Document:

Exhibit 10.1

 

ASSET PURCHASE AGREEMENT

 

THIS ASSET
PURCHASE AGREEMENT (this “Agreement”) is dated as of November 24, 2021 (the “Effective Date”
and the “Closing Date”), by and between The OLB Group, Inc., a Delaware corporation, (the “Purchaser”)
and FFS Data Corporation, a Texas corporation (“Seller”). Exhibit A of this Agreement contains defined terms.

 

RECITIALS

 

The Seller
is engaged in the business of financial transaction processing services for the CBD merchant industry along with other merchants, with
a principal place of business at Abilene, Taylor County, Texas (“Merchant Processing” and when referring to Merchant
Processing as conducted by Seller the “Business”). The Seller and the Purchaser have entered into this Agreement to
set forth the terms and conditions upon which the Purchaser will purchase from the Seller, and the Seller will sell to the Purchaser,
certain specific assets identified in this Agreement.

 

NOW, THEREFORE,
in consideration of the foregoing premises and other good and valuable consideration, the receipt, adequacy, and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE ONE

 

PURCHASE AND SALE OF ASSETS
AND LIABILITIES

 

1.1. On the
terms and subject to the conditions set forth in this Agreement, and in reliance upon the representations, warranties, and covenants set
forth herein, the Seller will sell, assign, transfer, convey, and deliver the Purchased Assets to the Purchaser, and the Purchaser will
purchase, acquire, and accept the Purchased Assets from the Seller, free and clear of any Liens. The “Purchased Assets”
consist of all of the Seller’s rights, title and interests in and to the specific assets, properties and rights described in the
following paragraphs:

 

(a)
All of Seller’s CBD Merchant Portfolio Accounts described and specifically set forth on Schedule 1.1 (a) attached hereto and incorporated
herein for all purposes (collectively, the “Purchased Assets”).

 

(b)
All contact information for the Seller’s existing customers or merchants listed on Schedule 1.1 whereby Purchaser will be
able to contact the Customer via mail, telephone, email, and facsimile, as set forth on Schedule 1.1(a).

 

(c)
Specified Intellectual Property relating to or associated with any of the Purchased Assets including software codes, as set forth
on Schedule 1.1(c).

 

(d)
All Merchant net revenue, residuals, rebates, or credits relating to the Purchased Assets accruing from October 1, 2021.

 

(e)
All proprietary and confidential data, information and materials in relation to the Purchased Assets including, but not limited to,
the Portfolio Residual and Assigned Agreements, including, but not limited to Merchant lists related to the Portfolio Residual,
Merchant and Referral Partner pricing information, books and records, financial information and all documentation related thereto
(“Proprietary Information”). Any supplemental information required or desired by Purchaser shall be provided by
Seller to Purchaser upon request.

 

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(f) 
The Assigned Agreements as of the Closing Date and all proceeds therefrom, including but not limited to all of Seller’s right,
title and interest in those contracts, licenses, purchase orders, contractual rights, and other agreements, as identified in Schedule
1.1(f) (identifying each third party for each Assigned Agreement) as well as all agreements and/or contracts subsequently identified which
are in any way connected with or related to the Portfolio Residual and/or the revenues, profits, and proceeds therefrom. (Purchaser shall
have the right, but not the obligation to accept assignment over all Seller’s Assigned Agreements, at Purchaser’s sole discretion);

 

(g)
All itemized Accounts Receivables owed to Seller in relation to the Purchased Assets as of the date of Closing and all proceeds
owed therefrom as identified in Schedule 1.1(g). Purchaser acknowledges that Seller is a going concern with other accounts receivable
unrelated to the Purchased Assets, which Seller is not transferring to Purchaser under this Agreement

 

(f) All rights
and interests that Seller may have in materials, data and information provided by or collected about or on behalf of Seller’s Merchants
that produce the Portfolio Residual, including Merchant Applications and Merchant Agreements (individually and collectively, “Client
Information”).

 

1.2
All Liabilities and obligations of Seller in connection with and directly related to the Purchased Assets shall be assumed by the
Purchaser from and after the Closing Date. Except as set forth within Schedule 1.2, Seller shall retain all of Seller’s Liabilities,
debts, and obligations in relation to Seller’s Business and the Purchased Assets. Purchaser shall not be responsible for payment
of any of Seller’s pending or future Liabilities, claims or obligations arising from Transactions with an Acquirer’s processing
date prior to the Closing Date, regardless of when a claim is initiated.

 

1.3 Purchase Price. The total consideration
for the Purchased Assets will be $20,000,000.00 payable by Purchaser as follows:

 

 (a) The cash sum of $16,000,000.00 shall be payable by Purchaser to Seller at Closing.

 

(b)
The cash sum of $2,000,000.00 shall be payable by Purchaser to Seller within but not later than six (6) months after Closing.

 

(c)
The cash sum of $2,000,000.00 shall be paid by Purchaser at Closing to an escrow account established by Purchaser and Seller and
subject to the Attrition Adjustment provided in hereinbelow.

 

1.4 Attrition
Adjustment. At Closing, $2,000,000.00 (“Escrowed Funds”) shall be deposited into an escrow account to be
released one year following the Closing Date (the “Anniversary Date”) in accordance with the following terms and
conditions. Any escrow fees charged by the bank holding the Escrowed Funds shall be paid by Purchaser. Using the gross revenue
figure of $1,200,000.00 from the Fiserv MM101 Report, the attrition adjustment to be applied to the Escrowed Funds, if any, shall be
the percentage of the average revenue shortfall that occurs in months 9 through 12 after Closing that is more than 20% of the
$1,200,000.00. For clarity, the grow revenue figure represents the total merchant income collected from all the Merchants as
represented on the Fiserv MM101 Report. If that average revenue shortfall percentage calculation is 20% or less, then the full
amount of the Escrowed Funds shall be released to Seller on the Anniversary Date. If that average revenue shortfall is more than
20%, then the Escrowed Funds will be released to Seller and Purchaser in pro rata amounts using the percentage basis of the funds
that is more than 20%. As an illustration, if the average revenue shortfall is 30%, the Escrowed Funds shall be released to Seller
in the amount of $1,800,000.00 and to Purchaser in the amount of $200,000.00 (using an attrition adjustment of 10%). The average
revenue shortfall calculation will be based on and calculated by using the Fiserv MM101 Report even if any of the Purchased Assets
are moved and boarded on another platform.

 

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 1.5 Closing.

 

(a)
Time and Place. The closing (the “Closing”) of the transactions contemplated by this Agreement shall
take place as close to 10:00 a.m. Eastern Time as reasonably possible on or before the Effective Date or as otherwise mutually agreed
(the “Closing Date”), by delivery of documents in escrow to Purchaser’s counsel via e-mail or courier and wire
transfer of funds rather than meeting in one place to accomplish the same. The Closing shall be deemed effective as of 11:59 p.m. Eastern
Time on the Closing Date.

 

(b)
Deliveries by the Seller. At the Closing, the Seller shall deliver or cause to be delivered to the Purchaser each of the
following:

 

		(i)	A General Assignment and Bill of Sale in the form attached hereto
as Exhibit B, executed by Seller (the “Bill of Sale”).

 

		(ii)	Evidence that Seller has paid in full or otherwise discharged
all Liens on the Purchased Assets, including, without limitation, UCC termination statements or such other evidence of release and/or
termination of all Liens on the Purchased Assets as Purchaser shall reasonably request, terminating all such security interests, pledges
and liens and other encumbrances, if any.

 

		(iii)	A certification of the secretary of the Seller confirming authorization
of the execution and delivery by the Seller of this Agreement and the other documents, agreements, instruments, and certificates contemplated
hereby, and the performance by the Seller of its obligations hereunder.

 

		(iv)	Documentation required to assume and thereafter transfer the
BIN and ICA related to the Purchased Assets from Seller’s Member to Esquire Bank on the FDMS System.

 

		(v)	Documentation, consents, and assignment of the FSP Agreement.

 

		(vi)	Documentation, consents and assignment of the ISO Sponsorship
Agreement.

 

		(vii)	All other documents reasonably necessary to effectuate the purchase,
sale and use of the Purchased Assets at the Closing, including all documentation, codes and other information required to utilize the
Purchased Assets being sold to Purchaser.

 

(c)
Deliveries by the Purchaser. At the Closing, the Purchaser shall deliver or cause to be delivered to the Seller each of
the following:

 

		(i)	The cash portion of the Purchase Price to be paid to Seller
at closing and the Escrowed Funds cash amount to be deposited in the escrow bank account in the form of a wire payment or check.

 

		(ii)	A counterpart of the Bill of Sale executed by Purchaser.

 

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		(iii)	A certification of the secretary of the Purchaser confirming
authorization of the execution and delivery by the Purchaser of this Agreement and the other documents, agreements, instruments, and
certificates contemplated hereby, and the performance by the Purchaser of its obligations hereunder.

 

		(iv)	All other documents reasonably necessary to effectuate the purchase,
sale and use of the Purchased Assets at the Closing.

 

1.6
Free and Clear. Seller shall sell, transfer, convey, assign and deliver the Purchased Assets free and clear of all Liens.
Seller shall retain the responsibility for full and complete compliance with any and all Laws related or applicable to the bulk transfer,
sale of Purchased Assets law (collectively the “Bulk Sales Laws”) and taxation, including all individual states within
the United States (“U.S.”), all municipalities within all U.S. States, and/or U.S. federal. Seller shall indemnify,
defend, and hold harmless Purchaser for any costs, expenses, liabilities, fines, fees, penalties, and/or costs (including without limitation
administrative costs, court costs, and attorneys’ fees), for any direct or indirect violation or non-compliance by any party with
the Bulk Sales Laws and/or tax responsibilities of the Seller as a result of this transaction.

 

ARTICLE TWO

 

REPRESENTATIONS AND WARRANTIES
OF THE SELLER

 

The Seller makes the following representations
and warranties to and for the benefit of the Purchaser, and acknowledges the Purchaser’s justifiable reliance thereon:

 

2.1
Organization and Good Standing. Seller is a corporation duly organized, validly existing and in good standing under the
laws of the State of Texas.

 

 2.2 Power and Authority; No Conflict; Consents.

 

(a)
Seller has the requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder.

 

(b)
The execution and delivery by Seller of this Agreement, and the performance by Seller of its obligations hereunder, have been duly
authorized by all requisite corporate action on the part of Seller, its manager, officers, directors, and shareholders, and do not and
will not:

 

		(i)	Violate (A) any provision of applicable
law, (B) the Seller’s certificate of formation for profit corporation, bylaws, shareholder’ or shareholders agreement (C)
any agreements, understandings or proposed transactions between Seller and any of its officers, directors, managers, employees, or any
Affiliate thereof that could potentially result in any decline in the value of the Purchased Assets, or otherwise prevent the Purchased
Assets from transferring free and clear of any third party claims; or (D) any judgment, order, decree,
ruling, charge or other restriction of any court or other agency of government.

 

		(ii)	Conflict with, result in a breach of, or constitute (with due
notice or lapse of time or both) a default under any agreement, contract, lease, instrument, or other arrangement to which the Seller
is a party or by which it is bound, or to which any of the Seller’s assets (including, without limitation, the Purchased Assets)
is subject.

 

		(iii)	Result in the creation or imposition of any Lien upon any of
the properties or assets of the Seller (including, without limitation, the Purchased Assets).

 

(c)
No license, permit, approval, or consent of any court, governmental agency, other public authority or third party is required as
a condition to the authorization, execution, and delivery of this Agreement by the Seller, or the performance by Seller of its obligations
hereunder.

 

2.3
Binding Obligation. This Agreement has been duly executed and delivered by the Seller and constitutes a legal, valid, and
binding obligation of Seller, enforceable in accordance with its terms. Seller will provide Purchaser with any information that Purchaser
may reasonably request in connection with this Agreement or other documents necessary to effectuate the transactions contemplated in this
Agreement. If any information previously provided becomes incorrect or misleading, Seller will provide Purchaser with corrected information.
As of the date of this Agreement, Purchaser represents to Seller that the information provided in connection with this Agreement is true
and complete in all material respects.

 

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 2.4 Litigation; Compliance.

 

(a)
There is no (i) action, suit, claim, proceeding or investigation pending or threatened against or affecting the Purchased Assets, at
law or in equity, or before or by any Governmental Body, (ii) arbitration proceeding relating to the Purchased Assets pending under
collective bargaining agreements or otherwise, or (iii) Governmental Body inquiry pending or, to Seller’s Knowledge,
threatened against or affecting the Purchased Assets that would materially and adversely affect Seller’s ability to perform its
obligations hereunder.

 

(b)
Seller is not in default with respect to any order, writ, injunction or decree of any court or of Governmental Body that would
materially and adversely affect its ability to perform its obligations hereunder. Seller has complied in all material respects with all
Legal Requirements, and Seller has all material permits, licenses, and authorization required for the Purchased Assets and Seller is not
in default thereunder. No defaults exist in Seller’s performance or observance of any material obligation, agreement, covenant,
or condition contained in any contract, indenture, loan agreement, note, lease or other agreement or instrument that would materially
and adversely affect its ability to perform its obligations hereunder.

 

(c)
The current use, operation and maintenance of the Purchased Assets by the Seller does not contravene or violate, any material ordinance
or other administrative regulation, permits or approvals, or restrictive covenant or any provision of applicable law or rule, regulation,
order or direction of any judicial, administrative or other Governmental Body having jurisdiction which is now in effect or which has
been enacted, issued or adopted as of the date of this Agreement, and Seller has not received any written or verbal notice of any threatened
change by any such Governmental Body that would impinge on the continued use, operation and maintenance of the Purchased Assets following
Closing.

 

2.5
Title to Purchased Assets; Condition; Location. Seller has (or will have at the Closing) good and marketable title to the
Purchased Assets, free and clear of all Liens and restrictions on transfer. All the Purchased Assets have been maintained in accordance
with industry practice.

 

2.6
Broker’s and Finder’s Fees. Seller has no liability or obligation to pay any fees or commissions to any broker,
finder, or agent with respect to the transactions contemplated by this Agreement.

 

2.7
Taxes. Seller has not received notice of any open audit or outstanding notice of deficiency or delinquency with respect
to any sales, use or other taxes to which the Purchased Assets are subject. Seller has duly filed all federal, state and local tax returns
and reports required to be filed by Seller. All taxes owed by Seller in connection with the Purchased Assets (whether or not shown on
a tax return) have been paid or will be paid when due and such tax returns and reports were correct and complete in all material respects.

 

2.8
Disclosure. The representations and warranties of the Seller contained in this Agreement do not contain any untrue statement
of material fact or omit to state any material fact necessary in order to make the statements and information contained herein not misleading.
Seller has made available to the Purchaser all the information reasonably available to the Seller that the Purchaser have requested for
deciding whether to acquire the Purchased Assets and to assess the financial wherewithal of Seller to stand behind the representation,
warranties and covenants made under this Agreement, including, without limitation the Seller’s FDMS System’s reports in connection
with the Purchased Assets.

 

 2.9 Card Association Compliance.

 

(a) 
Purchaser has complied with and is in compliance with, in all material respects, all requirements of the Card Associations applicable
to the Purchased Assets and Purchaser, including the Rules, in each case as may be in effect from time to time. Purchaser has, and has
ensured that any of its Referral Partners and other agents who receive or have access to credit card non-public personal information in
connection with Purchased Assets have, maintained and protected the privacy of any such credit card non- public personal information at
least to the same extent that Purchaser are or would be required to maintain confidentiality under the Rules. Purchaser has not received
notice of any actual or alleged violation of any Rules. To Purchaser’s Knowledge, none of the Merchant Accounts or Referral Partners
of Purchaser have failed to comply with the Rules in such a way that it would cause Purchaser or any Referral Partners to whom Purchaser
provides services to incur any material fee, fine or liability to the Card Associations, Member or the applicable Acquirer.

 

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(b) 
None of Purchaser’s Referral Partners or other agents acting on behalf of Purchaser is required to be registered with the
Card Associations to perform its obligations under any agreement with Purchaser and the performance of such agreements will not cause
Purchaser to violate the Rules.

 

(c) 
Purchaser uses commercially reasonable best efforts to ensure that all of its Merchant Accounts, Referral Partners and other business
relationships are and have been in material compliance with all Rules, including by monitoring such Merchant Accounts, Referral Partners
and other business relationships from time to time.

 

2.10
Property Transfer Free and Clear; Compliance with Bulk Sales Laws. The Purchased Assets are free and clear of all mortgages,
deeds of trust, Liens, loans and encumbrances, statutory liens for the payment of taxes, and liens that arise or arose in the ordinary
course of business (regardless of whether or not such liens materially impair the Seller’s ownership or use of such property or
assets). Seller has taken all actions necessary to ensure that the Purchased Assets are transferred to Purchaser free and clear of any
and all past, present, and/or potential future Liens, encumbrances, and/or claim of a security interest in or against such Purchased Assets,
which has or may be made by any investor, lender, creditor, or other third party. Seller has complied with and will continue to comply
with all Bulk Sales Laws, where applicable. Seller has taken all steps, actions, and undertakings necessary to ensure and guaranty that
(i) the transaction contemplated under this Agreement complies with all Bulk Sales Laws; and (ii) neither Party shall incur any liability
of any nature under any Bulk Sales Laws as a result of the transaction contemplated under this Agreement.

 

2.11. No
Material Adverse Changes. Since October 31, 2021, Seller has no Knowledge of any Material Adverse Changes to the Purchased Assets.
To the best of Seller’s Knowledge, all financial information contained in the FDMS Systems and Client Information

 

2.12 Data
Privacy. In connection with its collection, storage, transfer (including, without limitation, any transfer across national
borders) and/or use of any Personal Information, Seller is and has been in compliance with all applicable Rules, Seller’s
privacy policies and the requirements of any contract or codes of conduct to which the Seller is a party. Seller has commercially
reasonable physical, technical, organizational and administrative security measures and policies in place to protect all Personal
Information collected by it or on its behalf from and against unauthorized access, use and/or disclosure. Seller is and has been in
compliance in all material respects with all laws relating to data loss, theft and breach of security notification obligations.

 

2.13
Purchased Assets. Schedules 1.1(a), 1.1(c), 1.1(f) and 1.2 contain true and correct descriptions of all of the Purchased
Assets and information available to Seller in relation thereto. Seller shall ensure that Purchaser obtains (i) all rights in relation
thereto; and (ii) ownership and control over all proceeds derived therefrom.

 

2.14
Assigned Agreements. The Assigned Agreements are all of the material contracts and agreements applicable to the Portfolio
Residual and the ownership thereof. Each of the Assigned Agreements was properly executed by all parties identified therein, is in full
force and effect, and there is no breach or default or threatened default by any party thereto. The Merchant Agreements have been executed
by each Merchant or there is sufficient evidence to demonstrate that the Merchants have accepted the terms of the Merchant Agreements.
Seller has or will obtain all consents and approvals necessary to effectuate the assignment to the Purchaser of all Assigned Agreements.
Seller has not been prepaid any amount under any Assigned Agreement.

 

2.15
Proprietary Information; Client Information. Seller owns and will effectively transfer and assign to Purchaser all
of Seller’s Proprietary Information and Client Information in relation to the Purchased Assets. Seller has kept confidential and
safeguarded the disclosure of such Proprietary Information and Client Information consistent with industry standards. Seller is fully
entitled, authorized and permitted to assign, transfer and deliver to Purchaser all Proprietary Information and all Client Information.
Seller warrants that there is no reason to believe that any Merchant, Referral Partner and/or other Person will terminate or cancel (or
attempt to terminate or cancel) any Assigned Agreement.

 

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2.16
Referral Partners, Seller has delivered to Purchaser correct and complete copies of the Referral Agreements. Seller warrants
that there is no liability or obligation to pay any residuals to Referral Partners accrued prior to the Closing Date. Seller shall defend,
indemnify and hold Purchaser harmless from and against any liabilities, claims or losses arising from or in relation to any claims for
compensation made by any Referral Partner in respect of any Purchased Assets prior to the Closing Date. With respect to each Referral
Agreement, Seller states that to the best of Seller’s Knowledge, and belief: (i) each Referral Agreement is legal, valid, binding,
enforceable, and in full force and effect in all respects; (ii) each Referral Agreement will continue to be legal, valid, binding, enforceable,
and in full force and effect in all respects on identical terms following the consummation of the transactions contemplated hereby; and
(iii) no party is, in any respect, in breach or default, and no event has occurred which with notice or lapse of time would constitute
such a breach or default, or permit termination, modification, or acceleration, under each Referral Agreement; (iv) no party has repudiated
any provision of each Referral Agreement.

 

2.17 No
Third-Party Agreements. Except for the Referral Agreements, Seller has no agreements with any person or entity, including an
independent sales organization, sales representative, or trade association, which to the best of Seller’s Knowledge would give
rise to any claim against Seller that would cause a Material Adverse Effect to the Purchased Assets or to stand behind the
representations, warranties and covenants set forth in this Agreement.

 

2.18. No
Merchant Reserves. Seller attests that Seller is not holding any Merchant Reserve Funds, and from the Closing Date, Purchaser
shall not be obligated to disburse any such funds to any Merchant.

 

2.19 Survival.
The representations and warranties contained in Article 2 shall survive for a period of the later of either (i) three (3)
years from the Closing Date or (ii) the expiration of the applicable statute of limitations applicable to claims based upon,
involving, or connected with the subject matter of each respective representation and warranty.

 

ARTICLE THREE

 

REPRESENTATIONS AND WARRANTIES
OF THE PURCHASER

 

The Purchaser makes the following
representations and warranties to and for the benefit of the Seller, and acknowledges the Seller’s justifiable reliance thereon:

 

3.1
Organization and Good Standing. The Purchaser is a corporation duly organized, validly existing and in good standing under
the laws of the State of Delaware.

 

 3.2 Power and Authority; No Conflict; Consents.

 

(a)
The Purchaser has the requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations
hereunder.

 

(b)
The execution and delivery by the Purchaser of this Agreement, and the performance by the Purchaser of its obligations hereunder,
have been duly authorized by all requisite corporate action on the part of the Purchaser, its managers, officers, and members, and do
not and will not:

 

		(i)	violate (A) any provision of applicable law, (B) the Purchaser’s
articles of organization or operating agreement, or (C) any judgment, order, decree, ruling, charge or other restriction of any court
or other agency of government; or

 

		(ii)	conflict with, result in a breach of, or constitute (with due
notice or lapse of time or both) a default under any agreement, contract, lease, instrument, or other arrangement to which the Purchaser
is a party or by which it is bound, or to which any of the Purchaser’s assets is subject.

 

(c)
No license, permit, approval, or consent of any court, governmental agency, other public authority or third party is required as a
condition to the authorization, execution, and delivery of this Agreement by the Purchaser, or the performance by the Purchaser of
its obligations hereunder.

 

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3.3
Binding Obligation. This Agreement has been duly executed and delivered by the Purchaser and constitutes a legal, valid
and binding obligation of the Purchaser, enforceable in accordance with its terms.

 

 3.4 Litigation; Compliance.

 

(a)
There is no (i) action, suit, claim, proceeding or investigation pending or threatened against or affecting the Purchaser, at law
or in equity, or before or by any federal, state, municipal or other governmental department, commission, board, bureau, agency or instrumentality,
domestic or foreign, (ii) arbitration proceeding relating to the Purchaser pending under collective bargaining agreements or otherwise,
or (iii) governmental inquiry pending or, to our Knowledge, threatened against or affecting the Purchaser that would materially and adversely
affect its ability to perform its obligations hereunder.

 

(b)
The Purchaser is not in default with respect to any order, writ, injunction or decree of any court or of any federal, state, municipal
or other governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign that would materially and
adversely affect its ability to perform its obligations hereunder. The Purchaser has complied in all material respects with all laws,
rules, regulations and orders which are applicable to its business, operations, properties, assets, products and services, and the Purchaser
has all material permits, licenses, and authorization required for the conduct of its business as currently conducted or proposed to be
conducted. No defaults exist in the Purchaser’s performance or observance of any material obligation, agreement, covenant, or condition
contained in any contract, indenture, loan agreement, note, lease or other agreement or instrument that would materially and adversely
affect its ability to perform its obligations hereunder.

 

3.5
Broker’s and Finder’s Fees. The Purchaser has no liability or obligation to pay any fees or commissions to any
broker, finder, or agent with respect to the transactions contemplated by this Agreement.

 

3.6
Disclosure. Purchaser’s representations and warranties contained in this Agreement do not contain any untrue statement
of material fact or omit to state any material fact necessary in order to make the statements and information contained herein not misleading.

 

ARTICLE
FOUR

 

INDEMNIFICATION

 

4.1 Indemnification
by Seller. Seller hereby agrees to defend, indemnify and hold harmless Purchaser and its Affiliates,
and each of their respective employees, stockholders, directors, managers, officers or agents (collectively,
“Purchaser Indemnitees”), from and against any loss, liability, damage, penalty or expense
(including reasonable attorney’s fees, expert witness fees and costs of defense) any such Purchaser lndemnitee suffers or
incurs from and after the Closing Date as a result of (i) any failure by Seller or any of its Affiliates to comply with the
terms of this Agreement or any of the Ancillary Agreements; (ii) any inaccurate representation or warranty made by seller or any of
its affiliates in this Agreement or any of the Ancillary Agreements; or (iii) any solicitation of, or interference with, any
Merchant Account.

 

4.2
Indemnification by Purchaser. Purchaser hereby agrees to defend, indemnify and hold harmless Seller and its affiliates,
and each of their respective employees, members, stockholders, directors, managers, officers or agents (collectively, “Seller
indemnitees”), from and against any loss, liability, damage, penalty or expense (including reasonable attorney’s fees, expert
witness fees and costs of defense) any such Seller lndemnitee suffers or incurs from and after the effective date as a result of (i) any
failure by Purchaser or any of its affiliates to comply with the terms of this Agreement or any of the Ancillary Agreements; or (ii) any
inaccurate representation or warranty made by Purchaser or any of its affiliates in this Agreement or any of the Assignment Agreements.

 

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4.3
Limitation of Liability. In no event shall either party be liable to the other party for any special, incidental, consequential
or punitive damages of any nature or for any reason whatsoever regardless of the form or action, whether in contract, tort or otherwise
even if advised of that possibility. Each party acknowledges and agrees that, except in the case of fraud or willful misconduct, following
the Closing Date, the indemnification provisions contained herein shall be the sole and exclusive remedies of either party for any breach
by the other party of the representations and warranties in this Agreement and for any failure by the other party to perform and comply
with any covenants and agreements in this Agreement, except that if any of the provisions of this Agreement are not performed in accordance
with their terms or are otherwise breached, the non-breaching party shall be entitled to specific performance of the terms thereof in
addition to any other remedy at equity.

 

4.4
Payment of Indemnity. Any indemnity claim shall be paid in immediately available funds by the indemnifying party to or on
behalf of an indemnitee. Nothing contained herein shall in any way limit any rights Purchaser may have pursuant to any other agreement
between Purchaser and Seller.

 

4.5
Survival. These indemnifications shall survive for a period of the later of either (i) three (3) years from the closing
date or (ii) the expiration of the applicable statute of limitations applicable to claims based upon, involving, or connected with the
subject matter of each respective indemnification.

 

ARTICLE FIVE

 

COVENANTS

 

5.1 Nonsolicitation.
As of the Closing Date, (i) any Merchant that contributes to or comprises the fees paid in relation to the Portfolio Residual shall
solely and exclusively be considered the customer of Purchaser, not Seller. For a period of ten (10) years from the Closing Date,
none of Seller, including its any of its principals, executives, officers, directors, managers, employees, salespersons, or entities
in which such principal has any interest, will directly or indirectly (i) induce, attempt to induce, interfere with, disrupt or
attempt to disrupt any past, present or prospective business relationship, solicit, market to, endeavor to obtain as a customer, or
contract with any Merchant whose Merchant Account contributes to or comprises the fees paid in relation to the Portfolio Residual in
order to provide services to such Merchant in competition with Purchaser; or (ii) solicit or interfere with, disrupt or attempt to
disrupt any past, present or prospective business relationship, contractual or otherwise any Person that is a party to any Assigned
Agreement or Referral Agreements to terminate its contractual or business relationship with Purchaser. Any such action shall be a
material breach of this Agreement.

 

5.2
Non-Disclosure. From the Closing Date and thereafter, Seller, and each of its directors, officers, managers, and employees
will not directly or indirectly disclose to any third party or use for its or their benefit any Confidential Information of the Seller
or the Purchaser related to the Purchased Assets, Assigned Contracts, Referral Agreements, and/or this Agreement (except in furtherance
of this Agreement for the benefit of Purchaser).

 

5.3
Payments to Referral Partners. Purchaser shall have no liability or obligation, including but not limited to any payment
obligations, with respect to any Referral Partner or any other Third-Party Residual Claimant accrued prior to the Closing Date. Seller
shall, at its discretion, either purchase or acquire all rights to Residuals any such Third-Party Residual Claimant may have with respect
to any Merchant Account or shall continue to comply with all payment obligations to such Third-Party Residual Claimant for Transactions
prior to the Closing Date. Seller shall defend, indemnify and hold Purchaser harmless from and against any Liabilities arising from or
in relation to any claims for compensation made by any Third-Party Residual Claimant in respect of any Merchant Account or other Purchased
Asset. From and after the Closing Date, in the event that Seller defaults in its payment obligations to any Third Party Residual Claimant
relating to any Merchant Account or other Purchased Asset, Purchaser shall be entitled (but under no obligation) to (a) deduct from any
payments otherwise owing to Seller by Purchaser an amount equal to that amount then due and owing by Seller to such Third Party Residual
Claimant, and pay such deducted sums directly to the Third Party Residual Claimant; and/or (b) cause Seller to assign to Purchaser any
and all rights of Seller under any contract Seller has with such Third Party Residual Claimant solely to the extent that such contract
applies or relates, in whole or in part, to any Merchant Account or other Purchased Asset.

 

5.4
Equitable Relief. If Seller or any of its Affiliates breaches, or threatens to breach, and of the provisions of Section
5.1 or if either party or any of its Affiliates threatens to breach, any of the provisions of Section 5.2, in addition to any other rights
the non-breaching party may have, including claim for damages, the non-breaching party shall have the right to have the provisions of
Section 5.1, 5.2, 5.3, as the case may be, specifically enforced by any court of competent jurisdiction, without presentment of a bond
(such requirement being expressly waived by the parties), it being agreed that any breach or threatened breach of Section 5.1 or 5.2 would
cause irreparable harm to the non-breaching party in that money damages would not provide an adequate remedy.

 

    9

     

    

 

5.5 Power
of Attorney. Seller does hereby irrevocably appoint Purchaser and its successors and assigns as Seller’s true and lawful
attorney in fact, and hereby authorizes Purchaser: (a) to demand, collect, receive, sue, and give releases to any Merchant or
Referral Partner for the monies due or which may become due upon or with respect to the Purchased Assets and to compromise,
prosecute, or defend any action, claim, case or proceeding relating to the Purchased Assets, including the filing of a claim or the
voting of such claims in any bankruptcy case, all in Purchaser’s name or Seller’s name, as Purchaser may choose; (b) to
prepare, file and sign Seller’s name on any notice, claim, assignment, demand, draft, or notice of or satisfaction of lien or
mechanics’ lien or similar document with respect to Purchased Assets; (c) to receive, open, and dispose of all mail addressed
to Seller for the purpose of collecting the Purchased Assets; (d) to endorse Seller’s name on any checks or other forms of
payment on the Purchased Assets; and (e) to do all acts and things necessary or expedient, in furtherance of any such purposes. All
of the power of attorney rights granted by Seller to Purchaser hereunder shall be applicable with respect to all Purchased Assets,
Assigned Agreements, Referral Agreements and Merchant Agreements for Transactions or claims that accrued prior to the to the Closing
Date and arise after the Closing Date.

 

5.6. Scope.
Each party acknowledges and agrees that the restrictions contained in this Article 5 are reasonable and valid in geographical and temporal
scope and in all other respects. If any provision of this Article 5 or the application hereof to any party or circumstance shall be invalid
or unenforceable to any extent, the remainder of this Article 5 and the application of such provision to any other party or circumstance
shall not be affected thereby and shall be enforced to the maximum extent permitted under applicable law.

 

ARTICLE
SIX

 

MISCELLANEOUS

 

 6.1 Termination.

 

(a)
This Agreement may, by written notice given at or prior to the Closing in the manner herein provided, be terminated and abandoned:

 

		(i)	By mutual written consent of Seller and Purchaser; or

 

		(ii)	By the Purchaser, if any of the conditions provided for the
sale and purchase of the Purchased Assets have not been satisfied on or before the Closing Date; or

 

		(iii)	By the Seller, if any of the conditions provided for the sale
and purchase of the Purchased Assets have not been satisfied on or before the Closing Date.

 

(b)
If this Agreement is terminated pursuant to this Section, then all further obligations of the parties hereunder shall terminate.

 

6.2
Survival. Unless otherwise set forth in this Agreement, the representations, warranties and covenants of the parties, contained
in or made pursuant to this Agreement, shall survive the execution and delivery of this Agreement and the Closing, and shall in no way
be affected by any investigation or knowledge of the subject matter thereof made by or on behalf of Purchaser or the Seller.

 

6.3 Expenses.
Except as otherwise expressly provided in this Agreement, each of the parties hereto will bear its respective expenses incurred in
connection with the preparation, negotiation, execution, and performance of this Agreement and the transactions contemplated hereby,
including, without limitation, all fees and expenses of agents, representatives, counsel, and accountants.

 

6.4
Time. With regard to all dates and time periods set forth or referred to in this Agreement, time is of the essence.

 

    10

     

    

 

6.5
Further Assurances. Each of the parties hereto agrees to furnish such information, to do all acts and things, and to execute
and deliver such agreements, documents, certificates, and instruments as shall from time to time be reasonably required to effectuate
the terms and provisions of this Agreement.

 

6.6
Binding Effect; Assignment. This Agreement will be binding upon and inure to the benefit of the parties hereto and their
respective heirs, personal representatives, successors and assigns. Neither this Agreement nor any of the rights, interests or obligations
hereunder may be assigned or delegated by any party without the prior written consent of the other parties hereto.

 

6.7
No Third-Party Beneficiaries. This Agreement and all of its provisions are for the sole and exclusive benefit of the parties
hereto, and nothing contained or referred to in this Agreement shall be deemed to confer upon any person other than the parties hereto
any right (whether legal or equitable), benefit, claim, or remedy.

 

6.8
Severability. In the event any provision (or any part of any provision) contained in this Agreement shall for any reason
be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any
other provision (or remaining part of the affected provision) of this Agreement, and this Agreement shall be construed as if such invalid,
illegal, or unenforceable provision (or part thereof) had never been contained herein, but only to the extent such provision (or part
thereof) is invalid, illegal, or unenforceable.

 

6.9
Choice of Law; Venue. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the
State of New York without regard to its choice of law principles. In the event of any legal or equitable action arising under this Agreement,
the parties hereto hereby agree that jurisdiction and venue for such action shall lie exclusively within either the state courts of New
York located in New York County, New York. The parties hereby specifically waive any and all objections to venue in such courts, including
without limitation any objection based on a claim of inconvenient forum. The parties also agree that a final judgment in any such action
shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. The parties
agree to enter into mediation prior to trial in any suit, action, or proceeding arising out of or relating to this agreement. Purchaser
and Seller each irrevocably and unconditionally waives, to the fullest extent permitted by applicable law, any and all rights to trial
by jury in connection with any litigation or proceeding arising out of or relating to this Agreement or the transactions contemplated
hereby. Any and all disputes may be resolved by means of mediation between the parties. Foregoing this or in the absence of reaching an
agreement through mediation, the parties shall agree to binding arbitration with the prevailing party entitled to recovery of all cost
including but not limited to attorney fees. Venue shall be New York.

 

6.10 Rules
of Construction. Unless the context clearly indicates to the contrary, the following rules apply to the construction of this
Agreement: (i) references to the singular include the plural, and references to the plural include the singular; (ii) words of the
masculine gender include correlative words of the feminine and neuter genders; (iii) the headings or captions used in this Agreement
are for convenience of reference only and do not constitute a part of this Agreement, nor affect its meaning, construction, or
effect; and (iv) the term “person” means any individual, corporation, partnership (whether general or limited), limited
liability company, joint venture, estate, trust, association, organization, or other entity or governmental body. In addition, the
parties hereto acknowledge and agree that each party has retained counsel in connection with the negotiation and preparation of this
Agreement, and that any rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall
not be employed in the interpretation of this Agreement or any schedule or exhibit hereto.

 

    11

     

    

 

6.11 Notices.
Any notice or other communication required or permitted by or in connection with this Agreement shall be in writing and shall be
made electronically (with written confirmation of receipt), or by hand delivery (with written confirmation of receipt), or by
nationally recognized overnight delivery service, or by certified mail (return receipt requested, postage prepaid), addressed to the
parties at the appropriate address set forth below or at such other address as may be hereafter specified by written notice by the
parties to each other. Notice shall be considered given as of the earliest of the date of actual receipt, or the date of hand
delivery, one (1) calendar day after delivery to an overnight
delivery service, or three (3) calendar days after the date of mailing, independent of the actual date of actual delivery or whether
delivery is ever in fact made, as the case may be, provided the giver of notice can establish that notice was given as provided
herein.

 

	If to the Seller:	If to the Purchaser:
	 	 
	FFS Data Corporation	The OLB Group, Inc.
	P O Box 3592	200 Park Avenue, Suite 1700
	Abilene, Texas 79604 	New York, NY 10166
	Attention: Olan Beard	Attention: Ronny Yakov
	Email: obeard@ffsdatacorp.com	Email: ronny@olb.com

 

6.12
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but
all of which together shall constitute one and the same instrument. A signed copy of this Agreement delivered by facsimile, e-mail or
other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

6.13
Incorporation of Schedules and Exhibits. All schedules and exhibits identified in this Agreement are incorporated herein
by reference and made a part hereof.

 

6.14 Entire
Agreement; Amendment; Waiver. This Agreement, together with all schedules and exhibits hereto, contains the entire understanding
and agreement among the parties hereto with respect to the subject matter hereof, and supersedes all prior discussions,
understandings, and agreements (whether oral or written) between them with respect thereto. No amendment to, or modification or
waiver of, any of the terms of this Agreement shall be valid unless in writing and signed by the party against whom enforcement of
such amendment, modification or waiver is sought. No failure or delay by any party in exercising any right, power, or privilege
under this Agreement will operate as a waiver of such right, power, or privilege, and no single or partial exercise of any such
right, power, or privilege will preclude any other or further exercise of such right, power, or privilege, or the exercise of any
other right, power, or privilege.

 

6.15
Waiver of Jury Trial. EACH OF THE PARTIES HERETO WAIVES ALL RIGHTS TO TRIAL BY JURY OF ANY CLAIMS OF ANY KIND ARISING OUT
OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. THE PARTIES HERETO ACKNOWLEDGE THAT THIS IS A WAIVER OF A LEGAL
RIGHT AND REPRESENT TO EACH OTHER THAT THESE WAIVERS ARE MADE KNOWINGLY AND VOLUNTARILY AFTER CONSULTATION WITH COUNSEL OF THEIR CHOICE.
EACH OF THE PARTIES HERETO AGREES THAT ALL SUCH CLAIMS SHALL BE TRIED BEFORE A JUDGE OF A COURT HAVING JURISDICTION WITHOUT A JURY.

 

6.16
Successors and Assigns. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the
respective successors and permitted assigns of the parties. This Agreement shall not be assigned by a party without the prior written
consent of the other party, which shall not be unreasonably withheld. Nothing in this Agreement, express or implied, is intended to confer
upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations or liabilities
under or by reason of this Agreement, except as expressly provided in this Agreement.

 

6.17
Attorneys’ Fees. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement,
the prevailing party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other
relief to which such party may be entitled.

 

[Signature on following page.]

 

    12

     

    

 

IN WITNESS WHEREOF, the parties hereto
have executed this Agreement effective as of the Effective Date.

 

	 	SELLER:
	 	 
	 	FFS DATA CORPORATION
	 	 	
	 	By:	Olan Beard
	 	 	Olan Beard, President
	 	 	 
	 	 	PURCHASER:
	 	 	 
	 	THE OLB GROUP, INC.
	 	 	
	 	By:	Ronny Yakov
	 	 	Ronny Yakov, CEO

 

    13

     

    

 

Schedule
1.1 (a) – List of Merchants and their Contact Information for each Merchant Accounts

 

All
Merchants in FDMS SYS 4139

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    14

     

    

 

Schedule
1.1 (c) – List of intellectual property need to run and maintain Purchased Assets

 

		1.	Proprietary
software application used to read txt files used by FFS.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    15

     

    

 

Schedule
1.1 (f) – Assigned Agreements

 

		1.	All
                                            Merchant Agreements for the Merchants in SYS 4139

		2.	ISO
                                            Sponsorship Agreement

		3.	FSP
                                            Agreement

		4.	Referral
                                            Agreements

 

 

 

 

 

    16

     

    

 

Schedule
1.1 (g)) - Accounts Receivable (related to Assigned Agreements)

 

(None)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    17

     

    

 

Schedule
1.2 – List of Outstanding Liabilities

 

(None)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    18

     

    

 

Exhibit
A – Definitions

 

“Accounts
Receivable” means all accounts and notes receivable of the Company solely in relation to the Portfolio Residual existing at
the Closing Date.

 

“Acquirer”
means a Person that has an arrangement with a Merchant to obtain Transaction Card Tickets from the Merchant and present the Transaction
Card Tickets through an Interchange to an Issuer.

 

“Affiliate”
means, with respect to any specified Person, any other Person who, directly or indirectly, controls, is controlled by, or is under common
control with such Person.

 

“Agreement”
means this Asset Purchase Agreement, including the Exhibits and Schedules attached hereto or otherwise incorporated by reference.

 

“Ancillary
Documents” means the Bill of Sale, the Referral Agreements, Marketing Agreements, and the Assignment Agreement.

 

“Anniversary
Date” means an anniversary of the Closing Date.

 

“Application”
means the Merchant application used by Seller, as approved by Member and Seller.

 

“Application
Materials” means the Application and all procedures and other materials developed to facilitate the execution of Merchant Agreements,
as approved by Member and Seller.

 

“Assigned
Contracts” or “Assigned Agreements” are used interchangeably, and each term means those contracts and/or
agreements to which Seller is a party and which are assigned to Purchaser hereunder, including contacts and/or agreements that derive
Portfolio Residual from Merchants. Purchaser shall have the right, but not the obligation to accept assignment over all Seller’s
Assigned Contracts or Assigned Agreements, at Purchaser’s sole discretion.

 

“Assignment
Agreement” means the consents and assignment of the ISO Sponsorship Agreement by Member from FFS to OLB or the FSP Agreement
by FDMS from FFS to OLB.

 

“BIN”
means a Bank Identification Number issued by Visa.

 

“Card
Association” means Visa, Mastercard or any other association or credit or debit card issuing organization.

 

“Cardholder”
means a Person has a Cardholder Account with an Issuer.

 

“Cardholder
Account” means an arrangement between a Person and an Issuer that provides that the Person may use one or more Transaction
Cards issued by the Issuer.

 

    19

     

    

 

“CISP”
means Visa’s Cardholder Information Security Program, as may be amended from time to time.

 

“Closing”
means the consummation of the purchase and sale transactions contemplated by this Agreement, subject to the conditions within this Agreement.

 

“Closing
Date” is defined in the preamble of the Agreement.

 

“Confidential
Information” means all information of any kind concerning any party or its Affiliates, including but not limited to Client
Information, Proprietary Information, Merchant Agreements, or Referral Agreements, obtained directly or indirectly from such party in
connection with this Agreement except information (a) ascertainable or obtained from public or published information, (b) received from
a third party not known by the receiving party to be under an obligation to the disclosing party to keep such information confidential,
(c) that is or becomes known to the public (other than through a breach of this Agreement), or (d) that was in the receiving party’s
possession prior to disclosure thereof to the receiving party in connection herewith.

 

“Data
Security Requirements” means the PCI DSS developed by MasterCard and Visa, CISP, SDP and other similar requirements that apply
to Persons that transmit, process or store Cardholder, Transaction Card or bank account information, as may be promulgated or amended
by a Card or Electronic Payment Association or any local, state or federal legislative, judicial or administrative authority from time
to time.

 

“Earn-Out
Conditions” means the Attrition Guaranty required during the Guaranty Period.

 

“FDMS
System” means the computer equipment, computer software and related equipment and documentation used at any time and from time
to time by FDMS to provide Transaction processing and related services.

 

“Effective
Date” is defined in the preamble of the Agreement “Escrow Funds” is defined in Section 1.4.

 

“Fees”
means the Processing Fees and any other fees payable under the FSP Agreement, ISO Sponsorship Agreement or any of their respective exhibit,
schedule, appendix.

 

“FDMS”
means First Data Merchant Services, LLC.

 

“FSP
Agreement” means that certain service agreement between FDMS and Seller dated September 6, 2017.

 

“Governmental
Body” means any foreign, federal, state, local or other governmental authority or administrative or regulatory body.

 

    20

     

    

 

“Guaranty
Period” means each of calendar month 9, calendar month 10, calendar month 11, and calendar month 12 from the Closing Date.

 

“ICA”
means an InterBank Card Association number issued by MasterCard.

 

“Interchange”
means the contracts, agreements, rules, regulations and procedures governing the relationships between, or the actions in accordance
with the contracts, agreements, rules, regulations and procedures by, any two or more Persons in connection with the Interchange Settlement.

 

“Interchange
Settlement” means the process by which FDMS, on behalf of Seller (1) facilitates payment for MasterCard and Visa Transaction
Card Tickets presented by Acquirers to Seller, (2) receives payment for MasterCard and Visa Transaction Card Tickets presented by Seller
to Issuers, and (3) remits and receives payments for chargebacks and other Interchange fees and expenses of or payable by Seller.

 

“ISO
Sponsorship Agreement” means that certain Transaction sponsorship agreement between Member and Purchaser dated January 5, 2017.

 

“Issuer”
means a Person that has a Cardholder Account with a Cardholder.

 

“Knowledge”
shall have the meanings set forth in subsections (a), (b) and (c) below:

 

		(a)	An
                                            individual will be deemed to have Knowledge of a particular fact or other matter if (i) that
                                            individual is actually aware of the fact or matter or (ii) a prudent individual could be
                                            expected to discover or otherwise become aware of the fact or matter in the course of conducting
                                            a reasonable investigation regarding the accuracy of the statement, a representation or warranty
                                            made with respect thereto.

 

		(b)	A
                                            party, other than an individual, will be deemed to have Knowledge of a particular fact or
                                            other matter if any individual who is servicing, or who has at any time served, as a director,
                                            officer, member, partner, employee, agent, executor or trustee of that party (or in any similar
                                            capacity) has, or at any time had, Knowledge of that fact or other matter (as set forth in
                                            (a) above), and any such individual will be deemed to have conducted a reasonable investigation
                                            regarding the accuracy of the statements, representations and warranties made herein by that
                                            party.

 

		(c)	Seller’s
                                            Knowledge shall be deemed to include all Knowledge of its officers, directors.

 

“Laws”
means any statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law, judgment, decree, judicial and administrative
decisions and interpretation applicable to Purchased Assets, including OFAC regulations, or other requirement or rule of law of any Governmental
Authority.

 

    21

     

    

 

“Liability”
means any liability, debt, or other obligation of any nature (whether known or unknown, whether asserted or unasserted, whether absolute
or contingent, whether accrued or unaccrued, whether liquidated or unliquidated, and whether due or to become due) including any chargeback,
fraud and credit-related losses arising from Transactions, excluding any liability for taxes.

 

“Legal
Requirements” means any Laws, as amended or promulgated from time to time.

 

“Lien”
means any mortgage, pledge, assessment, security interest, lien, license, royalty payment, liability, interest, adverse claim, levy,
charge or other encumbrance of any kind, or any right of first refusal, conditional sale contract, option, title retention contract,
or other contract to give or to refrain from giving any of the foregoing

 

“MasterCard”
means MasterCard International Incorporated or its successors or assigns.

 

“Material
Adverse Effect” means a material adverse effect on (i) the Merchant Accounts that contribute to the Portfolio Residual; and/or
(2) the total revenue generated through Portfolio Residual.

 

“Member”
means First National Bank of Albany/Breckenridge.

 

“Merchant”
means any customer for whom the Seller receives residual payments as a component of the Portfolio Residual; merchants are individually
referred to as a “Merchant,” and collectively referred to as the “Merchants.” The Merchants are further
identified in one or more schedules attached hereto and incorporated herein by reference.

 

“Merchant
Account” means the processing account established for the Merchant upon execution of the Merchant Agreement.

 

“Merchant
Agreement” each Merchant’s respective agreement(s) with Seller and/or one or more third party credit, debit, and/or gift
card processors for such services and related goods, including the Merchant Applications.

 

“MM101
Report” means a monthly profitability of the Purchased Assets provided by FDMS.

 

“OFAC”
means the United States Department of the Treasury Office of Foreign Assets Control.

 

“Pass-Through
Costs and Interchange” means the amounts charged by Card Associations (including interchange fees, dues, assessments and other
liabilities, and debit network fees) in connection with the Transactions.

 

“PCI
DSS” means the payment card industry data security standard (or any successor standards) as established by Mastercard, Visa,
and other networks or Card associations.

 

    22

     

    

 

“Person”
means any general partnership, limited partnership, corporation, limited liability company, bank or other financial institution, joint
venture, trust, business trust, governmental or regulatory body or agency or authority, cooperative, association, individual or other
entity, and the heirs, executors, administrators, legal representatives, successors and assigns of such Person as the context may require.

 

“Personal
Information” means any information that is “personally identifiable” within the meaning of the Gramm-Leach-Bliley
Act (15 U.S.C. § 6801, et seq.), as amended from time to time, and its implementing regulations.

 

“Portfolio
Residual” means Seller’s rights to and/or ownership interests in the past, present, and all future revenue generated
collected from the Purchased Assets, less all Fees, present and future Pass-Through Costs and Interchange, and Special Fees.

 

“Processing
Agreements” means FSP Agreement, ISO Sponsorship Agreement, and any agreement with a third party used by Seller in connection
with the Merchant’s transactions.

 

“Processing
Fees” means all fees and charges incurred for services performed at the prices set forth in the Processing Agreements, with
the exception of Special Fees, Pass-Through Costs and Interchange, and all charges for taxes and interest.

 

“Purchased
Assets” is defined in Section 1.1(a)

 

“Purchaser”
means The OLB Group Inc.

 

“Referral
Partner” means a natural person or entity that refers prospective new Merchants to Seller, or that otherwise acts as a reseller,
agent or other representative of Seller in connection with originating Merchant relationships or the marketing, soliciting, reselling
or facilitating of the Transactions, automated clearing house and point of sale equipment, software and related goods and services to
Merchants or prospective Merchants.

 

“Referral
Agreement” means any contract or agreement (oral or written) (i) between Seller and any Referral Partner; and (ii) any contract
or agreement (oral or written) to which Seller has assumed certain rights in relation to a Merchant Account secured through the efforts
of a Referral Partner.

 

“Residuals”
means any periodic payments as set forth in the Referral Agreement from the Merchant Accounts that a Referral Partner referred to Seller.

 

“Rules”
means the by-laws, regulations and/or requirements that are promulgated by the Card Associations (including, without limitation, the
Data Security Requirements), and Laws in each case as may be in effect from time to time.

 

“SDP”
means the MasterCard Site Data Protection Program, as may be amended from time to time.

 

    23

     

    

 

“Seller”
means FFS Data Corporation.

 

“Special
Fees” means the amounts payable by Seller to FDMS on a pass-through or reimbursement basis for services or goods provided by
a third party, including gateway fees, surcharges, customer specific setup fees, tariff line rates, WATS lines rates, data circuit charges
and any other rates charged to FDMS by a communications common carrier, postage costs (at the 1st class rate), courier costs and costs
of forms.

 

“Specified
Intellectual Property” means all ideas, inventions, developments and improvements conceived and/or reduced to practice, patents,
trademarks, service marks, trade names, copyrights, know-how, trade secrets, licenses, information and proprietary rights and processes
necessary to manage and maintain the Purchased Assets without any conflict with, or infringement of, the rights of others, as set forth
on Schedule 1.1(c).

 

“Ticket”
means a sales slip, cash advance slip or returned merchandise slip submitted by a Merchant.

 

“Third
Party Residual Claimant” means any Person (other than Seller or its Affiliates but including any of its principal) that claims
any right to receive Residuals with respect to any Merchant Account, including but not limited to any Referral Partner.

 

“Transaction”
means the purchase by a Cardholder of goods or services from a Merchant by use of a Transaction Card.

 

“Transaction
Card” means a payment card issued pursuant to a license from any Card Association for which Seller currently provides service
support, including any credit card, debit card or any small business account card, purchasing account card or corporate travel and expense
account card.

 

“Visa”
means VISA U.S.A. Inc. or VISA INTERNATIONAL or either of their successors and assigns.

 

 

24Document

Exhibit 10.15 
COHERENT
EQUITY INCENTIVE PLAN
GLOBAL RESTRICTED STOCK UNIT AGREEMENT
1.Grant.  The Company hereby grants to the Employee named in the Notice of Grant of Award and Award Agreement (the “Notice of Grant”) an award of Restricted Stock Units (“RSUs”), as set forth in the Notice of Grant, subject to the terms and conditions in this agreement, including the additional terms and restrictive covenant conditions contained in the appendix attached hereto (the “Appendix” and, together with the Global Restricted Stock Unit Agreement, the “Agreement”) and in the Company’s Equity Incentive Plan (the “Plan”).  Capitalized terms used and not defined in this Agreement shall have the meaning set forth in the Plan.
2.Company’s Obligation.  Each RSU granted represents the right to receive one Share on the vesting date.  Unless and until the RSUs vest, the Employee will have no right to receive Shares under such RSUs.  Prior to actual distribution of Shares pursuant to any vested RSUs, such RSUs will represent an unsecured obligation of the Company, payable (if at all) only from the general assets of the Company.
3.Vesting Schedule.  The RSUs shall vest as set forth in the Notice of Grant, subject to paragraph 4 and the Appendix. 
4.Termination as a Service Provider.  If the Employee terminates service as a Service Provider because of death or Disability prior to the date the RSUs would otherwise vest if the Employee had remained a Service Provider, such RSUs shall become vested upon such termination of service as a Service Provider because of such death or Disability.  For purposes of this Agreement, “Disability” means when the Employee as a result of sickness or injury is unable to perform with reasonable continuity the substantial and material acts necessary to pursue the Employee’s usual occupation. 
Notwithstanding any contrary provision of this Agreement or the Notice of Grant, if the Employee terminates service as a Service Provider for any or no reason other than death or Disability prior to vesting, the unvested RSUs awarded by this Agreement will thereupon be forfeited at no cost to the Company.   [For purposes of clarification, the preceding sentence does not override the accelerated vesting as set forth in the Company’s Change of Control and Leadership Change Severance Plan.]
For purposes of the RSUs, the Service Provider’s service will be considered terminated as of the date that the Service Provider is no longer providing services to the Company or one of its Subsidiaries (regardless of the reason for such termination and whether or not later to be found invalid or in breach of employment laws in the jurisdiction where the Employee is employed or the terms of the Employee’s employment agreement, if any), and unless otherwise expressly provided in this Agreement or determined by the Company, the Service Provider’s right to vest in the RSUs under the Plan, if any, will terminate as of such date and will not be extended by any notice period (e.g., the Employee’s period of service would not include any contractual notice period or any period of “garden leave” or similar period mandated under employment laws in the jurisdiction where the Employee is employed or the terms of the Employee’s employment agreement, if any); the Company shall have the exclusive discretion to determine when the Service Provider is no longer providing services for purposes of the RSUs (including whether the Service Provider may still be considered to be providing services while on a leave of absence).
5.Settlement upon Vesting.  Any RSUs that vest in accordance with paragraph 3 or 4 will be distributed to the Employee (or in the event of the Employee’s death, to his or her estate) in Shares.
6.Responsibility for Taxes.  The Employee acknowledges and agrees that, regardless of any action taken by the Company or, if different, the Employee’s employer (the “Employer”), the ultimate liability for all income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to the Employee’s participation in the Plan and legally applicable to the Employee (“Tax-Related Items”) is and remains the Employee’s responsibility and may exceed the amount (if any) withheld by the Company or the Employer.  The Employee further acknowledges that the Company and/or the Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the RSUs, including, but not limited to, the grant, vesting or settlement of the RSUs, the receipt of any dividends on Shares, and the subsequent sale of the Shares; and (ii) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the RSUs to reduce or eliminate the Employee’s liability for Tax-Related Items or achieve any particular tax result.  Further, if the Employee has become subject to tax in more than one jurisdiction, the 
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Employee acknowledges that the Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction.
Prior to any relevant taxable or tax withholding event, as applicable, the Employee will pay or make adequate arrangements satisfactory to the Company and/or the Employer to satisfy all Tax-Related Items.  In this regard, the Company shall withhold in Shares otherwise deliverable to the Employee having a Fair Market Value equal to an amount that satisfies the Tax-Related Items required to be withheld.  In the event that such withholding in Shares is problematic under applicable tax, securities or other laws, or has materially adverse accounting consequences, the Employee authorizes the Company and/or the Employer, or their respective agents, at their discretion, to satisfy their withholding obligations, if any, with regard to all Tax-Related Items by one or a combination of the following:
a.withholding from the Employee’s wages or cash compensation paid to the Employee by the Company and/or the Employer; or
b.withholding from proceeds of the sale of Shares acquired upon vesting/settlement of the RSUs either through a voluntary sale or through a mandatory sale arranged by the Company (on the Employee’s behalf pursuant to this authorization without further consent).  
The Company may withhold or account for Tax-Related Items by considering statutory withholding rates or other withholding rates, including maximum rates applicable in the Employee’s jurisdiction, in which case the Employee may receive a refund of any over-withheld amount in cash and will have no entitlement to the equivalent amount in Shares.  If the obligation for Tax-Related Items is satisfied by withholding in Shares, for tax purposes, the Employee is deemed to have been issued the full number of Shares subject to the vested RSUs, notwithstanding that a number of the Shares are held back solely for the purpose of paying the Tax-Related Items .
Finally, the Employee shall pay to the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold or account for as a result of the Employee’s participation in the Plan that cannot be satisfied by the means previously described.  The Company may refuse to issue or deliver the Shares or the proceeds of the sale of Shares if the Employee fails to comply with the Employee’s obligations in connection with the Tax-Related Items.
7.Rights as Stockholder.  Neither the Employee nor any person claiming under or through the Employee will have any of the rights or privileges of a stockholder of the Company in respect of any Shares deliverable hereunder unless and until certificates representing such Shares will have been issued, recorded on the records of the Company or its transfer agents or registrars, and delivered to the Employee or the Employee’s broker.
8.Acknowledgements.  In accepting the grant of RSUs, the Employee acknowledges, understands and agrees that:
a.the Company (and not the Employee’s employer) is granting the RSU.  The Company will administer the Plan from outside the Employee’s country of residence if the Employee’s country of residence is outside the United States, and the provisions of this Agreement will be governed by, and subject to, the internal substantive laws, but not the choice of law rules, of the State of Delaware;
b.the benefits and rights provided under the Plan, if any, are wholly discretionary and do not constitute regular or periodic payments;
c.the Employee is voluntarily participating in the Plan and acceptance of the RSU is not a condition of employment; 
d.the RSUs and the Shares subject to the RSUs, and the income from and value of same, are not intended to replace any pension rights or compensation; 
e.the RSUs and the Shares subject to the RSUs, and the income from and value of same, are not part of normal or expected compensation for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, leave-related payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments; 
f.unless otherwise agreed with the Company, the RSUs and the Shares subject to the RSUs, and the income from and value of same, are not granted as consideration for, or in connection with, services the Employee may provide as a director of a Subsidiary; 
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g.no claim or entitlement to compensation or damages shall arise from forfeiture of the RSUs resulting from the termination of the Employee as a Service Provider (for any reason whatsoever; and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where the Employee is employed or the terms of the Employee’s employment agreement, if any); 
h.the future value of the underlying Shares is unknown, indeterminable and cannot be predicted with certainty; 
i.the grant of the RSUs, and all decisions with respect to any future grant of RSUs under the Plan, is at the complete discretion of the Company; 
j.the grant of the RSUs is voluntary and occasional and does not create any contractual or other right to receive future grants of Restricted Stock Units, or benefits in lieu of Restricted Stock Units, even if Restricted Stock Units have been granted in the past;
k.the Plan is established voluntarily by the Company, it is discretionary in nature, and it may be modified, amended, suspended, or terminated by the Company at any time, to the extent permitted by the Plan;
l.the grant of RSUs and the Employee’s participation in the Plan shall not create a right to employment or other service or be interpreted as forming an employment or service contract with the Company and shall not interfere with the ability of the Employer to terminate the Employee’s employment or other service relationship (if any) at any time;
m.unless otherwise provided in the Plan or by the Company in its discretion or [in the  Agreement and Plan of Merger, dated as of March 25, 2021, by and among the Company, II-VI Incorporated and Watson Merger Sub Inc.], the RSUs and the benefits evidenced by this Agreement do not create any entitlement to have the RSUs or any such benefits transferred to, or assumed by, another company nor be exchanged, cashed out or substituted for, in connection with any corporate transaction affecting the Shares; and
n.neither the Company, the Employer nor any Subsidiary shall be liable for any foreign exchange rate fluctuation between the Employee’s local currency and the United States Dollar that may affect the value of the RSUs or of any amounts due to the Employee pursuant to the settlement of the RSUs or the subsequent sale of any Shares acquired upon settlement. 
9.Data Privacy Information and Consent.  
a.Data Collection and Usage.  The Company and the Employer may collect, process and use certain personal information about the Employee, including, but not limited to, the Employee’s name, home address, telephone number, email address, date of birth, social insurance number, passport or other identification number, salary, nationality, job title, any Shares or directorships held in the Company, details of all awards granted under the Plan or any other entitlement to Shares awarded, canceled, exercised, vested, unvested or outstanding in the Employee’s favor (“Data”), for the purposes of implementing, administering and managing the Employee’s participation in the Plan.  The legal basis, where required, for the processing of Data is the Employee’s consent.
b.Stock Plan Administration Service Providers.  The Company transfers Data to E*TRADE Financial Corporate Services, Inc. and certain of its affiliated companies (“E*TRADE”), an independent service provider based in the United States which is assisting the Company with the implementation, administration and management of the Plan.  The Company may select a different service provider or additional service providers and share Data with such other provider serving in a similar manner. The Employee may be asked to agree on separate terms and data processing practices with the service provider, with such agreement being a condition to the ability to participate in the Plan.
c.International Data Transfers.  The Company and E*TRADE are based in the United States.  The Employee’s country or jurisdiction may have different data privacy laws and protections than the United States.  The Company’s legal basis for the transfer of Data, where required, is the Employee’s consent.
d.Data Retention.  The Company will hold and use Data only as long as is necessary to implement, administer and manage the Employee’s participation in the Plan, or as required to comply with legal or regulatory obligations, including under tax and security laws.
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e.Voluntariness and Consequences of Consent Denial or Withdrawal.  Participation in the Plan is voluntary and the Employee is providing the consents herein on a purely voluntary basis.  If the Employee does not consent, or if the Employee later seeks to revoke the consent, his or her salary from or employment with the Employer will not be affected; the only consequence of refusing or withdrawing the consent is that the Company would not be able to grant the Employee awards under the Plan or administer or maintain such awards. 
f.Data Subject Rights.  The Employee may have a number of rights under data privacy laws in his or her jurisdiction.  Depending on where the Employee is based, such rights may include the right to (i) request access to or copies of Data the Company processes, (ii) rectify incorrect Data, (iii) delete Data, (iv) restrict the processing of Data, (v) restrict the portability of Data, (vi) lodge complaints with competent authorities in the Employee’s jurisdiction, and/or (vii) receive a list with the names and addresses of any potential recipients of Data.  To receive clarification regarding these rights or to exercise these rights, the Employee can contact his or her local human resources representative.
g.Additional Legal Basis.  The Employee understands that the Company may rely on a different legal basis for the collection, processing or transfer of Data in the future and/or request the Employee to provide another data privacy consent.  If applicable, upon request of the Company or the Employer, the Employee agrees to provide an executed data privacy consent form to the Company and/or the Employer (or any other agreements or consents that may be required by the Company and/or the Employer) that the Company and/or the Employer may deem necessary to obtain from the Employee for the purpose of administering his or her participation in the Plan in compliance with the applicable data privacy laws, either now or in the future.  The Employee understands and agrees that he or she will not be able to participate in the Plan if he or she fails to provide any such consent or agreement requested by the Company and/or the Employer.
10.No Advice Regarding Grant.  The Company is not providing any tax, legal, or financial advice, nor is the Company making any recommendations regarding the Employee’s participation in the Plan or the Employee’s acquisition or sale of Shares.  The Employee should therefore consult with his or her own personal tax, legal, and financial advisors regarding the Employee’s participation in the Plan before taking any action related to the Plan.
11.Language.  The Employee has received the terms and conditions of this Agreement and any other related communications, and the Employee consents to having received these documents, in English.  If the Employee has received this Agreement or any other communications related to the Plan translated into a language other than English, and if the meaning of the translated version is different from the English version, the English version will control.
12.Electronic Delivery & Acceptance.  The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means.  The Employee hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.
13.Address for Notices.  Any notice to be given to the Company under the terms of this Agreement shall be addressed to the Company, in care of Stock Plan Administration at Coherent, Inc., 5100 Patrick Henry Drive, Santa Clara, CA 95054 U.S.A., or at such other address as the Company may hereafter designate in writing.
14.Conditions for Issuance of Shares.  The Shares deliverable upon vesting of the RSUs may be either previously authorized but unissued Shares or issued Shares that have been reacquired by the Company.  The Company shall not be required to issue any Shares hereunder prior to fulfillment of all the following conditions:  (a) the admission of such Shares to listing on all stock exchanges on which the class of stock is then listed; (b) the completion of any registration or other qualification of such Shares under any law or under the rulings or regulations of the United States Securities and Exchange Commission or any other governmental regulatory body, whether in the United States or elsewhere, which the Company shall, in its absolute discretion, deem necessary or advisable; (c) the obtaining of any approval or other clearance from any governmental agency, which the Company shall, in its absolute discretion, determine to be necessary or advisable;  (d) the lapse of such reasonable period of time following the date of vesting of the RSUs as the Company may establish from time to time for legal or administrative reasons; (e) the execution of the Appendix by the Employee and the acknowledgement of the Appendix by the Employee’s attorney; and (f) compliance with the terms of the Agreement, including, without limitation the Appendix.
15.Plan Governs.  This Agreement is subject to all terms and provisions of the Plan.  In the event of a conflict between one or more provisions of this Agreement and one or more provisions of the Plan, the provisions of the Plan shall govern except that the Governing Law and Venue provisions of the Appendix shall govern rather than 
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the Choice of Law and Venue provision of the Plan and jurisdiction and venue of the state and federal courts located in the State of Delaware shall be exclusive.  
16.Captions.  Captions provided herein are for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.
17.Agreement Severable.  In the event that any provision in this Agreement shall be held invalid or unenforceable, such provision shall be severable from, and such invalidity or unenforceability shall not be construed to have any effect on, the remaining provisions of this Agreement.
18.Modifications to the Agreement.  This Agreement (including any appendices attached hereto) constitutes the entire understanding of the parties on the subjects covered.  The Employee expressly warrants that he or she is not executing this Agreement in reliance on any promises, representations, or inducements other than those contained herein. Subject to paragraph 21 below, modifications to this Agreement or the Plan can be made only in an express written contract executed by a duly authorized officer of the Company.
19.Governing Law and Venue.  The RSU grant and the provisions of this Agreement will be governed by, and subject to, the internal substantive laws, but not the choice of law rules, of the State of Delaware.  For purposes of litigating any dispute that arises directly or indirectly from the relationship of the parties evidenced by the grant or this Agreement, the parties hereby submit to and consent to the exclusive jurisdiction of the State of Delaware and agree that such litigation shall be conducted only in the courts of Delaware, and no other courts, where this grant is made and/or to be performed.   The Governing Law and Venue provision set forth in the Appendix shall govern.
20.Appendix.  Notwithstanding any provisions in this Agreement, the RSU grant shall be subject to any additional terms and conditions set forth in the Appendix and the Appendix is an integral part of this Agreement.  
21.Imposition of Other Requirements.  The Company reserves the right to impose other requirements on the Employee’s participation in the Plan, on the RSUs, and on any Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable for legal or administrative reasons, and to require the Employee to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.
22.Insider Trading Restrictions/Market Abuse Laws.  By participating in the Plan, the Employee agrees to comply with the Company’s policy on insider trading (to the extent that it is applicable to the Employee). The Employee acknowledges that, depending on his or her country or the broker’s country, or the country in which the Shares are listed, the Employee may be subject to insider trading restrictions and/or market abuse laws in applicable jurisdictions, which may affect his or her ability to accept, acquire, sell or attempt to sell, or otherwise dispose of the Shares, rights to Shares (e.g., the RSUs) or rights linked to the value of Shares, during such times as the Employee is considered to have “inside information” regarding the Company (as defined by the laws or regulations in applicable jurisdictions, including the United States and, if different, the Employee’s country).  Local insider trading laws and regulations may prohibit the cancellation or amendment of orders the Employee placed before possessing inside information.  Furthermore, the Employee may be prohibited from (i) disclosing insider information to any third party, including fellow employees or service providers (other than on a “need-to-know” basis) and (ii) “tipping” third parties or causing them to otherwise buy or sell securities.  Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Company insider trading policy.  The Employee acknowledges that it is the Employee’s responsibility to comply with any applicable restrictions, and the Employee should speak to his or her personal advisor on this matter.
23.Foreign Asset/Account Reporting Requirements.  The Employee acknowledges that there may be certain foreign asset and/or account reporting requirements which may affect his or her ability to acquire or hold the Shares acquired under the Plan or cash received from participating in the Plan (including from any dividends paid on the Shares) in a brokerage or bank account outside his or her country.  The Employee may be required to report such accounts, assets or transactions to the tax or other authorities in his or her country.  The Employee also may be required to repatriate sale proceeds or other funds received as a result of participating in the Plan to his or her country through a designated bank or broker within a certain time from receipt. The Employee acknowledges that it is his or her responsibility to be compliant with such regulations.
24.Waiver.  The Employee acknowledges that a waiver by the Company of breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by the Employee or any other Participants.
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COHERENT
EQUITY INCENTIVE PLAN
APPENDIX

Certain capitalized terms used but not defined in this Appendix have the meanings set forth in the Plan, the Notice of Grant and/or the Global Restricted Stock Unit Agreement.
This Appendix includes additional terms and conditions that govern the RSUs to the Employee under the Plan 
1.    Restrictive Covenants. In consideration for the award of RSUs with respect to ______ Shares as set forth in the Notice of Grant and this Agreement and subject to the terms contained herein [and any other consideration], Employee hereby agrees to the restrictive covenants set forth in this Appendix.
A.The Company’s Legitimate Business Interests. Employee acknowledges and agrees that the Company has legitimate business interests in protecting: (i) the Confidential Information and trade secrets to which the Company furnishes Employee and to which Employee has access to during Employee’s employment with the Company; (ii) the Company’s substantial relationships with its customers, vendors, contractors, consultants, and licensees; (iii) customer goodwill; and (iv) the Company’s relationship and goodwill with its employees.  Employee further acknowledges and agrees that due to the nature of Employee’s position with the Company, Employee would inevitably give a competitor an unfair competitive advantage if Employee were to engage in Prohibited Activity as defined below or use certain Confidential Information, trade secrets and goodwill entrusted to Employee by the Company for the benefit of a competitor. To protect these legitimate business interests of the Company, Employee agrees to the provisions in this Appendix.
B.Noncompetition with Company’s Legitimate Business Interests. 
Because of Company’s legitimate business interest as described in this Appendix and the good and valuable consideration offered to the Employee, during the term of Employee’s employment and for [18 months][two years] to follow, to run consecutively, beginning on the last day of the Employee’s employment with the Company, whether terminated for any reason or no reason, by the Employee or the Company, the Employee agrees and covenants not to engage in Prohibited Activity. 
“Prohibited Activity” is activity in which the Employee contributes the Employee’s knowledge, directly or indirectly, in whole or in part, as an employee, employer, owner, operator, manager, advisor, consultant, contractor, agent, partner, director, stockholder, officer, volunteer, intern, or any other similar capacity to [an entity competitive with the current or reasonably anticipated business of the Company, including, without limitation, the laser industry or the photonics industry.  Prohibited Activity also includes activity that may require or inevitably require disclosure of trade secrets, proprietary information, or Confidential Information] [any of the following entities, their subsidiaries or other affiliates or successors: (i) Lumentum Holdings Inc., (ii) MKS Instruments, Inc., (iii) Novanta Inc., (iv) IPG Photonics Corporation, (v) nLight, Inc., (vi) TRUMPF GmbH & Co. KG, (vii) Wuhan Raycus Fiber Laser Technologies Co., Ltd., (viii) Pavillion Integration Corporation, (ix) Amplitude Laser Group, (x) Light Conversion (a Lithuania company), (xi) Applied Materials, Inc., or (xii) KLA Corporation].  
Nothing in this Agreement shall prohibit Employee from purchasing or owning less than five percent (5%) of the publicly traded securities of any corporation, provided that such ownership represents a passive investment and that the Employee is not a controlling person of, or a member of a group that controls, such corporation.
C.Non-Solicitation of Customers. During Employee’s employment with the Company and for a period of [18 months][2 years] following Employee’s resignation, involuntary termination, or other separation from the Company, Employee will not, directly or indirectly: (i) cause or encourage any of the Company’s Customers to refrain from purchasing the Company’s products or services; (ii) solicit, influence, or attempt to influence any of the Company’s Customers to direct any purchase of products and/or services to any person or entity engaging in a business that is the same, substantially similar, or a substitute for the Company’s business; or (iii) solicit, influence, or attempt to influence any of the Company’s Customers to terminate their relationship or diminish the level of their business with the Company.
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D.Non-Solicitation of Company Employees. During Employee’s employment with the Company and for a period of [18 months][2 years] following Employee’s resignation, involuntary termination, or other separation from the Company, Employee will not, directly or indirectly, for Employee or [any third party other than the Company] [any  party with which the Employee has a relationship], solicit, induce, recruit, or encourage any of the Company’s employees to leave their employment with the Company, or attempt to solicit, induce, recruit, or encourage any Company employees to leave their employment with the Company[; provided, however, general advertising not specifically targeted at any employee of the Company shall not violate this covenant and this covenant shall not apply with respect to any individual whose employment or other engagement with the Company has been terminated for a period of 6 months or longer].
E.Non-Solicitation of Other Parties. During Employee’s employment with the Company and for a period of [18 months][2 years] following Employee’s resignation, involuntary termination, or other separation from the Company, Employee will not, directly or indirectly, for Employee or any third party other than the Company, solicit, induce, or encourage any vendor, consultant, collaborator, agent, contractor, or licensee of the Company to cease or diminish its business relationship with the Company or engage in any activity that would cause them to cease or diminish their business relationship with the Company.
F.Definitions. 
i.“Customers” are defined as persons who, during the last 18 months of Employee’s employment with the Company, have purchased or used the Company’s products or services or have otherwise caused or referred others to purchase or use the Company’s products or services. “Customers” include both a business or organization, as well as the individual persons who have some responsibility for making or influencing the purchasing and use decisions of a business or organization with respect to the Company’s products or services.
ii.“Confidential Information” shall mean any and all technical and non-technical confidential knowledge, data or information related to the business of the Company or to the business of any parent, subsidiary, affiliate, customer or vendor of the Company or any other party with whom the Company agrees to hold information of such party in confidence, including without limitation: (a) trade secrets, inventions, ideas, processes, computer source and object code, data, formulae, programs, other works of authorship, know-how, improvements, discoveries, developments, designs and techniques; (b) information regarding products, services, plans for research and development, marketing and business plans, budgets, financials statements, contracts, prices, suppliers and customers; (c) internal Company records documenting the job performance, skills, evaluations, and compensation of the Company’s employees, contractors and any other service providers of the Company; and (d) the existence of any business discussions, negotiations or agreements between the Company and any third party.  Without in any way limiting the foregoing, Confidential Information explicitly includes the Company’s list of its current and potential customers.  [Notwithstanding the foregoing, Confidential Information does not include any knowledge, data or information to the extent the same has become publicly known and made generally available through no wrongful act of Employee or others.]  Employee understands that the Company has invested, and continues to invest substantial time, money, and specialized knowledge into developing its Confidential Information by developing its sources, creating a customer base, generating customer and potential customer lists, and training its employees. Employee understands and acknowledges that as a result of these efforts, the Company has created, and continues to use and create Confidential Information. The Confidential Information provides the Company with a competitive advantage over others in the marketplace. 
G.Notice to Third Parties. Employee agrees that for so long as Employee is subject to the noncompetition and non-solicitation restrictions under this Agreement, Employee shall inform any entity or person with whom Employee may seek to enter into a business relationship (whether as an owner, Employee, independent contractor or otherwise) of Employee’s contractual obligations under this Agreement. Employee also understands and agrees that the Company may, with or without prior notice to Employee and during or after Employee’s employment with the Company, notify third parties of Employee’s agreements and obligations under this Agreement.  Employee further agrees that, upon written request by the Company, Employee will respond to the Company in writing regarding Employee’s compliance with all terms of this Appendix.
H.Defend Trade Secrets Act. Pursuant to the Defend Trade Secrets Act of 2016, 18 U.S.C. § 1833(b)(1), Employee acknowledges that Employee shall not have criminal or civil liability under any federal or state trade secret law for the disclosure of a trade secret that (A) is made (i) in confidence to a federal, state, or 
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local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  
I.No Defense. Employee agrees and acknowledges that the existence of any counterclaim or dispute between Employee and the Company or any of its officers, directors, or limited partners shall not constitute a defense to the enforcement of these covenants by the Company.

J.Tolling. In the event that Employee breaches any of the restrictive covenants as set forth in Paragraph (B) to Paragraph (E), the periods of noncompetition and non-solicitation described in Paragraph (B) through Paragraph (E) will be extended by an amount of additional time equal to the lesser period of (i) two years or (ii) the amount of time between when such breach commenced and ending when the activities constituting such breach ended.

K.Modification of Restrictive Covenants. If, in any judicial proceeding, a court refuses to enforce any of these separate covenants (or any part of a covenant), then the unenforceable covenant (or part) will be eliminated from this Appendix to the extent necessary to permit the remaining separate covenants (or portions) to be enforced. In the event that the provisions of this Appendix are deemed to exceed the time, geographic, or scope limitations permitted by law, then the provisions will be reformed to the maximum time, geographic, or scope limitations permitted by law.
2.    Governing Law and Venue. This RSU, including in particular the terms of this Appendix, for all purposes, shall be governed by, construed and enforced and the legality and validity of each term and condition shall be determined in accordance with internal, substantive laws of the State of Delaware without regard to conflicts of law principles. Any action or proceeding by either Employee or the Company to enforce or avoid this Agreement, including, without limitation, the terms of this Appendix or the RSU, or otherwise arising from or under the terms of this Agreement, shall be brought only in a state or federal court located in the State of Delaware.   Employee irrevocably submits to the sole and exclusive jurisdiction of the United States District Court for the District of Delaware and the state courts of the State of Delaware for the purposes of any suit, action or other proceeding arising out of this Agreement including, without limitation, this Appendix or the RSU or otherwise arising from or under the terms of this Agreement.  Employee irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or proceeding arising out of this Agreement including, without limitation, this Appendix or the RSU or otherwise arising from or under the terms of this Agreement in the United States District Court for the District of Delaware or the state courts of the State of Delaware, acknowledge the propriety of the venue there, and hereby irrevocably and unconditionally waive and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in such court has been brought in an inconvenient forum. 
3.    Acknowledgement that Restrictive Covenants are Not a Condition of Employment and Representation by Counsel. Employee acknowledges that Employee has carefully read this Agreement including, without limitation, the Appendix and consulted with legal counsel of Employee’s choosing regarding its contents, has given careful consideration to the restraints imposed upon Employee by this Appendix and is in full accord as to their necessity for the reasonable and proper protection of confidential and proprietary information of the Company now existing or to be developed in the future.  Employee acknowledges that Employee has consulted with counsel and is individually represented in negotiating the terms of this Agreement, which includes the section designating the venue in which a controversy arising hereunder may be adjudicated and the choice of law to be applied hereto.
Employee understands, acknowledges and agrees that (i) Employee has no obligation to accept this RSU award and Employee’s decision to do so by signing this Appendix is knowing and voluntary; and (ii) agreeing to the restrictive covenants contained in this Appendix is not a condition of employment and the continuation of Employee’s employment will not depend on whether Employee agrees to the restrictive covenants.   The agreement to the restrictive covenants in this Appendix is in consideration of the RSUs set forth in the Notice of Grant and this Agreement [and any other consideration].   Employee acknowledges and agrees that Employee was represented by counsel in connection with the negotiation of this Agreement, namely [attorney name], including without limitation the specific negotiation of this Appendix, including its application to the RSUs with respect to governing law and venue.   Employee acknowledges that the Company is incorporated in Delaware.  Employee acknowledges and agrees that the RSUs will be subject to restrictive covenants, governing law, and dispute provisions set forth therein, to which Employee shall be bound in all respects. Employee further acknowledges and agrees that pursuant to Section 925 of the California Labor Code, (i)  Employee has waived the application of California law to this Agreement and the RSUs, including without limitation, the restrictive covenants contained in this Appendix, and any proceeding related thereto, (ii)  Employee has waived any right to have any proceeding adjudicated in California, and (iii) Employee acknowledges and agrees that any proceeding shall not be deemed to be a controversy arising in California.
A-3

IN WITNESS WHEREOF, the Employee and the Company have executed this Agreement including the Appendix as of the dates indicated below.

COHERENT, INC.                                                                           EMPLOYEE
By:______________________                               
Its: ______________________                                                        _____________________    
Dated: ____________________                          Dated: _________________    

I acknowledge that I represented [Employee] individually as legal counsel in negotiating the terms of this Agreement including, without limitation, this Appendix. 

______________________________
[Attorney]

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