Document:

exv10w46

 

Exhibit 10.46

AMDL, INC.

EXECUTIVE MANAGEMENT

CHANGE IN CONTROL SEVERANCE PAY PLAN

 

 

TABLE OF CONTENTS

PAGE

	 	 	 	 	 
	ARTICLE 1. INTRODUCTION
	 	 	1	 
	1.1 Plan Name
	 	 	1	 
	1.2 Plan Type
	 	 	1	 
	1.3 Plan Purpose
	 	 	1	 
	ARTICLE 2. DEFINITIONS, CONSTRUCTION AND INTERPRETATIONS
	 	 	1	 
	2.1 Affiliate
	 	 	1	 
	2.2 Average Total Compensation
	 	 	1	 
	2.3 Base Pay
	 	 	1	 
	2.4 Benefit Plan
	 	 	2	 
	2.5 Board
	 	 	2	 
	2.6 Cause
	 	 	2	 
	2.7 Change in Control
	 	 	3	 
	2.8 Code
	 	 	4	 
	2.9 Company
	 	 	4	 
	2.10 Date of Termination
	 	 	4	 
	2.11 Eligible Participant
	 	 	5	 
	2.12 ERISA
	 	 	5	 
	2.13 Exchange Act
	 	 	5	 
	2.14 Good Reason
	 	 	5	 
	2.15 Governing Law
	 	 	6	 
	2.16 Headings
	 	 	6	 
	2.17 Notice of Termination
	 	 	6	 
	2.18 Number and Gender
	 	 	6	 
	2.19 Parent Corporation
	 	 	6	 
	2.20 Participant
	 	 	6	 
	2.21 Plan
	 	 	6	 
	2.22 Person
	 	 	7	 
	2.23 Qualified Employee
	 	 	7	 
	2.24 Successor
	 	 	7	 
	ARTICLE 3. PARTICIPATION AND ELIGIBILITY FOR BENEFITS
	 	 	7	 
	3.1 Commencement of Participation
	 	 	7	 
	3.2 Ceasing to be a Qualified Employee
	 	 	7	 
	3.3 Eligibility for Benefits
	 	 	7	 
	ARTICLE 4. BENEFITS
	 	 	8	 
	4.1 Compensation and Benefits Before Date of Termination
	 	 	8	 
	4.2 Cash Payment
	 	 	8	 
	4.3 Continuation of Certain Welfare Benefits
	 	 	8	 
	4.4 Gross-Up Payments
	 	 	9	 
	4.5 Indemnification
	 	 	10	 
	ARTICLE 5. ADMINISTRATION AND ENFORCEMENT OF RIGHTS
	 	 	10	 
	5.1 Plan Administration
	 	 	10	 
	5.2 Amendment and Termination
	 	 	10	 
	5.3 Benefit Claims
	 	 	11	 
	5.4 Disputes
	 	 	11	 

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PAGE

	 	 	 	 	 
	ARTICLE 6. MISCELLANEOUS
	 	 	12	 
	6.1 Successors
	 	 	12	 
	6.2 Binding Plan
	 	 	12	 
	6.3 Validity
	 	 	12	 
	6.4 No Mitigation
	 	 	12	 
	6.5 No Set-Off
	 	 	12	 
	6.6 Taxes
	 	 	12	 
	6.7 Notices
	 	 	12	 
	6.8 Effect of Plan Benefits on Other Severance Plans
	 	 	12	 
	6.9 Related Plans
	 	 	13	 
	6.10 No Employment or Service Contract
	 	 	13	 
	6.11 Survival
	 	 	13	 
	6.12 Effect
	 	 	13	 
	6.13 Prohibition of Alienation
	 	 	13	 
	6.14 Section 409A
	 	 	13	 

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AMDL, INC.

EXECUTIVE MANAGEMENT

CHANGE IN CONTROL SEVERANCE PAY PLAN

ARTICLE 1.

INTRODUCTION

     1.1 Plan Name. The name of the Plan is the “AMDL, Inc. Executive Management Change in
Control Severance Pay Plan.”

     1.2 Plan Type. The Plan is an unfunded plan maintained by the Company primarily for
the purpose of providing benefits for a select group of management or highly compensated employees
and, as such, is intended to be exempt from the provisions of Parts 2, 3 and 4 of Subtitle 13 of
Title I of ERISA, to the extent such provisions would otherwise be applicable, by operation of
sections 201(2), 301(a)(3) and 401(a)(1) thereof respectively. The Plan is also intended to be
unfunded for tax purposes. The Plan will be construed in a manner that gives effect to such
intent.

     1.3 Plan Purpose. The purpose of the Plan is to provide benefits to Qualified
Employees whose employment is terminated in connection with a Change in Control.

ARTICLE 2.

DEFINITIONS, CONSTRUCTION AND INTERPRETATIONS

     The definitions and rules of construction and interpretation set forth in this Article 2 apply
in construing the Plan unless the context otherwise indicates.

     2.1 Affiliate. An “Affiliate” is:

          (a) any corporation at least a majority of whose outstanding securities ordinarily having the’
right to vote at elections of directors is owned directly or indirectly by the Parent Corporation;
or

          (b) any other form of business entity in which the Parent Corporation, by virtue of a direct
or indirect ownership interest, has the right to elect a majority of the members of such entity’s
governing body.

     2.2 Average Total Compensation. The “Average Total Compensation” of a Participant is
the average of his or her annual compensation over the three (3) complete fiscal years immediately
preceding the Change in Control or Notice of Termination. Average Total Compensation includes
regular cash salary, wages or commissions (determined before any reduction for deferrals pursuant
to any nonqualified deferred compensation plan or arrangement, qualified cash or deferred
arrangement or cafeteria plan), cash bonuses, stock grants, or options and the dollar value of all
non-cash perquisites.

     2.3 Base Pay. The “Base Pay” of a Participant is his or her base salary from the
Company at the annual rate in effect immediately prior to the Change in Control or at the
time Notice of Termination is given, whichever is greater, disregarding any decrease which
constitutes Good Reason for the Participant’s termination of employment. Base Pay includes only
regular cash salary, wages, or commissions and is determined before any reduction for deferrals
pursuant to any nonqualified deferred compensation plan or arrangement, qualified cash or deferred
arrangement or cafeteria plan.

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     2.4 Benefit Plan. A “Benefit Plan” is any:

          (a) employee benefit plan as defined in ERISA section 3(3),

          (b) cafeteria plan described in Code section 125,

          (c) plan, policy or practice providing for paid vacation, other paid time off or short- or
long-term profit sharing, bonus or incentive payments, or

          (d) stock option, stock purchase, restricted stock, phantom stock, stock appreciation right or
other equity-based compensation plan that is sponsored, maintained or contributed to by the Company
for the benefit of employees (and/or their families and dependents) generally or a Participant
(and/or a Participant’s family and dependents) in particular.

     2.5 Board. The “Board” is the board of directors of the Parent Corporation duly
qualified and acting at the time in question. On and after the date of a Change in Control, any
duty of the Board in connection with the Plan is non-delegable and any attempt by the Board to
delegate any such duty is ineffective.

     2.6 Cause.

          (a) Subject to Subsection (B), “Cause” with respect to a particular Participant is any of the
following:

               (i) the Participant’s gross misconduct which is materially and demonstrably injurious to the
Company;

               (ii) the Participant’s willful and continued failure to perform substantially his or her
duties with the Company (other than a failure resulting from the Participant’s incapacity due to
bodily injury or physical or mental illness) after a demand for substantial performance is
delivered to the Participant by the Board which specifically identifies the manner in which the
Board believes that the Participant has not substantially performed his or her duties and provides
for a reasonable period of time within which the Participant may take corrective measures; or

               (iii) the Participant’s conviction (including a plea of nolo contendere) of willfully engaging
in illegal conduct constituting a felony or gross misdemeanor under federal or state law (or
comparable illegal conduct under the laws of any foreign jurisdiction) which is materially and
demonstrably injurious to the Company or which impairs the Participant’s ability substantially to
perform his or her duties with the Company.

An act or failure to act will be considered “gross” or “willful” for this purpose only if done, or
omitted to be done, by the Participant in bad faith and without reasonable belief that it was in,
or not opposed to, the best interests of the Company. Any act, or failure to act, based upon
authority given pursuant to a resolution duly adopted by the board of directors or governing body
of any Company (or a committee thereof) or based upon the advice of counsel for the Company will be
conclusively presumed to be done, or omitted to be done, by the Participant in good faith and in
the best interests of the Company. A Participant’s attention to matters not directly related to
the business of the Company will not provide a basis for termination for Cause so long as the Board
did not expressly disapprove in writing of his or her engagement in such activities either before
or within a reasonable period of time after the Board knew or could reasonably have known that the
Participant engaged in those activities.

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          (b) Notwithstanding Subsection (A), a Participant may not be terminated for Cause unless and
until there has been delivered to such Participant a copy of a resolution duly adopted by the
affirmative vote of not less than a majority of the entire membership of the Board (excluding such
Participant) at a meeting of the Board called and held for such purpose (after reasonable notice to
such Participant and an opportunity for such Participant, together with his or her counsel, to be
heard before the Board), finding that in the good faith opinion of the Board such Participant was
guilty of the conduct set forth in clause (1), (2) or (3) of Subsection (A) and specifying the
particulars thereof in detail.

     2.7 Change in Control.

          (a) Subject to Subsection (13) below, “Change in Control” is the occurrence of any of the
following on or after March 28, 2008:

               (i) the sale, lease, exchange or other transfer, directly or indirectly, of all or
substantially all of the assets of the Parent Corporation, in one transaction or in a series of
related transactions, to any Person;

               (ii) the approval by the shareholders of the Parent Corporation of any plan or proposal for
the liquidation or dissolution of the Parent Corporation;

               (iii) any Person, other than a “bona fide underwriter” (as defined below) is or becomes the
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
(a) 20 percent or more, but not more than 50 percent, of the combined voting power of the Parent
Corporation’s outstanding securities ordinarily having the right to vote at elections of directors,
unless the transaction resulting in such ownership has been approved in advance by the “continuity
directors” (as defined below) or (b) more than 50 percent of the combined voting power of the
Parent Corporation’s outstanding securities ordinarily having the right to vote at elections of
directors (regardless of any approval by the continuity directors);

               (iv) a merger or consolidation to which the Parent Corporation is a party if the shareholders
of the Parent Corporation immediately prior to the effective date of such merger or consolidation
have, solely on account of ownership of securities of the Parent
Corporation at such time, “beneficial ownership” (as defined in Rote 13d-3 under the Exchange
Act) immediately following the effective date of such merger or consolidation of securities of the
surviving company representing (a) 50 percent or more, but not more than 80 percent, :f the
combined voting power of the surviving corporation’s then outstanding securities ordinarily having
the right to vote at elections of directors, unless such merger or consolidation has been approved
in advance by the continuity directors, or (b) less than 50 percent of the combined voting power of
the surviving corporation’s then outstanding securities ordinarily having the right to vote at
elections of directors (regardless of any approval by the continuity directors);

               (v) the continuity directors cease for any reason to constitute at least a majority the Board;
or

               (vi) a change in control of a nature that is determined by outside legal counsel to the Parent
Corporation, in a written opinion specifically referencing this provision of the Plan, to be
required to be reported (assuming such event has not been “previously reported’) pursuant to
section 13 or 15(d) of the Exchange Act, whether or not the Parent Corporation is then subject to
such reporting requirement, as of the effective date of such change in control.

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          (b) For purposes of this section:

               (i) “continuity director means any individual who was a member of the Board on March 28, 2008,
while he or she is a member of the Board, and any individual who subsequently becomes a member of
the Board whose election or nomination for election by the Parent Corporation’s shareholders was
approved by a vote of at least a majority of the directors who are continuity directors (either by
a specific vote or by approval of the proxy statement of the Parent Corporation in which such
individual is named as a nominee for director without objection to such nomination);

               (ii) “bona fide underwriter” means a Person engaged in business as an underwriter of
securities that acquires securities of the Parent Corporation through such Person’s participation
in good faith in a firm commitment underwriting until the expiration of 40 days after the date of
such acquisition; and

               (iii) Change in Control shall not include any event or occurrence which would not have been
consummated had the securities of the Parent Corporation beneficially owned by, or subject to the
voting control of, the Participant not been outstanding at the time of shareholder approval of such
event or occurrence.

     2.8 Code. The “Code” is the Internal Revenue Code of 1986, as amended Any reference
to a specific provision of the Code includes a reference to such provision as it may be amended
from time to time and to any successor provision.

     2.9 Company. The “Company” is the Parent Corporation, any Successor, and any
Affiliate.

     2.10 Date of Termination. The “Date of Termination” with respect to a Participant
following a Change in Control (or prior to a Change in Control if the Participant’s termination was
either a condition of the Change in Control or was at the request or insistence of any Person
related to the Change in Control) means;

          (a) if the Participant’s employment is to be terminated by the Participant for Good Reason,
the date specified in the Notice of Termination which in no event may be a date more than 15 days
after the date on which Notice of Termination is given unless the Company agrees in writing to a
later date;

          (b) if the Participant’s employment is to be terminated by the Company for Cause, the date
specified in the Notice of Termination;

          (c) if the Participant’s employment is terminated by reason of his or her death, the date of
his or her death; or

          (d) if the Participant’s employment is to be terminated by the Company for any reason other
than Cause or his or her death, the date specified in the Notice of Termination, which in no event
may be a date earlier than 15 days after the date on which a Notice of Termination is given, unless
the Participant expressly agrees in writing to an mailer date.

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If the Company terminates a Participant’s employment for Cause and the Participant has not
previously expressly agreed in writing to the termination, then within the 30-day period after the
Participant’s receipt of the Notice of Termination, the Participant may notify the Company that a
dispute exists concerning the termination, in which event the Date of Termination will be the date
set either by mutual written agreement of the parties or by the arbitrators or a court in a
proceeding as provided in Section 5.4. During the pendency of any such dispute, the Participant
will continue to make himself or herself available to provide services to the Company and the
Company will continue to pay the Participant his or her full compensation and benefits in effect
immediately prior to the date on which the Notice of Termination is given (without regard to any
changes to such compensation or benefits which constitute Good Reason) and until the dispute is
resolved in accordance with Section 5.4. The Participant will be entitled to retain the full
amount of any such compensation and benefits without regard to the resolution of the dispute unless
the arbitrators or judge decide(s) that the Participant’s claim of a dispute was frivolous or
advanced by the Participant in bad faith.

     2.11 Eligible Participant. An ‘Eligible Participant” is a Participant who has become
eligible to receive benefits pursuant to Section 3.3.

     2.12 ERISA. “ERISA” is the Employee Retirement Income Security Act of 1974, as
amended, Any reference to a specific provision of ERISA includes a reference to such provision as
it may be amended from time to time and to any successor provision.

     2.13 Exchange Act. The “Exchange Act” is the Securities Exchange Act of 1934, as
amended. Any reference to a specific provision of the Exchange Act or to any rule or regulation
thereunder includes a reference to such provision as it may be amended from time to time and to any
successor provision.

     2.14 Good Reason.

          (a) Subject to Subsection (iii), “Good Reason” with respect to a Participant is any of the
following:

               (i) a material diminution in the Participant’s status, position(s), duties or responsibilities
as an executive of the Company as in effect at any time during the 90-day period ending on the date
of the Change in Control (other than, if applicable, any such change directly attributable to the
fact that the Parent Corporation is no longer publicly owned); provided, however, that Good Reason
does not include a change in a Participant’s status, position(s), duties or responsibilities caused
by an insubstantial and inadvertent action that is remedied by the Company promptly after receipt
of notice of such change is given by the Participant;

               (ii) a material diminution by the Company in the Participant’s Base Pay, or a materially
adverse change in the foam or timing of the payment thereof, as in effect immediately prior to the
Change in Control or as thereafter increased;

               (iii) the failure by the Company to cover the Participant under Benefit Plans that, in the
aggregate, provide substantially similar benefits to the Participant and/or his or her family and
dependents at a substantially similar total cost to the Participant (e.g., premiums, deductibles,
co-pays, out of pocket maximums, required contributions, taxes and the like) relative to the
benefits and total costs under the Benefit Plans in which the Participant (and/or his or her family
or dependents) is participating at any time during the 90-day period immediately preceding the
Change in Control, but only if the diminution in coverage is material in amount ;

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               (iv) the Company’s requiring a Participant to be based more than 30 miles from where his or
her office is located immediately prior to the Change in Control (but only if such change results
in a material adverse change in the geographic location at which the Participant performs his
services), except for required travel on the Company’s business, and then only to the extent
substantially consistent with the business travel obligations which the Participant undertook on
behalf of the Company during the 90-day period ending on the date of the Change in Control (without
regard to travel related to or in anticipation of the Change in Control).

          (b) A Participant shall provide notice to the Company of any of the above conditions with in
90 days of the initial existence of the condition. Upon receipt of such notice, the company shall
be 30 days to remedy the condition. If the condition is not remedied within said 30-day period,
then the Participant can terminate employment with the Company for Good Reason. Termination by a
Participant of his or her employment for Good Reason as defined in this section will constitute
Good Reason for all purposes of this Plan, notwithstanding that the Participant may also thereby be
deemed to have “retired” under any applicable retirement Programs of the Company.

     2.15 Governing Law. To the extent that state law is not preempted by provisions of
ERISA or any other laws of the United States, all questions pertaining to the construction,
validity, effect and enforcement of this Plan will be determined in accordance with the
internal, substantive laws of the State of California, without regard to the conflict of laws
principles of the State of California or of any other jurisdiction.

     2.16 Headings. The headings of articles and sections are included solely for
convenience. If there is a conflict between the headings and the text of the Plan, the text will
control.

     2.17 Notice of Termination. A “Notice of Termination” is a written notice given on or
after the date of a Change in Control (unless the termination before the date of the Change in
Control was either a condition of the Change in Control or was at the request or insistence of any
Person related to the Change in Control) which indicates the specific termination provision in this
Plan pursuant to which the notice is given. Any purported termination by the Company or by a
Participant for Good Reason on or after the date of a Change in Control (or before the date of the
Change in Control if the termination was either a condition of the Change in Control or was at the
request or insistence of any Person related to the Change in Control) must be communicated by
written Notice of Termination to be effective; provided, that a Participant’s failure to provide
Notice of Termination will not limit any of his or her rights under the Plan except to the extent
the Company demonstrates that it suffered material actual damages by reason of such failure.

     2.18 Number and Gender. Wherever appropriate, the singular number may be read as the
plural, the plural number may be read as the singular and a reference to one gender may be read as
a reference to the other.

     2.19 Parent Corporation. The “Parent Corporation” is AMDL, Inc. and any Successor.

     2.20 Participant. A “Participant” is a Qualified Employee who is participating in the
Plan pursuant to Article 3.

     2.21 Plan. The “Plan” is that set forth in this instrument as it may be amended from
time to time.

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     2.22 Person. A “Person” includes any individual, corporation, partnership, group,
association or other “person,” as such term is used in section 14(d) of the Exchange Act, other
than the Parent Corporation, any Affiliate or any benefit plan sponsored by the Parent Corporation
or an Affiliate.

     2.23 Qualified Employee. A “Qualified Employee” is an individual who (a) at any time
during the 90-day period ending on the date of a Change in Control, is employed by the Parent
Corporation as Chief Executive Officer and/or President and (b) is not a party to a separate
written agreement with the Company which by its express terms specifically provides that the
individual is not eligible to participate in the Plan.

     2.24 Successor. A “Successor” is any Person that succeeds to, or has the practical
ability to control (either immediately or solely with the passage of time), the Parent
Corporation’s business directly, by merger, consolidation or other form of business
combination, or indirectly, by purchase of the Parent Corporation’s outstanding securities
ordinarily having the right to vote at the election of directors, all or substantially all of its
assets or otherwise.

ARTICLE 3.

PARTICIPATION AND ELIGIBILITY FOR BENEFITS

     3.1 Commencement of Participation. An individual who is employed as a Qualified
Employee prior to the date of a Change in Control will be eligible to participate in the Plan. An
individual who is hired as a Qualified Employee on or after the date of a Change in Control is not
eligible to participate in the Plan.

     3.2 Ceasing to be a Qualified Employee.

          (a) A Participant who ceases for any reason to be a Qualified Employee will, except with
respect to any current or future benefit to which he or she is then entitled, thereupon cease his
or her participation in the Plan.

          (b) Notwithstanding any other provision of the Plan to the contrary, a Participant will cease
to be a Qualified Employee if, prior to the date of a Change in Control: (1) an Affiliate is sold,
merged, transferred or in Arty other manner or for any other reason ceases to be an Affiliate or
all or any portion of the business or assets of an Affiliate are sold, transferred or otherwise
disposed of and no Change in Control occurs in connection therewith; (2) the Participant’s primary
employment duties arc with the Affiliate at the lime of the occurrence of such event; and (3) such
Participant does not, in conjunction therewith, transfer employment directly to the Parent
Corporation or another affiliate as a Qualified Employee,

     3.3 Eligibility for Benefits.

          (a) A Participant will become eligible for the benefits provided in Article 4 if and only if
(1) (a) the Company terminates his or her employment for any reason other than his or her death or
Cause or (b) the Participant terminates employment with the Company for Good Reason and (2) the
termination occurs within the period beginning on the date of a Change in Control and ending on the
last day of the twelfth month that begins after the month in which the Change in Control occurs or
prior to a Change in Control if the termination was either a condition of the Change in Control or
at the request or insistence of a Person related to the Change in Control.

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          (b) If, on or after the date of a Change in Control, an Affiliate is sold, merged, transferred
or in any other manner or for any other reason ceases to be an Affiliate or all or any portion of
the business or assets of an Affiliate are sold, transferred or otherwise disposed of and the
acquiror is not the Parent Corporation or an Affiliate (a “Disposition”), any individual who was a
Qualified Employee immediately prior to the Disposition and who remains or becomes employed by the
acquiror or an affiliate of the acquiror (as defined in Section 2.1 but substituting “acquiror” for
“Parent Corporation”) in connection with the Disposition will be deemed to have terminated
employment on the effective date of the Disposition for purposes of Subsection (A) unless (I) the
acquiror and its affiliates jointly and
severally expressly assume and agree, in a manner that is enforceable by the individual, to
perform the obligations of this Plan to the same extent that the Company would be required to
perform if the Disposition had not occurred and (2) the Successor guarantees, in a manner that is
enforceable by the individual, payment and performance by the acquiror.

ARTICLE 4.

BENEFITS

     4.1 Compensation and Benefits Before Date of Termination. During the period beginning
on the date a Participant or the Company, as the case may be, receives Notice of Termination and
ending on the Date of Termination, the Company will continue to pay the Participant his or her Base
Pay and cause his or her continued participation in all Benefit Plans in accordance with the terms
of such Benefit Plans.

     4.2 Cash Payment.

          (a) The Company will make a cash payment to an Eligible Participant in an amount equal to
three hundred percent (300%) of the Eligible Participant’s Average Total Compensation.

          (b) The amount determined under Subsection (A) will be paid in a single lump sum within ten
days after the Eligible Participant’s Date of Termination or, if later, within ten business days
following the date of the Change in Control.

          (c) It is intended that all payments under this Section 4.2 are subject to a substantial risk
of forfeiture (within the meaning of Treasury Regulations Section 1.409A-1(d)). Thus,
notwithstanding anything in this Section 4.2 to the foregoing to the contrary, all payments shall
be made on or before the later of (i) the 15th day of the third month following the end of the
Eligible Participant’s taxable year in which the payment is no longer subject to a risk of
forfeiture, or (ii) the 15th day of the third month following the end of the Company’s taxable year
in which the right to the payment is no longer subject to a risk of forfeiture.

     4.3 Continuation of Certain Welfare Benefits.

          (a) During the period described in Subsection (B), the Company will maintain, or continue to
reimburse or pay on behalf of the Eligible Participant, as the case may be, medical, dental and
life insurance plans which by their terms cover each Eligible Participant (and his or her family
members and dependents who were eligible to be covered at arty time during the 90-day period ending
on the date of a Change in Control for the period after the Change in Control in which such family
members and dependents would otherwise continue to be covered under the terms of the plan in effect
immediately prior to the Change in Control) under the same terms and at the same cost to the
Eligible Participant and his or her family members and dependents as similarly

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situated executives
who continue to be employed by the Company (without regard to any reduction in such benefits that
constitutes Good Reason). The continuation period under applicable federal and state continuation
laws will begin to run from the date on which coverage pursuant to this Section 4.3 ends. All
reimbursements under this Section 4.3(A) shall be made on or before the last day of the
Eligible Participant’s taxable year following the taxable year in which the expense was
incurred.

          (b) For purposes of Subsection (A), the continuation period with respect to any particular
plan is the period beginning on an Eligible Participant’s Date of Termination and ending on the
earlier of (1) the last day of the twelfth month that begins after the Eligible Participant’s Date
of Termination, (2) the date after the Eligible Participant’s Date of Termination on which the
Eligible Participant first becomes eligible to participate as an employee in a plan of another
employer providing benefits to the Eligible Participant and his or her eligible family members and
dependents which plan does not contain any exclusion or limitation with respect to any pre-existing
condition of the Eligible Participant or any eligible family member or dependent who would
otherwise be covered under the Company’s plan but for this clause (2), or (3) the date of the
Eligible Participant’s death.

          (c) To the extent an Eligible Participant incurs a tax liability (including federal, state and
local taxes and any interest and penalties with respect thereto) in connection with a benefit
provided pursuant to Subsection (A) which he or she would not have incurred had he or she been an
active employee of the Company participating in the Company’s Benefit Plan, the Company will make a
payment to the Eligible Participant in an amount equal to such tax liability plus an additional
amount sufficient to permit the Eligible Participant to retain a net amount after all taxes
(including penalties and interest) equal the initial tax liability in connection with the benefit.
For purposes of applying the foregoing, an Eligible Participant’s tax rate will be deemed to be the
highest statutory marginal state and federal tax rate (on a combined basis) then in effect. The
payment pursuant to this subsection will be made within ten days after the Eligible Participant’s
remittal of a written request therefor accompanied by a statement indicating the basis for and
amount of the liability; provided, however, that in no event shall payment occur after then end of
the Eligible Participant’s taxable year next following the taxable year in which the tax liability
is incurred.

     4.4 Gross-Up Payments. Following a Change in Control, the Company will cause its
independent auditors promptly to review, at the Company’s sole expense, the applicability of Code
section 4999 to any payment or distribution of any type by the Company to or for the benefit of an
Eligible Participant, whether paid or payable or distributed or distributable pursuant to the terms
of the Plan, any Benefit Plan or otherwise (the “Total Payments”). If the auditor determines that
the Total Payments result in an excise tax imposed by Code section 4999 or any comparable state or
local law, or any interest or penalties with respect to such excise tax (such excise tax, together
with any such interest and penalties, are collectively referred to as the “Excise Tax”), the
Company will make an additional cash payment (a “Gross-up Payment”) to the Eligible Participant
within ten days after such determination equal to an amount such that after payment by the Eligible
Participant of all taxes (including any interest or penalties imposed with respect to such taxes),
including any Excise Tax, imposed upon the Gross-Up Payment, the Eligible Participant would retain
an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Total Payments. For
purposes of the foregoing determination, an Eligible Participant’s tax rate will be deemed to be
the highest statutory marginal state and federal tax rate (on a combined basis) then in effect. If
no determination by the Company’s auditors is made prior to the time a tax return reflecting the
Total Payments is required to be filed by the Eligible Participant, he or she will be entitled to
receive from the Company a Gross-Up Payment calculated on the basis of the Excise Tax he or
she reported in such tax return, within ten days after the later of the date on which he or she
files such tax return or

- 9 -

 

the date on which he or she provides a copy thereof to the Company. In
all events, if any tax authority determines that a greater Excise Tax should be imposed upon the
Total Payments than is determined by the Company’s independent auditors or reflected in the
Eligible Participant’s tax return pursuant to this Section 4A, the Eligible Participant is entitled
to receive from the Company the full Gross-Up Payment calculated on the basis of the amount of
Excise Tax determined to be payable by such tax authority within ten days after he or she notifies
the Company of such determination. Notwithstanding anything in this Section 4.4 to the contrary,
all payments hereunder shall be made by the end of the Eligible Participant’s taxable year next
following the Eligible Participant’s taxable year in which the Eligible Participant remits the
Excise Tax or if the payment is to be made following an audit so long as the payment is made by the
end of the Eligible Participant’s taxable year in which the Excise Tax which is the subject of the
audit or litigation is paid to the taxing authority.

     4.5 Indemnification. Following a Change in Control, the Company will indemnify and
advance expenses to an Eligible Participant to the Ball extent permitted by law for damages, costs
and expenses (including, without limitation, judgments, fines, penalties, settlements and
reasonable fees and expenses of the Participant’s counsel) incurred in connection with all matters,
events and transactions relating to such Eligible Participant’s service to or status with the
Company or any other corporation, employee benefit plan or other entity with whom the Eligible
Participant served at the request of the Company.

ARTICLE 5.

ADMINISTRATION AND ENFORCEMENT OF RIGHTS

     5.1 Plan Administration. The Board has the power and authority to construe, interpret
and administer the Plan. Prior to the date of a Change in Control, the Board may delegate such
power and authority to any committee or individual but such delegation will automatically cease to
be effective on the date of a Change in Control. Prior to (but not after) the date of a Change in
Control, the power and authority of the Board and any individual or committee to whom such power
and authority is in whole or in part delegated is discretionary as to all matters.

     5.2 Amendment and Termination.

          (a) Poor to the date of a Change in Control, the Board may amend the Plan from time to time in
such respects as the Board may deem advisable; provided, that the effective date of any amendment
that adversely affects a Qualified Employee may not be less than one year after the date on which
the amendment is approved by the Board and, if a Change in Control occurs prior to the date on
which the amendment would otherwise be effective, the amendment automatically will be null and
void. On and after the date of a Change in Control, the Plan may be amended with respect to a
Participant only if he or she consents to the amendment in a written instrument signed by the
Participant.

          (b) The Board may terminate the Plan at any time; provided, first, that prior to the date of a
Change in Control, the effective date of the termination may not be less than one year after the
date on which the termination is approved by the Board; and, second, that the Plan cannot be
terminated, and no termination will become effective, within the period beginning on the date of a
Change in Control and ending on the last day of the twelfth month that begins after the month in
which the Change in Control occurs.

          (c) Any amendment or termination of the Plan must be set forth in a written instrument
approved by the Board and signed by at least two officers of the Parent Corporation.

- 10 -

 

     5.3 Benefit Claims. A person whose employment relationship with the Company has
terminated and who has not been awarded benefits under the Plan or who objects to the amount of the
benefits so awarded may, within 90 days after his or her employment has terminated, file a written
request for benefits with the Board. The Board will review such request and will notify the
claimant of its decision within 60 days after such request is filed. If the Board denies the claim
for benefits, the notice of the denial will contain.

          (a) the specific reason for the denial,

          (b) a specific reference to the provision of the Plan on which denial is based,

          (c) a description of any additional information or material necessary for the person to
perfect his or her claim (and sit explanation of why such information is material or necessary),
and

          (d) an explanation of the Plan’s claim review procedure.

If the Board determines that a claimant is not eligible for benefits, or if the claimant believes
that he or she is entitled to greater or different benefits, the claimant may file a petition for
review with the Board within 60 days after the claimant receives the notice issued by the Board.
Within 60 days after the Board receives the petition, the Board will give the claimant (and his or
her counsel, if any) an opportunity to present his or her position to the Board orally or in
writing, and the claimant (or his or her counsel) will have the right to review the pertinent
documents. Within 60 days after the hearing (or the date of receipt of the petition if the
claimant presents his or her position in writing) the Board will notify the claimant of its
decision in writing, stating the decision and the specific provisions of the Plan on which the
decision is based.

     5.4 Disputes.

          (a) If a Participant so elects, any dispute, controversy or claim arising under or in
connection with this Plan will be settled exclusively by binding arbitration in Orange County,
California in accordance with the Employee Benefit Plan Claims Arbitration Rules of the American
Arbitration Association, incorporated by referenced herein. Judgment may be entered on the
arbitrator’s award in any court having jurisdiction; provided, that a Participant may seek specific
performance of his or her right to receive benefits until the Date of Termination during the
pendency of any dispute or controversy arising under or in
connection with the Plan. If any dispute, Controversy or claim for damages arising under or
in connection with this 1)1= is settled by arbitration, the Company will pay, or if elected by the
Participant, reimburse, all fees, costs and expenses incurred by a Participant related to such
arbitration.

          (b) If a Participant does not elect arbitration, he or she may pursue all available legal
remedies. The Company will pay, or if elected by the Participant, reimburse each Participant for,
all fees, costs and expenses incurred by such Participant in connection with any actual, threatened
or contemplated litigation relating to this Plan to which the Participant is or reasonably expects
to become a party, whether or not initiated by the Participant, if the Participant is successful in
recovering any benefit under this Plan as a result of such action,

          (c) The Company will not assert in any dispute or controversy with any Participant arising
under or in connection with this Plan the Participant’s failure to exhaust administrative remedies.

- 11 -

 

ARTICLE 6.

MISCELLANEOUS

     6.1 Successors. The Parent Corporation will require any Successor to expressly assume
and agree to perform the obligations of this Plan in the same manner and to the same extent that
the Parent Corporation would be required to perform if no such succession had taken place. The
date on which any such succession becomes effective will be deemed the Date of Termination and
Notice of Termination will be (teemed to have been given on such date. A Successor has no rights,
authority, or power with respect to the Plan prior to a Change in Control.

     6.2 Binding Plan. This Plan is for the benefit of, and is enforceable by, each
Participant, each Participant’s personal and legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees, but each Participant may not otherwise
assign any of his or her rights or delegate any of his or her obligations under this Plan. If a
Participant dies after becoming entitled to, but before receiving, any amounts payable under this
Plan, all such amounts, unless otherwise provided in this Plan, will be paid in accordance with the
terms of this Plan to such Participant’s devisee, legatee or other designee or, if there be no such
designee, to such Participant’s estate.

     6.3 Validity. The invalidity or unenforceability of any provision of the Plan does
not affect the validity or enforceability of any other provision of the Plan, which will remain in
full force and effect

     6.4 No Mitigation. No Eligible Participant will be required to mitigate the amount of
an benefits the Company becomes obligated to provide in connection with this Plan by seeking other
employment or otherwise and the benefits to be provided in connection with this Plan may not be
reduced, offset or subject to recovery by the Company by any benefits an Eligible Participant may
receive from other sources.

     6.5 No Set-Off. The Company has no right to setoff benefit owed under this Plan
against amounts owed or claimed to be owed by an Eligible Participant to the Company under this
Plan or otherwise.

     6.6 Taxes. All benefits to be provided to each Eligible Participant in connection
with this Plan will be subject to required withholding of federal, state, and local income, excise,
and employment-related taxes.

     6.7 Notices. For the purposes of this Plan, notices and all other communications
provided for in, or required under, this Plan must be in writing and will be deemed to have been
duly given when personally delivered or when mailed by United States registered or certified mail,
return receipt requested, postage prepaid and addressed to each Participant’s or the Company’s (as
the case may be) respective address (provided that all notices to the Company must be directed to
the attention of the chair of the Board, or if no such chair has been designated, to a member of
the Compensation Committee of the Board). For purposes of any such notice requirement, the Company
will use the Participant’s most current address on file in the Company’s personnel records. Any
notice of a Participant’s change of address will be effective only upon receipt by the Company.

     6.8 Effect of Plan Benefits on Other Severance Plans. A Participant who receives any
payment under the terms of this Plan will not be eligible to receive benefits under any other
severance pay plan sponsored or maintained by the Company.

- 12 -

 

     6.9 Related Plans. To the extent that any provision of any other Benefit Plan or
agreement between the Company and a Participant limits, qualifies or is inconsistent with any
provision of this Plan, then for purposes of this Plan, while such other Benefit Plan or agreement
remains in force, the provision of this Plan will control and such provision of such other Benefit
Plan or agreement will be deemed to have been superseded, and to be of no force or effect, as if
such other agreement had been formally amended to the extent necessary to accomplish such purpose.
Nothing in this Plan prevents or limits a Participant’s continuing or future participation in any
Benefit Plan provided by the Company, and nothing in this Plan limits or otherwise affects the
rights Participants may have under any Benefit Plans or other agreements with the Company. Amounts
that are vested benefits or which Participants are otherwise entitled to receive under any Benefit
Plan or other agreement with the Company at or subsequent to the Date of Termination will be
payable in accordance with such Benefit Plan or other agreement.

     6.10 No Employment or Service Contract. Nothing in this Plan is intended to provide
any Participant with any right to continue in the employ of the Company for any period of specific
duration or interfere with or otherwise restrict in any way Participant’s rights or the rights of
the Company, which rights are hereby expressly reserved, to terminate a Participant’s employment at
any time for any reason or no reason whatsoever, with or without cause.

     6.11 Survival. The respective obligations of, and benefits afforded to, the Company
and the Participants which by their express terms or clear intent survive termination of a
Participant’s employment with the Company or termination of this Plan, as the case may be,
will remain in full force and effect according to their terms notwithstanding the termination
of a Participant’s employment with the Company or termination of this Plan, as the case may be.

     6.12 Effect. Unless otherwise expressly provided therein, benefits paid or payable
under the Plan will not be deemed to be salary or compensation for purposes of determining the
benefits to which a Participant may be entitled under any other Benefit Plan sponsored, maintained,
or contributed to by the Company.

     6.13 Prohibition of Alienation. No Participant will have the right to alienate,
assign, encumber, hypothecate, or pledge his or her interest in any benefit provided under the
Plan, voluntarily or involuntarily, and any attempt to so dispose of any interest will be void.

     6.14 Section 409A. It is intended that all payments under this Plan either satisfy
the rules under Section 409A of the Internal Revenue Code of 1986, as amended or qualify for
exceptions from such rules and the Plan shall be interpreted consistent therewith.

- 13 -exv10w6

 

Exhibit 10.6

PROMISSORY NOTE

 

 

	 	 	 	 	 	 	 
	Borrower:

	 	FinTech Acquisition Corp.

c/o The Bancorp, Inc.

405 Silverside Road

Wilmington, DE 19809
	 	Lender:
	 	TBBK Acquisitions I, LLC

c/o The Bancorp, Inc.

405 Silverside Road

Wilmington, DE 19809
	 
	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Principal Amount:

	 	$	100,000.00	 	 	Initial Rate:
	 	 	6.250	%	 	Date of Note:
	 	March 24, 2008

PROMISE TO PAY. FinTech Acquisition Corp. (“Borrower”) promises to pay to the order of TBBK
Acquisitions I, LLC (“Lender”), in lawful money of the United States of America, the principal
amount of One Hundred Thousand Dollars and 00/00 ($100,000.00), together with interest on the
unpaid outstanding principal balance from the date hereof until paid in full.

PAYMENT. Borrower will pay this Loan in one principal payment of $100,000 plus interest on March
24, 2009. This payment due on March 24, 2009 will be for all principal, all accrued interest not
yet paid and any other sums due and payable hereunder. In addition, Borrower will pay regular
quarterly payments of all accrued unpaid interest due as of each payment date, beginning April 24,
2008, with all subsequent interest payments to be due on the same day of each quarter after that.
Unless otherwise agreed or required by applicable law, payments will be applied first to any
accrued unpaid interest, then to principal and, then to any late charges, and then to any unpaid
collection costs. The annual interest rate for this Note is computed on a 365/360 basis, that is,
by applying the ratio of the annual interest rate over a year of 360 days, multiplied by the
outstanding principal balance, multiplied by the actual number of days the principal balance is
outstanding. Borrower will pay Lender at Lender’s address shown above or at such other place as
Lender may designate in writing.

ADJUSTABLE INTEREST RATE. The interest rate on this Note is subject to change from time to time
based on changes in an independent index which is the Wall Street Journal Prime Rate of Interest,
which is defined as the highest “Prime Rate” published in the “Money Rates” section of the Wall
Street Journal (the “Index”). The Index is not necessarily the lowest rate charged by Lender on
its loans. If the Index becomes unavailable during the term of this loan, Lender may designate a
substitute index after notice to Borrower. Lender will tell Borrower the current Index rate upon
Borrower’s request. Borrower understands that Lender may make loans based on other rates as well.
The interest rate change will not occur more often than once each day. The Index currently is
5.250% per annum. The interest rate to be applied to the unpaid principal balance during the term
of this Note will be at a rate of 1.000 percentage point over the Index, resulting in an initial
annual rate of simple interest of 6.250%. NOTICE: Under no circumstances will the interest rate on
this Note be more than the maximum rate allowed by applicable law.

PREPAYMENT. Borrower may pay without penalty all or a portion of the amount owed earlier than it
is due. Early payments will not, unless agreed to by Lender in writing, relieve Borrower of
Borrower’s obligation to continue to make payments of accrued unpaid interest. Rather, they will
reduce the principal balance due and may result in Borrower’s making fewer payments. Borrower
agrees not to send Lender payments marked “paid in full”, “without recourse”, or similar language.
If Borrower sends such a payment, Lender may accept it without losing any of Lender’s rights under
this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All
written communications concerning disputed amounts, including any check or other payment instrument
that indicates that the payment constitutes “payment in full” of the amount owed or that is
tendered with other conditions or limitations or as full satisfaction of a disputed amount must be
mailed or delivered to: TBBK Acquisitions I, LLC, c/o Bancorp, Inc., 405 Silverside Road,
Wilmington, DE 19809.

LATE CHARGE. If a payment is 15 days or more late, Borrower will be charged $100.00, regardless of
any partial payments Lender has received.

INTEREST AFTER DEFAULT. Upon Default, including failure to pay upon final maturity, Lender, at its
option, may also, if permitted under applicable law, add any unpaid accrued interest and any other
sums due hereunder to principal and such sum shall bear interest therefrom until paid at the rate
provided in this Note (including any increased rate). Upon Default, the interest rate on this Note
shall increase by 3.00 percentage points (the “Default Rate Margin”). The Default Rate Margin
shall also apply to each succeeding interest rate change that would have applied had there been no
default. The interest rate will not exceed the maximum rate permitted by applicable law. If
judgment is entered in connection with this Note, interest will continue to accrue on this Note
after judgment at the interest rate applicable to this Note at the time judgment is entered.

DEFAULT. Each of the following shall constitute an event of default (each, a “Default”) under this
Note:

	 	 	Payment Default. Borrower fails to make any payment within one (1) business day after receipt
of written notice from Lender that such sum(s) are due under this Note.
	 
	 	 	Other Defaults. Borrower fails to comply with or to perform any other term, obligation,
covenant or condition contained in this Note or in any document related to this Note or to
comply with or to perform any term, obligation, covenant or condition contained in any other
agreement between Lender and Borrower within fifteen (15) days after receipt of written notice
from Lender of such Default.
	 
	 	 	Default in Favor of Third Parties. Borrower defaults under any loan, extension of credit,
security agreement, purchase or sales agreement, or any other agreement, in favor of any other
creditor or person that may materially affect any of Borrower’s property or Borrower’s ability
to repay this Note or perform Borrower’s obligations under this Note or any of the related
documents.
	 
	 	 	False Statements. Any warranty, representation or statement made or furnished to Lender by
Borrower or on Borrower’s behalf under this Note or in any document related to this Note is
false or misleading in any material respect, either now or at the time made or furnished or
becomes false or misleading at any time thereafter.
	 
	 	 	Death or Insolvency. The death of Borrower or the dissolution or termination of Borrower’s
existence as a going business, the insolvency of Borrower, the appointment of a receiver,
trustee or custodian for any part of Borrower’s property, any assignment for the benefit of
creditors, any type of creditor workout, or the commencement of any proceeding under any
bankruptcy or insolvency laws by or against Borrower.
	 
	 	 	Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings,
whether by judicial proceeding, self-help, repossession or any other method, by any creditor of
Borrower or by any governmental agency against any collateral securing the loan.

1

 

	 	 	Judgment or Lien. Entry of judgment or filing of a lien against Borrower.
	 
	 	 	Attachment or Garnishment. Issuance of attachment or garnishment against Borrower.
	 
	 	 	Sale or Merger. Borrower shall sell or merge its business to or with any other person or entity
or shall dissolve or voluntarily suspend transaction of its business.
	 
	 	 	Adverse Change. A material adverse change occurs in Borrower’s financial condition, or Lender
believes the prospect of payment or performance of this Note is impaired.
	 
	 	 	Insecurity. Lender in good faith believes itself insecure.

LENDER’S RIGHTS. Upon Default, Lender may, after giving such notices as required by applicable
law, declare the entire unpaid principal balance on this Note and all accrued unpaid interest
immediately due, and then Borrower will pay that amount.

ATTORNEYS’ FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if
Borrower does not pay. Borrower also will pay Lender that amount. This includes, subject to any
limits under applicable law, Lender’s attorneys’ fees and Lender’s legal expenses, whether or not
there is a lawsuit, including attorneys’ fees and legal expenses for bankruptcy proceedings
(including efforts to modify or vacate any automatic stay or injunction) and appeals. If not
prohibited by applicable law, Borrower also will pay any court costs, in addition to all other sums
provided by law.

JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action,
proceeding, or counterclaim brought by either Lender or Borrower against the other.

GOVERNING LAW. This Note will be governed by, construed and enforced in accordance with federal
law and the laws of the Commonwealth of Pennsylvania. This Note has been accepted by Lender in the
Commonwealth of Pennsylvania.

CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lender’s request to submit to the
non-exclusive jurisdiction of the courts of the Commonwealth of Pennsylvania in any and all actions
or proceedings arising hereunder or pursuant hereto.

DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $25.00 if Borrower makes a payment on
Borrower’s loan and the check or preauthorized charge with which Borrower pays is later dishonored.

GENERAL PROVISIONS. This Note is payable on demand. The inclusion of specific default provisions
or rights of Lender shall not preclude Lender’s right to declare payment of this Note on its
demand. Lender may delay or forgo enforcing any of its rights or remedies under this Note without
losing them. Borrower and any other person who signs, guarantees or endorses this Note, to the
extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any
change in the terms of this Note, and unless otherwise expressly stated in writing, no party who
signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released
from liability. All such parties agree that Lender may renew or extend (repeatedly and for any
length of time) this loan or release any party or guarantor or collateral; or impair, fail to
realize upon or perfect Lender’s security interest in the collateral; and take any other action
deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree
that Lender may modify this loan without the consent of or notice to anyone other than the party
with whom the modification is made. The obligations under this Note are joint and several. If any
portion of this Note is for any reason determined to be unenforceable, it will not affect the
enforceability of any other provisions of this Note.

BORROWER’S REPRESENTATIONS. Borrower represents and warrants to Lender, the following: (a)
Borrower is not in default under any contract to which Borrower is a party, nor will the entering
into of the loan evidenced by this Note constitute a default under any contract to which Borrower
is a party; (b) There is no action or proceeding pending or threatened against or affecting
Borrower, which, if adversely determined, would impair the validity or enforceability of this Note
or any documents related hereto, or have a material adverse effect on the financial condition of
Borrower or any guarantor; and (c) There has not been any material adverse change in any collateral
securing this Note or in the financial condition of Borrower as reflected by any statements
submitted to Lender between the date Borrower applied for the loan and the date hereof.

USURY LIMITS. In the event that the interest provisions hereof or in any agreement related hereto,
shall result in an effective rate of interest which, for any period of time, exceeds the limit of
usury or other law applicable to the loan evidenced hereby, then Lender, at its sole discretion and
without notice to Borrower may: (a) apply all sums in excess of those lawfully collectible as
interest for the period in question toward repayment of outstanding principal immediately upon
receipt of such moneys by Lender with the same force and effect as if Borrower had specifically
designated such extra sums to be so applied to principal; or (b) reduce or limit the collection of
any interest to such sums which shall not result in any payment of interest in excess of that
lawfully collectible. Borrower agrees that in determining whether or not any interest payable
under this Note exceeds the highest rate permitted by law, any non-principal payment, including
without limitation late charges, shall be deemed, to the extent permitted by law, to be an expense,
fee, premium or penalty, rather than interest.

ADDITIONAL PROVISIONS. Borrower and any other person who signs, guarantees or endorses this Note,
to the extent allowed by law, waive all other notices in connection with the delivery, acceptance,
performance, default or enforcement of the payment of this Note, and they agree that the liability
of each of them shall be joint and several, unconditional, without regard to the liability of any
other party, and shall not be affected in any manner by any indulgence, extension of time, renewal,
waiver or modification granted or consented to by Lender. Borrower hereby waives and releases all
errors, defects and imperfections in any proceedings instituted by Lender under the terms of this
Note or any agreement related to this Note, as well as all benefit that might accrue to Borrower by
virtue of any present or future laws exempting any property, real or personal, securing this Note,
or any agreement related to this Note, or any part of the proceeds arising from any sale of such
property, from attachment, levy or sale under execution, or providing for any stay of execution,
homestead exemption, exemption from civil process, or extension of time for payment and Borrower
agrees that any real or personal property that may be levied upon pursuant to a judgment obtained
by virtue hereof, in any writ of execution issued thereon, may be sold upon any such writ in whole
or in part in any order desired by Lender. Borrower consents to immediate execution of any
judgment.

INTERPRETATION. In all cases where there is more than one Borrower, then all words used in the
singular shall be deemed to have been used in the plural where the context and construction so
require; and where there is more than one Borrower named in this Note or when this Note is executed
by more than one Borrower, the word “Borrower” shall mean all and any one or more of them. Caption
headings in this Note are for convenience purposes only and are not to be used to interpret or
define the provisions of this Note. If a court of competent jurisdiction finds any provision of
this Note to be invalid or

2

 

unenforceable as to any person or circumstance, such finding shall not render that provision
invalid or unenforceable as to any other persons or circumstances, and all provisions of this Note
in all other respects shall remain valid and enforceable.

SUCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower’s
heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender
and Lender’s successors and assigns.

CONFESSION OF JUDGMENT. BORROWER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE
PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO
IMMEDIATELY OR HEREAFTER APPEAR AT ANY TIME FOR BORROWER WITH OR WITHOUT DEFAULT UNDER THIS NOTE
AND WITH OR WITHOUT COMPLAINT FILED, TO WAIVE THE ISSUANCE AND SERVICE OF PROCESS AND THEREIN TO
CONFESS OR ENTER JUDGMENT AGAINST BORROWER FOR THE ENTIRE UNPAID PRINCIPAL BALANCE OF THIS NOTE AND
ALL ACCRUED INTEREST, LATE CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING
TO ANY COLLATERAL SECURING THIS NOTE, TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY’S COMMISSION OF
FOUR PERCENT (4%) OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY
EVENT NOT LESS THAN FIVE HUNDRED DOLLARS ($500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE
EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS NOTE OR A COPY OF THIS NOTE VERIFIED BY
AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS NOTE TO CONFESS JUDGMENT
AGAINST BORROWER SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM
TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL THE AMOUNTS DUE UNDER THIS NOTE. LENDER
MAY CONFESS ONE OR MORE JUDGMENTS IN THE SAME OR DIFFERENT JURISDICTIONS FOR ALL OR ANY PART OF THE
AMOUNT OWING HEREUNDER, WITHOUT REGARD TO WHETHER JUDGMENT HAS THERETOFORE BEEN CONFESSED ON MORE
THAN ONE OCCASION FOR THE SAME AMOUNT. IN THE EVENT ANY JUDGMENT CONFESSED AGAINST BORROWER
HEREUNDER IS STRICKEN OR OPENED UPON APPLICATION BY OR ON BORROWER’S BEHALF FOR ANY REASON, LENDER
IS HEREBY AUTHORIZED AND EMPOWERED TO AGAIN APPEAR FOR AND CONFESS JUDGMENT AGAINST BORROWER FOR
ANY PART OR ALL OF THE AMOUNTS OWING HEREUNDER, AS PROVIDED FOR HEREIN, IF DOING SO WILL CURE ANY
ERRORS OR DEFECTS IN SUCH PRIOR PROCEEDINGS. BORROWER HEREBY KNOWINGLY, INTELLIGENTLY AND
VOLUNTARILY WAIVES ANY RIGHT BORROWER MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY
SUCH CONFESSION OF JUDGMENT AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED
THIS CONFESSION OF JUDGMENT PROVISION TO BORROWER’S ATTENTION OR BORROWER HAS BEEN REPRESENTED BY
INDEPENDENT LEGAL COUNSEL.

PRIOR TO SIGNING THIS NOTE, EACH BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE.
EACH BORROWER AGREES TO THE TERMS OF THIS NOTE AND HAS EXECUTED THIS NOTE INTENDING TO BE LEGALLLY
BOUND HEREBY.

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS NOTE.

THIS NOTE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS NOTE IS AND SHALL CONSTITUTE AND HAVE
THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW.

	 	 	 	 	 
	 	FINTECH ACQUISITION CORP.

 	 
	 	/s/ Martin F. Egan                                (SEAL)
 	 
	 	 	 
	 	 	 
	 

3

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