Document:

Exhibit

PERFORMANCE UNIT AWARD AGREEMENT
LONG-TERM VESTING FORM
(Under the Connecticut Water Service, Inc.
2014 Performance Stock Program)

THIS AGREEMENT, made and entered into as of the XXth day of January, 20XX (the “Grant Date”) by and between CONNECTICUT WATER SERVICE, INC., a Connecticut corporation, (the “Company”), and First Name Last Name (the “Participant”).

W I T N E S S E T H:

WHEREAS, the Company has determined that the Participant is an Eligible Person under the Company’s 2014 Performance Stock Program (the “Plan”); and

WHEREAS, the Company’s Compensation Committee of the Board of Directors (the “Committee”) wishes to grant to the Participant an award of Performance Share Units and/or Performance Cash Units, as hereinafter described (the “Award”);  

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

1.Capitalized Terms.  All capitalized terms not defined herein shall have the meaning ascribed to them in the Plan.  

2.Grant of Award.  

(a)Subject to the terms and conditions of the Plan and this Agreement, the Company hereby grants to the Participant an Award which shall entitle the Participant to the opportunity to earn Performance Cash Units and/or Performance Share Units upon the achievement of the Performance Goals established by the Committee, as set forth in Exhibit A to this Agreement which is incorporated herein by reference.  None of the Performance Cash Units and /or Performance Share Units granted under this Agreement may be sold, transferred, pledged, hypothecated or otherwise encumbered or disposed of until they have vested in accordance with Section 3 of this Agreement.  The Award shall be subject to forfeiture as described in Section 4 of this Agreement.

(b)In order for the Participant to be eligible to receive the Performance Cash Units and/or Performance Share Units which the Participant may otherwise earn pursuant to the Award, the Participant must execute and deliver a copy of this Agreement and a copy of Exhibit A to the Company within ten (10) business days of the date on which the Participant has received this Agreement.  In the event that this Agreement is executed by the Company and the Participant prior to the completion and execution of Exhibit A, the Company and the Participant shall complete Exhibit A within a reasonable time.  The Participant shall not be entitled to any Award under this Agreement except in accordance with the achievement of the Performance Goals based on the Performance Criteria set forth on Exhibit A to this Agreement.  

(c)At the completion of the applicable Award Period described in Exhibit A (or as promptly as practicable thereafter), the Committee shall determine the extent to which such Performance Goals have been achieved, expressed as a percentage (the “Percentage Attainment”).  The Percentage Attainment shall be used to calculate the Performance Share Units or Performance Cash Units earned with respect to Participant’s Award hereunder.  The Award shall become earned or forfeited, in whole or in part, as the case may be, as of the date of such determination.

(d)Notwithstanding the acceptance of Exhibit A by the Company and the Participant, as evidenced by their execution and attachment hereto of a copy thereof, the Performance Goals applicable to the Award may be adjusted as the Committee deems necessary or appropriate in the manner permitted by and subject to the Plan.  

3.Payment; Vesting.  

(a)The Election Form attached hereto as Exhibit B (the “Election Form”) specifies the minimum and maximum ratios of Performance Share Units and Performance Cash Units which may be elected by the Participant.  By executing the Election Form, the Participant acknowledges that such portions of the Award as the Participant elects will be paid in Performance Share Units and Performance Cash Units, as applicable.  Awards will be earned and paid to the Participant in accordance with the terms of the Plan and the Election Form.

(b)Thirty-three percent (33%) of the earned portion of the Award shall be, in the case of Performance Cash Units, paid to the Participant on the date of the Board of Directors’ meeting held in March immediately following the end of the Award Period (the “First Vesting Date”) (but in no event later than the April 1st immediately following the end of the Award Period), or in the case of Performance Share Units, credited to the Participant’s Performance Share Account on the First Vesting Date (but in no event later than the April 1st immediately following the end of the Award Period).  The remaining portion of the Award shall be paid to the Participant in cash or credited to the Participant’s Performance Share Account, as the case may be, as follows: thirty-three percent (33%) of the Award on each of the second and third anniversaries of the First Vesting Date.  In all cases, payment or crediting of all or a portion of the Award is conditioned on the Participant remaining employed by the Company or a Subsidiary on each such anniversary date.  Payment from the Participant’s Performance Share Account shall thereafter be made in accordance with the terms of the Plan and the Election Form.

(c)Notwithstanding the foregoing provisions of Section 3(b) hereof, the Award shall vest in full upon the Participant’s death or Disability while employed by the Company or a Subsidiary.  The Award shall also vest in full upon the Participant’s retirement from the Company, provided that the Committee approves such retirement.  Any Award payments made pursuant to this Section 3 shall be made in accordance with the terms of the Plan.

4.Forfeiture.  If the Participant terminates employment with the Company or a Subsidiary at any time prior to the date(s) upon which some or all of the Award vests in full as set forth in Section 3 hereof, other than because of the Participant’s death, Disability or retirement approved by the Committee, the Participant shall forfeit that portion of the Award that then remains unvested under this Agreement.  If all or any portion of the Award made hereunder should be forfeited, the Participant hereby authorizes the Company to take all actions necessary to deduct the forfeited Performance Share Units or Performance Cash Units from the Award and acknowledges that the Participant shall have no claim for such Performance Share Units or Performance Cash Units or for compensation in any form whatsoever, as a result of such forfeiture.

5.No Employment or Other Contractual Rights.  No provision of this Agreement shall: (a) confer or be deemed to confer upon the Participant any right to continue in the employ of the Company or any Subsidiary or shall in any way affect the right of the Company or any Subsidiary to dismiss or otherwise terminate the Participant’s employment at any time for any reason with or without cause, (b) be construed to impose upon the Company or any Subsidiary any liability for any forfeiture of the Award which may result under this Agreement if the Participant’s employment is so terminated, or (c) affect the Company’s right to terminate or modify any contractual relationship with the Participant if the Participant is not an employee of the Company or a Subsidiary.

6.Changes in Capitalization.  This Agreement and the issuance of the Award hereunder shall not affect in any way the right or power of the Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in the Company's capital structure or its business, or any merger or consolidation of the Company, or any issue of bonds, debentures, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceedings, whether of a similar character or otherwise.

7.No Liability for Business Acts or Omissions.  The Participant recognizes and agrees that the Board or the officers, agents or employees of the Company in their conduct of the business and affairs of the Company, may cause the Company to act, or to omit to act, in a manner that may, directly or indirectly, affect the amount of or the ability of the Participant to earn the Award under this Agreement.  No provision of this Agreement shall be interpreted or construed to impose any liability upon the Company, the Board or any officer, agent or employee of the Company for any effect on the Participant’s entitlement under the Award that may result, directly or indirectly, from any such action or omission.

8.Governing Law; Interpretation.  The terms of this Agreement shall be governed by Connecticut law, without regard to its choice of law provisions.  This Agreement shall at all times be interpreted, administered and applied in a manner consistent with the provisions of the Plan.  If any of the terms or provisions of this Agreement conflict with any terms or provisions of the Plan, then such terms or provisions shall be deemed inoperative to the extent they so conflict with the requirements of the Plan.

9.Amendment; Modification; Waiver.  No provision of this Agreement may be amended, modified or waived unless such amendment, modification or waiver shall be authorized by the Committee and shall be agreed to in writing by the Participant.  

10.Miscellaneous.  This Agreement, including Exhibit A and Exhibit B hereto and any copies thereof executed by the parties (a) contains the entire Agreement of the parties relating to the subject matter of this Agreement and supersedes any prior agreements or understandings with respect thereto; and (b) shall be binding upon and inure to the benefit of the Company, its successors and assigns and the Participant, his or her heirs, devisees and legal representatives.  In the event of the Participant’s death or a judicial determination of his or her incompetence, reference in this Agreement to the Participant shall be deemed to refer to his or her legal representative, heirs or devisees, as the case may be.  In the event of a conflict between the terms of this Agreement and the Plan, the terms of the Plan shall govern.

[Signature page follows]

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date first written above.  

Participant            CONNECTICUT WATER SERVICE, INC.

_____________________________    By:  ________________________________
First Name Last Name    Name: First Name Last Name
Title: 

115858807v5Exhibit 10.1

 

LINE OF CREDIT PROMISSORY NOTE

(Secured by Membership Interest Pledge Agreement
and Security Agreement)

 

 

	Date:	 	March 7,
    2017
	 	 	 
	Borrower:	 	Singular Payments, LLC, a Florida limited liability
    company
	 	 	 
	Borrower’s Mailing Address:	 	5203 Maryland Way, Suite 102
	 	 	Brentwood, Tennessee  37027
	 	 	 
	Lender:	 	Payment Data Systems, Inc., a Nevada corporation
	 	 	 
	Place for Payment:	 	12500 San Pedro, Suite 120
	 	 	San Antonio, Texas  78216

 

Principal Amount: A maximum of Five
Hundred Thousand and No/100 Dollars ($500,000.00) (the “Maximum Amount”) funded in one or more tranches at the
discretion of Borrower, subject to the terms and provisions of this Note and the other Loan Documents (as defined below). Prior
to the Maturity Date (as defined below), provided there exists no Event of Default (as defined below) and subject to the terms
and provisions hereof, Borrower may borrow, repay and re-borrow principal amounts, up to the Maximum Amount, but never in excess
of the Maximum Amount.

 

Annual Interest Rate on Unpaid Principal
Balance from Date of Funding to Maturity Date or Event of Default: From the Date this Note to the earlier of May 31, 2017,
the date of the closing and funding of the Proposed Transaction (as defined below), or the termination of the Letter of Intent
(as defined below) (the earlier of such three events shall be referred to hereinafter as the “Interest Start Date”),
or such extended date if Lender and Borrower mutually agree in writing upon an extension of the Initial Start Date, in their sole
discretion with no duty or obligation to so extend (if any, the “Extended Interest Start Date”), the unpaid
Principal Amount shall not bear interest. Beginning on the Interest Start Date or Extended Interest Start Date, if any, and continuing
thereafter until the earlier of the Maturity Date or an Event of Default,, the unpaid Principal Amount and all other amounts payable
under this Note shall bear interest at ten percent (10.0%) per annum.

 

Annual Interest Rate After Maturity
Date or Event of Default: At Lender’s option, after the Maturity Date or upon an Event of Default, the unpaid Principal
Amount and all other amounts payable under this Note shall bear interest at: (a) the Maximum Lawful Rate (as defined below); or
(b) fifteen percent (15.0%) per annum.

 

Terms of Payment: From the Date
of this Note through the Interest Start Date or such Extended Start Date, if any, no payments of the unpaid Principal Amount shall
be due or payable. In the event the Proposed Transaction closes and funds on or before the Interest Start Date or Extended Start
Date, if any, the unpaid Principal Amount shall be offset against the cash portion of the purchase price of the Proposed Transaction
payable by Lender to Borrower at the date of the closing and funding of the Proposed Transaction. In the event the Proposed Transaction
does not close and fund on or before the Interest Start Date or Extended Interest Start Date, if any, the unpaid Principal Amount
shall be paid in thirty (30) equal monthly installments of principal plus accrued interest, with the first such installment due
and payable on the first day of the month following the month in which the Interest Start Date or Extended Interest Start Date,
if any, occurs, and the remaining twenty-nine (29) monthly installments continuing on the first day of each month thereafter until
the Maturity Date, when all remaining unpaid Principal Amount and accrued interest shall be due and payable. From any payments
on this Line of Credit Promissory Note (this “Note”), the accrued interest on the unpaid Principal Amount will
be deducted first, and the remainder will be applied to payment of the Principal Amount. Interest shall be calculated on the basis
of the actual number of days elapsed over a year composed of 365 days.

 

    
	Line of Credit Promissory Note	Page 1 of 6

 

     

    

Prepayments: This Note may be prepaid
in whole or in part at any time without the consent of Lender and without penalty. Any prepayments shall be applied first to the
discharge of accrued interest and then to the reduction of the unpaid Principal Amount.

 

Security for Payment: This Note
is secured by (a) a membership interest pledge agreement dated the date hereof between Borrower and Lender (the “Pledge
Agreement”) and (ii) a security agreement dated the date hereof between Borrower and Lender (the “Security Agreement”).
The Pledge Agreement, the Security Agreement and any other documents, certificates or instruments executed and delivered by Borrower
to Lender in connection with this Note and the loan described in this Note shall be collectively referred to herein as the “Loan
Documents”.

 

Maturity Date: November 1, 2019

 

Promise to Pay: FOR VALUE RECEIVED,
Borrower promises to pay to the order of Lender at the Place for Payment and according to the Terms of Payment the Principal Amount
plus interest at the rates stated above, and in accordance with all other terms, conditions and covenants of this Note and the
Loan Documents. All sums due under this Note shall be payable in lawful money of the United States.

 

Events of Default and Acceleration of
Maturity:

 

		(a)	Default. Lender may, without notice or demand (except as otherwise required by statute or
otherwise specifically provided in this Note), accelerate the maturity of this Note and declare the entire unpaid Principal Amount
and accrued interest due and payable immediately if: (i) there is a default in the payment when due of any installment of the Principal
Amount, accrued interest or any other sum required to be paid under the terms of this Note or any of the Loan Documents without
cure within the Applicable Cure Period (as defined below) occurs; or (ii) there is a default in the performance of any covenant,
condition, or agreement contained in this Note or any of the Loan Documents or any loan agreement relating to the advance of loan
proceeds and without cure within the Applicable Cure Period (in either case, an “Event of Default”). Lender
may, at its election, refuse to accept a tender in partial cure of an Event of Default.

 

    
	Line of Credit Promissory Note	Page 2 of 6

 

     

    

		(b)	Notice of Default. Notwithstanding anything in this Note to the contrary, Lender agrees
to give notice (the “Notice of Default”) to Borrower in writing of any default, and if the same is not cured
within thirty (30) calendar days for any monetary or non-monetary default from the date of such Notice of Default (the “Applicable
Cure Period”), then without further notice, presentment, demand of any kind, either: (a) acceleration of maturity hereof
may be imposed if the maturity of this Note has not been accelerated; or (b) if the maturity of this Note has been accelerated
and the default is cured as required by the Notice of Default within the Applicable Cure Period, then the acceleration will be
rescinded and the installment provisions of the Note will be reinstated. The Notice of Default will be deemed to be delivered,
whether actually received or not, when deposited in the United States mail, postage fully prepaid, certified mail, and addressed
to the intended recipient at the last known address according to the records of the holder delivering the Notice of Default. Notice
given in any other manner will be effective only if and when received by the addressee. Notwithstanding the foregoing, in the event
of two (2) monetary defaults during the term of this Note, the Applicable Cure Period for any future monetary default or defaults
following such second monetary default shall be ten (10) calendar days instead of thirty (30) calendar days.

 

Waiver by Borrower: Borrower and
all other parties liable for this Note waive demand, notice of intent to demand, presentment for payment, notice of nonpayment,
protest, notice of protest, grace, notice of dishonor, notice of intent to accelerate maturity, notice of acceleration of maturity,
and diligence in collection. Each Borrower, surety, endorser, and guarantor of this Note agrees to one or more extensions for any
period of time, and any partial payments, before or after maturity, without prejudice to the holder of this Note. Each Borrower,
surety, endorser, and guarantor waives notice of any and all renewals, extensions, and modifications of this Note.

 

No Waiver by Lender: Neither a delay
on the part of Lender in the exercise of any power or right under this Note, nor a single or partial exercise of any such power
or right, shall operate as a waiver thereof. Enforcement by Lender of any of its rights hereunder shall not constitute an election
by it of remedies so as to preclude the exercise of any other remedy available to it.

 

Collection Costs: If this Note or
any of the Loan Documents are given to any attorney for collection, or if suit is brought for collection or enforcement, or if
it is collected through probate, bankruptcy or other judicial proceeding, then Borrower shall pay Lender all costs of collection
and enforcement, including reasonable attorneys’ fees and court costs, in addition to other amounts due.

 

Maximum Lawful Interest: Regardless
of any provision contained herein or in any of the Loan Documents, interest on such debt shall not exceed the maximum amount of
non-usurious interest that may be contracted for, taken, reserved, charged or received under applicable law (the “Maximum
Lawful Rate”); any amount of interest in excess of the Maximum Lawful Rate shall be credited on the principal of the
debt or, if that has been paid, refunded. On any acceleration or required or permitted prepayment, any such excess shall be canceled
automatically as of the acceleration or prepayment or, if already paid, credited on the principal of the debt or, if the principal
of the debt has been paid, refunded. In determining whether or not the interest paid or payable, under any specific contingency,
exceeds the Maximum Lawful Rate, Borrower and Lender shall, to the maximum extent permitted under applicable law, (a) characterize
any non-principal payment as an expense, fee or premium rather than as interest, (b) exclude voluntary prepayments and the effects
thereof, and (c) spread the total amount of interest throughout the entire contemplated term hereof.

 

    
	Line of Credit Promissory Note	Page 3 of 6

 

     

    

Construction: When the context requires,
singular nouns and pronouns include the plural.

 

Assignment by Lender: Lender shall
have the right to sell, transfer or assign this Note at any time.

 

Letter of Intent: Borrower and Lender
have executed and delivered to each other a non-binding letter of intent dated the date hereof (the “Letter of Intent”)
which contemplates Lender acquiring substantially all of the membership interests of Borrower (the “Proposed Transaction”).
The obligations of Borrower under this Note and the Loan Documents are in no way conditional upon the Proposed Transaction, and
the terms, provisions and conditions if this Note and the Loan Documents shall be applicable and enforceable against Borrower regardless
of the negotiation, execution and delivery of a mutually agreeable definitive agreement for the Proposed Transaction or the closing
and funding of the Proposed Transaction.

 

APPLICABLE LAW: THIS NOTE IS DELIVERED
AND IS INTENDED TO BE PAID AND PERFORMED IN THE STATE OF TEXAS, AND THE LAWS OF SUCH STATE SHALL GOVERN THE CONSTRUCTION, VALIDITY,
ENFORCEMENT, AND INTERPRETATION HEREOF.

 

JURISDICTION AND VENUE: BORROWER
AND LENDER AGREE THAT ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATED IN ANY WAY TO THIS NOTE SHALL BE BROUGHT SOLELY IN A TEXAS
STATE COURT OF COMPETENT JURISDICTION SITTING IN SAN ANTONIO, BEXAR COUNTY, TEXAS. BORROWER HEREBY IRREVOCABLY AND UNCONDITIONALLY
CONSENTS TO THE JURISDICTION OF ANY SUCH COURT AND HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY DEFENSE OF AN INCONVENIENT
FORUM TO THE MAINTENANCE OF ANY ACTION OR PROCEEDING IN ANY SUCH COURT, ANY OBJECTION TO VENUE WITH RESPECT TO ANY SUCH ACTION
OR PROCEEDING AND ANY RIGHT OF JURISDICTION ON ACCOUNT OF THE PLACE OF RESIDENCE OR DOMICILE OF ANY PARTY THERETO.

 

PAYABLE IN FULL AT MATURITY DATE:
THIS LOAN IS PAYABLE IN FULL AT THE MATURITY DATE. AT THE MATURITY DATE, BORROWER MUST REPAY THE ENTIRE UNPAID PRINCIPAL AMOUNT
AND UNPAID INTEREST THEN DUE. LENDER IS UNDER NO OBLIGATION TO REFINANCE THE NOTE AT THAT TIME. BORROWER WILL, THEREFORE, BE REQUIRED
TO MAKE PAYMENT OUT OF OTHER ASSETS THAT BORROWER MAY OWN, OR BORROWER WILL HAVE TO FIND A LENDER, WHICH MAY BE THE LENDER YOU
HAVE THIS LOAN WITH, WILLING TO LEND BORROWER THE MONEY. IF BORROWER REFINANCES THIS NOTE AT THE MATURITY DATE, BORROWER MAY HAVE
TO PAY SOME OR ALL OF THE CLOSING COSTS NORMALLY ASSOCIATED WITH A NEW LOAN EVEN IF BORROWER OBTAINS REFINANCING FROM THE SAME
LENDER.

 

    
	Line of Credit Promissory Note	Page 4 of 6

 

     

    

FINAL
AGREEMENT: THIS NOTE REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS,
OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

 

[SIGNATURE PAGE FOLLOWS]

 

 

 

 

    
	Line of Credit Promissory Note	Page 5 of 6

 

     

    

 

	 	BORROWER:
	 	 	 
	 	 	 
	 	SINGULAR PAYMENTS, LLC,
	 	a Florida limited liability company
	 	 	 
	 	 	 
	 	By:	/s/Vaden Landers
	 	 	Vaden Landers, President

 

 

 

 

 

 

 

	Line of Credit Promissory Note	Page 6 of 6

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