Document:

Pledge Agreement, dated as of May 6, 2011

 Exhibit 10.3 
 EXECUTION VERSION 
 PLEDGE AGREEMENT 

THIS PLEDGE AGREEMENT (this “Pledge Agreement”) dated as of May 6, 2011 is by and among the parties identified as
“Pledgors” and such other parties as may become Pledgors hereunder after the date hereof (individually a “Pledgor”, and collectively the “Pledgors”) and JPMORGAN CHASE BANK, N.A., as administrative agent
(in such capacity, the “Administrative Agent”) for the holders of the Secured Obligations referenced below. 

WITNESSETH 

WHEREAS, a revolving credit facility and a term loan facility of up to $450,000,000 have been established in favor of iPayment, Inc., a
Delaware corporation (the “Borrower”), pursuant to the terms of that Credit Agreement (as amended, restated, modified, supplemented and extended from time to time, the “Agreement”) dated as of the date hereof among
the Borrower, the Guarantors identified therein, the Lenders identified therein and JPMorgan Chase Bank, N.A., as Administrative Agent; and 
 WHEREAS, this Pledge Agreement is required under the terms of the Agreement. 

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

(a) Capitalized terms used and not otherwise defined herein shall have the meanings provided in the Agreement. 

(b) As used herein, the following terms shall have the meanings assigned thereto in the Uniform Commercial Code in effect
in the State of New York on the date hereof: Financial Asset, Proceeds and Security. 
 (c) As used herein, the
following terms shall have the meanings set forth below: 
 “Non-Voting Equity” has the meaning provided in
Section 2 hereof. 
 “Pledged Collateral” has the meaning provided in Section 2 hereof. 

“Pledged Shares” has the meaning provided in Section 2 hereof. 

 “Secured Obligations” means, without duplication, (a) all of the
Obligations and (b) all costs and expenses incurred in connection with enforcement and collection of the Obligations, including reasonable attorneys’ fees. 
 “UCC” means the Uniform Commercial Code. 
 “Voting
Equity” has the meaning provided in Section 2 hereof. 
 2. Pledge and Grant of Security Interest. To
secure the prompt payment and performance in full when due, whether by lapse of time, acceleration, mandatory prepayment or otherwise, of the Secured Obligations, each Pledgor hereby grants, pledges and assigns to the Administrative Agent, for the
benefit of the holders of the Secured Obligations, a continuing security interest in, and a right to set-off against, any and all right, title and interest of such Pledgor in and to the following, whether now owned or existing or owned, acquired, or
arising hereafter (collectively, the “Pledged Collateral”): 
 (a) Pledged Shares.
(i) One hundred percent (100%) (or, if less, the full amount owned by such Pledgor) of the issued and outstanding Equity Interests of each Domestic Subsidiary in existence on the date hereof, including without limitation each such
Subsidiary set forth on Schedule 2(a) attached hereto and (ii) sixty-five percent (65%) (or, if less, the full amount owned by such Pledgor) of the issued and outstanding shares of Equity Interests entitled to vote (within the meaning of
Treas. Reg. Section 1.956-2(c)(2)) (“Voting Equity”) and one hundred percent (100%) of the issued and outstanding Equity Interests not entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2))
(“Non-Voting Equity”) owned by such Pledgor of each Foreign Subsidiary in existence on the date hereof, including without limitation each such Subsidiary set forth on Schedule 2(a) attached hereto, in each case together with the
certificates (or other agreements or instruments), if any, representing such Equity Interests , and all options and other rights, contractual or otherwise, with respect thereto (collectively, together with the Equity Interests described in Sections
2(b) and 2(c) below, the “Pledged Shares”), including, but not limited to, the following: 
 (i)
all shares, securities, membership interests or other equity interests representing a dividend on any of the Pledged Shares, or representing a distribution or return of capital upon or in respect of the Pledged Shares, or resulting from a stock
split, revision, reclassification or other exchange therefor, and any subscriptions, warrants, rights or options issued to the holder of, or otherwise in respect of, the Pledged Shares; and 

  
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 (ii) without affecting the obligations of the Pledgors under any provision
prohibiting such action hereunder or under the Agreement, in the event of any consolidation or merger involving the issuer of any Pledged Shares and in which such issuer is not the surviving entity, all Equity Interests of the successor entity
formed by or resulting from such consolidation or merger. 
 (b) Additional Shares. (i) One hundred
percent (100%) (or, if less, the full amount owned by such Pledgor) of the issued and outstanding Equity Interests of any Person that hereafter becomes a Domestic Subsidiary and (ii) sixty-five percent (65%) (or, if less, the full
amount owned by such Pledgor) of the Voting Equity and one hundred percent (100%) (or, if less, the full amount owned by such Pledgor) of the Non-Voting Equity of any Person that hereafter becomes a Foreign Subsidiary, including, without
limitation, the certificates (or other agreements or instruments) representing such Equity Interests. 
 (c)
Proceeds. All Proceeds of any and all of the foregoing. 
 Without limiting the generality of the foregoing, it is hereby
specifically understood and agreed that a Pledgor may from time to time hereafter deliver additional Equity Interests to the Administrative Agent as collateral security for the Secured Obligations. Upon delivery to the Administrative Agent, such
additional Equity Interests shall be deemed to be part of the Pledged Collateral of such Pledgor and shall be subject to the terms of this Pledge Agreement whether or not Schedule 2(a) is amended to refer to such additional Equity Interests.

 3. Security for Secured Obligations. The security interest created hereby in the Pledged Collateral of each Pledgor
constitutes continuing collateral security for all of the Secured Obligations. 
 4. Delivery of the Pledged Collateral.
Each Pledgor hereby agrees that: 
 (a) Each Pledgor shall deliver to the Administrative Agent
(i) simultaneously with or prior to the execution and delivery of this Pledge Agreement, all certificates representing the Pledged Shares of such Pledgor and (ii) promptly upon the receipt thereof by or on behalf of such Pledgor, all other
certificates and instruments constituting Pledged Collateral of such Pledgor. Prior to delivery to the Administrative Agent, all such certificates and instruments constituting Pledged Collateral of such Pledgor shall be held in trust by such Pledgor
for the benefit of the Administrative Agent and the holders of the Secured Obligations. All such certificates shall be delivered in suitable form for transfer by delivery or shall be accompanied by duly executed undated instruments of transfer

  
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or assignment in blank, substantially in the form provided in Schedule 4(a) attached hereto. 
 (b) Additional Securities. If such Pledgor shall receive by virtue of its being or having been the owner of any Pledged Collateral, any (i) certificate, including without limitation, any
certificate representing a dividend or distribution in connection with any increase or reduction of capital, reclassification, merger, consolidation, sale of assets, combination of shares or other equity interests, stock splits, spin-off or
split-off, promissory notes or other instruments; (ii) option or right, whether as an addition to, substitution for, or an exchange for, any Pledged Collateral or otherwise; (iii) dividends payable in securities; or (iv) distributions
of securities in connection with a partial or total liquidation, dissolution or reduction of capital, capital surplus or paid-in surplus, then such Pledgor shall receive such certificate, instrument, option, right or distribution in trust for the
benefit of the Administrative Agent and the holders of the Secured Obligations, shall segregate it from such Pledgor’s other property and shall deliver it forthwith to the Administrative Agent in the exact form received together with any
necessary endorsement and/or appropriate undated stock power duly executed in blank, substantially in the form provided in Schedule 4(a), to be held by the Administrative Agent as Pledged Collateral and as further collateral security far the Secured
Obligations. 
 (c) Financing Statements. Each Pledgor authorizes the Administrative Agent to file one or
more financing statements (which may describe the collateral as “all assets” or “all personal property”) disclosing the Administrative Agent’s security interest in the Pledged Collateral. Each Pledgor agrees to execute and
deliver to the Administrative Agent such financing statements and other filings as may be reasonably requested by the Administrative Agent in order to perfect and protect the security interest created hereby in the Pledged Collateral of such
Pledgor. 
 5. Representations and Warranties. Each Pledgor hereby represents and warrants to the Administrative Agent,
for the benefit of the holders of the Secured Obligations, that: 
 (a) Authorization of Pledged Shares.
The Pledged Shares are duly authorized and validly issued, are fully paid and nonassessable and are not subject to the preemptive rights of any Person. 
 (b) Title. Each Pledgor has good and indefeasible title to the Pledged Collateral of such Pledgor and is the legal and beneficial owner of such Pledged Collateral free and clear of any Lien, other
than Permitted 

  
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Liens. There exists no “adverse claim” within the meaning of Section 8-102 of the UCC with respect to the Pledged Shares of such Pledgor. 

(c) Exercising of Rights. The exercise by the Administrative Agent of its rights and remedies hereunder will not
violate any law or governmental regulation or any material contractual restriction binding on or affecting such Pledgor or any of its property. 
 (d) Pledgor’s Authority. No authorization, approval or action by, and no notice or filing with any Governmental Authority or with the issuer of any Pledged Stock is required either
(i) for the pledge made by such Pledgor or for the granting of the security interest by such Pledgor pursuant to this Pledge Agreement (except as have been already obtained) or (ii) for the exercise by the Administrative Agent or the
holders of the Secured Obligations of their rights and remedies hereunder (except as may be required by laws affecting the offering and sale of securities). 
 (e) Security Interest/Priority. This Pledge Agreement creates a valid security interest in favor of the Administrative Agent for the benefit of the holders of the Secured Obligations, in the
Pledged Collateral. The taking of possession by the Administrative Agent of the certificates representing the Pledged Shares and all other certificates and instruments constituting Pledged Collateral will perfect and establish the first priority of
such security interest in the Pledged Shares and, when properly perfected by filing under the Uniform Commercial Code, in all other Pledged Collateral securing the Secured Obligations. Except as set forth in this Section 5(e), no action is
necessary to perfect such security interest. 
 (f) Partnership and Membership Interests. Except as
previously disclosed to the Administrative Agent, none of the Pledged Shares consisting of partnership or limited liability company interests (i) is dealt in or traded on a securities exchange or in a securities market, (ii) by its terms
expressly provides that it is a security governed by Article 8 of the UCC, (iii) is an investment company security, (iv) is held in a securities account or (v) constitutes a Security or a Financial Asset. 

6. Covenants. Each Pledgor hereby covenants, that so long as any of the Secured Obligations remains outstanding and until all of
the commitments relating thereto have been terminated, such Pledgor shall: 
 (a) Defense of Title.
Warrant and defend title to and ownership of the Pledged Collateral of such Pledgor at its own expense against the claims and demands of all other parties claiming an interest therein, keep the Pledged Collateral free from all Liens, except for
Permitted Liens, and not sell, exchange, transfer, assign, lease or otherwise dispose of Pledged 

  
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Collateral of such Pledgor or any interest therein, except as permitted under the Agreement and the other Loan Documents. 

(b) Further Assurances. Promptly execute and deliver at its expense all further instruments and documents and take
all further action that may be necessary and desirable or that the Administrative Agent may reasonably request in order to (i) perfect and protect the security interest created hereby in the Pledged Collateral of such Pledgor (including,
without limitation, any and all action necessary to satisfy the Administrative Agent that the Administrative Agent has obtained a first priority perfected security interest in all Pledged Collateral); (ii) enable the Administrative Agent to
exercise and enforce its rights and remedies hereunder in respect of the Pledged Collateral of such Pledgor; and (iii) otherwise effect the purposes of this Pledge Agreement, including, without limitation and if requested by the Administrative
Agent, delivering to the Administrative Agent irrevocable proxies in respect of the Pledged Collateral of such Pledgor. 
 (c) Amendments. Not make or consent to any amendment or other modification or waiver with respect to any of the Pledged Collateral of such Pledgor or enter into any agreement or allow to exist any
restriction with respect to any of the Pledged Collateral of such Pledgor other than pursuant hereto or as may be permitted under the Agreement and the other Loan Documents. 

(d) Compliance with Securities Laws. File all reports and other information now or hereafter required to be filed
by such Pledgor with the United States Securities and Exchange Commission and any other state, federal or foreign agency in connection with the ownership of the Pledged Collateral of such Pledgor. 

(e) Issuance or Acquisition of Equity Interests. Not, without executing and delivering, or causing to be executed
and delivered, to the Administrative Agent such agreements, documents and instruments as the Administrative Agent may require, issue or acquire any Equity Interests consisting of an interest in a partnership or a limited liability company that
(i) is dealt in or traded on a securities exchange or in a securities market, (ii) by its terms expressly provides that it is a security governed by Article 8 of the UCC, (iii) is an investment company security, (iv) is held in a
securities account or (v) constitutes a Security or a Financial Asset. 
 7. Advances by Holders of the Secured
Obligations. On failure of any Pledgor to perform any of the covenants and agreements contained herein, the Administrative Agent may, at its sole option and in its sole discretion, perform the same and in so doing may expend such sums as the
Administrative Agent may 

  
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reasonably deem advisable in the performance thereof, including, without limitation, the payment of any insurance premiums, the payment of any taxes, a payment to obtain a release of a Lien or
potential Lien, expenditures made in defending against any adverse claim and all other expenditures that the Administrative Agent may make for the protection of the security hereof or may be compelled to make by operation of law. All such sums and
amounts so expended shall be repayable by the Pledgors on a joint and several basis promptly upon timely notice thereof and demand therefor, shall constitute additional Secured Obligations and shall bear interest from the date said amounts are
expended at the Default Rate for Base Rate Term Loans. No such performance of any covenant or agreement by the Administrative Agent, and no such advance or expenditure therefor, shall relieve the Pledgors of any default under the terms of this
Pledge Agreement, the other Loan Documents or any other documents relating to the Secured Obligations. The Administrative Agent may make any payment hereby authorized in accordance with any bill, statement or estimate procured from the appropriate
public office or holder of the claim to be discharged without inquiry into the accuracy of such bill, statement or estimate or into the validity of any tax assessment, sale, forfeiture, tax lien, title or claim except to the extent such payment is
being contested in good faith by a Pledgor in appropriate proceedings and against which adequate reserves are being maintained in accordance with GAAP. 
 8. Remedies. 
 (a) General Remedies. Upon the
occurrence of an Event of Default and during the continuation thereof, the Administrative Agent and the holders of the Secured Obligations shall have, in addition to the rights and remedies provided herein, in the Loan Documents, in any other
documents relating to the Secured Obligations, or by law (including, without limitation, levy of attachment and garnishment), the rights and remedies of a secured party under the UCC of the jurisdiction applicable to the affected Pledged Collateral.

 (b) Sale of Pledged Collateral. Upon the occurrence of an Event of Default and during the continuation
thereof, without limiting the generality of this Section 8 and without notice, the Administrative Agent may, in its sole discretion, sell or otherwise dispose of or realize upon the Pledged Collateral, or any part thereof, in one or more
parcels, at public or private sale, at any exchange or broker’s board or elsewhere, at such price or prices and on such other terms as the Administrative Agent may deem commercially reasonable, for cash, credit or for future delivery or
otherwise in accordance with applicable law. To the extent permitted by law, any holder of the Secured Obligations may in such event, bid for the purchase of such securities. Each Pledgor agrees that, to the extent notice of sale shall be required
by law and has not been waived by such Pledgor, 

  
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any requirement of reasonable notice shall be met if notice, specifying the place of any public sale or the time after which any private sale is to be made, is personally served on or mailed,
postage prepaid, to such Pledgor, in accordance with the notice provisions of Section 11.02 of the Agreement at least ten (10) days before the time of such sale. The Administrative Agent shall not be obligated to make any sale of Pledged
Collateral of such Pledgor regardless of notice of sale having been given. The Administrative Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further
notice, be made at the time and place to which it was so adjourned. 
 (c) Private Sale. Upon the
occurrence of an Event of Default and during the continuation thereof, the Pledgors recognize that the Administrative Agent may deem it impracticable to effect a public sale of all or any part of the Pledged Shares or any of the securities
constituting Pledged Collateral and that the Administrative Agent may, therefore, determine to make one or more private sales of any such Pledged Collateral to a restricted group of purchasers who will be obligated to agree, among other things, to
acquire such Pledged Collateral for their own account, for investment and not with a view to the distribution or resale thereof. Each Pledgor acknowledges that any such private sale may be at prices and on terms less favorable to the seller than the
prices and other terms that might have been obtained at a public sale and, notwithstanding the foregoing, agrees that such private sale shall be deemed to have been made in a commercially reasonable manner and that the Administrative Agent shall
have no obligation to delay sale of any such Pledged Collateral for the period of time necessary to permit the issuer of such Pledged Collateral to register such Pledged Collateral for public sale under the Securities Act. Each Pledgor further
acknowledges and agrees that any offer to sell such Pledged Collateral that has been (i) publicly advertised on a bona fide basis in a newspaper or other publication of general circulation in the financial community of New York, New York (to
the extent that such offer may be advertised without prior registration under the Securities Act), or (ii) made privately in the manner described above shall be deemed to involve a “public sale” under the UCC, notwithstanding that
such sale may not constitute a “public offering” under the Securities Act, and the Administrative Agent may, in such event, bid for the purchase of such Pledged Collateral. 

(d) Retention of Pledged Collateral. To the extent permitted under applicable law, in addition to the rights and
remedies hereunder, upon the occurrence of an Event of Default, the Administrative Agent may, after providing the notices required by Sections 9-620 and 9-621 of the UCC or otherwise complying with the requirements of applicable law of

  
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the relevant jurisdiction, accept or retain all or any portion of the Pledged Collateral in satisfaction of the Secured Obligations. Unless and until the Administrative Agent shall have provided
such notices, however, the Administrative Agent shall not be deemed to have accepted or retained any Pledged Collateral in satisfaction of any Secured Obligations for any reason. 

(e) Deficiency. In the event that the proceeds of any sale, collection or realization are insufficient to pay all
amounts to which the Administrative Agent or the holders of the Secured Obligations are legally entitled, the Pledgors shall be jointly and severally liable for the deficiency, together with interest thereon at the Default Rate for Base Rate Term
Loans, together with the costs of collection and reasonable attorneys’ fees. Any surplus remaining after the full payment and satisfaction of the Secured Obligations shall be returned to the Pledgors or to whomsoever a court of competent
jurisdiction shall determine to be entitled thereto. 
 9. Rights of the Administrative Agent. 

(a) Power of Attorney. In addition to other powers of attorney contained herein, each Pledgor hereby designates and
appoints the Administrative Agent, on behalf of the holders of the Secured Obligations, and each of its designees or agents, as attorney-in-fact of such Pledgor, irrevocably and with power of substitution, with authority to take any or all of the
following actions upon the occurrence and during the continuation of an Event of Default: 
 (i) to demand,
collect, settle, compromise and adjust, and give discharges and releases concerning the Pledged Collateral, all as the Administrative Agent may reasonably deem appropriate; 

(ii) to commence and prosecute any actions at any court for the purposes of collecting any of the Pledged Collateral and
enforcing any other right in respect thereof; 
 (iii) to defend, settle or compromise any action brought and, in
connection therewith, give such discharge or release as the Administrative Agent may reasonably deem appropriate; 
 (iv) to pay or discharge taxes, liens, security interests or other encumbrances levied or placed on or threatened against the Pledged Collateral; 

  
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 (v) to direct any parties liable for any payment in connection with any of
the Pledged Collateral to make payment of any and all monies due and to become due thereunder directly to the Administrative Agent or as the Administrative Agent shall direct; 

(vi) to receive payment of and receipt for any and all monies, claims, and other amounts due and to become due at any time
in respect of or arising out of any Pledged Collateral; 
 (vii) to sign and endorse any drafts, assignments,
proxies, stock powers, verifications, notices and other documents relating to the Pledged Collateral; 
 (viii)
to execute and deliver all assignments, conveyances, statements, financing statements, renewal financing statements, security and pledge agreements, affidavits, notices and other agreements, instruments and documents that the Administrative Agent
may reasonably deem appropriate in order to perfect and maintain the security interests and liens granted in this Pledge Agreement and in order to fully consummate all of the transactions contemplated herein; 

(ix) to exchange any of the Pledged Collateral or other property upon any merger, consolidation, reorganization,
recapitalization or other readjustment of the issuer thereof and, in connection therewith, deposit any of the Pledged Collateral with any committee, depository, transfer agent, registrar or other designated agency upon such terms as the
Administrative Agent may reasonably deem appropriate; 
 (x) to vote for a shareholder resolution, or to sign an
instrument in writing, sanctioning the transfer of any or all of the Pledged Collateral into the name of the Administrative Agent or one or more of the holders of the Secured Obligations or into the name of any transferee to whom the Pledged
Collateral or any part thereof may be sold pursuant to Section 8 hereof; and 
 (xi) to do and perform all
such other acts and things as the Administrative Agent may reasonably deem appropriate or convenient in connection with the Pledged Collateral. 
 This power of attorney is a power coupled with an interest and shall be irrevocable for so long as any of the Secured Obligations shall remain outstanding and until all of the commitments relating thereto
shall have been terminated. The 

  
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Administrative Agent shall be under no duty to exercise or withhold the exercise of any of the rights, powers, privileges and options expressly or implicitly granted to the Administrative Agent
in this Pledge Agreement, and shall not be liable for any failure to do so or any delay in doing so. The Administrative Agent shall not be liable for any act or omission or for any error of judgment or any mistake of fact or law in its individual
capacity or its capacity as attorney-in-fact except acts or omissions resulting from its gross negligence or willful misconduct. This power of attorney is conferred on the Administrative Agent solely to protect, preserve and realize upon its
security interest in the Pledged Collateral. 
 (b) The Administrative Agent’s Duty of Care. Other
than the exercise of reasonable care to assure the safe custody of the Pledged Collateral while being held by the Administrative Agent hereunder, the Administrative Agent shall have no duty or liability to preserve rights pertaining thereto, it
being understood and agreed that the Pledgors shall be responsible for preservation of all rights in the Pledged Collateral, and the Administrative Agent shall be relieved of all responsibility for the Pledged Collateral upon surrendering it or
tendering the surrender of it to the Pledgors. The Administrative Agent shall be deemed to have exercised reasonable care in the custody and preservation of the Pledged Collateral in its possession if such Pledged Collateral is accorded treatment
substantially equal to that which the Administrative Agent accords its own property, it being understood that the Administrative Agent shall not have responsibility for (i) ascertaining or taking action with respect to calls, conversions,
exchanges, maturities, tenders or other matters relating to any Pledged Collateral, whether or not the Administrative Agent has or is deemed to have knowledge of such matters, or (ii) taking any necessary steps to preserve rights against any
parties with respect to any of the Pledged Collateral. 
 (c) Voting Rights in Respect of the Pledged
Collateral. 
 (i) So long as no Event of Default shall have occurred and be continuing, to the extent
permitted by law, each Pledgor may exercise any and all voting and other consensual rights pertaining to the Pledged Collateral of such Pledgor or any part thereof for any purpose not inconsistent with the terms of this Pledge Agreement or the
Agreement; and 
 (ii) Upon the occurrence and during the continuance of an Event of Default, all rights of a
Pledgor to exercise the voting and other consensual rights that it would otherwise be entitled to exercise pursuant to paragraph (i) of this subsection shall cease and all such rights shall thereupon become vested in

  
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the Administrative Agent, which shall then have the sole right to exercise such voting and other consensual rights. 

(d) Dividend Rights in Respect of the Pledged Collateral. 

(i) So long as no Event of Default shall have occurred and be continuing and subject to Section 4(b) hereof, each
Pledgor may receive and retain any and all dividends (other than stock dividends and other dividends constituting Pledged Collateral addressed hereinabove) or interest paid in respect of the Pledged Collateral to the extent they are allowed under
the Agreement or the other Loan Documents. 
 (ii) Upon the occurrence and during the continuance of an Event of
Default: 
 (A) all rights of a Pledgor to receive the dividends and interest payments that it would otherwise
be authorized to receive and retain pursuant to paragraph (i) of this subsection shall cease and all such rights shall thereupon be vested in the Administrative Agent, which shall then have the sole right to receive and hold as Pledged
Collateral such dividends and interest payments; and 
 (B) all dividends and interest payments that are
received by a Pledgor contrary to the provisions of paragraph (A) of this subsection shall be received in trust for the benefit of the Administrative Agent and the holders of the Secured Obligations, shall be segregated from other property or
funds of such Pledgor, and shall be forthwith paid over to the Administrative Agent as Pledged Collateral in the exact form received, to be held by the Administrative Agent as Pledged Collateral and as further collateral security for the Secured
Obligations. 
 (e) Release of Pledged Collateral. The Administrative Agent may release any of the Pledged
Collateral from this Pledge Agreement or may substitute any of the Pledged Collateral for other Pledged Collateral without altering, varying or diminishing in any way the force, effect, lien, pledge or security interest of this Pledge Agreement as
to any Pledged Collateral not expressly released or substituted, and this Pledge Agreement shall continue as a first priority lien on all Pledged Collateral not expressly released or substituted. 

  
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 Upon the consummation of any disposition of any Pledged Collateral permitted by the
Agreement, the security interest and Lien granted hereby in the Pledged Collateral subject to such disposition shall automatically terminate and be released and the Administrative Agent shall, upon the request and at the expense of the Pledgors,
return to the Pledgors any such Pledged Collateral in its possession and execute and deliver all UCC termination statements and/or other documents reasonably requested by the Pledgors evidencing such termination. Upon the consummation of any
disposition of any Pledgor permitted by the Agreement, such Pledgor shall by automatically released from its obligations hereunder and the security interest and Lien in the Pledged Collateral of such Pledgor shall automatically terminate and be
released and the Administrative Agent shall, upon the request and at the expense of the Pledgors, return to the Pledgors any such Pledged Collateral in its possession and execute and deliver all UCC termination statements and/or other documents
reasonably requested by the Pledgors evidencing such termination. 
 10. Rights of Required Lenders. All rights of the
Administrative Agent hereunder, if not exercised by the Administrative Agent, may be exercised by the Required Lenders. 
 11.
Application of Proceeds. Upon the occurrence and during the continuation of an Event of Default, any payments in respect of the Secured Obligations and any proceeds of the Pledged Collateral, when received by the Administrative Agent or any
of the holders of the Secured Obligations in cash or its equivalent, will be applied in reduction of the Secured Obligations in the order set forth in the Agreement or other document relating to the Secured Obligations, and each Pledgor irrevocably
waives the right to direct the application of such payments and proceeds and acknowledges and agrees that the Administrative Agent shall have the continuing and exclusive right to apply and reapply any and all such payments and proceeds in the
Administrative Agent’s sole discretion, notwithstanding any entry to the contrary upon any of its books and records. 
 12.
Continuing Agreement. 
 (a) This Pledge Agreement shall be a continuing agreement in every respect and
shall remain in full force and effect so long as any of the Secured Obligations remains outstanding (other than contingent indemnity obligations not yet due and payable) and until all of the commitments relating thereto have been terminated. Upon
such payment and termination, this Pledge Agreement and the Liens created hereby shall be automatically terminated and the Administrative Agent and the holders of the Secured Obligations shall, upon the request and at the expense of the Pledgors,
execute and deliver all UCC termination statements and/or other documents reasonably requested by the Pledgors evidencing such 

  
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termination. Notwithstanding the foregoing, all releases and indemnities provided hereunder shall survive termination of this Pledge Agreement. 

(b) This Pledge Agreement shall continue to be effective or be automatically reinstated, as the case may be, if at any
time payment, in whole or in part, of any of the Secured Obligations is rescinded or must otherwise be restored or returned by the Administrative Agent or any holder of the Secured Obligations as a preference, fraudulent conveyance or otherwise
under any bankruptcy, insolvency or similar law, all as though such payment had not been made; provided that in the event payment of all or any part of the Secured Obligations is rescinded or must be restored or returned, all reasonable costs and
expenses (including, without limitation, attorneys’ fees and disbursements) incurred by the Administrative Agent or any holder of the Secured Obligations in defending and enforcing such reinstatement shall be deemed to be included as a part of
the Secured Obligations. 
 13. Amendments and Waivers. This Pledge Agreement and the provisions hereof may not be
amended, waived, modified, changed, discharged or terminated except as set forth in Section 11.01 of the Agreement. 
 14.
Successors in Interest. This Pledge Agreement shall create a continuing security interest in the Pledged Collateral and shall be binding upon each Pledgor, its successors and assigns, and shall inure, together with the rights and remedies of
the Administrative Agent and the holders of the Secured Obligations hereunder, to the benefit of the Administrative Agent and the holders of the Secured Obligations and their successors and permitted assigns; provided, however, that none of the
Pledgors may assign its rights or delegate its duties hereunder without the prior written consent of the requisite Lenders under the Agreement (and any other attempted assignment or transfer by any Pledgor shall be null and void). To the fullest
extent permitted by law, each Pledgor hereby releases the Administrative Agent and each holder of the Secured Obligations, and their respective successors and assigns, from any liability for any act or omission relating to this Pledge Agreement or
the Collateral, except for any liability arising from the gross negligence or willful misconduct of the Administrative Agent or such holder, or their respective officers, employees or agents. 

15. Notices. All notices required or permitted to be given under this Pledge Agreement shall be given as provided in
Section 11.02 of the Agreement. 
 16. Counterparts. This Pledge Agreement may be executed in any number of
counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument. It shall not 

  
 14 

 
be necessary in making proof of this Pledge Agreement to produce or account for more than one such counterpart. 
 17. Headings. The headings of the sections and subsections hereof are provided for convenience only and shall not in any way affect the meaning or construction of any provision of this Pledge
Agreement. 
 18. Governing Law; Jurisdiction; etc. 

(a) GOVERNING LAW. THIS PLEDGE AGREEMENT AND ALL CLAIMS OR CAUSES OF ACTION (WHETHER IN CONTRACT, TORT OR
OTHERWISE) THAT MAY BE BASED UPON, ARISE OUT OF OR RELATE IN ANY WAY TO THIS PLEDGE AGREEMENT OR THE NEGOTIATION, EXECUTION OR PERFORMANCE OF THIS PLEDGE AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 
 (b) SUBMISSION TO JURISDICTION. EACH
PLEDGOR IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN THE BOROUGH OF MANHATTAN AND OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF SUCH
STATE, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS PLEDGE AGREEMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY
AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL
JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS PLEDGE AGREEMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE
AGENT, ANY LENDER OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS PLEDGE AGREEMENT OR AGAINST ANY PLEDGOR OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION. 

  
 15 

 (c) WAIVER OF VENUE. EACH PLEDGOR IRREVOCABLY AND UNCONDITIONALLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS PLEDGE AGREEMENT IN ANY COURT REFERRED TO IN PARAGRAPH
(B) OF THIS SECTION. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT. 

(d) SERVICE OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR
NOTICES IN SECTION 11.02 OF THE AGREEMENT. NOTHING IN THIS PLEDGE AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW. 

19. Waiver of Right to Trial by Jury. 
 EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS PLEDGE AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS PLEDGE AGREEMENT BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 
 20. Severability. If any provision of this Pledge
Agreement is determined to be illegal, invalid or unenforceable, such provision shall be fully severable and the remaining provisions shall remain in full force and effect and shall be construed without giving effect to the illegal, invalid or
unenforceable provisions. 

  
 16 

 21. Entirety. This Pledge Agreement, the other Loan Documents and the other documents
relating to the Secured Obligations represent the entire agreement of the parties hereto and thereto with respect to the subject matter hereof and thereof, and supersede all prior agreements and understandings, oral or written, if any, with respect
to the subject matter hereof and thereof, including any commitment letters or correspondence relating to the Loan Documents, any other documents relating to the Secured Obligations, or the transactions contemplated herein and therein. 

22. Survival. All representations and warranties of the Pledgors hereunder shall survive the execution and delivery of this Pledge
Agreement, the other Loan Documents and the other documents relating to the Secured Obligations, the delivery of the Notes and the extension of credit thereunder or in connection therewith. 

23. Other Security. To the extent that any of the Secured Obligations are now or hereafter secured by property other than the
Pledged Collateral (including, without limitation, real and other personal property owned by a Pledgor), or by a guarantee, endorsement or property of any other Person, then the Administrative Agent and the holders of the Secured Obligations shall
have the right to proceed against such other property, guarantee or endorsement upon the occurrence of any Event of Default, and the Administrative Agent and the holders of the Secured Obligations shall have the right, in its sole discretion, to
determine which rights, security, liens, security interests or remedies the Administrative Agent and the holders of the Secured Obligations shall at any time pursue, relinquish, subordinate, modify or take with respect thereto, without in any way
modifying or affecting any of them or the Secured Obligations or any of the rights of the Administrative Agent or the holders of the Secured Obligations under this Pledge Agreement, under any of the other Loan Documents or under any other document
relating to the Secured Obligations. 
 24. Joint and Several Obligations of Pledgors. 

(a) Each of the Pledgors is accepting joint and several liability hereunder in consideration of the financial accommodation to be provided
by the holders of the Secured Obligations, for the mutual benefit, directly and indirectly, of each of the Pledgors and in consideration of the undertakings of each of the Pledgors to accept joint and several liability for the obligations of each of
them. 
 (b) Each of the Pledgors jointly and severally hereby irrevocably and unconditionally accepts, not merely as a surety
but also as a co-debtor, joint and several liability with the other Pledgors with respect to the payment and performance of all of the Secured Obligations arising under this Pledge Agreement, the other Loan Documents and any other

  
 17 

 
documents relating to the Secured Obligations, it being the intention of the parties hereto that all the Secured Obligations shall be the joint and several obligations of each of the Pledgors
without preferences or distinction among them. 
 (c) Notwithstanding any provision to the contrary contained
herein, in any other of the Loan Documents or in any other documents relating to the Secured Obligations, the obligations of each Guarantor under the Agreement and the other Loan Documents shall be limited to an aggregate amount equal to the largest
amount that would not render such obligations subject to avoidance under Section 548 of the Bankruptcy Code or any comparable provisions of any applicable state law. 
 [Signature Pages Follow] 

  
 18 

 Each of the parties hereto has caused a counterpart of this Pledge Agreement to be duly
executed and delivered as of the date first above written. 
 PLEDGORS: 

 

					
	 iPAYMENT, INC.,
a Delaware corporation

		
	By:	 	/s/ Afshin M. Yazdian
		 	 Name:

Title:

	
	 iPAYMENT HOLDINGS, INC.,
a Delaware corporation

		
	By:	 	/s/ Afshin M. Yazdian
		 	 Name:

Title:

	
	 CAMBRIDGE ACQUISITION SUB, LLC
 iFUNDS CASH SOLUTIONS, LLC
 iPAYMENT ACQUISITION SUB LLC

iSCAN SOLUTIONS, LLC
 MSC ACQUISITION SUB,
LLC
 PCS ACQUISITION SUB, LLC

        By: iPayment, Inc., as Sole Member

		
	By:	 	/s/ Afshin M. Yazdian
		 	Name:	 	Afshin M. Yazian
		 	Title:	 	Executive Vice President,
General Counsel and Secretary

			
	
	 1ST NATIONAL PROCESSING, INC. CARDPAYMENT SOLUTIONS, L.L.C.
 CARDSYNC PROCESSING, INC.
 E-COMMERCE EXCHANGE, INC.

iPAYMENT OF CALIFORNIA, LLC
 iPAYMENT OF MAINE,
INC.
 NPMG ACQUISITION SUB, LLC
 ONLINE
DATA CORP.

  
 [Signature Page to
Pledge Agreement] 

 
					
	 QUAD CITY ACQUISITION SUB., INC.
 TS ACQUISITION SUB, LLC

		
	By:	 	/s/ Afshin M. Yazdian
		 	 Name:

Title:
	 	 Afshin M. Yazdian

Secretary

  

[Signature Page to Pledge Agreement] 

 
					
	 iPAYMENT HOLDINGS, INC.,
a Delaware corporation

		
	By:	 	/s/ Carl A. Grimstad
		 	 Name:

Title:
	 	 Carl A. Grimstad
 Treasurer
and Secretary

  
 [Signature Page
to Pledge Agreement] 

 Accepted and agreed to as of the date first above written. 

 

					
	JPMORGAN CHASE BANK, N.A.,
        as Administrative Agent
		
	By:	 	/s/ Ann B. Kerns
		 	 Name:

Title:
	 	 Ann B. Kerns
 Vice
President

  
 [Signature Page to Pledge
Agreement] 

 Schedule 2(a) 
 Pledged Stock 
  

									
	 Pledgor
	  	 Issuer
	  	Number of
Shares	  	Certificate
Number	  	Percentage
Ownership
	iPayment Holdings, Inc.	  	iPayment, Inc.	  	100	  	1	  	100%
	iPayment, Inc.	  	iPayment of California, LLC (f/k/a iPayment of California, Inc., which was f/k/a iPayment, Inc., which was f/k/a Beverly Hills Acquisition Corp.)	  	N/A	  	N/A	  	100%
	iPayment, Inc.	  	1ST National Processing, Inc. (f/k/a First Acquisition Company, Inc.)	  	100	  	3	  	100%
	iPayment, Inc.	  	E-Commerce Exchange, Inc.	  	1,000	  	2	  	100%
	iPayment, Inc.	  	Online Data Corp.	  	1,000	  	2	  	100%
	iPayment, Inc.	  	iPayment of Maine, Inc.	  	1,000	  	2	  	100%
	iPayment, Inc.	  	CardSync Processing, Inc.	  	1,000	  	1	  	100%
	iPayment, Inc.	  	Quad City Acquisition Sub, Inc.	  	1,000	  	1	  	100%
	iPayment, Inc.	  	CardPayment Solutions, L.L.C. (f/k/a CPS Acquisition Sub, L.L.C.)	  	N/A	  	N/A	  	100%
	iPayment, Inc.	  	iPayment Acquisition Sub LLC	  	N/A	  	N/A	  	100%
	iPayment, Inc.	  	TS Acquisition Sub LLC	  	N/A	  	N/A	  	100%
	iPayment, Inc.	  	PCS Acquisition Sub, LLC	  	N/A	  	N/A	  	100%
	iPayment, Inc.	  	NPMG Acquisition Sub, LLC	  	N/A	  	N/A	  	100%
	iPayment, Inc.	  	iScan Solutions, LLC	  	N/A	  	N/A	  	100%
	iPayment, Inc	  	MSC Acquisition Sub, LLC	  	N/A	  	N/A	  	100%
	iPayment, Inc.	  	iFunds Cash Solutions, LLC	  	N/A	  	N/A	  	100%
	iPayment, Inc.	  	Cambridge Acquisition Sub, LLC	  	N/A	  	N/A	  	100%

 Schedule 4(a) 
 Form of Irrevocable Stock Power 
 FOR VALUE RECEIVED, the undersigned hereby
sells, assigns and transfers to the following shares of capital stock of                     , a
                    corporation: 
  

			
	 Number of Shares
	 	 Certificate Number

and irrevocably appoints
                         its agent and attorney-in-fact to transfer all or any part of such capital stock and to take all
necessary and appropriate action to effect any such transfer. The agent and attorney-in-fact may substitute and appoint one or more persons to act for him. The effectiveness of a transfer pursuant to this stock power shall be subject to any and all
transfer restrictions referenced on the face of the certificates evidencing such interest or in the certificate of incorporation or bylaws of the subject corporation, to the extent they may from time to time exist. 

 

			
	[HOLDER]
		
	 By:
	 	 
		 	 Name:

Title:Translation of Working Capital Loan Contract

 Exhibit 10.1 
 Contract No. 5310350M120110144439 
 Working Capital Loan Contract

 Bank of Communications Co., Ltd. 

 Working Capital Loan Contract 

Important Notice 

 Please read carefully the whole text of this Contract, especially the clauses with

 symbols. Please consult the Lender if any question arises. 

  

			
		
	 Borrower:
	  	Axesstel (Shanghai) Ltd.
		
	 Legal Representative (Person in charge):
	  	Hong Liang
		
	 Legal Domicile:
	  	No. 2 Plant, #3111 West Huancheng Rd., Comprehensive Industrial Development Zone, Shanghai
		
	 Postal Address:
	  	Room 912, Building 13, #1515 Gumei Rd., Xuhui District, Shanghai
		
	 Lender:
	  	Bank of Communications Co., Ltd.
		
	 Person in Charge:
	  	Ye Xiaohong
		
	 Postal Address:
	  	#200 Central Renmin Rd., Fengxian District, Shanghai
		
	 With regard to
	  	Borrower applies to Lender for working capital loan; Borrower and Lender hereby reach this Contract through consultations to specify the rights and obligations of both
parties.

  

	1.	Loan 

 1.1 Currency: RMB

 1.2 Amount (in words): TEN MILLION YUAN 
 1.3 The Loan hereunder shall only be used for the purpose of enterprise use. 
 1.4 The Term of the Loan shall not exceed Twelve months, commencing from the initial date of advancing of the Loan and ending on April 1, 2012. 

 

	2.	Interest Rate and Calculation 

2.1 The option (2) below shall be applied to determine the interest rate hereunder: 

(1) RMB fixed interest rate, which shall be implemented based on the         (period)  ̈ benchmark interest rate  ̈ benchmark interest rate floating upward  ̈ benchmark interest rate
downward on the date  ̈ when this Contract becomes effective  ̈ when the Loan 

  
 -2-

 
hereunder is initially advanced  ̈ when the Loan hereunder is actually advanced (the date when each installment of Loan is advanced, if the
Loan is advanced in installments). The interest rate shall not be adjusted within the Term of this Contract. 
 (2) RMB floating
interest rate, which is specified below: 
 i. the interest rate shall be one-year (period)  ̈ benchmark interest rate ü ̈ benchmark interest rate plus a premium of 10% of the benchmark interest
rate, which is on the basis of one-year rate on the day of the loan  ̈ benchmark interest rate downward         on the date  ̈ when this Contract becomes effective  ̈ when the Loan hereunder is initially advanced  ̈ when the
Loan hereunder is actually advanced (the date when each installment of Loan is advanced, if the Loan is advanced in installments). 
 ii. if People’s Bank of China adjusts the benchmark interest rate during the Term of this Contract, the option a below shall be applied to determine the adjustment date of the interest rate.
From the interest rate adjustment date, Lender has the right to execute the adjusted interest rate according to the corresponding interest rate level announced on the interest rate adjustment date, and the range for increase/decrease of the interest
rate shall remain the same. 
 a. the interest rate adjustment date hereunder shall be the interest rate adjustment date of the
People’s Bank of China; 
 b. from the date when the Loan is actually advanced (shall be the advancing date of  ̈ the first installment  ̈ each installment of the Loan when the Loan is advanced in installments), each day at the end of a  ̈ month  ̈ quarter  ̈ half year  ̈ year;

 c.
                                         
                                         
                                         
                              . 

iii. If after the adjustment of the People’s Bank of China, the interest rate becomes floating or the benchmark interest rate is
rescinded, both Parties hereto shall adjust the interest rate of the Loan hereunder through negotiation. But such adjusted interest rate shall not be lower than the then applicable bank interest rate; if both parties fail to reach agreement upon the
adjusted interest rate after         months from the adjustment date of the People’s Bank of China, Lender is entitled to declare an early maturity of the entire Loan hereunder. 

(3)              interest rate of
             (foreign currency); 
 2.2 Daily interest rate =
monthly interest rate/30, and monthly interest rate = annual interest rate/12. 
 2.3 Calculation of Interest Rate 

2.3.1 Normal interest rate = interest rate set forth herein*amount of the Loan advanced*number of days (commencing from the advancing
date and ending on the maturity date). 

  
 -3-

 2.3.2 Penalty interest of any overdue loan and misappropriated loan shall be calculated on
the basis of the amount and number of lasting days of such overdue or misappropriated loan (commencing from the overdue or misappropriation date and ending on the repayment day of the principal and the interest). If the loan currency is RMB, the
penalty interest rate of the overdue loan shall be the agreed interest rate plus 50%, and the penalty interest rate of the misappropriated loan shall be the agreed interest rate plus 100%; if after the loan with floating interest rate is overdue or
misappropriated, the People’s Bank of China adjusts the benchmark interest rate, Lender is entitled to adjust the penalty interest rate hereunder correspondingly, and the new penalty interest rate shall be applied from the adjustment date of
the People’s Bank of China. In case of foreign currency, the penalty interest rate shall be the agreed interest rate hereunder plus     %. 
 2.4 Option (1) below shall be applied to settle the interest of the Loan hereunder, and the interest shall be repaid with the principal when the Loan is due. Interest settlement date shall be the
interest repayment date: 
 (1) settled on the 20th of the last month of each quarter; 

(2) settled on the 20th of each month; 
 (3)
                                         
                   . 
 2.5 In
case of Borrower’s early repayment of the Loan or Lender’s early collection of the Loan as provided by this Contract, the corresponding interest rate level shall not be adjusted, and the interest rate originally agreed upon shall be
implemented. 
 2.6 Other agreements on interest rate 

	
	  

	  

 

	3.	Advance and Payment of the Loan 

3.1 Borrower may withdraw the Loan in installments, but the total amount shall be no more than the amount stipulated by article 1 herein.
The withdrawal shall be in compliance with the following advance plan: 
  

					
	Advance Date	 		 	Amount
	 April 1, 2011;
	 		 	Ten Million Yuan (in words)
	  
	 		 	  

	  
	 		 	  

	  
	 		 	  

 3.2

 Lender is entitled to refuse to advance the Loan before all of the following conditions are satisfied: 

 (1) Borrow has went through all necessary government approval, permit, license and other legal formalities
and other formalities as required by Lender, and such approval, permit or registration remains effective; 

  
 -4-

 (2) The Guarantee Contract (if any) has come into effect and remains effective; if the
Guarantee Contract is a mortgage contract and/or pledge contract, the security interests shall have been set up and remain effective; 
 (3) No significant adverse change has happened to Borrower’s operation and financial status; 
 (4) Borrow does not breach this Contract; 
 (5) Payment term is in compliance with
this Contract, and Lender agrees to pay in case of entrusted payment by the Lender; 
 (6) As for foreign currency loan,
Borrower has opened necessary accounts in accordance with requirements for foreign exchange management, and has provided evidential materials to prove that the Loan is in compliance with relevant foreign exchange policies, including but not limited
to valid foreign exchange use certificate, registration certificate or approval; 
 (7) Borrower has designated a fund recovery
account per Lender’s requirement, and has executed the account escrow agreement. 
 3.3 Borrower hereby designates the
following account as the Loan advance account, and such account  ̈ is ü ̈ is not the specific
account for Loan advance opened with Lender. 
 Name of the account: Axesstel (Shanghai) Ltd.  

Account No.: 310069037018010069934  
 Opening bank: Bank of Communications, Fengxian Branch 
 If Borrower opens a
specific loan advance account, the advance and payment of the Loan shall be managed through such account. Such account shall only be used for the advance and external payment of the Loan, while shall not be used in check, bill of exchange, bank
acceptance bill or other business, or used in other settlement. In case that Borrower makes the payment on its own, it shall go to the counter of the account opening bank office when handling transfer of the Loan fund. The deposit interest in such
account shall be transferred to Borrower’s repayment account. 
 3.4 Borrower shall proceed relevant fund withdrawal
formalities at least three bank business days in advance each time when it withdraws the Loan fund, and specify the payment terms (payment by the Lender in a fiduciary capacity or payment on Borrower’s own). Only one payment terms can be
used each time. 
 3.5 Payment by the Lender in a fiduciary capacity means that Lender pays the Loan via Borrower’s account
in accordance with Borrower’s entrustment directly to Borrower’s opposition party whose use of such Loan is in compliance with this Contract, after the Loan is advanced as provided herein. 

Payment by the Lender in a fiduciary capacity shall be applied when one of the following conditions is satisfied: 

(1) where the amount of single payment of the Loan exceeds
             (such amount is the limit amount when Borrower makes the payment on its own) 
   
  
   
  

  
 -5-

 When Lender makes the payment in a fiduciary capacity, Borrower shall submit withdrawal
application, entrustment letter, loan note, corresponding payment order and other materials required by Lender (including but not limited to business contract, invoice, receipt of goods and other transaction materials) to Lender, clearly showing the
amount of the Loan withdrawn and the amount and the person to be paid. The amount of the Loan withdrawn shall be equivalent to the total amount payable. 
 If payment of Borrower to be made is not in compliance with this Contract or relevant business contracts, or has any other defect, Lender shall have the right to refuse to pay and return the entrustment
letter submitted by Borrower. 
 If Lender agrees to pay, Borrower shall re-submit relevant materials carrying accurate
information within the period of time given Lender provided that external payment fails or the payment is returned due to inaccurate information provided by Borrower. Lender shall not be responsible for any loss of Borrower caused by such failure.

 3.6 Payment made on Borrower’s own means that Borrower makes the payment to its opposition transaction party whose use
of the Loan is in compliance with this Contract after Lender advance the Loan to Borrower’s account. 
 In such case,
Borrower shall submit loan withdrawal application, loan note, fund use statement and other materials required by Lender. Borrower shall report the payment of the Loan to Lender within 10 days after the Loan is advanced. Lender shall have the right
to check whether the Borrower’s payment is in compliance with the Loan purpose hereunder through account analysis, voucher examination, on-spot inspection and other ways. Borrower shall coordinate Lender with such inspections. 

3.7 The actual advance date and amount shall be subject to the contents recorded in the loan note. 

 

	4.	Repayment of the Loan 

 4.1
Borrower shall repay the Loan on time subject to the maturity date provided in article 1.4 and the following repayment schedule. When any discrepancy arises regarding to the maturity date on the loan note and in this Contract, the loan note shall
prevail: 
  

									
		 	Repayment Date	 		 	Repayment Amount	 	
		 	 April 1, 2012
	 		 	Ten Million Yuan (in words)	 	
		 	  
	 		 	  
	 	
		 	  
	 		 	  
	 	
		 	  
	 		 	  
	 	

  
 -6-

 4.2

 Borrower shall not repay the Loan in advance without written consent of Lender. 

 4.3 Borrower hereby designates that: 

(1) the repayment account is: 
 Name of the account: Axesstel (Shanghai) Ltd.  
 Account
No. 310069037018010069934  
 Opening bank: Bank of Communications, Fengxian Branch 

(2) the fund recovery account is: 
 Name of the account: Axesstel (Shanghai) Ltd.  
 Account
No. 310069037018010069934  
 Opening bank: Bank of Communications, Fengxian Branch 

 

	5.	

 Representations and Warranties of Borrower 

 5.1 Borrower was legally established and legally exists, and has all the necessary legal capacities to
perform its obligations hereunder and undertake civil liabilities in its own name. 
 5.2 The execution and performance of this
Contract is out of Borrower’s true intention, and has obtained all the necessary consents, approvals and authorizations, which has no legal defect. 
 5.3 Borrower produces and operates in compliance with laws and regulations, and has the ability to operate sustainably, and have a legitimate source of repayment. Senior management of the Borrower has no
illicit record. 
 5.4 During the process of execution and performance of this Contract, all the documents, statements,
materials and information provided by Borrower to Lender are real, accurate, complete and effective without any concealment or omission of any information which may deteriorate its financial status and repayment ability. There has been no
significant adverse change happened on Borrower’s financial status since the latest financial statement was issued. 
 5.5
When this Contract is signed, Borrower is neither a shareholder nor an “actual controlling person” under the Corporate Law of the Guarantor, and has no plan to become neither a shareholder nor an “actual controlling person” of
the Guarantor. 
  

	6.	Rights and Obligations of Lender 

6.1 Lender shall have the right to recover the Loan principal and interest (including compound interest and penalty interest for overdue
and misappropriated loans), collect fees payable by Borrower as provided hereunder, recover the Loan in advance in its own discretion according to the situation of capital recovery of Borrower, and exercise other rights hereunder or provided by law.

  
 -7-

 6.2 During the process of performance of this Contract, Lender will only make formal
examination on the materials provided by Borrower. Lender will not take any responsibility for its failure of payment in a fiduciary capacity on time or for Borrower’s payment in violation of this Contract due to the fact that such materials
provided by Borrower are untrue, inaccurate or incomplete. 
 6.3 Lender will not be responsible for the failure of advance or
payment of the Loan due to the fact that the advance account or payee’s account is frozen or for other reasons. 
  

	7.	Obligations of Borrower 

 7.1
Borrower shall repay the principal and interest of the Loan hereunder according to the time, amount and currency provided by this Contract. The recovery account designated by Borrower shall be used to collect the corresponding sales income or the
fund planned to repay the Loan. When non-cash settlement is applied to the corresponding sales income, Borrower shall ensure to transfer such income to the recovery account upon receipt in a timely manner. Borrower shall provide with the incoming
and outgoing of the fund in the recovery account upon requirement of Lender. 
 7.2 Borrower shall apply the Loan in accordance
with this Contract, and shall not apply the Loan for other purposes, or use such Loan for fixed asset investment, equity investment or in any other industry or for any other purpose prohibited by the State. 

Borrower shall withdraw and use the Loan in the agreed ways, and shall not evade the payment of Lender in a fiduciary capacity by means
of “breaking up the whole into parts”. When Borrower makes the payment on its own, such payment shall be made in compliance with this Contract. 

 7.3

 Borrower shall bear the expenses and cost hereunder, including without limitation to fees for notarization, appraisal, assessment, registration, and etc. 

 Borrower shall bear the fees for settlement of the Loan payment (either in the situation where Lender makes
the payment in a fiduciary capacity or in the situation where Borrower makes the payment on its own), and shall pay in full and on time the relevant fees in accordance with the charge item, rate and time provided by Lender. 

When the advance account is specially used to advance the Loan, the fund of the Loan may be paid through the payment system of the
People’s Bank of China or intra-city exchange system (either in the situation where Lender makes the payment in a fiduciary capacity or in the situation where Borrower makes the payment on its own), if the recovery account is not opened with
the Bank of Communications. 
 When the advance account is not specially used to advance the Loan, the fund of the Loan shall be
paid through the system of the People’s Bank of China (either in the situation where Lender makes the payment in a fiduciary capacity or in the situation where Borrower makes the payment on its own), if the recovery account is opened with
another bank in other cities. 

  
 -8-

 7.4

 Borrower shall comply with the practices and policies of operations of Lender and the Loan business, including but not limited to cooperating with Lender in loan payment management and monitoring the use of the Loan
and the operation of the Borrower, and shall provide all the financial statements, Loan application records and materials, affiliates and transaction information of such affiliates and other materials and information as required by Lender. Borrower
shall ensure that all such documents, materials and information are true, complete and accurate. 

 7.5

 Borrower shall give at least a 30-day written notice to Lender of any of the following events, and shall not take any action before the principal and interest of the Loan hereunder is repaid or a repayment plan and
guarantee acknowledged by Lender is provided: 

 (1) sell, give, lease, lend, transfer, mortgage, pledge or dispose in other ways all or substantial part of
the assets or major assets; 
 (2) significant changes have happen or may happen to the operation system or ownership
organization of Borrower, including without limitation to contract, lease, joint venture, corporate reorganization, joint-stock reorganization, consolidation (merger), equity joint venture (cooperative joint venture), division, establishment of
subsidiaries, equity transfer, transfer of property title, capital reduction, and etc. 
 (3) Outward investment exceeds RMB
5 million or increase in debt financing exceeds RMB 5 million. 

 7.6

 Borrower shall notify Lender in writing of any of the following events within 7 days of the occurrence or potential occurrence of such event: 

 (1) Borrower or any of its affiliate amends the articles of association, change enterprise name, legal
representative (person in charge), domicile, postal address or business scope, and other matters registered with AIC, or makes significant decision on financial or human resource issues; 

(2) Borrower, its affiliates or guarantor proposes to file for bankruptcy, or may possibly be or has already been filed for bankruptcy;

 (3) Borrower or any of its affiliates is involved in any major litigation, arbitration case, administrative action, or its
major assets or collaterals hereunder are taken with property preservation measures or other enforcement measures, or the safety and good condition of the major assets or collaterals hereunder have been or may probably be affected, or the value of
such major assets or collaterals have been or may be reduced; 
 (4) Borrower or any of its affiliates provides guarantee for
third party, which causes any significant adverse effect on its economic and financial status, or on its ability of performance of this Contract; 

  
 -9-

 (5) Borrower or any of its affiliates executes any contract that has significant effect on
its operation and financial status; 
 (6) Borrower, any of its affiliates or guarantee stops production, goes out of business,
dissolves, stops business for rectification, or its business license is revoked or cancelled; 
 (7) Borrower or any of its
affiliates, or major individual investor, legal representative (person in charge), director or major management member of Borrower or any of its affiliates is missing, or alleged to violate laws or regulations or applicable rules of stock exchange;

 (8) The operations of the Borrower or its affiliates encounter serious difficulties, or the financial position of the
Borrower or its affiliates deteriorates, or any event or circumstance that will has adverse effect on the normal business, financial condition or the ability of solvency occurs. 

(9) Any affiliated transaction with (more than) 10% of the net assets recently audited occurs; 

(10) Before paying off all the debts hereunder, Borrower becomes or may probably become a shareholder or an “actual controlling
person” under the Corporate Law of the guarantor; 
 (11) Borrower or any of its affiliates causes any liability accident
or is exposed by media for violating laws or regulations, regulatory rules, state policies or professional standards; 
 (12)
The controlling or being-controlled relationship between Borrower and its affiliate’s changes; 
 (13) Other events that
will have significant adverse effect on the ability of solvency occur. 

 7.7

 Under the circumstances that any change of the guarantee adverse to Lender’s credit right hereunder occurs, Borrower shall provide other guarantees acknowledged by Lender as required by Lender in a timely
manner. The “change” herein shall include without limitation to the following events: guarantor is consolidated or divided, ceases or suspends operations, dissolves, ceases operations for rectification, or files or is filed for bankruptcy,
or its business license is cancelled; significant change happens to guarantor’s operation and financial status; guarantor is involved in any major litigation, arbitration, administrative action, or its major assets are taken with property
preservation measures or other enforcement measures; the value of the collaterals reduces or may probably reduce, or are taken with property preservation or other enforcement measures; the safe and good condition of the collaterals are or may be
affected; the guarantor or its legal representative (person in charge) or main management members are alleged to violate laws and regulations, or applicable stock exchange rules; the individual guarantor is missing, dead (declared to be dead); the
guarantor breaches the guarantee contract; the guarantor requires to rescind the guarantee contract; the guarantee contract does not become effective, or is determined void and null or is revoked; the security interest is failed to be set up or is
determined void and null; any other event that may harm Lender’s credit right hereunder. 

  
 -10-

 7.8 Borrower undertakes that its financial index shall always be in compliance with the
following agreements before the principal and interest of the Loan hereunder and the relevant fees are paid off: 
  

			
	 (1)
	  	  

		
	 (2)
	  	  

		
	 (3)
	  	  

 

	8.	Other Agreed Issues 

 8.1 The
payment terms of the Loan hereunder shall be subject to the contents recorded in the Withdrawal Application executed by Lender. 
  

	9.	

 Early Maturity of the Loan 

 9.1 This Contract shall terminate in advance when any of the following events occurs: 

(1) the representations and warranties made in article 5 herein by Borrower are untrue; 

(2) Borrower breaches this Contract; 
 (3) any of the events provided in article 7.6 actually occurs, which is adverse to Lender’s credit right in its discretion; 
 (4) Lender thinks an early repayment of the principal and interest of the Loan hereunder is necessary according to the fund recovery situation of Borrower; 

(5) Lender’s advance of the Loan as provided herein constitutes or may constitute any violation of regulations due to change of
regulatory policies; 
 (6) any breach of contract occurs during the process of performance of other contracts between Borrower
and Lender, or between Borrower and any other third party, or the liabilities thereunder may be or have been declared mature in advance. 
 9.2 When any “Early Maturity” event occurs, Lender shall have the right to take one, multiple or all of the following measures: 

(1) to stop advancing the Loan which has not been withdrawn; 
 (2) to stop the payment process for the Loan which has been withdrawn but not been used by Borrower; 

  
 -11-

 (3) to require Borrower to make negotiation with Lender on additional loan advance and
payment conditions; 
 (4) to have Borrower to alter payment terms according to its requirements; 

(5) to unilaterally declare early maturity of all the principal of the advanced loan hereunder, and require Borrower to immediately repay
all the principal of the due loan and settle the interest. 
  

	10.	

 Breach of Contract 

 10.1 If Borrower fails to repay the principal or pay the interest of the Loan in full amount and on time, or
fails to apply the Loan for the purposes provided herein, Borrower will be charged both the interest at the penalty interest rate of the overdue or misappropriated loan and the compound interest at the interest rate of outstanding and overdue
interest. 
 10.2 If Borrower fails to repay the principal or pay the interest of the Loan in full amount and on time, it shall
bear the fees for collecting overdue payments, litigation (or arbitration), preservation, announcement, enforcement and attorney’s fees, travel expenses or other fees. 
 10.3 In case that Borrower evades Lender’s supervision, falls into arrears with principal and interest of the Loan, or maliciously defaults debts, Lender shall have the right to report such conducts
to competent authorities and expose such conducts on medias. 
  

	11.	

 Deduction Agreements 

 11.1 Borrower hereby authorize Lender to deduct its fund from any of its accounts opened with Bank of
Communications to pay off the debt due and payable, when any Loan principal, interest, penalty interest, compound interest or other fees under this Contract becomes due and payable. 

11.2 After such deduction, Lender shall notify Borrower of the account number, loan contract number, borrowing note number, deducted
amount and balance of the debt in connection with deduction. 
 11.3 If the deducted amount is insufficient to pay off all of
Borrower’s debts, the due but outstanding fees shall be paid off first. For the principal and interest which is overdue for less than 90 days, the balance shall be first used to pay off the interest, penalty interest or compound interest due
but outstanding, and then the principle due but outstanding; for the principal and interest which is overdue for more than 90 days, the balance shall first be used to pay off the principal due but outstanding, and then the interest, penalty interest
or compound interest due but outstanding. 
 11.4 Where the currency of the amount from deduction is different from the currency
that needs to be paid off, the deducted amount shall be transferred to the amount to be paid off on the basis of the exchange rate announced by the Bank of Communications at deduction. 

  
 -12-

	12.	Notices 

 12.1 The contact
information (including postal address, telephone number and fax number) provided by Borrower herein are true and effective. Borrower shall immediately send/deliver any altered contact information in writing to the postal address of Lender herein.
Such alteration will become effective only after Lender actually receives the notification of alteration and change relevant records. 
 12.2 Lender shall have the right to select any of the following ways to give notice to Borrower, unless otherwise provided herein. Lender may select any way it considers appropriate to give notice, and
will take no responsibility for any transmission error, missing or delay of information caused by mail, facsimile, telephone or any other communication system. If Lender selects multiple ways of notice, the notice reaching Borrower earlier shall
prevail: 
 (1) Announcement: the notice shall be deemed as served on the date when Lender publishes announcement on its
website, in online bank or telephone bank system or at its operation networks; 
 (2) By personal delivery: the notice shall be
deemed as served on the day when Borrower sign the acknowledgement of receipt; 
 (3) Via mail (including courier, ordinary mail
and registered mail) to Borrower’s postal address mostly recently known to Lender: the notice shall be deemed as served on the third day (same city)/fifth day (other cities) of the delivery (even though the mail may be returned); 

(4) Via facsimile or other electronic communication means to Borrower’s facsimile number or electronic address mostly recently known
to Lender: the notice shall be deemed as served on the date of delivery. 
  

	13.	

 Information Disclosures and Confidentiality 

 13.1 Lender shall keep confidential all the Borrower’s trade secrets and other information and
materials marked as confidential in writing, unless required to be disclosed by: 
 (1) the applicable laws and regulations or
listing rules; 
 (2) judicial authorities or government authorities; 

(3) Lender to its outside counsel; 
 (4) Lender with consent or authorization of Borrower. 
 13.2 Borrower agrees that
Bank of Communications may use or disclose all the information and materials in connection with Borrower under the following circumstances, including without limitation to Borrower’s basic information, credit transaction information and other
related information and materials. And Borrower will undertake all the consequences therefrom: 
 (1) disclosing such
information and materials to, or allowing use of such information and materials by its business outsourcing agencies, third party suppliers, other financial institutes and other agencies or individuals considered necessary by Lender (including but
not limited to the subsidiaries wholly or partially owned by Bank of Communications) for the following purposes: a. for the development of loan business or loan related business; for example, promotion of loan business of Bank of Communications,
collection of overdue repayment of Borrower and transfer of loan credit right, and etc., b. for Lender’s provision or possible provision of new products or services to Borrower, and c. for improvement of relationship between Lender and its
clients; 

  
 -13-

 (2) providing such information and materials to China Credit Information Center and other
credit information agencies or credit information database set up under ratification of People’s Bank of China; 
 (3)
Using or allowing use by third parties of such information and materials for business operation, management, statistics, canalization and risk control on the basis of confidentiality. 

 

	14.	Governing Law and Dispute Resolution 

 This Contract shall be governed by the laws of the People’s Republic of China. Any dispute arising out of this Contract shall be submitted to the court with jurisdiction over Lender’s domicile.
During the dispute resolution process, both parties shall continue to perform other provisions herein not involved in the dispute. 
  

	15.	Miscellaneous 

 15.1

 Borrower agrees that Lender may retain its credit information for the purposes of loan application and after management and inquiry. 

 15.2

 Lender will not take any responsibility for the failure of advance the Loan or processing the Loan payment on time due to force majeure event or failure of communication, network or Lender’s system. But Lender
will notify such failure to Borrower in a timely manner. 

 15.3 The form of the Withdrawal Application hereunder and the Withdrawal Application, Power of Attorney for
Payment of the Loan and Borrowing Note executed by both parties, and other related documents and materials recognized by both parties shall constitute an integral part of this Contract. 

15.4 The affiliate, affiliated transaction, major individual investor and other terms referred to hereunder shall have the same meaning
with the same words in the No. 36 Enterprise General Accounting Principles—Affiliate Disclosure (No. 3 Cai Kuai [2006]), as amended. 
 15.5 This Contract shall come into effect after persons in charge of both parties (or Borrower’s legal representative) or their duly authorized representatives execute (or affix chops) and affix
official chops on this Contract. 

  
 -14-

 15.6 This Contract shall be made in quadruplicate, with each party of Lender, Borrower and
guarantor (if any) holding one copy. 
 (The remainder of this page is intentionally left blank) 

  
 -15-

 Borrower has read all the above provisions, and Lender has made necessary explanations upon Borrower’s
requirement. Borrower has no objection to any of the provisions herein. 
  

			
	Borrower (official chop)	 	Lender (official chop)
		
	 Legal Representative (person in charge) or
 Duly Authorized Representative
	 	 Person in Charge or Duly Authorized
 Representative

	 (signature or chop): Hong Liang
	 	(signature or chop)
		
	 Date: March 31, 2011
	 	Date: March 31, 2011

  
 -16-

 Attachment: 
 No.                    
 Withdrawal Application 
 Bank of Communications Co., Ltd.
             Branch (the “Bank”): 
 In accordance with the
Contract numbered              between us (the “Contract”), we hereby apply for withdrawal of the credit under the Contract. 

 

	 	1.	Currency: ________; Amount: _______________ 

  

	 	2.	Payment Terms: 

  

	 	 ̈	Payment by the Bank in fiduciary capacity. Please see the POA of Payment for details 

 

	 	 ̈	Payment by Borrower on its own. For the purpose of _______________ 

  

	1.	This Application is supplementary to the Contract. Unless otherwise provided by this Application, the rights and obligations of both parties shall be exercised and
performed as provided by the Contract. 

  

	2.	We hereby undertake that the representations and warranties under the Contract remain effective. When we pay the Loan on our own, each installment of the payment will
be made lower than the limit amount. We do not have any “Early Maturity Event” as provided by the Contract by the application date. 

 Borrower/Applicant (official chop) 
 Legal Representative (Person in charge) or Duly Authorized
Representative 
 (Signature or Chop) 

Application Date: 
 We agree to advance the Loan
within three bank business days upon execution of this Application in accordance with the above conditions. 
 Bank (official bank) 

Person in Charge or Duly Authorized Representative 
 (Signature or Chop) 
 Date of Execution: 
 Note: This Application shall be made in duplicate, with each party of Borrower/Applicant and the Bank holding one copy. 

  
 -17-

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