Document:

ex_239190.htm

		2020 PPIH Long-Term Incentive Program

		 

		Restricted Stock and Performance Award Grant

		 

		Restricted Stock and Performance Award Agreement

		under the

		2017 Omnibus Stock Incentive Plan, as Amended June 13, 2017

		 

		Grantee:          __________

		 

		No. of Restricted Shares: ____________

		 

		 

		

 This Agreement (the “Agreement”) evidences the award of (i)  ___________ restricted shares of Common Stock (each, a “Restricted Share” and, collectively, the “Restricted Shares”) subject to a vesting schedule, and (ii) a performance award (the “Performance Award”) relating to the performance period of the Company’s fiscal years 2020-2022 (the “Performance Period”) with a target dollar amount of $_________ (the “Target Amount”), that Perma-Pipe International Holdings, Inc., a Delaware corporation (the “Company”), has granted to you, ________________, effective as of ____________ (the “Grant Date”), pursuant to the 2017 Omnibus Stock Incentive Plan, as Amended June 13,  2017 (the “Plan”) and conditioned upon your agreement to the terms described below.  All of the provisions of the Plan are expressly incorporated into this Agreement. This Agreement and the award made hereunder supersede and replace any equity-based award granted to you by the Company in calendar year 2020 and any award agreement relating thereto (the “Prior 2020 Grant”).  This Agreement also supersedes any employment agreement between you and the Company to the extent such employment agreement would otherwise govern the Restricted Shares and the Performance Award granted hereunder with respect to the impact of retirement.  

		 

		NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties agree as follows: 

		 

		1.    Terminology.  Unless otherwise provided in this Agreement, capitalized words used herein are defined in the Glossary at the end of this Agreement, or, if no definition is provided in this Agreement or the Glossary, such capitalized words shall have the same definitions as in the Plan.

		 

		2.    Vesting of Restricted Shares.

		 

		(a)    All of the Restricted Shares are nonvested and forfeitable as of the Grant Date.

		 

		(b)    So long as your Service is continuous from the Grant Date through the applicable date upon which vesting is scheduled to occur,

		 

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					_____ of the Restricted Shares will vest and become nonforfeitable on _____, 2021 (the “First Vesting Date”),

				

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					_____ of the Restricted Shares will vest and become nonforfeitable on _____, 2022 (the “Second Vesting Date”),

				

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					_____ of the Restricted Shares will vest and become nonforfeitable on _____, 2023 (the “Third Vesting Date” and, together with the First Vesting Date and the Second Vesting Date, the “Vesting Dates”).

				

		 

		(c)    Notwithstanding Section 2(b), one hundred percent of the Restricted Shares will become vested and nonforfeitable as of immediately before and contingent upon the occurrence of a Change in Control, so long as your Service is continuous from the Grant Date, through the date of the Change in Control.  In addition, if you are in Retirement (as defined below) then, upon a Change in Control, any Restricted Shares that had remained eligible for vesting following your Retirement, but that have not yet become vested, shall be vested and nonforfeitable as of immediately before and contingent upon the occurrence of such Change in Control.  “Retirement” shall mean the effective date of your resignation or other termination of employment after your attainment of age 55 and at least 5 years of service (or such shorter period of service as may be determined by the Administrator); provided that, for a resignation to be treated as a Retirement, you must provide at least 6 months’ advance written notice of such Retirement to the Company, and, for the avoidance of doubt, your Retirement will be effective upon your actual retirement date rather than upon the date of such notice.  You will continue working diligently to satisfy our business obligations as well as assist the Company during a transition.  The treatment of the Restricted Shares upon Retirement is intended to recognize your contributions to the Company prior to your Retirement and it is not intended to apply if you will continue working in the Company’s industry following your Retirement.  Therefore, as a condition of receiving the award set forth in this Agreement under the conditions of Retirement, you will be required to enter into and comply with an extension of your current Confidentiality Agreement and Non-Solicitation/Non-Competition Agreement term for three years following the effective date of your retirement.

		 

		3.    Terms of Performance Award.  The Performance Award entitles you, subject to Section 4 and the other terms and conditions of this Agreement, to receive (a) a cash payment equal to one-third of eighty percent of the Target Amount (the “Threshold Amount”) on  each Vesting Date (each, an “Annual Payment”) and (b) an additional cash amount, payable on the Third Vesting Date equal to (i) the excess, if any, of the percentage of the Target Amount indicated below corresponding to the actual achievement of the performance goals set forth below (the “Performance Goals”) during the Performance Period over (ii) the sum of the Annual Payments.  The additional amount payable shall be interpolated for performance between the specified levels and the sum of the Annual Payments shall not be less than eighty percent of the Target Amount.  The Performance Goals and corresponding percentages of the Target Amount are the following:

		 

			Fiscal Years

					Net Income Threshold ($)

				(Payout = 80% of Target Amount)

					Net Income Target ($)

				(Payout = 100% of Target Amount)

					Net Income Maximum ($)

				(Payout = 150% of Target Amount)

				
	2020-2022

					[__]

					[__]

					[__]

				

		 

		The Performance Goals and the Company’s achievement of the Performance Goals shall be calculated by the Company in its sole and absolute discretion.  Notwithstanding the foregoing, the Performance Award will be deemed earned and shall be paid as of immediately before and contingent upon the occurrence of a Change in Control, at the level indicated in the most recent forecast prepared by the Company, so long as your Service is continuous from the Grant Date through the date of the Change in Control.  In addition, if you are in Retirement, then, upon a Change in Control, any portion of the Performance Award that had remained eligible to be paid following your Retirement, but that has not yet been paid, shall be paid as of immediately before and contingent upon the occurrence of such Change in Control in an amount based on the performance level indicated in the most recent forecast prepared by the Company. 

		 

		4.    Effect of Termination of Employment or Service.  

		 

		(a)    If your Service ceases by reason of your permanent disability (as defined in Section 22(e)(3) of the Code), then the Restricted Shares that would have vested on the schedule set forth in Section 2(b), and the portion of the Performance Award that would have been paid on the schedule set forth in Section 3, if your Service had continued through the one-year anniversary of your date of disability shall, in the case of the Restricted Shares, become nonforfeitable and shall be released to you on the date such Restricted Shares would have vested as set forth in Section 2(b), and in the case of the Performance Award, be paid to you on the date such amount would have been paid as set forth in Section 3 but in an amount based on the performance level indicated in the most recent forecast prepared by the Company, if your Service had been continuous through the one year anniversary of your date of disability, and any Restricted Shares or portion of your Performance Award that do not vest in accordance with this subsection shall be forfeited; provided, however, if the Company (or an Affiliate) reasonably determines following your termination due to disability that you could have been terminated for Cause had all the facts been known to the Company (or an Affiliate) at the time of your disability, then you shall forfeit all rights with respect to any unvested Restricted Shares and any unpaid Performance Award.

		 

		(b)    If your Service ceases by reason of your Retirement, by reason of your termination without Cause when you had met the age and service requirements for Retirement or by reason of your death, then:

		 

		(i)    If your Restricted Shares and Performance Award were granted prior to the 12-month period ending on the effective date of your Retirement or death, (A) one hundred percent of the Restricted Shares will continue to vest and become nonforfeitable as set forth in Section 2(b), and (B) your Performance Award will be paid as set forth in Section 3, as though your Service was continuous, except that, in the case of your Performance Award, the amount of the payment shall be based on the performance level indicated in the most recent forecast prepared by the Company rather than eighty percent, or

		 

		(ii)    If your Restricted Shares and Performance Award were granted in the 12-month period ending on the effective date of your Retirement or death, a pro rata amount of the first tranche of your Restricted Shares and your Performance Award (based on the number of days between the grant date and your Retirement divided by 365) will continue to vest and become nonforfeitable as set forth in Section 2(b), in the case of Restricted Shares, and will be paid as set forth in Section 3, in the case of your Performance Award, as though your Service was continuous, except that the amount of the payment with respect to your Performance Award shall be based on the performance level indicated in the most recent forecast prepared by the Company.  

		 

		Any portion of the Award that does not remain eligible for continued vesting or to be deemed earned upon the cessation of your Service shall be immediately forfeited.  If you die following your separation under this Section 4(b), then your estate will receive any Restricted Shares and Performance Awards that would have continued to vest in accordance with the foregoing. 

		 

		(c)    Notwithstanding the foregoing, if:

		 

		(i)    You work in the Company’s industry or with a competitor of the Company (in each case as determined by the Company in its sole and absolute discretion) during the three years following the effective date of your Retirement or 

		 

		(ii)         The Company (or an Affiliate) reasonably determines following your Retirement that you could have been terminated for Cause had all the facts been known to the Company (or an Affiliate) at the time of your Retirement, 

		 

		then you shall forfeit any unearned Restricted Shares and unpaid Performance Award amounts and be required to repay in cash the gross amount of any Restricted Shares that vested or Performance Award amounts that were paid to you under this Agreement in connection with or following the effective date of your Retirement.  

		 

		In the case of Restricted Shares, the amount required to be repaid shall be the Fair Market Value of such Restricted Shares at the time such Restricted Shares became vested and nonforfeitable, provided that you may, rather than paying cash, repay a number of shares of Common Stock equal to the number of Restricted Shares that became vested and nonforfeitable.

		 

		(d)    If your Service ceases for any reason except as otherwise specified above, all Restricted Shares that are not then vested, and any portion of your Performance Award that has not been earned, will be immediately forfeited by you.  Except as otherwise specified above, unless otherwise determined by the Administrator in its sole discretion, none of the Restricted Shares, and no portion of the Performance Award, will vest after your Service ceases.

		 

		 

		5.    Restrictions on Transfer.

		 

		(a)    Prior to vesting, your Restricted Shares may not be sold, assigned, transferred, pledged, hypothecated or disposed of in any way (whether by operation of law or otherwise), except by will or the laws of descent and distribution, and shall not be subject to execution, attachment or similar process, Any attempt to transfer your Restricted Shares that is in violation of this Section 5(a) shall be wholly ineffective and, if any such attempt is made, the Company may cause you to immediately forfeit any unvested Restricted Shares without any payment or consideration by the Company.  The Company is authorized to take appropriate measures to prevent any such transfer, including, but not limited to, having its Transfer Agent hold all unvested shares in a designated nominee account until vesting and maintaining stop transfer instructions in regard to such Restricted Shares, or placing appropriate legends on any certificates that are issued with respect to the Restricted Shares.

		 

		(b)    You hereby represent and warrant to the Company as follows:

		 

		(i)    You will hold any Shares received under this Agreement for your own account for investment only and not with a view to, or for resale in connection with, any “distribution” of the Shares within the meaning of the Securities Act.

		 

		(ii)    You understand that the Company may, in its discretion, continue to impose restrictions on the sale, pledge or other transfer of your Shares after they vest (including the placement of appropriate legends on stock certificates and the issue of stop transfer instructions to the Company’s Transfer Agents) if, in the judgment of the Company, such restrictions are necessary or desirable to comply with the Securities Act, the securities laws of any State or any other law.

		 

		(iii)    You are aware that your investment in the Company is a speculative investment that has limited liquidity and is subject to the risk of complete loss.

		 

		(c)    Any attempt to dispose of the Shares received under this Agreement in contravention of the restrictions set forth in this Section 5 shall be null and void and without effect.  The Company shall not be required to (i) transfer on its books any Shares that have been sold or transferred in contravention of this Agreement or (ii) treat as the owner of the Shares, or otherwise accord voting, dividend, or liquidation rights to any transferee to whom the Shares have been transferred in contravention of this Agreement.

		 

		6.    Stockholder Rights.  You are considered the record owner of the Restricted Shares immediately upon the Grant Date; however, you shall not be entitled to vote such Shares and you shall authorize and, by this Agreement, provide an irrevocable proxy coupled with an interest to the Company to vote such shares in its discretion until they are vested. Any cash dividends will accrue and be paid to you at the same time, and to the same extent, that the Restricted Shares vest, and any dividends paid in Shares or other securities shall be subject to the same vesting schedule, risk of forfeiture, and restrictions on transferability as the Restricted Shares with respect to which they were paid.  For clarity, if you forfeit any Restricted Shares, then you will also forfeit any dividends or other distributions paid with respect to such Restricted Shares.

		 

		7.    Tax Withholding.

		 

		(a)    You hereby agree to make adequate provision for foreign, federal, state and local taxes required by law to be withheld, if any, which arise in connection with the grant, vesting or other event relating to the Restricted Shares or in connection with the grant, vesting, earning or payment of the Performance Award.  To enable the satisfaction of your tax withholding obligations with respect to the Restricted Shares through the delivery of proceeds from the sale of Shares that are issued under this Agreement on the market, you should execute Exhibit A to this Agreement and return it to the Company by the deadline set forth therein; provided that such sale of Shares shall occur only if the Company or its Affiliates do not satisfy applicable tax withholding obligations by withholding the issuance or delivery of Shares hereunder.  If you have not timely executed Exhibit A to this Agreement, then you shall, immediately upon notification of the amount of withholding taxes due, if any, in connection with the Restricted Shares, pay to the Company in cash or by check the amount necessary to satisfy any withholding obligations.  The Company (and its Affiliates) shall also have the right to deduct from any compensation or any other payment of any kind due you (including withholding the issuance or delivery of Shares hereunder) the amount of any federal, state, local or foreign taxes required by law to be withheld in connection with this Agreement; provided, however, that the value of the Shares withheld or redeemed for taxes may not exceed the maximum statutory rate associated with the transaction with respect to which Shares are being withheld or redeemed to the extent necessary for the Company to avoid an accounting charge.

		 

		(b)    You hereby acknowledge that you have been advised by the Company to seek independent tax advice from your own advisors regarding the tax consequences of this Award.  You may not rely on the Company, its Affiliates, or any of their officers, directors or employees for tax or legal advice regarding this Award.  You acknowledge that you have sought tax and legal advice from your own advisors regarding this Award or have voluntarily and knowingly foregone such consultation.

		 

		8.    Adjustments for Corporate Transactions and Other Events.  

		 

		(a)    Stock Dividend, Stock Split and Reverse Stock Split.  Upon a stock dividend of, or stock split or reverse stock split affecting, the Common Stock, the number of outstanding Restricted Shares shall, without further action of the Administrator, be adjusted to reflect such event.  The Administrator shall make adjustments, in its discretion, to address the treatment of fractional Restricted Shares with respect to the Award as a result of the stock dividend, stock split or reverse stock split; provided that such adjustments do not result in the issuance of fractional Shares.  Adjustments under this Section 8 will be made by the Administrator, whose determination as to what adjustments, if any, will be made and the extent thereof will be final, binding and conclusive.

		 

		(b)    Non-Change in Control Transactions.  Upon any change affecting the Common Stock, the Company or its capitalization, by reason of a spin-off, split-up, dividend, recapitalization, merger, consolidation or share exchange, other than any such change that is part of a transaction resulting in a Change in Control, the Administrator shall make any adjustments with respect to the Award as the Administrator determines to be appropriate and equitable.  The Administrator’s determination as to what adjustments, if any, will be made and the extent thereof will be final, binding and conclusive.

		 

		(c)    Unusual or Nonrecurring Events.  The Administrator shall make, in its discretion, adjustments in the terms and conditions of, and the criteria included in, the Award in recognition of unusual or nonrecurring events affecting the Company, or the financial statements of the Company or any Affiliate, or of changes in applicable laws, regulations, or accounting principles, whenever the Administrator determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan.  The Administrator may make, in its discretion, adjustments in the terms and conditions of, and the criteria included in, the Performance Award in recognition of unusual, unanticipated or nonrecurring events affecting the Company, or the financial statements of the Company or any Affiliate, or of changes in applicable laws, regulations, or accounting principles, whenever the Administrator determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan.

		 

		(d)    Binding Nature of Agreement.  The terms and conditions of this Agreement shall apply with equal force to any additional and/or substitute securities received by you in exchange for, or by virtue of your ownership of, the Restricted Shares, to the same extent as the Restricted Shares with respect to which such additional and/or substitute securities are distributed, whether as a result of any spin-off, stock split-up, stock dividend, stock distribution, other reclassification of the Common Stock of the Company, or similar event, except as otherwise determined by the Administrator.  If the Restricted Shares are converted into or exchanged for, or stockholders of the Company receive by reason of any distribution in total or partial liquidation or pursuant to any merger of the Company or acquisition of its assets, securities of another entity, or other property (including cash), then the rights of the Company under this Agreement shall inure to the benefit of the Company’s successor, and this Agreement shall apply to the securities or other property (including cash) received upon such conversion, exchange or distribution in the same manner and to the same extent as the Restricted Shares.

		 

		9.    Non-Guarantee of Employment or Service Relationship.  Nothing in the Plan or this Agreement shall alter your at-will or other employment status or other service relationship with the Company (or an Affiliate), nor be construed as a contract of employment or service relationship between the Company (or an Affiliate) and you, or as a contractual right of you to continue in the employ of, or in a service relationship with, the Company (or an Affiliate) for any period of time, or as a limitation of the right of the Company (or an Affiliate) to discharge you at any time with or without cause or notice and whether or not such discharge results in the forfeiture of any Restricted Shares or all or any portion of the Performance Award or any other adverse effect on your interests under the Plan.

		 

		10.    The Company’s Rights.  The existence of this Award or the Restricted Shares shall not affect in any way the right or power of the Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in the Company’s capital structure or its business, or any merger or consolidation of the Company, or any issue of bonds, debentures, preferred or other stocks with preference ahead of or convertible into, or otherwise affecting the Common Stock or the rights thereof, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of the Company’s assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.

		 

		11.    Notices.  All notices and other communications made or given pursuant to this Agreement shall be in writing and shall be sufficiently made or given if hand delivered or mailed by certified mail, addressed to you at the address contained in the records of the Company, or addressed to the Administrator, care of the Company for the attention of its Corporate Secretary at its principal executive office or, if the receiving party consents in advance, transmitted and received via telecopy or via such other electronic transmission mechanism as may be available to the parties.

		 

		12.    Entire Agreement.  This Agreement contains the entire agreement between the parties with respect to the Restricted Shares and the Performance Award granted hereunder.  Any oral or written agreements, representations, warranties, written inducements, or other communications made prior to the execution of this Agreement with respect to the Restricted Shares or the Performance Award granted hereunder shall be void and ineffective for all purposes. In the event a court of competent jurisdiction deems any provision hereof to be unreasonable, void, or unenforceable, such provision(s) shall be deemed severed from the remainder of the Agreement, which shall continue in all other respects to be valid and enforceable.  It is the intent of the parties that any such provision(s) of this Agreement declared void, unreasonable, or unenforceable shall be deemed by a court of competent jurisdiction revised to the minimum amount necessary in order to be valid and enforceable.

		 

		13.    Amendment.  This Agreement may be amended from time to time by the Administrator in its discretion; provided, however, that  this Agreement may not be modified in a manner that would have a material adverse effect on your rights with respect to the Restricted Shares or the Performance Award as determined in the discretion of the Administrator, except as otherwise provided in (a) Section 8 of this Agreement, (b) the Plan or (c) a written document signed by each of the parties hereto.

		 

		14.    Conformity with Plan.  This Agreement is intended to conform in all respects with, and is subject to all applicable provisions of, the Plan.  Inconsistencies between this Agreement and the Plan shall be resolved in accordance with the terms of the Plan.  In the event of any ambiguity in this Agreement or any matters as to which this Agreement is silent, the Plan shall govern.  A copy of the Plan is provided to you with this Agreement.

		 

		15.    Governing Law.  The validity, construction and effect of this Agreement, and of any determinations or decisions made by the Administrator relating to this Agreement, and the rights of any and all persons having or claiming to have any interest under this Agreement, shall be determined exclusively in accordance with the laws of the State of Delaware, without regard to its provisions concerning the applicability of laws of other jurisdictions.  As a condition of this Agreement, you agree that you will not bring any action arising under, as a result of, pursuant to or relating to, this Agreement in any court other than a federal or state court in the districts which include Niles, Illinois, and you hereby agree and submit to the personal jurisdiction of any federal court located in the district which includes Niles, Illinois or any state court in the district which includes Niles, Illinois.  You further agree that you will not deny or attempt to defeat such personal jurisdiction or object to venue by motion or other request for leave from any such court.

		 

		16.    Resolution of Disputes.  Any dispute or disagreement which shall arise under, or as a result of, or pursuant to or relating to, this Agreement shall be determined by the Administrator in good faith in its absolute and uncontrolled discretion, and any such determination or any other determination by the Administrator under or pursuant to this Agreement and any interpretation by the Administrator of the terms of this Agreement, will be final, binding and conclusive on all persons affected thereby.  You agree that before you may bring any legal action arising under, as a result of, pursuant to or relating to, this Agreement you will first exhaust your administrative remedies before the Administrator.  You further agree that in the event that the Administrator does not resolve any dispute or disagreement arising under, as a result of, pursuant to or relating to, this Agreement to your satisfaction, no legal action may be commenced or maintained relating to this Agreement more than twenty-four (24) months after the Administrator’s decision.

		 

		17.    Headings.  The headings in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

		 

		18.    Counterparts.  This Agreement may be executed in multiple counterparts, each of which is deemed to be an original, but all of which taken together constitute one and the same Agreement and shall become effective when all counterparts have been executed by each of the parties hereto and delivered to the other.  Facsimile and other electronic transmissions (including in portable document format) of any originally executed document (including this Agreement) shall be deemed to be the same as a delivered, executed original.

		 

		19.    Electronic Delivery of Documents.  By your signing this Agreement, you (i) consent to the electronic delivery of this Agreement, all information with respect to the Plan and the Restricted Shares and any reports of the Company provided generally to the Company’s stockholders; (ii) acknowledge that you may receive from the Company a paper copy of any documents delivered electronically at no cost to you by contacting the Company by telephone or in writing; (iii) further acknowledge that you may revoke your consent to the electronic delivery of documents at any time by notifying the Company of such revoked consent by telephone, postal service or electronic mail; and (iv) further acknowledge that you understand that you are not required to consent to electronic delivery of documents.

		 

		20.    No Future Entitlement.  By your signing this Agreement, you acknowledge and agree that:  (i) the grant of the Restricted Shares and the Performance Award is a one-time benefit which does not create any contractual or other right to receive future grants of stock, or compensation in lieu of stock grants, even if stock grants have been granted repeatedly in the past; (ii) all determinations with respect to any such future grants, including, but not limited to, the times when stock grants shall be granted, the maximum number of Shares subject to each stock grant, and the times or conditions under which restrictions on such stock grants shall lapse, will be at the sole discretion of the Administrator; (iii) the value of this stock grant is an extraordinary item of compensation which is outside the scope of your employment contract, if any; (iv) the value of this stock grant is not part of normal or expected compensation or salary for any purpose, including, but not limited to, calculating any termination, severance, resignation, redundancy, end of service payments or similar payments, or bonuses, long-service awards, pension or retirement benefits; (v) the vesting of Restricted Shares ceases upon termination of employment with the Company or transfer of employment from the Company, or other cessation of eligibility for any reason, except as may otherwise be explicitly provided in this Agreement; (vi) the Company does not guarantee any future value of these Restricted Shares; and (vii) no claim or entitlement to compensation or damages arises if these Restricted Shares do not increase in value and you irrevocably release the Company from any such claim that does arise.

		 

		21.    Personal Data.  For purposes of the implementation, administration and management of this Award or the effectuation of any acquisition, equity or debt financing, joint venture, merger, reorganization, consolidation, recapitalization, business combination, liquidation, dissolution, share exchange, sale of stock, sale of material assets or other similar corporate transaction involving the Company (a “Corporate Transaction”), you consent, by execution of this Agreement, to the collection, receipt, use, retention and transfer, in electronic or other form, of your personal data by and among the Company and its third party vendors or any potential party to a potential Corporate Transaction.  You understand that personal data (including but not limited to, name, home address, telephone number, employee number, employment status, social security number, tax identification number, date of birth, nationality, job and payroll location, data for tax withholding purposes and Shares awarded, cancelled, vested and unvested) may be transferred to third parties assisting in the implementation, administration and management of the stock grant or the effectuation of a Corporate Transaction and you expressly authorize such transfer as well as the retention, use, and the subsequent transfer of the data by the recipient(s).  You understand that these recipients may be located in your country or elsewhere, and that the recipient’s country may have different data privacy laws and protections than your country.  You understand that data will be held only as long as is necessary to implement, administer and manage the stock grant or effect a Corporate Transaction.  You understand that you may, at any time, request a list with the names and addresses of any potential recipients of the personal data, view data, request additional information about the storage and processing of data, require any necessary amendments to data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing the Company’s Secretary.  You understand, however, that refusing or withdrawing your consent may affect your ability to accept a stock grant.

		 

		22.    Consideration for Shares.  To ensure compliance with applicable state corporate law, the Company may require you to furnish consideration in the form of cash or cash equivalents equal to the par value of the Shares issued to you hereunder, and you hereby authorize the Company to withhold such amount from remuneration otherwise due you from the Company.

		 

		23.    Recoupment. The Restricted Shares and the Performance Award are subject to recoupment in accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act and any implementing regulations thereunder, any clawback policy adopted by the Company and any compensation recovery policy or practice otherwise required by applicable law. 

		 

		GLOSSARY

		 

		(a)“    Administrator” means the Board of Directors of Perma-Pipe International Holdings, Inc. and/or the committee(s) or officer(s) appointed by the Board that have authority to administer the Plan.

		 

		(b)“    Affiliate” means any entity, whether now or hereafter existing, which controls, is controlled by, or is under common control with the Company (including but not limited to joint ventures, limited liability companies and partnerships).  For this purpose, “control” shall mean ownership of 25% or more of the total combined voting power or value of all classes of stock or interests of the entity, or the power to direct the management and policies of the entity, by contract or otherwise.

		 

		(c)“    Cause” means termination in whole or substantial part, for gross negligence or willful misconduct in the execution of your duties, for conviction of, or entry of a plea of guilty or nolo contendere to, any felony or any act of fraud, embezzlement, misappropriation, or a crime involving moral turpitude, or for commission of any act which causes or may reasonably be expected to cause substantial damage to the Company

		 

		(d)“    Company” means Perma-Pipe International Holdings, Inc.

		 

		(e)“    Securities Act” means the Securities Act of 1933, as amended.

		 

		(f)“    Service” means your employment or other service relationship with the Company and its Affiliates.  Your Service will be considered to have ceased with the Company and its Affiliates if, immediately after a sale, merger or other corporate transaction, the trade, business or entity with which you are employed or otherwise have a service relationship is not Perma-Pipe International Holdings, Inc. or its successor, or an Affiliate of Perma-Pipe International Holdings, Inc. or its successor.

		 

		(g)“    You”; “Your”; “Employee”, means the recipient of this Award as reflected in the first paragraph of this Agreement.  Whenever the word “Employee”, “you” or “your” is used in any provision of this Agreement under circumstances where the provision should logically be construed, as determined by the Administrator, to apply to the estate, personal representative, or beneficiary to whom the Restricted Shares or this Award may be transferred by will or by the laws of descent and distribution, the words “Employee”, “you” and “your” shall be deemed to include such person.

		 

		

 

 

		IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer.

			 	 	Perma-Pipe International Holdings, Inc.

				By:         

				Date:         

				

		The undersigned hereby acknowledges that he/she has carefully read this Agreement and agrees to be bound by all of the provisions set forth herein, including, without limitation, the replacement of the Prior 2020 Grant with this Award.  The undersigned also consents to electronic delivery of all notices or other information with respect to this Award or the Company.

			WITNESS:

					 	GRANTEE

				Date:         

				

		 

		

 

 

		 

		 

		Exhibit A

		 

		Standing Order Election

		 

		 

		By executing this Irrevocable Standing Order Election (this “Standing Order”), I wish to notify the Company of my election to satisfy any withholding taxes due in connection with each and every vesting date for the Restricted Shares by applying proceeds from a market sale of Company securities issuable as a result of such vesting date, except to the extent the Company satisfies such withholding taxes by withholding Company securities otherwise issuable as a result of such vesting date.  I understand that if I do not execute this Standing Order, then the Company will require that I pay my withholding obligations by cash or check, or the Company will deduct the amount of any withholding obligations from other payments due to me.

		 

		 

			IMPORTANT NOTES: 

				●         You may not enter into this Standing Order if you are in possession of material non-public information. If you are in possession of material non-public information, then you must wait to complete this Standing Order until such time as you no longer possess material non-public information. 

				●         No sales may be made pursuant to this Standing Order for 30 calendar days following its execution.  To ensure that you can satisfy your withholding obligations by selling Shares in the market, you should return this form to the Company as soon as possible, but in no event later than 30 days before the first vesting date of your Restricted Shares listed in the Agreement.

				

		 

		 

		By signing below, I understand that I am agreeing to the following provisions: 

		 

		 

		1.    I am executing this Standing Order to authorize the Company and any broker the Company designates (the “Broker”) to take the actions described in this Paragraph 1. I authorize the Company to transfer any Shares issued to me in connection with my award of Restricted Shares to the Broker to be held in an account for my benefit (the “Brokerage Account”), and I irrevocably authorize the Broker to sell, at the market price and on the date the Restricted Shares vest for tax purposes (or, if all or a portion of the sale cannot be completed on such date because of insufficient demand or a market disruption, then on the next following business day on which the sale can be made) the number of Shares necessary to obtain proceeds sufficient to satisfy the amount of any withholding obligations associated with my Restricted Shares indicated by the Company to the Broker. I understand and agree that the number of Shares that the Broker will sell will be based on the Company’s estimate (or Broker’s estimate if it provides such service) of the Shares required to satisfy the withholding obligations, using the closing price of a Share of the Company’s common stock on the trading day immediately prior to the vesting date (or such other date as any withholding obligations become due). I agree to execute and deliver such documents, instruments and certificates as may reasonably be required in connection with the sale of the Shares pursuant to this Standing Order.

		 

		 

		2.     I agree that the proceeds received from the sale of Shares pursuant to Paragraph 1 will be used to satisfy any withholding obligations associated with my Restricted Shares and, accordingly, I hereby authorize the Broker to pay such proceeds to the Company for such purpose. I understand that, to the extent that the proceeds obtained by such sale exceed the amount necessary to satisfy the withholding obligations, such excess proceeds shall be deposited into the Brokerage Account and, if a shortfall occurs, the Broker may sell additional Shares held in my Brokerage Account, the Company may deduct any remaining withholding obligations from any compensation or other payment of any kind due to me, or the Company may require that I pay any remaining withholding obligations to by cash or check. I further understand that any Shares that are not sold to satisfy withholding obligations will remain deposited in the Brokerage Account. 

		 

		 

		3.    I have reviewed with my own tax advisors the federal, state, local and foreign tax consequences of this grant and the actions contemplated by the Agreement and this Standing Order. I am relying solely on such advisors and not on any statements or representations of the Company or any of its agents. I understand that I (and not the Company) will be responsible for my own tax liability that may arise as a result of this Standing Order. 

		 

		 

		4.    I represent to the Company that, as of the date hereof, (i) I am not aware of any material nonpublic information about the Company or its Common Stock, (ii) the Company is not in a black out period (as defined in the Company’s Insider Trading Policy), (iii) sales will not be commenced within 30 calendar days of adoption of this Standing Order, (iv) I am not subject to any legal, regulatory or contractual restriction or undertaking that would prevent the sales of Shares contemplated by this Standing Order, and (v) I am entering into this Standing Order in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b5-1. The Company and I have structured this Agreement to comply with the affirmative defense to liability under Section 10(b) of the Securities Exchange Act of 1934, as amended, under Rule 10b5-1(c)(1) issued under such Act, and this Standing Order shall be interpreted to comply with such requirements. 

		 

		IN WITNESS WHEREOF, the parties hereto have executed this Standing Order as of the last date indicated below. 

		 

		 

			Date:         

					 	Perma-Pipe International Holdings, Inc.

				By:         

				

		 

			Date:         

					 	GRANTEEExhibit 10.1

 

 

GTY Technology Holdings Inc

 

April 15, 2021

 

David Farrell

 

	Re:	Amended and Restated Offer of Employment

 

Dear David:

 

On behalf of GTY Technology Holdings Inc. (together
with its successors, the “Company”), I am pleased to offer you the amended and restated terms and conditions of your employment
with the Company in the position of Chief Operating Officer of the Company and Chief Executive Officer of Sherpa Government Solutions
LLC (“Sherpa”), working out of Sherpa’s principal offices in Denver, Colorado.

 

The terms that will apply to your continuing employment
with the Company are as follows:

 

	1.	Position and Duties. Commencing on April 15, 2021 (the “Effective Date”), you will
be employed by the Company hereunder on a full-time basis as Chief Operating Officer of the Company and as the Chief Executive Officer
of Sherpa, reporting to the Chief Executive Officer of the Company (the “Company CEO”).

 

You agree to perform the duties and responsibilities
of your positions, and such other duties and responsibilities as shall from time to time be mutually agreed upon between you and the Company
CEO. You agree that, while employed by the Company, you will devote your full business time and your reasonable efforts, business judgment,
skill and knowledge exclusively to the advancement of the business and interests of the Company and its subsidiaries; provided,
however, you will be permitted to (i) engage in charitable and civic activities; (ii) manage your personal and family financial
matters; and (iii) participate in the business activities in which you currently are participating listed on Annex A attached to the Amended
and Restated Fair Competition Agreement between you and the Company dated as of the date hereof (the “Fair Competition Agreement”),
in each case, to the extent such activities do not individually or in the aggregate interfere with your duties and responsibilities to
the Company or create any actual or potential conflict of interests with the Company’s business.

 

	2.	Base Salary, Annual Bonus and Signing Bonus. During your continuing employment with the Company,
you will receive an initial base salary of $350,000, less applicable tax and other withholdings and deductions required by law, payable
in accordance with the Company’s payroll practices in effect from time to time. Your base salary will be subject to periodic review
by the Compensation Committee (the “Committee”) of the Company’s Board of Directors (the “Board”); provided,
that your base salary shall not be decreased without your prior, written consent.

 

     

     

    

 

For each calendar year of your continuing
employment, you will be eligible to receive an annual cash incentive bonus (the “Annual Bonus”). The target amount of the
Annual Bonus will be equal to 50% of your Base Salary. The Annual Bonus will be subject to pro-ration for any period of employment of
less than a full calendar year. The Annual Bonus will be subject to the achievement of performance goals established by the Committee.
The actual amount of the Annual Bonus, if any, which may be in excess of the target amount if achievement exceeds performance goals, will
be determined based on the discretion and recommendation of the Committee to the Board. You must be employed by the Company on the day
that the Annual Bonus (if any) for a calendar year is paid in order to earn and receive such Annual Bonus. Any earned Annual Bonus shall
be subject to standard payroll deductions and withholdings, and paid no later than March 15th of the year following the calendar year
to which the Annual Bonus relates.

 

The Company shall pay you a lump-sum
cash signing bonus of $1,917.18 within 60 days following the Effective Date.

 

	3.	Equity Compensation. You will, subject to the approval by the Administrator of the GTY Technology
Holdings Inc. Amended and Restated 2019 Omnibus Incentive Plan (or any other incentive plan adopted or approved by the Company) (the “Incentive
Plan”) and continuing employment with the Company, be granted the following equity awards pursuant to the terms and conditions of
an award agreement and the Incentive Plan (the “Equity Awards”):

 

		a.	Time-Based Restricted Stock Units.

 

		·	On April 30, 2021, 54,000 time-based restricted stock units, vesting 100% on January 1, 2022.

		·	On or before December 31, 2021, 30,000 time-based restricted stock units, vesting in three equal installments
on February 19, 2022, February 19, 2023 and February 19, 2024.

		·	On or before December 31, 2022, 30,000 time-based restricted stock units, vesting in three equal installments
on February 19, 2023, February 19, 2024 and February 19, 2025.

		·	On or before December 31, 2023 and the end of each subsequent year, time-based restricted stock units
with a fair market value (as defined in the Incentive Plan, “Fair Market Value”) of $150,000 on the date of grant, rounded
up to avoid a grant of fractional shares, vesting in three equal installments on February 19 of each subsequent year.

 

		b.	Performance-Based Restricted Stock Units.

 

		·	On or before December 31, 2021, 55,000 performance-based restricted stock units, vesting in three equal
installments on February 19 of each subsequent year subject to the achievement of performance goals established by the Committee.

 

    2 

     

    

 

		·	On or before December 31, 2022, 55,000 performance-based restricted stock units, vesting in three equal
installments on February 19 of each subsequent year subject to the achievement of performance goals established by the Committee.

		·	On or before December 31, 2023 and the end of each subsequent year, performance-based restricted stock
units with a Fair Market Value of $275,000 on the date of grant, rounded up to avoid a grant of fractional shares, vesting in three equal
installments on February 19 of each subsequent year subject to the achievement of performance goals established by the Committee.

 

		c.	Long-Term Incentive Plan.

 

		·	On or before December 31, 2022, a grant of performance-based restricted stock units with a Fair Market
Value of $1,000,000 on the date of grant, rounded up to avoid a grant of fractional shares, vesting in three equal installments on February
19 of each subsequent year subject to the achievement of performance goals established by the Committee related to revenue and shareholder
value.

		·	On or before December 31, 2024, a grant of performance-based restricted stock units with a Fair Market
Value of $1,000,000 on the date of grant, rounded up to avoid a grant of fractional shares, vesting in three equal installments on February
19 of each subsequent year subject to the achievement of performance goals established by the Committee related to revenue and shareholder
value.

 

	4.	Benefit Plans and Programs. You will be eligible to participate in the Company’s or Sherpa’s
benefits and benefits plans and programs in effect from time to time for similarly situated executives, subject to the terms of any and
all plan documents. The Company reserves the right, in its sole discretion, to amend, change or discontinue, in whole or in part, any
and all of its benefits and/or benefit plans and programs, at any time for any reason. The Company will reimburse you for all reasonable
business expenses you incur in the performance of your duties, subject to the terms of the Company’s expense reimbursement policies
in effect from time to time applicable to senior executives. You will be entitled to the benefits of GTY’s Flexible Paid Time Off
Policy and, in any event, no less than 20 days’ paid vacation in accordance with the Company’s policies.

 

	5.	At-Will Employment. Your employment with the Company shall, at all times, be on an “at-will”
basis. This means that your employment is not for a fixed term or definite period. Rather, your employment can be terminated at any time,
for any or no reason, with or without cause or notice, and you may resign at any time with or without reason, subject to any notice you
are required to provide pursuant to the terms of the Fair Competition Agreement between you and the Company. The at-will nature of the
employment relationship cannot be changed except in a separate, individualized, written agreement signed by you and the Company.

 

	6.	Termination. In the event your employment with the Company terminates for any reason, the Company
will pay you (i) unpaid base salary through the termination date, payable in accordance with the Company’s payroll practices, (ii)
unreimbursed business expenses, payable in accordance with and subject to the terms of the Company’s expense reimbursement policies
and (iii) any vested non-forfeitable amounts owing or accrued as of the termination date under the Company’s benefit plans or programs
in which you participated (collectively, the “Accrued Benefits”).

 

    3 

     

    

 

Without otherwise limiting the “at-will”
nature of your employment, in the event your employment is terminated at any time by the Company without “Cause” (as defined
below) or by you for “Good Reason” (as defined below), then the Company shall provide you the following payments and benefits
(the “Severance Benefits”): (1) an amount (the “Cash Severance”) equal to the sum of 1.5 times your then-current
annual base salary plus 1.5 times your then-current target Annual Bonus, payable in substantially equal installments over the 18-month
period following the date of your termination (the “Severance Period”); and (2) provided you timely elect and remain eligible
for coverage pursuant to Part 6 of Title I of ERISA, or similar state law (collectively, “COBRA”), payment or reimbursement
to you of an amount equal to the full monthly premium for COBRA continuation coverage under the Company’s medical plans as in effect
on the date of your termination with respect to the level of coverage in effect for you and your eligible dependents as of the date of
your termination, on a monthly basis on the first business day of the calendar month next following the calendar month in which the applicable
COBRA premiums were paid, with respect to the period from the date of your termination until the earlier of (x) 18 months following such
date and (y) the date you become eligible for continued coverage under a subsequent employer’s health plan; and (3) any unvested
or partially vested Equity Awards shall become fully vested; provided, that, notwithstanding the foregoing, the Equity Awards referenced
in Section 3.c. (Long Term-Incentive Plan) shall vest only if and to the extent that they would have vested within six months following
the date on which your employment is terminated by the Company without “Cause” or by you for “Good Reason”.

 

Notwithstanding anything herein to the
contrary, you will not be entitled to receive the Severance Benefits or any other payment or benefit triggered upon termination of employment
(other than the Accrued Benefits) unless, within 30 days following the termination date, you, or in the event of your death or Disability,
your legal representatives, have executed and not revoked a general release of claims in the standard form utilized by the Company for
similarly-situated employees (the “Release”). The Severance Benefits shall be paid or commence on the first payroll period
following the date the Release becomes effective and the vesting of the Equity Awards if and as provided in this Section 5 shall occur
on such date (the “Payment and Vesting Date”), provided that if the period during which you may deliver the Release
spans two calendar years, the Payment and Vesting Date shall be no earlier than January 1 of the second calendar year.

 

For purposes of this amended and restated
offer letter (this “offer letter”), “Cause” shall mean: (i) a willful act of dishonesty by you in connection with
the performance of your duties as an employee; (ii) your conviction of, indictment for, or plea of guilty or nolo contendere to, a felony
or any crime involving fraud, embezzlement or moral turpitude, or a material violation of federal or state law that the Board reasonably
determines has had or is reasonably likely to have a detrimental effect on the Company’s reputation or business; (iii) your gross
misconduct in the performance of your duties as an employee; (iv) your intentional or grossly negligent unauthorized use or disclosure
of any Confidential Information or Intellectual Property (each as defined in the Fair Competition Agreement); (v) your material breach
of any obligations under any written agreement between you and the Company, including, without limitation, the Fair Competition Agreement;
(vi) your breach of any material Company policy communicated to you, including but not limited to those relating to insider trading or
sexual harassment; or (vii) your willful refusal to follow the reasonable, lawful directives of the Board.

 

    4 

     

    

 

For purposes of this offer letter, “Good
Reason” shall mean (i) a material diminution in your base salary or target Annual Bonus opportunity; (ii) a material diminution
in your duties as Chief Operating Officer of the Company; (iii) a relocation of your principal work location to a facility or a location
more than 30 miles from your principal work location on the Effective Date or (iv) a requirement that you report to any officer of the
Company other than the Chief Executive Officer. A resignation for Good Reason will not be deemed to have occurred unless you give the
Company written notice of the condition within 90 days after the condition initially comes into existence, the Company fails to remedy
the condition within 30 days after receiving your written notice and you actually resign your employment within 60 days following the
expiration of the Company’s cure period.

 

	7.	Fair Competition Agreement. As a material inducement for the Company to agree to enter into an
employment relationship with you on the terms set forth herein, you agree to execute and comply with the Fair Competition Agreement attached
hereto as Exhibit A.

 

	8.	Company Policies and Procedures. Your employment will be subject to the Company’s standard
policies and procedures (whether as currently existing or to be established in the future), as they may be amended, changed or discontinued
at any time and such other rules and regulations as may be adopted or amended in the Company’s sole discretion.

 

	9.	Section 409A. The Severance Benefits and other payments under this offer letter triggered on a
termination of employment shall begin only after the date of your “separation from service” (determined as set forth below),
which occurs on or after date of the termination of your employment, and shall be subject to the provisions of this Section 9. The intent
of the parties is that payments and benefits under this offer letter comply with, or are exempt from, Section 409A of the Internal Revenue
Code of 1986, as amended (the “Code”), and the regulations and guidance promulgated thereunder (collectively, “Section
409A”) and, accordingly, to the maximum extent permitted, this offer letter shall be interpreted to be in compliance therewith.
For purposes of Section 409A, your right to receive any installment payments pursuant to this offer letter will be treated as a right
to receive a series of separate payments. Neither the Company nor you shall have the right to accelerate or defer the delivery of any
such payments except to the extent specifically permitted or required by Section 409A.

 

If, as of the date of your “separation
from service” from the Company, you are not a “specified employee” (within the meaning of Section 409A), then each installment
of the severance payments shall be made on the dates and terms set forth in this offer letter. If, as of the date of your “separation
from service” from the Company, you are a “specified employee” (within the meaning of Section 409A), then: (i) each
installment of the Severance Benefits that, in accordance with the dates and terms set forth in this offer letter, will in all circumstances,
regardless of when the “separation from service” occurs, be paid within the short-term deferral period (as defined in Section
409A) shall be treated as a “short-term deferral” within the meaning of Treasury Regulation Section 1.409A-l(b)(4) to the
maximum extent permissible under Section 409A and shall be paid on the dates and terms set forth in this offer letter; and (ii) each installment
of the Severance Benefits that is not described in clause (i) above and that would, absent this clause (ii), be paid within the six-month
period following your “separation from service” from the Company shall not be paid until the date that is six months and one
day after such “separation from service” (or, if earlier, your death), with any such installments that are required to be
delayed being accumulated during the six-month period and paid in a lump sum on the date that is six months and one day following your
 “separation from service” and any subsequent installments, if any, being paid in accordance with the dates and terms set forth
in this offer letter; provided, however, that the preceding provisions of this clause (ii) shall not apply to any installment
of the Severance Benefits if and to the maximum extent that that such installment is deemed to be paid under a separation pay plan that
does not provide for a deferral of compensation by reason of the application of Treasury Regulation 1.409A- l(b)(9)(iii) (relating to
separation pay upon an involuntary separation from service). Any installments that qualify for the exception under Treasury Regulation
Section 1.409A- l(b)(9)(iii) must be paid no later than the last day of your second taxable year following the taxable year in which the
 “separation from service” occurs.

 

    5 

     

    

 

The determination of whether and when
your “separation from service” from the Company has occurred shall be made in a manner consistent with, and based on the presumptions
set forth in, Treasury Regulation Section l.409A-1(h). Solely for purposes of this paragraph, “Company” shall include all
persons with whom the Company would be considered a single employer under Section 414(b) and 414(c) of the Code.

 

All reimbursements and in-kind benefits
provided under this offer letter shall be made or provided in accordance with the requirements of Section 409A to the extent that such
reimbursements or in-kind benefits are subject to Section 409A, including, where applicable, the requirements that (1) any reimbursement
is for expenses incurred during your lifetime (or during a shorter period of time specified in this offer letter), (2) the amount of expenses
eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year, (3)
the reimbursement of any eligible expense will be made on or before the last day of the calendar year following the year in which the
expense is incurred, and (4) the right to reimbursement is not subject to set off or liquidation or exchange for any other benefit.

 

Notwithstanding any other provision of
this offer letter, the Company makes no representation or warranty and shall have no liability to you or to any other person if any provisions
of this offer letter are determined to constitute deferred compensation subject to Section 409A but do not satisfy an exemption from,
or the conditions of, that section. If either you or the Company reasonably determines that any payment to you will violate Section 409A,
you and the Company agree to use reasonable best efforts to restructure the payment in a manner that is either exempt from or compliant
with Section 409A to the extent that the restructuring is consistent with the original economic intent of the parties. You and the Company
agree to execute any and all amendments to this offer letter (or any other applicable agreement) that are consistent with the original
economic intent of the parties and promote compliance with the distribution provisions of Section 409A in an effort to avoid or minimize,
to the extent allowable by law, the tax (and any interest or penalties thereon) associated with Section 409A. If it is determined that
a payment to you was (or may be) made in violation of Section 409A, the Company will cooperate, to the extent commercially reasonable,
with any effort by you to mitigate the tax consequences of such violation, including cooperation with your participation in any IRS voluntary
compliance program or other correction procedure under Section 409A that may be available to you; provided, that such correction
is consistent with the commercial intent of the parties hereunder; provided, further, that in no event shall the Company
be obligated to incur any material cost in connection with its obligations under this sentence.

 

    6 

     

    

 

	10.	Section 280G. Notwithstanding any other provision of this letter or any other plan, arrangement
or agreement to the contrary, if any of the payments or benefits provided or to be provided by the Company, Sherpa or any of their affiliates
to you or for your benefit pursuant to the terms of this letter or otherwise (“Covered Payments”) constitute “parachute
payments” within the meaning of Section 280G of the Code, and would, but for this paragraph be subject to the excise tax imposed
under Section 4999 of the Code (or any successor provision thereto) or any similar tax imposed by state or local law or any interest or
penalties with respect to such taxes (collectively, the “Excise Tax”), then the Covered Payments shall be reduced (but not
below zero) to the minimum extent necessary to ensure that no portion of the Covered Payments is subject to the Excise Tax. Any such reduction
shall be made by the Company in its sole discretion consistent with the requirements of Section 409A. Any determination required under
this paragraph, including whether any payments or benefits are parachute payments, shall be made by the Company in its sole discretion.
You shall provide the Company with such information and documents as the Company may reasonably request in order to make a determination
under this paragraph. The Company’s determinations shall be final and binding on the Company and you.

 

	11.	Notices. All notices or other communications required or permitted to be given under this offer
letter shall be in writing and shall be deemed to have been duly given when delivered personally or one business day after being sent
by a nationally recognized overnight delivery service, charges prepaid. Notices also may be given electronically via PDF and by email
and shall be effective on the date transmitted if confirmed within 48 hours thereafter by a signed original sent in the manner provided
in the preceding sentence. Notice to you shall be sent to your most recent residence and personal email address on file with the Company.
Notice to the Company shall be sent to its physical address set forth on the first page hereto and addressed to the Board or such other
person as the Company may designate at the email address provided by the Company for the Board or such person.

 

	12.	Entire Agreement; Miscellaneous. This offer letter, together with
the Incentive Plan, any equity award agreements referenced herein and the Fair Competition Agreement, constitutes the entire agreement
and understanding between the parties as to the subject matter herein and supersedes all prior or contemporaneous agreements whether
written or oral including, but not limited to, the original offer letter dated September 12, 2018.
In the event of any conflict between the terms of this offer letter and any of the foregoing documents, the terms of this offer letter
shall govern. The terms of this offer letter may only be modified in a specific writing signed by you and an authorized representative
of the Company. The invalidity or unenforceability of any provision or provisions of this offer letter will not affect the validity or
enforceability of any other provision hereof, which will remain in full force and effect. Any disputes arising out of or related to this
offer letter or your employment with the Company will be subject to the dispute resolution provisions in the Fair Competition Agreement,
and this offer letter shall be governed by and construed in accordance with the governing law provision set forth in the Fair Competition
Agreement. In the event of any conflict between any of the terms in this offer letter and the terms of any other agreement between you
and the Company, the terms of this offer letter will control. By entering into this offer letter and commencing employment with the Company,
you represent that you are not bound by any employment contract, restrictive covenant or other restriction that prevents you from entering
into employment with or carrying out your responsibilities for the Company, or which is in any way inconsistent with this offer letter.
This offer letter is binding on and may be enforced by the Company and its successors and assigns and is binding on and may be enforced
by you and your heirs and legal representatives. In addition, the Company may assign this offer letter or any and all rights, duties and
obligations hereunder to any subsidiary of the Company, including, without limitation, Sherpa; provided, that the Company hereby
unconditionally guarantees full payment of any payment obligations hereunder in the event of such assignment; provided, further,
that any payment made by any such assignee shall offset any payment obligation of the Company. This offer letter may be executed in any
number of counterparts, all of which taken together shall constitute one instrument. Execution and delivery of this offer letter by facsimile
or other electronic signature is legal, valid and binding for all purposes.

 

[Remainder of page intentionally left blank]

 

    7 

     

    

 

We are very excited about your continued employment
with the Company and I anticipate that you will make many more important contributions to the Company and its strategic mission. Please
acknowledge your acceptance of this amended and restated offer by returning a signed copy of this amended and restated offer letter.

 

	 	 	Very truly yours,
	 	 	 GTY Technology Holdings Inc. 
	 	 	 
	 	 	 
	 	 	By:	/s/ TJ Parass
	 	 	Name:	TJ Parass
	 	 	Title:	Chief Executive Officer
	 	 	 	 
	Accepted and agreed:	 	 	 
	    /s/ David Farrell	 	 	 
	David Farrell	 	 	 

 

    8 

     

    

 

 

 

Exhibit A

 

AMENDED
AND RESTATED FAIR COMPETITION AGREEMENT

 

In consideration of the continuation of your employment
with GTY Technology Holdings Inc. and/or any of its current or future parents, subsidiaries, affiliates, and/or successors (collectively,
the “Company”), and the compensation and other benefits you will receive from the Company (your “Employment”),
you agree, intending to be legally bound, as follows:

 

Acknowledgements and Representations

 

1.             Supplemental Terms. You acknowledge that you have received a separate amended and restated offer letter dated April 15,
2021 (the “Offer Letter”) that sets forth the relevant terms concerning your compensation arrangements with the Company. In
the event of any conflict between this Amended and Restated Fair Competition Agreement (this “Agreement”) and the Offer Letter,
the terms of the Offer Letter shall govern.

 

2.             Acceptance. You acknowledge that the Company considers the protections provided by this Agreement to be necessary to safeguard
its Customer Confidences, Confidential Information, Intellectual Property, Customer relationships (each as defined in this Agreement)
and other business interests and is willing to commence or continue your Employment only if you agree to accept the obligations set forth
herein.

 

3.             No Conflicting Obligations. You represent that you do not have any contractual or other obligations that would conflict
with your Employment by the Company. In particular, you represent that you are not bound by any agreement, understanding or other obligation
(including, without limitation, any non-competition or nonsolicitation agreement) with or to any person or entity that prohibits you from
accepting or continuing your Employment by the Company and fully performing all your duties for the Company, except as described on Annex
A attached hereto. By executing this Agreement, you hereby acknowledge and confirm that all business activities in which you are currently
participating and any boards on which you are serving are listed on Annex A attached hereto, which outside activities are subject to the
conditions imposed on such activities in the Offer Letter.

 

4.             Documents and Confidential Information Belonging to Former Employers and Other Third Parties. You also represent that you
have not taken or retained, and do not have in your possession, any documents, in either electronic or hard copy form, that belong to
any former employer (which, for purposes of this Agreement, shall include persons, corporations, and other entities for which you have
acted as an independent contractor or consultant) and that you will not use or disclose in your work for the Company any trade secrets
or confidential information belonging to any former employer or other third party.

 

    

     

    

 

At Will Employment and Notice Period

 

5.             At Will Nature of Employment. You acknowledge that neither the Offer Letter nor this Agreement gives you any right to employment
or continued employment with the Company and that, unless otherwise provided in another writing executed by an officer of the Company
and you, your Employment with the Company shall be at the will of both the Company and you. This means that you are free to resign at
any time (subject to providing written notice pursuant to any applicable Notice Period as set forth below), for any or no reason, and,
similarly, the Company is free to terminate your Employment at any time, for any or no reason. Your Employment will continue in effect,
however, until terminated by either the Company or you.

 

6.             Notice Period. (a) You understand and agree that you will have access to Customer Confidences, Confidential Information,
Intellectual Property and Customer relationships belonging to the Company. You recognize and agree that it is reasonable and necessary
for the Company to protect such Customer Confidences, Confidential Information, Intellectual Property, and Customer relationships and
to provide a smooth transition if you choose to leave the Company. Consequently, you agree to provide the Company with the following periods
of prior notice (the “Notice Period”), in writing, depending on your title at the time of your resignation, of your intent
to terminate your employment with the Company: President and Executive Vice Presidents – three (3) months; Senior Vice Presidents
 – two (2) months; and Vice Presidents and below – one (1) month. If the effective date of your resignation as specified in
such notice (the “Resignation Date”) is before the end of the period for which your bonus is determined (the “Bonus
Period”), you shall not be entitled to receive any annual or long-term incentive compensation award for that Bonus Period. Additionally,
vesting of deferred amounts not yet vested shall cease upon the Resignation Date.

 

(b)           If, at the time you provide notice in accordance with this paragraph 6, you intend or contemplate alternative employment, you also
agree to provide sufficient details, in writing, about such alternative employment to allow the Company to meaningfully exercise its rights
under this paragraph 6.

 

(c)           During the Notice Period, you will: (i) perform any reasonable duties and responsibilities the Company requests; (ii) devote all
of your working time, labor, skill and energies to the business and affairs of the Company; (iii) be paid your base salary; and (iv) be
entitled to continue to participate in the Company’s employee benefit plans as provided for herein. After you have given notice
of your resignation, the Company may, at any time during the Notice Period and in its sole and absolute discretion, (A) elect to place
you on paid leave for all or any part of such Notice Period, subject to applicable law, (B) relieve you of some or all of your duties
as an employee of the Company and/or exclude you from its premises or (C) shorten or eliminate the Notice Period and accelerate the date
on which your resignation will be effective without any obligation to compensate you for the period between the date that the Company
effected the acceleration of the effective date of your resignation and the date on which the Notice Period was originally due to end.
For the avoidance of doubt, you agree that the taking of any action described in the preceding sentence by the Company shall not constitute
a breach of this Agreement or your Offer Letter.

 

    2 

     

    

 

(d)           You further agree that during your employment, including during the Notice Period, whether or not the Company requires you to work
during the Notice Period, you will not provide services for any Competitor including, without limitation, engaging in, directly or indirectly,
or managing or supervising personnel engaged in, any activity (i) which is similar or substantially related to any activity in which you
were engaged, in whole or in part, at the Company; (ii) for which you had direct or indirect managerial or supervisory responsibility
at the Company; or (iii) which calls for the application of the same or similar specialized knowledge or skills as those used by you in
your activities with the Company. For purposes of this Agreement, a “Competitor” means a business enterprise that (A) engages
in any activity, (B) proposes to engage in any activity or (C) owns or controls a significant interest in or is a subsidiary or affiliate
of any entity, which, in either case, competes with or proposes to compete with any activity in which the Company is engaged, such as,
without limitation, developing and licensing software for federal, state and local governments and governmental agencies.

 

Duties

 

7.             Nature of Duties. You agree to devote your full working time and efforts to the business and affairs of the Company (which
may include service to its affiliates) on a full-time basis and will at all times faithfully, industriously and to the best of your ability,
experience and talent, perform all duties that may be required of you. Except to the extent expressly permitted in your Offer Letter,
during your Employment, you shall not engage in any other business activities without the prior written consent of the Company. In particular,
during your Employment, you agree not to work for or assist, whether or not for profit or personal gain, any Competitor or engage in any
business or activity that is similar to or competes directly or indirectly with the Company or is inimical to the best interests of the
Company or that would interfere with your ability to work for the Company on a full-time basis.

 

8.             Duty to Disclose Business Opportunities. During your Employment, you shall (a) promptly disclose to the Company all business
opportunities that are presented to you in your capacity as an officer or employee of the Company or that are of a similar nature to the
Company’s existing business or a type of business the Company is currently developing or considering and (b) not usurp or take advantage
of any such business opportunity personally or assist any third party in doing so without first offering such opportunity to the Company.

 

9.             Compliance with Company’s Policies and Practices. During your Employment, you agree to observe and comply with all
rules, regulations, policies and practices in effect or adopted by the Company at this time or in the future.

 

Confidentiality, Non-Disclosure and Intellectual Property

 

10.           Customer Confidences. As used in this Agreement, “Customer” means any person, corporation or other entity (a)
for which the Company has performed any services or to which it has sold any products, (b) with which it has engaged in any business activity
or (c) from which the Company has actively solicited business or discussed other business arrangements in the year preceding the termination
of your Employment. The Company’s Customers expect that the Company will hold all business-related information about them, including
the fact that they are doing or are considering doing business with the Company and the specific matters on which they are or may be doing
business, in the strictest confidence (“Customer Confidences”). You acknowledge that, during the course of your Employment,
you will have access to such Customer Confidences. You also acknowledge and agree that all relationships with Customers that you initiate
or develop during your Employment with the Company belong to the Company, not to you personally.

 

    3 

     

    

 

11.           Confidential Information. You acknowledge that, during the course of your Employment, you will have access to information
relating to the Company’s business that provides the Company with a competitive advantage, is not generally known by persons outside
the Company and could not easily be determined or learned by someone outside the Company (“Confidential Information”). Such
Confidential Information, whether or not explicitly designated as confidential, includes both written information and information not
reduced to writing and includes but is not limited to information about Customers, trade secrets, internal corporate policies and strategies,
pricing, financial and sales information, personnel information, forecasts, formulas, compilations, software programs, data, databases,
directories, research, client lists and business and marketing plans, and any modifications or enhancements of any of the foregoing. You
further agree that if you previously rendered services to the Company (e.g., as an independent contractor or consultant) or otherwise
gained knowledge of Customer Confidences and/or Confidential Information (e.g., by executing a Non- Disclosure Agreement prior to your
rendering services to the Company in any capacity), your obligations under any such agreement between you and the Company to preserve
Customer Confidences and/or Confidential Information shall remain in full force and effect pursuant to the applicable terms contained
therein.

 

12.           Duty to Preserve Customer Confidences and Confidential Information. You agree not to use or disclose, without the prior
written consent of the Company, both during and after your Employment with the Company, Customer Confidences and Confidential Information,
except as may be necessary in the good faith performance of your duties to the Company or as permitted by paragraphs 24 and 25 hereof.

 

13.           Company Documents. You acknowledge that all documents, in hard copy or electronic form, received, created or used by you
in connection with your Employment with the Company, other than those relating solely to your personal compensation and benefits, are
and will remain the property of the Company. You agree to return and/or cooperate in permanently deleting all such documents (including
all copies) promptly upon the termination of your Employment and agree that, during or after your Employment, you will not, under any
circumstances, without the written consent of the Company, disclose those documents to anyone outside the Company or use those documents
for any purpose other than the advancement of the Company’s interests, or as permitted by paragraphs 24 and 25 hereof. You further
understand and agree that you are prohibited from searching for, accessing, viewing, printing, transferring and/or using documents, e-mails,
and any other data stored on any of the Company’s computer systems in the absence of a legitimate business need or Company objective,
and any such actions or use will be considered unauthorized.

 

    4 

     

    

 

14.           Obligation to Return Signed Termination Certificate Upon Termination. Upon termination of your Employment, you will be asked
to participate in an exit interview and to sign and deliver a “Termination Certificate,” the form of which is attached hereto
as Annex B. If you do not attend an exit interview, you are still obligated to sign and deliver the Termination Certificate. Your failure
to sign the Termination Certificate, however, shall not affect any of your obligations under this Agreement.

 

15.           Intellectual Property. (a) You agree to fully and promptly disclose to the Company, without additional compensation, all
ideas, original or creative works, inventions, discoveries, computer software or programs, trading strategies, statistical and economic
models, improvements, designs, formulae, processes, production methods and technological innovations, whether or not patentable or copyrightable,
which, during your Employment with the Company, are made, conceived or created by you, alone or with others, during or after usual working
hours, either on or off the job, and which are related to the business of the Company or which relate in any way to the work performed
by you for the Company (“Intellectual Property”). You acknowledge that the Company owns all such Intellectual Property rights
as works made for hire to the fullest extent of the law. For the avoidance of doubt, you hereby assign to the Company all such Intellectual
Property rights in any and all media now known or hereafter developed, along with all existing causes of action, known or unknown.

 

(b)           You agree, at any time during or after your Employment, to sign all papers and do such other acts and things, at the Company’s
expense, as the Company deems necessary or desirable and may reasonably require of you to protect the Company’s rights to such Intellectual
Property, including applying for, obtaining and enforcing patents or copyrights with respect to such Intellectual Property in any and
all domestic and overseas jurisdictions.

 

Restrictive Covenants

 

16.           Nature of Company’s Business. You acknowledge that the Company is engaged in a highly competitive business and that
the preservation of its Customer Confidences and Confidential Information is critical to the Company’s continued business success.
You also acknowledge that the Company’s relationships with its Customers are extremely valuable and that, by virtue of your Employment
with the Company, you have had or may have contact with those Customers and that, if so, you must always act in the best professional
manner and are being compensated to develop relationships with Customers on behalf of and for the benefit of the Company. As a result,
your engaging in or working for or with any business which is directly or indirectly competitive with the Company would cause the Company
great and irreparable harm if not done in strict compliance with this Agreement.

 

17.           Covenant Not to Compete. You acknowledge that the Company is in a highly competitive industry and that your leaving the
Company to join a competing business would jeopardize the Company’s Customer Confidences, Confidential Information, Intellectual
Property and Customer relationships. Accordingly, you agree that:

 

(a)           Subject to the provisions below, during your Employment with the Company, and for the applicable Non-Compete Period (as defined
below), and in consideration for the payments provided for below (excluding, for the avoidance of doubt, any payment in the event your
Employment is terminated for Cause (as defined below)), you will not directly or indirectly work for or with, own, invest in, render any
service or advice to or otherwise assist (in each case, whether or not for compensation) or act as an officer, director, employee, partner
or independent contractor for any Competitor in the United States or any foreign country. You acknowledge that, given the nature of the
Company’s business and the geographical market of the Company combined with your role and responsibilities, the geographical area
of the United States or any foreign country and the Non-Compete Period are both reasonable.

 

    5 

     

    

 

(b)           To the extent that, at the time of the termination of your Employment, you intend to work for or provide services to a Competitor
or any arguably competing business, you agree to provide the Company at the time of such termination with at least two weeks’ advance
written notice of your intention to do so. You also agree that, should you consider working for any Competitor or arguably competing business
at any time during the applicable Non-Compete Period, you will provide the Company with at least two weeks’ advance written notice
of your intention to do so. The notices contemplated by this paragraph shall be delivered by you in writing to the attention of the Company’s
General Counsel.

 

(c)           If your Employment with the Company is terminated due to your voluntary resignation with the Company following which you are not
entitled to receive severance benefits pursuant to the terms of your Offer Letter (i.e., a resignation by you) (a “Non-Severance
Resignation”), the Company agrees that the covenant not to compete set forth in paragraph 17(a) shall apply only during the period
or periods of the applicable Non-Compete Period that the Company, in its sole discretion, elects to pay you (in accordance with the Company’s
normal payroll practices) an amount equal to your regular base salary in effect on the effective date of your voluntary resignation from
the Company (the “Non- Compete Payments”). In the event the Company elects to make the Non-Compete Payments, you will be required
to execute and not revoke a general release of claims in a standard form utilized by the Company as a condition to your receipt of the
Non-Compete Payments. The release must become effective within thirty (30) days following the date the Company notifies you of its intent
to enforce the provisions of paragraph 17(a). The Company will determine the timing and duration of the Non- Compete Payments, although
in no event will the duration of such payments extend beyond the end of the applicable Non-Compete Period. The Company shall have the
right at any time during the Non- Compete Period to invoke its right to make the Non-Compete Payments. For example, if at the time of
your termination of Employment, you notify the Company of your intent to go to a non-competing entity, the Company may elect not to make
Non-Compete Payments. If, however, you decide later in the Non-Compete Period to go to a Competitor, you must notify the Company in accordance
with paragraph 17(b) above, and the Company shall then have the right to elect to make the Non-Compete Payments for a period lasting no
longer than the remainder of the Non-Compete Period. In any instance where the Company has the right to elect to make the Non-Compete
Payments, it must do so within fifteen (15) business days of the Company’s receipt of your written notice of your intent to resign
or your intent to go to a competing entity, as the case may be. If during any period(s) the Company is making Non-Compete Payments, you
perform services for and receive compensation from a non- competing entity, you shall notify the Company of such compensation, and the
Company shall be entitled to offset such amounts against the Non-Compete Payments.

 

    6 

     

    

 

(d)           If your Employment is terminated by the Company for Cause, the terms of paragraph 17(a) will apply for the duration of the applicable
Non-Compete Period and you shall not be entitled to any Non-Compete Payments. For purposes of this Agreement, “Cause” means
(i) in the case where your Offer Letter defines “Cause” (or words of like import), “Cause” as defined under your
Offer Letter and (ii) if “Cause” (or words of like import) is not defined in your Offer Letter, “Cause” means
(A) your violation of any written policies or procedures of the Company (including, without limitation, policies related to sexual harassment),
(B) your indictment, conviction of, or plea of guilty or nolo contendere to, a felony or a crime involving moral turpitude, (C) your willful
or grossly negligent breach of your duties, (D) any act of fraud, embezzlement or other similar dishonest conduct, (E) any act or omission
that the Company determines could have a material adverse effect on the Company, including without limitation, its reputation, business
interests or financial condition, (F) your failure to follow the lawful and reasonable directives of the Chief Executive Officer or other
employee of the Company to whom you report, or (G) your breach of any written agreement between you and the Company or any of its affiliates.

 

(e)           For purposes of this Agreement, the Non-Compete Period means: (i) if your employment is terminated by the Company without Cause
or you resign for Good Reason, the period of time during which you are entitled to receive severance payments from the Company as set
forth in your Offer Letter; (ii) if your employment is terminated by the Company for Cause, six (6) months from the effective date of
your termination; and (iii) in the event of a Non-Severance Resignation, not more than six (6) months from the effective date of such
resignation.

 

18.           Non-Solicitation of Customers. You acknowledge that, by virtue of your Employment by the Company, you have gained or will
gain knowledge of the identity, characteristics and preferences of the Company’s Customers, among other Customer Confidences and
Confidential Information, and that you would inevitably have to draw on such information if you were to solicit or service the Company’s
Customers on behalf of a Competitor. Accordingly, you agree that during your Employment by the Company (including during any applicable
Notice Period), and for twelve (12) months following the termination of that Employment for any reason, (the “Restricted Period”),
you will not, on your own behalf or behalf of anyone else, directly or indirectly, solicit the business of, or direct tailored advertisements
to, actual or prospective Customers of the Company (a) as to which you performed services or had direct contact, or (b) as to which you
had access to Customer Confidences or Confidential Information during the course of your Employment by the Company. You further agree
that during the Restricted Period, you will not provide services that are the same as or similar to those provided by the Company or encourage
or assist any person or entity in competition with the Company to solicit, service, or direct tailored advertisements to any actual or
prospective Customer of the Company covered by the previous sentence of this section, or otherwise seek to encourage or induce any such
Customer to cease doing business with, or reduce the extent of its business dealings with, the Company. The prohibitions contained in
this section shall not, however, apply to any Customers you developed without any substantial assistance from the Company, provided you
so demonstrate in writing during your Employment with the Company.

 

    7 

     

    

 

19.           Non-Solicitation of Employees. You also agree that, during the Restricted Period, you will not, directly or indirectly,
solicit, hire or seek to hire (whether on your own behalf or on behalf of some other person or entity) any person who is at that time
(or was during the prior six (6) months) an employee, consultant, independent contractor, representative or other agent of the Company.
Nor will you during the Restricted Period, directly or indirectly, on your own behalf or on behalf of any other person, entity or organization,
induce or encourage any employee, consultant, independent contractor, representative or other agent of the Company to terminate or reduce
his or her employment or other business relationship or affiliation with the Company. Nor will you directly or indirectly assist any third
party in doing what you yourself are prohibited from doing under this paragraph.

 

20.           Non-Disparagement. Except as otherwise permitted by this Agreement or applicable law, you agree that during your Employment
with the Company and at all times thereafter you will not make disparaging or defamatory comments regarding the Company or its owners,
members, directors, officers, employees, shareholders, agents, representatives or others with whom the Company has a business relationship
as of the date of termination of your Employment or make any public statements that are intended to, or can reasonably expected to, damage
the reputations of any of such entities or persons.

 

21.           Tolling. In the event that you violate any of the preceding provisions of the Restrictive Covenants sections of this Agreement,
the time periods set forth in those sections shall be extended for the period of time you remain in violation of the provisions.

 

Arbitration

 

22.           (a) It is understood and agreed between the parties hereto that any and all claims, grievances, demands, controversies, causes
of action or disputes of any nature whatsoever (including, but not limited to, tort and contract claims, and claims based upon any law,
statute, order, or regulation) arising out of, in connection with, or in relation to (i) the interpretation, performance or breach of
this Agreement, (ii) Employee’s employment by the Company, (iii) the termination of Employee’s employment with the Company,
and (iv) the arbitrability of any claims under or relating to this Agreement, shall be resolved by final and binding arbitration. This
agreement to arbitrate expressly includes, but is not limited to, claims under Title VII of the Civil Rights Act of 1964, as amended,
the Age Discrimination in Employment Act of 1967, as amended, the Americans with Disabilities Act of 1990, as amended, Section 1981 of
the Civil Rights Act of 1866, the Family and Medical Leave Act, as amended, the Employee Retirement Income Security Act, as amended, the
Fair Labor Standards Act, as amended, and any similar federal, state, local or municipal law, statute or regulation.

 

(b)           The forum for any arbitration under this Agreement shall be final and binding arbitration before under the auspices of JAMS in
New York, NY.

 

(c)           The arbitration shall be conducted in accordance with the then-existing JAMS Employment Rules and Procedures, except to the extent
such rules conflict with the procedures set forth in this paragraph, in which case these procedures shall govern. Any such arbitration
shall be before one arbitrator. The parties shall select a mutually acceptable retired judge from the panel of arbitrators serving with
any of JAMS’s offices, but in the event the parties cannot agree on an arbitrator, the Administrator of JAMS shall appoint a retired
judge from such panels (the arbitrator so selected or appointed, the “Arbitrator”). The Arbitrator shall render an award and
a written, reasoned opinion in support thereof. The Arbitrator shall have power and authority to award any appropriate remedy (in law
or equity) or judgment that could be awarded by a court of law in Colorado, and, upon good cause shown, the Arbitrator shall afford the
parties adequate discovery, including deposition discovery.

 

    8 

     

    

 

(d)           The dispute resolution process shall be strictly confidential. Neither party shall disclose the existence, content, or results
of any arbitration hereunder without the prior written consent of all parties, except as required by applicable law. Except as provided
herein, the Federal Arbitration Act shall govern the interpretation, enforcement and all proceedings pursuant to this Agreement. The Arbitrator
and/or arbitration panel shall be bound by and shall strictly enforce the terms of this paragraph 22 and may not limit, expand or otherwise
modify its terms. The Arbitrator and/or arbitration panel shall make a good faith effort to apply the substantive law (and the law of
remedies, if applicable) of the State of Colorado, or federal law, or both, as applicable, without reference to conflicts of laws provisions.
The Arbitrator and/or arbitration panel shall be bound to honor claims of privilege or work- product doctrine recognized at law, but the
Arbitrator and/or arbitration panel shall have the discretion to determine whether any such claim of privilege or work-product doctrine
applies. The award rendered shall be final and binding upon the parties, and judgment upon the award may be entered in any court having
jurisdiction thereof.

 

(e)           Claims must be brought by either you or the Company in your or its individual capacity, not as plaintiffs or class members in any
purported class or collective proceeding, and the arbitrator shall not have the power to hear the arbitration as a class or collective
action. To the maximum extent permitted by law, both you and the Company waive the right to bring, maintain, participate in, or receive
money from any class, collective or representative proceeding. The parties intend this arbitration provision to be valid, enforceable,
irrevocable and construed as broadly as possible.

 

(f)            Each party shall bear its own fees and expenses with respect to this dispute resolution process and any litigation related thereto
and the parties shall share equally all fees and expenses, in accordance with the JAMS Employment Rules and Procedures, unless prohibited
by applicable law.

 

Other Terms

 

23.           In the twelve (12) months following the termination of your Employment with the Company, in the event you seek or obtain employment
or another business affiliation with any person or entity other than the Company, you agree to provide that person or entity with a copy
of this Agreement. You also agree to notify the Company in writing, as far in advance as is reasonably practicable, of the details of
such employment or business affiliation. You also agree that the Company may provide a copy of this Agreement to any such person or entity.

 

24.           Nothing in this Agreement restricts or prohibits you from initiating communications directly with, responding to any inquiries
from, providing testimony before, providing confidential information to, reporting possible violations of law or regulation to, or from
filing a claim or assisting with an investigation directly with a self-regulatory authority or a government agency or entity, including
without limitation, the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority, (collectively, the “Regulators”),
or from making other disclosures that are protected under the whistleblower provisions of federal, state, or local law or regulation.
You do not need the prior authorization of the Company to engage in conduct protected by this paragraph, and you do need to notify the
Company that you have engaged in such conduct. This Agreement does not limit your right to receive an award from any Regulator that provides
awards for providing information relating to a potential violation of the law.

 

    9 

     

    

 

25.           Pursuant to the Defend Trade Secrets Act of 2016, non-compliance with the confidentiality provisions of this Agreement shall not
subject you to criminal or civil liability under any Federal or State trade secret law for the disclosure of a Company trade secret: (i)
in confidence to a Federal, State or local government official, either directly or indirectly, or to an attorney in confidence solely
for the purpose of reporting or investigating a suspected violation of law; (ii) in a complaint or other document filed in a lawsuit or
other proceeding, provided that any complaint or document containing the trade secret is filed under seal; or (iii) to an attorney representing
you in a lawsuit for retaliation by the Company for reporting a suspected violation of law or to use the trade secret information in that
court proceeding, provided that any document containing the trade secret is filed under seal and you do not disclose the trade secret,
except pursuant to court order.

 

26.           You acknowledge that the restrictions contained in this Agreement are fair, reasonable and necessary for the protection of the
legitimate business interests of the Company, and that, in the event of any actual or threatened breach by you, the Company will suffer
serious, irreparable and substantial harm to its business and interests, the extent of which may be difficult to determine and impossible
to fully remedy by an action at law for momentary damages. You therefore consent to the entry of a restraining order, preliminary injunction
or other preliminary, provisional or permanent court order to enforce this Agreement and expressly waive any security that might otherwise
be required in connection with such relief, and you further agree that the dispute resolution process set forth in paragraph 22 of this
Agreement in no law limits the Company’s right to obtain any preliminary, provision or permanent relief as may be necessary to protect
the Company’s rights and interests. You also agree that any request for such relief by the Company shall be in addition and without
prejudice to any claim for monetary damages which the Company might elect to assert. In the event you violate any provision of this Agreement,
the Company shall be entitled to recover all costs and expenses of enforcement, including reasonable attorneys’ fees.

 

27.           You agree defend, indemnify and hold the Company harmless from and against any and all losses, claims, causes of action, liabilities,
damages, costs and expenses (including attorney’s fees) suffered or incurred by the Company as a result of any violation or threatened
violation of any of your representations, warranties, covenants or undertakings set forth in this Agreement. In the event of litigation
arising from or related to the terms of this Agreement, the prevailing party shall be entitled to recover its reasonable attorneys’
fees and other expenses.

 

    10 

     

    

 

28.           If any provision of this Agreement is held to be unenforceable by a court or other decision-maker, the remaining provisions shall
be enforced to the maximum extent possible. If a court or other decision-maker should determine that any portion of this Agreement is
overbroad or unreasonable, such provision shall be given effect to the maximum extent possible by narrowing or enforcing in part that
aspect of the provision found overbroad or unreasonable.

 

29.           This Agreement represents the entire agreement of the parties with respect to the subject matter covered, supersedes any and all
prior written or oral agreements including, but not limited to, the Fair Competition Agreement dated September 18, 2018, and cannot be
modified except in a writing signed by both parties. The waiver by any party to this Agreement of a breach of any of the provisions of
this Agreement shall not operate or be construed as a waiver of any subsequent or simultaneous breach.

 

30.           This Agreement shall be binding upon and shall inure to the benefit of the Company and its successors and assigns. Neither a formal
assignment nor notice to you shall be required. This Agreement shall be binding upon you and your heirs, executors, administrators and
legal representatives. However, your duties and obligations hereunder are personal and shall not be assignable or delegable by you in
any manner whatsoever.

 

31.           This Agreement shall be construed in accordance with the laws of the State of Colorado, without regard to the state’s principles
of conflict of laws.

 

32.           Any notice required or permitted to be given under this Agreement shall be in writing and sent by both email and certified mail,
return receipt requested. If the notice is from you to the Company, it shall be sent to the General Counsel of the Company. If sent by
the Company to you, such notice shall be sent to your last known email and home addresses.

 

33.           This Agreement may be executed by fax or email and/or in multiple counterparts, each of which shall be deemed an original.

 

34.           The parties waive the right to a jury trial to the maximum extent permitted by law.

 

35.           You acknowledge that you understand the terms and conditions set forth in this Agreement and have had adequate time to consider
whether to agree to them and to consult a lawyer or other advisor of your choice if you wish to do so.

 

(Signature page follows)

 

    11 

     

    

 

IN WITNESS WHEREOF, the parties
have executed this Agreement as of this 15th day of April, 2021.

 

	 	THE COMPANY
	 	
	 	By:	/s/ TJ Parass
	 	 
	 	Printed Name:	TJ Parass
	 	 
	 	Title:	Chief Financial Officer
	 	 	 	 

 

	 	EMPLOYEE
	 	     
	 	By:	/s/ David Farrell
	 	 
	 	Printed Name:	David Farrell
	 	 	 	 

    12 

     

    

 

ANNEX A

 

Description of Current Outside Business Activities
or Board Service

 

Chrysalis
Public Services LLC – this is a company that receives income from rental properties and Elevate Interval Fitness LLC
investment / management activities. My duties include filing monthly sales tax reports, which is approximately 15 minutes per month.

 

Elevate
Interval Fitness LLC – I serve as a passive investor in 2 fitness facilities located in Washington DC/northern Virginia.
I do not have formal duties for this company but receive income on the investment.

 

Infineum
Properties, LLC – I serve as a passive investor in real estate related activities.

 

    

     

    

 

ANNEX B

 

TERMINATION CERTIFICATE

 

The undersigned hereby certifies as follows:

 

1.             When I signed the Amended and Restated Fair Competition Agreement dated as of April 15, 2021 (the “Agreement”), I read
and understood the terms contained therein. I have now reviewed the Agreement again as part of my exit interview, and I fully understand
the terms thereof and my continuing obligations thereunder, including my obligations (a) not to use for personal benefit or disclose to
others any Confidential Information (as defined in the Agreement), and (b) to assign to the Company all rights (if any) that I may have
acquired in any Intellectual Property (as defined in the Agreement).

 

2.             I have fully complied with the terms of the Agreement, including the return of any documents and other tangible materials of any
nature pertaining to my employment by GTY Technology Holdings Inc. (the “Company”).

 

3.             I recognize that the unauthorized taking of any Confidential Information or Intellectual Property is a crime, and that any unauthorized
taking of Confidential Information or Intellectual Property may also result in civil liability.

 

4.             The Company may notify my new employer of (a) the general nature or subject matter of the Confidential Information (without actually
disclosing such Confidential Information) to which I had access while employed by the Company, and (b) my continuing obligations under
the Agreement to keep such Confidential Information in confidence, and not to disclose or use such Confidential Information without the
Company’s prior written consent.

 

5.             Attached hereto is a complete list of all Intellectual Property which, under the terms of the Agreement, I have assigned to the
Company. If no such list is attached, I represent that during my employment I did not make, conceive, reduce to practice or develop, either
alone or jointly with others, any Intellectual Property.

 

6.             I understand and acknowledge that should I fail to comply with my obligations under the Agreement, the Company shall have, in addition
to a claim for damages, the right to obtain an injunction prohibiting me from disclosing Confidential Information to a third party or
using any Intellectual Property.

 

	Employee Signature:	 	 	Witnessed by:	 
	 	 	 	 	 
	Print Name:	David Farrell	 	Print Name: 	 
	 	 	 	 	 
	Date:	 	 	Date:

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