Document:

Exhibit 10.2

 

SETTLEMENT AGREEMENT AND RELEASE

 

This Settlement Agreement
and Release (this “Agreement”) is entered into as of the 26th day of July, 2016, among Trent Voigt, an individual (“Voigt”),
WLES, L.P., a Texas limited partnership (“WLES”), JetPay Corporation, a Delaware corporation f/k/a Universal Business
Payment Solutions Acquisition Corporation (“JetPay”), and JetPay, LLC, a Texas limited liability company (“JPLLC”),
JetPay Merchant Services, LLC a Texas limited liability company and JetPay ISO Services, LLC a Texas limited liability company.

 

RECITALS

 

WHEREAS, WLES, Voigt, JetPay and
certain other entities entered into that certain Agreement and Plan of Merger dated as of July 6, 2012, as amended (the “Merger
Agreement”), pursuant to which WLES and Voigt have certain indemnification obligations to JetPay; and

 

WHEREAS, WLES, JPLLC, JetPay, Merrick
Bank Corporation (“Merrick”) and JPMorgan Chase Bank, NA entered into that certain Escrow Agreement dated as of December
28, 2012 (the “Escrow Agreement”) regarding potential liability of JPLLC to Merrick regarding claims related to the
bankruptcy of Southern Sky Air & Tours LLC d/b/a Direct Air (“Direct Air”); and

 

WHEREAS, Merrick, WLES, JetPay,
JPLLC and certain other parties are entering into that certain Settlement Agreement and Release dated of even date herewith (the
“Merrick Release”) pursuant to which, among other things, JetPay and WLES will take certain actions in order to settle
all disputes between Merrick, WLES, JetPay and the other parties named therein; and

 

WHEREAS, WLES and Voigt on the one
hand, and JetPay, on behalf of itself and its subsidiaries on the other hand, wish to set forth their agreement regarding their
respective obligations and understandings regarding the actions to be taken with respect to the Merrick Release, and to compromise
and settle all claims and counterclaims that could be asserted regarding all things related to Merrick.

 

NOW, THEREFORE, for the mutual promises
and undertakings set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
and intending to be legally bound hereby, the parties agree as follows:

 

		1.	Promissory Notes. WLES will agree to transfer the indebtedness
(including principal and all accrued but unpaid interest) represented by that certain Promissory Note dated December 28, 2012 in
the original principal amount of $2,331,368.68 (the “December 2012 Note”), to Merrick, it being agreed that any obligation
to WLES under that note, except as otherwise detailed herein, shall no longer exist as of the date hereof and of no further force
and effect. WLES will agree to enter into an amendment that will extend the maturity date of that certain Promissory Note dated
June 7, 2013, and amended July 31, 2014 in the original principal amount of $491,693.00 (the “June 2013 Note”)
from September 30, 2016 to September 30, 2017, and agree to waive all interest payments for the period
from September 30, 2016 to September 30, 2017. The June 2013 Note shall become immediately due and payable in the event that Voigt’s
employment with JPLLC is terminated for any reason other than cause, as the same is defined in the amendment to the June 2013 Note.

 

     

     

    

 

		2.	Escrow Shares. The parties agree that 3,333,333 shares of JetPay common stock are being
held in escrow pursuant to the terms of the Escrow Agreement (the “Escrow Shares”). The Escrow Shares are issued in
the name of WLES and are to be released either to Merrick or to WLES upon a settlement of Direct Air related claims. Consistent
with the terms of the Merrick Release, WLES hereby authorizes JetPay to arrange, and WLES agrees to consummate, a private sale
of that number of shares of the Escrow Shares necessary to satisfy JetPay’s obligation to pay $5,000,000 to Merrick under
the Merrick Release; provided that WLES shall not be obligated to sell more than 2,200,000 shares of the Escrow Shares. Upon consummation
of the sale of the Escrow Shares as contemplated herein, JetPay shall issue to WLES fully vested and immediately exercisable warrants
with an expiration date of five years from the date of this Agreement to purchase that number of JetPay shares of common stock
equal to 50% of the difference between the number of Escrow Shares actually sold by WLES as contemplated herein and 1,666,666 shares,
at an exercise price equal to the amount paid for the sold Escrow Shares. By way of example only, if the entire 2,200,000 shares
of Escrow Shares were sold for a purchase price of $2.27 per share, then JetPay would issue WLES a warrant to purchase 266,667
shares at a purchase price of $2.27 per share (2,200,000 – 1,666,666 = 533,334/2 = 266,667). Additionally, as per the terms
of the Merrick Release, the balance of the Escrow Shares following the contemplated sale herein will remain in escrow to secure
JetPay’s obligations under the Merrick Release and all documents (including promissory notes) contemplated therein. In the
event that JetPay should default on its obligations to Merrick under the Merrick Release and some or all of the remaining Escrow
Shares shall be forfeited to Merrick, JetPay agrees to issue to WLES, for no further consideration, that number of JetPay common
stock equal to the forfeited Escrow Shares.

 

		3.	Valley National Bank Litigation. In the event that there is a recovery by JPMS in connection
with the claims brought by JPMS in American Express Travel Related Services and JetPay Merchant Services, LLC v. Valley National
Bank, Civil Action No. 2:14-cv-7827 (D. N.J.) (the “JP-VNB Action”), the parties agree that any proceeds received
will be disbursed as follows:

 

     

     

    

 

		4.	If JetPay receives a net $5,000,000 or more , after all out-of-pocket fees and expenses, from the
sale of the Escrow shares as detailed in #2 above (i) JetPay shall receive the first $3,850,000.00 (or such lesser amount if the
recovery does not exceed that amount) and shall use such amount to prepay JetPay’s obligations to Merrick under the $3.85MM
Note (as defined in the Merrick Release), (ii) the next $3,000,000 (or such lesser amount if the recovery does not exceed that
amount) shall be paid to WLES, and (iii) the remainder, if any, shall be split equally between JetPay and WLES.

 

		5.	If JetPay receives an amount of monies less that a net $5,000,000, after all out-of-pocket fees
and expenses from the sale of the Escrow shares as detailed in #2 above (this amount being the “Shortfall”): (i) JetPay
shall receive the first amount of the sum of $3,850,000 plus the Shortfall, up to a total of $4,100,000.00 (or such lesser amount
if the recovery does not exceed that amount) and shall use such amount to prepay JetPay’s obligations to Merrick under the
$3.85MM Note (as defined in the Merrick Release), (ii) the next $2,500,000 (or such lesser amount if the recovery does not exceed
that amount) shall be paid to WLES, and (iii) if the Shortfall was not fully covered in (i) above, JetPay will receive the next
up to $250,000 until the Shortfall is either fully covered up to a maximum of $500,000 and (iv.) the remainder, if any, shall be
split equally between JetPay and WLES. The parties agree that the provisions of this Agreement supersede the provisions of that
certain letter agreement among them dated as of October 31, 2014 (the “Letter Agreement”) and that the Letter Agreement
shall be null and void and of no effect. All Proceeds received by any party in connection with a final determination of the Direct
Air Matter (as such terms are defined in the Letter Agreement) that are not otherwise addressed in this Agreement shall belong
to WLES.

 

		6.	Release. JetPay, on behalf of itself and all of its affiliates and subject to the satisfaction
of the obligations created by this Agreement in favor of JetPay, for good and valuable consideration, waives, releases, and forever
discharges WLES and Voigt, together with their respective subsidiaries, affiliates, and predecessor companies and entities, and
their respective past and present employees, principals, owners, directors, officers, and agents, from any and all claims, causes
of action, charges, suits, debts, controversies, liabilities, promises, damages, judgments, and demands of any kind, that were
asserted or could have been asserted in connection with all indemnification obligations of WLES and Voigt under the Merger Agreement
with respect to Direct Air related claims.

 

		7.	Miscellaneous. The following provisions shall apply to this Agreement.

 

     

     

    

 

		(a)	Arm’s-Length Agreement. The parties agree that the amount paid and the other terms
of this Agreement were negotiated at arm’s-length in good faith by the parties and reflect a settlement that was reached
voluntarily after consultation with experienced legal counsel

		(b)	Modifications. This Agreement may not be modified or amended, nor may any of its provisions
be waived, except by a writing signed by the parties or their successors-in-interest.

		(c)	Entire Agreement. This Agreement contains the entire agreement and understanding between
the parties concerning the subject matter hereof, and supersedes any prior or contemporaneous discussion or agreements thereon.
The parties acknowledge that no party, or any agent, representative, attorney, or client of a party, has made any promise, representation,
or warranty whatsoever, express or implied, that is not contained herein concerning the subject matter hereof, to induce the other
party to execute this Agreement. The parties acknowledge that they have not executed this Agreement in reliance on any promise,
representation, or warranty not contained herein.

		(d)	Execution in Counterparts. This Agreement may be executed in two or more counterparts. All
executed counterparts and each of them shall be deemed to be one and the same instrument provided that counsel for the parties
to this Agreement shall exchange among themselves electronic copies of original signed counterparts.

		(e)	Governing Law and Jurisdiction. The construction, interpretation, operation, effect and
validity of this Agreement, and all documents necessary to effectuate it, shall be governed by the laws of the State of Texas without
giving effect to its conflict-of-law rules, and the parties expressly agree to be bound by, submit to, and subject to the jurisdiction
of the Federal District Court for the Northern District of Texas or the state courts located in Dallas County, Texas, with respect
to any filing, motion, claim, or action arising out of or relating to this Agreement.

		(f)	Authorized Signatories. Each signatory of this Agreement warrants that he or she is authorized
to enter into and execute this Agreement on behalf of the person or entity for whom/which he or she is signing.

		(g)	Cooperation. The parties agree to cooperate in executing and delivering such other and additional
documents or instruments, and to take all additional actions that may be necessary or appropriate to give full force and effect
to the terms and intent of this Agreement.

		(h)	Agreement the Product of Negotiation. The parties agree that this Agreement is the product
of negotiation between the parties through their separate and respective counsel. In the event of a dispute concerning the interpretation
of this Agreement or of any of its terms or provisions, the Agreement shall be deemed to have been drafted jointly by all of the
parties.

		(i)	No Agency. Nothing in this Agreement, or any action implemented pursuant hereto, shall be
deemed to create an agency or joint venture relationship between the parties.

		(j)	Attorney’s Fees. In the event of any dispute, claim or motion to enforce or
interpret the provisions and obligations of this Agreement, the prevailing party shall be entitled to recover reasonable attorney’s
fees, and all other related costs, plus applicable interest, in addition to any other relief to which that party may be entitled.

		(k)	Notice. Any notices, requests, or demands concerning this Agreement shall be sent by email
and FEDEX to:

 

     

     

    

 

For JetPay Corporation or
JetPay LLC:

 

1175 Lancaster Avenue, Suite
200 Berwyn, PA 19312

 

Attn: Chief Executive Officer

 

With a copy to:

 

Cooper & Sculley, PC

900 Jackson St. Suite 100

Dallas, TX 75202

Attn: Micah Dortch

Micah.Dortch@CooperSculley.com

 

 

For WLES, L.P. or Trent Voigt:

 

2233 Wolf Front Rd.

Van Alstyne, TX 75495

Attn: Trent Voigt

trent@jetpay.co.uk

 

With a copy to:

 

Scheef & Stone, L.L.P.

500 N. Akard, Suite 2700

Dallas, TX 75201

Attn: Brad L. Whitlock

Brad.whitlock@solidcounsel.com

 

Executed to be effective as of
the date set forth above.

 

[Signatures on Following Page]

 

     

     

    

 

	JETPAY CORPORATION	 
	 	 
	 	 
	By: /s/ Peter B. Davidson	 
	 	 
	Printed Name: Peter B. Davidson	 
	 	 
	Title: Vice Chairman	 
	 	 
	 	 
	JETPAY, LLC	 
	 	 
	By: /s/ Peter B. Davidson	 
	 	 
	Printed Name: Peter B. Davidson	 
	 	 
	Title: Vice Chairman	 
	 	 
	 	 
	WLES, L.P.	 
	BY: Transaction Guy & The Triumphant Ones, L.L.C., General Partner	 
	 	 
	By: /s/Trent Voigt	 
	 	 
	Printed Name: Trent Voigt	 
	 	 
	Title: General Partner	 
	 	 
	 	 
	/s/ Trent Voigt	 
	Trent Voigt	 

 

     

     

    

 

 

Side Agreement 

 

The undersigned, JetPay, LLC, (“JetPay”) and WLES,
L.P. (“WLES”), do hereby agree that, WLES agrees to amend the terms of that certain Promissory Note dated June 7, 2013,
and amended July 31, 2014 and September 30, 2014, in the principal amount of $491,693.00 (the “Note”) to extend the
most recent maturity date of the Note from September 30, 2016 to September 30, 2017. Interest will continue to accrue through September
30, 2016 but such accrual will end on September 30, 2016.

 

Executed to be effective as of the 30th day of September,
2016. 

 

JetPay, LLC

 

By: /s/ Peter B. Davidson

 

Its: Vice Chairman

 

  

WLES, L.P.

 

By: Transaction Technology Guy and the Triumphant Ones, LLC

 

General Partner

 

By: /s/ Trent Voigt

 

Trent Voigt, PresidentExhibit 10.3

 

PROMISSORY NOTE

  

$3,850,000.00

 

FOR VALUE RECEIVED,
JetPay Corporation, (f/k/a Universal Business Payment Solutions Acquisition Corporation), a Delaware corporation with
its principal place of business at 1175 Lancaster Avenue, Suite 200, Berwyn, PA 19312 (hereinafter the "Maker"), unconditionally
promises to pay to the order of Merrick Bank Corporation, a Utah corporation with offices at 10705
S. Jordan Gateway Ste. 200, South Jordan, Utah 84095 or its assigns (hereinafter "Holder", and, together with
the Maker, the “Parties”), the principal amount of Three Million Eight Hundred Fifty Thousand Dollars ($3,850,000.00),
together with all accrued Interest thereon, as provided in this Promissory Note (the “Note”, as the same, may be amended,
restated, supplemented or otherwise modified from time to time in accordance with its terms).

 

This Note is issued
to evidence in part the obligations of the Maker to the Holder pursuant to that certain Settlement Agreement dated the date hereof
(the “Settlement Agreement”) by and among the Maker, the Holder JetPay Merchant Services, LLC, JetPay ISO Services,
LLC, JetPay, LLC, and WLES, L.P., (“WLES”). Pursuant to the Settlement Agreement, certain shares of the common stock
and cash of the Maker (the “Escrow Fund”) that had previously been or will be placed in escrow to secure certain pre-existing
obligations of Maker’s affiliates to Holder, were pledged by WLES to the Holder to secure the Maker’s obligations to
the Holder thereunder including, without limitation, the obligations of the Maker under this Note.

 

1.Interest.
The outstanding principal amount of this Note shall bear interest (“Interest”) from the date hereof at the rate
of eight percent (8%) per annum (except that Interest on the outstanding principal amount of this Note from and after the occurrence
of any Event of Default hereunder shall accrue at the rate of fifteen percent (15 %) per annum) until the entire principal amount
hereof shall have been paid in full, whether at maturity, upon acceleration, by prepayment or otherwise. Interest hereunder shall
be computed on the basis of a year of 360 days, and the actual number of days (including the first day but excluding the last day)
elapsed.

 

2.Repayment
Provisions. Subject to the provisions of Section 3 below, the outstanding principal amount of this Note shall be paid in quarterly
installments of $100,000.00 each payable beginning on December 31, 2016, on September 30, December 31, March 31 and June 30 of
each subsequent year, together with Interest on the outstanding principal amount hereof accrued to such date, with the first such
quarterly installment of interest to be due and payable on September 30, 2016, provided that the entire outstanding principal balance
hereof, along with all unpaid Interest accrued thereon, and all other amounts owed to the Holder hereunder shall be due and payable
on or before December 28, 2017 ( the “Maturity Date”).

 

3.Prepayments.

 

 

(a)Optional
Prepayments. The Maker may prepay this Note in whole or in part at any time or from time to time prior to the Maturity Date
without penalty or premium by paying the principal amount to be prepaid together with all Interest accrued thereon (if any) to
the date of prepayment.

 

(b)Mandatory
Prepayments. Upon the recovery by the Maker, any of its affiliates or WLES, of any cash damages in connection with a pending
litigation with Valley National Bank captioned American Express Travel Related Services and JetPay Merchant Services, LLC v.
Valley National Bank, Civil Action No. 2:14-cv-7827 (D. N.J.), the Maker will immediately pay over such amount to the Holder
as a pre-payment of its obligations hereunder. In addition, if the Maker shall enter into any refinancing, restructuring or
other similar agreement relating to more than 50% of its debt, on a date that is prior to the Maturity Date (the “Refinancing
Date”), then the Maker will pre-pay the entire outstanding principal amount of this Note, all accrued Interest and all other
amounts owed to the Holder hereunder, on or before the Refinancing Date

 

     

     

    

 

4.Other Payment
Provisions. The Maker shall make each payment and pre-payment hereunder not later than 1:00 P.M. (Eastern time) on the day
when, without offset, in lawful money of the United States of America to the Holder by wire transfer of immediately available funds
to the Holder’s account in accordance with wire transfer instructions to be provided by the Holder to the Maker from time
to time. All payments will be applied first to costs and fees owing hereunder, second to the payment of Interest accrued hereunder
through the date of payment and third to the payment of principal hereof, in such order as Holder may determine in its sole discretion.
If the date for any payment hereunder falls on a day other than a Business Day, then for all purposes of this Note the same shall
be deemed to have falen on the next following Business Day, and such extension of time shall in such case be included in the computation
of payments of interest. As used herein, “Business Day” shall mean a day other than a Saturday, Sunday or other day
on which commercial banks in New York, NY are authorized or required by law to be closed.

 

5.Events of
Default. The occurrence of any of the following shall constitute an Event of Default hereunder:

 

(a)Failure
to Pay. The Maker fails to pay (i) any principal amount of this Note as and when due; or (ii) accrued Interest or any other
amount as and when due hereunder and fails to cure any unpaid amount within five (5) days of the date said amount was due.

 

(b)Cross-Defaults.
The Maker fails to pay when due any of its indebtedness (other than indebtedness under this Note) or any interest or premium thereon
as and when due (whether by scheduled maturity, acceleration, demand or otherwise) and such failure continues after the applicable
grace period, if any, specified in the agreement or instrument relating to such indebtedness.

 

(c)Breach
of Settlement Agreement.The Maker is in breach of or otherwise fails to comply with any of its obligations under the Settlement
Agreement or any other agreements, notes or instruments executed and delivered by it in connection therewith, or otherwise in connection
with the Escrow Fund and fails to cure any such breach or compliance failure within five (5) days of the date of such breach or
failure.

 

    2 

     

    

 

(d)Bankruptcy.
 

 

(i)the Maker
commences any case, proceeding or other action (A) under any existing or future law relating to bankruptcy, insolvency, reorganization,
or other relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it as bankrupt
or insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief
with respect to it or its debts, or (B) seeking appointment of a receiver, trustee, custodian, conservator or other similar official
for it or for all or any substantial part of its assets, or the Maker makes a general assignment for the benefit of its creditors;

 

(ii)there
is commenced against the Maker any case, proceeding or other action of a nature referred to in clause (i) above which (A) results
in the entry of an order for relief or any such adjudication or appointment or (B) remains undismissed, undischarged or unbonded
for a period of sixty (60) days;

 

(iii)there
is commenced against the Maker any case, proceeding or other action seeking issuance of a warrant of attachment, execution or similar
process against all or any substantial part of its assets which results in the entry of an order for any such relief which has
not been vacated, discharged, or stayed or bonded pending appeal within sixty (60) days from the entry thereof;

 

(iv)the
Maker takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth
in clause (i), (ii) or (iii) above; or

 

(v)the Maker
is generally not, or is unable to, or admits in writing its inability to, pay its debts as they become due.

 

(e)Judgments.
A judgment or decree is entered against the Maker and such judgment or decree has not been vacated, discharged, stayed or bonded
pending appeal within thirty (30) days from the entry thereof.

 

6.Remedies.
Upon the occurrence of an Event of Default and at any time thereafter during the continuance of such Event of Default, the Holder
may at its option, by written notice to the Maker (a) declare the entire principal amount of this Note, together with all accrued
Interest thereon and all other amounts payable hereunder, immediately due and payable and/or (b) exercise any or all of its rights,
powers or remedies available to it under the Settlement Agreement or otherwise under applicable law; provided, however that,
if an Event of Default described in Section 5(d) shall occur, the principal of and accrued Interest hereunder shall become immediately
due and payable without any notice, declaration or other act on the part of the Holder.

 

    3 

     

    

 

7.Miscellaneous.

 

(a)Notices.
 All notices, requests or other communications required or permitted to be delivered hereunder shall be delivered in writing,
if to the Maker, at the address set forth above, or at such other address as may have been furnished to the Holder by the Maker
in writing; or if to the Holder, to it at the address set forth above, or at such other address as may have been furnished to the
Maker by the Holder in writing. Notices, if (i) mailed by certified or registered mail or sent by hand or overnight courier service
shall be deemed to have been given when received, (ii) sent by facsimile during the recipient's normal business hours shall be
deemed to have been given when sent (and if sent after normal business hours shall be deemed to have been given at the opening
of the recipient's business on the next business day) and (iii) sent by e-mail shall be deemed received upon the sender's receipt
of an acknowledgment from the intended recipient (such as by the "return receipt requested" function, as available, return
e-mail or other written acknowledgment).

 

(b)Expenses.
The Maker shall reimburse the Holder on demand for all reasonable out-of-pocket costs, expenses and fees (including reasonable
expenses and fees of its counsel) incurred by the Holder in connection with the transactions contemplated hereby including the
negotiation, documentation and execution of this Note and the enforcement of the Holder's rights hereunder.

 

(c)Governing
Law. This Note and any claim, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon,
arising out of or relating to this Note and the transactions contemplated hereby shall be governed by the laws of the State of
Utah.

 

(d)Submission
to Jurisdiction.  The Maker hereby irrevocably and unconditionally (i) agrees that any legal action, suit or proceeding
arising out of or relating to this Note may be brought in the Federal District Court in Salt Lake City, Utah and (ii) submits to
the exclusive jurisdiction of any such court in any such action, suit or proceeding. Final judgment against the Maker in any action,
suit or proceeding shall be conclusive and may be enforced in any other jurisdiction by suit on the judgment. Nothing in this 7(d)
shall affect the right of the Holder to (i) commence legal proceedings or otherwise sue the Maker in any other court having jurisdiction
over the Maker or (ii) serve process upon the Maker in any manner authorized by the laws of any such jurisdiction.

 

(e)Venue.
The Maker irrevocably and unconditionally waives, to the fullest extent permitted by applicable law, any objection that it may
now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Note in any court referred
to in Section 7(d) and the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

 

(f)Waiver of
Jury Trial. THE MAKER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO
A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY RELATING TO THIS NOTE OR THE TRANSACTIONS CONTEMPLATED HEREBY WHETHER
BASED ON CONTRACT, TORT OR ANY OTHER THEORY.

 

    4 

     

    

 

(g)Counterparts;
Integration; Effectiveness. This Note and any amendments, waivers, consents or supplements hereto may be executed in counterparts,
each of which shall constitute an original, but all taken together shall constitute a single contract. This Note constitutes the
entire contract between the Parties with respect to the subject matter hereof and supersedes all previous agreements and understandings,
oral or written, with respect thereto. Delivery of an executed counterpart of a signature page to this Note by facsimile or in
electronic (i.e., "pdf" or "tif") format shall be effective as delivery of a manually executed counterpart
of this Note.

 

(h)Successors
and Assigns. This Note may be assigned, transferred or negotiated by the Holder to any person or entity at any time without
notice to or the consent of the Maker. The Maker may not assign or transfer this Note or any of its rights hereunder without the
prior written consent of the Holder. This Note shall inure to the benefit of and be binding upon the Parties hereto and their permitted
assigns.

 

(i)Waiver of
Notice, etc. The Maker hereby waives presentment, demand for payment, protest, notice of dishonor, notice of protest or nonpayment,
notice of acceleration of maturity and diligence in connection with the enforcement of this Note or the taking of any action to
collect sums owing hereunder.

 

(j)Amendments
and Waivers. No term of this Note may be waived, modified or amended except by an instrument in writing signed by both of the
Parties hereto. Any waiver of the terms hereof shall be effective only in the specific instance and for the specific purpose given.

 

(k)Headings.
The headings of the various Sections and subsections herein are for reference only and shall not define, modify, expand or limit
any of the terms or provisions hereof.

 

(l)No Waiver;
Cumulative Remedies. No failure to exercise and no delay in exercising on the part of the Holder, of any right, remedy, power
or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power
or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.
The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and
privileges provided by law.

 

(m)Severability.
If any term or provision of this Note is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or
unenforceability shall not affect any other term or provision of this Note or invalidate or render unenforceable such term or provision
in any other jurisdiction.

 

(n)Replacement
of Note. Upon receipt of evidence reasonably satisfactory to the Maker of the loss, theft, destruction or mutilation of this
Note and, in the case of any such loss, theft or destruction of this Note, upon delivery of an indemnity bond in such reasonable
amount as the Maker may determine, or, in the case of any such mutilation, upon surrender and cancellation of such mutilated Note,
the Maker will execute and deliver, in lieu thereof, a new Note of like tenor and of the same class, dated the date to which interest
has been paid on such lost, stolen, destroyed or mutilated Note.

 

[the balance of this page is intentionally
left blank]

 

    5 

     

    

 

IN WITNESS WHEREOF,
the Maker has caused this Note to be executed by its officer thereunto duly authorized as of the 26  day of July, 2016.

 

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

  

STATE OF PA         )

	 	)  ss:
	COUNTY OF Philadelphia       	)

 

I, Vincent J. Grandinetti,
hereby certify on this 26 day of July, 2016, before me, the subscriber, a Notary Public of the jurisdiction aforesaid, personally
appeared Peter B. Davidson., known to me (or satisfactorily proven) to be the person whose name is subscribed to the within
instrument as the Vice Chairman of JetPay Corporation and acknowledged that he executed the same on behalf of JetPay Corporation,
for the purposes therein contained, such instrument having been executed in my presence.

 

AS WITNESS my hand
and notarial seal the day and year above written.

  

	 	/s/ Vincent J. Grandinetti
	 	Notary Public

 

My Commission Expires: May 28, 2017

 

    6

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