations of the Committee or the Board, as appropriate, upon any questions arising under the Plan or this Agreement.

 15.    Law Governing. This Agreement shall be governed by, construed, and enforced in accordance with the laws
of the State of Delaware (excluding any conflict of laws rule or principle of Delaware law that might refer the governance, construction, or interpretation of this agreement to the laws of another state). 

16.    No Right to Continue Service or Employment. Nothing herein shall be construed to confer upon the Participant
the right to continue in the employ or to provide services to the Company or any Subsidiary, whether as an Employee or as a Contractor or as an Outside Director, or interfere with or restrict in any way the right of the Company or any Subsidiary to
discharge the Participant as an Employee, Contractor, or Outside Director at any time. 
 17.    Legal
Construction. In the event that any one or more of the terms, provisions, or agreements that are contained in this Agreement shall be held by a court of competent jurisdiction to be invalid, illegal, or unenforceable in any respect for any
reason, the invalid, illegal, or unenforceable term, provision, or agreement shall not affect any other term, provision, or agreement that is contained in this Agreement and this Agreement shall be construed in all respects as if the invalid,
illegal, or unenforceable term, provision, or agreement had never been contained herein. 
 18.    Covenants and
Agreements as Independent Agreements. Each of the covenants and agreements that are set forth in this Agreement shall be construed as a covenant and agreement independent of any other provision of this Agreement. The existence of any claim or
cause of action of the Participant against Paycom, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of the covenants and agreements that are set forth in this Agreement. 

19.    Entire Agreement. This Agreement together with the Plan supersede any and all other prior understandings and
agreements, either oral or in writing, between the parties with respect to the subject matter hereof and constitute the sole and only agreements between the parties with respect to the said subject matter. All prior negotiations and agreements
between the parties with respect to the subject matter hereof are merged into this Agreement. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any party
or by anyone acting on behalf of any party, which are not embodied in this Agreement or the Plan and that any agreement, statement or promise that is not contained in this Agreement or the Plan shall not be valid or binding or of any force or
effect. 
 20.    Parties Bound. The terms, provisions, and agreements that are contained in this Agreement shall
apply to, be binding upon, and inure to the benefit of the parties and their respective heirs, executors, administrators, legal representatives, and permitted successors and assigns, subject to the limitation on assignment expressly set forth
herein. No Person shall be permitted to acquire any Awarded Shares without first executing and delivering an agreement in the form satisfactory to the Company making such Person or entity subject to the restrictions on transfer contained herein.

  
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 21.    Modification. No change or modification of this Agreement
shall be valid or binding upon the parties unless the change or modification is in writing and signed by the parties. Notwithstanding the preceding sentence, the Company may amend the Plan to the extent permitted by the Plan. 

22.    Headings. The headings that are used in this Agreement are used for reference and convenience purposes only
and do not constitute substantive matters to be considered in construing the terms and provisions of this Agreement. 

23.    Gender and Number. Words of any gender used in this Agreement shall be held and construed to include any
other gender, and words in the singular number shall be held to include the plural, and vice versa, unless the context requires otherwise. 

24.    Notice. Any notice required or permitted to be delivered hereunder shall be in writing and shall be deemed
to have been given (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); or (c) on the third (3rd) day after the date
mailed, by certified or registered mail (in each case, return receipt requested, postage pre-paid). Notices must be sent to the respective parties at the following addresses (or at such other addresses as they
have theretofore specified by written notice delivered in accordance herewith: 
 Notice to the Company shall be addressed and delivered as
follows: 
 Paycom Software, Inc. 

7501 W. Memorial Rd. 
 Oklahoma
City, OK 73142 
 Attn: Chief Financial Officer 

Notice to the Participant shall be addressed and delivered as set forth on the signature page. 

25.    Tax Requirements. The Participant is hereby advised to consult immediately with his or her own tax
advisor regarding the tax consequences of this Agreement, the method and timing for filing an election to include this Agreement in income under Section 83(b) of the Code, and the tax consequences of such election. By execution of
this Agreement, the Participant agrees that if the Participant makes such an election, the Participant shall provide the Company with written notice of such election in accordance with the regulations promulgated under
Section 83(b) of the Code. The Company or, if applicable, any Subsidiary (for purposes of this Section 25, the term “Company” shall be deemed to include any applicable
Subsidiary), shall have the right to deduct from all amounts paid in cash or other form in connection with the Plan, any Federal, state, local, or other taxes required by law to be withheld in connection with this Award. The Participant receiving
shares of Common Stock issued under the Plan shall pay to the Company, in accordance with the provisions of this Section 25, the amount of any taxes that the Company is required to withhold in connection with the
Participant’s income arising with respect to this Award. Such payment must be made prior to the delivery of any certificate representing shares of Common Stock, as follows: (i) if the Participant is a Reporting Participant and/or is
subject to the Company’s “Insider Trading Policy” at the time of vesting of Awarded Shares, then the tax withholding obligation must be satisfied by the Company’s withholding of a number of shares to be delivered upon the vesting
of such Awarded Shares, which shares so withheld have an aggregate Fair Market Value that equals (but does not exceed) the required tax withholding payment (the “Net Settlement of Shares”), provided that, the Committee
(excluding the Participant if the Participant is a member of the Committee) may, in its 

  
 - 7 - 

 
sole discretion, instead require the satisfaction of the tax withholding obligation in accordance with (ii)(A), (ii)(B) or (ii)(D) below; or (ii) if the Participant is
neither a Reporting Participant nor subject to the Company’s “Insider Trading Policy” at the time of vesting of Awarded Shares, then such payment may be made (A) by the delivery of cash to the Company in an amount that equals or
exceeds (to avoid the issuance of fractional shares) the required tax withholding obligations of the Company; (B) if the Company, in its sole discretion, so consents in writing, the actual delivery by the Participant to the Company of shares of
Common Stock, other than Restricted Stock or Common Stock that the Participant has acquired from the Company within six (6) months prior thereto, which shares so delivered have an aggregate Fair Market Value that equals or exceeds (to avoid the
issuance of fractional shares) the required tax withholding payment; (C) if the Company, in its sole discretion, so consents in writing, by the Net Settlement of Shares; or (D) any combination of (A), (B), or (C). The Company may, in its
sole discretion, withhold any such taxes from any other cash remuneration otherwise paid by the Company to the Participant. 
 * * * * * * *
* * * 
 [Remainder of Page Intentionally Left Blank. 

Signature Page Follows] 

  
 - 8 - 

 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly
authorized officer, and the Participant, to evidence his or her consent and approval of all the terms hereof, has duly executed this Agreement, as of the date specified in Section 1 hereof. 

 

			
	COMPANY:
	  
 Paycom Software,
Inc.

 
			
		
	By:	 	  

	Name:	 	  

	Title:	 	  

 
			
	
	PARTICIPANT:
	
	  

	Signature

 
			
		
	Name:	 	  

	Address:

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