Document:

Exhibit
10.2

 

ADVISORY AGREEMENT

 

This Advisory Agreement (this “Agreement”)
is made and entered into as of November 7, 2014, by and among ACI Merchant Systems, LLC, a Pennsylvania limited liability company
(the “Company”) and JetPay Corporation, a Delaware corporation (“Advisor”).

 

WHEREAS, Advisor, the Company, Cathy Smith
and Michael Collester have entered into that certain Unit Purchase Agreement (the “Purchase Agreement”), dated
as of the date hereof, pursuant to which Advisor has purchased all of the issued and outstanding membership interests in the Company;
and

 

WHEREAS, the Company desires to retain Advisor
and Advisor desires to perform for the Company certain services.

 

NOW, THEREFORE, in consideration of the premises
and the mutual covenants contained herein and intending to be legally bound hereby, and for good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereto, effective as of the closing of the transactions contemplated
by the Purchase Agreement (the “Effective Time”) and without any further action required by any party hereto,
hereby agree as follows:

 

1.       Term.
This Agreement shall be in effect for an initial term of ten (10) years commencing at the Effective Time (the “Term”),
and shall be automatically extended thereafter on a year to year basis unless the Company or Advisor provides written notice of
its desire to terminate this Agreement to the other party ninety (90) days prior to the expiration of the Term or any extension
thereof.

 

2.        Services.
Advisor shall perform or cause to be performed such services for the Company as directed by the Company’s board of managers,
which may include, without limitation, the following:

 

(a)        support
and analysis of financing alternatives, including, without limitation, in connection with acquisitions, capital expenditures and
refinancing of existing indebtedness;

 

(b)        finance
functions, including assistance in the preparation of financial projections, and monitoring of compliance with financing agreements;

 

(c)        human
resource functions, including searching for and hiring executives;

 

(d)        managerial
assistance and executive support services; and

 

    	 

    	 

    

 

(e)        other
services for the Company or its subsidiaries upon which the Company’s board of managers and Advisor agree.

 

3.        Advisory
Fees.

 

(a)        Annual
Fee. Subject to the terms and conditions herein, payment for services rendered by Advisor and/or its affiliates pursuant to
this Agreement (all such fees, the “Management Fees”) will equal $40,000 per month. The Management Fees shall
be payable to Advisor or its designee by the Company in advance on the first business day of each month.

 

(b)        Payment;
Subordination.

 

(i)        Any
fees or expenses payable to Advisor or its designees pursuant to this Section 3 shall be paid by wire transfer to an account designated
in writing by Advisor. Notwithstanding anything to the contrary in this Section 3, the Company shall not be required to pay the
fees under Section 3(a) and Section 3(b) hereof if and to the extent such payment is expressly prohibited by (x) the Loan and Security
Agreement, dated as of the date hereof, by and among the Company, Advisor, as guarantor, and Metro Bank (the “Credit Facility”),
in each case, so long as it has not been terminated and remains in full force and effect and Advisor shall promptly turnover and
return any such payment received in violation of the Credit Facility to the Company. Any payments otherwise owed hereunder which
are not made due to the prohibition in this Section 3(b) shall not be cancelled but rather accrue and bear interest at the base
rate that the Term Loan (as defined in the Credit Facility) bears interest under the Credit Facility, and shall be payable by the
Company promptly when, and to the extent, that the Company is no longer prohibited from making such payments by the Credit Facility.

 

(ii)        No
provision of this Section 3 may be amended or otherwise modified without the prior written consent of the requisite holders of
indebtedness evidenced by the Credit Facility.

 

4.        Personnel.
Advisor shall provide and devote to the performance of this Agreement such partners, employees and agents of Advisor as Advisor
shall deem appropriate to the furnishing of the services required.

 

5.        Notices.
All notices hereunder shall be in writing and shall be delivered personally or mailed by United States mail, postage prepaid, addressed
to the parties as follows:

 

To the Company:

 

ACI Merchant Systems, LLC

136 East Watson Avenue

P.O. Box 69

Langhorne, PA 19047

Attention: Michael Collester

To Advisor:

 

JetPay Corporation

1175 Lancaster Avenue, Suite 200

Berwyn, PA 19312

Attention: Chief Executive Officer

 

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with a copy to:

 

Dechert LLP

Cira Centre

2929 Arch Street

Philadelphia, PA 19104

Attention: James A. Lebovitz

 

6.        Assignment.
The Company may not assign any obligations hereunder to any other party without the prior written consent of Advisor (which consent
shall not be unreasonably withheld).

 

7.        Successors.
This Agreement and all the obligations and benefits hereunder shall inure to the successors and assigns of the parties.

 

8.        Counterparts.
This Agreement may be executed and delivered by each party hereto in separate counterparts, each of which when so executed and
delivered shall be deemed an original and all of which taken together shall constitute but one and the same agreement.

 

9.        Entire
Agreement; Modification; Governing Law. The terms and conditions hereof constitute the entire agreement between the parties
hereto with respect to the subject matter of this Agreement and supersede all previous communications, either oral or written,
representations or warranties of any kind whatsoever, except as expressly set forth herein. No modifications of this Agreement
nor waiver of the terms or conditions thereof shall be binding upon either party unless approved in writing by an authorized representative
of such party. All issues concerning this Agreement shall be governed by and construed in accordance with the laws of the State
of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York
or any other jurisdiction) that would cause the application of the law of any jurisdiction other than the State of New York.

 

10.        Effective
Time. This Agreement shall be effective as of the Effective Time without further action required on the part of any party hereto.
If the Effective Time does not occur and the Purchase Agreement is terminated, this Agreement shall have no force or effect and
shall be deemed void ab initio.

 

11.        Basis
for Fees; Expenses. The parties hereto acknowledge and agree that the fees payable under this Agreement reflect Advisor’s
significant overhead costs. The parties hereto further agree that the fees payable hereunder are not based on hourly or per diem
rates and Advisor shall not be required to account for its services on an hourly, per diem or similar basis. The Company agrees
that, in addition to the fees payable under this Agreement, it shall reimburse Advisor and its affiliates for their reasonable
out-of-pocket expenses (excluding normal overhead costs) incurred in performing the services contemplated by this Agreement.

 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 

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

 

	 	JETPAY CORPORATION
	 	 
	 	By:	/s/ Peter B. Davidson
	 	 	Name:  Peter B. Davidson
	 	 	Title:  Vice Chairman and Secretary   

 

	 	ACI MERCHANT SYSTEMS, LLC
	 	 
	 	By:	/s/ Michael Collester
	 	 	Name: Michael Collester
	 	 	Title: President

 

[Signature page to Advisory Agreement]Exhibit 10.3

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER
THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY OF THE SECURITIES OR “BLUE SKY”
LAWS OF ANY JURISDICTION AND, ACCORDINGLY, MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IF REGISTERED PURSUANT TO
THE PROVISIONS OF THE SECURITIES ACT OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER
SUCH REGISTRATION NOR SUCH AN EXEMPTION IS REQUIRED BY LAW. NOTWITHSTANDING THE ABOVE, NO TRANSFER MAY BE MADE IN ANY JURISDICTION
EXCEPT IN COMPLIANCE WITH APPLICABLE LAWS IN SUCH JURISDICTION.

 

PROMISSORY NOTE 

 

	$7,500,000.00	 	Dated: November 7, 2014

 

WHEREAS, ACI Merchant Systems, LLC (“Lender”)
is a borrower and party to that certain Loan and Security Agreement, dated as of November 7, 2014, by and among Lender, AD Computer
Corporation, each other Person joined hereto as a borrower from time to time, JetPay Corporation (“Borrower”),
and Metro Bank.

 

WHEREAS, Lender desires to make a loan to
Borrower in the original principal amount of seven million five hundred thousand dollars ($7,500,000.00);

 

NOW THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Borrower and, by its acceptance hereof, Lender hereby agree as follows:

 

FOR VALUE Borrower,
HEREBY PROMISES TO PAY to the order of LENDER the principal amount of $7,500,000 in full upon notice from the Lender to the Borrower.

 

		I.	PAYMENT TERMS

 

The Borrower promises
to pay interest on the unpaid principal amount hereof on the day on which the principal amount is paid in full, at an interest
rate equal to the short-term Applicable Federal Rate as required by Section 7872(f)(2)(B) of the Internal Revenue Code, compounded
semiannually; provided, however, that any overdue amount of principal, interest or other amounts payable hereunder
shall bear interest, payable on demand, at the same such interest rate as described above. Interest shall accrue from the date
hereof until the date of payment in full of the principal amount hereof and all interest and other amounts payable hereunder (to
the extent permitted by applicable law) and shall be computed on the basis of a 360-day year of twelve 30-day months. Interest
is to be paid in cash.

 

    	 

    	 

    

 

		II.	REPAYMENT TERMS

 

This Promissory Note shall be prepayable
at any time without penalty. The full balance of this Promissory Note and all accrued interest thereunder shall be due and payable
on November 7, 2022.

 

		III.	OPTIONAL PAYMENTS

 

This Promissory Note
is prepayable by the Borrower at any time in whole or in part without any premium or penalty. The amount of any such optional payment
shall be applied first to accrued but unpaid interest outstanding under this Agreement and then to principal.

 

		IV.	GENERAL

 

This Agreement embodies
the entire agreement between the Borrower and Lender. Any amendments to this Agreement must be executed by all parties hereto.

 

The Agreement may not
be transferred, sold, assigned, pledged, or otherwise encumbered or disposed of, and no lien, charge or other encumbrance may be
created or permitted to be created thereon without the prior written consent of Lender.

 

The Borrower expressly
waives presentment, demand, protest or any notice of any kind whatsoever. No delay or omission by the Lender in exercising any
of its rights hereunder or otherwise shall operate as a waiver of any such right or of any other right of the Lender, nor shall
any waiver by the Lender of any such right on one occasion be deemed a bar to or waiver of such right or any other right on any
other occasion.

 

This Agreement shall
be deemed to have been made under, and shall be governed by, and construed in accordance with, the laws of the State of New York.

 

REMAINDER OF PAGE LEFT BLANK INTENTIONALLY

 

    	 

    	 

    

 

IN WITNESS WHEREOF
the parties have executed and delivered this Agreement on the date first written above.

 

	 	JETPAY CORPORATION	 
	 	 	 
	 	Borrower	 
	 	 	 
	 	 	By: /s/ Peter B. Davidson 	 
	 	 	 	 
	 	 	Name:  Peter B. Davidson	 
	 	 	Title:  Vice Chairman	 
	 	 	 
	 	ACI MERCHANT SYSTEMS, LLC	 
	 	Lender	 
	 	 	 
	 	 	By: /s/ Michael Collester	 
	 	 	 	 
	 	 	Name:  Michael Collester	 
	 	 	Title:  Chief Executive Officer	 

 

[Signature Page to Promissory Note]

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