Document:

Exhibit 4.6

 

ARGENX SE

 

FORM OF

 

SUBORDINATED INDENTURE

 

Dated as of [             ], 20[ ]

 

[              ]

 

Trustee

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE I   DEFINITIONS AND INCORPORATION BY REFERENCE
    	
1
    
	
Section 1.01
    	
Definitions
    	
1
    
	
Section 1.02
    	
Other Definitions
    	
5
    
	
Section 1.03
    	
Incorporation by   Reference of Trust Indenture Act
    	
5
    
	
Section 1.04
    	
Rules of   Construction
    	
5
    
	
ARTICLE II   THE SECURITIES
    	
6
    
	
Section 2.01
    	
Issuable in Series
    	
6
    
	
Section 2.02
    	
Establishment of Terms   of Series of Securities
    	
6
    
	
Section 2.03
    	
Execution and   Authentication
    	
8
    
	
Section 2.04
    	
Registrar and Paying   Agent
    	
9
    
	
Section 2.05
    	
Paying Agent to Hold   Money in Trust
    	
10
    
	
Section 2.06
    	
Securityholder Lists
    	
10
    
	
Section 2.07
    	
Transfer and Exchange
    	
10
    
	
Section 2.08
    	
Mutilated, Destroyed,   Lost and Stolen Securities
    	
11
    
	
Section 2.09
    	
Outstanding Securities
    	
12
    
	
Section 2.10
    	
Treasury Securities
    	
12
    
	
Section 2.11
    	
Temporary Securities
    	
12
    
	
Section 2.12
    	
Cancellation
    	
13
    
	
Section 2.13
    	
Defaulted Interest
    	
13
    
	
Section 2.14
    	
Global Securities
    	
13
    
	
Section 2.15
    	
CUSIP Numbers
    	
15
    
	
ARTICLE III   REDEMPTION
    	
16
    
	
Section 3.01
    	
Notice to Trustee
    	
16
    
	
Section 3.02
    	
Selection of Securities   to be Redeemed
    	
16
    
	
Section 3.03
    	
Notice of Redemption
    	
16
    
	
Section 3.04
    	
Effect of Notice of   Redemption
    	
17
    
	
Section 3.05
    	
Deposit of Redemption   Price
    	
17
    
	
Section 3.06
    	
Securities Redeemed in   Part
    	
17
    
	
ARTICLE IV   COVENANTS
    	
17
    
	
Section 4.01
    	
Payment of Principal   and Interest
    	
17
    
	
Section 4.02
    	
SEC Reports
    	
18
    
				

 

i

 

	
Section 4.03
    	
Compliance Certificate
    	
18
    
	
Section 4.04
    	
Stay, Extension and   Usury Laws
    	
19
    
	
Section 4.05
    	
Corporate Existence
    	
19
    
	
Section 4.06
    	
Taxes
    	
19
    
	
Section 4.07
    	
Additional Interest Notice
    	
19
    
	
Section 4.08
    	
Further Instruments and   Acts
    	
19
    
	
ARTICLE V   SUCCESSORS
    	
19
    
	
Section 5.01
    	
When Company   May Merge, Etc.
    	
19
    
	
Section 5.02
    	
Successor Corporation   Substituted
    	
20
    
	
ARTICLE VI   DEFAULTS AND REMEDIES
    	
20
    
	
Section 6.01
    	
Events of Default
    	
20
    
	
Section 6.02
    	
Acceleration of   Maturity; Rescission and Annulment
    	
22
    
	
Section 6.03
    	
Collection of   Indebtedness and Suits for Enforcement by Trustee
    	
23
    
	
Section 6.04
    	
Trustee May File   Proofs of Claim
    	
24
    
	
Section 6.05
    	
Trustee   May Enforce Claims Without Possession of Securities
    	
24
    
	
Section 6.06
    	
Application of Money   Collected
    	
24
    
	
Section 6.07
    	
Limitation on Suits
    	
25
    
	
Section 6.08
    	
Unconditional Right of   Holders to Receive Principal and Interest
    	
25
    
	
Section 6.09
    	
Restoration of Rights   and Remedies
    	
26
    
	
Section 6.10
    	
Rights and Remedies   Cumulative
    	
26
    
	
Section 6.11
    	
Delay or Omission Not   Waiver
    	
26
    
	
Section 6.12
    	
Control by Holders
    	
26
    
	
Section 6.13
    	
Waiver of Past Defaults
    	
26
    
	
Section 6.14
    	
Undertaking for Costs
    	
27
    
	
ARTICLE VII   TRUSTEE
    	
27
    
	
Section 7.01
    	
Duties of Trustee
    	
27
    
	
Section 7.02
    	
Rights of Trustee
    	
28
    
	
Section 7.03
    	
Individual Rights of   Trustee
    	
29
    
	
Section 7.04
    	
Trustee’s Disclaimer
    	
29
    
	
Section 7.05
    	
Notice of Defaults
    	
29
    
	
Section 7.06
    	
Reports by Trustee to   Holders
    	
30
    
	
Section 7.07
    	
Compensation and   Indemnity
    	
30
    
	
Section 7.08
    	
Replacement of Trustee
    	
31
    
	
Section 7.09
    	
Successor Trustee by   Merger, etc.
    	
32
    

 

ii

 

	
Section 7.10
    	
Eligibility;   Disqualification
    	
32
    
	
Section 7.11
    	
Preferential Collection   of Claims Against Company
    	
32
    
	
ARTICLE VIII   SATISFACTION AND DISCHARGE; DEFEASANCE
    	
32
    
	
Section 8.01
    	
Satisfaction and   Discharge of Indenture
    	
32
    
	
Section 8.02
    	
Application of Trust   Funds; Indemnification
    	
33
    
	
Section 8.03
    	
Legal Defeasance of   Securities of any Series
    	
34
    
	
Section 8.04
    	
Covenant Defeasance
    	
35
    
	
Section 8.05
    	
Repayment to Company
    	
36
    
	
ARTICLE IX   AMENDMENTS AND WAIVERS
    	
36
    
	
Section 9.01
    	
Without Consent of   Holders
    	
36
    
	
Section 9.02
    	
With Consent of Holders
    	
37
    
	
Section 9.03
    	
Limitations
    	
37
    
	
Section 9.04
    	
Compliance with Trust   Indenture Act
    	
38
    
	
Section 9.05
    	
Revocation and Effect   of Consents
    	
39
    
	
Section 9.06
    	
Notation on or Exchange   of Securities
    	
39
    
	
Section 9.07
    	
Trustee Protected
    	
39
    
	
Section 9.08
    	
Effect of Supplemental   Indenture
    	
39
    
	
ARTICLE X   MISCELLANEOUS
    	
39
    
	
Section 10.01
    	
Trust Indenture Act   Controls
    	
39
    
	
Section 10.02
    	
Notices
    	
39
    
	
Section 10.03
    	
Communication by   Holders with Other Holders
    	
40
    
	
Section 10.04
    	
Certificate and Opinion   as to Conditions Precedent
    	
41
    
	
Section 10.05
    	
Statements Required in   Certificate or Opinion
    	
41
    
	
Section 10.06
    	
Record Date for Vote or   Consent of Holders
    	
41
    
	
Section 10.07
    	
Rules by Trustee   and Agents
    	
41
    
	
Section 10.08
    	
Legal Holidays
    	
42
    
	
Section 10.09
    	
No Recourse Against   Others
    	
42
    
	
Section 10.10
    	
Counterparts
    	
42
    
	
Section 10.11
    	
Governing Laws and   Submission to Jurisdiction
    	
42
    
	
Section 10.12
    	
No Adverse   Interpretation of Other Agreements
    	
42
    
	
Section 10.13
    	
Successors
    	
43
    
	
Section 10.14
    	
Severability
    	
43
    
	
Section 10.15
    	
Table of Contents,   Headings, Etc.
    	
43
    
	
Section 10.16
    	
Securities in a Foreign   Currency or in ECU
    	
43
    

 

iii

 

	
Section 10.17
    	
Judgment Currency
    	
44
    
	
Section 10.18
    	
Compliance with   Applicable Anti-Terrorism and Money Laundering Regulations
    	
44
    
	
ARTICLE XI   SINKING FUNDS
    	
44
    
	
Section 11.01
    	
Applicability of   Article
    	
44
    
	
Section 11.02
    	
Satisfaction of Sinking   Fund Payments with Securities
    	
45
    
	
Section 11.03
    	
Redemption of   Securities for Sinking Fund
    	
45
    

 

iv

 

Reconciliation and tie between Trust Indenture Act of 1939 and Indenture,
 Dated as of [            ], 20[ ]

 

	
Section 310(a)(1)
    	
 
    	
7.10
    
	
(a)(2)
    	
 
    	
7.10
    
	
(a)(3)
    	
 
    	
Not Applicable
    
	
(a)(4)
    	
 
    	
Not Applicable
    
	
(a)(5)
    	
 
    	
7.10
    
	
(b)
    	
 
    	
7.10
    
	
(c)
    	
 
    	
Not Applicable
    
	
Section 311(a)
    	
 
    	
7.11
    
	
(b)
    	
 
    	
7.11
    
	
(c)
    	
 
    	
Not Applicable
    
	
Section 312(a)
    	
 
    	
2.06
    
	
(b)
    	
 
    	
10.03
    
	
(c)
    	
 
    	
10.03
    
	
Section 313(a)
    	
 
    	
7.06
    
	
(b)(1)
    	
 
    	
7.06
    
	
(b)(2)
    	
 
    	
7.06
    
	
(c)(1)
    	
 
    	
7.06
    
	
(d)
    	
 
    	
7.06
    
	
Section 314(a)
    	
 
    	
4.02, 10.05
    
	
(b)
    	
 
    	
Not Applicable
    
	
(c)(1)
    	
 
    	
10.04
    
	
(c)(2)
    	
 
    	
10.04
    
	
(c)(3)
    	
 
    	
Not Applicable
    
	
(d)
    	
 
    	
Not Applicable
    
	
(e)
    	
 
    	
10.05
    
	
(f)
    	
 
    	
Not Applicable
    
	
Section 315(a)
    	
 
    	
7.01
    
	
(b)
    	
 
    	
7.05
    
	
(c)
    	
 
    	
7.01
    
	
(d)
    	
 
    	
7.01
    
	
(e)
    	
 
    	
6.14
    
	
Section 316(a)(1)(A)
    	
 
    	
6.12
    
	
(a)(1)(B)
    	
 
    	
6.13
    
	
(a)(2)
    	
 
    	
Not Applicable
    
	
(b)
    	
 
    	
6.13
    
	
(c)
    	
 
    	
10.06
    
	
Section 317(a)(1)
    	
 
    	
6.03
    
	
(a)(2)
    	
 
    	
6.04
    
	
(b)
    	
 
    	
2.05
    
	
Section 318(a)
    	
 
    	
10.01
    

 

Note:      This reconciliation and tie shall not, for any purpose, be deemed to be part of the Indenture.

 

v

 

Indenture dated as of [                    ], 20[ ] between argenx SE, a Dutch European public company with limited liability (Societas Europaea or SE) (the “Company”) and [                ] (the “Trustee”).

 

Each party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Securities issued under this Indenture.

 

ARTICLE I
 DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.01                             Definitions.

 

“Additional Amounts” means any additional amounts which are required hereby or by any Security, under circumstances specified herein or therein, to be paid by the Company in respect of certain taxes imposed on Holders specified therein and which are owing to such Holders.

 

“Affiliate” of any specified person means any other person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified person.  For the purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”), as used with respect to any person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such person, whether through the ownership of voting securities or by agreement or otherwise.

 

“Agent” means any Registrar or Paying Agent.

 

“Bankruptcy Law” means Title 11 of the United States Code (or any successor thereto) or any similar federal or state law for the relief of debtors.

 

“Board of Directors” means the board of directors of the Company or any duly authorized committee thereof.

 

“Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been adopted by the Board of Directors or pursuant to authorization by the Board of Directors and to be in full force and effect on the date of the certificate and delivered to the Trustee.

 

“Business Day” means any day other than a (x) Saturday, (y) Sunday or (z) day on which state or federally chartered banking institutions in New York, New York are not required to be open.

 

“Capital Stock” of any Person means any and all shares, interests, rights to purchase, warrants, options, participations or other equivalents of or interests in (however designated) equity of such Person, but excluding any debt securities convertible into such equity.

 

“Certificated Securities” means Securities in the form of physical, certificated Securities in registered form.

 

1

 

“Company” means the party named as such above until a successor replaces it in accordance with the terms of this Indenture and thereafter means the successor.

 

“Company Order” means a written order signed in the name of the Company by two Officers, one of whom must be the Company’s principal executive officer, principal financial officer or principal accounting officer.

 

“Company Request” means a written request signed in the name of the Company by its Chairman of the Board, a President or a Vice President, and by its Chief Financial Officer, its Secretary or an Assistant Secretary, and delivered to the Trustee.

 

“Corporate Trust Office” means the office of the Trustee at which at any particular time its corporate trust business shall be principally administered which office at the date of the execution of this Indenture is [  ], Attention: [  ], or at such other address as the Trustee may designate from time to time.

 

“Custodian” means any receiver, trustee, assignee, liquidator, sequestrator or similar official under any Bankruptcy Law.

 

“Default” or “default” means any event which is, or after notice or passage of time or both would be, an Event of Default.

 

“Default Rate” means the default rate of interest specified in the Securities.

 

“Depository” means, with respect to the Securities of any Series issuable or issued in whole or in part in the form of one or more Global Securities, the person designated as Depository for such Series by the Company, which Depository shall be a clearing agency registered under the Exchange Act; and if at any time there is more than one such person, “Depository” as used with respect to the Securities of any Series shall mean the Depository with respect to the Securities of such Series.

 

“Discount Security” means any Security that provides for an amount less than the stated principal amount thereof to be due and payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.02.

 

“Dollars” means the currency of The United States of America.

 

“ECU” means the European Currency Unit as determined by the Commission of the European Union.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

“Foreign Currency” means any currency or currency unit issued by a government other than the government of The United States of America.

 

“Foreign Government Obligations” means with respect to Securities of any Series that are denominated in a Foreign Currency, (i) direct obligations of the government that issued or caused to be issued such currency for the payment of which obligations its full faith and credit is

 

2

 

pledged or (ii) obligations of a person controlled or supervised by or acting as an agency or instrumentality of such government the timely payment of which is unconditionally guaranteed as a full faith and credit obligation by such government, which, in either case under clauses (i) or (ii), are not callable or redeemable at the option of the issuer thereof.

 

“Global Security” or “Global Securities” means a Security or Securities, as the case may be, in the form established pursuant to Section 2.02 evidencing all or part of a Series of Securities, issued to the Depository for such Series or its nominee, and registered in the name of such Depository or nominee.

 

“Holder” or “Securityholder” means a person in whose name a Security is registered.

 

“Indenture” means this Indenture as amended and supplemented from time to time and shall include the form and terms of particular Series of Securities established as contemplated hereunder.

 

“Interest,” in respect of the Securities, unless the context otherwise requires, refers to interest payable on the Securities, including any additional interest that may become payable pursuant to Section 6.02(b).

 

“Maturity,” when used with respect to any Security or installment of principal thereof, means the date on which the principal of such Security or such installment of principal becomes due and payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption, notice of option to elect repayment or otherwise.

 

“Officer” means the Chief Executive Officer, the Chief Financial Officer, the Treasurer, the Secretary, any Assistant Treasurer or any Assistant Secretary of the Company.

 

“Officers’ Certificate” means a certificate signed by two Officers, one of whom must be the Company’s principal executive officer, principal financial officer or principal accounting officer.

 

“Opinion of Counsel” means a written opinion of legal counsel who is, and which opinion is, acceptable to the Trustee and its counsel.  Such legal counsel may be an employee of or counsel to the Company or the Trustee.

 

“Person” means any individual, corporation, partnership, joint venture, association, limited liability company, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof.

 

“Principal” or “principal” of a Security means the principal of the Security plus, when appropriate, the premium, if any, on, and any Additional Amounts in respect of, the Security.

 

“Responsible Officer” means any officer of the Trustee in its Corporate Trust Office and also means, any vice president, managing director, director, associate, assistant vice president, or any other officer of the Trustee customarily performing functions similar to those performed by any of the above designated officers and also, with respect to a particular corporate trust matter,

 

3

 

any other officer to whom any corporate trust matter is referred because of his or her knowledge of and familiarity with a particular subject.

 

“SEC” means the U.S. Securities and Exchange Commission.

 

“Security” or “Securities” means the debentures, notes or other debt instruments of the Company of any Series authenticated and delivered under this Indenture.

 

“Series” or “Series of Securities” means each series of debentures, notes or other debt instruments of the Company created pursuant to Sections 2.01 and 2.02 hereof.

 

“Stated Maturity” when used with respect to any Security or any installment of principal thereof or interest thereon, means the date specified in such Security as the fixed date on which the principal of such Security or such installment of principal or interest is due and payable.

 

“Subordinated Indebtedness” means any indebtedness which is expressly subordinated to the indebtedness evidenced by Securities.

 

“Subsidiary” means, in respect of any Person, any corporation, association, partnership or other business entity of which more than 50% of the total voting power of shares of Capital Stock or other interests (including partnership interests) entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers, general partners or trustees thereof is at the time owned or controlled, directly or indirectly, by (i) such Person; (ii) such Person and one or more Subsidiaries of such Person; or (iii) one or more Subsidiaries of such Person.

 

“TIA” means the Trust Indenture Act of 1939 (15 U.S. Code Sections 77aaa-77bbbb) as in effect on the date of this Indenture; provided, however, that in the event the Trust Indenture Act of 1939 is amended after such date, “TIA” means, to the extent required by any such amendment, the Trust Indenture Act as so amended.

 

“Trustee” means the person named as the “Trustee” in the first paragraph of this instrument until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean or include each person who is then a Trustee hereunder, and if at any time there is more than one such person, “Trustee” as used with respect to the Securities of any Series shall mean the Trustee with respect to Securities of that Series.

 

“U.S. Government Obligations” means securities which are (i) direct obligations of The United States of America for the payment of which its full faith and credit is pledged or (ii) obligations of a person controlled or supervised by and acting as an agency or instrumentality of The United States of America the payment of which is unconditionally guaranteed as a full faith and credit obligation by The United States of America, and which in the case of (i) and (ii) are not callable or redeemable at the option of the issuer thereof, and shall also include a depository receipt issued by a bank or trust company as custodian with respect to any such U.S. Government Obligation or a specific payment of interest on or principal of any such U.S. Government Obligation held by such custodian for the account of the holder of a depository receipt, provided

 

4

 

that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depository receipt from any amount received by the custodian in respect of the U.S. Government Obligation evidenced by such depository receipt.

 

Section 1.02                             Other Definitions.

 

	
TERM
    	
 
    	
DEFINED IN SECTION
    
	
“Applicable Law”
    	
 
    	
10.18
    
	
“Event of Default”
    	
 
    	
6.01
    
	
“Instrument”
    	
 
    	
6.01
    
	
“Journal”
    	
 
    	
10.16
    
	
“Judgment Currency”
    	
 
    	
10.17
    
	
“Legal Holiday”
    	
 
    	
10.08
    
	
“mandatory sinking fund payment”
    	
 
    	
11.01
    
	
“Market Exchange Rate”
    	
 
    	
10.16
    
	
“New York Banking Day”
    	
 
    	
10.17
    
	
“optional sinking fund payment”
    	
 
    	
11.01
    
	
“Paying Agent”
    	
 
    	
2.04
    
	
“Registrar”
    	
 
    	
2.04
    
	
“Required Currency”
    	
 
    	
10.17
    
	
“successor person”
    	
 
    	
5.01
    
	
“Temporary Securities”
    	
 
    	
2.11
    

 

Section 1.03                             Incorporation by Reference of Trust Indenture Act.  Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture.  This Indenture shall also include those provisions of the TIA required to be included herein by the provisions of the Trust Indenture Reform Act of 1990.  The following TIA terms used in this Indenture have the following meanings:

 

“indenture securities” means the Securities.

 

“indenture security holder” means a Securityholder.

 

“indenture to be qualified” means this Indenture.

 

“indenture trustee” or “institutional trustee” means the Trustee.

 

“obligor” on the indenture securities means the Company and any successor obligor upon the Securities.

 

All other terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule under the TIA and not otherwise defined herein are used herein as so defined.

 

Section 1.04                             Rules of Construction.  Unless the context otherwise requires:

 

(a)                                 a term has the meaning assigned to it;

 

5

 

(b)                                 an accounting term not otherwise defined has the meaning assigned to it in accordance with generally accepted accounting principles;

 

(c)                                  references to “generally accepted accounting principles” shall mean generally accepted accounting principles in effect as of the time when and for the period as to which such accounting principles are to be applied;

 

(d)                                 “or” is not exclusive;

 

(e)                                  words in the singular include the plural, and in the plural include the singular;

 

(f)                                   provisions apply to successive events and transactions;

 

(g)                                  references to agreements and other instruments include subsequent amendments thereto;

 

(h)                                 the term “merger” includes a statutory share exchange, and the term “merged” has a correlative meaning; and

 

(i)                                     “herein,” “hereof” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision.

 

ARTICLE II
 THE SECURITIES

 

Section 2.01                             Issuable in Series.  The aggregate principal amount of Securities that may be authenticated and delivered under this Indenture is unlimited.  The Securities may be issued in one or more Series.  All Securities of a Series shall be identical except as may be set forth in a Board Resolution, a supplemental indenture or an Officers’ Certificate detailing the adoption of the terms thereof pursuant to the authority granted under a Board Resolution.  In the case of Securities of a Series to be issued from time to time, the Board Resolution, Officers’ Certificate or supplemental indenture may provide for the method by which specified terms (such as interest rate, maturity date, record date or date from which interest shall accrue) are to be determined.  Securities may differ between Series in respect of any matters, provided that all Series of Securities shall be equally and ratably entitled to the benefits of the Indenture.

 

Section 2.02                             Establishment of Terms of Series of Securities.  At or prior to the issuance of any Securities within a Series, the following shall be established (as to the Series generally, in the case of Subsection (a), and either as to such Securities within the Series or as to the Series generally in the case of Subsections (b) through (t) by a Board Resolution, a supplemental indenture or an Officers’ Certificate pursuant to authority granted under a Board Resolution:

 

(a)                                 the title, designation, aggregate principal amount and authorized denominations of the Securities of the Series;

 

(b)                                 the price or prices, (expressed as a percentage of the aggregate principal amount thereof) at which the Securities of the Series will be issued;

 

6

 

(c)                                  the date or dates on which the principal of the Securities of the Series is payable;

 

(d)                                 the rate or rates (which may be fixed or variable) per annum or, if applicable, the method used to determine such rate or rates (including, but not limited to, any commodity, commodity index, stock exchange index or financial index) at which the Securities of the Series shall bear interest, if any, the date or dates from which such interest, if any, shall commence and be payable and any regular record date for the interest payable on any interest payment date;

 

(e)                                  any optional or mandatory sinking fund provisions or conversion or exchangeability provisions upon which Securities of the Series shall be redeemed, purchased, converted or exchanged;

 

(f)                                   the date, if any, after which and the price or prices at which the Securities of the Series may be optionally redeemed or must be mandatorily redeemed and any other terms and provisions of optional or mandatory provisions;

 

(g)                                  if other than denominations of $1,000 and any integral multiple thereof, the denominations in which the Securities of the Series shall be issuable;

 

(h)                                 if other than the full principal amount, the portion of the principal amount of the Securities of the Series that shall be payable upon declaration of acceleration pursuant to Section 6.02 or provable in bankruptcy;

 

(i)                                     any addition to or change in the Events of Default which applies to any Securities of the Series and any change in the right of the Trustee or the requisite Holders of such Securities to declare the principal amount thereof due and payable pursuant to Section 6.02;

 

(j)                                    the currency or currencies, including composite currencies, in which payments of principal of, premium or interest, if any, on the Securities of the Series will be payable, if other than the currency of the United States of America;

 

(k)                                 if payments of principal of, premium or interest, if any, on the Securities of the Series will be payable, at the Company’s election or at the election of any Holder, in a currency other than that in which the Securities of the Series are stated to be payable, the period or periods within which, and the terms and conditions upon which, the election may be made;

 

(l)                                     if payments of interest, if any, on the Securities of the Series will be payable, at the Company’s election or at the election of any Holder, in cash or additional securities, and the terms and conditions upon which the election may be made;

 

(m)                             if denominated in a currency or currencies other than the currency of the United States of America, the equivalent price of the Securities of the Series in the currency of the United States of America for purposes of determining the voting rights of Holders of the Securities of the Series;

 

7

 

(n)                                 if the amount of payments of principal, premium or interest may be determined with reference to an index, formula or other method based on a coin or currency other than that in which the Securities of the Series are stated to be payable, the manner in which the amounts will be determined;

 

(o)                                 any restrictive covenants or other material terms relating to the Securities of the Series;

 

(p)                                 whether the Securities of the Series will be issued in the form of global securities or certificates in registered form;

 

(q)                                 any terms with respect to subordination;

 

(r)                                    any listing on any securities exchange or quotation system;

 

(s)                                   additional provisions, if any, related to defeasance and discharge of the offered debt securities; and

 

(t)                                    the applicability of any guarantees, which would be governed by New York law.

 

All Securities of any one Series need not be issued at the same time and may be issued from time to time, consistent with the terms of this Indenture, if so provided by or pursuant to the Board Resolution, supplemental indenture or Officers’ Certificate referred to above, and the authorized principal amount of any Series may not be increased to provide for issuance of additional Securities of such Series, unless otherwise provided in such Board Resolution, supplemental Indenture or Officers’ Certificate.

 

Section 2.03                             Execution and Authentication.

 

Two Officers shall sign the Securities for the Company by manual or facsimile signature.

 

If an Officer whose signature is on a Security no longer holds that office at the time the Security is authenticated, the Security shall nevertheless be valid.

 

A Security shall not be valid until authenticated by the manual signature of the Trustee or an authenticating agent.  The signature shall be conclusive evidence that the Security has been authenticated under this Indenture.

 

The Trustee shall at any time, and from time to time, authenticate Securities for original issue in the principal amount provided in the Board Resolution, supplemental indenture hereto or Officers’ Certificate, upon receipt by the Trustee of a Company Order.  Such Company Order may authorize authentication and delivery pursuant to oral or electronic instructions from the Company or its duly authorized agent or agents, which oral instructions shall be promptly confirmed in writing.  Each Security shall be dated the date of its authentication unless otherwise provided by a Board Resolution, a supplemental indenture hereto or an Officers’ Certificate.

 

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The aggregate principal amount of Securities of any Series outstanding at any time may not exceed any limit upon the maximum principal amount for such Series set forth in the Board Resolution, supplemental indenture hereto or Officers’ Certificate delivered pursuant to Section 2.02, except as provided in Section 2.08.

 

Prior to the issuance of Securities of any Series, the Trustee shall have received and (subject to Section 7.02) shall be fully protected in relying on: (a) the Board Resolution, supplemental indenture hereto or Officers Certificate establishing the form of the Securities of that Series or of Securities within that Series and the terms of the Securities of that Series or of Securities within that Series, (b) an Officers’ Certificate complying with Section 10.04, and (c) an Opinion of Counsel complying with Section 10.04.

 

The Trustee shall have the right to decline to authenticate and deliver any Securities of such Series: (a) if the Trustee, being advised by counsel, determines that such action may not lawfully be taken; or (b) if a Responsible Officer of the Trustee in good faith shall determine that such action would expose the Trustee to personal liability to Holders of any then outstanding Series of Securities.

 

The Trustee may appoint an authenticating agent acceptable to the Company to authenticate Securities.  An authenticating agent may authenticate Securities whenever the Trustee may do so.  Each reference in this Indenture to authentication by the Trustee includes authentication by such agent.  An authenticating agent has the same rights as an Agent to deal with the Company or an Affiliate.

 

If any successor that has replaced the Company in accordance with Article V has executed an indenture supplemental hereto with the Trustee pursuant to Section 5.01, any of the Securities authenticated or delivered prior to such transaction may, from time to time, at the request of such successor, be exchanged for other Securities executed in the name of the such successor with such changes in phraseology and form as may be appropriate, but otherwise identical to the Securities surrendered for such exchange and of like principal amount; and the Trustee, upon receipt of a Company Order of such successor, shall authenticate and deliver Securities as specified in such order for the purpose of such exchange.  If Securities shall at any time be authenticated and delivered in any new name of such successor pursuant to this provision of Section 2.03 in exchange or substitution for or upon registration of transfer of any Securities, such successor, at the option of the Holders but without expense to them, shall provide for the exchange of all Securities then outstanding for Securities authenticated and delivered in such new name.

 

Section 2.04                             Registrar and Paying Agent.

 

The Company shall maintain, with respect to each Series of Securities, at the place or places specified with respect to such Series pursuant to Section 2.02, an office or agency where Securities of such Series may be presented or surrendered for payment (“Paying Agent”) and where Securities of such Series may be surrendered for registration of transfer or exchange (“Registrar”).  The Registrar shall keep a register with respect to each Series of Securities and to their transfer and exchange.  The Company will give prompt written notice to the Trustee of the name and address, and any change in the name or address, of each Registrar and Paying

 

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Agent.  If at any time the Company shall fail to maintain any such required Registrar or Paying Agent or shall fail to furnish the Trustee with the name and address thereof, such presentations and surrenders may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all such presentations and surrenders.

 

The Company may also from time to time designate one or more co-registrars or additional paying agents and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligations to maintain a Registrar or Paying Agent in each place so specified pursuant to Section 2.02 for Securities of any Series for such purposes.  The Company will give prompt written notice to the Trustee of any such designation or rescission and of any change in the name or address of any such co-registrar or additional paying agent.  The term “Registrar” includes any co-registrar; and the term “Paying Agent” includes any additional paying agent.

 

The Company hereby appoints [                             ] as the initial Registrar and Paying Agent for each Series unless another Registrar or Paying Agent as the case may be, is appointed prior to the time Securities of that Series are first issued.  Each Registrar and Paying Agent shall be entitled to all of the rights, protections, exculpations and indemnities afforded to the Trustee in connection with its roles as Registrar and Paying Agent.

 

Section 2.05                             Paying Agent to Hold Money in Trust.  The Company shall require each Paying Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust, for the benefit of Securityholders of any Series of Securities, or the Trustee, all money held by the Paying Agent for the payment of principal of or interest on the Series of Securities, and will notify the Trustee of any default by the Company in making any such payment.  While any such default continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee.  The Company at any time may require a Paying Agent to pay all money held by it to the Trustee.  Upon payment over to the Trustee, the Paying Agent (if other than the Company or a Subsidiary) shall have no further liability for the money.  If the Company or a Subsidiary acts as Paying Agent, it shall segregate and hold in a separate trust fund for the benefit of Securityholders of any Series of Securities all money held by it as Paying Agent.

 

Section 2.06                             Securityholder Lists.  The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Securityholders of each Series of Securities and shall otherwise comply with TIA Section 312(a).  If the Trustee is not the Registrar, the Company shall furnish to the Trustee at least [  ] days before each interest payment date and at such other times as the Trustee may request in writing a list, in such form and as of such date as the Trustee may reasonably require, of the names and addresses of Securityholders of each Series of Securities.

 

Section 2.07                             Transfer and Exchange.

 

Where Securities of a Series are presented to the Registrar or a co-registrar with a request to register a transfer or to exchange them for an equal principal amount of Securities of the same Series, the Registrar shall register the transfer or make the exchange if its requirements for such transactions are met.  To permit registrations of transfers and exchanges, the Trustee shall

 

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authenticate Securities at the Registrar’s request.  Any exchange or transfer shall be without charge, except that the Company or the Registrar may require payment of a sum sufficient to cover any tax or other governmental charge required by law; provided that this sentence shall not apply to any exchange pursuant to Section 2.11, 2.08, 3.06 or 9.06.

 

Neither the Company nor the Registrar shall be required (a) to issue, register the transfer of, or exchange Securities of any Series for the period beginning at the opening of business [  ] days immediately preceding the mailing of a notice of redemption of Securities of that Series selected for redemption and ending at the close of business on the day of such mailing, or (b) to register the transfer of or exchange Securities of any Series selected, called or being called for redemption as a whole or the portion being redeemed of any such Securities selected, called or being called for redemption in part.

 

All Securities issued upon any transfer or exchange of Securities shall be valid obligations of the Company, evidencing the same debt and entitled to the same benefits under this Indenture, as the Securities surrendered upon such transfer or exchange.  Any Registrar appointed pursuant to Section 2.04 shall provide to the Trustee such information as the Trustee may reasonably require in connection with the delivery by such Registrar of Securities upon transfer or exchange of Securities.  Each Holder of a Security agrees to indemnify the Company and the Trustee against any liability that may result from the transfer, exchange or assignment of such Holder’s Security in violation of any provision of this Indenture and/or applicable U.S. federal or state securities law.

 

Section 2.08                             Mutilated, Destroyed, Lost and Stolen Securities.

 

If any mutilated Security is surrendered to the Registrar, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a new Security of the same Series and of like tenor and principal amount and bearing a number not contemporaneously outstanding.

 

If there shall be delivered to the Company and the Registrar (i) evidence to their satisfaction of the destruction, loss or theft of any Security and (ii) such security or indemnity as may be required by them to save each of them and any agent of either of them harmless, then, in the absence of notice to the Company or the Registrar that such Security has been acquired by a bona fide purchaser, the Company shall execute and upon its request the Trustee shall authenticate and make available for delivery, in lieu of any such destroyed, lost or stolen Security, a new Security of the same Series and of like tenor and principal amount and bearing a number not contemporaneously outstanding.

 

In case any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Security, pay such Security.

 

Upon the issuance of any new Security under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith.

 

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Every new Security of any series issued pursuant to this Section in lieu of any destroyed, lost or stolen Security shall constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities of that Series duly issued hereunder.

 

The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities.

 

Section 2.09                             Outstanding Securities.

 

The Securities outstanding at any time are all the Securities authenticated by the Trustee except for those canceled by it, those delivered to it for cancellation, those reductions in the interest on a Global Security effected by the Trustee in accordance with the provisions hereof and those described in this Section as not outstanding.

 

If a Security is replaced pursuant to Section 2.08, it ceases to be outstanding until the Trustee receives proof satisfactory to it that the replaced Security is held by a bona fide purchaser.

 

If the Paying Agent (other than the Company, a Subsidiary or an Affiliate of any thereof) holds on the Maturity of Securities of a Series money sufficient to pay such Securities payable on that date, then on and after that date such Securities of the Series cease to be outstanding and interest on them ceases to accrue.

 

A Security does not cease to be outstanding because the Company or an Affiliate holds the Security.

 

In determining whether the Holders of the requisite principal amount of outstanding Securities have given any request, demand, authorization, direction, notice, consent or waiver hereunder, the principal amount of a Discount Security that shall be deemed to be outstanding for such purposes shall be the amount of the principal thereof that would be due and payable as of the date of such determination upon a declaration of acceleration of the Maturity thereof pursuant to Section 6.02.

 

Section 2.10                             Treasury Securities.  In determining whether the Holders of the required principal amount of Securities of a Series have concurred in any request, demand, authorization, direction, notice, consent or waiver Securities of a Series owned by the Company or an Affiliate shall be disregarded, except that for the purposes of determining whether the Trustee shall be protected in relying on any such request, demand, authorization, direction, notice, consent or waiver only Securities of a Series that a Responsible Officer of the Trustee actually knows are so owned shall be so disregarded.

 

Section 2.11                             Temporary Securities.  Until definitive Securities are ready for delivery, the Company may prepare and the Trustee shall authenticate temporary securities upon a Company Order (“Temporary Securities”).  Temporary Securities shall be substantially in the form of definitive Securities but may have variations that the Company considers appropriate for

 

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temporary Securities.  Without unreasonable delay, the Company shall prepare and the Trustee upon written request shall authenticate definitive Securities of the same Series and date of maturity in exchange for temporary Securities.  Until so exchanged, temporary securities shall have the same rights under this Indenture as the definitive Securities.

 

Section 2.12                             Cancellation.

 

The Company at any time may deliver Securities to the Trustee for cancellation.  The Registrar and the Paying Agent shall forward to the Trustee or its agent any Securities surrendered to them for transfer, exchange, payment or conversion.  The Trustee and no one else shall cancel, in accordance with its standard procedures, all Securities surrendered for transfer, exchange, payment, conversion or cancellation and shall deliver the cancelled Securities to the Company.  No Security shall be authenticated in exchange for any Security cancelled pursuant to this Section 2.12.

 

The Company may, to the extent permitted by law, purchase Securities in the open market or by tender offer at any price or by private agreement.  Any Securities purchased or otherwise acquired by the Company or any of its Subsidiaries prior to the final maturity of such Securities may, to the extent permitted by law, be reissued or resold or may, at the option of the Company, be surrendered to the Trustee for cancellation.  Any Securities surrendered for cancellation may not be reissued or resold and shall be promptly cancelled by the Trustee, and the Company may not hold or resell such Securities or issue any new Securities to replace any such Securities.

 

Section 2.13                             Defaulted Interest.  If the Company defaults in a payment of interest on a Series of Securities, it shall pay defaulted interest, plus, to the extent permitted by law, any interest payable on the defaulted interest at the Default Rate, to the persons who are Security holders of the Series on a subsequent special record date.  The Company shall fix the record date and payment date.  At least [  ] days before the record date, the Company shall mail to the Trustee and the Paying Agent and to each Securityholder of the Series a notice that states the record date, the payment date and the amount of interest to be paid.  The Company may pay defaulted interest in any other lawful manner.

 

Section 2.14                             Global Securities.

 

(a)                                 A Board Resolution, a supplemental indenture hereto or an Officers’ Certificate shall establish whether the Securities of a Series shall be issued in whole or in part in the form of one or more Global Securities and the Depository for such Global Security or Securities.

 

(b)                                 (i)  Notwithstanding any provisions to the contrary contained in Section 2.07 of the Indenture and in addition thereto, any Global Security shall be exchangeable pursuant to Section 2.07 of the Indenture for Securities registered in the names of Holders other than the Depository for such Security or its nominee only if (A) such Depository notifies the Company that it is unwilling or unable to continue as Depository for such Global Security or if at any time such Depository ceases to be a clearing agency registered under the Exchange Act, and, in either case, the Company fails to appoint a successor Depository within 90 days of such event,

 

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(B) the Company executes and delivers to the Trustee an Officers’ Certificate to the effect that such Global Security shall be so exchangeable or (C) an Event of Default with respect to the Securities represented by such Global Security shall have happened and be continuing.

 

(ii)                                  Except as provided in this Section 2.14(b), a Global Security may not be transferred except as a whole by the Depository with respect to such Global Security to a nominee of such Depository, by a nominee of such Depository to such Depository or another nominee of such Depository or by the Depository or any such nominee to a successor Depository or a nominee of such a successor Depository.

 

(iii)                               Securities issued in exchange for a Global Security or any portion thereof shall be issued in definitive, fully registered form, without interest coupons, shall have an aggregate principal amount equal to that of such Global Security or portion thereof to be so exchanged, shall be registered in such names and be in such authorized denominations as the Depository shall designate and shall bear the applicable legends provided for herein.  Any Global Security to be exchanged in whole shall be surrendered by the Depository to the Trustee, as Registrar.  With regard to any Global Security to be exchanged in part, either such Global Security shall be so surrendered for exchange or, if the Registrar is acting as custodian for the Depository or its nominee with respect to such Global Security, the principal amount thereof shall be reduced by an amount equal to the portion thereof to be so exchanged, by means of an appropriate adjustment made on the records of the Trustee.  Upon any such surrender or adjustment, the Trustee shall authenticate and deliver the Security issuable on such exchange to or upon the order of the Depository or an authorized representative thereof.

 

(iv)                              The registered Holder may grant proxies and otherwise authorize any Person, including participants in the Depository and persons that may hold interests through participants in the Depository, to take any action which a Holder is entitled to take under this Indenture or the Securities.

 

(v)                                 In the event of the occurrence of any of the events specified in 2.14(b)(i), the Company will promptly make available to the Trustee a reasonable supply of Certificated Securities in definitive, fully registered form, without interest coupons.  If (A) an event described in Section 2.14(b)(i)(A) or (B) occurs and definitive Certificated Securities are not issued promptly to all beneficial owners or (B) the Registrar receives from a beneficial owner instructions to obtain definitive Certificated Securities due to an event described in Section 2.14(b)(i)(C) and definitive Certificated Securities are not issued promptly to any such beneficial owner, the Company expressly acknowledges, with respect to the right of any Holder to pursue a remedy pursuant to Section 6.07 hereof, the right of any beneficial owner of Securities to pursue such remedy with respect to the portion of the Global Security that represents such beneficial owner’s Securities as if such definitive certificated Securities had been issued.

 

(vi)                              Notwithstanding any provision to the contrary in this Indenture, so long as a Global Security remains outstanding and is held by or on behalf of the Depository, transfers of a Global Security, in whole or in part, or of any beneficial interest therein, shall only be made in accordance with Section 2.07, this Section 2.14(b)

 

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and the rules and procedures of the Depository for such Global Security to the extent applicable to such transaction and as in effect from time to time.

 

(c)                                  Any Global Security issued hereunder shall bear a legend in substantially the following form:

 

“This Security is a Global Security within the meaning of the Indenture hereinafter referred to and is registered in the name of the Depository or a nominee of the Depository.  This Security is exchangeable for Securities registered in the name of a person other than the Depository or its nominee only in the limited circumstances described in the Indenture, and may not be transferred except as a whole by the Depository to a nominee of the Depository, by a nominee of the Depository to the Depository or another nominee of the Depository or by the Depository or any such nominee to a successor Depository or a nominee of such a successor Depository.”

 

(d)                                 The Depository, as a Holder, may appoint agents and otherwise authorize participants to give or take any request, demand, authorization, direction, notice, consent, waiver or other action which a Holder is entitled to give or take under the Indenture.

 

(e)                                  Notwithstanding the other provisions of this Indenture, unless otherwise specified as contemplated by Section 2.02, payment of the principal of and interest, if any, on any Global Security shall be made to the Holder thereof at their registered office.

 

(f)                                   At all times the Securities are held in book-entry form with a Depository, (i) the Trustee may deal with such Depository as the authorized representative of the Holders, (ii) the rights of the Holders shall be exercised only through the Depository and shall be limited to those established by law and agreement between the Holders and the Depository and/or direct participants of the Depository, (iii) the Depository will make book-entry transfers among the direct participants of the Depository and will receive and transmit distributions of principal and interest on the Securities to such direct participants; and (iv) the direct participants of the Depository shall have no rights under this Indenture, or any supplement hereto, under or with respect to any of the Securities held on their behalf by the Depository, and the Depository may be treated by the Trustee and its agents, employees, officers and directors as the absolute owner of the Securities for all purposes whatsoever.

 

Section 2.15                             CUSIP Numbers.  The Company in issuing the Securities may use “CUSIP”, “CCN”, “ISIN” or other identification numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP”, “CCN”, “ISIN” or such other identification numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any notice of a redemption and that reliance may be placed only on the other elements of identification printed on the Securities, and any such redemption shall not be affected by any defect in or omission of such numbers.

 

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ARTICLE III
 REDEMPTION

 

Section 3.01                             Notice to Trustee.  The Company may, with respect to any series of Securities, reserve the right to redeem and pay the Series of Securities or may covenant to redeem and pay the Series of Securities or any part thereof prior to the Stated Maturity thereof at such time and on such terms as provided for in such Securities.  If a Series of Securities is redeemable and the Company wants or is obligated to redeem prior to the Stated Maturity thereof all or part of the Series of Securities pursuant to the terms of such Securities, it shall notify the Trustee and Registrar in writing of the redemption date and the principal amount of Series of Securities to be redeemed.  The Company shall give the notice at least [  ] days before the redemption date (or such shorter notice as may be acceptable to the Trustee and Registrar).

 

Section 3.02                             Selection of Securities to be Redeemed.  Unless otherwise indicated for a particular Series by a Board Resolution, a supplemental indenture or an Officers’ Certificate, if less than all the Securities of a Series are to be redeemed, the Registrar shall select the Securities of the Series to be redeemed in accordance with its customary procedures.  The Registrar shall make the selection from Securities of the Series outstanding not previously called for redemption.  The Registrar may select for redemption portions of the principal of Securities of the Series that have denominations larger than $1,000.  Securities of the Series and portions of them it selects shall be in amounts of $1,000 or whole multiples of $1,000 or, with respect to Securities of any Series issuable in other denominations pursuant to Section 2.02(g), the minimum principal denomination for each Series and integral multiples thereof.  Provisions of this Indenture that apply to Securities of a Series called for redemption also apply to portions of Securities of that Series called for redemption.

 

Section 3.03                             Notice of Redemption.  Unless otherwise indicated for a particular Series by Board Resolution, a supplemental indenture hereto or an Officers’ Certificate, at least [  ] days but not more than [  ] days before a redemption date, the Company shall mail a notice of redemption by first-class mail to each Holder whose Securities are to be redeemed.

 

The notice shall identify the Securities of the Series to be redeemed and shall state:

 

(a)                                 the redemption date;

 

(b)                                 the redemption price;

 

(c)                                  the name and address of the Paying Agent;

 

(d)                                 that Securities of the Series called for redemption must be surrendered to the Paying Agent to collect the redemption price;

 

(e)                                  that interest on Securities of the Series called for redemption ceases to accrue on and after the redemption date; and

 

(f)                                   any other information as may be required by the terms of the particular Series or the Securities of a Series being redeemed.

 

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At the Company’s written request, the Trustee shall distribute the notice of redemption prepared by the Company in the Company’s name and at its expense.

 

Section 3.04                             Effect of Notice of Redemption.  Once notice of redemption is mailed or published as provided in Section 3.03, Securities of a Series called for redemption become due and payable on the redemption date and at the redemption price.  A notice of redemption may not be conditional.  Upon surrender to the Paying Agent, such Securities shall be paid at the redemption price plus accrued interest to the redemption date.

 

Section 3.05                             Deposit of Redemption Price.  On or before the redemption date, the Company shall deposit with the Paying Agent money sufficient to pay the redemption price of and accrued interest, if any, on all Securities to be redeemed on that date.

 

Section 3.06                             Securities Redeemed in Part.  Upon surrender of a Security that is redeemed in part, the Trustee shall authenticate for the Holder a new Security of the same Series and the same maturity equal in principal amount to the unredeemed portion of the Security surrendered.

 

ARTICLE IV
 COVENANTS

 

Section 4.01                             Payment of Principal and Interest.  The Company covenants and agrees for the benefit of the Holders of each Series of Securities that it will duly and punctually pay the principal of and interest, if any, on the Securities of that Series in accordance with the terms of such Securities and this Indenture.

 

Unless otherwise provided under the terms of a particular Series of Securities:

 

(a)                                 an installment of principal or interest shall be considered paid on the date it is due if the Paying Agent (other than the Company) holds by [  ] [a].m., New York City time, on that date money, deposited by the Company or an Affiliate thereof, sufficient to pay such installment.  The Company shall (in immediately available funds), to the fullest extent permitted by law, pay interest on overdue principal and overdue installments of interest at the rate borne by the Securities per annum; and

 

(b)                                 payment of the principal of and interest on the Securities shall be made at the office or agency of the Company maintained for that purpose in [      ] (which shall initially be [            ], the Paying Agent) in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that at the option of the Company payment of interest may be made by check mailed to the address of the Person entitled thereto as such address appears in the register; provided, further, that a Holder with an aggregate principal amount in excess of $[] will be paid by wire transfer in immediately available funds at the election of such Holder if such Holder has provided wire transfer instructions to the Company at least [  ] Business Days prior to the payment date.

 

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Section 4.02                             SEC Reports.

 

So long as any Securities are outstanding, the Company shall (i) file with the SEC within the time periods prescribed by its rules and regulations and (ii) furnish to the Trustee and the Holders of the Securities within [  ] days after the date on which the Company would be required to file the same with the SEC pursuant to its rules and regulations (giving effect to any grace period provided by Rule 12b-25 under the Exchange Act), all quarterly and annual financial information required to be furnished or filed with the SEC pursuant to Section 13 and Section 15(d) of the Exchange Act and, with respect to the annual consolidated financial statements only, a report thereon by the Company’s independent auditors.  The Company also shall comply with the other provisions of TIA Section 314(a).

 

Delivery of such reports, information and documents to the Trustee is for informational purposes only, and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officers’ Certificates).  The Company shall not be required to file any report or other information with the SEC if the SEC does not permit such filing, although such reports shall be furnished to the Trustee.  Documents filed by the Company with the SEC via the SEC’s EDGAR system (or any successor thereto) will be deemed furnished to the Trustee and the Holders of the Securities as of the time such documents are filed via EDGAR (or such successor).

 

Section 4.03                             Compliance Certificate.

 

The Company shall deliver to the Trustee, within [   ] days after the end of each fiscal year of the Company, an officers certificate signed by two of the Company’s officers stating that a review of the activities of the Company and its Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officers with a view to determining whether the Company has kept, observed, performed and fulfilled its obligations under this Indenture, and further stating, as to each such Officer signing such certificate, that to the best of his knowledge the Company has kept, observed, performed and fulfilled each and every covenant contained in this Indenture and is not in default in the performance or observance of any of the terms, provisions and conditions hereof (or, if a Default or Event of Default shall have occurred, describing all such Defaults or Events of Default of which he may have knowledge in reasonable detail and the efforts to remedy the same).  For purposes of this Section 4.03, compliance shall be determined without regard to any grace period or requirement of notice provided pursuant to the terms of this Indenture.

 

The Company shall deliver to the Trustee, within [   ] days after the occurrence thereof, written notice in the form of an Officers’ Certificate of any Event of Default described in Section 6.01(e), (f), (g) or (h) and any event of which it becomes aware that with the giving of notice or the lapse of time would become such an Event of Default, its status and what action the Company is taking or proposes to take with respect thereto.  For the avoidance of doubt, a breach of a covenant under an Instrument that is not a payment default and that has not given rise to a right of acceleration under such Instrument shall not trigger the requirement to provide notice under this paragraph.

 

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Section 4.04                             Stay, Extension and Usury Laws.  The Company covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture or the Securities; and the Company (to the extent it may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law has been enacted.

 

Section 4.05                             Corporate Existence.  Subject to Article V, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence and the corporate, partnership or other existence of each Subsidiary in accordance with the respective organizational documents of each Subsidiary and the rights (charter and statutory), licenses and franchises of the Company and its Subsidiaries; provided, however, that the Company shall not be required to preserve any such right, license or franchise, or the corporate, partnership or other existence of any Subsidiary, if the Board of Directors shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and its Subsidiaries taken as a whole and that the loss thereof is not adverse in any material respect to the Holders.

 

Section 4.06                             Taxes.  The Company shall, and shall cause each of its Subsidiaries to, pay prior to delinquency all taxes, assessments and governmental levies, except as contested in good faith and by appropriate proceedings.

 

Section 4.07                             Additional Interest Notice.  In the event that the Company is required to pay additional interest to Holders of Securities pursuant to Section 6.02(b) hereof, the Company shall provide a direction or order in the form of a written notice to the Trustee (and if the Trustee is not the Paying Agent, the Paying Agent) of the Company’s obligation to pay such additional interest no later than [   ] Business Days prior to date on which any such additional interest is scheduled to be paid.  Such notice shall set forth the amount of additional interest to be paid by the Company on such payment date and direct the Trustee (or, if the Trustee is not the Paying Agent, the Paying Agent) to make payment to the extent it receives funds from the Company to do so.  The Trustee shall not at any time be under any duty or responsibility to any Holder to determine whether additional interest is payable, or with respect to the nature, extent, or calculation of the amount of additional interest owed, or with respect to the method employed in such calculation of additional interest.

 

Section 4.08                             Further Instruments and Acts.  The Company will execute and deliver such further instruments and do such further acts as may be reasonably necessary or proper to carry out more effectively the purposes of this Indenture.

 

ARTICLE V
 SUCCESSORS

 

Section 5.01                             When Company May Merge, Etc.  The Company shall not consolidate with, enter into a binding share exchange, or merge into any other Person in a transaction in

 

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which it is not the surviving entity, or sell, assign, convey, transfer or lease or otherwise dispose of all or substantially all of its properties and assets to any Person (a “successor person”), unless:

 

(a)                                 the successor person (if any) is a corporation, partnership, trust or other entity organized and validly existing under the laws of the Kingdom of Belgium, [  ], the United States, any state of the United States or the District of Columbia and expressly assumes by a supplemental indenture executed and delivered to the Trustee, in form satisfactory to the Trustee, the due and punctual payment of the principal of, and any interest on, all Securities and the performance or observance of every covenant of this Indenture on the part of the Company to be performed or observed;

 

(b)                                 immediately after giving effect to the transaction, no Default or Event of Default, shall have occurred and be continuing; and

 

(c)                                  the Company shall have delivered to the Trustee, prior to the consummation of the proposed transaction, an Officers’ Certificate to the foregoing effect and an Opinion of Counsel stating that the proposed transaction and such supplemental indenture comply with this Indenture.

 

Section 5.02                             Successor Corporation Substituted.  Upon any consolidation or merger, or any sale, lease, conveyance or other disposition of all or substantially all of the assets of the Company in accordance with Section 5.01, the successor person formed by such consolidation or into or with which the Company is merged or to which such sale, lease, conveyance or other disposition is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor person has been named as the Company herein; provided, however, that the predecessor company in the case of a sale, lease, conveyance or other disposition of all or substantially all of the assets of the Company shall not be released from the obligation to pay the principal of and interest, if any, on the Securities.

 

ARTICLE VI
 DEFAULTS AND REMEDIES

 

Section 6.01                             Events of Default.

 

“Event of Default,” wherever used herein with respect to securities of any Series, means any one of the following events, unless in the establishing Board Resolution, supplemental indenture or Officers’ Certificate, it is provided that such Series shall not have the benefit of said Event of Default:

 

(a)                                 default in the payment of any interest on any Security of that Series when it becomes due and payable, and continuance of such default for a period of 30 days (unless the entire amount of such payment is deposited by the Company with the Trustee or with a Paying Agent prior to the expiration of such period of 30 days); or

 

(b)                                 default in the payment of any principal of any Security of that Series at its Maturity; or

 

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(c)                                  default in the deposit of any sinking fund payment, when and as due in respect of any Security of that Series; or

 

(d)                                 the Company fails to perform or comply with any of its other covenants or agreements contained in the Securities or in this Indenture (other than a covenant or agreement a default in whose performance or whose breach is specifically dealt with in clauses (a), (b) or (c) of this Section 6.01) and the default continues for 60 days after notice is given as specified below;

 

(e)                                  any indebtedness under any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company or any Subsidiary or under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any indebtedness for money borrowed by, or any other payment obligation of, the Company or any Subsidiary (an “Instrument”) with a principal amount then, individually or in the aggregate, outstanding in excess of $[     ], whether such indebtedness now exists or shall hereafter be created, is not paid at Maturity or when otherwise due or is accelerated, and such indebtedness is not discharged, or such default in payment or acceleration is not cured or rescinded, within a period of 30 days after there shall have been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least [   ]% in aggregate principal amount of the outstanding Securities of that Series a written notice specifying such default and requiring the Company to cause such indebtedness to be discharged or cause such default to be cured or waived or such acceleration to be rescinded or annulled and stating that such notice is a “Notice of Default” hereunder.  A payment obligation (other than indebtedness under any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company or any Subsidiary or under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any indebtedness for money borrowed by the Company or any Subsidiary) shall not be deemed to have matured, come due, or been accelerated to the extent that it is being disputed by the relevant obligor or obligors in good faith.  For the avoidance of doubt, the Maturity of an Instrument is the Maturity as set forth in that Instrument, as it may be amended from time to time in accordance with the terms of that Instrument;

 

(f)                                   the Company or any Subsidiary fails to pay one or more final and non-appealable judgments entered by a court or courts of competent jurisdiction, the aggregate uninsured or unbonded portion of which is in excess of $[     ], if the judgments are not paid, discharged, waived or stayed within [   ] days;

 

(g)                                  the Company or any Subsidiary of the Company, pursuant to or within the meaning of any Bankruptcy Law:

 

(i)                                     commences a voluntary case or proceeding;

 

(ii)                                  consents to the entry of an order for relief against it in an involuntary case or proceeding;

 

(iii)                               consents to the appointment of a Custodian of it or for all or substantially all of its property; or

 

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(iv)                              makes a general assignment for the benefit of its creditors; or

 

(v)                                 or generally is unable to pay its debts as the same become due; or

 

(h)                                 a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:

 

(i)                                     is for relief against the Company or any of its Subsidiaries in an involuntary case or proceeding;

 

(ii)                                  appoints a Custodian of the Company or any of its Subsidiaries for all or substantially all of the property of the Company or any such Subsidiary; or

 

(iii)                               orders the liquidation of the Company or any of its Subsidiaries;

 

and the case of each of clause (i), (ii) and (iii), the order or decree remains unstayed and in effect for [  ] consecutive days; or

 

(i)                                     any other Event of Default provided with respect to Securities of that Series, which is specified in a Board Resolution, a supplemental indenture hereto or an Officers’ Certificate, in accordance with Section 2.02(i).

 

A default under clause (d) above is not an Event of Default until the Trustee notifies the Company, or the Holders of at least [   ]% in aggregate principal amount of the Securities then outstanding notify the Company and the Trustee, in writing of the default, and the Company does not cure the default within 60 days after receipt of such notice.  The notice given pursuant to this Section 6.01 must specify the default, demand that it be remedied and state that the notice is a “Notice of Default.”  When any default under this Section 6.01 is cured, it ceases.

 

The Trustee shall not be charged with knowledge of any Event of Default unless written notice thereof shall have been given to a Trust Officer at the Corporate Trust Office of the Trustee by the Company, a Paying Agent, any Holder or any agent of any Holder.

 

Section 6.02                             Acceleration of Maturity; Rescission and Annulment.

 

(a)                                 If an Event of Default (other than an Event of Default specified in clause (g) or (h) of Section 6.01) occurs and is continuing with respect to any Securities of any Series, then in every such case, the Trustee may, by notice to the Company, or the Holders of at least 25% in aggregate principal amount of the Securities of that Series (or, if any Securities of that Series are Discount Securities, such portion of the principal amount as may be specified in the terms of such Securities) then outstanding may, by notice to the Company and the Trustee, declare all unpaid principal of, and accrued and unpaid interest on to the date of acceleration, the Securities of that Series then outstanding (if not then due and payable) to be due and payable upon any such declaration, and the same shall become and be immediately due and payable.  If an Event of Default specified in clause (g) or (h) of Section 6.01 occurs, all unpaid principal of the Securities then outstanding, and all accrued and unpaid interest thereon to the date of acceleration, shall ipso facto become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holder.  The Holders of a majority in

 

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aggregate principal amount of the Securities of that Series then outstanding by notice to the Trustee may rescind an acceleration of such Securities of that Series and its consequences if (a) all existing Events of Default, other than the nonpayment of the principal of the Securities which has become due solely by such declaration of acceleration, have been cured or waived; (b) to the extent the payment of such interest is lawful, interest (calculated at the Default Rate) on overdue installments of interest and overdue principal, which has become due otherwise than by such declaration of acceleration, has been paid; (c) the rescission would not conflict with any judgment or decree of a court of competent jurisdiction; and (d) all payments due to the Trustee and any predecessor Trustee under Section 7.07 have been made.  No such rescission shall affect any subsequent default or impair any right consequent thereto.

 

(b)                                 Notwithstanding any of provision of this Article VI, at the election of the Company in its sole discretion, the sole remedy under this Indenture for an Event of Default relating to the failure to comply with Section 4.02, and for any failure to comply with the requirements of Section 314(a)(1) of the TIA, will consist, for the 180 days after the occurrence of such an Event of Default, exclusively of the right to receive additional interest on the Securities at a rate equal to 0.50% per annum of the aggregate principal amount of the Securities then outstanding up to, but not including, the 181st day thereafter (or, if applicable, the earlier date on which the Event of Default relating to Section 4.02 is cured or waived).  Any such additional interest will be payable in the same manner and on the same dates as the stated interest payable on the Securities.  In no event shall additional interest accrue under the terms of this Indenture at a rate in excess of 0.50% per annum, in the aggregate, for any violation or default caused by the failure of the Company to be current in respect of its Exchange Act reporting obligations.  If the Event of Default is continuing on the 181st day after an Event of Default relating to a failure to comply with Section 4.02, the Securities will be subject to acceleration as provided in this Section 6.02.  The provisions of this Section 6.02(b) will not affect the rights of Holders in the event of the occurrence of any other Events of Default.

 

In order to elect to pay additional interest as the sole remedy during the first 180 days after the occurrence of an Event of Default relating to the failure to comply with Section 4.02 in accordance with the immediately preceding paragraph, the Company shall notify all Holders and the Trustee and Paying Agent of such election on or before the close of business on the fifth Business Day after the date on which such Event of Default otherwise would occur.  Upon a failure by the Company to timely give such notice or pay additional interest, the Securities will be immediately subject to acceleration as otherwise provided in this Section 6.02.

 

Section 6.03                             Collection of Indebtedness and Suits for Enforcement by Trustee.

 

If an Event of Default with respect to any Securities of any Series occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the Holders of Securities of such Series by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy.

 

If an Event of Default in the payment of principal, interest, if any, specified in clause (a) or (b) of Section 6.01 occurs and is continuing, the Trustee may recover judgment in its own

 

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name and as trustee of an express trust against the Company or another obligor on the Securities for the whole amount of principal, and accrued interest remaining unpaid, if any, together with, to the extent that payment of such interest is lawful, interest on overdue principal, on overdue installments of interest, if any, in each case at the Default Rate, and such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.

 

Section 6.04                             Trustee May File Proofs of Claim.  In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor upon the Securities or the property of the Company or of such other obligor or their creditors, the Trustee (irrespective of whether the principal of the Securities shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of overdue principal or interest) shall be entitled and empowered, by intervention in such proceeding or otherwise,

 

(a)                                 to file and prove a claim for the whole amount of principal and interest owing and unpaid in respect of the Securities and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and of the Holders allowed in such judicial proceeding, and

 

(b)                                 to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same, and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07.

 

Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

 

Section 6.05                             Trustee May Enforce Claims Without Possession of Securities.  All rights of action and claims under this Indenture or the Securities may be prosecuted and enforced by the Trustee without the possession of any of the Securities or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Securities in respect of which such judgment has been recovered.

 

Section 6.06                             Application of Money Collected.  Any money collected by the Trustee pursuant to this Article shall be applied in the following order, at the date or dates fixed by the

 

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Trustee and, in case of the distribution of such money on account of principal or interest, upon presentation of the Securities and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid: and

 

First:  To the payment of all amounts due the Trustee under Section 7.07;

 

Second:  To the payment of the amounts then due and unpaid for principal of and interest on the Securities in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on such Securities for principal and interest, respectively; and

 

Third:  To the Company.

 

Section 6.07                             Limitation on Suits.  No Holder of any Security of any Series shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture or the Securities or any related coupon, or for the appointment of a receiver or trustee, or for any other remedy hereunder (except actions for payment of overdue principal and interest), unless:

 

(a)                                 such Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to the Securities of that Series;

 

(b)                                 the Holders of not less than [   ]% in principal amount of the outstanding Securities of that Series shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder;

 

(c)                                  such Holder or Holders have offered to the Trustee indemnity satisfactory to it against the costs, expenses and liabilities to be incurred in compliance with such request;

 

(d)                                 the Trustee for [   ] days after its receipt of such notice, request and offer of indemnity has failed to institute any such proceeding; and

 

(e)                                  no direction inconsistent with such written request has been given to the Trustee during such [   ]-day period by the Holders of a majority in principal amount of the outstanding Securities of that Series; it being understood and intended that no one or more of such Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or preference over any other of such Holders or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all such Holders.

 

Section 6.08                             Unconditional Right of Holders to Receive Principal and Interest.  Notwithstanding any other provision in this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to receive payment of the principal of and interest, if any, on such Security on the Stated Maturity or Stated Maturities expressed in such Security (or, in the case of redemption, on the redemption date) and to institute suit for the enforcement of any such payment, and such rights shall not be impaired without the consent of such Holder.

 

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Section 6.09                             Restoration of Rights and Remedies.  If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case, subject to any determination in such proceeding, the Company, the Trustee and the Holders shall be restored severally and respectively to their former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such proceeding had been instituted.

 

Section 6.10                             Rights and Remedies Cumulative.  Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in Section 2.08, no right or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

 

Section 6.11                             Delay or Omission Not Waiver.  No delay or omission of the Trustee or of any Holder of any Securities to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein.  Every right and remedy given by this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Holders, as the case may be.

 

Section 6.12                             Control by Holders.  The Holders of a majority in principal amount of the outstanding Securities of any Series shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect to the Securities of such Series, provided that

 

(a)                                 such direction shall not be in conflict with any rule of law or with this Indenture,

 

(b)                                 the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction; and

 

(c)                                  subject to the provisions of Section 6.01, the Trustee shall have the right to decline to follow any such direction if the Trustee in good faith shall, by a Responsible Officer of the Trustee, determine that the proceeding so directed would involve the Trustee in personal liability or would be unduly prejudicial to the rights of another Holder or the Trustee.

 

Section 6.13                             Waiver of Past Defaults.  Subject to Section 9.02, the Holders of not less than a majority in principal amount of the outstanding Securities of any Series may on behalf of the Holders of all the Securities of such Series waive any past Default hereunder with respect to such Series and its consequences, except a Default in the payment of the principal of or interest on any Security of such Series (provided, however, that the Holders of a majority in principal amount of the outstanding Securities of any Series may rescind an acceleration and its

 

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consequences, including any related payment default that resulted from such acceleration).  Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereon.

 

Section 6.14                             Undertaking for Costs.  All parties to this Indenture agree, and each Holder of any Security by his acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken, suffered or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Company, to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than [  ]% in principal amount of the outstanding Securities of any Series, or to any suit instituted by any Holder for the enforcement of the payment of the principal of or interest on any Security on or after the Stated Maturity or Stated Maturities expressed in such Security (or, in the case of redemption, on the redemption date).

 

ARTICLE VII
 TRUSTEE

 

Section 7.01                             Duties of Trustee.

 

(a)                                 If an Event of Default has occurred and is continuing, the Trustee shall exercise the rights and powers vested in it by this Indenture and use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances in the conduct of his own affairs.

 

(b)                                 Except during the continuance of an Event of Default:

 

(i)                                     The Trustee need perform only those duties that are specifically set forth in this Indenture and no implied duties, covenants or obligations shall be deemed to be imposed upon the Trustee.

 

(ii)                                  in the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon Officers’ Certificates or Opinions of Counsel furnished to the Trustee and conforming to the requirements of this Indenture; however, in the case of any such Officers’ Certificates or Opinions of Counsel which by any provisions hereof are specifically required to be furnished to the Trustee, the Trustee shall examine such Officers’ Certificates and Opinions of Counsel to determine whether or not they conform on their face to the requirements of this Indenture.

 

(c)                                  The Trustee may not be relieved from liability for its own its own negligent action, its own negligent failure to act or willful misconduct, except that:

 

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(i)                                     This paragraph does not limit the effect of paragraph (b) of Section 7.01 herein.

 

(ii)                                  The Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer.

 

(iii)                               The Trustee shall not be liable with respect to any action taken, suffered or omitted to be taken by it with respect to Securities of any Series in good faith in accordance with the direction of the Holders of a majority in principal amount of the outstanding Securities of such Series relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture with respect to the Securities of such Series.

 

(d)                                 Every provision of this Indenture that in any way relates to the Trustee is subject to paragraph (a), (b) and (c) of this Section.

 

(e)                                  The Trustee may refuse to perform any duty or exercise any right or power unless it receives an indemnity satisfactory to it against any loss, liability or expense.

 

(f)                                   The Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with the Company.  Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law.

 

(g)                                  No provision of this Indenture shall require the Trustee to risk or expend its own funds or otherwise incur liability, financial or otherwise, in the performance of any of its duties, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or indemnity satisfactory to it against such risk is not reasonably assured to it.

 

(h)                                 The Paying Agent, the Registrar and any authenticating agent shall be entitled to the same rights, indemnities, protections and immunities afforded to the Trustee.

 

(i)                                     The Trustee shall have no duty to monitor the performance or compliance of the Company with its obligations hereunder or any under supplement hereto, nor shall it have any liability in connection with the malfeasance or nonfeasance by the Company.  The Trustee shall have no liability in connection with compliance by the Company with statutory or regulatory requirements related to this Indenture, any supplement or any Securities issued pursuant hereto or thereto.

 

Section 7.02                             Rights of Trustee.

 

(a)                                 The Trustee may conclusively rely on and shall be fully protected in acting or refraining from acting as a result of its reasonable belief that any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, direction, approval or other paper or document was genuine and had been signed or presented by the proper person.  The Trustee need not investigate any fact or matter stated in the document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it sees fit.

 

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(b)                                 Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate or an Opinion of Counsel or both.  The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such Officers’ Certificate or Opinion of Counsel.

 

(c)                                  The Trustee may act through agents and shall not be responsible for the misconduct or negligence of, or for the supervision of, any agent appointed with due care.  No Depository shall be deemed an agent of the Trustee and the Trustee shall not be responsible for any act or omission by any Depository.

 

(d)                                 The Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its rights or powers.

 

(e)                                  The Trustee may consult with counsel of its selection and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon.

 

(f)                                   The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by or pursuant to this Indenture at the request, order or direction of any of the Holders of Securities, unless such Holders shall have offered to the Trustee reasonable security or indemnity satisfactory to it against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.

 

Section 7.03                             Individual Rights of Trustee.  The Trustee, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with the Company or an Affiliate with the same rights it would have if it were not Trustee.  Any Agent may do the same with like rights.  The Trustee is also subject to Sections 7.10 and 7.11.

 

Section 7.04                             Trustee’s Disclaimer.  The Trustee makes no representation as to the validity or adequacy of this Indenture or the Securities and the recitals contained herein and in the Securities shall be taken as statements of the Company and not of the Trustee, and the Trustee has no responsibility for such recitals. The Trustee shall not be accountable for the Company’s use or application of the proceeds from the Securities or for monies paid over to the Company pursuant to this Indenture, and it shall not be responsible for any statement in the Securities other than its authentication.

 

Section 7.05                             Notice of Defaults.  If a Default or Event of Default occurs and is continuing with respect to the Securities of any Series and if a Responsible Officer of the Trustee has knowledge or receives written notice of such event, the Trustee shall mail to each Securityholder of the Securities of that Series, notice of a Default or Event of Default within [   ] days after it occurs or, if later, after a Responsible Officer of the Trustee has actual knowledge of such Default or Event of Default.  Except in the case of a Default or Event of Default in payment of principal of or interest on any Security of any Series, including any additional interest that may become payable pursuant to Section 6.02(b), the Trustee may withhold the notice so long as the Trustee in good faith determines that withholding the notice is in the interests of Securityholders of that Series.

 

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Section 7.06                             Reports by Trustee to Holders.

 

Within [   ] days after [                     ] in each year, the Trustee shall transmit by mail to all Securityholders, as their names and addresses appear on the register kept by the Registrar, a brief report dated as of such [       ], in accordance with, and to the extent required under, TIA Section 313.

 

A copy of each report at the time of its mailing to Securityholders of any Series shall be filed with the SEC and each stock exchange on which the Securities of that Series are listed.  The Company shall promptly notify the Trustee when Securities of any Series are listed on any stock exchange.

 

Section 7.07                             Compensation and Indemnity.

 

The Company shall pay to the Trustee from time to time such compensation for its services as shall be agreed upon in writing.  The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust.  The Company shall reimburse the Trustee upon request for all reasonable out-of-pocket expenses, disbursements and advances incurred by it.  Such expenses shall include the reasonable compensation and expenses of the Trustee’s agents, counsel and other persons not regularly in its employ.

 

The Company shall indemnify, defend and hold harmless the Trustee and its officers, directors, employees, representatives and agents, from and against and reimburse the Trustee for any and all claims, expenses, obligations, liabilities, losses, damages, injuries (to person, property, or natural resources), penalties, stamp or other similar taxes, actions, suits, judgments, reasonable costs and expenses (including reasonable attorney’s and agent’s fees and expenses) of whatever kind or nature regardless of their merit, demanded, asserted or claimed against the Trustee directly or indirectly relating to, or arising from, claims against the Trustee by reason of its participation in the transactions contemplated hereby, including without limitation all reasonable costs required to be associated with claims for damages to persons or property, and reasonable attorneys’ and consultants’ fees and expenses and court costs except to the extent caused by the Trustee’s negligence or willful misconduct.  The provisions of this Section 7.07 shall survive the termination of this Agreement or the earlier resignation or removal of the Trustee.  The Company shall defend any claim and the Trustee shall cooperate in the defense.  The Trustee may have separate counsel and the Company shall pay the reasonable fees and expenses of such counsel.  The Company need not pay for any settlement made without its consent, which consent shall not be unreasonably withheld or delayed.  This indemnification shall apply to officers, directors, employees, shareholders and agents of the Trustee.

 

The Company need not reimburse any expense or indemnify against any loss liability incurred by the Trustee or by any officer, director, employee, shareholder or agent of the Trustee through negligence or bad faith.

 

To secure the Company’s payment obligations in this Section, the Trustee shall have a lien prior to the Securities of any Series on all money or property held or collected by the Trustee, except that held in trust to pay principal and interest on particular Securities of that Series.

 

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When the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.01(f) or (g) occurs, the expenses and the compensation for the services are intended to constitute expenses of administration under any Bankruptcy Law.

 

Section 7.08                             Replacement of Trustee.

 

A resignation or removal of the Trustee and appointment of a successor Trustee shall become effective only upon the successor Trustee’s acceptance of appointment as provided in this Section.

 

The Trustee may resign with respect to the Securities of one or more Series by so notifying the Company.  The Holders of a majority in principal amount of the Securities of any Series may remove the Trustee with respect to that Series by so notifying the Trustee and the Company.  The Company may remove the Trustee with respect to Securities of one or more Series if:

 

(a)                                 the Trustee fails to comply with Section 7.10;

 

(b)                                 the Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered with respect to the Trustee under any Bankruptcy Law;

 

(c)                                  a Custodian or public officer takes charge of the Trustee or its property; or

 

(d)                                 the Trustee becomes incapable of acting.

 

If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint a successor Trustee.  Within one year after the successor Trustee takes office, the Holders of a majority in principal amount of the then outstanding Securities may appoint a successor Trustee to replace the successor Trustee appointed by the Company.

 

If a successor Trustee with respect to the Securities of any one or more Series does not take office within [  ] days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company or the Holders of at least [  ]% in principal amount of the Securities of the applicable Series may petition any court of competent jurisdiction for the appointment of a successor Trustee.

 

A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company.  Immediately after that, the retiring Trustee shall transfer all property held by it as Trustee to the successor Trustee subject to the lien provided for in Section 7.07, and subject to the payment of any and all amounts then due and owing to the retiring Trustee, the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee with respect to each Series of Securities for which it is acting as Trustee under this Indenture.  A successor Trustee shall mail a notice of its succession to each Securityholder of each such Series.  Notwithstanding replacement of the Trustee pursuant to this Section 7.08, the Company’s obligations under Section 7.07 hereof shall continue for the benefit of the retiring trustee with respect to expenses and liabilities incurred by it prior to such replacement.

 

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Section 7.09                             Successor Trustee by Merger, etc.  If the Trustee consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust business to, another corporation, the successor corporation without any further act shall be the successor Trustee with the same effect as if the successor Trustee had been named as the Trustee herein.

 

Section 7.10                             Eligibility; Disqualification.  This Indenture shall always have a Trustee who satisfies the requirements of TIA Section 310(a)(1), (2) and (5).  The Trustee shall always have a combined capital and surplus of at least $25,000,000 as set forth in its most recent published annual report of condition.  The Trustee shall comply with TIA Section 310(b).

 

Section 7.11                             Preferential Collection of Claims Against Company.  The Trustee is subject to TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311(b).  A Trustee who has resigned or been removed shall be subject to TTA Section 311(a) to the extent indicated.

 

ARTICLE VIII
 SATISFACTION AND DISCHARGE; DEFEASANCE

 

Section 8.01                             Satisfaction and Discharge of Indenture.  This Indenture shall upon Company Order cease to be of further effect (except as hereinafter provided in this Section 8.01), and the Trustee, on the demand of and at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture, when

 

(a)                                 either

 

(i)                                     all Securities theretofore authenticated and delivered (other than Securities that have been destroyed, lost or stolen and that have been replaced or paid) have been delivered to the Trustee for cancellation; or

 

(ii)                                  all such Securities not theretofore delivered to the Trustee for cancellation have become due and payable, or

 

(1)                                 have become due and payable, or

 

(2)                                 will become due and payable at their Stated Maturity within [  ], or

 

(3)                                 are to be called for redemption within [                                              ] under arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company, or

 

(4)                                 are deemed paid and discharged pursuant to Section 8.03, as applicable; and the Company, in the case of (1), (2) or (3) above, has deposited or caused to be deposited with the Trustee as trust funds in trust an amount sufficient for the purpose of paying and discharging the entire indebtedness on such Securities not theretofore delivered to the Trustee for cancellation, for principal and interest to the date of such deposit (in the case of Securities which have become due and payable on or prior

 

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to the date of such deposit) or to the Stated Maturity or redemption date, as the case may be;

 

(b)                                 the Company has paid or caused to be paid all other sums payable hereunder by the Company; and

 

(c)                                  the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each meeting the applicable requirements of Sections 10.04 and 10.05 and each stating that all conditions precedent herein relating to the satisfaction and discharge of this Indenture have been complied with and the Trustee receives written demand from the Company to discharge.

 

Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee under Section 7.07, and, if money shall have been deposited with the Trustee pursuant to clause (a) of this Section, the provisions of Sections 2.04, 2.07, 2.08, 8.01 8.02 and 8.05 shall survive.

 

Section 8.02                             Application of Trust Funds; Indemnification.

 

(a)                                 Subject to the provisions of Section 8.05, all money deposited with the Trustee pursuant to Section 8.01, all money and U.S. Government Obligations or Foreign Government Obligations deposited with the Trustee pursuant to Section 8.03 or 8.04 and all money received by the Trustee in respect of U.S. Government Obligations or Foreign Government Obligations deposited with the Trustee pursuant to Section 8.03 or 8.04, shall be held in trust and applied by it, in accordance with the provisions of the Securities and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the persons entitled thereto, of the principal and interest for whose payment such money has been deposited with or received by the Trustee or to make mandatory sinking fund payments or analogous payments as contemplated by Sections 8.03 or 8.04.

 

(b)                                 The Company shall pay and shall indemnify the Trustee and the Agents against any tax, fee or other charge imposed on or assessed against U.S. Government Obligations or Foreign Government Obligations deposited pursuant to Sections 8.03 or 8.04 or the interest and principal received in respect of such obligations other than any payable by or on behalf of Holders.

 

(c)                                  The Trustee shall, in accordance with the terms of this Indenture, deliver or pay to the Company from time to time, upon Company Request and at the expense of the Company any U.S. Government Obligations or Foreign Government Obligations or money held by it pursuant to this Indenture as provided in Sections 8.03 or 8.04 which, in the opinion of a nationally recognized firm of independent certified public accountants, expressed in a written certification thereof and delivered to the Trustee together with such Company Request, are then in excess of the amount thereof which then would have been required to be deposited for the purpose for which such U.S. Government Obligations or Foreign Government Obligations or money were deposited or received.  This provision shall not authorize the sale by the Trustee of any U.S. Government Obligations or Foreign Government Obligations held under this Indenture.

 

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Section 8.03                             Legal Defeasance of Securities of any Series.  Unless this Section 8.03 is otherwise specified, pursuant to Section 2.02(s), to be inapplicable to Securities of any Series, the Company shall be deemed to have paid and discharged the entire indebtedness on all the outstanding Securities of such Series on the [   ] day after the date of the deposit referred to in subparagraph (d) hereof, and the provisions of this Indenture, as it relates to such outstanding Securities of such Series, shall no longer be in effect (and the Trustee, at the expense of the company, shall, at Company Request, execute proper instruments acknowledging the same), except as to:

 

(a)                                 the rights of Holders of Securities of such Series to receive, from the trust funds described in subparagraph (d) hereof, (i) payment of the principal of and each installment of principal of and interest on the outstanding Securities of such Series on the Stated Maturity of such principal or installment of principal or interest and (ii) the benefit of any mandatory sinking fund payments applicable to the Securities of such Series on the day on which such payments are due and payable in accordance with the terms of this Indenture and the Securities of such Series;

 

(b)                                 the provisions of Sections 2.04, 2.07, 2.08, 2.14, 8.02, 8.03 and 8.05; and

 

(c)                                  the rights, powers, trust and immunities of the Trustee hereunder; provided that, the following conditions shall have been satisfied:

 

(d)                                 the Company shall have deposited or caused to be deposited irrevocably with the Paying Agent as trust funds in trust for the purpose of making the following payments, specifically pledged as security for and dedicated solely to the benefit of the Holders of such Securities in the case of Securities of such Series denominated in Dollars, cash in Dollars (or such other money or currencies as shall then be legal tender in the United States) and/or U.S. Government Obligations, or (ii) in the case of Securities of such Series denominated in a Foreign Currency (other than a composite currency), money and/or Foreign Government Obligations, which through the payment of interest and principal in respect thereof, in accordance with their terms, will provide (and without reinvestment and assuming no tax liability will be imposed on such Paying Agent), not later than [   ] day before the due date of any payment of money, an amount in cash, sufficient, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee and the Paying Agent, to pay and discharge each installment of principal (including mandatory sinking fund or analogous payments) of and interest, if any, on all the Securities of such Series on the dates such installments of interest or principal are due;

 

(e)                                  such deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other agreement or instrument to which the Company is a party or by which it is bound;

 

(f)                                   no Default or Event of Default with respect to the Securities of such Series shall have occurred and be continuing on the date of such deposit or during the period ending on the [    ] day after such date;

 

(g)                                  the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel to the effect that (i) the Company has received from, or there has

 

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been published by, the Internal Revenue Service a ruling, or (ii) since the date of execution of this Indenture, there has been a change in the applicable Federal income tax law, in either case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders of the Securities of such Series will not recognize income, gain or loss for Federal income tax purposes as a result of such deposit, defeasance and discharge and will be subject to Federal income tax on the same amount and in the same manner and at the same times as would have been the case if such deposit, defeasance and discharge had not occurred;

 

(h)                                 the Company shall have delivered to the Trustee an Officers’ Certificate stating that the deposit was not made by the Company with the intent of preferring the Holders of the Securities of such Series over any other creditors of the company or with the intent of defeating, hindering, delaying or defrauding any other creditors of the Company;

 

(i)                                     such deposit shall not result in the trust arising from such deposit constituting an investment company (as defined in the Investment Company Act of 1940, as amended), or such trust shall be qualified under such Act or exempt from regulation thereunder; and

 

(j)                                    the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for relating to the defeasance contemplated by this Section have been complied with.

 

Section 8.04                             Covenant Defeasance.  Unless this Section 8.04 is otherwise specified pursuant to Section 2.02(s) to be inapplicable to Securities of any Series, on and after the [    ] day after the date of the deposit referred to in subparagraph (a) hereof, the Company may omit to comply with any term, provision or condition set forth under Sections 4.02, 4.03, 4.04, 4.05, 4.06, and 5.01 as well as any additional covenants contained in a supplemental indenture hereto for a particular Series of Securities or a Board Resolution or an Officers’ Certificate delivered pursuant to Section 2.02(s) (and the failure to comply with any such covenants shall not constitute a Default or Event of Default under Section 6.01) and the occurrence of any event described in clause (e) of Section 6.01 shall not constitute a Default or Event of Default hereunder, with respect to the Securities of such Series, provided that the following conditions shall have been satisfied:

 

(a)                                 With reference to this Section 8.04, the Company has deposited or caused to be irrevocably deposited (except as provided in Section 8.02(c)) with the Paying Agent as trust funds in trust, specifically pledged as security for, and dedicated solely to, the benefit of the Holders of such Securities (i) in the case of Securities of such Series denominated in Dollars, cash in Dollars (or such other money or currencies as shall then be legal tender in the United States) and/or U.S. Government Obligations, or (ii) in the case of Securities of such Series denominated in a Foreign Currency (other than a composite currency), money and/or Foreign Government Obligations, which through the payment of interest and principal in respect thereof, in accordance with their terms, will provide (and without reinvestment and assuming no tax liability will be imposed on such Paying Agent), not later than [   ] day before the due date of any payment of money, an amount in cash, sufficient, in the opinion of a nationally recognized firm of independent certified public accountants expressed in a written certification thereof delivered to the Paying Agent, to pay principal and interest, if any, on and any mandatory sinking fund in

 

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respect of the Securities of such Series on the dates such installments of interest or principal are due;

 

(b)                                 Such deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other agreement or instrument to which the Company is a party or by which it is bound;

 

(c)                                  No Default or Event of Default with respect to the Securities of such Series shall have occurred and be continuing on the date of such deposit or during the period ending on the [    ] day after such date;

 

(d)                                 the company shall have delivered to the Trustee an Opinion of Counsel confirming that Holders of the Securities of such Series will not recognize income, gain or loss for federal income tax purposes as a result of such deposit and defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such deposit and defeasance had not occurred;

 

(e)                                  the Company shall have delivered to the Trustee an Officers’ Certificate stating the deposit was not made by the Company with the intent of preferring the Holders of the Securities of such Series over any other creditors of the Company or with the intent of defeating, hindering, delaying or defrauding any other creditors of the Company; and

 

(f)                                   The Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the defeasance contemplated by this Section have been complied with.

 

Section 8.05                             Repayment to Company.  The Paying Agent shall pay to the Company upon request any money held by them for the payment of principal and interest that remains unclaimed for two years.  After that, Securityholders entitled to the money must look to the Company for payment as general creditors unless an applicable abandoned property law designates another person and all liability of the Paying Agent with respect to that money shall cease.

 

ARTICLE IX
 AMENDMENTS AND WAIVERS

 

Section 9.01                             Without Consent of Holders.  Subject to Section 9.02 and Section 9.03, the Company and the Trustee may amend or supplement this Indenture or the Securities of one or more Series without the consent of any Securityholder:

 

(a)                                 to cure any ambiguity, defect or inconsistency;

 

(b)                                 to comply with Article V;

 

(c)                                  to provide for uncertificated Securities in addition to or in place of certificated Securities;

 

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(d)                                 to make any change that does not adversely affect the rights of any Securityholder;

 

(e)                                  to provide for the issuance of and establish the form and terms and conditions of Securities of any Series as permitted by this Indenture;

 

(f)                                   to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Securities of one or more Series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee;

 

(g)                                  to comply with requirements of the TIA and any rules promulgated under the TIA; and

 

(h)                                 to add to the covenants of the Company for the equal and ratable benefit of the Holders or to surrender any right, power or option conferred upon the Company.

 

Any amendment or supplement made solely to conform the provisions of this Indenture or the Securities of any Series to the description thereof contained in the final prospectus relating to such Series will be deemed not to adversely affect the rights of any Holder.

 

Section 9.02                             With Consent of Holders.

 

Subject to Section 9.03, the Company and the Trustee may enter into a supplemental indenture with the written consent of the Holders of at least a majority in principal amount of the outstanding Securities of all Series affected by such supplemental indenture, taken together as one class (including consents obtained in connection with a tender offer or exchange offer for the Securities of such Series), for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner the rights of the Securityholders of each such Series.  Except as provided in Section 6.13, the Holders of at least a majority in principal amount of the outstanding Securities of all Series affected by such waiver by notice to the Trustee, taken together as one class (including consents obtained in connection with a tender offer or exchange offer for the Securities of such Series) may waive compliance by the Company with any provision of this Indenture or the Securities with respect to such Series.

 

It shall not be necessary for the consent of the Holders of Securities under this Section 9.02 to approve the particular form of any proposed supplemental indenture or waiver, but it shall be sufficient if such consent approves the substance thereof.  After a supplemental indenture or waiver under this section becomes effective, the Company shall mail to the Holders of Securities affected thereby a notice briefly describing the supplemental indenture or waiver.  Any failure by the Company to mail or publish such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture or waiver.

 

Section 9.03                             Limitations.  Without the consent of each Securityholder affected, an amendment or waiver may not:

 

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(a)                                 change the amount of Securities whose Holders must consent to an amendment, supplement or waiver, except to increase any such amount or to provide that certain provisions of this Indenture cannot be modified, amended or waived without the consent of the Holder of each outstanding Security affected thereby;

 

(b)                                 reduce the amount of interest, or change the interest payment time, on any Security;

 

(c)                                  waive a redemption payment or alter the redemption provisions (other than any alteration that would not materially adversely affect the legal rights of any Holder under this Indenture) or the price at which the Company is required to offer to purchase the Securities;

 

(d)                                 reduce the principal or change the Stated Maturity of any Security or reduce the amount of, or postpone the date fixed for, the payment of any sinking fund or analogous obligation;

 

(e)                                  reduce the principal amount payable of any Security upon Maturity;

 

(f)                                   waive a Default or Event of Default in the payment of the principal of or interest, if any, on any Security (except a rescission of acceleration of the Securities of any Series by the Holders of at least a majority in principal amount of the outstanding Securities of such Series and a waiver of the payment default that resulted from such acceleration);

 

(g)                                  change the place or currency of payment of principal of or interest, if any, on any Security other than that stated in the Security;

 

(h)                                 impair the right of any Holder to receive payment of principal or, or interest on, the Securities of such Holder on or after the due dates therefor;

 

(i)                                     impair the right to institute suit for the enforcement of any payment on, or with respect to, any Security;

 

(j)                                    make any change in Sections 10.15 or 10.16;

 

(k)                                 change the ranking of the Securities; or

 

(l)                                     make any other change which is specified in a Board Resolution, a supplemental indenture hereto or an Officers’ Certificate as a limitation under this Section.

 

For the avoidance of doubt, any amendment or waiver shall always be subject to the consent of the Company.

 

Section 9.04                             Compliance with Trust Indenture Act.  Every amendment to this Indenture or the Securities of one or more Series shall be set forth in a supplemental indenture hereto that complies with the TIA as then in effect.

 

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Section 9.05                             Revocation and Effect of Consents.

 

Until an amendment or waiver becomes effective, a consent to it by a Holder of a Security is a continuing consent by the Holder and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security, even if notation of the consent is not made on any Security.  However, any such Holder or subsequent Holder may revoke the consent as to his Security or portion of a Security if the Trustee receives the notice of revocation before the date the amendment or waiver becomes effective.

 

Any amendment or waiver once effective shall bind every Securityholder of each Series affected by such amendment or waiver unless it is of the type described in any of clauses (a) through (g) of Section 9.03 in that case, the amendment or waiver shall bind each Holder of a Security who has consented to it and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security.

 

Section 9.06                             Notation on or Exchange of Securities.  If an amendment, supplement or waiver changes the terms of a Security, the Trustee may require the Holder of the Security to deliver it to the Trustee and the Trustee may place an appropriate notation on the Security about the changed terms and return it to the Holder.  Alternatively, if the Company or the Trustee so determines, the Company shall issue and the Trustee shall authenticate upon request new Securities of that Series that reflect the changed terms.

 

Section 9.07                             Trustee Protected.  In executing, or accepting the additional trusts created by, any supplemental indenture permitted by this Article or the modifications thereby of the trusts created by this Indenture, the Trustee shall be entitled to receive, and (subject to Section 7.01) shall be fully protected in relying upon, an Opinion of Counsel or an Officer’s Certificate, or both stating that the execution of such supplemental indenture is authorized or permitted by this Indenture.  The Trustee shall sign all supplemental indentures, except that the Trustee need not sign any supplemental indenture that adversely affects its rights, duties or indemnities.

 

Section 9.08                             Effect of Supplemental Indenture.  Upon the execution of any supplemental indenture under this Article, this Indenture shall be modified in accordance therewith, and each such supplemental indenture shall form part of this Indenture for all purposes with respect to the relevant Series; and every Holder of Securities of the relevant Series theretofore or thereafter authenticated and delivered hereunder shall be bound thereby.

 

ARTICLE X
 MISCELLANEOUS

 

Section 10.01                      Trust Indenture Act Controls.  If any provision of this Indenture limits, qualifies, or conflicts with another provision which is required or deemed to be included in this Indenture by the TIA, such required or deemed provision shall control.

 

Section 10.02                      Notices.  Any notice or communication by the Company, the Trustee, the Paying Agent or the Registrar to another is duly given if in writing and delivered in person or mailed by first-class mail:

 

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if to the Company:

 

[                                         ]
 Attn: [                          ]
 Fax: [                             ]

 

if to the Trustee:

 

[                                         ]
 Attn: [                          ]
 Fax: [                             ]

 

if to the Registrar or Paying Agent:

 

[                                         ]
 Attn: [                          ]
 Fax: [                             ]

 

with copy to:

 

[                                         ]
 Attn: [                          ]
 Fax: [                             ]

 

The Company, the Trustee and each Agent by notice to each other may designate additional or different addresses for subsequent notices or communications.

 

Any notice or communication to a Securityholder shall be mailed by first-class mail to his address shown on the register kept by the Registrar.  Failure to mail a notice or communication to a Securityholder of any Series or any defect in it shall not affect its sufficiency with respect to other Securityholders of that or any other Series.

 

If a notice or communication is mailed or published in the manner provided above, within the time prescribed, it is duly given, whether or not the Securityholder receives it.

 

If the company mails a notice or communication to Securityholders, it will mail a copy to the Trustee and each Agent at the same time.

 

Whenever a notice is required to be given by the Company, such notice may be given by the Trustee or Registrar on the Company’s behalf (and the Company will make any notice it is required to give to Holders available on its website).

 

Section 10.03                      Communication by Holders with Other Holders.  Securityholders of any Series may communicate pursuant to TIA Section 312(b) with other Securityholders of that Series or any other Series with respect to their rights under this Indenture or the Securities of that Series or all Series.  The Company, the Trustee, the Registrar and anyone else shall have the protection of TIA Section 312(c).

 

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Section 10.04                      Certificate and Opinion as to Conditions Precedent.  Upon any request or application by the Company to the Trustee to take any action under this Indenture, the Company shall furnish to the Trustee:

 

(a)                                 an Officers’ Certificate stating that, in the opinion of the signers, all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with; and

 

(b)                                 an Opinion of Counsel stating that, in the opinion of counsel, all such conditions precedent (including any covenants, compliance with which constitutes a condition precedent) have been complied with.

 

Section 10.05                      Statements Required in Certificate or Opinion.  Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (other than a certificate provided pursuant to TIA Section 314(a)(4)) shall comply with the provisions of TIA Section 314(e) and shall include:

 

(a)                                 a statement that the person making such certificate or opinion has read such covenant or condition;

 

(b)                                 a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based;

 

(c)                                  a statement that, in the opinion of such person, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and

 

(d)                                 a statement as to whether or not, in the opinion of such person, such condition or covenant has been complied with.

 

provided, however, that with respect to matters of fact an Opinion of Counsel may rely on an Officers’ Certificate or certificates of public officials.

 

Section 10.06                      Record Date for Vote or Consent of Holders.  The Company (or, in the event deposits have been made pursuant to Section 11.02, the Trustee) may set a record date for purposes of determining the identity of Holders entitled to vote or consent to any action by vote or consent authorized or permitted under this Indenture, which record date shall not be more than [  ] days prior to the date of the commencement of solicitation of such action.  Notwithstanding the provisions of Section 9.05, if a record date is fixed, those persons who were Holders of Securities at the close of business on such record date (or their duly designated proxies), and only those persons, shall be entitled to take such action by vote or consent or to revoke any vote or consent previously given, whether or not such persons continue to be Holders after such record date.

 

Section 10.07                      Rules by Trustee and Agents.  The Trustee may make reasonable rules for action by or a meeting of Securityholders of one or more Series.  Any Agent may make reasonable rules and set reasonable requirements for its functions.

 

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Section 10.08                      Legal Holidays.  Unless otherwise provided by Board Resolution, Officers’ Certificate or supplemental indenture for a particular Series, a “Legal Holiday” is any day that is not a Business Day.  If a payment date is a Legal Holiday at a place of payment, payment may be made at that place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening period.

 

Section 10.09                      No Recourse Against Others.  A director, officer, employee or stockholder, as such, of the Company shall not have any liability for any obligations of the Company under the Securities or the Indenture or for any claim based on, in respect of or by reason of such obligations or their creation.  Each Securityholder by accepting a Security waives and releases all such liability.  The waiver and release are part of the consideration for the issue of the Securities.

 

Section 10.10                      Counterparts.  This Indenture may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

 

Section 10.11                      Governing Laws and Submission to Jurisdiction.

 

THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK EXCLUDING ANY RULE OF LAW THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK.

 

The Company agrees that any legal suit, action or proceeding arising out of or based upon this Indenture may be instituted in any federal or state court sitting in New York City, and, to the fullest extent permitted by law, waives any objection which it may now or hereafter have to the laying of venue of any such proceeding, and irrevocably submits to the non-exclusive jurisdiction of such court in any suit, action or proceeding.  The Company, as long as any Securities remain outstanding or the parties hereto have any obligation under this Indenture, shall have an authorized agent in the United States upon whom process may be served in any such legal action or proceeding. Service of process upon such agent and written notice of such service mailed or delivered to it shall to the extent permitted by law be deemed in every respect effective service of process upon it in any such legal action or proceeding and, if it fails to maintain such agent, any such process or summons may be served by mailing a copy thereof by registered mail, or a form of mail substantially equivalent thereto, addressed to it at its address as provided for notices hereunder. The Company hereby appoints [                            ], as its agent for such purposes, and covenants and agrees that service of process in any legal action or proceeding may be made upon it at such office of such agent.

 

Section 10.12                      No Adverse Interpretation of Other Agreements.  This Indenture may not be used to interpret another indenture, loan or debt agreement of the Company or a Subsidiary.  Any such indenture, loan or debt agreement may not be used to interpret this Indenture.

 

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Section 10.13                      Successors.  All agreements of the Company in this Indenture and the Securities shall bind its successor.  All agreements of the Trustee in this Indenture shall bind its successor.

 

Section 10.14                      Severability.  In case any provision in this Indenture or in the Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 10.15                      Table of Contents, Headings, Etc.  The Table of Contents, Cross Reference Table, and headings of the Articles and Sections of this Indenture have been inserted for convenience of reference only, are not to be considered a part hereof, and shall in no way modify or restrict any of the terms or provisions hereof.

 

Section 10.16                      Securities in a Foreign Currency or in ECU.

 

Unless otherwise specified in a Board Resolution, a supplemental indenture hereto or an Officers’ Certificate delivered pursuant to Section 2.02 of this Indenture with respect to a particular Series of Securities, whenever for purposes of this Indenture any action may be taken by the Holders of a specified percentage in aggregate principal amount of Securities of all Series or all Series affected by a particular action at the time outstanding and, at such time, there are outstanding Securities of any Series which are denominated in a coin or currency other than Dollars (including ECUs), then the principal amount of Securities of such Series which shall be deemed to be outstanding for the purpose of taking such action shall be that amount of Dollars that could be obtained for such amount at the Market Exchange Rate at such time.  For purposes of this Section 10.16, “Market Exchange Rate” shall mean the noon Dollar buying rate in New York City for cable transfers of that currency as published by the Federal Reserve Bank of New York; provided, however, in the case of ECUs, Market Exchange Rate shall mean the rate of exchange determined by the Commission of the European Union (or any successor thereto) as published in the Official Journal of the European Union (such publication or any successor publication, the “Journal”).  If such Market Exchange Rate is not available for any reason with respect to such currency, the Trustee shall use, without liability on its part, such quotation of the Federal Reserve Bank of New York or, in the case of ECUs, the rate of exchange as published in the Journal, as of the most recent available date, or quotations or, in the case of ECUs, rates of exchange from one or more major banks in The City of New York or in the country of issue of the currency in question or, in the case of ECUs, in Luxembourg or such other quotations or, in the case of ECUs, rates of exchange as the Trustee, upon consultation with the Company, shall deem appropriate.  The provisions of this paragraph shall apply in determining the equivalent principal amount in respect of Securities of a Series denominated in currency other than Dollars in connection with any action taken by Holders of Securities pursuant to the terms of this Indenture.

 

All decisions and determinations of the Trustee regarding the Market Exchange Rate or any alternative determination provided for in the preceding paragraph shall be in its sole discretion and shall, in the absence of manifest error, be conclusive to the extent permitted by law for all purposes and irrevocably binding upon the Company and all Holders.

 

43

 

Section 10.17                      Judgment Currency.  The Company agrees, to the fullest extent that it may effectively do so under applicable law, that (a) if for the purpose of obtaining judgment in any court it is necessary to convert the sum due in respect of the principal of or interest or other amount on the Securities of any Series (the “Required Currency”) into a currency in which a judgment will be rendered (the “Judgment Currency”), the rate of exchange used shall be the rate at which in accordance with normal banking procedures the Trustee could purchase in The City of New York the Required Currency with the Judgment Currency on the day on which final unappealable judgment is entered, unless such day is not a New York Banking Day, then, the rate of exchange used shall be the rate at which in accordance with normal banking procedures the Trustee could purchase in The City of New York the Required Currency with the Judgment Currency on the New York Banking Day preceding the day on which final unappealable judgment is entered and (b) its obligations under this Indenture to make payments in the Required Currency (i) shall not be discharged or satisfied by any tender, any recovery pursuant to any judgment (whether or not entered in accordance with subsection (a)), in any currency other than the Required Currency, except to the extent that such tender or recovery shall result in the actual receipt, by the payee, of the full amount of the Required Currency expressed to be payable in respect of such payments, (ii) shall be enforceable as an alternative or additional cause of action for the purpose of recovering in the Required Currency the amount, if any, by which such actual receipt shall fall short of the full amount of the Required Currency so expressed to be payable, and (iii) shall not be affected by judgment being obtained for any other sum due under this Indenture.  For purposes of the foregoing, “New York Banking Day” means any day except a Saturday, Sunday or a legal holiday in The City of New York on which banking institutions are authorized or required by law, regulation or executive order to close.

 

Section 10.18                      Compliance with Applicable Anti-Terrorism and Money Laundering Regulations.  In order to comply with the laws, rules, regulations and executive orders in effect from time to time applicable to banking institutions, including those relating to the funding of terrorist activities and money laundering (“Applicable Law”), the Trustee is required to obtain, verify and record certain information relating to individuals and entities which maintain a business relationship with the Trustee.  Accordingly, each of the parties agree to provide to the Trustee, upon its request from time to time such identifying information and documentation as may be available for such party in order to enable the Trustee to comply with the Applicable Law.

 

ARTICLE XI
 SINKING FUNDS

 

Section 11.01                      Applicability of Article.

 

The provisions of this Article shall be applicable to any sinking fund for the retirement of the Securities of a Series, except as otherwise permitted or required by any form of Security of such Series issued pursuant to this Indenture.

 

The minimum amount of any sinking fund payment provided for by the terms of the Securities of any Series is herein referred to as a “mandatory sinking fund payment” and any other amount provided for by the terms of Securities of such Series is herein referred to as an “optional sinking fund payment.”  If provided for by the terms of Securities of any Series, the

 

44

 

cash amount of any sinking fund payment may be subject to reduction as provided in Section 11.02.  Each sinking fund payment shall be applied to the redemption of Securities of any Series as provided for by the terms of the securities of such Series.

 

Section 11.02                      Satisfaction of Sinking Fund Payments with Securities.  The Company may, in satisfaction of all or any part of any sinking fund payment with respect to the Securities of any Series to be made pursuant to the terms of such Securities (1) deliver outstanding Securities of such Series to which such sinking fund payment is applicable (other than any of such Securities previously called for mandatory sinking fund redemption) and (2) apply as credit Securities of such Series to which such sinking fund payment is applicable and which have been redeemed either at the election of the Company pursuant to the terms of such Series of Securities (except pursuant to any mandatory sinking fund) or through the application of permitted optional sinking fund payments or other optional redemptions pursuant to the terms of such Securities, provided that such Securities have not been previously so credited.  Such Securities shall be received by the Registrar, together with an Officers’ Certificate with respect thereto, not later than [  ] days prior to the date on which the Registrar begins the process of selecting Securities for redemption, and shall be credited for such purpose by the Registrar at the price specified in such Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly.  If as a result of the delivery or credit of Securities in lieu of cash payments pursuant to this Section 11.02, the principal amount of Securities of such Series to be redeemed in order to exhaust the aforesaid cash payment shall be less than $[], the Registrar need not call Securities of such Series for redemption, except upon receipt of a Company Order that such action be taken, and such cash payment shall be held by the Paying Agent and applied to the next succeeding sinking fund payment, provided, however, that the Paying Agent shall from time to time upon receipt of a Company Order pay over and deliver to the Company any cash payment so being held by the Paying Agent upon delivery by the Company to the Registrar of Securities of that Series purchased by the Company having an unpaid principal amount equal to the cash payment required to be released to the Company.

 

Section 11.03                      Redemption of Securities for Sinking Fund.  Not less than [  ] days (unless otherwise indicated in the Board Resolution, supplemental indenture hereto or Officers’ Certificate in respect of a particular Series of Securities) prior to each sinking fund payment date for any Series of Securities, the Company will deliver to the Trustee and the Paying Agent an Officers’ Certificate specifying the amount of the next ensuing mandatory sinking fund payment for that Series pursuant to the terms of that Series, the portion thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which is to be satisfied by delivering and crediting of Securities of that Series pursuant to Section 11.02, and the optional amount, if any, to be added in cash to the next ensuing mandatory sinking fund payment, and the Company shall thereupon be obligated to pay the amount therein specified.  Not less than [  ] days (unless otherwise indicated in the Board Resolution, Officers’ Certificate or supplemental indenture in respect of a particular Series of Securities) before each such sinking fund payment date the Trustee shall select the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 3.02 and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 3.03.  Such notice having been duly given, the redemption of such Securities shall stated in Sections 3.04, 3.05 and 3.06.

 

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

 

	
 
    	
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as   Registrar and Paying Agent
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
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47EX-10.4

 Exhibit 10.4 

[*] Text Omitted and Filed Separately with the Securities and Exchange Commission Confidential Treatment 

Requested Under 17 C.F.R. Sections 200.80(b)(4) and 230.406 

Execution Copy 
 CO-BRAND CREDIT CARD PROGRAM AGREEMENT 
 BETWEEN 

COMENITY CAPITAL BANK 

AND 
 BJ’S
WHOLESALE CLUB, INC. 
 DATED AS OF JUNE 5, 2014 
  

 [*] Text Omitted and Filed Separately with the Securities and Exchange Commission Confidential
Treatment 
 Requested Under 17 C.F.R. Sections 200.80(b)(4) and 230.406 

 
 TABLE OF CONTENTS 

 

							
	SECTION 1. PROGRAM SUMMARY AND DEFINITIONS	  	 	1	 
			
	 1.1
	 	Program Summary	  	 	1	 
	 1.2
	 	Definitions and Other Obligations	  	 	2	 
		
	SECTION 2. ESTABLISHMENT OF THE PROGRAM	  	 	2	 
			
	 2.1
	 	Establishment of the Program; Applications for Credit	  	 	2	 
	 2.2
	 	Internet Features	  	 	4	 
	 2.3
	 	Operating Procedures	  	 	4	 
	 2.4
	 	Program Documents (Forms and Collateral)	  	 	5	 
	 2.5
	 	Marketing and Promotion of Program	  	 	6	 
	 2.6
	 	Ownership of Accounts and Information	  	 	6	 
	 2.7
	 	Protection Programs and Enhancement Marketing Services	  	 	7	 
	 2.8
	 	Ownership and Licensing of the Party’s Marks	  	 	7	 
	 2.9
	 	Cardholder Rewards Program	  	 	8	 
		
	SECTION 3. OPERATION OF THE PROGRAM	  	 	9	 
			
	 3.1
	 	Processing Purchases	  	 	9	 
	 3.2
	 	Ownership of Accounts; Fees; Accounting	  	 	9	 
	 3.3
	 	Bank Mailings; Insertion of Company’s Promotional Materials	  	 	9	 
	 3.4
	 	Payments	  	 	10	 
	 3.5
	 	Non-Competition	  	 	10	 
	 3.6
	 	Reports	  	 	11	 
	 3.7
	 	New Businesses and Existing Credit Program Conversions	  	 	11	 
	 3.8
	 	Direct Settlement Transactions	  			
	 3.9
	 	Interchange Refund	  	 	11	 
	 3.10
	 	Right of Offset	  	 	11	 
		
	SECTION 4. REPRESENTATIONS AND WARRANTIES	  	 	12	 
			
	 4.1
	 	Organization, Power and Qualification	  	 	12	 
	 4.2
	 	Authorization, Validity and Non-Contravention	  	 	12	 
	 4.3
	 	Accuracy of Information	  	 	12	 
	 4.4
	 	Compliance with Law	  	 	12	 
	 4.5
	 	Intellectual Property Rights	  	 	13	 
	 4.6
	 	Marks	  	 	13	 
		
	SECTION 5. COVENANTS	  	 	13	 
			
	 5.1
	 	Notices of Changes	  	 	13	 
	 5.2
	 	Financial Statements	  	 	14	 
	 5.3
	 	Access Rights	  	 	14	 
	 5.4
	 	Each Party’s Business	  	 	14	 

  
 i 

 [*] Text Omitted and Filed Separately with the Securities and Exchange Commission Confidential
Treatment 
 Requested Under 17 C.F.R. Sections 200.80(b)(4) and 230.406 

 

							
	 5.5
	 	Insurance	  	 	14	 
	 5.6
	 	Sales Information	  	 	14	 
	 5.7
	 	Business Continuation/Disaster Recovery Plan	  	 	14	 
	 5.8
	 	Compliance with Agreement and Operating Procedures	  			
		
	SECTION 6. INDEMNIFICATION	  	 	14	 
			
	 6.1
	 	Indemnification Obligations	  	 	14	 
	 6.2
	 	LIMITATION ON LIABILITY	  	 	15	 
	 6.3
	 	NO WARRANTIES	  	 	15	 
	 6.4
	 	Notification of Indemnification; Conduct of Defense	  	 	15	 
		
	SECTION 7. TERM, EXPIRATION AND TERMINATION	  	 	16	 
			
	 7.1
	 	Term and Expiration	  	 	16	 
	 7.2
	 	Termination with Cause by Bank; Bank Termination Events	  	 	16	 
	 7.3
	 	Termination with Cause by Company; Company Termination Events	  	 	16	 
	 7.4
	 	Purchase of Accounts	  	 	17	 
		
	SECTION 8. MISCELLANEOUS	  	 	17	 
			
	 8.1
	 	Entire Agreement; Amendment; No Waiver; Severability; Counterparts;	  	 	17	 
		 	Captions and Cross References; Mutual Drafting	  			
	 8.2
	 	Coordination of Public Statements	  	 	18	 
	 8.3
	 	Successors and Assigns	  	 	18	 
	 8.4
	 	Notices	  	 	18	 
	 8.5
	 	GOVERNING LAW/WAIVER OF JURY TRIAL	  	 	18	 
	 8.6
	 	Force Majeure	  	 	19	 
	 8.7
	 	Survival	  	 	19	 
	 8.8
	 	Relationship of Parties; Third Parties; Independent Contractor	  	 	19	 
	 8.9
	 	Confidentiality and Security Control	  	 	19	 
	 8.10
	 	Taxes	  	 	20	 
	 8.11
	 	Brokers	  	 	20	 

 SCHEDULES 
  

			
	 1.2
	  	 Definitions and Other Obligations

	 2.1(h)
	  	 Service Standards

	 2.1(k)
	  	 MasterCard Reporting to be Provided by Bank

	 2.5(a)
	  	 Marketing Promotions

	 2.5(b)
	  	 Marketing Funds

	 2.5(c)
	  	 Prospect Marketing

	 2.6
	  	 Monthly Master File Information

	 2.7
	  	 Protection Programs and Enhancement Marketing Services

	 2.9
	  	 Cardholder Rewards Program

	 3.2(b)
	  	 Summary of Rates and Fees

	 3.6
	  	 Bank Reports

	 7.1
	  	 Term and Expiration

  
 ii 

 [*] Text Omitted and Filed Separately with the Securities and Exchange Commission Confidential
Treatment 
 Requested Under 17 C.F.R. Sections 200.80(b)(4) and 230.406 

 

			
	 7.3(l)
	  	 Additional Company Termination Events

	 7.4
	  	 Purchase of Accounts

	 8.9
	  	 Data Security

	 8.11
	  	 Brokers

  

  
 iii 

 [*] Text Omitted and Filed Separately with the Securities and Exchange Commission Confidential
Treatment 
 Requested Under 17 C.F.R. Sections 200.80(b)(4) and 230.406 

 
 CO-BRAND CREDIT CARD
PROGRAM AGREEMENT 
 THIS CO-BRAND CREDIT CARD PROGRAM AGREEMENT (together with any
schedules, exhibits, addenda, and future amendments and supplements hereto, this “Agreement”) is made by and between BJ’S WHOLESALE CLUB, INC. with its principal office at 25 Research Drive, Westborough, MA 01581 (hereinafter referred
to as “Company”), and COMENITY CAPITAL BANK, with its principal office at 2795 E. Cottonwood Parkway, Suite #100, Salt Lake City, UT 84121 (hereinafter referred to as “Bank”). This Agreement shall be effective (the
“Effective Date”) on the later of: (i) the last date of execution of this Agreement by Bank and Company, or (ii) the date of execution and delivery of the purchase and sale agreement by and between Bank and Barclays Bank Delaware
(“Barclays”) pursuant to which Bank will purchase from Barclays certain program assets presently governed by the Co-Branded Credit Card Agreement between Barclays and Company dated May 10, 2007.

 WITNESSETH: 

WHEREAS, Company owns and operates a chain of wholesale stores known as “BJ’s Wholesale Club” which serve individuals
that become Members of Company; 
 WHEREAS, Company has requested Bank to extend credit to qualifying Members in the form of Credit
Cards (as such capitalized terms are defined below) and to manage a co-branded credit card program; and 

WHEREAS, Bank is a member of various Card Networks and is an issuer of general purpose credit cards throughout the United States; and

 WHEREAS, Bank shall own and service all the Accounts as more fully set forth herein; and 

NOW THEREFORE, in consideration of the terms and conditions hereof, and for other good and valuable consideration, the receipt of which
is hereby mutually acknowledged by the parties, Company and Bank agree as follows. 
 SECTION 1 PROGRAM SUMMARY AND DEFINITIONS

 1.1 Program Summary. For the benefit of both parties hereto, Company and Bank have agreed to collaboratively
launch, promote and maintain the Program, to be offered to Members, prospective Members, and employees of the Company as of the Program Commencement Date. The parties’ intent is that they will work in collaboration (emphasizing communication
and good faith efforts) to maximize the value of the Program for their mutual benefit. To that end, the parties agree that, although the provisions of this Section 1.1 do not supersede either party’s rights and obligations as set forth
elsewhere in this Agreement, it is the intent of each party that its respective performance under this Agreement shall be guided by the following objectives: 
  

	 	•	 	Support an orderly and successful transition from the Company’s previous issuer, Barclaycard 

  

	 	•	 	Retain existing Cardholders (in connection with the conversion of the Existing Accounts) 

  

	 	•	 	Generate new Accounts 

  

	 	•	 	Increase Company’s sales 

  

 [*] Text Omitted and Filed Separately with the Securities and Exchange Commission Confidential
Treatment 
 Requested Under 17 C.F.R. Sections 200.80(b)(4) and 230.406 

 
  

	 	•	 	Develop and cultivate Member relationships and build loyalty 

  

	 	•	 	Increase Credit Card penetration, Net Sales, and improve overall profitability for Company 

 In order to
achieve the Program objectives, cooperation and communication between the parties is essential. Accordingly, the parties shall establish a Joint Management Committee as set forth in Section 2.1(i). Through such Joint Management Committee, the
parties shall work together in good faith to review, discuss and address any particular concerns that either such party has with regard to the general performance of the overall portfolio, as well as any matters which either party believes to be
materiel with respect to the ongoing administration of the Program. 
 1.2 Definitions and Other Obligations. See Schedule
1.2. 
 SECTION 2 ESTABLISHMENT OF THE PROGRAM 

2.1 Establishment of the Program; Applications for Credit. 

[*] 
 (b) Company and Bank shall
use reasonable efforts to have the Program Commencement Date occur on or about October 10, 2014 or such other date as the parties mutually agree upon in writing. 

(c) Applicants who wish to apply for an Account under the Program must submit a completed application on a form or in an electronic format
approved by Bank, and Bank shall grant or deny the request for credit based upon Bank’s credit criteria. The parties agree, where possible, to utilize certain Company membership data to help with credit decisioning, subject to the terms of this
Agreement. All internet applications for an Account shall be hosted by Company. In addition, the parties shall cooperate in good faith to implement a mobile credit card application solution as soon as practicable. The decision to extend credit to
any Applicant under the Program shall be solely Bank’s decision, but Bank agrees to uniformly apply its credit criteria to all Applicants. 

(d) When facilitating any Application Procedure, Company shall follow all applicable Operating Procedures and maintain the confidentiality of
all Applicant data pursuant to Section 8.9. Depending on the Application Procedure utilized, the Account application shall be submitted to Bank by the Applicant or submitted by Company on behalf of the Applicant, in each case, in accordance
with the Operating Procedures. With the exception of Take-One Account applications and Bank hosted Account applications, Company will supply a validated Member identification number for any existing Member
Applicant in the application to Bank. For Bank hosted Account applications and Take-One applications, Company will provide Applicants’ Member identification numbers to Bank via access to Company’s
membership database or upon request. Individuals may not apply for an Account unless such individual is a Member or becomes a Member in conjunction with applying for an Account. When Bank capabilities permit, all Program marketing and/or Account
solicitation materials for the Program shall be coded by Bank, or in the case where Company performs such marketing and/or Account solicitation, by Company in accordance with Bank’s Instructions, for the purpose of tracking the source of
Account origination. Bank shall not be responsible for accurately tracking the source of Account origination for those marketing and/or solicitation materials not coded by Company in accordance with Bank’s instructions. Notwithstanding the
foregoing, in the event there is no coding or other method to enable the tracking of an Account, it shall be assumed that Company sourced the particular Account. 

  
 2 

 [*] Text Omitted and Filed Separately with the Securities and Exchange Commission Confidential
Treatment 
 Requested Under 17 C.F.R. Sections 200.80(b)(4) and 230.406 

 
 (e) Subject to Schedule 2.5(a), the Initial Application Procedures for
the Program shall be Instant Credit, Quick Credit, Real-time Prescreen, Batch Prescreen, Take-Ones, and web/internet. Subject to Schedule 2.5(a), the initial Application Procedures for the Small Business Program shall be Instant Credit, and
Take-Ones. At any time during the Term the parties may mutually agree to utilize Bank’s other Application Procedures. 
 (f) Qualified
Applicants, who are also Members, desiring to use the Program shall be granted an Account and issued a Credit Card by Bank with a credit line in an amount to be determined by Bank in its discretion for each individual Applicant. Bank shall determine
the terms and conditions of the Account to be contained in a Credit Card Agreement. For clarity, the Rewards Program Terms shall be determined by Company consistent with the terms and conditions of this Agreement that relate to the Rewards Program.

 (g) (i) At Bank’s expense, Bank shall perform all functions necessary to administer and service the Accounts, including but not
limited to: converting the Existing Accounts to the Program, establishing and administering the underwriting and credit decisions for the Program; making all necessary credit investigations; notifying Applicants in writing of acceptance or rejection
of credit under the Program; issuing Credit Cards, preparing and mailing billing statements; making collections; handling Cardholder inquiries; and processing payments. Bank shall provide for the Program, [*] client sales representatives to manage
the Program. As of the Effective Date, the Bank lead Program representative is [*], an employee of Bank’s servicer. [*] shall continue to be the [*] for so long as he remains in his current role as a [*]. If the [*] changes, Bank will
reasonably consult with Company as to what person will be designated as the replacement Bank lead Program representative. To “reasonably consult” includes, but is not limited to, providing Company the opportunity to meet, speak with, and
provide feedback on the person. In addition, Bank shall reasonably consider any concerns expressed by Company regarding the performance of any Bank lead Program representative, including a request that he/she be replaced. 

(ii) In addition, Bank shall provide [*] field sales representatives to support the Program. During the first Program Year and at least [*] or
as otherwise agreed to by the parties, the field sales representatives will provide Company with in-store training for Company managers with respect to the in-Club
application process and the Program in general, including how the Rewards Program relates to the Program, to enable the Company’s managers to train employees. On an ongoing basis during the Term, the [*] field sales representatives shall [*]
for employees in connection with grand openings of new Company stores. Company shall inform Bank within a [*] time period prior to any such openings of the need for additional on-premises assistance. Lastly, a
representative shall be available to Company employees for Program inquiries, Monday – Friday from 9:00 AM EST to 5:00 PM EST, and a representative shall be available to Members for Account-level inquiries, and, with Member consent given to
Bank, to Company employees for Application-related or Account-level inquiries, Monday – Sunday from 8:00 AM EST to 1:00 AM EST. Company store employees will also be able to access service through the IVR unit on a 24x7 basis, 365 days a year.
All Bank personnel assigned to the Program shall receive comprehensive training with respect to the Program. 
 (h) Bank shall perform in
accordance with the Service Standards set forth in Schedule 2.1(h). Within fifteen (15) days of the close of the previous month, Bank will provide Company with a monthly summary of Bank’s performance regarding the Service Standards. 

  
 3 

 [*] Text Omitted and Filed Separately with the Securities and Exchange Commission Confidential
Treatment 
 Requested Under 17 C.F.R. Sections 200.80(b)(4) and 230.406 

 
 (i) The parties shall establish a Joint Management Committee to review
and discuss among other things, (i) development of the annual marketing plan including acquisition goals for both patties as described below in Section 2.5, general marketing efforts and Marketing Fund usage, all consistent with the
requirements of Schedule 2.5(a) and Schedule 2.5(b), respectively; (ii) the general and financial performance and strategic operation of the Program; (iii) regulatory issues and industry competitiveness; (iv) ongoing product
development/ modification and (v) any matters which either party believes to be material with respect to the ongoing administration and/or operation of the Program. The Joint Management Committee shall be comprised of an equal number of Bank
and Company members, and include at least one member of management with decision-making authority for each party with regard to the Program. The Joint Management Committee shall meet no less than quarterly, unless otherwise agreed to by the parties.
Actions taken by the Joint Management Committee shall be by mutual agreement, and in the event of impasse, the decision shall be referred to a key executive for each party for their review and resolution. In the event such key executives are unable
to resolve the matter, the decision shall be referred to the President of the Bank (or designee, such as the President of Retail Services) and the President of the Company for review and resolution. 

(j) Subject to requirements of Applicable Law, Company may conduct call monitoring of calls with Cardholders at Bank’s call center with at
least five (5) days advance notice. The results thereof shall be reviewed with the Joint Management Committee semi-annually. 

(k) MasterCard International, Inc. (“MasterCard”) shall be the initial selected Card Network for all Accounts issued under the
Program during the Term (including all Existing Accounts). [*]. Company shall have the right to designate a different card network for all Accounts issued under the Program, so long as Bank has an existing relationship with the designated card
network. In such event, Bank shall provide such card network with comparable information that it is required to provide MasterCard hereunder, although the parties acknowledge that the format and timing of such information may differ. [*]. 

2.2 Internet Features. Bank will develop as of the Program Commencement Date, and maintain [*], an Account Center website for the
Program, which Account Center website shall include, among other things, Rewards Program information, including Rewards Dollars earned, total Rewards Dollars balance and, [*], Rewards Dollars redeemed, which includes Rewards Dollars certificates
issued. The Parties acknowledge that Company shall be responsible for providing Bank with the reports as to Rewards Dollars redeemed, and accordingly, [*]. In addition, Account Center shall include certain Cardholder services and Account access.
Account Center will be accessible to Company’s Cardholders at any time, except for site standard maintenance. Company will develop and maintain on its own website, [*], a link to Account Center. In the event Bank changes or otherwise modifies
the website address for its designated website, Company will either update or modify its link thereto, as directed by Bank. Each Party agrees that, in connection with the link, it will only use the other’s name, or any logo, statements or any
other information that is related to the other, as directed by the other, and as approved in advance and in writing by the other. Bank shall provide [*] capabilities to Company when such capabilities are made available to Bank’s clients
generally. 
 2.3 Operating Procedures. Bank shall observe and comply with all Applicable Laws in connection with its
offer, approval and administration of Accounts. Prior to the Effective Date, Company may review Bank’s existing Operating Procedures. Company shall observe and comply with the Operating Procedures and such other reasonable procedures that

  
 4 

 [*] Text Omitted and Filed Separately with the Securities and Exchange Commission Confidential
Treatment 
 Requested Under 17 C.F.R. Sections 200.80(b)(4) and 230.406 

 
 apply to Company’s responsibilities under the Program, as Bank may prescribe on not
less than [*] to Company or otherwise required by Applicable Law or applicable Card Network Rules. The Operating Procedures may be amended or modified by Bank from time to time in its reasonable discretion; provided, however, unless such changes are
required by Applicable Law, a copy of any such amendment or modification shall be provided to Company [*] before its effective date, and for those changes required by Applicable Law or Card Network Rules, if applicable, notice shall be given [*].
Bank will use [*] not to modify the Operating Procedures in such a manner that would adversely impact the Program unless such modification is required by Applicable Law. In addition, in the event of a conflict between the Operating Procedures and
the Program Agreement, the Program Agreement shall govern. 
 2.4 Program Documents (Forms and Collateral). (a) Forms –
General. Subject to (b) and (d) below, Bank shall design, determine the terms and conditions (other than those related to the Rewards Program) of, and generate and deliver to Cardholders, at its expense, the [*], and other documents and
forms to be used under the Program which (i) relate to the Program, (ii) relate to Bank’s and/or the Cardholder’s obligations, (iii) are used by Bank in maintaining and servicing the Accounts; or (iv) are required by
Applicable Law (collectively, “Forms”). The Forms will follow the same general format that the Bank uses for its other Bank clients. Forms shall be in the English language only and there shall be only one design for each Form. [*].
Furthermore, to the extent that an application for an Account includes, or Company provides Bank with access to its membership database or otherwise timely provides to Bank, the Member identification number, [*]. 

(b) Forms – Conditions. The provisions of subsection 2.4(a) above are subject to the following conditions. Subject to
Section 3.3, Applicable Law, and Section 2.8, Bank and Company shall jointly design [*]. Bank will submit all Forms (except letters to Cardholders) utilizing or referencing a Company Mark to Company for its review and written approval
(including email approval) of use of Company Marks, which approval shall not be unreasonably withheld, and Company shall provide a response [*], Pursuant to this review and approval process, Bank will make (or have made) all changes that Company
reasonably requests in exercising its rights under this Agreement. Notwithstanding the foregoing, administrative legal notices, collection letters, delinquency notices and other adverse action communications (“Adverse Communication
Letters”) shall not bear Company Marks other than Company name and then such name may only be used to identify the Credit Card as a Company Credit Card. Bank shall provide Company with representative samples of the form of Adverse Communication
Letters for Company’s reference. 
 (c) Collateral. Subject to Section 3.3, Applicable Law, and Section 2.8, Company
may design and produce promotional material, direct mail pieces, catalog, newspaper, radio and electronic advertisements, and other collateral documents (collectively, “Collateral”) which reference the Program and which may utilize or
feature Bank Marks. Company shall submit all Collateral to Bank for its review and written approval (including email approval) of the Program disclosures, as well as references to the Program and use of Bank Marks, which approval shall not be
unreasonably withheld and Bank shall provide a response [*]. Pursuant to this review and approval process, Company will make (or have made) all changes that Bank requests to satisfy Applicable Law and/or in exercising its rights under this
Agreement. Bank may design and produce collateral in addition to Forms that may utilize or feature Company Marks. Bank shall submit all such collateral to Company for its review and written approval (including email approval) of references to the
Program as well as use of Company Marks, which approval shall not be unreasonably withheld and Company shall provide a response [*]. Pursuant to this review and approval process for other collateral, Bank will make (or have made) all changes that
Company requests in exercising its rights under this Section 2.4(c). 

  
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 (d) Bank’s Costs. Subject to subsection (e) below, Bank
will determine which and how many of the following to provide based on the Annual Marketing Plan requirements, [*]. First, Bank will provide to Company at its central locations not to [*], for distribution to Members and Cardholders, marketing
purposes, and mass mailings, as applicable: (i) adequate copies of Credit Card Agreements and applications; and (ii) the template of any appropriate Forms. Second, Bank shall be responsible to provide for the Program, an appropriate number
of (or copies of, as applicable) Credit Card Agreements, applications, Credit Cards, billing statements, and card mailers. 
 (e) Bank
Issuance and Re-Issuances. [*]. Bank will use [*] to provide Extra Value Cardholders with an Extra Value Credit Card upon Program Commencement so long as such Cardholders are adequately identified in the
conversion files Bank receives from Barclays Bank Delaware. [*]. 
 (f) Company’s Costs. (i) Company Re-issuances. [*]. As a point of clarification, none of the following constitutes a Company Re-issuance: Bank’s replacement (on an Account-by-Account basis) of lost or stolen Credit Cards, expired Credit Cards, or Bank’s response to some other Cardholder request. 

(ii) Variations from Bank’s Standards. [*] 

(iii) Miscellaneous Company Expanses. [*] 

2.5 Marketing and Promotion of Program. (a) Throughout the Term of this Agreement, Company and Bank shall each actively and
consistently market, promote, participate in and support the Program, including without limitation those marketing promotions set forth in Schedule 2.5(a) and such other methods mutually agreed upon by the Joint Management Committee. Company and
Bank will jointly agree upon programs to market the Program, both initially and on a continuing basis, including without limitation, seasonal promotions and annual marketing plans which shall detail the marketing efforts of both parties, as well as
lifecycle marketing efforts to be conducted by Bank and/or Company (each an “Annual Marketing Plan”). The parties shall fulfill their individual and joint marketing related obligations as provided for in this Agreement and Schedule 2.5(a).
The parties shall develop a mutually agreed upon Annual Marketing Plan for each Program Year [*] of each Program Year, which Annual Marketing Plan shall include the timing, frequency, and method of each marketing initiative described therein. Bank
may conduct marketing initiatives, such as direct mail campaigns, [*], coordinating such efforts with the Annual Marketing Plan and with approval or the Joint Management Committee. 

[*] 
 (c) See Schedule 2.5(c).

 2.6 Ownership of Accounts and Information. (a) Company and Bank recognize that Cardholders are Members, and that each party
has certain ownership rights in information relating to such individuals in their respective roles as Cardholders and Members. [*] The parties acknowledge that the same or similar information may be contained in the Bank Cardholder Information
(defined below) and the Company Member Information (defined below); such common information being referred to herein as “Common Information.” Each such pool of data shall therefore be considered separate information subject to the
specific provisions applicable to that data hereunder. 

  
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 (b) [*]; such information and Company’s Common Information shall be
referred to collectively as “Company Member Information”. [*]. Bank shall use the most current Company Member List provided by Company for any marketing efforts conducted by Bank. [*]. 

(c) (i) [*]. Additionally, [*]. Such information and Bank’s Common Information shall be referred to collectively as “Bank Cardholder
Information.” [*], except as permitted by this subsection or Section 8.9, or to use Bank Cardholder Information (including Applicant Information) for any purpose other than the operation and administration of the Program, and for
Bank’s portfolio-wide analysis. Following the Term of this Agreement, [*]. Furthermore, following the Term of this Agreement, [*]. 

(ii) During the Term of this Agreement (i) [*], in each case, provided that such contractor, subcontractor, or vendor [*], and so long as such
disclosure is in furtherance of the Program and in compliance with Applicable Law. Moreover, the Joint Management Committee will discuss the mail-houses utilized by Bank for the Program. 

(iii) Bank shall provide to Company, [*]. To the extent any change by Bank precludes the delivery of any information on Schedule 2.6 such that
Company is unable to execute certain of its obligations hereunder, Company shall be excused from such obligations for so long as such information is not made available by Bank. [*]. 

2.7 Protection Programs and Enhancement Marketing Services. [*] (collectively referred to herein as “Protection
Programs”) as set forth in Schedule 2.7. Bank will have the right but not the obligation to make available to Cardholders, through solicitations made in connection with the Program (but not Account Solicitations) [*] as agreed to by the Joint
Management Committee. The fees for Protection Programs and/or Enhancement Marketing Services will be charged to the applicable Cardholder’s Account. [*]. 

2.8 Ownership and Licensing of the Party’s Marks. (a) Subject to the other provisions of this Agreement,
Company hereby grants to Bank [*] (except as to branded credit card accounts per Section 3.5), [*] to use the Company Marks solely in satisfaction of its duties, rights and obligations described in this Agreement, including without limitation,
using same in any and all promotional materials, Account documentation, advertising, websites, marketing, and solicitations related to the Program, as well as Bank’s and its Affiliates’ product marketing and promotional materials and
literature in written and electronic form, as well as their business client lists. Bank shall use the trademark designations “®” or “TM” or such other designation as
Company may specify or approve in connection with the Company Marks on the Credit Cards, Account documentation and promotional materials. [*]. 

(b) Anything in this Agreement to the contrary notwithstanding, Company shall retain all rights in and to Company Marks pertaining to such
Accounts, and all goodwill associated with the use of Company Marks (whether under this Agreement or otherwise) shall inure to the benefit of Company. Company shall have the right, in its sole and absolute discretion, to prohibit the use of any
Company Marks in any Forms, advertisements or other materials or references proposed to be used by Bank which Company in its reasonable business judgment deems objectionable or improper. Bank shall cease all use of Company Marks upon the termination
of this Agreement for any reason pursuant to Section 2.8(c), below. 

  
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 (c) Except as otherwise specifically provided in this
subsection (c), Bank shall cease all use of Company Marks and the Company name upon termination of this Agreement. Bank may: 

(i) [*], if, to the extent, and for as long as such use is required for the performance of Bank’s obligations under
Schedule 7.4 (if any); 
 (ii) if Bank retains ownership of the Portfolio pursuant to Schedule 7.4, [*]; and continue to use
the Company name (without any Company logo or design element) for purposes of avoiding consumer confusion during the transition period provided that all use to the extent permitted under this clause shall cease in accordance with the provisions set
forth in Schedule 7.4. 
 (iii) continue to use the Company name (without any Company logo or design element) in accordance
with Schedule 7.4 if and only to the extent necessary in connection with administration of the Accounts that are excluded from a Portfolio purchase under Schedule 7.4 or that Bank retains pursuant to Schedule 7.4 (including the collection of amounts
owed on the Accounts by referencing that the Account or Purchase balance due is related to the Credit Card and (if applicable) Company’s goods and/or services); and 

(iv) continue to use the Company name (without any Company logo or design element) if and to the extent necessary for the
performance of Bank’s obligations under Applicable Law as issuer of the Credit Cards. 
 (d) Company recognizes that Bank is the sole
owner of the Bank Marks, that Company has no rights of ownership or license therein, and that Company is not entitled to (and shall not) use the Bank Marks other than as explicitly and specifically provided in this Agreement. As a point of
clarification, Bank has and retains all rights in and to Bank Marks and the use thereof, and all goodwill associated with the use of Bank Marks (whether under this Agreement or otherwise) shall inure to the benefit of Bank. Bank shall have the
right, [*], to prohibit the use of any Bank Marks in any Program Documents, advertisements, or other materials or references proposed to be used by Company which Bank in its reasonable business judgment deems objectionable or improper. [*]. 

2.9 Cardholder Rewards Program. 

(a) Company will own, implement and operate the Rewards Program for Cardholders throughout the Term and thereafter as set forth in Schedule
2.9. [*]. 
 (b) Bank will provide Company with certain system functionality and recordkeeping in support of the Rewards Program, which
recordkeeping shall be [*] contemplated under this Section 2.9(b) or where a rewards certificate is part of the billing statement. Bank shall reasonably cooperate with Company’s efforts to create, [*]. In addition, [*]. The system
functionality to be provided by Bank as described herein shall be [*] to Company provided that Company’s Rewards Program: (x) is compatible with Bank’s existing or future functionality offered to other Bank clients, and (y) [*].
Otherwise, such functionality, if available, shall be provided pursuant to terms (including fees to be paid to Bank) mutually agreed to by the parties. 

  
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 (c) Notwithstanding anything in this Section 2.9 to the contrary,
Company and Bank agree that the Rewards Program will be subject to the terms set forth in Schedule 2.9. 
 SECTION 3 OPERATION OF THE
PROGRAM 
 3.1 Processing Purchases. 

(a) Company shall honor any Credit Card properly issued and currently authorized by Bank pursuant to the Program. The applicable Card Network
Rules shall govern settlement, disputes and chargebacks for all Purchases processed through a Card Network. Notwithstanding the foregoing, prior to the Program Commencement Date, the parties may agree in writing to Direct Settlement of Company
Purchases made on Accounts under the Program. If the parties agree to such Direct Settlement, then the terms of Section 3.8 below shall apply to all Direct Settlement transactions, if the parties do not agree to Direct Settlement of Company
Purchases prior to the Program Commencement Date, then as of the Program Commencement Date, Section 3.9, below, shall apply to Company Purchases made on Accounts under the Program. 

(b) Company shall obtain and maintain [*] such Point of Sale terminals, cash registers, network (electronic communication interchange system),
telephone or other communication lines, software, hardware, websites and other items of equipment as are necessary for it to request and receive authorizations, transmit charge slip and credit slip information, facilitate the Application Procedures
and perform its obligations under this Agreement and applicable Card Network Rules. The computer programs, equipment and telecommunications protocols necessary to facilitate communications and file transfers between Bank and Company (and/or Bank and
specific Sales Channels, if applicable) (“Systems Technology”) shall be determined by Bank from time to time, subject to reasonable prior notice of any change in such Systems Technology, and discussion of potential costs associated with
such changes. Excluding costs incurred by Company to upgrade and/or integrate its Systems Technology in anticipation of the launch of the Program in the manner as contemplated under this Agreement, [*]. 

3.2 Ownership of Accounts; Fees; Accounting. (a) [*] from the time of establishment, and except as otherwise provided herein,
[*]. 
 (b) The Credit Card Agreements shall include the Rates and Fees as are set forth in Schedule 3.2 (b). In connection with its
servicing of the Accounts, Bank may make changes [*]. Bank may also make changes to an Account to reflect a Cardholder’s change in Member status with Company (e.g., individual Account changes related to a Cardholder’s change from a Value
Cardholder to an Extra Value Cardholder), if Company has notified Bank of such changes to a Cardholder’s Company membership. [*]. Notwithstanding the foregoing, with respect to any changes in the Rates and Fees or other changes affecting a
significant portion of Accounts Bank will, prior to making any such changes, notify Company of such changes. Notwithstanding anything in this Section 3.2(b) to the contrary, [*] set forth in Schedule 3.2(b) without the approval of the Joint
Management Committee. 
 3.3 Bank Mailings; Insertion of Company’s Promotional Materials. Envelope space
(including bangtail) for billing statements and Credit Card mailers shall be allocated as follows: 

  
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 (a) “Priority Materials”, defined as: legally required
material, privacy notices, disclosures, Cardholder notices, billing statements, new Credit Card mailers, PIN mailers, Credit Card Agreement, and notices sent by Bank; 

(b) Bank’s other inserts (including bangtail) provided, however, that in six (6) of the twelve (12) Billing Statement mailings
in any given Program Year, Company shall have the right to include one (1) insert that takes precedence over Bank’s other inserts (including bangtail). 

(c) Company’s promotional materials, subject to the following terms: 

(i) At Company’s request, Bank will include with the billing statements and new Credit Card mailers Company promotional materials provided
by Company, so long as the materials: (1) are provided to Bank at least thirty (30) days prior to the scheduled mailing date of such statements or notices and pursuant to an insert schedule that Company provided to Bank at least sixty
(60) days in advance; (2) have been approved as to content by Bank (in its reasonable discretion) with respect to any manner of reference to Bank or the Program; (3) meet all size, weight, or other specifications for such inserts as
shall be reasonably set by Bank from time to time; (4) would not require the removal (in Bank’s standard envelope) of Priority Materials and/or Bank’s other inserts; and (5) are paid for by Company, but the insertion and mailing
costs shall be funded by Bank with the exception of additional postage costs caused by Bank’s insertion of such materials. 
 (ii) Bank
reserves the right to disallow any inserts which are in violation of Applicable Law, conflict with any other provision of this Agreement, or whose subject matter is reasonably deemed by Bank to be inappropriate in nature. 

3.4 Cardholder Payments. All payments to be made by Cardholders with respect to any amounts outstanding on the Accounts shall be
made in accordance with the instructions of Bank and at the location or address specified by Bank. Company hereby authorizes Bank, or any of its employees or agents, to endorse “Comenity Capital Bank” upon all or any checks, drafts, money
orders or other evidence of payment, made payable to Company and intended as payment on an Account, that may come into Bank’s possession from Cardholders and to credit said payment against the appropriate Cardholder’s Account, As to any
Cardholder who inquires of Company as to where payments on Account’s shall be made, Company shall inform them that payments should be made to Bank. Bank has the sole right to receive and retain all payments made with respect to all Accounts and
to pursue collection of all amounts outstanding, unless a Company Purchase is charged back to Company pursuant to the provisions of Section 3.8 hereof. 

3.5 Non-Competition. (a) Except as otherwise provided in this subsection (a) or
subsection (b) below, Company agrees that, in consideration of and as an inducement for Bank to make the Program available to Company as provided in this Agreement, [*]. If after [*] the parties have not reached agreement, Company may consider
competitive bids from other issuers. Provided, however, Company may at any time develop, conduct a request for proposals, and/or enter into a Letter of Intent or agreement with another credit card provider for a plan or program that will be
effective on or after termination of this Agreement. 
 (b) Notwithstanding the provisions set forth in subsection (a) above or
elsewhere in this Agreement, nothing contained in this Agreement will be construed to prohibit or prevent Company from (1) accepting (a) any major general purpose credit card (including without limitation, American Express Card, MasterCard,
Visa, or Discover) that is not “branded” with Company Marks; or [*]. 

  
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 3.6 Reports. Bank will deliver to Company the reports set
forth in Schedule 3.6, as specified therein and to the extent information is available and applicable. Bank may provide any additional reports requested by Company upon such terms and conditions (including cost) as are mutually agreed to by the
parties. Company shall provide a report of Excluded Cardholders to Bank each month. 
 3.7 New Businesses and Existing Credit Program
Conversions. 
 (a) General: If Company internally develops a new business or acquires another pre-existing business that does not fall within the definition of Sales Channels as set forth in Schedule 1.2, [*]. 

(c) All Transaction Records are subject to review and acceptance by Bank. In accordance with the Section 5.3, Bank shall provide access to
Company to research transaction authorizations and settlements. In the event of a computational or similar error of an accounting or record keeping nature with respect to such Transaction Records, after notice to Company, Bank may credit to the
Company’s Deposit Account or net against the Net Proceeds (as the case may be) the proper amount as corrected. If the Net Proceeds are insufficient, Company shall remit the proper amount to Bank promptly following notification from Bank. Upon
any such correction, Bank shall give Company prompt notice of same, including details of fee discrepancy and correction. Company shall be responsible for ensuring that all Promotional Program Purchases are property designated as such on fee
Transaction Record in accordance with Bank’s instructions. 
 (d) Cardholder Disputes Regarding Accounts, and Goods and/or
Services. Company shall promptly notify Bank regarding any Cardholder dispute regarding an Account including the Cardholder’s Rewards Account and help to resolve any such dispute, including but not limited to any Applicant or Cardholder
claim, dispute, or defense which may be asserted under Applicable Law. This includes but is not limited to claims related to outstanding balances, Bank reports to credit bureaus, finance charges, fees, and collection efforts (e.g., notification
that the Cardholder has filed bankruptcy or wants collection communications directed to legal counsel, etc.). Additionally, Company shall act promptly to investigate and work to resolve disputes with Cardholders regarding Company Purchases on an
Account, and timely process credits or refunds for Cardholders. 
 (e) Chargebacks. Direct Settlement notwithstanding, the applicable
Card Network Rules shall govern chargebacks for all Company Purchases. 
 (f) Exercise of Chargebacks. [*] 

3.9 Interchange Refund. 

[*] 
 3.10 Right of
Offset. Notwithstanding anything in this Agreement to the contrary, if Company fails to pay Bank any undisputed amounts due to Bank pursuant to this Agreement for [*], as applicable, the due date or date of demand, Bank may
offset such amounts against the Net Proceeds or any other amounts owed by Bank to Company under this Agreement. 

  
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SECTION 4 REPRESENTATIONS AND WARRANTIES 

Each party makes the following representations and warranties to the other party as of the date of this Agreement and throughout the Term:

 4.1 Organization, Power and Qualification. Such party is duly organized, validly existing and in good standing under the
laws of its jurisdiction or organization and has full power and authority to enter into this Agreement and to carry out the provisions of this Agreement. Such party is duly qualified and in good standing to do business in all jurisdictions where
located and/or conducting business, except where the failure to be so qualified would not have a material adverse effect on such party’s business or such party’s or the other party’s ability to perform as required under this Agreement
or, operate the Program. 
 4.2 Authorization, Validity and Non-Contravention. 

(a) This Agreement has been duly authorized by all necessary corporate proceedings (or analogous governing proceedings) by such party. Further,
this Agreement has been duly executed and delivered by such party, and is a valid and legally binding agreement of such party and duly enforceable in accordance with its terms (except as such enforcement may be limited by bankruptcy, insolvency,
reorganization, moratorium and other laws relating to or affecting creditors’ rights generally and by general equity principles). 
 (b)
No consent, approval, authorization, order, registration or qualification of or with any court or regulatory authority or other governmental body having jurisdiction over such party is required for (nor would the absence of such adversely affect)
the legal and valid execution and delivery of this Agreement, and the performance of the transactions contemplated by this Agreement 
 (c)
The execution and delivery of this Agreement by such party, the execution of each party’s obligations hereunder and the compliance by such party with all provisions of this Agreement: (i) will not conflict with or violate any Applicable
Law; and (ii) will not conflict with or result in a breach of or default under any of the terms or provisions of any indenture, loan agreement, or other contract or agreement to which such party is a party (including but not limited to any
under which such party is an obligor or by which its property is bound) where such conflict, breach or default would have a material adverse effect on such party or the Program, nor will such execution, delivery or compliance violate or result in
the violation of the Articles of Incorporation or By-Laws (or analogous rules of governance) of such party. 

4.3 Accuracy of Information. All factual information furnished by such party to the other party hereto in writing at any time
pursuant to any requirement of, or furnished in response to, any written request of such other party under this Agreement or any transaction contemplated hereby has been, and all such factual information hereafter furnished by such party to the
other party hereto will be, to such party’s best knowledge and belief, true and accurate in every respect material to the transactions contemplated hereby on the date as of which such information was or will be stated or certified. 

4.4 Compliance with Law. Any action taken by such party, including without limitation to effect its responsibilities and
obligations hereunder, or inaction (where such party has a duty to act) in connection with the Program and/or the other party hereto, shall be in compliance in all material respects with Applicable Law. 

  
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 4.5 Intellectual Property Rights. 

(a) In the event Company provides any software or hardware to Bank, Company has the legal right to such software or hardware and the right to
permit Bank to use such software or hardware, and such use shall not violate any intellectual property rights of any third party. Any software or other technology developed by or for Company or its Affiliates, to facilitate the Program, including
but not limited to, software and software modifications developed in response to Bank’s request or to accommodate Bank’s special requirements and all derivative works, regardless of the developer thereof, will remain the exclusive property
of Company and/or its Affiliates. Nothing in this Agreement shall be deemed to convey a proprietary interest to Bank or any third party in any of the software, hardware, technology or any of the derivative works thereof which are owned or licensed
by Company and/or its Affiliates, and Bank shall return to Company all materials containing such intellectual property upon termination of this Agreement. 

(b) In the event Bank provides any software or hardware to Company, Bank has the legal right to such software or hardware and the right to
permit Company to use such software or hardware, and such use shall not violate any intellectual property rights of any third party. Any software or other technology developed by Bank or its Affiliates or developed for Bank or its Affiliates at
Bank’s direction or expense, to facilitate the Program and/or to fulfill Bank’s obligations pursuant to Section 2.9, Schedule 2.9, and Exhibits 2.9.1 and 2.9.2, including but not limited to, software and software modifications
developed in response to Company’s request or to accommodate Company’s special requirements and all derivative works, regardless of the developer thereof, will remain the exclusive property of Bank and/or its Affiliates. Nothing in this
Agreement shall be deemed to convey a proprietary interest to Company or any third party in any of the software, hardware, technology or any of the derivative works thereof which are owned or licensed by Bank and/or its Affiliates, and Company shall
return to Bank all materials containing such intellectual property upon termination of this Agreement. 
 4.6 Marks. In the
case of Company, Company has the legal right to use and to permit Bank to use, to the extent set forth herein, the Company Marks. In the case of Bank, Bank has the legal right to use and to permit Company to use, to the extent set forth herein, the
Bank Marks. 
 SECTION 5 COVENANTS 

Each party hereby covenants and agrees as follows: 

5.1 Notices of Changes. Each party will [*] notify the other of any: (a) change in the name or form of its business
organization, change in the location of its chief executive office or the location of the office where its records concerning the Program are kept; (b) merger or consolidation of such party, the sale of a significant portion of its stock (or
other form of ownership) or the sale of a substantial amount of its assets not in the ordinary course of business, or any change in the control of such party; (c) material adverse change in its financial condition or operations; (d) [*]; (e)
any change in business practices of such party that would have a material adverse effect on this Agreement or the Program; (f) [*]; or (g) [*]. Each party will furnish such additional information with respect to any of the foregoing as the other
party may reasonably request, for the purpose of evaluating the effect of such change on the financial condition and operations of the affected party and on the Program. Failure by either party to comply with these notice provisions shall not
constitute a default hereunder. 

  
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 5.2 Financial Statements. [*] 

5.3 Access Rights. 

(a) Subject to (b) below, each party will permit, once per Program Year unless the other party has reasonable cause to do so more than
once, authorized representatives designated by the accessing party, at accessing party’s expense, to visit its facilities and inspect, to the extent permitted by Applicable Law, any of its books and records (and, in the case of Company, its
Sales Channels) pertaining to Applicants, Accounts and any category of payments owed by one party to the other, and to make copies and take extracts there from, and to discuss the same with its officers and independent public accountants, all at
reasonable times during normal business hours and with [*]. In addition, Company shall permit regulatory bodies having jurisdiction over Bank to visit its facilities related to the Program during normal business hours with advance notice. 

(b) Each party’s obligations under (a) shall not be required to the extent that (i) such access is prohibited by Applicable Law,
(ii) such records are legally privileged, or (iii) such records are planning documents or those of any of its Affiliates, operating budgets, management reviews or employee records. 

5.4 Each Party’s Business. Each party shall do or cause to be done all things necessary to preserve and keep
in full force and effect its corporate existence (or analogous business form) and to comply with all Applicable Laws in connection with its business (and, in the case of Company, the sale of goods and/or services), including, but not limited to:
(i) compliance with all applicable license requirements related to its business, and (ii) fulfilling its obligations under the Program. Company shall provide to Bank, annually, a forecast of the next year in terms of Company’s number
of stores or other locations (including number and location of openings and/or closings), and expansion or contraction of any Sales Channels. 

5.5 Insurance. Each party shall maintain insurance policies with insurers, and in such amounts and against such types of loss and
damage, as are customarily maintained by other companies engaged in similar businesses within such party’s industry including cyber insurance. [*]. Bank shall name Company as an additional insured under Bank’s Commercial General Liability
and auto liability policies. 
 5.6 Business Continuation/Disaster Recovery Plan. Each party shall maintain a plan designed to
mitigate damages resulting from Force Majeure or other causes that would threaten operation of such party’s business and/or loss or exposure of information requiring protection as described in Sections 2.6 and 8.9. 

5.7 Compliance with Agreement and Operating Procedures. Each party shall use [*] to ensure that its Affiliates, licensees,
franchises, officers, directors, associates and agents comply with the terms of this Agreement and the Operating Procedures. 
 SECTION
6 INDEMNIFICATION 
 6.1 Indemnification Obligations. (a) Each party shall be liable to and shall indemnify and hold
harmless the other and its Affiliates and their respective officers, directors, employees, subcontractors and their successors and assigns (collectively “Indemnified Parties”) from any and all Losses (as hereinafter defined) incurred by
them by reason of: (i) The indemnifying party’s breach of any representation, warranty, covenant or agreement hereunder; 

  
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 notwithstanding any materiality or other qualifier set forth in such provision
(ii) The indemnifying party’s failure to perform its obligations hereunder; (iii) any action or failure to act (where there was a duty to act) by the indemnifying party related to the Program and/or as otherwise provided for in this
Agreement; (iv) The indemnifying party having caused Losses to third parties in connection with its obligations under this Agreement, where such third parties have sought recovery from Indemnified Parties; and (v) The indemnified
party’s defending against claims described in (iv). In any case, the indemnifying party’s liability does not extend to Losses proximately arising from an act or failure to act by Indemnified Parties. Additionally, Company shall indemnify
Bank and its Indemnified Parties for any Losses caused by or related to goods or services charged to an Account or third parties’ use of or reliance on Redemption Data. 

(b) For purposes of this Section 6, the term “Losses” shall mean any liability, damage, costs, fees, losses, judgments,
penalties, fines, and expenses, including without limitation, any reasonable attorneys’ fees, disbursements, settlements (which require the other party’s consent which shall not be unreasonably withheld), and court costs, reasonably
incurred by Bank, Company, or a third-party, as the case may be, without regard to whether or not such Losses would be deemed material under this Agreement; provided however, that Losses shall not include any overhead costs that either party would
normally incur in conducting its everyday business. 
 [*] 

6.2 
 6.3 NO
WARRANTIES. EXCEPT AS PROVIDED HEREIN, THERE ARE NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, RESPECTING THE SERVICES AND/OR OTHER PRODUCTS SOLD OR PROVIDED BY
BANK PURSUANT TO THIS AGREEMENT. 
 6.4 Notification of Indemnification; Conduct of Defense. (a) In no case shall the
indemnifying party be liable under Section 6.1 of this Agreement with respect to any claim or claims made against the indemnified party or any other person so indemnified unless it shall be notified in writing of the nature of the claim within
a reasonable time after the assertion thereof. However, failure to so notify the indemnifying party shall not relieve it from any liability which it may have under other provisions of this Agreement, except to the extent that the indemnifying
party’s right to defend the matter is materially and irrevocably prejudiced by such failure to give prompt notice. 
 (b) The
indemnifying party shall be entitled to participate, at its own expense, in the defense of any suit brought against the indemnified party which gives rise to a claim against the indemnifying party. Alternatively, the indemnifying party may elect to
assume defense of such claim, but must do so within a reasonable time after receiving notice of the claim. However, if the indemnifying party so elects to assume the defense, such defense shall be conducted by counsel chosen by the indemnifying
party and approved by the indemnified party (or the person or persons so indemnified, who are the defendant or defendants in any suit so brought), which approval shall not be unreasonably withheld. Once the indemnifying party has retained counsel
approved by the indemnified party, the indemnified party (or the person or persons so indemnified who are the defendant or defendants in the suit), [*] of any additional counsel it chooses to retain. 

  
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SECTION 7 TERM, EXPIRATION AND TERMINATION 

7.1 Term and Expiration. See Schedule 7.1. 

7.2 Termination with Cause by Bank; Bank Termination Events. Any of the following conditions or events shall constitute a
“Bank Termination Event” hereunder, and Bank may terminate this Agreement immediately without further action if such Bank Termination Event occurs except as set forth below: 

(a) If Company shall: (i) file, or consent by answer or otherwise to the filing against it, of a petition for relief, reorganization or
arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction; (ii) make an assignment for the benefit of its creditors; (iii) consent to the appointment of a
custodian, receiver, trustee or other officer with similar powers of itself or of any substantial part of its property; (iv) be adjudicated insolvent or be liquidated; or (v) receive an adverse opinion by its auditors or accountants and/or
(vi) receive an opinion by its auditors that includes a disclosure as to Company’s viability as a going concern (however, Bank shall only have the right to terminate the agreement under this section (a)(vi) if Company has not cured
the matters included in the going concern disclosures [*]); or 
 (b) If a court or government authority of competent jurisdiction shall
enter an order appointing, without consent by Company, a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, or if an order for relief shall be entered in any
case or proceeding for liquidation or reorganization or otherwise to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution, winding up or liquidation of Company, or if any petition for any such relief
shall be filed against Company [*]; or 
 (c) If Company shall materially default in the performance of or compliance with any term or
violates any of the covenants, representations, warranties or agreements contained in this Agreement, and Company shall not have remedied such default [*]. (Company acknowledges that any breach of its representation in Section 8.11 cannot be
cured.); or 
 (d) If Bank exercises its rights under Section 8.8 [Force Majeure]. 

7.3 Termination with Cause by Company; Company Termination Events. Any of the following conditions or events shall constitute a
“Company Termination Event” hereunder, and Company may terminate this Agreement immediately without further action if such Company Termination Event occurs; 

(a) If Bank shall: (i) file or consent by answer or otherwise to the filing against it, of a petition for relief, reorganization or
arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction; (ii) make an assignment for the benefit of its creditors; (iii) consent to the appointment of a
custodian, receiver, trustee or other officer with similar powers for itself or of any substantial part of its property; (iv) be adjudicated insolvent or be liquidated; or (v) be downgraded by a rating agency to [*]; or (vi) receive
an adverse opinion by its auditors or accountants as to its viability as a going concern; or (vii) breach or fail to perform or observe any covenant or other term contained in any creditor loan agreement, debt instrument or any other material
agreement to which it is bound, which breach or failure, if left uncured could result in a default of such agreement; or 

  
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 (b) If a court or government authority of competent jurisdiction shall
enter an order appointing, without consent by Bank, a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, or if an order for relief shall be entered in any
case or proceeding for liquidation or reorganization or otherwise to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution, winding up or liquidation of Bank, or if any petition for any such relief shall
be filed against Bank [*]; or 
 (c) Except with respect to the Service Standards, if Bank shall materially default in the performance of or
compliance with any term or violates any of the covenants, representations, warranties or agreements contained in this Agreement, and Bank shall not have remedied such default [*] shall have been received by Bank from Company. (Bank acknowledges
that any breach of its representation in Section 8.11 cannot be cured); or 
 (d) [*]; or 

(e) If Company exercises its rights under Section 8.6 [Force Majeure]; or 

(f) See Schedule 7.3(f). 

7.4 Purchase of Accounts. See Schedule 7.4. 

SECTION 8 MISCELLANEOUS 

8.1 Entire Agreement; Amendment; No Waiver; Severability; Counterparts; Captions and Cross References; Mutual Drafting. This
Agreement constitutes the entire Agreement and supersedes all prior representations, proposals, offers, agreements and understandings, whether oral or written, among the parties hereto with respect to the subject matter hereof and merges all prior
discussions between them. Except as otherwise provided for in this Agreement, the provisions herein may be modified only upon the mutual agreement of the parties, however, no such modification shall be effective until reduced to writing and executed
by both parties. No waiver of the provisions hereto shall be effective unless in writing and shall not be deemed to be a continuing waiver unless expressly so stated in writing. No failure or delay on the part of either party in exercising any power
or right under this Agreement shall be deemed to be a waiver, nor does any single or partial exercise of any power or right preclude any other or further exercise, or the exercise of any other power or right. If any of the provisions or parts of the
Agreement are determined to be illegal, invalid or unenforceable in any respect, such provisions or parts shall be deemed omitted without affecting any other provisions or parts of the Agreement which shall remain in full force and effect. This
Agreement may be signed in one or more counterparts, all of which shall be taken together as one agreement. The table of contents and various captions in this Agreement are included for convenience only and shall not affect the meaning or
interpretation of any provision of this Agreement. References in this Agreement to any Section are to such Section of this Agreement. This Agreement is the joint product of Company and Bank and each provision hereof has been subject to
mutual consultation, negotiation and agreement of Company and Bank; therefore to the extent any language in this Agreement is determined to be ambiguous, it shall not be construed for or against any party based on the fact that either party
controlled the drafting of the document. 

  
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 8.2 Coordination of Public Statements. Except as required
by Applicable Law, including, without limitation, any SEC filings reasonably deemed by a party to be required (in which case the party making such filing will provide notice thereof to the other, in advance whenever possible, and shall when possible
redact any and all exhibits, schedules and such other information as the parties may discuss), neither party will make any public announcement of the Program or provide any information concerning the Program to any representative of any news, trade
or other media without the prior approval of the other party, which approval will not be unreasonably withheld. Neither party will respond to any inquiry from any public or governmental authority, except as required by Applicable Law, concerning the
Program without prior consultation and coordination with the other party. Upon Bank’s reasonable request from time to time, Company shall provide references or participate in marketing campaigns or testimonial initiatives for Bank regarding the
services provided by Bank in connection with the Program. 
 8.3 Successors and Assigns. Subject to Schedule 7.3(f), this
Agreement and all obligations and rights arising hereunder shall be binding upon and inure to the benefit of the parties hereto and their respective successors, transferees and permitted assigns. Neither party may assign its rights and obligations
under this Agreement without the written consent of the other party, except in the event of an assignment to an Affiliate or in the case of a Change of Control (as defined in Section 7.3(f) which shall not require the other party’s
consent. Subject to Schedule 7.3(f), in the event that Company sells, transfers or otherwise disposes of all or substantially all of the assets that comprise the
line-of-business currently operating under the name “BJ’s Wholesale Club,” the purchaser in such transaction is a successor, transferee and/or assignee of
Company (the defined party to this Agreement), and the terms of this Agreement shall be binding upon such purchaser (regardless of whether or not such entity is a parent, Affiliate, or party with some other relationship of the kind with Company, and
regardless of under what name the business is conducted). 
 8.4 Notices. All communications and notices pursuant hereto to
either party shall be in writing and addressed or delivered to it at its address shown below, or at such other address as may be designated by it by notice to the other party, and shall be deemed given when delivered by hand, or two
(2) Business Days after being mailed (with postage prepaid) or when received by receipted courier service: 
  

			
	 If to Bank:
  

Comenity Capital Bank
 2795 E. Cottonwood Parkway

Suite #100
 Salt Lake City, UT 84121

Attn.: President
  
	  	 If to Company:
  

BJ’s Wholesale Club, Inc.
 25 Research Drive

Westborough, MA 01581
 Attn: Senior Vice President
Finance

	 With a Copy to:
 Comenity LLC

3100 Easton Square Place
 Columbus, OH 43219

Attn: Law Department
	  	 With a Copy to:
  

BJ’s Wholesale Club, Inc.
 25 Research Drive

Westborough, MA 01581
 Attn: General Counsel

 8.5 GOVERNING LAW/WAIVER OF JURY TRIAL. [*] 

  
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 8.6 Force Majeure. Neither party will be responsible for
any failure or delay in performance of its obligations under this Agreement because of circumstances beyond its reasonable control, and not due to the fault or negligence of such party, including but not limited to, acts of God, flood, criminal
acts, fire, riot, computer viruses or hackers where such party has utilized commercially reasonable means to prevent the same, accident, embargo, sabotage, terrorism, inability to obtain material, equipment or phone lines, government action
(including any laws, ordinances, regulations or the like which restrict or prohibit the providing of the services contemplated by this Agreement), and other causes whether or not of the same class or kind as specifically named above. The foregoing
force majeure clause shall have no effect on and shall not diminish either party’s obligation to implement its disaster recovery plan. 

In the event a party is unable to perform substantially for any of the reasons described in this Section, it will notify the other party
promptly of its inability so to perform, and if the inability continues for [*], the party so notified may then terminate this Agreement forthwith. This provision shall not, however, release the party unable to perform from using its [*] to avoid or
remove such circumstance and such party unable to perform shall continue performance hereunder with the utmost dispatch whenever such causes are removed. 

8.7 Survival.[*] 
 except for the
following Sections and their corresponding schedules: Section 2.8, Section 3.2, Section 3.4, Section 6, Section 7.4, Section 8.4, Section 8.5, Section 8.6, Section 8.9, Section 8.10 and Section 8.11. 

8.8 Relationship of Parties; Third Parties; Independent Contractor. This Agreement does not constitute the parties as partners or
joint venturers and neither party will so represent itself. The provisions of this Agreement are for the benefit of the parties hereto and not for any other person or entity. The parties hereby declare and agree that Bank is engaged in an
independent business, and shall perform its obligations under this Agreement [*], including compliance with workers’ compensation, unemployment, disability insurance, social security, withholding and all other federal, state and local laws,
rules and regulations governing such matters; that [*]. 
 8.9 Confidentiality and Security Control. 

(a) Confidential Information and Other Protected Information, Except as specifically provided in this Section 8.9, or as otherwise
set forth in this Agreement, [*]. Additionally, the [*]. 
 However, the definition of “Confidential Information” specifically excludes
information which: 
 (i) is generally known to the trade or to the public at the time of such disclosure; or 

(ii) becomes generally known to the trade or the public subsequent to the time of such disclosure; provided, however, that such general
knowledge is not the result of a disclosure in violation of this Section 8.9; or 

  
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 (iii) is obtained by a party from a source other than the other party,
without breach of this Agreement or any other obligation of confidentiality or secrecy owed to such other party or any other person or organization; or 

(iv) is independently conceived and developed by the disclosing party and proven by the disclosing party through tangible evidence not to have
been developed as a result of a disclosure of information to the disclosing party, or any other person or organization which has entered into a confidential arrangement with the non-disclosing party; or 

(v) Bank is required to report to a Card Network by such Card Network’s applicable rules and regulations. 

(b) Permitted Uses and Disclosures. Nothing in this Section 8.9 shall be interpreted to mean that a party is restricted with
respect to the use or disclosure of Confidential Information which it owns. [*]. Notwithstanding anything to the contrary in this Agreement, [*]. 

(c) Protecting Disclosed Information. [*]. Furthermore, the [*]. 

(d) Protecting Stored Information. Each party shall establish [*] to ensure the confidentiality of any Consumer Personal Information and
the other’s Confidential Information. Each party shall also ensure that such Information is not disclosed contrary to the provisions of this Agreement or any applicable privacy, security or other laws, rules and regulations. Without limiting
the foregoing, [*]. If the parties are unable to reach agreement with regard to such revisions, the matter shall be referred to the Joint Management Committee for resolution. [*]. 

(e) [*]. This includes but is not limited to any and all records regarding Cardholders whether in paper, electronic, or other form, that is
maintained or otherwise possessed by or on behalf of Company, including a compilation of such records. [*]. 
 (f) [*]. This includes but is
not limited to any and all records whether in paper, electronic, or other form, that is maintained or otherwise possessed by or on behalf of Bank, including a compilation of such records. 

8.10 Taxes. [*]. The parties agree to cooperate with each other to minimize any applicable sales, use, or similar tax 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, information concerning the use
of assets, materials and notices of assessments). All amounts set forth in this Agreement are expressed and shall be paid in lawful U.S. dollars. 

8.11 Brokers. Except as set forth on Schedule 8.11, [*]. 

[Signature Page to Follow] 

  
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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement in manner and form
sufficient to bind them as of the Effective Date. 
  

									
	COMENITY CAPITAL BANK	 		 	     BJ’S WHOLESALE CLUB, INC.

									
					
	By:	 	  
	 		 	By:	 	 /s/ William C. Werner

	Title:	 	  
	 		 	Title:	 	SVP, Finance
	Date:	 	  
	 		 	Date:	 	6/5/14

  

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Treatment 
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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement in manner and form
sufficient to bind them as of the Effective Date. 
  

									
	COMENITY CAPITAL BANK	 		 	BJ’S WHOLESALE CLUB, INC.
					
	By:	 	 /s/ Ronald J. Ostler
	 		 	By:	 	          

	Title:	 	President	 		 	Title:	 	  

	Date:	 	6/5/14	 		 	Date:	 	  

  
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 EXECUTION COPY 

SCHEDULE 1.2 

Definitions and Other Obligations 

A. DEFINITIONS 
 As used herein
and unless otherwise required by the context, the following terms shall have the following respective meanings. 
 “Account” shall
mean an (i) an Existing Account, and (ii) individual, general purpose open-end revolving line of credit which is established by Bank for a Member pursuant to the terms of a Credit Card Agreement and
in accordance with the applicable Card Network rules and regulations, and marketed with a Company Mark and the trade names and/or logos of a Card Network. Unless specifically set forth otherwise, “Account” shall include small Business
Accounts. 
 “Account Center” shall mean an electronic customer service system Bank makes available on a Bank website. 

“Accounts Receivable” shall mean, as to any Account at the time of reference, any and all amounts owing on such Account (whether or
not posted or billed to an Account), less any payments and credits received by Bank with respect to the Accounts. This definition specifically excludes any amounts that have been written-off by Bank with
respect to such Accounts. 
 “Activation Certificate” means, as the context may require, a Value Activation Certificate, an Extra
Value Activation Certificate, or both a Value Activation Certificate and Extra Value Activation Certificate. 
 “Actual LIBOR
Rate” shall mean “12 Month LIBOR Rate” as published in the Wall Street Journal on the day of reference, at the end of each Program Quarter, beginning at the end of the second Program Quarter. 

“Acquiring Bank” shall mean the bank that provides Credit Card acceptance services to Company. 

“Adjusted Discount Rates” would mean those resulting from LIBOR related adjustments to the Benchmark Discount Rates in the table
below. 
 “Affiliate” shall mean with respect to a party, any entity that is owned by, owns, or is under common control with such
party. 
 “Applicable Law” shall mean any applicable federal, state or local law, rule, or [*], order or directive, [*] of any
court, arbitrator or governmental authority applicable or binding upon a party or to which that party is subject, or otherwise applicable to the Program or the Accounts, whether federal, state, county, local or otherwise including but not limited to
formal or informal direction [*]. 
 “Applicant” shall mean an individual or small business that is a Member and applies for an
Account under the Program. 

  
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 “Application Procedure(s)” shall mean, [*]. 

“Average Accounts Receivable” shall mean the sum of month-end Accounts Receivable for a
given Program Year divided by twelve (12). 
 “Bank Mark” shall mean a trademark, service mark, or name owned by or licensed (and
capable of being sublicensed) to Bank and designated by Bank to Company for use in connection with the Program. 
 “Batch
Prescreen” shall mean a process where Bank’s offer of credit is made to certain Members after being prequalified by Bank (per its criteria), in a batch mode (often but not exclusively within a direct-to-consumer environment). 
 [*] 

“Benchmark Member Level” shall mean the number of Members existing on the Program Commencement Date. 

“Benchmark Net Sales Level” shall mean the amount of net sales for all Purchases through all Company Sales Channels in the twelve
(12) month period prior to the Program Commencement Date. 
 “Benchmark Store Level” shall mean the number of Company stores
open on the Program Commencement Date. 
 “Business Day” shall mean any day, except Saturday, Sunday, federal holidays, or a day
on which banks in Utah are required to be closed. 
 “Cardholder” shall mean any natural person or small business to which an
Account has been issued by Bank and/or any authorized user of the Account. 
 “Card Network” shall mean MasterCard International,
Inc., unless otherwise designated by Company. 
 “Card Network Rules” shall mean collectively the rules, regulations, releases,
interpretations and other requirements (whether contractual or otherwise) imposed or, adopted by a Card Network participating in the Program. 

“Company Deposit Account” shall mean the one (1) deposit account maintained by Company and designated by it in writing to Bank
as to which Bank should direct its payments. 
 “Company Mark” shall mean a trademark, service mark, or name owned by or licensed
(and capable of being sublicensed) to Company and designated by Company to Bank for use in connection with the Program. 
 “Consumer
Personal Information” shall mean that non-public personal information regarding Applicants, Members, and Cardholders, including but not limited to Account Information consumer reports, and information
derived from consumer reports, that is subject to protection from publication under Applicable Law. 

  
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 “Company Purchase” shall mean a purchase (inclusive of
applicable taxes and shipping costs) of goods and/or services sold at retail by Company through its Sales Channels for individual, personal, family, household or business use with a specific extension of credit by Bank to a Cardholder using an
Account as provided for under this Agreement. A Company Purchase does not include a General Purchase and vice versa. For clarity, a Company Purchase does not include any purchases for goods and/or services made under any Merchant Identification
Number that does not identify Company as the merchant of record, even if such good and/or service is sold through a Company Sales Channel. 

“Credit Card” shall mean the credit card issued by Bank to Cardholders on an Account, which is a general purpose credit card bearing
a Company Mark, the Member Identification number issued by Company and the trademark or logo of the applicable Card Network, corresponding to a related Account for the purpose of making Purchases pursuant to this Agreement. 

“Credit Card Agreement” shall mean the open-end revolving credit agreement between a
Cardholder and Bank governing the Account and Cardholder’s use of the Credit Card, together with any modifications or amendments which may be made to such agreement. 

“Credit Sales Day” shall mean any day, whether or not a Business Day, on which Company sells goods and/or services through its Sales
Channels. 
 [*] 

“Discount Fee” shall have the meaning set forth in Schedule 1.2. 

“Discount Rate” shall have the meaning set forth in Schedule 1.2. 

“Electronic Bill Presentment and Payment (or EBPP)” shall mean a procedure whereby Cardholders can elect to receive their billing
statements electronically and that also allows them an opportunity to remit their Account payments to Bank electronically. 
 “Existing
Accounts” shall mean [*]. 
 “Extra Value” shall refer to that certain level of membership offered by Company to its Members
and known, as of the Effective Date, as BJ’s Rewards® Membership and any successor, substitute or replacement membership level thereof. “Extra Value Cardholders” shall be those
Cardholders who are members at that level. 
 “Extra Value Activation Certificate” shall have the meaning set forth in Schedule
2.9, Section 2(b)(vi). 
 “Financial Products” shall mean Company branded credit card, [*]. 

“Forms” shall have the meaning set forth in Section 2.4. 

“General Purchase” shall mean any purchase of goods and/or services for individual, personal, family, household or business use
(inclusive of applicable taxes and shipping costs), with a specific extension of credit by Bank to a Cardholder using an Account as provided for under this Agreement. A General Purchase does not include a Company Purchase and vice versa. [*]. 

“Initial Term” shall have the meaning set forth in Schedule 7.1. 

  
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 “Instant Credit” shall mean [*]. 

“Interchange Fee” shall mean [*]. 

“Interchange Information” shall have the meaning set forth In Section 3.9(a). 

“Interchange Rate” shall mean [*]. 

“Member” shall mean, as of any date, an individual or small business holding a membership in Company. 

“Member Agreement” shall mean the agreement with respect to the Rewards Program establishing the terms and conditions of the Rewards
Program, as such agreement may be amended by Company from time to time. 
 “Merchant Discount Rate” shall mean the per card
transaction rate that Company pays to the Acquiring Bank in consideration for card acceptance services. 
 “Merchant Identification
Number” shall mean a unique number assigned to a merchant account to identify it during the course of processing credit activities. 

“Net Proceeds” shall mean Company Purchases: (i) less credits to Accounts for the return or exchange of goods, or a credit on
an Account as an adjustment by Company for goodwill or for services rendered or not rendered by Company to a Cardholder, all as shown in the Transaction Records (as corrected by Bank in the event of any computational error), calculated each Business
Day; (ii) less payments from Cardholders received by Company from Cardholders on Bank’s behalf; (iii) minus, as applicable, any Discount Fees in effect on the date of calculation; and (iv) plus or minus, as applicable, any other
amounts owed to or by Bank pursuant to this Agreement. 
 “Net Sales” shall mean [*]. 

“Operating Procedures” shall mean Bank’s instructions and procedures regarding the Program as written by Bank and provided to
Company in writing to be followed by Company. 
 “Point of Sale (or POS)” shall mean the physical or electronic location at which
transactions (sales, credits, and returns) take place. This includes but is not limited to a cash register, point of order entry, website (as applicable), or membership service desk (as applicable). 

“Program” shall mean the co-brand credit card program established and administered by Bank
for Cardholders, and whereby Credit Cards are offered to Members by virtue of this Agreement. “Program” includes the Small Business Program and all references to Program in the Agreement shall be interpreted to include the Small Business
Program except as specifically set forth otherwise. 
 “Program Commencement Date” shall mean the earlier of the date on which
Bank begins to issue new Accounts or the date on which Bank notifies Company in writing that Bank has commenced operation of the Program. 

“Program Month” means each calendar month commencing on the Program Commencement Date or the first day of the first full calendar
month following the Program Commencement Date if the Program Commencement Date is not the first day of a calendar month. 

  
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 “Program Quarter” means each consecutive three (3) month
period commencing on Program Commencement Date or the first day of the first full calendar month following the Program Commencement Date if the Program Commencement Date is not the first day of a calendar month. 

“Program Year” shall mean each consecutive twelve (12) month period commencing on the Program Commencement Date or the first
day of the first full calendar month following the Program Commencement Date if the Program Commencement Date is not the first day of a calendar month and each anniversary thereof. 

“Promotional Program” shall mean any special Cardholder payment terms requested by Company and approved by Bank for certain Company
Purchases, including without limitation any Company Purchases not made pursuant to regular revolving credit terms. The initial Promotional Programs, if any, are set forth in Schedule 1.2. 

“Promotional Program Purchase” means a Company Purchase subject to a Promotional Program. 

“Purchase” means a Company Purchase and/or a General Purchase. 

“Quick Credit” shall mean an in-store Application Procedure designed to open Accounts as
expeditiously as possible at POS, whereby an application for an Account might be processed without a paper application being completed by an Applicant. An Applicant’s credit card (Visa, MasterCard, American Express, Discover or other Bank
approved private label card) is electronically read by a terminal to identify certain information to facilitate a credit analysis. Other data shall be entered into that same terminal by Company’s employee or the Applicant as specified in the
Operating Procedures. 
 “Rates and Fees” shall mean those Cardholder terms and conditions regarding rates and fees as are
initially set forth in Schedule 3.2 (b), as amended from time to time pursuant to Section 3.2 (b). 
 “Regular Revolving
Purchases” shall mean Purchases excluding Promotional Program Purchases. 
 “Renewal Term” shall have the meaning set forth
in Schedule 7.1. 
 “Real-Time Prescreen” shall mean a process where Bank’s offer of credit is made to certain Members pre-qualified by Bank (per its criteria), in a real-time pre-approved manner, at the POS at the time of a transaction. 

“Reward Funding” means the amounts as calculated pursuant to Sections 5 and 6 of Schedule 2.9. 

“Rewards Dollars” shall mean a unit of currency accrued under the Rewards Program by a Member. 

  
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 “Rewards Program” shall mean the loyalty reward program owned
and/or operated by or on behalf of Company and offered exclusively to Cardholders under which Cardholders may earn Rewards Dollars for eligible Purchases on Credit Cards to be redeemed In-Club or on BJs.com
toward the purchase of eligible goods and/or services, and which provides other benefits to Cardholders, all as governed by the Rewards Program Terms, and any successor, substitute or replacement loyalty reward program. [*]. 

“Rewards Program Records” shall have the meaning set forth in Section 2.9(b). 

“Rewards Program Terms” shall mean the terms and conditions of the Rewards Program, as such terms and conditions may be amended by
Company from time to time in accordance with this Agreement. 
 “Sales Channels” shall mean those certain sales channels through
which Company sells its goods and/or services during the Term, regardless of what name the Company uses for such sales channels, including (as applicable) but not limited to: (i) retail locations which are owned and operated by Company or
Company’s Affiliates or Company’s licensees or franchisees, (ii) Company’s website, and (iii) Company gas stations. 

“Service Standards” shall have the meaning set forth in Schedule 2.1 (h). 

“Solicitation Channels” shall mean the methods of acquiring Accounts as set forth in Schedule 2.6(a). 

“Small Business Account” shall mean an Account that is part of the Small Business Program including Existing Accounts that are small
business accounts. 
 “Small Business Program” shall mean the co-brand credit card program
established and administered by Bank for small business Cardholders, and whereby Credit Cards are offered to Members by virtue of this Agreement. 

“Statemented Account” shall mean each Account for which a billing statement is generated (whether or not actually sent to the
Cardholder) within a particular billing cycle. 
 “Take-One Application” shall mean a
paper application made available at or through Sales Channels (or otherwise). An Applicant can complete and submit the Take-One Application directly to Bank, or he or she may submit it to Company’s
employee for submission to Bank (such as through the Instant Credit Application procedure). 
 “Term” shall mean the Initial Term
plus any Renewal Terms, as defined in Schedule 7.1. 
 [*] 

“Value” shall refer to that certain level of membership offered by Company to Members and known, as of the Effective Date, as
BJ’s Inner Circle® Membership and any successor, substitute or replacement membership level thereof. “Value Cardholders” shall be those Cardholders who are members at that
level. 
 “Value Activation Certificate” shall have the meaning set forth in Schedule 2.9, Section 2(a)(vi). 

  
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 B. Other Definitions. As used herein, terms defined in the
introductory paragraph hereof and in other sections of this Agreement shall have such respective defined meanings. Defined terms stated in the singular shall include reference to the plural and vice versa. The terms “shall” and
“will” have the identical meaning (i.e., that something is compulsory and certain), and the use of one versus the other is not to be interpreted as implying less certainty or a sense of possibility or choice. 

C. OTHER OBLIGATIONS 
 Discount Rates and other
key terms related to Regular Revolving Purchases and Promotional Program Purchases are as set forth in the table and notes below 
 I.
DISCOUNT FEES/OTHER TERMS FOR REGULAR REVOLVING PURCHASES 
 [*] 

II. DISCOUNT FEES/OTHER TERMS FOR PROMOTIONAL PROGRAM PURCHASES 

The key terms (including Discount Rate and any adjustments thereto) for each Promotional Program are as indicated in the table below. For any
specific Promotional Program, Company shall pay to Bank Discount Fees in an amount equal to (i) Net Sales on Company Purchases under such Promotional Program, multiplied by (ii) the applicable Discount Rate (after making any appropriate
adjustments as set forth below). [*]. 
 [*], so long as the cessation of the Promotional Program is effected in compliance with Applicable
Law and the Operating Procedures. 
 At the end of the second Program Quarter, and each Program Quarter thereafter, Bank shall calculate the Adjusted
Discount Rate for the next Program Quarter. [*]. 
 D. NEW ACCOUNT AWARDS 

[*] 
 Bank shall not pay New Account Awards with
regard to Accounts for Cardholders that had previously been Cardholders of this Program [*]. 
 E. [*] 

F. MINIMUM CONTRIBUTION 
 So long
as Company fulfills its material obligations pursuant to this Agreement Bank, including but not limited to making the Company Solicitation Channels described in Schedule 2.5(a) available within the timeframes also described in Schedule 2.5(a)
and thereafter for the duration of the Term unless the Parties agree otherwise, [*]. 
 G. ONLINE INTEGRATION FUNDS 

[*] 
 H. PROGRAM LAUNCH FUND 

[*] 

  
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 I. PORTFOLIO MANAGEMENT FEE 

[*] 
 J. IN-STORE POS FUNDING 
 [*] 

K. ADDITIONAL APPLICATION SUPPORT 

[*] 
 L. SIGNAGE FUNDS 

[*] 
 M. INTERCHANGE CHANGE 

[*]. If the Joint Management Committee cannot agree that such modifications are appropriate, or cannot agree upon modifications to such terms,
in either case, [*]. 
 N. CARD NETWORK CORE BENEFITS 

Bank shall provide through the selected Card Network, [*] benefits for Cardholders. The initial set of benefits may include the following
options. Bank may change the Card Network benefits that it makes available to Cardholders from time to time. 
 [*] 

  
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 EXECUTION COPY 

Schedule 2.1(h) 

[*]

  
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 EXECUTION COPY 

Schedule 2.1(k) 

MasterCard Reporting to be provided by Bank 

[*], provided that MasterCard is the Card Network for Accounts issued under the Program, Bank shall provide MasterCard with the information set forth in the
table below with regard to Accounts under the Program, including all Direct Settlement transactions [*]. 
  

									
	 	  	 Quarter ending
12/31
	  	 Quarter ending
3/31
	  	 Quarter ending
6/30
	  	 Quarter ending
9/30

	 Total Monthly MasterCard Volume
	  		  		  		  	

  
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Treatment 
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 EXECUTION COPY 

Schedule 2.5 (a) 

Marketing Promotions 
 The parties
shall, respectively, promote and advertise the Program as generally set forth below but as more specifically provided in each Annual Marketing Plan, in addition to other obligations related to the Joint Management Committee: 

I. Company will promote and advertise the Program as set forth below: 

Acquisition: 
  

			
	1.	  	Store Operations Executive Sponsorship of Program-C level participation in quarterly meetings
		
	2.	  	Application and credit sales goals in place for stores and field leaders; include goals and key performance metrics in performance evaluations and weekly reporting for store, district and regional managers
		
	3.	  	Periodically test and/or implement in store/on site contests for determined time periods based on incentive funded by Marketing Funds
		
	4.	  	Strategies in place for low performing stores
		
	5.	  	Provide new Cardholder incentive for all new Account originations (as described as of the Effective Date in Schedule 2.9, items 2(a)(vi) and b(vi)), which incentives are to be funded by Bank as of the Program Commencement
Date
		
	6.	  	Ensure field management & associates complete credit training with Bank dedicated field sales support; assigns credit captains in stores
		
	7.	  	 Implement marketing programs targeted towards acquisition

 [*] 

  
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 EXECUTION COPY 

Schedule 2.9 

Cardholder Rewards Program 
 [*]

 2. Company and Bank hereby agree that as of the Effective Date the benefits under the Rewards Program shall include at a minimum: 

(a) For Value Cardholders: 
 [*]

 (b) For Extra Value Cardholders: 

[*] 
 9. Based on membership status communicated
by Company to Bank, Bank shall provide a Member with the appropriate corresponding Account (e.g., either Value or Extra Value Credit Card) at initial launch and throughout the Program. In the event that Company notifies Bank that a Cardholder has
changed his or her membership status, Bank may move the Cardholder from Value to Extra Value or vice versa. 
 10. Notwithstanding anything in the Agreement
or this Schedule 2.9 to the contrary, the parties hereby agree that only Accounts in good standing, [*], may participate in, accrue Rewards Dollars under and/or derive benefits from the Rewards Program. Furthermore, Bank’s obligations pursuant
to Paragraphs 5, 6, and 8 above shall apply solely to Accounts in good standing. 
 11. Bank reserves the right to debit Reward Dollars accrued on Accounts
in error. 
 [*] 
 13. To the extent that Bank agrees to fund
any promotional Rewards Dollars for any “spend and get” promotions or other Rewards Dollar earning opportunities approved by the Joint Management Committee independent of the Marketing Fund, the cost to Bank for such promotional Rewards
Dollars shall be [*]. 

  
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 EXECUTION COPY 

Schedule 3.2(b) 

Summary of Rates and Fees 
 [*] 

**as published in the “Money Rates” section of the Wall Street Journal on the date of reference. 

[*] 

  
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 EXECUTION COPY 

Schedule 3.6 
 Bank
Reports 
 [*] 

  
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 Schedule 7.1 

Term and Expiration 
 Upon
execution by authorized representatives of both parties, and unless terminated as provided herein, this Agreement shall become effective as of the Effective Date, remain in effect for seven (7) years and ten (10) months from the Program
Commencement Date (the “Initial Term”), and automatically renew for successive one (1) year terms (each a “Renewal Term”) thereafter, unless (i) either party provides the other with at least nine (9) months’
written notice of its intention not to renew this Agreement beyond the expiration of the initial or then current Renewal Term. If Bank does not purchase the Barclaycard Consumer Portfolio on or before February 28, 2015 despite [*], either party
shall have the right to terminate this Agreement by providing a written notice to the other party. 

  
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Schedule 7.4 

Purchase of Accounts 

[*]. As used in this Schedule 7.4, “Accounts Receivable” shall mean, as to any Account at the time of purchase, any and all amounts
owing on such Account (whether or not posted or billed to an Account), but shall not include amounts owing on Accounts that are [*]. The Portfolio purchase price shall be [*] (or its designee), and [*]. 

If the parties are unable to agree on the fair market value of the Portfolio, [*] (entity or individual) with recognized standing and
experience in valuing retail credit card portfolios (the “Company Appraiser” and “Bank Appraiser” respectively). The Company Appraiser and Bank Appraiser shall jointly select a third appraiser who shall also have recognized
standing and experience in valuing retail credit card portfolios (collectively “Appraisers”). Each of Bank and Company (and/or its designee) shall provide such information to the Appraiser as is necessary to permit the Appraiser to provide
a valuation as of a common date, which shall be within a reasonable time of the date the Appraiser was retained. The parties shall ensure that the Appraisers perform in a manner and with appropriate exigency so as to ensure compliance with any time
frames described elsewhere in this Schedule 7.4. To determine the fair market value of the Portfolio, the Appraisers shall [*]. Fair market value shall then be [*] as determined by the Appraisers. The parties may agree to additional appraisal
instructions. 
 Company must provide Bank with notice of its intent to exercise its purchase right [*] to expiration or [*] of earlier
termination is given by either party, as applicable. If Company elects to purchase the Portfolio, Company (or its designee) shall, [*], notify all Cardholders that Bank is no longer the owner of their Accounts. Bank shall provide all notices to
Cardholders required by it as issuer under Applicable Law Company and Bank shall cooperate in facilitating the transition to Company or its designee, and Company shall ensure appropriate cooperation on the part of its designee. 

Bank shall make available the following key performance indicators (the “KPI’s”) to bidding issuers who have executed a non-disclosure agreement (“NDA”) reasonably acceptable to Bank. For clarity purposes, Company need not have provided the above notice to release the KPI’s; however, any recipient must have executed
the above referenced NDA prior to receiving the KPI’s: 
 [*] 

Any purchase pursuant to this Schedule 7.4 shall take effect [*] the Program expiration date or, in the event of an earlier termination, [*]
following the effective Program termination date. All parties shall [*] to achieve such deadlines. Notwithstanding anything to the contrary provided elsewhere in this Schedule 7.4, Bank shall not be required to sell or deconvert the Portfolio [*].
If Company or its designee [*]. Upon payment of the purchase price to Bank, Bank shall assign to Company (or its designee), without recourse, all of Bank’s right, title and interest in and to the Portfolio. Following the conversion, [*] which
is required by Applicable Law, which information shall be held in accordance with Section 8.9 hereof. 
 [*] 

  
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Treatment 
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 EXECUTION COPY 

Schedule 8.9 
 Data
Security 
 1. Security Policy. Bank will establish and maintain a formal, documented, mandated, Bank-wide information security
program, including security policies, standards and procedures (collectively “information security policy”). The information security policy will be communicated to all Bank personnel, employees, agents, and contractors in a relevant,
accessible, and understandable form and will be regularly reviewed and evaluated (but no less frequently than as may be required by applicable law) to ensure its operational effectiveness, compliance with all applicable laws and regulations, and to
address new threats and risks. On request, Bank will provide Company the then current version of the information security policy. Among other things, the information security policy and Bank’s overarching security program must address the
following: 
 a. Identifying and assessing reasonably foreseeable internal and external risks to the security, confidentiality, and/or
integrity of any electronic, paper or other records containing Company confidential information and evaluating and improving, where necessary, the effectiveness of the current safeguards for limiting such risks, including but not limited to:
(i) ongoing employee (including temporary and contract employee) training; (ii) employee compliance with policies and procedures; and (iii) means for detecting and preventing security system failures; 

b. Address whether and how employees should be allowed to keep, access and transport records containing confidential information outside of
business premises; 
 c. Imposing disciplinary measures for violations of the information security policy; 

d. Preventing terminated employees from accessing records containing Company confidential information by immediately terminating their physical
and electronic access to those records, including deactivating their passwords and user names; 
 e. Limiting the amount of confidential
information, including personal information, collected to that which is reasonably necessary to accomplish the legitimate purpose for which it is collected; limiting the time such information is retained to that which is reasonably necessary to
accomplish such purpose; and limiting access to those persons who are reasonably required to know such information in order to accomplish such purpose or to comply with state or federal record retention requirements; 

f. Identifying paper, electronic and other records, computing systems, and removable media (as defined below) used to store confidential
information, to determine which records contain confidential information, except where the information security policy provides for the handling of all records as if they all contained confidential information; 

g. Reasonable restrictions upon physical access to records containing confidential information, including a written procedure that sets forth
the manner in which physical access to the records is restricted, and storage of the records and data in locked facilities, storage areas or containers; 

  
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 h. Regular monitoring to ensure compliance with the information security
policy is operating in a manner reasonably calculated to prevent unauthorized access to or unauthorized use of confidential information, and upgrading information safeguards as necessary to limit risks; 

i. Reviewing the scope of the security measures [*] or whenever there is a material change in business practices that may reasonably implicate
the security or integrity of records containing confidential information; and 
 j. Documenting responsive actions taken in connection with
any incident involving a breach of security, and mandatory post-incident review of events and actions taken, if any, to make changes in business practices relating to protection of confidential information. 

2. Personnel Bank Protections. Prior to commencement of services, Bank shall have performed a criminal background check [*] on all associates assigned
to perform services under this agreement. In the event an associate assigned to perform services under the Program Agreement has been convicted of a crime that is honesty related or would present safety or security risks, including without
limitation individuals with a conviction(s) or indictment(s) for any of the following crimes: crimes against persons; crimes involving weapons; crimes involving the use/misuse of a computer/network; crimes involving trade secret/proprietary
information theft, burglary, theft, embezzlement, corruption, bribery, forgery, fraud, receiving stolen property; crimes involving the possession, manufacture, transportation or sale of illegal drugs and controlled substances or any other crime that
qualifies as a misdemeanor or felony in the jurisdiction involved, Bank shall first consult with Company prior to assigning such associate or if the associate is already assigned to Company, then the Bank will consult with Company regarding the
associate’s continued assignment to Company account. Prior to associates’ assignment to the Program, Bank shall certify that the background checks have not revealed any incidents which would require consultation with Company prior
to assigning such individual to the Program. Bank shall supply each of its associates and contractors with appropriate, ongoing training regarding information security procedures, risks, and threats. Bank will have an established set of procedures
to ensure associates and contractors promptly report actual and/or suspected breaches of security. 
 3. Removable media. Except in the context of
Bank’s routine back-ups or as otherwise specifically authorized by Company in writing, Bank will institute strict physical and logical security controls to monitor transfer of personal information to any
form of removable media. For purposes of this exhibit, “removable media” means portable or removable hard disks, floppy disks, usb memory drives, zip disks, optical disks, cds, dvds, digital film, memory cards (e.g., secure digital (sd),
memory sticks (ms), compactflash (cf), smartmedia (sm), multimediacard (mmc), and xd-picture card (xd)), magnetic tape, and all other removable data storage media. 

4. Data control: media disposal and servicing. Company confidential information (i) may only be made available and accessible pursuant to the
Program Agreement; (ii) if transferred across the internet, any wireless network (e.g., cellular, 802.11x, or similar technology), or other public or shared networks, must be protected using appropriate cryptography consistent with industry
best practices or as designated or approved by Company in writing; and (iii) if transferred using removable media (as defined above) must be sent via a bonded courier or protected using cryptography consistent with industry best practices or as
designated or approved by Company in writing. The foregoing requirements apply to back-up data stored by Bank at off-site facilities. In the event any hardware, storage
media, or removable media must be disposed of or sent off-site for servicing, Bank will ensure all Company confidential information, including personal information, has been “scrubbed” from such
hardware and/or media using industry best practices (e.g., dod 5220-22-m standard) and in accordance with the privacy and security requirements. 

  
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Treatment 
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 5. Physical and environmental security. Bank facilities that process Company
confidential information will be housed in secure areas and protected by perimeter security such as barrier access controls (e.g., the use of guards and entry badges) that provide a physically secure environment from unauthorized access, damage, and
interference. 
 6. Communications and operational management. Bank shall (i) monitor and manage all of its information processing facilities,
including, without limitation, implementing operational procedures, change management and incident response procedures; and (ii) deploy adequate anti-viral software and adequate back-up facilities to
ensure essential business information can be promptly recovered in the event of a disaster or media failure; and (iii) ensure its operating procedures will be adequately documented and designed to protect information, computer media, and data
from theft and unauthorized access. 
 7. Access control. Bank will implement formal procedures to control access to its systems, services, and data,
including, but not limited to, user account management procedures and the following controls: 
  

	 	a.	Network access to both internal and external networked services shall be controlled, including, but not limited to, the use of properly configured and patched firewalls; 

 

	 	b.	Operating systems will be properly patched and used to enforce access controls to computer resources including, but not limited to, authentication, authorization, and event logging; 

 

	 	c.	Applications will include access control to limit user access to information and application system functions; 

  

	 	d.	All systems will be monitored to detect deviation from access control policies and identify suspicious activity. Bank shall record, review and act upon all events in accordance with incident response policies set forth
in incident Notification, below; 

  

	 	e.	Bank will change Company confidential information access passwords on a regular basis in accordance with Bank policy, but at least as frequently as [*]; 

 

	 	f.	Remote access to Bank’s network must be controlled with a virtual private network or other device (“VPN”) or private lines, consistent with [*]. Two factor authentication should be used for all remote
access: 

  

	 	g.	Wireless networks will have controlled deployment, secure configuration, and monitoring processes in place that provide for the effective authorization and management of wireless devices; 

 

	 	h.	Bank will maintain a network environment that prevents all external ingress and egress points with firewalls. Intrusion detection/prevention systems will be strategically placed to prevent or detect potential breaches.
Firewalls will be configured appropriately to prevent intrusions due to common protocol exposure; 

  
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	 	i.	Company personal information electronically stored or maintained by Bank will be encrypted consistent with [*] and the privacy and security requirements; 

 

	 	j.	Bank will ensure Bank personnel do not use any VPN to simultaneously connect machines on any Company system to any machines on any Bank or third party systems, without (i) using only a remote access method
consistent with industry best practices; 

  

	 	k.	Operating systems and network devices must be adequately “hardened” to the most appropriate secure configuration for Bank’s applications. Configuration management will include a monitoring process to
ensure that configurations remain secure; 

  

	 	l.	[*] 

  

	 	m.	[*] 

  

	 	n.	All access to Company confidential information will be on a password protected basis, with unique identifications plus passwords, which are not vendor-supplied default passwords, that are reasonably designed to maintain
the integrity of the security of the access controls, and implement secure user authentication protocols, including: 

  

	 	I)	control of user ids and other identifiers; 

  

	 	II)	a reasonably secure method of assigning and selecting passwords, or use of unique identifier technologies, [*]; 

  

	 	III)	control of data security passwords to ensure that such passwords are kept in a location and/or format that does not compromise the security of the data they protect; 

 

	 	IV)	restricting access to active users and active user accounts only; and 

  

	 	V)	blocking access to user identification after multiple unsuccessful attempts to gain access or the limitation placed on access for the particular system. 

 

	 	o.	For files containing personal information in a system that is connected to the internet, there must be reasonably up-to-date firewall
protection and operating system security patches, reasonably designed to maintain the integrity of the personal information. 

 8.
Back-up/Retention. Bank will regularly back-up systems used to provide services to Company to ensure adequate recovery capabilities. Back-ups will be
appropriately protected to ensure only authorized individuals are able to access the Company confidential information, including but not limited to encryption of data stored off-site in electronic media and
appropriate classification and protection of hard-copy records. If not separately backed up, Bank will secure any files containing Company confidential information against unauthorized access in accordance with the terms of this Agreement until the back-up tapes are recycled or properly destroyed so that information on them cannot practicably be read or reconstructed. 

  
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Treatment 
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 9. Patch Management. Bank will subscribe to and monitor notifications to the
United States computer emergency readiness team (“US-CERT”) or similar service, vendor notifications, and other recognized sources of information for critical patches. Bank will implement a process
to fix or patch identified security problems in an adequate and timely manner. Unless otherwise expressly agreed in writing, “timely” means that Bank will introduce a fix or patch as soon as commercially reasonable after Bank becomes aware
of the security problem or availability of a fix or patch in accordance with Bank policy. 
 10. Change Management. Bank will use a documented change
control process to ensure that access to its systems is controlled and recorded. Bank will promptly notify Company of any planned system configuration changes or other changes that would adversely affect the confidentiality, integrity, or
availability of Company confidential information. 
 11. SSAE 16. Unless otherwise agreed to in writing by the parties, Bank will provide Company
annually with a copy of latest Bank’s SSAE 16 or equivalent report. In the event the accounting firm performing the audit issues a qualified opinion due to a material weakness or significant deficiency, Bank will promptly advise Company of its
plan for remedying such material weakness or significant deficiency and use [*] to mitigate any potential damages or adverse consequences resulting from such material weakness or significant deficiency. 

12. PCI Compliance: Audits. To verify ongoing compliance with the PCI DSS Bank will engage
(i) a. qualified security assessor (“QSA”) to conduct, [*], an onsite compliance review; and (ii) an approved scanning Bank (“ASV”), [*], to conduct a network
security scan. On written request from Company, Bank will provide Company with copies of the foregoing reviews. Unless otherwise agreed to in writing the Bank will provide to Company annually a copy of Bank’s Attestation of Compliance Letter
(“AOCL”), or provide onsite access to the Bank’s Report of Compliance (“ROC”). In the event the Bank does not have a, AOCL or ROC marked as “compliant” due to some requirements in the AOCL or ROC marked “not
in place” and therefore Bank has not demonstrated full compliance with the PCI DSS, Bank will promptly advise Company of its plan for remediation of such deficiencies and use [*] to mitigate any potential damages or adverse consequences
resulting from such deficiencies. In any case, Bank will be in full compliance with the PCI DSS [*] from the receipt of the AOCL or ROC in which non-compliance was noted. 

13. Incident notification. Bank will immediately notify ([*]) the designated Company security contact by telephone and subsequently via written letter
of any actual security attacks or incidents related to Company confidential information. The notice shall include the approximate date and time of the occurrence and a summary of the relevant facts, including a description of measures being taken to
address the occurrence, and a monthly update noting the actions taken to address the security incident. 
 14. Annual Certification. On an annual
basis, or on Company request, Bank will certify in writing to Company that Bank is in compliance with its obligations under this Schedule 8.9. The certification will be made on a form provided by Company. 

  
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Treatment 
 Requested Under 17 C.F.R. Sections 200.80(b)(4) and 230.406 

 
 EXECUTION COPY 

Schedule 8.11 

Brokers 

  
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