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  TABLE OF CONTENTS

 
 

  EXHIBIT 4.1    
    

 
    FIRST SUPPLEMENTAL INDENTURE    
    
  
  BETWEEN
  
    AMERICAN EXPRESS CREDIT CORPORATION
  
    AND
  
    THE BANK OF NEW YORK MELLON,
  formerly known as The
Bank of New York    
    

 

 
    DATED AS OF NOVEMBER 22, 2016    
    

 

 
 

  0.625% SENIOR NOTES DUE 2021    
    

 

 

 

  TABLE OF CONTENTS    
    

 

 

 
 

							
	 
	 	 
	 	Page 	 
	

   ARTICLE I
	
 
	

   DEFINITIONS
	
 
	 Section 1.1
	 	 Definition of Terms
	 	 	

1	 
	

   ARTICLE II
	
 
	

   TERMS OF THE NOTES
	
 
	 Section 2.1
	 	 Designation and Principal Amount
	 	 	

3	 
	 Section 2.2
	 	Issue Date; Maturity	 	 	3	 
	 Section 2.3
	 	Place of Payment and Surrender for Registration of Transfer	 	 	3	 
	 Section 2.4
	 	Registered Securities; Form; Denominations; Payment in Euro	 	 	4	 
	 Section 2.5
	 	Interest	 	 	4	 
	 Section 2.6
	 	Payment of Additional Amounts	 	 	5	 
	 Section 2.7
	 	Optional Redemption by the Company	 	 	6	 
	 Section 2.8
	 	Satisfaction and Discharge. 	 	 	7	 
	 Section 2.9
	 	Events of Default	 	 	7	 
	 Section 2.10
	 	Exchange and Registration of Transfer of Securities	 	 	7	 
	 Section 2.11
	 	Designation of Depositary	 	 	8	 
	 Section 2.12
	 	Conversion	 	 	8	 
	 Section 2.13
	 	Definitive Form of Notes	 	 	8	 
	 Section 2.14
	 	Company Reports	 	 	8	 
	 Section 2.15
	 	Modification of Indenture	 	 	8	 
	 Section 2.16
	 	Sinking Fund	 	 	8	 
	

   ARTICLE III
	
 
	

   MISCELLANEOUS
	
 
	 Section 3.1
	 	Ratification of Indenture	 	 	9	 
	 Section 3.2
	 	Multiple Trustees	 	 	9	 
	 Section 3.3
	 	Trustee Not Responsible for Recitals	 	 	9	 
	 Section 3.4
	 	Governing Law	 	 	9	 
	 Section 3.5
	 	Severability	 	 	9	 
	 Section 3.6
	 	Counterparts	 	 	9	 
	 Section 3.7
	 	Successors and Assigns	 	 	9	 
	 Section 3.8
	 	Trustee	 	 	9	 
	

   ARTICLE IV
	
 
	

   TRUSTEE
	
 
	 Section 4.1
	 	 Force Majeure
	 	 	

10	 
	 Section 4.2
	 	Waiver of Jury Trial	 	 	10	 
	 Section 4.3
	 	Liability	 	 	10	 

 

 i

        FIRST
SUPPLEMENTAL INDENTURE, dated as of November 22, 2016 (this "FIRST SUPPLEMENTAL INDENTURE"), between AMERICAN EXPRESS CREDIT CORPORATION, a Delaware corporation (the
"COMPANY"), having its principal executive office at 200 Vesey Street, New York, New York 10285 and THE BANK OF NEW YORK MELLON (formerly known as The Bank of New York), a New York banking
corporation, as trustee (the "TRUSTEE"), having its principal corporate trust office at 101 Barclay Street, New York, New York 10286, supplementing the Indenture, dated as of June 9, 2006,
between the Company and the Trustee (the "BASE INDENTURE" and, together with this First Supplemental Indenture and as further amended and supplemented from time to time, the "INDENTURE"). 

        WHEREAS,
the Company executed and delivered the Base Indenture to provide for the issuance from time to time of its notes, debentures, bonds or other evidences of indebtedness
(hereinafter generally called the "SECURITIES," and individually, a "SECURITY") to be issued in one or more series as may be determined by the Company under the Base Indenture from time to time, in an
unlimited aggregate principal amount which may be authenticated and delivered as provided in the Base Indenture; 

        WHEREAS,
the Company hereby appoints the Trustee to act as trustee for the issuance of a new series of Securities to be known as the "0.625% Senior Notes due 2021" (the "NOTES"); 

        WHEREAS,
pursuant to the terms of the Indenture, the Company desires to provide for the establishment of a new series of Securities to be known as the "0.625% Senior Notes due 2021", the
form and substance of such Notes and the terms, provisions and conditions thereof to be as set forth in the Indenture; and 

        WHEREAS,
the Company has requested that the Trustee execute and deliver this First Supplemental Indenture. All requirements necessary to make this First Supplemental Indenture a valid
instrument in
accordance with its terms (and to make the Notes, when duly executed by the Company and duly authenticated and delivered by the Trustee, the valid and enforceable obligations of the Company) have been
performed, and the execution and delivery of this First Supplemental Indenture have been duly authorized in all respects. 

        NOW,
THEREFORE, THIS FIRST SUPPLEMENTAL INDENTURE WITNESSETH: 

        For
and in consideration of the premises and the purchase of Notes by the Holders thereof, it is mutually covenanted and agreed, for the equal and proportional benefit of all Holders of
Notes, as follows: 

 
 

  ARTICLE I
  
    DEFINITIONS    
    

 
 
        Section 1.1    Definition of Terms.
    

        Unless
the context otherwise requires: 

        (a)   a
term not defined herein that is defined in the Base Indenture has the same meaning when used in this First Supplemental Indenture; 

        (b)   a
term defined anywhere in this First Supplemental Indenture has the same meaning throughout; 

        (c)   the
singular includes the plural and vice versa; 

        (d)   unless
otherwise specified, any reference to a Section or Article is to a Section or Article of this First Supplemental Indenture; 

        (e)   headings
are for convenience of reference only and do not affect interpretation; 

 

        (f)    any
reference herein to an agreement entered into in connection with the issuance of securities contemplated therein as of November 22, 2016 shall mean such
agreement as it may be amended, modified or supplemented in accordance with its terms; and 

        (g)   the
following terms have the following meanings: 

        "BASE
INDENTURE" has the meaning set forth in the Recitals. 

        "BUSINESS
DAY" means each Monday, Tuesday, Wednesday, Thursday or Friday (i) that is not a day on which banking institutions in the City of New York or the City of London are
authorized or obligated by law or executive order to close and (ii) on which the Trans-European Automated Real-time Gross Settlement Express Transfer system, or the TARGET2 system, or any
successor thereto, operates. 

        "CLEARSTREAM,
LUXEMBOURG" shall mean Clearstream Banking, société anonyme (or any successor securities
clearing agency). 

        "CODE"
has the meaning set forth in Section 2.6(b). 

        "COMPANY"
has the meaning set forth in the Recitals. 

        "COMPARABLE
GOVERNMENT BOND" has the meaning set forth in Section 2.7(a). 

        "COMPARABLE
GOVERNMENT BOND RATE" has the meaning set forth in Section 2.7(a). 

        "EURO"
and "€" mean the lawful currency of the member states of the European Monetary Union that have adopted or that adopt the single currency in accordance with the
treaty establishing the European Community, as amended by the Treaty on European Union. 

        "EUROCLEAR"
shall mean Euroclear Bank S.A./N.V. (or any successor securities clearing agency), as operator of the Euroclear system. 

        "EVENT
OF DEFAULT" has the meaning set forth in Section 2.9. 

        "FEDERAL
REPUBLIC OF GERMANY OBLIGATION" means any security that is (i) a direct obligation of the Federal Republic of Germany for the payment of which the full faith and credit
of the Federal Republic of Germany is pledged or (ii) an obligation of a Person controlled or supervised by and acting as an agency or instrumentality of the Federal Republic of Germany the
payment of which is unconditionally guaranteed as a full faith and credit obligation by the Federal Republic of Germany, which, in either case (i) or (ii), is not callable or redeemable at the
option of the issuer thereof. 

        "FIRST
SUPPLEMENTAL INDENTURE" has the meaning set forth in the Recitals. 

        "GLOBAL
NOTES" has the meaning set forth in Section 2.4(a). 

        "INDENTURE"
has the meaning set forth in the Recitals. 

        "INTEREST
PAYMENT DATE" has the meaning set forth in Section 2.5(a). 

        "INTEREST
PAYMENT PERIOD" means any semi-annual period during which interest accrues pursuant to this Indenture. 

        "INTEREST
RATE" has the meaning set forth in Section 2.5(a). 

        "NOTES"
has the meaning set forth in the Recitals. 

        "OPINION
OF TAX COUNSEL" means the written opinion of counsel rendered by an independent law firm with generally recognized experience in such matters. 

        "PAYING
AGENT" shall initially be The Bank of New York Mellon, London Branch. The Company may change the Paying Agent without notice to any Holder of Notes. 

2

 

        "REDEMPTION
DATE" has the meaning set forth in Section 2.7. 

        "REGULAR
RECORD DATE" has the meaning set forth in Section 2.5(c). 

        "SECURITIES"
or "SECURITY" has the meaning set forth in the Recitals. 

        "SECURITIES
REGISTRAR" shall initially be The Bank of New York Mellon, London Branch. The Company may change the Securities Registrar without notice to any Holder of Notes. 

        "STATED
MATURITY" has the meaning set forth in Section 2.2. 

        "TARGET2
SYSTEM" means the Trans-European Automated Real-time Gross Settlement Express Transfer system or any successor thereto. 

        "TAX
EVENT" has the meaning set forth in Section 2.7(a). 

        "TRUSTEE"
has the meaning set forth in the Recitals. 

        "UNITED
STATES HOLDER" means a beneficial owner of a Note that is (i) a citizen or resident of the United States, (ii) a corporation or an entity taxable as a corporation
for United States federal income tax purposes, that was established under the laws of the United States, any state thereof or the District of Columbia, or (iii) an estate or trust whose
world-wide income is subject to United States federal income tax. If a partnership holds a Note, the tax treatment of partners will generally depend upon the status of the partner and the activities
of the partnership. As used herein, the term "Non-United States Holder" means a beneficial owner of a Note that is not a United States Holder and is not a partnership. 

 
 

  ARTICLE II
  
    TERMS OF THE NOTES    
    

        Pursuant to Section 3.01 of the Base Indenture, the Notes are hereby established with the following terms and other provisions: 

 
 

           Section 2.1    Designation and Principal Amount.     

        (a)   There
is hereby authorized a series of Securities designated the "0.625% Senior Notes due 2021," in the initial aggregate principal amount of
€1,000,000,000. 

        (b)   The
Company may, from time to time, subject to compliance with any other applicable provisions of this Indenture but without the notice to or the consent of the Holders
of Notes, create and issue pursuant to this Indenture an unlimited principal amount of additional Notes (in excess of any amounts theretofore issued) having the same terms and conditions to those of
the other Outstanding Notes, except that any such additional Notes (i) may have a different issue date and issue price from other Outstanding Notes and (ii) may have a different amount
of interest payable on the first Interest Payment Date after issuance than is payable on other Outstanding Notes. Such additional Notes shall constitute part of the same series of Notes as the Notes
initially issued hereunder. 

 
 

           Section 2.2    Issue Date; Maturity.     

        The
Notes shall mature on November 22, 2021 (the "STATED MATURITY"). 

 
 

          Section 2.3    Place of Payment and Surrender for Registration of Transfer.     Payment of principal of
(and premium, if any) and interest on the Notes shall be made, the transfer of Notes will be registrable and Notes will be exchangeable
for Notes of other denominations of a like principal amount at the office or agency maintained for such purpose, which shall initially be The Bank of New York Mellon, London Branch. Payment of any
principal (and premium, if any) and interest on Notes issued as Global Notes shall be payable by the Company through the Paying Agent to the Depositary in immediately 

3

 

available
funds. In the event that any Interest Payment Date, Redemption Date or the Maturity is not a Business Day, payment of the interest, principal and premium, as applicable payable on such date
shall be made on the next succeeding day that is a Business Day without any interest or other payment in respect of any such delay. Interest on Notes issued in definitive form will be payable
(i) by a check drawn on a bank in The City of London mailed to the address of the Person entitled thereto as such address shall appear in the Securities Register, or (ii) upon
application to the Securities Registrar not later than the relevant Regular Record Date by a Holder of Notes of a principal amount of the Notes in excess of €1,000,000, by wire
transfer in immediately available funds to a euro account maintained by the payee with a bank in a European city in which banks have access to the TARGET2 system. 

 
 

           Section 2.4    Registered Securities; Form; Denominations; Payment in Euro.     

        (a)   The
Notes shall be issued in fully registered form as registered Securities and shall be initially issued in the form of one or more permanent Global Securities (the
"GLOBAL NOTES") in the form of Exhibit A hereto. The Notes shall not be issuable in bearer form. The terms and provisions contained in the form of Note shall constitute, and are hereby
expressly made, a part of the Indenture, and the Company and the Trustee, by their execution and delivery of the Indenture, expressly agree to such terms and provisions and to be bound thereby. 

        (b)   The
Notes shall be issued in minimum denominations of €100,000 and integral multiples of €1,000 in excess thereof. 

        (c)   All
payments on the Notes will be payable in euro; provided that if on or after the date of this Indenture the euro is unavailable due to the imposition of exchange
controls or other circumstances
beyond the Company's control (including the dissolution of the euro) or no longer being used by the then-member states of the European Monetary Union that have adopted the euro as their currency or
for the settlement of transactions by public institutions of or within the international banking community then all payments in respect of the Notes will be made in U.S. dollars until the euro is
again available or so used. The amount otherwise payable by the Company on any date in euro would be converted into U.S. dollars at a rate determined by the Company in good faith. If applicable laws
or regulations of the member states of the European Union (including official pronouncements applying those laws or regulations) mandated, in the Company's good faith determination, the use of a
specific exchange rate, for these purposes, the Company would apply the exchange rate so mandated. Any payment in respect of the Notes made under such circumstances in U.S. dollars will not constitute
an Event of Default under the Notes or the Indenture. 

 
 

           Section 2.5    Interest.     

        (a)   The
Notes shall accrue interest at a rate per annum of 0.625% of the principal amount of €1,000 per Note (the "INTEREST RATE"), and be payable annually
in arrears on November 22 of each year (each, an "INTEREST PAYMENT DATE"), commencing on November 22, 2017, to the Person in whose name the Note is registered in the Securities Register
at the close of business on the Regular Record Date, except that interest payable at Maturity will be payable to the person to whom the principal of the Notes is paid. 

          (i)  Interest
on the Notes will be computed on the basis of: 

        (A)  the
actual number of days in the period for which interest is being calculated; and 

        (B)  the
actual number of days from and including the last date on which interest has been paid on the Notes (or November 22, 2016 if no interest has been paid on the
Notes), to but excluding the next scheduled interest payment date, as the case may be. 

This
payment convention is referred to as ACTUAL/ACTUAL (ICMA) as defined in the rulebook of the International Capital Markets Association. 

4

 

        (b)   Period of Accrual.    Interest will accrue annually at the Interest Rate from and including the date of initial
issuance or the last Interest Payment Date in respect of which interest has been paid or duly provided for, as applicable, to but excluding the next succeeding Interest Payment Date on which the
interest is actually paid, or the Maturity, as the case may be. 

        (c)   Regular Record Dates.    The Regular Record Dates for the Notes shall be on November 7 of each year
(each, a "REGULAR RECORD DATE"). 

 
 

           Section 2.6    Payment of Additional Amounts.     

        (a)   The
Company shall, subject to the exceptions and limitations set forth below, pay as additional interest on the Note, such additional amounts as are necessary in order
that the net payment by the Company or a paying agent of the principal of and interest on the Note to a Holder who is a Non-United States Holder, after deduction for any present or future tax,
assessment or governmental charge of the United States or a political subdivision or taxing authority thereof or therein, imposed by withholding with respect to the payment, will not be less than the
amount that would have been payable had no such withholding or deduction been required. 

        (b)   The
Company's obligation to pay additional amounts shall not apply (i) to a tax, assessment or governmental charge that would not have been imposed but for the
beneficial owner or the Holder, or a fiduciary, settlor, beneficiary, member or shareholder of, or possessor of a power over, the Holder if
the Holder is an estate, trust, partnership, limited liability company, corporation or other entity, or a person holding a power over an estate or trust administered by a fiduciary Holder, being
considered as (A) being or having been present or engaged in a trade or business in the United States or having or having had a permanent establishment in the United States, (B) having a
current or former relationship with the United States, including a relationship as a citizen or resident thereof, (C) being or having been a foreign or domestic personal holding company, a
passive foreign investment company or a controlled foreign corporation with respect to the United States, a corporation that has accumulated earnings to avoid United States federal income tax or a
private foundation or other tax-exempt organization or (D) being or having been a "10-percent shareholder" of the Company as defined in section 871(h)(3) of the United States Internal
Revenue Code of 1986, as amended (the "Code"), or any successor provision or being or having been a bank whose receipt of interest on a Note is described in section 881(c)(3)(A) of the Code or
any successor provision; (ii) to any beneficial owner that is not the sole beneficial owner of the Note, or a portion thereof, or that is a fiduciary, partnership, limited liability company or
other fiscally transparent entity, but only to the extent that a beneficiary or settlor with respect to the fiduciary, or a beneficial owner or member of the partnership, limited liability company or
other fiscally transparent entity, would not have been entitled to the payment of an additional amount had the beneficiary, settlor, beneficial owner or member received directly its beneficial or
distributive share of the payment; (iii) to a tax, assessment or governmental charge (including backup withholding) that would not have been imposed but for the failure of the Holder or any
other person to comply with certification, information, documentation, reporting or other similar requirements concerning the nationality, residence, identity or connection with the United States of
the Holder or other person, if compliance is required by statute or by regulation of the United States Department of the Treasury, without regard to any tax treaty, or by an applicable income tax
treaty to which the United States is a party as a precondition to partial or complete relief or exemption from such tax, assessment or other governmental charge (including, but not limited to, the
failure to provide United States Internal Revenue Service, Form W-8BEN-E, W-8BEN, W-8ECI or any subsequent versions thereof), or any other certification, information, documentation, reporting
or other similar requirement under United States income tax laws or regulations or intergovernmental agreements (including entering into and complying with an agreement with the U.S. Internal Revenue
Service to report information or complying with any 

5

 

similar
reporting requirements imposed by an intergovernmental agreement) that would establish entitlement to otherwise applicable relief or exemption from any tax, assessment or governmental charge;
(iv) to a tax, assessment or governmental charge that is imposed otherwise than by withholding by the Company or a paying agent from the payment; (v) to a tax, assessment or governmental
charge that would not have been imposed or withheld but for a change in law, regulation, or administrative or judicial interpretation that becomes effective more than 10 days after the payment
becomes due or is duly provided for, whichever occurs later; (vi) to a tax, assessment or governmental charge that is imposed or withheld by reason of the presentation of a Note for payment
more than 30 days after the date on which such payment becomes due or is duly provided for, whichever occurs later; (vii) to an estate, inheritance, gift, sales, excise, transfer, wealth
or personal property tax or a similar tax, assessment or governmental charge; (viii) to any tax, assessment or other governmental charge required
to be withheld by any paying agent from any payment of principal of or interest on any Note, if such payment can be made without such withholding by any other paying agent; (ix) to any
withholding or deduction which is imposed on a payment to an individual and is required to be made pursuant to European Council Directive 2003/48/EC on the taxation of savings income, or any law
implementing or complying with, or introduced in order to conform to, such Directive; or (x) in the case of any combination of items (i), (ii), (iii), (iv), (v), (vi), (vii),
(viii) and (ix). 

        (c)   The
Notes are subject in all cases to any tax, fiscal or other law or regulation or administrative or judicial interpretation applicable thereto. Except as specifically
provided for herein, the Company shall not be required to make any payment with respect to any tax, assessment or governmental charge imposed by any government or a political subdivision or taxing
authority thereof or therein. 

 
 

           Section 2.7    Optional Redemption by the Company.     

        The
Notes shall not be redeemable at the option of the Company prior to their Stated Maturity except under the following circumstances: 

        (a)   Prior
to October 22, 2021, on at least thirty (30) days and no more than sixty (60) days prior written notice, the Notes may be redeemed, in whole
or in part, at the option of the Company, at a Redemption Price equal to the greater of (i) 100% of the principal amount of the Notes to be redeemed and (ii) the sum of the present
values of the remaining scheduled payments of principal thereof to be redeemed and interest thereon that would be due after the related date fixed for redemption (any such date fixed pursuant to this
Section 2.7, a "REDEMPTION DATE") but for such redemption (exclusive of interest accrued to the Redemption Date), discounted to the Redemption Date on an annual basis (ACTUAL/ACTUAL (ICMA)), at
the applicable Comparable Government Bond Rate plus 20 basis points, together, in each case, with any accrued and unpaid interest thereon to, but excluding, the Redemption Date;  provided, however, that if such Redemption Date is not an interest payment date with respect to such
Note, the amount of the next scheduled interest payment thereon will be reduced (solely for the purpose of this calculation) by the amount of interest accrued thereon to such Redemption Date. The
Company will calculate the Redemption Price, which calculation will be binding and conclusive absent manifest error. For purposes of this section, the term "COMPARABLE GOVERNMENT BOND RATE" means,
with respect to any Redemption Date, the rate per annum equal to the yield to maturity, expressed as a percentage (rounded to three decimal places, with 0.0005 being rounded upwards), on the third
Business Day prior to the Redemption Date, of the Comparable Government Bond on the basis of the middle market price of the Comparable Government Bond prevailing at 11:00 a.m. (London time) on
such Business Day as determined by an independent investment bank selected by the Company and the term "COMPARABLE GOVERNMENT BOND" means, in relation to any Comparable Government Bond Rate
calculation, a bond that is a direct obligation of the Federal Republic of Germany ("German government bond") 

6

 

(Bundesanleihe) selected by an independent investment bank as having an actual or interpolated maturity comparable to the remaining term of the Notes to
be redeemed or such other German government bond as such independent investment bank may, with the advice of three brokers of, and/or market makers in, German government bonds selected by the Company,
determine to be appropriate for determining the Comparable Government Bond Rate 

        (b)   On
or after October 22, 2021, the Notes may be redeemed, in whole or in part, at the option of the Company, at a Redemption Price equal to the principal amount of
the Notes being redeemed, together with any accrued and unpaid interest thereon to, but excluding, the Redemption Date; provided that the principal amount of any Notes remaining outstanding after
redemption in part shall be €100,000 or any integral multiples of €1,000 in excess thereof. 

        (c)   If
as a result of (i) any change in (including any announced prospective change), or amendment to, the laws (including any regulations or rulings promulgated
thereunder) of the United States (or any political subdivision or taxing authority thereof or therein), or any change in (including any announced prospective change), or amendment to, any official
position regarding the application or interpretation of such laws, which change or amendment is announced or becomes effective on or after November 15, 2016, or (ii) a taxing authority
of the United States taking any action, or such action becoming generally known, on or after November 15, 2016, whether or not such action is taken with respect to the Company or any of its
affiliates, there is in either case a material increase in the probability that the Company will or may be required to pay additional amounts as provided for in Section 2.6 above (a "TAX
EVENT"), then the Company may in either case, at its option, redeem, in whole or in part, the Notes, at a Redemption Price equal to the principal amount of the Notes being redeemed, together with any
accrued and unpaid interest thereon to, but excluding, the Redemption Date; provided that the Company determines, in its business judgment, that the obligation to pay such additional amounts cannot be
avoided by the use of reasonable measures available to it, not including substitution of the obligor under the Notes. Prior to the publication of any notice of redemption, the Company will deliver to
the Trustee an officer's certificate stating that the Company is entitled to effect a redemption and setting forth a statement of facts showing that the conditions precedent to the Company's right to
redeem have occurred and an Opinion of Tax Counsel to that effect based on that statement of facts. 

 
 

           Section 2.8    Satisfaction and Discharge.     The Notes shall be subject to the satisfaction and
defeasance provisions of Article Six of the Base Indenture, except that all references to "U.S. Government
Obligations" shall be replaced by "Federal Republic of Germany Obligations." 

 
 

          Section 2.9    Events of Default.     

        (a)   An
"EVENT OF DEFAULT" with respect to the Notes shall mean an event specified in clauses (a), (b), (d), (e), (f), (g) and (h) of Section 7.01
of the Base Indenture. Clause (c) Section 7.01 of the Base Indenture shall be inapplicable with respect to the Notes (and shall not constitute an Event of Default with respect to the
Notes). 

 
 

           Section 2.10    Exchange and Registration of Transfer of Securities.     

        The
Base Indenture is hereby amended and supplemented with respect to the Debentures by replacing the seventh paragraph of Section 3.05 with the following: "As provided in
Section 3.04 hereof, each Global Security authenticated under this Indenture shall be registered in the name of the Depositary, for, and in respect of interests held through, the applicable
Depositary, designated for such Global Security or a nominee thereof and delivered to such Depositary or a custodian therefor on behalf of the applicable Depositary, and each such Global Security
shall constitute a single Security for all purposes of this Indenture. Notwithstanding the foregoing and except as otherwise specified as contemplated by Section 3.01, no Global Security shall
be registered for transfer or exchange, or 

7

 

authenticated
or delivered, pursuant to this Section 3.05 or Sections 3.06, 3.07, 4.07 or 11.07 in the name of a Person other than the Depositary for such Security or its nominee until
(i) the Depositary with respect to a Global Security notifies the Company in writing that it is unwilling or unable to continue as Depositary for such Global Security or the Depositary ceases
to be a clearing agency registered under the Exchange Act or other applicable statute or regulation if required thereunder, and in each case the Company does not appoint a successor depositary within
90 days, (ii) the Company executes and delivers to the Trustee a Company Order that such Global Security shall be so transferable and exchangeable or (iii) there shall have
occurred and be continuing an Event of Default with respect to the Securities of such Series. Upon the occurrence in respect of any Global Security of any series of any one or more of the conditions
specified in clauses (i), (ii) or (iii) of the preceding sentence or such other conditions as may be specified as contemplated by Section 3.01 for such series, the Company
shall execute, and the Trustee upon receipt of a Company Order shall authenticate and deliver, without service charge, (i) to the Depositary or to each Person specified by such Depositary a new
Security or Securities of the same series, of like tenor and terms in definitive form and of any authorized denomination as requested by such Person in aggregate principal amount equal to and in
exchange for such Person's beneficial interest in the Global Security, and (ii) to such Depositary a new Global Security of like tenor and terms and in a principal amount equal to the
difference, if any, between the
principal amount of the surrendered Global Security and the aggregate principal amount of Securities delivered pursuant to clause (i)." 

 
 

          Section 2.11    Designation of Depositary.     

        Initially,
the Depositary for the Notes will be The Bank of New York Mellon, London Branch as common depositary for Clearstream, Luxembourg and Euroclear. The Global Notes will be
registered in the name of the Depositary or its nominee for, and in respect of interests held through, the applicable Depositary, and delivered by the Trustee to the Depositary or a custodian
appointed by the Depositary on behalf of the applicable Depositary for crediting to the accounts of the respective participants for each respective Depositary. 

 
 

           Section 2.12    Conversion.     

        The
Notes will not be convertible into any other security. 

 
 

           Section 2.13    Definitive Form of Notes.     

        The
Notes will be issued in definitive form only under the limited circumstances set forth in Section 3.05 of the Base Indenture. 

 
 

           Section 2.14    Company Reports.     

        The
provisions of Section 9.04 of the Base Indenture relating to the nature, content and date for reports by the Company to the Holders of the Notes, to the extent such provisions
are mandated by the Trust Indenture Act of 1939, as amended, shall apply to the Notes. 

 
 

          Section 2.15    Modification of Indenture.     

        The
Company may, without the consent of any Holder of Notes, amend this First Supplemental Indenture in accordance the provisions contained in Article Eleven of the Base Indenture. 

 
 

           Section 2.16    Sinking Fund.     

        The
provisions contained in Article Five of the Base Indenture shall not apply to the Notes. 

8

 
 
 

  ARTICLE III
  
    MISCELLANEOUS    
    

 
 
        Section 3.1    Ratification of Indenture.     

        The
Base Indenture, as supplemented and amended by this First Supplemental Indenture, is ratified and confirmed, and this First Supplemental Indenture shall be deemed part of the Base
Indenture with respect to the Notes in the manner and to the extent herein and therein provided. The amendments to the Base Indenture set forth in this First Supplemental Indenture apply solely to the
Notes and not to any other series of Securities that may be issued under the Base Indenture. If any provision of this First Supplemental Indenture is inconsistent with a provision of the Base
Indenture, the terms of this First Supplemental Indenture shall control. 

 
 

           Section 3.2    Multiple Trustees.     

        The
obligations of the Trustee hereunder are in addition to (and not in lieu of) the obligations under the Base Indenture of the Trustee (as defined therein) thereunder. 

 
 

          Section 3.3    Trustee Not Responsible for Recitals.     

        The
recitals contained herein are made by the Company and not by the Trustee, and the Trustee assumes no responsibility for the correctness thereof. The Trustee makes no representation
as to the validity or sufficiency of this First Supplemental Indenture. 

 
 

          Section 3.4    Governing Law.     

        This
First Supplemental Indenture and the Notes shall be governed by, and construed in accordance with, the laws of the State of New York. 

 
 

           Section 3.5    Severability.     

        In
case any one or more of the provisions contained in this First Supplemental Indenture or in the Notes shall for any reason be held to be invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this First Supplemental Indenture or of the Notes, but this First Supplemental Indenture and the Notes
shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein or therein. 

 
 

           Section 3.6    Counterparts.     

        This
First Supplemental Indenture may be executed in any number of counterparts each of which shall be an original, but such counterparts shall together constitute but one and the same
instrument. 

 
 

           Section 3.7    Successors and Assigns.     

        All
covenants and agreements in the Indenture by the Company shall bind its successors and assigns, whether expressed or not. The Company will have the right at all times to assign any
of its respective rights or obligations under the Indenture to a direct or indirect wholly-owned Subsidiary of the Company; provided that, in the event of any such assignment, the Company will remain
liable for all of its respective obligations. Subject to the foregoing, the Indenture will be binding upon and inure to the benefit of the parties thereto and their respective successors and assigns.
The Indenture may not otherwise be assigned by the parties thereto. 

 
 

           Section 3.8    Trustee.     

        In
connection with its appointment and acting hereunder, the Trustee is entitled to all rights, privileges, protections, immunities, benefits and indemnities provided to the Indenture
Trustee under the Base Indenture. 

9

 
 
 

  ARTICLE IV
  
    TRUSTEE    
    

 

 
 
        Section 4.1    Force Majeure.     

        In
no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God,
and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Trustee shall use reasonable efforts which are
consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances. 

 

 
 

           Section 4.2    Waiver of Jury Trial.     

        EACH
OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT
OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE, THE NOTES OR THE TRANSACTION CONTEMPLATED HEREBY. 

 

 
 

           Section 4.3    Liability.     

        In
no event shall the Trustee be responsible or liable for special, indirect, or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit)
irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action. 

 
 

           Section 4.4    Certain Tax Matters     

        The
Trustee shall be entitled to deduct or withhold from payments under this Agreement amounts required to be withheld pursuant to an agreement described in Section 1471(b) of the
Internal Revenue Code of 1986, as amended, (the "Code") or otherwise pursuant to Sections 1471 through 1474 of the Code and any regulations or agreements thereunder or official interpretations
thereof ("FATCA"). To the extent permitted under applicable privacy law and if expressly authorized by any agreement between the Issuer and a holder or beneficial owner or by the terms of any tax
certification, the Issuer hereby covenants with the Trustee that it will use commercially reasonable efforts to provide the Trustee with any relevant tax certification in the possession of the Issuer
or other information identified by the Issuer in its sole discretion as relevant for FATCA withholding tax purposes that may be useful to assist the Trustee to determine whether or not it is obliged,
in respect of any payments to be made by it pursuant to this Agreement, to make any withholding or deduction pursuant to FATCA. 

10

        IN
WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be duly executed as of the day and year first above written. 

 

 
 

							
	 
	 	AMERICAN EXPRESS CREDIT CORPORATION
	 
	 	 By:
	 	 /s/ KERRI BERNSTEIN

 
	 
	 	 	 	Name:	 	Kerri Bernstein
	 
	 	 	 	Title:	 	 Treasurer

 

 

 
 

								
	 	  THE BANK OF NEW YORK MELLON

as Trustee
	 	  

	 	 By:
	 	 /s/ LATOYA S. ELVIN

 	 	  

	 	 
	 	Name:	 	Latoya S. Elvin	 	  

	 	 
	 	Title:	 	 Vice President	 	  

 

 

 
 

  EXHIBIT 4.2    
    

 
    Exhibit A    
    

 
    [FORM OF FACE OF NOTE]    
    

        THIS
NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE BANK OF NEW YORK DEPOSITARY (NOMINEES) LIMITED, AS NOMINEE OF
THE BANK OF NEW YORK MELLON, LONDON BRANCH, AS COMMON DEPOSITARY FOR EUROCLEAR BANK S.A./N.V. AND CLEARSTREAM BANKING, SOCIÉTÉ ANONYME (THE "DEPOSITARY"), OR A
NOMINEE OF THE DEPOSITARY. THIS NOTE IS EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS
NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY
A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY) MAY BE
REGISTERED UNLESS AND UNTIL THIS NOTE IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM. UNLESS (A) THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY TO
AMERICAN EXPRESS CREDIT CORPORATION OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, (B) ANY NOTE ISSUED IS REGISTERED IN THE NAME REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITARY AND (C) ANY PAYMENT HEREON IS MADE TO THE BANK OF NEW YORK MELLON, AS TRUSTEE, OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY, AND
EXCEPT AS OTHERWISE PROVIDED IN THE INDENTURE, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, THE BANK OF NEW YORK
DEPOSITARY (NOMINEES) LIMITED, HAS AN INTEREST HEREIN. 

 
 
 

  AMERICAN EXPRESS CREDIT CORPORATION    
    

 
    0.625% SENIOR NOTE DUE 2021    
    

 

 
 

			
	 
	 	 

	 CERTIFICATE NO.:
	 	 €                        

	 CUSIP NO: 025818 KC8
	 	 
	 ISIN NO: XS1521058518
	 	 
	 COMMON CODE: 152105851
	 	 

 

         This
Note is one of a duly authorized series of Securities of AMERICAN EXPRESS CREDIT CORPORATION (the "NOTES"), all issued under and pursuant to an indenture (the "BASE INDENTURE")
dated as of June 9, 2006, duly executed and delivered by AMERICAN EXPRESS CREDIT CORPORATION, a Delaware corporation (the "COMPANY," which term includes any successor corporation under the
Indenture, as hereinafter referred to), and THE BANK OF NEW YORK MELLON (formerly known as The Bank of New York), as trustee (the "TRUSTEE"), as supplemented by the First Supplemental Indenture
thereto dated as of November 22, 2016 (the "FIRST SUPPLEMENTAL INDENTURE," and together with the Base Indenture, the "INDENTURE"), between the Company and the Trustee, to which the Indenture
and all indentures supplemental thereto reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company and
the Holders of the Notes. 

        The
Company, for value received, hereby promises to pay to The Bank Of New York Depositary (Nominees) Limited, as nominee of Clearstream Banking, société
anonyme and Euroclear Bank S.A./N.V., or their registered assigns, the principal sum of                        euros
(€            ) on the Maturity of the Notes as increased or
decreased as provided for in Schedule 1 hereto. 

        Interest
Payment Date: November 22 of each year, commencing on November 22, 2017. 

        Reference
is hereby made to the further provisions of this Note set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place. 

A-2

 

        IN
WITNESS WHEREOF, the Company has caused this Note to be duly executed manually or by facsimile by its duly authorized officers under its corporate seal. 

 

 
 

							
	 
	 	AMERICAN EXPRESS CREDIT

CORPORATION
	 
	 	 By:
	 	  

 
	 
	 	 	 	Name:	 	 
	 
	 	 	 	Title:	 	 
	 
	 	 Attest:

	 
	 	 By:
	 	   

 
	 
	 	 	 	Name:	 	 
	 
	 	 	 	Title:	 	 

 

 A-3

 
 
 

  TRUSTEE'S CERTIFICATE OF AUTHENTICATION    
    

        This is one of the 0.625% Senior Notes due 2021 issued under the within mentioned Indenture. 

 

 
 

							
	 
	 	THE BANK OF NEW YORK MELLON, as

Trustee
	 
	 	 By:
	 	  

 
	 
	 	 	 	Name:	 	 
	 
	 	 	 	Title:	 	 

 

 Dated:
November 22, 2016

A-4

 
 
 

  [FORM OF REVERSE OF NOTE]    
    

 
    AMERICAN EXPRESS CREDIT CORPORATION    
    

 
    0.625% SENIOR NOTE DUE 2021    
    

        To the extent permitted by applicable law, to the extent that any rights or other provisions of this Note differ from or are inconsistent with
those contained in the Indenture, then the Indenture shall control. Capitalized terms used herein but not defined shall have the meanings assigned to them in the Indenture unless otherwise indicated. 

        1.     Principal
and Interest. American Express Credit Corporation, a Delaware corporation (including any successor corporation under the Indenture hereinafter referred to, the
"COMPANY"), promises to pay interest on the principal amount of this Note at the Interest Rate from November 22, 2016 to the Maturity. 

        This
Note will accrue interest at a rate per annum of 0.625% of the principal amount, payable annually in arrears on November 22 of each year (each an "INTEREST PAYMENT DATE"),
commencing on November 22, 2017. Interest not paid on any Interest Payment Date, will accrue at the Interest Rate as provided in the Indenture. Subject to Section 2.5(a)(ii) of the First
Supplemental Indenture, such interest will accrue to the date that it is actually paid. 

        Interest
on the Notes will be computed on the basis of (i) the actual number of days in the period for which interest is being calculated and (ii) the actual number of days
from and including the last date on which interest was paid on the Notes (or November 22, 2016 if no interest has been paid on the Notes), to but excluding the next scheduled interest payment
date, as the case may be. This payment convention is referred to as ACTUAL/ACTUAL (ICMA) as defined in the rulebook of the International Capital Markets Association. 

        2.     Method
of Payment 

        Interest
on this Note which is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name this Note is registered in the
Securities Register at the close of business on the Regular Record Date for the payment of such interest, except
that interest payable at Maturity will be payable to the person to whom the principal of this Notes is paid. 

        3.     Paying
Agent and Securities Registrar 

        Initially,
The Bank of New York Mellon, London Branch, will act as Paying Agent and Security Registrar. The Company may change the Paying Agent and Securities Registrar without notice to
any Holder. 

        4.     Indenture

        The
terms of this Note include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended ("TIA"). This Note is
subject to all such terms, and Holders are referred to the Indenture and the TIA for a statement of all such terms. 

        5.     Optional
Right of Redemption 

        The
Company may, at its option, redeem the Notes (a) in whole or in part on or after the date that is thirty one (31) days prior to the Stated Maturity of the Notes at a
Redemption Price equal to the principal amount of the Notes being redeemed, together with any accrued and unpaid interest thereon to, but excluding, the Redemption Date, (b) in whole or in part
prior to October 22, 2021, on at least thirty (30) days and no more than sixty (60) days prior written notice and (c) in whole or in part after the occurrence of a Tax
Event at a Redemption Price equal to the principal amount of the 

A-5

 

Notes
being redeemed, together with any accrued and unpaid interest thereon to, but excluding, the Redemption Date. 

        6.     No
Sinking Fund. 

        The
Notes will not be subject to a sinking fund provision. 

        7.     Defaults,
Covenant Defaults and Remedies 

        The
Indenture provides for Events of Default and remedies relating thereto with respect to the Notes as set forth in Article Seven of the Base Indenture. 

        The
Indenture provides for Covenant Defaults and remedies relating thereto with respect to the Notes as set forth in Article Seven of the Base Indenture. 

        8.     Amendment;
Supplement 

        The
Indenture provides for amendments, supplements and waivers with respect to the Indenture as set forth in Article Eleven of the Base Indenture, as supplemented by Section 2.15
of the First Supplemental Indenture. 

        10.   Restrictive
Covenants 

        The
Indenture provides restrictive covenants with respect to the Notes as set forth in Article Twelve of the Base Indenture. 

        11.   Denomination;
Transfer; Exchange 

        The
Notes shall be issued only in fully registered form without coupons in denominations of minimum denominations of €100,000 and integral multiples of
€1,000 in excess thereof. As provided in the Indenture and subject to certain limitations herein and therein set forth, Notes so issued are exchangeable for a like aggregate principal
amount at maturity of Notes of a different authorized denomination, as requested by the Holder surrendering the same. 

        As
provided in the Indenture and subject to certain limitations therein set forth, this Note is transferable by the registered Holder hereof on the Securities Register of the Company,
upon surrender of this Note for registration of transfer at the office or agency maintained for such purpose accompanied by a written instrument or instruments of transfer in form satisfactory to the
Company or the Trustee, duly executed by the registered Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes of authorized denominations and for the same
aggregate principal amount at maturity will be issued to the designated transferee or transferees. No service
charge will be made for any such transfer, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in relation thereto. 

        12.   Persons
Deemed Owners 

        The
registered Holder of this Note shall be treated as its owner for all purposes. 

        13.   Defeasance

        Subject
to certain conditions contained in the Indenture, the Company's obligations under the Indenture and some or all of the Notes may at any time be terminated if the Company deposits
with the Trustee cash and/or Federal Republic of Germany Government Obligations sufficient in the opinion of a nationally recognized firm of independent public accountants to pay and discharge each
installment of principal, premium, if any, and interest on the Notes to Maturity as such becomes due and payable in accordance with the terms of the Indenture. 

A-6

 

        14.   Authentication 

        This
Note shall not be valid until the Trustee (or authenticating agent) executes the certificate of authentication on the other side of this Note. 

        15.   Governing
Law 

        The
Indenture and this Note shall be governed by, and construed in accordance with, the laws of the State of New York. 

A-7

 

 
 

  SCHEDULE 1    
    

 
    SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE    
    

        The following increases or decreases in this Global Note have been made: 

 

 
 

														
	Date

 
	 	Amount of Decrease

in Principal Amount

of Notes evidenced

by this Global Note 	 	Amount of Decrease

in Principal Amount

of Notes evidenced

by this Global Note 	 	Amount of Decrease

in Principal Amount

of Notes evidenced

by this Global Note

following such

decrease or increase 	 	Signature of

authorized officer

of agent 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 A-1Exhibit 10.1

 

	

    	
2017 Boston Scientific Annual Bonus Plan

Performance Period January 1 -   December 31

November 2016
    

 

I.                                        Establishment and Purpose of the Plan

 

Boston Scientific Corporation has established the Boston Scientific Corporation Annual Bonus Plan (“Plan”).    As explained in detail below, the Plan basically works as follows. For each Performance Year, there is an Aggregate Bonus Pool, which is the sum of the bonus targets of all eligible participants.  After the end of the Performance Year, the Committee determines the percentage of the pool that will be paid out as bonus for the year, based on the Company’s performance as to Sales and Adjusted Earnings Per Share and its attainment of quality goals.  The percentage will be between 50% and 150%. The payable portion of the pool is then separated into an Assigned Bonus Pool for each Business Group, Region and Unit, based on their performance as to their respective Scorecards.  The Compensation Management System then allocates the Assigned Bonus Pools among the managers, who evaluate the performance of the participants under their management and determine, for each participant, the percentage (between 0% and 200%) of the participant’s Target Annual Bonus that will be the participant’s Bonus Award for the Performance Year.

 

The Plan’s purpose is to align the Company’s interests and your interests as a Plan participant by providing incentive compensation for the achievement of Company and individual performance objectives.  For covered employees, the Plan is established under section 4.a.(8) of the Boston Scientific Corporation 2011 Long-Term Incentive Plan and is intended to qualify for the performance-based compensation exception under Code section 162(m).

 

The capitalized words and terms that are used throughout the Plan are defined in the Glossary in Article IX.

 

II.                                   Eligibility and Participation

 

You are eligible to participate in the Plan for a Performance Year if you satisfy all of the following eligibility criteria:

 

·                  You are either a Regular Exempt Employee or an Eligible International Employee;

 

·                  You are not eligible for commissions under any sales compensation plan of the Company;

 

·                  You are not eligible to participate in any other incentive plan or program of the Company (unless the written terms of that plan or program expressly permit participation in both that plan or program and the Plan); and

 

·                  You complete at least two full months of Eligible Service during the Performance Year.

 

If you are eligible to participate in the Plan for only part of the Performance Year (for example, because you change positions or business units during the Performance Year), then you may participate in the Plan on a prorated basis for the Performance Year, provided that you complete at least two full months of Eligible Service during the Performance Year (and, if you are an executive officer covered by Code section 162(m), your participation in the Plan for the Performance Year would not be inconsistent with Code section 162(m)).  If you are eligible for prorated participation, the Bonus Award, if any, otherwise payable to you for the Performance Year will be prorated based on your percentage of time in an eligible position during the Performance Year.

 

1

 

III.                              Target Annual Bonus

 

For each Performance Year in which you are eligible to participate, you will be assigned a Target Annual Bonus, which will be a specified percentage of your annual base salary, determined based on your position.  The Bonus Award, if any, that you ultimately receive for the Performance Year will be a percentage of your Target Annual Bonus, determined pursuant to Article IV. The Aggregate Bonus Pool for a Performance Year will be the sum of the Target Annual Bonuses of all employees who are eligible to participate in the Plan for the Performance Year.

 

IV.                               Steps For Determining Bonus Awards

 

Bonus Awards for a Performance Year will be determined pursuant to the following steps:

 

Step One: Establish performance goals, quality goals and the Corporate Performance Scale

 

On or before March 31 of a Performance Year, the Committee will establish performance goals for each of the Plan’s Performance Metrics and quality goals for the Performance Year.  The Performance Metrics are Sales and Adjusted Earnings Per Share.  The Committee will also establish the Corporate Performance Scale for the Performance Year, which will be set forth in a separate schedule.

 

Step Two:  Measure achievement and determine Total Annual Bonus

 

After the end of the Performance Year, the Committee will evaluate the Company’s financial performance results for the Performance Year and determine the extent to which the performance goals were attained.  The Committee will adopt a written resolution as to the extent of the attainment of the performance goals with respect to each of the Performance Metrics.  Based on the extent to which the performance goals were attained, the Chief Executive Officer will make a recommendation to the Committee, consistent with the Corporate Performance Scale, as to the Applicable Percentage of the Aggregate Bonus Pool to be paid by the Company as the Total Annual Bonus for the Performance Year.  Taking into account the Chief Executive Officer’s recommendation and any other factors that the Committee, in its discretion, deems appropriate, the Committee will approve an Applicable Percentage for the Performance Year, which must be consistent with the Corporate Performance Scale.  The Committee retains the right to reduce the Total Annual Bonus for the Performance Year based on the Committee’s Quality Assessment.  In no event, however, will the Total Annual Bonus be less than 50% of the Annual Bonus Pool for the Performance Year.

 

Step Three: Allocate the Total Annual Bonus

 

The Chief Executive Officer will make a recommendation to the Committee as to how the Total Annual Bonus for the Performance Year should be allocated among the Business Groups and Regions, based on their overall and relative performance against their respective applicable Scorecards for the Performance Year.  Taking into account the Chief Executive Officer’s recommendation and any other factors that the Committee, in its discretion, deems appropriate, the Committee will approve an allocation of the Total Annual Bonus among the Business Groups and Regions for the Performance Year.  The portion of the Total Annual Bonus allocated to a Business Group or Region (its Assigned Bonus Pool) will be a percentage of the total Target Annual Bonuses of all its employees who participate in the Plan for the Performance Year.  If a Business Group or Region has Units, the leader of the Business Group or Region will divide the Assigned Bonus Pool among the Units, based on their overall and relative performance against each Unit’s applicable Scorecard for the Performance Year, so that each Unit will then have its own Assigned Bonus Pool.  A Business Group or Region that does not have Units (for example, Corporate) will have a single Assigned Bonus Pool.

 

2

 

Step Four: Determine participants’ individual Bonus Awards

 

Once the Assigned Bonus Pool is determined for each Business Group, Region, or Unit, the amount of the Assigned Bonus Pool will be entered into the Compensation Management System, which allocates a portion of the Assigned Bonus Pool to each manager of Plan participants.  Each manager will evaluate the performance of each participant under his or her management and enter into the Compensation Management System a rating percentage, from 0% to 200%, for each evaluated participant.  The rating percentage that your manager assigns to you will, in turn, determine the percentage of your Target Annual Bonus that will be your Bonus Award for the Performance Year.

 

If participants leave the Company before the Payment Date and, as a result, do not earn their Bonus Awards for the Performance Year, their Bonus Awards will be reallocated by the Chief Executive Officer, in his or her discretion, to other participants who are employed on the Payment Date and will become part of the Bonus Awards paid to those other participants.  As provided in Article V, all Bonus Awards for a Performance Year (including those reallocated pursuant to the previous sentence) will be paid to eligible participants no later than March 15 of the following year.

 

Special Rules with Respect to Executive Officers

 

Notwithstanding any other provision of the Plan, the Committee retains sole and complete discretion to determine the eligibility of, and any Bonus Award payable to, each executive officer covered by Code section 162(m). The maximum Bonus Award payable with respect to a Performance Year to an executive officer covered by Code section 162(m) is $3,250,000.

 

V.                                    Payment Conditions

 

Payment Date and Form of Payment. Bonus Awards in the United States will be made by March 15 of the year following the Performance Year for which the Bonus Awards are made. Bonus Awards outside the United States will be processed as soon as administratively possible in each region following the end of the Performance Year and after the Committee has adopted its written resolution as to the attainment of performance goals pursuant to Article IV.  Your Bonus Award, if any, will be paid in a single lump sum payment.

 

Required Employment on the Payment Date.  Except as otherwise expressly provided in this Article V, to be eligible to receive payment of any Bonus Award, you must be employed by the Company on the Payment Date for that Bonus Award.  In other words, except as expressly provided in this Article V, if you cease employment with Boston Scientific Corporation and all of its Affiliates before the Payment Date, you will not be eligible to receive any Bonus Award that would otherwise have been payable to you if you had been a Company employee on that date.  Conversely, if you are an employee of the Company on the Payment Date, you will be entitled to your Bonus Award, if any, even if you are not actively performing duties on that date.  For example, if you are not required to report to work during a notification period applicable under a Company severance or separation plan, but you are still a Company employee during that period, and the Payment Date occurs during your notification period, you will remain eligible to receive your Bonus Award.

 

Exception Under Written Company Plan or Agreement.  If you are specifically exempted, under a written Company plan or agreement, from the requirement to be employed on the Payment Date, you may remain eligible for payment of your Bonus Award, depending on the terms of the applicable written plan or agreement.  In such cases, the terms of such written plan or agreement will govern in all respects.

 

Layoff.  Also notwithstanding any other provision of the Plan, if you are a participant and your employment ceases prior to the Payment Date by reason of Layoff, you may be eligible for payment of part or all of your Bonus Award, depending on the terms and conditions of the applicable severance pay plan, if any, for the country in which you are employed at the time of

 

3

 

layoff. In the event that there is no country-specific severance plan for the country in which you are employed at the time of your Layoff, applicable law will apply.

 

Retirement. Also notwithstanding any other provision of the Plan, if you are a participant and your employment ceases prior to the Payment Date for a Bonus Award but after September 30 of the Performance Year to which the Bonus Award pertains, and you had at least nine months of Eligible Service in the Performance Year, you will be entitled to a prorated portion of the Bonus Award, if any, that would otherwise be paid you if, as of the date of your cessation of employment, (1) you had attained age 55, (2) you had accrued at least five years of service with the Company and (3) the sum of your age and years of service as of your date of cessation of employment equals or exceeds 65.  In such a case, proration will be based on the percentage of time in the Performance Year during which you were employed and eligible to participate in the Plan.  The prorated Bonus Award, if any, will be paid on the Payment Date.

 

Death.  If your employment ceases prior to the Payment Date by reason of your death, but you otherwise met all eligibility criteria specified in Article II, your estate may receive a prorated portion of the Bonus Award, if any, that would have been paid had you lived to the Payment Date.  In such a case, proration will be based on the percentage of time in the Performance Year during which you were employed and eligible to participate in the Plan.  The prorated Bonus Award, if any, will be paid on the Payment Date.

 

Adjustment for Changes in Standard Hours.  Also notwithstanding any other provision of the Plan, if you are a participant and have a change in standard hours (part-time to full-time, full-time to part-time) during a Performance Year, your Bonus Award, if any, for the Performance Year will be based on the full-time equivalent Target Annual Bonus and your average annualized base salary for the Performance Year.  Except as provided in the preceding sentence, all Bonus Awards will be based on your salary and incentive target as of December 31 of the Performance Year.

 

No Guarantee of a Bonus Award.  Nothing in this Plan guarantees that any Bonus Award will be made to any individual.  Receipt of a Bonus Award in one year does not guarantee eligibility in any future year.

 

VI.                               Incentive Compensation Recoupment Policy

 

General Recoupment Policy.  To the extent permitted by governing law, the Board, in its discretion, may seek reimbursement of a Bonus Award paid to you if you are a Current Executive Officer or Former Executive Officer and you, in the judgment of the Board, commit misconduct or a gross dereliction of duty that results in a material violation of Company policy and causes significant harm to the Company while serving in your capacity as Executive Officer.  Further, in such case:

 

·                                          if you are a Current Executive Officer, the Board may seek reimbursement of all or a portion of the Bonus Award paid to you during the one-year period preceding the date on which such misconduct or dereliction of duty was discovered by the Company, or

 

·                                          if you are a Former Executive Officer, the Board may seek reimbursement of all or a portion of the Bonus Award paid to you during the one-year period preceding the last date on which you were a Current Executive Officer.

 

Restatement of Financial Results.  To the extent permitted by governing law, if you are an Executive Officer, the Board will seek reimbursement of a Bonus Award paid to you in the event of a restatement of the Company’s financial results that reduced a previously granted Bonus Award’s size or payment.  In that event, the Board will seek to recover the amount of the Bonus Award paid to you that exceeded the amount that would have been paid based on the restated financial results.

 

4

 

Provisions Required by Law.  If the Company subsequently determines that it is required by law to apply a “clawback” or alternate recoupment provision to a Bonus Award, under the Dodd-Frank Wall Street Reform and Consumer Protection Act or otherwise, then such clawback or recoupment provision also shall apply to the Bonus Award, as applicable, as if it had been included on the date the Plan was established and the Company shall notify you of such additional provision.

 

VII.                          Termination, Suspension or Modification and Interpretation of the Plan

 

The Board may terminate, suspend or modify (and if suspended, may reinstate with or without modification) all or part of the Plan at any time, with or without notice to participants.  The Committee has sole authority over administration and interpretation of the Plan, and the Committee retains its right to exercise discretion as it sees fit.

 

The Committee reserves the exclusive right to determine eligibility to participate in this Plan and to interpret all applicable terms and conditions, including eligibility criteria, performance objectives and payment conditions, for the Company’s executive officers.  The Committee delegates to the Company’s highest human resources officer the authority to administer, and determine eligibility to participate in, the Plan and interpret all applicable terms and conditions for employees who are not executive officers of the Company.  The determinations and interpretations of the Committee and its delegates will be conclusive.

 

All Bonus Awards are paid from the Company’s general assets.  No trust, account or other separate collection of amounts will be established for the payment of Bonus Awards under the Plan.  Bonus Awards are unfunded obligations of the Company, so if and when a Bonus Award becomes due, a participant’s rights to payment are no greater than the rights of a general unsecured creditor.

 

VIII.                     Other

 

This document sets forth the terms of the Plan and is not intended to be a contract or employment agreement between you or any other participant and the Company.  As applicable, it is understood that both you and the Company have the right to terminate your employment with the Company at any time, with or without cause and with or without notice, in acknowledgement of the fact that your employment relationship with the Company is “at will.”

 

IX.                              Glossary

 

As used in the Plan, the following words and terms, when capitalized, have the following meanings:

 

Adjusted Earnings Per Share means, with respect to a Performance Year, Adjusted Net Income divided by weighted average shares outstanding for the Performance Year (determined in accordance with generally accepted accounting principles).

 

Adjusted Net Income means the Company’s GAAP Net Income (as defined for purposes of the Boston Scientific Corporation 2011 Long-Term Incentive Plan) excluding goodwill and intangible asset impairments, acquisition, divestiture, and purchased research and development charges, restructuring expenses, certain tax-related items, and certain litigation and amortization expenses.

 

Affiliate means any corporation, trust, partnership, or any other entity that is considered to be a single employer with Boston Scientific Corporation under Code sections 414(b), (c), (m), or (o), such as a wholly-owned (or at least 80%-owned) subsidiary of Boston Scientific Corporation.

 

Aggregate Bonus Pool means, with respect to a Performance Year, the sum of the Target Annual Bonuses of all employees who are eligible to participate in the Plan for the Performance Year.

 

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Applicable Percentage means, with respect to a Performance Year, a percentage, determined by the Committee in accordance with the Corporate Performance Scale, which cannot be less than 50% or more than 150%.  The Applicable Percentage is used to determine the portion of the Aggregate Bonus Pool that the Company will pay out as the Total Annual Bonus for the Performance Year.

 

Assigned Bonus Pool means, with respect to a Business Group, Region, or Unit for a Performance Year, the portion of the Total Annual Bonus assigned to the Business Group, Region, or Unit to be paid as Bonus Awards for the Performance Year to eligible participants who worked for the Business Group, Region, or Unit during the Performance Year.

 

Board means the Board of Directors of Boston Scientific Corporation.

 

Bonus Award means, with respect to a participant for a Performance Year, the annual incentive bonus, if any, payable to the participant for the Performance Year, subject to the terms and conditions of the Plan.

 

Business Group means a functional or product-based area of the Company’s business, as designated by the Chief Executive Officer from time to time.

 

Chief Executive Officer means the Chief Executive Officer of Boston Scientific Corporation.

 

Code means the Internal Revenue Code of 1986, as amended, and its interpretive rules and regulations.

 

Committee means the Executive Compensation and Human Resources Committee of the Board.

 

Company means Boston Scientific Corporation and its Affiliates.

 

Compensation Management System means the software tool used by the Company for various compensation management purposes.

 

Corporate Performance Scale means, with respect to a Performance Year, the schedule used to determine, based on the extent of attainment of the performance goals for the Performance Year, the Applicable Percentage of the Aggregate Bonus Pool to be paid as the Total Annual Bonus for the Performance Year.  The Corporate Performance Scale must provide that the Applicable Percentage for a Performance Year cannot be less than 50%.

 

Current Executive Officer means any individual currently designated as an “officer” by the Board for purposes of Section 16 of the Securities Exchange Act of 1934, as amended.

 

Eligible International Employee means an international, international operations, or expatriate employee of the Company working in a position designated by the Company as eligible to participate in the Plan.

 

Eligible Service means periods in which you are considered, under the rules and procedures of the Company, to be in active service as a Regular Exempt Employee or Eligible International Employee (including, but not limited to, time away from work for approved vacation, recognized holidays, and FMLA leave).

 

Executive Officer means any Current Executive Officer or Former Executive Officer.

 

Former Executive Officer means any individual previously (but not currently) designated as an “officer” by the Board for purposes of Section 16 of the Securities Exchange Act of 1934, as amended.

 

Layoff means a layoff or similar involuntary termination from employment that renders you eligible for severance pay under a Company severance plan or applicable law.

 

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Payment Date means, with respect to a Performance Year, the date on which Bonus Awards for the Performance Year are paid to participants, which will be no later than March 15 of the following year.

 

Performance Metrics means Sales and Adjusted Earnings Per Share.

 

Performance Year means the 12-month period beginning on January 1 and ending on the following December 31.

 

Plan means the Boston Scientific Annual Bonus Plan, which is set forth in this document, as it may be amended from time to time.

 

Quality Assessment means the process undertaken by the Committee following the end of each Performance Year, to evaluate the Company’s progress made toward achievement of its quality objectives and the performance of the Company-wide quality system.

 

Region means a geographic region, as designated by the Chief Executive Officer from time to time, comprising a portion of the Company’s international business.

 

Regular Exempt Employee means an employee of the Company who is on the Company’s United States payroll and (1) classified by the Company as a regular full-time or regular part-time Employee; (2) performs a job that the Company has determined to be exempt from the minimum wage and overtime requirements of the Fair Labor Standards Act of 1938, as amended (FLSA); and (3) is not any of the following:

 

·                  classified by the Company as an intern, summer student, co-op employee, or similar short-term employee; or

 

·                  classified by the Company as a consultant, temporary or defined-term employee (such as temporary fellowship program employees), or similar category of limited-term employment, regardless of their work schedule or number of hours worked.

 

Sales means “BSC Global Sales” as that term is defined for purposes of the Boston Scientific Corporation 2011 Long-Term Incentive Plan, which measures sales using constant currency rates.

 

Scorecard means, with respect to a Performance Year, the tool used to establish performance measures and objectives with respect to a Business Group, Region, or Unit for the Performance Year.

 

Target Annual Bonus has the meaning given to that term in Article III.

 

Total Annual Bonus represents, with respect to a Performance Year, the total dollars to be paid out by the Company to all participating employees as Bonus Awards for the Performance Year.

 

Unit means a business unit of Business Group or Region, such as a plant or division (for a Business Group) or a country or group of countries (for a Region); the Units of a Business Group or Region may change from time to time.

 

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