Document:

Exhibit 10.1

 

 

NOTE

	Date	4/8/2020
	Note Amount	$6,659,220
	Borrower	TSR, Inc.
	Lender	JPMorgan Chase Bank, N.A.

 

		1.	PROMISE TO PAY.

Borrower promises to pay to the order of Lender the
Note Amount, pIus interest on the unpaid principal balance at the Note Rate, and all other amounts required by this Note.

		2.	DEFINITIONS.

“CARES Act” means the Coronavirus Aid,
Relief, and Economic Security Act.

“Deferral Period” means the six month
period beginning on the date of this Note.

“Loan” means the loan evidenced by this
Note.

“Maturity Date” means twenty-four (24)
months from the date of this Note.

“Note Rate” means an interest rate of
0.98% Per Annum and interest shall accrue on the unpaid principal balance computed on the basis of the actual number of days elapsed
in a year of 360 days.

“Per Annum” means for a year deemed to
be comprised of 360 days.

“SBA” means the Small Business Administration,
an Agency of the United States of America.

		3.	CONDITIONS PRECEDENT TO FUNDING OF LOAN.

Before the funding of the Loan, the following conditions
must be satisfied:

		A.	Lender has approved the request for the Loan.

		B.	Lender has received approval from SBA to fund the Loan.

    

     

    

		4.	PAYMENT TERMS.

Borrower will pay this Note as follows:

		A.	No Payments During Deferral Period. There shall be no payments due by Borrower during the Deferral Period.

		B.	Principal and Interest Payments. Commencing one month after the expiration of the Deferral Period, and continuing on the same
day of each month thereafter until the Maturity Date, Borrower shall pay to Lender monthly payments of principal and interest,
each in such equal amount required to fully amortize the principal amount outstanding on the Note on the last day of the Deferral
Period by the Maturity Date.

		C.	Maturity Date. On the Maturity Date, Borrower shall pay to Lender any and all unpaid principal plus accrued and unpaid interest
plus interest accrued during the Deferral Period. This Note will mature on the Maturity Date.

		D.	If any payment is due on a date for which there is no numerical equivalent in a particular calendar month then it shall be
due on the last day of such month. If any payment is due on a day that is not a Business Day, the payment will be made on the next
Business Day. The term “Business Day” means a day other than a Saturday, Sunday or any other day on which national
banking associations are authorized to be closed.

		E.	Payments shall be allocated among principal and interest at the discretion of Lender unless otherwise agreed or required by
applicable law. Notwithstanding, in the event the Loan, or any portion thereof, is forgiven pursuant to the Paycheck Protection
Program under the federal CARES Act, the amount so forgiven shall be applied to principal.

		F.	Borrower may prepay this Note at any time without payment of any premium.

		5.	CERTIFICATIONS.

Borrower certifies as follows:

		A.	Current economic uncertainty makes this Loan necessary to support the ongoing operations of Borrower.

		B.	Loan funds will be used to retain workers and maintain payroll or make mortgage payments, lease payments, and utility payments.

		C.	During the period beginning on February 15, 2020 and ending on December 31, 2020, Borrower has not and will not receive another
loan under this program.

		D.	Borrower was in operation on February 15, 2020 and (i) had employees for whom it paid salaries and payroll taxes, or (ii) paid
independent contractors as reported on a 1099-Misc.

    

     

    

 

		6.	AGREEMENTS.

Borrower understands and agrees, and waives and releases
Lender, as follows:

		A.	The Loan would be made under the SBA’s Paycheck Protection Program. Accordingly, it must be submitted to and approved
by the SBA. There is limited funding available under the Paycheck Protection Program and so all applications submitted will not
be approved by the SBA.

		B.	Lender is participating in the Payroll Protection Program to help businesses impacted by the economic impact from COVID-19.
However, Lender anticipates high volume and there may be processing delays and system failures along with other issues that interfere
with submission of your application to SBA. Lender does not represent or guarantee that it will submit the application before SBA
funding is no longer available or at all. You agree that Lender is not responsible or liable to you (i) if the application is not
submitted to the SBA until after SBA stops approving applications, for any reason or (ii) if the application is not processed.
You forever release and waive any claims against Lender concerning failure to obtain the Loan. This release and waiver applies
to but is not limited to any claims concerning Lender’s (i) pace, manner or systems for processing or prioritizing applications,
or (ii) representations by Lender regarding the application process, the Paycheck Protection Program, or availability of funding.
This agreed to release and waiver supersedes any prior communications, understandings, agreements or communications on the issues
set forth herein.

		C.	Forgiveness of the Loan is only available for principal that is used for the limited purposes that qualify for forgiveness
under SBA requirements, and that to obtain forgiveness, Borrower must request it and must provide documentation in accordance with
the SBA requirements, and certify that the amounts Borrower is requesting to be forgiven qualify under those requirements. Borrower
also understand that Borrower shall remain responsible under the Loan for any amounts not forgiven, and that interest payable under
the Loan will not be forgiven but that the SBA may pay the Loan interest on forgiven amounts.

		D.	Forgiveness is not automatic and Borrower must request it. Borrower is not relying on Lender for its understanding of the requirements
for forgiveness such as eligible expenditures, necessary records/documentation, or possible reductions due to changes in number
of employees or compensation. Rather Borrower will consult the SBA’s program materials.

		E.	The application for this Loan is subject to review and that Borrower may not receive the Loan. The Loan also remains subject
to availability of funds under the SBA’s Payment Protection Program, and to the SBA issuing an SBA loan number.

    

     

    

 

		7.	DEFAULT.

Borrower is in default under this Note if Borrower:

		A.	Fails to make a payment when due under the Note or otherwise fails to comply with any provision of this Note.

		B.	Does not disclose, or anyone acting on its behalf does not disclose, any material fact to Lender or SBA.

		C.	Makes, or anyone acting on its behalf makes, a materially false or misleading representation, attestation or certification
to Lender or SBA in connection with Borrower’s request for this Loan under the CARES Act, or makes a false certification
under paragraph 5 of this Note.

		D.	Fails to comply with all of the provisions of this Note.

		E.	Becomes the subject of a proceeding under any bankruptcy or insolvency law, has a receiver or liquidator appointed for any
part of its business or property, or makes an assignment for the benefit of creditors.

		F.	Reorganizes, merges, consolidates, or otherwise changes ownership or business structure without Lender’s prior written
consent.

		G.	Becomes the subject of a civil or criminal action that Lender believes may materially affect Borrower’s ability to pay
this Note.

		8.	LENDER’S RIGHTS IF THERE IS A DEFAULT.

Without notice or demand and without giving up any
of its rights, Lender may:

		A.	Require immediate payment of all amounts owing under this Note.

		B.	Collect all amounts owing from Borrower.

		C.	File suit and obtain judgment.

		9.	LENDER’S GENERAL POWERS.

Without notice or Borrower’s consent, Lender
may incur expenses to collect amounts due under this Note and enforce the terms of this Note. Among other things, the expenses
may include reasonable attorney’s fees and costs. If Lender incurs such expenses, it may demand immediate repayment from
Borrower or add the expenses to the principal balance;

    

     

    

 

		10.	GOVERNING LAW AND VENUE; WHEN FEDERAL LAW APPLIES.

When SBA is the holder, this Note shall be interpreted
and enforced under federal law, including SBA regulations. Lender or SBA may use state or local procedures for filing papers, recording
documents, giving notice, foreclosing liens, and other purposes. By using such procedures, SBA does not waive any federal immunity
from state or local control, penalty, tax, or liability. As to this Note, Borrower may not claim or assert against SBA any local
or state law to deny any obligation, defeat any claim of SBA, or preempt federal law.

If the SBA is not the holder, this Note shall be governed
by and construed in accordance with the laws of the State of Ohio where the main office of Lender is located. MATTERS REGARDING
INTEREST TO BE CHARGED BY LENDER AND THE EXPORTATION OF INTEREST SHALL BE GOVERNED BY FEDERAL LAW (INCLUDING WITHOUT LIMITATION
12 U.S.C. SECTIONS 85 AND 1831u) AND THE LAW OF THE STATE OF OHIO. Borrower agrees that any legal action or proceeding with respect
to any of its obligations under this Note may be brought by Lender in any state or federal court located in the State of Ohio,
as Lender in its sole discretion may elect. Borrower submits to and accepts in respect of its property, generally and unconditionally,
the non-exclusive jurisdiction of those courts. Borrower waives any claim that the State of Ohio is not a convenient forum or the
proper venue for any such suit, action or proceeding. The extension of credit that is the subject of this Note is being made by
Lender in Ohio.

		11.	SUCCESSORS AND ASSIGNS.

Under this Note, Borrower includes its successors,
and Lender includes its successors and assigns.

		12.	GENERAL PROVISIONS.

		A.	Borrower must sign all documents necessary at any time to comply with the Loan.

		B.	Borrower’s execution of this Note has been duly authorized by all necessary actions of its governing body. The person
signing this Note is duly authorized to do so on behalf of Borrower.

		C.	This Note shall not be governed by any existing or future credit agreement or loan agreement with Lender. The liabilities guaranteed
pursuant to any existing or future guaranty in favor of Lender shall not include this Note. The liabilities secured by any existing
or future security instrument in favor Lender shall not include this Note.

		D.	Lender may exercise any of its rights separately or together, as many times and in any order it chooses. Lender may delay or
forgo enforcing any of its rights without giving up any of them.

		E.	Borrower may not use an oral statement of Lender or SBA to contradict or alter the written terms of this Note.

    

     

    

 

		F.	If any part of this Note is unenforceable, all other parts remain in effect.

		G.	To the extent allowed by law, Borrower waives all demands and notices in connection with this Note, including presentment,
demand, protest, and notice of dishonor.

		H.	Borrower’s liability under this Note will continue with respect to any amounts SBA may pay Bank based on an SBA guarantee
of this Note. Any agreement with Bank under which SBA may guarantee this Note does not create any third party rights or benefits
for Borrower and, if SBA pays Bank under such an agreement, SBA or Bank may then seek recovery from Borrower of amounts paid by
SBA.

		I.	Lender reserves the right to modify the Note Amount based on documentation received from Borrower.

		13.	ELECTRONIC SIGNATURES.

Borrower’s electronic signature shall have the
same force and effect as an original signature and shall be deemed (i) to be “written” or “in writing”
or an “electronic record”, (ii) to have been signed and (iii) to constitute a record established and maintained in
the ordinary course of business and an original written record when printed from electronic files. Such paper copies or “printouts,”
if introduced as evidence in any judicial, arbitral, mediation or administrative proceeding, will be admissible as between the
parties to the same extent and under the same conditions as other original business records created and maintained in documentary
form.

		14.	BORROWER’S NAME AND SIGNATURE:

Borrower: 

TSR, Inc.

	By:	 /s/ John Sharkey	 
	 	 	 
	Printed Name:	 John Sharkey	 
	 	 	 
	Title:  	Sr. VP	 
	 	 	 
	Date Signed:	 4/8/2020rpay-ex1032_8.htm

Exhibit 10.32

 

INDEMNIFICATION AGREEMENT

 

This Indemnification Agreement is dated as of _____________, 2019 (this “Agreement”) and is between Repay Holdings Corporation, a Delaware corporation (the “Company”), and ________________ (“Indemnitee”).

 

Background

 

The Company believes that in order to attract and retain highly competent persons to serve as directors or in other capacities, including as officers, it must provide such persons with adequate protection through indemnification against the risks of claims and actions against them arising out of their services to and activities on behalf of the Company.

 

The Company desires and has requested Indemnitee to serve as a [director] [officer] of the Company and, in order to induce Indemnitee to serve as a [director] [officer] of the Company, the Company is willing to grant Indemnitee the indemnification provided for herein.  Indemnitee is willing to so serve on the basis that such indemnification be provided.

The parties by this Agreement desire to set forth their agreement regarding indemnification and the advancement of expenses.

In consideration of Indemnitee’s service to the Company and the covenants and agreements set forth below, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

 

Section 1. Indemnification. 

 

To the fullest extent permitted by the General Corporation Law of the State of Delaware (the “DGCL”):

 

(a) The Company shall indemnify Indemnitee if Indemnitee was or is made or is threatened to be made a party to, or is otherwise involved in, as a witness or otherwise, any threatened, pending or completed action, suit or proceeding (brought in the right of the Company or otherwise), whether civil, criminal, administrative or investigative and whether formal or informal, including appeals, by reason of the fact that Indemnitee is or was or has agreed to serve as a director, officer, employee or agent of the Company, or while serving as a director or officer of the Company, is or was serving or has agreed to serve at the request of the Company as a director, officer, employee or agent (which, for purposes hereof, shall include a trustee, fiduciary, partner or manager or similar capacity) of another corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise, or by reason of any action alleged to have been taken or omitted in any such capacity.

 

(b) The indemnification provided by this Section 1 shall be from and against all loss and liability suffered and expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by or on behalf of Indemnitee in connection with such action, suit or proceeding, including any appeals. 

 

Section 2. Advance Payment of Expenses.  To the fullest extent permitted by the DGCL, expenses (including attorneys’ fees) incurred by Indemnitee in appearing at, participating in or defending any action, suit or proceeding or in connection with an enforcement action as contemplated by Section 3(e), shall be paid by the Company in advance of the final disposition of such action, suit or proceeding within 30 days after receipt by the Company of a statement or statements from Indemnitee requesting such advance or advances from time to time.  Indemnitee hereby undertakes to repay any amounts advanced (without interest) to the extent that it is ultimately determined that Indemnitee is not entitled under this Agreement to be indemnified by the Company in respect thereof.  No other form of undertaking shall be required of Indemnitee other than the execution of this Agreement.  This Section 2 shall be subject to Section 3(b) and shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to Section 6.

 

Section 3. Procedure for Indemnification; Notification and Defense of Claim.

 

(a) Promptly after receipt by Indemnitee of notice of the commencement of any action, suit or proceeding, Indemnitee shall, if a claim in respect thereof is to be made against the Company hereunder, notify the Company in writing of the commencement thereof.  The failure to promptly notify the Company of the commencement of the action, suit or proceeding, or of Indemnitee’s request for indemnification, will not relieve the Company from any liability that it may have to Indemnitee hereunder, except to the extent the Company is actually and materially prejudiced in its defense of such action, suit or proceeding as a result of such failure.  To obtain indemnification under this Agreement, 

 

 

Indemnitee shall submit to the Company a written request therefor including such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to enable the Company to determine whether and to what extent Indemnitee is entitled to indemnification.

 

(b) With respect to any action, suit or proceeding of which the Company is so notified as provided in this Agreement, the Company shall, subject to the last two sentences of this paragraph, be entitled to assume the defense of such action, suit or proceeding, with counsel reasonably acceptable to Indemnitee, upon the delivery to Indemnitee of written notice of its election to do so.  After delivery of such notice, approval of such counsel by Indemnitee and the retention of such counsel by the Company, the Company will not be liable to Indemnitee under this Agreement for any subsequently-incurred fees of separate counsel engaged by Indemnitee with respect to the same action, suit or proceeding unless the employment of separate counsel by Indemnitee has been previously authorized in writing by the Company.  Notwithstanding the foregoing, if Indemnitee, based on the advice of his or her counsel, shall have reasonably concluded (with written notice being given to the Company setting forth the basis for such conclusion) that, in the conduct of any such defense, there is or is reasonably likely to be a conflict of interest or position between the Company and Indemnitee with respect to a significant issue, then the Company will not be entitled, without the written consent of Indemnitee, to assume such defense.  In addition, the Company will not be entitled, without the written consent of Indemnitee, to assume the defense of any claim brought by or in the right of the Company.   

 

(c) To the fullest extent permitted by the DGCL, the Company’s assumption of the defense of an action, suit or proceeding in accordance with paragraph 3(b) will constitute an irrevocable acknowledgement by the Company that any loss and liability suffered by Indemnitee and expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement by or for the account of Indemnitee incurred in connection therewith are indemnifiable by the Company under Section 1 of this Agreement.

 

(d) The determination whether to grant Indemnitee’s indemnification request shall be made promptly and in any event within 30 days following the Company’s receipt of a request for indemnification in accordance with Section 3(a).  If the Company determines that Indemnitee is entitled to such indemnification or, as contemplated by paragraph 3(c) the Company has acknowledged such entitlement, the Company will make payment to Indemnitee of the indemnifiable amount within such 30 day period.  If the Company is not deemed to have so acknowledged such entitlement or the Company’s determination of whether to grant Indemnitee’s indemnification request shall not have been made within such 30 day period, the requisite determination of entitlement to indemnification shall, subject to Section 6, nonetheless be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee's statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under the DGCL. 

 

(e) In the event that (i) the Company determines in accordance with this Section 3 that Indemnitee is not entitled to indemnification under this Agreement, (ii) the Company denies a request for indemnification, in whole or in part, or fails to respond or make a determination of entitlement to indemnification within 30 days following receipt of a request for indemnification as described above, (iii) payment of indemnification is not made within such 30 day period, (iv) advancement of expenses is not timely made in accordance with Section 2, or (v) the Company or any other person takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any litigation or other action or proceeding designed to deny, or to recover from, Indemnitee the benefits provided or intended to be provided to Indemnitee hereunder, Indemnitee shall be entitled to an adjudication in any court of competent jurisdiction of his or her entitlement to such indemnification or advancement of expenses.  Indemnitee’s expenses (including attorneys’ fees) incurred in connection with successfully establishing Indemnitee’s right to indemnification or advancement of expenses, in whole or in part, in any such proceeding or otherwise shall also be indemnified by the Company to the fullest extent permitted by the DGCL.  

 

(f) Indemnitee shall be presumed to be entitled to indemnification and advancement of expenses under this Agreement upon submission of a request therefor in accordance with Section 2 or Section 3 of this Agreement, as the case may be.  The Company shall have the burden of proof in overcoming such presumption, and such presumption shall be used as a basis for a determination of entitlement to indemnification and advancement of expenses unless the Company overcomes such presumption by clear and convincing evidence. 

 

Section 4. Insurance and Subrogation.

 

(a) The Company may purchase and maintain a policy or policies of insurance, providing Indemnitee with coverage for any liability asserted against, and incurred by, Indemnitee or on Indemnitee’s behalf by reason of the fact that Indemnitee is or was or has agreed to serve as a director, officer, employee or agent of the Company, or while serving 

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as a director or officer of the Company, is or was serving or has agreed to serve at the request of the Company as a director, officer, employee or agent (which, for purposes hereof, shall include a trustee, fiduciary, partner or manager or similar capacity) of another corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise, or arising out of Indemnitee’s status as such, whether or not the Company would have the power to indemnify Indemnitee against such liability under the provisions of this Agreement.  If the Company has such insurance in effect at the time the Company receives from Indemnitee any notice of the commencement of an action, suit or proceeding, the Company shall give prompt notice of the commencement of such action, suit or proceeding to the insurers in accordance with the procedures set forth in the policy.  The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policy.

 

(b) Subject to Section 8, in the event of any payment by the Company under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee with respect to any insurance policy.  Indemnitee shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights in accordance with the terms of such insurance policy. The Company shall pay or reimburse all expenses actually and reasonably incurred by Indemnitee in connection with such subrogation.

 

(c) Subject to Section 8, the Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder (including, but not limited to, judgments, fines and amounts paid in settlement, and ERISA excise taxes or penalties) if and to the extent that Indemnitee has otherwise actually received such payment under this Agreement or any insurance policy, contract, agreement or otherwise. 

 

Section 5. Certain Definitions. For purposes of this Agreement, the following definitions shall apply:

 

(a) The term “action, suit or proceeding” shall be broadly construed and shall include, without limitation, the investigation, preparation, prosecution, defense, settlement, arbitration and appeal of, and the giving of testimony in, any threatened, pending or completed claim, action, suit, arbitration, alternative dispute mechanism or proceeding, whether civil, criminal, administrative or investigative.

 

(b) The term “by reason of the fact that Indemnitee is or was or has agreed to serve as a director, officer, employee or agent of the Company, or while serving as a director or officer of the Company, is or was serving or has agreed to serve at the request of the Company as a director, officer, employee or agent (which, for purposes hereof, shall include a trustee, partner or manager or similar capacity) of another corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise” shall be broadly construed and shall include, without limitation, any actual or alleged act or omission to act.

 

(c) The term “expenses” shall be broadly construed and shall include, without limitation, all direct and indirect costs of any type or nature whatsoever (including, without limitation, all attorneys’ fees and related disbursements, appeal bonds, other out-of-pocket costs and reasonable compensation for time spent by Indemnitee for which Indemnitee is not otherwise compensated by the Company or any third party), actually and reasonably incurred by Indemnitee in connection with either the investigation, defense or appeal of an action, suit or proceeding or establishing or enforcing a right to indemnification under this Agreement or otherwise incurred in connection with a claim that is indemnifiable hereunder.

 

(d) The term “judgments, fines and amounts paid in settlement” shall be broadly construed and shall include, without limitation, all direct and indirect payments of any type or nature whatsoever, as well as any penalties or excise taxes assessed on a person with respect to an employee benefit plan). 

 

Section 6. Limitation on Indemnification.  Notwithstanding any other provision herein to the contrary, the Company shall not be obligated pursuant to this Agreement:

 

(a) Claims Initiated by Indemnitee.  To indemnify or advance expenses to Indemnitee with respect to an action, suit or proceeding (or part thereof) initiated by Indemnitee, except with respect to any compulsory counterclaim brought by Indemnitee or an action, suit or proceeding brought to establish or enforce a right to indemnification or advancement of expenses under this Agreement (which shall be governed by the provisions of Section 6(b) of this Agreement), unless such action, suit or proceeding (or part thereof) was authorized or consented to by the Board of Directors of the Company. 

 

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(b) Action for Indemnification.  To indemnify Indemnitee for any expenses incurred by Indemnitee with respect to any action, suit or proceeding instituted by Indemnitee to enforce or interpret this Agreement, unless Indemnitee is successful in such action, suit or proceeding in establishing Indemnitee’s right, in whole or in part, to indemnification or advancement of expenses hereunder (in which case such indemnification or advancement shall be to the fullest extent permitted by the DGCL), or unless and to the extent that the court in such action, suit or proceeding shall determine that, despite Indemnitee’s failure to establish their right to indemnification, Indemnitee is entitled to indemnity for such expenses; provided, however, that nothing in this Section 6(b) is intended to limit the Company’s obligations with respect to the advancement of expenses to Indemnitee in connection with any such action, suit or proceeding instituted by Indemnitee to enforce or interpret this Agreement, as provided in Section 2.

 

(c) Fraud or Willful Misconduct.  To indemnify Indemnitee on account of conduct by Indemnitee where such conduct has been determined by a final (not interlocutory) judgment or other adjudication of a court or arbitration or administrative body of competent jurisdiction as to which there is no further right or option of appeal or the time within which an appeal must be filed has expired without such filing to have been knowingly fraudulent or constitute willful misconduct.

 

(d) Prohibited by Law.  To indemnify Indemnitee in any circumstance where such indemnification has been determined by a final (not interlocutory) judgment or other adjudication of a court or arbitration or administrative body of competent jurisdiction as to which there is no further right or option of appeal or the time within which an appeal must be filed has expired without such filing to be prohibited by law.

 

Section 7.  Certain Settlement Provisions.  The Company shall have no obligation to indemnify Indemnitee under this Agreement for any amounts paid in settlement of any action, suit or proceeding without the Company’s prior written consent.  The Company shall not settle any action, suit or proceeding in any manner that would impose any fine or other obligation on Indemnitee without Indemnitee’s prior written consent.  Neither the Company nor Indemnitee will unreasonably withhold his, her, its or their consent to any proposed settlement.

 

Section 8. Jointly Indemnifiable Claims.

 

(a) Given that certain jointly indemnifiable claims may arise due to the service of Indemnitee as a director and/or officer of the Company at the request of the Indemnitee-related entities, the Company acknowledges and agrees that the Company shall be fully and primarily responsible for the payment to Indemnitee in respect of indemnification or advancement of expenses in connection with any such jointly indemnifiable claim, pursuant to and in accordance with the terms of this Agreement, irrespective of any right of recovery Indemnitee may have from the Indemnitee-related entities.  Under no circumstance shall the Company be entitled to any right of subrogation against or contribution by the Indemnitee-related entities and no right of advancement, indemnification or recovery Indemnitee may have from the Indemnitee-related entities shall reduce or otherwise alter the rights of Indemnitee or the obligations of the Company hereunder.  In the event that any of the Indemnitee-related entities shall make any payment to Indemnitee in respect of indemnification or advancement of expenses with respect to any jointly indemnifiable claim, the Indemnitee-related entity making such payment shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee against the Company, and Indemnitee shall execute all papers reasonably required and shall do all things that may be reasonably necessary to secure such rights, including the execution of such documents as may be necessary to enable the Indemnitee-related entities effectively to bring suit to enforce such rights.  The Company and Indemnitee agree that each of the Indemnitee-related entities shall be third-party beneficiaries with respect to this Section 8(a), entitled to enforce this Section 8(a) as though each such Indemnitee-related entity were a party to this Agreement.

(b) For purposes of this Section 8(a), the following terms shall have the following meanings:

(i)The term “Indemnitee-related entities” means any corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise (other than the Company or any other corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise Indemnitee has agreed, on behalf of the Company or at the Company’s request, to serve as a director, officer, employee or agent and which service is covered by the indemnity described in this Agreement) from whom an Indemnitee may be entitled to indemnification or advancement of expenses (other than as a result of obligations under an insurance policy) with respect to which, in whole or in part, the Company may also have an indemnification or advancement obligation.  

 

(ii)The term “jointly indemnifiable claims” shall be broadly construed and shall include, without limitation, any action, suit or proceeding for which Indemnitee shall be entitled to indemnification or advancement of expenses from both the Indemnitee-related entities and the Company pursuant to the DGCL, any agreement or the certificate of incorporation, bylaws, partnership agreement, operating agreement, certificate of formation, certificate of 

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limited partnership or comparable organizational documents of the Company or the Indemnitee-related entities, as applicable.

 

 

Section 9. Savings Clause. If any provision or provisions (or portion thereof) of this Agreement shall be invalidated on any ground by any court of competent jurisdiction, then the Company shall nevertheless indemnify Indemnitee if Indemnitee was or is made or is threatened to be made a party or is otherwise involved in any threatened, pending or completed action, suit or proceeding (brought in the right of the Company or otherwise), whether civil, criminal, administrative or investigative and whether formal or informal, including appeals, by reason of the fact that Indemnitee is or was or has agreed to serve as a director, officer, employee or agent of the Company, or while serving as a director or officer of the Company, is or was serving or has agreed to serve at the request of the Company as a director, officer, employee or agent (which, for purposes hereof, shall include a trustee, partner or manager or similar capacity) of another corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise, or by reason of any action alleged to have been taken or omitted in such capacity, from and against all loss and liability suffered and expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement reasonably incurred by or on behalf of Indemnitee in connection with such action, suit or proceeding, including any appeals, to the fullest extent permitted by any applicable portion of this Agreement that shall not have been invalidated. 

 

Section 10. Contribution.  In order to provide for just and equitable contribution in circumstances in which the indemnification provided for herein is held by a court of competent jurisdiction to be unavailable to Indemnitee in whole or in part, it is agreed that, in such event, the Company shall, to the fullest extent permitted by law, contribute to the payment of all of Indemnitee’s loss and liability suffered and expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement reasonably incurred by or on behalf of Indemnitee in connection with any action, suit or proceeding, including any appeals, in an amount that is just and equitable in the circumstances; provided that, without limiting the generality of the foregoing, such contribution shall not be required where such holding by the court is due to any limitation on indemnification set forth in Section 4(c), 6 or 7.

 

Section 11. Form and Delivery of Communications.  All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly given if (a) delivered by hand, upon receipt by the party to whom said notice or other communication shall have been directed, (b) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed, (c) mailed by reputable overnight courier, one day after deposit with such courier and with written verification of receipt, or (d) sent by email or facsimile transmission, with receipt of confirmation by the party to whom said notice or other communication shall have been directed that such transmission has been received.  Notice to the Company shall be directed to Repay Holdings Corporation, Attention: John A. Morris, CEO, email: jmorris@repayonline.com, telephone number: (404) 504-7474.  Notice to Indemnitee shall be directed to _________________, email: __________________.

 

Section 12. Nonexclusivity.  The provisions for indemnification and advancement of expenses set forth in this Agreement shall not be deemed exclusive of any other rights which Indemnitee may have under any provision of law, in any court in which a proceeding is brought, set forth in the Company’s certificate of incorporation or by-laws, other agreements or otherwise, and Indemnitee’s rights hereunder shall inure to the benefit of the heirs, executors and administrators of Indemnitee.  No amendment or alteration of the Company’s certificate of incorporation or by-laws or any other agreement shall adversely affect the rights provided to Indemnitee under this Agreement.

 

Section 13. No Construction as Employment Agreement.  Nothing contained herein shall be construed as giving Indemnitee any right to be retained as a director of the Company or in the employ of the Company.  For the avoidance of doubt, the indemnification and advancement of expenses provided under this Agreement shall continue as to Indemnitee even though he may have ceased to be a director, officer, employee or agent of the Company.  

 

Section 14. Interpretation of Agreement.  It is understood that the parties hereto intend this Agreement to be interpreted and enforced so as to provide indemnification to Indemnitee to the fullest extent now or hereafter permitted by the DGCL.

 

Section 15. Entire Agreement.  This Agreement and the documents expressly referred to herein constitute the entire agreement between the parties hereto with respect to the matters covered hereby, and any other prior or contemporaneous oral or written understandings or agreements with respect to the matters covered hereby are expressly superseded by this Agreement.

 

Section 16. Modification and Waiver.  No supplement, modification, waiver or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto.  No waiver of any of the provisions of this 

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Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.  For the avoidance of doubt, this Agreement may not be terminated by the Company without Indemnitee’s prior written consent.

 

Section 17. Successor and Assigns.  All of the terms and provisions of this Agreement shall be binding upon, shall inure to the benefit of and shall be enforceable by the parties hereto and their respective successors, assigns, heirs, executors, administrators and legal representatives.  The Company shall require and cause any direct or indirect successor (whether by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of such Indemnitor, by written agreement in form and substance reasonably satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.

 

Section 18. Service of Process and Venue.  The Company hereby irrevocably and unconditionally (a) agrees that any action or proceeding arising out of or in connection with this Agreement may brought in the Chancery Court of the State of Delaware (the “Delaware Court”), (b) consents to submit to the non-exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection with this Agreement, (c) appoints, to the extent the Company is not otherwise subject to service of process in the State of Delaware, irrevocably Corporation Service Company, 251 Little Falls Drive, Wilmington, New Castle County, Delaware 19808 as its agent in the State of Delaware for acceptance of legal process in connection with any such action or proceeding against such party with the same legal force and validity as if served upon the Company personally within the State of Delaware, (d) waives any objection to the laying of venue of any such action or proceeding in the Delaware Court, and (e) waives, and agrees not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum. 

 

Section 19. Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware.  If a court of competent jurisdiction shall make a final determination that the provisions of the law of any state other than Delaware govern indemnification by the Company of Indemnitee, then the indemnification provided under this Agreement shall in all instances be enforceable to the fullest extent permitted under such law, notwithstanding any provision of this Agreement to the contrary.

 

Section 20. Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument, notwithstanding that both parties are not signatories to the original or same counterpart.

 

Section 21.  Headings and Section References.  The section and subsection headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.  Section references are to this Agreement unless otherwise specified.

 

 

 

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This Indemnification Agreement has been duly executed and delivered to be effective as of the date stated above.

 

 

Repay Holdings Corporation

 

 

By _______________________________________

Name:  

Title: 

 

 

 

 

 

INDEMNITEE:

 

_______________________________________

Name:

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