Document:

Exhibit
10.6

 

 

 

Equipment Schedule – No.
001

Dated June 20, 2018

 

To Master Equipment Lease Agreement

Dated as of June 22, 2017

 

 

 

		Lessor:	Fifth Third Bank,

an Ohio banking corporation

 

		Lessee:	JETPAY PAYMENT SERVICES, FL, LLC

 

All of the terms of the
Master Equipment Lease Agreement dated as of June 22, 2017 (as amended, supplemented or modified from time to time, the “Master
Lease”) between Lessee and Lessor are incorporated by reference herein. Lessor may include any parent, subsidiary or affiliate
of Fifth Third Bank who endorses an Equipment Schedule. By endorsing herein such party hereby agrees to, and shall be bound by,
the terms and conditions of the Master Lease regardless of whether it executed such Master Lease as the original Lessor. Capitalized
terms used, and not otherwise defined, herein shall have the meanings ascribed thereto in the Master Lease. This Equipment Schedule
as it incorporates the terms of the Master Lease and each schedule, exhibit and rider attached hereto is referred to as this “Lease”.
This Equipment Schedule, and the Master Lease, as incorporated herein shall constitute a separate and enforceable lease. If any
term of any schedule, exhibit or rider hereto conflicts with or is inconsistent with any term of this Equipment Schedule or the
Master Lease, the terms of such schedule, exhibit or rider shall govern.

 

		1.	Equipment.

 

This Equipment Schedule
relates to the Equipment described on Schedule 1 hereto (collectively, the “Equipment”).

 

		2.	Financial Terms.

 

(a)       Base
Lease Term Commencement Date: June 20, 2018

 

(b)       Base
Lease Term: 48 months

 

(c)       Rent
Payment Dates: August 1, 2018 and on the same day of each month thereafter during the Term

 

(d)       Expiration
Date: July 1, 2022

 

(e)       Lessor’s
Capitalized Cost: $592,146.96

 

(f)       Rent:
The Base Term Rental Factor is 0.02345818 (or $13,890.69 per month as of the Base Lease Term Commencement Date). The Base Term
Rental Factor has been determined based on an interest rate swap rate for a term approximating the weighted average life of this
Lease as quoted in the Bloomberg SWAP Rate report and such Base Term Rental Factor may be adjusted up or down (as appropriate)
by Lessor on a one-time basis within thirty (30) days of Lessor’s funding of this Schedule, based upon a corresponding adjustment
in the interest rate swap rate quoted in such report. Lessor will provide Lessee with notice of any such adjustment.

 

© 2008 Fifth Third Bancorp

 

    	 	 

     

    

 

(g)       Equipment
Location(s), Permitted Use, and Inspections: The credit card reading terminals and check reading terminals Equipment (collectively,
the “Payment Terminals”) leased under this Schedule may be located at and used by various third party merchant or clients
(collectively, the “Merchants”) at various locations within the continental United States, pursuant to one or more
E-Pay Master Agreements entered into between Lessee and States within the United States of America. Notwithstanding Section 9 (Assignment
and Sublease) of the Master Lease, Lessee may relinquish possession of the Payment Terminals to Merchants, so long as the Merchants
are not renting nor subleasing the Payment Terminals from Lessee. Lessor retains a security interest in the Payment Terminals,
excluding products or fees generated by such Payment Terminals. Notwithstanding Section 13 (Inspections) of the Master Lease, Lessee
shall have no obligation to make the Payment Terminals available for inspection by Lessor. Lessee shall maintain records of Equipment
locations and their maintenance and repair, and such records will be available for Lessor inspection pursuant to the Master Lease.
For the avoidance of doubt, notwithstanding Section 7 (Conditions Precedent) and Section 8 (Use and Maintenance; Alterations) of
the Master Lease, Lessor will not require landlord waivers, assignments of any Supply Contract or any Supplier consents, nor assignments
of fee proceeds with respect to this Equipment. Notwithstanding Section 8 (Use and Maintenance; Alterations) of the Master Lease,
Lessee shall not be required to mark Payment Terminals that are installed with Merchants, and “Permitted Liens” shall
include liens arising on the Payment Terminals by operation of law or otherwise by virtue of the installation of the Payment Terminals
with Merchants.

 

(h)       Lessee’s
state charter or organizational identification number is 5952322.

 

		3.	Rent and Tax Payments.

 

(a)       On
each Rent Payment Date during the Base Lease Term, Lessee shall pay (i) as Basic Rent for the Equipment, the product of the Base
Term Rental Factor and Lessor’s Capitalized Cost for the Equipment and (ii) in respect of Taxes scheduled to become due,
such amounts monthly (or at such other interval as Lessor may deem appropriate) as Lessor determines will be due and payable. In
addition to the foregoing, on the Base Lease Term Commencement Date, Lessee shall pay to Lessor as interim rent for each day from
the Delivery and Acceptance Date to the Base Lease Term Commencement Date, the sum of (A) $96.22 as daily rent and (B) such amounts
daily in respect of Taxes as Lessor determines will be due and payable.

 

		4.	Income Tax, Interest and Security.

 

(a)       For
federal and state income tax purposes, Lessor and Lessee agree that Lessee will be considered the owner of the Equipment. Accordingly,
Lessor agrees (i) not to take actions or positions inconsistent with Lessee as owner of the Equipment on or with respect to its
federal income tax return, and (ii) not to claim any tax benefits available to an owner of the Equipment on or with respect to
its federal or state income tax return. The foregoing undertakings by Lessor shall not be violated by Lessor’s taking a tax
position inconsistent with the foregoing to the extent such position is required by law or to the extent such position is taken
without gross negligence on the part of Lessor. Lessor shall in no event be liable to Lessee if Lessee fails to secure any of the
tax benefits available to the owner of the Equipment.

 

(b)       Nothing
contained in the Lease Documents shall require Lessee at any time to pay interest at a rate exceeding the maximum permissible rate
under applicable law. To the extent that any Rent is characterized as interest and if such interest payable by Lessee on any date
would exceed the maximum amount permitted by applicable law, such interest payment shall automatically be reduced to such maximum
amount permitted. Any interest actually received for any period in excess of such maximum amount permitted for such period shall
be held by Lessor as security for the obligations of Lessee under this Lease.

 

© 2008 Fifth Third Bancorp

 

    	-2-

     

    

 

(c)       To
the extent permitted by applicable law, Lessee waives any rights now or hereafter conferred by statute or otherwise to recover
incidental or consequential damages from Lessor for any breach or any other reason whatsoever. In order to secure the prompt payment
of Rent under and with respect to this Lease, and the performance and observance by Lessee of all the agreements, covenants and
provisions hereof (collectively, the “Obligations”), Lessee hereby grants to Lessor a first priority security interest
in all of Lessee’s right, title and interest in the following (whether now existing or hereafter created and whether now
owned or hereafter acquired): (i) the Equipment (including, without limitation, all inventory, equipment, fixtures or other property
comprising the same), and general intangibles relating thereto, (ii) additions, attachments, accessories and accessions thereto
whether or not furnished by the Supplier of such Equipment, (iii) all subleases (including the right to receive any payment thereunder
and the right to make any election or determination or give any consent or waiver thereunder), chattel paper, accounts, security
deposits and bills of sale relating thereto, (iv) any and all substitutions, replacements or exchanges for any such Equipment or
other collateral, and (v) any and all products and proceeds of any collateral hereunder (including all insurance and requisition
proceeds and all other payments of any kind with respect to the Equipment and other collateral in and against which a security
interest is granted hereunder). Lessee agrees that with respect to the Equipment, in addition to all of the other rights and remedies
available to Lessor hereunder upon the occurrence of an Event of Default, Lessor shall have all of the rights and remedies of a
secured party under the Uniform Commercial Code. Lessee further agrees that the original principal amount of the obligations hereunder
shall be an amount equal to Lessor’s Capitalized Cost, and that such principal amount shall accrue interest at the implicit
interest rate reflecting Lessor’s financial assumptions at the time of the execution of the Lease (including any outstanding
balance at the end of the Base Lease Term as reflected by the purchase price for the Equipment at the end of the Base Lease Term
set forth in Section 6). Lessee hereby authorizes Lessor to file, solely at the expense of Lessee, any Uniform Commercial Code
financing statements or other similar documents that Lessor reasonably deems necessary or advisable to protect its interest. Lessee
agrees promptly to execute and deliver to Lessor such further documents or other assurances, and to take such further action, as
Lessor may from time to time reasonably request, subject in all cases to the limitations of Section 2(h).

 

		5.	Insurance.

 

The amount of public
liability insurance including personal injury and property damage required to be maintained by Lessee pursuant to Section 10(a)
of the Master Lease is $1,000,000.00 per occurrence.

 

		6.	Termination and Purchase.

 

(a)       From
and after the first (1st) anniversary of the Base Term Commencement Date, Lessee shall have the right, (i) so long as no Default
or Event of Default has occurred and is continuing and (ii) this Lease shall not have been earlier terminated, upon the terms and
conditions set forth below, to terminate this Lease on and as of any Rent Payment Date specified by Lessee; provided that
Lessee gives Lessor written notice of Lessee’s intent to exercise such right not less than ninety (90) days and not more
than one hundred eighty (180) days prior to such Rent Payment Date. On such Rent Payment Date (the “Prepayment Date”)
specified by Lessee, Lessee shall pay to Lessor an amount equal to the sum of (a) all Basic Rent due on such Rent Payment Date
together with all other amounts then due and payable under this Lease and (b) an amount equal to each installment of Basic Rent
payable under the Lease on each Rent Payment Date during the Term after the Prepayment Date, in each case, discounted from the
Rent Payment Date on which such payment would have been due to the Prepayment Date at a rate per annum equal to the then current
yield, as reasonably determined by Lessor, on United States Treasury securities with a remaining life to maturity equal to, or
approximately equal to, the period from the Prepayment Date to the final Rent Payment Date during the Term, (c) a prepayment premium
equal to five and 0/100ths percent (5%) of the amount referred to in clause (b), and (d) an amount equal to any purchase price
identified in this Equipment Schedule. The amount referred to in clause (c) shall be payable by Lessee as liquidated damages for
the cost of making funds available to Lessee hereunder and not as a penalty.

 

(b)       Upon
payment in accordance with the terms hereof, and of any other obligations owed to Fifth Third Bancorp or its subsidiaries relating
to the Equipment, said Equipment shall be deemed free, clear and unencumbered of all Liens arising by, through or under Lessor
except for such Liens that Lessee is required to remove pursuant to the terms of the Lease.

 

© 2008 Fifth Third Bancorp

 

    	-3-

     

    

 

(c)       Upon
the expiration of the Base Lease Term, so long as (i) no Default or Event of Default has occurred and is continuing and (ii) this
Lease shall not have been earlier terminated, Lessee shall, upon the terms and conditions set forth below, purchase all but not
less than all of the Equipment for a price equal to One Dollar ($1.00) plus all Rent then due and payable pursuant to this Lease
and Taxes (including all sales and use Taxes) payable in connection with such purchase. Upon the purchase of the Equipment in accordance
with the terms hereof, and of any other obligations owed to Fifth Third Bancorp or its subsidiaries relating to the Equipment,
said Equipment shall be deemed free, clear and unencumbered of all Liens arising by, through or under Lessor except for such Liens
that Lessee is required to remove pursuant to the terms of the Lease.

 

(d)       Except
to the extent otherwise expressly set forth herein in case of a permitted prepayment in full of all Basic Rent and other obligations
due under this Lease, the amount of Basic Rent or any other obligation required to be paid under this Lease shall not be discounted
by virtue of the fact that such amount may be paid by the Lessee prior to the due date thereof.

 

		7.	Amendments to Master Lease and Additional Lease Provisions.

 

(a)       Section
10(a) of the Master Lease is hereby amended by deleting the words “Stipulated Loss Value (as defined in the applicable Equipment
Schedule) of such Equipment at any time” appearing therein and inserting in lieu thereof, the words, “Lessor’s
Capitalized Cost.”

 

(b)       Section
10(c) of the Master Lease is hereby amended by replacing the two references to “Stipulated Loss Value” with the words
“amounts due to Lessor pursuant to Section 11(b)(ii) following an Event of Loss.”

 

(c)       Section
11(b)(ii) of the Master Lease is hereby deleted in its entirety and the following is hereby inserted in lieu thereof: “(ii)
pay to Lessor on the next succeeding Rent Payment Date (the “Loss Payment Date”) the sum of (A) all Rent due and owing
hereunder with respect to such Item of Equipment (at the time of such payment) including all Basic Rent payable on such Rent Payment
Date plus (B) an amount equal to each installment of Basic Rent payable under the Lease on each Rent Payment Date during the Term
after the Loss Payment Date, in each case, discounted from the Rent Payment Date on which such payment would have been due to the
Loss Payment Date at a rate per annum equal to the lowest of (x) the rate set forth, in the H15 report, as of the Base Lease Term
Commencement Date, for the Treasury Constant Maturities having the closest term to (but not longer than) the original Base Lease
Term (as set forth in the applicable Equipment Schedule), or (y) the rate set forth, in the H15 report, as of the date of the Event
of Loss, for the Treasury Constant Maturities having the closest term to (but not longer than) the remaining number of months through
the Expiration Date (as set forth in the applicable Equipment Schedule), or (z) three percent (3%), plus (C) an amount equal to
any purchase price identified in the applicable Equipment Schedule.”

 

(d)       Section
15 of the Master Lease is hereby amended by inserting the following immediately following clause (k) thereof: “; and (l)
Upon the filing with the Secretary of State, or its equivalent, of a Uniform Commercial Code financing statement describing Lessor,
as secured party, Lessee, as debtor in the jurisdiction in which each Lessee is a registered organization or is domiciled or resident
(in the case of an individual Lessee) of Uniform Commercial Code financing statements describing Lessor, as secured party, Lessees,
as debtors, and the Equipment as the collateral, Lessor shall have a first priority perfected security interest in the Equipment
leased under this Lease.”

 

© 2008 Fifth Third Bancorp

 

    	-4-

     

    

 

(e)       Section
16(c) of the Master Lease is hereby deleted in its entirety and the following is hereby inserted in lieu thereof: “In addition
to the foregoing, Lessee shall pay to Lessor on demand the sum of (i) any and all Rent which is then due or which has accrued to
the date of demand and (ii) an amount equal to each installment of Basic Rent payable under the Lease on each Rent Payment Date
during the Term after the date of demand, in each case, discounted from the Rent Payment Date on which such payment would have
been due to the date of demand at a rate per annum equal to the lowest of (x) the rate set forth, in the H15 report, as of the
Base Lease Term Commencement Date, for the Treasury Constant Maturities having the closest term to (but not longer than) the original
Base Lease Term (as set forth in the applicable Equipment Schedule), or (y) the rate set forth, in the H15 report, as of the date
of the Event of Loss, for the Treasury Constant Maturities having the closest term to (but not longer than) the remaining number
of months through the Expiration Date (as set forth in the applicable Equipment Schedule), or (z) three percent (3%), and (iii)
an amount equal to any purchase price identified in the applicable Equipment Schedule. Lessor and Lessee agree that Lessor shall
be entitled to such amount as damages for loss of bargain and not as a penalty and that such amount is reasonable in light of the
anticipated harm to Lessor caused by an Event of Default.”

 

(f)       Section
19(a) of the Master Lease is hereby deleted in its entirety.

 

(g)       Lessee
acknowledges that the Equipment may include certain operating, application and/or other software (“Software”) in which
Lessor and Lessee have no ownership or other proprietary rights. Where required by the Software owner or manufacturer, Lessee shall
enter into a license or other agreement for the use of such Software. Any such agreement shall be separate and distinct from the
Lease and, except to the extent Lessor has expressly agreed to the contrary, Lessor shall not have any obligations thereunder.
Lessee shall be responsible for the payment of, and shall indemnify Lessor against, any Software license or transfer fees and any
certification or similar fees or charges imposed by any supplier of the Equipment or Software.

 

(h) This Equipment
Schedule supersedes and replaces Interim Funding Schedule No. 001 dated June 22, 2017 with respect to the Equipment described on
Schedule 1 hereto and Lessee’s obligations to make payments thereunder in respect of such Equipment are hereby reduced and
satisfied to the extent described in the Interim Funding Schedule with reference to this transfer of Equipment from the Interim
Funding Schedule to this Equipment Schedule. 

 

		8.	Sales, Use and Property Taxes.

 

(a)       For
purposes of sales, use and similar taxes, Lessee represents and warrants with respect to the Equipment that:

 

(i)       Lessor’s
acquisition of, and the leasing pursuant to this Lease of, the Equipment is exempt from all sales, use and similar taxes imposed
upon or payable by either Lessor or Lessee as a result of the acquisition, use or rental of such Equipment, and Lessee has furnished
to Lessor an appropriate tax exemption certificate or other documentation (which must be satisfactory to Lessor) evidencing such
exemption;

 

(ii)       to
the extent that the acquisition, use or rental of such Equipment is not exempt from all sales, use and similar taxes, Lessee complied
and will continue to comply with its obligations under the Lease to reimburse Lessor for full amount of such taxes; and

 

(iii)       any
tax exemption certificates, or any similar documentation, furnished to Lessor by Lessee claiming any exemption, abatement or exception
to sales, use or similar tax, shall be true, accurate and complete in all material respects and Lessor is entitled to rely thereon
in not remitting or paying any such tax.

 

(b)       For
purposes of tangible personal property taxes applicable to this Equipment Schedule and to the extent required by law, Lessee will
prepare and file applicable tax returns. Lessee hereby agrees to remit any tax due and owing (unless properly contested) directly
to the taxing authority in which the Equipment is located. Upon reasonable request from Lessor, Lessee shall provide copies of
any requested tax return and proof of payment. Both Lessor and Lessee agree to cooperate with each other to resolve any disputed
assessment or governmental audit. Lessee shall have the right to contest any assessment provided such contest: (i) is properly
initiated and challenged in accordance with such taxing jurisdiction’s procedures or is premised upon the advice of tax counsel;
(ii) does not jeopardize the Equipment to confiscation or forfeiture; and (iii) does not subject Lessor to penalty or criminal
sanction. Should any contest fail, or upon the advice of Lessor’s tax counsel be deemed to lack merit or be unlikely to succeed,
Lessee shall upon demand from Lessor withdraw its challenge and promptly remit payment to the taxing authority. In the event Lessee
fail to timely file returns or remit payment of the amounts due (unless such assessment is being challenged) or comply with the
other terms herein, Lessor reserves the right to file returns and remit the amount due.

 

© 2008 Fifth Third Bancorp

 

    	-5-

     

    

 

Except as expressly modified
hereby, all terms and provisions of the Master Lease shall remain in full force and effect. This Equipment Schedule is not binding
or effective with respect to the Master Lease or Equipment until executed on behalf of Lessor and Lessee by authorized representatives
of Lessor and Lessee, respectively.

 

Remainder of page intentionally left
blank. Signature page follows.

 

© 2008 Fifth Third Bancorp

 

    	-6-

     

    

 

IN WITNESS WHEREOF,
Lessee and Lessor have caused this Equipment Schedule to be executed by their duly authorized representatives as of the date first
above written.

 

	LESSOR:	 	LESSEE:
	 	 	 
	FIFTH THIRD BANK	 	JETPAY PAYMENT SERVICES, FL, LLC
	 	 	By: JetPay Corporation, its sole member
	 	 	 	 	 
	By:	/s/ Laurel Sebree	 	By:	/S/ Gregory M. Krzemien
	Name:	Laurel Sebree	 	Name:	 Gregory M. Krzemien
	Title:	Vice President	 	Title:	 Chief Financial Officer

 

THIS LEASE MAY BE EXECUTED IN SEVERAL COUNTERPARTS
AND TO THE EXTENT, IF ANY, THAT THIS LEASE CONSTITUTES CHATTEL PAPER (AS SUCH TERM IS DEFINED IN THE UNIFORM COMMERCIAL CODE AS
IN EFFECT IN ANY APPLICABLE JURISDICTION), NO SECURITY INTEREST IN THIS LEASE MAY BE PERFECTED THROUGH THE TRANSFER OF POSSESSION
OF ANY COUNTERPART OTHER THAN THE ORIGINAL COUNTERPART, WHICH SHALL BE IDENTIFIED AS THE CHATTEL PAPER ORIGINAL ON THE SIGNATURE
PAGE THEREOF. THIS IS THE CHATTEL PAPER ORIGINAL.

 

CHATTEL PAPER ORIGINAL

 

© 2008 Fifth Third Bancorp

 

    	 	 

     

    

 

IN WITNESS WHEREOF,
Lessee and Lessor have caused this Equipment Schedule to be executed by their duly authorized representatives as of the date first
above written.

 

	LESSOR:	 	LESSEE:	 
	 	 	 	 
	FIFTH THIRD BANK	 	JETPAY PAYMENT SERVICES, FL, LLC	 
	 	 	By: JetPay Corporation, its sole member	 
	 	 	 	 	 	 
	By:	 /s/ Laurel Sebree	 	By:	 /s/ Gregory M. Krzemien	 
	Name:	Laurel Sebree	 	Name:	 Gregory M. Krzemien	 
	Title:	Vice President	 	Title:	 Chief Financial Officer	 

 

THIS LEASE MAY BE EXECUTED IN SEVERAL COUNTERPARTS
AND TO THE EXTENT, IF ANY, THAT THIS LEASE CONSTITUTES CHATTEL PAPER (AS SUCH TERM IS DEFINED IN THE UNIFORM COMMERCIAL CODE AS
IN EFFECT IN ANY APPLICABLE JURISDICTION), NO SECURITY INTEREST IN THIS LEASE MAY BE PERFECTED THROUGH THE TRANSFER OF POSSESSION
OF ANY COUNTERPART OTHER THAN THE ORIGINAL COUNTERPART, WHICH SHALL BE IDENTIFIED AS THE CHATTEL PAPER ORIGINAL ON THE SIGNATURE
PAGE THEREOF. THIS IS NOT THE CHATTEL PAPER ORIGINAL.

 

©
2008 Fifth Third Bancorp

 

    	 	 

     

    

 

Schedule
1

to

Equipment
Schedule No. 001

 

Description
of Equipment

 

	Manuf. and/or
 Vendor Name &
 Invoice No.	 	Description of Equipment	 	Quantity	 	 	Sales Tax,
 Delivery,
 Installation &
 OtherCharges	 	 	Invoice
 Total	 	 	Equipment
 Location
	RDM

                                               
Invoice #20170725
	 	EC9603f IP Scanner, AF30X, Farnker, Endorser 
6000-9603-3010	 	 	100	 	 	 	 	 	 	$	40,430.00	 	 	5417 Henwick Lane, Jefferson City, MO 65109
	Presidio Networked Solutions 
	 	FA-M20R2-30TB 1 month Evergreen Gold Subscription , NBD Delivery, 24/7 Support -Part #FA-m20R2-30TB,1MO, ADV, GOLD	 	 	12	 	 	 	 	 	 	 	 	 	 	 
	Invoice 
 #3006111700725	 	Pure Storage FlashArray m20R2  FC 30TB 20/10 – Part # FA-m20R2-FC-30TB-20/10	 	 	1	 	 	$	6,930.00	 	 	$	90,930.00	 	 	3361 Boyington Drive, #180, Carrollton, TX 75006
	RDM 
Invoice #20171002 & #20170725	 	EC9603f IPScanner, AF30X Franker, Endorser 
6000-9603-3010	 	 	400	 	 	 	 	 	 	$	171,950.38	 	 	5417 Henwick Lane, Jefferson City, MO 65109
	The Phoenix Group	 	S500-M0A-R64-03EA S500 (Modem, LAN, WIFI, RF)	 	 	1000	 	 	 	 	 	 	 	 	 	 	 
	Invoice
 #INV01347725 & 
#INV01345193	 	S300-000-363-01NA OR S300-000-364-02NA S300 PIN PAD RS232/NFC	 	 	500	 	 	$	17,336.58	 	 	$	288,836.58	 	 	136 E. Watson Ave.
 Langhorne, PA 19047
	Total:	 	 	 	 	 	 	 	 	 	 	 	$	592,146.96	 	 	 

 

© 2008 Fifth Third BancorpExhibit 10.7

 

JetPay Corporation

7450 Tilghman Street

Suite 170

Allentown, PA 18106

 

July 11, 2018

 

VIA FACSIMILE & OVERNIGHT DELIVERY

 

Flexpoint Fund II, L.P.

c/o Flexpoint Ford, LLC

676 N. Michigan Avenue, Suite 3300

Chicago, IL 60611

Facsimile No.: (312) 327-4525

Attention: Charles E. Glew

   Steven M. Michienzi

 

Sundara Investment Partners, LLC

725 Eagle Farm Road

Villanova, PA 19085

Facsimile No.:

Attention: Laurence L. Stone

 

Gentlemen:

 

Reference is hereby
made to that certain Amended and Restated Securities Purchase Agreement dated as of October 18, 2016 (the "Purchase Agreement"),
by and among JetPay Corporation, a Delaware corporation (the "Company"), Flexpoint Fund II, L.P., a Delaware limited
partnership ("Flexpoint"), and Sundara Investment Partners, LLC, a Delaware limited liability company (“Sundara”
and together with Flexpoint, the “Purchasers”) and that certain letter agreement, dated March 23, 2017 (the
“Letter Agreement”), by and between the Purchasers and the Company with respect to the Direct Air Matter. On
June 28, 2018, the Company provided notice to the Purchasers (the "Settlement Notice") of the successful recovery
of funds by the Company as a result of its lawsuit against Valley National Bank, Civil Action No. 2:14-cv-7827 (D. N.J.) (the “Valley
National Matter”). Capitalized terms used but not otherwise defined herein shall have the meanings set forth in the Purchase
Agreement.

 

The purpose of this
letter agreement is to document an upward adjustment to the Conversion Price (as defined in the Certificate of Designation) applicable
to the Preferred Stock of the Company held by the Purchasers as a result of the settlement described in the Settlement Notice.
In accordance with the Letter Agreement (and Section 10.2(d) of the Purchase Agreement), the parties hereby agree that the Conversion
Price applicable to the Preferred Stock of the Company held by the Purchasers shall be increased to a price per share equal to
$2.50 (the "Adjusted Conversion Price"), which increase is being made in respect of the successful recovery of
funds by the Company in the Valley National Matter.

 

Except as provided
herein, all other provisions of the Purchase Agreement remain unchanged and in full force and effect.

 

[Signature page follows]

 

     

     

    

  

	 	jetpay corporation
	 	 	 
	 	By:	/s/ Gregory Krzemien
	 	Name:  Gregory Krzemien
	 	Its:  Chief Financial Officer  

 

	Acknowledged, agreed and accepted	 
	as of the date first written above:	 
	 	 	 
	FLEXPOINT FUND II, L.P.	 
	 	 	 
	By:	Flexpoint Management II, L.P.	 
	 	Its: General Partner	 
	 	 	 
	By:	Flexpoint Ultimate Management II, LLC	 
	 	Its: General Partner	 
	 	 	 
	By:	/s/ Donald J. Edwards	 
	Name:  Donald J. Edwards	 
	Its:       Manager	 
	 	 	 
	Sundara Investment Partners, LLC	 
	 	 	 
	By:	/s/ Laurence L. Stone	 
	Name:  Laurence L. Stone	 
	Its:       Chief Executive Officer	 

 

[Signature page to letter agreement re

Valley National Conversion Price Adjustment]

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