Document:

Exhibit

EXHIBIT 10.1

DATED AS OF NOVEMBER 30, 2016

T-MOBILE AIRTIME FUNDING LLC
as Funding Seller

BILLING GATE ONE LLC
as Purchaser

LANDESBANK HESSEN-THÜRINGEN Girozentrale
as Bank Purchasing Agent

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., DÜSSELDORF BRANCH
as Bank Collections Agent

T-MOBILE PCS HOLDINGS LLC
as Servicer
    
and

T-MOBILE US, INC.
as Performance Guarantor

SECOND AMENDED AND RESTATED
MASTER RECEIVABLES PURCHASE AGREEMENT

TABLE OF CONTENTS

	
					
	 
	 
	 
	Page

	1.
	Interpretation
	2
	

	2.
	Sale and Assignment
	23
	

	3.
	Servicing of Purchased Receivables
	30
	

	4.
	Fees and Payments; Increased Costs; Set-Off
	37
	

	5.
	Repurchase of Receivables; Allocation and Sharing of Losses
	40
	

	6.
	Representations and Warranties of the Funding Seller and the Performance
	 

	 
	Guarantor
	47
	

	7.
	Certain Covenants of the Funding Seller, the Servicer, the Performance
	 

	 
	Guarantor, the Bank Purchasing Agent and the Purchaser
	51
	

	8.
	Conditions Precedent
	57
	

	9.
	Indemnification By Funding Seller
	57
	

	10.
	Payments
	58
	

	11.
	Term; Termination
	59
	

	12.
	Confidentiality
	63
	

	13.
	Notices
	64
	

	14.
	Assignments
	64
	

	15.
	Amendments
	64
	

	16.
	Other Costs
	64
	

	17.
	Severability
	65
	

	18.
	Money Laundering
	65
	

	19.
	Performance Guarantee
	65
	

	20.
	Termination of KFW Guarantees
	67
	

	21.
	Purchasing Entities’ Undertakings related to German VAT
	67
	

	22.
	Bankruptcy
	68
	

	23.
	Limited Recourse against Wells Fargo
	68
	

	24.
	Choice of Law and Jurisdiction; Waiver of Jury Trial
	68
	

	25.
	Counterparts
	69
	

	26.
	Execution
	69
	

	27.
	Anti-Corruption; Sanctions
	69
	

	28.
	Acknowledgement and Consent to Bail-In of EEA Financial Institutions
	71
	

	SIGNANTURE PAGES
	 

	ANNEX 1
	ADDRESSES
	A-1
	

	ANNEX 2
	(Reserved)
	A-2
	

	ANNEX 3
	ELIGIBLE RECEIVABLES
	A-3
	

	ANNEX 4
	ORIGINATORS
	A-4
	

	ANNEX 5
	CONDITIONS PRECEDENT TO EACH PURCHASE
	A-5
	

	ANNEX 6
	FORM OF MONTHLY REPORT
	A-6
	

	ANNEX 7
	SCOPE OF ACCOUNTANT’S REPORT
	A-7
	

	ANNEX 8
	DATA CONFIDENTIALITY PROVISIONS
	A-8
	

	ANNEX 9
	FORM OF DT PAYMENT GUARANTEE
	A-9
	

	ANNEX 10
	TEMPLATE FOR INVOICES ON SERVICER FEE TO BE ISSUED BY 
	 

	 
	SERVICER SEPARATELY TO EACH BANK PURCHASER PURSUANT TO
	 

	 
	SECTION 4.3(b)
	A-10
	

	ANNEX 11
	LEVEL 4 RESERVE PERCENTAGES ON PRIOR SETTLEMENT 
	 

	 
	DATES
	A-11
	

THIS SECOND AMENDED AND RESTATED MASTER RECEIVABLES PURCHASE AGREEMENT (this “Agreement”) is dated as of November 30, 2016, and made
AMONG:
		
	(1)
	T-Mobile Airtime Funding LLC, a limited liability company organized under the laws of the State of Delaware, with its principal place of business at 12920 SE 38th Street, Bellevue, Washington, USA 98006 (“T-Mobile Funding” or the “Funding Seller”);

		
	(2)
	Billing Gate One LLC, a limited liability company organized under the laws of the State of Delaware, with its principal place of business at 919 N. Market Street, Suite 1600, Wilmington, Delaware, USA 19801 (the “Purchaser”);

		
	(3)
	Landesbank Hessen-Thüringen Girozentrale, a public law corporation incorporated under the laws of Germany, registered in the commercial register kept at the local court (Amtsgericht) of Frankfurt am Main under registration number HRA 29821 and the local court (Amtsgericht) of Jena under registration number HRA 102181, with its business address at Neue Mainzer Straße 52-58, 60311 Frankfurt am Main, Germany (“Helaba” or, in its capacity as Bank Purchasing Agent on behalf of the Bank Purchasers, the “Bank Purchasing Agent” and a “Co-Agent”); 

		
	(4)
	The Bank of Tokyo-Mitsubishi UFJ, Ltd., Düsseldorf branch, a bank incorporated under the laws of Japan, operating through its Düsseldorf Branch, which is registered with the commercial register (Handelsregister) of the local court (Amtsgericht) of Düsseldorf under registration number HRB 34094, with its seat at Breite Straße 34, 40213 Düsseldorf, Germany (“BTMU” or, in its capacity as Bank Collections Agent on behalf of the Bank Purchasers, the “Bank Collections Agent” and a “Co-Agent”);

		
	(5)
	T-Mobile PCS Holdings LLC, a Delaware limited liability company, with its business address at 12920 SE 38th Street, Bellevue, Washington, USA 98006, as Servicer (“T-Mobile PCS Holdings” or the “Servicer”); and

		
	(6)
	T-Mobile US, Inc., a Delaware corporation, with its business address at 12920 SE 38th Street, Bellevue, Washington, USA 98006 (the “Performance Guarantor” or “TMUS”).

PREAMBLE
		
	(A)
	On or about February 26, 2014 (the “Original Signing Date”):

		
	(i)
	T-Mobile PCS Holdings and the Originators entered into a receivables sale and conveyancing agreement, as amended from time to time (the “Conveyancing Agreement”), pursuant to which T-Mobile PCS Holdings (in such capacity, the “Initial Purchaser”) agreed to purchase Receivables and Related Rights from the Originators, and the Originators have agreed to sell certain Receivables and Related Rights to the Initial Purchaser;

		
	(ii)
	T-Mobile Funding and the Initial Purchaser entered into a receivables sale and contribution agreement, as amended from time to time (the “Contribution Agreement”), pursuant to which T-Mobile Funding agreed to purchase Receivables and Related Rights from the Initial Purchaser, and the Initial Purchaser agreed to sell or contribute Receivables and Related Rights to T-Mobile Funding that the Initial Purchaser has acquired pursuant to the Conveyancing Agreement;

		
	(iii)
	in order to enable the Funding Seller to purchase such Receivables and Related Rights from the Initial Purchaser pursuant to the Contribution Agreement, the Funding Seller and the Purchaser 

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entered into the Master Receivables Purchase Agreement, as amended from time to time (the “Master Receivables Purchase Agreement”), pursuant to which the Funding Seller sold to the Purchaser, and the Purchaser purchased from the Funding Seller, the Receivables and Related Rights that the Funding Seller had acquired pursuant to the Contribution Agreement;
		
	(iv)
	in order to enable the Purchaser to purchase the Receivables and Related Rights from the Funding Seller pursuant to the Master Receivables Purchase Agreement, the Bank Purchasing Agent, the Bank Purchasers and the Purchaser entered into the Onward Receivables Purchase Agreement (as amended and restated on the date hereof and as otherwise amended, restated, supplemented or otherwise modified from time to time, the “Onward Receivables Purchase Agreement”), pursuant to which the Purchaser agreed to sell to the Bank Purchasers, and the Bank Purchasers agreed to purchase from the Purchaser, undivided percentage ownership interests in such Receivables and Related Rights;

		
	(v)
	Helaba was requested to act, and since then has been acting, as Bank Purchasing Agent on behalf of the Bank Purchasers and their assigns in accordance with the terms of the Onward Receivables Purchase Agreement;

		
	(vi)
	T-Mobile PCS Holdings was requested to act, and since then has been acting, as the Servicer in accordance with the terms of the Master Receivables Purchase Agreement; and

		
	(vii)
	in order to induce the Purchaser to enter into the Master Receivables Purchase Agreement, the Performance Guarantor agreed to guaranty certain of the obligations of the Servicer, the Initial Purchaser and the Originators under the Transaction Documents. 

		
	(B)
	On June 6, 2016, BTMU was requested to act, and since then has been acting, as Bank Collections Agent on behalf of the Bank Purchasers and their assigns in accordance with the terms of the Onward Receivables Purchase Agreement.

		
	(C)
	The parties hereto desire to amend, restate and replace the Master Receivables Purchase Agreement in its entirety as provided herein.

IT IS AGREED as follows:
		
	1.
	Interpretation

		
	1.1
	Definitions

In this Agreement (including recitals hereto):
“1-Month LIBOR” means, for each Accrual Period, the percentage rate per annum for deposits in USD in a principal amount equal to not less than USD 1,000,000 having a maturity of one month displayed on the Bloomberg Screen two Business Days prior to the first day of such Accrual Period. If such rate is unavailable for any reason on such day, “1-Month LIBOR” shall be determined on the basis of the rates at which one-month deposits in USD are offered by four prime banks in the London interbank market reasonably selected by the Co-Agents (the “1-Month LIBOR Reference Banks”) at approximately 11:00 a.m. (London time) on such date, to prime banks in the London interbank market in an amount determined by the Co-Agents. If at least two such quotations are provided, “1-Month LIBOR” will be the arithmetic mean of the quotations rounded to four decimal places. If fewer than two quotations are provided, “1-Month LIBOR” will be the arithmetic mean of rates quoted by at least two major banks in New York City, reasonably selected by the Co-Agents, at approximately 11:00 a.m., New York City time, 

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on such date for one-month loans in USD to leading European banks in a principal amount equal to not less than USD 1,000,000; provided, however, that if fewer than two 1-Month LIBOR Reference Banks selected as aforesaid by the Co-Agents are quoting rates as mentioned above, “1-Month LIBOR” shall be the rate in effect for the previous Accrual Period. Notwithstanding the foregoing, with respect to the initial Accrual Period, “1-Month LIBOR” shall be determined through the use of straight-line interpolation by reference to two rates based on the relevant rates displayed on the Bloomberg Screen, one of which shall be determined as if the initial Accrual Period were one month in duration and the other of which shall be determined as if the initial Accrual Period were two months in duration. Any determination or selection required to be made by the Co-Agents pursuant to this paragraph shall be made by the Co-Agents acting in concert or, if the Co-Agents cannot agree to act in concert by the time prescribed, by either one of the Co-Agents acting at the direction of all of the Bank Purchasers whose LIBOR Rate is based on 1-Month LIBOR.
“3-Month LIBOR” means, for each Accrual Period, the percentage rate per annum for deposits in USD in a principal amount equal to not less than USD 1,000,000 having a maturity of three months displayed on the Bloomberg Screen two Business Days prior to the first day of such Accrual Period. If such rate is unavailable for any reason on such day, “3-Month LIBOR” shall be determined on the basis of the rates at which three-month deposits in USD are offered by four prime banks in the London interbank market reasonably selected by the Co-Agents (the “3-Month LIBOR Reference Banks”) at approximately 11:00 a.m. (London time) on such date, to prime banks in the London interbank market in an amount determined by the Co-Agents. If at least two such quotations are provided, “3-Month LIBOR” will be the arithmetic mean of the quotations rounded to four decimal places. If fewer than two quotations are provided, “3-Month LIBOR” will be the arithmetic mean of rates quoted by at least two major banks in New York City, reasonably selected by the Co-Agents, at approximately 11:00 a.m., New York City time, on such date for three-month loans in USD to leading European banks in a principal amount equal to not less than USD 1,000,000; provided, however, that if fewer than two 3-Month LIBOR Reference Banks selected as aforesaid by the Co-Agents are quoting rates as mentioned above, “3-Month LIBOR” shall be the rate in effect for the previous Accrual Period. 
“Account Bank Required Rating” means a short-term debt rating of at least A-1 by S&P and at least P-1 by Moody’s.
“Account Control Agreement” means the agreement originally dated on or about the Original Signing Date, as amended and restated on the date hereof and as otherwise amended, restated, supplemented or otherwise modified from time to time, among the Bank Collections Agent, the Purchaser, the Funding Seller and the Collection Account Bank entered into to perfect the security interest of the Bank Collections Agent and the Purchaser in the Collection Account.
“Accrual Period” means (A) initially, the period beginning on the Closing Date and ending on the first Settlement Date and (B) the period beginning on any Settlement Date and ending on the subsequent Settlement Date.
“Administration Fee” means the amount set forth in the applicable Fee Letter. 
“Adverse Claim” means a lien, security interest, trust, mortgage, hypothecation, charge, floating charge, pledge, assignment, deposit arrangement, easement, right of way, or any promise or irrevocable mandate or other encumbrance (including any lien by attachment, conditional sale, capital lease, retention of title, and any form of extended retention of title), or other right, claim, preference, priority, or other preferential arrangement in the nature of a security interest of any kind or nature whatsoever under the laws of any jurisdiction in, of or on any asset or property of a Person (including any UCC financing statement or any similar instrument of any jurisdiction filed against such Person, its assets or properties) and any financing lease having substantially the same economic effect as any of the foregoing.

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“Affected Party” means each Co-Agent and each Bank Purchaser. 
“Affiliate” means, as to any Person, any other Person that, directly or indirectly, is in control of, is controlled by or is under common control with such Person or is a director or officer of such Person.
“Aged Receivable” means a Purchased Receivable (other than a Written-Off Receivable) that has not been paid in full by the related Obligor more than 120 days after its original Due Date. For the avoidance of doubt, an EPS Receivable shall not be considered to be an Aged Receivable to the extent a Dilution has been accounted for in the amount of the Outstanding Balance of such EPS Receivable.  
“Aged Receivables Ratio” means, for any Settlement Date, a fraction, expressed as a percentage, the numerator of which is the aggregate Outstanding Balance of all Receivables that first became Aged Receivables or Written-Off Receivables during the most recently ended Collection Period, and the denominator of which is the Settlement Date Receivables Balance for the immediately preceding Settlement Date (which, for purposes of the first Settlement Date, shall be deemed to have been the Closing Date Receivables Balance).
“Aged Receivables Write-Off Amount” shall have the meaning specified in Section 5.3
“Aggregate Level 3 Excess Loss Sharing Payment Amount” shall have the meaning specified in Section 5.3.
“Aggregate Level 3 Loss Sharing Payment Amount” shall have the meaning specified in Section 5.3.
“Agreement” shall have the meaning specified in the preamble hereto. For the avoidance of doubt, this “Agreement” shall include the Performance Guarantee. 
“Allocated Write-Off Amount” means, with respect to each Batch, for each Settlement Date, the aggregate amount of Write-Offs that occurred with respect to the Purchased Receivables included in such Batch during the most recently ended Collection Period.
“Autobahn” means Autobahn Funding Company LLC, a Delaware limited liability company.
“Bank Collections Agent” has the meaning specified in the preamble hereto. 
“Bank Purchaser” shall mean each of (A) Helaba, BTMU and Autobahn, in their respective capacities as a “Bank Purchaser” under the Onward Receivables Purchase Agreement, and (B) any other Person that becomes party to the Onward Receivables Purchase Agreement as a “Bank Purchaser” in accordance with the terms thereof.
“Bank Purchasing Agent” means Helaba in its capacity as Bank Purchasing Agent under the Onward Receivables Purchase Agreement.
“Bankruptcy Code” means title 11 of the United States Code, 11 U.S.C. §§ 101 et seq.
“Bankruptcy Event” means, for any Person, any of the following events:
		
	(a)
	a case or other proceeding shall be commenced, without the application or consent of such Person, in any court, seeking the liquidation, reorganization, debt arrangement, dissolution, winding up or composition or readjustment of debts of such Person, the appointment of a trustee, receiver, custodian, liquidator, assignee, sequestrator or the like for such Person or any substantial part of its 

4

assets, or any similar action with respect to such Person under the Bankruptcy Code or any other law relating to bankruptcy, insolvency, reorganization, winding up or composition or adjustment of debts, and, except in the case of the Funding Seller, such case or proceeding shall continue undismissed, or unstayed and in effect, for a period of 60 days; or an order for relief in respect of such Person shall be entered in an involuntary case under the Bankruptcy Code or other similar laws now or hereafter in effect; or
		
	(b)
	such Person shall commence a voluntary case or other proceeding under the Bankruptcy Code or any other applicable bankruptcy, insolvency, reorganization, debt arrangement, dissolution or other similar law now or hereafter in effect, or shall consent to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestration or the like, for such Person or any substantial part of its property, or shall make any general assignment for the benefit of creditors, or shall fail to, or admit in writing its inability to, pay its debts generally as they become due; or

		
	(c)
	such Person shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors or file a notice of intention to make a proposal to some or all of its creditors.

“Batch” refers to the Closing Date Batch or any Collection Period Batch.
“Batch Receivables Amount” means the aggregate Nominal Value of all of the Purchased Receivables that belong to such Batch as at their respective Purchase Dates.
“Billing Gate One Trust” means Billing Gate One Trust, a Delaware statutory trust.
“Bloomberg Screen” means the display which appears on the Bloomberg page “USOOO1M” (or such other page as may replace that page on that service). 
“BTMU” has the meaning specified in the recitation preceding the preamble hereto.
“Business Day” means a day (other than a Saturday or Sunday) on which banks in Düsseldorf, Germany; Frankfurt am Main, Germany; London, England, U.K.; New York City, New York, U.S.A.; Seattle, Washington, U.S.A.; Wilmington, Delaware, U.S.A.; and the Collection Account Bank are open for business.
“CCPC” means, with respect to a Receivable, the Cost Center Profit Center identified by the Servicer on its related books and records and collections systems.
“Change in Law” means (i) any change after the date of this Agreement in (a) the risk-based capital guidelines in effect in the United States on the date of this Agreement, including transition rules, or (b) the corresponding capital regulations promulgated by regulatory authorities outside the United States (including the Federal Republic of Germany), including, in each case, transition rules, and any amendments to such regulations adopted prior to the date of this Agreement, or (ii) any adoption or change in any other law, governmental or quasi-governmental rule, regulation, policy, guideline, interpretation, or directive (whether or not having the force of law) or in the interpretation, promulgation, implementation or administration thereof after the date of this Agreement which affects the amount of capital required or expected to be maintained by any of the Purchasing Entities or any corporation controlling any of them. Notwithstanding the foregoing, for purposes of this Agreement, all requests, rules, guidelines or directives in connection with the Dodd-Frank Wall Street Reform and Consumer Protection Act shall be deemed to be a Change in Law regardless of the date enacted, adopted or issued and all requests, rules, guidelines or 

5

directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States financial regulatory authorities shall be deemed to be a Change in Law regardless of the date adopted, issued, promulgated or implemented.
“Change of Control” means an event that shall be deemed to occur if Deutsche Telekom shall no longer (i) be the direct or indirect “beneficial owner,” as defined in Rule 13d-3 under the Exchange Act, of more than 50% of the Voting Shares of TMUS (or any successor entity) or (ii) have the ability to elect a majority of the Board of Directors of TMUS (or any successor entity).
“Charges” means, with respect to an Obligor, the amounts billed to such Obligor as reflected on the corresponding Invoice. 
“Clean-up Call” shall have the meaning specified in Section 11.9.
“Closing Cut-Off Date” means February 26, 2014, at 12:00 a.m., Pacific standard time. 
“Closing Date” means March 3, 2014. 
“Closing Date Batch” refers, in the aggregate, to all of the Receivables sold by the Funding Seller to the Purchaser on the Closing Date. 
“Closing Date Deferred Purchase Price” means an amount equal to the sum of (i) the Closing Date Dilution Reserve Amount, (ii) the Closing Date Mandatory Repurchase Reserve Amount, and (iii) the Closing Date Yield Reserve Amount, (iv) the Closing Date Excess Funding Amount and (v) the Closing Date Level 4 Reserve Amount.
“Closing Date Dilution Reserve Amount” means an amount equal to the product of (i) the Closing Date Receivables Balance and (ii) the Dilution Discount Amount Percentage for the Closing Date. 
“Closing Date Excess Funding Amount” means the amount (if any) by which the Closing Date Funded Amount would exceed the Funding Limit, after giving effect to the determination of the Closing Date Dilution Reserve Amount, the Closing Date Mandatory Repurchase Reserve Amount, the Closing Date Yield Reserve Amount and the Closing Date Level 4 Reserve Amount.
“Closing Date Funded Amount” means the amount that equals (A) the product of the Funding Advance Rate and the Closing Date Receivables Balance minus (B) the Closing Date Deferred Purchase Price. 
“Closing Date Level 4 Reserve Amount” means the Level 4 Reserve Percentage multiplied by the Closing Date Receivables Balance.
“Closing Date Mandatory Repurchase Reserve Amount” means an amount equal to the product of (i) the Closing Date Receivables Balance and (ii) the Maximum Mandatory Repurchase Percentage on the Closing Date.
“Closing Date Receivables Balance” means an amount equal to the aggregate Outstanding Balance of all Purchased Receivables purchased by the Purchaser from the Funding Seller on the Closing Date, as of the close of business on the Closing Cut-Off Date.
“Closing Date Yield Reserve Amount” means an amount equal to $3,000,000.
“Co-Agent” means each of the Bank Collections Agent and the Bank Purchasing Agent.

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“Code” means the United States Internal Revenue Code of 1986, as amended from time to time (and any successor statute thereto), and the regulations promulgated and rulings issued thereunder. Section references to the Code are to the Code as in effect on the Closing Date, and any subsequent provisions of the Code, amendments thereto or substituted therefrom.
“Collections” means, with respect to any Purchased Receivable, any cash payments (or equivalent) made by or on behalf of the related Obligor with respect to such Purchased Receivable as a payment thereon and any other cash proceeds of such Purchased Receivables, including cash proceeds of Related Rights with respect to such Purchased Receivables.
“Collection Account” means the deposit account identified as the Collection Account in the Master Receivables Purchase Agreement Side Letter and any successor deposit account. 
“Collection Account Bank” means the depositary institution at which the Collection Account is maintained, which depositary institution shall satisfy the Account Bank Required Rating.
“Collection Period” means (A) initially, the period beginning on the Closing Cut-Off Date and ending on March 31, 2014, and (B) each calendar month that shall occur thereafter.
“Collection Period Batch” refers, in the aggregate, to all of the Receivables (other than Receivables in the Closing Date Batch) that have been sold by the Funding Seller to the Purchaser within the same Collection Period, it being understood (for the avoidance of doubt) that each Collection Period in which Receivables are so sold shall give rise to a separate and distinct Batch. 
“Commingling Loss” has the meaning set forth in Section 5.6. 
“Commitment” has the meaning specified in the Onward Receivables Purchase Agreement. 
“Commitment Fee” of any Bank Purchaser means the “commitment fee” payable to the Purchaser for the benefit of such Bank Purchaser pursuant to Section 4.1.
“Commitment Fee Rate” means, for each Bank Purchaser, the amount specified for such Bank Purchaser in the applicable Fee Letter.
“Competitor” means any Person that is a telecommunications, internet or comparable service provider or otherwise a commercial competitor of the Performance Guarantor or one of its material Affiliates.
“Conduit Agent” means DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main, New York Branch, in its capacity as the Conduit Agent under the Onward Receivables Purchase Agreement.
“Confidential Information” has the meaning specified in Section 12.1.
“Consolidated Debt” means, as of any date of determination, for the Performance Guarantor and its consolidated Subsidiaries, an amount equal to (a) the amount of long-term debt, plus (b) the amount of short-term debt, minus (c) cash and cash equivalents, each as of the end of the preceding calendar quarter, each as determined in accordance with GAAP and shown in the consolidated balance sheets of the Performance Guarantor as of such date.
“Consolidated EBITDA” means, (I) for any fiscal quarter ending after June 30, 2013, an amount equal to the Consolidated Net Income for such period plus (a) each of the following to the extent deducted in calculating such Consolidated Net Income: (i) interest expense (net of interest income) payable by the 

7

Performance Guarantor and its Subsidiaries for such period, (ii) the provision for Federal, state, local and foreign income taxes payable (including those deferred) by the Performance Guarantor and its Subsidiaries for such period, (iii) depreciation and amortization expenses of the Performance Guarantor and its Subsidiaries for such period, (iv) other deducted income and expenses, (v) expenses constituting stock-based compensation and (vi) other non-recurring expenses of the Performance Guarantor and its Subsidiaries reducing such Consolidated Net Income which are not reflective of ongoing operations and (II) for any periods prior to or ending on June 30, 2013, the pro-forma statements shown in the Investor Quarterly (3rd quarter 2013) as filed with the Securities and Exchange Commission on November 5, 2013, for the Performance Guarantor and its predecessor companies.
“Consolidated Equity Ratio” means, as of any date of determination, a fraction, expressed as a percentage, the numerator of which is (a) Consolidated Shareholders’ Equity and the denominator of which is (b) Consolidated Total Assets. 
“Consolidated Leverage Ratio” means, as of any date of determination, a fraction, expressed as a percentage, the numerator of which is (a) Consolidated Debt as of such date and the denominator of which is (b) Consolidated EBITDA for the period of the four fiscal quarters most recently ended. 
“Consolidated Net Income” means, for any fiscal quarter for the Performance Guarantor and its consolidated Subsidiaries, the net income of the Performance Guarantor and its consolidated Subsidiaries as of the end of such fiscal quarter, determined in the accordance with GAAP and shown in the consolidated statements of income of the Performance Guarantor and its consolidated Subsidiaries for such date.
“Consolidated Shareholders’ Equity” means, as of any date of determination, the stockholders’ equity of the Performance Guarantor and its consolidated Subsidiaries on a consolidated basis as of the end of the prior calendar quarter determined in accordance with GAAP and shown in the consolidated balance sheets of the Performance Guarantor as of such date.
“Consolidated Total Assets” means, as of any date of determination, the total assets of the Performance Guarantor and its consolidated Subsidiaries on a consolidated basis as of the end of the prior calendar quarter, determined in accordance with GAAP and shown in the consolidated balance sheets of the Performance Guarantor as of such date.
“Contract” means with respect to any Receivable, an agreement or arrangement pursuant to agreed upon terms and conditions between an Originator and any Obligor, pursuant to or under which such Obligor shall be obligated to pay for goods or services from time to time.
“Contribution Agreement” has the meaning specified in the Preamble hereto.
“Conveyancing Agreement” has the meaning specified in the Preamble hereto.
“Credit and Collection Policy” means, with respect to the Receivables and Related Rights, those policies and procedures of T-Mobile PCS Holdings (or one of its Affiliates) with respect to receivables credit, servicing, administering, originating and collection in effect as of the Closing Date and as modified from time to time in accordance with this Agreement.
“CRR” has the meaning set forth in Section 7.1(m).
“CRR Cost” has the meaning set forth in Section 7.1(m).

8

“Debt” of any Person shall mean, without duplication, (i) all obligations of such Person for borrowed money, (ii) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, or upon which interest payments are customarily made, (iii) all obligations of such Person under conditional sale or other title retention agreements relating to property purchased by such Person (other than customary reservations or retentions of title under agreements with suppliers entered into in the ordinary course of business), (iv) all obligations of such Person issued or assumed as the deferred purchase price of property or services purchased by such Person (other than trade debt incurred in the ordinary course of business and due within twelve months of the incurrence thereof) which would appear as liabilities on a balance sheet of such Person, (v) all obligations of such Person under take-or-pay or similar arrangements or under commodities agreements, (vi) all indebtedness of others secured by (or for which the holder of such indebtedness has an existing right, contingent or otherwise, to be secured by) any Adverse Claim on, or payable out of the proceeds of production from, property owned or acquired by such Person, whether or not the obligations secured thereby have been assumed; provided that for purposes hereof the amount of such indebtedness shall be limited to the greater of (A) the amount of such indebtedness as to which there is recourse to such Person and (B) the fair market value of the property which is subject to the Adverse Claim, (vii) all guarantees of such Person, (viii) the principal portion of all obligations of such Person under capitalized leases, (ix) all obligations of such Person in respect of interest rate protection agreements, foreign currency exchange agreements, commodity purchase or option agreements or other interest or exchange rate or commodity price hedging agreements, (x) the maximum amount of all standby letters of credit issued or bankers’ acceptances facilities created for the account of such Person and, without duplication, all drafts drawn thereunder (to the extent unreimbursed), (xi) all preferred stock issued by such Person and required by the terms thereof to be redeemed, or for which mandatory sinking fund payments are due by a fixed date, and (xii) the principal balance outstanding under any synthetic lease, tax retention operating lease, off-balance sheet loan or similar off-balance sheet financing product to which such Person is a party, where such transaction is considered borrowed money indebtedness for tax purposes. The Debt of any Person shall include the indebtedness of any partnership or joint venture in which such Person is a general partner or a joint venturer, but only to the extent to which there is recourse to such Person for payment of such indebtedness.
“Deferred Purchase Price” means, for each Settlement Date, the sum of (i) the Dilution Reserve Amount, (ii) the Mandatory Repurchase Reserve Amount, (iii) the Yield Reserve Amount, (iv) the Excess Funding Reserve Amount and (v) the Level 4 Reserve Amount, in each case, determined for such Settlement Date.
“Delinquency Ratio” means a fraction, expressed as a percentage, computed as of the last day of each Collection Period, the numerator of which is (a) the aggregate Outstanding Balance of all Purchased Receivables that were Delinquent Receivables as of the close of business on such day, and the denominator of which is (b) the Settlement Date Receivables Balance as of the Settlement Date immediately preceding such day (which, for purposes of the first Collection Period, shall be deemed to have been the Closing Date Receivables Balance).
“Delinquent Receivable” means a Purchased Receivable that is not an Aged Receivable and for which any payment, or part thereof, remains unpaid for more than 60 and less than 91 days from the original Due Date for such payment. For the avoidance of doubt, an EPS Receivable shall not be considered to be a Delinquent Receivable to the extent a Dilution has been accounted for in the amount of the Outstanding Balance of such EPS Receivable.
“Designated November 2014 Receivable” means a receivable originated by either of the November 2014 Joining Originators in November 2014 on or before the November 2014 Amendment Effective Date.
“Designated State” means the states referred to in paragraph (dd) of Annex 3, or such other states designated by the Servicer from time to time and consented to by the Bank Purchasing Agent.

9

“Designated SunCom Receivable” means a receivable originated by the January 2015 Joining Originator in November 2014, December 2014, or January 2015 on or before the January 2015 Amendment Effective Date.
“Deutsche Telekom” means Deutsche Telekom AG, a public law corporation incorporated under the laws of Germany.
“Dilutions” means, with respect to any Purchased Receivable, the aggregate amount of any reductions or adjustments in the Outstanding Balance of such Receivable as a result of any defective, rejected, returned, repossessed or foreclosed goods or services, any failure to provide services or any credit, rebate, sales allowance, discount or other adjustment or setoff (including without limitation 100% of the remaining Outstanding Balance of any Receivable that is an EPS Receivable).
“Dilution Discount Amount Percentage” means:
		
	(A)
	for each Settlement Date other than the first Settlement Date, a percentage equal to the greater of (i) the Dilution Peak Ratio multiplied by (x) 1.1, if TMUS shall then be rated at least BB by S&P and Ba3 by Moody’s, or (y) 1.5, otherwise, and (ii) 8%; and 

		
	(B)
	for the Closing Date and the first Settlement Date, 15%.

“Dilution Peak Ratio” means, (A) for the second and third Settlement Dates, the highest Dilution Ratio after the first Settlement Date, (B) for the fourth to fifteenth Settlement Dates, the highest three-month rolling average of the Dilution Ratios since the second Settlement Date, and (C) for any other Settlement Date, a percentage equal to the highest three-month rolling average of the Dilution Ratio over the 12 immediately preceding Settlement Dates.
“Dilution Ratio” means, for any Settlement Date, a fraction, expressed as a percentage, the numerator of which is (a) the amount of Dilutions that occurred during the most recently ended Collection Period, and the denominator of which is (b) the aggregate Nominal Value of all Receivables sold to the Purchaser hereunder during the most recent Collection Period.
“Dilution Reserve Amount” means, (A) for each Settlement Date prior to the Facility Termination Date, an amount equal to the product of (i) the Settlement Date Receivables Balance on such Settlement Date and (ii) the Dilution Discount Amount Percentage for such Settlement Date, (B) for each Settlement Date on or following the Facility Termination Date on which the Funded Amount is greater than zero, an amount equal to the lesser of (i) the Dilution Reserve Payment Amount and (ii) (a) the Settlement Date Receivables Balance minus (b) the Mandatory Repurchase Reserve Amount, and (C) for each other Settlement Date, zero, provided that, following the Facility Termination Date, the Bank Purchasing Agent at any time may reduce the Dilution Reserve Amount and increase either or both of the Mandatory Repurchase Reserve Amount and the Yield Reserve Amount by a corresponding total amount, whereupon the Dilution Reserve Amount, the Mandatory Repurchase Reserve Amount and the Yield Reserve Amount shall be adjusted accordingly.
“Dilution Reserve Payment Amount” means, for each Settlement Date, the amount equal to the higher of (A) (i) the Dilution Reserve Amount for the immediately preceding Settlement Date (which, for purposes of the first Settlement Date, shall be deemed to have been the Closing Date Dilution Reserve Amount), minus (ii) the product of (a) the Funding Advance Rate, multiplied by (b) the aggregate amount of all Dilutions that occurred during the most recently ended Collection Period, and (B) zero. 

10

“Discount” means, with respect to each Purchased Receivable, the Outstanding Balance of such Purchased Receivable on the related Purchase Date multiplied by the Discount Rate.
“Discount Ledger” means a book-entry ledger that shall be maintained by the Bank Purchasing Agent, in which the Bank Purchasing Agent shall record the Discount Ledger Balance in accordance with the terms of this Agreement.
“Discount Ledger Adjusted Balance” shall mean, for any Settlement Date, the amount equal to the sum of (A) the Discount Ledger Balance as of the end of the immediately preceding Settlement Date (which, for purposes of the first Settlement Date, shall be deemed to have been zero) plus (B) the aggregate of amounts that were required to have been added to the Discount Ledger Balance on such Settlement Date pursuant to Sections 2.7 and 5.4 hereof, which amount shall be determined by the Bank Purchasing Agent.
“Discount Ledger Balance” shall mean, as of any Settlement Date, the amount, which shall be determined by the Bank Purchasing Agent, equal to the following:
		
	(a)
	the Discount Ledger Adjusted Balance for such Settlement Date; minus 

		
	(b)
	the sum of (i) the aggregate amount, if any, by which the Discount Ledger Balance is required to be reduced pursuant to Section 5.3(b)(ii) on such Settlement Date plus (ii) the aggregate amount, if any, payable by the Purchaser to the Funding Seller pursuant to Section 5.3(c)(ii) on such Settlement Date.

“Discount Rate” means (i) with respect to the Closing Date Batch and the Batches related to the first three consecutive Collection Periods following the Closing Cut-Off Date, 0.40%, (ii) with respect to the June 2014 Batch until the December 2015 Batch (inclusive), 0.05%, and (iii) with respect to the January 2016 Batch and all subsequent Batches thereafter, 0.40%, as such percentage may be adjusted from time to time in accordance with the terms hereof.
“DT Payment Guarantee” means a guarantee for the benefit of the Purchasing Entities, substantially in the form attached hereto as Annex 9.
“Due Date” means, with respect to any Receivable, the date on which such Receivable becomes due and payable pursuant to the corresponding Invoice.
“Eligible Receivable” means any Receivable that satisfies all of the criteria specified in Annex 3.
“EPS Program” shall mean a program, in accordance with the Credit and Collection Policy, by which the Servicer may permit an Obligor who is delinquent on his or her payment obligations under a Contract to be made current on delinquent amounts under his or her Contract by application of a credit amount to the delinquent Receivable.
“EPS Receivable” shall mean a Purchased Receivable where (a) the related Obligor is or has been past due on payment obligations, (b) the related Obligor requests or has requested that the Servicer allow him or her to be part of the EPS Program, (c) such request is or has been accepted by the Servicer, and (d) the balance of the related Purchased Receivable is or has been reduced. 
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, or any successor statutes.

11

“Excess Funding Amount” means, for each Settlement Date, the amount (if any) by which the Funded Amount would exceed the Funding Limit, after giving effect to the determination of the Dilution Reserve Amount, the Mandatory Repurchase Reserve Amount, the Yield Reserve Amount and the Level 4 Reserve Amount and the making of all payments, on such Settlement Date.
“Excess Funding Reserve Amount” means, (A) for each Settlement Date prior to the Facility Termination Date, an amount equal to the Excess Funding Amount for such Settlement Date or such higher amount as may be related to the Funding Seller’s request in accordance with Section 2.2, (B) for each Settlement Date on or following the Facility Termination Date on which the Funded Amount is greater than zero, an amount equal to the lesser of (i) the Excess Funding Reserve Payment Amount and (ii) (a) the Settlement Date Receivables Balance minus (b) the Mandatory Repurchase Reserve Amount minus (c) the Dilution Reserve Amount minus (d) the Yield Reserve Amount minus (e) the Level 4 Reserve Amount, and (C) for each other Settlement Date, zero. 
“Excess Funding Reserve Payment Amount” means, for each Settlement Date, the Excess Funding Reserve Amount for the immediately preceding Settlement Date (which, for purposes of the first Settlement Date, shall be deemed to have been zero). 
“Excess Level 3A Amount” has the meaning specified in Section 5.3(b)(v).
“Excess Level 3A Excess Amount” has the meaning specified in Section 5.3(c)(v).
“Exchange Act” means the Securities Exchange Act of 1934, as amended or supplemented from time to time. 
“Excluded Taxes” means any of the following Taxes (A) imposed on, or with respect to, (i) the Bank Purchasing Agent or any Bank Purchaser or (ii) only for purposes of Section 3.11, any Special Indemnified Party (as such term is defined therein) or (B) required to be withheld or deducted from a payment to any Purchasing Entity:
		
	(I)
	Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, imposed as a result of the Bank Purchasing Agent or any Bank Purchaser being organized under the laws of, or having its principal office located in, the jurisdiction imposing such Tax (or any political subdivision thereof); and

		
	(II)
	Taxes attributable to any Purchasing Entity’s failure to comply with Section 4.7(b) or 4.7(c).

For the avoidance of doubt, Excluded Taxes shall not include any Taxes payable by the Purchasing Entities contemplated by Section  3.11, 9.1(i), 19.8(a) or 19.8(b).
“Excluded Receivable” has the meaning specified in Section 2.1(c). 
“Facility Termination Date” means the earliest of (a) the Scheduled Termination Date, (b) the date upon which the commitment of the Purchaser is terminated pursuant to Section 11.3 or (c) the date upon which the commitment of the Purchaser is terminated in connection with a Termination Event hereunder.
“Factoring Fee” of any Bank Purchaser means the fee payable to the Purchaser for the benefit of such Bank Purchaser pursuant to Section 4.2.

12

“Factoring Fee Margin” means, for each Bank Purchaser, the amount specified for such Bank Purchaser in the applicable Fee Letter.
“FATCA” means Sections 1471 through 1474 of the Code as of the date of this Agreement and any regulations or official interpretations thereof (or any amended or successor version thereof), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation, rules or official practices adopted pursuant to any published intergovernmental agreements entered into in connection with the implementation of such Sections of the Code.
“FATCA Deductions” means any deductions or withholdings required by FATCA from any payments made by the Funding Seller, the Originators or the Initial Purchaser in connection with this Agreement or any of the other Transaction Documents.
“Fee Letter” means (i) that certain fee letter dated as of the Original Signing Date among the Funding Seller, the Purchaser and the Bank Purchasers and (ii) each other agreement among any of the parties hereto identified as a “Fee Letter” and entered into in connection herewith, each as amended, restated, supplemented or otherwise modified from time to time.
“Final Termination Date” means the first date after the Facility Termination Date on which (a) the Funded Amount has been reduced to zero and (b) all other obligations of the Funding Seller, the Servicer and the Performance Guarantor then payable have been paid in full in cash or otherwise satisfied and (c) all the Receivables previously sold to the Purchaser have been either paid, written-off by the Servicer or repurchased by the Funding Seller.
“Fitch” means Fitch Ratings, Inc.
“Funded Amount” means, for each Settlement Date, (a) (i) the product of (A) the Funding Advance Rate and (B) the Settlement Date Receivables Balance for such Settlement Date minus (ii) the Deferred Purchase Price as of such Settlement Date or (b) such lesser amount as the Funding Seller may request in accordance with Section 2.2.
“Funding Advance Rate” means, for any Batch, a percentage equal to (a) 100% minus (b) the Discount Rate for such Batch.
“Funding Limit” means $950,000,000, as the same may be increased pursuant to Section 2.13 or decreased pursuant to Section 2.14. 
“Funding Seller” shall have the meaning specified in the recitation preceding the Preamble hereof.
“Funding Seller Termination Event” shall have the meaning specified in Section 11.2.
“Funding Seller’s Fees” means, for any Settlement Date, the sum of the Commitment Fees, the Factoring Fees, the Administration Fee, all fees payable to Wells Fargo in its capacity as the trustee of the manager of the Purchaser, and all Servicer Fees.
“GAAP” means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting Principles Board, the American Institute of Certified Public Accountants and the Financial Accounting Standards Board, consistently applied.

13

“Governmental Authority” means any nation or government, any state or other political subdivision thereof, any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government, any securities exchange and any self-regulatory organization.
“Helaba” has the meaning specified in the recitation preceding the preamble hereof.
“IASB” means the International Accounting Standards Board.
“IFRS” means the International Financial Reporting Standards as issued and amended by the IASB.
“Immediate Write-Off Amount” shall have the meaning specified in Section 5.3.
“Increased Costs” has the meaning specified in Section 4.4.
“Indemnified Amounts” has the meaning specified in Section 9.1.
“Indemnified Party” has the meaning specified in Section 9.1.
“Indemnified Taxes” means all Taxes that are not Excluded Taxes.
“Initial Purchaser” shall have the meaning specified in the Preamble hereof.
“Invoice” means, with respect to any Receivable, the original bill in relation to such Receivable as issued by an Originator to the Obligor with respect to such Receivable.
“Invoice Date” means, with respect to any Invoice, the date on which such Invoice was originally issued.
“January 2015 Amendment Effective Date” means January 9, 2015. 
“January 2015 Joining Originator” means the January 2015 Joining Seller, as such term is defined in the Conveyancing Agreement.
“June 2016 Amendment Effective Date” means the June 2016 Settlement Date.
“KfW” means KfW IPEX-Bank Gesellschaft mit beschraenkter Haftung and its successors.
“KfW Guarantees” means, collectively, the KfW Level 3 Guarantee and the KfW Level 3A Guarantee.
“KfW Level 3 Guarantee” means that certain guarantee provided by KfW to the Bank Purchasers on or about the Original Signing Date in respect of the Funding Seller’s obligations under Section 5.3(b)(iii), as amended, restated, supplemented or otherwise modified from time to time.
“KfW Level 3A Guarantee” means that certain guarantee provided by KfW to the Bank Purchasers on or about the November 2014 Amendment Effective Date in respect of the Funding Seller’s obligations under Section 5.3(b)(iv), as amended, restated, supplemented or otherwise modified from time to time.
“Late Collection” means any Collection received by the Funding Seller, the Servicer and/or any Originator with respect to an Aged Receivable after such Aged Receivable shall have been transferred to the Funding Seller pursuant to Section 5.1, until such Aged Receivable shall have (i) been paid in full or (ii) become a Written-Off Receivable. 

14

“Level 3 Maximum Amount” means, for any Settlement Date, the following amount, as may be adjusted from time to time in accordance with the terms hereof: (a) $50,000,000 minus (b) the sum of the amounts by which the Level 3 Maximum Amount was required to be reduced (whether or not such amounts were actually paid) pursuant to Section 5.3(b)(iii) and Section 5.3(c)(iii) on all prior Settlement Dates plus (c) the aggregate amount of all Recoveries paid to the Funding Seller and the Purchaser pursuant to Section 5.4(iv) on such Settlement Date and all prior Settlement Dates. 
“Level 3A Maximum Amount” means, for any Settlement Date, the following amount, as may be adjusted from time to time in accordance with the terms hereof: (a) $40,000,000 minus (b) the sum of the amounts by which the Level 3A Maximum Amount was required to be reduced (whether or not such amounts were actually paid) pursuant to Section 5.3(b)(iv) and Section 5.3(c)(iv) on all prior Settlement Dates plus (c) the aggregate amount of all Recoveries paid to the Funding Seller and the Purchaser pursuant to Section 5.4(iii) on such Settlement Date and all prior Settlement Dates. 
“Level 4 Reserve Amount” means, for any Settlement Date, an amount equal to:
		
	(A)
	the Level 4 Reserve Percentage multiplied by:

		
	(I)
	for the initial three Settlement Dates, the Batch Receivables Amount for the Closing Date Batch plus the sum of the Level 4 Reserve Batch Amounts for all Collection Periods preceding such Settlement Date; and

		
	(II)
	thereafter, the sum of the Level 4 Reserve Batch Amounts for the four Collection Periods immediately preceding such Settlement Date; 

minus
		
	(B)
	the sum of the amounts by which the Level 4 Reserve Amount was required to be reduced pursuant to Section 5.3(b)(v) and Section 5.3(c)(v) on all prior Settlement Dates; plus 

		
	(C)
	the aggregate amount of all Recoveries paid to the Funding Seller pursuant to Section 5.4(ii) on such Settlement Date and all prior Settlement Dates. 

“Level 4 Reserve Batch Amount” means, for each Collection Period Batch, the greater of (A) its Batch Receivables Amount and (B) the amount equal to (i) before November 30, 2014, $875,000,000, (ii) on and after November 30, 2014, through November 30, 2016, $985,000,000, and (iii) on and after December 1, 2016, $1,150,000,000.
“Level 4 Reserve Percentage” means (A) with respect to the Closing Date and each Settlement Date until the April 2017 Settlement Date, as described on Annex 11 attached hereto, and (B) with respect to the April 2017 Settlement Date and each Settlement Date thereafter, 3.43%, as such percentage may be adjusted from time to time in accordance with the terms hereof.
“LIBOR Rate” of any Bank Purchaser means (A) with respect to Helaba and BTMU, 1-Month LIBOR, and (B) with respect to Autobahn, 3-Month LIBOR.
“Mandatory Repurchase Reserve” means, for any Batch on each Settlement Date, an amount equal to the Maximum Batch Mandatory Repurchase Amount.
“Mandatory Repurchase Reserve Amount” means, (A) for each Settlement Date prior to the Facility Termination Date, an amount equal to the sum of the Mandatory Repurchase Reserves for (x) for the initial

15

four Settlement Dates, the Closing Date Batch and all Collection Period Batches preceding such Settlement Date and (y) thereafter, the five Collection Period Batches immediately preceding such Settlement Date, (B) for each Settlement Date on or following the Facility Termination Date on which the Funded Amount is greater than zero, an amount equal to the lesser of (i) the Mandatory Repurchase Reserve Payment Amount and (ii) the Settlement Date Receivables Balance, and (C) for each other Settlement Date, zero, provided that, following the Facility Termination Date, the Bank Purchasing Agent may at any time reduce the Mandatory Repurchase Reserve Amount and increase either or both of the Dilution Reserve Amount and the Yield Reserve Amount by a corresponding total amount, whereupon the Dilution Reserve Amount, the Mandatory Repurchase Reserve Amount and the Yield Reserve Amount shall be adjusted accordingly. 
“Mandatory Repurchase Reserve Payment Amount” means, for each Settlement Date, the amount equal to (i) the Mandatory Repurchase Reserve Amount for the immediately preceding Settlement Date (which, for purposes of the first Settlement Date, shall be deemed to have been the Closing Date Mandatory Repurchase Reserve Amount), minus (ii) the amount equal to the losses to be borne by the Funding Seller pursuant to Section 5.3(b)(i) on such Settlement Date, minus (iii) the amount of the payment deemed to have been made by the Funding Seller to the Purchaser pursuant to Section 5.1 on such Settlement Date.
“Master Receivables Purchase Agreement Side Letter” means that certain side letter dated as of the Original Signing Date among the parties hereto.
“Material Adverse Change” means a material adverse change in, or a material adverse effect on:
		
	(a)
	the financial condition, assets or business of the Performance Guarantor and its Subsidiaries, taken as a whole; or

		
	(b)
	the ability of the Funding Seller, the Servicer, the Initial Purchaser, the Performance Guarantor or the Originators to perform and comply with their respective obligations under any Transaction Document.

“Maximum Batch Mandatory Repurchase Amount” means, with respect to a Batch and a Settlement Date, the following:
		
	(a)
	the product of (i) the Maximum Mandatory Repurchase Percentage for the Collection Period to which such Batch relates times (ii) its Batch Receivables Amount; minus

		
	(b)
	the aggregate amount of reductions (in connection with the allocation of the Allocated Write-Off Amount) that were required to be made to the Mandatory Repurchase Reserve Payment Amount with respect to such Batch on all prior Settlement Dates pursuant to Sections 5.3(b)(i) and 5.3(c)(i).

“Maximum Mandatory Repurchase Percentage” means, (i) with respect to the Closing Date Batch and the Batches related to the first three consecutive Collection Periods following the Closing Cut-Off Date, 2.20%, (ii) with respect to the June 2014 Batch, the July 2014 Batch and the August 2014 Batch, 1.95%, (iii) with respect to the September 2014 Batch until the July 2015 Batch (inclusive), 1.60%, (iv) with respect to the August 2015 Batch until the December 2015 Batch (inclusive), 1.00%, and (v) with respect to the January 2016 Batch and each subsequent Batch thereafter, 1.40%, as amended from time to time pursuant to the provisions of Section 5.5, or any other percentage to which the Funding Seller and the Bank Purchasing Agent may agree in writing from time to time.
“Maximum Sales Amount” means $1,750,000,000, or such other amount agreed from time to time between the Funding Seller and the Bank Purchasing Agent.

16

“Monthly Report” means, collectively, (1) a report in the form of Annex 6 and (2) and a transmittal document to include additional statistical information setting forth the aggregate Nominal Value of, and the aggregate amount of Dilutions that occurred with respect to, Purchased Receivables that became EPS Receivables during the related Collection Period and whether such aggregate Nominal Value exceeded $10,000,000.
“Moody’s” means Moody’s Investors Service, Inc., and any successor thereto.
“Netting Provisions” means the provisions of Section 10.3 hereof.
“Nominal Value” means, for any Receivable, the full face amount (i.e., the nominal value) owed by the Obligor of such Receivable as evidenced by the corresponding Invoice.
“Notice of Assignment” means a notice, executed in blank by each Originator and delivered to the Bank Collections Agent on or before the June 2016 Amendment Effective Date, informing the Obligors with respect to Purchased Receivables that such Purchased Receivables have been assigned to the Bank Collections Agent for the benefit of the Bank Purchasers. 
“November 2014 Amendment Effective Date” means November 30, 2014.
“November 2014 Joining Originators” means the November 2014 Joining Sellers, as such term is defined in the Conveyancing Agreement.
“Obligor” means any Person with respect to whom/which an Originator has originated a claim for payment (receivable) for the provision of goods and/or services which claim has subsequently been acquired by the Funding Seller pursuant to the Contribution Agreement.
“Onward Receivables Purchase Agreement” has the meaning specified in the Preamble hereto.
“Original Signing Date” has the meaning specified in the recitation preceding the preamble hereof. 
“Originator” means each of the parties to the Conveyancing Agreement as “Sellers” thereunder (as such term is defined therein) from time to time.
“Other Corporations” means the T-Mobile Group other than the Funding Seller.
“Outstanding Balance” with respect to any Purchased Receivable, means the Nominal Value of such Purchased Receivable, after giving effect to (i) all Collections received (or deemed to be received) with respect thereto by the Servicer, the Funding Seller, the Initial Purchaser and/or any Originator, and (ii) all Write-Off amounts with respect thereto.
“Overdue Receivable” means any Purchased Receivable which remains unpaid in whole or in part at any time after its Due Date.
“Payment Account” means each of the deposit accounts identified and listed as a “Payment Account” in the Master Receivables Purchase Agreement Side Letter and any successor deposit account, as such list may be supplemented by the Servicer from time to time. 
“Payment Account Bank” means any depositary institution at which a Payment Account is maintained.

17

“Performance Guarantee” means the guarantee provided by the Performance Guarantor for the benefit of the Purchaser and the Bank Purchasers pursuant to Article 19.
“Performance Guarantor” has the meaning specified in the recitation preceding the preamble hereof.
“Person” means an individual, partnership, corporation (including a business trust), joint stock company, limited liability company, unincorporated association, trust, joint venture or other entity, or a government or any political subdivision or agency thereof.
“Purchase Date” means, with respect to a Purchased Receivable, the date on which such Purchased Receivable is acquired, or purported to be acquired, by the Purchaser from the Funding Seller in accordance with the terms of this Agreement.
“Purchase Price” means, with respect to each Purchased Receivable on its Purchase Date, (a) the Outstanding Balance of such Purchased Receivable on such date minus (b) the Discount with respect to such Purchased Receivable.
“Purchased Receivable” means any Receivable (other than an Excluded Receivable) which has been acquired, or purported to be acquired, by the Purchaser from the Funding Seller in accordance with the terms of this Agreement. For the avoidance of doubt, on and after the November 2014 Amendment Effective Date, the term “Purchased Receivable” shall be interpreted to include any and all Designated November 2014 Receivables deemed to have been sold, transferred, assigned, set over or otherwise conveyed to the Purchaser pursuant to Section 2.1(b), as amended as of the November 2014 Amendment Effective Date. For the avoidance of doubt, on and after the January 2015 Amendment Effective Date, the term “Purchased Receivable” shall be interpreted to include any and all Designated SunCom Receivables deemed to have been sold, transferred, assigned, set over or otherwise conveyed to the Purchaser pursuant to Section 2.1(b), as amended as of the January 2015 Amendment Effective Date.
“Purchaser” has the meaning specified in the recitation preceding the Preamble hereof.
“Purchasing Entity” means each of (A) the Purchaser, (B) each of the Bank Purchasers and (C) the Bank Purchasing Agent.
“Ratable Share” has the meaning specified in the Onward Receivables Purchase Agreement.
“Receivable” means any “account” or “general intangible” (as such terms are defined in the UCC) or other indebtedness or payment obligation of an Obligor, in each case, resulting from the provision or sale of merchandise, goods or services by an Originator, including, without limitation, the right to payment of interest or finance charges, taxes, delinquency or late-payment charges, delivery charges, extension or collection fees and all other obligations related thereto.
“Recharacterization” has the meaning specified in Section 2.10.
“Recoveries” means all Collections with respect to Written-Off Receivables, provided that the parties agree that tax refunds, whether in the form of cash or otherwise, with respect to Receivables shall not constitute Collections or Recoveries.
“Related Rights” means all of the Funding Seller’s right, title and interest in, to and under (a) the Transaction Documents, (b) the Collection Account and (c) without limiting the foregoing, with respect to any Receivable, all of the related Originators’, the Initial Purchaser’s and the Funding Seller’s respective right, title and interest in, to and under:

18

		
	(A)
	all security interests, hypothecations, reservations of ownership, liens or other adverse claims and property subject thereto from time to time purporting to secure payment of such Receivable, whether pursuant to the contract pursuant to which such Receivable was originated, together with all financing statements, registrations, hypothecations, charges or other similar filings or instruments against an Obligor and all security agreements describing any collateral securing such Receivable, if any;

		
	(B)
	all guarantees, insurance policies and other agreements or arrangements of whatsoever character from time to time supporting of such Receivable whether pursuant to the contract pursuant to which such Receivable was originated, including any obligation of any party under the Transaction Documents to promptly deposit amounts received in respect of Collections to an account;

		
	(C)
	all Collections with respect to such Receivable; and

		
	(D)
	all proceeds of the foregoing.

“Reporting Date” means the fourth Business Day immediately preceding each Settlement Date.
“Required Amount” means the aggregate of the amounts needed for full payments pursuant to Section 2.7(b)(i)-(vii).
“Requirement of Law” means, as to any Person, any law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject.
“Restricted Receivable” means any Receivable which is not freely assignable, which arose under a Contract the terms of which require notice to, or the consent of, the related Obligor to the assignment of that Receivable or which purports to restrict the ability of the Purchaser or its assignees to exercise their rights under this Agreement, including, without limitation, their right to review the Contract. 
“S&P” means Standard & Poor’s Ratings Service and any successor thereto.
“Scheduled Termination Date” means the March 2017 Settlement Date or, upon the extension of the effectiveness of both of the KfW Guarantees until December 3, 2018, the March 2018 Settlement Date. 
“Securitization Obligation” of any Person shall mean the amount outstanding under any securitization transaction or similar off-balance sheet financing product to which such Person is a party, where such transaction is considered borrowed money indebtedness for tax purposes. 
“Servicer” has the meaning specified in the recitation preceding the Preamble hereof.
“Servicer Event” means a Servicer Replacement Event or a Servicer Termination Event, as applicable.
“Servicer Fee” has the meaning specified in Section 4.3.
“Servicer Replacement Event” has the meaning specified in Section 3.1.
“Servicer Termination Event” means: 

19

		
	(a)
	any failure by the Servicer to make any payment, transfer or deposit pursuant to this Agreement, which failure continues unremedied for a period of five (5) days; or

		
	(b)
	failure on the part of the Servicer duly to observe or perform in any material manner any other covenants or agreements of the Servicer set forth in this Agreement, which continues unremedied for a period of ten (10) days after the first to occur of (i) the date on which written notice of such failure requiring the same to be remedied shall have been given to the Servicer by the Bank Purchasing Agent or any Bank Purchaser, and (ii) the date on which the Servicer becomes aware thereof; or

		
	(c)
	any representation, warranty or certification made by the Servicer in this Agreement or in any certificate delivered pursuant hereto shall prove to have been incorrect or untrue in any material respect when made or deemed made which, if capable of cure, continues to be incorrect in any material respect for a period of thirty (30) days after the first to occur of (i) the date on which written notice of such incorrectness shall have been given to the Servicer by the Bank Purchasing Agent or any Bank Purchaser, and (ii) the date on which the Servicer becomes aware thereof; or

		
	(d)
	a Bankruptcy Event shall occur with respect to the Servicer.

“Settlement Date” means the 12th day of each calendar month, or, if such day is not a Business Day, the next succeeding Business Day, with the first such Settlement Date being April 14, 2014, or, after the occurrence and continuance of a Termination Event, such other Business Day designated by the Bank Collections Agent (which, for the avoidance of doubt, may occur with any frequency and more frequently than monthly) pursuant to Section 2.4(d) of the Onward Receivables Purchase Agreement. For the avoidance of doubt, whenever a reference is made herein to a Settlement Date that is “related to” a Collection Period, the referenced Settlement Date shall be understood to refer to the first Settlement Date to occur after the end of such Collection Period.
“Settlement Date Receivables Balance” means, for each Settlement Date, an amount equal to (A) the aggregate Outstanding Balance of all of the Purchased Receivables which are Eligible Receivables as of the last day of the most recently ended Collection Period minus (B) the aggregate Outstanding Balance of all of the Purchased Receivables transferred pursuant to Section 5.1(a) or 5.1(b) on such Settlement Date.
“Special Indemnified Amount” has the meaning specified in Section 3.11.
“Special Indemnified Party” has the meaning specified in Section 3.11.
“Subject to Defenses” means subject to affirmative or absolute defenses of any type and based on any grounds, including nullity, voidability, assignability, rights of retention or set-off.
“Subsidiary” means, as to any Person, any other Person that is controlled, directly or indirectly by such Person; and for purposes of this definition, the term “control” means: (A) the direct or indirect ownership of a majority of the Voting Shares of such Person, (B) having the right to appoint a majority of the board of directors or supervisory board or like board or body, or (C) having the power to direct the management and policies of such Person, whether through the ownership of such Voting Shares, by contract or otherwise.
“T-Mobile Group” means the Performance Guarantor, T-Mobile PCS Holdings, the Funding Seller, the Originators and each of the other Affiliates of the Performance Guarantor, excluding, for the avoidance of doubt, the Purchaser.

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“T-Mobile Information” means, with respect to each Receivable sold hereunder from time to time, the following: (i) billing account number, (ii) invoice number, (iii) invoice due date, (iv) invoice amount and (v) the related Originator.
“T-Mobile PCS Holdings” has the meaning specified in the recitation preceding the Preamble hereof.
“Taxes” means any and all present and future taxes, duties, deductions, withholdings, tax liability or tax commitment amounts, or other charges of any nature imposed by any Governmental Authority, including (A) any and all stamp or documentary taxes or any sales, value-added, goods and services or transfer taxes or similar levies arising from any payment made under, or in connection with, the Receivables, any of the Related Rights, or the transactions contemplated by any and all of the Transaction Documents and (B) any and all interest, surcharges, additions to tax or penalties applicable thereto (which taxes, duties, deductions, withholdings or other charges, for the avoidance of doubt, shall include those imposed by the laws of the United States of America, the Federal Republic of Germany and/or any political subdivisions thereof).
“Termination Event” has the meaning specified in Section 11.4.
“Transaction Documents” means, collectively, the Onward Receivables Purchase Agreement, this Agreement, the Contribution Agreement, the Conveyancing Agreement, the Account Control Agreement, the KfW Guarantees, each Fee Letter and the Master Receivables Purchase Agreement Side Letter, together with any other agreement or document entered into or delivered by any party hereto or thereto in connection herewith or therewith (including, but not limited to, the DT Payment Guarantee, if, as and when executed), as the same may be amended, supplemented or otherwise modified from time to time.
“UCC” means the Uniform Commercial Code as in effect in the State of New York; provided that, if, according to such statute, the effect of the perfection or the non-perfection of the security interest in any property contemplated by this Agreement is governed by the Uniform Commercial Code in effect in a jurisdiction other than the State of New York, the term “UCC” in that context shall refer to the Uniform Commercial Code as in effect in such jurisdiction.
“Unpaid Repurchased Receivable” means any receivable that (A) has been transferred to the Funding Seller pursuant to Section 5.1, (B) has not yet become a Written-Off Receivable and (C) has not been otherwise paid in full.
“Unused Part of the Funding Limit” means, for purposes of determining the amount of the Commitment Fees payable pursuant to Section 4.1 by the Funding Seller to the Purchaser on any Settlement Date, the amount by which the Funding Limit exceeded the Funded Amount on the immediately preceding Settlement Date (which, for purposes of the first Settlement Date, shall be deemed to have been the Closing Date Funded Amount).
“USD” or “$” means United States Dollars, the lawful currency of the United States of America.
“Voting Shares” means, with respect to any Person, any class or classes of capital stock or other ownership interests pursuant to which the holders thereof have the general voting power under ordinary circumstances to elect directors, managers or trustees of such Person (irrespective of whether or not, at the time, stock of any other class or classes has, or might have, voting power by reason of the happening of any contingency).
“Wells Fargo” means Wells Fargo Delaware Trust Company, National Association. 
“Write-Off” means, with respect to any Purchased Receivable other than an Aged Receivable that has not been repurchased by the Funding Seller in accordance with Section 5.1(b), the portion of the Nominal 

21

Value thereof, if any, that has been “written off” in accordance with the Credit and Collection Policy, and, with respect to an Aged Receivable that has not been repurchased by the Funding Seller in accordance with Section 5.1(b), an amount equal to the product of (A) the Funding Advance Rate times (B) the Outstanding Balance of such Receivable.
“Write-Off Horizon” means, (A) for each Written-Off Receivable, the number of days (rounded up to the next integral number) between its due date and the date of the applicable Write-Off, and (B) for each Unpaid Repurchased Receivable, the greater of (i) the number of days (rounded up to the next integral number) that have passed since its due date and (ii) 155. 
“Write-Off Ratio” means, for any Settlement Date, the percentage equivalent of a fraction, the numerator of which shall be (a) the Outstanding Balance of Purchased Receivables that first became Written-Off Receivables during the immediately preceding Collection Period, and the denominator of which shall be (b) the Settlement Date Receivables Balance as of the immediately preceding Settlement Date (which, for purposes of the first Settlement Date, shall be deemed to have been the Closing Date Receivables Balance).
“Written-Off Receivable” means any Purchased Receivable with regard to which a Write-Off has occurred.
“Yield Reserve Amount” means: (A) for each Settlement Date prior to the Facility Termination Date, an amount equal to the greater of (i) 6 times the aggregate of all of the Funding Seller’s Fees that shall become payable by the Funding Seller to the Purchaser or any other Person during the period beginning on the day following such Settlement Date and ending on the immediately succeeding Settlement Date and (ii) $3,000,000; (B) for each Settlement Date on or following the Facility Termination Date on which the Funded Amount is greater than zero, an amount equal to the lesser of (i) the Yield Reserve Payment Amount and (ii) (a) the Settlement Date Receivables Balance minus (b) the Mandatory Repurchase Reserve Amount minus (c) the Dilution Reserve Amount, and (C) for each other Settlement Date, zero, provided that, following the Facility Termination Date, the Bank Purchasing Agent at any time may reduce the Yield Reserve Amount and increase either or both of the Mandatory Repurchase Reserve Amount and the Dilution Reserve Amount by a corresponding total amount, whereupon the Dilution Reserve Amount, the Mandatory Repurchase Reserve Amount and the Yield Reserve Amount shall be adjusted accordingly.
“Yield Reserve Payment Amount” means, for any Settlement Date, the amount equal to (i) the Yield Reserve Amount for the immediately preceding Settlement Date (which, for purposes of the first Settlement Date, shall be deemed to have been the Closing Date Yield Reserve Amount) minus (ii) all of the Funding Seller’s Fees that were payable by the Funding Seller to the Purchaser or any other Person since the immediately preceding Settlement Date.
		
	1.2
	Construction. The index to and the headings in this Agreement are for ease of reference only and are to be ignored in construing this Agreement.

		
	1.3
	Application of Revised Allocation Levels. The parties hereto agree that following any amendment or revision to the definition of Discount Rate, Funding Advance Rate or Level 4 Reserve Percentage:

		
	(A)  
	for any amount whose determination (or calculation) hereunder is based upon the application of the Discount Rate or the Funding Advance Rate to a particular Batch, to certain Purchased Receivables in a Batch, or to quantities associated with certain Purchased Receivables (including, but not necessarily limited to, Dilutions, Settlement Date Receivables Balances, Collections, Late Collections and Outstanding Balances), the Discount Rate and the Funding Advance Rate that is associated with such Batch (or related to such Purchased Receivables) when such Batch (or related Purchased Receivables) was sold by the Funding Seller to the Purchaser hereunder shall apply 

22

when making such determination (or calculation), irrespective of the date of when such determination (or calculation) is in fact made; and
		
	(B)  
	in the event that an amount to be determined hereunder relates to multiple Batches and varying Discount Rates, Funding Advance Rates or Level 4 Reserve Percentages, such aggregate amount shall be determined by (1) applying each applicable Discount Rate, Funding Advance Rate or Level 4 Reserve Percentage, as the case may be, separately to the related Batch or Batches and then (2) aggregating the results obtained by application of the preceding clause.

		
	2.
	Sale and Assignment

		
	2.1
	Sale. 

		
	(a)
	On the Closing Date, subject to the terms and conditions of this Agreement, all of the Funding Seller’s right, title and interest in and to all existing Receivables and associated Related Rights that the Funding Seller, immediately prior to the sale contemplated hereunder, acquired from the Initial Purchaser pursuant to the terms of the Contribution Agreement on the Closing Date shall be, and hereby are, sold, transferred, assigned, set-over and otherwise conveyed to the Purchaser. 

		
	(b)
	(i) Except as provided in clauses (ii) and (iii) below, after the Closing Date, on each Business Day prior to the Facility Termination Date, all of the Funding Seller’s right, title and interest in and to all newly created Receivables and associated Related Rights that the Funding Seller, immediately prior to the sales contemplated hereunder, acquires from the Initial Purchaser on each such Business Day pursuant to the terms of the Contribution Agreement, shall be, and hereby are, sold, transferred, assigned, set over and otherwise conveyed to the Purchaser without any further action by the Funding Seller or any other Person.

(ii) Notwithstanding any of the foregoing set forth in clause (i) above, on the November 2014 Amendment Effective Date and solely with respect to Designated November 2014 Receivables and associated Related Rights, all of the Funding Seller’s right, title and interest in and to such Designated November 2014 Receivables and associated Related Rights that the Funding Seller, immediately prior to the sales contemplated hereunder, acquires from the Initial Purchaser on the November 2014 Amendment Effective Date pursuant to the terms of the Contribution Agreement, shall be, and hereby are, sold, transferred, assigned, set over and otherwise conveyed to the Purchaser without any further action by the Funding Seller or any other Person; and, in connection with the foregoing, the parties hereto, for all purposes, shall account for each Designated November 2014 Receivable as if it had been sold by the applicable November 2014 Joining Originator (and further conveyed to the Purchaser pursuant to the Transaction Documents) on the date it was originated.
(iii) Notwithstanding any of the foregoing set forth in clauses (i) and (ii) above, the parties hereto confirm and ratify, and the Funding Seller represents and warrants, that all of the Funding Seller’s right, title and interest in and to the Designated SunCom Receivables and associated Related Rights that the Funding Seller acquired from the Initial Purchaser pursuant to the terms of the Contribution Agreement, have been sold, transferred, assigned, set over and otherwise conveyed to the Purchaser as of the date of such acquisition without any further action by the Funding Seller or any other Person; and, in connection with the foregoing, the parties hereto, for all purposes, shall account for each Designated SunCom Receivable as if it had been sold by the January 2015 Joining Originator (and further conveyed to the Purchaser pursuant to the Transaction Documents) on the date it was originated.

23

		
	(c)
	Notwithstanding the foregoing clauses (a) and (b), the Funding Seller may, at any time, cease to sell all Receivables related to one or more specific CCPCs or one or more Designated States in order to avoid the concentration limits on Eligible Receivables set forth in clauses (t), (u), (v), (cc) or (dd) in Annex 3 being exceeded (each such Receivable, an “Excluded Receivable”), provided that, at all times, Receivables relating to at least eight Designated States shall not be so excluded. The Funding Seller shall notify each of the Purchasing Entities of any such exclusions and such exclusions shall remain in effect until the Funding Seller shall otherwise notify the Purchasing Entities. Each such notice shall be given in writing no less than one (1) Business Day prior to the beginning of a Collection Period and shall be effective, prospectively, from the beginning of the immediately succeeding Collection Period. 

		
	2.2
	Increases or Decreases to the Funded Amount. On any Reporting Date until the Facility Termination Date, the Funding Seller may provide each of the Purchasing Entities with written notice included within the Monthly Report delivered on such Reporting Date of its request for an increase or a decrease in the Funded Amount (to be effected by a decrease or increase in the Excess Funding Reserve Amount), which notice shall be irrevocable and shall specify the amount of such requested increase or decrease (which shall not be less than $10,000,000); provided, however, that (A) no such request by the Funding Seller shall cause either (i) the Funded Amount to be less than 80% or greater than 100% of the Funding Limit or (ii) the Excess Funding Reserve Amount to be less than zero at any time and (B) the Funded Amount shall remain as requested on the immediately following Settlement Date unless the Funding Seller shall have requested a further increase or decrease in the Funded Amount for such Settlement Date in accordance with this Section 2.2. 

		
	2.3
	(Reserved)

		
	2.4
	Payment of Purchase Price.

		
	(a)
	The amount payable by the Purchaser to the Funding Seller for each Purchased Receivable shall be the Purchase Price for such Receivable and associated Related Rights. The Purchase Price for the Receivables and associated Related Rights sold hereunder shall be paid or provided for in the manner provided below on each Business Day. The Funding Seller hereby appoints the Servicer as its agent to receive payment of the Purchase Price for Receivables sold by it to the Purchaser hereunder and hereby authorizes the Purchaser to make all payments due to the Funding Seller directly to, or as directed by, the Servicer. The Servicer hereby accepts and agrees to such appointment. 

		
	(b)
	The Purchase Price for Receivables and associated Related Rights purchased by the Purchaser from the Funding Seller shall be paid by the Purchaser on each Purchase Date as follows:

		
	(i)
	to the extent available for such purpose in accordance with Section 2.6(b), in cash from Collections of Purchased Receivables; and

		
	(ii)
	to the extent that the Purchase Price on such Purchase Date exceeds the amount available from Collections (as contemplated by clause (i) above) on such Purchase Date, by an increase in the deferred payments owed by the Purchaser to the Funding Seller hereunder. 

		
	(c)
	Following each sale of Receivables, the Funding Seller shall have no retained right, title or interest in the Purchased Receivables or any rights with respect to the Obligors thereof and will look solely to the Purchaser for payment of the Deferred Purchase Price in accordance with the terms hereof. The Purchaser and the Servicer will apply Collections with respect to the Receivables in accordance with the terms hereof.

24

		
	(d)
	The parties hereto agree that the cash component of the Purchase Price of the Receivables paid to the Funding Seller from time to time shall be allocated, upon receipt, first to payment with of the Purchase Price of Receivables that, at such time, have been appropriately categorized as “earned” by the applicable Originator for accounting purposes.

		
	2.5
	Excess Dilutions; Breaches of Representations.

		
	(a)
	If the product of (A) the aggregate amount of Dilutions for any Collection Period and (B) the Funding Advance Rate exceeds (C) the Dilution Reserve Amount for the immediately succeeding Settlement Date, the Funding Seller shall deposit an amount equal to such excess into the Collection Account on or before the Business Day immediately prior to such Settlement Date.

		
	(b)
	If there is a breach of any representation in Section 6.3 relating to a Purchased Receivable, the Funding Seller shall deposit cash equal to the Funding Advance Rate times the Outstanding Balance of such Purchased Receivable into the Collection Account on or before the Business Day immediately prior to the immediately following Settlement Date.

		
	2.6
	Deposit of Collections. 

		
	(a)
	Collection of the Purchased Receivables shall be administered by the Servicer in accordance with the terms of Article 3 and other terms of this Agreement.

		
	(b)
	During each Collection Period on each Business Day prior to the Facility Termination Date on which Collections of Purchased Receivables are received by the Servicer, the Servicer shall pay the Purchase Price to the Funding Seller pursuant to Section 2.4(b)(i) from Collections received on such day to the extent any new Receivables have been acquired by the Funding Seller; provided, however, that such Purchase Price shall not be paid in cash from Collections to the extent that the payment thereof would cause the Servicer not to have sufficient funds to pay the full Required Amount pursuant to clause (c) below on the next Settlement Date.

		
	(c)
	No later than the Business Day immediately prior to each Settlement Date, the Servicer shall deposit cash in an amount equal to the Required Amount into the Collection Account to the extent not previously deposited thereto by the Funding Seller pursuant to the terms of this Agreement. On each Business Day prior to the Facility Termination Date, the Servicer shall transfer the Collections not required to be deposited into the Collection Account pursuant to the preceding sentence to the Funding Seller in partial payment of the amounts owed by the Purchaser to the Funding Seller hereunder.

		
	(d)
	On and after the Facility Termination Date, all Collections shall be deposited by the Servicer into the Collection Account immediately following a determination that such Collections relate to Purchased Receivables, but in each case within two (2) Business Days after receipt thereof.

		
	2.7
	Settlement Date Procedures. 

		
	(a)
	On each Settlement Date, the following amounts shall be deposited to the Collection Account by the Purchaser:

		
	(i)
	until the Facility Termination Date, the higher of (i) the Funded Amount for such Settlement Date minus the Funded Amount for the immediately preceding Settlement Date (which, for purposes of the first Settlement Date, shall be deemed to have been the Closing Date Funded Amount), and (ii) zero; and

25

		
	(ii)
	the amount of all payments required to be made by the Purchaser on such Settlement Date in respect of Immediate Write-Off Amounts in accordance with Section 5.3(b)(ii) and (iii).

		
	(b)
	All amounts on deposit in the Collection Account shall be applied by the Servicer on each Settlement Date (in accordance with the Monthly Report provided by the Servicer to the Bank Purchasing Agent prior to such Settlement Date) for the related Collection Period in the following order of priority:

		
	(i)
	to the Servicer in payment of the monthly Servicer Fee;

		
	(ii)
	to Wells Fargo, in payment of any other amounts, including indemnification amounts, payable to it in accordance with the organizational documents of the Purchaser or the organizational documents of the Purchaser’s manager, Billing Gate One Trust;

		
	(iii)
	to the Purchaser, (A) first, to the payment of the Factoring Fees, and (B) then, to the payment of the Commitment Fees;

		
	(iv)
	to the Purchaser, (A) the Administration Fee and (B) all indemnities and other amounts payable by the Funding Seller to any of the Purchasing Entities pursuant to the Transaction Documents;

		
	(v)
	to the Purchaser, an amount equal to the product of (x) the Discount Rate and (y) the Collections on Purchased Receivables owned by the Purchaser during the prior Collection Period; 

		
	(vi)
	to the Purchaser, an amount equal to the product of (x) the Discount Rate and (y) the amount of all Late Collections that occurred during the prior Collection Period;

		
	(vii)
	if the Funded Amount for such Settlement Date is less than the Funded Amount for the immediately preceding Settlement Date (which, for purposes of the first Settlement Date, shall be deemed to have been the Closing Date Funded Amount), the amount of such decrease in the Funded Amount (excluding a decrease in the Funded Amount pursuant to Section 5.3(b)(vi)) to the Purchaser; and

		
	(viii)
	the remainder, if any, to the Funding Seller.

		
	(c)
	Immediately upon the application of the payments disbursed pursuant to Sections 2.7(b)(v) and 2.7(b)(vi) above, the Bank Purchasing Agent shall increase the Discount Ledger Balance by such amounts. Following the Final Termination Date, any amounts relating to the Discount Ledger Balance shall be retained by the Purchaser in accordance with this Agreement.

		
	(d)
	The Servicer shall make available the amounts due to the Purchaser pursuant to Section 2.7(b) by wire transfer in U.S. dollars in same day funds to the accounts designated by the Bank Purchasing Agent no later than 3:00 p.m. (New York City time) on the related Settlement Date. 

		
	2.8
	UCC Filings. 

		
	(a)
	On or before the Closing Date, the Funding Seller shall cause to be filed:

26

		
	(i)
	with the Secretary of State of Delaware a UCC financing statement, naming the Funding Seller as debtor, the Purchaser as secured party, and the Bank Purchasing Agent as the assignee of the secured party;

		
	(ii)
	with respect to each Originator, with the Secretary of State of the state in which such Originator is organized or otherwise “located” for purposes of the UCC, a UCC financing statement, naming such Originator as debtor, the Initial Purchaser as secured party, and the Funding Seller as the assignee of the secured party; and

		
	(iii)
	with respect to each Originator, with the Secretary of State of the state in which such Originator is organized or otherwise “located” for purposes of the UCC, UCC Amendments (Form UCC-3) assigning each UCC financing statement described in the foregoing clause (ii) to the Purchaser as the assignee of the Funding Seller, to the Bank Purchasing Agent as the assignee of the Purchaser;

in each case as may be necessary or desirable under the UCC in order to perfect the respective interests of the Purchaser and the Bank Purchasing Agent in the Receivables sold, or purported to be sold, by the Funding Seller to the Purchaser hereunder. 
		
	(b)
	On or before the November 2014 Amendment Effective Date, the Funding Seller shall cause to be filed, with respect to each November 2014 Joining Originator, with the Secretary of State of the state in which such November 2014 Joining Originator is organized or otherwise “located” for purposes of the UCC:

		
	(i)
	a UCC financing statement naming such November 2014 Joining Originator as debtor and the Initial Purchaser as secured party;

		
	(ii)
	a UCC financing statement amendment assigning such financing statement to the Funding Seller;

		
	(iii)
	a UCC financing statement amendment assigning such amended financing statement to the Purchaser; and

		
	(iv)
	a UCC financing statement amendment assigning such amended financing statement to the Bank Purchasing Agent;

in each case as may be necessary or desirable under the UCC in order to perfect the respective interests of the Purchaser and the Bank Purchasing Agent in the Receivables sold, or purported to be sold, by the Funding Seller to the Purchaser hereunder. 
		
	(c)
	On or before the January 2015 Amendment Effective Date, the Funding Seller shall cause to be filed, with the Secretary of State of the state in which the January 2015 Originator is organized or otherwise “located” for purposes of the UCC: 

		
	(i)
	a UCC financing statement naming the January 2015 Joining Originator as debtor and the Initial Purchaser as secured party; 

		
	(ii)
	a UCC financing statement amendment assigning such financing statement to the Funding Seller; 

27

		
	(iii)
	a UCC financing statement amendment assigning such amended financing statement to the Purchaser; and 

		
	(iv)
	a UCC financing statement amendment assigning such amended financing statement to the Bank Purchasing Agent; 

in each case as may be necessary or desirable under the UCC in order to perfect the respective interests of the Purchaser and the Bank Purchasing Agent in the Receivables sold, or purported to be sold, by the Funding Seller to the Purchaser hereunder.
		
	(d)
	On or before the June 2016 Amendment Effective Date, the Funding Seller shall cause to be filed with the Secretary of State of Delaware UCC financing statement amendments amending each previously filed UCC financing statement that named the Funding Seller, the Initial Purchaser or any Originator as debtor and the Bank Purchasing Agent as secured party (or as the assignee of a secured party) so that each of the Bank Purchasing Agent and the Bank Collections Agent is named as a secured party (or as the assignee of a secured party, if applicable) in their respective agency capacities.

		
	(e)
	On or before the December 2016 Settlement Date, the Funding Seller shall cause to be filed with the Secretary of State of Delaware a UCC financing statement amendment amending each previously filed UCC financing statement that named the Funding Seller, the Initial Purchaser or any Originator as debtor and the Bank Purchasing Agent and the Bank Collections Agent as secured party (or as the assignee of a secured party) so that only the Bank Collections Agent in its agency capacity, and not the Bank Purchasing Agent in any capacity, shall be named as a secured party (or as the assignee of a secured party, if applicable).

		
	(f)
	The Funding Seller hereby irrevocably authorizes the Bank Collections Agent to file all such UCC financing statements (and amendments thereto and continuations thereof) and agrees to cooperate with the Bank Collections Agent in providing the necessary documents, signatures or further consents reasonably required therefor. If any further declarations or action be required to perfect the sale, assignment and transfer of the Receivables in accordance with this Agreement, the Funding Seller shall, at the Bank Collections Agent’s request, make any such declarations or take any such action.

		
	(g)
	The Funding Seller (and the Servicer) are hereby authorized to file all necessary UCC financing statements (and amendments thereto and continuations thereof) and UCC termination statements, in each case in form and substance satisfactory to the Bank Collections Agent, to reflect the transfers of Aged Receivables, Written-Off Receivables and Purchased Receivables from the Purchaser to the Funding Seller permitted hereunder.

		
	2.9
	Responsibilities. The parties hereto agree that:

		
	(a)
	except as expressly contemplated by this Agreement, the Funding Seller shall have no liability with respect to any Purchased Receivable;

		
	(b)
	subject to and in accordance with Article 3, the Servicer shall be responsible for the servicing and collection of Purchased Receivables on behalf of each of the Bank Purchasers in accordance with the terms hereof;

		
	(c)
	except as may be expressly permitted by this Agreement, the Purchaser shall not notify any Obligor of the sale and assignment of the Receivable made under this Agreement; it being understood that 

28

the disclosure of this Agreement or the existence of this Agreement to the public generally shall not constitute such a notification;
		
	(d)
	in the event that the Purchaser wishes to sell, transfer or assign all or part of the Purchased Receivables to a third party prior to the Facility Termination Date, the Purchaser shall offer the Funding Seller a right of first refusal to purchase such Purchased Receivables at a purchase price equal to the greater of (a) the price at which the Purchaser has agreed to sell such Purchased Receivables or (b) an amount equal to the (i) the Funding Advance Rate times (ii) the Outstanding Balance of such Purchased Receivables; provided, however, that  the Purchaser may sell undivided percentage interests in the Purchased Receivables and Related Rights to the Bank Purchasers pursuant to the Onward Receivables Purchase Agreement without initiating such right of first refusal if the Bank Purchasers agree to grant a similar right of first refusal to the Funding Seller with respect to any subsequent sale of such Purchased Receivables;

		
	(e)
	the Purchaser shall have the sole right to retain any gains or profits created by buying, selling or holding the Purchased Receivables; and except as otherwise expressly contemplated by this Agreement, the Purchaser shall have the sole risk of, and responsibility for, losses or damages created by such buying, selling or holding of such Purchased Receivables;

		
	(f)
	except as otherwise expressly contemplated by this Agreement, the sale and purchase of Purchased Receivables under this Agreement shall be without recourse to the Funding Seller; it being understood that the Funding Seller shall be liable to the Purchaser for all representations, warranties, covenants and indemnities made by the Funding Seller pursuant to the terms of this Agreement, all of which obligations are, except as otherwise expressly contemplated by this Agreement, limited so as not to constitute recourse to the Funding Seller for the credit risk of the Obligors; and

		
	(g)
	the Purchaser shall have no obligation or liability to any Obligor (including any obligation to perform any of the obligations of the Originators under any Receivable, related contracts or any other related purchase orders or other agreements). No such obligation or liability is intended to be assumed by the Purchaser hereunder, and any assumption is expressly disclaimed.

		
	2.10
	Intention of the Parties. It is the intention of the parties hereto that the sale of the Purchased Receivables hereunder shall constitute a “sale of accounts”, as such term is used in Section 9-109(a) of the UCC and therefore this Agreement is intended to create a “security interest” in the Purchased Receivables within the meaning of the UCC in favor of the Purchaser. The Funding Seller and the Purchaser intend the sales of Purchased Receivables hereunder to be considered to be “true sales” of the Purchased Receivables and Related Rights by the Funding Seller to the Purchaser that (A) shall constitute irrevocable, absolute transfers of the same by the Funding Seller to the Purchaser and (B) provide the Purchaser with the full benefits of ownership of the Purchased Receivables and Related Rights. If, notwithstanding such intent, any Purchased Receivables or Related Rights are determined to be property of the Funding Seller’s estate and the conveyance of such property hereunder shall be characterized as a loan secured by such property (any of the foregoing being referred to herein as a “Recharacterization”), then (i) this Agreement also shall be deemed to be, and hereby is, a “security agreement” within the meaning of the UCC, and (ii) the conveyance by the Funding Seller provided for in this Agreement shall be deemed to be a grant by the Funding Seller to the Purchaser, and the Funding Seller hereby grants to the Purchaser, a security interest in, to and under all of the Funding Seller’s right, title and interest in, to and under the Purchased Receivables and Related Rights conveyed by the Funding Seller to the Purchaser, hereunder, whether now or hereafter existing or created, to secure (1) the rights of the Purchaser hereunder, (2) a loan by the Purchaser to the Funding Seller in the amount of the Funded Amount from time to time and (3) without limiting any of the foregoing, the payment and performance of the obligations (whether monetary or 

29

otherwise) from time to time owing by the Funding Seller to the Purchaser hereunder. The Funding Seller shall take such actions as may be necessary to ensure that a security interest in such Purchased Receivables will be a perfected security interest of first priority in favor of the Purchaser under the UCC and all other applicable law and shall be maintained as such throughout the term of this Agreement. If a Recharacterization were to occur, after the occurrence of any Termination Event, the Purchaser and its permitted assignees (including the Bank Collections Agent, to the extent contemplated by the Onward Receivables Purchase Agreement) shall have, in addition to the rights and remedies contemplated by this Agreement and the other Transaction Documents, all other rights and remedies against the Funding Seller and the Originators provided to a secured creditor under the UCC and other applicable law, and the parties hereto agree that each remittance of Collections to the Purchaser hereunder shall be, or have been, in payment of debt incurred by the Funding Seller in the ordinary course of its business.
		
	2.11
	Tax Treatment. Notwithstanding anything to the contrary contained herein, the Funding Seller and the Purchaser agree that, except as otherwise required by applicable law, the transfer of the Purchased Receivables and Related Rights by the Funding Seller to the Purchaser shall be treated as a loan to the Funding Seller of the proceeds of such transfer for U.S. federal income tax purposes and state or local income tax and transactional tax purposes.

		
	2.12
	Records. The Funding Seller shall mark its accounting records regarding the Purchased Receivables conveyed by it hereunder to indicate the sale, transfer, set-off and assignment of the Purchased Receivables to the Purchaser.

		
	2.13
	Increase in Funding Limit.  The Funding Seller may, at any time and from time to time, request in writing, with a copy to each of the Purchasing Entities, that the Bank Purchasers increase the Funding Limit (a “Funding Limit Increase Request”), provided that:

		
	(a)
	any such requested increase shall be in an amount not less than $20,000,000 and would not, if effected, cause the Funding Limit to exceed $950,000,000; 

		
	(b)
	each Bank Purchaser shall make a determination whether or not to accept any request to increase the Funding Limit and shall notify the Funding Seller and the other Purchasing Entities in writing of such determination within thirty (30) Business Days of receipt of a Funding Limit Increase Request; and 

		
	(c)
	if any Bank Purchaser fails to so notify the Funding Seller or the Bank Purchasing Agent, such Bank Purchaser shall be deemed to have refused to consent to such Funding Limit Increase Request.  

		
	2.14
	Decrease in Funding Limit. The Funding Seller may, at any time and from time to time, request in writing, with a copy to each of the Purchasing Entities, that the Bank Purchasers decrease the Funding Limit (a “Funding Limit Decrease Request”); provided that no such requested decrease shall be in an amount less than $10,000,000 and the aggregate of all of such requested decreases shall not exceed 20% of the greatest Funding Limit at any time since the Closing Date. Any such decrease shall take effect on the Settlement Date following such Funding Limit Decrease Request. 

		
	3.
	Servicing of Purchased Receivables

		
	3.1
	Appointment of Servicer. The servicing, administration and collection of the Purchased Receivables shall be conducted by the Servicer so designated hereunder from time to time. Until either of the Co-Agents gives prior notice to the Funding Seller and the other Co-Agent of the designation of a new Servicer in accordance with the terms hereof, T-Mobile PCS Holdings is hereby designated as, and hereby agrees to 

30

perform the duties and obligations of, the Servicer pursuant to the terms hereof. Each of (i) the Bank Collections Agent, at any time after the occurrence of a Servicer Termination Event, and (ii) the Bank Purchasing Agent, following receipt by the Funding Seller of three months’ prior written notice of the Bank Purchasing Agent’s election to designate a new Servicer (an event under this clause (ii), a “Servicer Replacement Event”), may designate as Servicer any Person (including, in each case, either of the Co-Agents) to succeed T-Mobile PCS Holdings or any successor Servicer, if such Person shall consent and agree to the terms hereof, and so long as such Person is not a Competitor. The Servicer may subcontract with an Affiliate of the Servicer for the servicing, administration or collection of the Purchased Receivables. Any such subcontract shall not affect the Servicer’s liability for performance of its duties and obligations pursuant to the terms hereof. Any termination of the Servicer shall also terminate such subcontract.
		
	3.2
	Servicing of Receivables; Standard of Care.

		
	(a)
	The Servicer shall take or cause to be taken all such actions as may be necessary or advisable to collect each Purchased Receivable from time to time, all in accordance with applicable laws, rules and regulations, with reasonable care and diligence, and in accordance with the Credit and Collection Policy. The Funding Seller and the Purchaser hereby appoint the Servicer, from time to time designated pursuant to Section 3.1, as agent for themselves to enforce their respective rights and interests in the Purchased Receivables and the Related Rights. In performing its duties as Servicer, the Servicer shall exercise the same care and apply the same policies as it would exercise and apply if it owned such Purchased Receivables.

		
	(b)
	If no Termination Event shall have occurred and be continuing, the Servicer, may, in accordance with the Credit and Collection Policy, extend the maturity or adjust the Outstanding Balance or otherwise modify the payment terms of any Purchased Receivable as it deems appropriate; provided that such modification shall not (i) modify or alter the status of any Purchased Receivable as an Aged Receivable or Delinquent Receivable or (ii) limit the rights of the Purchaser, the Bank Collections Agent or the Bank Purchasing Agent. Notwithstanding anything to the contrary in this Agreement, a Purchased Receivable which has become an EPS Receivable shall not be considered an Aged Receivable or a Delinquent Receivable for purposes of this Agreement. The Servicer shall not permit any Purchased Receivable to become an EPS Receivable if, during any Collection Period, the aggregate Nominal Value of Purchased Receivables that become EPS Receivables during such Collection Period would exceed $10,000,000.

		
	(c)
	The Servicer shall, as soon as practicable following receipt, turn over to the owner thereof any cash collections or other cash proceeds received with respect to receivables not constituting Purchased Receivables.

		
	(d)
	The Funding Seller, the Initial Purchaser and the Originators shall perform their respective obligations under the Contracts related to the Purchased Receivables to the same extent as if Purchased Receivables had not been sold and the exercise by the Purchaser of its rights under this Agreement shall not release the Servicer, any Originator, the Initial Purchaser or the Funding Seller from any of their duties or obligations with respect to any Purchased Receivables or related Contracts. The Purchaser shall have no obligation or liability with respect to any Purchased Receivables or related Contracts, nor shall it be obligated to perform the obligations of the Funding Seller, the Initial Purchaser or the Originators thereunder.

		
	(e)
	Subject to Section 3.2(b), the Servicer shall not, without the prior written consent of the Bank Purchasing Agent, make any change to its Credit and Collection Policy that would have a material adverse effect on the Bank Purchasers or the credit quality of the Purchased Receivables. 

31

		
	3.3
	Reporting.

		
	(a)
	On or before each Reporting Date, the Servicer shall prepare and forward to each of the Purchasing Entities a Monthly Report relating to the Purchased Receivables outstanding on the last day of the immediately preceding Collection Period. 

		
	(b)
	On or before each Reporting Date, the Servicer shall prepare and provide to the Bank Purchasing Agent the T-Mobile Information relating to the Purchased Receivables outstanding on the last day of the immediately preceding Collection Period. The parties hereto acknowledge and agree that such T-Mobile Information shall be maintained by the Bank Purchasing Agent in the United States of America and such T-Mobile Information may be viewed, but cannot be shared or distributed outside the United States of America.

		
	3.4
	Cooperation of the Funding Seller, the Initial Purchaser, and the Originators. The Funding Seller will, and will cause each of the Initial Purchaser and the Originators to, from time to time, at its own expense, promptly execute and deliver all further instruments and documents and take all further actions that may be reasonably necessary or desirable, or that the Bank Collections Agent may reasonably request, to perfect, protect or more fully evidence the transfers and/or ownership of the Purchased Receivables under the Transaction Documents, or to enable the Purchaser to exercise and enforce its rights and remedies hereunder. 

		
	3.5
	Rights of the Co-Agents following a Servicer Event. 

		
	(a)
	At any time after a Servicer Termination Event, unless the Final Termination Date has occurred:

		
	(i)
	the Bank Collections Agent may direct the Obligors of Purchased Receivables that all payments thereunder be made directly to the Purchaser or one or more of the other Purchasing Entities (as directed by the Bank Collections Agent);

		
	(ii)
	at the Funding Seller’s expense, the Bank Collections Agent may, and, at the request of the Bank Collections Agent, the Servicer shall, deliver a Notice of Assignment to each Obligor of Purchased Receivables and direct that payments be made directly to the Purchaser or any Person or Persons otherwise acceptable to the Bank Purchasers; and

		
	(iii)
	after the replacement of T-Mobile PCS Holdings as Servicer, at the Bank Collections Agent’s request and at the Funding Seller’s expense, the Funding Seller and the Servicer shall (x) assemble all of the documents, instruments and other records (including, without limitation, computer tapes and disks) that evidence or relate to the Purchased Receivables and the related Contracts and Related Rights, or that are otherwise necessary or desirable to collect the Purchased Receivables, and shall make the same available to the Purchaser and the Bank Collections Agent at a place selected by the Bank Collections Agent, (y) segregate all cash, checks and other instruments received by it from time to time constituting Collections of Purchased Receivables in a manner acceptable to the Bank Collections Agent, and (z) promptly upon receipt, remit all such cash, checks and instruments, duly endorsed or with duly executed instruments of transfer, to the Purchaser or one or more of the other Purchasing Entities (as directed by the Bank Collections Agent).

		
	(b)
	At any time before a Servicer Termination Event but after a Servicer Replacement Event, unless the Final Termination Date has occurred:

32

		
	(i)
	the Bank Purchasing Agent may direct the Obligors of Purchased Receivables that all payments thereunder be made directly to the Purchaser or one or more of the other Purchasing Entities (as directed by the Bank Purchasing Agent);

		
	(ii)
	at the Funding Seller’s expense, the Bank Purchasing Agent may, and, at the request of the Bank Purchasing Agent, the Servicer shall, deliver a Notice of Assignment to each Obligor of Purchased Receivables and direct that payments be made directly to the Purchaser or any Person or Persons otherwise acceptable to the Bank Purchasers; and

		
	(iii)
	after the replacement of T-Mobile PCS Holdings as Servicer, at the Bank Purchasing Agent’s request and at the Funding Seller’s expense, the Funding Seller and the Servicer shall (x) assemble all of the documents, instruments and other records (including, without limitation, computer tapes and disks) that evidence or relate to the Purchased Receivables and the related Contracts and Related Rights, or that are otherwise necessary or desirable to collect the Purchased Receivables, and shall make the same available to the Purchaser and the Bank Purchasing Agent at a place selected by the Bank Purchasing Agent, (y) segregate all cash, checks and other instruments received by it from time to time constituting Collections of Purchased Receivables in a manner acceptable to the Bank Purchasing Agent, and (z) promptly upon receipt, remit all such cash, checks and instruments, duly endorsed or with duly executed instruments of transfer, to the Purchaser or one or more of the other Purchasing Entities (as directed by the Bank Purchasing Agent).

		
	3.6
	Rights of the Bank Collections Agent following a Termination Event. 

		
	(a)
	The Bank Collections Agent is authorized at any time after the occurrence of a Termination Event to deliver to the Collection Account Bank the notice of effectiveness provided for in the Account Control Agreement. The Funding Seller hereby transfers to the Bank Collections Agent the exclusive control of the Collection Account, subject only to the Bank Collections Agent’s delivery of such notice of effectiveness. The Funding Seller shall take any actions reasonably requested by the Bank Collections Agent to effect such transfer of control of the Collection Account to the Purchaser. All amounts in the Collection Account will be distributed on each Settlement Date in accordance with Section 2.7.

		
	(b)
	Following a Termination Event, the Funding Seller authorizes the Bank Collections Agent to take any and all steps in the Funding Seller’s name and on behalf of the Funding Seller that are necessary or desirable, in the determination of the Bank Collections Agent, to collect amounts due under the Purchased Receivables to the Bank Purchasers under the Onward Receivables Purchase Agreement, including, without limitation, endorsing the Funding Seller’s name on checks and other instruments representing Collections of Purchased Receivables and enforcing the Purchased Receivables and the Related Rights.

		
	3.7
	Periodic Audits by the Bank Purchasing Agent. 

		
	(a)
	The Servicer will, and will cause each of the Initial Purchaser and each of the Originators to, from time to time during regular business hours as may be reasonably requested by the Bank Purchasing Agent or any Bank Purchaser, permit the Bank Purchasing Agent or such Bank Purchaser:

		
	(i)
	to conduct periodic audits of the Purchased Receivables, the Related Rights and the related books and records and collections systems of the Servicer, the Funding Seller, the Initial Purchaser and the Originators, provided that information relating to specific Receivables shall be limited to the T-Mobile Information; 

33

		
	(ii)
	upon reasonable prior notice, to examine all books, records and documents (including, without limitation, computer tapes and disks) in the possession or under the control of the Servicer, the Funding Seller, the Initial Purchaser or the Originators relating to Purchased Receivables and the Related Rights, including, without limitation, the Contracts, provided that information relating to specific Receivables shall be limited to the T-Mobile Information; and

		
	(iii)
	upon reasonable prior notice, to visit the offices and properties of the Servicer, the Funding Seller, the Initial Purchaser or the Originators for the purpose of examining such materials described in Section 3.7(a)(ii) above, and to discuss matters relating to Purchased Receivables and the Related Rights or the Servicer’s performance hereunder with any of the officers or employees of the Servicer, the Funding Seller, the Initial Purchaser or the Originators having knowledge of such matters; provided that, unless a Termination Event shall have occurred and be continuing, neither the Funding Seller nor the Servicer shall be liable for the cost of any of the actions contained in this Section 3.7(a)(iii) more often than once every twelve months.

		
	(b)
	The Servicer shall assist each Bank Purchaser (including its auditors and supervisory authorities, which may include the Bundesanstalt für Finanzdienstleistungsaufsich) and provide them with information readily available to the Servicer upon a reasonable request, subject to applicable data protection laws and banking secrecy duty, provided that information with respect to any individual Receivables shall be limited to the T-Mobile Information.

		
	3.8
	Accountant’s Report. Upon request by the Bank Purchasing Agent or any of the Bank Purchasers (which, at any time prior to the occurrence of a Termination Event, shall be no more frequent than once every twelve months and may be performed contemporaneously with the annual audit of the Funding Seller), the Funding Seller shall at its expense appoint independent public accountants (which may be the audit firm of the Performance Guarantor) to prepare and deliver to the Bank Purchasing Agent a written report with respect to the Purchased Receivables and the Credit and Collection Policy (including, in each case, the systems, procedures and records relating thereto) of a scope substantially as described on Annex 7 attached hereto with such changes as may be reasonably requested by the Bank Purchasing Agent and in the format to be agreed between the Bank Purchasing Agent and the Funding Seller.

		
	3.9
	Payment of Taxes. The Servicer will, and will cause each Originator to, pay all sales, excise or other taxes with respect to the Purchased Receivables to the applicable taxing authority when due, and will, upon the request of the Bank Purchasing Agent or any Bank Purchaser, provide it with evidence of such payment.

		
	3.10
	Segregation of Collections. From and after the occurrence, and during the continuation, of a Termination Event, the Servicer shall cause all Collections with respect to the Purchased Receivables to be deposited to deposit accounts of the Servicer or of the related Originator which contain no cash other than Collections of Purchased Receivables and collections of other Receivables. The Servicer shall, within 2 Business Days of their receipt, identify all Collections received into such deposit accounts and shall deposit such Collections to the Collection Account. The Servicer shall not transfer any funds, and shall not permit any funds to be transferred, out of such deposit accounts and shall not allow such funds to be commingled with any other cash prior to the identification of such funds as Collections or otherwise.

		
	3.11
	Servicer Indemnity. Without limiting any other rights that any of the Purchasing Entities or any of their respective Affiliates or agents (each, a “Special Indemnified Party”) may have hereunder or under applicable law, and in consideration of its appointment as Servicer, the Servicer hereby agrees to indemnify each Special Indemnified Party from and against any and all claims, damages, costs, expenses, losses and liabilities (including reasonable attorneys’ fees) (all of the foregoing being collectively referred to as 

34

“Special Indemnified Amounts”) arising out of or resulting from any of the following, excluding, however, (a) Special Indemnified Amounts to the extent resulting from gross negligence or willful misconduct on the part of a Special Indemnified Party, (b) recourse for uncollectible Receivables and (c) any Excluded Taxes:
		
	(a)
	any representation or warranty or statement made by the Servicer under or in connection with this Agreement or the Transaction Documents that shall have been incorrect in any material respect when made or deemed made;

		
	(b)
	the failure by the Servicer to comply with any applicable law, rule or regulation with respect to any Purchased Receivable or Contract, including payment of all unpaid sales, excise or other taxes when due;

		
	(c)
	any failure of the Servicer to perform its duties or obligations in accordance with the provisions of this Agreement;

		
	(d)
	the commingling of Collections of Purchased Receivables at any time by the Servicer with other funds;

		
	(e)
	any action or omission by the Servicer not in compliance with the Credit and Collection Policy that has the effect of reducing or impairing the rights of any of the Purchasing Entities with respect to any Purchased Receivable or the value of any Purchased Receivable;

		
	(f)
	any claim brought by any Person arising from any activity by the Servicer or its Affiliates in servicing, administering or collecting any Purchased Receivable; or

		
	(g)
	any dispute, claim, offset or defense of the Obligor to the payment of any Purchased Receivable as a result of the collection activities with respect to such Purchased Receivable by the Servicer.

		
	3.12
	Representations of the Servicer. The Servicer hereby represents and warrants to each of the Purchasing Entities that, as of the date hereof and each Purchase Date:

		
	(a)
	the Servicer (i) is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware, (ii) is duly qualified to do business and (iii) has all corporate or other organizational power and all licenses, authorizations, consents, approvals and qualifications, of and from all third parties required to execute and deliver and perform its obligations under the Transaction Documents to which it is a party and to carry on its business in each jurisdiction in which its business is now conducted except where the failure to so qualify could not be expected to have a material adverse effect on the Servicer’s ability to perform its duties or obligations with respect to the Purchased Receivables;

		
	(b)
	the execution, delivery and performance by the Servicer of this Agreement and any other Transaction Document to which it is a party, (i) are within the Servicer’s corporate powers, (ii) have been duly authorized by all necessary corporate action, (iii) do not, with respect to execution and delivery, and will not, with respect to the performance of its obligations, contravene or constitute a default under (A) the Servicer’s organic documents, (B) any applicable law, (C) any contractual restriction binding on or affecting the Servicer or its property or (D) any order, writ, judgment, award, injunction or decree binding on or affecting the Servicer or its property;

		
	(c)
	each Transaction Document to which the Servicer is a party has been duly executed and delivered by the Servicer;

35

		
	(d)
	no authorization, approval, license, consent, qualification or other action by, and no notice to or filing or registration with, any governmental body or agency or official thereof or any third party is required for the due execution, delivery and performance by the Servicer of this Agreement or any other Transaction Document to which the Servicer is a party or any other document to be delivered by the Servicer hereunder or thereunder, all of which have been duly made or taken, as the case may be, and are in full force and effect;

		
	(e)
	each Transaction Document to which the Servicer is a party constitutes the legal, valid and binding obligations of the Servicer enforceable against the Servicer in accordance with its terms, subject to any limitation on the enforceability thereof against the Funding Seller arising from the application of any applicable bankruptcy law or by general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law);

		
	(f)
	(i) there are no actions, suits, investigations by any governmental body or agency, litigation or proceedings at law or in equity or by or before any governmental body or agency or in arbitration now pending, or credibly threatened, against or affecting the Servicer or any of its businesses, properties or revenues that could reasonably be expected to result in a Material Adverse Change; and (ii) the Servicer is not in default or violation of any order, judgment or decree of any governmental body or agency or arbitrator that could reasonably be expected to result in a Material Adverse Change;

		
	(g)
	no Bankruptcy Event has occurred with respect to the Servicer;

		
	(h)
	the Servicer (i) is not overdue in the filing of any income tax returns or any other material tax returns required to be filed; and (ii) has made adequate provision for the payment of all income taxes and all other material taxes, assessments and other government charges;

		
	(i)
	the Servicer has the capability to identify each Purchased Receivable sold and assigned hereunder on a daily basis and the Collections received with respect thereto within 2 Business Days after receipt;

		
	(j)
	the Servicer has not breached any laws applicable to it or its business or property that could reasonably be expected to result in a Material Adverse Change;

		
	(k)
	each Monthly Report, information, exhibit, financial statement, document, book, record or report furnished at any time by or on behalf of the Servicer to the Purchaser or the Bank Purchasing Agent in connection with this Agreement is true, complete and accurate in all material respects as of its date or as of the date so furnished, and, as of such date, no such document contains any untrue statement of a material fact or (taken as a whole) omits to state a material fact necessary in order to make the statements contained therein, in the light of the circumstances under which they were made, not misleading;

		
	(l)
	each Purchased Receivable is an Eligible Receivable as of its Purchase Date; 

		
	(m)
	all sales, excise or other taxes with respect to the goods, insurance or services that are the subject of any Contract for a Purchased Receivable have been paid as and when due unless such amounts are being disputed in good faith; and

		
	(n)
	the name and address of the Payment Account Banks, together with the account names and numbers of the Payment Accounts, are specified in the Master Receivables Purchase Agreement Side Letter.

36

		
	4.
	Fees and Payments; Increased Costs; Set-Off

		
	4.1
	Commitment Fees. 

		
	(a)
	On the December 2016 Settlement Date, the Purchaser, for the benefit of Autobahn, shall be entitled to receive from Collections a commitment fee equal to $55,000.

		
	(b)
	On the January 2017 Settlement Date and each subsequent Settlement Date thereafter, the Purchaser, for the benefit of each Bank Purchaser, shall be entitled to receive from Collections a commitment fee in an amount equal to the product of (a) such Bank Purchaser’s Commitment Fee Rate, (b) such Bank Purchaser’s Ratable Share of the Unused Part of the Funding Limit as of such Settlement Date, and (c) a fraction, (i) the numerator of which is the actual number of days elapsed during the most recently ended Accrual Period and (ii) the denominator of which is 360. 

		
	4.2
	Factoring Fees. 

		
	(a)
	On the December 2016 Settlement Date, the Purchaser, for the benefit of each of BTMU and Helaba, shall be entitled to receive from Collections a fee in an amount equal to the product of (a) such Bank Purchaser’s LIBOR Rate for the immediately preceding Accrual Period plus such Bank Purchaser’s Factoring Fee Margin in effect during such Accrual Period, (b) such Bank Purchaser’s Ratable Share, determined as of the November 2016 Settlement Date, of the Funded Amount on the November 2016 Settlement Date and (c) a fraction, (i) the numerator of which is the actual number of days that elapsed during the most recently ended Accrual Period and (ii) the denominator of which is 360.

		
	(b)
	On the January 2017 Settlement Date and each subsequent Settlement Date thereafter, the Purchaser, for the benefit of each Bank Purchaser, shall be entitled to receive from Collections a fee in an amount equal to the product of (a) such Bank Purchaser’s LIBOR Rate for the immediately preceding Accrual Period plus such Bank Purchaser’s Factoring Fee Margin in effect during such Accrual Period, (b) such Bank Purchaser’s Ratable Share of the Funded Amount on the immediately preceding Settlement Date and (c) a fraction, (i) the numerator of which is the actual number of days that elapsed during the most recently ended Accrual Period and (ii) the denominator of which is 360.

		
	4.3
	Servicer Fee. 

		
	(a)
	On each Settlement Date, the Servicer shall be entitled to receive a fee (the “Servicer Fee”) in an amount equal to the product of (a) 0.20%, (b) the Funded Amount on the immediately preceding Settlement Date (which, for purposes of the first Settlement Date, shall be deemed to have been the Closing Date Funded Amount), and (c) a fraction, (i) the numerator of which is the actual number of days elapsed during the most recently ended Accrual Period and (ii) the denominator of which is 360. If the Servicer shall at any time cease to be a member of the T-Mobile Group, the Bank Purchasing Agent and such Servicer may agree to a different percentage per annum, but in no event in excess of 110% of the reasonable costs and expenses of the Servicer in administering and collecting the Purchased Receivables.

		
	(b)
	The Servicer shall issue a separate invoice to each of the Bank Purchasers on the services rendered during any month and the Servicer Fee thereon by the Settlement Date in the following month. Such invoices shall be materially in the form specified in Annex 10. The Bank Purchasing Agent shall inform the Servicer of any required change to the invoicing should the relevant statutory VAT provisions or their interpretation change. Notwithstanding the receipt of invoices by the Bank 

37

Purchasers from the Servicer, the Servicer Fee shall be payable only from Collections pursuant to Section 2.7. 
		
	4.4
	Increased Costs. If any of the Affected Parties shall have determined that any Change in Law shall have the effect of reducing the rate of return on such party’s respective capital or assets as a consequence of its obligations or the purchases of Purchased Receivables hereunder or under the Onward Receivables Purchase Agreement to a level below that which such party could have achieved but for such adoption, change or compliance (taking into consideration such party’s policies with respect to capital adequacy) by an amount deemed by such party to be material, then from time to time, within 15 days of submission by such party to the Funding Seller of a written request therefor, the Funding Seller shall pay to such party such additional amount or amounts as will compensate such party for such reduction (the “Increased Costs”). A certificate as to any additional amounts payable pursuant to this Section 4.4 submitted by such party to the Funding Seller shall be conclusive in the absence of manifest error. The obligations of the Funding Seller pursuant to this Section 4.4 shall survive the termination of this Agreement and the payment of all other amounts owing by the Funding Seller to such party hereunder.

		
	4.5
	Set-Off. No Purchasing Entity shall have any right of set-off with respect to the obligations of the parties to the Transaction Documents other than those rights arising under applicable law.

		
	4.6
	Obligations of Funding Seller, Servicer and Performance Guarantor. Except as otherwise expressly provided herein, the obligations of the Funding Seller, the Servicer and the Performance Guarantor to make the deposits and other payments contemplated by this Agreement are absolute and unconditional and all payments to be made by the Funding Seller, the Servicer or the Performance Guarantor under or in connection with this Agreement shall be made free and clear of, and each of the Funding Seller, the Servicer and the Performance Guarantor hereby irrevocably and unconditionally waives all rights of, any counterclaim, set-off, deduction or other analogous rights or defenses, in connection with such obligations, which it may have against any of the Purchasing Entities (including any obligation of any Purchasing Entity in respect of payment of the Deferred Purchase Price). All stamp, documentary, registration or similar duties or taxes, including withholding taxes and any penalties, additions, fines, surcharges or interest relating thereto, which are imposed or chargeable in connection with this Agreement shall be paid by the Funding Seller; provided that each of the Purchasing Entities shall be entitled but not obliged to pay any such duties or taxes whereupon the Funding Seller shall on demand indemnify such party against those duties or taxes and against any costs and expenses so incurred by it in discharging them.

		
	4.7
	Taxes. 

		
	(a)
	Any and all payments and distributions made by, or on behalf of, the Funding Seller in respect of the Purchased Receivables and the Related Rights that shall be conveyed by the Funding Seller to the Purchaser hereunder or otherwise, and all payments and distributions required to be made or deemed to have been made by, or on behalf of, the Funding Seller or any other Person (including the Purchaser) to any of the Purchasing Entities pursuant to any Transaction Document shall be made free and clear of, and without deduction for, any Indemnified Taxes, provided that:

		
	(i)
	if the Funding Seller or any other Person shall be required to deduct any Indemnified Taxes from such payments, then (1) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section 4.7) such Purchasing Entity receives an amount equal to the sum it would have received had no such deductions been made, (2) the Funding Seller or such Person shall make such deductions, and (3) the Funding Seller or such Person shall pay the full amount deducted to the relevant Governmental Authority in accordance with applicable law; and 

38

		
	(ii)
	the Funding Seller shall not be obligated to make a payment under this Section 4.7 in respect of penalties, interest, and additions to Tax attributable to any Indemnified Taxes (and, for the avoidance of doubt, reasonable expenses arising therefrom or with respect thereto), if (1) such penalties, interest or additions to Tax are attributable to the failure of the Purchaser to pay the relevant Governmental Authority amounts received by it from the Funding Seller or any other Person, as the case may be in respect of Indemnified Taxes within 30 days after receipt of such amount from the Funding Seller or any such other Person or (2) such penalties, interest or additions to Tax are attributable to the gross negligence or willful misconduct of the Purchaser.

Notwithstanding anything to the contrary contained in this Agreement, none of the Funding Seller, the Servicer, the Originators or the Performance Guarantor shall have any obligation to make a “gross-up” payment of taxes or indemnification under this Section 4.7 to the Purchaser or the Bank Purchasers related to a FATCA Deduction.
		
	(b)
	Notwithstanding any other provision of this Agreement, the Funding Seller shall comply with all federal and state withholding requirements with respect to payments to any of the Purchasing Entities of amounts that the Funding Seller reasonably believes are applicable under the Code, the treasury regulations or any applicable state or local law. The Funding Seller will withhold on payments to each of the Purchasing Entities unless such Purchasing Entity provides at such time or times as required by law (i) a correct, complete and properly executed U.S. Internal Revenue Service Form W-8BEN claiming eligibility of such Purchasing Entity for benefits of an income tax treaty to which the United States is a party, (ii) a correct, complete and properly executed U.S. Internal Revenue Service Form W-8ECI, (iii) a correct, complete and properly executed U.S. Internal Revenue Service Form W-8BEN and a certificate of a duly authorized officer of such Purchasing Entity to the effect that such Purchasing Entity is not (A) a “bank” within the meaning of Section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the Funding Seller within the meaning of Section 881(c)(3)(B) of the Code, or (C) a controlled foreign corporation receiving interest from a related person within the meaning of Section 881(c)(3)(C) of the Code, or (iv) a correct, complete and properly executed U.S. Internal Revenue Service Form W-8IMY, with appropriate attachments from each of the beneficial owners that either (a) satisfies one of the clauses (i) through (iii) above or (b) is a correct, complete and properly executed U.S. Internal Revenue Service Form W-9. For any period with respect to which any of the Purchasing Entities has failed to provide the Funding Seller with the appropriate, complete and accurate form or other relevant document pursuant to this Section 4.7 establishing a complete exemption from U.S. federal withholding tax, such Purchasing Entity shall not be entitled to any “gross-up” of taxes or indemnification under this Section 4.7.

		
	(c)
	If a payment made to any of the Purchasing Entities under any Transaction Document would be subject to U.S. Federal withholding Tax imposed by FATCA if such party were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such party shall deliver to the Funding Seller, at the time or times prescribed by law and at such time or times reasonably requested by the Funding Seller, such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Funding Seller as may be necessary for the Funding Seller to comply with its obligations under FATCA, to determine that such party has or has not complied with its obligations under FATCA and, as necessary, to determine the amount to deduct and withhold from such payment. 

		
	4.8
	Late Fees. 

39

		
	(a)
	If the Funding Seller, the Servicer or the Performance Guarantor shall default in the payment, when due, of any amount owed by it to the Purchaser pursuant to Sections 2.7(b)(v), 2.7(b)(vi), 2.7(b)(vii), 5.4(i), 5.4(iv) or 5.4(v), then the Funding Seller, the Servicer or the Performance Guarantor, as the case may be, shall pay to the Purchaser, for the benefit of each Bank Purchaser, interest on such Bank Purchaser’s Ratable Share of the amount of such payment at a per annum rate equal to (i) such Bank Purchaser’s LIBOR Rate during the related Accrual Period plus such Bank Purchaser’s Factoring Fee Margin in effect during such Accrual Period plus (ii) 2.00% for the period beginning on (and including) the first day on which such payment was due and ending on (but not including) the day on which such payment is remitted to the Purchaser, which interest shall be calculated on the basis of the actual number of days included in such period and a year consisting of 360 days.

		
	(b)
	If the Funding Seller, the Servicer or the Performance Guarantor shall default in the payment, when due, of any amount not subject to subsection (a) above owed by it to any of the Purchasing Entities hereunder, then the Funding Seller, the Servicer or the Performance Guarantor, as the case may be, shall pay to each relevant Affected Party interest on the amount of such payment at a per annum rate equal to (i) such Affected Party’s LIBOR Rate during the related Accrual Period plus such Affected Party’s Factoring Fee Margin in effect during such Accrual Period plus (ii) 2.00% for the period beginning on (and including) the first day on which such payment was due and ending on (but not including) the day on which such payment is remitted to such Affected Party, which interest shall be calculated on the basis of the actual number of days included in such period and a year consisting of 360 days.

		
	5.
	Repurchase of Receivables; Allocation and Sharing of Losses

		
	5.1
	Retransfer and Repurchase of Certain Receivables. 

		
	(a)
	Imminent Write-Offs; EPS Receivables. On each Business Day, each Purchased Receivable that the Servicer has determined will become the subject of a Write-Off, any Aged Receivable that has not been repurchased by the Funding Seller in accordance with Section 5.1(b) below and each Purchased Receivable that has become an EPS Receivable shall be retransferred by the Purchaser to the Funding Seller, automatically, and without any further action by the Purchaser or the Funding Seller.

		
	(b)
	Aged Receivables Repurchases. In addition to the foregoing, unless the Servicer at any time shall have failed to pay the Required Amount into the Collection Account in accordance with Section 2.6(c), during each Collection Period, on each Business Day that shall occur during such Collection Period, the Funding Seller shall repurchase from the Purchaser each Purchased Receivable that shall have become an Aged Receivable, it being agreed and understood (i) that the repurchase thereof shall be settled on the first Settlement Date to occur after the end of such Collection Period in accordance with the following provisions of this Section 5.1(b) and (ii) that, notwithstanding any of the foregoing, at any time, the Funding Seller may notify each of the Purchasing Entities in writing that, for any Batch, the Funding Seller shall repurchase Aged Receivables pursuant to this Section 5.1 only to the extent that the aggregate Outstanding Balance of all of the Aged Receivables from such Batch repurchased by the Funding Seller during the term of this Agreement would not exceed 10.00% of the related Batch Receivables Amount, which limitation of repurchases shall take effect on the first Settlement Date to occur after the end of the Collection Period during which such notification was given. 

For each Batch, the repurchase price payable by the Funding Seller to the Purchaser for such Aged Receivables (i) shall be an amount equal to the product of (A) the Funding Advance Rate times (B)

40

the aggregate Outstanding Balance of all of the repurchased Aged Receivables included in such Batch; and (ii) shall be paid on the Settlement Date on which their repurchase is to occur in accordance with this Section 5.1(b) by requiring the Funding Seller to pay to the Purchaser an amount equal to the aggregate amount of all of such repurchase prices, which amount shall be deemed to have been paid by requiring the Purchaser to reduce the Mandatory Repurchase Reserve Payment Amount for such Settlement Date by a corresponding amount, it being understood between the parties that such reduction may result in a negative Mandatory Repurchase Reserve Payment Amount.
		
	(c)
	All of the transfers and repurchases of Receivables contemplated by Sections 5.1(a) and 5.1(b) shall occur without recourse to, and without warranty of any kind made or deemed to have been made by, the Purchaser, and all representations and warranties are hereby expressly disclaimed. Notwithstanding any of the foregoing, the Servicer shall continue to monitor the status of all of the Receivables transferred back to the Funding Seller pursuant to Section 5.1(a) above and all of the Aged Receivables repurchased by the Funding Seller pursuant to Section 5.1(b) above in order to determine if and when such Receivables become Written-Off Receivables and to identify and report to the Funding Seller and each of the Purchasing Entities any Recoveries thereon. 

		
	5.2
	Order of Repurchase. The Servicer shall designate the order in which Purchased Receivables (which will become Written-Off Receivables or are Aged Receivables) are to be transferred back during a Collection Period in a notice delivered to the Purchaser and the Funding Seller. The Purchaser and the Funding Seller acknowledge initial receipt of such notice. The Servicer may change such designation by means of an additional notice delivered by it to each of the Purchasing Entities.

		
	5.3
	Allocation of Write-Offs. 

		
	(a)
	On each Settlement Date until and including the Final Termination Date, the Servicer will determine, for each Batch and such Settlement Date, the Allocated Write-Off Amount related thereto, together with the Immediate Write-Off Amount and the Aged Receivables Write-Off Amount (as each of such terms is defined in Sections 5(b) and 5(c) below) related thereto.

		
	(b)
	On each Settlement Date until and including the Final Termination Date, before giving effect to Section 5.3(c) below, for each Batch, that portion of the Allocated Write-Off Amount for such Settlement Date that is not attributable to Aged Receivables that have been repurchased by the Funding Seller and paid for pursuant to Section 5.1(b) above (the amount of such portion of the Allocated Write-Off Amount is referred to herein as the “Immediate Write-Off Amount” for such Settlement Date) shall be allocated between the Funding Seller and the Purchaser as follows:

		
	(i)
	FIRST, the Funding Seller shall bear the losses associated with the Immediate Write-Off Amount for such Settlement Date by paying to the Purchaser an amount equal to the lesser of (A) the Maximum Batch Mandatory Repurchase Amount for such Settlement Date and (B) the Immediate Write-Off Amount for such Settlement Date, which amount shall be deemed to have been paid by requiring the Purchaser to reduce the Mandatory Repurchase Reserve Payment Amount for such Settlement Date (and the Maximum Batch Mandatory Repurchase Amount as contemplated in the definition of such term) by a corresponding amount, it being understood between the parties that such reduction may result in a negative Mandatory Repurchase Reserve Payment Amount;

		
	(ii)
	SECOND, until the Discount Ledger Adjusted Balance is reduced to zero, the Purchaser shall deposit to the Collection Account (for application pursuant to Section 2.7 on such date) an amount equal to the excess, if any, of the Immediate Write-Off Amount for such 

41

Settlement Date over the Maximum Batch Mandatory Repurchase Amount for such Settlement Date; and, simultaneously, the Bank Purchasing Agent shall reduce the Discount Ledger Balance by the amount of such deposit;
		
	(iii)
	THIRD, until the Level 3 Maximum Amount is reduced to zero: (A) the Funding Seller shall deposit to the Collection Account (for application pursuant to Section 2.7 on such date) an amount equal to the product of (i) 85% and (ii) the amount by which the Immediate Write-Off Amount for such Settlement Date exceeds the sum of the amount to be borne by the Funding Seller pursuant to clause FIRST above and the amount deposited by the Purchaser pursuant to clause SECOND above (the amount of such excess is referred to herein as the “Aggregate Level 3 Loss Sharing Payment Amount” for such Settlement Date); and (B) the Purchaser shall deposit to the Collection Account (for application pursuant to Section 2.7 on such date) an amount equal to the product of (i) 15% and (ii) the Aggregate Level 3 Loss Sharing Payment Amount for such Settlement Date; and (C) and, upon the making of such payments, the Level 3 Maximum Amount shall be reduced by an amount equal to the sum of the deposits made pursuant to subclauses (A) and (B) of this clause THIRD on such Settlement Date; 

		
	(iv)
	FOURTH, until the Level 3A Maximum Amount is reduced to zero: (A) the Funding Seller shall deposit to the Collection Account (for application pursuant to Section 2.7 on such date) an amount equal to the amount by which the Immediate Write-Off Amount for such Settlement Date exceeds the sum of the amount to be borne by the Funding Seller pursuant to clause FIRST above, the amount deposited by the Purchaser pursuant to clause SECOND above, the amount deposited by the Funding Seller pursuant to subclause (A) of clause THIRD above, and the amount deposited by the Purchaser pursuant to subclause (B) of clause THIRD above; and (B) upon the making of such payment, the Level 3A Maximum Amount shall be reduced by an amount equal to the sum of the deposit made pursuant to subclause (A) of this clause FOURTH on such Settlement Date; 

		
	(v)
	FIFTH, if the Immediate Write-Off Amount for such Settlement Date shall be greater than the aggregate amount of the allocations made pursuant to clauses FIRST, SECOND, THIRD and FOURTH of this Section 5.3(b) on such Settlement Date (the “Excess Level 3A Amount”), the Servicer shall deposit Collections in the Collection Account in an amount equal to the lesser of the (A) the Level 4 Reserve Amount and (B) the Excess Level 3A Amount, and the Level 4 Reserve Amount shall be reduced by the amount of such deposit on such Settlement Date; and

		
	(vi)
	SIXTH, if the Immediate Write-Off Amount for such Settlement Date shall be greater than the aggregate amount of the allocations made pursuant to clauses FIRST, SECOND, THIRD, FOURTH and FIFTH of this Section 5.3(b) on such Settlement Date, the Purchaser shall then reduce the Funded Amount by the amount of such excess.

		
	(c)
	On each Settlement Date until and including the Final Termination Date, after giving effect to Section 5.3(b) above, for each Batch, that portion of the Allocated Write-Off Amount for such Settlement Date that is attributable to Aged Receivables that have been repurchased by the Funding Seller pursuant to Section 5.1 above  (the amount of such portion of the Allocated Write-Off Amount is referred to herein as the “Aged Receivables Write-Off Amount” for such Settlement Date) shall be allocated between the Funding Seller and the Purchaser as follows:

		
	(i)
	FIRST, the Funding Seller shall bear the losses associated with the Aged Receivables Write-Off Amount up to an amount equal to the excess of (A) the Maximum Batch 

42

Mandatory Repurchase Amount for such Settlement Date over (B) the amounts deemed to have been paid by the Funding Seller on such Settlement Date pursuant to clause FIRST of Section 5.3(b) above; it being understood (for the avoidance of doubt) that no payment by the Funding Seller shall be required to give effect the allocation of Write-Offs to the Funding Seller pursuant to this clause FIRST;
		
	(ii)
	SECOND, until the Discount Ledger Adjusted Balance is reduced to zero, the Purchaser shall pay directly to the Funding Seller an amount equal to the excess, if any, of the Aged Receivables Write-Off Amount for such Settlement Date over the amount borne by the Funding Seller pursuant to clause FIRST above; and, simultaneously, the Bank Purchasing Agent shall reduce the Discount Ledger Balance by the amount of such deposit; 

		
	(iii)
	THIRD, until the Level 3 Maximum Amount is reduced to zero and taking into account any reduction of the Level 3 Maximum Amount made on such Settlement Date pursuant to clause THIRD of Section 5.3(b) above: (A) the Purchaser shall pay directly to the Funding Seller an amount equal to the product of (i) 15% and (ii) the amount by which the Aged Receivables Write-Off Amount for such Settlement Date exceeds the sum of the amount to be borne by the Funding Seller pursuant to clause FIRST above and the amount deposited by the Purchaser pursuant to clause SECOND above (such amount is referred to herein as the “Aggregate Level 3 Excess Loss Sharing Payment Amount” for such Settlement Date); and (B) the Funding Seller shall bear losses in an amount equal to the product of (i) 85% and (ii) the Aggregate Level 3 Excess Loss Sharing Payment Amount for such Settlement Date; it being understood (for the avoidance of doubt) that no payment by the Funding Seller shall be required to give effect the allocation of Write-Offs to the Funding Seller pursuant to this clause THIRD; and (C) the Level 3 Maximum Amount shall be reduced by an amount equal to the sum of the deposit  made by the Purchaser pursuant to subclause (A) and the amount of losses borne by the Funding Seller pursuant to subclause (B) of this clause THIRD; 

		
	(iv)
	FOURTH, until the Level 3A Maximum Amount is reduced to zero and taking into account any reduction of the Level 3A Maximum Amount made on such Settlement Date pursuant to clause FOURTH of Section 5.3(b) above: (A) the Funding Seller shall bear losses in an amount equal to the amount by which the Aged Receivables Write-Off Amount for such Settlement Date exceeds the sum of the amount to be borne by the Funding Seller pursuant to clause FIRST above, the amount deposited by the Purchaser pursuant to clause SECOND above, the amount deposited by the Purchaser pursuant to subclause (A) of clause THIRD above, and the amount to be borne by the Funding Seller pursuant to subclause (B) of clause THIRD above; it being understood (for the avoidance of doubt) that no payment by the Funding Seller shall be required to give effect to the allocation of Write-Offs to the Funding Seller pursuant to this clause FOURTH; and (B) the Level 3A Maximum Amount shall be reduced by an amount equal to the amount of losses borne by the Funding Seller pursuant to this clause FOURTH; 

		
	(v)
	FIFTH, until the Level 4 Reserve Amount is reduced to zero and taking into account any reduction of the Level 4 Reserve Amount made on such Settlement Date pursuant to clause FIFTH of Section 5.3(b) above, if the Aged Receivables Write-Off Amount for such Settlement Date shall be greater than the aggregate amount of the allocations made pursuant to clauses FIRST, SECOND, THIRD and FOURTH of this Section 5.3(c) on such Settlement Date (the “Excess Level 3A Excess Amount”), the Servicer shall deposit Collections in the Collection Account in an amount equal to the lesser of the (A) the Level 

43

4 Reserve Amount and (B) the Excess Level 3A Excess Amount, and the Level 4 Reserve Amount shall be reduced by the amount of such deposit on such Settlement Date; and
		
	(vi)
	SIXTH, the Purchaser shall pay directly to the Funding Seller an amount equal to the excess, if any, of the Aged Receivables Write-Off Amount for such Settlement Date over the aggregate amount of the allocations made pursuant to clauses FIRST, SECOND, THIRD, FOURTH and FIFTH of this Section 5.3(c) on such Settlement Date.

		
	5.4
	Allocation of Recoveries. On each Settlement Date until and including the Final Termination Date, Recoveries for the prior Collection Period shall be paid or allocated by the Funding Seller or by the Servicer on behalf of the Funding Seller in accordance with the following order of priority:

		
	(i)
	FIRST, to the Purchaser, up to the aggregate of the amounts, if any, allocated to the Purchaser pursuant to Section 5.3(b)(vi) above and/or payable by the Purchaser to the Funding Seller pursuant to Sections 5.3(c)(vi) above with respect to any Batch on all prior Settlement Dates;

		
	(ii)
	SECOND, to the Funding Seller, up to the aggregate of the amounts deposited by the Servicer in the Collection Account pursuant to Section 5.3(b)(v) and/or Section 5.3(c)(v);

		
	(iii)
	THIRD, to the Funding Seller, up to the aggregate of the amounts, if any, payable by the Funding Seller pursuant to Sections 5.3(b)(iv) and 5.3(c)(iv) with respect to any Batch on such Settlement Date and all prior Settlement Dates, whereupon the Level 3A Maximum Amount shall be increased by the aggregate amount so paid to the Funding Seller;

		
	(iv)
	FOURTH, ratably and pari passu, (A) 85% to the Funding Seller and (B) 15% to the Purchaser up to the aggregate of the amounts, if any, payable by the Funding Seller and the Purchaser pursuant to Sections 5.3(b)(iii) and 5.3(c)(iii) with respect to any Batch on such Settlement Date and all prior Settlement Dates, whereupon the Level 3 Maximum Amount shall be increased by the aggregate amount so paid to the Purchaser and the Funding Seller;

		
	(v)
	FIFTH, to the Purchaser, up to the aggregate of (A) the amounts, if any, by which the Discount Ledger Balance was required to be reduced pursuant to Section 5.3(b)(ii) and (B) the amounts, if any, payable by the Purchaser to the Funding Seller pursuant to Section 5.3(c)(ii), if any, with respect to any Batch on such Settlement Date and all prior Settlement Dates, whereupon the Bank Purchasing Agent shall be obligated to increase the Discount Ledger Balance by the amount so paid to the Purchaser); and

		
	(vi)
	FINALLY, to pay any remainder to the Funding Seller.

		
	5.5
	Revision of Allocation Levels. 

		
	(a)
	In the event that the Discount Ledger Balance exceeds 2.00% of the Maximum Sales Amount on any Settlement Date (after giving effect to any adjustments to the Discount Ledger Balance on such Settlement Date), upon notice by the Funding Seller to the Bank Purchasing Agent and the Bank Purchasers on such Settlement Date, the Discount Rate shall be decreased to a percentage determined by the Funding Seller, but not less than 0.00%, to reflect such change in credit quality, and the Level 4 Reserve Percentage shall be increased by 1.25 times the reduction in the Discount Rate. Such adjustment shall be prospective in nature and shall only apply to succeeding Collection Periods after the adjustment is made. The notice described in this Section 5.5(a) may be issued more than once.

44

		
	(b)
	If the Discount Ledger Balance is less than 1.75% of the Maximum Sales Amount on any Settlement Date (after giving effect to any adjustments to the Discount Ledger Balance on such Settlement Date), upon notice by the Funding Seller to the Bank Purchasing Agent and the Bank Purchasers on such Settlement Date, the Discount Rate shall be increased to a percentage determined by the Funding Seller, and the Level 4 Reserve Percentage shall be decreased by an amount equal to 1.25 multiplied by such increase in the Discount Rate; provided that the Level 4 Reserve Percentage for any Settlement Date and any Batch shall not be less than the numerical percentage prescribed by the definition of the term “Level 4 Reserve Percentage” for such Settlement Date and such Batch without giving effect to any increase or decrease to such percentage that may have been effected pursuant to this Section 5.5. Such adjustment shall be prospective in nature and shall only apply to succeeding Collection Periods after the adjustment is made.

		
	(c)
	The Funding Seller may, no more frequently than twice per calendar year, submit a written request to the Co-Agents, requesting a change in the Discount Rate, the Maximum Mandatory Repurchase Percentage, the Level 3 Maximum Amount, the Level 3A Maximum Amount or the Level 4 Reserve Percentage, or any combination thereof, in order to adjust for changes in the credit quality of the Purchased Receivables and the history and magnitude of write-offs made with respect thereto; provided, however, that (A) any such changes shall be effective as of the first day of a Collection Period and shall be prospective only, and (B) no such changes shall cause the total credit support available to cover losses in accordance with Sections 5.3(b)(i)-(v) and 5.3(c)(i)-(v) (without taking into account the Discount Ledger Balance) to be less protective than such total credit support immediately prior to giving effect to the requested changes, (C) as a condition to any increase in the Level 3 Maximum Amount to an amount in excess of $50,000,000, the Funding Seller shall provide collateral in an amount no less than 85% of such excess in form and substance, and subject to documentation in form and substance, satisfactory to the Bank Purchasing Agent, in order to secure the Funding Seller’s obligations under Sections 5.6(a)(i) and 5.6(a)(iii), and (D) as a condition to any increase in the Level 3A Maximum Amount to an amount in excess of $40,000,000, the Funding Seller shall provide collateral in an amount no less than 100% of such excess in form and substance, and subject to documentation in form and substance, satisfactory to the Bank Purchasing Agent, in order to secure the Funding Seller’s obligations under Sections 5.6(a)(ii) and 5.6(a)(iii). Any such requested change shall be accepted or rejected by the Co-Agents within five Business Days following the Reporting Date that next follows the receipt of such request. The Co-Agents shall be obligated to agree, in good faith, to accept or reject each written request submitted to them pursuant to this Section 5.5(c) within such five-Business Day period; it being agreed and understood that, if agreement is not achieved within such period, then such requested change shall be deemed to have been rejected. For the avoidance of doubt, the prospective changes to the Discount Rate and Level 4 Reserve Percentage that may occur pursuant to Sections 5.5(a) and 5.5(b) shall not constitute or trigger changes to such rates pursuant to this Section 5.5(c).

		
	5.6
	KfW Guarantees. 

		
	(a)
	The parties hereto acknowledge and agree that the Bank Purchasing Agent shall be entitled to make a demand on behalf of the Bank Purchasers under the KfW Guarantees under the following circumstances and in the following amounts.

		
	(i)
	If, on any Settlement Date, the Funding Seller fails to make all or any portion of the deposit to the Collection Account that was required to be made by it pursuant to Section 5.3(b)(iii), then, on or after such Settlement Date, the Bank Purchasing Agent shall be permitted to make a draw under the KfW Second Amended and Restated Level 3 

45

Guarantee, to the extent that there shall be availability thereunder, in an amount equal to the amount that the Funding Seller shall have failed to so deposit to the Collection Account.
		
	(ii)
	If, on any Settlement Date, the Funding Seller fails to make all or any portion of the deposit to the Collection Account that was required to be made by it pursuant to Section 5.3(b)(iv), then, on or after such Settlement Date, the Bank Purchasing Agent shall be permitted to make a draw under the KfW First Amended and Restated Level 3A Guarantee, to the extent that there shall be availability thereunder, in an amount equal to the amount that the Funding Seller shall have failed to so deposit to the Collection Account. 

		
	(iii)
	If, on any Settlement Date, (I) the Servicer shall fail to deposit any of the Collections into the Collection Account, as required under this Agreement, and such Collections shall have been commingled with other funds of the Servicer or any other member of the T-Mobile Group and (II) as a direct result of such failure and commingling, such Collections are not readily identifiable and any of the Bank Purchasers suffers a loss (any such loss is referred to herein as a “Commingling Loss”), then, on or after such Settlement Date:

		
	(A)
	the Bank Purchasing Agent shall be permitted to make a draw under one or both of the KfW Guarantees (in accordance with subparagraph (B) below) in an amount equal to the excess of:

		
	(x) 
	the sum of the amounts that the Funding Seller would have been required to deposit to the Collection Account pursuant to Sections 5.3(b)(iii) and 5.3(b)(iv) if the Commingling Loss for such Settlement Date had been added to and included in the determination of the Immediate Write-Off Amount for such Settlement Date; over

		
	(y) 
	the sum of the amounts that the Funding Seller was actually required to deposit to the Collection Account pursuant to Sections 5.3(b)(iii) and 5.3(b)(iv) on such Settlement Date; and

		
	(B)
	unless otherwise directed by the Bank Purchasing Agent, such draw shall be made, first, under the KfW First Amended and Restated Level 3A Guarantee to the extent that there shall be availability thereunder and, second, under the KfW Second Amended and Restated Level 3 Guarantee to the extent that there shall be availability thereunder.

For the avoidance of doubt, a draw permitted to be made under any of the foregoing clauses (i) through (iii) shall be in addition to, and shall not be an alternative to, a draw permitted to be made under any other such clause.
		
	(b)
	The Bank Purchasing Agent shall specify in the related demand notice provided to KfW under the applicable KfW Guarantee the amount of the proceeds thereof that shall be due to each Bank Purchaser and shall provide a copy of such demand notice to the Purchaser.

The provisions of this Section 5.6 shall not be construed to limit in any way the provisions of the KfW Guarantees themselves.

46

		
	6.
	Representations and Warranties of the Funding Seller and the Performance Guarantor

		
	6.1
	The Funding Seller. The Funding Seller hereby represents and warrants to each of the Purchasing Entities that, as of the date hereof and each Purchase Date:

		
	(a)
	the Funding Seller (i) is a limited liability company, duly organized solely, validly existing and in good standing under the laws of the State of Delaware, (ii) is duly qualified to do business and (iii) has all corporate or other organizational power and all licenses, authorizations, consents, approvals and qualifications, of and from all third parties required to execute and deliver and perform its obligations under the Transaction Documents to which it is a party and to carry on its business in each jurisdiction in which its business is now conducted;

		
	(b)
	the execution, delivery and performance by the Funding Seller of this Agreement and any other Transaction Document to which it is a party, including the Funding Seller’s sales hereunder of Receivables and the Funding Seller’s use of the proceeds thereof (i) are within the Funding Seller’s corporate and other organizational powers, (ii) have been duly authorized by all necessary corporate and other organizational action, (iii) do not, with respect to execution and delivery, and will not, with respect to the performance of its obligations, contravene or constitute a default under (A) the Funding Seller’s organic documents, (B) any applicable law, (C) any contractual restriction binding on or affecting the Funding Seller or its property or (D) any order, writ, judgment, award, injunction or decree binding on or affecting the Funding Seller or its property and (iv) do not, with respect to execution and delivery, and will not, with respect to the performance of its obligations, result in or require the creation or imposition of any Adverse Claim (other than any Adverse Claim arising under any Transaction Document) upon or with respect to any of its properties;

		
	(c)
	each Transaction Document to which the Funding Seller is a party has been duly executed and delivered by the Funding Seller;

		
	(d)
	no authorization, approval, license, consent, qualification or other action by, and no notice to or filing or registration with, any governmental body or agency or official thereof or any third party is required for the due execution, delivery and performance by the Funding Seller of this Agreement or any other Transaction Document to which the Funding Seller is a party or any other document to be delivered by the Funding Seller hereunder or thereunder, all of which have been duly made or taken, as the case may be, and are in full force and effect;

		
	(e)
	each Transaction Document to which the Funding Seller is a party constitutes the legal, valid and binding obligations of the Funding Seller enforceable against the Funding Seller in accordance with its terms, subject to any limitation on the enforceability thereof against the Funding Seller arising from the application of any applicable bankruptcy law or by general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law);

		
	(f)
	(i) there are no actions, suits, investigations by any governmental body or agency, litigation or proceedings at law or in equity or by or before any governmental body or agency or in arbitration now pending, or credibly threatened, against or affecting the Funding Seller or any of its businesses, properties or revenues; and (ii) the Funding Seller is not in default or violation of any order, judgment or decree of any governmental body or agency or arbitrator;

		
	(g)
	no event has occurred and is continuing, or would result from any purchase by the Purchaser of Receivables from the Funding Seller or the application of the proceeds therefrom, which constitutes a Bankruptcy Event;

47

		
	(h)
	no proceeds of any purchase by the Purchaser of Purchased Receivables from the Funding Seller pursuant to this Agreement will be used to purchase or carry, or to extend credit to others for the purpose of purchasing or carrying, “margin stock” within the meaning of Regulation T, U or X promulgated by the Board of Governors of the Federal Reserve System from time to time;

		
	(i)
	the Funding Seller (i) is not overdue in the filing of any income tax returns or any other tax returns required to be filed; (ii) has made adequate provision for the payment of all income taxes and all other taxes, assessments and other government charges; and (iii) is wholly-owned (or so treated for U.S. federal tax purposes) by one member of the consolidated tax group of which TMUS is the common parent and has not made, and will not make, an election to be treated as an association taxable as a corporation for U.S. federal tax purposes;

		
	(j)
	the Funding Seller has not changed its name or legal structure in the four months immediately preceding the Closing Date and is not known by and does not use any trade name or doing-business-as name;

		
	(k)
	the Funding Seller is not an “investment company” under, and as defined in, the Investment Company Act of 1940, as amended;

		
	(l)
	(i) no purchase by the Purchaser of Purchased Receivables from the Funding Seller pursuant to this Agreement has been made for or on account of an antecedent debt owed by the Funding Seller to the Purchaser and no such purchase is or may be voidable or subject to avoidance under any section of any applicable bankruptcy law or by general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law) and (ii) the sale of Purchased Receivables by the Funding Seller to the Purchaser pursuant to this Agreement, and all other transactions between the Funding Seller and the Purchaser, have been and will be made in good faith and without intent to hinder, delay or defraud creditors of the Funding Seller or any other member of the T-Mobile Group;

		
	(m)
	the Funding Seller has not breached any laws applicable to it or its business or property;

		
	(n)
	the Funding Seller is not required to account to any governmental body or agency for any value added or other similar tax in respect of the assignment by the Funding Seller of any Purchased Receivable and no withholding or other tax is deductible or payable on any payment made by any Obligor with respect to any Purchased Receivable;

		
	(o)
	the Funding Seller is exclusively resident for tax purposes in the United States and, for the purposes of this Agreement and the other Transaction Documents to which it is a party, will not act through any branch or permanent establishment located outside of the United States;

		
	(p)
	the Funding Seller is not required to make any deduction for or on account of taxes from any payment made by it under a Transaction Document;

		
	(q)
	duly completed and sufficient UCC financing statements covering all Receivables and Related Rights sold by the Funding Seller to the Purchaser hereunder have been filed (A) with the Secretary of State of Delaware, naming the Funding Seller as debtor, the Purchaser as secured party, and the Co- Agents as the assignees of the secured party, and (B) with respect to each Originator, with the Secretary of State of the state in which such Originator is organized or otherwise “located” for purposes of the UCC, naming such Originator as debtor, the Initial Purchaser as secured party, and the Funding Seller as the assignee of the secured party, and (C) with respect to each Originator, with the Secretary of State of the state in which such Originator is organized or otherwise “located” 

48

for purposes of the UCC, assigning each UCC financing statement described in the foregoing clause (B) to the Purchaser as the assignee of the Funding Seller, in each case as may be necessary under the UCC in order to perfect the Bank Collections Agent’s interest in the Purchased Receivables;
		
	(r)
	the Funding Seller is not an employee benefit plan that is subject to Title I of ERISA or Section 4975 of the Code or a “benefit plan investor” as defined in Section 3(42) of ERISA and the Funding Seller shall not use the assets of an employee benefit plan that is subject to Title I of ERISA or Section 4975 of the Code or any “benefit plan investor” as defined in Section 3(42) of ERISA to discharge any of its obligations under this Agreement or the Contribution Agreement;

		
	(s)
	upon each purchase of Purchased Receivables hereunder, the Purchaser shall acquire (i) a valid and perfected ownership interest in each such Purchased Receivable and all identifiable cash proceeds thereof and (ii) a valid ownership interest in all Related Rights with respect thereto;

		
	(t)
	no effective financing statement or other instrument similar in effect covering any Contract or any Purchased Receivable or the Related Rights or Collections with respect thereto is on file in any recording office, except those filed in favor of the Co-Agents relating to this Agreement and the other Transaction Documents;

		
	(u)
	each Monthly Report (if prepared by the Funding Seller, or to the extent that information contained therein is supplied by the Funding Seller), information, exhibit, financial statement, document, book, record or report furnished at any time by or on behalf of the Funding Seller to the Purchaser in connection with this Agreement is true, complete and accurate in all material respects as of its date or as of the date so furnished, and, as of such date, no such document contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained therein, in the light of the circumstances under which they were made, not misleading;

		
	(v)
	the principal place of business and chief executive office of the Funding Seller and the office where the Funding Seller keeps its records concerning the Purchased Receivables are located at the address or addresses in Annex 1 hereto;

		
	(w)
	the name and address of the Collection Account Bank, together with the account number of the Collection Account, are specified in the Master Receivables Purchase Agreement Side Letter;

		
	(x)
	the Funding Seller was formed on November 8, 2013 and the Funding Seller did not engage in any business activities prior to the Closing Date; the Funding Seller has no Subsidiaries; and

		
	(y)
	no event has occurred and is continuing that constitutes a Termination Event.

		
	6.2
	The Performance Guarantor. The Performance Guarantor hereby represents and warrants to each of the Purchasing Entities that, as of the date hereof and each Purchase Date:

		
	(a)
	the Performance Guarantor (i) is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware, (ii) is duly qualified to do business and (iii) has all corporate or other organizational power and all licenses, authorizations, consents, approvals and qualifications, of and from all third parties required to execute and deliver and perform its obligations under the Transaction Documents to which it is a party and to carry on its business in each jurisdiction in which its business is now conducted except where the failure to so qualify 

49

could not be expected to have a material adverse effect on the Performance Guarantor’s ability to perform its duties or obligations under the Transaction Documents;
		
	(b)
	the execution, delivery and performance by the Performance Guarantor of this Agreement and any other Transaction Document to which it is a party, (i) are within the Performance Guarantor’s corporate powers, (ii) have been duly authorized by all necessary corporate action, (iii) do not, with respect to execution and delivery, and will not, with respect to the performance of its obligations, contravene or constitute a default under (A) the Performance Guarantor’s organic documents, (B) any applicable law, (C) any contractual restriction binding on or affecting the Performance Guarantor or its property or (D) any order, writ, judgment, award, injunction or decree binding on or affecting the Servicer or its property;

		
	(c)
	each Transaction Document to which the Performance Guarantor is a party has been duly executed and delivered by the Performance Guarantor;

		
	(d)
	no authorization, approval, license, consent, qualification or other action by, and no notice to or filing or registration with, any governmental body or agency or official thereof or any third party is required for the due execution, delivery and performance by the Performance Guarantor of this Agreement or any other Transaction Document to which the Performance Guarantor is a party or any other document to be delivered by the Performance Guarantor hereunder or thereunder, all of which have been duly made or taken, as the case may be, and are in full force and effect;

		
	(e)
	each Transaction Document to which the Performance Guarantor is a party constitutes the legal, valid and binding obligations of the Performance Guarantor enforceable against the Performance Guarantor in accordance with its terms, subject to any limitation on the enforceability thereof against the Performance Guarantor arising from the application of any applicable bankruptcy law or by general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law);

		
	(f)
	no Bankruptcy Event has occurred with respect to the Performance Guarantor; and

		
	(g)
	each of the Originators is a direct or indirect, wholly owned subsidiary of the Performance Guarantor and is duly organized and validly existing under the laws of the state specified as its jurisdiction of organization in Annex 4.

		
	6.3
	The Receivables. The Funding Seller hereby represents, warrants and covenants to each of the Purchasing Entities as of each Purchase Date with respect to each Receivable purchased or purported to be purchased on such date (including each Receivable originated by the January 2015 Originator and sold or purported to be sold to the Purchaser on such date), that:

		
	(a)
	such Receivable is a validly existing Eligible Receivable and each Contract with respect to such Receivable is effective to create, and has created, a legal, valid and binding obligation of the related Obligor to pay the Outstanding Balance of the Receivable created thereunder and any accrued interest thereon, enforceable against the Obligor in accordance with its terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization or other similar laws relating to or limiting creditors’ rights generally and by general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law);

		
	(b)
	the Funding Seller has sole legal, good and marketable, and beneficial title to such Receivable;

50

		
	(c)
	the Funding Seller has not entered into any agreements that would impair the rights of the Purchaser in, or altered any of the material terms (including the maturity or Due Date) of, such Receivable;

		
	(d)
	the Funding Seller has not previously sold, transferred or otherwise disposed of such Receivable to, or in favor of, any Person other than the Purchaser;

		
	(e)
	the sale of such Receivable, together with any and all Related Rights, to the Purchaser pursuant to this Agreement constitutes a valid sale, transfer and assignment of all of the Funding Seller’s right, title and interest in, to and under such Receivable and Related Rights to the Purchaser that is perfected and of first priority under the UCC and otherwise, enforceable against creditors of, and subsequent purchasers from, the Funding Seller and free and clear of any Adverse Claim (other than any Adverse Claim arising under any Transaction Document); such sale, transfer and assignment is made for “reasonably equivalent value” (as such term is used in Section 548 of the Bankruptcy Code) and not for, or on account of, “antecedent debt” (as such term is used in Section 547 of the Bankruptcy Code); and without limiting any of the foregoing, such sale, transfer and assignment (i) is not voidable or subject to avoidance under applicable law and (ii) is made in good faith without the intent to defraud any creditors of the Funding Seller or any Originator;

		
	(f)
	the Funding Seller (i) shall have received such Receivable as a contribution of capital by the Initial Purchaser or (ii) shall have purchased such Receivable from the Initial Purchaser in exchange for payment (made by the Funding Seller to the Initial Purchaser in accordance with the provisions of the Contribution Agreement) of cash or a deferred purchase price in an amount that constitutes fair consideration and reasonably equivalent value. Each such sale referred to in clause (ii) of the preceding sentence shall not have been made for or on account of an antecedent Debt owed by the Originators or the Initial Purchaser to the Funding Seller and no such sale is voidable or subject to avoidance under any section of the Bankruptcy Code; and

		
	(g)
	no event would result from a purchase in respect of such Receivable or from the application of the proceeds therefrom that constitutes a Termination Event. 

		
	6.4
	Liability. The Funding Seller shall be liable for the accuracy of the foregoing representations and warranties regardless of whether any Purchasing Entity actually was aware or could have been aware of the respective facts and circumstances at the time of purchase. 

		
	7.
	Certain Covenants of the Funding Seller, the Servicer, the Performance Guarantor, the Bank Purchasing Agent and the Purchaser

		
	7.1
	Until the Final Termination Date:

		
	(a)
	The Funding Seller and the Performance Guarantor will comply in all material respects with all applicable laws, rules, regulations and orders and preserve and maintain its existence, rights, franchises, qualifications, and privileges except to the extent that the failure so to comply with such laws, rules and regulations or the failure so to preserve and maintain such existence, rights, franchises, qualifications and privileges would not materially adversely affect the collectibility of the Purchased Receivables or the ability of the Funding Seller or the Performance Guarantor to perform its obligations under the Transaction Documents.

		
	(b)
	The Funding Seller will keep its principal place of business and chief executive office and the office where it keeps its records concerning the Purchased Receivables (and all original documents relating thereto) at the address of the Funding Seller set forth in Annex 1 or, upon 30 days’ prior 

51

written notice to the Purchaser and the Bank Collections Agent, at any other locations in jurisdictions where all actions reasonably requested by the Bank Collections Agent to protect and perfect the interest in the Purchased Receivables and the Related Rights with respect thereto have been taken and completed. The Servicer also will maintain and implement administrative and operating procedures (including, without limitation, an ability to recreate records evidencing the Purchased Receivables and related Contracts in the event of the destruction of the originals thereof), and keep and maintain all documents, books, records and other information reasonably necessary or advisable for the collection of all Purchased Receivables (including, without limitation, records adequate to permit the daily identification of each Purchased Receivable and all Collections of and adjustments to each existing Purchased Receivable). 
		
	(c)
	The Funding Seller will require, at its expense, that each Originator will timely and fully perform and comply with all material provisions, covenants and other promises required to be observed by it under the Contracts related to the Purchased Receivables, and timely and fully comply in all material respects with the Credit and Collection Policy in regard to each Purchased Receivable and the related Contract.

		
	(d)
	The Funding Seller will not sell, assign (by operation of law or otherwise) or otherwise dispose of, or create or suffer to exist any Adverse Claim upon or with respect to, any Purchased Receivable or Related Rights, or upon or with respect to the Collection Account, or assign any right to receive income in respect thereof, except to the extent arising under any Transaction Document.

		
	(e)
	Neither the Funding Seller nor the Servicer nor any of their respective Affiliates (which shall include the Originators) shall be permitted to grant to any Person other than the Purchaser and the Bank Collections Agent a security interest (as such term is defined in the UCC) in (i) any Collections (A) before they are deposited to the Collection Account or distributed to the Funding Seller pursuant to Section 2.6 or (B) after they are deposited to the Collection Account pursuant to Section 2.6 or (ii) the Collection Account itself.

		
	(f)
	Except as provided in Section 3.2(b), the Funding Seller and the Servicer will not (i) extend the maturity or adjust the Outstanding Balance or otherwise modify the terms of any Purchased Receivable in a manner that would result in the Dilution of such Purchased Receivable or that would otherwise prevent such Purchased Receivable from being an Eligible Receivable unless, in each case, the Funding Seller shall have been deemed to have received a Collection in respect of such Purchased Receivable, or (ii) amend, modify or waive in any material respect any term or condition relating to payments under or enforcement of any Contract related thereto.

		
	(g)
	None of the Funding Seller, the Servicer or the Performance Guarantor will make or permit any change in the character of its business that would, in either case, materially adversely affect the collectibility of the Purchased Receivables or the ability of the Funding Seller, the Servicer, or the Performance Guarantor to perform its obligations under this Agreement.

		
	(h)
	The Servicer will, or will cause the Originators to, instruct all Obligors to make payments with respect to the Purchased Receivables to a Payment Account and will not make or permit any change in the instructions to Obligors regarding payments to be made to a Payment Account, other than a change related solely to instructions to Obligors to pay to a new Payment Account which has been identified in writing to each of the Purchasing Entities.

		
	(i)
	The Funding Seller will not terminate or cause or permit the termination of the bank as the Collection Account Bank that is listed in the Master Receivables Purchase Agreement Side Letter or terminate the Account Control Agreement. The Funding Seller will not permit any provision of the Account Control Agreement to be changed, amended, modified or waived without the prior written consent of the Bank Collections Agent.

52

		
	(j)
	At its expense, the Servicer will mark its, and the Funding Seller’s, master data processing records evidencing Purchased Receivables and related Contracts with a legend evidencing that such Purchased Receivables and related Contracts have been sold in accordance with this Agreement.

		
	(k)
	The Performance Guarantor will provide to each Purchasing Entity the following:

		
	(A)
	as soon as available and in any event within 45 days after the end of the first three quarters of each fiscal year of the Performance Guarantor, balance sheets of the Performance Guarantor, and its Subsidiaries as of the end of such quarter and statements of income and retained earnings of the Performance Guarantor, and its Subsidiaries for the period commencing at the end of the previous fiscal year and ending with the end of such quarter, certified by the chief financial officer of the Performance Guarantor;

		
	(B)
	as soon as available and in any event within 90 days after the end of each fiscal year of the Performance Guarantor, a copy of the annual report for such year for the Performance Guarantor and its Subsidiaries, containing financial statements for such year audited by PriceWaterhouse Coopers LLP or other independent public accountants of recognized national standing;

		
	(C)
	at least ten (10) Business Days prior to any change in the name of an Originator or the Funding Seller, a notice setting forth the new name and the effective date thereof and UCC-3 amendments to all then existing UCC-1 financing statements filed in connection with the Transaction Documents;

		
	(D)
	no later than 2 Business Days after the Funding Seller or the Performance Guarantor has knowledge thereof notice of any Termination Event or any material breach of any representation, warranty or covenant under any other Transaction Document; 

		
	(E)
	as soon as possible and in any event no later than the day of occurrence thereof, notice that any Originator or the Initial Purchaser has ceased selling or contributing (as the case may be) Receivables as required pursuant to the Conveyancing Agreement or the Contribution Agreement, respectively;

		
	(F)
	at the time of the delivery of the financial statements provided for in clauses (A) and (B) above, a certificate of the chief financial officer or the treasurer of the Funding Seller or the Performance Guarantor (x) setting forth in reasonable detail the calculation of the Consolidated Equity Ratio and the Consolidated Leverage Ratio for the period then ended, and (y) certifying, to the best of such officer’s knowledge, that no Termination Event has occurred and is continuing or, if any Termination Event has occurred and is continuing, specifying the nature and extent thereof; and

		
	(G)
	promptly after receipt thereof, copies of all consents requested from the Funding Seller by, and all notices or other documents received by the Funding Seller from, any Originator under the Conveyancing Agreement; and

		
	(H)
	promptly after request therefore, such other information, documents, records or reports respecting the condition or operations, financial or otherwise, of the Performance Guarantor as the Bank Purchasing Agent or the Bank Collections Agent may from time to 

53

time reasonably request, provided that information relating to specific Receivables shall be limited to the T-Mobile Information.
The reporting requirements specified above may be satisfied by filing with the Securities and Exchange Commission through the EDGAR electronic filing system.
		
	(l)
	None of the Funding Seller, the Servicer, the Performance Guarantor or any of their respective Affiliates shall exercise any option (if any) available to it under German law to have value added tax apply with respect to any supply, for German value added tax purposes, rendered in connection with the sale of the Receivables contemplated by the Transaction Documents, provided that any party having such an option right shall be required to exercise such option if the Bank Purchasing Agent shall so request in writing.

		
	(m)
	

		
	(i)
	From the date hereof, T-Mobile PCS Holdings undertakes for the benefit of each of the Affect Parties to retain on an on-going basis a material net economic interest in accordance with Article 405 (1) sub-paragraph (c) of Regulation (EU) No. 575/2013 (the “CRR”) and the technical standards relating thereto in full force and effect as of the date of this Agreement. On each Business Day after the date hereof, such interest shall, in accordance with such sub-paragraph (c), be comprised of an interest in Receivables randomly selected from, and having an aggregate Nominal Value of no less than 5% of the aggregate Nominal Values of, all of the Purchased Receivables sold by the Originators to T-Mobile PCS Holdings on such Business Day. T-Mobile PCS Holdings shall not, and shall not permit any Affiliate, to enter into any credit risk mitigation, short positions or any other hedge with respect to the retained interest, except to the extent permitted under the CRR.

		
	(ii)
	In each Monthly Report to be delivered pursuant to this Agreement, T-Mobile PCS Holdings shall confirm whether T-Mobile PCS Holdings is in compliance with clause (i) above, which confirmation shall be deemed satisfied by delivery of each Monthly Report containing such confirmation. 

		
	(iii)
	T-Mobile PCS Holdings shall cooperate with each Affected Party, as applicable, by providing information or documents reasonably requested by such Affected Party in order to allow such Affected Party to conduct its due diligence required under the CRR so that such Affected Party shall be able to demonstrate to the competent authorities (who have jurisdictional authority over such Affected Party) that such Affected Party has performed its due diligence and monitoring obligations (to the extent applicable) under the CRR; provided that (1) any information provided by T-Mobile PCS Holdings shall be subject to the confidentiality provisions set forth in Article 12 hereof and (2) any such information relating to the Receivables or the related Obligors shall be limited to the T-Mobile Information.

		
	(iv)
	In the event of a breach of clause (i), (ii) or (iii) above by T-Mobile PCS Holdings, the only remedy available for an Affected Party shall be that, to the extent that such breach resulted in an additional risk-weighted capital charge (“CRR Cost”) imposed on such Affected Party, such CRR Cost shall be treated as an Increased Cost for such Affected Party and shall be payable as an Increased Cost in accordance with the terms of Section 4.4. The parties hereto acknowledge and agree that in no event shall a breach of clause (i), (ii) or (iii) above by T-Mobile PCS Holdings result in a Termination Event.

		
	7.2
	Non-Consolidation and Separateness Covenants. Until the Final Termination Date:

54

		
	(a)
	(i) The Funding Seller shall at all times maintain at least one independent director who (w) is not currently and has not been during the five years preceding the date of this Agreement an officer, director or employee of, or a major vendor or supplier of services to, an Affiliate of the Funding Seller or any Other Corporation, (x) is not a current or former officer or employee of the Funding Seller or any Other Corporation, (y) is not a stockholder of any Other Corporation or any of their respective Affiliates, and (z) is an employee of a company the business of which is to provide directors with respect to special purpose entities.

		
	(b)
	The Funding Seller shall not direct or participate in the management of any of the Other Corporations’ operations.

		
	(c)
	The Funding Seller shall conduct its business from an office separate from that of the Other Corporations (but which may be located in the same facility as one or more of the Other Corporations). The Funding Seller shall have stationery and other business forms and a mailing address and a telephone number separate from that of the Other Corporations.

		
	(d)
	The Funding Seller shall at all times be adequately capitalized in light of its contemplated business.

		
	(e)
	The Funding Seller shall at all times provide for its own operating expenses and liabilities from its own funds.

		
	(f)
	The Funding Seller shall maintain its assets and transactions separately from those of the Other Corporations and reflect such assets and transactions in financial statements separate and distinct from those of the Other Corporations and evidence such assets and transactions by appropriate entries in books and records separate and distinct from those of the Other Corporations. The Funding Seller shall hold itself out to the public under the Funding Seller’s own name as a legal entity separate and distinct from the Other Corporations. The Funding Seller shall not hold itself out as having agreed to pay, or as being liable, primarily or secondarily, for, any obligations of the Other Corporations.

		
	(g)
	The Funding Seller shall not maintain any joint account with any Other Corporation or become liable as a guarantor or otherwise with respect to any Debt or contractual obligation of any Other Corporation.

		
	(h)
	The Funding Seller shall not make any payment or distribution of assets with respect to any obligation of any Other Corporation or grant an Adverse Claim on any of its assets to secure any obligation of any Other Corporation.

		
	(i)
	The Funding Seller shall not make loans, advances or otherwise extend credit to any of the Other Corporations.

		
	(j)
	The Funding Seller shall hold regular duly noticed meetings of its managers and make and retain minutes of such meetings.

		
	(k)
	The Funding Seller shall have bills of sale (or similar instruments of assignment) and, if appropriate, UCC-1 financing statements, with respect to all assets purchased from any of the Other Corporations.

		
	(l)
	The Funding Seller shall not engage in any transaction with any of the Other Corporations, except as permitted by this Agreement and the Contribution Agreement.

55

		
	(m)
	The Funding Seller shall not, and shall not permit the Initial Purchaser to, amend, waive or modify any provision of any of the Transaction Documents without the prior written consent of the Bank Purchasing Agent. The Funding Seller will perform all of its obligations under the Transaction Documents in all material respects and will enforce the Transaction Documents in accordance with their terms in all material respects.

		
	(n)
	The Funding Seller shall not engage in any business other than the purchase of Receivables and Related Rights from the Originators and the transactions contemplated by this Agreement. The Funding Seller will not create or form any Subsidiary.

		
	(o)
	The Funding Seller shall not merge with or into or consolidate (other than for accounting purposes) with or into, or convey, transfer, lease or otherwise dispose of (whether in one transaction or in a series of transactions), all or substantially all of its assets (whether now owned or hereafter acquired) to, or acquire all or substantially all of the assets or capital stock or other ownership interest of, or enter into any joint venture or partnership agreement with, any Person.

		
	(p)
	The Funding Seller shall not declare or make any dividend payment or other distribution of assets, properties, cash, rights, obligations or securities on account of any shares of any class of capital stock of the Funding Seller, or return any capital to its shareholders as such, or purchase, retire, defease, redeem or otherwise acquire for value or make any payment in respect of any shares of any class of capital stock of the Funding Seller or any warrants, rights or options to acquire any such shares, now or hereafter outstanding; provided, however, that the Funding Seller may declare and pay cash dividends on its capital stock to its shareholders so long as (i) no Termination Event shall then exist or would occur as a result thereof, (ii) such dividends are in compliance with all applicable law including the corporate law of the state of the Funding Seller’s formation, and (iii) such dividends have been approved by all necessary and appropriate corporate action of the Funding Seller.

		
	(q)
	The Funding Seller shall not incur any Debt, other than any Debt incurred pursuant to the Transaction Documents.

		
	(r)
	The Funding Seller will not amend its limited liability company agreement without the prior written consent of the Bank Purchasing Agent.

		
	7.3
	If, at any time prior to the Final Termination Date, the Purchaser determines that it may be required to take any discretionary action or to refrain from taking any discretionary action , then (A) the Purchaser may (but shall not be obligated to) consult with the Bank Purchasing Agent’s New York Branch regarding the Purchaser’s exercise of such discretion, and (B) upon the receipt of any related advice from the Bank Purchasing Agent’s New York Branch (which the Bank Purchasing Agent’s New York Branch may (but shall not be obligated) to provide to the Purchaser), the Purchaser may (but shall not be obligated to) act in accordance with such advice; provided, however, it is also hereby agreed and understood that, if the Purchaser shall seek any consultation contemplated by this Section 7.3, (i) the Purchaser shall not be permitted to, and shall not, consult with any office or personnel of the Bank Purchasing Agent or any other Person located in Germany or otherwise outside of the United States of America, and (ii) without limiting the foregoing, in connection therewith, the Bank Purchasing Agent agrees that its offices and personnel located in Germany will not provide any advice or instruction to the Purchaser even if the Purchaser shall seek to consult or engage in any other similar form of discourse directly with any of such offices or personnel. For the avoidance of doubt, and notwithstanding any of the foregoing, nothing contained in this Section 7.3 is intended, or shall be construed, to limit or otherwise apply to the ability of the Bank Purchasing Agent or any Bank Purchaser to exercise any right granted to it, or to perform any obligation of 

56

it, under any other Transaction Document or otherwise, including the place or manner of the exercise of such right or the performance of such obligation.
		
	7.4
	On or before the June 2016 Amendment Effective Date, the Funding Seller shall furnish the Bank Collections Agent with each Notice of Assignment, executed in blank.

		
	8.
	Conditions Precedent

		
	8.1
	The agreement of the Purchaser to purchase Receivables shall be subject to the prior satisfaction of all of the conditions precedent set forth in Annex 5.

		
	8.2
	Notwithstanding any contrary provision of this Agreement, it is expressly understood that each purchase of new Receivables pursuant to Section 2.1(b) shall, unless otherwise directed by the Bank Purchasing Agent, occur automatically on each Business Day prior to the Facility Termination Date (to the extent that new Receivables become available for purchase in accordance with such section) without the requirement that any further action be taken on the part of any Person and notwithstanding the failure of the Funding Seller to satisfy any of the conditions precedent in respect of such purchase. If (A) any of the conditions precedent set forth in Annex 5 shall not be satisfied in respect of the purchase of any Receivables and (B) the Bank Purchasing Agent shall have elected to rescind the onward purchase and sale of such Receivables pursuant to the Onward Receivables Purchase Agreement, then the Funding Seller and the Purchaser shall be required to rescind the related purchase and the Funding Seller shall be required to deposit into the Collection Account for the Purchaser (by making a corresponding deposit to the Collection Account), an amount equal to the Collections that shall have been applied to make the affected purchase. 

		
	9.
	Indemnification By Funding Seller

		
	9.1
	Without limiting any other rights that any of the Purchasing Entities or any of their respective Affiliates or employees, officers, directors, managers, agents or counsel (each, an “Indemnified Party”) may have hereunder or under applicable law, the Funding Seller hereby agrees to indemnify each Indemnified Party from and against any and all claims, damages, costs, expenses, losses and liabilities (including reasonable attorneys’ fees) (all of the foregoing being collectively referred to herein as “Indemnified Amounts”) arising out of or resulting from this Agreement or any other Transaction Document or the ownership of the Purchased Receivables or any Contract, excluding, however, (a) Indemnified Amounts to the extent resulting from gross negligence or willful misconduct on the part of such Indemnified Party, (b) recourse for uncollectible Receivables (except as expressly provided for herein), (c) any Excluded Taxes or (d) with respect to subparagraph (i) below, Indemnified Amounts directly attributable to the Bank Purchasing Agent’s failure to comply with its agreements contained in Section 7.3. Without limiting or being limited by the foregoing (but subject to the aforementioned exclusions), the Funding Seller shall pay on demand to each Indemnified Party any and all amounts necessary to indemnify such Indemnified Party from and against any and all Indemnified Amounts relating to or resulting from any of the following:

		
	(a)
	the sale of any Receivable that is not at the date of such sale an Eligible Receivable except to the extent it has made a payment to the Collection Account pursuant to Section 2.5;

		
	(b)
	any representation or warranty or statement made or deemed made by the Funding Seller (or any of its officers) pursuant to this Agreement and the other Transaction Documents that shall have been incorrect when made or deemed made;

		
	(c)
	the failure by the Funding Seller or any of the Originators to comply with any applicable law, rule or regulation with respect to any Purchased Receivable or the related Contract; or the failure of any

57

Purchased Receivable or the related Contract to conform to any such applicable law, rule or regulation;
		
	(d)
	the failure to vest and maintain vested in the Purchaser a first priority perfected ownership interest in the Purchased Receivables (subject to the assignment of such interest to the Co-Agents), in each case free and clear of any Adverse Claim.

		
	(e)
	any failure of the Funding Seller to perform its duties or obligations in accordance with the provisions hereof or of any of the Transaction Documents to which it is a party, or under any Contract;

		
	(f)
	any products liability or other claim, investigation or proceeding (including any claim for unpaid sales, excise or other taxes) arising out of or in connection with the goods or services or merchandise or insurance that are the subject of any Contract;

		
	(g)
	the failure to deposit Collections into the Collection Account pursuant to the terms hereof; 

		
	(h)
	any investigation, litigation or proceeding related to this Agreement or the ownership of Purchased Receivables or in respect of any Purchased Receivable or Related Rights; or

		
	(i)
	

		
	(i)
	any value added tax plus any interest and other ancillary Tax charges (A) applicable to the payment of the Servicer Fee, the supply of the services rendered by the Servicer or the sale of the Receivables and the Related Rights pursuant to this Agreement or the Onward Receivables Purchase Agreement or (B) arising as a result of a breach by the Funding Seller, the Servicer, the Performance Guarantor or any of their Affiliates of Section 7.1(l) (less any respective value added tax credits or deductions as are obtained by or credited to the Purchasing Entities, which credits or deductions shall be taken into account following the final and unchangeable determination thereof by the German tax authorities; whereby the Bank Purchaser shall take reasonable steps to receive eligible value added tax credits or deductions by filing respective returns); or

		
	(ii)
	any Taxes payable by the Purchaser to the relevant German tax authorities if (contrary to the expectations of the parties hereto) the Purchaser is determined by the relevant German tax authorities to have a permanent establishment or other taxable presence located in the Federal Republic of Germany.

		
	10.
	Payments

		
	10.1
	All payments required to be made by the Funding Seller or the Performance Guarantor pursuant to this Agreement shall be remitted in full (without set-off, counterclaim, deduction or withholding) to the accounts identified in the Master Receivables Purchase Agreement Side Letter or otherwise in accordance with the terms of this Agreement. Each party hereto shall be permitted to change any of its accounts or the details related to any of its accounts identified in the Master Receivables Purchase Agreement Side Letter or otherwise in accordance with the terms of this Agreement by notifying the other parties hereto in writing of its new account information. From time to time, at the direction of the Co-Agents or either of the Co-Agents acting individually, any payments required to be made to the Purchaser shall be made to the accounts of the Bank Purchasers ratably in proportion to their respective Commitments.

58

		
	10.2
	Unless explicitly stated otherwise herein, all payments required to be made pursuant to this Agreement shall be made in USD.

		
	10.3
	Notwithstanding anything to the contrary contained in, or implied by, this Agreement, the Funding Seller and the Purchaser (or the Servicer and the Bank Purchasing Agent on their behalf) intend to, and shall, net all payments from one party to another occurring on each Settlement Date so that only the party by whom the larger aggregate amount is payable shall pay, in USD and immediately available funds, the excess of the larger aggregate amount over the smaller aggregate amount to the other party.

		
	11.
	Term; Termination

		
	11.1
	This Agreement, from and after the date hereof, shall amend, restate and replace the Master Receivables Purchase Agreement in its entirety and shall remain in full force and effect until the Final Termination Date.

		
	11.2
	Each of the following events or circumstances shall be considered to be a “Funding Seller Termination Event” under this Agreement:

		
	(a)
	a Change of Control shall occur; or

		
	(b)
	the Bank Purchasing Agent shall notify any Obligor that the Purchased Receivables have been assigned hereunder except as permitted by this Agreement, it being understood that the disclosure of this Agreement or the existence of this Agreement to the public generally shall not constitute such a notification; or

		
	(c)
	the sale of the Purchased Receivables hereunder ceases to satisfy the requirements of IFRS or GAAP for off-balance sheet treatment, as determined in good faith by the Funding Seller’s accountants; provided that such cessation is not the result of any action or inaction by the Funding Seller or any other member of the T-Mobile Group; or

		
	(d)
	(A) the Servicer or any Originator is not able to take a bad debt deduction for federal income tax purposes for Written-off Receivables or is unable to recover or receive a deduction, credit, or refund with respect to state or local sales or other similar transactional taxes paid or collected and remitted to the appropriate Governmental Authority on Written-Off Receivables, in the aggregate in a 12-month period in excess of 50% of the total possible federal income tax bad debt deduction or 50% of the transactional taxes paid or collected and remitted to a Governmental Authority, as applicable, (B) the Funding Seller shall have used commercially reasonable efforts to mitigate such inability including, without limitation, by providing each of the Purchasing Entities with a written proposal to reasonably amend the definition herein of the term “Designated State” and which may be implemented with effect in 30 days and (C) the Bank Purchasing Agent shall not have agreed to such proposal within 10 days of its receipt; or

		
	(e)
	any payment of Increased Costs is demanded from the Funding Seller pursuant to Section 4.4.

		
	11.3
	If any Funding Seller Termination Event shall occur and be continuing, the Funding Seller may, by notice to each of the Purchasing Entities, declare the Facility Termination Date to have occurred (in which case the Facility Termination Date shall be deemed to have occurred).

		
	11.4
	Each of the following events or circumstances shall be considered to be a “Termination Event” under this Agreement; provided, however, that references to Deutsche Telekom in this Section 11.4 shall only be applicable after it shall have executed and delivered the DT Payment Guarantee:

59

		
	(a)
	the Funding Seller, the Servicer, any Originator, the Initial Purchaser, Deutsche Telekom or the Performance Guarantor shall fail to make any payment required under this Agreement or any other Transaction Document and any such failure shall remain unremedied for five (5) days; or

		
	(b)
	a Bankruptcy Event shall occur with respect to the Funding Seller, the Servicer, the Performance Guarantor, the Initial Purchaser, any Originator or Deutsche Telekom; or

		
	(c)
	the Funding Seller, the Servicer, the Performance Guarantor, the Initial Purchaser, any Originator or Deutsche Telekom shall fail, in any material manner, to perform or observe any other term, covenant or agreement contained in this Agreement or in any other Transaction Document on its part to be performed or observed and any such failure shall remain unremedied for ten (10) days after the earlier to occur of (i) the receipt of written notice thereof from any of the Purchasing Entities or (ii) actual knowledge thereof by the Funding Seller or the Servicer; or

		
	(d)
	(i) the Performance Guarantor shall purport to revoke or terminate the Performance Guarantee, or the Performance Guarantee shall no longer be in effect; or the Performance Guarantor shall fail to perform, in a timely manner, any of its obligations hereunder or under the Performance Guarantee; or there shall have occurred any material breach of any of the representations and warranties, or any covenants or other agreements, made by the Performance Guarantor in this Agreement; or (ii) Deutsche Telekom shall purport to revoke or terminate the DT Payment Guarantee (if and as previously executed and delivered), or the DT Payment Guarantee (if and as previously executed and delivered) shall no longer be in effect; or Deutsche Telekom shall fail to perform, in a timely manner, any of its obligations under the DT Payment Guarantee (if and as previously executed and delivered); or there shall have occurred any material breach of any of the representations and warranties, or any covenants or other agreements, made by the Performance Guarantor in the DT Payment Guarantee (if and as previously executed and delivered); or

		
	(e)
	any representation or warranty made or deemed made by the Funding Seller, the Servicer, the Performance Guarantor, the Initial Purchaser, any Originator or Deutsche Telekom (or any of their officers) pursuant to this Agreement or any other Transaction Document or any information or report delivered by the Funding Seller or the Servicer pursuant to this Agreement or any other Transaction Document shall prove to have been incorrect or untrue in any material respect when made or deemed made or delivered and which, if capable of cure, continues to be incorrect in any material respect for a period of ten (10) days after the earlier to occur of (i) the receipt of written notice thereof from the Bank Purchasing Agent or any of the Bank Purchasers or (ii) actual knowledge thereof by the Funding Seller or the Servicer; or

		
	(f)
	the Funding Seller shall fail to pay any principal of or premium or interest on any of its Debt that is outstanding, or the Funding Seller, the Servicer, the Performance Guarantor, the Initial Purchaser, any Originator or Deutsche Telekom shall fail to pay any principal of or premium or interest on any of its Debt that is outstanding in a principal amount of at least $100,000,000 in the aggregate, in each case when the same becomes due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument relating to such Debt; or any Securitization Obligation of the Funding Seller, the Servicer, the Performance Guarantor, the Initial Purchaser, any Originator or Deutsche Telekom in a principal amount of at least $100,000,000 in the aggregate shall be accelerated prior to its express maturity; or any other event shall occur or condition shall exist under any agreement or instrument relating to any such Debt or Securitization Obligation and shall continue after the applicable grace period, if any, specified in such agreement or instrument, if the effect of such event or condition is to accelerate, or to permit the acceleration of, the maturity of such Debt or Securitization

60

Obligation; or any such Debt or Securitization Obligation shall be declared to be due and payable, or required to be prepaid (other than by a regularly scheduled required prepayment), redeemed, purchased or defeased, or an offer to repay, redeem, purchase or defease such Debt or Securitization Obligation shall be required to be made, in each case prior to the stated maturity thereof; or
		
	(g)
	it shall become unlawful under any applicable law for any of the Funding Seller, the Servicer, the Performance Guarantor, the Initial Purchaser, any Originator or Deutsche Telekom or any of the Purchasing Entities to perform any of their material obligations under this Agreement or any of the other Transaction Documents; or

		
	(h)
	the unsecured, long-term debt of the Performance Guarantor shall be rated below (i) B+ by S&P or (ii) B1 by Moody’s or shall cease to be rated by either S&P or Moody’s; or

		
	(i)
	Deutsche Telekom shall not have executed and delivered the DT Payment Guarantee (together with such certificates and corporate and enforceability opinions as the Bank Purchasers may reasonably request) within 30 days after a Change of Control, in which case a Termination Event shall be deemed to occur on the first Settlement Date that shall occur at least 30 days after such Change of Control; or

		
	(j)
	the three-month rolling average Aged Receivables Ratio on any Settlement Date exceeds 6.00%; or 

		
	(k)
	the three-month rolling average Delinquency Ratio exceeds 4.50%; or 

		
	(l)
	the three-month rolling average Write-Off Ratio on any Settlement Date exceeds 3.75% unless such breach (A) shall have been caused only by technical reasons (such as a change in information technology systems or procedures) and (B) shall be cured within 60 days; or

		
	(m)
	the three-month rolling average Dilution Ratio on any Settlement Date exceeds 18.00%; or

		
	(n)
	the three-month rolling average Write-Off Horizon for Written-off Receivables and Unpaid Repurchased Receivables on any Settlement Date is less than 80 days or greater than 155 days, unless, in either case, such breach (A) shall not have been wilful, (B) shall have been caused only by technical reasons (such as a change in information technology systems or procedures) and (C) shall be cured within 60 days; or

		
	(o)
	any purchase pursuant to this Agreement shall for any reason cease to create a valid and perfected ownership or security interest in each applicable Purchased Receivable free and clear of any Adverse Claim (other than any Adverse Claim arising under any Transaction Document); or

		
	(p)
	either of the Conveyance Agreement or the Contribution Agreement shall no longer be in effect; or the Originators or the Initial Purchaser, as applicable, shall fail to perform, in a timely manner, any of its material obligations thereunder or there shall have occurred any material breach of any of the representations and warranties, or any covenants or other agreements, made thereunder by the Originators or the Initial Purchaser, as applicable; or

		
	(q)
	the Consolidated Equity Ratio shall at any time be less than 17.5%; or

		
	(r)
	the Consolidated Leverage Ratio shall at any time be greater than 500%; or

		
	(s)
	KfW’s rating shall be less than Baa3 by Moody’s or BBB- by S&P, either of the KfW Guarantees shall be terminated or shall otherwise cease to be in full force and effect, or KfW shall repudiate its 

61

obligations thereunder and such KfW Guarantee shall not have been replaced by another guarantee, letter of credit or cash deposit in form and substance reasonably satisfactory to the Bank Purchasing Agent; or
		
	(t)
	the Level 3 Maximum Amount shall at any time be less than 25% of the Level 3 Maximum Amount as of the Closing Date; or

		
	(u)
	on any Settlement Date, the ratio, expressed as a percentage, of:

		
	(i)
	the aggregate Nominal Value of Purchased Receivables that have not been paid in full more than 90 days after their respective Due Dates but that are not Written-Off Receivables (including Receivables that have been transferred pursuant to Section 5.1(a) or 5.1(b)); to 

		
	(ii)
	the sum of (A) the Mandatory Repurchase Reserve for all Batches on such Settlement Date, (B) the product of the Discount Rate and the Settlement Date Receivables Balance, (C) the Level 3 Maximum Amount on such Settlement Date, (D) the Level 3A Maximum Amount on such Settlement Date, (E) the Level 4 Reserve Amount for such Settlement Date and (F) the Discount Ledger Balance for such Settlement Date; 

is greater than 50%.
		
	11.5
	If any Termination Event shall occur and be continuing, (x) the Bank Purchasing Agent may, by notice to the Funding Seller, declare the Facility Termination Date to have occurred (in which case the Facility Termination Date shall be deemed to have occurred), provided that, automatically upon the occurrence of any event (without any requirement for the passage of time or the giving of notice) described in Section 11.4(b), the Facility Termination Date shall occur, and (y) without limiting any right under this Agreement to replace the Servicer, the Bank Collections Agent may designate another Person to succeed the then current Servicer as the Servicer. Upon declaration or automatic occurrence of the Facility Termination Date, the Bank Collections Agent shall have (a) the rights of the Funding Seller as buyer under the Contribution Agreement and (b) in addition to the rights and remedies that they may have under this Agreement, all other rights and remedies provided after default under the UCC of the appropriate jurisdiction or jurisdictions and under other applicable law, which rights and remedies shall be cumulative.

		
	11.6
	If the Facility Termination Date shall occur in connection with Section 11.5, the Bank Collections Agent may take (and the Funding Seller hereby irrevocably authorizes the Bank Collections Agent to take) any and all actions in the Funding Seller’s name and/or on behalf of the Funding Seller that, in the determination of the Bank Collections Agent, shall be necessary or desirable in order to collect any amounts due under the Purchased Receivables and any of the Related Rights or to exercise or enforce any of the Related Rights.

		
	11.7
	Notwithstanding anything herein or any other Transaction Document to the contrary, (a) the occurrence of the Final Termination Date shall not discharge the Funding Seller, the Servicer, the Performance Guarantor or any other Person from any obligations incurred by it or them prior to such date and (b) the rights and remedies with respect to any breach of any representation and warranty made by the Funding Seller or the Performance Guarantor hereunder any Originator under the Conveyancing Agreement shall survive the Final Termination Date.

		
	11.8
	If the Facility Termination Date shall occur in connection with Section 11.5, then, on the Final Termination Date, the Purchaser shall pay to the Funding Seller an amount equal to the Discount Ledger Balance as of the last Settlement Date to occur on or prior to the Final Termination Date. 

62

		
	11.9
	At any time that the aggregate Outstanding Balance of all Purchased Receivables is less than ten percent (10%) of the amount of the highest Funding Limit in effect hereunder from and after the Closing Date, the Funding Seller may, in its sole discretion, repurchase all, but not less than all, of the then outstanding Purchased Receivables at a price, in immediately available funds, equal to the Outstanding Balance of all such Purchased Receivables plus all fees and other amounts due to the Purchaser hereunder (the “Clean-up Call”). The Funding Seller shall deposit such amount in the Collection Account. The Purchaser shall re-assign the outstanding Purchased Receivables to the Funding Seller if the Funding Seller exercises its right to, and pays the purchase price of, the Clean-up Call.

		
	11.10
	In the event that the Servicer (in its sole and absolute discretion) has notified the Purchaser that it has determined that the transactions contemplated by this Agreement (or one of the other Transaction Documents) no longer needs to satisfy the requirements of IFRS for off-balance sheet treatment, then, on the Final Termination Date, the Purchaser shall pay to the Funding Seller an amount equal to the Discount Ledger Balance as of the last Settlement Date to occur on or prior to the Final Termination Date. 

		
	12.
	Confidentiality

		
	12.1
	The parties shall treat as confidential this Agreement, the transactions contemplated hereunder and any and all business and trade secrets and other information received in connection with this Agreement or the performance thereof and information about a party’s business or financial matters, technical information or any other proprietary information relating to a party or its Affiliates and their respective operations, businesses, technical know-how and financial affairs, that is obtained by the other party as a result of the working relationship between the parties, whether obtained prior to or after the date hereof (the “Confidential Information”) during the term of this Agreement and a further period of two (2) years following its termination or expiration. Confidential Information shall include, without limitation, trade secrets, discoveries, ideas, concepts, know-how, techniques, designs, specifications, drawings, maps, blueprints, diagrams, flow charts and any other technical, financial, business or proprietary information of any kind or nature whatsoever. The parties shall not disclose any Confidential Information to anyone, except to any assignees, potential assignees, the Bank Purchasers, potential participants, or any of their respective directors, managers, executives, employees, affiliates, auditors, lawyers, advisors, authorized agents and/or duly appointed representatives who have a specific and reasonable interest in knowing, viewing and using such Confidential Information and agree to be bound by the confidentiality provisions of this Section 12.

		
	12.2
	The confidentiality provisions specified in Section 12.1 above shall not apply to the disclosure of Confidential Information, which:

		
	(a)
	is publicly available or is made available to the broad public by means other than a breach of this Agreement; or

		
	(b)
	has been made available by a third party, provided that neither the Bank Purchasing Agent nor the Funding Seller was aware that such third party was in breach of any duty of confidentiality; or

		
	(c)
	was already in such party’s possession or was independently developed by such party before the Confidential Information was received; or

		
	(d)
	must be disclosed pursuant to applicable law, any court order or instruction of any duly authorized Governmental Authority; or

		
	(e)
	is made publicly available or is disclosed subject to the prior written consent of the other parties with respect to the content, form and manner of its presentation and publication; or

63

		
	(f)
	is required for purposes of recovering the assigned Receivables or Related Rights or otherwise exercising any of the rights and remedies of the Bank Purchasing Agent under the Transaction Documents.

		
	12.3
	Notwithstanding anything to the contrary stated herein other than in Section 12.2(f), the parties hereto agree that they will be bound by the additional confidentiality provisions contained in Annex 8 hereto as it relates to the T-Mobile Information.

		
	13.
	Notices

All notices and all other correspondence shall be sent by post, courier, fax or e-mail to the address, fax number or e-mail account of the recipient as set forth in Annex 1 or to such other address, fax number or e-mail account the recipient has notified in writing. If sent by e-mail, the e-mail text (excluding attachment) shall also be transmitted by fax.
		
	14.
	Assignments

		
	14.1
	None of the Funding Seller, the Purchaser, the Performance Guarantor or the Servicer may assign its rights or obligations hereunder or any interest herein without the prior written consent of the Bank Purchasing Agent.

		
	14.2
	The parties hereto acknowledge and agree that the Purchaser shall assign its rights hereunder to each of the Co-Agents (in their respective agency capacities provided for herein and in the Onward Receivables Purchase Agreement) for the benefit of the Bank Purchasers under the Onward Receivables Purchase Agreement. Neither the Funding Seller, the Servicer or any other member of the T-Mobile Group shall have any rights to direct the operation or control over the Purchaser.

		
	14.3
	The parties hereto hereby agree that each of the Purchasing Entities, each of the other Indemnified Parties, and, solely for purposes of Section 2.7 and Section 23, Wells Fargo, shall be an intended third-party beneficiary of this Agreement, entitled to enforce this Agreement against the Funding Seller, the Servicer and the Performance Guarantor as if each such Person were a party hereto. Except as provided in the immediately preceding sentence, no person or entity is or shall be deemed to be a third-party beneficiary of this Agreement or of any of the duties and obligations of any party contained in this Agreement.

		
	15.
	Amendments

		
	15.1
	No amendment or waiver of any provision of this Agreement and no consent to any departure by the Funding Seller, the Purchaser, the Performance Guarantor or the Servicer therefrom shall be effective unless in a writing signed by the Bank Purchasing Agent, and, in the case of any amendment, also signed by the Funding Seller, the Purchaser, the Servicer and the Performance Guarantor. No failure on the part of the Bank Purchasing Agent to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. 

		
	16.
	Other Costs

In addition to the rights of indemnification granted under Section 9.1 hereof, the Funding Seller agrees to pay on demand all reasonable and documented costs and expenses in connection with the preparation, execution, delivery and administration (including periodic auditing of Purchased Receivables) of this Agreement, any asset purchase or Onward Receivables Purchase Agreement or similar agreement relating to the sale or transfer of the Purchased Receivables and the other documents and agreements to be delivered 

64

hereunder and thereunder, including, without limitation, the reasonable fees and expenses of counsel and with respect to advising the Bank Purchasers and their respective Affiliates and agents as to their rights and remedies under this Agreement, and all costs and expenses, if any (including fees and expenses of counsel), of the Bank Purchasers and their respective Affiliates and agents, in connection with the enforcement of this Agreement and the other documents and agreements to be delivered hereunder.
		
	17.
	Severability

Should a provision of this Agreement be or become invalid or unenforceable, either in whole or in part, this shall not affect the validity of the remaining provisions. The invalid or unenforceable provision shall be replaced by a valid provision which most closely reflects the legal and economic intent of the parties. The foregoing shall also apply to any omissions contained in this Agreement.
		
	18.
	Money Laundering

The Funding Seller warrants that it is acting on its own account with respect to all matters associated with this Agreement. The Funding Seller shall provide the Bank Purchasing Agent with all information and documents necessary to identify and clarify the beneficial owner within the meaning of the German Money Laundering Act (Geldwäschegesetz) and the Third EU Money Laundering Directive (Directive 2005/60/EC) and to clarify the PEP status (“politically exposed person”), and shall report any changes occurring in the course of the business relationship to the Bank Purchasing Agent without undue delay.
		
	19.
	Performance Guarantee

		
	19.1
	The Performance Guarantor (A) hereby irrevocably, absolutely and unconditionally guarantees to the Purchaser, the Bank Purchasing Agent and the Bank Purchasers and their respective assignees the prompt performance when due of all obligations of the Servicer, the Originators and the Initial Purchaser hereunder and under each of the other Transaction Documents (including, without limitation, payment in full when due, whether at stated maturity, by acceleration or otherwise, of all amounts owing by the Servicer, the Originators or the Initial Purchaser to the Funding Seller, the Purchaser and the Bank Purchasing Agent) strictly in accordance with the terms hereof and thereof; and (B) accordingly agrees that, whenever the Servicer, any Originator or the Initial Purchaser shall fail to perform any such obligation when due hereunder or thereunder, the Performance Guarantor shall immediately perform, or cause to be performed, such obligation as if it were the principal obligor and regardless of the reason for such failure (such obligations being herein collectively referred to as the “TMUS Guaranteed Obligations”). For the avoidance of doubt, the Performance Guarantor shall have no obligation to guaranty (and does not guaranty) any obligations of the Funding Seller under the Transaction Documents. For the sake of clarity, it is expressly acknowledged that the TMUS Guaranteed Obligations do not include any act, inaction, obligation or liability of the Funding Seller to fully and punctually pay, perform or comply with any of the terms, covenants, conditions, agreements, undertakings and obligations on the part of the Funding Seller to be paid, performed or complied with by it under this Agreement, any other Transaction Document or any document entered into in connection with the foregoing.

		
	19.2
	The obligations of the Performance Guarantor under this Performance Guarantee will not be affected by:

		
	(a)
	any amendment (however fundamental) or replacement of this Agreement, the Conveyancing Agreement or any other document or security;

		
	(b)
	any Bankruptcy Event with respect to the Funding Seller, the Servicer, any Originator or any other Person.

65

		
	19.3
	The obligations of the Performance Guarantor under this Performance Guarantee are absolute and unconditional, irrespective of the validity or enforceability of any other section of this Agreement or any Transaction Document, the value of any collateral provided to the Bank Purchasing Agent or the Bank Collections Agent or the release or exchange of any such collateral. The Performance Guarantor waives any right it may have of first requiring the Bank Purchasing Agent or the Bank Collections Agent to proceed against, or enforce any other rights or security or claim from, any person before claiming from it under this guarantee. This waiver applies irrespective of any non-mandatory law or any provision of this Agreement to the contrary. Without limiting the generality of the foregoing, it is agreed that the occurrence of any one or more of the following shall not alter or impair the liability of the Performance Guarantor hereunder, which shall remain absolute and unconditional as described above:

		
	(a)
	at any time or from time to time, without notice to the Performance Guarantor, the time for any performance of or compliance with any of the obligations of the Servicer or an Originator under the Transaction Documents shall be waived;

		
	(b)
	any of the acts mentioned in any of the provisions of this Agreement or any other Transaction Document shall be done or omitted;

		
	(c)
	any of the TMUS Guaranteed Obligations shall be modified, supplemented or amended in any respect, or any right under this Agreement or any other Transaction Document shall be waived or any of the TMUS Guaranteed Obligations or any security therefore shall be released or exchanged in whole or in part or otherwise dealt with; or

		
	(d)
	any lien or security interest granted to, or in favor of, either of the Co-Agents as security for the TMUS Guaranteed Obligations shall fail to be effective or perfected.

The Performance Guarantor hereby expressly waives diligence, presentment, demand of payment, protest and all notices whatsoever, and any requirement that the Bank Purchasing Agent exhaust any right, power or remedy or proceed against any Originator or the Servicer or against any other Person under any other agreement, or guarantee of, or security for, any of the TMUS Guaranteed Obligations.
		
	19.4
	The obligations of the Performance Guarantor under this Section 19 shall be automatically reinstated if and to the extent that for any reason any payment by or on behalf of any Originator or the Servicer under this Agreement or any other Transaction Document is rescinded or must otherwise be restored by any holder of any of the TMUS Guaranteed Obligations, whether as a result of any proceedings in bankruptcy or reorganization or otherwise, and the Performance Guarantor agrees that it will indemnify the Bank Purchasing Agent on demand for all reasonable costs and expenses (including, without limitation, fees of counsel) incurred by the Bank Purchasing Agent in connection with such rescission or restoration, including any such costs or expenses incurred in defending against any claim alleging that such payment constituted a preference, fraudulent transfer or similar payment under any bankruptcy, insolvency or similar law.

		
	19.5
	The Performance Guarantor hereby waives all rights of subrogation or contribution, whether arising by contract or operation of law or otherwise by reason of any payment by it pursuant to the provisions of this Section 19.

		
	19.6
	The Performance Guarantor agrees that, as between the Performance Guarantor and any of the Purchasing Entities, the obligations of the Originators and the Servicer under this Agreement and each other Transaction Document may be declared to be forthwith due and payable as provided herein and therein (and shall be deemed to have become automatically due and payable as provided herein and therein) for the purposes of Section 19.1 hereof notwithstanding any stay, injunction or other prohibition preventing such 

66

declaration (or such obligations from becoming automatically due and payable) as against any Originator or the Servicer and that, in the event of such declaration (or such obligations being deemed to have become automatically due and payable), such obligations (whether or not due and payable by any Originator or the Servicer, as applicable) shall forthwith become due and payable by the Performance Guarantor for purposes of Section 19.1.
		
	19.7
	The guarantee in this Section 19 is a continuing guarantee, and shall apply to all TMUS Guaranteed Obligations whenever arising.

		
	19.8
	Without limiting or being limited by the foregoing, the Performance Guarantor shall pay on demand to each Indemnified Party any and all amounts necessary to indemnify such Indemnified Party from and against any and all Indemnified Amounts relating to or resulting from either of the following: 

		
	(a)
	any value added tax plus any interest and other ancillary Tax charges (A) applicable to the payment of the Servicer Fee, the supply of the services rendered by the Servicer or the sale of the Receivables and the Related Rights pursuant to this Agreement or the Onward Receivables Purchase Agreement or (B) arising as a result of a breach by the Funding Seller, the Servicer, the Performance Guarantor or any of their Affiliates of Section 7.1(l) (less any respective value added tax credits or deductions as are obtained by or credited to the Purchasing Entities, which credits or deductions shall be taken into account following the final and unchangeable determination thereof by the German tax authorities; whereby the Bank Purchaser shall take reasonable steps to receive eligible value added tax credits or deductions by filing respective returns); or

		
	(b)
	any Taxes, other than Excluded Taxes, payable by the Purchaser to the relevant German tax authorities if (contrary to the expectations of the parties hereto) the Purchaser is determined by the relevant German tax authorities to have a permanent establishment or other taxable presence located in the Federal Republic of Germany.

		
	19.9
	UCC Filing Indemnity. The Performance Guarantor hereby agrees to indemnify each of the Purchasing Entities from and against any and all losses, liabilities and expenses (including reasonable attorney’s fees) suffered by each such Purchasing Entity arising out of the avoidance (or “clawback”) of the transfers by the January 2015 Joining Originator of Designated SunCom Receivables (or of any proceeds of such receivables) as a preference or fraudulent transfer, in the event of a bankruptcy, liquidation, conservatorship, receivership or similar proceeding, whether voluntary or involuntary, involving the January 2015 Joining Originator or its assets, which avoidance (or “clawback”) is attributable to (A) the non-timely filing of financing statements with respect to such transfers by the January 2015 Joining Originator and/or (B) the fact that the Joinder and Second Amendment to the Conveyancing Agreement, dated as of the January 2015 Amendment Effective Date (which confirms and ratifies such transfers), was executed and delivered as of a date later than the date on which such transfers actually occurred.

		
	20.
	Termination of KFW Guarantees

		
	20.1
	Notwithstanding anything to the contrary stated herein, the Funding Seller may terminate either of the KfW Guarantees in the event that the Funding Seller provides the Bank Purchasing Agent with a cash deposit, another guarantee or a letter of credit in form and substance reasonably satisfactory to the Bank Purchasing Agent. The parties hereto shall cooperate with the Funding Seller to effectuate such termination. 

		
	21.
	Purchasing Entities’ Undertakings related to German VAT

		
	21.1
	No Purchasing Entity nor any of its Affiliates shall exercise any option (if any) available under German law to have value added tax apply with respect to any supply, for German value added tax purposes, rendered in

67

connection with the sale of the Receivables contemplated by the Transaction Documents, unless the recipient of such Taxes suffers no disadvantage. In addition to the foregoing, the Funding Seller, the Servicer and the Performance Guarantor believe that the servicing obligations of the Servicer in connection with this agreement rendered to a Bank Purchaser located in Germany are subject to German value added tax and that such value added tax should be fully recoverable as input value added tax by the respective Bank Purchaser.
		
	22.
	Bankruptcy

		
	22.1
	Each party hereto hereby covenants and agrees that prior to the date which is one year and one day after the Final Termination Date, it will not institute against or join any other person in instituting against the Funding Seller any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other similar proceeding under the laws of the United States or any state of the United States or any other country.

		
	23.
	Limited Recourse against Wells Fargo

		
	23.1
	It is expressly understood and agreed by the parties to this Agreement that (a) this Agreement is executed and delivered by Wells Fargo, as trustee of Billing Gate One Trust, not in Wells Fargo’s individual or personal capacity but solely in such under the trust agreement of Billing Gate One Trust, in the exercise of the powers and authority conferred and vested in it as trustee under such trust agreement, subject to the protections, indemnities and limitations from liability afforded to Wells Fargo as trustee thereunder; (b) in no event shall Wells Fargo, in its individual capacity have any liability for the representations, warranties, covenants, agreements or other obligations of the Purchaser or any other party hereto; (c) in no event shall Wells Fargo have any obligation to perform any of the obligations and covenants of the Purchaser or any other party to this Agreement; and (d) under no circumstances shall Wells Fargo be personally liable for the payment of any fees, costs, indebtedness or expenses of any kind whatsoever or be personally liable for the breach or failure of any obligation, representation, agreement, warranty or covenant whatsoever made or undertaken by the Purchaser or any other party hereunder.

		
	24.
	Choice of Law and Jurisdiction; Waiver of Jury Trial

		
	24.1
	THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES, EXCEPT TO THE EXTENT THAT THE PERFECTION OF THE RESPECTIVE INTERESTS OF THE CO-AGENTS AND THE PURCHASER IN THE PURCHASED RECEIVABLES AND THE RELATED RIGHTS ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK.

		
	24.2
	EACH PARTY HERETO HEREBY (A) IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY NEW YORK STATE OR FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK, NEW YORK, OVER ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, (B) IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF THE ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH STATE OR FEDERAL COURT, AND (C) IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING. NOTHING IN THIS SECTION SHALL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR AFFECT THE RIGHT OF ANY PARTY HERETO TO BRING ANY ACTION OR PROCEEDING AGAINST ANY OR ALL OF THE OTHER PARTIES HERETO OR ANY OF THEIR RESPECTIVE PROPERTIES IN THE COURTS OF ANY OTHER JURISDICTION.

68

		
	24.3
	EACH PARTY HERETO WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER OR RELATING TO THIS AGREEMENT OR ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR THAT MAY IN THE FUTURE BE DELIVERED IN CONNECTION THEREWITH OR ARISING FROM ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN), ACTIONS OF ANY OF THE PARTIES HERETO OR ANY OTHER RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL HE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

		
	25.
	Counterparts

This Agreement may be executed in any number of counterparts, all of which when taken together shall constitute one and the same instrument.
		
	26.
	Execution

This Agreement, to the extent no other form is required by law, may be concluded by an exchange of telefaxes or scanned signatures or any combination of scanned signatures and/or faxed signatures and/or original signatures (whereby in each case an exchange of signature pages suffices). For purposes of proof and confirmation only, each party may request that one or several copies of this Agreement shall be originally signed by the parties.
		
	27.
	Anti-Corruption; Sanctions

		
	27.1
	Definitions. In this Article 27:

“Anti-Corruption Laws” means all United States laws, rules, and regulations applicable to the Funding Seller or its Subsidiaries or any T-Mobile Party or its Subsidiaries from time to time concerning or relating to bribery or corruption, including, without limitation, the Foreign Corrupt Practices Act of 1977, as amended, and any economic sanctions regulations administered and enforced by OFAC or the U.S. Department of State.
“OFAC” means the Office of Foreign Assets Control of the United States Department of Treasury.
“Sanctioned Country” means, at any time, a country or territory which is the subject or target of any Sanctions, including, without limitation, as of the November 2014 Amendment Effective Date, Cuba, Burma (Myanmar), Iran, North Korea, Sudan and Syria.
“Sanctioned Person” means, at any time, any Person currently the subject or the target of any Sanctions, including any Person listed in any Sanctions-related list of designated Persons maintained by OFAC or the U.S. Department of State.
“Sanctions” means economic, financial or other sanctions or trade embargoes imposed, administered or enforced from time to time by the U.S. government, including those administered by OFAC or the U.S. Department of State.
“T-Mobile Party” means any member of the T-Mobile Group, other than the Funding Seller, that is a party to any of the Transaction Documents.

69

		
	27.2
	Representation of Performance Guarantor as to T-Mobile Parties. The Performance Guarantor hereby represents and warrants to each of the Purchasing Entities that, as of the November 2014 Amendment Effective Date and each Purchase Date thereafter:

		
	(a)
	policies and procedures have been implemented and maintained by or on behalf of each T-Mobile Party that are designed to achieve compliance by it and its Subsidiaries, directors, officers, and employees with Anti-Corruption Laws and applicable Sanctions, and each T-Mobile Party, its Subsidiaries and their respective officers and employees and, to the best knowledge of such T-Mobile Party, its Affiliates, officers, employees, and directors acting in any capacity in connection with or directly benefiting from the purchase facility established hereby, are in compliance with Anti-Corruption Laws and applicable Sanctions, in each case in all material respects;

		
	(b)
	no T-Mobile Party nor any of their respective Subsidiaries or, to the knowledge of such T-Mobile Party, any of its Affiliates, directors, officers, or employees, that will act in any capacity in connection with or directly benefit from the purchase facility established hereby, is a Sanctioned Person; and

		
	(c)
	no T-Mobile Party nor any of their respective Subsidiaries is organized or resident in a Sanctioned Country. 

		
	27.3
	Affirmative Covenant of Performance Guarantor as to T-Mobile Parties. The Performance Guarantor shall cause policies and procedures to be maintained and enforced by or on behalf of each T-Mobile Party that are designed in good faith and in a commercially reasonable manner to promote and achieve compliance, in such T-Mobile Party’s reasonable judgment, by it and each of its Subsidiaries and their respective directors, officers, and employees with Anti-Corruption Laws and applicable Sanctions. The Performance Guarantor shall ensure that no proceeds of the sale of any Purchased Receivable by any T-Mobile Party are used in a manner that causes such T-Mobile Party to violate Anti-Corruption Laws or results in the violation of any Sanctions that are applicable to such T-Mobile Party. 

		
	27.4
	Negative Covenant of Performance Guarantor as to T-Mobile Parties. The Performance Guarantor shall cause each of the T-Mobile Parties, their respective Subsidiaries and its and their respective directors, officers and employees not to use the proceeds of the sale of any Purchased Receivable (A) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, or (B) for the purpose of funding or financing any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, in each case to the extent that doing so would result in the violation of any Sanctions that are applicable to such T-Mobile Party.

		
	27.5
	Representation of Funding Seller. The Funding Seller hereby represents and warrants to each of the Purchasing Entities that, as of the November 2014 Amendment Effective Date and each Purchase Date thereafter:

		
	(a)
	policies and procedures have been implemented and maintained by the Funding Seller or on its behalf that are designed to achieve compliance by it and its Subsidiaries, directors, officers, and employees with Anti-Corruption Laws and applicable Sanctions, and the Funding Seller, its Subsidiaries and their respective officers and employees and, to the best knowledge of the Funding Seller, its Affiliates, officers, employees, and directors acting in any capacity in connection with or directly benefiting from the purchase facility established hereby, are in compliance with Anti-Corruption Laws and applicable Sanctions, in each case in all material respects;

70

		
	(b)
	neither the Funding Seller nor any of its Subsidiaries or, to the knowledge of the Funding Seller, any of its Affiliates, directors, officers, or employees, that will act in any capacity in connection with or directly benefit from the purchase facility established hereby, is a Sanctioned Person; and

		
	(c)
	neither the Funding Seller nor any of its Subsidiaries is organized or resident in a Sanctioned Country. 

		
	27.6
	Affirmative Covenant of Funding Seller. Policies and procedures shall be maintained and enforced by or on behalf of the Funding Seller that are designed in good faith and in a commercially reasonable manner to promote and achieve compliance, in its reasonable judgment, by it and each of its Subsidiaries and their respective directors, officers, and employees with Anti-Corruption Laws and applicable Sanctions. No proceeds of the sale of any Purchased Receivable by the Funding Seller shall be used in a manner that causes it to violate Anti-Corruption Laws or results in the violation of any Sanctions that are applicable to it. 

		
	27.7
	Negative Covenant of Funding Seller. The Funding Seller shall not use, and shall cause its Subsidiaries and its and their respective directors, officers and employees not to use, the proceeds of the sale of any Purchased Receivable (A) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, or (B) for the purpose of funding or financing any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, in each case to the extent that doing so would result in the violation of any Sanctions that are applicable to the Funding Seller.

		
	28.
	Acknowledgement and Consent to Bail-In of EEA Financial Institutions

		
	28.1
	Definitions. In this Article 28:

“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.
“Bail-In Legislation” means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union (establishing a framework for the recovery and resolution of credit institutions and investment firms), the relevant implementing law for such EEA Member Country from time to time. 
“EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.
“EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.
“EEA Resolution Authority” means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution. 

71

“Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country. 
		
	28.2
	Acknowledgment and Consent. Notwithstanding anything to the contrary in this Agreement, any other Transaction Document or any other agreement, arrangement or understanding among any of the parties thereto, each party hereto acknowledges that any liability of any EEA Financial Institution arising under this Agreement or any Transaction Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

		
	(a)
	the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and

		
	(b)
	the effects of any Bail-In Action on any such liability, including, if applicable:

		
	(i)
	a reduction in full or in part or cancellation of any such liability;

		
	(ii)
	a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Transaction Document; or

		
	(iii)
	the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority.

[Signature pages to follow]

72

SIGNATURE PAGES

	
		
	The Funding Seller
	 

	 
	 

	T-MOBILE AIRTIME FUNDING LLC
	 

	 
	 

	 
	 

	By:____/s/ Dirk Wehrse_______________
	 

	Name: Dirk Wehrse
	 

	Title: Senior Vice President, Treasury & Treasurer
	 

Second Amended and Restated Master Receivables Purchase Agreement

S-1

	
		
	The Performance Guarantor
	 

	T-MOBILE US, INC.
	 

	 
	 

	 
	 

	By:____/s/ Dirk Wehrse_______________
	 

	Name: Dirk Wehrse
	 

	Title: Senior Vice President, Treasury & Treasurer
	 

Second Amended and Restated Master Receivables Purchase Agreement

S-2

	
		
	The Servicer
	 

	T-MOBILE PCS HOLDINGS LLC
	 

	 
	 

	 
	 

	By:____/s/ Dirk Wehrse_______________
	 

	Name: Dirk Wehrse
	 

	Title: Senior Vice President, Treasury & Treasurer
	 

Second Amended and Restated Master Receivables Purchase Agreement

S-3

	
		
	The Purchaser
	 

	BILLING GATE ONE LLC
	 

	 
	 

	By:  Billing Gate One Trust, as Manager
	 

	By:  Wells Fargo Delaware Trust Company, National Association, solely as Trustee and not in its individual capacity
	 

	 
	 

	 
	 

	By:_______/s/ Sandra Battaglia___________
	 

	Name: Sandra Battaglia
	 

	Title: Vice President
	 

Second Amended and Restated Master Receivables Purchase Agreement

S-4

	
		
	The Bank Purchasing Agent
	 

	LANDESBANK HESSEN-THÜRINGEN GIROZENTRALE

	 
	 

	 
	 

	By:____/s/ Bjoern Mollner ___________
	By:___/s/ Björn Reinecke ___________

	Name: Bjoern Mollner
	Name: Björn Reinecke

	Title: VP
	Title: Assistant Vice President

Second Amended and Restated Master Receivables Purchase Agreement

S-5

	
		
	The Bank Collections Agent
	 

	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., DÜSSELDORF BRANCH

	 
	 

	 
	 

	By:__/s/ Seiichi Kuroiwa ________________
	By:___/s/ Masao Ichikawa _________________

	Name: Seiichi Kuroiwa
	Name: Masao Ichikawa

	Title: Managing Director
	Title: Managing Director

Second Amended and Restated Master Receivables Purchase Agreement

S-6

	
		
	ACKNOWLEDGED AND AGREED:
	 

	KFW IPEX-BANK GMBH
	 

	 
	 

	 
	 

	By:____/s/ Sebastian Eberie___________________
	By:____/s/ Franziska Wörner_________________

	Name: Sebastian Eberie
	Name: Franziska Wörner

	Title: Director
	Title: Associate

Second Amended and Restated Master Receivables Purchase Agreement

S-7

ANNEX 1
ADDRESSES

Funding Seller:
Dirk Wehrse
Senior Vice President, Treasury & Treasurer
T-Mobile Airtime Funding LLC
12920 SE 38th Street
Bellevue, WA 98006
Facsimile:  (425) 383-4840
With a copy to:

T-Mobile Airtime Funding LLC
Attn:    General Counsel
12920 SE 38th Street
Bellevue, WA 98006
Facsimile:  (425) 383-4840
Purchaser:
Billing Gate One LLC
c/o Billing Gate One Trust, as Manager
c/o Wells Fargo Delaware Trust Company, N.A., as Trustee
919 N. Market Street, Suite 1600
Wilmington, Delaware 19801
Attn: Corporate Trust Administration
Fax: (302) 575-2006
Phone: (302) 575-2016
E-mail: Sandra.Battaglia@wellsfargo.com
With a copy to the Bank Purchasing Agent and the Bank Collections Agent.
Helaba (as the Bank Purchasing Agent and as a Bank Purchaser):
Landesbank Hessen-Thüringen Girozentrale
Neue Mainzer Straße 52-58
60311 Frankfurt am Main
Germany
Contact:    Björn Mollner / Björn Reinecke 
Tel:        +49 (0)69 9132 - ext: 5208 / 3489
Fax:        +49 (0)69 9132 4190
E-mail:        bjoern.mollner@helaba.de, bjoern.reinecke@helaba.de

A-1-1

BTMU (as the Bank Collections Agent and as a Bank Purchaser):
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Ropemaker Place
25 Ropemaker Street
London, EC2Y 9AN
Contact:    Andrew Pierce; Andrew Montford; Brett Emms; Patrick Cogan 
Tel:        +44 20 7577 5221; +44 20 7577 5210; +44 20 7577 1613
E-mail:        andrew.pierce@uk.mufg.jp; andrew.montford@uk.mufg.jp; brett.emms@uk.mufg.jp; 
patrick.cogan@uk.mufg.jp
Autobahn (as the Conduit Purchaser and as a Bank Purchaser):
Autobahn Funding Company LLC
c/o DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main, New York Branch
609 Fifth Avenue
New York, New York 10017

Contact:     Christian Haesslein; Alexander Ploch
Tel:         (212) 745-1668; (212) 745-1661
Fax:        (212) 745-1651
E-mail:         Christian.Haesslein@dzbank.de; Alexander.Ploch@dzbank.de

With a copy to:

DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Frankfurt Am Main, New York Branch
609 Fifth Avenue
New York, New York 10017 
Contact:    Christian Haesslein; Alexander Ploch
Tel:        (212) 745-1668; (212) 745-1661
Fax:        (212) 745-1651
E-mail:         Christian.Haesslein@dzbank.de; Alexander.Ploch@dzbank.de

A-1-2

ANNEX 2
(Reserved)

A-2

ANNEX 3
ELIGIBLE RECEIVABLES
		
	(a)
	The Contract underlying the Receivable is a standard telecommunications services agreement of the related Originator and is governed by the federal and/or state laws of the United States.

		
	(b)
	(i) The Outstanding Balance of such Receivable shall not cause the aggregate Outstanding Balance of all Purchased Receivables (not including Aged Receivables) due from the Obligor with respect to such Purchased Receivable to exceed $50,000 (it being understood that the Servicer will make this determination monthly as of the end of each Collection Period) and (ii) such Receivable does not relate to Charges in excess of $50,000 in the aggregate set forth on a related Invoice.

		
	(c)
	Such Receivable is non-interest bearing and the Nominal Value of such Receivable does not include any default interest or other penalties, fines, fees for late payment or any other breach of the related Contract. 

		
	(d)
	The period from the Invoice Date to the Due Date with respect to such Receivable does not exceed 30 days.

		
	(e)
	The Obligor of such Receivable (i) is a natural person, or, if a corporation, governmental or other business organization, is organized under the laws of the United States or any political subdivision thereof; and (ii) is not an Affiliate of the Originators or the Funding Seller. The telephone number related to the Receivable relates to one of the Designated States.

		
	(f)
	The Receivable is denominated and payable in USD in the United States.

		
	(g)
	The Receivable is not overdue by more than 30 days or an Aged Receivable.

		
	(h)
	The Receivable arises pursuant to a Contract with respect to which the applicable Originator has performed all obligations in all material respects required to be performed by it thereunder in order to have such Receivable become due and payable, including delivery of a bill to the applicable Obligor.

		
	(i)
	The Receivable:

		
	(i)
	is an “account” or “general intangible” within the meaning of Article 9 of the UCC; 

		
	(ii)
	is a right to payment of a monetary obligation for goods or  services rendered or to be rendered to Obligor; and 

		
	(iii) 
	is not evidenced or otherwise payable by a promissory note, a bill of exchange or other instrument. 

		
	(j)
	The Receivable, together with the contract related thereto, does not contravene any laws applicable thereto (including laws relating to truth in lending, cost of credit disclosure, fair credit billing, equal credit opportunity, fair debt collection practices and privacy).

		
	(k)
	The Receivable was originated in accordance with and satisfies in all material respects all applicable requirements of the Credit and Collection Policies.

		
	(l)
	The terms of the underlying Contract with respect to the Receivable do not expressly permit the related Obligor to exercise any right of set-off with respect thereto.

		
	(m)
	The Receivable is not a Restricted Receivable.

A-3-1

		
	(n)
	The Receivable has been originated by an Originator and validly sold or contributed by such Originator to the Funding Seller with the result that such Funding Seller has good and marketable title thereto (together with the Collections and Related Rights related thereto), free and clear of all Adverse Claims.

		
	(o)
	The Receivable is in full force and effect and constitutes the legal, valid and binding obligation of the related Obligor, enforceable against such Obligor in accordance with its terms except as such enforcement against such Obligor may be limited by any applicable insolvency law or by general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law), in each case, under all applicable law, and is, not subject to any litigation, offset, counterclaim or other defense.

		
	(p)
	The Receivable was originated in the ordinary course of the applicable Originator’s business and represents the purchase price of “subscriber / air time” services sold by such Originator.

		
	(q)
	The Receivable has not been compromised, altered, adjusted or modified for credit reasons nor is it subject to any downward adjustment for Taxes, rebates or other reasons (including by the extension of time for payment or the granting of any discounts, allowances or credits), in each case, other than as permitted or required by the Credit and Collection Policies.

		
	(r)
	The disclosure of information necessary to permit the Funding Seller or its assigns to enforce such Receivable against the related Obligor would not result in the breach of any law, agreement (including the underlying Contract), judgment or other instrument by which the related Originator or the Funding Seller is bound.

		
	(s)
	At the Closing Date, the Obligor with respect to the Receivable is not the Obligor with respect to any Overdue Receivable payment for which is more than 30 days past due. 

		
	(t)
	If purchased, such Receivable does not relate to Charges which would cause the percentage of the Charges related to Purchased Receivables billed in the related Collection Period to all Obligors that are individuals to be less than 51%.

		
	(u)
	If purchased, such Receivable does not relate to Charges which would cause the percentage of the Charges related to Purchased Receivables billed in the related Collection Period to all Obligors that are commercial Obligors to exceed 25% or the Obligors that are governmental entities to exceed 5%.

		
	(v)
	If purchased, such Receivable does not relate to Charges which would cause the percentage of the Charges related to Purchased Receivables billed in the related Collection Period to all Obligors who are identified by the Funding Seller and the Bank Purchasing Agent as “subprime” (Obligors who are not considered part of the ABCL Credit Classes) to exceed 40% on more than two (2) consecutive Settlement Dates.

		
	(w)
	Such Receivable is not subject to any Adverse Claim (other than Adverse Claims arising pursuant to the Transaction Documents) or Subject to Defenses.

		
	(x)
	The Funding Seller is not aware of any claims or other facts or circumstances that could result in such Receivable, in whole or in part, becoming subject to any Adverse Claims (other than Adverse Claims arising pursuant to the Transaction Documents) or Subject to Defenses for more than two consecutive Settlement Dates.

		
	(y)
	The Funding Seller has all necessary rights in such Purchased Receivable required for the Funding Seller to sell and assign such Receivable to the Purchaser pursuant to this Agreement.

A-3-2

		
	(z)
	The related Originator shall have complied with all Requirements of Law in connection with the origination of such Receivable.

		
	(aa)
	The related Originator shall have complied in all material respects with the related Contract in connection with the origination of such Receivable.

		
	(bb)
	All sales, excise or other taxes with respect to such Receivable shall have been paid to the applicable taxing authority when due other than those being contested in good faith.

		
	(cc)
	If purchased, the Outstanding Balance of such Receivable would not cause the Average of the Nominal Value of all Receivables purchased hereunder during the then-current Collection Period and the two immediately preceding Collection Periods to exceed the Maximum Sales Amount.

		
	(dd)
	If purchased, such Receivable does not relate to Charges which would cause the percentage of the Charges related to Purchased Receivables billed in the related Collection Period related to CCPC codes in any Designated State to exceed the maximum percentage specified below on more than two (2) consecutive Settlement Dates.

	
		
	State 
	Maximum Percentage 

	MS
	0.50%

	ND
	0.10%

	SD
	0.10%

	VT
	0.10%

	AR
	0.25%

	IA
	0.25%

	KY
	1.50%

	NC
	3.00%

	WV
	0.25%

	WY
	0.25%

	ME
	0.50%

	TN
	2.00%

	DE
	1.00%

	ID
	1.00%

	LA
	1.00%

	NH
	1.00%

	SC
	2.50%

	WI
	1.00%

	AL
	5.00%

	CO
	5.00%

	CT
	5.00%

	DC
	5.00%

	HI
	5.00%

	IN
	5.00%

	KS
	5.00%

	MA
	5.00%

	MD
	5.00%

	MI
	5.00%

	MO
	5.00%

	NM
	5.00%

A-3-3

	
		
	NV
	5.00%

	OH
	5.00%

	OK
	5.00%

	OR
	5.00%

	RI
	5.00%

	UT
	5.00%

	VA
	5.00%

	MN
	5.00%

	PA
	5.00%

	AZ
	5.00%

	GA
	10.00%

	NJ
	10.00%

	WA
	10.00%

	IL
	10.00%

	FL
	15.00%

	NY
	15.00%

	TX
	20.00%

	CA
	25.00%

		
	(ee)
	Such Receivable does not relate to Partner Branded Services, Flexpay or No Credit Family Plans, as each of such terms is used or defined in the books and records of the Originators. 

		
	(ff)
	The Obligor of such Receivable is not a Sanctioned Person (as such term is defined in Article 27).

		
	(gg)
	The Invoice type shall be “J-Assurant jump premiums” or “B-Service”.

		
	(hh)
	Such Receivable at the time of its sale hereunder shall not be an EPS Receivable; it being agreed and understood that if, at any time, a Purchased Receivable shall become an EPS Receivable, such Purchased Receivable shall immediately cease to be, for all purposes hereunder and under the other Transaction Documents, an Eligible Receivable.

A-3-4

ANNEX 4
ORIGINATORS
	
			
	Name
	Jurisdiction of Organization
	Address

As of the Closing Date:
	
			
	T-Mobile West LLC
	Delaware
	12920 SE 38th Street
Bellevue, Washington 98006

	T-Mobile Central LLC
	Delaware
	12920 SE 38th Street
Bellevue, Washington 98006

	T-Mobile Northeast LLC
	Delaware
	12920 SE 38th Street
Bellevue, Washington 98006

	T-Mobile South LLC
	Delaware
	12920 SE 38th Street
Bellevue, Washington 98006

As of the November 2014 Amendment Effective Date:

	
			
	Powertel/Memphis, Inc.
	Delaware
	12920 SE 38th Street
Bellevue, Washington 98006

	Triton PCS Holdings Company L.L.C.
	Delaware
	12920 SE 38th Street
Bellevue, Washington 98006

As of the January 2015 Amendment Effective Date:

	
			
	SunCom Wireless Operating Company, L.L.C.
	Delaware
	12920 SE 38th Street
Bellevue, Washington 98006

A-4

ANNEX 5
CONDITIONS PRECEDENT TO EACH PURCHASE
Each purchase of Purchased Receivables shall be subject to the conditions precedent that:
(a)    the Servicer shall have delivered to the Bank Purchasing Agent on or prior to such purchase, in form and substance reasonably satisfactory to the Bank Purchasing Agent, a completed Monthly Report containing information covering the most recently ended Collection Period; and 
(b)    on the date of such purchase the following statements shall be true (and acceptance of the proceeds of such purchase shall be deemed a representation and warranty by the Funding Seller that such statements are then true):
(i)    the representations and warranties contained in Article 6 are true and correct in all material respects on and as of the date of such purchase as though made on and as of such date; and
(ii)    no Termination Event has occurred or would be caused to occur by such purchase. 

A-5

ANNEX 6
FORM OF MONTHLY REPORT

See attached.

A-6

ANNEX 7
SCOPE OF ACCOUNTANT’S REPORT
Scope of Services:
		
	•
	Review whether the selected sample of Receivables meet the Eligibility Criteria as described in Annex 3 of the Master Receivables Purchase Agreement

		
	•
	Review whether the selected sample of Receivables assigned by the Funding Seller are stated as being assigned to the Purchaser in the Funding Seller’s accounts

		
	•
	Review whether the payments for the selected sample of Purchased Receivables have been applied appropriately

		
	•
	Select a sample of Monthly Reports and re-perform calculations contained therein

Procedures
		
	•
	Sample selection: The adherence to the Eligibility Criteria shall be verified by means of a generally accepted procedure, with a sample size of Purchased Receivables that is mutually agreed upon by the Bank Purchasing Agent and the Servicer. We will use random selection applied through a random number generator as a generally accepted non-statistical sampling method to select the sample of Purchased Receivables.

		
	•
	Review whether EPS Receivables are being properly identified and calculated for purposes of the limitation in Section 3.2(b) of the Master Receivables Purchase Agreement

		
	•
	Such other reasonable procedures that are agreed upon by the Bank Purchasing Agent and the Servicer

A-7

ANNEX 8
T-MOBILE INFORMATION
DATA CONFIDENTIALITY PROVISIONS

1.CONFIDENTIALITY AND SECURITY. Notwithstanding anything to the contrary stated herein (including Section 12), the parties acknowledge and agree as follows:
1.1Confidentiality. The parties acknowledge and agree that the Bank Purchasing Agent may be given access to T-Mobile Information under this Agreement. The Servicer shall mark such medium as containing T-Mobile Information. Until the Final Termination Date and for so long as the Bank Purchasing Agent has T-Mobile Information, the Bank Purchasing Agent shall: (a) use at least the same degree of care to prevent unauthorized use and disclosure of such T-Mobile Information as that party uses with respect to its own Confidential Information (but in no event less than a reasonable degree of care); and (b) use such T-Mobile Information only in the performance of its rights and obligations under this Agreement. Following the Final Termination Date, at the request of the Funding Seller, the Bank Purchasing Agent shall return, or at the Bank Purchasing Agent’s option, destroy (and certify in writing such return or destruction) any and all T-Mobile Information received by it pursuant to this Agreement, provided that, notwithstanding the foregoing, the Bank Purchasing Agent may retain such copies of T-Mobile Information as it is required to retain to comply with its internal compliance policies or in accordance with applicable law. The Bank Purchasing Agent shall hold any such retained T-Mobile Information in accordance with the terms of this Agreement. This Section 1.1 shall survive termination of the Agreement.  T-Mobile Information is Confidential Information of the T-Mobile Group under this Agreement; provided however that T-Mobile Information shall remain confidential and proprietary even if disclosed by a third party or in breach of the terms of this Agreement.
1.2Handling of T-Mobile Information. Bank Purchasing Agent: (a) may collect, store, access, use, process, maintain and disclose T-Mobile Information only to fulfill its obligations and exercise its rights and remedies under the Agreement and for no other purpose; and (b) shall, without limiting any other obligations applicable to T-Mobile Information hereunder, treat all T-Mobile Information as Confidential Information of T-Mobile Group. For purposes of this Annex, the acts or omissions of Bank Purchasing Agent and any Person to whom  it has disclosed T-Mobile Information are Bank Purchasing Agent’s acts or omissions.
1.3Security Safeguards. Bank Purchasing Agent is fully responsible for any authorized or unauthorized collection, storage, disclosure and use of, and access to, T-Mobile Information received by it pursuant to this Agreement. Bank Purchasing Agent shall not permit any collection, storage, disclosure or use of, or access to, T-Mobile Information that this Agreement does not expressly authorize. Bank Purchasing Agent shall implement and maintain a written information security program that contains administrative, technical, and physical safeguards (“Safeguards”) appropriate to its business and the protection of T-Mobile Information received by it. Bank Purchasing Agent’s information security program shall meet common industry practices for such Safeguards, including, without limitation, complying with all applicable laws governing the security and handling of T-Mobile Information by Bank Purchasing Agent. Such information security program shall include, without limitation: (a) adequate physical security of all premises in which T-Mobile Information will be processed and/or stored; (b) reasonable precautions taken with respect to the employment of, and access given to, Bank Purchasing Agent personnel, including, without limitation, background checks, training, disciplinary measures, and security clearances that assign specific access privileges to individuals; and (c) an appropriate network security program. Such network security program will include, without limitation: (i) appropriate access controls and data integrity controls; (ii) monitoring, testing and auditing of all controls; and (iii) appropriate corrective action and incident response plans.
1.4Contractors and Subcontractors. Bank Purchasing Agent shall ensure that only approved contractors and subcontractors (including any subsidiary, parent, affiliate or partner) who have a need to know of the T-Mobile Information may access such information, and only if Bank Purchasing Agent requires such contractors and

A-8-1

 subcontractors to comply with obligations with respect to T-Mobile Information. Bank Purchasing Agent must use at least the same effort, but in no event less than a reasonable amount of effort, to enforce obligations of such individuals with regard to T-Mobile Information as Bank Purchasing Agent uses for its own similar confidential information.
1.5(Reserved)
1.6Security Breaches.
(a)(Reserved)
(b)Bank Purchasing Agent shall, promptly after confirmation thereof, notify Funding Seller of any actual, probable or reasonably suspected breach of any safeguards or of any other actual, probable or reasonably suspected unauthorized access to, or acquisition, use, loss, destruction, compromise or disclosure of, any T-Mobile Information maintained on the Bank Purchasing Agent Systems (each, a “Security Breach”). In any notification to  Funding Seller required under this Section 1, Bank Purchasing Agent shall designate a single individual employed by Bank Purchasing Agent who must be available to Funding Seller  during regular business hours of the Pre-Approved Facility (defined below) as a contact regarding Bank Purchasing Agent’s obligations under this Section 1. Bank Purchasing Agent shall: (i) unless prohibited by applicable law, court order or similar legal process, provide reasonable assistance to the Funding Seller in investigating, remedying and taking any other reasonable action Funding Seller deems necessary regarding any Security Breach and any dispute, inquiry or claim that concerns the Security Breach; and (ii) shall provide Funding Seller with assurance reasonably satisfactory to Funding Seller that such Security Breach or potential Security Breach will not recur. Unless prohibited by an applicable law,  court order or similar legal process, Bank Purchasing Agent shall also notify Funding Seller of any third-party legal process relating to any Security Breach, including, without limitation, any legal process initiated by any governmental entity (foreign or domestic).
1.7Information Security Vendor Assessments, Annual Security Audits & Visitation and Inspection Rights.
(a)Information Security Vendor Assessment (“ISVA”). Funding Seller reserves the right to require Bank Purchasing Agent to complete T-Mobile Group’s ISVA process once per year. Funding Seller may request additional security controls or mitigations plans be implemented and maintained by Bank Purchasing Agent with respect to the T-Mobile Information based on results of an ISVA.
1.8Access Limitations. Bank Purchasing Agent shall ensure that no persons who have access to T-Mobile Information provided or made accessible to Bank Purchasing Agent under this Agreement are listed on: (a) the Specially Designated Nationals and Blocked Persons list maintained by the U.S. Treasury, Office of Foreign Assets Control; (b) the Denied Persons or Denied Entities lists maintained by the U.S. Department of Commerce, Bureau of Industry and Security; (c) the Debarred Persons List maintained by the U.S. Department of State, Office of Defense Trade Controls; (d) any successors to the foregoing; or (e) any similar official public lists maintained by any agency of the U.S. government with which financial institutions operating in the United States are required to comply. Bank Purchasing Agent will ensure that all T-Mobile Information resides in the United States, unless approved in writing in advance by Funding Seller. Bank Purchasing Agent shall securely store all T-Mobile Information separate from other information of Bank Purchasing Agent or Bank Purchasing Agent’s other customers. Bank Purchasing Agent must first obtain prior written approval from Funding Seller for any deviation from this requirement. 
1.9(Reserved)
1.10Additional Obligations. Bank Purchasing Agent agrees as follows: 
(a)Bank Purchasing Agent shall not store T-Mobile Information, or any other subscriber information, including, without limitation, call transactional data, call associated data, call identifying data, subscriber information and subscriber billing records (collectively, “Subscriber Information”) outside of the United States 

A-8-2

without Funding Seller’s prior written consent, which may be withheld for no reason, or any reason, in Funding Seller’s sole and absolute discretion. Bank Purchasing Agent is expressly permitted to access and store all Subscriber Information necessary to fulfill its obligations and exercise its rights and remedies under this Agreement in Bank Purchasing Agent’s New York Branch located in New York, New York, USA (a “Pre-Approved Facility”) for the term of this Agreement. 
(b)Bank Purchasing Agent shall provide Funding Seller with at least thirty (30) calendar days’ prior written notice of its desire to store Subscriber Information in another location different from the Pre-Approved Facilities, including description of the communications and/or information, identification of the custodian, identification of the proposed location where the communications and/or information would be stored; and identification of the factors it considered in seeking to store the communications and/or information outside of the Pre-Approved Facilities.
(c)(Reserved)
(d)(Reserved)
(e)(Reserved)
(f)(Reserved)
(g)Bank Purchasing Agent shall not disclose Subscriber Information to any foreign government or entity without first, (a) satisfying all applicable U.S. federal, state and local legal requirements, including, if required, receiving appropriate authorization by a domestic U.S. court, or receiving prior written authorization from the U.S. Department of Justice, (b) to the extent not prohibited by law, rule, regulation or court order applicable to the Bank Purchasing Agent (i) notifying Funding Seller of the request for such information within five (5) calendar days of its receipt and (ii) reasonably cooperating with Funding Seller to object to and commence appropriate proceedings to protect the information;]
1.11T-Mobile Information and Bank Purchasing Agent Access. 
(a)T-Mobile Information. Bank Purchasing Agent shall receive the following T-Mobile Information under this Agreement for the Purchased Receivables on a monthly basis :
(i)T-Mobile billing account number;
(ii)T-Mobile invoice ID number;
(iii)T-Mobile invoice due date;
(iv)T-Mobile invoice date;
(v)T-Mobile sold amount for the Purchased Receivables; and
(vi)T-Mobile Balance for the Purchased Receivables.
(b)Access Protocol. The T-Mobile Information provided to the Bank Purchasing Agent will be made available through a secured file transfer protocol (“SFTP”) website on the T-Mobile network. Bank Purchasing Agent will be provided with authentication and login credentials by  Funding Seller or its affiliates to access the SFTP website and securely obtain the T-Mobile Information. In addition, Funding Seller or its affiliates will provide Bank Purchasing Agent with an email notice monthly when new T-Mobile Information has been posted to the SFTP website and is available to be accessed by the Bank Purchasing Agent.

A-8-3

ANNEX 9
FORM OF DT PAYMENT GUARANTEE
		
	(A)
	We refer to that certain Master Receivables Purchase Agreement, dated as of February 26, 2014, by and among T-Mobile US, Inc. (“TMUS”), T-Mobile PCS Holdings LLC (“PCS” or the “Servicer”), T-Mobile Airtime Funding LLC (the “Funding Seller”), Billing Gate One LLC (“Billing Gate One”), and Landesbank Hessen-Thüringen Girozentrale (“Helaba”) in its capacity as “Bank Purchasing Agent” thereunder (as amended, restated, supplemented or otherwise modified from time to time, the “Master Receivables Purchase Agreement”); and that certain Onward Receivables Purchase Agreement, dated as of February 26, 2014, by and among Billing Gate One, the “Bank Purchasers” from time to time party thereto, and the Bank Purchasing Agent (as amended, restated, supplemented or otherwise modified from time to time, the “Onward Receivables Purchase Agreement”). The transactions contemplated by the Master Receivables Purchase Agreement, the Onward Receivables Purchase Agreement and the other Transaction Documents (as such term is defined in the Master Receivables Purchase Agreement) are collectively referred to herein as the “Transaction.”  Each capitalized term that is used, but not defined herein, shall have the meaning prescribed by the Master Receivables Purchase Agreement and/or the Onward Receivables Purchase Agreement.

		
	(B)
	This guarantee (this “Guarantee”) is the “DT Payment Guarantee” (as such term is defined in the Master Receivables Purchase Agreement), and is being delivered to each of the Purchasing Entities in connection with Section 11.4(i) of the Master Receivables Purchase Agreement.

We, Deutsche Telekom AG, a corporation (Aktiengesellschaft) incorporated under the laws of Germany, registered in the commercial register kept at the local court of Bonn, Germany, under registration number HRB 6794, with its business address at Friedrich-Ebert Allee 10, 53113 Bonn (the “Guarantor”), hereby irrevocably issue this Guarantee in favor of each of the Purchasing Entities (A) as of the date hereof (which, as of the date hereof, include Billing Gate One LLC as the “Purchaser” under the Master Receivables Purchase Agreement, Helaba as the “Bank Purchasing Agent” and each of [current Bank Purchasers] as a “Bank Purchaser”) and (B) from time to time after the date hereof, under the terms and conditions set forth below:
		
	1.
	Guarantee

		
	1.1
	The Guarantor:

		
	(a)
	hereby irrevocably, absolutely and unconditionally guarantees to each of the Purchasing Entities, severally and jointly, as a continuing obligation, the payment of any obligation owing by any member of the T-Mobile Group under the Transaction Documents, whether or not such obligation shall be owed directly or indirectly to any of the Purchasing Entities pursuant thereto (the “Guaranteed Obligations”), which obligations shall include, but not be limited to, the following:

		
	(i)
	all of the obligations of the Servicer related to the servicing of the Purchased Receivables, the Related Rights, Collections and other funds pursuant to the Transaction Documents;

		
	(ii)
	all of the respective obligations of any member of the T-Mobile Group related to (1) the sale of Receivables and Related Rights, (2) the segregation and application of Collections and the repurchase of Receivables by the Funding Seller, (3) excess Dilutions and breaches of representations or warranties concerning the Receivables, and (4) the monthly settlement or other periodic settlement of transactions under the Transaction Documents contemplated by, among other sections of the Transaction Documents, Article 2 of the Master Receivables Purchase Agreement; and

A-9-1

		
	(iii)
	without limiting the foregoing, the payment when due (from Collections or otherwise), in accordance with the terms of the Transaction Documents, of any amount, other than any amount attributable to an Excluded Amount (as such term is defined below), that may be payable by a member of the T-Mobile Group pursuant to the Transactions, including, without limitation, any and all of the Indemnified Amounts contemplated by Article 9 of the Master Receivables Purchase Agreement and any amount payable by the Performance Guarantor pursuant to Section 19 of the Master Receivables Purchase Agreement; and

		
	(b)
	undertake to pay upon demand any amount owed by any member of the T-Mobile Group as a Guaranteed Obligation.

For purposes of this Guarantee, the term “Excluded Amount” shall mean, with respect to any Batch, and for each Settlement Date, the maximum amount of the portion of the Allocated Write-Off Amount for such Batch that is intended to be allocated to, and borne by, the Funding Seller on such Settlement Date pursuant to Section 5.3 of the Master Receivables Purchase Agreement; it being agreed and understood (for the avoidance of doubt) that, for each Batch and each Settlement Date, the “Excluded Amount” related thereto shall be its Maximum Batch Mandatory Repurchase Amount for such Settlement Date.
		
	1.2
	Each of the Purchasing Entities, acting severally, or one or more of the Purchasing Entities, acting jointly, from time to time, shall be entitled to make one or more demands for payment under this Guarantee. Each demand for payment must be signed by its or their legal representative(s) or authorized representative(s). It is agreed and understood that the Bank Purchasing Agent itself shall be entitled to make demands on behalf of one or more of the other Purchasing Entities. Any demand hereunder shall be made in writing (without the requirement that any demands or remedies be made or exercised, or any other steps be taken, previously against any member of the T-Mobile Group or any other Person). Any payment to be made by the Guarantor hereunder shall be made after the making of any such demand within three (3) days on which banks are open for general business in Düsseldorf, Germany, and Frankfurt am Main, Germany (each a “Banking Day”).

		
	1.3
	We have received a copy of each of the Transaction Documents and are aware of their entire contents. We are also aware that the provisions of such agreements are only binding upon the Purchasing Entities and certain of the members of the T-Mobile Group, whereas our rights and obligations are set out exhaustively in this Guarantee. 

		
	1.4
	We shall not be entitled to any right to set-off or counterclaim whatsoever. All payments under this Guarantee shall be made free from any withholding or deduction.

		
	1.5
	This Guarantee shall apply with regard to the Transaction as amended or varied from time to time (which may be without our consent, except as may be expressly provided therein). We hereby authorize the parties to the Transaction Documents to agree to any such amendment or variation, the due performance of which and compliance with which by the members of the T-Mobile Group are likewise guaranteed hereunder. Our obligations and liabilities under this Guarantee shall not be discharged by any allowance of time or other indulgence whatsoever by any of the Purchasing Entities to any member of the T-Mobile Group, or by any variation or suspension of the obligations to be performed under the Transaction, or by any amendments to any of the Transaction Documents or to the constitution of any party to the Transaction, or by any Bankruptcy Event with respect to any party to the Transaction, or by any other matters, whether with or without our knowledge or consent. 

		
	1.6
	Unless otherwise specified in a Purchasing Entity’s written demand, all amounts payable hereunder by us shall be paid to: [refer to relevant accounts in the Transaction Documents].

A-9-2

		
	2.
	Maximum Liability

The Guarantor’s maximum liability pursuant to this Guarantee shall be limited to the amount of EUR [the amount that shall equal 110% of the Funding Limit at the issuing date of the guarantee], less any amount paid by the Guarantor pursuant to this Guarantee (the “Maximum Amount”). 
		
	3.
	Validity Period

The validity period of this Guarantee shall commence on [Date]/[the date hereof] and shall end on the later date of (A) 2 years and 9 months after the Master Receivables Purchase Agreement shall have come into force and (B) the Final Termination Date under the Master Receivables Purchase Agreement (the “Expiry Date”).
		
	4.
	Assignment

		
	4.1
	This Guarantee shall be effective for the benefit of each of the Purchasing Entities and their respective successors, assignees, and any other company with which any of them may at any time amalgamate. We and our successors shall be bound by this Guarantee notwithstanding any change in our constitution or status or any of our successors.

		
	4.2
	We may not assign all or part of our rights or transfer or novate all or part of our obligations under this Guarantee to another party without the prior written consent of each of the Purchasing Entities. 

		
	5.
	Communications

		
	5.1
	Any notice required to be given by a party shall be sent to the other party’s address or facsimile number given herein or such other address or facsimile number as may from time to time be notified for this purpose. The initial addresses and telefax numbers of the parties are:

	
				
	 
	The Purchasing Entities
	:
	[Purchasing Entities]

	 
	 
	 
	 

	 
	Fax Number
	:
	[l]

	 
	 
	 
	 

	 
	Address
	:
	[l]

	 
	 
	 
	 

	 
	Attention
	:
	[l]

	 
	 
	 
	 

	 
	The Guarantor
	:
	Deutsche Telekom AG

	 
	 
	 
	 

	 
	Fax Number
	:
	[l]

	 
	 
	 
	 

	 
	Address
	:
	[l]

	 
	 
	 
	 

	 
	Attention
	:
	[l]

		
	5.2
	Any such notice shall be deemed to have been served:

		
	(a)
	if delivered by hand, when left at the address required by this clause 4; or

		
	(b)
	if posted by prepaid ordinary mail or by prepaid registered letter, at the expiration of three (3) Banking Days after posting thereof; or

A-9-3

		
	(c)
	if sent by facsimile and received in readable form, upon the receipt by the sender of the transmission report indicating that the notice has been sent in full to the recipient’s facsimile machine, or such other similar medium of receipt; or

		
	(d)
	if sent by courier, at the expiration of three (3) Banking Days after the package containing the same shall have been received by the relevant courier company.

		
	6.
	Miscellaneous

		
	6.1
	The validity of the remaining provisions of this Guarantee shall not be affected if any particular provision or provisions of this Guarantee or any Transaction Document is or are properly declared illegal, unenforceable or contrary to law or public policy or if a gap in this Guarantee becomes evident and regardless of the value of any collateral provided to the beneficiaries hereof or the release or exchange of any such collateral. In the event that as a result of such declaration or gap any of the rights or obligations of a party are materially affected, the parties shall meet and negotiate in good faith in order to arrive at an amendment of this Guarantee that will as closely as possible reflect what the parties would have intended if they had considered the point at the time of conclusion of this Guarantee. If the parties after such consultations do not agree upon an appropriate amendment to this Guarantee, there shall be deemed to exist a dispute that may be referred to legal proceedings. 

		
	6.2
	The Guarantor waives any right it may have of first requiring any of the beneficiaries hereunder to proceed against, or enforce any other rights or security or claim from, any person before claiming from it under this Guarantee. This waiver applies irrespective of any non-mandatory law or any provision of this Guarantee or any Transaction Document to the contrary. 

		
	6.3
	Without limiting the generality of the foregoing, it is agreed that the occurrence of any one or more of the following shall not alter or impair the liability of the Guarantor hereunder, which shall remain absolute and unconditional as described above: 

		
	(i)
	at any time or from time to time, without notice to the Guarantor, the time for any performance of or compliance with any of the obligations of any member of the T-Mobile Group under the Transaction Documents shall be waived;

		
	(ii)
	any of the acts mentioned in any of the provisions of the Transaction Documents shall be done or omitted;

		
	(iii)
	any of the Deutsche Telekom Guaranteed Obligations shall be modified, supplemented or amended in any respect, or any right under any Transaction Document shall be waived or any of the Deutsche Telekom Guaranteed Obligations or any security therefore shall be released or exchanged in whole or in part or otherwise dealt with; or 

		
	(iv)
	any lien or security interest granted to, or in favor of, any of the beneficiaries hereunder as security for the Deutsche Telekom Guaranteed Obligations shall fail to be effective or perfected.

The Guarantor hereby expressly waives diligence, presentment, demand of payment, protest and all notices whatsoever, and any requirement that any of the beneficiaries hereunder exhaust any right, power or remedy or proceed against any member of the T-Mobile Group or against any other Person under any other agreement, or guarantee of, or security for, any of the Deutsche Telekom Guaranteed Obligations.
		
	6.4
	The obligations of the Guarantor under this Guarantee shall be automatically reinstated if and to the extent that for any reason any payment by or on behalf of any member of the T-Mobile Group under any 

A-9-4

Transaction Document is rescinded or must otherwise be restored by any holder of any of the Deutsche Telekom Guaranteed Obligations, whether as a result of any proceedings in bankruptcy or reorganization or otherwise, and the Guarantor agrees that it will indemnify each of the beneficiaries hereunder on demand for all reasonable costs and expenses (including, without limitation, fees of counsel) incurred by it or them in connection with such rescission or restoration, including any such costs or expenses incurred in defending against any claim alleging that such payment constituted a preference, fraudulent transfer or similar payment under any bankruptcy, insolvency or similar law.
		
	6.5
	The Guarantor hereby waives its right to take recourse (Rückgriffrecht) against any member of the T-Mobile Group resulting from any demand under this Guarantee until the Guaranteed Obligations have been fully and finally discharged.

		
	6.6
	The Guarantor agrees that, as between the Guarantor and the beneficiaries hereunder, the obligations of any member of the T-Mobile Group under any Transaction Document may be declared to be forthwith due and payable as provided therein (and shall be deemed to have become automatically due and payable as provided therein) for the purposes hereof notwithstanding any stay, injunction or other prohibition preventing such declaration (or such obligations from becoming automatically due and payable) as against such member of the T-Mobile Group and that, in the event of such declaration (or such obligations being deemed to have become automatically due and payable), such obligations (whether or not due and payable by any member of the T-Mobile Group, as applicable) shall forthwith become due and payable by the Guarantor hereunder.

		
	6.7
	This Guarantee is a continuing guarantee, and shall apply to all Deutsche Telekom Guaranteed Obligations whenever arising.

		
	6.8
	This Guarantee shall be governed by, and construed in accordance with the laws of, Germany. The courts of Frankfurt am Main, Germany, shall have non-exclusive jurisdiction to settle any dispute or claim that arises out of or in connection with this Guarantee.

	
		
	DEUTSCHE TELEKOM AG
	 

	 
	 

	 
	 

	__________________________________
	__________________________________

	Name:
	Name:

	Title:
	Title:

For and on behalf of Deutsche Telekom AG

A-9-5

ANNEX 10

TEMPLATE FOR INVOICES ON SERVICER FEE TO BE ISSUED BY SERVICER SEPARATELY TO EACH BANK PURCHASER PURSUANT TO SECTION 4.3(b)

See attached.

A-10

ANNEX 11

LEVEL 4 RESERVE PERCENTAGES ON PRIOR SETTLEMENT DATES

	
							
	Period
	End of Collection Period
	Settlement Date
	Level 4 Reserve Percentage
in current month (t=0)
	Applied rate for t=1 through t=3

	0
	25-Feb-14
	03-Mar-14
	5.14%
	 
	 
	 

	1
	31-Mar-14
	14-Apr-14
	5.14%
	5.14%
	 
	 

	2
	30-Apr-14
	12-May-14
	5.14%
	5.14%
	5.14%
	 

	3
	31-May-14
	12-Jun-14
	5.14%
	5.14%
	5.14%
	5.14%

	4
	30-Jun-14
	14-Jul-14
	5.83%
	5.14%
	5.14%
	5.14%

	5
	31-Jul-14
	12-Aug-14
	5.83%
	5.83%
	5.14%
	5.14%

	6
	31-Aug-14
	12-Sep-14
	5.83%
	5.83%
	5.83%
	5.14%

	7
	30-Sep-14
	14-Oct-14
	4.90%
	4.55%
	4.55%
	4.55%

	8
	31-Oct-14
	12-Nov-14
	4.90%
	4.90%
	4.55%
	4.55%

	9
	30-Nov-14
	12-Dec-14
	4.24%
	4.24%
	4.24%
	3.89%

	10
	31-Dec-14
	12-Jan-15
	4.24%
	4.24%
	4.24%
	4.24%

	11
	31-Jan-15
	12-Feb-15
	4.24%
	4.24%
	4.24%
	4.24%

	12
	28-Feb-15
	12-Mar-15
	4.24%
	4.24%
	4.24%
	4.24%

	13
	31-Mar-15
	13-Apr-15
	4.24%
	4.24%
	4.24%
	4.24%

	14
	30-Apr-15
	12-May-15
	4.24%
	4.24%
	4.24%
	4.24%

	15
	31-May-15
	12-Jun-15
	4.39%
	4.24%
	4.24%
	4.24%

	16
	30-Jun-15
	13-Jul-15
	4.39%
	4.39%
	4.24%
	4.24%

	17
	31-Jul-15
	12-Aug-15
	4.39%
	4.39%
	4.39%
	4.24%

	18
	31-Aug-15
	14-Sep-15
	4.99%
	4.39%
	4.39%
	4.39%

	19
	30-Sep-15
	13-Oct-15
	4.99%
	4.99%
	4.39%
	4.39%

	20
	31-Oct-15
	12-Nov-15
	3.75%
	3.75%
	3.75%
	3.75%

	21
	30-Nov-15
	14-Dec-15
	3.75%
	3.75%
	3.75%
	3.75%

	22
	31-Dec-15
	12-Jan-16
	3.75%
	3.75%
	3.75%
	3.75%

	23
	31-Jan-16
	12-Feb-16
	2.91%
	3.75%
	3.75%
	3.75%

	24
	29-Feb-16
	14-Mar-16
	2.91%
	2.91%
	3.75%
	3.75%

	25
	31-Mar-16
	12-Apr-16
	2.91%
	2.91%
	2.91%
	3.75%

	26
	30-Apr-16
	12-May-16
	2.91%
	2.91%
	2.91%
	2.91%

	27
	31-May-16
	13-Jun-16
	2.91%
	2.91%
	2.91%
	2.91%

	28
	30-Jun-16
	12-Jul-16
	2.91%
	2.91%
	2.91%
	2.91%

	29
	31-Jul-16
	12-Aug-16
	2.91%
	2.91%
	2.91%
	2.91%

	30
	31-Aug-16
	12-Sep-16
	2.91%
	2.91%
	2.91%
	2.91%

	31
	30-Sep-16
	12-Oct-16
	3.16%
	2.91%
	2.91%
	2.91%

	32
	31-Oct-16
	12-Nov-16
	3.16%
	3.16%
	2.91%
	2.91%

	33
	30-Nov-16
	12-Dec-16
	3.43%
	3.16%
	3.16%
	2.91%

	34
	31-Dec-16
	12-Jan-17
	3.43%
	3.43%
	3.16%
	3.16%

	35
	31-Jan-17
	13-Feb-17
	3.43%
	3.43%
	3.43%
	3.16%

	36
	28-Feb-17
	13-Mar-17
	3.43%
	3.43%
	3.43%
	3.43%

A-11home_Current folio_10Q_Q3FY17_Exhibit 10_1

		
			Exhibit 10.1
		

		
			 
		

		
			CO-BRAND AND PRIVATE LABEL CONSUMER
		

		
			CREDIT CARD PROGRAM AGREEMENT
		

		
			 
		

		
			 
		

		
			between
		

		
			 
		

		
			 
		

		
			 
		

		
			AT HOME STORES LLC
		

		
			 
		

		
			 
		

		
			 
		

		
			and
		

		
			 
		

		
			 
		

		
			 
		

		
			SYNCHRONY BANK
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			DATED AS OF
		

		
			 
		

		
			September 7, 2016
		

		
			 
		

		
			 
		

		
			 
		

		
			In this document, “[***]” indicates that confidential materials have been redacted from this document and filed separately with the Securities and Exchange Commission. 
		

		
			 
		

		
			 
		

		
			

		 

 

		

		
			TABLE OF CONTENTS
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE 1 PROGRAM ESTABLISHMENT AND RESPONSIBILITIES

					
1 
				
	
1.1 
					
					
						Establishment of the Program.

					
1 
				
	
1.2 
					
					
						Bank’s Responsibilities

					
1 
				
	
1.3 
					
					
						Company’s Responsibilities

					
2 
				
	
1.4 
					
					
						Network Rules.

					
4 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE 2 SETTLEMENT AND PAYMENT TERMS

					
5 
				
	
2.1 
					
					
						Settlement Procedures.

					
5 
				
	
2.2 
					
					
						Promotional Financing Plan Terms.

					
5 
				
	
2.3 
					
					
						Outside Interchange Fees.

					
7 
				
	
2.4 
					
					
						General Payment Terms

					
7 
				
	
2.5 
					
					
						In-Store Payments

					
7 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE 3 COMPENSATION

					
8 
				
	
3.1 
					
					
						Program Economics

					
8 
				
	
3.2 
					
					
						Allocation of Program Expenses

					
8 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE 4 RELATIONSHIP MANAGEMENT AND PROGRAM MARKETING

					
8 
				
	
4.1 
					
					
						Program Managers and Other Designated Bank Employees.

					
8 
				
	
4.2 
					
					
						Management Committee.

					
9 
				
	
4.3 
					
					
						Annual Marketing Plans

					
11 
				
	
4.4 
					
					
						Marketing Funds; Launch Fund.

					
11 
				
	
4.5 
					
					
						Responsibility of Company to Promote the Program

					
12 
				
	
4.6 
					
					
						Rewards Program.

					
13 
				
	
4.7 
					
					
						Cross-Selling

					
14 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE 5 PROGRAM ADMINISTRATION

					
14 
				
	
5.1 
					
					
						Ownership of Accounts

					
14 
				
	
5.2 
					
					
						Cardholder Terms

					
15 
				
	
5.3 
					
					
						Credit Criteria.

					
15 
				
	
5.4 
					
					
						Operating Procedures

					
15 
				
	
5.5 
					
					
						Inserts, Onserts and Billing Statement Messages.

					
16 
				
	
5.6 
					
					
						Third Party Participation

					
17 
				
	
5.7 
					
					
						Taxes.

					
17 
				
	
5.8 
					
					
						Use of Names and Marks.

					
18 
				
	
5.9 
					
					
						Securitization

					
19 
				
	
5.10 
					
					
						Extended Warranties; Gift Certificates; Stored Value Cards

					
20 
				
	
5.11 
					
					
						Audit and Compliance.

					
20 
				
	
5.12 
					
					
						Reserved.

					
23 
				
	
5.13 
					
					
						Application Channels

					
23 
				
	
5.14 
					
					
						Systems

					
23 
				
	
5.15 
					
					
						Form Factors and Account Functionality

					
23 
				

		 

		

			i

		

 

	
					
						

					
						ARTICLE 6 EXCLUSIVITY

					
24 
				
	
6.1 
					
					
						Exclusivity.

					
24 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE 7 CUSTOMER SERVICE, SERVICE LEVEL STANDARDS AND REPORTS

					
26 
				
	
7.1 
					
					
						Customer Service

					
26 
				
	
7.2 
					
					
						Service Level Standards

					
26 
				
	
7.3 
					
					
						Periodic Program Reports; Analytics.

					
26 
				
	
7.4 
					
					
						Company Financial Reports.

					
27 
				
	
7.5 
					
					
						Disaster Recovery Plan

					
28 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE 8 CHARGEBACKS

					
28 
				
	
8.1 
					
					
						Chargeback Rights

					
28 
				
	
8.2 
					
					
						Non-Company Purchase Chargebacks

					
29 
				
	
8.3 
					
					
						Settlement of Claims

					
29 
				
	
8.4 
					
					
						Delivery of Materials Regarding Chargebacks

					
29 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE 9 TERM AND TERMINATION

					
29 
				
	
9.1 
					
					
						Program Term

					
29 
				
	
9.2 
					
					
						Termination of Agreement

					
29 
				
	
9.3 
					
					
						Termination of Agreement by Company.

					
30 
				
	
9.4 
					
					
						Termination of Agreement by Bank

					
31 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE 10 EFFECTS OF TERMINATION

					
33 
				
	
10.1 
					
					
						General Effects.

					
33 
				
	
10.2 
					
					
						Purchase Option.

					
33 
				
	
10.3 
					
					
						Rights Upon Termination.

					
38 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE 11 REPRESENTATIONS AND WARRANTIES

					
39 
				
	
11.1 
					
					
						Representations and Warranties

					
39 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE 12 INDEMNIFICATION

					
40 
				
	
12.1 
					
					
						Indemnification by Bank

					
40 
				
	
12.2 
					
					
						Indemnification by Company

					
40 
				
	
12.3 
					
					
						Advertising Indemnity

					
41 
				
	
12.4 
					
					
						Indemnification Procedures.

					
41 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE 13 USE OF INFORMATION

					
42 
				
	
13.1 
					
					
						Ownership and Use of Cardholder Information

					
42 
				
	
13.2 
					
					
						Use and Disclosure of the Cardholder Information and Company Customer Information.

					
42 
				
	
13.3 
					
					
						Confidentiality.

					
45 
				
	
13.4 
					
					
						Privacy.

					
45 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE 14 MISCELLANEOUS

					
47 
				
	
14.1 
					
					
						Assignment; Delegation; Binding Effect

					
47 
				

		 

		

			ii

		

 

	
14.2 
					
					
						Intellectual Property

					
47 
				
	
14.3 
					
					
						Governing Law; Waiver of Jury Trial

					
47 
				
	
14.4 
					
					
						No Third Party Beneficiaries

					
47 
				
	
14.5 
					
					
						Relationship of the Parties

					
47 
				
	
14.6 
					
					
						Notices

					
48 
				
	
14.7 
					
					
						Nonwaiver; Remedies Cumulative; Severability

					
48 
				
	
14.8 
					
					
						Damages Waiver

					
48 
				
	
14.9 
					
					
						Entire Agreement; Amendments

					
49 
				
	
14.10 
					
					
						Executive Escalation; Dispute Resolution

					
49 
				
	
14.11 
					
					
						Further Assurances

					
50 
				
	
14.12 
					
					
						Survival

					
50 
				
	
14.13 
					
					
						Obligations Subject to Law

					
50 
				
	
14.14 
					
					
						Internet Gambling

					
50 
				
	
14.15 
					
					
						Bankruptcy Costs

					
51 
				
	
14.16 
					
					
						Multiple Counterparts

					
51 
				

		
			 
		

		
			List of Appendices AND Schedules
		

			
					
						 

					
					
						 

				
	
					
						Appendix A

					
					
						Definitions and Construction

				
	
					
						Schedule 1.1

					
					
						Competitive Retailers

				
	
					
						Schedule 2.2

					
					
						Promotional Financing Plans

				
	
					
						Schedule 3.1

					
					
						Program Economics

				
	
					
						Schedule 4.4

					
					
						Permitted Uses of Joint Marketing Fund and Launch Fund

				
	
					
						Schedule 4.7

					
					
						Approved Cross-Sell Offerings

				
	
					
						Schedule 5.2(a)

					
					
						Key Initial Cardholder Terms 

				
	
					
						Schedule 5.11

					
					
						Pre-Approval Process

				
	
					
						Schedule 7.2

					
					
						Service Level Standards

				
	
					
						Schedule 7.3

					
					
						Periodic Program Reports

				
	
					
						Schedule 8.1(e)

					
					
						Presentment Warranties

				
	
					
						Schedule 10.2(c)

					
					
						RFP Data

				
	
					
						Schedule 10.2(d)

					
					
						Assumptions for Determination of Fair Market Value

				
	
					
						Schedule 13.2(a)

					
					
						Cardholder Authorized Data

				

		
			 
		

		
			 
		

		
			

		 

		

			iii

		

 

		

		
			CO-BRAND AND PRIVATE LABEL CONSUMER 
		

		
			CREDIT CARD PROGRAM AGREEMENT
		

		
			 
		

		
			This Co-Brand and Private Label Consumer Credit Card Program Agreement (this “Agreement”) is made as of September 7, 2016 (the “Effective Date”), between At Home Stores LLC, a Delaware limited liability company, with its principal place of business at 1600 East Plano Parkway, Plano, Texas 75074 (“Company”), and Synchrony Bank, with its principal place of business at 170 Election Road, Suite 125, Draper, Utah 84020 (“Bank”).  Certain capitalized terms used in this Agreement are defined in the attached Appendix A.
		

		
			WHEREAS, Company sells home furnishings at retail.
		

		
			WHEREAS, among other things, Bank establishes programs to extend credit to consumers for the purchase of products from various merchants.
		

		
			WHEREAS, the parties hereto desire to enter into this Agreement pursuant to which Bank will provide a co-brand bankcard and a private label credit card program to approved consumer customers of Company.
		

		
			NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Company and Bank agree as follows:
		

		
			ARTICLE 1PROGRAM ESTABLISHMENT AND RESPONSIBILITIES
		

		
			1.1Establishment of the Program.
		

		
			(a)      Bank and Company are entering into this Agreement to establish a private label revolving consumer credit card program (“PLCC Program”) and a co-branded revolving consumer credit card program (“Co-Brand Program”) for the purpose of broadening and deepening Company’s relationship with customers who become Cardholders.  The PLCC Program and Co-Brand Program will be made available to approved consumers in the United States and its territories for the financing of purchases of products and services through the Company Sales Channels and, in the case of the Co-Brand Program, from other retailers at Non-Company Locations, all in accordance with the terms of this Agreement.  The PLCC Program and Co-Brand Program are collectively referred to as the “Program.”
		

		
			(b)      The Program is intended to be used by Cardholders for purchases made primarily for personal, family or household use and Bank and Company do not intend for credit to be extended under the Program for purchases made primarily for commercial or business purposes.
		

		
			(c)      The parties will use commercially reasonable efforts to cause the Program launch to occur by [***], or such other date as the parties may agree in writing (the “Program Commencement Date”); provided that if such date is not the beginning of a calendar month, then the Program Commencement Date will be deemed to be the beginning of the first full calendar month after such date. 
		

		
			1.2Bank’s Responsibilities.  During the Term of this Agreement, Bank’s responsibilities in conducting the Program include the following:
		

		
			(a)      Extend consumer credit to approved customers of Company in accordance with this Agreement, the Cardholder Agreements, and the Account terms established by Bank as provided for in Section 5.2.
		

		
			(b)      Work with Company in accordance with Section 5.8 to develop Credit Cards and other 

		 

		

			1

		

 

Company-branded Program Materials that meet Bank’s specifications.
		

		
			(c)      Produce and distribute to each Cardholder the applicable Cardholder Agreement, Credit Card and Credit Card carrier, and produce and deliver to Company at a central location, Application brochures (if any) and any Account opening documents.  The parties will work together in good faith to limit the use of paper Applications to the extent reasonably practicable within Store Locations.
		

		
			(d)      Establish and modify from time to time in accordance with Section 5.3 the credit criteria and risk management policies used to (i) evaluate Applications for Accounts, (ii) manage and collect Accounts, and (iii) assign and modify credit lines.
		

		
			(e)      Prepare and deliver customized, branded periodic billing statements.
		

		
			(f)      Provide toll free numbers for customer and store inquiries and respond to Cardholder service and billing inquiries and disputes.
		

		
			(g)      Without limiting the provisions of Sections 7.1 or 7.2, provide all necessary servicing for Accounts, including receiving and posting payments, collecting Accounts, and taking all further actions Bank deems necessary or appropriate in connection with Account administration.
		

		
			(h)      Ensure that all Cardholder Agreements, billing statements and solicitations conducted by Bank, and all of Bank’s activities in originating, servicing and administering Accounts, comply with Applicable Law.
		

		
			(i)      Maintain and operate the Bank Website in connection with the Program.
		

		
			(j)      Provide at least [***] prior written notice to Company, or such shorter notice as is reasonable under the circumstances, of [***]; provided, that, without limiting Company’s indemnification rights under Section 12.1, any failure by Bank to provide such notice shall not be deemed a breach or default by Bank hereunder for purposes of Section 9.2.
		

		
			(k)      Provide training to selected Company personnel (in accordance with Bank’s best practices) to allow Company, in turn, to provide training with respect to the Program to Company’s training and support staff.
		

		
			1.3Company’s Responsibilities.  During the Term of this Agreement, Company’s responsibilities in conducting the 
		

		
			
		

		
			

		 

		

			2

		

 

		

		
			Program include the following:
		

		
			(a)      In consultation with Bank, provide to Bank design elements meeting Bank’s specifications for use in producing Credit Cards and other Company-branded Program Materials.
		

		
			(b)      Accept Credit Cards for customer purchases from Company at all Company Sales Channels.  
		

		
			(c)      Train its personnel to properly fulfill Company’s responsibilities under the Program based on training provided by Bank.
		

		
			(d)      Perform its responsibilities under this Agreement and the Program (including as communicated by Bank pursuant to Section 1.2(j)), and conduct its activities as a retailer, including its policies, products, business, point of sale and sales practices (through all Company Sales Channels), and advertising, in all cases in compliance with Applicable Law.  Notwithstanding the foregoing or anything else in this Agreement to the contrary, Company will have no obligation under this Agreement to comply with Applicable Law and no liability hereunder for a failure to comply with Applicable Law in either case with respect to (x) the offering, originating, servicing or maintenance of Credit Cards or Accounts, or (y) the offering and presentation of Deferred Interest Promotion Plans at the point of sale (but specifically excluding Company’s advertising of Deferred Interest Promotion Plans, including all Company-Generated Materials, which shall be governed by Sections 5.11(f) and 12.3 and Schedule 5.11) or the servicing or maintenance of Deferred Interest Promotion Plans, if Bank has not (i) advised Company in writing of such compliance obligation, or (ii) included such obligation in the Operating Procedures, unless Company otherwise has actual knowledge of such requirement of Applicable Law.  The foregoing specifically excludes, and Company shall remain responsible for compliance with, Applicable Law applicable to any in-store operations of Company applicable to Company’s acceptance of credit cards for payment generally, the maintenance and security of Cardholder Information in the possession or control of Company or its service providers, and the offering of the Cardholder Loyalty Program (to the extent of Company’s obligations in connection therewith as set forth in Section 4.6). 
		

		
			(e)      Provide the relevant Bank-provided disclosures (i) to each in-person applicant before transmitting such applicant’s Application information to Bank, and (ii) to each Cardholder in connection with promotional credit transactions.
		

		
			(f)      Cooperate in the resolution of any Cardholder disputes; respond within 15 Business Days to any dispute forwarded to Company from Bank; and forward to Bank promptly after receipt by Company copies of any communication relating to an Account received from any person.
		

		
			(g)      Maintain a commercially reasonable policy for the exchange, return, and adjustment of products and services that is adequately communicated to customers and is in accordance with Applicable Law; notify Bank in advance of (if practicable), but in any event within 30 days after, any change in such return policy following the Effective Date; provide a credit to the applicable Account upon the exchange or return of a good or service financed on 
		

		
			
		

		
			

		 

		

			3

		

 

		

		
			such Account (but do not credit an Account in any case where the purchased good or service was not originally financed on an Account); and, include the resulting credit in the next transmission of Charge Transaction Data to Bank (but in no event more than one Business Day after the credit was issued). 
		

		
			(h)      Retain copies, in electronic or other retrievable format that complies with Applicable Law, of all charge slips, credit slips, and related documents for at least 25 months (or such longer period as may be required by Applicable Law); except as otherwise provided for herein in connection with disputes or chargebacks, provide copies of any of the foregoing to Bank within 20 days after Bank’s reasonable request; and, in consultation with Bank, produce and use charge slips and credit slips which are able to be captured and reproduced electronically via signature capture technology or other methods. 
		

		
			(i)      Not discriminate against any Cardholder or any person with respect to any Application or Account transaction; not charge any credit surcharge, application, processing or other fee in connection with any Application or Account transaction.  
		

		
			(j)      Only submit Charge Transaction Data in respect of products or services reasonably related to the types of products or services offered for sale by Company at Company Sales Channels as of the Effective Date (or as otherwise permitted hereunder).
		

		
			1.4Network Rules.
		

		
			(a)      Company has selected the initial Network for the Co-Brand Program, which is MasterCard, and represents to Bank that the agreement between such Network and Company has a term that is coextensive with the Term of this Agreement (including any Wind Down Period). Any such agreement between Company and the Network will not require or include any reimbursement obligations from Bank to such Network or otherwise alter Bank’s economic relationship with such Network.  Company will not change the Network during the Term unless the Network is in breach of any such agreement between such Network and Company.  If Company exercises its right to change the Network pursuant to the foregoing sentence, (i) Company will bear [***] in connection with the change, including all of Bank’s [***]; (ii) Company will reimburse Bank for, [***]; and (iii) if the parties hereto have so agreed, they will implement any [***] to the Program [***] the parties have determined are appropriate. The subsequent Network (as permitted herein) will be [***] unless otherwise agreed in writing by Bank.
		

		
			(b)      Company and Bank agree that all Co-Brand Credit Cards will be Network-branded cards and that the Co-Brand Program will be operated in accordance with the Network Rules.  If compliance with this Agreement would directly conflict with the Network Rules and the conflicting provision has not been resolved between Bank and the Network, this Agreement will be deemed modified to the extent necessary to comply with such directly conflicting Network Rules.  In the event of any such modification, the modified terms of this Agreement will preserve, to the extent practicable, the rights and obligations of the parties as contemplated by this Agreement.  If either party becomes aware of any material inconsistency between the Network Rules and this Agreement, such party will timely advise the other party of any such inconsistency. 
		

		
			
		

		
			

		 

		

			4

		

 

		

		
			ARTICLE 2SETTLEMENT AND PAYMENT TERMS
		

		
			2.1Settlement Procedures.
		

		
			(a)      Company will transmit Charge Transaction Data in respect of Purchases to Bank each Business Day and in accordance with the Operating Procedures.  If Charge Transaction Data is received by Bank’s processing center before 6:00 a.m. (Eastern) on any Business Day, Bank will process the Charge Transaction Data and initiate payment on the same Business Day.  If the Charge Transaction Data is received after 6:00 a.m. (Eastern) on any Business Day, or at any time on a day other than a Business Day, Bank will process the Charge Transaction Data and initiate payment on the following Business Day.  
		

		
			(b)      Subject to Bank’s rights under Section 10.2(a) and Section 2.1(d), Bank will, upon receipt, verification and processing of Charge Transaction Data during the Term, remit to Company’s designated account in respect of such Charge Transaction Data, an amount equal to (i) the total charges identified in such Charge Transaction Data less (ii) the sum of (A) the total amount of any credits included in such Charge Transaction Data; (B) any amounts charged back to Company pursuant to Article 8; and (C) at Bank’s option, any other amounts then owed by Company to Bank, including Merchant Discount Fees.  Bank will not be obligated to fund any Charge Transaction Data submitted by Company more than 30 days after the date of the applicable purchase transaction.  Bank will transfer funds payable to Company under this Agreement via wire transfer to an account maintained in the name of Company pursuant to written instructions delivered to Bank by Company.
		

		
			(c)      All Non-Company Purchases will be settled through the Network system.   
		

		
			(d)      Bank will have all of the rights and remedies to which it is entitled to exercise the rights of set-off and recoupment with respect to Company’s obligation to pay Bank any amounts due to it under this Agreement, including chargebacks, notwithstanding that Company may have filed for bankruptcy protection.  Company expressly acknowledges that all payment rights between the parties under this Agreement, including Bank’s duty to settle with Company for Charge Transaction Data pursuant to this Section 2.1, and Bank’s right to chargeback to Company under Section 8.1, will be deemed to be a “single integrated transaction” for purposes of determining Bank’s right of recoupment.  Nothing in this Section is intended to limit either Bank’s or Company’s common law right of set-off.
		

		
			2.2Promotional Financing Plan Terms.
		

		
			(a)      Merchant Discount Fees.  Company will pay to Bank the Merchant Discount Fees applicable to each submission to Bank of Charge Transaction Data which includes a PLCC Purchase or a Co-Brand Purchase to which a Merchant Discount Rate applies.  In such case, the Merchant Discount Fees will be an amount equal to the product of (a) the applicable Merchant Discount Rate, and (b) the amount of the charge subject to the applicable credit-based promotion.
		

		
			(b)      Merchant Discount Rates.  
		

		
			
		

		
			

		 

		

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			(i)      The promotional financing terms and corresponding Merchant Discount Rates available under the Program as of the Program Commencement Date are as set forth on Schedule 2.2.
		

		
			(ii)      Subject to the provisions of Section 2.2(c), Bank agrees not to alter the Merchant Discount Rates on Schedule 2.2;  provided,  however, Bank may modify, terminate, or replace one or more credit-based promotions due to changes in Applicable Law. 
		

		
			(iii)      If Bank and Company agree to offer any additional credit‐based promotions not included on Schedule 2.2, Bank will establish in writing, with acknowledgment by Company, the Merchant Discount Rate applicable to the calculation of the Merchant Discount Fees payable by Company for qualifying purchases, as well as such other terms and conditions as the parties agree.
		

		
			(c)      Merchant Discount Rate Adjustor.  Bank will have the right to adjust the Merchant Discount Rates in accordance with this Section 2.2 (x) [***], and (y) [***].  Any Revised Merchant Discount Rate resulting therefrom will become effective beginning on the applicable Revised Merchant Discount Rate Effective Date and will continue thereafter until another Revised Merchant Discount Rate is implemented in accordance with the terms hereof.  Bank will provide written notice to Company of any change to the Merchant Discount Rate at least 30 days prior to each Revised Merchant Discount Rate Effective Date.  Any recalculation of the Revised Merchant Discount Rate will follow the following steps:
		

		
			(i)Step 1.  Bank will first determine, as of the relevant Measurement Date, [***] for each credit-based promotion then offered.
		

		
			(ii)Step 2.  Bank will then make the following comparisons for each credit-based promotion: 
		

		
			(A)Compare [***] and determine the total basis point increase or decrease in such [***]; 
		

		
			(B)Compare the [***] and determine the total basis point increase or decrease [***]; 
		

		
			(C)Compare the [***] and determine the total basis point increase or decrease [***]; 
		

		
			(D)Compare the [***] and determine the total basis point increase or decrease in such [***]; and
		

		
			(E)Compare the [***] and determine the total basis point increase or decrease in such [***].
		

		
			(iii)Step 3.  Bank will then [***] as of such Measurement Date to equivalent Merchant Discount Rate basis points (each, a “Merchant Discount Rate Equivalent”) as follows: 
		

		
			
		

		
			

		 

		

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			[***]
		

		
			(iv)Step 4.  [***]
		

		
			(v)Step 5.  Bank will then compute the Revised Merchant Discount Rate as of such Measurement Date as follows:
		

		
			[***]
		

		
			(d)      Deferred Interest Promotion Plans.  Unless the parties otherwise agree in writing, Bank shall offer Deferred Interest Promotion Plans; provided that Bank shall not be obligated to offer any Deferred Interest Promotion Plans if there is a Change in Law prohibiting or materially limiting Bank’s ability to offer such Deferred Interest Promotion Plans.  In that case, Bank and Company will negotiate in good faith for [***] to agree upon alternative promotional credit offerings to include in the Program.  If Bank and Company are unable to reach an agreement, and if other financial institutions similarly situated to Bank (i.e., that are regulated by the same governmental authorities) are still able to offer Deferred Interest Promotion Plans, Company will have a right to, notwithstanding anything to the contrary in Section 6.1, engage a third-party to provide Deferred Interest Promotion Plans.  For the avoidance of doubt, while the expectation of the parties is that Deferred Interest Promotion Plans will be periodically offered, the use of any Deferred Interest Promotion Plan at any given time will be at Company’s discretion.
		

		
			2.3Outside Interchange Fees.
		

		
			(a)      To the extent the Outside Interchange Fees increase to more than [***], then Bank shall [***].
		

		
			(b)      To the extent the Outside Interchange Fees decrease to less than [***], Company and Bank will negotiate in good faith for [***] to agree to terms to offset the financial impact to Bank under the Program attributable to such Material Outside Interchange Fee Decrease. If Company and Bank are not able to agree to a change in terms to offset the financial impact to Bank under the Program attributable to such Material Outside Interchange Fee Decrease within such [***], Bank may [***].
		

		
			2.4General Payment Terms.  Unless otherwise provided for elsewhere in this Agreement, any amounts payable by one party to the other under this Agreement but not settled in accordance with Section 2.1(b) above will be due when invoiced and will be paid in immediately available funds within 30 days after the date of such invoice.  Unless the parties otherwise agree, a party will transfer funds payable to the other under this Article 2 via wire transfer to a deposit account maintained in the receiving party’s name pursuant to written instructions delivered by the receiving party.
		

		
			2.5In-Store Payments.  Company will not accept any payment on an Account. Company will make available to Cardholders at all Store Locations (and at such other locations or venues at or through which 
		

		
			
		

		
			

		 

		

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			Cardholders may seek information about the Program) the address to be used for making payments on Accounts directly to Bank. Notwithstanding the foregoing, if Company inadvertently receives any payment on an Account, Company agrees that it will receive and hold such payment in trust for Bank and will promptly (but not later than three Business Days after receipt thereof) deliver such payment to Bank in the form received together with such endorsements or other documents of assignment as may be necessary to permit Bank to receive the benefit thereof to the same extent as if payment had been made directly to Bank.
		

		
			ARTICLE 3COMPENSATION
		

		
			3.1Program Economics.  The compensation payable by Bank to Company or Company to Bank, as the case may be, in connection with the Program will be as set forth in Schedule 3.1.
		

		
			3.2Allocation of Program Expenses.  Unless otherwise specifically provided in this Agreement, each party will be responsible for all costs and expenses incurred by it in connection with complying with its responsibilities under this Agreement.
		

		
			ARTICLE 4RELATIONSHIP MANAGEMENT AND PROGRAM MARKETING
		

		
			4.1Program Managers and Other Designated Bank Employees.
		

		
			(a)      Promptly following the Effective Date:  (i) Bank will dedicate an individual responsible for the day-to-day management and administration of the relationship between Company and Bank with respect to the Program (“Bank Program Manager”) and (ii) Company will designate an individual responsible for the day-to-day management and administration of the relationship between Company and Bank with respect to the Program (“Company Program Manager”). Company may interview and consult with Bank regarding the selection of the Bank Program Manager, and Bank will reasonably consider Company’s input with respect to any candidate.
		

		
			(b)      Each Program Manager will have sufficient authority to facilitate decision-making on behalf of his or her respective party and will have sufficient knowledge and experience to effectively and efficiently perform his or her responsibilities.  Each Program Manager will make available a sufficient amount of his or her working time, attention, skill, and efforts necessary to furthering the interests of the Program.  Either party may replace its Program Manager at any time upon notice to the other party, so long as the replacement Program Manager meets the foregoing qualifications.
		

		
			(c)      In addition to the Bank Program Manager, Bank will also provide a [***]. Bank will be responsible for the cost of the [***], including any travel expenses.
		

		
			(d)      Company shall not adopt, assume or otherwise become responsible for, either primarily or as a successor employer, co-employer or joint employer, any employee benefit plans or any assets or liabilities of any employee benefit plans, arrangements 
		

		
			
		

		
			

		 

		

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			commitments or policies currently or hereafter provided by Bank, relating to the Bank Program Manager and the other persons described in Section 4.1(c), including the members of the Program team, or otherwise.  If, and to the extent that, Company is deemed by Applicable Law or otherwise to be liable primarily or as a successor employer or co-employer or joint employer, for such purposes or any other purposes, including any state or federal employment taxes, Bank shall indemnify, defend and hold harmless Company, its Affiliates, and their respective officers, employees, agents and directors from and against any and all Damages that may result therefrom; provided, that Bank will have no such obligation if Company’s actions or omissions directly result in Company being deemed by Applicable Law or otherwise to be liable primarily or as a successor employer or co-employer or joint employer of such persons. 
		

		
			4.2Management Committee.    
		

		
			(a)      Promptly following the Effective Date, the parties will establish a committee which will meet on a periodic basis in person or by conference call, as mutually agreed but no less frequently than quarterly, to discuss the Program (the “Management Committee”). The Management Committee will consist of six members, with three members to be nominated by each of the parties.  Each party may designate titles for its nominees at its option.  Decisions of the Management Committee must be unanimous decisions, with Bank and Company each having one vote. A quorum, consisting of at least one (1) member (or permitted substitute or delegate) from each of Bank and Company, must be present to transact business at any meeting.  If the Management Committee is unable to agree on any matter requiring its approval, then no action will be taken, subject to the escalation steps described in Section 14.10(a).
		

		
			(b)      The Management Committee’s responsibilities will include:
		

		
			(i)Reviewing and approving the Program operating plan (including an operating budget), and reviewing the performance of the Program generally.
		

		
			(ii)Reviewing and approving (other than with respect to elements required by Applicable Law) the design of the Credit Cards and other Company-branded Program Materials.  
		

		
			(iii)Developing, reviewing and approving annual marketing initiatives, including each annual Marketing Plan and, during each fiscal year of Company, (1) assessing the need to modify, and (2) if agreed to, modifying the annual Marketing Plan for such fiscal year of Company.
		

		
			(iv)Reviewing and approving the initial Loyalty Program Incentive and material amendments to the Cardholder Loyalty Program, except as set forth in Section 4.6. 
		

		
			(v)Reviewing (x) material changes to Program risk management policies and procedures, including credit criteria, and (y) Bank’s forecast of any such changes on key performance indicators.
		

		
			(vi)At least once per Program Year, (x) reviewing features, terms and conditions, capabilities and other aspects of Competitive Retailer credit card programs to identify 
		

		
			
		

		
			

		 

		

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			possible enhancements to the Program with a view toward maintaining the Program’s competitiveness with the Competitive Retailer programs, (y) assessing the cost of any such enhancements, and, (z) if determining an enhancement should be incorporated into the program, arriving at a mutually agreeable allocation of costs between the parties.
		

		
			(vii)Reviewing and, if applicable, amending Credit Card product features, benefits and positioning.
		

		
			(viii)Reviewing and approving changes to the Operating Procedures, except as set forth in Section 5.4.
		

		
			(ix)Reviewing and approving the incorporation of new form factors or technology into the Program, as well as designing and reviewing the testing of such items, as appropriate.
		

		
			(x)Reviewing and approving any ancillary product or service offerings in addition to the Approved Cross-Sell Offerings, including the pricing and terms and conditions of such offerings.
		

		
			(xi)Establishing performance goals for the Program’s various marketing efforts, including reviewing the effectiveness of the Marketing Plan. 
		

		
			(xii)Reviewing Program reports and assessing whether to modify the scope thereof.
		

		
			(xiii)Defining and overseeing any consumer research.
		

		
			(c)      If any matter that requires unanimous approval of the voting Managing Committee member of each of Bank and Company (an “Unapproved Matter”) remains unresolved by senior executive officers of Company and Bank pursuant to the escalation procedure in Section 14.10(a), the failure to agree shall constitute a deadlock. In the event of a deadlock, the final decision shall rest with Company in the case of Company Matters. If a deadlock should occur with respect to a matter that is not a Company Matter, the matter shall be deemed rejected by the Managing Committee.
		

		
			(d)      Company Matters. In accordance with and subject to this Section 4.2, Company shall have the ultimate decision making authority with respect to any Unapproved Matters in respect of the following matters (the “Company Matters”):
		

		
			(i)the look, feel, and marketing content and design (within Bank’s standard design parameters, where applicable), and changes thereto, of Credit Cards, Company-branded Program Materials, the Company Website, any Program-related social media pages or “apps,” or other marketing communications to Cardholders (except for content thereof that is dictated by Applicable Law) and collateral aesthetics of any of the foregoing;
		

		
			(ii)the usage of the Company Marketing Fund;
		

		
			
		

		
			

		 

		

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			(iii)any capital expenditures of Company and its Affiliates, including in connection with any proposed changes to Company’s systems (whether resulting from any change to Bank’s system or otherwise), subject to Section 5.4;
		

		
			(iv)the design, implementation, modification or any changes to any terms of the Cardholder Loyalty Program, subject to the provisions of Section 4.6;
		

		
			(v)the administration of the Program in Company Marketing Channels, including the determination of all marketing processes in Company Marketing Channels; and
		

		
			(vi)marketing communications with the Cardholders (other than as required to comply with Applicable Law); and
		

		
			(vii)any changes to Company's privacy policies.
		

		
			4.3Annual Marketing Plans.  Prior to the beginning of each fiscal year of Company during the Term, the Management Committee will work in good faith to formulate and mutually agree upon a plan for marketing and promoting the Program, including activation and lifecycle promotions, for  such fiscal year of Company (the “Marketing Plan”); provided, that (a) the Management Committee will meet to discuss the Marketing Plan for the fiscal year of Company in which the Program Commencement Date occurs promptly after the Effective Date and will finalize such Marketing Plan within 60 days following the Effective Date, and (b) such first Marketing Plan for the fiscal year of Company in which the Program Commencement Date occurs will include provisions addressing Program launch activities (including the issuance of Credit Cards) and the allocation of the Launch Fund in connection therewith.  After the fiscal year of Company in which the Program Commencement Date occurs, the Joint Marketing Committee will approve each subsequent annual Marketing Plan no later than 60 days prior to the beginning of each fiscal year of Company.  Other than the Marketing Plan for the first fiscal year of Company in which the Program Commencement Date occurs, each subsequent annual Marketing Plan will set forth in reasonable detail the manner in which amounts in the Joint Marketing Fund will be expended, and which party will be responsible for any expenditures in excess of the amounts in the applicable marketing funds.  The parties recognize that the Marketing Plan may need to be modified more frequently than annually, and will work together during each fiscal year of Company to modify the Marketing Plan as appropriate.  The parties may from time to time agree on additional specific marketing activities for the Program.
		

		
			4.4Marketing Funds; Launch Fund.
		

		
			(a)      Bank will establish (by creation of a record maintained by Bank), fund pursuant to Schedule 3.1, and administer a marketing fund (the “Joint Marketing Fund”) to be used to execute marketing activities pursuant to the Marketing Plan, or other activities as approved by the Management Committee, including those set forth in Schedule 4.4.  The parties will use commercially reasonable efforts to use the Joint Marketing Fund in accordance with the Marketing Plan for the fiscal year of Company in which the funds are committed. Any amounts previously allocated to the Joint Marketing Fund but not used by Bank as of the end of any fiscal 
		

		
			
		

		
			

		 

		

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			year of Company will [***]. Any amounts that remain unspent in the Joint Marketing Fund as of the date of termination of this Agreement will be [***].
		

		
			(b)      Bank will establish (by creation of a record maintained by Bank), fund pursuant to Schedule 3.1, and administer a marketing fund (“Company Marketing Fund”) for use by Company to market the Program.  Company will [***] for which such funds will be used and such activities will be incorporated into the applicable Marketing Plan, but [***].  Company will pay all marketing expenses it incurs in connection with initiatives subject to Company Marketing Fund reimbursement, and will be reimbursed by Bank pursuant to Section 4.4(e) below.  Company will use reasonable efforts to use the Company Marketing Fund in accordance with the Marketing Plan for the fiscal year of Company in which the funds are committed.  Any amounts previously allocated to the Company Marketing Fund but not used by Company as of the end of any Company fiscal year will [***].  Any amounts that remain unspent in the Company Marketing Fund as of the date of termination of this Agreement will be [***].
		

		
			(c)      Bank will also establish (by creation of a record maintained by Bank), fund pursuant to Schedule 3.1, and administer a Program launch fund (the “Launch Fund”) to be used to fund activities relating to the establishment and launch of the Program as approved by the parties, including those set forth in Schedule 4.4.  Any amounts previously allocated to the Launch Fund but not used by Bank as of the date that is [***] will be [***]. 
		

		
			(d)      Except as otherwise agreed by the parties, only direct, third-party out-of-pocket costs of each party will be eligible for reimbursement from the Launch Fund, the Joint Marketing Fund, and the Company Marketing Fund (i.e. overhead and internal costs (e.g., internal marketing groups) will not be eligible for reimbursement).
		

		
			(e)      Prior to either party being reimbursed from the Joint Marketing Fund, Company Marketing Fund or the Launch Fund, such party will submit to Bank (or, in the case of a reimbursement request by Bank, develop and retain) a reasonably detailed invoice of the expense for which such party seeks reimbursement and Bank will remit payment to the extent of then available amounts in the applicable fund.
		

		
			4.5Responsibility of Company to Promote the Program.  Company will manage and have primary decision-making authority over Program marketing in Company Marketing Channels.  Without limiting Company’s obligations under the Marketing Plan, Company will actively support and promote the Program by, among other things:
		

		
			(a)      encouraging through all Company Marketing Channels the establishment and use of Accounts as the preferred method of payment for Company’s products and services at all Store Locations, including at point-of-sale; 
		

		
			(b)      coordinating the execution of all marketing initiatives in Company Marketing Channels;
		

		
			(c)      providing and using customized store signage and marketing materials, credit advertisements, promotional inserts and onserts, statement messages, Company Website 
		

		
			
		

		
			

		 

		

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			promotions, direct mail promotions, Application holders, take one Applications, and other marketing materials promoting the Program;
		

		
			(d)      maintaining a logo advertisement in a prominent position on the home page of the Company Website which promotes the Program and contains an embedded link (with no intermediate links) to a separate Company-hosted page of the Company Website that contains details about the Program and a direct “apply” link (with no intermediate links) to the Bank Website, subject to Bank’s prior approval of the placement of such logo advertisement and Company-hosted page; and
		

		
			(e)      providing incentives and performance goals for Store Locations and Company personnel with respect to the Program; provided that Company will not implement or operate an employee incentive program that is related to the Program unless such employee incentive program has been mutually agreed to by the parties in writing.
		

		
			4.6Rewards Program.    
		

		
			(a)      Company will establish and maintain, and Bank will administer (unless otherwise agreed by the parties), a Cardholder loyalty program connected to Credit Card and Account use (the “Cardholder Loyalty Program”).  Company will ensure at all times that (x) any value proposition offered under any existing loyalty program of Company is offered to Cardholders and (y) the value proposition offered under the Cardholder Loyalty Program serves as an additional benefit to Cardholders, which benefit is not available absent the use of the Credit Card. 
		

		
			(b)      Following the Effective Date, but prior to the Program Commencement Date, the parties will work together in good faith to develop a value proposition to Cardholders under the Cardholder Loyalty Program (the “Loyalty Program Incentive”) and an acquisition incentive to Cardholders.  In furtherance of the foregoing, the parties will create and implement a testing protocol to assess the viability and Cardholder acceptance of different value propositions, as well as the costs and benefits of the proposed Loyalty Program Incentive and acquisition incentive and the projected impact on Program economics, and each party will reasonably consider the results of such testing.  If the parties are unable to agree upon the Loyalty Program Incentive following the requisite testing, Company will determine the initial Loyalty Program Incentive and acquisition incentive; provided that, unless otherwise agreed by Bank, the Loyalty Program Incentive will not have a value to the Cardholder of [***], the “LP Minimum Value”), the acquisition incentive will not have a value less than [***], the “AI Minimum Value”) and Cardholders who choose to enroll in the Cardholder Loyalty Program and pay for their purchases with a Credit Card will earn no less [***] than if such purchases were made using a different funding source.
		

		
			(c)      Unless otherwise agreed to in the Marketing Plan, Company will be solely responsible for funding the cost of the Loyalty Program Incentive and acquisition incentive and providing the same to Cardholders.  
		

		
			(d)      Following the establishment of the initial Loyalty Program Incentive and acquisition incentive, Company may (i) test changes to the Loyalty Program Incentive and 
		

		
			
		

		
			

		 

		

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			acquisition incentive from time to time; provided that the tests are designed to avoid a material adverse impact on the Program and (ii) amend, modify, or replace the Cardholder Loyalty Program from time to time following good faith consultation with Bank, but without Bank’s approval, so long as the value of the Loyalty Program Incentive to Cardholders, in the aggregate, is not lower than the then-current LP Minimum Value, and the value of the acquisition incentive is not less than the then-current AI Minimum Value.  The foregoing notwithstanding, Bank may require that Company amend, modify or replace the Cardholder Loyalty Program if required by Applicable Law or Bank’s compliance policies.  
		

		
			(e)      Company will (i) comply with the terms and conditions of the Cardholder Loyalty Program and Loyalty Program Incentive as provided to Cardholders, (ii) honor all Cardholder Loyalty Program and Loyalty Program Incentive obligations, (iii) otherwise comply with instructions by Bank regarding the Cardholder Loyalty Program with respect to compliance with Applicable Law, and (iv) disclose to Cardholders that Company is responsible (and liable) for the awarding and redemption of rewards points provided under the Cardholder Loyalty Program.
		

		
			4.7Cross-Selling.  Bank (or its designees) may solicit Cardholders for and offer to Cardholders (or arrange for a third party to solicit or provide) the offerings set forth on Schedule 4.7 (“Approved Cross-Sell Offerings”) with such additional terms as are set forth on the schedule.  Bank will provide Company with a copy of the proposed solicitation materials pertaining to any Approved Cross-Sell Offerings prior to using such materials with Cardholders.  Bank (or its designees) may also solicit Cardholders for and offer to Cardholders (or arrange for a third party to solicit or provide) such additional products as the Management Committee may approve.  In addition, Bank will work with Company to identify and implement possible opportunities within Bank’s business to cross-promote Company and its products, subject to mutual agreement on the scope and terms of any such initiative and any confidentiality or other contractual limitations applicable to Bank. For the avoidance of doubt, no Debt Cancellation Program will be offered through the Company Sales Channels.
		

		
			ARTICLE 5PROGRAM ADMINISTRATION
		

		
			5.1Ownership of Accounts.  Bank is and will be the owner of all Accounts and Account Documentation, and will be entitled to receive all payments made by Cardholders on Accounts.  Bank will be identified as the creditor and owner of the Accounts for all purposes, and Company will not represent or imply otherwise.  Company acknowledges that it has no right, title or interest in any Accounts or Account Documentation and will not, at any time, have any right to any proceeds or payments made under the Accounts unless Company subsequently purchases or otherwise acquires such Accounts from Bank pursuant to Section 10.2.  Company further acknowledges that neither the Cardholder Information nor any of the Account Documentation nor any of the information included in the Account Documentation will be deemed to be Confidential Information of Company for purposes of Section 13.3.  Company authorizes and empowers Bank to sign and endorse Company’s name upon any checks, drafts, money orders or other forms of payment 
		

		
			
		

		
			

		 

		

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			solely to allow Bank to process any payment on an Account that may have been issued by the Cardholder in Company’s name.  The limited power of attorney conferred in this Section 5.1 is deemed a power coupled with an interest and will be irrevocable.  Bank will bear all credit losses on Accounts (other than as permitted by Bank’s chargeback rights in Article 8 and its indemnity rights under Article 12, and other than credit losses incurred after the Accounts are purchased or otherwise acquired by Company or a third party).
		

		
			5.2Cardholder Terms.  Bank may establish (and modify from time to time) all terms upon which credit will be extended to Cardholders, including finance charges, repayment terms, default finance charges, late fees, overlimit charges, returned check charges, and other ordinary fees and charges.  The key initial Cardholder terms under the Program for new Accounts are set forth on Schedule 5.2(a).  Company acknowledges that Co-Brand Credit Cards and Private Label Credit Cards may be subject to different financial and other Cardholder Agreement terms.  With respect to each key initial Cardholder term on Schedule 5.2(a), [***] without Company’s consent. Bank will not change the [***] following the Program Commencement Date, and will not change any other term set forth on Schedule 5.2(a) (except as noted on the schedule) for [***], unless such change is required by Applicable Law.   Bank will provide to Company written notice of any proposed changes to the financial terms of the Cardholder credit terms (such as default finance charges, late fees, overlimit charges, returned check charges, and other ordinary fees and charges) as soon as reasonably practicable in advance of such changes and will consult with Company prior to the implementation of any such changes.
		

		
			5.3Credit Criteria.
		

		
			(a)      Bank may (i) issue either a Private Label Credit Card or a Co-Brand Credit Card to any new applicant for an Account; and (ii) issue at any time and from time to time a Co-Brand Credit Card to any existing Cardholder as a replacement for an existing Private Label Credit Card.  Bank will assess Applications and render credit decisions solely on the basis of its credit criteria, applied consistently across the Program and in compliance with Applicable Law. 
		

		
			(b)      Bank will establish and may modify from time to time the credit criteria used in evaluating applicants under the Program (including the creditworthiness of individual applicants, the range of credit limits to be made available to individual Cardholders and whether to suspend or terminate the credit privileges of any Cardholder) provided such credit criteria and credit limits are applied by Bank using consistent judgment as Bank applies generally, taking into account similar factors it uses in considering other general purpose and private label credit card portfolios, as applicable.  Bank will consult with the Management Committee regarding any material changes to the credit criteria used for the Program.
		

		
			5.4Operating Procedures.  Bank will develop and provide to Company, and may amend from time to time upon notice to Company, operating procedures (the “Operating Procedures”) governing the flow of authorizations, Application information and Charge Transaction Data, the logistics and specific 
		

		
			
		

		
			

		 

		

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			procedures involved in the establishment and maintenance of Accounts under the Program and settlement procedures for charges submitted to Bank.  Any changes to the Operating Procedures that either party believes to be material to the ongoing operation of the Program will be subject to approval by the Management Committee other than (i) changes required by Applicable Law, (ii) any changes that are implemented across substantially all credit programs that are similar to the Program, and (iii) changes required by Bank’s systems.  Bank will use commercially reasonable efforts to minimize the impact of such changes to Company operations.  Company will conduct its activities relating to the Program in compliance with the Operating Procedures. If Bank changes the Operating Procedures and Company reasonably determines that such changes would require a capital expenditure by Company that would outweigh the financial benefit of this Agreement to Company, the parties will negotiate in good faith for a period of [***] days to reach a mutually agreeable solution.  If the parties are unable to agree within such period, Company may terminate this Agreement upon 30 days’ written notice to Bank.
		

		
			5.5Inserts, Onserts and Billing Statement Messages.
		

		
			(a)      For each billing statement sent to Cardholders during a billing cycle during the Term, Bank will make available to Company a space for two customized messages on the billing statement, and Bank will include up to three Company inserts or onserts into or with each billing statement if possible without causing the weight of the billing statement package to exceed one ounce, provided that Bank may, with respect to the billing statements for any month, take priority in including one or more Bank inserts, onserts or statement messages to the extent Bank deems such use reasonably necessary to comply with Applicable Law or protect Bank’s interest in the Accounts.  In addition, Bank may, with respect to the billing statements for any month, include at Bank’s cost (including any increased postage) one insert, onsert, or statement message promoting such cross-sell products and services as are permitted to be offered under Section 4.7 and to promote the Program and purchase activity on Accounts. For any Company statement messages or billing inserts or onserts to be included into or with the billing statements for any given month, Company must provide to Bank such statement messages or billing inserts or onserts meeting Bank’s production specifications (to be supplied to Company by Bank) on or before the earlier of (i) fifteen days prior to the insert print date and (ii) twenty-one days prior to the billing cycle mail date.  Bank will promptly notify Company if the inclusion of such billing inserts or onserts will cause the postage on such billing statements to exceed one ounce.  If Company nonetheless wishes Bank to include Company’s inserts or onserts into or with such monthly billing statements, then Company will provide at least five days prior notice to Bank to enable Bank to adjust its process and Company will pay the overweight postage charges resulting therefrom.  Company will also provide copies of all billing inserts to Bank at its own cost.  
		

		
			(b)      The form of customized messages and all billing inserts and onserts will comply with Bank’s specifications as provided to Company from time to time, and Bank will have the right to reject any message or billing statement that Bank reasonably believes is detrimental to the image of Bank or the Program or raises legal or regulatory risk.  Company may use its inserts, onserts, and statement messages to advertise its goods and services and other programs or services that Company deems appropriate, but will not use inserts, onserts or statement messages to promote financial products or services. Company will have the right to retain all revenue from the marketing of goods and services through Company’s inserts, onserts, and statement messages.
		

		
			
		

		
			

		 

		

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			5.6Third Party Participation.  At the request of Bank, Company will require any person that (a) is engaged in the business of selling retail goods or services similar to those offered by Company using the Company Marks and (b) is an Affiliate of Company, to enter into a written agreement with Bank to be included in the definition of “Company” hereunder (on such modified terms and conditions as Bank may require).  Company has not and will not permit any licensee, subtenant, liquidator or other third party operating in, from or through any Store Location to accept Credit Cards for purchases by Cardholders without first obtaining Bank’s prior written approval.
		

		
			5.7Taxes. 
		

		
			(a)      All payments made hereunder are exclusive of any applicable sales, use, transaction privilege and similar taxes (“Sales Taxes”). The party liable to make a payment under this Agreement shall be liable for and shall pay all applicable Sales Taxes. If the party receiving payment is obligated to collect and remit any Sales Taxes it shall add the appropriate amount of Sales Taxes to the invoice, or its equivalent, sent to the party making payment, disclosing the amount of all applicable Sales Taxes.  The party making payment is responsible for providing evidence of any Sales Tax exemption.  The party making payment shall reimburse the other party for Sales Taxes and any fee, penalty or interest that may be assessed against the other party for Sales Taxes and any fee, penalty or interest that may be assessed against the other party as a result of such initial party’s failure to pay Sales Taxes in accordance with this Section 5.7(a).  The party receiving payment shall reimburse the other party for Sales Taxes and any fee, penalty or interest that may be assessed against the other party as a result of such initial party’s failure to remit collected Sales Taxes to the appropriate jurisdictions. Furthermore, the party receiving payment shall be responsible for any interest, penalty or other charges assessed to the party making payment due to the first party's failure to invoice and remit Sales Taxes.  The parties agree to cooperate with each other to minimize any applicable Sales Taxes and, in connection therewith, the parties shall provide each other with any relevant tax information as reasonably requested (including without limitation, resale or exemption certificates, multi-state exemption certificates, and notices of assessments).
		

		
			(b)      Company agrees that, unless otherwise provided in this section, Bank will be [***] (“Sales Tax Recoveries”).  If Bank elects to file lender claims, at its expense, where available (“Bank Sales Tax Claims”), Company will, at Bank’s expense, reasonably cooperate with Bank to recover such taxes in connection with charge offs, including executing all forms or other documentation necessary or required by any taxing authority in connection with recovering such taxes, and using commercially reasonably efforts to timely produce all supporting documentation and data relative to such Accounts then in Company’s possession and obtain all necessary supporting documents. Company shall use commercially reasonable efforts to maintain retail purchase data for a period of 48 months to support such claims.  Bank shall indemnify, defend and hold harmless Company, its Affiliates, and their respective officers, employees, agents and directors from and against any and all Damages resulting from any Bank Sales Tax Claims.  In states where Company is required to be the claimant to file for Sales Tax Recoveries related to any Accounts (“Company Sales Tax Claims”), Company, in its reasonable discretion, may elect to file Company Sales Tax Claims with the consent of Bank, which Bank will not unreasonably withhold.  In such case, Bank will reasonably cooperate with Company in 
		

		
			
		

		
			

		 

		

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			obtaining Sales Tax Recoveries, including by providing documentation related to such claims made by Company. [***]  In the event that Company or any of its Affiliates is audited or assessed by a taxing authority, and as a result any Sales Tax Recoveries is required to be repaid by Company or any of its Affiliates to such taxing authority, Bank shall repay the portion of such Sales Tax Recoveries previously received by it to Company. Bank and its Affiliates also shall fully cooperate in any such audit or assessment.  Each party will bear its own costs related to filings, audits or assessments in connection with Sales Tax Recoveries attributable to Company Sales Tax Claims.
		

		
			(c)      Company will deliver to Bank a duly completed and valid IRS Form W-9, and such additional documentation reasonably requested by Bank as may be necessary for Bank to comply with all its withholding and reporting obligations, upon execution of this Agreement, and at relevant times thereafter.  Company will timely replace or update the withholding certificates and documents upon a change in circumstances that invalidates an IRS form or document or otherwise replace an IRS form or document provided upon reasonable request by Bank.  Company acknowledges that amounts payable to Company under this Agreement (i) may be subject to tax backup withholding and information reporting, and (ii) in such case, will be paid net of backup withholding taxes.  Bank will issue required U.S. information returns on all amounts subject to information reporting.  Company will include in its payment settlement file all information reasonably requested by Bank to fulfill its information reporting obligations.
		

		
			5.8Use of Names and Marks.
		

		
			(a)      Company grants to Bank the nonexclusive, non-transferable, royalty-free right and license to use the Company Marks during (i) the Term or any Wind Down Period in connection with Bank’s establishment, marketing, administration and servicing of the Program, and (ii) any Tail Period, subject to the provisions of Section 10.3.  Company agrees to promptly notify Bank if any changes are made to the Company Marks so that Bank may adjust the Program Materials at the next convenient opportunity to Bank.  Company will pay the actual and reasonable expenses of Bank in modifying the Program Materials as a result of changes in the Company Marks; provided, that the parties will cooperate to minimize such expenses, including, as reasonably practicable, by agreeing to continue to use existing printed Program Materials until substantially depleted.  Bank will use the Company Marks in accordance with the reasonable written instructions provided to Bank by Company.  Bank is not acquiring any right, title or interest in the Company Marks, and will not take any action inconsistent with the Company’s ownership of the Company Marks.  Any goodwill arising from Bank’s use of the Company Marks will inure solely to the benefit of Company.
		

		
			(b)      Subject to Applicable Law and the Network Rules, use of the Company Marks in connection with any materials contemplated by the license granted pursuant to the preceding Section will be subject to Company’s prior written approval (including by electronic mail), which approval will not be unreasonably withheld, and such Program Materials will be used by Bank in all material respects as approved by Company; provided, that once such approval is received, and in the absence of any material alteration thereto by Bank with respect to the use or placement of the Company Marks, no further review or approval will be required for the continued use (including re-printing and re-distribution) of such Program Materials by Bank; and provided,  further, that Bank will have no obligation to submit for prior approval by 
		

		
			
		

		
			

		 

		

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			Company any Cardholder correspondence or communication which refers to Company in the nominative sense and relates to the administration of the Program or the collection of Accounts, so long as Bank’s use of the “Company” name in any such correspondence or communication is limited to the extent necessary to identify the Program to the Cardholders as the subject matter thereof.  For clarity, Bank will submit to Company for its approval (which approval will not be unreasonably withheld or delayed) the form of any standardized Cardholder correspondence Bank proposes to use as part of the Program; provided, that Company’s approval will be limited to the placement of the Company Marks on such forms.  
		

		
			(c)      Company represents and warrants to Bank that it or its Affiliate owns the Company Marks, that Company has the right to grant the foregoing license and that Bank’s use of the Company Marks as authorized in this Agreement will not infringe the rights of any third party.
		

		
			(d)      Bank hereby grants Company a non-exclusive, royalty-free right and license during the Term and any Wind Down Period to (i) use Bank’s name and marks to the extent necessary to comply with the disclosures required in connection with any Company-Generated Materials, (ii) in connection with the creation of any Company-Generated Materials, and (iii) as provided by Bank in connection with marketing and promoting the Program as contemplated hereunder.  Any such use will be subject to the prior written consent of Bank, not to be unreasonably withheld.  Bank agrees to promptly notify Company if any changes are made to the Bank name or marks so that Company may adjust any Company-Generated Materials at the next convenient opportunity to Company.  Bank will pay the actual and reasonable expenses of Company in modifying the Company-Generated Materials as a result of changes in the Bank name; provided, that the parties agree to cooperate to minimize such expenses, including, as reasonably practicable, by agreeing to continue to use existing printed Company-Generated Materials until substantially depleted and by Company ordering only customary and reasonable stocks of such Company-Generated Materials. 
		

		
			(e)      Bank represents and warrants to Company that it or its Affiliates owns the Bank’s marks, that Bank has the right to grant the foregoing license and that Company’s use of the Bank name or marks as authorized in this Agreement will not infringe the rights of any third party.
		

		
			(f)      If either party sells or otherwise transfers any interest in the their respective names or marks to a third party, through liquidation or otherwise, the selling or transferring party will ensure that such sale or transfer is subject to the terms of this Agreement and to the other party’s license of, and right to use, such names or marks as provided for herein. 
		

		
			(g)      The parties will consult with each other before they, or any Affiliate or agent, draft any press release or public statement with respect to this Agreement or the Program and no such press release or public statement will be issued prior to receiving express written approval of the other, except, in each case, as may be required by Applicable Law.
		

		
			5.9Securitization.  Bank and its Affiliates may securitize, participate or otherwise convey or transfer an 
		

		
			
		

		
			

		 

		

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			interest in, or pledge or create a lien in respect of, any of the Accounts and Cardholder Indebtedness at any time during the Term, and will have the right to make all disclosures and filings associated with any such securitization, participation or secured financing as may be necessary in accordance with Applicable Law, customary market practices and as may be required by the terms of the securitization, participation or secured financing agreements; provided that Bank will ensure that any third party to whom it transfers or discloses Confidential Information in connection with such securitization signs a written contract in which such third party agrees to restrict its use of Confidential Information to the use specified in the written contract.  Company agrees to cooperate with Bank and its Affiliates and use commercially reasonable efforts (without being required to incur any material out of pocket costs) to assist Bank and its Affiliates in connection with any such matter.  In no event will Bank’s securitization, participation or secured financing activities interfere with Company’s option described in Section 10.2 to purchase the Program Portfolio upon termination of this Agreement; provided however, that Bank will have at least 120 days after the receipt of a Purchase Notice to remove the Program Portfolio from any securitization, participation or secured financing structure.
		

		
			5.10Extended Warranties; Gift Certificates; Stored Value Cards.    Except as set forth below, Cardholders will not be permitted to finance on Accounts the purchase of extended warranties, service contracts, or stored value or prepaid cards without the prior written approval of Bank.  With respect to any of the foregoing, Company agrees to review with Bank its offering of and procedures concerning the sale and fulfillment of such products.  Company will be permitted to finance extended warranties or service contracts on Accounts if the insurer or underwriter of any such extended warranty or service program has a rating of “A” or better, as determined by the A.M. Best rating service (or any successor rating service thereto or, if A.M. Best ceases to publish such ratings, any similar rating provided by a rating service reasonably determined by Bank) (the “A.M. Best Threshold”).  If at any time any warranty program or provider fails to satisfy the A.M. Best Threshold, Bank may notify Company that Bank is no longer willing to authorize, and Company shall cease, financing on Accounts warranties provided under such warranty program or by such provider.  Even where approved by Bank, Company will be responsible for ensuring that any extended warranties, service contracts, or stored value or prepaid cards fully comply with Applicable Law.  Nothing in this Section 5.10 will restrict Company from selling products subject to normal manufacturer’s warranties included in the standard purchase price as long as no additional seller’s warranties are provided.  Cardholders may only use their Credit Cards to purchase gift certificates or stored value cards that may be used solely for purchases of Company’s merchandise as long as such Cardholders may not exchange their gift certificates or stored value or prepaid cards for more than five dollars ($5.00) in cash.  
		

		
			5.11Audit and Compliance. 
		

		
			(a)      No more than once per Program Year during the Term of this Agreement upon reasonable notice by the auditing party, the audited party will allow the auditing party or a third party auditor experienced in auditing credit card programs (provided that such third party auditor agrees to be bound by the confidentiality provisions herein, or whose professional ethical obligations impose a duty on it with respect to Confidential Information comparable to the 
		

		
			
		

		
			

		 

		

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			applicable sections of this Agreement), selected by the auditing party and reasonably acceptable to audited party, to perform, at times and in a manner which does not unreasonably disrupt the operations of the audited party, an audit to verify all (a) reports and financial and related calculations and (b) any calculations forming the basis of any adjustments to the Loyalty Program Incentive or any termination right of the audited party contained in this Agreement.  The auditing party will not have the right to review any information of the audited party that is subject to a confidentiality restriction (or, in the case of Company, that relates to any other credit card program administered by Bank) and any such audit will be limited to the greatest extent practicable solely to the obligations of the audited party hereunder (and not to such party’s other processes and procedures).
		

		
			(b)      In addition to the rights set forth in Section 5.11(a), Company will permit Bank and Bank’s regulators to visit Company’s offices, and the relevant locations of its Data Vendors, during normal business hours with reasonable advance notice and provide access to Company records relating to the Program to Bank or Bank’s regulators to the extent such access is requested by Bank or Bank’s regulators to confirm Company’s compliance with Applicable Law, data security requirements, and use of Cardholder Information in connection with the Program.  If any such review reveals a compliance issue, Company will use commercially reasonable efforts to, and will use commercially reasonable efforts to cause its Data Vendors to, promptly comply with any guidance or requirements of Bank or Bank’s regulators regarding changes to procedures used by Company or its Data Vendors as necessary to remediate such compliance issues.  Company further agrees to reasonably cooperate with Bank to ensure ongoing security and protection of Cardholder Information and to ensure that the Program complies in all respects with Applicable Law.
		

		
			(c)      The following terms and conditions will apply with respect to any third party vendor or contractor Company engages in any capacity in connection with its rights or obligations hereunder if such third party would receive or have access to any Cardholder Information (each such third party is referred to herein as a “Data Vendor”): 
		

		
			(i)prior to engaging any Data Vendor, Company will (x) notify Bank of its intention to engage such Data Vendor, (y) ensure that such Data Vendor has sufficient controls in place to comply with clauses (ii) and (iii) below, and (z) ensure that the employees of such Data Vendor who will be responsible for fulfilling Company’s obligations under the Program have been trained sufficiently so as to be able to properly fulfill Company’s responsibilities hereunder; 
		

		
			(ii)Company will be responsible for each Data Vendor’s compliance with the provisions of Sections 13.4(a) and 13.4(c) notwithstanding that Bank, and not Company, may have provided the applicable Cardholder Information to such Data Vendor; 
		

		
			(iii)the provisions of Section 13.4(d) will apply to the Data Vendor and any breach of its systems, and Company will be responsible for satisfying the obligations of the Affected Party in any case in which there has been any actual or threatened breach of such Data Vendor’s systems; 
		

		
			(iv)as between Bank and the Data Vendor, Bank is and will remain the 
		

		
			
		

		
			

		 

		

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			owner of all right, title and interest in and to all Cardholder Information, and such Data Vendor (i) will only use such Cardholder Information consistent with Company’s rights or obligations hereunder, and (ii) will not, without the written consent of Bank, commingle any Cardholder Information with any other data or information; and 
		

		
			(v)Bank may terminate (or direct Company to terminate) the ability of any Data Vendor to access Cardholder Information at any time upon notice to Company if Bank determines that (x) such Data Vendor is failing to comply in any material respect with (1) the terms of the Agreement, as applicable to it through this Section 5.11(c), or (2) Applicable Law, or (y) allowing the Data Vendor to continue to receive or have access to Cardholder Information is likely to result in reputational or business harm to Bank.
		

		
			(d)      Each of Bank and Company agrees to comply with all applicable PCI Standards in relation to the conduct of the Program.  If during any periodic assessment of a party’s (the “PCI Obligated Party”) compliance with such PCI Standards, the PCI Obligated Party determines that it is not in material compliance, the PCI Obligated Party will promptly notify the other party, and the PCI Obligated Party will provide the other party with a statement of the steps and timeline for cure of such material deficiency.  
		

		
			(e)      Except for Company-Generated Materials approved by Bank pursuant to this Section, Company will only use documents, forms, terms and conditions, and other similar content in connection with the Program that were provided to Company by Bank (and in each case only the latest version), and in the manner directed by Bank, and Company will not modify any such Bank-provided documents, forms, terms and conditions, or other similar content without Bank’s prior written consent.  In addition, Company will cooperate with Bank to implement changes to such Bank-provided documents, forms, terms and conditions, and other similar content used in connection with the Program based a Change in Law, as determined by Bank.
		

		
			(f)      Except as otherwise agreed to by Company and Bank, Company will submit to Bank for written approval (which approval may be by email) any credit-related advertising, disclosures, or other documents, forms, terms and conditions, and other content in connection with the Program that have been prepared by Company (or its vendors or contractors) prior to disseminating or otherwise using such materials (such materials are collectively referred to herein as “Company-Generated Materials”).  Company-Generated Materials will include templates that are approved by Bank for Company’s use with respect to specific advertising campaigns without seeking additional approval from Bank so long as Company complies with the limits set forth in Bank’s approval.  Bank will use commercially reasonable efforts to either approve such Company-Generated Materials or notify Company that such Company-Generated Materials are not approved (and the reasons therefor) within five Business Days of Bank’s receipt thereof.  The specific process through which Company will submit and Bank will approve any Company-Generated Materials is set forth on Schedule 5.11.  Bank may monitor the use of Approved Advertisements and Approved Templates after such materials are disseminated or otherwise used by Company. Notwithstanding Bank’s approval of any Approved Advertisement or Approved Template, Company will implement changes to any Approved Advertisement or Approved Template, as the case may be, as directed by Bank if (i) as a result of Bank’s monitoring activities, Bank determines that Company is not using an Approved 
		

		
			
		

		
			

		 

		

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			Advertisement or Approved Template in the manner directed by Bank, or (ii) Bank determines that a Change in Law (as reasonably determined by Bank) have rendered any such Approved Advertisement or Approved Template (or the manner in which such Approved Advertisement or Approved Template is being used) non-compliant.
		

		
			5.12Reserved.
		

		
			5.13Application Channels.  Bank and Company will cause the following Application channels to be established on or prior to the Program Commencement Date:    
		

		
			(a)      online Applications made through the Bank Webpage and Bank’s mobile mApply system; 
		

		
			(b)      a system whereby customers may submit electronic Applications at Store Locations and receive an “instant” credit decision to allow such approved Cardholders to make purchases using an Account on the same day at such Store Location (subject to Bank’s ordinary course policies and practices regarding fraud prevention, credit exposure and operational exposure);
		

		
			(c)      a system whereby customers engaging in certain transactions at Store Locations will be pre-screened for Accounts by Bank and, to the extent Bank determines that such customer qualifies for an Account, will receive a pre-screened credit offer through the use of Bank’s QuickscreenTM process, subject to Bank’s ordinary course risk management policies and procedures.  Subject to Applicable Law, the frequency with which any individual customer will receive a QuickscreenTM offer (after a prior offer is rejected) will be governed by Bank’s ordinary course risk management policies.  Unless otherwise prohibited by Applicable Law, Company will maintain and implement its privacy policies and practices in a manner that permits it to provide Bank with the information necessary to permit the legal and effective use of QuickscreenTM; and
		

		
			(d)      a process for pre-screened applications as contemplated by Section 13.2(d).
		

		
			5.14Systems.  Company and Bank will establish (no later than the Program Commencement Date) and maintain connectivity to each other’s systems for the purposes of administering and supporting the Program for, among other things:  (i) allowing Bank and Company to administer their respective obligations with respect to the Cardholder Loyalty Program and providing the Loyalty Program Incentive to Cardholders, (ii) allowing Company to transmit such applicant information to Bank as is available to Company and reasonably requested by Bank in connection with underwriting any Application, and (iii) sending and receiving authorization requests and Charge Transaction Data as provided for in Section 2.1.
		

		
			5.15Form Factors and Account Functionality.  Bank agrees to present Company with the opportunity to offer and, with Company’s reasonable cooperation, to make commercially reasonable efforts to make available, new payment form factors for Accounts (different than current plastic cards) within a reasonable time after Bank makes them generally available to similar retailer credit programs provided by Bank’s “Retail Card” business unit.  Notwithstanding the foregoing, Bank’s obligations under this Section are conditioned on the ability of Bank to perform without violating any proprietary rights of a third party or breaching any agreement by which Bank or its Affiliates are bound, and the parties’ agreement on payment of any related expenses.
		

		
			ARTICLE 6EXCLUSIVITY
		

		
			6.1Exclusivity.
		

		
			(a)      Other than the Program or any program offered by Bank or an Affiliate of Bank, Company will not (and will cause its Affiliates not to), with respect to any general purpose or private label consumer credit or charge card product or program made available to consumers within the United States (whether or not such product or program is manifested by a physical card or other device), directly or indirectly (including 

		 

		

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through any arrangement with any non-Affiliate third party that has the purpose or effect of allowing such third party to use the Company Marks in a manner that would violate this Section 6.1(a)): 
		

		
			(i)enter into any agreement to provide, or otherwise offer any such product or program that bears, uses or refers to any of the Company Marks;
		

		
			(ii)promote, sponsor, solicit or facilitate the origination or usage of any such product or program; or
		

		
			(iii)issue, award, sell or post any points or other benefits under the Cardholder Loyalty Program for or in consideration of the use of any credit card or credit account (or the opening of any credit card or credit account), regardless of how manifested.  
		

		
			(b)      In addition, other than the Program or any program offered by Bank or an Affiliate of Bank, Company will not (and will cause its Affiliates not to) enter into any agreement to provide, or otherwise offer, promote, sponsor, solicit, or facilitate the origination or usage of any consumer credit or charge program made available to customers within the United States that includes a promotional credit attribute.
		

		
			(c)      The foregoing will not prohibit 
		

		
			(i)Company from entering into any arrangement for the offering or promotion of any commercial credit product or any consumer credit product that does not constitute a consumer charge product or an open-end, revolving credit program (e.g., debit cards, gift cards, prepaid cards and stored value cards), regardless of whether or not such payment products bear the Company Marks and regardless of form factor, other than a product that includes a promotional credit attribute; 
		

		
			
		

		
			

		 

		

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			(ii)Company from accepting any credit card, debit card or other payment product or tender type or advertising its acceptance of any such credit card, debit card or other payment product or tender type; 
		

		
			(iii)Company’s participation in [***], and provided, that Company will not participate in more than [***]);
		

		
			(iv)Company from placing content on the Company Website [***]; provided that, (x) such content shall not promote [***]; or
		

		
			(v)Company from offering its customers a loyalty program of any type (whether or not using Company Marks); provided that (x) Company shall not, in connection with any such program, promote the generation of credit card accounts in the United States other than the Accounts and no such program shall be marketed more prominently in any retail stores operated by Company than the Cardholder Loyalty Program; and (y) the Cardholder Loyalty Program shall be the primary loyalty program of Company. For the avoidance of doubt, nothing in this Agreement shall prevent Company from establishing, maintaining and administering a Company loyalty program that is not a Cardholder Loyalty Program. 
		

		
			(d)      Notwithstanding Section 6.1(a), Company may offer, sponsor, promote or endorse any Mobile Wallet so long as (i) Company does not originate or assist in the origination of any consumer credit product hosted in such Mobile Wallet, (ii) Company does not encourage the use of any consumer credit product hosted in such Mobile Wallet (through funding or other financial incentives provided by Company), and (iii) such Mobile Wallet is not co-branded with any Company Marks. However, Company will not be prohibited from offering or accepting any Mobile Wallet solely because such Mobile Wallet allows a cardholder to apply for or obtain a consumer credit product to be accessible by such Mobile Wallet.  If Company elects to offer, sponsor, promote or endorse a Mobile Wallet, then, at Company’s written request, Bank will use commercially reasonable efforts to include all Accounts in such Mobile Wallet (“Mobile Wallet Integration”) and the parties will establish, within 90 days of such request, a reasonable timeline for Mobile Wallet Integration; provided that (1) the data security, system authorization, technological and operational aspects of such Mobile Wallet and alternative network comply with Applicable Law, (2) the applicable Mobile Wallet operator agrees to permit the participation of Bank and the Accounts in such Mobile Wallet on commercially reasonable terms, (3) the parties agree to a mutually acceptable allocation of the costs, (4)  Company commits to develop and implement the corresponding point of sale systems enhancements; and (5) Company negotiates in good faith with the Mobile Wallet operator for Accounts to be included in such Mobile Wallet.
		

		
			(e)      [***]
		

		
			(f)      Acquired Retailer Card Program. If Company acquires a business which has a card program (the “Acquired Card Program”), Company will have sole discretion to decide whether the Acquired Card Program will be rebranded to the Company brand.
		

		
			
		

		
			

		 

		

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			(i)If the Acquired Card Program is not rebranded to the Company brand, then Company will have the right to continue to operate the Acquired Card Program independently. 
		

		
			(ii)If the Acquired Card Program is not rebranded to the Company brand, and the Acquired Card Program was issued by a third party, then Company will offer Bank the option to purchase (the “Acquired Card Program Purchase Option”) the Acquired Card Program portfolio at a purchase price consistent with the agreement pursuant to which Company acquired the Acquired Card Program; provided that such agreement permits such sale of the Acquired Card Program to Bank.  As a result of the sale, the accounts acquired under the Acquired Card Program will be converted to Accounts under this Agreement and treated as Accounts originated pursuant to a Cardholder Agreement hereunder.  
		

		
			(iii)In order to exercise the Acquired Card Program Purchase Option, Bank will provide written notice of its intent to purchase the Acquired Card Program within 30 days of Bank’s receipt of notice from Company of the Acquired Card Program Purchase Option.  
		

		
			ARTICLE 7CUSTOMER SERVICE, SERVICE LEVEL STANDARDS AND REPORTS
		

		
			7.1Customer Service.  Bank will provide the customer service for the Program, which customer service will include a dedicated, toll-free, inbound customer service number with a Company-branded voice response unit (VRU) available 24 hours a day, 365 days a year, and a team of live customer service agents available during Bank’s standard daytime United States business operating hours. Unless the Management Committee otherwise agrees, during Bank’s standard daytime United States business operating hours,  all live, oral, Cardholder-facing, English-language customer service functions (i.e., telephone calls) will be performed solely in the United States.  The foregoing notwithstanding, during any unplanned outage Bank may re-direct such customer service functions outside of the United States until such outage is resolved.  Subject to any limitations imposed by Applicable Law, Company may monitor, periodically and through a mutually agreeable reasonable method, selected live or previously recorded customer service calls and to provide feedback from such monitoring to the Bank Program Manager.  Bank will designate a manager-level resource within its customer service operation to act as a liaison between the parties and respond to Company’s questions and concerns.
		

		
			7.2Service Level Standards.  Bank will comply with the individual service level standards (“Service Level Standards”) and provisions governing the failure to meet Service Level Standards set forth in Schedule 7.2.
		

		
			7.3Periodic Program Reports; Analytics.
		

		
			(a)      Bank will provide Company with the reports set forth on Schedule 7.3 and any other reports as mutually agreed upon by the parties.  
		

		
			
		

		
			

		 

		

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			(b)      Bank will provide to Company analytical services to assist Company with its strategic and tactical business and marketing needs.  Such services may include analyzing data from the Program on consumer purchase patterns and behaviors, segmenting consumer markets using purchase and demographic information, creation of response models to identify purchase behaviors and other variables potentially correlated with response to various Company offers, the matching and tagging of lists of Company customers with behavioral or response variables, and various reporting services.  Each analytical service project request will be mutually agreed upon by the parties by way of Management Committee review and approval pursuant to Section 4.2(b) and expenses for third party services may be paid from the Marketing Plan as developed by the parties.   
		

		
			7.4Company Financial Reports.
		

		
			(a)      If at any time during the Term, At Home Group Inc. is not obligated to, or for any other reason does not timely, file periodic financial reports with the Securities and Exchange Commission pursuant to the reporting requirements of Section 13 or Section 15(d) of the Securities Exchange Act of 1934, Company will:
		

		
			(i)As soon as practicable but in any event not more than 120 days after the end of each fiscal year of At Home Group Inc., deliver to Bank At Home Group Inc.’s audited annual financial statements, including its audited consolidated balance sheet, income statement and statement of cash flows and financial position and accompanying notes to such financial statements; and
		

		
			(ii)As soon as practicable but in any event not more than 60 days after the end of each of the first three (3) fiscal quarters of each fiscal year of At Home Group Inc., deliver to Bank At Home Group Inc.’s unaudited quarterly financial statements, including its unaudited consolidated balance sheet, income statement and statement of cash flows and financial position, and accompanying notes to such financial statements, accompanied by a certificate from Company’s chief financial officer that such financial statements were prepared in accordance with generally accepted accounting principles applied on a consistent basis and present fairly the consolidated financial position of At Home Group Inc. as of the end of such fiscal quarter and the results of its operations, subject to normal year-end audit adjustments
		

		
			(b)      Financial statements required to be delivered pursuant to Section 7.4(a)(i) or (ii) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date on which Company posts such financial statements, or provides a link thereto on the Company Website; provided, that upon request of Bank, Company shall (x) notify (which may be by facsimile or email) Bank of the posting of any such financial statements and (y) provide to Bank by email electronic versions (i.e., soft copies) of such financial statements.
		

		
			(c)      No later than five (5) days after the filing of At Home Group Inc.’s periodic financial reports with the Securities and Exchange Commission or the delivery of the financial statements referred to in Section 7.4(a), as applicable, Company will deliver to Bank, a certificate signed by an officer of Company (or any direct or indirect parent of Company) (which delivery may be by electronic communication including facsimile or email) certifying as to At 
		

		
			
		

		
			

		 

		

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			Home Group Inc.’s maintenance of the Minimum Net Worth requirement set forth in Section 9.4(e).
		

		
			7.5Disaster Recovery Plan.  During the Term, Company and Bank will each maintain in effect a disaster recovery and business continuity plan that complies with Applicable Law.
		

		
			ARTICLE 8CHARGEBACKS
		

		
			8.1Chargeback Rights.  Bank will have the right to chargeback to Company any Cardholder Indebtedness pertaining to a PLCC Purchase or a Co-Brand Purchase, if Bank is entitled under the Network Rules to effect such chargeback as a bankcard issuer or, if, with respect to the corresponding charge or credit or the related Charge Transaction Data or the underlying transaction:
		

		
			(a)      The Cardholder disputes such charge and Company cannot provide Bank with evidence of the terms of the charge that resolves the dispute (including the date of the charge, the last 4 digits of the Credit Card number, products purchased and purchased amount) within 15 Business Days after Bank’s request; provided,  however, that any such dispute constitutes a bona fide claim presented by the Cardholder in good faith in the reasonable opinion of Bank; and, provided further, that Bank will have no obligation to re-charge the Cardholder for a charge where Company could not provide Bank with evidence of the terms of the charge that resolves the dispute within the above-referenced 15 Business Day period, but Company subsequently locates or otherwise finds evidence of such terms;
		

		
			(b)      The Cardholder disputes the amount of an Account or refuses to pay alleging dissatisfaction with products or services received or failure to receive products or services, a breach of any warranty or representation by Company in connection with the transaction, or an offset or counterclaim based on an act or omission of Company, the product manufacturer or any third-party service provider, provided,  however, that any such dispute constitutes a bona fide claim presented by a Cardholder in good faith in the reasonable opinion of Bank;
		

		
			(c)      The Cardholder disputes such charge and Company failed to comply in any material respect with any Operating Procedures with respect to such charge or Account or in connection with any corresponding credit, as determined by Bank in its good faith discretion; 
		

		
			(d)      Bank determines that any charge, credit or Account was subject to any acts of fraud performed by or in collusion with Company’s or its Affiliates’ employees, contractors or agents;
		

		
			(e)      Company failed to comply with any Operating Procedures and the Cardholder or any other person asserts that such person’s name, social security number or other identifying information was used to make any purchase (or to open an Account on which such purchase was made) and that such person did not make or authorize the purchase or open the Account in dispute;
		

		
			
		

		
			

		 

		

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			(f)      Bank determines that any presentment warranty set forth on Schedule 8.1(e) was false or inaccurate in any respect when made.
		

		
			8.2Non-Company Purchase Chargebacks.  Bank will have the right to charge back to Company any Cardholder Indebtedness on any Co-Brand Account (i) arising out of Company employee fraud, or (ii) with respect to which Company did not comply with the Operating Procedures in originating the Account.  Except as provided in the preceding sentence, Bank will have no chargeback rights against Company for any Non-Company Purchases.
		

		
			8.3Settlement of Claims.  In its reasonable discretion, Bank may compromise and settle any claim made by any Cardholder (including claims made on behalf of an authorized user) relating to such Cardholder’s Account.  No such compromise or settlement will impair Bank’s right to chargeback under Article 8 any portion of such Account not paid pursuant to any such settlement or compromise.  If the full amount or any portion of any charge is charged back, Bank will assign, without recourse, all rights to payment for the amount charged back to Company upon the request of Company.
		

		
			8.4Delivery of Materials Regarding Chargebacks.  Company will deliver to Bank any correspondence or other materials requested by Bank, or otherwise required in connection with the processing of any chargeback, via such electronic transmission mode as Bank will reasonably designate.  
		

		
			ARTICLE 9TERM AND TERMINATION
		

		
			9.1Program Term.  This Agreement is effective as of the Effective Date and, unless terminated earlier pursuant to Sections 9.2, 9.3 or 9.4, will continue until the end of the seventh (7th) Program Year (the “Initial Term”). This Agreement will automatically renew for successive one year terms (each such renewal term together with the Initial Term, the “Term”) unless either party provides notice of termination at least 12 months prior to the expiration of the then-current Term.
		

		
			9.2Termination of Agreement.  Notwithstanding anything in Section 9.1 to the contrary, this Agreement may be terminated by either party prior to the end of the Term as provided below:
		

		
			(a)      If either party materially breaches any covenant or agreement contained in this Agreement (other than a Service Level Standard governed by Schedule 7.2) which (i) does not involve the payment of money to the other party hereto and such breach continues for a period of [***] days after the non-breaching party has given written notice of the breach, or (ii) involves the payment of money to the other party hereto and such breach continues for a period of [***] days after the non-breaching party has given written notice of the breach.  The foregoing 
		

		
			
		

		
			

		 

		

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			clause (ii) notwithstanding, the failure of a party to make a payment due hereunder will not give rise to a termination right in the other party if such party, acting in good faith, has delivered a written notice to the other party contesting its obligation to make such payment and has paid all uncontested amounts.  In any case, to be effective, a termination notice must be delivered within [***] after the expiration of the applicable notice periods.  This Agreement will terminate [***] after delivery of such notice of termination.
		

		
			(b)      If any representation or warranty made by a party proves not to have been true and correct in all material respects as of the date when made and such failure to be true and correct in all material respects has or is likely to have a material adverse effect on the Program, the Accounts, the other party’s rights hereunder, or the other party’s economic interests, then the other party will have the right to terminate this Agreement.  In order to be effective, the notice of termination must be delivered within [***] after the date such other party first becomes aware that such representation or warranty is not true and correct.  This Agreement will terminate [***] after delivery of such notice of termination.
		

		
			(c)      If a party (i) is no longer Solvent; (ii) generally does not pay its debts as such debts become due, or admits in writing its inability to pay its debts generally; (iii) makes a general assignment for the benefit of its creditors; (iv) has any proceeding instituted by or against it seeking to adjudicate it bankrupt or insolvent or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts under any law relating to bankruptcy, insolvency, or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar official for it or for any substantial part of its property; or (v) takes any corporate action to authorize any of the actions set forth above in (i) through (iv) above, then the other party will have the right to terminate this Agreement.  In order to be effective, the notice of termination must be delivered within [***] after such other party becomes aware of the occurrence of such event; provided, that in the case of an occurrence under clause (iv), this Agreement will terminate automatically unless the parties will mutually agree in writing to continue the Program.  In any case in which notice is required for termination, this Agreement will terminate upon delivery of such notice.
		

		
			(d)      If a party determines in good faith that there has been a material adverse change to the other party and such change has had or is reasonably likely to have a material adverse effect on the ongoing operation or continued viability of the Program or on the operations, financial condition, business or prospects of the affected party, then the determining party will have the right to terminate this Agreement.  In order to be effective, the notice of termination must be delivered within [***] after the terminating party makes such determination.  This Agreement will terminate [***] after delivery of such notice of termination.
		

		
			(e)      Either Bank or Company will have the right to terminate this Agreement upon written notice to the other party hereto, if the performance by the other party of its obligations under this Agreement is prevented or materially impeded, without ability to cure, for a period of not less than [***] by a Force Majeure Event.
		

		
			9.3Termination of Agreement by Company.
		

		
			
		

		
			

		 

		

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			(a)      Company will have the right to terminate this Agreement upon written notice if, with respect to Bank, any of the following events occur:  (i) any person or group of persons deemed to be a single person within the meaning of Section 13 of the Securities Exchange Act of 1934, acquires beneficial ownership of fifty percent (50%) or more of the combined voting power of the then outstanding voting securities of Bank, or effective control of the activities of Bank (through contract, board representation or otherwise) regardless of the percentage of ownership; (ii) the stockholders of Bank approve a reorganization, merger or consolidation (each a “Bank Reorganization”), in each case through which the persons who were the respective beneficial owners of the voting securities of Bank immediately prior to such Bank Reorganization do not beneficially own, following such Bank Reorganization, directly or indirectly, more than fifty percent (50%) of the combined voting power of the then outstanding voting securities of Bank, as a result of such Bank Reorganization; or (iii) all or substantially all of the assets or property of Bank are sold or otherwise disposed of in one transaction or in a series of related transactions;  provided, that Company’s termination right with respect to clauses (i), (ii) and (iii) will not apply to any transfer of ownership, Bank Reorganization or asset disposition where Synchrony Financial owns or controls, directly or indirectly, fifty percent (50%) or more of the combined voting power of the then outstanding voting securities of the entity acquiring the ownership or assets of Bank as contemplated by clauses (i), (ii) or (iii).  In order to be effective, the notice of termination must be delivered [***] after Company becomes aware of the occurrence of such event.  This Agreement will terminate [***] after delivery of such notice of termination.
		

		
			(b)      Company will have the right to terminate this Agreement if there is a Change in Law applicable to Bank which reduces, or could reasonably be expected to reduce, in any material respect the ability of Company to gain access to, or to use, any Cardholder Information or Charge Transaction Data below the level of access and use permitted under Applicable Law immediately prior to the Effective Date, and such reduction in access would be capable of being eliminated or materially mitigated if (i) Company were to terminate this Agreement, (ii) purchase the Program Portfolio (either for itself and its Affiliates or through a third party issuer), and (iii) enter into alternative program arrangements with a third party issuer other than Bank; provided, that Company has first sought to engage Bank in a good faith negotiation to offset the effect of such Change in Law and the parties have not agreed on such an offset within [***].  In order to be effective, the notice of termination must be delivered within [***] after the applicable Change in Law.
		

		
			(c)      Company will have the right to terminate this Agreement if Bank fails to maintain a “Tier 1 capital” ratio (as defined in the applicable federal bank regulations, as amended from time to time) of [***].  Bank will provide notice to Company of any failure to maintain such Tier 1 capital ratio at or above [***] after the filing of Bank’s call report for the applicable Bank fiscal quarter.  In order to be effective, the notice of termination must be delivered to Bank within [***] after Bank has provided notice of the requisite failure for the second consecutive fiscal quarter.
		

		
			(d)      Company will have the termination right set forth in Section 5.4.
		

		
			9.4Termination of Agreement by Bank.  Notwithstanding anything in Section 9.1 to the contrary, this Agreement may be terminated by Bank prior to the end of the Term as provided below.
		

		
			(a)      Bank will have the right to terminate this Agreement upon written notice if, with respect to Company, any of the following events occur:  (i) any person or group of persons deemed to be a single person within the meaning of Section 13 of the Securities Exchange Act of 1934, acquires beneficial ownership of fifty percent (50%) or more of the combined voting power of the then outstanding voting securities of Company, or effective control of the activities of Company (through contract, board representation or otherwise) regardless of the percentage of ownership; (ii) the stockholders of Company approve a reorganization, merger or consolidation (each a “Company Reorganization”), in each case through which the persons who were the respective beneficial owners of the voting securities of Company immediately prior to such Company 

		 

		

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Reorganization do not beneficially own, following such Company Reorganization, directly or indirectly, more than fifty percent (50%) of the combined voting power of the then outstanding voting securities of Company, as a result of such Company Reorganization; or (iii) all or substantially all of the assets or property of Company are sold or otherwise disposed of in one transaction or series of related transactions; provided, that Bank’s termination right with respect to clauses (i), (ii) and (iii) will not apply to any transfer of ownership, Company Reorganization or asset disposition where At Home Group Inc. owns or controls, directly or indirectly, fifty percent (50%) or more of the combined voting power of the then outstanding voting securities of the entity acquiring the ownership or assets of Company as contemplated by clauses (i), (ii) or (iii). In order to be effective, the notice of termination must be delivered within [***] after Bank becomes aware of the occurrence of such event.  This Agreement will terminate [***] after delivery of such notice of termination.
		

		
			(b)      Bank will have the right to terminate this Agreement upon written notice if (i) there is a Change in Law; (ii) Bank determines, in good faith, that such Change in Law has had, or is reasonably likely to have, a material adverse effect on Bank’s ability to provide the Program or perform the transactions contemplated hereby or on Program economics (which material adverse effect, for purposes hereof, will include a drop in [***] generated through the Program of [***] or more); (iii) Bank has sought to engage Company in a good-faith renegotiation of the terms of this Agreement; (iv) the parties hereto have not agreed to modifications to the terms of this Agreement that are reasonably likely to prevent a material adverse effect on the economics of the Program or on Bank (or on its ability to perform the transactions contemplated by this Agreement) resulting from the Change in Law; and (v) either Bank is required to initiate changes to the Program to comply with the applicable Change in Law or more than [***] have passed since Bank first sought to engage Company in a good faith renegotiation of the terms of this Agreement.
		

		
			(c)      Bank will have the right to terminate this Agreement upon written notice if Company’s business changes such that it no longer continues to sell primarily the type of goods and services generally similar to those sold by Company as of the Effective Date.
		

		
			(d)      If, notwithstanding Company’s commercially reasonable efforts to comply (and to cause its Data Vendors to comply) with any guidance or requirements of Bank or Bank’s regulators as required pursuant to Section 5.11(b), such efforts do not result in full remediation of the applicable compliance issues arising from an audit pursuant to Section 5.11(b), Bank will 
		

		
			
		

		
			

		 

		

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			have the right to terminate this Agreement upon [***] days’ written notice.
		

		
			(e)      Bank will have the right to terminate this Agreement upon written notice if At Home Group Inc. fails to maintain Minimum Net Worth (as defined below) of at [***] as of the end of any fiscal quarter of At Home Group Inc.  In order to be effective, Bank’s notice of termination must be delivered to Company within [***] after Bank’s receipt of At Home Group Inc.’s financial statements pursuant to Section 7.4(a) or At Home Group Inc.’s filing of its periodic financial reports with the Securities and Exchange Commission, as applicable, in each case establishing the requisite failure.  As used herein, “Minimum Net Worth” means, with respect to any entity and as of any date of determination, all items which should be included as assets of such entity, less all items which should be included as liabilities of such entity, in each case calculated in accordance with generally accepted accounting principles in the United States.
		

		
			ARTICLE 10EFFECTS OF TERMINATION
		

		
			10.1General Effects.
		

		
			(a)      Following any notice of non-renewal or termination by either party pursuant to Article 9, except as expressly provided for herein to the contrary, each party will continue to perform all of its obligations hereunder until the end of the Term.  Upon any termination of this Agreement, except as contemplated by this Article 10 and the provisions of Section 14.12, all obligations of the parties under this Agreement will cease.
		

		
			(b)      For the avoidance of doubt, any termination of this Agreement will apply to both the PLCC Program and the Co-Brand Program.  Neither Bank nor Company will have the right to terminate the PLCC Program or the Co-Brand Program separately.
		

		
			10.2Purchase Option.
		

		
			(a)      Wind Down Period.  In case this Agreement terminates for any reason, during the Wind Down Period applicable to such termination:    
		

		
			(i)The parties will cooperate and use their commercially reasonable efforts to make an orderly and reasonably expeditious winding-down of the Program and transfer of their respective rights, duties and obligations to Company or the Nominated Purchaser, or to Bank, as applicable, as provided herein.  Upon any early termination of this Agreement pursuant to any of Sections 9.2, 9.3, or 9.4, at the written request of Company, the Agreement may be extended for such period of time as is provided for herein for Company to complete the Company Purchase Option (the “Wind Down Period”); provided, that the Wind Down Period will terminate upon the expiration or earlier termination by Company of the Company Purchase Option as provided for herein.  Except as set forth below in Section 10.2(a)(ii), during any Wind Down Period, all obligations of the parties to (x) maintain and service the Accounts, including (A) Bank originating new Accounts, (B) Bank funding Cardholder Indebtedness, and (C) Company accepting Accounts, will continue in accordance with and subject to the terms of the Agreement, and (y) continue to conduct the Program in accordance with the terms of this Agreement, including with respect to marketing the Program, will continue in full force and effect through the end of such Wind Down Period.
		

		
			
		

		
			

		 

		

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			(ii)Notwithstanding the provisions of Section 10.2(a)(i), if the Agreement is terminated (A) as a result of Company’s violation of any Applicable Law, or (B) in connection with Company having experienced a Security Incident, in either case, to the extent that as a result of such violation or Security Incident Bank’s compliance with Section 10.2(a)(i) above would be reasonably likely to have an adverse impact, in any material respect, on Bank, the Program or the Program Portfolio (each of the events under clause (A) or (B), a “Company Suspension Event”), Bank may, at its option, upon notice to Company, cease performance of its obligations under Section 10.2(a)(i) above, (provided that in the case of clause (x) of Section 10.1(a)(i), Bank may cease funding Cardholder Indebtedness only with respect to Private Label Accounts, but may cease processing and directly settling with Company with respect to Co-Brand Accounts).  Bank’s rights under the preceding sentence will only apply if Company fails to cure such Company Suspension Event within [***] days of notice from Bank of its intention to exercise its rights under such sentence.  Anything in the foregoing to the contrary notwithstanding, if the cure rights set forth in the preceding sentence arise out of the same event that gave rise to an applicable right of Bank to terminate this Agreement pursuant to Sections 9.2 or 9.4, then any cure period related to such termination event will run concurrently with the cure period above.  Upon the occurrence of any Company Suspension Event, Company will use commercially reasonable efforts to cure such Company Suspension Event.
		

		
			(iii)Each party agrees that it will be responsible for its own costs and expenses during the Wind Down Period and not incur any costs or expenses that are reimbursable by the other party in accordance with the terms hereof without the prior approval of such other party.
		

		
			(b)      Program Portfolio Purchase Option.  Solely to the extent that, as of the date of the expiration of the Term, or the date of the earlier termination pursuant to Section 9.2, 9.3, or 9.4, the aggregate Cardholder Indebtedness is [***] Company will have the exclusive option to purchase, or arrange for a third party (a “Potential Purchaser”) to purchase, the Program Portfolio as set forth below.  Such option (the “Company Purchase Option”) will be exercisable in Company’s sole discretion.  Except to the extent specifically set forth in this Section 10.2(b), or in Sections 10.2(c), 10.2(d) or 10.2(e), the periods of time necessary to complete the various phases of the Program Portfolio acquisition will be within the reasonable discretion of Company; provided,  however, each of Company and Bank acknowledges and agrees that (x) in the case of the expiration of the Term pursuant to Section 9.1, Company’s right to exercise the Company Purchase Option will begin [***] prior to the expiration of, and will expire as of the last day of, the Term, (y) upon any earlier termination of the Agreement pursuant to Section 9.2, 9.3, or 9.4, the Company Purchase Option will expire at the end of the [***] following the delivery of the applicable notice of termination (the respective periods set forth in clauses (x) and (y) are referred to as the “Portfolio Purchase Period”), and (z) not later than six months prior to the expiration of the Portfolio Purchase Period, Bank and the Nominated Purchaser must have executed a purchase and sale document setting forth the terms and conditions for the simultaneous closing and conversion of the Program Portfolio. Bank will reasonably cooperate with Company and Nominated Purchaser, and Company will reasonably cooperate with Bank and use commercially reasonable efforts to cause Nominated Purchaser to reasonably cooperate with Bank, in connection with the closing and conversion of the Program Portfolio including as set further set forth in this Section 10.2.
		

		
			
		

		
			

		 

		

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			(c)      Program Portfolio Evaluation Information.
		

		
			(i)Not later than [***] after the earlier of (x) the beginning of the final [***] of the Initial Term, or (y) receipt by either party of a notice of termination, Company may notify Bank in writing (the “Evaluation Notice”) of Company’s intent to evaluate the Program Portfolio for purposes of determining whether to exercise the Company Purchase Option.  If Company does not provide the Evaluation Notice within such 30 day period, the Company Purchase Option will expire.  Upon the timely issuance of an Evaluation Notice, Bank will provide to Company or Potential Purchasers in accordance with this Section 10.2(c)(i): (1) the data and information described [***].  Bank will provide [***] Evaluation Data as soon as reasonably practicable after receiving a request from Company, but in any event, Bank will provide [***] of the Evaluation Notice, and [***] RFP Data.  Company will obtain a customary confidentiality agreement from any Potential Purchaser to which Evaluation Data is provided, and Bank will be made a third party beneficiary to such confidentiality agreement.  Company may share the Evaluation Data provided to Company under this Section 10.2(c)(i) with Potential Purchasers and representatives of Company or such Potential Purchasers for the sole purpose of evaluating the Program Portfolio and the Company Purchase Option, subject to Section 10.2(c)(ii).
		

		
			(ii)Bank’s obligation to provide Evaluation Data to Company or Potential Purchasers, and Company’s and Potential Purchasers’ rights to use such Evaluation Data, will be subject to the following limitations:
		

		
			(A)Company will use its commercially reasonable judgment in determining the number and qualifications of Potential Purchasers who will receive [***] RFP Data and information regarding the Program and Accounts; provided that each Potential Purchaser must have the financial and operational capability to acquire the Program Portfolio and operate a credit card program similar in all material respects to the Program, in each case as reasonably determined by Company;
		

		
			(B)no more than [***] Potential Purchasers will receive [***] RFP Data; and
		

		
			(C)only one Potential Purchaser will be selected by Company to be eligible to consummate the Company Purchase Option (such Potential Purchaser, including Company, if it elects to directly purchase the Program Portfolio pursuant to this Section, is referred to as the “Nominated Purchaser”).
		

		
			Company acknowledges and agrees that, (x) it will select its Nominated Purchaser not less than 10 months prior to the expiration of the Portfolio Purchase Period, and (y) once it has designated a Nominated Purchaser, only the Nominated Purchaser will take part in establishing the purchase price for the Program Portfolio, including establishing its Fair Market Value and negotiating the applicable Program Portfolio acquisition documentation.
		

		
			(d)      Program Portfolio Purchase Price and Valuation.
		

		
			(i)The “Portfolio Purchase Price” for the Program Portfolio will be [***].    
		

		
			
		

		
			

		 

		

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			(ii)The “Fair Market Value” of the Program Portfolio will be determined in accordance with this subsection (d).
		

		
			(A)Within [***] days following Company’s selection of a Nominated Purchaser, and for a period of up to [***] days after Company notifies Bank of such selection (the “Mutual Agreement Period”), the Nominated Purchaser and Bank will meet in good faith to attempt to agree on the Fair Market Value of the Program Portfolio to be so purchased.  If the parties are able to agree upon the Fair Market Value, such agreed upon value will constitute the Fair Market Value for purposes of determining the Portfolio Purchase Price and Company will have [***] days following the end of the Mutual Agreement Period to deliver a notice of Company’s or its Nominated Purchaser’s (if different) intent to purchase the Program Portfolio for the Portfolio Purchase Price (“Purchase Notice”).  If Company fails to deliver the Purchase Notice within such [***] day period, then the Company Purchase Option will expire. 
		

		
			(B)Valuation Experts.
		

		
			(a)If Bank and the Nominated Purchaser are not able to so agree on the Fair Market Value within the Mutual Agreement Period, then, no later than [***] days following the end of the Mutual Agreement Period, the Nominated Purchaser may elect to have the Fair Market Value determined by valuation experts, as set forth in this Section 10.2(d)(ii)(B) (an “Appraisal”) and Company will deliver a Purchase Notice concurrent with such election.  If the Nominated Purchaser fails to request an Appraisal within the [***] day period, the Company Purchase Option will expire.        
		

		
			(b)No later than [***] days following a request for an Appraisal under Section 10.2(d)(ii)(B)(a), Bank and the Nominated Purchaser will (x) each hire, subject to disclosure of any conflicts and approval by the other party, which approval will not be unreasonably withheld or delayed, an independent, nationally recognized accounting firm, investment banker or consulting firm that has expertise in the payment industry and in the credit card portfolio valuation process (the “Bank Expert” and the “Nominated Purchaser Expert,” respectively, and collectively, the “Valuation Experts”) to conduct an Appraisal.  
		

		
			(c)In rendering its valuation, each of the Valuation Experts will agree in writing to value the Program Portfolio pursuant to the assumptions and instructions for determination of Fair Market Value set forth in Schedule 10.2(d). Each Valuation Expert will be provided with the same set of data pertaining to the performance of the Program Portfolio, as specified in Schedule 10.2(d), and such additional information as a Valuation Expert may reasonably request in connection with making its valuation (which requested information will also be provided to the other Valuation Experts).  Bank and the Nominated Purchaser will each obtain a customary confidentiality agreement from the Bank Expert and the Nominated Purchaser Expert (and, if applicable, the Third Expert) and Bank and the Nominated Purchaser will each be made a third party beneficiary to any such confidentiality agreement. 
		

		
			(d)Fair Market Value will be expressed as a percentage and will equal the Par Value plus any premium or minus any discount, as applicable, divided by the Par Value. The Valuation Experts will each render their respective valuations no later than [***] days following the date that both of them have been retained and will provide full, 
		

		
			
		

		
			

		 

		

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			unabridged copies of each of their valuations, including disclosure of all relevant assumptions and a description of the valuation methodology used in rendering their valuations, to Bank and the Nominated Purchaser. If the valuations of the Bank Expert and the Nominated Purchaser Expert deviate by no more [***] of each other, then the average of those two valuations will constitute the Fair Market Value for purposes of the Appraisal. 
		

		
			(e)If the valuations of the Bank Expert and the Nominated Purchaser Expert are not within [***] of the value of the Program Portfolio) of each other, then the Bank Expert and the Nominated Purchaser Expert will select a third valuation expert (the “Third Expert”), which will receive the same information and assumption instructions as the first two Valuation Experts and will make a third determination of Fair Market Value within ten (10) Business Days after being notified of its selection.  In such case, the Fair Market Value will be determined by reference to the Third Expert’s valuation as follows:  If the Third Expert’s valuation is equal to either the Bank Expert’s or the Nominated Purchaser Expert’s valuation, then the Third Expert’s valuation will constitute the Fair Market Value for purposes of the Appraisal. If the Third Expert’s valuation is inside the range bounded by the Bank Expert’s and the Nominated Purchaser Expert’s valuation, then the average of the two valuations that are closest in amount to each other will constitute the Fair Market Value for purposes of the Appraisal. If the Third Expert’s valuation is outside the range bounded by the Bank Expert’s and the Nominated Purchaser Expert’s valuation, then the median of the three valuations will constitute the Fair Market Value for purposes of the Appraisal.  Each of Bank and the Nominated Purchaser will pay the fees and expenses of its respective Valuation Expert and one-half of the fees and expenses of the Third Expert.
		

		
			(e)      Program Portfolio Purchase Process.    
		

		
			(i)In connection with the sale of the Program Portfolio, as expeditiously as practicable after the Portfolio Purchase Price has been established and Company has provided a Purchase Notice to Bank, Bank and the Nominated Purchaser will negotiate in good faith and execute and deliver all necessary agreements, instruments and other documentation customary for a transaction of this kind, including a purchase and sale agreement that contemplates a simultaneous closing and conversion, which agreements may require each of Bank and the Nominated Purchaser to agree to certain representations, warranties, covenants, indemnities, and other terms and conditions usual and customary for a transaction of this kind.  Additionally, (x) Bank will use commercially reasonable efforts to remove any Accounts related to the conveyance of the Program Portfolio out of a securitization or other funding vehicle, if applicable, and otherwise remove any encumbrances and terminate any liens on the Cardholder Indebtedness, and (y) each of Bank and the Nominated Purchaser will cooperate in connection with and use commercially reasonable efforts to file or obtain on an expedited basis any regulatory filings or regulatory approvals or take such other actions to fulfill regulatory requirements that may be required of such party to facilitate a timely sale and conversion of the Program Portfolio.  Bank and the Nominated Purchaser will execute the operative purchase and sale agreement not later than six months prior to the expiration of the Portfolio Purchase Period and will use their respective commercially reasonable efforts to consummate the sale of the Program Portfolio as soon as reasonably practicable after the determination of Fair Market Value (“Portfolio Sale Closing Date”); provided,  however, the Portfolio Sale Closing Date and the conversion of the Program Portfolio to the Nominated Purchaser’s systems will occur 
		

		
			
		

		
			

		 

		

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			simultaneously and the Portfolio Sale Closing Date will not be (1) earlier than the  expiration of the Agreement as contemplated in Section 9.1, or (2) later than the expiration of the Portfolio Purchase Period.  Bank and Company will use commercially reasonable efforts to expeditiously take all such additional actions as may be reasonably required in order to consummate the purchase of the Program Portfolio as contemplated hereby; provided,  however, that if a Potential Purchaser fails to purchase the Program Portfolio on the Portfolio Sale Closing Date and the parties and the Potential Purchaser fail to reach mutual agreement on a Portfolio Sale Closing Date extension, the Company Purchase Option will terminate. Notwithstanding anything to the contrary in this Agreement, if Company exercises its right to purchase or arrange for a Nominated Purchaser to purchase the Program Portfolio, Company shall have the right to communicate with Cardholders [***] regarding the fact of, proposed timing of, and general expectations for the new Credit Card program after the date of execution of the purchase and sale agreement, the content of which communication will be subject to Bank’s consent, such consent not to be unreasonably withheld or delayed; provided that any communication with Cardholders required by Applicable Law applicable to Company as determined by Company in its good faith discretion shall not be subject to Bank’s consent.
		

		
			(ii)Company will be responsible for the compliance by the Nominated Purchaser with any requirements placed upon it pursuant to this Section 10.2.  Each of Bank and the Nominated Purchaser will bear its own costs associated with the sale and conversion of the Program Portfolio.
		

		
			10.3Rights Upon Termination.    
		

		
			(a)      If this Agreement expires or is terminated and Company gives written notice that it will not exercise its purchase option or the Wind Down Period has otherwise ended (the “Purchase Termination Date”) without the Nominated Purchaser having acquired the Program Portfolio, Bank will have the right, in addition to and without waiving any other rights it may have under the terms of this Agreement or Applicable Law, to (i) close credit lines and liquidate any or all of the Accounts; (ii) convert any or all of the Accounts to another program (or programs) maintained by Bank or any of its Affiliates, other than any such program branded with the brand of a Competitive Retailer, or (iii) sell any or all of the Accounts, whether by securitization or otherwise to any third party, other than to a Competitive Retailer, or (iv) any combination of (i), (ii) and (iii).  In connection with its rights under the preceding sentence, Bank may, for a period of up to six months following the Purchase Termination Date, (1) continue to use the Company Marks (without re-branding) to communicate with Cardholders and authorized users in connection with Bank’s ordinary course Account collection, billing and other Program-related administration activities, and (2) continue the purchase utility of all Credit Cards that were issued and outstanding prior to the Purchase Termination Date (without re-branding).  From and after the expiration of such six-month period, Bank may continue to use Company’s name (non-stylized) in the nominative sense for the purpose of identifying the Program in connection with Bank’s ordinary course Account collection, billing and other Program-related administration activities.  The foregoing notwithstanding, after the expiration of such six-month period, upon written notice by Bank, Company will continue to accept Private Label Credit Cards as payment for goods and services sold through Store Locations (or any other Company sales channels through which Private Label Credit Cards are then accepted) for a period designated by Bank but not to exceed a total [***] after the Purchase Termination Date (the “Tail 
		

		
			
		

		
			

		 

		

			38

		

 

		

		
			Period”) and Bank will not be required to re-brand the Private Label Credit Cards until the expiration of the Tail Period.  
		

		
			(b)      Company may retain such Cardholder Authorized Data that has been incorporated into its loyalty program data base following the Purchase Termination Date; provided that Company may only use such Cardholder Authorized Data for the purposes set forth in clauses (B) and (D) of Section 13.2(a)(i), or otherwise in a manner consistent with Company’s use of the data of all other members of its loyalty program.  Company agrees that its use of Cardholder Authorized Data will at all times comply with Applicable Law (including honoring opt-out requests).  Anything in this Section 10.3(b) to the contrary notwithstanding, [***] following the Purchase Termination Date, Company will not, and will not permit any third parties to, use the Cardholder Authorized Data incorporated into its loyalty program database (or otherwise in Company’s possession) to target any Cardholder for solicitations with respect to any financial products and services that compete with Bank’s financial products or services.
		

		
			ARTICLE 11REPRESENTATIONS AND WARRANTIES
		

		
			11.1Representations and Warranties.  Each party makes the following representations and warranties to the other party as of the date of this Agreement:
		

		
			(a)      Such party is duly organized, validly existing, and in good standing under the laws of its jurisdiction of incorporation or organization, as the case may be;
		

		
			(b)      Such party has the requisite organizational power and authority to conduct its business as presently conducted and hereafter contemplated to be conducted and to execute, deliver and perform this Agreement;
		

		
			(c)      This Agreement has been duly executed and delivered by such party, and constitutes the legal, valid, and binding obligation of such party, enforceable against such party in accordance with its terms;
		

		
			(d)      The execution and delivery of this Agreement by such party and the consummation of the transactions contemplated hereby do not and will not (i) conflict with the organizational documents of such party, (ii) conflict with, or result in a breach of any provisions of, or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under any material agreement of such party; or (iii) constitute a violation of any material order, judgment or decree to which such party is bound.  No consent, approval, permit, waiver, authorization, notice or filing is required to be made or obtained in connection with the execution, delivery and performance by such party of this Agreement; and
		

		
			(e)      All information furnished by such party in writing to the other for purposes of or in connection with this Agreement is true and correct in all material respects and no such information omits to state a material fact necessary to make the information so furnished not misleading.  Except as disclosed to the other party, there is no fact known to such party (including threatened or pending litigation) that could materially and adversely affect the financial condition, business, property, or prospects of such party.
		

		
			
		

		
			

		 

		

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			ARTICLE 12INDEMNIFICATION
		

		
			12.1Indemnification by Bank.  Bank will indemnify and defend Company, its Affiliates, and their respective employees, officers, directors and agents, from and against all Damages to the extent such Damages arise out of, are connected with or result from: 
		

		
			(a)      Any breach by Bank of any of the covenants, representations, warranties or other terms or provisions contained in this Agreement;
		

		
			(b)      Any negligent act (or omission where there was a duty to act) by Bank or its employees, officers, directors, or agents in connection with Bank’s performance under this Agreement;
		

		
			(c)      Any advertisements, solicitations or other promotions of the Program by Bank; 
		

		
			(d)      Any activities, acts or omissions of any third party to whom Cardholder Information is transferred or made available by Bank; 
		

		
			(e)      Company’s use of Bank’s marks, logos or similar proprietary designations in accordance with the terms of this Agreement; or
		

		
			(f)      Actions Company takes, in performance of its obligations and responsibilities, that are required by Bank in the Operating Procedures or any other written directives, procedures or instructions provided by Bank.
		

		
			The foregoing indemnity obligations of Bank will not apply to any Damages of Company to the extent caused by the gross negligence, willful misconduct or illegal acts of Company or its Affiliates.
		

		
			12.2Indemnification by Company.  Company will indemnify and defend Bank, its Affiliates, and their respective employees, officers, directors and agents, from and against all Damages to the extent such Damages arise out of, are connected with, or result from:
		

		
			(a)      Any breach by Company of any of the covenants, representations, warranties or other terms or provisions contained in this Agreement;
		

		
			(b)      Any negligent act (or omission where there was a duty to act) by Company or its employees, officers, directors or agents in connection with Company’s performance under this Agreement;
		

		
			(c)      Any advertisements, solicitations or other promotions of the Program or of goods or services eligible for purchase under the Program conducted by or on behalf of Company (except to the extent of any Damages for which Bank is obligated to indemnify 
		

		
			
		

		
			

		 

		

			40

		

 

		

		
			Company pursuant to Section 12.3), including Company’s use of Company-Generated Materials that have not been approved by Bank;
		

		
			(d)      Any activities, acts or omissions of any third party to whom Cardholder Information is transferred or made available by Company, including information transferred or made available to a third party by Bank at Company’s request; 
		

		
			(e)      Bank’s use of the Company Marks in accordance with the terms of this Agreement; or
		

		
			(f)      Any products or services sold by Company (including any failure to provide the service as promised, any product defects, or product liability or warranty claims relating thereto).
		

		
			The foregoing indemnity obligations of Company will not apply to any Damages of Bank to the extent caused by the gross negligence, willful misconduct or illegal acts of Bank or its Affiliates.
		

		
			12.3Advertising Indemnity.  In addition to Bank’s indemnification obligations under Section 12.1, Bank will indemnify and defend Company, its Affiliates, and their respective officers, directors, employees, and agents from any Damages to the extent arising out of any claim or complaint resulting solely from Company’s use of any Approved Template or Approved Advertisement; provided, that Bank will have no obligation to indemnify Company under this Section 12.3 for such Damages to the extent that such Damages arose from or occurred because (i) Company failed to use any Approved Advertisement or Approved Template in the manner directed by Bank as contemplated by Sections 5.11(f) or Schedule 5.11, as applicable, or (ii) Company or its agents did not conduct, implement or offer the corresponding promotional program.  Anything in the foregoing of this Section 12.3 to the contrary notwithstanding, Company will remain responsible and liable for its compliance with Applicable Law with respect to (x) Company or its business, including the advertisement, solicitation or promotion of its goods or services, and (y) the content of any advertisements, solicitations or other promotions of the Program, including as set forth in any Approved Template or Approved Advertisement, in any such case, other than with respect to (I) the credit disclosure language included in any Approved Template or Approved Advertisement, or (II) any other Program-related consumer credit aspects of any Approved Template or Approved Advertisement.
		

		
			12.4Indemnification Procedures.
		

		
			(a)      A party entitled to indemnification will give prompt written notice to the indemnifying party of any claim, assertion, event, condition or proceeding by any third party concerning any liability or damage as to which it may request indemnification under this Article 12.  The failure to give such notice will not relieve the indemnifying party from liability hereunder unless and solely to the extent the indemnifying party (i) did not know of such third party claim, and (ii) such failure results in the forfeiture by the indemnifying party of material rights and defenses.
		

		
			
		

		
			

		 

		

			41

		

 

		

		
			(b)      An indemnifying party will have the right, upon written notice to the indemnified party, to conduct at its expense the defense against such third party claim in its own name, or, if necessary, in the name of the indemnified party.  When the indemnifying party assumes the defense, the indemnified party will have the right to approve the defense counsel, such approval not to be unreasonably withheld or delayed, and to conduct the defense in its reasonable discretion; provided, that the indemnified party will have no liability for any compromise or settlement of any third party claim that is effected without its prior written consent (such consent not to be unreasonably withheld), unless the sole relief provided is monetary damages that are paid in full by the indemnifying party and such compromise or settlement includes a release of each indemnified party from any liabilities arising out of the third party claim.  If the indemnifying party delivers a notice electing to conduct the defense of the third party claim, the indemnified party will, at the indemnifying party’s expense, cooperate with and make available to the indemnifying party such assistance, personnel, witnesses and materials as the indemnifying party may reasonably request.  If the indemnifying party does not deliver a notice electing to conduct the defense of the third party claim, the indemnified party will have the sole right to conduct such defense and the indemnified party may pay, compromise or defend such third party claim or proceeding at the indemnifying party’s expense.  Regardless of which party defends the third party claim, the other party will have the right at its sole expense to participate in the defense assisted by counsel of its own choosing.
		

		
			ARTICLE 13USE OF INFORMATION
		

		
			13.1Ownership and Use of Cardholder Information.  The parties recognize that Cardholders are customers of both parties and that each party has certain ownership rights in information relating to those Cardholders.  The parties acknowledge that the same or similar information may be contained in Cardholder Information and in Company Customer Information, and that each such pool of data will therefore be considered separate information subject to the specific provisions applicable to that data hereunder.  As between Company and Bank, Company is the owner of the Company Customer Information, and Company Customer Information will be deemed Company’s Confidential Information, and not Bank’s Confidential Information.  As between Company and Bank, Bank is the owner of the Cardholder Information, and Cardholder Information will be deemed Bank’s Confidential Information, and not Company’s Confidential Information; provided,  however, that ownership of the Cardholder Information for the Program Portfolio will transfer to Company or its designee in the event Company exercises its option to purchase or arrange for the purchase of the Program Portfolio and related Cardholder Indebtedness and such purchase is consummated in accordance with Section 10.2, and upon such transfer, as between Bank and Company, the Cardholder Information will become Company’s Confidential Information.  
		

		
			13.2Use and Disclosure of the Cardholder Information and Company Customer Information.
		

		
			(a)      Cardholder Information.    
		

		
			(i)Subject to Applicable Law and the Bank Privacy Policy, Company may use, and permit to be used, the Cardholder Information solely (A) for promotion of the 
		

		
			
		

		
			

		 

		

			42

		

 

		

		
			Program; (B) subject to compliance with Section 6.1, for promotion of products and services sold by or through Company; (C) as otherwise appropriate to carry out its obligations or exercise its rights under this Agreement; and (D) as required by Applicable Law.    
		

		
			(ii)Company may disclose, or permit to be disclosed, the Cardholder Information in compliance with Applicable Law and the Bank Privacy Policy solely (A) to the Network as required by the Network Rules; (B) to its subcontractors in connection with a permitted use of the Cardholder Information under Section 13.2(a)(i); provided,  however, that each such subcontractor agrees to be bound by this Section 13.2(a), or a comparable contractual commitment with the same effect; (C) to Company’s Affiliates and to Company’s and its Affiliates’ employees, agents, attorneys and accountants, in each case with a need to know such Cardholder Information in connection with a permitted use of such Cardholder Information under this Section 13.2(a); provided,  however, that any such person is bound by terms substantially similar to this Section 13.2(a) as a condition of employment or of access to Cardholder Information or by professional obligations imposing comparable terms; and (D) to any governmental authority with authority over Company (1) in connection with an examination of Company; or (2) pursuant to a specific requirement to provide such Cardholder Information by such governmental authority or pursuant to compulsory legal process; provided,  however, that, with respect to subclause (D)(2), Company will (x) unless the Cardholder (or an individual who has submitted an Application to become a Cardholder) has consented to Company’s provision of the Cardholder Information to the governmental authority (e.g., by writing a letter to a regulator), seek the full protection of confidential treatment for any disclosed Cardholder Information to the extent available under Applicable Law governing such disclosure, (y) to the extent permitted by Applicable Law, provide at least [***] Business Days’ prior notice of such proposed disclosure to Bank if reasonably possible under the circumstances and (z) seek to redact Cardholder Information to the fullest extent Company determines is reasonable under Applicable Law governing such disclosure.    
		

		
			(iii)During the Term, Bank will provide to Company, in a format to be mutually agreed upon by the parties, with respect to Cardholders, (x) the data set forth on Schedule 13.2(a) (unless prohibited by Applicable Law), and (y) such additional information about Cardholders as Company may reasonably request from time to time, subject to Bank’s approval, which will not be unreasonably withheld or delayed (collectively, “Cardholder Authorized Data”).  Bank will provide the Cardholder Authorized Data to Company (1) monthly within [***] days following the end of each month during the Term in respect of the preceding month, (2) in a manner consistent with Applicable Law, and (3) subject to and in accordance with the Bank Privacy Policy.  Company acknowledges that, in order for Company to receive the Cardholder Authorized Data hereunder and exercise its rights arising hereunder with respect thereto, the systems of Company and its Affiliates that receive the Cardholder Authorized Data must comply with the data security standards set forth in Section 13.4.
		

		
			(b)      Company Customer Information.    
		

		
			(i)Bank acknowledges that Company has rights to use and disclose Company Customer Information independent of whether such information also constitutes Cardholder Information.  Bank may use Company Customer Information only as expressly authorized by this Agreement or otherwise by Company in writing, and only in accordance with 
		

		
			
		

		
			

		 

		

			43

		

 

		

		
			Applicable Law and the Company Privacy Policy.
		

		
			(ii)Bank may disclose, or permit to be disclosed, the Company Customer Information in compliance with Applicable Law solely:
		

		
			(A)to its subcontractors in connection with a permitted use of such Company Customer Information under this Section 13.2(b); provided,  however, that (I) each such subcontractor agrees to be bound by this Section 13.2(b), or a comparable contractual commitment with the same effect, and (II) Bank will be responsible for the compliance of each such subcontractor with the terms of this Section 13.2(b);  
		

		
			(B)to Bank’s Affiliates and to Bank’s and its Affiliates’ employees, agents, attorneys and accountants with a need to know such Company Customer Information in connection with a permitted use of such Company Customer Information under this Section 13.2(b); provided,  however, that (I) any such person is bound by terms substantially similar to this Section 13.2(b) as a condition of employment, of access to Company Customer Information or by professional obligations imposing comparable terms; and (II) Bank will be responsible for the compliance of each such person with the terms of this Section 13.2(b); or
		

		
			(C)to any governmental authority with authority over Bank or its Affiliates (I) in connection with an audit or examination of Bank or such Affiliate; or (II) pursuant to a specific requirement to provide such Company Customer Information by such governmental authority or pursuant to compulsory legal process; provided,  however, that, with respect to subclause (II), Bank will (i) seek the full protection of confidential treatment for any disclosed Company Customer Information to the extent available under Applicable Law governing such disclosure (ii) to the extent permitted by Applicable Law, provide at least 10 Business Days’ prior notice of such proposed disclosure to Company if reasonably possible under the circumstances, and (iii) seek to redact Company Customer Information to the fullest extent possible under Applicable Law governing such disclosure.
		

		
			(c)      Upon the expiration or termination of this Agreement, Bank’s rights to use and disclose the Company Customer Information will terminate.  Following such expiration or termination, Bank will return or destroy all Company Customer Information in accordance with Bank’s retention and disposition policies; provided,  however, that, if Bank is obligated to retain any Company Customer Information pursuant to Applicable Law, Bank will maintain the strict confidentiality and security of such Company Customer Information in accordance with the terms of this Agreement and will not use such Company Customer Information for any other purpose.
		

		
			(d)      In addition, Company will use commercially reasonable efforts to modify the Company Privacy Policy to allow Company to (and thereafter Company will) provide Bank with Company Customer Information in order to enable Bank to make pre‐screened offers of credit to such customers (“Pre‐screen Customer Information”) or to otherwise solicit such customers for Accounts to the extent agreed to by the parties.  Bank acknowledges and agrees that Bank’s receipt and use of such Pre‐screen Customer Information will be subject to the Company Privacy Policy, will be owned by Company and will be Company’s Confidential Information.
		

		
			
		

		
			

		 

		

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			13.3Confidentiality. 
		

		
			(a)      Subject to Bank’s rights under Section 5.9, each party will keep confidential the other party’s non-public information received or obtained in connection with the Program (“Confidential Information”), as well as the terms of this Agreement, and will use it only in connection with the Program and performing its obligations under this Agreement.  Confidential Information will exclude information that:  (i)  was in the public domain (through no fault of the receiving party) prior to the time of the disclosing party’s communication thereof to the receiving party; (ii) was in the receiving party’s possession free of any obligation of confidence at the time of the disclosing party’s communication thereof to the receiving party, (iii) is required by Applicable Law, court or government order to be disclosed; or (iv) the disclosing party has authorized the receiving party, in writing, to freely disclose.  Each party will promptly return or destroy the other party’s Confidential Information upon termination of this Agreement.  Notwithstanding the foregoing, the provisions of this Section 13.3 will not govern the use and disclosure of Cardholder Information or Company Customer Information, each of which is governed by Sections 13.1, 13.2, and 13.4, as applicable.  Nothing in this Section will prohibit Bank from providing Confidential Information to Bank’s regulator or the rating agencies.
		

		
			(b)      Section 13.3(a) to the contrary notwithstanding, if Company is obligated to file periodic reports with the Securities and Exchange Commission, then Company will have the right to file a copy of this Agreement with the applicable commission or governmental authority to the extent necessary, in Company’s reasonable opinion, to comply with any applicable disclosure laws or regulations (including any reporting requirement of the Securities and Exchange Commission), or any listing requirement of any stock exchange, including NASDAQ, applicable to Company; provided, that Company will (i) use its commercially reasonable efforts to notify Bank in writing not less than 15 days prior to any such filing of this Agreement and (ii) to the extent permitted by Applicable Law, redact such terms of this Agreement as Bank may reasonably request prior to any such filing pursuant to a confidential treatment request submitted to the Securities and Exchange Commission with respect to such redacted document in connection with any such filing, and use its commercially reasonable efforts to maintain the initial redactions where practicable in response to any Securities and Exchange Commission comment or review of such request for confidential treatment.  
		

		
			13.4Privacy.
		

		
			(a)      Company and Bank will only use, maintain and disclose Cardholder Information in compliance with this Agreement, all applicable privacy and security laws and with the Bank Privacy Policy, and each will ensure that persons to whom it transfers Cardholder Information do the same.  The parties acknowledge that the reuse and redisclosure provisions of the Gramm-Leach-Bliley Act (the “Gramm-Leach-Bliley Act” as defined in Title V, Subtitle A of 15 U.S.C. 6801 et seq. and the implementing privacy and security regulations issued pursuant to the Gramm-Leach-Bliley Act) apply to the use of Cardholder Information generated through the Program. Company will use Cardholder Information it receives from Bank under the “private label exception” found in the Gramm-Leach-Bliley Act only in connection with the Program. 
		

		
			(b)      Company and Bank will each establish and maintain appropriate 
		

		
			
		

		
			

		 

		

			45

		

 

		

		
			administrative, technical and physical safeguards to protect the security, confidentiality and integrity of the Cardholder Information.  These safeguards will be designed to protect the security, confidentiality and integrity of the Cardholder Information, and ensure against any anticipated threats or hazards to its security and integrity, protect against unauthorized access to or use of such information or associated records which could result in substantial harm or inconvenience to any Cardholder or applicant.
		

		
			(c)      Company and Bank will each ensure that any third party to whom it transfers or discloses Cardholder Information signs a written contract with the transferor in which such third party agrees to (i) restrict its use of Cardholder Information to the use specified in the written contract, (ii) to comply with Applicable Law (including privacy and security laws and the reuse and redisclosure provisions of the Gramm-Leach-Bliley Act) and the Bank Privacy Policy, and (iii) implement and maintain appropriate safeguards as stated in paragraph (b) above.  Information transferred by Bank on Company’s behalf or at Company’s direction will be considered information transferred by Company hereunder.  Company agrees to transfer or make available to third parties only such Cardholder Information as is reasonably necessary to carry out a contemplated task permitted hereunder.
		

		
			(d)      Company and Bank will notify the other party immediately following discovery or notification of any actual breach (or threatened breach that is reasonably likely to result in misuse of Cardholder Information) of security of the systems maintained by Company and Bank, respectively.  The party that suffers the breach of security (the “Affected Party”) agrees to take action immediately, at its own expense, to investigate the actual or threatened breach, to identify and mitigate the effects of any such breach and to implement reasonable and appropriate measures in response to such breach.  The Affected Party also will provide the other party with all available information regarding such breach to assist that other party in implementing its information security response program and, if applicable, in notifying affected Cardholders.  For the purposes of this subsection (d), the term “breach of security” or “breach” means the unauthorized access to or acquisition of any record containing personally identifiable information relating to a Cardholder, whether in paper, electronic, or other form, in a manner that renders misuse of the information reasonably possible or that otherwise compromises the security, confidentiality, or integrity of the information.
		

		
			(e)      Notwithstanding anything else contained in this Agreement, neither Bank nor Company will, and neither of them will be obligated to, take any action that such party believes in good faith would violate, any Applicable Law applicable to such party (including privacy and security laws and the reuse and redisclosure provisions of the Gramm-Leach-Bliley-Act) or the Bank Privacy Policy, or that would cause either of them to become a “consumer reporting agency” for purposes of the federal Fair Credit Reporting Act. For purposes of this Section 13.4(e), Applicable Law with respect to Company shall not include any Applicable Law for which Bank is required to provide notice under Section 1.2(j), if Bank has not provided such notice and Company otherwise does not have actual knowledge of such Applicable Law. 
		

		
			(f)      Company and Bank, respectively, will use reasonable measures designed to properly dispose of all records containing personally identifiable information relating to Cardholders, whether in paper, electronic, or other form, including adhering to policies and procedures that require the destruction or erasure of electronic media containing such personally 
		

		
			
		

		
			

		 

		

			46

		

 

		

		
			identifiable information so that the information cannot practicably be read or reconstructed.
		

		
			ARTICLE 14MISCELLANEOUS
		

		
			14.1Assignment; Delegation; Binding Effect.  Neither Bank nor Company may assign its rights or obligations under this Agreement without the prior written consent of the other party, which consent will not be unreasonably withheld, provided that either party may, without such consent assign all or part of its rights or obligations under this Agreement to an Affiliate, provided that the assigning party remains liable for its obligations hereunder and the assignee agrees in writing to comply with the terms and conditions of this Agreement. In addition, subject to any limitations or requirements set forth herein, each party may use Affiliates, third-party service providers or agents to perform its obligations under this Agreement on condition that the applicable party remains responsible and liable for the performance of such obligations.  This Agreement is binding upon and inures to the benefit of the parties hereto and their respective successors and permitted assigns.
		

		
			14.2Intellectual Property.  All technology, software, or other material developed, invented, created or authored by either party in connection with the Program will belong solely and exclusively to the developing party, including all intellectual property rights relating thereto.
		

		
			14.3Governing Law; Waiver of Jury Trial.  Except to the extent superseded by federal law applicable to banks or savings associations, this Agreement and all rights and obligations hereunder, including matters of construction, validity and performance, will be governed by and construed in accordance with the laws of the State of Utah.  THE PARTIES HERETO WAIVE THEIR RIGHT TO REQUEST A TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING IN ANY COURT OF LAW, TRIBUNAL, OR OTHER LEGAL PROCEEDING ARISING OUT OF OR INVOLVING THIS AGREEMENT, OR ANY DOCUMENT DELIVERED IN CONNECTION HEREWITH, OR RELATING TO ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.
		

		
			14.4No Third Party Beneficiaries.  Except as otherwise expressly set forth in this Agreement, this Agreement does not confer upon any person, other than the parties, any rights or remedies under this Agreement.
		

		
			14.5Relationship of the Parties.  For all purposes, including U.S. federal, state and local tax purposes, nothing contained in this Agreement will be construed to constitute Company and Bank as partners, joint venturers, principal and agent, or employer and employee, and neither party will hold itself out as a partner with the other in a partnership or joint venture. Company and Bank each agree to such further actions as the other may reasonably request to evidence and affirm the non-existence of any such relationship.  Company and Bank are each independent contractors with regard to this 
		

		
			
		

		
			

		 

		

			47

		

 

		

		
			Agreement, and each party will take all measures necessary to ensure that its status is that of an independent contractor. 
		

		
			14.6Notices.  All notices and communications given under this Agreement must be in writing and must be sent by hand, by facsimile (with verbal confirmation of receipt), by certified mail, return receipt requested, or by nationally recognized overnight courier service addressed to the party to whom such notice or other communication is to be given or made as such party’s address as set forth below and will be deemed given three Business Days after being sent by certified mail, one Business Day after being sent by overnight courier service, or immediately upon in-person delivery by hand, as follows:
		

			
					
						If to Company:

					
						At Home Stores LLC

					
						1600 East Plano Parkway

					
						Plano, Texas75074

					
						Attn: Judd T. Nystrom 

					
						Email: JNystrom@athome.com

					
						 

					
					
						If to Bank:

					
						Synchrony Bank

					
						170 Election Road, Suite 125

					
						Draper, Utah, 84020

					
						Attn: President

					
						 

				
	
					
						With a Copy, if sent electronically, to:

					
						Mary Jane Broussard

					
						Email: Mbroussard@athome.com

					
						 

					
					
						With a Copy to:

					
						 

					
						Synchrony Bank

					
						777 Long Ridge Road

					
						Stamford, CT 06902

					
						Attn:  General Counsel 

					
						 

				

		
			provided,  however, that a party may notify the other party in writing (in accordance with the notice provisions in this Section) from time to time of an alternative address for notices under 
		

		
			 
		

		
			\this Section and, in such case, notices hereunder will be effective if sent to the last address so designated.
		

		
			14.7Nonwaiver; Remedies Cumulative; Severability.  All remedies are cumulative and not exclusive, and no delay in exercising a right will be deemed a waiver thereof.  If any provision of this Agreement is held to be invalid, void or unenforceable, all other provisions will remain valid and be enforced and construed as if such invalid provision were never a part of this Agreement.
		

		
			14.8Damages Waiver.  Notwithstanding anything to the contrary in this Agreement, Bank and Company will not be liable to the other under or in connection with this Agreement or the Program for any indirect or consequential damages, or for any punitive or exemplary damages; provided, that the damages limitation set forth in this Section 14.8 will not apply to any Damages arising out of the 
		

		
			
		

		
			

		 

		

			48

		

 

		

		
			failure of the parties under Sections 6.1, 13.3 or 13.4 above, or from Damages which result from an obligation of Bank or Company to pay any third party damages claims to the extent such third party claims otherwise fall under Bank’s or Company’s respective indemnity obligations hereunder.    
		

		
			14.9Entire Agreement; Amendments.  This Agreement (together with the schedules, exhibits and appendices attached to this Agreement) is the entire agreement of the parties with respect to the subject matter of this Agreement and supersedes all other prior understandings, writings and agreements whether written or oral.  Each of the schedules, exhibits, and appendices attached hereto is hereby incorporated by reference.  This Agreement may not be amended except by written instrument signed by Company and Bank.
		

		
			14.10Executive Escalation; Dispute Resolution
		

		
			(a)      If a dispute arising in connection with this Agreement cannot be adequately resolved by the employees who are responsible for the day-to-day aspects of the subject matter involved in the dispute, then the parties will refer the dispute to their respective Program Managers, who will promptly meet and discuss the dispute in good faith in an attempt to resolve it. If the Program Managers cannot promptly reach a resolution, the Management Committee will discuss the dispute during its next scheduled meeting unless either party determines that the dispute requires action before that meeting.  If the Management Committee cannot resolve a dispute that is referred to it by the Program Managers, or fails to agree with respect to any matter submitted for its review, or a resolution must be reached before the Management Committee’s next schedule meeting, then the parties will escalate the dispute or matter to their respective senior executive officers, which executives will meet in person or by phone within 10 calendar days (or such longer time period as the executives may agree in writing) of the escalation and will discuss the dispute in good faith in an attempt to resolve it. 
		

		
			(b)      Any dispute among the parties arising out of or relating to this Agreement, including with respect to the interpretation of any provision of this Agreement, shall be submitted to the dispute resolution process set forth in Section 14.10(a). To the extent that the subject matter of the dispute relates to a matter other than a matter as to which the Managing Committee is charged with the final decision making authority hereunder pursuant to Section 4.2 (whether by virtue of Company’s rights with respect to Company Matters or either party’s rights with respect to matters deemed rejected upon deadlock pursuant to such Section 4.2(c)), in the event that the parties shall fail to resolve the dispute pursuant to Section 14.10(a), the parties shall submit the dispute to mandatory and binding arbitration administered by the American Arbitration Association (“AAA”) in accordance with its Commercial Arbitration Rules (the “Rules”) in effect on the date of the commencement of the arbitration, and applying the substantive law set forth in Section 14.3.  The place of arbitration shall be New York City, New York. There shall be one arbitrator agreed to by the parties within 20 days of the parties’ submission of the dispute for arbitration or in default thereof appointed by the AAA in accordance with the Rules.  The arbitrator shall have the authority to award reasonable fees and costs to the prevailing party relating to that aspect of its claim or defense on which it prevails.  The award of the arbitrator shall be final and binding on the parties, and judgment may be 
		

		
			
		

		
			

		 

		

			49

		

 

		

		
			entered on the award and enforced by any court of competent jurisdiction.  Notwithstanding anything in this Section 14.10(b) to the contrary, each party shall have the right  to seek injunctive relief or other equitable relief from a court of competent jurisdiction as may be necessary to avoid irreparable harm, maintain the status quo or preserve the subject matter of the arbitration.
		

		
			14.11Further Assurances.  Company and Bank agree to execute all such further documents and instruments and to do all such further things as any other party may reasonably request in order to give effect to and to consummate the transactions contemplated by this Agreement.
		

		
			14.12Survival.  All representations and indemnities contained in this Agreement, and the parties’ obligations under Sections 1.3(h) (relating to record retention), 5.1 (Ownership of Accounts), 5.6 (Third Party Participation), 5.7 (Taxes), 5.8 (Use of Names and Marks), 5.11 (Audit and Compliance), 7.4 (Company Financial Reports), Article 8 (Chargebacks), Article 10 (Effects of Termination), Article 12 (Indemnification), Article 13 (Use of Information) and Article 14 (Miscellaneous), will survive the expiration or termination of this Agreement.  During any Tail Period that may be in effect, the parties’ obligations under Sections 1.3(b) (relating to acceptance of Credit Cards), 1.3(c) (relating to training), 1.3(d) (relating to performance of responsibilities in compliance with Applicable Law), 1.3(g) (relating to return policies and crediting Accounts), 1.3(i) (relating to non-discrimination on Account transactions), 1.3(j) relating to submission of Charge Transaction Data), 1.4 (Network Rules), 4.6(c) (relating to funding loyalty value proposition), 5.4 (Operating Procedures), 5.10 (Extended Warranties; Gift Certificates; Stored Value Cards); 14.14 (Internet Gambling) and Article 2 (Settlement and Payment Terms) will also remain in effect.  In addition, for the Tail Period plus six months thereafter, the parties’ obligations under Section 1.3(f) (relating to resolution of Cardholder disputes) will also remain in effect.
		

		
			14.13Obligations Subject to Law.  All obligations of either party hereunder will be subject to Applicable Law including any changes or amendments thereto and either party may take (or decline to take) any actions that it in good faith believes are required (or prohibited) by then Applicable Law or the direction of any regulatory authority or, in Bank’s case, to prevent the occurrence of an “unsafe or unsound” banking practice (as defined in 12 U.S.C. § 1818).  
		

		
			14.14Internet Gambling.  Company covenants that it will not knowingly permit any transaction through any Company Sales Channel or through the Company Website, and will not submit any Charge Transaction Data, with respect to which any Credit Card was used to place, receive, or otherwise transmit a bet or wager by any means which involves the use, at least in part, of the Internet where such bet or wager is unlawful under any applicable Federal or State law in the State or Tribal lands in which the bet or wager is initiated, received, or otherwise made.
		

		
			
		

		
			

		 

		

			50

		

 

		

		
			14.15Bankruptcy Costs.  Each party (the “Obligor”) agrees to pay all costs and expenses, including reasonable legal fees and costs, incurred by the other party in connection with any bankruptcy proceeding of, or other proceeding relating to the liquidation or insolvency of, or appointment of a receiver or similar officer for, the Obligor, whether such fees arise before or after the filing or commencement of any such bankruptcy or other proceeding, in the protection, preservation, amendment, exercise or enforcement of any terms of this Agreement or any related documents, or in connection with any obligations of the Obligor hereunder.
		

		
			14.16Multiple Counterparts.  This Agreement may be executed in any number of multiple counterparts, all of which will constitute but one and the same original.
		

		
			[Signature Page Follows]
		

		
			 
		

		
			 
		

		
			

		 

		

			51

		

 

		

		
			 
		

		
			IN WITNESS WHEREOF, the parties are signing this Agreement as of the Effective Date.
		

		
			 
		

			
					
						SYNCHRONY BANK

					
					
						 

					
					
						AT HOME STORES LLC

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Thomas M. Quindlen

					
					
						 

					
					
						By:

					
					
						/s/ Judd T. Nystrom

					
					
						 

				
	
					
						Name:

					
					
						Thomas M. Quindlen

					
					
						 

					
					
						Name:

					
					
						Judd T. Nystrom

					
					
						 

				
	
					
						Title:

					
					
						EVP & CEO, Retail Card

					
					
						 

					
					
						Title:

					
					
						Chief Financial Officer

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			

		 

		

			Signature Page for Co-Brand and Private Label Consumer Credit Card Co-Brand Agreement

		

 

		

		
			APPENDIX A
		

		
			Definitions and Construction
		

		
			A.Definitions.  As used in this Agreement, the following terms will have the following meanings:
		

		
			“Account” means the legal relationship established by and between a Cardholder and Bank pursuant to a Cardholder Agreement, together with all Cardholder Indebtedness owing thereunder from time to time and any current or future guaranties, security or other credit support therefor.   The term Account will include both Private Label Accounts and Co-Brand Accounts.
		

		
			“Account Documentation” means all Account information, Applications, Cardholder Agreements, Charge Transaction Data, charge slips, credit slips, payments, credit information and documents or forms of any type and in any media relating to the Program, excluding materials used for advertising or solicitations.
		

		
			“Affiliate” means, with respect to a person, any entity that is controlled by, controls, or is under common control with such person.  For purposes of this definition, “control” means the possession, directly or indirectly, of the power to vote fifty percent (50%) or more of the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors of any entity.
		

		
			“Agreement” has the meaning given to it in the preamble.
		

		
			“Applicable Law” means all federal, state and local laws, statutes, regulations, regulatory guidance (including regulations and regulatory guidance pertaining to bank safety and soundness), orders or directives, and examination report comments, including: (i) the Truth in Lending Act and Regulation Z; (ii) the Equal Credit Opportunity Act and Regulation B; (iii) the Fair Debt Collection Practices Act; (iv) the Fair Credit Reporting Act; (v) the Gramm-Leach-Bliley Act and its implementing regulations; (vi) the PATRIOT Act and its implementing regulations; (vii) the Credit Card Accountability Responsibility and Disclosure Act of 2009; and (viii) the prohibition against unfair and deceptive trade practices in the Federal Trade Commission Act or any other laws prohibiting unfair, deceptive or abusive acts or practices. [***] 
		

		
			“Application” means Bank’s credit application which must be completed and submitted for review to Bank by individuals who wish to become Cardholders.
		

		
			“Approved Advertisement” has the meaning set forth in Schedule 5.11.
		

		
			“Approved Template” has the meaning set forth in Schedule 5.11.
		

		
			“Bank” has the meaning given to it in the preamble.
		

		
			“Bank Privacy Policy” means Bank’s privacy policy applicable to Cardholder Information, applicant information and the Program, a copy of which has previously been made available to Company.
		

		
			
		

		
			

		 

		

			A-1

		

 

		

		
			“Bank Program Manager” has the meaning given to it in Section 4.1(a).
		

		
			“Bank Website” means a website hosted by Bank or Bank’s agent for use in servicing Cardholders and applicants under the Program.  
		

		
			“Business Day” means any day other than a Saturday, Sunday or a day on which depository institutions in the State of Utah are required or permitted to be closed.
		

		
			“Cardholder” means any natural person who has entered into a Cardholder Agreement with Bank or who is or may become obligated under or with respect to an Account.
		

		
			“Cardholder Agreement” means the open end revolving credit agreement, in either tangible or electronic form, between Bank and each Cardholder pursuant to which such Cardholder and its authorized users, if any, may make Purchases and Non-Company Purchases on credit provided by Bank under the Program.  
		

		
			“Cardholder Authorized Data” has the meaning given to it in Section 13.2(a)(iii).
		

		
			  “Cardholder Indebtedness” means all amounts owing to Bank by Cardholders with respect to Accounts (including finance charges, NSF fees, late charges, overlimit fees, if any, and any other fees and charges), whether or not billed, less the amount of any credit balances owing by Bank to Cardholders, whether or not billed.
		

		
			“Cardholder Information” means all information pertaining to Cardholders and applicants generated by the Program (including names, addresses, telephone numbers, email addresses, dates of birth, social security and similar numbers, Account and similar access numbers, and transaction and experience information).
		

		
			“Cardholder Loyalty Program” has the meaning given to it in Section 4.6(a).
		

		
			“Change in Law” means a change in any Applicable Law (it being agreed that a new interpretation thereof or order or judgment related thereto will also be considered a Change in Law) applicable to Bank or to the credit extended under the Program, or in any Network Rules impacting interchange. 
		

		
			“Charge Transaction Data” means Account and related Cardholder and authorized user identification and transaction information transmitted by Company to Bank with regard to a charge or a credit to an Account.
		

		
			  “Co-Brand Account” means an Account with respect to which a Co-Brand Credit Card has been issued.
		

		
			“Co-Brand Credit Card” means a Credit Card bearing Company’s name or logo, and which is intended for use by Cardholders designated by Bank to make Co-Brand Purchases and Non-Company Purchases in connection with the Co-Brand Program.
		

		
			“Co-Brand Program” has the meaning given to it in Section 1.1(a).
		

		
			
		

		
			

		 

		

			A-2

		

 

		

		
			“Co-Brand Purchase” means the purchase of goods and services through any Company Sales Channel financed on a Co-Brand Account.
		

		
			“Company” has the meaning given to it in the preamble.
		

		
			“Company Customer Information” means any information about Company’s customers developed or maintained by or for Company to the extent the information therein is generated by Company independently of the Program;  provided that to the extent that a single process or system (e.g., an online sign-up page) is used to collect information for both the Program and for other independent  commercial Company purposes, and, so long as appropriate disclosures are provided, such data shall be deemed to constitute both Cardholder Information and Company Customer Information.
		

		
			“Company Marketing Channels” means any Store Location, the Company Website, and any other Company-controlled marketing channels contemplated by the Marketing Plan.
		

		
			“Company Marketing Fund” has the meaning given to it in Section 4.4(b).
		

		
			“Company Marks” means the names and any related marks, tradestyles, trademarks, service marks, logos or similar proprietary designations owned, licensed or controlled by Company as the same currently exist and as they may be amended or adopted by Company from time to time.
		

		
			“Company Matters” has the meaning given to it in Section 4.2(d).
		

		
			“Company Privacy Policy” means the privacy policy of Company applicable to Company Customer Information, if any.
		

		
			“Company Program Manager” has the meaning given to it in Section 4.1(a).
		

		
			“Company Purchase Option” has the meaning given to it in Section 10.2(b).
		

		
			“Company Sales Channels” means Store Locations and the Company Website.
		

		
			“Company Website” means the internet websites with the internet addresses www.athome.com and any other internet website maintained, operated or controlled by Company that the parties agree in writing may constitute a Company Website for purposes of this Agreement.  
		

		
			“Competitive Retailers” means those entities listed on Schedule 1.1, and their Affiliates.
		

		
			“Confidential Information” has the meaning given to it in Section 13.3(a).
		

		
			“Credit Card” means the card, device or account issued or approved by Bank under the Program bearing or referring to Company’s name or logo, for use by Cardholders and, if the Cardholder has so designated, any authorized users to make purchases financed on an Account.
		

		
			“Damages” means all losses, liabilities, costs, taxes and expenses (including reasonable attorneys’ fees and expenses, reasonable out of pocket costs, interest and penalties), settlements, equitable relief, judgments, damages, claims (including counter and cross claims, and allegations 
		

		
			
		

		
			

		 

		

			A-3

		

 

		

		
			whether or not proven) demands, offsets, defenses, actions, or proceedings by whomsoever asserted.
		

		
			“Debt Cancellation Program” means any program which may be offered through Bank pursuant to Section 4.7 under which Bank, any Affiliate of Bank, or any third party makes available debt cancellation coverage to Cardholders.
		

		
			“Deferred Interest Promotion Plan” means a promotional financing plan where (i) interest accrues during the promotional period and is charged to the Account if the promotional purchase is not paid in full during the promotional period, (ii) minimum monthly payments are required during the promotional period, and (iii) after the promotional period ends, regular account terms apply to the remaining promotional balance.
		

		
			“Effective Date” has the meaning set forth in the introductory paragraph.
		

		
			“Fair Market Value” has the meaning set forth in, and shall be determined in accordance with Section 10.2(d) and Schedule 10.2(d).
		

		
			“Force Majeure Event” means any of the following:  acts of God, fire, earthquake, hurricane, explosion, accident, terrorism, war, nuclear disaster, riot, material changes in Applicable Law or regulations, including a change in state or federal law, or other event beyond a party’s reasonable control, rendering it illegal, impossible or untenable for such party to perform as contemplated in, or to offer the Program on the terms contemplated under, this Agreement.
		

		
			[***]
		

		
			“Initial Term” has the meaning given to it in Section 9.1.
		

		
			“Joint Marketing Fund” has the meaning given to it in Section 4.4(a).
		

		
			“LIBOR” means, for any date, the three month “London Interbank Offered Rate” (LIBOR) as published in The Wall Street Journal in its “Money Rates” section (or if The Wall Street Journal ceases to be published or to publish such rates, in such other publication as Bank may, from time to time, specify) on such date, or if The Wall Street Journal is not published on such date, on the last day before such date on which The Wall Street Journal is published whether or not such rate is actually ever charged or paid by any entity.
		

		
			“Loyalty Program Incentive” has the meaning given to it in Section 4.6(b).
		

		
			“Management Committee” has the meaning given to it in Section 4.2(a).
		

		
			“Marketing Plan” has the meaning given to it in Section 4.3.
		

		
			“Material Outside Interchange Fee Decrease” has the meaning given to it in Section 2.3(b).
		

		
			  “Measurement Date” means (i) with respect to a calculation of LIBOR, the first day of a calendar quarter, and (ii) with respect to a calculation of Payout Rates or Gross Loss to Sales Rate, the first day of a two calendar quarter period.  
		

		
			
		

		
			

		 

		

			A-4

		

 

		

		
			“Merchant Discount Fees” means the fee, calculated in accordance with Section 2.2(a), payable by Company to Bank in connection with any submission of Charge Transaction Data with respect to which a Merchant Discount Rate applies.
		

		
			“Merchant Discount Rate” means the percentage set by Bank used in calculating the Merchant Discount Fees payable in connection with each submission by Company to Bank of Charge Transaction Data pertaining to a purchase that is subject to an approved credit‐based promotion.
		

		
			“Merchant Discount Rate Change”  has the meaning given to it in Section 2.2(c).
		

		
			“Merchant Discount Rate Equivalent”  has the meaning given to it in Section 2.2(c).
		

		
			“Mobile Wallet” means any application, program or website that permits consumers to access account information and make payments by use of an access code, mobile phone or other electronic device.
		

		
			“Net Purchase Volume” means, during any period of calculation, the dollar amount of purchases of goods and services (including any applicable Sales Tax) on Accounts during such period, after deducting the amount of any credits associated with returns of goods and services, chargebacks, and similar credits and adjustments to such Accounts during such period (other than payments with respect to such Accounts); provided however, Net Purchase Volume will not include balance transfers, cash advances, fraudulent or unauthorized purchases or credits or any other types of fees and charges that do not represent the purchase of goods and services.
		

		
			“Network” means MasterCard or any successor thereto and, to the extent that, any time following the Effective Date, Bank approves the issuance pursuant hereto of Co-Brand Credit Cards bearing the mark of any other card association or card network (e.g. Visa or American Express), such other card association or card network.
		

		
			“Network Rules” means the rules imposed for bankcard programs by the Network as the same may be amended from time to time by the Network.
		

		
			“Nominated Purchaser” has the meaning given to it in Section 10.2(c)(ii)(C).
		

		
			“Non-Company Locations” means any retail locations (including through catalogs and the Internet), other than the Company Sales Channels, which accept Network-branded credit cards in payment for goods and services purchased at such location.
		

		
			“Non-Company Purchase” means the purchase of goods and services at Non-Company Locations financed on a Co-Brand Account.
		

		
			  “Operating Procedures” has the meaning given to it in Section 5.4.
		

		
			“Outside Interchange Fees” means the interchange fees or interchange reimbursement fees (net of any Network assessments and fees) paid or payable to Bank by the Network with respect to the Accounts, in Bank’s capacity as a Credit Card issuer, and in connection with Cardholder usage of the Accounts.
		

		
			
		

		
			

		 

		

			A-5

		

 

		

		
			“Par Value” has the meaning given to it in Section 10.2(d)(i).
		

		
			 [***]
		

		
			“PCI Standards” means the payment card industry security standards promulgated by the PCI Security Standards Council, as applicable from time to time pursuant to Network Rules.
		

		
			“PLCC Program” has the meaning given to it in Section 1.1(a).
		

		
			“PLCC Purchase” means the purchase of goods or services through any Company Sales Channel financed on a Private Label Account.
		

		
			“Portfolio Purchase Period” has the meaning given to it in Section 10.2(b). 
		

		
			“Portfolio Purchase Price” has the meaning given to it in Section 10.2(d)(i).
		

		
			“Potential Purchaser” has the meaning given to it in Section 10.2(b). 
		

		
			“Private Label Account” means any Account with respect to which a Private Label Credit Card has been issued.
		

		
			“Private Label Credit Card” means a Credit Card bearing Company’s name or logo for use by Cardholders designated by Bank to make purchases exclusively though Company Sales Channels.
		

		
			“Program” has the meaning given to it in Section 1.1(a).
		

		
			“Program Commencement Date” has the meaning given to it in Section 1.1(c).
		

		
			“Program Manager” means the Bank Program Manager or the Company Program Manager, as such terms are defined in Section 4.1(a).
		

		
			“Program Materials” means the materials necessary or useful to Bank’s administration of the Program (including Applications, Cardholder Agreements, Credit Cards, billing statements, privacy disclosures and Cardholder correspondence), as well as to printed, electronic and broadcast matter advertising and promotion of the Program.
		

		
			“Program Portfolio” means (a) all Cardholder Indebtedness, exclusive of any Cardholder Indebtedness pertaining to any Accounts that have been previously written off by Bank or should have been written off in accordance with Bank’s policies, free and clear of all liens, claims, encumbrances and restrictions; (b) Account Documentation (excluding credit bureau reports, adverse action letters or similar information to the extent a transfer thereof would cause Bank to violate Applicable Law or become a “consumer reporting agency” for purposes of the federal Fair Credit Reporting Act) and a full master file of all monetary and non-monetary fields; and (c) Bank’s rights in any toll-free (800) customer service numbers.
		

		
			“Program Year” means the twelve month period between anniversaries of the Program Commencement Date.
		

		
			
		

		
			

		 

		

			A-6

		

 

		

		
			“Purchase” means the purchase of goods or services at any Company Sales Channel financed on an Account.
		

		
			“Purchase Notice” has the meaning given to it in Section 10.2(d)(ii)(A).
		

		
			“Revised Merchant Discount Rate” means the Merchant Discount Rate as recalculated from time to time as provided herein.
		

		
			“Revised Merchant Discount Rate Effective Date” means the first (1st) day of a month that is two (2) months following the applicable Measurement Date.
		

		
			“Sales Taxes” has the meaning given to it in Section 5.7(a).
		

		
			[***]
		

		
			“Security Incident” means the unauthorized access to, or use or disclosure of, any record containing personally identifiable information relating to a Cardholder or applicant in a manner that renders misuse of the information reasonably possible or that otherwise compromises the security, confidentiality, or integrity of the information.
		

		
			“Service Level Standards” has the meaning given to it in Section 7.3.
		

		
			“Solvent” means, as to any person, (i) that the present fair salable value of such person’s assets exceeds the total amount of its liabilities; (ii) that such person is generally able to pay its debts as they come due; and (iii) that such person does not have unreasonably small capital to carry on such person’s business as theretofore operated and as thereafter contemplated.  The phrase “present fair salable value of such person’s assets” means that value that could be obtained if such person’s assets were sold within a reasonable time in one or more arm’s length transactions in an existing and not theoretical market.
		

		
			“Store Location” means each physical retail store owned or operated under the Company Marks by Company within the United States.
		

		
			“Tail Period” has the meaning given to it in Section 10.3.
		

		
			“Term” has the meaning given to it in Section 9.1.
		

		
			“Third Expert” has the meaning given to it in Section 10.2(d)(ii)(B)(e).
		

		
			“Wind Down Period” has the meaning given to it in Section 10.2(a)(i).
		

		
			B.Construction.  As used in this Agreement, (i) all references to “herein,” “hereof,” “hereunder,” or like words will refer to this Agreement as a whole and not to any particular section, subsection or clause contained in this Agreement; (ii) references to any law or regulation refer to that law or regulation as amended from time to time and include any successor law or regulation, (iii) references to any document, including this Agreement, will be deemed a reference to such document as amended from time to time, (iv)  all references to “include,” or “includes,” or “including” will be deemed to be followed by the words “without limitation,” and 
		

		
			
		

		
			

		 

		

			A-7

		

 

		

		
			(v) references to a “person” will be deemed to be references to an individual, corporation, limited liability company, partnership, trust, unincorporated association, joint venture, joint stock company, or any other form of entity.  Captions of the sections of this Agreement are for convenience of reference only and do not affect, limit, modify or construe the contents thereof.
		

		
			 
		

		
			 
		

		
			

		 

		

			A-8

		

 

		

		
			 
		

		
			SCHEDULE 1.1
		

		
			Competitive Retailers
		

		
			[***]
		

		
			 
		

		
			 
		

		
			

		 

		

			1

		

 

		

		
			 
		

		
			SCHEDULE 2.2
		

		
			Deferred Interest Promotion Plans
		

			
					
						Deferred Interest Promotion Plan Terms (PLCC/Co-Brand)

				
	
					
						 

					
					
						Deferred Interest

				
	
					
						Promotional APR

					
					
						27.24%, but waived if paid in full within 6 months

					
					
						27.24%, but waived if paid in full within 12 months

				
	
					
						Term Length(s),

					
						in months

					
					
						6

					
					
						12

				
	
					
						Payment Requirements

					
					
						Required Payments

					
					
						Required Payments

				
	
					
						Minimum Purchase

					
					
						$299

					
					
						$499

				
	
					
						Retroactive Interest (Yes / No)

					
					
						Yes

					
					
						Yes

				
	
					
						Promo Type

					
					
						With Pay Deferred Interest

					
					
						With Pay Deferred Interest

				
	
					
						Merchant Discount Rate

					
					
						[***]

					
					
						[***]

				

		
			 
		

		
			 
		

		
			

		 

		

			1

		

 

		

		
			 
		

		
			SCHEDULE 3.1
		

		
			Program Economics
		

		
			[***]
		

		
			 
		

		
			
		

		
			

		 

		

			1

		

 

		

		
			SCHEDULE 4.4
		

		
			Permitted Uses of Joint Marketing Fund and Launch Fund
		

		
			The Joint Marketing Fund established in Section 4.4(a) of this Agreement may be used for the following promotions or programs, in addition to any other activities as mutually agreed to by the parties:
		

		
			[***]
		

		
			For the avoidance of doubt, (i) use of the Joint Marketing Fund to reimburse either party for costs incurred for any of the above categories of promotions or programs is subject to the prior approval of the Management Committee and (ii) the Joint Marketing Fund will not be used for the costs of producing [***].  
		

		
			Subject to prior approval of the Management Committee, the Launch Fund may be used for any of the purposes identified in the list above, in addition to any other activities as mutually agreed to by the Management Committee. 
		

		
			 
		

		
			 
		

		
			

		 

		

			2

		

 

		

		
			SCHEDULE 4.7
		

		
			Approved Cross-Sell Offerings
		

		
			Debt Cancellation Program.  Company will be entitled to receive fifty percent (50%) of the net revenue derived from any Debt Cancellation Program offering.  Net revenue means the gross billed Cardholder fees derived from the Debt Cancellation Program less (ii) the sum of (a) waivers, (b) charge-off expenses and (c) direct fulfillment expenses, less (iii) marketing, acquisition and all other related expenses associated with the Debt Cancellation Program.
		

		
			Deposit products offered by Bank.  Company will not be entitled to any compensation in connection with deposit products.
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			1

		

 

		

		
			SCHEDULE 5.2(a)
		

		
			Key Initial Cardholder Terms
		

		
			The key initial cardholder terms for new Accounts will be:
		

		
			 
		

			
					
						 

					
					
						PLCC

					
					
						Co-Brand

				
	
					
						Standard APR

					
					
						27.24% Variable (Prime + 23.74%)

					
					
						27.24% Variable (Prime + 23.74%)

				
	
					
						Default APR

					
					
						None 

					
					
						None

				
	
					
						Transactional Fees:
 - APR for Cash
 Advances
 - Foreign 

					
						 Transaction

					
					
						Not Applicable

					
					
						Either $10 or 5% of the amount of each cash advance, whichever is greater.

3% of each foreign transaction

				
	
					
						Grace Period

					
					
						23 days after the close of each billing cycle.

					
					
						23 days after the close of each billing cycle.

				
	
					
						Annual Fee

					
					
						None

					
					
						None

				
	
					
						Min. Finance Charge

					
					
						If charged interest, the charge

					
						will be no less than $2.00

					
					
						If charged interest, the charge

					
						will be no less than $2.00

				
	
					
						Min. Payment

					
					
						Greater of (1) 25, or $35 (which includes any past due amounts) if failure to pay the total minimum payment due by the due date in any one or more of the prior six billing cycles, or (2) the sum of: (a) any past due amounts; plus (b) 1% of new balance shown on billing statement (excluding any balance in connection with a special promotional purchase with a unique payment calculation); plus (c) any late payment fees charged in the current billing cycle; plus (d) all interest charged in the current billing cycle; plus (e) any payment due in connection with a special promotional purchase with a unique payment calculation

					
					
						Greater of (1) 25, or $35 (which includes any past due amounts) if failure to pay the total minimum payment due by the due date in any one or more of the prior six billing cycles, or (2) the sum of: (a) any past due amounts; plus (b) 1% of new balance shown on billing statement (excluding any balance in connection with a special promotional purchase with a unique payment calculation); plus (c) any late payment fees charged in the current billing cycle; plus (d) all interest charged in the current billing cycle; plus (e) any payment due in connection with a special promotional purchase with a unique payment calculation

				
	
					
						Late Payment Fee 1st / 2nd *

					
					
						$27 (or $38 for subsequent late payments within six billing cycles); but not greater than the minimum payment due.

					
					
						$27 (or $38 for subsequent late payments within six billing cycles); but not greater than the minimum payment due.

				
	
					
						Over Limit Fee

					
					
						None

					
					
						None

				

		
			 
		

		
			*Changes to the Late Payment Fee as a result of changes in the safe harbor amounts in Regulation Z will not require Company’s consent.
		

		
			 
		

		
			 
		

		
			

		 

		

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			SCHEDULE 5.11
		

		
			Pre-Approval Process
		

		
			1.The following terms and conditions will apply to any Company-Generated Materials that Company desires to use in connection with the Program as an Approved Template or an Approved Advertisement (in each case as defined below):
		

		
			a.Company must present to Bank any Company-Generated Materials in the form of a full mock-up of the proposed advertisement or template.
		

		
			b.Bank will use commercially reasonable efforts to notify Company (which may be by email) within five Business Days of Bank’s receipt thereof that the Company-Generated Materials submitted to Bank (i) are approved, (ii) are approved, subject to Company’s incorporation of Bank’s written comments (without any obligation to re-present for further approval such Company-Generated Materials), or (iii) are not approved (and the reasons therefor).  If any Company-Generated Materials are rejected by Bank pursuant to the preceding clause (iii), Company will have the right to revise such Company-Generated Materials in accordance with Bank’s written directions and re-present them to Bank for reconsideration.
		

		
			2.Any Company-Generated Materials approved by Bank pursuant to 1.a. and b. above and that meet the following criteria are referred to herein as an “Approved Template”:  (i) such Company-Generated Materials will be disseminated or otherwise used in any of the following channels:  (x) print media; (y) online, and (z) in-store as signage; and (ii) such Company-Generated Materials will be used, without revision (except as set forth in clause 2.a. below), repeatedly in any one or more of the foregoing channels for a period of at least four (4) consecutive weeks.  With respect to Approved Templates, the following terms and conditions will also apply:
		

		
			a.Company must use the Approved Template exactly in the form of the mock-up reviewed and approved by Bank (including any revisions required by Bank in connection with its review), without revision (other than to reflect revised dates or products (so long as the original Approved Template did not contain product-specific disclosure language)) for the duration of the advertising campaign to which such Approved Template applies.
		

		
			b.Any proposed change by Company to any Approved Template will require the further written approval of Bank (and the approval process in 1.a. and b. above will apply to such proposed revision); provided that if the change is solely with respect to dates or products (and there was no product-specific disclosure language included in the original Approved Template or in the proposed revised Approved Template), then no further review by Bank will be required.
		

		
			3.Any Company-Generated Materials approved by Bank pursuant to 1.a and b. above, but that do not meet the criteria for an Approved Template as set forth in Section 2 above, are referred to herein as an “Approved Advertisement”.  Company must use each Approved Advertisement exactly in the form of the mock-up reviewed and approved by Bank 
		

		
			
		

		
			

		 

		

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			(including any revisions required by Bank in connection with its review), without any revision, for the duration of the advertising campaign to which such Approved Advertisement applies.
		

		
			
		

		
			

		 

		

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			SCHEDULE 7.2
		

		
			Service Level Standards 
		

		
			 
		

		
			[***]
		

		
			 
		

		
			(a)The provisions in this Schedule will be measured on a going-forward basis beginning with the first full month following the [***] after the Program Commencement Date.  Each Service Level Standard will only apply for any monthly period to the extent that a statistically significant sample size for the applicable measurement has been generated during such period.
		

		
			(b)Any Service Level Standard failure that is the result of a Force Majeure Event will be excluded from consideration in measuring compliance with this Schedule.
		

		
			(c)If Company desires to implement a marketing event or program or multi-tender loyalty program event which is reasonably likely to result in an increased volume of calls to Bank from Cardholders or Company personnel during a given period of time, Company will provide Bank with [***] prior written notice of such event or program.  If Company fails to provide Bank with such [***] prior notice, any resulting increased volume of calls will not be included in determining whether Bank has failed to meet any Service Level Standards.
		

		
			(d)If a single event causes more than one failure, such event will be deemed a single failure for purpose of this Schedule.
		

		
			(e)Any Service Level Standard failure that is the result, whether direct or indirect, of a problem with Company’s operations will be excluded from consideration in measuring compliance with this Schedule.  For example, if Company’s point of sale system is unable to process Applications or authorizations, and therefore there is an increase in telephone calls related to credit card applications and authorizations.
		

		
			Remedies for Default on Service Level Standards
		

		
			If Bank fails to meet any Service Level Standard (the “Initial Failure”), Bank will promptly report to Company the fact of such Initial Failure, including the reasons for such Initial Failure, and promptly take corrective action to prevent recurrence of such Initial Failure.  Such corrective action will include, but not be limited to, within [***] of such report, proposing a remediation plan for taking such action as Bank deems necessary to correct and prevent recurrence of such Initial Failure.
		

		
			If after implementing the remediation plan contemplated above, Bank fails to meet the same Service Level Standard within the [***] period following the Initial Failure, Bank will pay [***] to the Company Marketing Fund and provide notice to Company.  Notwithstanding anything to the contrary herein, the payments set forth in this Schedule will be Company’s sole and exclusive remedy for Bank’s failure to meet the Service Level Standards contemplated hereunder.
		

		
			 
		

		
			 
		

		
			

		 

		

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			SCHEDULE 7.3
		

		
			Periodic Program Reports
		

		
			[***]
		

		
			 
		

		
			 
		

		
			

		 

		

			1

		

 

		

		
			SCHEDULE 8.1(e)
		

		
			Presentment Warranties
		

		
			With respect to each submission of Charge Transaction Data to Bank, Company represents and warrants as follows with respect to such Charge Transaction Data and each underlying transaction:
		

		
			(a)All purchases included in the Charge Transaction Data constitute bona fide, arms‐length sales by Company of the goods or services described therein in the ordinary course of Company’s business (and do not include any purchases conducted in connection with any liquidation sale with respect to Company’s general cessation of business (which would not include, for example, the closure of a single store location), augmentation or aggregator sale); Company has delivered all the products (or the products have been given to a delivery service in the case of an e-commerce transaction or pursuant to a bona fide delivery agreement or Company has made the products available for pick-up) and fully performed all the services covered by the Charge Transaction Data;
		

		
			(b)The charges included in the Charge Transaction Data did not involve a cash advance or goods or services not listed in the applicable invoice, purchase order, purchase confirmation or receipt; the charges represent the entire purchase price of the goods and services identified in the Charge Transaction Data other than a bona fide down payment, deposit, or similar payment paid by cash or check, or financed by any means other than the Account;
		

		
			(c)No other credit provider has financed a portion of any sales transaction included in the Charge Transaction Data other than a bona fide down payment, deposit, or similar payment;
		

		
			(d)For each charge included in the Charge Transaction Data, Company has obtained a signed invoice or receipt executed by the Cardholder or the authorized user; 
		

		
			(e)All purchases included in the Charge Transaction Data occurred no earlier than five days prior to the submission of such Charge Transaction Data; and all transactions included in the Charge Transaction Data were conducted in accordance with the Operating Procedures, this Agreement and Applicable Law; and
		

		
			(f)Each invoice or receipt included in the Charge Transaction Data is not invalid, illegible, inaccurate or incomplete and has not been materially altered since being signed or submitted by the Cardholder; the truncated Account number and name of the Cardholder has been accurately printed on each charge slip, purchase order or purchase confirmation and has been included in each transmission of Charge Transaction Data; Company has obtained a valid authorization from Bank for each purchase (unless otherwise waived by Bank).
		

		
			 
		

		
			 
		

		
			

		 

		

			1

		

 

		

		
			SCHEDULE 10.2(c)
		

		
			RFP Data
		

		
			[***]
		

		
			(i)
		

		
			

		 

		

			1

		

 

		

		
			SCHEDULE 10.2(d)
		

		
			Assumptions for Determination of Fair Market Value
		

		
			The appraisers will be instructed to assume an arms-length transaction between a willing seller and a willing buyer, which buyer is financially and operationally capable of completing portfolio purchases of comparable size to those contemplated hereunder (including the ability to export rates), and will take into consideration, among other things, the amount of the receivables on the Accounts, the aggregate number of Accounts, and the value of an endorsement relationship with Company.  Each appraiser will be provided with a letter, prepared by Bank and approved by the Nominated Purchaser, setting forth the following instructions for preparing its valuations:
		

		
			(A)Assume a seven-year endorsement of the existing program by Company;
		

		
			(B)Consider historical performance of the portfolio while also considering market and portfolio trends and pending regulations, if any (including interest rate environment);
		

		
			(C)Assume the economics of the Program between the parties (including the then-existing value proposition, funding and payments between  the parties, Program revenue and profit sharing structure), and Program interchange revenue and any marketing support provided to Bank from the Network, and the same level of support from Company will remain in effect over the applicable term of the endorsement;
		

		
			(D)Assume the annual percentage rate, fees, and other elements of pricing of the Accounts that are the subject of this Agreement as they then exist;
		

		
			(E)Assume (i) the then existing portfolio of Accounts with no new Accounts to be added for purposes of the Appraisal, and (ii) that Accounts will attrite, through voluntary and involuntary closures, over time;
		

		
			(F)Assume a rewards funding cost consistent with Bank’s documented experience with the Portfolio over the prior 24 months; and
		

		
			 
		

		
			(G)Include the residual value of the portfolio after the Company endorsement expires. 
		

		
			 
		

		
			
		

		
			

		 

		

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			SCHEDULE 13.2(A)
		

		
			Cardholder Authorized Data
		

		
			•Cardholder Name
		

		
			•Cardholder Address 
		

		
			•Cardholder City
		

		
			•Cardholder State
		

		
			•Cardholder Zip Code
		

		
			•Cardholder Email Address
		

		
			•Cardholder Phone
		

		
			•Cardholder Open Date of Account
		

		
			•Cardholder Acquisition Channel
		

		
			•Account Activation Date
		

		
			•Account Open / Closed Flag
		

		
			•Last Purchase Date on Account
		

		
			•Prior Month Net World Spend on Account
		

		
			•Prior Month # of World Store Sale Transactions on Account
		

		
			•Category Spending on Account
		

		
			 
		

		 

		

			3

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