Document:

Document

Exhibit 10.2

 

July 1, 2020

Matthew Cicchinelli
c/o PAR Government Systems Corporation
421 Ridge Street
Rome, New York 13440
        Re: Employment Letter: Service as President (the “Letter”)
Dear Matt:
        We are pleased to present you with revised terms of employment in connection with the continuation of your service as President of PAR Government Systems Corporation (the “Company”). You will continue to report to the Chief Executive Officer and President of PAR Technology Corporation (“PAR Technology”).
As the President of the Company, you will continue to perform those duties and shall have such authority, duties, and responsibilities customarily consistent with, and incident to, the office of President, and you shall perform such additional duties and shall have such additional authority and responsibilities as the Chief Executive Officer and President of PAR Technology (collectively and individually, the “CEO”) may prescribe. Your principal office will be located in Rome, New York, provided that you understand and agree that you will be required to travel to properly fulfill your employment duties and responsibilities.  

        You will devote all of your business time, energy, business judgment, knowledge and skill and your best efforts to the performance of your duties with the Company, provided that the foregoing shall not prevent you from (a) with the prior documented approval of the CEO, serving on the boards of directors (and board committees) of non-profit organizations and other for profit companies, (b) participating in charitable, civic, educational, professional, community or industry affairs, and (c) managing your passive personal investments, so long as, in the reasonable discretion and good faith of the CEO, the activities described in clauses (a) – (c), individually or in the aggregate, do not interfere or conflict with your duties and responsibilities to the Company or create a potential business or fiduciary conflict.
        The terms of this Letter also include the Non-Disclosure; Non-Competition; Non-Solicitation Agreement attached hereto as Exhibit A (the “NDA”), which forms a part of this Letter.
        1. Base Salary. Your annual base salary will be $259,350.00, less applicable tax withholding and deductions as required or permitted by law, payable in accordance with the Company’s regular payroll. Your base salary shall be subject to review by the Board of Directors of PAR Technology (or Committee thereof, the “Board”) upon the recommendation of the CEO from time to time, but no less than annually, and may be adjusted from time to time in the Board’s sole discretion but shall not in any year be reduced below your then annual base salary. 
        2. Short Term Incentive.  For each fiscal year that you continue to as President of the Company you will participate in PAR Technology’s annual short-term incentive plan as in effect from time to time for executive officers (“STI”). Under the STI plan, you will have the opportunity to earn, on an annual basis, a cash bonus subject to the achievement of performance goals for the applicable year, as established by the Board. For the fiscal year ending December 31, 2020 (the “FY 2020”), your STI bonus target shall be 55% of your base salary earned in FY 2020 (“2020 STI bonus target”) and your STI bonus payout will be 50%, 100% and 160% of your 2020 STI bonus target, subject to the achievement of performance goals set forth in PAR Technology’s 2020 annual operating plan. Annual STI bonus targets and associated payouts for subsequent fiscal years are subject to approval and adjustment by the Board. Any annual STI bonus earned for a completed fiscal year will be paid in the immediately following fiscal year at the same time that annual STI bonuses are paid to other executive officers of the Company, subject to your continued employment with the Company through the date of payment. Any STI bonus payments paid to you shall be less applicable tax withholding and deductions as required or permitted by law. All STI bonus payments, if any, are subject to the Board’s certification as to the satisfaction of the performance goals for the applicable year.
        3. Long-Term Incentive. You will participate in PAR Technology’s long-term incentive plan as in effect from time to time for executive officers (“LTI”) during FY 2020 and in subsequent fiscal years while you continue to serve as President of the Company. Your 2020 LTI Award target is $75,000.00, subject to the achievement of Company and individual performance targets as certified by the Board of Directors (or Committee thereof). Your LTI Award will be made to you pursuant to the Amended and Restated PAR Technology Corporation 2015 Equity Incentive Plan, as the same may be 
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amended or restated from time to time, or its successor (the "Plan") and subject to the terms and conditions of PAR Technology’s standard forms of LTI award agreements then in effect. 
        4. Employee Benefits. Subject to satisfaction of any applicable eligibility requirements, you will continue to be eligible to participate in any employee benefit plan that the Company has adopted or may adopt, maintain, or contribute to for the benefit of its employees, or that PAR Technology has adopted or may adopt, maintain, or contribute to for the benefit of its and its subsidiaries’ executive officers, which includes health insurance, LTD/ADD/life insurance, and 401(k). You will earn one week of paid vacation for each three months of employment that you complete (for a total of four weeks for each twelve months of completed employment) and you will also receive seven (7) days of personal time off for each twelve months of completed employment. You will be reimbursed for reasonable expenses incurred by you in the course of performing your duties and responsibilities as President in accordance with the Company’s business expense reimbursement policy. The Company reserves the right to amend, modify or terminate any of its benefit plans, policies, or programs at any time and for any reason.
5. Termination.  
(a) Termination Without Cause & Termination for Good Reason. In the event (i) your employment is terminated by the Company other than on account of (x) “for Cause” (as herein defined), (y) your inability to substantially perform your duties on account of a physical or mental injury, illness or impairment, or (z) a breach by you of the terms of this Letter or NDA, or (ii) you terminate your employment for “Good Reason” (as herein defined), subject to the Company’s right to cure (described below) and its failure to cure; then, subject to satisfaction of the requirements of Section 6, in addition to payment of your Accrued Benefits (as herein defined): 
(A) the Company will pay you any STI bonus earned but unpaid with respect to a fiscal year ended (“Completed STI Payment”), payable as provided in Section 2 (without regard to any continued employment requirement);
(B) the Company will pay you any employee benefit incentive (“EBI”) earned under the Company’s annual EBI program, but unpaid with respect to a fiscal year ended (“Completed EBI Payment”), payable at the same time that annual EBI bonuses are paid to other employees of the Company (without regard to any continued employment requirement); and
(C) the Company will pay you a series of semi-monthly severance payments for 6 months, each in an amount equal to one-twenty fourth (1/24th) of your annual base salary in effect on the date of your termination, to be paid in accordance with the Company’s normal payroll practices. 
(b) Termination Without Cause & Termination for Good Reason During a Change of Control Protection Period. In the event both (i) (A) your employment is terminated by the Company other than on account of (x) for Cause, (y) your inability to substantially perform your duties on account of a physical or mental injury, illness or impairment, or (z) a breach by you of the terms of this Letter or NDA, or (B) you terminate your employment for Good Reason, subject to the Company’s right to cure (described below) and its failure to cure and (ii) such termination occurs during a Change of Control 
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Protection Period (as herein defined); then, subject to satisfaction of the requirements of Section 6, in addition to payment of your Accrued Benefits: 
(A) the Company will pay you the Completed STI Payment, payable as provided in Section 2 (without regard to any continued employment requirement);
(B) the Company will pay you the pro-rated portion of the annual STI bonus that you would have earned for the fiscal year in which your employment was terminated (if you had remained employed for the entire year), based on the number of days in such year that had elapsed as of the termination date of your employment, which shall be payable as provided in Section 2 (without regard to any continued employment requirement);
(C) the Company will pay you the Completed EBI Payment, payable at the same time that annual EBI bonuses are paid to other employees of the Company (without regard to any continued employment requirement);
(D) any unvested shares of restricted stock granted to you on May 10, 2019 pursuant to a grant notice and restricted stock agreement dated on even date therewith, shall vest; and  
(E) the Company will pay you a series of semi-monthly severance payments for 9 months, each in an amount equal to one-twenty fourth (1/24th) of your annual base salary in effect on the date of your termination, to be paid in accordance with the Company’s normal payroll practices. 
(c) For purposes of this Letter:
        (i) Accrued Benefits. In the event of the termination of your employment for any reason, you will be entitled to the following payments: (A) any base salary accrued but unpaid through the date of termination; (B) any accrued but unused vacation time through the date of termination; (C) any unpaid business expenses incurred by you in the course of conducting the Company’s business and in accordance with the Company’s business expense reimbursement policy; and (D) any nonforfeitable benefits payable to you under the terms of any welfare benefit plans or retirement benefit plans maintained by the Company or PAR Technology for its subsidiary employees, whether or not subject to ERISA, payable in accordance with the terms of the applicable plan (collectively, “Accrued Benefits”).
(ii) Change of Control. For purposes of this Letter, “Change of Control” shall mean (A) the sale or other disposition of all or substantially all of the Company’s assets to one or more independent third parties; (B) the sale of more than 50% of the then outstanding common stock of the Company to one or more independent third parties, or (C) the merger or consolidation of the Company in a transaction or transactions in which one or more independent third parties following such transaction(s) own(s) more than 50% of the then outstanding voting securities of the surviving company. For purposes of this definition, “independent third parties” shall mean any person, entity or group (within the meaning of Rule 13d-3 of the Securities Exchange Act of 1934) who, immediately prior to or following the contemplated transaction(s), is not directly or indirectly owned or otherwise controlled by PAR Technology or any of its affiliates; and “control” shall mean with respect to any person or entity, the power to direct the management and policies of such person or entity, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise. 
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        (iii) Change of Control Protection Period. For purposes of this Letter, “Change of Control Protection Period” shall mean the period beginning the third month immediately before and ending the 13th month immediately following the effective date of a Change of Control.
(iv) For Cause. Your employment shall terminate immediately upon written notice by the Company to you of a termination for Cause. “Cause” shall mean: (A) your willful refusal or material failure to perform your job duties and responsibilities (other than by reason of your serious physical or mental illness, injury, or medical condition); (B) your willful refusal or failure to comply in any material respect with (1) PAR Technology’s policies and the Company’s policies; or (2) lawful directives of the CEO or Board; (C) your material breach of any contract or agreement between you and PAR Technology or you and the Company (including but not limited to this Letter and any incentive equity or restrictive covenants agreement(s) (or similar agreement between you and PAR Technology or you and the Company, including the NDA); (D) your material breach of any statutory duty, fiduciary duty or any other obligation that you owe to the Company; (E) your commission of an act of fraud, theft, embezzlement, or other unlawful act against the Company or involving its property or assets (including, without limitation, its products); (F) your violation of Federal or state securities laws; (G) your engaging in unprofessional, unethical or other acts that materially discredit the Company or are materially detrimental to the reputation, character or good standing of the Company, its property or assets (including, without limitation, its products); and (H) your indictment or conviction or plea of nolo contendere or guilty plea with respect to any felony or crime of moral turpitude. In the event the CEO or the Board determines to terminate your employment for Cause, you shall be given written notice of such determination and a period of 30 days following your receipt of such notice to cure such "for Cause" event to the reasonable satisfaction of the CEO or the Board. Notwithstanding anything to the contrary contained herein, your right to cure shall not apply if there are habitual breaches by you or if the CEO or the Board determines, in the CEO’s or the Board’s reasonable discretion, that the "for Cause" event is not susceptible to cure. 
(v) Good Reason. You may terminate your employment for “Good Reason” upon not less than 30 days' prior written notice by you to the Company. “Good Reason” shall mean any of the following circumstances to which you have not consented, which are not substantially cured by the Company within 30 days following written notification from you to the Company as required below: (A) the required relocation of your primary work location outside of the Central New York Region; (B) the diminution (other than temporarily while physically or mentally incapacitated or as required by applicable law) in your title, duties, authorities or responsibilities, excluding immaterial diminutions not taken in bad faith; or (C) the Company's breach of its material obligations to you under this Letter. You will provide the Company with a written notice detailing the specific circumstances alleged to constitute Good Reason within 30 days after you first know, or with the exercise of reasonable diligence would have known, of the occurrence of such circumstances, and must actually terminate your employment within 30 days following the expiration of the Company's cure period as set forth above if the Company has failed to substantially cure the alleged breach. Otherwise, any claim of such circumstances as "Good Reason" shall be deemed irrevocably waived by you. 
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6. Conditions of Payment. The Company’s payment or provision of benefits beyond Accrued Benefits is subject to your continued compliance of the terms of your NDA and any additional post-employment covenants set forth in this Letter and/or in the Release (as herein defined) and your delivery to the Company of a fully executed and effective release of claims in favor of the Company, in a form satisfactory to the Company ("Release”); the Release will be deemed “effective” when it is no longer subject to revocation by you, if applicable. To the extent that any amounts payable under Section 5 constitute "non-qualified deferred compensation” for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), any such payment scheduled to occur during the first 6 months following such termination shall not be paid until the expiration of 6 months following such termination and shall include payment of any amount that was otherwise scheduled to be paid prior thereto.
        7. Additional Provisions. 
Notwithstanding anything to the contrary contained in the Plan, to the extent that, upon a Change of Control (as defined in the Plan), any of the payments and benefits provided for under the Plan or any other agreement or arrangement between the Company and you (collectively, the “Payments”) would constitute a “parachute payment” within the meaning of Section 280G of the Code (a “Parachute Payment”), as determined by an independent accountant or tax advisor (“Independent Tax Advisor”) selected by the Company, then, if and solely to the extent that reducing the benefits payable hereunder would result in you receiving a greater amount, on an after-tax basis, taking into account any excise taxes payable under Section 4999 of the Code and all applicable income, employment and other taxes payable on such amounts, the amounts payable hereunder shall be reduced or eliminated, as the case may be, so that the total amount of Parachute Payments received by you do not exceed the amount that would result in no portion of the Payments being treated as an excess parachute payment pursuant to Section 280G of the Code. Any reduction in the amount of compensation or benefits effected pursuant to this paragraph shall first come, in order and, in each case, solely to the extent necessary, from any cash severance benefits payable to you, then from any other payments which are treated in their entirety as Parachute Payments and then from any other Parachute Payments payable to you, as determined by the Independent Tax Advisor.
        You acknowledge that certain matters in which you are or will be involved during your employment may necessitate your cooperation in the future. Accordingly, following the termination of your employment for any reason, to the extent reasonably requested by the CEO or the Board, you agree that you shall cooperate with the Company in connection with matters arising out of your employment with the Company; provided that the Company shall make reasonable efforts to minimize disruption of your other activities. The Company shall reimburse you for reasonable expenses incurred in connection with such cooperation.
        This Letter does not represent any guarantee of employment for any period, subject to the terms of this Letter, the Company may terminate your employment at any time, with or without notice, for any reason or no reason.
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        This Letter and those documents expressly referred to herein (including the NDA) embody the complete agreement and understanding between you and the Company with respect to the subject matter herein and supersede and preempt any prior understandings, agreements (including your employment letter dated December 10, 2015 (the “December 2015 Letter”), or representations by and between you and the Company, written or oral, which may have related to the subject matter hereof in any way. 
This Letter shall be binding upon and inure to the benefit of and be enforceable by the Company’s successors and assigns and, except as expressly provided in this Letter, no term or provision of this Letter is intended to be, or shall be, for the benefit of any person other than the Company and you. PAR Technology Corporation, the parent to the Company, is expressly a third-party beneficiary of this Letter. The provisions of this Letter shall be deemed severable. The invalidity or unenforceability of any provision of this Letter in any jurisdiction shall not affect the validity, legality or enforceability of the remainder of this Letter in such jurisdiction or the validity, legality or enforceability of any provision of this Letter in any other jurisdiction, it being intended that all rights and obligations of the Company and you hereunder shall be enforceable to the fullest extent permitted by applicable law. For purposes of this Letter, the words “include,” “includes” and “including” shall be deemed to be followed by the words “without limitation”.
        The validity, interpretation, construction and performance of this Letter, and all acts and transactions pursuant hereto and the rights and obligations of you and the Company hereunder shall be governed, construed, and interpreted in accordance with the laws of the State of New York, without giving effect to principles of conflicts of law. 
        If you agree with the terms and conditions of this Letter, please evidence your agreement by signing and dating the enclosed copy of this Letter in the space indicated and return it to me. The Effective Date of this Letter shall be the date of your countersignature on this Letter, which shall be accompanied by your duly executed NDA.

[Remainder of this Page Intentionally Left Blank, 
Signature Page Immediately Follows]
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Feel free to contact me if you have questions or if you need any additional information. 

              Sincerely, 
   
              By: /s/ Bryan A. Menar
              Name: Bryan A. Menar
              Title: Treasurer

Accepted and Agreed to:

/s/ Mathew Ciccinelli
Matthew Cicchinelli

Dated: July 6, 2020

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Exhibit 10.3

Amendment

Matthew Cicchinelli and PAR Government Systems Corporation entered into an employment agreement (“Employment Agreement”) effective July 6, 2020. In furtherance of the terms of the Employment Agreement, the Grant Notice – Restricted Stock Award (the “Grant Notice”) and the Restricted Stock Award Agreement evidencing the grant of 10,000 shares of Restricted Stock (as defined in the Grant Notice) of PAR Technology Corporation (“PAR Technology”) on May 10, 2019 and attached hereto as Exhibit A (collectively, the “Award Agreement”) are hereby amended, effective July 6, 2020, as follows:

1. The below provision of the Grant Notice is hereby amended to read in its entirety as follows (and the Restricted Stock Award Agreement is amended as provided in such amended provision):
						
	Change of Control (as defined in the Award Agreement):	As an exception to the Vesting Schedule, in the event the Participant’s employment is terminated pursuant to Section 5(b) of the Employment Agreement then, subject to satisfaction of the requirements of Section 6 of the Employment Agreement, all unvested shares of Restricted Stock shall vest as of the effective date of Participant’s termination of employment (as contemplated by Section 5(b)(D) of the Employment Agreement. For purposes of implementing the forgoing, capitalized terms used in the Employment Agreement shall have the meanings ascribed to them therein and, in the event of any conflict, the definition set forth in the Employment Agreement will apply; accordingly, “Change of Control” shall have the meaning set forth in Section 5(c)(ii) of the Employment Agreement and Section 4(k) of the Restricted Stock Award Agreement is deleted in its entirety.

2. Except as set forth in this Amendment and amended hereby, all other terms and provisions of the Award Agreement shall remain unchanged and in full force and effect.

Agreed:   

/s/ Mathew Cicchinelli
Matthew Cicchinelli

PAR Technology Corporation

By: /s/ Bryan A. Menar
Bryan A. Menar
        

Title: Chief Financial Officer
        

Exhibit A

PAR Technology Corporation
2015 Equity Incentive Plan

 GRANT NOTICE – RESTRICTED STOCK AWARD

            PAR Technology Corporation (the “Company”), hereby grants as of the Grant Date to the Participant the number of restricted shares (the “Restricted Stock”) of the Company’s common stock, par value $0.02 (the “Common Stock”) specified below (the “Award”). The Award is granted pursuant to the PAR Technology Corporation 2015 Equity Incentive Plan (the “Plan”) and is subject to the terms and conditions of this Grant Notice, the Restricted Stock Award Agreement attached to this Grant Notice as Appendix A (the “Award Agreement”), and the Plan (each as amended from time to time).  The Plan is incorporated into and forms a part of this Grant Notice and the Award Agreement.  In the event of any conflict between the Grant Notice or the Award Agreement on the one hand and the Plan on the other hand, the terms of the Plan shall control.

						
	Name of the Participant:
	Matt Cicchinelli

	Grant Date:
	May 10, 2019

	Number of shares of Restricted Stock:
	10,000

	Vesting Schedule:
	

The shares of Restricted Stock shall vest in accordance with the following schedule, provided, the Participant is employed with the Company or any of its subsidiaries or affiliates through the applicable Vesting Date:

Vesting Date               Number of Shares Vested
May 10, 2019              2,500
January 1, 2020           2,500
January 1, 2021           5,000

	Change of Control (as defined in the Award Agreement):
	As an exception to the Vesting Schedule, in the event of the occurrence of a Change of Control and the Participant’s employment is terminated without cause within 12-months of the effective date of such Change of Control, then all unvested shares of Restricted Stock shall vest as of the effective date of Participant’s termination of employment.

	Death:
	As an exception to the Vesting Schedule, in the event the Participant’s employment or service with the Company or any of its subsidiaries or affiliates is terminated due to the Participant’s death, all unvested time vesting shares of Restricted Stock shall immediately vest.

By execution of this Grant Notice, the Participant acknowledges that he or she has received and read the Award Agreement, the Plan, and this Grant Notice, and agrees to be bound by the terms and conditions of the Plan, the Award Agreement, and this Grant Notice. The Participant further acknowledges and agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the Plan, this Grant Notice, or the Award Agreement.

									
	PAR Technology Corporation		/s/ Matthew Cicchinelli
			Participant Signature
	By	/s/ Bryan A. Menar	
	
Title:	Bryan A. Menar, Chief Financial Officer	

Appendix A

PAR Technology Corporation 
2015 Equity Incentive Plan 

RESTRICTED STOCK AWARD AGREEMENT
This Restricted Stock Award Agreement applies to the Award of Restricted Stock evidenced by the Grant Notice to which this Award Agreement is attached, is incorporated into and forms a part thereof.  Capitalized terms not specifically defined in this Award Agreement shall have the meanings specified in the Plan and the Grant Notice.

1.         Award of Restricted Stock.

            (a)        Award.  PAR Technology Corporation (the “Company”) has granted to the Participant an Award of that number of shares of Restricted Stock (the “Shares”) specified in the Grant Notice.  

            (b)        Vesting Schedule. After the Grant Date, subject to termination or acceleration as provided in the Grant Notice, the Plan and this Award Agreement, the Shares shall vest in accordance with the Vesting Schedule set forth in the Grant Notice. There shall be no proportionate or partial vesting in the periods prior to the applicable Vesting Date and all vesting shall occur only on the appropriate Vesting Date if the Participant is then employed or providing services to the Company or to any of its subsidiaries or affiliates (“Affiliate” means collectively, the Company’s subsidiaries and affiliates).  Shares of Restricted Stock that have vested are referred to herein as “vested Shares.” Shares of Restricted Stock that are not vested and remain subject to the Restrictions set forth and defined in Section 2(a) and Section 2(c) are referred to herein as “unvested Shares.” 

            (c)        Book Entry Form; Certificates. At the sole discretion of the Committee, the Shares will be issued in either: (i) uncertificated form, with the Shares recorded in the name of the Participant in the books and records of the Company’s transfer agent with such notations regarding the Restrictions and vesting requirements as the Committee shall deem appropriate, and upon vesting and satisfaction of the conditions set forth in Section 2(d), the Company shall remove such notations on any such vested Shares in accordance with Section 1(e); or (ii) certificated form pursuant to the terms of Section 1(d) and Section 1(e). 

            (d)        Escrow.  The Secretary of the Company or such other escrow holder as the Committee may appoint shall retain physical custody of any certificates representing the Shares until the Restrictions lapse and the Shares become vested Shares; in such event, the Participant shall not retain physical custody of any certificates representing unvested Shares issued to the Participant. The Participant, by acceptance of the Award, shall be deemed to appoint, and does so appoint, the Company and each of its authorized representatives as the Participant’s attorney(s)-in-fact to affect any transfer of unvested forfeited Shares to the Company as may be required pursuant to the Plan or this Award Agreement and to execute such documents as the Company or such representatives deem necessary or advisable in connection with any such transfer.  

            (e)        Removal of Notations; Delivery of Certificates Upon Vesting. As soon as administratively practicable after vesting of any of the Shares pursuant to Section 1(b), the Company shall, as applicable, either remove the notations on the vested Shares issued in book entry form or deliver to the Participant a certificate or certificates evidencing the number of vested Shares (or, in either case, such lesser number of Shares as may be permitted pursuant to Section 8 of the Plan).  The vested Shares so delivered shall no longer be subject to the Restrictions. 

2.         Restrictions.

            (a)        Forfeiture. Notwithstanding anything to the contrary herein or in the Plan, and unless otherwise set forth in the Grant Notice, in the event the Participant’s employment or service is terminated for any reason, each unvested Share shall be automatically forfeited as of the effective date of such termination without payment of any consideration by the Company.  For purposes of this Award Agreement, “Restrictions” shall mean the restrictions on sale or other transfer set forth in Section 2(c) and the exposure to forfeiture set forth in this Section 2(a).

            (b)        Lapse of Restrictions.  The Restrictions shall lapse as to the Shares on each applicable Vesting Date.             

            (c)        Unvested Shares Not Transferable. Except as otherwise expressly permitted in Section 7.a. of the Plan, until the Restrictions lapse (and the Shares become “vested Shares”), the Shares (including any shares of Common Stock of the Company received by the Participant with respect to the Shares as a result of stock dividends, stock splits or any other form of recapitalization) may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of, by operation of law or otherwise (each of the forgoing individually or collectively, a “Transfer”).
            (d)        Tax Withholding. As set forth in Section 8 of the Plan, the Company shall have the authority and the right to withhold or to require Participant to remit to the Company, an amount sufficient to satisfy all applicable federal, state, and local taxes required by law to be withheld with respect to any taxable event arising in connection with the Award. The Company shall not be obligated to deliver any new certificate representing vested Shares to Participant or enter such vested Shares in book entry form until the Participant shall have paid or otherwise made arrangements satisfactory to the Committee to pay all applicable federal, state, and local withholding taxes attributable to the taxable income of the Participant resulting from the vesting of the Award. 
3.         Rights as Stockholder; Dividends.  The Participant shall have all voting rights as a stockholder of the Company with respect to the Shares as of the Grant Date.  Notwithstanding the preceding sentence, the Participant shall be entitled to receive payment of any dividends declared and paid by the Company on its Common Stock on and after the Grant Date; provided that such dividends shall not be payable to the Participant with respect to any Shares unless and until the Restricted Stock with respect to which such dividends are payable become vested Shares (it being understood that no dividends will be paid with respect to Shares of Restricted Stock that do not vest).

4.         General Provisions.

            (a)        Section 83(b) Election. The Participant acknowledges that the Company has advised the Participant of the possibility of making an election under Section 83(b) of the Code with respect to the Award of the Shares and has recommended that the Participant consult a qualified tax advisor regarding the desirability of making such an election in light of the Participant’s individual circumstances. If the Participant makes an election under Section 83(b) of the Code (see Exhibit A), the Participant hereby agrees to deliver a copy of such election to the Company promptly after filing such election with the Internal Revenue Service.

            (b)        Successors and Assigns.  The Company may assign any of its rights under this Award Agreement to single or multiple assignees, and this Award Agreement shall inure to the benefit of the successors and assigns of the Company. 

            (c)        No Rights to Continued Employment or Service or to Award.  Nothing in the Plan or in this Award Agreement shall confer on the Participant any right to employment or continued service with the Company or interfere in any way with the right of the Company to terminate or change the terms of the Participant's employment or service at any time. 

            (d)        Market “Stand-Off” Agreement.  In the event the Company proposes to offer for sale to the public any of its equity securities and the Participant is requested by the Company and any underwriter engaged by the Company in connection with such offering to sign an agreement restricting the sale or other transfer of the Shares or other securities of the Company, then the Participant will promptly sign such agreement and will not sell or otherwise transfer, whether in privately negotiated transactions or to the public in open market transactions or otherwise, any Shares or other securities of the Company held by the Participant during such period as is determined by the Company and the underwriter, not to exceed 180 days following the closing of the offering, plus such additional period of time as may be required to comply with Marketplace Rule 2711 of the National Association of Securities Dealers, Inc. or similar rules thereto (such period, the “Lock-Up Period”).  Such agreement shall be in writing and in form and substance reasonably satisfactory to the Company and such underwriter and pursuant to customary and prevailing terms and conditions. Notwithstanding whether the Participant has signed such an agreement, the Company may impose stop-transfer instructions with respect to the Shares or other securities of the Company subject to the foregoing restrictions until the end of the Lock-Up Period. The market “stand-off” agreement established pursuant to this Section 8(d) shall survive termination or expiration of this Award Agreement.

(e)        Claw-Back of Performance Vesting Shares. The Shares which are subject to recovery under any law, government regulation or stock exchange listing requirement, will be subject to such deductions and claw-back as may be required to be made pursuant to such law, government regulation or stock exchange listing requirement (or any policy adopted by the Company pursuant to any such law, government regulation or stock exchange listing requirement). 
            (f)        Injurious Conduct.  If the Participant shall engage in Injurious Conduct as described in this Section 4(f), each unvested Share shall be automatically forfeited and the Award shall terminate as of such date and, the Committee may, in its sole discretion, require the Participant to return to the Company any vested Shares. If any vested Shares have been disposed of by the Participant, then the Company may require the Participant to pay to the Company the gross pre-tax proceeds received by the Participant on such disposition. For purposes of this Award Agreement, “Injurious Conduct” means: (i) “for Cause” 

conduct; and (ii) during the Participant’s employment or service with the Company or an Affiliate and thereafter, the Participant breaches any written confidentiality, non-solicitation or non-competition covenant with the Company or an Affiliate.
(g)        Governing Law and Construction. This Award Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, without giving effect to any choice of law or conflict of law rules or provisions.

            (h)        Spousal Consent. The Participant’s spouse has signed the Consent of Spouse attached to this Award Agreement as Exhibit B.

            (i)         Notices.  Any notice to be given under the terms of this Award Agreement to the Company shall be addressed to the Company in care of the Secretary of the Company at the Company's principal office, and any notice to be given to the Participant shall be addressed to the Participant at the Participant's last address reflected on the Company's records. By a notice given pursuant to this Section 4(h), either party may hereafter designate a different address for notices to be given to that party. Any notice shall be deemed to have been adequately given if delivered in person or if given by certified mail (return receipt requested) and deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service. 

            (j)         Severability.  Wherever possible, each provision of this Award Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision hereof shall be prohibited by or invalid under any such law, that provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating or nullifying the remainder of that provision or any other provisions of this Award Agreement. 

            (k)        Change of Control.  For purposes of this Award Agreement only, the term “Change of Control” shall mean either  (i) a Change of Control as defined in the Plan or (ii) (A) the Company’s sale or other disposition of all or substantially all of the assets of its wholly-owned subsidiary PAR Government Systems Corporation (“PAR Gov’t”) to one or more independent third parties; (B) the Company’s sale of more than 50% of the then outstanding common stock of PAR Gov’t to one or more independent third parties, or (C) the merger or consolidation of PAR Gov’t in a transaction or transactions in which one or more independent third parties following such transaction(s) own(s) more than 50% of the then outstanding voting securities of the surviving company.  For purposes of this definition, “independent third parties” shall mean any person, entity or group (within the meaning of Rule 13d-3 of the Exchange Act) who, immediately prior to or following the contemplated transaction(s), is not directly or indirectly owned or otherwise controlled by the Company or any Affiliate of the Company; and “control” shall mean with respect to any person or entity, the power to direct the management and policies of such person or entity, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise. 

EXHIBIT A

83(b) Election Form

          The undersigned Taxpayer hereby elects under Section 83(b) of the Internal Revenue Code of 1986, as amended, and Section 1.83-2(a) of the Income Tax Regulations, to include in his/her gross income the excess of the Fair Market Value of the property described below over the amount paid therefor by the Taxpayer.  In compliance with Reg. § 1.83-2(e) the Taxpayer provides the following information:
1.The Taxpayer’s name, address and taxpayer identification number are as follows:
Name:
Address:
Taxpayer identification number: 
1.The property with respect to which this election is being made is:  _________________ shares of common stock of PAR Technology Corporation, a Delaware corporation (the “Company”), $0.02 par value per share (the “Shares”).
2.The date of the transfer of the Shares is _________, 20___.  This election is made for the taxable year of the Taxpayer ending December 31, 20____.
3.The nature of the restrictions to which the Shares are subject is as follows: The Shares may be forfeited if Taxpayer’s continuous service with the Company terminates.
4.The Fair Market Value of such Shares at the time of transfer to the Taxpayer, determined without regard to any lapse restrictions as defined in Reg. § 1.83-3(i), is ____________ per share.
5.The amount paid for the Shares is $0 per share. 
6.A copy of this election has been furnished by personal delivery to the Company.

The date of this election is ___, 20__.

                                                             Taxpayer

EXHIBIT B

Spousal Consent

            I, __________________________, spouse of __________________, have read and approve the Grant Notice and Restricted Stock Award Agreement (collectively, the “Agreement”) to which this Consent of Spouse is attached. 

            In consideration of PAR Technology Corporation’s issuance to my spouse of the shares of Restricted Stock set forth in the Agreement, I hereby appoint my spouse, as my attorney-in-fact in respect to the exercise of any rights under the Agreement and I agree to be bound by the provisions of the Agreement insofar as I may have any rights in said Agreement or in any of the shares of Restricted Stock or Common Stock of PAR Technology Corporation issued pursuant thereto under the community property laws or similar laws relating to marital property in effect in the state of our residence as of the date of the signing of the foregoing Agreement. 

            Capitalized terms not specifically defined in this Agreement shall have the meanings specified in the Plan, the Restricted Stock Award Agreement, and the Grant Notice.

Date:    ________________________________

            ________________________________
                        Signature of Spouse

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