Document:

Blueprint

 

 

 Exhibit 10.18

 

 

 

 

 

 

AGREEMENT AND PLAN OF MERGER

 

 

 

By and Among

 

 

 

AMERICAN RESOURCES CORPORATION,

 

and

 

EMPIRE KENTUCKY LAND, INC.

 

 

 

 

 

Dated as of February 12, 2019

 

 

1

 

AGREEMENT AND PLAN OF MERGER

 

This Agreement and Plan of Merger (this
“Agreement”), dated the 12 day of February, 2019, is by
and among AMERICAN RESOURCES
CORPORATION, a Florida
corporation (“American Resources”), and
EMPIRE KENTUCKY
LAND, INC., a Kentucky
corporation (“Company”). Capitalized terms used herein
(including in the immediately preceding sentence) and not otherwise
defined herein shall have the meanings set forth in Appendix A
hereof.

 

WHEREAS,
the parties intend for American Resources to acquire the Company,
on the terms and subject to the conditions set forth in this
Agreement;

 

WHEREAS,
in furtherance of such acquisition of the Company by American
Resources, and on the terms and subject to the conditions set forth
in this Agreement, Company shall be merged with and into American
Resources (the “Merger”), with American Resources
surviving the Merger and each outstanding share of the
Company’s common stock, no par value (the “Company
Common Stock”) (other than the Cancelled Shares and the
Dissenting Shares) shall be converted into the right to receive the
Merger Consideration;

 

WHEREAS,
the Board of Directors of the Company (the “Company
Board”) has unanimously: (a) determined that it is in the
best interests of the Company and the holders of shares of the
Company Common Stock, and declared it advisable, to enter into this
Agreement with American Resources; (b) approved the execution,
delivery, and performance of this Agreement and the consummation of
the transactions contemplated hereby, including the Merger; and (c)
resolved, subject to the terms and conditions set forth in this
Agreement, to recommend adoption of this Agreement by the
stockholders of the Company;

 

WHEREAS,
the Board of Directors of American Resources (the “American
Resources Board”) has unanimously: (a) determined that it is
in the best interests of American Resources, and its stockholders,
and declared it advisable, to enter into this Agreement; and (b)
approved the execution, delivery, and performance of this Agreement
and the consummation of the transactions contemplated hereby,
including the Merger;

 

WHEREAS,
the American Resources Board has resolved to recommend that the
holders of shares of American Resources’ common stock, par
value $0.0001 per share (the “American Resources Common
Stock”) approve the issuance of shares of American Resources
Common Stock in connection with the Merger on the terms and subject
to the conditions set forth in this Agreement (the “American
Resources Stock Issuance”);

 

WHEREAS,
for U.S. federal income Tax purposes, the parties intend that the
Merger qualify as a “reorganization” within the meaning
of Section 368(a) of the Internal Revenue Code of 1986, as amended
(the “Code”), and that this Agreement be, and is
hereby, adopted as a plan of reorganization within the meaning of
Section 368(a) of the Code; and

 

WHEREAS,
the parties desire to make certain representations, warranties,
covenants, and agreements in connection with the Merger and the
other transactions contemplated by this Agreement and also to
prescribe certain terms and conditions to the Merger.

 

‌            

NOW,
THEREFORE, in consideration of the foregoing and of the
representations, warranties, covenants, and agreements contained in
this Agreement, the parties, intending to be legally bound, agree
as follows:

 

1. The
Merger

 

1.01. The
Merger. On the terms and subject to the conditions set
forth in this Agreement, and in accordance with the Florida
Business Corporation Act (“FBCA”) and the Kentucky
Business Corporation Act (“KBCA”), at the Effective
Time: (i) the Company will merge with and into American Resources;
(ii) the separate corporate existence of the Company will cease;
and (iii) American Resources will continue its corporate existence
under the FBCA as the surviving corporation in the
Merger.

 

1.02. Closing.
Upon the terms and subject to the conditions set forth herein, the
closing of the Merger (the “Closing”) will take place
at Lexington, KY, as soon as practicable (and, in any event, within
three Business Days) after the satisfaction or, to the extent
permitted hereunder, waiver of all conditions to the Merger set
forth in Section 6 (other than those conditions that by their
nature are to be satisfied at the Closing, but subject to the
satisfaction or, to the extent permitted hereunder, waiver of all
such conditions), unless this Agreement has been terminated
pursuant to its terms or unless another time or date is agreed to
in writing by the parties hereto. The Closing shall be held at the
offices of McBrayer, McGinnis, Leslie & Kirkland PLLC, 201 East
Main Street, Suite 900, Lexington, Kentucky, unless another place
is agreed to in writing by the parties hereto, and the actual date
of the Closing is hereinafter referred to as the “Closing
Date.”

 

1.03. Effective
Time. Subject to the provisions
of this Agreement, on the Closing Date, the Company and American
Resources will cause a certificate of merger (the
“Certificate of Merger”) to be executed, acknowledged,
and filed with the Secretaries of State of the State of Florida and
the Commonwealth of Kentucky in accordance with the relevant
provisions of the FBCA and the KBCA and shall make all other
filings or recordings required under the FBCA and the KBCA. The
Merger will become effective at such time as the Certificate of
Merger has been duly filed with the Secretaries of State of the
State of Florida and the Commonwealth of Kentucky or at such later
date or time as may be agreed by the Company and American Resources
in writing and specified in the Certificate of Merger in accordance
with the FBCA and the KBCA (the effective time of the Merger being
hereinafter referred to as the
“Effective Time”).

 

1.04. Effects
of the Merger.
The Merger shall have the effects set in this Agreement and in the
applicable provisions of the FBCA and the KBCA. Without limiting
the generality of the foregoing, and subject thereto from and after
the Effective Time, the effects of the Merger shall be that all
property, rights, privileges, immunities, powers, franchises,
licenses, and authority of the Company shall vest in American
Resources, and all debts, liabilities, obligations, restrictions,
and duties of the Company shall become the debts, liabilities,
obligations, restrictions, and duties of American
Resources.

 

 

2

 

 

2. Effect
of the Merger on Capital Stock; Exchange of
Certificates.

 

2.01. Effect
of the Merger on Capital Stock.
At the Effective Time, as a result of the Merger and without any
action on the part of American Resources or the Company or the
holder of any capital stock of American Resources or the
Company:

 

(a). Cancellation
of Certain Company Common Stock. Each share of Company Common Stock that is owned
by the Company (as treasury stock or otherwise) or any of their
respective direct or indirect wholly-owned Subsidiaries as of
immediately prior to the Effective Time (the “Cancelled
Shares”) will automatically be cancelled and retired and will
cease to exist, and no consideration will be delivered in exchange
therefor.

 

(b). Conversion
of Company Common Stock. Each
share of Company Common Stock issued and outstanding immediately
prior to the Effective Time (other than Cancelled Shares and
Dissenting Shares) will be converted into the right to receive: (i)
two thousand (2,000) (the “Exchange Ratio”) shares of
American Resources Common Stock (the “Merger
Consideration”); and (ii) any dividends or other
distributions to which the holder thereof becomes entitled to upon
the surrender of such shares of Company Common Stock in accordance
with Section 2.02(g).

 

(c). Cancellation
of Shares. At the Effective
Time, all shares of Company Common Stock will no longer be
outstanding and all shares of Company Common Stock will be
cancelled and retired and will cease to exist, and each holder of:
(i) a certificate formerly representing any shares of Company
Common Stock (each, a “Certificate”); or (ii) any
book-entry shares which immediately prior to the Effective Time
represented shares of Company Common Stock (each, a
“Book-Entry Share”) will, subject to applicable Law in
the case of Dissenting Shares, cease to have any rights with
respect thereto, except the right to receive (A) the Merger
Consideration in accordance with Section 2.02 hereof, (B) any cash in lieu of fractional shares
of American Resources Common Stock payable pursuant to
Section 2.01(e), and (C) any dividends
or other distributions to which the holder thereof becomes entitled
to upon the surrender of such shares of Company Common Stock in
accordance with Section 2.02(g).

 

(d). Intentionally
omitted.

 

(e). Fractional
Shares. No certificates or
scrip representing fractional shares of American Resources Common
Stock shall be issued upon the conversion of Company Common Stock
pursuant to Section 2.01(b) and
such fractional share interests shall not entitle the owner thereof
to vote or to any other rights of a holder of shares of American
Resources Common Stock. Notwithstanding any other provision of this
Agreement, each holder of shares of Company Common Stock converted
pursuant to the Merger who would otherwise have been entitled to
receive a fraction of a share of American Resources Common Stock
(after taking into account all shares of Company Common Stock
exchanged by such holder) shall in lieu thereof, upon surrender of
such holder’s Certificates and Book-Entry Shares, receive in
cash (rounded to the nearest whole cent), without interest, an
amount equal to such fractional amount multiplied by the last
reported sale price of American Resources Common Stock on the
NASDAQ Stock Market (“Nasdaq”) or OTC listing
(“OTC”), as applicable, on the last complete trading
day prior to the date of the Effective Time.

 

2.02. Exchange
Procedures.

 

(a). Exchange
Agent; Exchange Fund. Prior to
the Effective Time, American Resources shall appoint an exchange
agent (the “Exchange Agent”) to act as the agent for
the purpose of paying the Merger Consideration for the Certificates
and the Book-Entry Shares. At or promptly following the Effective
Time, American Resources shall deposit with the Exchange Agent: (i)
certificates representing the shares of American Resources Common
Stock to be issued as Merger Consideration (or make appropriate
alternative arrangements if uncertificated shares of American
Resources Common Stock represented by book-entry shares will be
issued); and (ii) any cash sufficient to make payments in lieu of
fractional shares pursuant to Section 2.01(e). In addition, American Resources shall deposit or
cause to be deposited with the Exchange Agent, as necessary from
time to time after the Effective Time, any dividends or other
distributions, if any, to which the holders of Company Common
Shares may be entitled pursuant to Section 2.02(g)
for distributions or dividends, on the
American Resources Common Stock to which they are entitled to
pursuant to Section 2.01(b), with both a record and payment date after the
Effective Time and prior to the surrender of the Company Common
Shares in exchange for such American Resources Common Stock. Such
cash and shares of American Resources Common Stock, together with
any dividends or other distributions deposited with the Exchange
Agent pursuant to this Section 2.02(a), are referred to collectively in this Agreement as
the “Exchange Fund.”

 

(b). Procedures
for Surrender; No Interest.
Promptly after the Effective Time, American Resources shall send,
or shall cause the Exchange Agent to send, to each record holder of
shares of Company Common Stock at the Effective Time, whose Company
Common Stock was converted pursuant to Section 2.01(b)
into the right to receive the Merger
Consideration, a letter of transmittal and instructions (which
shall specify that the delivery shall be effected, and risk of loss
and title shall pass, only upon proper delivery of the Certificates
or transfer of the Book-Entry Shares to the Exchange Agent, and
which letter of transmittal will be in customary form and have such
other provisions as American Resources may reasonably specify) for
use in such exchange. Each holder of shares of Company Common Stock that have
been converted into the right to receive the Merger Consideration
shall be entitled to receive the Merger Consideration into which
such shares of Company Common Stock have been converted pursuant
to Section 2.01(b) in respect
of the Company Common Stock represented by a Certificate or
Book-Entry Share, any cash in lieu of fractional shares which the
holder has the right to receive pursuant to Section 2.01(e),
and any dividends or other
distributions pursuant to Section 2.02(g) upon: (i) surrender to the Exchange Agent of a
Certificate; or (ii) receipt of an “agent’s
message” by the Exchange Agent (or such other evidence, if
any, of transfer as the Exchange Agent may reasonably request) in
the case of Book-Entry Shares; in each case, together with a duly
completed and validly executed letter of transmittal and such other
documents as may reasonably be requested by the Exchange Agent. No
interest shall be paid or accrued upon the surrender or transfer of
any Certificate or Book-Entry Share. Upon payment of the Merger
Consideration pursuant to the provisions of this Section 2, each
Certificate or Certificates or Book-Entry Share or Book-Entry
Shares so surrendered or transferred, as the case may be, shall
immediately be cancelled.

 

(c). Investment
of Exchange Fund. Until
disbursed in accordance with the terms and conditions of this
Agreement, the cash in the Exchange Fund will be invested by the
Exchange Agent, as directed by American Resources. No losses with
respect to any investments of the Exchange Fund will affect the
amounts payable to the holders of Certificates or Book-Entry
Shares. Any income from investment of the Exchange Fund will be
payable to American Resources on demand.

 

(d). Payments
to Non-Registered Holders. If
any portion of the Merger Consideration is to be paid to a Person
other than the Person in whose name the surrendered Certificate or
the transferred Book-Entry Share, as applicable, is registered, it
shall be a condition to such payment that: (i) such Certificate
shall be properly endorsed or shall otherwise be in proper form for
transfer or such Book-Entry Share shall be properly transferred;
and (ii) the Person requesting such payment shall pay to the
Exchange Agent any transfer or other Tax required as a result of
such payment to a Person other than the registered holder of such
Certificate or Book-Entry Share, as applicable, or establish to the
reasonable satisfaction of the Exchange Agent that such Tax has
been paid or is not payable.

 

 

3

 

 

(e). Full
Satisfaction. All Merger
Consideration paid upon the surrender of Certificates or transfer
of Book-Entry Shares in accordance with the terms hereof shall be
deemed to have been paid in full satisfaction of all rights
pertaining to the shares of Company Common Stock formerly
represented by such Certificate or Book-Entry Shares, and from and
after the Effective Time, there shall be no further registration of
transfers of shares of Company Common Stock on the stock transfer
books of American Resources. If, after the Effective Time,
Certificates or Book-Entry Shares are presented to American
Resources, they shall be cancelled and exchanged as provided in
this Section 2.

 

(f). Termination
of Exchange Fund. Any portion
of the Exchange Fund that remains unclaimed by the holders of
shares of Company Common Stock six (6) months after the Effective
Time shall be returned to American Resources, upon demand, and any
such holder who has not exchanged shares of Company Common Stock
for the Merger Consideration in accordance with this Section
2.02 prior to that time shall
thereafter look only to American Resources (subject to abandoned
property, escheat, or other similar Laws), as general creditors
thereof, for payment of the Merger Consideration without any
interest. Notwithstanding the foregoing, American Resources shall
not be liable to any holder of shares of Company Common Stock for
any amounts paid to a public official pursuant to applicable
abandoned property, escheat, or similar Laws. Any amounts remaining
unclaimed by holders of shares of Company Common Stock one (1) year
after the Effective Time (or such earlier date, immediately prior
to such time when the amounts would otherwise escheat to or become
property of any Governmental Entity) shall become, to the extent
permitted by applicable Law, the property of American Resources
free and clear of any claims or interest of any Person previously
entitled thereto.

 

(g). Distributions
with Respect to Unsurrendered Shares of Company Common
Stock. All shares of American
Resources Common Stock to be issued pursuant to the Merger shall be
deemed issued and outstanding as of the Effective Time and whenever
a dividend or other distribution is declared by American Resources
in respect of the American Resources Common Stock, the record date
for which is after the Effective Time, that declaration shall
include dividends or other distributions in respect of all shares
issuable pursuant to this Agreement. No dividends or other
distributions in respect of the American Resources Common Stock
shall be paid to any holder of any unsurrendered Company Common
Share until the Certificate (or affidavit of loss in lieu of the
Certificate as provided in Section 2.06) or Book-Entry Share is surrendered for exchange
in accordance with this Section 2.02. Subject to the effect of applicable Laws,
following such surrender, there shall be issued or paid to the
holder of record of the whole shares of American Resources Common
Stock issued in exchange for Company Common Shares in accordance
with this Section 2.02, without
interest: (i) at the time of such surrender, the dividends or other
distributions with a record date after the Effective Time
theretofore payable with respect to such whole shares of American
Resources Common Stock and not paid; and (ii) at the appropriate
payment date, the dividends or other distributions payable with
respect to such whole shares of American Resources Common Stock
with a record date after the Effective Time but with a payment date
subsequent to surrender.

 

(h). Dissenting
Shares Merger Consideration.
Any portion of the Cash Consideration made available to the
Exchange Agent in respect of any Dissenting Shares shall be
returned to American Resources, upon demand.

 

2.03. Dissenting
Shares. Notwithstanding any
provision of this Agreement to the contrary, including
Section 2.01, shares of Company Common
Stock issued and outstanding immediately prior to the Effective
Time (other than Cancelled Shares) and held by a holder who has not
voted in favor of adoption of this Agreement or consented thereto
in writing and who is entitled to demand and has properly exercised
appraisal rights of such shares in accordance with the KBCA (such
shares of Company Common Stock being referred to collectively as
the “Dissenting Shares” until such time as such holder
fails to perfect or otherwise waives, withdraws, or loses such
holder’s appraisal rights under the KBCA with respect to such
shares) shall not be converted into a right to receive the Merger
Consideration, but instead shall be entitled to only such rights as
are granted by the KBCA; provided,
however, that if, after the
Effective Time, such holder fails to perfect, waives, withdraws, or
loses such holder’s right to appraisal pursuant to the KBCA
or if a court of competent jurisdiction shall determine that such
holder is not entitled to the relief provided by the KBCA, such
shares of Company Common Stock shall be treated as if they had been
converted as of the Effective Time into the right to receive the
Merger Consideration in accordance with Section 2.01(b),
without interest thereon, upon
surrender of such Certificate formerly representing such share or
transfer of such Book-Entry Share, as the case may be. The Company
shall provide American Resources prompt written notice of any
demands received by the Company for appraisal of shares of Company
Common Stock, any waiver or withdrawal of any such demand, and any
other demand, notice, or instrument delivered to the Company prior
to the Effective Time that relates to such demand, and American
Resources shall have the opportunity and right to direct all
negotiations and proceedings with respect to such demands. Except
with the prior written consent of American Resources, the Company
shall not make any payment with respect to, or settle, or offer to
settle, any such demands.

 

2.04. Adjustments.
Without limiting the other provisions of this Agreement, if at any
time during the period between the date of this Agreement and the
Effective Time, any change in the outstanding shares of capital
stock of the Company or the American Resources Common Stock shall
occur (other than the issuance of additional shares of capital
stock of the Company or American Resources as permitted by this
Agreement), including by reason of any reclassification,
recapitalization, stock split (including a reverse stock split), or
combination, exchange, readjustment of shares, or similar
transaction, or any stock dividend or distribution paid in stock,
the Exchange Ratio and any other amounts payable pursuant to this
Agreement shall be appropriately adjusted to reflect such
change; provided,
however, that this sentence
shall not be construed to permit American Resources or the Company
to take any action with respect to its securities that is
prohibited by the terms of this Agreement.

 

2.05. Intentionally
omitted.

 

2.06. Lost
Certificates. If any
Certificate shall have been lost, stolen, or destroyed, upon the
making of an affidavit of that fact by the Person claiming such
Certificate to be lost, stolen, or destroyed and, if required by
American Resources, the posting by such Person of a bond, in such
reasonable amount as American Resources may direct, as indemnity
against any claim that may be made against it with respect to such
Certificate, the Exchange Agent will issue, in exchange for such
lost, stolen, or destroyed Certificate, the Merger Consideration to
be paid in respect of the shares of Company Common Stock formerly
represented by such Certificate as contemplated under this Section
2.

 

2.07. Intentionally
omitted.

 

2.08. Tax
Treatment. The Merger is
intended to constitute a “reorganization” within the
meaning of Section 368(a) of the Code.

 

 

4

 

 

3. Representations
and Warranties of the Company. Except as
set forth in the correspondingly numbered Section of the Disclosure
Schedule that relates to such Section or in another Section of the
Company Disclosure Schedule to the extent that it is reasonably
apparent on the face of such disclosure that such disclosure is
applicable to such Section, the Company hereby represents and
warrants to American Resources as follows:

 

3.01. Organization;
Standing and Power.
The Company is a corporation, duly
organized and validly existing, under the Laws of its jurisdiction
of organization, and has the requisite corporate power and
authority to own, lease, and operate its assets and to carry on its
business as now conducted. The Company is duly qualified or
licensed to do business as a foreign corporation and is in good
standing in each jurisdiction where the character of the assets and
properties owned, leased, or operated by it or the nature of its
business makes such qualification or license necessary, except
where the failure to be so qualified or licensed or to be in good
standing, would not reasonably be expected to have, individually or
in the aggregate, a Company Material Adverse
Effect.

 

3.02. Capital
Structure.

 

(a). Capital
Stock. The authorized capital
stock of the Company consists of: (i) one thousand (1,000) shares
of Company Common Stock; and (ii) zero (0) shares of preferred
stock of the Company (the “Company Preferred Stock”).
As of the date of this Agreement: (A) 1,000 shares of Company
Common Stock were issued and outstanding (not including shares held
in treasury); (B) no shares of Company Common Stock were issued and
held by the Company in its treasury; and (C) no shares of Company
Preferred Stock were issued and outstanding or held by the Company
in its treasury. All of the outstanding shares of capital stock of
the Company are, and all shares of capital stock of the Company
which may be issued as contemplated or permitted by this Agreement
will be, when issued, duly authorized, validly issued, fully paid,
and non-assessable, and not subject to any pre-emptive rights. No
Subsidiary of the Company owns any shares of Company Common
Stock.

 

(b). Stock
Awards.

 

(i). As
of the date of this Agreement, no shares of Company Common Stock
were reserved for issuance pursuant to Company Equity Awards not
yet granted under the Company Stock Plans.

 

(ii). There
are no Contracts to which the Company is a party obligating the
Company to accelerate the vesting of any Company Equity Award as a
result of the transactions contemplated by this Agreement (whether
alone or upon the occurrence of any additional or subsequent
events). As of the date hereof, there are no outstanding: (A)
securities of the Company or any of its Subsidiaries convertible
into or exchangeable for Voting Debt or shares of capital stock of
the Company; (B) options, warrants, or other agreements or
commitments to acquire from the Company or any of its Subsidiaries,
or obligations of the Company or any of its Subsidiaries to issue,
any Voting Debt or shares of capital stock of (or securities
convertible into or exchangeable for shares of capital stock of)
the Company; or (C) restricted shares, restricted stock units,
stock appreciation rights, performance shares, profit participation
rights, contingent value rights, “phantom” stock, or
similar securities or rights that are derivative of, or provide
economic benefits based, directly or indirectly, on the value or
price of, any shares of capital stock of the Company, in each case
that have been issued by the Company or its Subsidiaries (the items
in clauses (A), (B), and (C), together with the capital stock of
the Company, being referred to collectively as “Company
Securities”). All outstanding shares of Company Common Stock,
all outstanding Company Equity Awards, and all outstanding shares
of capital stock, voting securities, or other ownership interests
in any Subsidiary of the Company, have been issued or granted, as
applicable, in compliance in all material respects with all
applicable securities Laws.

 

(iii). There
are no outstanding Contracts requiring the Company or any of its
Subsidiaries to repurchase, redeem, or otherwise acquire any
Company Securities or Company Subsidiary Securities. Neither the
Company nor any of its Subsidiaries is a party to any voting
agreement with respect to any Company Securities or Company
Subsidiary Securities.

 

(c). Voting
Debt. No bonds, debentures,
notes, or other indebtedness issued by the Company or any of its
Subsidiaries: (i) having the right to vote on any matters on which
stockholders or equity holders of the Company or any of its
Subsidiaries may vote (or which is convertible into, or
exchangeable for, securities having such right); or (ii) the value
of which is directly based upon or derived from the capital stock,
voting securities, or other ownership interests of the Company or
any of its Subsidiaries, are issued or outstanding (collectively,
“Voting Debt”).

 

(d). Company
Subsidiary Securities. As of
the date hereof, there are no outstanding: (i) securities of the
Company or any of its Subsidiaries convertible into or exchangeable
for Voting Debt, capital stock, voting securities, or other
ownership interests in any Subsidiary of the Company; (ii) options,
warrants, or other agreements or commitments to acquire from the
Company or any of its Subsidiaries, or obligations of the Company
or any of its Subsidiaries to issue, any Voting Debt, capital
stock, voting securities, or other ownership interests in (or
securities convertible into or exchangeable for capital stock,
voting securities, or other ownership interests in) any Subsidiary
of the Company; or (iii) restricted shares, restricted stock units,
stock appreciation rights, performance shares, profit participation
rights, contingent value rights, “phantom” stock, or
similar securities or rights that are derivative of, or provide
economic benefits based, directly or indirectly, on the value or
price of, any capital stock or voting securities of, or other
ownership interests in, any Subsidiary of the Company, in each case
that have been issued by a Subsidiary of the Company (the items in
clauses (i), (ii), and (iii), together with the capital stock,
voting securities, or other ownership interests of such
Subsidiaries, being referred to collectively as “Company
Subsidiary Securities”).

 

3.03. Authority;
Non-Contravention; Governmental Consents; Board
Approval.

 

(a). Authority.
The Company has all requisite corporate power and authority to
enter into and to perform its obligations under this Agreement and,
subject to, in the case of the consummation of the Merger, adoption
of this Agreement by the affirmative vote or consent of the holders
of a majority of the outstanding shares of Company Common Stock
(the “Requisite Company Vote”), to consummate the
transactions contemplated by this Agreement. The execution and
delivery of this Agreement by the Company and the consummation by
the Company of the transactions contemplated hereby have been duly
authorized by all necessary corporate action on the part of the
Company and no other corporate proceedings on the part of the
Company are necessary to authorize the execution and delivery of
this Agreement or to consummate the Merger and the other
transactions contemplated hereby, subject only, in the case of
consummation of the Merger, to the receipt of the Requisite Company
Vote. The Requisite Company Vote is the only vote or consent of the
holders of any class or series of the Company’s capital stock
necessary to approve and adopt this Agreement, approve the Merger,
and consummate the Merger and the other transactions contemplated
hereby. This Agreement has been duly executed and delivered by the
Company and, assuming due execution and delivery by American
Resources, constitutes the legal, valid, and binding obligation of
the Company, enforceable against the Company in accordance with its
terms, except as such enforceability may be limited by bankruptcy,
insolvency, moratorium, and other similar Laws affecting
creditors’ rights generally and by general principles of
equity.

 

 

5

 

 

(b). Non-Contravention.
The execution, delivery, and performance of this Agreement by the
Company, and the consummation by the Company of the transactions
contemplated by this Agreement, including the Merger, do not and
will not: (i) subject to obtaining the Requisite Company Vote,
contravene or conflict with, or result in any violation or breach
of, the Charter Documents of the Company or any of its
Subsidiaries; (ii) assuming that all Consents contemplated
by Section 3.03(c) have been obtained
or made and, in the case of the consummation of the Merger,
obtaining the Requisite Company Vote, conflict with or violate any
Law applicable to the Company, any of its Subsidiaries, or any of
their respective properties or assets; (iii) result in any breach
of or constitute a default (or an event that with notice or lapse
of time or both would become a default) under, result in the
Company’s or any of its Subsidiaries’ loss of any
benefit or the imposition of any additional payment or other
liability under, or alter the rights or obligations of any third
party under, or give to any third party any rights of termination,
amendment, acceleration, or cancellation, or require any Consent
under, any Contract to which the Company or any of its Subsidiaries
is a party or otherwise bound as of the date hereof; or (iv) result
in the creation of a Lien (other than Permitted Liens) on any of
the properties or assets of the Company or any of its Subsidiaries,
except, in the case of each of clauses (ii), (iii), and (iv), for
any conflicts, violations, breaches, defaults, loss of benefits,
additional payments or other liabilities, alterations,
terminations, amendments, accelerations, cancellations, or Liens
that, or where the failure to obtain any Consents, in each case,
would not reasonably be expected to have, individually or in the
aggregate, a Company Material Adverse Effect.

 

(c). Governmental
Consents. Except as set forth
on Section 3.03(c) of the Disclosure Schedule, no consent,
approval, order, or authorization of, or registration, declaration,
or filing with, or notice to (any of the foregoing being a
“Consent”), any supranational, national, state,
municipal, local, or foreign government, any instrumentality,
subdivision, court, administrative agency or commission, or other
governmental authority, or any quasi-governmental or private body
exercising any regulatory or other governmental or
quasi-governmental authority (a “Governmental Entity”)
is required to be obtained or made by the Company in connection
with the execution, delivery, and performance by the Company of
this Agreement or the consummation by the Company of the Merger and
other transactions contemplated hereby.

 

(d). Board
Approval. The Company Board, by
unanimous written consent not subsequently rescinded or modified in
any way, has: (i) determined that this Agreement and the
transactions contemplated hereby, including the Merger, upon the
terms and subject to the conditions set forth herein, are fair to,
and in the best interests of, the Company and the Company’s
stockholders; (ii) approved and declared advisable this Agreement,
including the execution, delivery, and performance thereof, and the
consummation of the transactions contemplated by this Agreement,
including the Merger, upon the terms and subject to the conditions
set forth herein; (iii) directed that this Agreement be submitted
to a vote of the Company’s stockholders for adoption at the
Company Stockholders Meeting; and (iv) resolved to recommend that
Company stockholders vote in favor of adoption of this Agreement in
accordance with the FBCA and the KBCA (collectively, the
“Company Board Recommendation”).

 

3.04. Intentionally
omitted.

 

3.05. Absence
of Certain Changes or Events.
Since the date of the Company Balance Sheet, except in connection
with the execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby, the business
of the Company and each of its Subsidiaries has been conducted in
the ordinary course of business consistent with past practice and
there has not been or occurred:

 

(a). any
Company Material Adverse Effect or any event, condition, change, or
effect that could reasonably be expected to have, individually or
in the aggregate, a Company Material Adverse Effect;
or

 

(b). any
event, condition, action, or effect that, if taken during the
period from the date of this Agreement through the Effective Time,
would constitute a breach of Section 5.01.

 

3.06. Taxes.

 

(a). Tax
Returns and Payment of Taxes.
The Company and each of its Subsidiaries have duly and timely filed
or caused to be filed (taking into account any valid extensions)
all material Tax Returns required to be filed by them. Such Tax
Returns are true, complete, and correct in all material respects.
Neither Company nor any of its Subsidiaries is currently the
beneficiary of any extension of time within which to file any Tax
Return other than extensions of time to file Tax Returns obtained
in the ordinary course of business consistent with past practice.
All material Taxes due and owing by the Company or any of its
Subsidiaries (whether or not shown on any Tax Return) have been
timely paid or, where payment is not yet due, the Company has made
an adequate provision for such Taxes in the Company’s
financial statements. The Company’s most recent financial
statements reflect an adequate reserve for all material Taxes
payable by the Company and its Subsidiaries through the date of
such financial statements. Neither the Company nor any of its
Subsidiaries has incurred any material Liability for Taxes since
the date of the Company’s most recent financial statements
outside of the ordinary course of business or otherwise
inconsistent with past practice.

 

(b). Withholding.
The Company and each of its Subsidiaries have withheld and timely
paid each material Tax required to have been withheld and paid in
connection with amounts paid or owing to any Company Employee,
creditor, customer, stockholder, or other party (including, without
limitation, withholding of Taxes pursuant to Sections 1441 and 1442
of the Code or similar provisions under any state, local, and
foreign Laws), and materially complied with all information
reporting and backup withholding provisions of applicable
Law.

 

(c). Liens.
There are no Liens for material Taxes upon the assets of the
Company or any of its Subsidiaries other than for current Taxes not
yet due and payable or for Taxes that are being contested in good
faith by appropriate proceedings and for which adequate reserves
has been made in the Company’s most recent financial
statements.

 

(d). Tax
Deficiencies and Audits. No
deficiency for any material amount of Taxes which has been
proposed, asserted, or assessed in writing by any taxing authority
against the Company or any of its Subsidiaries remains unpaid.
There are no waivers or extensions of any statute of limitations
currently in effect with respect to Taxes of the Company or any of
its Subsidiaries. There are no audits, suits, proceedings,
investigations, claims, examinations, or other administrative or
judicial proceedings ongoing or pending with respect to any
material Taxes of the Company or any of its
Subsidiaries.

 

 

6

 

 

(e). Tax
Jurisdictions. No claim has
ever been made in writing by any taxing authority in a jurisdiction
where the Company and its Subsidiaries do not file Tax Returns that
the Company or any of its Subsidiaries is or may be subject to Tax
in that jurisdiction.

 

(f). Tax
Rulings. Neither the Company
nor any of its Subsidiaries has requested or is the subject of or
bound by any private letter ruling, technical advice memorandum, or
similar ruling or memorandum with any taxing authority with respect
to any material Taxes, nor is any such request
outstanding.

 

3.07. Intellectual
Property.

 

(a). Company-Owned
IP. The Company has no
Company-Owned IP that is the subject of any issuance, registration,
certificate, application, or other filing by, to or with any
Governmental Authority or authorized private registrar, including
patents, patent applications, trademark registrations and pending
applications for registration, copyright registrations and pending
applications for registration, and internet domain name
registrations.

 

(b). Right
to Use; Title. The Company or
one of its Subsidiaries is the sole and exclusive owner of all
right, title, and interest in and to the Company-Owned IP, and has
the valid and enforceable right to use all other Intellectual
Property used in or necessary for the conduct of the business of
the Company and its Subsidiaries as currently conducted and as
proposed to be conducted (“Company IP”), in each case,
free and clear of all Liens other than Permitted Liens, except as
would not reasonably be expected to have, individually or in the
aggregate, a Company Material Adverse Effect.

 

(c). Validity
and Enforceability. The Company
and its Subsidiaries’ rights in the Company-Owned IP are
valid, subsisting, and enforceable, except as would not reasonably
be expected to have, individually or in the aggregate, a Company
Material Adverse Effect. The Company and each of its Subsidiaries
have taken reasonable steps to maintain the Company IP and to
protect and preserve the confidentiality of all trade secrets
included in the Company IP, except where the failure to take such
actions would not reasonably be expected to have, individually or
in the aggregate, a Company Material Adverse
Effect.

 

(d). Non-Infringement.
Except as would not be reasonably expected to have, individually or
in the aggregate, a Company Material Adverse Effect: (i) the
conduct of the businesses of the Company and any of its
Subsidiaries has not infringed, misappropriated, or otherwise
violated, and is not infringing, misappropriating, or otherwise
violating, any Intellectual Property of any other Person; and (ii)
to the Knowledge of the Company, no third party is infringing upon,
violating, or misappropriating any Company IP.

 

(e). IP
Legal Actions and Orders. There
are no Legal Actions pending or, to the Knowledge of the Company,
threatened: (i) alleging any infringement, misappropriation, or
violation by the Company or any of its Subsidiaries of the
Intellectual Property of any Person; or (ii) challenging the
validity, enforceability, or ownership of any Company-Owned IP or
the Company or any of its Subsidiaries’ rights with respect
to any Company IP, in each case except for such Legal Actions that
would not reasonably be expected to have, individually or in the
aggregate, a Company Material Adverse Effect. The Company and its
Subsidiaries are not subject to any outstanding Order that
restricts or impairs the use of any Company-Owned IP, except where
compliance with such Order would not reasonably be expected to
have, individually or in the aggregate, a Company Material Adverse
Effect.

 

3.08. Compliance;
Permits.

 

(a). Compliance.
The Company and each of its Subsidiaries is in material compliance
with all Laws or Orders applicable to the Company or any of its
Subsidiaries or by which the Company or any of its Subsidiaries or
any of their respective businesses or properties is bound. Since
December 31, 2018, no Governmental Entity has issued any notice or
notification stating that the Company or any of its Subsidiaries is
not in compliance with any Law in any material
respect.

 

(b). Permits.
The Company and its Subsidiaries hold, to the extent necessary to
operate their respective businesses as such businesses are being
operated as of the date hereof, all permits, licenses,
registrations, variances, clearances, consents, commissions,
franchises, exemptions, orders, authorizations, and approvals from
Governmental Entities (collectively, “Permits”), except
for any Permits for which the failure to obtain or hold would not
reasonably be expected to have, individually or in the aggregate, a
Company Material Adverse Effect. No suspension, cancellation,
non-renewal, or adverse modifications of any Permits of the Company
or any of its Subsidiaries is pending or, to the Knowledge of the
Company, threatened, except for any such suspension or cancellation
which would not reasonably be expected to have, individually or in
the aggregate, a Company Material Adverse
Effect.

 

3.09. Litigation.
There is no Legal Action pending, or to the Knowledge of the
Company, threatened against the Company or any of its Subsidiaries
or any of their respective properties or assets or, to the
Knowledge of the Company, any officer or director of the Company or
any of its Subsidiaries in their capacities as such. None of the
Company or any of its Subsidiaries or any of their respective
properties or assets is subject to any order, writ, assessment,
decision, injunction, decree, ruling, or judgment
(“Order”) of a Governmental Entity or arbitrator,
whether temporary, preliminary, or permanent, which would
reasonably be expected to have, individually or in the aggregate, a
Company Material Adverse Effect.

 

3.10. Brokers’
and Finders’ Fees.
Neither the Company nor any of its Subsidiaries has incurred, nor
will it incur, directly or indirectly, any liability for investment
banker, brokerage, or finders’ fees or agents’
commissions, or any similar charges in connection with this
Agreement or any transaction contemplated by this
Agreement.

 

3.11. Related
Person Transactions. There are
no Contracts, transactions, arrangements, or understandings between
the Company or any of its Subsidiaries, on the one hand, and any
Affiliate (including any director, officer, or employee) thereof or
any holder of 5% or more of the shares of Company Common Stock, but
not including any wholly-owned Subsidiary of the Company, on the
other hand.

 

 

7

 

 

3.12. Employee
Matters. The Company has no employees and no employee
benefit plans.

 

3.13. Real
Property and Personal Property Matters.

 

(a). Owned
Real Estate. The Company has
good and marketable title to the Owned Real Estate free and clear
of any Liens other than the Permitted Liens. Section 3.13(a) of the
Company Disclosure Schedule contains a true and complete list of
the Owned Real Estate as of the date hereof.

 

(b). Leased
Real Estate. Section 3.13(b) of
the Company Disclosure Schedule contains a true and complete list
of all Leases (including all amendments, extensions, renewals,
guaranties, and other agreements with respect thereto) as of the
date hereof for each such Leased Real Estate (including the date
and name of the parties to such Lease document). The Company has
made available to American Resources a true and complete copy of
each such Lease. Except as would not reasonably be expected to
have, individually or in the aggregate, a Company Material Adverse
Effect or as set forth on Section 3.13(b) of the Company Disclosure
Schedule, with respect to each of the Leases: (i) such Lease is
legal, valid, binding, enforceable, and in full force and effect;
(ii) neither the Company nor any of its Subsidiaries nor, to the
Knowledge of the Company, any other party to the Lease, is in
breach or default under such Lease, and no event has occurred or
circumstance exists which, with or without notice, lapse of time,
or both, would constitute a breach or default under such Lease;
(iii) the Company’s or its Subsidiary’s possession and
quiet enjoyment of the Leased Real Estate under such Lease has not
been disturbed, and to the Knowledge of the Company, there are no
disputes with respect to such Lease; and (iv) there are no Liens on
the estate created by such Lease other than Permitted
Liens.

 

(c). Real
Estate Used in the Business.
The Owned Real Estate identified in Section 3.13(a) of the Company
Disclosure Schedule and the Leased Real Estate identified in
Section 3.13(b) of the Company Disclosure Schedule comprise all of
the real property of the Company or any of its
Subsidiaries.

 

(d). Personal
Property. Except as would not
reasonably be expected to have, individually or in the aggregate, a
Company Material Adverse Effect, the Company and each of its
Subsidiaries are in possession of and have good and marketable
title to, or valid leasehold interests in or valid rights under
contract to use, the machinery, equipment, furniture, fixtures, and
other tangible personal property and assets owned, leased, or used
by the Company or any of its Subsidiaries, free and clear of all
Liens other than Permitted Liens.

 

3.14. Intentionally
omitted.

 

3.15. Material
Contracts.

 

(a). Material
Contracts. For purposes of this
Agreement, “Company Material Contract” shall mean the
following to which the Company or any of its Subsidiaries is a
party or any of the respective assets are bound (excluding any
Leases):

 

(i). any
Contract providing for indemnification or any guaranty by the
Company or any Subsidiary thereof, in each case that is material to
the Company and its Subsidiaries, taken as a whole, other than (A)
any guaranty by the Company or a Subsidiary thereof of any of the
obligations of (1) the Company or another wholly-owned Subsidiary
thereof or (2) any Subsidiary (other than a wholly-owned
Subsidiary) of the Company that was entered into in the ordinary
course of business pursuant to or in connection with a customer
Contract, or (B) any Contract providing for indemnification of
customers or other Persons pursuant to Contracts entered into in
the ordinary course of business;

 

(ii). any
Contract that purports to limit in any material respect the right
of the Company or any of its Subsidiaries (or, at any time after
the consummation of the Merger, American Resources or any of its
Subsidiaries) (A) to engage in any line of business, (B) compete
with any Person or solicit any client or customer, or (C) operate
in any geographical location;

 

(iii). any
Contract relating to the disposition or acquisition, directly or
indirectly (by merger, sale of stock, sale of assets, or
otherwise), by the Company or any of its Subsidiaries after the
date of this Agreement of assets or capital stock or other equity
interests of any Person;

 

(iv). any
Contract that grants any right of first refusal, right of first
offer, or similar right with respect to any material assets,
rights, or properties of the Company or any of its
Subsidiaries;

 

(v). any
Contract that contains any provision that requires the purchase of
all or a material portion of the Company’s or any of its
Subsidiaries’ requirements for a given product or service
from a given third party, which product or service is material to
the Company and its Subsidiaries, taken as a whole;

 

(vi). any
Contract that obligates the Company or any of its Subsidiaries to
conduct business on an exclusive or preferential basis or that
contains a “most favored nation” or similar covenant
with any third party or upon consummation of the Merger or Second
Merger will obligate American Resources or any of its Subsidiaries
to conduct business on an exclusive or preferential basis or that
contains a “most favored nation” or similar covenant
with any third party;

 

(vii). any
partnership, joint venture, limited liability company agreement, or
similar Contract relating to the formation, creation, operation,
management, or control of any material joint venture, partnership,
or limited liability company, other than any such Contact solely
between the Company and its wholly-owned Subsidiaries or among the
Company’s wholly-owned Subsidiaries;

 

 

8

 

 

(viii). any
mortgages, indentures, guarantees, loans, or credit agreements,
security agreements, or other Contracts, in each case relating to
indebtedness for borrowed money, whether as borrower or lender, in
each case in excess of $50,000.00, other than (A) accounts
receivables and payables, and (B) loans to direct or indirect
wholly-owned Subsidiaries of the Company;

 

(ix). any
employee collective bargaining agreement or other Contract with any
labor union;

 

(x). any
Company IP Agreement, other than licenses for shrinkwrap,
clickwrap, or other similar commercially available off-the-shelf
software that has not been modified or customized by a third party
for the Company or any of its Subsidiaries; or

 

(xi). any
other Contract under which the Company or any of its Subsidiaries
is obligated to make payment or incur costs in excess of $50.000.00
in any year and which is not otherwise described
above.

 

(b). Schedule
of Material Contracts; Documents. Section 3.15(b) of the Company Disclosure
Schedule sets forth a true and complete list as of the date hereof
of all Company Material Contracts. The Company has made available
to American Resources correct and complete copies of all Company
Material Contracts, including any amendments
thereto.

 

(c). No
Breach. (i) All the Company
Material Contracts are legal, valid, and binding on the Company or
its applicable Subsidiary, enforceable against it in accordance
with its terms, and is in full force and effect; (ii) neither the
Company nor any of its Subsidiaries nor, to the Knowledge of the
Company, any third party has violated any provision of, or failed
to perform any obligation required under the provisions of, any
Company Material Contract; and (iii) neither the Company nor any of
its Subsidiaries nor, to the Knowledge of the Company, any third
party is in breach, or has received written notice of breach, of
any Company Material Contract.

 

3.16. Insurance.
Except as would not, individually or in the aggregate, reasonably
be expected to have a Company Material Adverse Effect, all
insurance policies of the Company and its Subsidiaries are in full
force and effect and provide insurance in such amounts and against
such risks as the Company reasonably has determined to be prudent,
taking into account the industries in which the Company and its
Subsidiaries operate, and as is sufficient to comply with
applicable Law. Except as would not, individually or in the
aggregate, reasonably be expected to have a Company Material
Adverse Effect, neither the Company nor any of its Subsidiaries is
in breach or default, and neither the Company nor any of its
Subsidiaries has taken any action or failed to take any action
which, with notice or the lapse of time, would constitute such a
breach or default, or permit termination or modification of, any of
such insurance policies. Except as would not, individually or in
the aggregate, reasonably be expected to have a Company Material
Adverse Effect and to the Knowledge of the Company: (i) no insurer
of any such policy has been declared insolvent or placed in
receivership, conservatorship, or liquidation; and (ii) no notice
of cancellation or termination, other than pursuant to the
expiration of a term in accordance with the terms thereof, has been
received with respect to any such policy.

 

4. Representations
and Warranties of American Resources. Except: (a)
as disclosed in the American Resources SEC Documents and that is
reasonably apparent on the face of such disclosure to be applicable
to the representation and warranty set forth herein (other than any
disclosures contained or referenced therein under the captions
“Risk Factors,” “Forward-Looking
Statements,” “Quantitative and Qualitative Disclosures
About Market Risk,” and any other disclosures contained or
referenced therein of information, factors, or risks that are
predictive, cautionary, or forward-looking in nature); or (b) as
set forth in the correspondingly numbered Section of the American
Resources Disclosure Schedule that relates to such Section or in
another section of the American Resources Disclosure Schedule to
the extent that it is reasonably apparent on the face of such
disclosure that such disclosure is applicable to such Section;
American Resources represents and warrants to the Company as
follows:

 

4.01. Organization;
Standing and Power; Charter Documents;
Subsidiaries.

 

(a). Organization;
Standing and Power. Each of
American Resources and its Subsidiaries is a corporation, limited
liability company, or other legal entity duly organized, validly
existing, and in good standing (to the extent that the concept of
“good standing” is applicable in the case of any
jurisdiction outside the United States) under the Laws of its
jurisdiction of organization, and has the requisite corporate,
limited liability company, or other organizational, as applicable,
power and authority to own, lease, and operate its assets and to
carry on its business as now conducted. Each of American Resources
and its Subsidiaries is duly qualified or licensed to do business
as a foreign corporation, limited liability company, or other legal
entity and is in good standing (to the extent that the concept of
“good standing” is applicable in the case of any
jurisdiction outside the United States) in each jurisdiction where
the character of the assets and properties owned, leased, or
operated by it or the nature of its business makes such
qualification or license necessary, except where the failure to be
so qualified or licensed or to be in good standing, would not
reasonably be expected to have, individually or in the aggregate,
an American Resources Material Adverse Effect.

 

(b). Charter
Documents. The copies of the
Certificate of Incorporation and By-Laws of American Resources as
most recently filed with the American Resources SEC Documents are
true, correct, and complete copies of such documents as in effect
as of the date of this Agreement. American Resources is not in
violation of any of the provisions of its Charter
Documents.

 

(c). Subsidiaries.
All of the outstanding shares of capital stock of, or other equity
or voting interests in, each Subsidiary of American Resources have
been validly issued and are owned by American Resources, directly
or indirectly, free of pre-emptive rights, are fully paid and
non-assessable, and are free and clear of all Liens, including any
restriction on the right to vote, sell, or otherwise dispose of
such capital stock or other equity or voting interests, except for
any Liens: (i) imposed by applicable securities Laws; or (ii)
arising pursuant to the Charter Documents of any non-wholly-owned
Subsidiary of American Resources. Except for the capital stock of,
or other equity or voting interests in, its Subsidiaries, American
Resources does not own, directly or indirectly, any capital stock
of, or other equity or voting interests in, any
Person.

 

 

9

 

 

4.02. Capital
Structure.

 

(a). Capital
Stock. The authorized capital
stock of American Resources consists of: (i) 230,000,000 shares of
American Resources Common Stock; (ii) 5,000,000 shares of Series A
Preferred stock, par value $0.0001 per share, of American Resources
(the “American Resources Series A Preferred Stock”);
and (iii) 20,000,000 shares of Series C Preferred stock, par value
$0.0001 per share, of American Resources (the “American
Resources Series C Preferred Stock”). As of the date of this
Agreement and immediately prior to the share offering contemplated
under American Resources Form S1/A: (A) 18,639,433 shares of
American Resources Common Stock were issued and outstanding (not
including shares held in treasury); (B) 452,729 shares of American
Resources Series A Preferred Stock were issued and outstanding; and
(D) 50,000 shares of American Resources Series C Preferred Stock
were issued and outstanding; and through the date hereof, no
additional shares of American Resources Common Stock or shares of
American Resources Preferred Stock have been issued other than the
issuance of shares of American Resources Common Stock upon the
exercise or settlement of American Resources Equity Awards. For all
classes of common stock and preferred stock of American Resources,
no shares are issued and held by American Resources in its treasury
All of the outstanding shares of capital stock of American
Resources are, and all shares of capital stock of American
Resources which may be issued as contemplated or permitted by this
Agreement, including the shares of American Resources Common Stock
constituting the Merger Consideration, will be, when issued, duly
authorized, validly issued, fully paid, and non-assessable, and not
subject to any pre-emptive rights. No Subsidiary of American
Resources owns any shares of American Resources Common
Stock.

 

(b). Stock
Awards.

 

(i). As
of the date of this Agreement, an aggregate of 3,363,170 shares of
American Resources Common Stock were reserved for issuance pursuant
to American Resources Equity Awards not yet granted under the
American Resources Stock Plans. As of the date of this Agreement,
636,830 shares of American Resources Common Stock were reserved for
issuance pursuant to outstanding American Resources Stock Options
and no shares of American Resources Restricted Shares were issued
and outstanding. Except as provided in this Agreement, since
September 12, 2018 and through the date hereof, no American
Resources Equity Awards have been granted and no additional shares
of American Resources Common Stock have become subject to issuance
under the American Resources Stock Plans. All shares of American
Resources Common Stock subject to issuance under the American
Resources Stock Plans upon issuance in accordance with the terms
and conditions specified in the instruments pursuant to which they
are issuable, will be duly authorized, validly issued, fully paid,
and non-assessable.

 

(ii). Other
than the American Resources Equity Awards, as of the date hereof,
there are no outstanding (A) securities of American Resources or
any of its Subsidiaries convertible into or exchangeable for
American Resources Voting Debt or shares of capital stock of
American Resources, (B) options, warrants, or other agreements or
commitments to acquire from American Resources or any of its
Subsidiaries, or obligations of American Resources or any of its
Subsidiaries to issue, any American Resources Voting Debt or shares
of capital stock of (or securities convertible into or exchangeable
for shares of capital stock of) American Resources, or (C)
restricted shares, restricted stock units, stock appreciation
rights, performance shares, profit participation rights, contingent
value rights, “phantom” stock, or similar securities or
rights that are derivative of, or provide economic benefits based,
directly or indirectly, on the value or price of, any shares of
capital stock of American Resources, in each case that have been
issued by American Resources or its Subsidiaries (the items in
clauses (A), (B), and (C), together with the capital stock of
American Resources, being referred to collectively as
“American Resources Securities”). All outstanding
shares of American Resources Common Stock, all outstanding American
Resources Equity Awards, and all outstanding shares of capital
stock, voting securities, or other ownership interests in any
Subsidiary of American Resources, have been issued or granted, as
applicable, in compliance in all material respects with all
applicable securities Laws.

 

(iii). As
of the date hereof, there are no outstanding Contracts requiring
American Resources or any of its Subsidiaries to repurchase,
redeem, or otherwise acquire any American Resources Securities or
American Resources Subsidiary Securities. Neither American
Resources nor any of its Subsidiaries is a party to any voting
agreement with respect to any American Resources Securities or
American Resources Subsidiary Securities.

 

(c). Voting
Debt. No bonds, debentures,
notes, or other indebtedness issued by American Resources or any of
its Subsidiaries: (i) having the right to vote on any matters on
which stockholders or equity holders of American Resources or any
of its Subsidiaries may vote (or which is convertible into, or
exchangeable for, securities having such right); or (ii) the value
of which is directly based upon or derived from the capital stock,
voting securities, or other ownership interests of American
Resources or any of its Subsidiaries, are issued or outstanding
(collectively, “American Resources Voting
Debt”).

 

(d). American
Resources Subsidiary Securities. As of the date hereof, there are no outstanding:
(i) securities of American Resources or any of its Subsidiaries
convertible into or exchangeable for American Resources Voting
Debt, capital stock, voting securities, or other ownership
interests in any Subsidiary of American Resources; (ii) options,
warrants, or other agreements or commitments to acquire from
American Resources or any of its Subsidiaries, or obligations of
American Resources or any of its Subsidiaries to issue, any
American Resources Voting Debt, capital stock, voting securities,
or other ownership interests in (or securities convertible into or
exchangeable for capital stock, voting securities, or other
ownership interests in) any Subsidiary of American Resources; or
(iii) restricted shares, restricted stock units, stock appreciation
rights, performance shares, profit participation rights, contingent
value rights, “phantom” stock, or similar securities or
rights that are derivative of, or provide economic benefits based,
directly or indirectly, on the value or price of, any capital stock
or voting securities of, or other ownership interests in, any
Subsidiary of American Resources, in each case that have been
issued by a Subsidiary of American Resources (the items in clauses
(i), (ii), and (iii), together with the capital stock, voting
securities, or other ownership interests of such Subsidiaries,
being referred to collectively as “American Resources
Subsidiary Securities”).

 

4.03. Authority;
Non-Contravention; Governmental Consents; Board
Approval.

 

(a). Authority.
American Resources has all requisite corporate power or limited
liability power, as applicable, and authority to enter into and to
perform its obligations under this Agreement and, subject to, in
the case of the consummation of the Merger, the need to obtain the
affirmative vote or consent of 9,506,111 of the outstanding shares
of the American Resources Common Stock to the American Resources
Stock Issuance (the “Requisite American Resources
Vote”), to consummate the transactions contemplated by this
Agreement. The execution and delivery of this Agreement by American
Resources and the consummation by American Resources of the
transactions contemplated by this Agreement have been duly
authorized by all necessary corporate or limited liability action,
as applicable, on the part of American Resources and no other
corporate or limited liability proceedings, as applicable, on the
part of American Resources are necessary to authorize the execution
and delivery of this Agreement or to consummate the Merger, the
American Resources Stock Issuance, and the other transactions
contemplated by this Agreement, subject only, in the case of
consummation of the Merger, to the need to obtain the Requisite
American Resources Vote. This Agreement has been duly executed and
delivered by American Resources and, assuming due execution and
delivery by the Company, constitutes the legal, valid, and binding
obligation of American Resources, enforceable against American
Resources in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency,
moratorium, and other similar Laws affecting creditors’
rights generally and by general principles of
equity.

 

 

10

 

 

(b). Non-Contravention.
The execution, delivery, and performance of this Agreement by
American Resources and the consummation by American Resources of
the transactions contemplated by this Agreement, do not and will
not: (i) contravene or conflict with, or result in any violation or
breach of, American Resources’ Charter Documents; (ii)
assuming that all of the Consents contemplated by Section
4.03(c) have been obtained or made,
and in the case of the consummation of the Merger, obtaining the
Requisite American Resources Vote, conflict with or violate any Law
applicable to American Resources or any of its properties or
assets; (iii) result in any breach of or constitute a default (or
an event that with notice or lapse of time or both would become a
default) under, result in American Resources’ or any of its
Subsidiaries’ loss of any benefit or the imposition of any
additional payment or other liability under, or alter the rights or
obligations of any third party under, or give to any third party
any rights of termination, amendment, acceleration, or
cancellation, or require any Consent under, any Contract to which
American Resources or any of its Subsidiaries is a party or
otherwise bound as of the date hereof; or (iv) result in the
creation of a Lien (other than Permitted Liens) on any of the
properties or assets of American Resources or any of its
Subsidiaries, except, in the case of each of clauses (ii), (iii),
and (iv), for any conflicts, violations, breaches, defaults, loss
of benefits, additional payments or other liabilities, alterations,
terminations, amendments, accelerations, cancellations, or Liens
that, or where the failure to obtain any Consents, in each case,
would not reasonably be expected to have, individually or in the
aggregate, an American Resources Material Adverse
Effect.

 

(c). Governmental
Consents. Except as set forth
in Section 4.03(c) of the American Resources Disclosure Schedule,
no Consent of any Governmental Entity is required to be obtained or
made by American Resources in connection with the execution,
delivery, and performance by American Resources of this Agreement
or the consummation by American Resources of the Merger, the
American Resources Stock Issuance, and the other transactions
contemplated hereby.

 

(d). Board
Approval. The American Resources Board by resolutions duly
adopted by a unanimous vote at a meeting of all directors of
American Resources duly called and held and, not subsequently
rescinded or modified in any way, has (A) determined that this
Agreement and the transactions contemplated hereby, including the
Merger, and the American Resources Stock Issuance, upon the terms
and subject to the conditions set forth herein, are fair to, and in
the best interests of, American Resources and the American
Resources’ stockholders, (B) approved and declared advisable
this Agreement, including the execution, delivery, and performance
thereof, and the consummation of the transactions contemplated by
this Agreement, including the Merger and the American Resources
Stock Issuance, upon the terms and subject to the conditions set
forth herein, (C) directed that the American Resources Stock
Issuance be submitted to a vote of the American Resources’
stockholders for adoption at the American Resources Stockholders
Meeting, and (D) resolved to recommend that American
Resources’ stockholders vote in favor of approval of the
American Resources Stock Issuance (collectively, the
“American Resources Board
Recommendation”).

 

4.04. SEC
Filings; Financial Statements; Undisclosed
Liabilities.

 

(a). SEC
Filings. American Resources has
timely filed with or furnished to, as applicable, the SEC all
registration statements, prospectuses, reports, schedules, forms,
statements, and other documents (including exhibits and all other
information incorporated by reference) required to be filed or
furnished by it with the SEC since September 30, 2018 (the
“American Resources SEC Documents”). True, correct, and
complete copies of all the American Resources SEC Documents are
publicly available on EDGAR. As of their respective filing dates
or, if amended or superseded by a subsequent filing prior to the
date hereof, as of the date of the last such amendment or
superseding filing (and, in the case of registration statements and
proxy statements, on the dates of effectiveness and the dates of
the relevant meetings, respectively), each of the American
Resources SEC Documents complied as to form in all material
respects with the applicable requirements of the Securities Act,
the Exchange Act, and the Sarbanes-Oxley Act, and the rules and
regulations of the SEC thereunder applicable to such American
Resources SEC Documents. None of the American Resources SEC
Documents, including any financial statements, schedules, or
exhibits included or incorporated by reference therein at the time
they were filed (or, if amended or superseded by a subsequent
filing prior to the date hereof, as of the date of the last such
amendment or superseding filing), contained any untrue statement of
a material fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made,
not misleading. To the Knowledge of American Resources, none of the
American Resources SEC Documents is the subject of ongoing SEC
review or outstanding SEC investigation and there are no
outstanding or unresolved comments received from the SEC with
respect to any of the American Resources SEC Documents. None of
American Resources’ Subsidiaries is required to file or
furnish any forms, reports, or other documents with the
SEC.

 

(b). Financial
Statements. Each of the
consolidated financial statements (including, in each case, any
notes and schedules thereto) contained in or incorporated by
reference into the American Resources SEC Documents: (i) complied
as to form in all material respects with the published rules and
regulations of the SEC with respect thereto as of their respective
dates; (ii) was prepared in accordance with GAAP applied on a
consistent basis throughout the periods involved (except as may be
indicated in the notes thereto and, in the case of unaudited
interim financial statements, as may be permitted by the SEC for
Quarterly Reports on Form 10-Q); and (iii) fairly presented in all
material respects the consolidated financial position and the
results of operations, changes in stockholders’ equity, and
cash flows of American Resources and its consolidated Subsidiaries
as of the respective dates of and for the periods referred to in
such financial statements, subject, in the case of unaudited
interim financial statements, to normal and year-end audit
adjustments as permitted by GAAP and the applicable rules and
regulations of the SEC (but only if the effect of such adjustments
would not, individually or in the aggregate, be
material).

 

(c). Undisclosed
Liabilities. The audited
balance sheet of American Resources dated as of January 31, 2019,
contained in the American Resources SEC Documents filed prior to
the date hereof is hereinafter referred to as the “American
Resources Balance Sheet.” Neither American Resources nor any
of its Subsidiaries has any Liabilities other than Liabilities
that: (i) are reflected or reserved against in the American
Resources Balance Sheet (including in the notes thereto); (ii) were
incurred since the date of the American Resources Balance Sheet in
the ordinary course of business consistent with past practice;
(iii) are incurred in connection with the transactions contemplated
by this Agreement; or (iv) would not reasonably be expected to
have, individually or in the aggregate, an American Resources
Material Adverse Effect.

 

(d). NASDAQ
Compliance. American Resources
is in compliance with all of the applicable listing and corporate
governance rules of NASDAQ, except for any non-compliance that
would not reasonably be expected to have, individually or in the
aggregate, an American Resources Material Adverse
Effect.

 

4.05. Absence
of Certain Changes or Events.
Since the date of the American Resources Balance Sheet, except in
connection with the execution and delivery of this Agreement and
the consummation of the transactions contemplated hereby, the
business of American Resources and each of its Subsidiaries has
been conducted in the ordinary course of business consistent with
past practice and there has not been or occurred any American
Resources Material Adverse Effect or any event, condition, change,
or effect that could reasonably be expected to have, individually
or in the aggregate, an American Resources Material Adverse
Effect.

 

 

11

 

 

4.06. Compliance;
Permits.

 

(a). Compliance.
American Resources and each of its Subsidiaries are and, since
December 31, 2016, have been in compliance with, all Laws or Orders
applicable to American Resources or any of its Subsidiaries or by
which American Resources or any of its Subsidiaries or any of their
respective businesses or properties is bound, except for such
non-compliance that would not reasonably be expected to have,
individually or in the aggregate, an American Resources Material
Adverse Effect. Since December 31, 2016, no Governmental Entity has
issued any notice or notification stating that American Resources
or any of its Subsidiaries is not in compliance with any Law,
except where such non-compliance would not reasonably be expected
to have, individually or in the aggregate, an American Resources
Material Adverse Effect.

 

(b). Permits.
American Resources and its Subsidiaries hold, to the extent
necessary to operate their respective businesses as such businesses
are being operated as of the date hereof, all Permits except for
any Permits for which the failure to obtain or hold would not
reasonably be expected to have, individually or in the aggregate,
an American Resources Material Adverse Effect. No suspension,
cancellation, non-renewal, or adverse modifications of any Permits
of American Resources or any of its Subsidiaries is pending or, to
the Knowledge of American Resources, threatened, except for any
such suspension or cancellation which would not reasonably be
expected to have, individually or in the aggregate, an American
Resources Material Adverse Effect. American Resources and each of
its Subsidiaries is and, since December 31, 2016, has been in
compliance with the terms of all Permits, except where the failure
to be in such compliance would not reasonably be expected to have,
individually or in the aggregate, an American Resources Material
Adverse Effect.

 

4.07. Litigation.
There is no Legal Action pending, or to the Knowledge of American
Resources, threatened against American Resources or any of its
Subsidiaries or any of their respective properties or assets or, to
the Knowledge of American Resources, any officer or director of
American Resources or any of its Subsidiaries in their capacities
as such other than any such Legal Action that: (a) does not involve
an amount that would reasonably be expected to have, individually
or in the aggregate, an American Resources Material Adverse Effect;
and (b) does not seek material injunctive or other material
non-monetary relief. None of American Resources or any of its
Subsidiaries or any of their respective properties or assets is
subject to any Order of a Governmental Entity or arbitrator,
whether temporary, preliminary, or permanent, which would
reasonably be expected to have, individually or in the aggregate,
an American Resources Material Adverse Effect. To the Knowledge of
American Resources, there are no SEC inquiries or investigations,
other governmental inquiries or investigations, or internal
investigations pending or, to the Knowledge of American Resources,
threatened, in each case regarding any accounting practices of
American Resources or any of its Subsidiaries or any malfeasance by
any officer or director of American Resources.

 

4.08. Brokers.
Except for fees payable to Maxim Group, LLC, the fees and expenses
of which will be paid by American Resources, neither American
Resources, nor any of its Affiliates has incurred, nor will it
incur, directly or indirectly, any liability for investment banker,
brokerage, or finders’ fees or agents’ commissions, or
any similar charges in connection with this Agreement or any
transaction contemplated hereby for which the Company would be
liable in connection with the Merger.

 

4.09. Information
Supplied. None of the
information supplied or to be supplied by or on behalf of American
Resources for inclusion or incorporation by reference in any form
filed with the SEC, and at any time it is amended or supplemented
or at the time it becomes effective under the Securities Act,
contain any untrue statement of a material fact or omit to state
any material fact required to be stated therein or necessary to
make the statements therein not misleading. None of the information
supplied or to be supplied by or on behalf of American Resources
for inclusion or incorporation by reference in any proxy statement
will, at the date it is first mailed to American Resources’
stockholders or at the time of the American Resources Stockholders
Meeting or at the time of any amendment or supplement thereof,
contain any untrue statement of a material fact or omit to state
any material fact necessary in order to make the statements made
therein, in light of the circumstances under which they were made,
not misleading. Any proxy statement will comply as to form in all
material respects with the requirements of the Exchange Act.
Notwithstanding the foregoing, no representation or warranty is
made by American Resources with respect to statements made or
incorporated by reference therein based on information that was not
supplied by or on behalf of American Resources.

 

4.10. Ownership
of Company Common Stock.
Neither American Resources nor any of its Affiliates or Associates
owns any shares of Company Common Stock.

 

4.11. Intended
Tax Treatment. Neither American
Resources nor any of its Subsidiaries has taken or agreed to take
any action, and to the Knowledge of American Resources there exists
no fact or circumstance, that is reasonably likely to prevent or
impede the Merger from qualifying as a “reorganization”
within the meaning of Section 368(a) of the
Code.

 

4.12. Financial
Capability. American Resources
has or will have prior to the Effective Time, sufficient funds to
pay the aggregate Cash Consideration contemplated by this Agreement
and to perform the other obligations of American Resources
contemplated by this Agreement.

 

5. Covenants.

 

5.01. Conduct
of Business of the Company.
During the period from the date of this Agreement until the
Effective Time, the Company shall, and shall cause each of its
Subsidiaries, except as expressly contemplated by this Agreement,
as required by applicable Law, or with the prior written consent of
American Resources (which consent shall not be unreasonably
withheld, conditioned, or delayed), to use its reasonable best
efforts to conduct its business in the ordinary course of business
consistent with past practice. To the extent consistent therewith,
the Company shall, and shall cause each of its Subsidiaries to, use
its reasonable best efforts to preserve substantially intact its
and its Subsidiaries’ business organization, to keep
available the services of its and its Subsidiaries’ current
officers and employees, to preserve its and its Subsidiaries’
present relationships with customers, suppliers, distributors,
licensors, licensees, and other Persons having business
relationships with it. Without limiting the generality of the
foregoing, between the date of this Agreement and the Effective
Time, except as otherwise expressly contemplated by this Agreement,
as set forth in Section 5.01 of
the Company Disclosure Schedule, or as required by applicable Law,
the Company shall not, nor shall it permit any of its Subsidiaries
to, without the prior written consent of American Resources (which
consent shall not be unreasonably withheld, conditioned, or
delayed):

 

 

12

 

 

(a). amend
or propose to amend its Charter Documents;

 

(b). (i)
split, combine, or reclassify any Company Securities or Company
Subsidiary Securities, (ii) repurchase, redeem, or otherwise
acquire, or offer to repurchase, redeem, or otherwise acquire, any
Company Securities or Company Subsidiary Securities, or (iii)
declare, set aside, or pay any dividend or distribution (whether in
cash, stock, property, or otherwise) in respect of, or enter into
any Contract with respect to the voting of, any shares of its
capital stock (other than dividends from its direct or indirect
wholly-owned Subsidiaries);

 

(c). issue,
sell, pledge, dispose of, or encumber any Company Securities or
Company Subsidiary Securities, other than the issuance of shares of
Company Common Stock upon the exercise of any Company Equity Award
outstanding as of the date of this Agreement in accordance with its
terms;

 

(d). except
as required by applicable Law or by any Company Employee Plan or
Contract in effect as of the date of this Agreement (i) increase
the compensation payable or that could become payable by the
Company or any of its Subsidiaries to directors, officers, or
employees, other than increases in compensation made to non-officer
employees in the ordinary course of business consistent with past
practice, (ii) promote any officers or employees, except in
connection with the Company’s annual or quarterly
compensation review cycle or as the result of the termination or
resignation of any officer or employee, or (iii) establish, adopt,
enter into, amend, terminate, exercise any discretion under, or
take any action to accelerate rights under any Company Employee
Plans or any plan, agreement, program, policy, trust, fund, or
other arrangement that would be a Company Employee Plan if it were
in existence as of the date of this Agreement, or make any
contribution to any Company Employee Plan, other than contributions
required by Law, the terms of such Company Employee Plans as in
effect on the date hereof, or that are made in the ordinary course
of business consistent with past practice;

 

(e). acquire,
by merger, consolidation, acquisition of stock or assets, or
otherwise, any business or Person or division thereof or make any
loans, advances, or capital contributions to or investments in any
Person in excess of $100,000.00 in the aggregate;

 

(f). (i)
transfer, license, sell, lease, or otherwise dispose of (whether by
way of merger, consolidation, sale of stock or assets, or
otherwise) or pledge, encumber, or otherwise subject to any Lien
(other than a Permitted Lien), any assets, including the capital
stock or other equity interests in any Subsidiary of the
Company; provided, that
the foregoing shall not prohibit the
Company and its Subsidiaries from transferring, selling, leasing,
or disposing of obsolete equipment or assets being replaced, or
granting of non-exclusive licenses under the Company IP, in each
case in the ordinary course of business consistent with past
practice, or (ii) adopt or effect a plan of complete or partial
liquidation, dissolution, restructuring, recapitalization, or other
reorganization;

 

(g). repurchase,
prepay, or incur any indebtedness for borrowed money or guarantee
any such indebtedness of another Person, issue or sell any debt
securities or options, warrants, calls, or other rights to acquire
any debt securities of the Company or any of its Subsidiaries,
guarantee any debt securities of another Person, enter into any
“keep well” or other Contract to maintain any financial
statement condition of any other Person (other than any
wholly-owned Subsidiary of it) or enter into any arrangement having
the economic effect of any of the foregoing, other than in
connection with the financing of ordinary course trade payables
consistent with past practice;

 

(h). enter
into or amend or modify in any material respect, or consent to the
termination of (other than at its stated expiry date), any Company
Material Contract or any Lease with respect to material Real Estate
or any other Contract or Lease that, if in effect as of the date
hereof would constitute a Company Material Contract or Lease with
respect to material Real Estate hereunder;

 

(i). institute,
settle, or compromise any Legal Action involving the payment of
monetary damages by the Company or any of its Subsidiaries of any
amount exceeding $50,000.00 in the aggregate, other than (i) any
Legal Action brought against American Resources arising out of a
breach or alleged breach of this Agreement by American Resources,
and (ii) the settlement of claims, liabilities, or obligations
reserved against on the Company Balance Sheet; provided, that
neither the Company nor any of its
Subsidiaries shall settle or agree to settle any Legal Action which
settlement involves a conduct remedy or injunctive or similar
relief or has a restrictive impact on the Company’s
business;

 

(j). make
any material change in any method of financial accounting
principles or practices;

 

(k). (i)
settle or compromise any material Tax claim, audit, or assessment
for an amount materially in excess of the amount reserved or
accrued on the Company Balance Sheet, (ii) make or change any
material Tax election, change any annual Tax accounting period, or
adopt or change any method of Tax accounting, (iii) amend any
material Tax Returns or file claims for material Tax refunds, or
(iv) enter into any material closing agreement, surrender in
writing any right to claim a material Tax refund, offset or other
reduction in Tax liability or consent to any extension or waiver of
the limitation period applicable to any material Tax claim or
assessment relating to the Company or its
Subsidiaries;

 

(l). enter
into any material agreement, agreement in principle, letter of
intent, memorandum of understanding, or similar Contract with
respect to any joint venture, strategic partnership, or
alliance;

 

(m). except
in connection with actions permitted by Section 5.04
hereof, take any action to exempt any
Person from, or make any acquisition of securities of the Company
by any Person not subject to, any state takeover statute or similar
statute or regulation that applies to Company with respect to a
Takeover Proposal or otherwise, except for American Resources or
the transactions contemplated by this
Agreement;

 

 

13

 

 

(n). abandon,
allow to lapse, sell, assign, transfer, grant any security interest
in otherwise encumber or dispose of any material Company IP, or
grant any right or license to any material Company IP other than
pursuant to non-exclusive licenses entered into in the ordinary
course of business consistent with past practice;

 

(o). terminate
or modify in any material respect, or fail to exercise renewal
rights with respect to, any material insurance policy;

 

(p). except
to the extent expressly permitted by Section ‎5.04
or Section 7, take any action that is
intended or that would reasonably be expected to, individually or
in the aggregate, prevent, materially delay, or materially impede
the consummation of the Merger, or the other transactions
contemplated by this Agreement; or

 

(q). agree
or commit to do any of the foregoing.

 

5.02. Conduct
of the Business of American Resources. During the period from the date of this
Agreement until the Effective Time, American Resources shall, and
shall cause each of its Subsidiaries, except as expressly
contemplated by this Agreement, as required by applicable Law, or
with the prior written consent of the Company (which consent shall
not be unreasonably withheld, conditioned, or delayed), to use its
reasonable best efforts to conduct its business in the ordinary
course of business consistent with past practice. Without limiting
the generality of the foregoing, between the date of this Agreement
and the Effective Time, except as otherwise expressly contemplated
by this Agreement, as set forth in Section 5.02 of
the American Resources Disclosure
Schedule, or as required by applicable Law, American Resources
shall not, nor shall it permit any of its Subsidiaries to, without
the prior written consent of the Company (which consent shall not
be unreasonably withheld, conditioned, or
delayed):

 

(a). amend
its Charter Documents in a manner that would adversely affect the
Company or the holders of Company Common Stock relative to the
other holders of American Resources Common Stock;

 

(b). (i)
split, combine, or reclassify any American Resources Securities or
American Resources Subsidiary Securities in a manner that would
adversely affect the Company or the holders of Company Common Stock
relative to the other holders of American Resources Common Stock,
(ii) repurchase, redeem, or otherwise acquire, or offer to
repurchase, redeem, or otherwise acquire, any American Resources
Securities or American Resources Subsidiary Securities, or (iii)
declare, set aside, or pay any dividend or distribution (whether in
cash, stock, property, or otherwise) in respect of, or enter into
any Contract with respect to the voting of, any shares of its
capital stock (other than dividends from its direct or indirect
wholly-owned Subsidiaries and ordinary quarterly dividends,
consistent with past practice with respect to timing of declaration
and payment);

 

(c). issue,
sell, pledge, dispose of, or encumber any American Resources
Securities or American Resources Subsidiary Securities, other than
(i) the issuance of shares of American Resources Common Stock upon
the exercise of any American Resources Equity Awards outstanding as
of the date of this Agreement in accordance with its terms, (ii)
the issuance of shares of American Resources Common Stock in
connection with or upon the exercise of any American Resources
Equity Awards granted after the date hereof in the ordinary course
of business consistent with past practice, and (iii) sales or
issuances of shares of American Resources Common Stock or
convertible securities in an amount not exceeding 5% of the issued
and outstanding shares of American Resources Common Stock (in the
case of convertible securities, on an as-converted basis) as of the
date of this Agreement;

 

(d). acquire,
by merger, consolidation, acquisition of stock or assets, or
otherwise, any business or Person or division thereof or make any
loans, advances, or capital contributions to or investments in any
Person, in each case that would reasonably be expected to prevent,
impede, or materially delay the consummation of the Merger or other
transactions contemplated by this Agreement;

 

(e). adopt
or effect a plan of complete or partial liquidation, dissolution,
restructuring, recapitalization, or other
reorganization;

 

(f). except
to the extent expressly permitted by Section ‎5.04
or Section 7, take any action that is
intended or that would reasonably be expected to, individually or
in the aggregate, prevent, impede, or materially delay the
consummation of the Merger, or the other transactions contemplated
by this Agreement; or

 

(g). agree
or commit to do any of the foregoing.

 

5.03. Access
to Information; Confidentiality.

 

(a). Access
to Information. From the date
of this Agreement until the earlier to occur of the Effective Time
or the termination of this Agreement in accordance with the terms
set forth in Section 7, the Company shall, and shall cause its
Subsidiaries to, afford to American Resources and American
Resources’ Representatives reasonable access, at reasonable
times and in a manner as shall not unreasonably interfere with the
business or operations of the Company or any Subsidiary thereof, to
the officers, employees, accountants, agents, properties, offices,
and other facilities and to all books, records, contracts, and
other assets of the Company and its Subsidiaries, and the Company
shall, and shall cause its Subsidiaries to, furnish promptly to
American Resources such other information concerning the business
and properties of the Company and its Subsidiaries as American
Resources may reasonably request from time to time. Neither the
Company nor any of its Subsidiaries shall be required to provide
access to or disclose information where such access or disclosure
would jeopardize the protection of attorney-client privilege or
contravene any Law (it being agreed that the parties shall use
their reasonable best efforts to cause such information to be
provided in a manner that would not result in such jeopardy or
contravention). No investigation shall affect the Company’s
representations, warranties, covenants, or agreements contained
herein, or limit or otherwise affect the remedies available to
American Resources pursuant to this Agreement.

 

 

14

 

 

(b). Confidentiality.
[reserved].

 

5.04. Company
Stockholders Meeting. The
Company shall take all action necessary to duly call, give notice
of, convene, and hold the Company Stockholders Meeting as soon as
reasonably practicable.

 

5.05. American
Resources Stockholders Meeting. American
Resources shall take all action necessary to duly call, give notice
of, convene, and hold the American Resources Stockholders Meeting
as soon as reasonably practicable.

 

5.06. McCoy
Elkhorn Coal LLC. Immediately
subsequent to the Merger, American Resources shall take all steps
necessary to cause the assets of the Company to ultimately be owned
by McCoy Elkhorn Coal LLC, the single-member limited liability
company owned by Quest Energy, Inc., American Resources’
wholly-owned subsidiary.

 

5.07. Company
Bond. American Resources and
its Subsidiaries shall cause the Company surety bonds in place
prior to Closing to be released within thirty (30) days after
Closing and the cash collateral for such bonds shall be delivered
to the holders of shares of Company Common Stock. This Section and
the covenants set forth herein shall expressly survive
Closing.

 

5.08. Public
Announcements. The initial
press release with respect to this Agreement and the transactions
contemplated hereby shall be a release mutually agreed to by the
Company and American Resources. Thereafter, no public release or
announcement concerning the transactions contemplated hereby shall
be issued by any party without the prior written consent of the
Company and American Resources (which consent shall not be
unreasonably withheld, conditioned, or delayed), except as may be
required by applicable Law or the rules or regulations of any
applicable United States securities exchange or other Governmental
Entity to which the relevant party is subject or submits, in which
case the party required to make the release or announcement shall
use its reasonable best efforts to allow the other party reasonable
time to comment on such release or announcement in advance of such
issuance.

 

5.09. Section
16 Matters. Prior to the
Effective Time, the Company and American Resources shall each take
all such steps as may be required to cause to be exempt under Rule
16b-3 promulgated under the Exchange Act:

 

(a). any
dispositions of shares of Company Common Stock (including
derivative securities with respect to such shares) that are treated
as dispositions under such rule and result from the transactions
contemplated by this Agreement by each director or officer of the
Company who is subject to the reporting requirements of Section
16(a) of the Exchange Act with respect to the Company immediately
prior to the Effective Time; and

 

(b). any
acquisitions of American Resources Common Stock (including
derivative securities with respect to such shares) that are treated
as acquisitions under such rule and result from the transactions
contemplated by this Agreement by each individual who may become or
is reasonably expected to become subject to the reporting
requirements of Section 16(a) of the Exchange Act with respect to
American Resources immediately after the Effective
Time.

 

5.10. Stock
Exchange Matters.
American Resources shall use its
reasonable best efforts to cause the shares of American Resources
Common Stock to be issued in connection with the Merger to be
listed on NASDAQ (or such other stock exchange as may be mutually
agreed upon by the Company and American Resources), subject to
official notice of issuance, prior to the Effective
Time.

 

6. Conditions.

 

6.01. Conditions
to Each Party’s Obligation to Effect the
Merger. The respective
obligations of each party to this Agreement to effect the Merger is
subject to the satisfaction or waiver (where permissible pursuant
to applicable Law) on or prior to the Closing Date of each of the
following conditions:

 

(a). Company
Stockholder Approval. This
Agreement will have been duly adopted by the Requisite Company
Vote.

 

(b). American
Resources Stockholder Approval.
The American Resources Stock Issuance will have been approved by
the Requisite American Resources Vote.

 

(c). Listing.
The shares of American Resources Common Stock issuable as Merger
Consideration pursuant to this Agreement shall have been approved
for listing on NASDAQ, subject to official notice of
issuance.

 

(d). Form
S-4. The Form S-4 shall have
become effective under the Securities Act and shall not be the
subject of any stop order.

 

(e). Regulatory
Approvals. All waiting periods
applicable to the consummation of the Merger under the HSR Act (or
any extension thereof) shall have expired or been terminated and
all required filings shall have been made and all required
approvals obtained (or waiting periods expired or terminated) under
applicable Antitrust Laws.

 

 

15

 

 

(f). No
Injunctions, Restraints, or Illegality. No Governmental Entity having jurisdiction over
any party hereto shall have enacted, issued, promulgated, enforced,
or entered any Laws or Orders, whether temporary, preliminary, or
permanent, that make illegal, enjoin, or otherwise prohibit
consummation of the Merger, the American Resources Stock Issuance,
or the other transactions contemplated by this
Agreement.

 

6.02. Conditions
to Obligations of American Resources. The obligations of American Resources to effect
the Merger are also subject to the satisfaction or waiver (where
permissible pursuant to applicable Law) by American Resources on or
prior to the Effective Time of the following
conditions:

 

(a). Representations
and Warranties. The
representations and warranties of the Company this Agreement shall
be true and correct in all respects when made and on and as of the
Closing Date, as if made on and as of such date (except those
representations and warranties that address matters only as of a
particular date, which shall be true and correct in all respects as
of that date), except where the failure of such representations and
warranties to be so true and correct would not reasonably be
expected to have, individually or in the aggregate, a Company
Material Adverse Effect.

 

(b). Performance
of Covenants. The Company shall
have performed in all material respects all obligations, and
complied in all material respects with the agreements and
covenants, in this Agreement required to be performed by or
complied with by it at or prior to the Closing
Date.

 

(c). Company
Material Adverse Effect. Since
the date of this Agreement, there shall not have been any Company
Material Adverse Effect or any event, change, or effect that would,
individually or in the aggregate, reasonably be expected to have a
Company Material Adverse Effect.

 

6.03. Conditions
to Obligation of the Company.
The obligation of the Company to effect the Merger is also subject
to the satisfaction or waiver by the Company on or prior to the
Effective Time of the following conditions:

 

(a). Representations
and Warranties. The
representations and warranties of American Resources set forth in
this Agreement shall be true and correct in all respects when made
and on and as of the Closing Date, as if made on and as of such
date (except those representations and warranties that address
matters only as of a particular date, which shall be true and
correct in all respects as of that date), except where the failure
of such representations and warranties to be so true and correct
would not reasonably be expected to have, individually or in the
aggregate, an American Resources Material Adverse
Effect.

 

(b). Performance
of Covenants. American
Resources shall have performed in all material respects all
obligations, and complied in all material respects with the
agreements and covenants, of this Agreement required to be
performed by or complied with by them at or prior to the Closing
Date.

 

(c). American
Resources Material Adverse Effect. Since the date of this Agreement, there shall
not have been any American Resources Material Adverse Effect or any
event, change, or effect that would, individually or in the
aggregate, reasonably be expected to have an American Resources
Material Adverse Effect.

 

(d). Consents.

 

(i). The
Company will have received written consent regarding the effect of
the Merger and any change of control or assignment provision in any
Company Material Contract, including without limitation, that
certain Amended and Restated Agreement of Lease dated January 1,
1992, by and between the Company and Kentucky Berwind Land
Company.

 

(ii). The
Company will have received written consent from Community Trust
Bank regarding the effect of the Merger and any change of control,
assignment provision or other applicable provision within the
Company’s loan documents with Community Trust
Bank.

 

(e). Assignment
Prior to Closing. The Company
shall have transferred, assigned or distributed the Company’s
rights, title and interest in and to that certain Forbearance
Agreement dated April 29, 2016, by and among Empire Coal Holdings,
LLC, the Company, Revelation Energy, LLC and Empire Coal
Processing, LLC.

 

(f). Empire
Coal Holdings, LLC Merger. The
closing of the merger transaction by and between Empire Coal
Holdings, LLC and McCoy Elkhorn Coal LLC, the consideration for
which shall be $2,500,000.00 (payable $500,000.00 upon the
execution of the definitive agreement between Empire Coal Holdings,
LLC and McCoy Elkhorn Coal LLC and a promissory note in the
original principal amount of $2,000,000.00 delivered at closing)
shall occur immediately prior to the Closing.

 

7. Termination,
Amendment, and Waiver.

 

7.01. Termination
by Mutual Consent. This
Agreement may be terminated at any time prior to the Effective Time
(whether before or after the receipt of the Requisite Company Vote
or the Requisite American Resources Vote) by the mutual written
consent of American Resources and the Company.

 

7.02. Termination
by Either American Resources or the Company. This Agreement may be terminated by either
American Resources or the Company at any time prior to the
Effective Time (whether before or after the receipt of the
Requisite Company Vote or the Requisite American Resources
Vote):

 

(a). if
the Merger shall not have been consummated on or prior to 5:00
p.m., Eastern Time, on March 15, 2019 (the “End
Date”); provided,
however, that the right to
terminate this Agreement pursuant to this Section 7.02(a)
shall not be available to any party
whose breach of any representation, warranty, covenant, or
agreement set forth in this Agreement has been the cause of, or
resulted in, the failure of the Merger to be consummated on or
before the End Date;

 

 

16

 

 

(b). if
any Governmental Entity of competent jurisdiction shall have
enacted, issued, promulgated, enforced, or entered any Law or Order
making illegal, permanently enjoining, or otherwise permanently
prohibiting the consummation of the Merger, the American Resources
Stock Issuance, or the other transactions contemplated by this
Agreement, and such Law or Order shall have become final and
nonappealable; provided,
however, that the right to
terminate this Agreement pursuant to this Section 7.02(b)
shall not be available to any party
whose breach of any representation, warranty, covenant, or
agreement set forth in this Agreement has been the cause of, or
resulted in, the issuance, promulgation, enforcement, or entry of
any such Law or Order;

 

(c). if
this Agreement has been submitted to the stockholders of the
Company for adoption at a duly convened Company Stockholders
Meeting and the Requisite Company Vote shall not have been obtained
at such meeting (unless such Company Stockholders Meeting has been
adjourned or postponed, in which case at the final adjournment or
postponement thereof); or

 

(d). if
the American Resources Stock Issuance has been submitted to the
stockholders of American Resources for approval at a duly convened
American Resources Stockholders Meeting and the Requisite American
Resources Vote shall not have been obtained at such meeting (unless
such American Resources Stockholders Meeting has been adjourned or
postponed, in which case at the final adjournment or postponement
thereof).

 

7.03. Termination
by American Resources. This
Agreement may be terminated by American Resources at any time prior
to the Effective Time:

 

(a). if
prior to the receipt of the Requisite American Resources Vote at
the American Resources Stockholders Meeting, the American Resources
Board authorizes American Resources, in full compliance with the
terms of this Agreement, to enter into an Acquisition Agreement
(other than an Acceptable Confidentiality Agreement) in respect of
a Superior Proposal; provided, that
American Resources shall have paid any
amounts due pursuant to Section 7.06(b)(ii) hereof
in accordance with the terms, and at
the times, specified therein; and provided
further, that in the event of
such termination, American Resources substantially concurrently
enters into such Acquisition Agreement;

 

(b). if:
(i) a Company Adverse Recommendation Change shall have occurred; or
(ii) the Company shall have breached or failed to perform in any
material respect any of its covenants and agreements set forth in
this Agreement; or

 

(c). if
there shall have been a breach of any representation, warranty,
covenant, or agreement on the part of the Company set forth in this
Agreement such that the conditions to the Closing of the Merger set
forth in Section 6.02 would not be satisfied; provided, that
American Resources shall not have the
right to terminate this Agreement pursuant to this Section
7.03(c) if American Resources is then
in material breach of any representation, warranty, covenant, or
obligation hereunder, which breach has not been
cured.

 

7.04. Termination
by the Company. This Agreement
may be terminated by the Company at any time prior to the Effective
Time:

 

(a). if
prior to the receipt of the Requisite Company Vote at the Company
Stockholders Meeting, the Company Board authorizes the Company, in
full compliance with the terms of this Agreement to enter into an
Acquisition Agreement (other than an Acceptable Confidentiality
Agreement) in respect of a Superior Proposal; provided, that
the Company shall have paid any
amounts due pursuant to Section 7.06(b)(i) hereof
in accordance with the terms, and at
the times, specified therein; and provided
further, that in the event of
such termination, the Company substantially concurrently enters
into such Acquisition Agreement; or

 

(b). if:
(i) a American Resources Adverse Recommendation Change shall have
occurred; or (ii) American Resources shall have breached or failed
to perform in any material respect any of its covenants and
agreements set forth in this Agreement; or

 

(c). if
there shall have been a breach of any representation, warranty,
covenant, or agreement on the part of American Resources set forth
in this Agreement such that the conditions to the Closing of the
Merger set forth in Section 6.03 would not be satisfied;
provided,
that the Company shall not have
the right to terminate this Agreement pursuant to this
Section 7.04(c) if the Company is then
in material breach of any representation, warranty, covenant, or
obligation hereunder, which breach has not been
cured.

 

7.05. Notice
of Termination; Effect of Termination. The party desiring to terminate this Agreement
pursuant to this Section 7 (other than pursuant to Section 7.01)
shall deliver written notice of such termination to each other
party hereto specifying with particularity the reason for such
termination, and any such termination in accordance with this
Section 7.05 shall be effective immediately upon delivery of such
written notice to the other party. If this Agreement is terminated
pursuant to this Section 7, it will become void and of no further
force and effect, with no liability on the part of any party to
this Agreement (or any stockholder, director, officer, employee,
agent, or Representative of such party) to any other party hereto,
except: (a) with respect to, this Section 7.05, Section
7.06, and Section 8 (and any related
definitions contained in any such Sections or Article), which shall
remain in full force and effect; and (b) with respect to any
liabilities or damages incurred or suffered by a party, to the
extent such liabilities or damages were the result of fraud or the
breach by another party of any of its representations, warranties,
covenants, or other agreements set forth in this
Agreement.

 

7.06. Fees
and Expenses Following Termination.

 

(a). If
this Agreement is terminated by American Resources pursuant
to Section 7.03(a), or by the Company pursuant to Section 7.04(b)
or Section 7.04(c), then American
Resources shall pay to the Company (by wire transfer of immediately
available funds), at or prior to such termination, $500,000.00 (the
“American Resources Termination Fee”) plus the
Company’s Expenses actually incurred by the Company on or
prior to the termination of this Agreement.

 

 

17

 

 

(b). The
parties acknowledge and hereby agree that the provisions of
this Section 7.06 are an integral part
of the transactions contemplated by this Agreement (including the
Merger), and that, without such provisions, the parties would not
have entered into this Agreement. If American Resources shall fail
to pay in a timely manner the amounts due pursuant to this
Section 7.06, and, in order to obtain
such payment, the other party makes a claim against the non-paying
party that results in a judgment, the non-paying party shall pay to
the other party the reasonable costs and expenses (including its
reasonable attorneys’ fees and expenses) incurred or accrued
in connection with such suit, together with interest on the amounts
set forth in this Section 7.06 at the prime lending rate prevailing during such
period as published in The Wall Street
Journal. Any interest payable
hereunder shall be calculated on a daily basis from the date such
amounts were required to be paid until (but excluding) the date of
actual payment, and on the basis of a 360-day year. The parties
acknowledge and agree that in no event shall American Resources be
required to pay the American Resources Termination Fee on more than
one occasion.

 

(c). Except
as expressly set forth in this Section 7.06, all Expenses incurred in connection with this
Agreement and the transactions contemplated hereby will be paid by
the party incurring such Expenses.

 

7.07. Amendment.
At any time prior to the Effective Time, this Agreement may be
amended or supplemented in any and all respects, whether before or
after receipt of the Requisite Company Vote or the Requisite
American Resources Vote, by written agreement signed by each of the
parties hereto; provided,
however, that: (a) following
the receipt of the Requisite Company Vote, there shall be no
amendment or supplement to the provisions of this Agreement which
by Law or in accordance with the rules of any relevant
self-regulatory organization would require further approval by the
holders of Company Common Stock without such approval; and (b)
following the receipt of the Requisite American Resources Vote,
there shall be no amendment or supplement to the provisions of this
Agreement which by Law or in accordance with the rules of any
relevant self-regulatory organization would require further
approval by the holders of American Resources Common Stock without
such approval.

 

7.08. Extension;
Waiver. At any time prior to
the Effective Time, American Resources or the Company may: (a)
extend the time for the performance of any of the obligations of
the other party(ies); (b) waive any inaccuracies in the
representations and warranties of the other party(ies) contained in
this Agreement or in any document delivered under this Agreement;
or (c) unless prohibited by applicable Law, waive compliance with
any of the covenants, agreements, or conditions contained in this
Agreement. Any agreement on the part of a party to any extension or
waiver will be valid only if set forth in an instrument in writing
signed by such party. The failure of any party to assert any of its
rights under this Agreement or otherwise will not constitute a
waiver of such rights.

 

8. Miscellaneous.

 

8.01. Definitions.
For purposes of this Agreement, defined terms will have the
meanings set forth in Appendix A, attached hereto and incorporated
herein by reference, when used herein with initial capital
letters.

 

8.02. Interpretation;
Construction.

 

(a). The
table of contents and headings herein are for convenience of
reference only, do not constitute part of this Agreement and shall
not be deemed to limit or otherwise affect any of the provisions
hereof. Where a reference in this Agreement is made to a Section,
Exhibit, or Schedule, such reference shall be to a Section of,
Exhibit to, or Schedule of this Agreement unless otherwise
indicated. Unless the context otherwise requires, references
herein: (i) to an agreement, instrument, or other document means
such agreement, instrument, or other document as amended,
supplemented, and modified from time to time to the extent
permitted by the provisions thereof; and (ii) to a statute means
such statute as amended from time to time and includes any
successor legislation thereto and any regulations promulgated
thereunder. Whenever the words “include,”
“includes,” or “including” are used in this
Agreement, they shall be deemed to be followed by the words
“without limitation,” and the word “or” is
not exclusive. The word “extent” in the phrase
“to the extent” means the degree to which a subject or
other thing extends, and does not simply mean “if.” A
reference in this Agreement to $ or dollars is to U.S. dollars. The
definitions of terms herein shall apply equally to the singular and
plural forms of the terms defined. The words “hereof,”
“herein,” “hereby,” “hereto,”
and “hereunder” and words of similar import when used
in this Agreement shall refer to this Agreement as a whole and not
to any particular provision of this Agreement. References to
“this Agreement” shall include the Company Disclosure
Schedule and American Resources Disclosure Schedule.

 

(b). The
parties have participated jointly in negotiating and drafting this
Agreement. In the event that an ambiguity or a question of intent
or interpretation arises, this Agreement shall be construed as if
drafted jointly by the parties, and no presumption or burden of
proof shall arise favoring or disfavoring any party by virtue of
the authorship of any provision of this Agreement.

 

8.03. Survival.
None of the representations and warranties contained in this
Agreement or in any instrument delivered under this Agreement will
survive the Effective Time. This Section 8.03 does
not limit any covenant or agreement of
the parties contained in this Agreement which, by its terms,
contemplates performance after the Effective
Time.

 

8.04. Governing
Law. This Agreement and all
Legal Actions (whether based on contract, tort, or statute) arising
out of or relating to this Agreement or the actions of any of the
parties hereto in the negotiation, administration, performance, or
enforcement hereof, shall be governed by and construed in
accordance with the internal laws of the Commonwealth of Kentucky without giving effect to
any choice or conflict of law provision or rule (whether of the
Commonwealth of Kentucky or any other jurisdiction) that would
cause the application of Laws of any jurisdiction other than those
of the Commonwealth of
Kentucky.

 

8.05. Submission
to Jurisdiction. Each of the
parties hereto irrevocably agrees that any Legal Action with
respect to this Agreement and the rights and obligations arising
hereunder, or for recognition and enforcement of any judgment in
respect of this Agreement and the rights and obligations arising
hereunder brought by any other party hereto or its successors or
assigns shall be brought and determined exclusively in the
Commonwealth of Kentucky, or in the event (but only in the event)
that such court does not have subject matter jurisdiction over such
Legal Action, in the Commonwealth of Kentucky. Each of the parties
hereto agrees that mailing of process or other papers in connection
with any such Legal Action in the manner provided in Section
8.07 or in such other manner as may be
permitted by applicable Laws, will be valid and sufficient service
thereof. Each of the parties hereto hereby irrevocably submits with
regard to any such Legal Action for itself and in respect of its
property, generally and unconditionally, to the personal
jurisdiction of the aforesaid courts and agrees that it will not
bring any Legal Action relating to this Agreement or any of the
transactions contemplated by this Agreement in any court or
tribunal other than the aforesaid courts. Each of the parties
hereto hereby irrevocably waives, and agrees not to assert, by way
of motion, as a defense, counterclaim, or otherwise, in any Legal
Action with respect to this Agreement and the rights and
obligations arising hereunder, or for recognition and enforcement
of any judgment in respect of this Agreement and the rights and
obligations arising hereunder: (a) any claim that it is not
personally subject to the jurisdiction of the above named courts
for any reason other than the failure to serve process in
accordance with this Section 8.05; (b) any claim that it or its property is exempt or
immune from jurisdiction of any such court or from any legal
process commenced in such courts (whether through service of
notice, attachment prior to judgment, attachment in aid of
execution of judgment, execution of judgment or otherwise); and (c)
to the fullest extent permitted by the applicable Law, any claim
that (i) the suit, action, or proceeding in such court is brought
in an inconvenient forum, (ii) the venue of such suit, action, or
proceeding is improper, or (iii) this Agreement, or the subject
matter hereof, may not be enforced in or by such
courts.

 

 

18

 

 

8.06. Waiver
of Jury Trial. EACH PARTY
ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER
THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT
ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND
UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH
PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT: (A) NO
REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE
FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION; (B) SUCH PARTY HAS
CONSIDERED THE IMPLICATIONS OF THIS WAIVER; (C) SUCH PARTY MAKES
THIS WAIVER VOLUNTARILY; AND (D) SUCH PARTY HAS BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION
8.06.

 

8.07. Notices.
All notices, requests, consents, claims, demands, waivers, and
other communications hereunder shall be in writing and shall be
deemed to have been given: (a) when delivered by hand (with written
confirmation of receipt); (b) when received by the addressee if
sent by a nationally recognized overnight courier (receipt
requested); (c) on the date sent by facsimile or email of a PDF
document (with confirmation of transmission) if sent during normal
business hours of the recipient, and on the next Business Day if
sent after normal business hours of the recipient; or (d) on the
third day after the date mailed, by certified or registered mail,
return receipt requested, postage prepaid. Such communications must
be sent to the respective parties at the following addresses (or at
such other address for a party as shall be specified in a notice
given in accordance with this Section 8.07) or to such other Persons, addresses or facsimile
numbers as may be designated in writing by the Person entitled to
receive such communication as provided above.

 

8.08. Entire
Agreement. This Agreement
(including the Exhibits to this Agreement), the Company Disclosure
Schedule, the American Resources Disclosure Schedule, and the
Confidentiality Agreement constitute the entire agreement among the
parties with respect to the subject matter of this Agreement and
supersede all other prior agreements and understandings, both
written and oral, among the parties to this Agreement with respect
to the subject matter of this Agreement. In the event of any
inconsistency between the statements in the body of this Agreement,
the Confidentiality Agreement, the American Resources Disclosure
Schedule, and the Company Disclosure Schedule (other than an
exception expressly set forth as such in the American Resources
Disclosure Schedule or Company Disclosure Schedule), the statements
in the body of this Agreement will control.

 

8.09. No
Third-Party Beneficiaries. This
Agreement is for the sole benefit of the parties hereto and their
permitted assigns and respective successors and nothing herein,
express or implied, is intended to or shall confer upon any other
Person or entity any legal or equitable right, benefit, or remedy
of any nature whatsoever under or by reason of this
Agreement.

 

8.10. Severability.
If any term or provision of this Agreement is invalid, illegal, or
unenforceable in any jurisdiction, such invalidity, illegality, or
unenforceability shall not affect any other term or provision of
this Agreement or invalidate or render unenforceable such term or
provision in any other jurisdiction. Upon such determination that
any term or other provision is invalid, illegal, or unenforceable,
the parties hereto shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the parties as
closely as possible in a mutually acceptable manner in order that
the transactions contemplated hereby be consummated as originally
contemplated to the greatest extent possible.

 

8.11. Assignment.
This Agreement shall be binding upon and shall inure to the benefit
of the parties hereto and their respective successors and permitted
assigns. Neither American Resources nor the Company may assign its
rights or obligations hereunder without the prior written consent
of the other party, which consent shall not be unreasonably
withheld, conditioned, or delayed. No assignment shall relieve the
assigning party of any of its obligations
hereunder.

 

8.12. Remedies.
Except as otherwise provided in this Agreement, any and all
remedies expressly conferred upon a party to this Agreement will be
cumulative with, and not exclusive of, any other remedy contained
in this Agreement, at Law, or in equity. The exercise by a party to
this Agreement of any one remedy will not preclude the exercise by
it of any other remedy.

 

8.13. Counterparts;
Effectiveness. This Agreement
may be executed in any number of counterparts, all of which will be
one and the same agreement. This Agreement will become effective
when each party to this Agreement will have received counterparts
signed by all of the other parties.

 

 

 

[SPACE INTENTIONALLY BLANK; SIGNATURES ON FOLLOWING
PAGE]

 

 

 

 

 

19

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed as of the date first written above by their respective
officers thereunto duly authorized.

 

 

EMPIRE KENTUCKY LAND, INC.

 

 

By:           

/s/ Greg B. McDonald

Greg
B. McDonald, President

 

(the
“Company”)

 

 

 

AMERICAN RESOURCES CORPORATION

 

 

By:           

/s/ Mark C. Jensen

Mark
C. Jensen, Chief Executive Officer

 

(“American
Resources”)

 

 

 

20

 

APPENDIX A

 

DEFINED TERMS

 

“Acquisition Agreement” has the meaning set forth in
Section 5.04(a).

 

“Affiliate” means, with respect to any Person, any
other Person that directly or indirectly controls, is controlled
by, or is under common control with, such first Person. For the
purposes of this definition, “control” (including, the
terms “controlling,” “controlled by,” and
“under common control with”), as applied to any Person,
means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of
that Person, whether through the ownership of voting securities, by
Contract, or otherwise.

 

“Affordable Care Act” means the Patient Protection and
Affordable Care Act (PPACA), as amended by the Health Care and
Education Reconciliation Act (HCERA).

 

“Agreement” has the meaning set forth in the
Preamble.

 

“Antitrust Laws” has the meaning set forth in Section
3.03(c).

 

“Book-Entry Share” has the meaning set forth in Section
2.01(c).

 

“Business Day” means any day, other than Saturday,
Sunday, or any day on which banking institutions located in
Commonwealth of Kentucky are authorized or required by Law or other
governmental action to close.

 

“Cancelled Shares” has the meaning set forth in Section
2.01(a).

 

“Certificate” has the meaning set forth in Section
2.01(c).

 

“Charter Documents” means: (a) with respect to a
corporation, the charter, articles or certificate of incorporation,
as applicable, and bylaws thereof; (b) with respect to a limited
liability company, the certificate of formation or organization, as
applicable, and the operating or limited liability company
agreement, as applicable, thereof; (c) with respect to a
partnership, the certificate of formation and the partnership
agreement; and (d) with respect to any other Person the
organizational, constituent and/or governing documents and/or
instruments of such Person.

 

“Closing” has the meaning set forth in Section
1.02.

 

“Closing Date” has the meaning set forth in Section
1.02.

 

“COBRA” means the Consolidated Omnibus Budget
Reconciliation Act of 1985, as amended, and as codified in Section
4980B of the Code and Section 601 et. seq. of ERISA.

 

“Code” has the meaning set forth in the
Recitals.

 

“Company” has the meaning set forth in the
Preamble.

 

“Company Adverse Recommendation Change” shall mean the
Company Board: (a) failing to make, withdraw, amend, modify, or
materially qualify, in a manner adverse to American Resources, the
Company Board Recommendation; (b) failing to include the Company
Board Recommendation in the Joint Proxy Statement that is mailed to
the Company’s stockholders; (c) recommending a Takeover
Proposal; (d) failing to recommend against acceptance of any tender
offer or exchange offer for the shares of Company Common Stock
within ten Business Days after the commencement of such offer; (e)
failing to reaffirm (publicly, if so requested by American
Resources) the Company Board Recommendation within ten Business
Days after the date any Takeover Proposal (or material modification
thereto) is first publicly disclosed by the Company or the Person
making such Takeover Proposal; (f) making any public statement
inconsistent with the Company Board Recommendation; or (g)
resolving or agreeing to take any of the foregoing
actions.

 

 

21

 

 

“Company Balance Sheet” has the meaning set forth in
Section 3.04(e).

 

“Company Board” has the meaning set forth in the
Recitals.

 

“Company Board Recommendation” has the meaning set
forth in Section 3.03(d).

 

“Company Common Stock” has the meaning set forth in the
Recitals.

 

“Company Disclosure Schedule” means the disclosure
schedule, dated as of the date of this Agreement and delivered by
the Company to American Resources concurrently with the execution
of this Agreement.

 

“Company Equity Award” means a Company Stock Option or
a Company Restricted Share granted under one of the Company Stock
Plans, as the case may be.

 

“Company Financial Advisor” has the meaning set forth
in Section 3.10.

 

“Company IP” has the meaning set forth in Section
3.07(b).

 

“Company IP Agreements” means all licenses,
sublicenses, consent to use agreements, settlements, coexistence
agreements, covenants not to sue, waivers, releases, permissions,
and other Contracts, whether written or oral, relating to
Intellectual Property and to which the Company or any of its
Subsidiaries is a party, beneficiary, or otherwise
bound.

 

“Company IT Systems” means all software, computer
hardware, servers, networks, platforms, peripherals, data
communication lines, and other information technology equipment and
related systems that are owned or used by the Company or any of its
Subsidiaries.

 

“Company Material Adverse Effect” means any event,
occurrence, fact, condition, or change that is, or would reasonably
be expected to become, individually or in the aggregate, materially
adverse to: (a) the business, results of operations, condition
(financial or otherwise), or assets of the Company and its
Subsidiaries, taken as a whole; or (b) the ability of the Company
to consummate the transactions contemplated hereby on a timely
basis; provided, however, that a Company Material Adverse Effect
shall not be deemed to include events, occurrences, facts,
conditions or changes arising out of, relating to, or resulting
from: (i) changes generally affecting the economy, financial, or
securities markets; (ii) the announcement of the transactions
contemplated by this Agreement; (iii) any outbreak or escalation of
war or any act of terrorism; or (iv) general conditions in the
industry in which the Company and its Subsidiaries operate;
provided further, however, that any event, change, and effect
referred to in clauses (i), (iii), or (iv) immediately above shall
be taken into account in determining whether a Company Material
Adverse Effect has occurred or would reasonably be expected to
occur to the extent that such event, change, or effect has a
disproportionate effect on the Company and its Subsidiaries, taken
as a whole, compared to other participants in the industries in
which the Company and its Subsidiaries conduct their
businesses.

 

“Company Material Contract” has the meaning set forth
in Section 3.15(a).

 

“Company-Owned IP” means all Intellectual Property
owned by the Company or any of its Subsidiaries.

 

“Company Preferred Stock” has the meaning set forth in
Section 3.02(a).

 

“Company Restricted Share” has the meaning set forth in
Section 2.07(b).

 

“Company Securities” has the meaning set forth in
Section 3.02(b)(ii).

 

“Company Stock Option” has the meaning set forth in
Section 2.07(a).

 

“Company Stock Plans” means the following plans, in
each case as amended: [LIST OF PLANS].

 

“Company Stockholders Meeting” means the special
meeting of the stockholders of the Company to be held to consider
the adoption of this Agreement.

 

“Company Subsidiary Securities” has the meaning set
forth in Section 3.02(d).

 

“Confidentiality Agreement” has the meaning set forth
in Section 5.03(b).

 

“Consent” has the meaning set forth in Section
3.03(c).

 

“Contracts” means any contracts, agreements, licenses,
notes, bonds, mortgages, indentures, leases, or other binding
instruments or binding commitments, whether written or
oral.

 

 

22

 

 

“Dissenting Shares” has the meaning set forth in
Section 2.03.

 

“EDGAR” has the meaning set forth in Section
3.04(a).

 

“Effective Time” has the meaning set forth in Section
1.03(a).

 

“End Date” has the meaning set forth in Section
7.02(a).

 

“Environmental Laws” means any applicable Law, and any
Order or binding agreement with any Governmental Entity: (a)
relating to pollution (or the cleanup thereof) or the protection of
natural resources, endangered or threatened species, human health
or safety, or the environment (including ambient air, soil, surface
water or groundwater, or subsurface strata); or (b) concerning the
presence of, exposure to, or the management, manufacture, use,
containment, storage, recycling, reclamation, reuse, treatment,
generation, discharge, transportation, processing, production,
disposal or remediation of any Hazardous Materials. The term
“Environmental Law” includes, without limitation, the
following (including their implementing regulations and any state
analogs): the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980, as amended by the Superfund Amendments
and Reauthorization Act of 1986, 42 U.S.C. §§ 9601 et
seq.; the Solid Waste Disposal Act, as amended by the Resource
Conservation and Recovery Act of 1976, as amended by the Hazardous
and Solid Waste Amendments of 1984, 42 U.S.C. §§ 6901 et
seq.; the Federal Water Pollution Control Act of 1972, as amended
by the Clean Water Act of 1977, 33 U.S.C. §§ 1251 et
seq.; the Toxic Substances Control Act of 1976, as amended, 15
U.S.C. §§ 2601 et seq.; the Emergency Planning and
Community Right-to-Know Act of 1986, 42 U.S.C. §§ 11001
et seq.; the Clean Air Act of 1966, as amended by the Clean Air Act
Amendments of 1990, 42 U.S.C. §§ 7401 et seq.; and the
Occupational Safety and Health Act of 1970, as amended, 29 U.S.C.
§§ 651 et seq.

 

“ERISA” means the Employee Retirement Income Security
Act of 1974, as amended.

 

“Exchange Act” has the meaning set forth in Section
3.03(c).

 

“Exchange Agent” has the meaning set forth in Section
2.02(a).

 

“Exchange Fund” has the meaning set forth in Section
2.02(a).

 

“Exchange Ratio” has the meaning set forth in Section
2.01(b).

 

“Expenses” means, with respect to any Person, all
reasonable and documented out-of-pocket fees and expenses
(including all fees and expenses of counsel, accountants, financial
advisors, and investment bankers of such Person and its
Affiliates), incurred by such Person or on its behalf in connection
with or related to the authorization, preparation, negotiation,
execution, and performance of this Agreement and any transactions
related thereto.

 

“Certificate of Merger” has the meaning set forth in
Section 1.03(a).

 

“Merger” has the meaning set forth in the
Recitals.

 

“Foreign Antitrust Laws” has the meaning set forth in
Section 3.03(c).

 

“Form S-4” has the meaning set forth in Section
3.17.

 

“GAAP” has the meaning set forth in Section
3.04(b).

 

“Governmental Antitrust Authority” has the meaning set
forth in Section 5.11(b).

 

“Governmental Entity” has the meaning set forth in
Section 3.03(c).

 

“Hazardous Substance” shall mean: (a) any material,
substance, chemical, waste, product, derivative, compound, mixture,
solid, liquid, mineral, or gas, in each case, whether naturally
occurring or man-made, that is hazardous, acutely hazardous, toxic,
or words of similar import or regulatory effect under Environmental
Laws; and (b) any petroleum or petroleum-derived products, radon,
radioactive materials or wastes, asbestos in any form, lead or
lead-containing materials, urea formaldehyde foam insulation, and
polychlorinated biphenyls.

 

 

23

 

 

“HIPAA” means the Health Insurance Portability and
Accountability Act of 1996, as amended.

 

“HSR Act” has the meaning set forth in Section
3.03(c).

 

“Indemnified Party” has the meaning set forth in
Section 5.10(a).

 

“Intellectual Property” means any and all of the
following arising pursuant to the Laws of any jurisdiction
throughout the world: (a) trademarks, service marks, trade names,
and similar indicia of source or origin, all registrations and
applications for registration thereof, and the goodwill connected
with the use of and symbolized by the foregoing; (b) copyrights and
all registrations and applications for registration thereof; (c)
trade secrets and know-how; (d) patents and patent applications;
(e) internet domain name registrations; and (f) other intellectual
property and related proprietary rights.

 

“IRS” means the United States Internal Revenue
Service.

 

“Knowledge” means: (a) with respect to the Company and
its Subsidiaries, the actual knowledge of each of the individuals
listed in Section 8.01 of the Company’s Disclosure Schedule;
and (b) with respect to American Resources and its Subsidiaries,
the actual knowledge of each of the individuals listed in Section
8.01 of the American Resources’ Disclosure Schedule; in each
case, after due inquiry.

 

“Laws” means any federal, state, local, municipal,
foreign, multi-national or other laws, common law, statutes,
constitutions, ordinances, rules, regulations, codes, Orders, or
legally enforceable requirements enacted, issued, adopted,
promulgated, enforced, ordered, or applied by any Governmental
Entity.

 

“Lease” shall mean all leases, subleases, licenses,
concessions, and other agreements (written or oral) under which the
Company or any of its Subsidiaries holds any Leased Real Estate,
including the right to all security deposits and other amounts and
instruments deposited by or on behalf of the Company or any of its
Subsidiaries thereunder.

 

“Leased Real Estate” shall mean all leasehold or
subleasehold estates and other rights to use or occupy any land,
buildings, structures, improvements, fixtures, or other interest in
real property held by the Company or any of its
Subsidiaries.

 

“Legal Action” means any legal, administrative,
arbitral, or other proceedings, suits, actions, investigations,
examinations, claims, audits, hearings, charges, complaints,
indictments, litigations, or examinations.

 

“Liability” shall mean any liability, indebtedness, or
obligation of any kind (whether accrued, absolute, contingent,
matured, unmatured, determined, determinable, or otherwise, and
whether or not required to be recorded or reflected on a balance
sheet under GAAP).

 

“Liens” means, with respect to any property or asset,
all pledges, liens, mortgages, charges, encumbrances,
hypothecations, options, rights of first refusal, rights of first
offer, and security interests of any kind or nature
whatsoever.

 

“Maximum Premium” has the meaning set forth in Section
5.10(b).

 

“Merger” has the meaning set forth in the
Recitals.

 

“Merger Consideration” has the meaning set forth in
Section 2.01(b).

 

“Net Shares” has the meaning set forth in Section
2.07(a).

 

“Nasdaq” has the meaning set forth in Section
2.01(e).

 

“Order” has the meaning set forth in Section
3.09.

 

“Other Governmental Approvals” has the meaning set
forth in Section 3.03(c).

 

“Owned Real Estate” shall mean all land, including
without limitation, owned surface and owned mineral rights,
together with all buildings, structures, fixtures, and improvements
located thereon and all easements, rights of way, and appurtenances
relating thereto, owned by the Company or any of its
Subsidiaries.

 

“American Resources” has the meaning set forth in the
Preamble.

 

“American Resources Adverse Recommendation Change”
shall mean the American Resources Board: (a) failing to make,
withdraw, amend, modify, or materially qualify, in a manner adverse
to the Company, the American Resources Board Recommendation; (b)
failing to include the American Resources Board Recommendation in
the Joint Proxy Statement that is mailed to the American
Resources’ stockholders; (c) recommending a Takeover
Proposal; (d) failing to recommend against acceptance of any tender
offer or exchange offer for the shares of American Resources Common
Stock within ten Business Days after the commencement of such
offer; (e) failing to reaffirm (publicly, if so requested by the
Company) the American Resources Board Recommendation within ten
Business Days after the date any Takeover Proposal (or material
modification thereto) is first publicly disclosed by American
Resources or the Person making such Takeover Proposal; (f) making
any public statement inconsistent with the American Resources Board
Recommendation; or (g) resolving or agreeing to take any of the
foregoing actions.

 

“American Resources Balance Sheet” has the meaning set
forth in Section 4.04(c).

 

“American Resources Benefit Plans” has the meaning set
forth in Section 5.09(b).

 

“American Resources Board” has the meaning set forth in
the Recitals.

 

 

24

 

 

“American Resources Board Recommendation” has the
meaning set forth in Section 4.03(d)(i).

 

“American Resources Common Stock” has the meaning set
forth in the Recitals.

 

“American Resources Disclosure Schedule” means the
disclosure letter, dated as of the date of this Agreement and
delivered by American Resources to the Company concurrently with
the execution of this Agreement.

 

“American Resources Equity Award” means a American
Resources Stock Option or a American Resources Restricted Share, as
the case may be.

 

“American Resources Material Adverse Effect” means any
event, occurrence, fact, condition, or change that is, or would
reasonably be expected to become, individually or in the aggregate,
materially adverse to: (a) the business, results of operations,
condition (financial or otherwise), or assets of American Resources
and its Subsidiaries, taken as a whole; or (b) the ability of
American Resources to consummate the transactions contemplated
hereby on a timely basis; provided, however, that an American
Resources Material Adverse Effect shall not be deemed to include
events, occurrences, facts, conditions, or changes arising out of,
relating to, or resulting from: (i) changes generally affecting the
economy, financial, or securities markets; (ii) the announcement of
the transactions contemplated by this Agreement; (iii) any outbreak
or escalation of war or any act of terrorism; (iv) general
conditions in the industry in which American Resources and its
Subsidiaries operate; (v) any failure, in and of itself, by
American Resources to meet any internal or published projections,
forecasts, estimates, or predictions in respect of revenues,
earnings, or other financial or operating metrics for any period
(it being understood that the facts or occurrences giving rise to
or contributing to such failure may be deemed to constitute, or be
taken into account in determining whether there has been or would
reasonably be expected to become, an American Resources Material
Adverse Effect, to the extent permitted by this definition and not
otherwise excepted by a clause of this proviso); or (vi) any
change, in and of itself, in the market price or trading volume of
American Resources’ securities or in its credit ratings (it
being understood that the facts or occurrences giving rise to or
contributing to such change may be deemed to constitute, or be
taken into account in determining whether there has been or would
reasonably be expected to become, an American Resources Material
Adverse Effect, to the extent permitted by this definition and not
otherwise excepted by a clause of this proviso), provided further,
however, that any event, change, and effect referred to in clauses
(i), (iii), or (iv) immediately above shall be taken into account
in determining whether an American Resources Material Adverse
Effect has occurred or would reasonably be expected to occur to the
extent that such event, change, or effect has a disproportionate
effect on American Resources and its Subsidiaries, taken as a
whole, compared to other participants in the industries in which
American Resources and its Subsidiaries conduct their
businesses.

 

“American Resources Series A Preferred Stock” has the
meaning set forth in Section 4.02(a).

 

“American Resources Series C Preferred Stock” has the
meaning set forth in Section 4.02(a).

 

 “American Resources Restricted Share” means any
American Resources Common Stock subject to vesting, repurchase, or
other lapse of restrictions granted under any American Resources
Stock Plan.

 

“American Resources SEC Documents” has the meaning set
forth in Section 4.04(a).

 

“American Resources Securities” has the meaning set
forth in Section 4.02(b)(ii).

 

“American Resources Stockholders Meeting” means the
special meeting of the stockholders of American Resources to be
held to consider the approval of the American Resources Stock
Issuance.

 

“American Resources Stock Issuance” has the meaning set
forth in the Recitals.

 

“American Resources Stock Option” means any option to
purchase American Resources Common Stock granted under any American
Resources Stock Plan.

 

“American Resources Stock Plans” means the following
plans, in each case as amended: the 2018 Stock Option Plan dated
July 1, 2018.

 

“American Resources Subsidiary Securities” has the
meaning set forth in Section 4.02(d).

 

“American Resources Termination Fee” means
$500,000.00.

 

“American Resources Trading Price” means the volume
weighted average price per share of American Resources Common Stock
as reported on the Nasdaq for the 10 consecutive trading days
ending on the trading day immediately preceding the Effective Time
(as adjusted as appropriate to reflect any stock splits, stock
dividends, combinations, reorganizations, reclassifications, or
similar events).

 

“American Resources Voting Debt” has the meaning set
forth in Section 4.02(c).

 

“PBGC” has the meaning set forth in Section
3.12(d).

 

“Permits” has the meaning set forth in Section
3.08(b).

 

 

25

 

 

“Permitted Liens” means: (a) statutory Liens for
current Taxes or other governmental charges not yet due and payable
or the amount or validity of which is being contested in good faith
(provided appropriate reserves required pursuant to GAAP have been
made in respect thereof); (b) mechanics’, carriers’,
workers’, repairers’, and similar statutory Liens
arising or incurred in the ordinary course of business for amounts
which are not delinquent or which are being contested by
appropriate proceedings (provided appropriate reserves required
pursuant to GAAP have been made in respect thereof); (c) zoning,
entitlement, building, and other land use regulations imposed by
Governmental Entities having jurisdiction over such Person’s
owned or leased real property, which are not violated by the
current use and operation of such real property; (d) covenants,
conditions, restrictions, easements, and other similar non-monetary
matters of record affecting title to such Person’s owned or
leased real property, which do not materially impair the occupancy
or use of such real property for the purposes for which it is
currently used in connection with such Person’s businesses;
(e) any right of way or easement related to public roads and
highways, which do not materially impair the occupancy or use of
such real property for the purposes for which it is currently used
in connection with such Person’s businesses; and (f) Liens
arising under workers’ compensation, unemployment insurance,
social security, retirement, and similar legislation.

 

“Per Share Cash Equivalent Consideration” has the
meaning set forth in Section 2.07(a).

 

“Person” means any individual, corporation, limited or
general partnership, limited liability company, limited liability
partnership, trust, association, joint venture, Governmental
Entity, or other entity or group (which term will include a
“group” as such term is defined in Section 13(d)(3) of
the Exchange Act).

 

“Real Estate” means the Owned Real Estate and the
Leased Real Estate.

 

“Representatives” has the meaning set forth in Section
5.04(a).

 

“Requisite Company Vote” has the meaning set forth in
Section 3.03(a).

 

“Requisite American Resources Vote” has the meaning set
forth in Section 4.03(a).

 

“Securities Act” has the meaning set forth in Section
3.03(c).

 

“Merger Consideration” has the meaning set forth in
Section 2.01(b).

 

“Subsidiary” of a Person means a corporation,
partnership, limited liability company, or other business entity of
which a majority of the shares of voting securities is at the time
beneficially owned, or the management of which is otherwise
controlled, directly or indirectly, through one or more
intermediaries, or both, by such Person.

 

“Superior Proposal” means a bona fide written Takeover
Proposal with respect to the applicable party or its Subsidiaries
(except that, for purposes of this definition, each reference in
the definition of “Takeover Proposal” to
“15%” shall be “50%”), that such
party’s board determines in good faith (after consultation
with outside legal counsel and such party’s financial
advisor) is more favorable from a financial point of view to the
holders of such party’s common stock than the transactions
contemplated by this Agreement, taking into account: (a) all
financial considerations; (b) the identity of the third party
making such Takeover Proposal; (c) the anticipated timing,
conditions (including any financing condition or the reliability of
any debt or equity funding commitments) and prospects for
completion of such Takeover Proposal; (d) the other terms and
conditions of such Takeover Proposal and the implications thereof
on such party, including relevant legal, regulatory, and other
aspects of such Takeover Proposal deemed relevant by such party;
and (e) any revisions to the terms of this Agreement and the
transaction contemplated by this Agreement proposed by the other
party during the Superior Proposal Notice Period set forth in
Section 5.04(d).

 

“Superior Proposal Notice Period” has the meaning set
forth in Section 5.04(d).

 

“Takeover Proposal” means with respect to the Company
or American Resources, as the case may be, an inquiry, proposal, or
offer from, or indication of interest in making a proposal or offer
by, any Person or group relating to any transaction or series of
related transactions (other than the transactions contemplated by
this Agreement), involving any: (a) direct or indirect acquisition
of assets of such party hereto or its Subsidiaries (including any
voting equity interests of Subsidiaries, but excluding sales of
assets in the ordinary course of business) equal to 15% or more of
the fair market value of such party’s consolidated assets or
to which 15% or more of such party’s net revenues or net
income on a consolidated basis are attributable; (b) direct or
indirect acquisition of 15% or more of the voting equity interests
of such party hereto or any of its Subsidiaries whose business
constitutes 15% or more of the consolidated net revenues, net
income, or assets of such party and its Subsidiaries, taken as a
whole; (c) tender offer or exchange offer that if consummated would
result in any Person or group (as defined in Section 13(d) of the
Exchange Act) beneficially owning (within the meaning of Section
13(d) of the Exchange Act) 15% or more of the voting power of such
party hereto; (d) merger, consolidation, other business
combination, or similar transaction involving such party hereto or
any of its Subsidiaries, pursuant to which such Person or group (as
defined in Section 13(d) of the Exchange Act) would own 15% or more
of the consolidated net revenues, net income, or assets of such
party and its Subsidiaries, taken as a whole; (e) liquidation,
dissolution (or the adoption of a plan of liquidation or
dissolution), or recapitalization or other significant corporate
reorganization of such party hereto or one or more of its
Subsidiaries which, individually or in the aggregate, generate or
constitute 15% or more of the consolidated net revenues, net
income, or assets of such party and its Subsidiaries, taken as a
whole; or (f) any combination of the foregoing.

 

“Taxes” means all federal, state, local, foreign and
other income, gross receipts, sales, use, production, ad valorem,
transfer, franchise, registration, profits, license, lease,
service, service use, withholding, payroll, employment,
unemployment, estimated, excise, severance, environmental, stamp,
occupation, premium, property (real or personal), real property
gains, windfall profits, customs, duties or other taxes, fees,
assessments, or charges of any kind whatsoever, together with any
interest, additions or penalties with respect thereto and any
interest in respect of such additions or penalties.

 

“Tax Returns” means any return, declaration, report,
claim for refund, information return or statement, or other
document relating to Taxes, including any schedule or attachment
thereto, and including any amendment thereof.

 

“Treasury Regulations” means the Treasury regulations
promulgated under the Code.

 

“Voting Debt” has the meaning set forth in Section
3.02(c).

 

 

 

 

 

 

26EX-4.1

 Exhibit 4.1 

Execution Copy 
  

 
 SERIES
2019-1 SUPPLEMENT 
 Dated as of February 14, 2019 

to 
 FOURTH AMENDED AND RESTATED

 POOLING AND SERVICING AGREEMENT 

Dated as of April 1, 2018 

$1,714,287,000 
  

 
 AMERICAN EXPRESS
CREDIT ACCOUNT MASTER TRUST 
 Series 2019-1 

 
  

among 
 AMERICAN EXPRESS
RECEIVABLES FINANCING CORPORATION III LLC 
 as Transferor 

AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC. 

as Servicer 
 and 

THE BANK OF NEW YORK MELLON 
 as
Trustee 
 on behalf of the Series 2019-1 Certificateholders 

 
  

 

 TABLE OF CONTENTS 

 

							
		  		  	 	Page	 
			
	ARTICLE I	  	CREATION OF THE SERIES 2019-1 CERTIFICATES	  	 	1	 
			
	 Section 1.01.
	  	Designation	  	 	1	 
			
	ARTICLE II	  	DEFINITIONS	  	 	2	 
			
	 Section 2.01.
	  	Definitions	  	 	2	 
			
	ARTICLE III	  	SERVICING FEE	  	 	14	 
			
	 Section 3.01.
	  	Servicing Compensation	  	 	14	 
			
	ARTICLE IV	  	RIGHTS OF SERIES 2019-1 CERTIFICATEHOLDERS AND ALLOCATION AND APPLICATION OF COLLECTIONS	  	 	15	 
			
	 Section 4.01.
	  	Collections and Allocations	  	 	15	 
			
	 Section 4.02.
	  	Determination of Monthly Interest	  	 	17	 
			
	 Section 4.03.
	  	Principal Funding Account; Controlled Accumulation Period	  	 	18	 
			
	 Section 4.04.
	  	Required Amount	  	 	20	 
			
	 Section 4.05.
	  	Application of Class A Available Funds, Class B Available Funds, Collateral Available Funds and Available Principal Collections	  	 	21	 
			
	 Section 4.06.
	  	Defaulted Amounts; Investor Charge-Offs	  	 	23	 
			
	 Section 4.07.
	  	Excess Spread; Excess Finance Charge Collections	  	 	24	 
			
	 Section 4.08.
	  	Reallocated Principal Collections	  	 	25	 
			
	 Section 4.09.
	  	Excess Finance Charge Collections	  	 	26	 
			
	 Section 4.10.
	  	Reallocated Investor Finance Charge Collections	  	 	26	 
			
	 Section 4.11.
	  	Shared Principal Collections	  	 	27	 
			
	 Section 4.12.
	  	Reserve Account	  	 	27	 
			
	 Section 4.13.
	  	Investment Instructions	  	 	29	 
			
	 Section 4.14.
	  	[Reserved]	  	 	29	 
			
	ARTICLE V	  	DISTRIBUTIONS AND REPORTS TO SERIES 2019- 1 CERTIFICATEHOLDERS	  	 	30	 
			
	 Section 5.01.
	  	Distributions	  	 	30	 
			
	 Section 5.02.
	  	Reports and Statements to Series 2019-1 Certificateholders	  	 	31	 
			
	ARTICLE VI	  	PAY-OUT EVENTS	  	 	31	 
			
	 Section 6.01.
	  	Pay-Out Events	  	 	31	 
			
	ARTICLE VII	  	OPTIONAL REPURCHASE; SERIES TERMINATION	  	 	33	 
			
	 Section 7.01.
	  	Optional Repurchase	  	 	33	 
			
	 Section 7.02.
	  	Series Termination	  	 	33	 

  
 -i- 

 TABLE OF CONTENTS 

(continued) 
  

							
		  		  	 	Page	 
			
	ARTICLE VIII	  	FINAL DISTRIBUTIONS	  	 	34	 
			
	 Section 8.01.
	  	Sale of Receivables or Certificateholders’ Interest pursuant to Section 2.06 or 10.01 of the Agreement and Section 7.01 or 7.02 of this Supplement	  	 	34	 
			
	 Section 8.02.
	  	Distribution of Proceeds of Sale, Disposition or Liquidation of the Receivables pursuant to Section 9.01 of the Agreement	  	 	35	 
			
	ARTICLE IX	  	MISCELLANEOUS PROVISIONS	  	 	36	 
			
	 Section 9.01.
	  	Ratification of Agreement	  	 	36	 
			
	 Section 9.02.
	  	Counterparts	  	 	36	 
			
	 Section 9.03.
	  	Governing Law	  	 	36	 
			
	 Section 9.04.
	  	[Reserved]	  	 	36	 
			
	 Section 9.05.
	  	FATCA Matters	  	 	36	 
			
	 Section 9.06.
	  	Uncertificated Securities	  	 	37	 
			
	 Section 9.07.
	  	Transfers of the Collateral Interest	  	 	37	 
			
	EXHIBITS	  		  			
			
	 Exhibit A-1
	  	Form of Class A Certificate	  	 	A-1-1	 
			
	 Exhibit A-2
	  	Form of Class B Certificate	  	 	A-2-1	 
			
	 Exhibit B
	  	Form of Monthly Payment Instructions and Notification to the Trustee	  	 	B-1	 
			
	 Exhibit C-1
	  	Form of Monthly Statement	  	 	C-1-1	 
			
	 Exhibit C-2
	  	Form of Annual Payment Information	  	 	C-2-1	 
			
	 Exhibit D
	  	Form of Monthly Servicer’s Certificate	  	 	D-1	 
			
	 Exhibit E
	  	Form of Investment Letter	  	 	E-1	 

  

  
 -ii- 

 SERIES 2019-1 SUPPLEMENT, dated as of
February 14, 2019 (the “Supplement”), among AMERICAN EXPRESS RECEIVABLES FINANCING CORPORATION III LLC, a Delaware limited liability company, as Transferor (the “Transferor”), AMERICAN EXPRESS TRAVEL RELATED
SERVICES COMPANY, INC., a New York corporation, as Servicer, and THE BANK OF NEW YORK MELLON, a banking corporation organized and existing under the laws of the State of New York, not in its individual capacity, but solely as Trustee. 

Pursuant to the Fourth Amended and Restated Pooling and Servicing Agreement, dated as of April 1, 2018 (as amended and
restated and as otherwise amended and supplemented, the “Agreement”), among the Transferor, the Servicer and the Trustee, the AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST (the “Trust”) has been created.
Section 6.03 of the Agreement provides that the Transferor may from time to time direct the Trustee to authenticate one or more new Series of Investor Certificates representing fractional undivided interests in the Trust. The Principal Terms of
any new Series are to be set forth in a Supplement to the Agreement. 
 Pursuant to this Supplement, the Transferor and the
Trustee shall create a new Series of Investor Certificates and specify the Principal Terms thereof. 
 ARTICLE I 

Creation of the Series 2019-1 Certificates 

Section 1.01.        Designation. 

(a)        There is hereby created a Series of Investor Certificates to be issued
pursuant to the Agreement and this Supplement to be known as “American Express Credit Account Master Trust, Series 2019-1.” The Series 2019-1 Certificates
shall be issued in two Classes, the first of which shall be known as the “Class A Series 2019-1 2.87% Asset Backed Certificates” and the second of which shall be known as the “Class B
Series 2019-1 3.07% Asset Backed Certificates.” In addition, there is hereby created a third Class of uncertificated interests in the Trust which shall be known as the “Collateral Interest,
Series 2019-1” and which shall be deemed to be “Investor Certificates” for all purposes under the Agreement and this Supplement other than for purposes of the definition of the term “Tax
Opinion” in Section 1.01 of the Agreement. The Collateral Interest shall be considered a Class of Series 2019-1 for all purposes of the Agreement and this Supplement, including for purposes of
voting concerning the liquidation of the Trust pursuant to Section 9.01 of the Agreement. The Collateral Interest Holder shall be deemed to be the Series Enhancer for all purposes under the Agreement and this Supplement. 

(b)        Series 2019-1 shall be included in
Group I and shall be a Principal Sharing Series. Series 2019-1 shall be an Excess Allocation Series. Series 2019-1 shall not be subordinated to any other Series.
Notwithstanding any provision in the Agreement or in this Supplement to the contrary, the first Distribution Date with respect to Series 2019-1 shall be the March 2019 Distribution Date and the first Monthly
Period shall begin on and include the Closing Date and end on and include February 28, 2019. 

(c)        Except as expressly provided herein, (i) the provisions of Article VI
and Article XII of the Agreement relating to the registration, authentication, delivery, presentation, cancellation and surrender of Registered Certificates shall not be applicable to the Collateral Interest, and (ii) the provisions of
Section 3.07 of the Agreement shall not cause the Collateral Interest to be treated as debt for federal, state and local income and franchise tax purposes, but rather the Transferor intends, and together with the Collateral Interest Holder,
agree to treat the Collateral Interest for federal, state and local income and franchise tax purposes as representing an equity interest in the assets of the Trust. 

  
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 (d)        Pursuant to
Section 6.03(c) of the Agreement, the Transferor may, from time to time, increase the amount of the Series 2019-1 Certificates by issuing and selling additional Series
2019-1 Certificates. Any additional Series 2019-1 Certificates so issued shall be treated, for all purpose, like the Series
2019-1 Certificates subject to the terms of the Agreement and this Supplement. 

(e)        Series 2019-1 shall be a
Repurchase Reporting Series. 
 (f)        Series
2019-1 shall be an Investor Communication Reporting Series. 

(g)        In connection with the issuance of any future Series of Investor
Certificates, notwithstanding subsection 6.03(b)(iv) of the Agreement, the Rating Agency Condition need not be satisfied for Series 2019-1 with respect to any Rating Agency (other than Moody’s) then
rating Series 2019-1. 
 ARTICLE II 

Definitions 

Section 2.01.        Definitions. 

(a)        Whenever used in this Supplement, the following words and phrases shall
have the following meanings, and the definitions of such terms are applicable to the singular as well as the plural forms of such terms and the masculine as well as the feminine and neuter genders of such terms. 

“Additional Interest” shall mean, with respect to any Distribution Date, the Class A
Additional Interest, the Class B Additional Interest and the Collateral Additional Interest for such Distribution Date. 

“Adjusted Invested Amount” shall mean, with respect to any date of
determination, an amount equal to the Invested Amount less the Principal Funding Account Balance on such date of determination. 

“Assignee” shall have the meaning specified in subsection 9.07(a). 

“Available Principal Collections” shall mean, with respect to any
Monthly Period, an amount equal to the sum of (a) (i) an amount equal to the Principal Allocation Percentage of Series2019-1 Allocable Principal Collections received during such Monthly Period minus
(ii) the amount of Reallocated Principal Collections with respect to such Monthly Period which pursuant to Section 4.08 are required to fund the Required Amount for the related Distribution Date, (b) any Shared Principal
Collections with respect to other Series that are allocated to Series 2019-1 in accordance with Section 4.04 of the Agreement and Section 4.11 of this Supplement, and (c) any other amounts which
pursuant to Section 4.05 or 4.07 of this Supplement are to be treated as Available Principal Collections with respect to the related Distribution Date. 

“Available Reserve Account Amount” shall mean, with
respect to any Distribution Date, the lesser of (a) the amount on deposit in the Reserve Account on such date (before giving effect to any deposit to be made to the Reserve Account on such date) and (b) the Required Reserve Account Amount.

 “Base Rate” shall mean, with respect to any Monthly Period, the annualized
percentage equivalent of a fraction, the numerator of which is equal to the sum of the Class A Monthly Interest, the Class B Monthly Interest (calculated as if the Class B Invested Amount equals the outstanding principal balance of
the Class B Certificates), the Collateral Senior Minimum Monthly Interest and the Monthly 

  
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Servicing Fee with respect to the related Distribution Date and the denominator of which is the Invested Amount as of the last day of the preceding Monthly Period. 

“Class A Additional Interest” shall have the
meaning specified in subsection 4.02(a). 

“Class A Adjusted Invested 
Amount” shall mean, with respect to any date of determination, an amount equal to the Class A Invested Amount less the Principal Funding Account Balance (but not in excess of the Class A Invested Amount) on such date. 

“Class A Available Funds” shall mean, with respect
to any Monthly Period, an amount equal to the sum of (a) if such Monthly Period relates to a Distribution Date with respect to the Controlled Accumulation Period, the Class A Floating Percentage of Principal Funding Account Investment
Proceeds, if any, with respect to such Distribution Date, (b) the Class A Floating Percentage of the Reallocated Investor Finance Charge Collections and (c) the amount of funds, if any, to be withdrawn from the Reserve Account which,
pursuant to subsection 4.12(d), are required to be included in Class A Available Funds with respect to such Distribution Date. 

“Class A Certificate Rate” shall mean, for any
Interest Accrual Period with respect to the Class A Certificates, a per annum rate equal to 2.87%. 

“Class A Certificateholder” shall mean the Person in whose name a
Class A Certificate is registered in the Certificate Register. 

“Class A Certificates” shall mean any one of the Certificates executed
by the Transferor and authenticated by or on behalf of the Trustee, substantially in the form of Exhibit A-l. 

“Class A Floating Percentage” shall mean, with
respect to any Monthly Period, the percentage equivalent (which percentage shall never exceed 100%) of a fraction, the numerator of which is equal to the Class A Adjusted Invested Amount as of the close of business on the last day of the
preceding Monthly Period and the denominator of which is equal to the Adjusted Invested Amount as of such day; provided, however, that with respect to the first Monthly Period, the Class A Floating Percentage shall mean the percentage
equivalent of a fraction, the numerator of which is the Class A Initial Invested Amount and the denominator of which is the Initial Invested Amount. 

“Class A Initial Invested Amount” shall mean $1,500,000,000. 

“Class A Interest Shortfall” shall have the meaning
specified in subsection 4.02(a). 

“Class A Invested Amount” shall mean, on any date
of determination, an amount equal to (a) the Class A Initial Invested Amount, minus (b) the aggregate amount of principal payments made to the Class A Certificateholders on or prior to such date, minus (c) the
excess, if any, of (i) the aggregate amount of Class A Investor Charge-Offs for all prior Distribution Dates over (ii) Class A Investor Charge-Offs reimbursed pursuant to subsection 4.07(b) prior to such date, and
plus (d) the principal amount of any additional Class A Certificates issued after the Closing Date in accordance with Section 6.03(c) of the Agreement; provided, however, that the Class A Invested Amount
shall not be reduced below zero. 

“Class A Investor Charge-Offs” shall have the
meaning specified in subsection 4.06(a). 

“Class A Investor Default 
Amount” shall mean, with respect to each Distribution Date, an amount equal to the product of (i) the Investor Default Amount for such Distribution Date and (ii) the Class A Floating Percentage for such Monthly Period. 

  
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“Class A Monthly Interest” shall have the meaning
specified in subsection 4.02(a). 

“Class A Principal Percentage” shall mean, with
respect to any Monthly Period (i) during the Revolving Period, the percentage equivalent (which percentage shall never exceed 100%) of a fraction, the numerator of which is the Class A Invested Amount as of the last day of the immediately
preceding Monthly Period and the denominator of which is the Invested Amount as of such day and (ii) during the Controlled Accumulation Period, the Early Amortization Period or any Partial Amortization Period, the percentage equivalent (which
percentage shall never exceed 100%) of a fraction, the numerator of which is the Class A Invested Amount as of the close of business on the date on which the Revolving Period shall have terminated and the denominator of which is the Invested
Amount as of the close of business on the date on which the Revolving Period shall have terminated; provided, however, that with respect to the first Monthly Period, the Class A Principal Percentage shall mean the percentage equivalent
of a fraction, the numerator of which is the Class A Initial Invested Amount and denominator of which is the Initial Invested Amount. 

“Class A Required Amount” shall have the meaning
specified in subsection 4.04(a). 

“Class A Servicing Fee” shall have the meaning
specified in Section 3.01. 

“Class B Additional Interest” shall have the
meaning specified in subsection 4.02(b). 

“Class B Adjusted Invested 
Amount” shall mean, with respect to any date of determination, an amount equal to the Class B Invested Amount less the positive difference, if any, between the Principal Funding Account Balance and the Class A Invested Amount on
such date. 
 “Class B Available Funds” shall
mean, with respect to any Monthly Period, an amount equal to the sum of (a) the Class B Floating Percentage of the Reallocated Investor Finance Charge Collections and (b) if such Monthly Period relates to a Distribution Date with
respect to the Controlled Accumulation Period, the Class B Floating Percentage of the Principal Funding Account Investment Proceeds, if any, with respect to such Distribution Date. 

“Class B Certificate Rate” shall mean, for any
Interest Accrual Period with respect to the Class B Certificates, a per annum rate equal to 3.07%. 

“Class B Certificateholder” shall mean the Person in whose name a
Class B Certificate is registered in the Certificate Register. 

“Class B Certificates” shall mean any one of the Certificates executed
by the Transferor and authenticated by or on behalf of the Trustee, substantially in the form of Exhibit A-2. 

“Class B Floating Percentage” shall mean, with
respect to any Monthly Period, the percentage equivalent (which percentage shall never exceed 100%) of a fraction, the numerator of which is equal to the Class B Adjusted Invested Amount as of the close of business on the last day of the
preceding Monthly Period and the denominator of which is equal to the Adjusted Invested Amount as of the close of business on such day; provided, however, that with respect to the first Monthly Period, the Class B Floating Percentage
shall mean the percentage equivalent of a fraction, the numerator of which is the Class B Initial Invested Amount and the denominator of which is the Initial Invested Amount. 

“Class B Initial Invested Amount” shall mean $64,286,000. 

“Class B Interest Shortfall” shall have the meaning
specified in subsection 4.02(b). 

  
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“Class B Invested Amount” shall mean, on any date of
determination, an amount equal to (a) the Class B Initial Invested Amount, minus (b) the aggregate amount of principal payments made to the Class B Certificateholders prior to such date, minus (c) the aggregate
amount of Class B Investor Charge-Offs for all prior Distribution Dates, minus (d) the amount of Reallocated Principal Collections allocated on all prior Distribution Dates pursuant to subsection 4.08(a) (excluding any Reallocated
Principal Collections that have resulted in a reduction in the Collateral Invested Amount pursuant to Section 4.08), minus (e) an amount equal to the amount by which the Class B Invested Amount has been reduced on all prior
Distribution Dates pursuant to subsection 4.06(a), plus (f) the amount of Excess Spread and Excess Finance Charge Collections allocated and available on all prior Distribution Dates pursuant to subsection 4.07(e) for the purpose of
reimbursing amounts deducted pursuant to the foregoing clauses (c), (d) and (e), and plus (g) the principal amount of any additional Class B Certificates issued after the Closing Date in accordance with Section 6.03(c) of the
Agreement; provided, however, that the Class B Invested Amount shall not be reduced below zero. 

“Class B Investor Charge-Offs” shall have the
meaning specified in subsection 4.06(b). 

“Class B Investor Default 
Amount” shall mean, with respect to each Distribution Date, an amount equal to the product of (i) the Investor Default Amount for such Distribution Date and (ii) the Class B Floating Percentage for such Monthly Period. 

“Class B Monthly Interest” shall have the meaning
specified in subsection 4.02(b). 

“Class B Principal Percentage” shall mean, with
respect to any Monthly Period, (i) during the Revolving Period, the percentage equivalent (which percentage shall never exceed 100%) of a fraction, the numerator of which is the Class B Invested Amount as of the last day of the immediately
preceding Monthly Period and the denominator of which is the Invested Amount as of such day and (ii) during the Controlled Accumulation Period, the Early Amortization Period or any Partial Amortization Period, the percentage equivalent (which
percentage shall never exceed 100%) of a fraction, the numerator of which is the Class B Invested Amount as of the close of business on the date on which the Revolving Period shall have terminated and the denominator of which is the Invested
Amount as of the close of business on the date on which the Revolving Period shall have terminated; provided, however, that with respect to the first Monthly Period, the Class B Principal Percentage shall mean the percentage equivalent
of a fraction, the numerator of which is the Class B Initial Invested Amount and the denominator of which is the Initial Invested Amount. 

“Class B Required Amount” shall have the meaning
set forth in subsection 4.04(b). 

“Class B Servicing Fee” shall have the meaning
specified in Section 3.01. 
 “Closing Date” shall mean February 14, 2019;
provided that, for purposes of determining the date on which the first Monthly Period begins, the Closing Date shall be deemed to be the close of business on January 31, 2019. 

“Collateral Additional Interest” shall have the meaning specified in
subsection 4.02(c). 
 “Collateral Available Funds” shall mean with
respect to any Distribution Date, the Collateral Floating Percentage of Reallocated Investor Finance Charge Collections with respect to the preceding Monthly Period. 

“Collateral Charge-Offs” shall have the meaning specified in subsection 4.06(c). 

“Collateral Default Amount” shall mean, with respect to any
Distribution Date, the product of the Investor Default Amount for such Distribution Date and the Collateral Floating Percentage. 

  
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“Collateral Floating Percentage” shall mean, with respect to any
Distribution Date, the percentage equivalent (which percentage shall never exceed 100%) of a fraction, the numerator of which is equal to the Collateral Invested Amount as of the close of business on the last day of the preceding Monthly Period and
the denominator of which is the Adjusted Invested Amount as of the close of business on such last day; provided, however, that with respect to the first Monthly Period, the Collateral Floating Percentage shall mean the percentage equivalent
of a fraction, the numerator of which is the Collateral Initial Invested Amount and the denominator of which is the Initial Invested Amount. 

“Collateral Initial Invested Amount” shall mean
$150,001,000. 
 “Collateral Interest” shall mean a fractional undivided interest in
the Trust which shall consist of the right to receive, (i) to the extent necessary to make the required payments to the Collateral Interest Holder under this Supplement, the portion of Collections allocable thereto under the Agreement and this
Supplement and funds on deposit in the Collection Account allocable thereto pursuant to the Agreement and this Supplement and (ii) amounts available for payment to the Collateral Interest Holder pursuant to subsections 4.07(k), 4.12(e),
4.12(f), 8.01(b), 8.02(a) and 8.02(b) or any other provision of this Supplement. 

“Collateral Interest Holder” shall mean the entity so designated in
the Transfer Agreement. 
 “Collateral Interest Shortfall” shall
have the meaning specified in subsection 4.02(c). 

“Collateral Invested Amount” shall mean, when used with respect to any
date, an amount equal to (a) the Collateral Initial Invested Amount, minus (b) the aggregate amount of principal payments made to the Collateral Interest Holder prior to such date, minus (c) the aggregate amount of
Collateral Charge-Offs for all prior Distribution Dates pursuant to subsection 4.06(c), minus (d) the aggregate amount of Reallocated Principal Collections allocated on all prior Distribution Dates pursuant to Section 4.08 allocable
to the Collateral Invested Amount, minus (e) an amount equal to the amount by which the Collateral Invested Amount has been reduced on all prior Distribution Dates pursuant to subsections 4.06(a) and (b), plus (f) the amount
allocated and available on all prior Distribution Dates pursuant to subsection 4.07(i), for the purpose of reimbursing amounts deducted pursuant to the foregoing clauses (c), (d) and (e), and plus (g) the principal amount of any
additional Collateral Interest issued after the Closing Date in accordance with Section 6.03(c) of the Agreement; provided, however, that the Collateral Invested Amount shall not be reduced below zero. 

“Collateral Minimum Interest Rate” shall mean the rate specified in the Transfer Agreement (as modified as
described therein); provided that for purposes of this Supplement, such rate shall not exceed 4.715% per annum. 

“Collateral Minimum Monthly Interest” shall have the meaning specified in subsection 4.02(c). 

“Collateral Principal Percentage” shall mean, with respect to any
Monthly Period, (i) during the Revolving Period, the percentage equivalent (which percentage shall never exceed 100%) of a fraction, the numerator of which is the Collateral Invested Amount as of the last day of the immediately preceding
Monthly Period and the denominator of which is the Invested Amount as of such day and (ii) during the Controlled Accumulation Period, the Early Amortization Period or any Partial Amortization Period, the percentage equivalent (which percentage
shall never exceed 100%) of a fraction, the numerator of which is the Collateral Invested Amount as of the close of business on the date on which the Revolving Period shall have terminated and the denominator of which is the Invested Amount as of
the close of business on the date on which the Revolving Period shall have terminated; provided, however, that with respect to the first Monthly Period, the Collateral Principal Percentage shall mean the percentage

  
 6 

 
equivalent of a fraction, the numerator of which is the Collateral Initial Invested Amount and the denominator of which is the Initial Invested Amount. 

“Collateral Senior Additional Interest” shall have the meaning
specified in subsection 4.02(d). 
 “Collateral Senior
Initial Invested Amount” shall mean $85,715,000. 

“Collateral Senior Interest Shortfall” shall have the meaning
specified in subsection 4.02(d). 
 “Collateral Senior
Invested Amount” shall mean, when used with respect to any date, an amount equal to the Collateral Senior Initial Invested Amount less the aggregate amount of principal payments distributed to the Collateral Interest
Holder in respect of the Collateral Senior Invested Amount on all prior Distribution Dates, plus the principal amount of any additional Collateral Interest issued in respect of the Collateral Senior Invested Amount after the Closing Date in
accordance with Section 6.03(c) of the Agreement. 
 “Collateral Senior Minimum Interest Rate” shall
mean the rate specified in the Transfer Agreement (as modified as described therein); provided that for purposes of this Supplement, such rate shall not exceed 3.39% per annum. 

“Collateral Senior Minimum Monthly Interest” shall have the meaning specified in subsection 4.02(d). 

“Collateral Senior Required Amount” shall have the meaning set forth in subsection 4.04(c). 

“Collateral Servicing Fee” shall have the meaning set forth in
Section 3.01. 
 “Controlled Accumulation Amount” shall mean,
for any Distribution Date with respect to the Controlled Accumulation Period, $130,357,166.67; provided, however, that, if the Controlled Accumulation Period Length is determined to be less than 12 months, the Controlled Accumulation Amount
for each Distribution Date with respect to the Controlled Accumulation Period will be equal to (i) the product of (x) the sum of the Class A Initial Invested Amount and the Class B Initial Invested Amount and (y) the
Controlled Accumulation Period Factor for the related Monthly Period divided by (ii) the Required Accumulation Factor Number. 

“Controlled Accumulation Period” shall mean, unless a Pay-Out Event shall have occurred prior thereto, the period commencing at the close of business on the last day of the February 2021 Monthly Period or such later date as is determined in accordance with subsection
4.03(c) and ending on the first to occur of (a) the commencement of the Early Amortization Period, (b) the payment in full of the Invested Amount and (c) the Expected Final Payment Date. 

“Controlled Accumulation Period Factor” shall mean,
for each Monthly Period, a fraction, the numerator of which is equal to the sum of the series invested amounts as of the last day of the prior Monthly Period of all outstanding Series, and the denominator of which is equal to the sum (without
duplication) of (a) the Series Invested Amount as of the last day of the prior Monthly Period, (b) the series invested amounts as of the last day of the prior Monthly Period of all outstanding Series (other than Series 2019-1) that are not expected to be in their revolving periods, and (c) the series invested amounts as of the last day of the prior Monthly Period of all other outstanding Series that are not Principal Sharing
Series and are in their revolving periods. 

  
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“Controlled Accumulation Period Length” has the
meaning specified in subsection 4.03(c). 

“Controlled Deposit Amount” shall mean, for any Distribution Date with
respect to the Controlled Accumulation Period, an amount equal to the sum of the Controlled Accumulation Amount for such Distribution Date and any Deficit Controlled Accumulation Amount for the immediately preceding Distribution Date. 

“Covered Amount” shall mean, for any Distribution Date with respect to the Controlled
Accumulation Period or the first Special Payment Date, if such Special Payment Date occurs prior to the date the Class A Invested Amount is paid in full, an amount equal to the sum of (x) with respect to the Class A Certificates, one-twelfth of the product of (i) the Class A Certificate Rate and (ii) the Principal Funding Account Balance, if any, as of the preceding Distribution Date that is allocable to the principal of the
Class A Certificates and (y) with respect to the Class B Certificates, one-twelfth of the product of (i) the Class B Certificate Rate and (ii) the Principal Funding Account
Balance, if any, as of the preceding Distribution Date that is allocable to the principal of the Class B Certificates. 

“Deficit Controlled Accumulation Amount” shall mean
(a) on the first Distribution Date with respect to the Controlled Accumulation Period, the excess, if any, of the Controlled Accumulation Amount for such Distribution Date over the amount deposited in the Principal Funding Account on such
Distribution Date and (b) on each subsequent Distribution Date with respect to the Controlled Accumulation Period, the excess, if any, of the Controlled Deposit Amount for such subsequent Distribution Date over the amount deposited in the
Principal Funding Account on such subsequent Distribution Date. 
 “Distribution Date”
shall mean March 15, 2019, and the 15th day of each calendar month thereafter, or if such 15th day is not a Business Day, the next succeeding Business Day. 

“Early Amortization Period” shall mean the period commencing at the
close of business on the Business Day immediately preceding the day on which a Pay-Out Event with respect to Series 2019-1 is deemed to have occurred, and ending on the
first to occur of (i) the payment in full of the Invested Amount or (ii) the Series 2019-1 Termination Date. 

“Excess Finance Charge Collections” shall mean collections of Finance Charge Receivables and certain other
amounts allocable to the Certificateholders’ Interest of any Excess Allocation Series in excess of the amounts necessary to make required payments with respect to such series (including payments to the provider of any related Series
Enhancement) that are payable out of collections of Finance Charge Receivables. 

“Excess Spread” shall mean, with respect to any Distribution Date, the sum of the
amounts, if any, specified pursuant to subsections 4.05(a)(iv), 4.05(b)(iii) and 4.05(c)(ii) with respect to such Distribution Date. 

“Expected Final Payment Date” shall mean the March
2022 Distribution Date. 
 “Finance Charge Shortfall” shall have the
meaning specified in Section 4.09. 
 “Fitch” shall mean Fitch Ratings, Inc. or its successor. 

“Floating Allocation Percentage” shall mean, with respect to any
Monthly Period, the percentage equivalent (which percentage shall never exceed 100%) of a fraction, the numerator of which is the Adjusted Invested Amount as of the last day of the preceding Monthly Period (or with respect to the first Monthly
Period, the Initial Invested Amount) and the denominator of which is the product of (x) the 

  
 8 

 
Series 2019-1 Allocation Percentage with respect to such Monthly Period and (y) the sum of (i) the total amount of Principal Receivables in the
Trust as of such day (or with respect to the first Monthly Period, the total amount of Principal Receivables in the Trust on the Closing Date) and (ii) the principal amount on deposit in the Special Funding Account as of such last day (or with
respect to the first Monthly Period, as of the Closing Date); provided, however, that with respect to any Monthly Period in which an Addition Date for an Aggregate Addition or a Removal Date occurs the amount in (y)(i) above shall be
(1) the aggregate amount of Principal Receivables in the Trust at the end of the day on the last day of the prior Monthly Period for the period from and including the first day of such Monthly Period to but excluding the related Addition Date
or Removal Date and (2) the aggregate amount of Principal Receivables in the Trust at the end of the day on the related Addition Date or Removal Date for the period from and including the related Addition Date or Removal Date to and including
the last day of such Monthly Period. 
 “Group I” shall mean Series
2019-1 and each other Series specified in the related Supplement to be included in Group I. 

“Group I Investor Additional Amounts” shall mean,
with respect to any Distribution Date, the sum of (a) Series 2019-1 Additional Amounts for such Distribution Date and (b) for all other Series included in Group I, the sum of (i) the aggregate
net amount by which the Invested Amounts of such Series have been reduced as a result of investor charge-offs, subordination of principal collections and funding the investor default amounts in respect of any Class or Series Enhancement
interests of such Series as of such Distribution Date and (ii) if the applicable Supplements so provide, the aggregate unpaid amount of interest at the applicable certificate rates that has accrued on the amounts described in the preceding
clause (i) for such Distribution Date. 
 “Group
I Investor Default Amount” shall mean, with respect to any Distribution Date, the sum of (a) the Investor Default Amount for such Distribution Date and (b) the aggregate
amount of the investor default amounts for all other Series included in Group I for such Distribution Date. 

“Group
I Investor Finance Charge Collections” shall mean, with respect to any Distribution Date, the sum of (a) Investor Finance Charge Collections for such
Distribution Date and (b) the aggregate amount of the investor finance charge collections for all other Series included in Group I for such Distribution Date. 

“Group I Investor Monthly Fees” shall mean with
respect to any Distribution Date, the sum of (a) Series 2019-1 Monthly Fees for such Distribution Date and (b) the aggregate amount of the servicing fees, investor fees, fees payable to any Series
Enhancer and any other similar fees, which are payable out of reallocated investor finance charge collections pursuant to the related Supplements, for all other Series included in Group I for such Distribution Date. 

“Group I Investor Monthly Interest” shall mean, with respect to any Distribution Date,
the sum of (a) Series 2019-1 Monthly Interest for such Distribution Date and (b) the aggregate amount of monthly interest, including overdue monthly interest and interest on such overdue monthly
interest, if such amounts are payable out of reallocated investor finance charge collections pursuant to the related Supplements, for all other Series included in Group I for such Distribution Date. 

“Initial Invested Amount” shall mean $1,714,287,000. 

“Interest Accrual Period” shall mean, with respect to any Distribution Date, the period (a) from and
including the Distribution Date immediately preceding such Distribution Date (or, in the case of the first Distribution Date, from and including the Closing Date) and (b) to but excluding such Distribution Date. 

  
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 “Invested Amount” shall mean, as of any date
of determination, an amount equal to the sum of (a) the Class A Invested Amount as of such date, (b) the Class B Invested Amount as of such date and (c) the Collateral Invested Amount as of such date. 

“Investment Letter” shall have the meaning specified in subsection 9.07(a). 

“Investor Charge-Offs” shall mean Class A Investor Charge-Offs, Class B
Investor Charge-Offs and Collateral Charge-Offs. 

“Investor Default Amount” shall mean, with respect to any Distribution
Date, an amount equal to the product of (a) the Series 2019-1 Allocable Defaulted Amount for the related Monthly Period and (b) the Floating Allocation Percentage for such Monthly Period. 

“Investor Finance Charge Collections” shall mean
with respect to any Distribution Date, an amount equal to the product of (a) the Floating Allocation Percentage for the related Monthly Period and (b) Series 2019-1 Allocable Finance Charge
Collections deposited in the Collection Account for the related Monthly Period. 

“Monthly Interest” shall mean, with respect to any Distribution Date, the Class A
Monthly Interest, the Class B Monthly Interest and the Collateral Minimum Monthly Interest for such Distribution Date. 

“Monthly Receivables Percentage” shall mean, for any day, the percentage equivalent of a fraction, the
numerator of which is an amount equal to the sum of the aggregate amount of Principal Receivables outstanding in the Trust attributable to the Transferor or Account Owner with respect to which an Insolvency Event or a Transfer Restriction Event has
occurred, and the denominator of which is an amount equal to the sum of the aggregate amount of Principal Receivables outstanding in the Trust, in each as of the last day of the immediately preceding Monthly Period. 

“Monthly Servicing Fee” shall have the meaning specified in subsection
3.01. 
 “Pay-Out Event” shall mean any Pay-Out Event specified in Section 6.01. 
 “Permitted Assignee”
shall mean any Person who, if it were the Collateral Interest Holder or a holder of an interest in the Trust, as applicable, would not cause the Trust to be taxable as a publicly traded partnership for federal income tax purposes. 

“Principal Allocation Percentage” shall mean, with respect to any day
during a Monthly Period, the percentage equivalent (which percentage shall never exceed 100%) of a fraction, the numerator of which is (a) during the Revolving Period, the Series Adjusted Invested Amount for Series 2019-1 as of the last day of the immediately preceding Monthly Period (or, in the case of the first Monthly Period, the Initial Invested Amount) and (b) during the Controlled Accumulation Period, the Early
Amortization Period or any Partial Amortization Period, the Series Adjusted Invested Amount for Series 2019-1 as of the close of business on the date on which the Revolving Period shall have terminated and the
denominator of which is the product of (x) the sum of (i) the total amount of Principal Receivables in the Trust as of the last day of the immediately preceding Monthly Period (or with respect to the first Monthly Period, the total amount
of Principal Receivables in the Trust as of the Closing Date) and (ii) the principal amount on deposit in the Special Funding Account as of such last day (or with respect to the first Monthly Period, the Closing Date) and (y) the Series 2019-1 Allocation Percentage as of the last day of the immediately preceding Monthly Period; provided, however, that with respect to any Monthly Period in which an Addition Date for an Aggregate Addition or a
Removal Date occurs the amount in (x)(i) above shall be (1) the aggregate amount of Principal Receivables in the Trust at the end of the day on the last day of the prior Monthly Period for the period from and including the first day of

  
 10 

 
such Monthly Period to but excluding the related Addition Date or Removal Date and (2) the aggregate amount of Principal Receivables in the Trust at the end of the day on the related
Addition Date or Removal Date for the period from and including the related Addition Date or Removal Date to and including the last day of such Monthly Period; and provided further, that if after the commencement of the Controlled
Accumulation Period a Pay-Out Event occurs with respect to another Series that was designated in the Supplement therefor as a Series that is a “Paired Series” with respect to Series 2019-1, the Transferor may, by written notice delivered to the Trustee and the Servicer, designate a different numerator for the foregoing fraction, provided that (x) such numerator is not less than the
Adjusted Invested Amount as of the last day of the revolving period for such Paired Series, (y) the Transferor shall have received written notice from each Rating Agency that the Rating Agency Condition has been satisfied with respect to such
designation and shall have delivered copies of each such written notice to the Servicer and the Trustee and (z) the Transferor shall have delivered to the Trustee an Officer’s Certificate of such Transferor to the effect that, based on the
facts known to such officer at such time, in the reasonable belief of such Transferor, such designation will not cause a Pay-Out Event or an event that, after the giving of notice or the lapse of time, would
constitute a Pay-Out Event, to occur with respect to Series 2019-1. 

“Principal Funding Account” shall have the meaning specified in
subsection 4.03(a)(i). 

“Principal Funding Account Balance” shall mean,
with respect to any date of determination during the Controlled Accumulation Period, the principal amount, if any, on deposit in the Principal Funding Account on such date of determination. 

“Principal Funding Account Investment Proceeds” shall have the meaning
specified in subsection 4.03(a)(ii). 
 “Principal Funding Account
Investment Shortfall” shall mean, with respect to each Distribution Date during the Controlled Accumulation Period, the amount, if any, by which the Principal Funding Account Investment Proceeds are less than the Covered
Amount. 

“Reallocated Investor Finance Charge 
Collections” shall mean that portion of Group I Investor Finance Charge Collections allocated to Series 2019-1 pursuant to Section 4.10. 

“Reallocated Principal Collections” shall mean, with respect to any
Monthly Period, the product of (a) the Series 2019-1 Allocable Principal Collections deposited in the Collection Account for such Monthly Period and (b) the sum of the Class B Principal
Percentage and the Collateral Principal Percentage. 
 “Reassignment Amount” shall
mean, with respect to any Distribution Date, after giving effect to any deposits and distributions otherwise to be made on such Distribution Date, the sum of (i) the Adjusted Invested Amount on such Distribution Date, plus
(ii) Monthly Interest for such Distribution Date and any Monthly Interest previously due but not distributed to the Series 2019-1 Certificateholders on a prior Distribution Date, plus
(iii) the amount of Additional Interest, if any, for such Distribution Date and any Additional Interest previously due but not distributed to the Series 2019-1 Certificateholders on a prior Distribution
Date. 
 “Required Accumulation Factor Number”
shall be equal to a fraction, rounded upwards to the nearest whole number, the numerator of which is one and the denominator of which is equal to the lowest monthly principal payment rate on the Accounts, expressed as a decimal, for the three months
preceding the date of such calculation. 
 “Required Amount” shall mean, with respect
to any Monthly Period, the sum of the Class A Required Amount, the Class B Required Amount and the Collateral Senior Required Amount. 

  
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“Required Reserve Account Amount” shall mean, with
respect to any Distribution Date on or after the Reserve Account Funding Date, an amount equal to (1) 0.50% of the Class A Invested Amount as of the preceding Distribution Date (after giving effect to all changes therein on such date) or
(2) any other percentage (which may be 0%) of the Class A Invested Amount designated by the Transferor, provided that if such percentage is less than the percentage specified in clause (1) above, the Transferor shall have received the
prior written consent of the Collateral Interest Holder and written notice from each Rating Agency that the Rating Agency Condition shall have been satisfied with respect to such designation and shall have delivered copies of each such written
notice to the Servicer and the Trustee. 
 “Reserve Account” shall have the meaning
specified in subsection 4.12(a). 

“Reserve Account Funding Date” shall mean the
Distribution Date which occurs not later than the earliest of (a) the Distribution Date with respect to the Monthly Period that commences not later than three months prior to the Distribution Date with respect to the first Monthly Period in the
Controlled Accumulation Period, (b) in the event that the average Excess Spread Percentage for any three consecutive Monthly Periods ending in the March 2020 Monthly Period or any Monthly Period thereafter is less than 2%, the Distribution Date
with respect to such Monthly Period, (c) in the event that the average Excess Spread Percentage for any three consecutive Monthly Periods ending in the September 2020 Monthly Period or any Monthly Period thereafter is less than 3%, the
Distribution Date with respect to such Monthly Period and (d) such earlier Distribution Date as the Transferor may determine by written notice to the Trustee and the Servicer. For this purpose, the “Excess Spread Percentage”
for any Monthly Period shall be equal to the Series Adjusted Portfolio Yield for such Monthly Period minus the Base Rate for such Monthly Period. 

“Reserve Account Surplus” shall mean, as of any date of determination,
the amount, if any, by which the amount on deposit in the Reserve Account exceeds the Required Reserve Account Amount. 

“Reserve Draw Amount” shall have the meaning specified in subsection
4.12(c). 
 “Revolving Period” shall mean the period beginning at the close of business
on the Series Cut-Off Date and ending on the earlier of (a) the close of business on the day immediately preceding the day the Controlled Accumulation Period commences and (b) the close of business
on the day immediately preceding the day the Early Amortization Period commences. 
 “Series 2019-1” shall mean the Series of Certificates the terms of which are specified in this Supplement. 

“Series 2019-1 
Additional Amounts” shall mean, with respect to any Distribution Date, the sum of the amounts determined pursuant to subsections 4.07(b), (e) and (i) for such Distribution Date. 

“Series 2019-1 
Allocable Defaulted Amount” shall mean the Series Allocable Defaulted Amount with respect to Series 2019-1. 

“Series 2019-1 
Allocable Finance Charge Collections” shall mean the Series Allocable Finance Charge Collections with respect to Series 2019-1. 

“Series 2019-1 
Allocable Principal Collections” shall mean the Series Allocable Principal Collections with respect to Series 2019-1. 

“Series 2019-1 
Allocation Percentage” shall mean the Series Allocation Percentage with respect to Series 2019-1. 

  
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“Series 2019-1 Certificate”
shall mean a Class A Certificate or a Class B Certificate or the Collateral Interest. 

“Series 2019-1 
Certificateholder” shall mean a Class A Certificateholder or a Class B Certificateholder or the Collateral Interest Holder. 

“Series 2019-1 
Certificateholders’ Interest” shall mean the Certificateholders’ Interest for Series 2019-1, including the Collateral Interest. 

“Series 2019-1 
Monthly Fees” shall mean, with respect to any Distribution Date, the amount determined pursuant to subsections 4.05(a)(ii), (b)(ii) and (c)(i) and subsection 4.07(g). 

“Series 2019-1 Monthly Interest” shall mean the amounts determined
pursuant to subsections 4.02(a), (b) and (d). 

“Series 2019-1 
Principal Shortfall” shall have the meaning specified in Section 4.11. 

“Series 2019-1 
Termination Date” shall mean the October 2024 Distribution Date. 

“Series Adjusted Portfolio Yield” shall mean, with
respect to any Monthly Period, the annualized percentage equivalent of a fraction, (A) the numerator of which is equal to (a) Reallocated Investor Finance Charge Collections with respect to such Monthly Period, plus (b) the
amount of any Principal Funding Account Investment Proceeds for the related Distribution Date, plus (c) provided that each Rating Agency has consented in writing to the inclusion thereof in calculating the Series Adjusted
Portfolio Yield, any Excess Finance Charge Collections that are allocated to Series 2019-1 with respect to such Monthly Period, plus (d) the amount of funds, if any, withdrawn from the Reserve
Account which pursuant to subsection 4.12(d) are required to be deposited into the Collection Account and included as Class A Available Funds for the Distribution Date with respect to such Monthly Period, minus (e) the Investor
Default Amount for the Distribution Date with respect to such Monthly Period, and (B) the denominator of which is the Invested Amount as of the last day of the preceding Monthly Period. 

“Series Cut-Off Date” shall
mean the close of business on February 14, 2019. 

“Series Invested Amount” shall mean, on any date of determination, an
amount equal to the Initial Invested Amount plus the aggregate initial principal amount of any additional Series 2019-1 Certificates issued pursuant to Section 6.03(c) of the Agreement. 

“Series Required Transferor Amount” shall mean an
amount equal to 7% of the Invested Amount. 

“Servicing Base Amount” shall have the meaning specified in
Section 3.01. 
 “Servicing Fee Rate” shall mean 2.0% per
annum. 
 “Special Payment Date” shall mean each Distribution
Date with respect to the Early Amortization Period. 
 “Transfer” shall have the meaning specified in
subsection 9.07(a). 
 “Transfer Agreement” shall mean the Transfer and Administration Agreement, dated as
of February 14, 2019, among RFC III, as transferor, TRS, as administrator, and the American Express Credit Account Secured Note Trust 2019-1, as issuer, as the same may be amended, supplemented or
otherwise modified from time to time. 

  
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 “Transferor Percentage” shall mean 100%
minus (a) the Floating Allocation Percentage, when used at any time with respect to Finance Charge Receivables and Defaulted Receivables, or (b) the Principal Allocation Percentage, when used at any time with respect to Principal
Receivables. 
 (b)        Notwithstanding anything to the contrary in this
Supplement or the Agreement, the term “Rating Agency” shall mean, whenever used in this Supplement or the Agreement with respect to Series 2019-1, Fitch and Moody’s. As
used in this Supplement and in the Agreement with respect to Series 2019-1, “highest investment category” shall mean (i) in the case of Fitch, AAA or F1+, as applicable and (ii) in the case
of Moody’s, Aaa or P-1, as applicable. 

(c)        Each capitalized term defined herein shall relate to the Series 2019-1 Certificates and no other Series of Certificates issued by the Trust, unless the context otherwise requires. All capitalized terms used herein and not otherwise defined herein have the meanings ascribed to
them in the Agreement. In the event that any term or provision contained herein shall conflict with or be inconsistent with any term or provision contained in the Agreement, the terms and provisions of this Supplement shall govern. 

(d)        The words “hereof,” “herein” and “hereunder”
and words of similar import when used in this Supplement shall refer to this Supplement as a whole and not to any particular provision of this Supplement; references to any Article, subsection, Section or Exhibit are references to Articles,
subsections, Sections and Exhibits in or to this Supplement unless otherwise specified; and the term “including” means “including without limitation.” 

ARTICLE III 

Servicing Fee 

Section 3.01.        Servicing Compensation. The share
of the Servicing Fee allocable to the Series 2019-1 Certificateholders with respect to any Distribution Date (the “Monthly Servicing Fee”) shall be equal
to one-twelfth of the product of (a) the Servicing Fee Rate and (b) (i) the Adjusted Invested Amount as of the last day of the Monthly Period preceding such Distribution Date minus
(ii) the product of the amount, if any, on deposit in the Special Funding Account as of the last day of the Monthly Period preceding such Distribution Date and the Series 2019-1 Allocation Percentage with
respect to such Monthly Period (the amount calculated pursuant to this clause (b) is referred to as the “Servicing Base Amount”). The share of the Monthly Servicing Fee allocable to the
Class A Certificateholders with respect to any Distribution Date (the “Class A Servicing Fee”) shall be equal to one-twelfth of
the product of (a) the Class A Floating Percentage, (b) the Servicing Fee Rate and (c) the Servicing Base Amount. The share of the Monthly Servicing Fee allocable to the Class B Certificateholders with respect to any
Distribution Date (the “Class B Servicing Fee”) shall be equal to one-twelfth of the product of (a) the Class B Floating
Percentage, (b) the Servicing Fee Rate and (c) the Servicing Base Amount. The share of the Monthly Servicing Fee allocable to the Collateral Interest with respect to any Distribution Date (the
“Collateral Servicing Fee”) shall be equal to one-twelfth of the product of the (a) Collateral Floating Percentage, (b) the Servicing Fee Rate
and (c) the Servicing Base Amount. The remainder of the Servicing Fee shall be paid by the Holders of the Transferor Certificates or the investor certificateholders of other Series (as provided in the related Supplements) and in no event shall
the Trust, the Trustee or the Series 2019-1 Certificateholders be liable for the share of the Servicing Fee to be paid by the Holders of the Transferor Certificates or the investor certificateholders of any
other Series. To the extent that the Class A Servicing Fee, the Class B Servicing Fee and the Collateral Servicing Fee are not paid in full pursuant to the preceding provisions of this Section 3.01, and Sections 4.05 and 4.07, they
shall be paid by the Holders of the Transferor Certificates. 

  
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 ARTICLE IV 

Rights of Series 2019-1 Certificateholders and 

Allocation and Application of Collections 

Section 4.01.        Collections and 
Allocations. 
 (a)        Allocations. Collections of Finance Charge
Receivables and Principal Receivables and Defaulted Receivables allocated to Series 2019-1 pursuant to Article IV of the Agreement (and, as described herein, Collections of Finance Charge Receivables
reallocated from other Series in Group I) shall be allocated and distributed or reallocated as set forth in this Article. 

(b)        Payments to 
the Transferor. The Servicer shall on each Deposit Date withdraw from the Collection Account and pay to the Holders of the Transferor Certificates the following amounts: 

(i)        an amount equal to the Transferor Percentage for the
related Monthly Period of Series 2019-1 Allocable Finance Charge Collections to the extent such amount is deposited in the Collection Account; and 

(ii)        an amount equal to the Transferor Percentage for the
related Monthly Period of Series 2019-1 Allocable Principal Collections deposited in the Collection Account, if the Transferor Amount (determined after giving effect to any Principal Receivables transferred to
the Trust on such Deposit Date) exceeds zero. 
 The withdrawals to be made from the Collection Account pursuant to this
subsection 4.01(b) do not apply to deposits into the Collection Account that do not represent Collections, including payment of the purchase price for the Certificateholders’ Interest pursuant to Section 2.06 or 10.01 of the Agreement,
payment of the purchase price for the Series 2019-1 Certificateholders’ Interest pursuant to Section 7.01 of this Supplement and proceeds from the sale, disposition or liquidation of Receivables
pursuant to Section 9.01 or 12.02 of the Agreement. 

(c)        Allocations to 
the Series 2019-1 Certificateholders. The Servicer shall, prior to the close of business on each Deposit Date, allocate to the Series 2019-1 Certificateholders the following amounts as set forth below: 

(i)        Allocations of 
Finance Charge Collections. The Servicer shall allocate to the Series 2019-1 Certificateholders and retain in the Collection Account for application as provided herein
an amount equal to the product of (A) the Floating Allocation Percentage and (B) the Series 2019-1 Allocation Percentage and (C) the aggregate amount of Collections of Finance Charge Receivables
deposited in the Collection Account on such Deposit Date. 

(ii)        Allocations of 
Principal Collections. The Servicer shall allocate to the Series 2019-1 Certificateholders the following amounts as set forth below: 

(x)        Allocations 
During the Revolving Period. During the Revolving Period (A) an amount equal to the product of (I) the sum of the Class B Principal Percentage and the Collateral Principal
Percentage and (II) the Principal Allocation Percentage and (III) the Series 2019-1 Allocation Percentage and (IV) the aggregate amount of Collections of Principal Receivables deposited in the
Collection Account on such Deposit Date, shall be allocated to the Series 2019-1 Certificateholders and retained in the Collection Account until applied as provided herein and (B) an amount equal to the
product of (I) the Class A 

  
 15 

 
Principal Percentage and (II) the Principal Allocation Percentage and (III) the Series 2019-1 Allocation Percentage and (IV) the aggregate
amount of Collections of Principal Receivables deposited in the Collection Account on such Deposit Date shall be allocated to the Series 2019-1 Certificateholders and first, if any other Principal Sharing
Series is outstanding and in its amortization period or accumulation period, retained in the Collection Account for application, to the extent necessary, as Shared Principal Collections on the related Distribution Date, and second paid to the
Holders of the Transferor Certificates; provided, however, that such amount to be paid to the Holders of the Transferor Certificates on any Deposit Date shall be paid to such Holders only if the Transferor Amount on such Deposit Date is
greater than the Required Transferor Amount (after giving effect to all Principal Receivables transferred to the Trust on such day) and otherwise shall be deposited in the Special Funding Account. 

(y)        Allocations 
During the Controlled Accumulation Period. During the Controlled Accumulation Period (A) an amount equal to the product of (I) the sum of the Class B
Principal Percentage and the Collateral Principal Percentage and (II) the Principal Allocation Percentage and (III) the Series 2019-1 Allocation Percentage and (IV) the aggregate amount of
Collections of Principal Receivables deposited in the Collection Account on such Deposit Date, shall be allocated to the Series 2019-1 Certificateholders and retained in the Collection Account until applied as
provided herein and (B) an amount equal to the product of (I) the Class A Principal Percentage and (II) the Principal Allocation Percentage and (III) the Series 2019-1 Allocation
Percentage and (IV) the aggregate amount of Collections of Principal Receivables deposited in the Collection Account on such Deposit Date (the product specified in this clause (B) for any such date is hereinafter referred to as a
“Percentage Allocation”) shall be allocated to the Series 2019-1 Certificateholders and retained in the Collection Account until applied as provided herein; provided,
however, that if the sum of such Percentage Allocation and all preceding Percentage Allocations with respect to the same Monthly Period exceeds the Controlled Deposit Amount during the Controlled Accumulation Period for the related Distribution
Date, then such excess shall not be treated as a Percentage Allocation and shall be first, if any other Principal Sharing Series is outstanding and in its amortization period or accumulation period, retained in the Collection Account for
application, to the extent necessary, as Shared Principal Collections on the related Distribution Date, and second paid to the Holders of the Transferor Certificates only if the Transferor Amount on such Deposit Date is greater than the Required
Transferor Amount (after giving effect to all Principal Receivables transferred to the Trust on such day) and otherwise shall be deposited in the Special Funding Account. 

(z)        Allocations 
During the Early Amortization Period. During the Early Amortization Period, an amount equal to the product of (A) the Principal Allocation Percentage and
(B) the Series 2019-1 Allocation Percentage and (C) the aggregate amount of Collections of Principal Receivables deposited in the Collection Account on such Deposit Date, shall be allocated to the
Series 2019-1 Certificateholders and retained in the Collection Account until applied as provided herein; provided, however, that after the date on which an amount of such Collections equal to the
Adjusted Invested Amount has been deposited into the Collection Account and allocated to the Series 2019-1 Certificateholders, the remainder that has not been so deposited and allocated shall be first, if any
other Principal Sharing Series is outstanding and in its amortization period or accumulation period, retained in the Collection Account for application, to the 

  
 16 

 
extent necessary, as Shared Principal Collections on the related Distribution Date, and second paid to the Holders of the Transferor Certificates only if the Transferor Amount on such date is
greater than the Required Transferor Amount (after giving effect to all Principal Receivables transferred to the Trust on such day) and otherwise shall be deposited in the Special Funding Account. 

Section 4.02.        Determination of 
Monthly Interest. 
 (a)        The amount of monthly
interest (“Class A Monthly Interest”) distributable from the Collection Account with respect to the Class A Certificates on any Distribution Date shall be an amount equal
to one-twelfth of the product of (i) the Class A Certificate Rate and (ii) the outstanding principal balance of the Class A Certificates as of close of business on the immediately preceding
Record Date; provided that Class A Monthly Interest for the first Distribution Date shall be an amount equal to $3,707,083.33. 

On the Determination Date preceding each Distribution Date, the Servicer shall determine the excess, if any (the
“Class A Interest Shortfall”), of (x) the Class A Monthly Interest for such Distribution Date over (y) the aggregate amount of funds allocated and available to
pay such Class A Monthly Interest on such Distribution Date. If the Class A Interest Shortfall with respect to any Distribution Date is greater than zero, on each subsequent Distribution Date until such Class A Interest Shortfall is
fully paid, an additional amount (“Class A Additional Interest”) equal to one-twelfth of the product of (i) the sum of
(x) the Class A Certificate Rate and (y) 2.0% per annum and (ii) such Class A Interest Shortfall (or the portion thereof which has not been paid to the Class A Certificateholders) shall be payable as provided herein
with respect to the Class A Certificates. Notwithstanding anything to the contrary herein, Class A Additional Interest shall be payable or distributed to the Class A Certificateholders only to the extent permitted by applicable law.

 (b)        The amount of monthly interest (“Class B
Monthly Interest”) distributable from the Collection Account with respect to the Class B Certificates on any Distribution Date shall be an amount equal to one-twelfth of the product of
(i) the Class B Certificate Rate for such Distribution Date and (ii) the Class B Invested Amount as of the close of business on the immediately preceding Record Date; provided that Class B Monthly Interest for the
first Distribution Date shall be an amount equal to $169,947.18. 
 On the Determination Date preceding each Distribution
Date, the Servicer shall determine the excess, if any (the “Class B Interest Shortfall”), of (x) the Class B Monthly Interest for such Distribution Date over
(y) the aggregate amount of funds allocated and available to pay such Class B Monthly Interest on such Distribution Date. If the Class B Interest Shortfall with respect to any Distribution Date is greater than zero, on each subsequent
Distribution Date until such Class B Interest Shortfall is fully paid, an additional amount (“Class B Additional Interest”) equal to
one-twelfth of the product of (i) the sum of (x) the Class B Certificate Rate and (y) 2.0% per annum and (ii) such Class B Interest Shortfall (or the portion thereof which has
not been paid to the Class B Certificateholders) shall be payable as provided herein with respect to the Class B Certificates. Notwithstanding anything to the contrary herein, Class B Additional Interest shall be payable or
distributed to the Class B Certificateholders only to the extent permitted by applicable law. 

(c)        The amount of monthly interest (“Collateral Minimum Monthly
Interest”) distributable from the Collection Account with respect to the Collateral Invested Amount on any Distribution Date shall be an amount equal to one-twelfth of the product of (i) the
Collateral Minimum Interest Rate and (ii) the Collateral Initial Invested Amount less the aggregate amount of principal payments distributed to the Collateral Interest Holder on all prior Distribution Dates; provided, however,
that in the event the Collateral Minimum Interest Rate has been modified (as described in the definition thereof) during the period from (and including) the immediately preceding Distribution Date to (but

  
 17 

 
excluding) such Distribution Date, the rate described in (i) above shall reflect a weighted average rate calculated on the basis of the actual number of days each Collateral Minimum Interest
Rate was in effect during such period and a year of 360 days. 
 On the Determination Date preceding each Distribution
Date, the Servicer shall determine an amount (the “Collateral Interest Shortfall”) equal to (x) the aggregate Collateral Minimum Monthly Interest for such Distribution Date minus
(y) the aggregate amount of funds allocated and available to pay such Collateral Minimum Monthly Interest on such Distribution Date. If the Collateral Interest Shortfall with respect to any Distribution Date is greater than zero, on each
subsequent Distribution Date until such Collateral Interest Shortfall is fully paid, an additional amount (“Collateral Additional Interest”) shall be payable as provided herein with respect to
the Collateral Invested Amount equal to one-twelfth of the product of (i) the Collateral Minimum Interest Rate and (ii) such Collateral Interest Shortfall (or the portion thereof which has not been
paid to the Collateral Interest Holder). Notwithstanding anything to the contrary herein, Collateral Additional Interest shall be payable or distributed to the Collateral Interest Holder only to the extent permitted by applicable law. 

(d)        The amount of monthly interest (“Collateral Senior Minimum Monthly
Interest”) distributable from the Collection Account with respect to the Collateral Senior Invested Amount on any Distribution Date shall be an amount equal to one-twelfth of the product of
(i) the Collateral Senior Minimum Interest Rate and (ii) the Collateral Senior Invested Amount; provided that Collateral Senior Minimum Monthly Interest for the first Distribution Date shall be an amount equal to $250,216.37;
provided, however, that in the event the Collateral Senior Minimum Interest Rate has been modified (as described in the definition thereof) during the period from (and including) the immediately preceding Distribution Date to (but
excluding) such Distribution Date, the rate described in (i) above shall reflect a weighted average rate calculated on the basis of the actual number of days each Collateral Senior Minimum Interest Rate was in effect during such period and a
year of 360 days. 
 On the Determination Date preceding each Distribution Date, the Servicer shall determine an amount
(the “Collateral Senior Interest Shortfall”) equal to (x) the aggregate Collateral Senior Minimum Monthly Interest for such Distribution Date minus (y) the aggregate amount of
funds allocated and available to pay such Collateral Senior Minimum Monthly Interest on such Distribution Date. If the Collateral Senior Interest Shortfall with respect to any Distribution Date is greater than zero, on each subsequent Distribution
Date until such Collateral Senior Interest Shortfall is fully paid, an additional amount (“Collateral Senior Additional Interest”) shall be payable as provided herein with respect to the
Collateral Senior Invested Amount equal to one-twelfth of the product of (i) the Collateral Senior Minimum Interest Rate and (ii) such Collateral Senior Interest Shortfall (or the portion thereof
which has not been paid to the Collateral Interest Holder). Notwithstanding anything to the contrary herein, Collateral Senior Additional Interest shall be payable or distributed to the Collateral Interest Holder only to the extent permitted by
applicable law. 

Section 4.03.        Principal Funding 
Account; Controlled Accumulation Period. 

(a)        (i)    The Servicer, for the benefit of the Series 2019-1 Certificateholders, shall establish and maintain in the name of the Trustee, on behalf of the Trust, an Eligible Deposit Account (the
“Principal Funding Account”), bearing a designation clearly indicating that the funds deposited therein and the property credited thereto are held for the benefit of the Series 2019-1 Certificateholders. The Principal Funding Account shall initially be established with The Bank of New York Mellon. 

(ii)        At the written direction of the Servicer (or its agent appointed pursuant
to Section 4.13(c)), funds on deposit in the Principal Funding Account shall be invested by the Trustee in Eligible Investments selected by the Servicer (or its agent appointed pursuant to Section 4.13(c)); provided, however, that
if no such written direction is provided, funds on deposit in the Principal Funding Account shall remain uninvested. All such Eligible Investments shall be held by the Trustee for the 

  
 18 

 
benefit of the Series 2019-1 Certificateholders; provided that on each Distribution Date all interest and other investment income (net of losses and
investment expenses) (“Principal Funding Account Investment Proceeds”) on funds on deposit therein shall be applied as set forth in paragraph (iii) below. Subject to the first sentence of this paragraph (a)(ii), funds on
deposit in the Principal Funding Account shall be invested in Eligible Investments that will mature so that such funds will be available at the close of business on the Transfer Date preceding the following Distribution Date. Unless the Servicer
directs otherwise, funds deposited in the Principal Funding Account on a Transfer Date (which immediately precedes a Distribution Date) upon the maturity of any Eligible Investments are not required to be invested overnight. No such Eligible
Investment shall be disposed of prior to its maturity; provided, however, that the Trustee shall sell, liquidate or dispose of any such Eligible Investment if, prior to the maturity of such Eligible Investment, a default occurs in the payment
of principal, interest or any other amount with respect to such Eligible Investment; provided further, however, that the Servicer shall deliver prompt written notice to the Trustee of any such default; and provided further that,
subject to Section 11.01 of the Agreement, the Trustee will not in any way be held liable by reason of any insufficiency in such Principal Funding Account resulting from any loss on any Eligible Investment included therein except for losses
attributable to the Trustee’s failure to make payments on such Eligible Investments issued by the Trustee, in its commercial capacity, in accordance with their terms. 

(iii)        On each Distribution Date with respect to the Controlled Accumulation
Period, the Servicer shall direct the Trustee in writing to withdraw from the Principal Funding Account and deposit into the Collection Account all Principal Funding Account Investment Proceeds then on deposit in the Principal Funding Account and
such Principal Funding Account Investment Proceeds shall be treated as a portion of Class A Available Funds and Class B Available Funds. 

(iv)        Reinvested interest and other investment income on funds deposited in the
Principal Funding Account shall not be considered to be principal amounts on deposit therein for purposes of this Supplement. 

(b)        (i)    The Trustee shall possess all right, title and
interest in all funds and property from time to time deposited in or credited to the Principal Funding Account and in all proceeds thereof. The Principal Funding Account shall be under the sole dominion and control of the Trustee for the benefit of
the Series 2019-1 Certificateholders. If, at any time, the Principal Funding Account ceases to be an Eligible Deposit Account, the Trustee (or the Servicer on its behalf) shall within 10 Business Days (or such
longer period, not to exceed 30 calendar days, as to which each Rating Agency may consent) establish a new Principal Funding Account meeting the conditions specified in paragraph (a)(i) above as an Eligible Deposit Account and shall transfer any
cash or any investments to such new Principal Funding Account. 

(ii)        Pursuant to the authority granted to the Servicer in subsection 3.01(b)
of the Agreement, the Servicer shall have the power to make withdrawals and payments or to instruct the Trustee to make withdrawals and payments from the Principal Funding Account for the purposes of carrying out the Servicer’s or
Trustee’s duties hereunder. Pursuant to the authority granted to the Paying Agent in Section 5.01 of this Supplement and Section 6.07 of the Agreement, the Paying Agent shall have the power to withdraw funds from the Principal Funding
Account for the purpose of making distributions to the Series 2019-1 Certificateholders. 

(c)        The Controlled Accumulation Period is scheduled to commence at the close
of business on the last day of the February 2021 Monthly Period; provided, however, that if the Controlled Accumulation Period Length (which shall be determined as described below) is less than 12 months, the date on which the Controlled
Accumulation Period actually commences will be delayed to the close of business on the last day of the month preceding the month that is the number of months prior to the Expected Final Payment Date at least equal to the Controlled Accumulation
Period Length and, as a result, the number of Monthly Periods in the Controlled Accumulation Period will at least equal the 

  
 19 

 
Controlled Accumulation Period Length. On the Determination Date immediately preceding the February 2021 Distribution Date, and on each Determination Date thereafter that occurs prior to the
Determination Date occurring in the Monthly Period in which the Controlled Accumulation Period commences, the Servicer will determine the
“Controlled Accumulation Period Length” which will equal the number of months such that the sum of the Controlled Accumulation Period Factors for each month during such period
will be equal to or greater than the Required Accumulation Factor Number; provided, however, that the Controlled Accumulation Period Length shall not be less than one month. Notwithstanding the foregoing, if the Controlled Accumulation Period
Length shall have been determined to be less than 12 months and, after the date on which such determination is made, a Pay-Out Event or Reinvestment Event (as those terms are defined in the Supplement for such
Series) shall occur with respect to any outstanding Principal Sharing Series other than Series 2019-1, the Controlled Accumulation Period will commence on the earlier of (i) the first day of the Monthly
Period immediately succeeding the date that such Pay-Out Event or Reinvestment Event shall have occurred with respect to such Series and (ii) the date on which the Controlled Accumulation Period is then
scheduled to commence. 

Section 4.04.        Required Amount. 

(a)        With respect to each Distribution Date, on the related Determination Date,
the Servicer shall determine the amount (the “Class A Required Amount”), if any, by which (x) the sum of (i) Class A Monthly Interest for such Distribution
Date, (ii) any Class A Monthly Interest previously due but not paid to the Class A Certificateholders on a prior Distribution Date, (iii) any Class A Additional Interest for such Distribution Date and (iv) any
Class A Additional Interest previously due but not paid to the Class A Certificateholders on a prior Distribution Date, (v) if TRS or an Affiliate of TRS is no longer the Servicer, the Class A Servicing Fee for such Distribution
Date, (vi) if TRS or an Affiliate of TRS is no longer the Servicer, any Class A Servicing Fee previously due but not paid to the Servicer, and (vii) the Class A Investor Default Amount, if any, for such Distribution Date exceeds
(y) the Class A Available Funds. In the event that the difference between (x) the Class A Required Amount for such Distribution Date and (y) the amount of Excess Spread and Excess Finance Charge Collections applied with
respect thereto pursuant to subsection 4.07(a) on such Distribution Date is greater than zero, the Servicer shall give written notice to the Transferor and the Trustee of such excess Class A Required Amount on the date of computation. 

(b)        With respect to each Distribution Date, on the related Determination Date,
the Servicer shall determine the amount (the “Class B Required Amount”), if any, equal to the sum of (x) the amount, if any, by which (A) the sum of
(i) Class B Monthly Interest for such Distribution Date, (ii) any Class B Monthly Interest previously due but not paid to the Class B Certificateholders, (iii) Class B Additional Interest, if any, for such
Distribution Date, (iv) any Class B Additional Interest previously due but not paid to the Class B Certificateholders on a prior Distribution Date, (v) if TRS or an Affiliate of TRS is no longer the Servicer, the Class B
Servicing Fee for such Distribution Date and (vi) if TRS or an Affiliate of TRS is no longer the Servicer, any Class B Servicing Fee previously due but not paid to the Servicer exceeds (B) the Class B Available Funds and
(y) the Class B Investor Default Amount for such Distribution Date. In the event that the difference between (x) the Class B Required Amount for such Distribution Date and (y) the amount of Excess Spread and Excess Finance
Charge Collections applied with respect thereto pursuant to subsection 4.07(d) on such Distribution Date is greater than zero, the Servicer shall give written notice to the Transferor and the Trustee of such excess Class B Required Amount on
the date of computation. 
 (c)        With respect to each Distribution Date, on
the related Determination Date, the Servicer shall determine the amount (the “Collateral Senior Required Amount”), if any, by which (x) the sum of (i) if TRS or an Affiliate of TRS is no longer the Servicer, the Collateral
Servicing Fee for such Distribution Date, (ii) if TRS or an Affiliate of TRS is no longer the Servicer, any Collateral Servicing Fee previously due but not paid to the Servicer, (iii) Collateral Senior Minimum Monthly Interest for such
Distribution Date, (iv) any Collateral Senior Minimum Monthly Interest previously due but not 

  
 20 

 
distributed to the Collateral Interest Holder on a prior Distribution Date, (v) Collateral Senior Additional Interest, if any, for such Distribution Date, and (vi) any Collateral Senior
Additional Interest previously due but not distributed to the Collateral Interest Holder on a prior Distribution Date exceeds (y) the sum of (A) the amount of Collateral Available Funds to be applied under Section 4.05(c)(i) on such
Distribution Date and (B) the amount of Excess Spread and Excess Finance Charge Collections available to be applied pursuant to subsection 4.07(f) on such Distribution Date. In the event that the Collateral Senior Required Amount is greater
than zero, the Servicer shall give written notice to the Transferor and the Trustee of such Collateral Senior Required Amount on the date of computation. 

Section 4.05.        Application of Class A Available
Funds, Class B Available Funds, Collateral Available Funds and Available Principal Collections. The Servicer shall apply, or shall cause the Trustee to apply by written instruction to the Trustee substantially in the form of
Exhibit B, on each Distribution Date, Class A Available Funds, Class B Available Funds, Collateral Available Funds and Available Principal Collections on deposit in the Collection Account with respect to such Distribution Date to make the
following distributions: 
 (a)        On each Distribution Date, an amount equal
to the Class A Available Funds with respect to such Distribution Date will be distributed or deposited in the following priority: 

(i)        an amount equal to Class A Monthly Interest for such
Distribution Date, plus the amount of any Class A Monthly Interest previously due but not distributed to Class A Certificateholders on a prior Distribution Date, plus the amount of any Class A Additional Interest for
such Distribution Date and any Class A Additional Interest previously due but not distributed to Class A Certificateholders on a prior Distribution Date, shall be distributed to the Paying Agent for payment to the Class A
Certificateholders; 
 (ii)        if TRS or an Affiliate of TRS is
no longer the Servicer, an amount equal to the Class A Servicing Fee for such Distribution Date, plus the amount of any Class A Servicing Fee previously due but not distributed to the Servicer on a prior Distribution Date, shall be
distributed to the Servicer; 
 (iii)        an amount equal to the
Class A Investor Default Amount for such Distribution Date shall be treated as a portion of Available Principal Collections for such Distribution Date; and 

(iv)        the balance, if any, shall constitute Excess Spread and
shall be allocated and distributed or deposited as set forth in Section 4.07. 

(b)        On each Distribution Date, an amount equal to the Class B Available
Funds with respect to such Distribution Date will be distributed or deposited in the following priority: 

(i)        an amount equal to Class B Monthly Interest for such
Distribution Date, plus the amount of any Class B Monthly Interest previously due but not distributed to Class B Certificateholders on a prior Distribution Date, plus the amount of any Class B Additional Interest for
such Distribution Date and any Class B Additional Interest previously due but not distributed to Class B Certificateholders on a prior Distribution Date, shall be distributed to the Paying Agent for payment to the Class B
Certificateholders; 
 (ii)        if TRS or an Affiliate of TRS is
no longer the Servicer, an amount equal to the Class B Servicing Fee for such Distribution Date, plus the amount of any Class B 

  
 21 

 
Servicing Fee previously due but not distributed to the Servicer on a prior Distribution Date, shall be distributed to the Servicer; and 

(iii)        the balance, if any, shall constitute Excess Spread and
shall be allocated and distributed or deposited as set forth in Section 4.07. 

(c)        On each Distribution Date, an amount equal to the Collateral Available
Funds with respect to such Distribution Date will be distributed or deposited in the following priority: 

(i)        if TRS or an Affiliate of TRS is no longer the Servicer,
an amount equal to the Collateral Servicing Fee for such Distribution Date, plus the amount of any Collateral Servicing Fee previously due but not distributed to the Servicer on a prior Distribution Date, shall be distributed to the Servicer;
and 
 (ii)        the balance, if any, shall constitute Excess
Spread and shall be allocated and distributed or deposited as set forth in Section 4.07. 

(d)        On each Distribution Date with respect to the Revolving Period, an amount
equal to the Available Principal Collections deposited in the Collection Account for the related Monthly Period shall be treated as Shared Principal Collections and applied in accordance with Section 4.04 of the Agreement. 

(e)        On each Distribution Date with respect to the Controlled Accumulation
Period, an amount equal to the Available Principal Collections deposited in the Collection Account for the related Monthly Period shall be distributed in the following order of priority: 

(i)        an amount equal to the lesser of (x) the Controlled
Deposit Amount and (y) the sum of the Class A Adjusted Invested Amount and the Class B Adjusted Invested Amount shall be deposited in the Principal Funding Account; 

(ii)        for each Distribution Date beginning on the Distribution
Date on which the Class B Invested Amount shall have been paid in full, an amount up to the Collateral Invested Amount shall be distributed to the Collateral Interest Holder; and 

(iii)        the balance of such Available Principal Collections
shall be treated as Shared Principal Collections and applied in accordance with Section 4.04 of the Agreement. 

(f)        On each Distribution Date with respect to the Early Amortization Period,
an amount equal to Available Principal Collections deposited in the Collection Account for the related Monthly Period shall be distributed or deposited in the following order of priority: 

(i)        an amount up to the Class A Adjusted Invested Amount
on such Distribution Date shall be deposited in the Principal Funding Account for distribution to the Class A Certificateholders; 

(ii)        for each Distribution Date beginning on the Distribution
Date on which the Class A Invested Amount is paid in full, an amount up to the Class B Adjusted Invested Amount on such Distribution Date shall be deposited in the Principal Funding Account for distribution to the Class B
Certificateholders; 
 (iii)        for each Distribution Date
beginning on the Distribution Date on which the Class B Invested Amount is paid in full, an amount up to the Collateral Invested 

  
 22 

 
Amount on such Distribution Date shall be distributed to the Collateral Interest Holder; and 

(iv)        for each Distribution Date, after giving effect to
paragraphs (i), (ii) and (iii) above, an amount equal to the balance, if any, of such Available Principal Collections will be treated as Shared Principal Collections and applied in accordance with Section 4.04 of the Agreement. 

Section 4.06.        Defaulted Amounts; 
Investor Charge-Offs. 
 (a)        On each Determination
Date, the Servicer shall calculate the Class A Investor Default Amount, if any, for the related Distribution Date. If, on any Distribution Date, the Class A Required Amount for the related Monthly Period exceeds the sum of (x) the
amount of Reallocated Principal Collections allocated to Series 2019-1 with respect to such Monthly Period and (y) the amount of Excess Spread and the Excess Finance Charge Collections allocable to Series
2019-1 with respect to such Monthly Period, the Collateral Invested Amount, if any, will be reduced by the amount of such excess, but not by more than the Class A Investor Default Amount for such
Distribution Date. In the event that such reduction would cause the Collateral Invested Amount to be a negative number, the Collateral Invested Amount will be reduced to zero and the Class B Invested Amount shall be reduced by the amount by
which the Collateral Invested Amount would have been reduced below zero, but not by more than the excess, if any, of the Class A Investor Default Amount for such Distribution Date over the amount of such reduction, if any, of the Collateral
Invested Amount with respect to such Distribution Date. In the event that such reduction would cause the Class B Invested Amount to be a negative number, the Class B Invested Amount shall be reduced to zero, and the Class A Invested
Amount shall be reduced by the amount by which the Class B Invested Amount would have been reduced below zero, but not by more than the excess, if any, of the Class A Investor Default Amount for such Distribution Date over the aggregate
amount of the reductions, if any, of the Collateral Invested Amount and the Class B Invested Amount for such Distribution Date (a
“Class A Investor Charge-Off”). Class A Investor Charge-Offs shall thereafter be reimbursed and the Class A Invested Amount
increased (but not by an amount in excess of the aggregate unreimbursed Class A Investor Charge-Offs) on any Distribution Date by the amount of Excess Spread and Excess Finance Charge Collections allocated and available for that purpose
pursuant to subsection 4.07(b). References to “negative numbers” above shall be determined without regard to the requirement that the Invested Amount of a Class not be reduced below zero. 

(b)        On each Determination Date, the Servicer shall calculate the Class B
Investor Default Amount, if any, for the related Distribution Date. If, on any Distribution Date, the Class B Required Amount for such Distribution Date exceeds the sum of (x) the amount of Excess Spread and Excess Finance Charge
Collections allocated to Series 2019-1 with respect to the related Monthly Period which are allocated and available to pay such amount pursuant to subsection 4.07(d) and (y) the Reallocated Principal
Collections allocable to the Collateral Interest and not required to pay the Class A Required Amount with respect to such Distribution Date, then the Collateral Invested Amount shall be reduced by the amount of such excess. In the event that
such reduction would cause the Collateral Invested Amount to be a negative number, the Collateral Invested Amount shall be reduced to zero, and the Class B Invested Amount shall be reduced by the amount by which the Collateral Invested Amount
would have been reduced below zero, but not by more than the excess, if any, of the Class B Investor Default Amount for such Distribution Date over the amount of such reduction, if any, of the Collateral Invested Amount with respect to such
Distribution Date (a “Class B Investor Charge-Off”). Class B Investor Charge-Offs shall thereafter be reimbursed and the
Class B Invested Amount increased (but not by an amount in excess of the aggregate unreimbursed Class B Investor Charge-Offs) on any Distribution Date by the amount of Excess Spread and Excess Finance Charge Collections allocated and
available for that purpose pursuant to subsection 4.07(e). References to “negative numbers” above shall be determined without regard to the requirement that the Invested Amount of a Class not be reduced below zero. 

  
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 (c)        On each Determination Date,
the Servicer shall calculate the Collateral Default Amount. If on any Distribution Date the Collateral Default Amount for the previous Monthly Period exceeds the amount of Excess Spread and Excess Finance Charge Collections allocated to Series 2019-1 with respect to the related Monthly Period which are allocated and available to pay such amount pursuant to subsection 4.07(h), the Collateral Invested Amount will be reduced by the amount of such excess but
not by more than the lesser of the Collateral Default Amount and the Collateral Invested Amount for such Distribution Date (a “Collateral Charge-Off”). The Collateral
Invested Amount will be reimbursed after any reduction pursuant to this Section 4.06 on any Distribution Date by the amount of Excess Spread and Excess Finance Charge Collections allocated and available on such Distribution date for that
purpose as described under subsection 4.07(i). 

Section 4.07.        Excess Spread; 
Excess Finance Charge Collections. The Servicer shall apply, or shall cause the Trustee to apply by written instruction to the Trustee substantially in the form of Exhibit B, on each
Distribution Date, Excess Spread and Excess Finance Charge Collections allocated to Series 2019-1 with respect to the related Monthly Period, to make the following distributions or deposits in the following
order of priority: 
 (a)        an amount equal to the Class A Required
Amount, if any, with respect to such Distribution Date shall be distributed by the Trustee to fund the Class A Required Amount in accordance with, and in the priority set forth in, subsections 4.05(a)(i), (ii) and (iii); 

(b)        an amount equal to the aggregate amount of Class A Investor
Charge-Offs which have not been previously reimbursed shall be treated as a portion of Available Principal Collections for such Distribution Date; 

(c)        an amount equal to interest on the aggregate outstanding principal balance
of the Class B Certificates not otherwise distributed to the Class B Certificateholders pursuant to Section 4.05(b)(i), at a rate per annum equal to the Class B Certificate Rate, shall be distributed to the Class B
Certificateholders, except that interest previously due but not paid will accrue interest at a rate per annum equal to the Class B Certificate Rate plus 2% per annum; 

(d)        an amount equal to the Class B Required Amount, if any, with respect
to such Distribution Date will be (i) used to fund the Class B Required Amount and be applied in accordance with subsections 4.05(b)(i) and 4.05(b)(ii), and then (ii) an amount up to the Class B Investor Default Amount
will be treated and applied as Available Principal Collections for such Distribution Date; 

(e)        an amount equal to the aggregate amount by which the Class B Invested
Amount has been reduced pursuant to clauses (c), (d) and (e) of the definition of “Class B Invested Amount” in Section 2.01 of this Supplement (but not in excess of the aggregate amount of such reductions which have not been
previously reimbursed) shall be treated as a portion of Available Principal Collections for such Distribution Date; 

(f)        an amount equal to Collateral Senior Minimum Monthly Interest for such
Distribution Date, plus the amount of any Collateral Senior Minimum Monthly Interest previously due but not distributed to the Collateral Interest Holder on a prior Distribution Date, plus the amount of any Collateral Senior Additional
Interest for such Distribution Date and any Collateral Senior Additional Interest previously due but not distributed to the Collateral Interest Holder on a prior Distribution Date, shall be distributed to the Collateral Interest Holder; 

(g)        an amount equal to the Monthly Servicing Fee for such Distribution Date
that has not been paid to the Servicer and any Monthly Servicing Fee due but not paid to the Servicer on a prior Distribution Date shall be paid to the Servicer; 

  
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 (h)        an amount equal to the
Collateral Default Amount, if any, for such Distribution Date shall be treated as a portion of Available Principal Collections for such Distribution Date; 

(i)        an amount equal to the aggregate amount by which the Collateral Invested
Amount has been reduced pursuant to clauses (c), (d) and (e) of the definition of “Collateral Invested Amount” (but not in excess of the aggregate amount of such reductions which have not been previously reimbursed) shall be treated
as a portion of Available Principal Collections for such Distribution Date; 

(j)        on each Distribution Date from and after the Reserve Account Funding Date,
but prior to the date on which the Reserve Account terminates pursuant to subsection 4.12(f), an amount up to the excess, if any, of the Required Reserve Account Amount over the Available Reserve Account Amount shall be deposited into the Reserve
Account; and 
 (k)        the balance, if any, will be distributed to the
Collateral Interest Holder. 

Section 4.08.        Reallocated 
Principal Collections. On each Distribution Date, the Servicer shall apply, or shall cause the Trustee to apply by written instruction to the Trustee substantially in the form of Exhibit B, Reallocated Principal Collections
with respect to such Distribution Date, to make the following distributions or deposits in the following order of priority: 

(a)        an amount equal to the excess, if any, of (i) the Class A
Required Amount, if any, with respect to such Distribution Date over (ii) the amount of Excess Spread and Excess Finance Charge Collections allocated to Series 2019-1 with respect to the related Monthly
Period shall be distributed by the Trustee to fund any deficiency pursuant to and in the priority set forth in subsections 4.05(a)(i), (ii) and (iii); 

(b)        an amount equal to the excess, if any, of (i) the Class B
Required Amount, if any, with respect to such Distribution Date over (ii) the amount of Excess Spread and Excess Finance Charge Collections allocated and available to the Class B Certificates pursuant to subsections 4.07(c) and (d) on
such Distribution Date shall be applied first to fund any deficiency pursuant to subsections 4.05(b)(i) and (ii) and then to fund any deficiency pursuant to and in the priority set forth in subsections 4.07(c) and (d); and 

(c)        an amount equal to the Collateral Senior Required Amount, if any, with
respect to such Distribution Date shall be applied to fund any deficiency pursuant to subsection 4.05(c)(i) and subsection 4.07(f), in that order of priority; provided, however, that Reallocated Principal Collections shall only be
applied pursuant to this subsection 4.08(c) to the extent the Collateral Invested Amount shall be no lower than the Collateral Senior Invested Amount after giving effect to the related reduction in the Collateral Invested Amount. 

All Reallocated Principal Collections with respect to the Collateral Invested Amount shall be applied prior to applying any
such Reallocated Principal Collections with respect to the Class B Invested Amount. Only Reallocated Principal Collections with respect to the Collateral Invested Amount shall be applied pursuant to clauses (b) or (c) above. 

On each Distribution Date, the Collateral Invested Amount shall be reduced by the amount of Reallocated Principal Collections
for such Distribution Date; provided, however, that the Collateral Invested Amount shall not be reduced below the Collateral Senior Invested Amount in connection with the application of Reallocated Principal Collections pursuant to
subsection 4.08(c). In the event that such reduction would cause the Collateral Invested Amount (after giving effect to any Collateral Charge-Offs for such Distribution Date) to be a negative number, the Collateral Invested Amount (after giving
effect to any Collateral Charge-Offs for such Distribution Date) shall be reduced to zero and the Class B Invested Amount shall be reduced by the amount by which the Collateral Invested 

  
 25 

 
Amount would have been reduced below zero. In the event that the reallocation of Reallocated Principal Collections would cause the Class B Invested Amount (after giving effect to any
Class B Investor Charge-Offs for such Distribution Date) to be a negative number on any Distribution Date, Reallocated Principal Collections shall be reallocated on such Distribution Date in an aggregate amount not to exceed the amount which
would cause the Class B Invested Amount (after giving effect to any Class B Investor Charge-Offs for such Distribution Date) to be reduced to zero. References to “negative numbers” above shall be determined without regard to the
requirement that the Invested Amount of a Class not be reduced below zero. 

Section 4.09.        Excess Finance 
Charge Collections. Series 2019-1 shall be an Excess Allocation Series. Subject to Section 4.05 of the Agreement, Excess Finance Charge Collections with respect to the Excess
Allocation Series for any Distribution Date will be allocated to Series 2019-1 in an amount equal to the product of (x) the aggregate amount of Excess Finance Charge Collections with respect to all the
Excess Allocation Series for such Distribution Date and (y) a fraction, the numerator of which is the Finance Charge Shortfall for Series 2019-1 for such Distribution Date and the denominator of which is
the aggregate amount of Finance Charge Shortfalls for all the Excess Allocation Series for such Distribution Date. The “Finance Charge Shortfall” for Series
2019-1 for any Distribution Date will be equal to the excess, if any, of (a) the full amount required to be paid, without duplication, pursuant to subsections 4.05(a), 4.05(b) and 4.05(c) and subsections
4.07(a) through (j) on such Distribution Date and the full amount required to be paid, without duplication, pursuant to subsections 3.02(a)(iii) and 3.02(a)(iv) of the Transfer Agreement on the related Payment Date (as such term is defined in
the Transfer Agreement) over (b) the sum of (i) the Reallocated Investor Finance Charge Collections, (ii) if such Monthly Period relates to a Distribution Date with respect to the Controlled Accumulation Period or Early Amortization
Period, the amount of Principal Funding Account Investment Proceeds, if any, with respect to such Distribution Date and (iii) the amount of funds, if any, to be withdrawn from the Reserve Account which, pursuant to subsection 4.12(d), are
required to be included in Class A Available Funds with respect to such Distribution Date. The amount of Excess Finance Charge Collections for Series 2019-1 for any Distribution Date shall be specified in
subsection 3.02(a)(v) of the Transfer Agreement. On each Distribution Date, the Trustee shall deposit into the Collection Account for application in accordance with Section 4.05 of the Agreement the aggregate amount of Excess Finance Charge
Collections received by the Trustee pursuant to the Transfer Agreement on such date. 

Section 4.10.        Reallocated 
Investor Finance Charge Collections. 

(a)        That portion of Group I Investor Finance Charge Collections for any
Distribution Date equal to the amount of Reallocated Investor Finance Charge Collections for such Distribution Date will be allocated to Series 2019-1 and will be distributed as set forth in this Supplement.

 (b)        Reallocated Investor Finance Charge Collections with respect to any
Distribution Date shall equal the sum of (i) the aggregate amount of Series 2019-1 Monthly Interest, Investor Default Amount, Series 2019-1 Monthly Fees and Series 2019-1 Additional Amounts for such Distribution Date and (ii) that portion of excess Group I Investor Finance Charge Collections to be included in Reallocated Investor Finance Charge Collections pursuant to
subsection (c) hereof; provided, however, that if the amount of Group I Investor Finance Charge Collections for such Distribution Date is less than the sum of (w) Group I Investor Monthly Interest, (x) Group I Investor Default
Amount, (y) Group I Investor Monthly Fees and (z) Group I Investor Additional Amounts, then Reallocated Investor Finance Charge Collections shall equal the sum of the following amounts for such Distribution Date: 

(A)        The product of (I) Group I Investor Finance Charge
Collections (up to the amount of Group I Investor Monthly Interest) and (II) a fraction, the numerator of which is Series 2019-1 Monthly Interest and the denominator of which is Group I Investor Monthly
Interest; 

  
 26 

 (B)        the product
of (I) Group I Investor Finance Charge Collections less the amount of Group I Investor Monthly Interest (up to the Group I Investor Default Amount) and (II) a fraction, the numerator of which is the Investor Default Amount and the
denominator of which is the Group I Investor Default Amount; 

(C)        the product of (I) Group I Investor Finance Charge
Collections less the amount of Group I Investor Monthly Interest and the Group I Investor Default Amount (up to Group I Investor Monthly Fees) and (II) a fraction, the numerator of which is Series 2019-1
Monthly Fees and the denominator of which is Group I Investor Monthly Fees; and 

(D)        the product of (I) Group I Investor Finance Charge
Collections less the sum of (i) Group I Investor Monthly Interest, (ii) the Group I Investor Default Amount and (iii) Group I Investor Monthly Fees and (II) a fraction, the numerator of which is Series 2019-1 Additional Amounts and the denominator of which is Group I Investor Additional Amounts. 

(c)        If the amount of Group I Investor Finance Charge Collections for such
Distribution Date exceeds the sum of (i) Group I Investor Monthly Interest, (ii) Group I Investor Default Amount, (iii) Group I Investor Monthly Fees and (iv) Group I Investor Additional Amounts, then Reallocated Investor Finance
Charge Collections for such Distribution Date shall include an amount equal to the product of (x) the amount of such excess and (y) a fraction, the numerator of which is the Invested Amount as of the last day of the second preceding
Monthly Period (or, for Series 2019-1 only, with respect to the first Distribution Date, as of the Closing Date) and the denominator of which is the sum of such Invested Amount and the aggregate invested
amounts for all other Series included in Group I as of such last day (or, for Series 2019-1 only, with respect to the first Distribution Date, as of the Closing Date). 

Section 4.11.        Shared Principal 
Collections. Subject to Section 4.04 of the Agreement, Shared Principal Collections for any Distribution Date will be allocated to Series 2019-1 in an amount equal to the product of (x) the
aggregate amount of Shared Principal Collections with respect to all Principal Sharing Series for such Distribution Date and (y) a fraction, the numerator of which is the Series 2019-1 Principal Shortfall
for such Distribution Date and the denominator of which is the aggregate amount of Principal Shortfalls for all the Series which are Principal Sharing Series for such Distribution Date. The
“Series 2019-1 Principal Shortfall” will be equal to (a) for any Distribution Date with respect to the Revolving Period, zero,
(b) for any Distribution Date with respect to the Controlled Accumulation Period, the excess, if any, of the Controlled Deposit Amount with respect to such Distribution Date over the amount of Available Principal Collections for such
Distribution Date (excluding any portion thereof attributable to Shared Principal Collections), and (c) for any Distribution Date with respect to the Early Amortization Period, the excess, if any, of the Invested Amount over the amount of
Available Principal Collections for such Distribution Date (excluding any portion thereof attributable to Shared Principal Collections). 

Section 4.12.        Reserve Account. 

(a)        The Servicer shall establish and maintain, in the name of the Trustee, on
behalf of the Trust, for the benefit of the Series 2019-1 Certificateholders, an Eligible Deposit Account (the “Reserve Account”) bearing a designation clearly indicating
that the funds deposited therein and the property credited thereto are held for the benefit of the Series 2019-1 Certificateholders. The Reserve Account shall initially be established with The Bank of New York
Mellon. The Trustee shall possess all right, title and interest in all funds and property from time to time deposited in or credited to the Reserve Account and in all proceeds thereof. The Reserve Account shall be under the sole dominion and control
of the Trustee for the benefit of the Series 2019-1 Certificateholders. If at any time the Reserve Account 

  
 27 

 
ceases to be an Eligible Deposit Account, the Trustee (or the Servicer on its behalf) shall within 10 Business Days (or such longer period, not to exceed 30 calendar days, as to which each Rating
Agency shall consent) establish a new Reserve Account meeting the conditions specified above as an Eligible Deposit Account, and shall transfer any cash or any investments to such new Reserve Account. The Trustee, at the direction of the Servicer,
shall (i) make withdrawals from the Reserve Account from time to time in an amount up to the Available Reserve Account Amount at such time, for the purposes set forth in this Supplement, and (ii) on each Distribution Date (from and after
the Reserve Account Funding Date) prior to the termination of the Reserve Account make a deposit into the Reserve Account in the amount specified in, and otherwise in accordance with, subsection 4.07(j). 

(b)        Funds on deposit in the Reserve Account shall be invested at the written
direction of the Servicer (or its agent appointed pursuant to Section 4.13(c)) by the Trustee in Eligible Investments; provided, however, that if no such written direction is provided, funds on deposit in the Reserve Account shall remain
uninvested. Subject to the immediately preceding sentence, funds on deposit in the Reserve Account on any Transfer Date, after giving effect to any withdrawals from the Reserve Account on such Transfer Date, shall be invested in such investments
that will mature so that such funds will be available for withdrawal on or prior to the following Transfer Date. No such Eligible Investment shall be disposed of prior to its maturity; provided, however, that the Trustee shall sell, liquidate
or dispose of any such Eligible Investment if, prior to the maturity of such Eligible Investment, a default occurs in the payment of principal, interest or any other amount with respect to such Eligible Investment; provided further, however,
that the Servicer shall deliver prompt written notice to the Trustee of any such default; and provided further that, subject to Section 11.01 of the Agreement, the Trustee will not in any way be held liable by reason of any insufficiency
in such Reserve Account resulting from any loss on any Eligible Investment included therein except for losses attributable to the Trustee’s failure to make payments on such Eligible Investments issued by the Trustee, in its commercial capacity,
in accordance with their terms. On each Distribution Date, all interest and earnings (net of losses and investment expenses) accrued since the preceding Distribution Date on funds on deposit in the Reserve Account shall be retained in the Reserve
Account (to the extent that the Available Reserve Account Amount is less than the Required Reserve Account Amount) and the balance, if any, shall be deposited in the Collection Account and treated as collections of Finance Charge Receivables
allocable to Series 2019-1. For purposes of determining the availability of funds or the balance in the Reserve Account for any reason under this Supplement, except as otherwise provided in the preceding
sentence, investment earnings on such funds shall be deemed not to be available or on deposit. 

(c)        On the Determination Date preceding each Distribution Date with respect to
the Controlled Accumulation Period and the first Special Payment Date, the Servicer shall calculate the “Reserve Draw Amount” which shall be equal to the excess, if any, of the Covered Amount
with respect to such Distribution Date or Special Payment Date over the Principal Funding Account Investment Proceeds with respect to such Distribution Date or Special Payment Date; provided, that such amount will be reduced to the extent
that funds otherwise would be available for deposit in the Reserve Account under subsection 4.07(j) with respect to such Distribution Date or Special Payment Date. 

(d)        In the event that for any Distribution Date the Reserve Draw Amount is
greater than zero, the Reserve Draw Amount, up to the Available Reserve Account Amount, shall be withdrawn from the Reserve Account on the related Transfer Date by the Trustee (acting in accordance with the instructions of the Servicer), deposited
into the Collection Account and included in Class A Available Funds for such Distribution Date. 

(e)        In the event that the Reserve Account Surplus on any Distribution Date,
after giving effect to all deposits to and withdrawals from the Reserve Account with respect to such Distribution Date, is greater than zero, the Trustee, acting in accordance with the written instructions of the Servicer, shall withdraw from the
Reserve Account, and distribute to the Collateral Interest Holder, an amount equal to such Reserve Account Surplus. 

  
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 (f)        Upon the earliest to occur of
(i) the day on which the Invested Amount is paid in full to the Series 2019-1 Certificateholders, (ii) if the Controlled Accumulation Period has not commenced, the occurrence of a Pay-Out Event with respect to Series 2019-1, (iii) if the Controlled Accumulation Period has commenced, the earlier of the first Special Payment Date and the Expected Final
Payment Date and (iv) the termination of the Trust pursuant to the Agreement, the Trustee, acting in accordance with the instructions of the Servicer, after the prior payment of all amounts owing to the Class A Certificateholders which are
payable from the Reserve Account as provided herein, shall withdraw from the Reserve Account and pay to the Collateral Interest Holder all amounts, if any, on deposit in the Reserve Account and the Reserve Account shall be deemed to have terminated
for purposes of this Supplement. 

Section 4.13.        Investment Instructions. 

(a)        Any investment instructions required to be given to the Trustee pursuant
to the terms hereof must be given to the Trustee no later than 10:30 a.m. (New York City time) on the date such investment is to be made. In the event the Trustee receives such investment instruction later than such time, the Trustee may, but shall
have no obligation to, make such investment. In the event the Trustee is unable to make an investment required in an investment instruction received by the Trustee after 10:30 a.m. (New York City time) on such day, such investment shall be made by
the Trustee on the next succeeding Business Day. In no event shall the Trustee be liable for any investment not made pursuant to investment instructions received after 10:30 a.m. (New York City time) on the day such investment is requested to be
made. 
 (b)        The Trustee shall hold each Eligible Investment that
constitutes investment property through a securities intermediary, which securities intermediary shall agree with the Trustee that (i) such investment property at all times shall be credited to a securities account of the Trustee, (ii) all
property credited to such securities account shall be treated as a financial asset, (iii) such securities intermediary shall treat the Trustee as entitled to exercise the rights that comprise each financial asset credited to such securities
account, (iv) such securities intermediary shall comply with entitlement orders originated by the Trustee without the further consent of any other person or entity, (v) such securities intermediary shall not agree with any person or entity
other than the Trustee to comply with entitlement orders originated by any person or entity other than the Trustee, (vi) such securities account and all property credited thereto shall not be subject to any lien, security interest, right of set-off, or encumbrance in favor of such securities intermediary or anyone claiming through such securities intermediary (other than the Trustee), (vii) such agreement between such securities intermediary and the
Trustee shall be governed by the laws of the State of New York, and (viii) such securities intermediary’s jurisdiction for purposes of the Uniform Commercial Code shall be the State of New York. The Trustee shall maintain possession of
each other Eligible Investment in the State of New York, separate and apart from all other property held by the Trustee. Notwithstanding any other provision of this Supplement, the Trustee shall not hold any Eligible Investment through an agent
except as expressly permitted by this Section 4.13(b). Each term used in this Section 4.13(b) and defined in the New York Uniform Commercial Code shall have the meaning set forth in the New York Uniform Commercial Code. 

(c)        With respect to investments made by the Trustee pursuant to the terms
hereof, the Servicer may appoint as its agent under a separate agreement a registered investment advisor and authorize such agent to give instructions, which may be provided to the Trustee through S.W.I.F.T., on behalf of the Servicer to the Trustee
for funds to be invested and reinvested in one or more Eligible Investments. The Servicer shall provide the Trustee with a written direction certifying any such appointment. The Trustee shall be entitled to conclusively rely on, and shall be
protected in acting upon, instructions, which may be provided to the Trustee through S.W.I.F.T., received from such agent on behalf of the Servicer. 

Section 4.14.        [Reserved]. 

  
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 ARTICLE V 

Distributions and Reports to 

Series 2019-1 Certificateholders 

Section 5.01.        Distributions. 

(a)        On each Distribution Date, the Paying Agent shall distribute to each
Class A Certificateholder of record on the related Record Date (other than as provided in Section 12.02 of the Agreement) such Class A Certificateholder’s pro rata share of the amounts held by the Paying Agent that are
allocated and available on such Distribution Date to pay interest on the Class A Certificates pursuant to this Supplement. 

(b)        On each Special Payment Date and on the Expected Final Payment Date, the
Paying Agent shall distribute (in accordance with the Certificate delivered by the Servicer pursuant to Section 3.04(b) of the Agreement) to each Class A Certificateholder of record on the related Record Date (other than as provided in
Section 12.02 of the Agreement) such Class A Certificateholder’s pro rata share of the amounts on deposit in the Principal Funding Account or otherwise held by the Paying Agent that are allocated and available on such date to
pay principal of the Class A Certificates pursuant to this Supplement up to a maximum amount on any such date equal to the Class A Invested Amount on such date (unless there has been an optional repurchase of the Series 2019-1 Certificateholders’ Interest pursuant to Section 10.01 of the Agreement, in which event the foregoing limitation will not apply). 

(c)        On each Distribution Date, the Paying Agent shall distribute (in
accordance with the Certificate delivered by the Servicer pursuant to Section 3.04(b) of the Agreement) to each Class B Certificateholder of record on the related Record Date (other than as provided in Section 12.02 of the Agreement)
such Class B Certificateholder’s pro rata share of the amounts held by the Paying Agent that are allocated and available on such Distribution Date to pay interest on the Class B Certificates pursuant to this Supplement. 

(d)        On each Special Payment Date, and on the Expected Final Payment Date, the
Paying Agent shall distribute (in accordance with the Certificate delivered by the Servicer pursuant to Section 3.04(b) of the Agreement) to each Class B Certificateholder of record on the related Record Date (other than as provided in
Section 12.02 of the Agreement) such Class B Certificateholder’s pro rata share of the amounts on deposit in the Principal Funding Account or otherwise held by the Paying Agent that are allocated and available on such date to
pay principal of the Class B Certificates pursuant to this Supplement up to a maximum amount on any such date equal to the Class B Invested Amount on such date (unless there has been an optional repurchase of the Series 2019-1 Certificateholders’ Interest pursuant to Section 10.01 of the Agreement, in which event the foregoing limitation will not apply). 

(e)        On each Distribution Date, the Trustee shall distribute to the Collateral
Interest Holder the aggregate amount payable to the Collateral Interest Holder pursuant to Sections 4.05, 4.07, 4.12, 8.01 and 8.02 to the Collateral Interest Holder’s account, as specified in writing by the Collateral Interest Holder, in
immediately available funds. 
 (f)        The distributions to be made pursuant to
this Section 5.01 are subject to the provisions of Sections 2.06, 9.02, 10.01 and 12.02 of the Agreement and Sections 8.01 and 8.02 of this Supplement. 

(g)        Except as provided in Section 12.02 of the Agreement with respect to
a final distribution, distributions to Series 2019-1 Certificateholders hereunder shall be made by check mailed to each Series 2019-1 Certificateholder at such Series 2019-1 Certificateholder’s address appearing in the Certificate Register without presentation or surrender of any Series 2019-1 Certificate or the making of

  
 30 

 
any notation thereon; provided, however, that with respect to Series 2019-1 Certificates registered in the name of a Clearing Agency, such
distributions shall be made to such Clearing Agency in immediately available funds. 

(h)        The distributions to be made pursuant to this Section 5.01 are to be
made pursuant to the written instructions of the Servicer substantially in the form of Exhibit B. 

Section 5.02.        Reports and 
Statements to Series 2019-1 Certificateholders. 

(a)        On each Distribution Date, the Paying Agent, on behalf of the Trustee,
shall make available, and shall forward to each Series 2019-1 Certificateholder upon request, a statement substantially in the form of Exhibit C-1 to this
Supplement prepared by the Servicer and delivered to the Paying Agent. 

(b)        Not later than each Determination Date, the Servicer shall deliver to the
Trustee, the Paying Agent, the Transferor, each Rating Agency and the Collateral Interest Holder (i) a statement substantially in the form of Exhibit C-1 to this Supplement prepared by the Servicer and
(ii) a certificate of a Servicing Officer substantially in the form of Exhibit D. 

(c)        A copy of each statement or certificate provided pursuant to paragraph
(a) or (b) may be obtained by any Series 2019-1 Certificateholder or any Certificate Owner thereof by a request in writing to the Servicer. 

(d)        On or before January 31 of each calendar year, beginning with
calendar year 2020, the Paying Agent, on behalf of the Trustee, shall furnish or cause to be furnished to each Person who at any time during the preceding calendar year was a Series 2019-1 Certificateholder, a
statement substantially in the form of Exhibit C-2 to this Supplement to the extent prepared by the Servicer and delivered to the Paying Agent for such calendar year or the applicable portion thereof
during which such Person was a Series 2019-1 Certificateholder, together with such information as is required to be provided by a paying agent under the Code (including Forms 1099 and other customary tax
reporting information) and, to the extent prepared by the Servicer and delivered to the Paying Agent, such other information as is required to be provided by an issuer of indebtedness under the Code. The obligations of the Servicer and Paying Agent
to prepare and deliver the statement substantially in the form of Exhibit C-2 to this Supplement shall be deemed to have been satisfied to the extent that substantially comparable information shall be
provided by the Paying Agent pursuant to any requirements of the Code as from time to time in effect. 
 ARTICLE VI 

Pay-Out Events 

Section 6.01.        
Pay-Out Events. If any one of the following events shall occur with respect to the Series 2019-1 Certificates: 

(a)        the occurrence of an Insolvency Event relating to the Transferor or other
holder of the Original Transferor Certificate; 
 (b)        the Trust becomes an
investment company within the meaning of the Investment Company Act; 

(c)        failure on the part of the Transferor (i) to make any payment or
deposit required by the terms of the Agreement or this Supplement on or before the date occurring five Business Days after the date such payment or deposit is required to be made therein or herein or (ii) duly to observe or

  
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perform any other covenants or agreements of the Transferor set forth in the Agreement or this Supplement, which failure has a material adverse effect on the Series
2019-1 Certificateholders and which continues unremedied for a period of 60 days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to such
Transferor by the Trustee, or to the Transferor and the Trustee by any Holder of the Series 2019-1 Certificates; 

(d)        any representation or warranty made by the Transferor in the Agreement or
this Supplement, or any information contained in a computer file or microfiche list required to be delivered by the Transferor pursuant to Section 2.01 or subsection 2.08(f) of the Agreement shall prove to have been incorrect in any material
respect when made or when delivered, which continues to be incorrect in any material respect for a period of 60 days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to such Transferor
by the Trustee, or to such Transferor and the Trustee by any Holder of the Series 2019-1 Certificates and as a result of which the interests of the Series 2019-1
Certificateholders are materially and adversely affected for such period; provided, however, that a Pay-Out Event pursuant to this subsection 6.01(d) shall not be deemed to have occurred hereunder if
the Transferor has accepted reassignment of the related Receivable, or all of such Receivables, if applicable, during such period (or such longer period not to exceed an additional 60 days as the Trustee may specify) in accordance with the
provisions of the Agreement; 
 (e)        a failure by the Transferor to convey
Receivables in Additional Accounts or Participation Interests to the Trust within five Business Days after the day on which it is required to convey such Receivables or Participation Interests pursuant to subsection 2.09(a) of the Agreement; 

(f)        any Servicer Default which would have an Adverse Effect shall occur; 

(g)        the average Series Adjusted Portfolio Yield for any three consecutive
Monthly Periods is reduced to a rate which is less than the average of the Base Rates for such period; 

(h)        the Class A Invested Amount, the Class B Invested Amount or the
Collateral Invested Amount shall not be paid in full on the Expected Final Payment Date; 

(i)        a Transfer Restriction Event shall occur; 

(j)    the occurrence of an Insolvency Event as defined in the Receivables Purchase Agreement relating to the Account
Owner; or 
 (k)     a Transfer Restriction Event as defined in the Receivables Purchase Agreements shall occur between
the Account Owner and the related Transferor; 
 then, (A) in the case of any event described in subparagraph (c), (d) or (f), after
the applicable grace period, if any, set forth in such subparagraphs, either the Trustee or the Investor Certificateholders of this Series evidencing more than 50% of the aggregate unpaid principal amount of the Investor Certificates of this Series
by notice then given in writing to the Transferor and the Servicer (and to the Trustee if given by the Investor Certificateholders of this Series) may declare that a Pay-Out Event has occurred with respect to
this Series as of the date of such notice; (B) in the case of any event described in subparagraph (b), (e), (g) or (h), a Pay-Out Event shall occur with respect to this Series without any notice or other
action on the part of the Trustee or the Investor Certificateholders of this Series immediately upon the occurrence of such event; and (C) in the case of any event described in subparagraph (a), (i), (j) or (k), a
Pay-Out Event shall occur with respect to this Series without any notice or other action on the part of the Trustee or the Investor Certificateholders of this Series immediately upon the occurrence of such
event (or, in the case of clause (y) below, immediately following the expiration of the 60-day grace period), but only to the extent that (x) as of the date of such event, the average of the Monthly
Receivables Percentage for the immediately preceding three Monthly Periods is equal to or greater than 10% or (y) as of the date 

  
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of such event, the average of the Monthly Receivables Percentage for the immediately preceding three Monthly Periods is less than 10%, and within 60 days following the occurrence of the related
Insolvency Event or Transfer Restriction Event, the aggregate amount of Principal Receivables outstanding in the Trust does not at least equal the Required Minimum Principal Balance (without giving effect to Principal Receivables attributable to the
Transferor or the Account Owner with respect to which the Insolvency Event or the Transfer Restriction Event has occurred). 
 ARTICLE VII

 Optional Repurchase; Series Termination 

Section 7.01.        Optional Repurchase. 

(a)        So long as the Transferor is the Servicer or an Affiliate of the Servicer,
on any day occurring on or after the date on which the Invested Amount is reduced to 5% or less of the Initial Invested Amount, such Transferor shall have the option to purchase the Series 2019-1
Certificateholders’ Interest, at a purchase price equal to (i) if such day is a Distribution Date, the Reassignment Amount for such Distribution Date or (ii) if such day is not a Distribution Date, the Reassignment Amount for the
Distribution Date following such day. If, on the date on which the Transferor exercises such option, the long-term unsecured debt obligations of such Transferor purchasing the Series 2019-1
Certificateholders’ Interest is not rated at least in the third highest rating category by the Rating Agency, such Transferor shall deliver to the Trustee, with a copy to the Rating Agency, an Officer’s Certificate of such Transferor which
shall have attached to it the relevant fraudulent conveyance statute, if any, and set forth the factual basis for a conclusion that the exercise of such optional repurchase would not constitute a fraudulent conveyance of such Transferor. 

(b)        The Transferor shall give the Servicer and the Trustee at least 30 days
prior written notice of the date on which the Transferor intends to exercise such purchase option. Not later than 12:00 noon, New York City time, on such day the Transferor shall deposit the Reassignment Amount into the Collection Account in
immediately available funds. Such purchase option is subject to payment in full of the Reassignment Amount. Following the deposit of the Reassignment Amount into the Collection Amount in accordance with the foregoing, the Invested Amount for Series 2019-1 shall be reduced to zero and the Series 2019-1 Certificateholders shall have no further interest in the Receivables. The Reassignment Amount shall be distributed as set
forth in subsection 8.01(b). 

Section 7.02.        Series Termination. 

(a)        If, on the August 2024 Distribution Date, the Invested Amount (after
giving effect to all changes therein on such date) would be greater than zero, the Servicer, on behalf of the Trustee, shall, within the 40-day period which begins on such Distribution Date, solicit bids for
the sale of Principal Receivables and the related Finance Charge Receivables (or interests therein) in an amount equal to the Invested Amount at the close of business on the last day of the Monthly Period preceding the Series 2019-1 Termination Date (after giving effect to all distributions required to be made on the Series 2019-1 Termination Date, except pursuant to this Section 7.02). Such
bids shall require that such sale shall (subject to subsection 7.02(b)) occur on the Series 2019-1 Termination Date. The Transferor, any Affiliate thereof, any agent thereof or any other party consolidated
with such Transferor for purposes of United States generally accepted accounting principles shall not be entitled to participate in such bidding process or to purchase the Receivables; provided, however, that, to the extent the
Collateral Interest Holder is not the Transferor, an Affiliate thereof, an agent thereof or any other party consolidated with the Transferor for purposes of United States generally accepted accounting principles, the Collateral Interest Holder may
participate in such bidding process. 

  
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 (b)        The Servicer, on behalf of
the Trustee, shall sell such Receivables (or interests therein) on the Series 2019-1 Termination Date to the bidder who made the highest cash purchase offer. The proceeds of any such sale shall be treated as
Collections on the Receivables allocated to the Series 2019-1 Certificateholders pursuant to the Agreement and this Supplement; provided, however, that the Servicer shall determine conclusively the
amount of such proceeds which are allocable to Finance Charge Receivables and the amount of such proceeds which are allocable to Principal Receivables. During the period from the August 2024 Distribution Date to the Series 2019-1 Termination Date, the Servicer shall continue to collect payments on the Receivables and allocate and deposit such Collections in accordance with the provisions of the Agreement and the Supplements. 

ARTICLE VIII 

Final Distributions 

Section 8.01.         Sale of Receivables or Certificateholders’
Interest pursuant to Section 2.06 or 10.01 of the Agreement and Section 7.01 or 7.02 of this Supplement. 

(a)        (i)        The amount to be paid
by the Transferor with respect to Series 2019-1 in connection with a reassignment of Receivables to the Transferor pursuant to Section 2.06 of the Agreement shall equal the Reassignment Amount for the
first Distribution Date following the Monthly Period in which the reassignment obligation arises under the Agreement. 

(ii)        The amount to be paid by the Transferor with respect to
Series 2019-1 in connection with a repurchase of the Certificateholders’ Interest pursuant to Section 10.01 of the Agreement shall equal the sum of (x) the Reassignment Amount for the
Distribution Date of such repurchase and (y) the sum of (A) the excess, if any, of (I) a price equivalent to the average of bids quoted on the Record Date preceding the date of repurchase or, if not a Business Day, on the next
succeeding Business Day by at least two recognized dealers selected by the Trustee for the purchase by such dealers of a security which is similar to the Class A Certificates with a remaining maturity approximately equal to the remaining
maturity of the Class A Certificates and rated by each Rating Agency in the rating category originally assigned to the Class A Certificates over (II) the portion of the Reassignment Amount attributable to the Class A Certificates
and (B) the excess, if any, of (I) a price equivalent to the average of bids quoted on such Record Date, or if not a Business Day, on the next succeeding Business Day by at least two recognized dealers selected by the Trustee for the
purchase by such dealers of a security which is similar to the Class B Certificates with a remaining maturity approximately equal to the remaining maturity of the Class B Certificates and rated by each Rating Agency in the rating category
originally assigned to the Class B Certificates over (II) the portion of the Reassignment Amount attributable to the Class B Certificates. 

(b)        With respect to the Reassignment Amount deposited into the Collection
Account pursuant to Section 7.01 or any amounts allocable to the Series 2019-1 Certificateholders’ Interest deposited into the Collection Account pursuant to Section 7.02, the Trustee shall, in
accordance with the written direction of the Servicer, not later than 12:00 noon, New York City time, on the related Distribution Date, make deposits or distributions of the following amounts (in the priority set forth below and, in each case after
giving effect to any deposits and distributions otherwise to be made on such date) in immediately available funds: (i) (x) the Class A Invested Amount on such Distribution Date will be distributed to the Paying Agent for payment to the
Class A Certificateholders and (y) an amount equal to the sum of (A) Class A Monthly Interest for such Distribution Date, (B) any Class A Monthly Interest previously due but not distributed to the Class A
Certificateholders on a prior Distribution Date and (C) the amount of Class A Additional Interest, if any, for such Distribution Date and any Class A Additional 

  
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Interest previously due but not distributed to the Class A Certificateholders on any prior Distribution Date, will be distributed to the Paying Agent for payment to the Class A
Certificateholders, (ii) (x) the Class B Invested Amount on such Distribution Date will be distributed to the Paying Agent for payment to the Class B Certificateholders and (y) an amount equal to the sum of (A) Class B
Monthly Interest for such Distribution Date, (B) any Class B Monthly Interest previously due but not distributed to the Class B Certificateholders on a prior Distribution Date and (C) the amount of Class B Additional
Interest, if any, for such Distribution Date and any Class B Additional Interest previously due but not distributed to the Class B Certificateholders on any prior Distribution Date, will be distributed to the Paying Agent for payment to
the Class B Certificateholders and (iii) the balance, if any, will be distributed to the Collateral Interest Holder. 

(c)        Notwithstanding anything to the contrary in this Supplement or the
Agreement, all amounts distributed to the Paying Agent pursuant to subsection 8.01(b) for payment to the Series 2019-1 Certificateholders shall be deemed distributed in full to the Series 2019-1 Certificateholders on the date on which such funds are distributed to the Paying Agent pursuant to this Section and shall be deemed to be a final distribution pursuant to Section 12.02 of the Agreement.

 Section 8.02.        Distribution of Proceeds of Sale, Disposition or
Liquidation of the Receivables pursuant to Section 9.01 of the Agreement. 

(a)        Not later than 12:00 noon, New York City time, on the Distribution Date
following the date on which the Insolvency Proceeds are deposited into the Collection Account pursuant to subsection 9.01(b) of the Agreement, the Trustee shall in accordance with the written direction of the Servicer (in the following priority and,
in each case, after giving effect to any deposits and distributions otherwise to be made on such Distribution Date) (i) deduct an amount equal to the Class A Invested Amount on such Distribution Date from the portion of the Insolvency
Proceeds allocated to Series 2019-1 Allocable Principal Collections and distribute such amount to the Paying Agent for payment to the Class A Certificateholders, provided that the amount of such
distribution shall not exceed the product of (x) the portion of the Insolvency Proceeds allocated to Series 2019-1 Allocable Principal Collections and (y) the Principal Allocation Percentage with
respect to the related Monthly Period, (ii) deduct an amount equal to the Class B Invested Amount on such Distribution Date from the portion of the Insolvency Proceeds allocated to Series 2019-1
Allocable Principal Collections and distribute such amount to the Paying Agent for payment to the Class B Certificateholders, provided that the amount of such distribution shall not exceed (x) the product of (A) the portion of such
Insolvency Proceeds allocated to Series 2019-1 Allocable Principal Collections and (B) the Principal Allocation Percentage with respect to the related Monthly Period minus (y) the amount
distributed to the Paying Agent pursuant to clause (i) of this sentence and (iii) distribute the remaining amount of the Insolvency Proceeds to the Collateral Interest Holder. 

(b)        Not later than 12:00 noon, New York City time, on such Distribution Date,
the Trustee shall in accordance with the written direction of the Servicer (in the following priority and, in each case, after giving effect to any deposits and distributions otherwise to be made on such Distribution Date) (i) deduct an amount
equal to the sum of (w) Class A Monthly Interest for such Distribution Date, (x) any Class A Monthly Interest previously due but not distributed to the Class A Certificateholders on a prior Distribution Date and (y) the
amount of Class A Additional Interest, if any, for such Distribution Date and any Class A Additional Interest previously due but not distributed to the Class A Certificateholders on a prior Distribution Date from the portion of the
Insolvency Proceeds allocated to Collections of Finance Charge Receivables and distribute such amount to the Paying Agent for payment to the Class A Certificateholders, provided that the amount of such distribution shall not exceed the product
of (x) the portion of the Insolvency Proceeds allocated to Series 2019-1 Allocable Finance Charge Collections, (y) the Floating Allocation Percentage with respect to the related Monthly Period and
(z) the Class A Floating Percentage with respect to such Monthly Period and (ii) deduct an amount equal to the sum of (w) Class B Monthly Interest for such Distribution Date, (x) Class B Monthly Interest

  
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previously due but not distributed to the Class B Certificateholders on a prior Distribution Date and (y) the amount of Class B Additional Interest, if any, for such Distribution
Date and any Class B Additional Interest previously due but not distributed to the Class B Certificateholders on a prior Distribution Date from the portion of the Insolvency Proceeds allocated to Series
2019-1 Allocable Finance Charge Collections and distribute such amount to the Paying Agent for payment to the Class B Certificateholders, provided that the amount of such distribution shall not exceed the
product of (x) the portion of the Insolvency Proceeds allocated to Series 2019-1 Allocable Finance Charge Collections, (y) the Floating Allocation Percentage with respect to the related Monthly
Period and (z) the Class B Floating Percentage with respect to such Monthly Period. To the extent that the product of (A) the portion of the Insolvency Proceeds allocated to Series 2019-1
Allocable Finance Charge Collections and (B) the Floating Allocation Percentage with respect to the related Monthly Period exceeds the aggregate amount distributed to the Paying Agent pursuant to the preceding sentence, the excess shall be
distributed to the Collateral Interest Holder. 
 (c)        Notwithstanding
anything to the contrary in this Supplement or the Agreement, all amounts distributed to the Paying Agent pursuant to this Section for payment to the Series 2019-1 Certificateholders shall be distributed in
full to the Series 2019-1 Certificateholders on the date on which funds are distributed to the Paying Agent pursuant to this Section and shall be deemed to be a final distribution pursuant to
Section 12.02 of the Agreement. 
 ARTICLE IX 

Miscellaneous Provisions 

Section 9.01.        Ratification of 
Agreement. As supplemented by this Supplement, the Agreement is in all respects ratified and confirmed and the Agreement as so supplemented by this Supplement shall be read, taken and construed as one and the same instrument. 

Section 9.02.        Counterparts. This Supplement may be executed in two
or more counterparts, and by different parties on separate counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument. 

Section 9.03.        Governing Law. THIS SUPPLEMENT
SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 

Section 9.04.        [Reserved]. 

Section 9.05.        FATCA Matters. Each Certificate Owner and Series 2019-1 Certificateholder, by the purchase of a Certificate or its acceptance of a beneficial interest therein, acknowledges that interest on the Certificates will be treated as United States source interest, and, as
such, United States withholding tax may apply. Each such Certificate Owner and Series 2019-1 Certificateholder further agrees, upon request, to provide any certifications that may be required under applicable
law, regulations or procedures to evidence such status and understands that if it ceases to satisfy the foregoing requirements or provide requested documentation, payments to it under the Certificates may be subject to United States withholding tax
(without any corresponding gross-up). Without limiting the foregoing, if a payment made under this Supplement would be subject to United States federal withholding tax imposed by FATCA if the recipient of such
payment were to fail to comply with FATCA (including the requirements of Code Sections 1471(b) or 1472(b), as applicable), such recipient shall deliver to the Transferor and the Trustee, at the time or times prescribed by the Code and at such time
or times reasonably requested by the Transferor or the Trustee, such documentation prescribed by the Code (including as prescribed by Code Section 1471(b)(3)(C)(i)) and such additional documentation reasonably requested by the Transferor or the
Trustee to comply with their respective obligations under FATCA, to determine that such recipient has complied with such recipient’s obligations under FATCA, or to determine the amount to deduct and withhold from such payment. In addition, the
Transferor shall deliver to the Trustee, at the time or times prescribed by the Code and at such time or times reasonably requested by the Trustee, such documentation prescribed by the Code (including as prescribed by Code
Section 1471(b)(3)(C)(i)) and such additional 

  
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documentation reasonably requested by the Trustee to comply with its obligations under FATCA, and the Transferor understands that failure to provide such documentation may result in payments
being subject to United States withholding tax. The Trustee shall be entitled to deduct withholding tax imposed pursuant to FATCA, and shall have no obligation to gross up any payment or to pay any additional amount as a result of such withholding
tax. For these purposes, “FATCA” means Section 1471 through 1474 of the Code and any regulations or official interpretations thereof (including any revenue ruling, revenue procedure, notice or similar guidance issued by the U.S.
Internal Revenue Service thereunder as a precondition to relief or exemption from taxes under such Sections, regulations and interpretations), any agreements entered into pursuant to Code Section 1471(b)(1), and including any amendments made to
FATCA after the date of this Supplement. 

Section 9.06.        Uncertificated Securities. The Collateral Interest
shall be delivered in uncertificated form. 

Section 9.07.        Transfers of the Collateral Interest. 

(a)        Unless otherwise consented to by the Transferor, no portion of the
Collateral Interest or any interest therein may be sold, conveyed, assigned, hypothecated, pledged, participated, exchanged or otherwise transferred (each, a “Transfer”) except in accordance with this Section 9.07 and only to a
Permitted Assignee. Any attempted or purported transfer, assignment, exchange, conveyance, pledge, hypothecation or grant other than to a Permitted Assignee shall be void. Unless otherwise consented to by the Transferor, no portion of the Collateral
Interest or any interest therein may be Transferred to any Person (each such Person acquiring the Collateral Interest or any interest therein, an “Assignee”) unless such Assignee shall have executed and delivered to the Transferor
on or before the effective date of any Transfer a letter substantially in the form attached hereto as Exhibit E (an “Investment Letter”), executed by such Assignee, with respect to the related Transfer to such Assignee of all
or a portion of the Collateral Interest. 
 (b)        Each Assignee will certify
that the Collateral Interest or the interest therein purchased by such Assignee will be acquired for investment only and not with a view to any public distribution thereof, and that such Assignee will not offer to sell or otherwise dispose of the
Collateral Interest or any interest therein so acquired by it in violation of any of the registration requirements of the Securities Act, or any applicable state or other securities laws. Each Assignee will acknowledge and agree that (i) it has
no right to require the Transferor to register under the Securities Act or any other securities law the Collateral Interest or the interest therein to be acquired by the Assignee and (ii) the sale of the Collateral Interest is not being made by
means of the prospectus prepared in connection with the sale of the Series 2019-1 Certificates. Each Assignee will agree with the Transferor that: (a) such Assignee will deliver to the Transferor an
Investment Letter and (b) all of the statements made by such Assignee in its Investment Letter shall be true and correct as of the date made. 

(c)        No portion of the Collateral Interest or any interest therein may be
Transferred to, and each Assignee will certify that it is not, (a) an “employee benefit plan” (as defined in Section 3(3) of ERISA and subject to Title I of ERISA), (b) any “plan” (as defined in and subject to
Section 4975 of the Code) including individual retirement accounts and Keogh plans, or (c) any other entity whose underlying assets include “plan assets” (within the meaning of U.S. Department of Labor Regulation Section 2510.3-101, 29 C.F.R. § 2510.3-101, as modified by Section 3(42) of ERISA) by reason of a plan’s investment in the entity, including, without
limitation, an insurance company general account. 

  
 37 

 [The signature page follows this page.] 

  
 38 

 IN WITNESS WHEREOF, the undersigned have caused this Supplement to be duly
executed and delivered by their respective duly authorized officers on the day and year first above written. 
  

			
	AMERICAN EXPRESS RECEIVABLES
		 	 FINANCING CORPORATION III LLC,

as Transferor

		
	By:	 	 /s/ Kerri S. Bernstein

		 	Name: Kerri S. Bernstein
		 	Title: President
	
	AMERICAN EXPRESS TRAVEL RELATED
		 	 SERVICES COMPANY, INC.,
 as
Servicer

		
	By:  	 	 /s/ David L. Yowan

		 	Name: David L. Yowan
		 	Title: Treasurer
	
	THE BANK OF NEW YORK MELLON,
		 	as Trustee
		
	By:	 	 /s/ Michael D. Commisso

		 	Name: Michael D. Commisso
		 	Title: Vice President

 [Signature page – Series 2019-1 Supplement] 

					
		  	FORM OF CLASS A CERTIFICATE	  	EXHIBIT A-1

  

			
		
	REGISTERED	  	$                1/
		
	No. R-            	  	CUSIP No. 02588Q AB4

 Unless this Class A Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation (“DTC”), to American Express Receivables Financing Corporation III LLC or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the
name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. 

AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST 

SERIES 2019-1 

CLASS A 2.87% ASSET BACKED CERTIFICATE 

Expected Final Payment Date: 
 The
March 2022 Distribution Date 
 Each $100,000 minimum denomination represents a 

1/15,000ths undivided interest 
 in
Class A of the 
 AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST, SERIES 2019-1 

Evidencing an undivided interest in certain assets of a trust, the corpus of which consists primarily of an interest in receivables generated
from time to time in the ordinary course of business in a portfolio of credit and charge accounts serviced by 
 AMERICAN EXPRESS TRAVEL
RELATED SERVICES COMPANY, INC., 
 and other assets and interests constituting Trust Assets under the Fourth Amended and Restated Pooling
and Servicing Agreement referred to below. 
 (Not an interest in or obligation of American Express Travel Related Services
Company, Inc., American Express National Bank, American Express Receivables Financing Corporation III LLC, or any of their respective affiliates) 

This certifies that CEDE & CO. (the “Class A Certificateholder”) is the registered owner of a
fractional undivided interest in certain assets of a trust (the “Trust”) created pursuant to the Fourth Amended and Restated Pooling and Servicing Agreement, dated as of April 1, 2018 (as amended and restated and as otherwise
amended and supplemented, the “Agreement”), as supplemented by the Series 2019-1 Supplement, dated as of February 14, 2019 (as amended and supplemented, the
“Supplement”), among 
  
  

	1 /	 Denominations of $100,000 and integral multiples of $1,000 in excess thereof. 

  
 A-1-1 

 
American Express Receivables Financing Corporation III LLC, as transferor (the “Transferor”), American Express Travel Related Services Company, Inc., as servicer, and The Bank of
New York Mellon, a New York banking corporation, as trustee (the “Trustee”). The corpus of the Trust consists of (i) the Transferor’s ownership interest in a portfolio of receivables (the “Receivables”)
existing in credit and charge accounts identified under the Agreement from time to time (the “Accounts”), (ii) all Receivables generated under the Accounts from time to time thereafter, (iii) funds collected or to be collected
from cardmembers in respect of the Receivables, (iv) all funds which are from time to time on deposit in the Collection Account, the Special Funding Account and any other Series Accounts and (v) all other assets and interests constituting
the Trust. The Holder of this Certificate is entitled to the benefits of the subordination of the Class B Certificates and the Collateral Interest to the extent provided in the Supplement. Although a summary of certain provisions of the
Agreement and the Supplement is set forth below and in the Summary of Terms and Conditions attached hereto and made a part hereof, this Class A Certificate does not purport to summarize the Agreement and the Supplement and reference is made to
the Agreement and the Supplement for information with respect to the interests, rights, benefits, obligations, proceeds and duties evidenced hereby and the rights, duties and obligations of the Trustee. A copy of the Agreement and the Supplement
(without schedules) may be requested from the Trustee by writing to the Trustee at the Corporate Trust Office. To the extent not defined herein, the capitalized terms used herein have the meanings ascribed to them in the Agreement or the Supplement,
as applicable. 
 This Class A Certificate is issued under and is subject to the terms, provisions and conditions of
the Agreement and the Supplement, to which Agreement and Supplement, each as amended and supplemented from time to time, the Class A Certificateholder by virtue of the acceptance hereof assents and is bound. 

It is the intent of the Transferor and the Class A Certificateholder that, for federal, state and local income and
franchise tax purposes, the Class A Certificates will qualify as indebtedness of the Transferor secured by the Receivables. The Class A Certificateholder, by the acceptance of this Class A Certificate, agrees to treat this
Class A Certificate for federal, state and local income and franchise tax purposes as debt of the Transferor. 
 In
general, payments of principal with respect to the Class A Certificates are limited to the Class A Invested Amount, which may be less than the unpaid principal balance of the Class A Certificates. The Expected Final Payment Date is
the March 2022 Distribution Date, but principal with respect to the Class A Certificates may be paid earlier or later under certain circumstances described in the Agreement and the Supplement. If for one or more months during the Controlled
Accumulation Period there are not sufficient funds to pay the Controlled Deposit Amount, then to the extent that excess funds are not available on subsequent Distribution Dates with respect to the Controlled Accumulation Period to make up for such
shortfalls, the final payment of principal of the Class A Certificates will occur later than the Expected Final Payment Date. 

Unless the certificate of authentication hereon has been executed by or on behalf of the Trustee, by manual signature, this
Class A Certificate shall not be entitled to any benefit under the Agreement or the Supplement or be valid for any purpose. 

  
 A-1-2 

 IN WITNESS WHEREOF, the Transferor has caused this Class A Certificate to be duly executed.

  

			
	AMERICAN EXPRESS RECEIVABLES FINANCING CORPORATION III LLC
		
	By:	 	  

		 	 Name:
 Title:

 Dated: February 14, 2019 

  
 A-1-3 

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the American Express Credit Account Master Trust Series 2019-1 Class A
Certificates described in the within-mentioned Agreement and Supplement. 
  

			
	 THE BANK OF NEW YORK MELLON,

as Trustee

		
	 By:
	 	  

		 	 Authorized Signatory

		
		 	 or

		
	 By:
	 	  

		 	 as Authenticating Agent

for the Trustee

		
	 By:
	 	  

		 	 Authorized Signatory

  
 A-1-4 

 AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST 

SERIES 2019-1 

CLASS A 2.87% ASSET BACKED CERTIFICATE 

Summary of Terms and Conditions 

The Receivables consist of Principal Receivables which arise generally from the purchase of goods and services and amounts
advanced to cardmembers as cash advances and Finance Charge Receivables. This Class A Certificate is one of a Series of Certificates entitled American Express Credit Account Master Trust, Series 2019-1
(the “Series 2019-1 Certificates”), and one of a class thereof entitled Class A Series 2019-1 2.87% Asset Backed Certificates (the
“Class A Certificates”), each of which represents a fractional, undivided interest in certain assets of the Trust. The assets of the Trust are allocated in part to the investor certificateholders of all
outstanding Series (the “Certificateholders’ Interest”) with the remainder allocated to the Holders of the Transferor Certificates. The aggregate interest represented by the Class A Certificates at any time in the
Principal Receivables in the Trust shall not exceed an amount equal to the Class A Invested Amount at such time. The Class A Initial Invested Amount is $1,500,000,000. The Class A Invested Amount on any date will be an amount equal to
(a) the Class A Initial Invested Amount, minus (b) the aggregate amount of principal payments made to the Class A Certificateholder on or prior to such date, minus (c) the excess, if any, of the aggregate
amount of Class A Investor Charge-Offs for all prior Distribution Dates over Class A Investor Charge-Offs reimbursed pursuant to subsection 4.07(b) of the Supplement prior to such date. 

Subject to the terms and conditions of the Agreement, the Transferor may, from time to time, direct the Trustee, on behalf of
the Trust, to issue one or more new Series of Investor Certificates, which will represent fractional, undivided interests in certain of the Trust Assets. 

On each Distribution Date, the Paying Agent shall distribute to each Class A Certificateholder of record on the last day
of the preceding calendar month (each a “Record Date”) such Class A Certificateholder’s pro rata share of such amounts (including amounts on deposit in the Collection Account and Principal Funding Account) as are
payable to the Class A Certificateholder pursuant to the Agreement and the Supplement. Distributions with respect to this Class A Certificate will be made by the Paying Agent by check mailed to the address of the Class A
Certificateholder of record appearing in the Certificate Register without the presentation or surrender of this Class A Certificate or the making of any notation thereon (except for the final distribution in respect of this Class A
Certificate) except that with respect to Class A Certificates registered in the name of Cede & Co., the nominee for The Depository Trust Company, distributions will be made in the form of immediately available funds. Final payment of
this Class A Certificate will be made only upon presentation and surrender of this Class A Certificate at the office or agency specified in the notice of final distribution delivered by the Trustee to the Series 2019-1 Certificateholders in accordance with the Agreement and the Supplement. 
 On any
day occurring on or after the day on which the Invested Amount is reduced to 5% or less of the Initial Invested Amount, the Transferor has the option to repurchase the Series 2019-1 Certificateholders’
Interest in the Trust. The repurchase price will be equal to (a) if such day is a Distribution Date, the Reassignment Amount for such Distribution Date or (b) if such day is not a Distribution Date, the Reassignment Amount for the
Distribution Date following such day. Following the deposit of the Reassignment Amount in the Collection Account, Series 2019-1 Certificateholders will not have any interest in the Receivables and the Series 2019-1 Certificates will represent only the right to receive such Reassignment Amount. 

  
 A-1-5 

 This Class A Certificate does not represent an obligation of, or an
interest in, the Transferor or the Servicer or any affiliate of any of them and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency or instrumentality. This Class A Certificate is limited
in right of payment to certain Collections with respect to the Receivables (and certain other amounts), all as more specifically set forth hereinabove and in the Agreement and the Supplement. 

The Class A Certificates are issuable only in minimum denominations of $100,000 and integral multiples of $1,000. The
transfer of this Class A Certificate shall be registered in the Certificate Register upon surrender of this Class A Certificate for registration of transfer at any office or agency maintained by the Transfer Agent and Registrar accompanied
by a written instrument of transfer, in a form satisfactory to the Trustee or the Transfer Agent and Registrar, duly executed by the Class A Certificateholder or such Class A Certificateholder’s attorney, and duly authorized in
writing with such signature guaranteed, and thereupon one or more new Class A Certificates of authorized denominations and for the same aggregate fractional undivided interest will be issued to the designated transferee or transferees. 

As provided in the Agreement and subject to certain limitations therein set forth, Class A Certificates are exchangeable
for new Class A Certificates evidencing like aggregate fractional, undivided interests as requested by the Class A Certificateholder surrendering such Class A Certificates. No service charge may be imposed for any such exchange but
the Servicer or Transfer Agent and Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith. 

The Servicer, the Transferor, the Trustee, the Paying Agent and the Transfer Agent and Registrar and any agent of any of
them, may treat the person in whose name this Class A Certificate is registered as the owner hereof for all purposes, and none of the Servicer, the Transferor, the Trustee, the Paying Agent, the Transfer Agent and Registrar, or any agent of any
of them, shall be affected by notice to the contrary except in certain circumstances described in the Agreement. 
 THIS
CLASS A CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
WITH SUCH LAWS. 

  
 A-1-6 

 ASSIGNMENT 

Social Security or other identifying number of assignee
                                      
           
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto 
  
  

(name and address of assignee) 

the within certificate and all rights thereunder, and hereby irrevocably constitutes and appoints
                                     
   , attorney, to transfer said certificate on the books kept for registration thereof, with full power of substitution in the premises. 
  

			
	Dated:                         	  	                                    
            2/
		
		  	    Signature Guaranteed:
		
		  	                                      
              

  
  

2 /         NOTE: The signature to this assignment must
correspond with the name of the registered owner as it appears on the face of the within Certificate in every particular, without alteration, enlargement or any change whatsoever. 

  
 A-1-7 

					
		  	FORM OF CLASS B CERTIFICATE	  	EXHIBIT A-2

 THIS CLASS B CERTIFICATE MAY NOT BE ACQUIRED BY OR FOR THE ACCOUNT OF PERSONS INVESTING ASSETS OF A BENEFIT
PLAN (AS DEFINED BELOW) OR AN INDIVIDUAL RETIREMENT ACCOUNT OTHER THAN BY INSURANCE COMPANIES INVESTING ASSETS SOLELY OF THEIR GENERAL ACCOUNTS. 
  

			
	REGISTERED	  	$                    3/
		
	No. R-                	  	CUSIP No. 02588Q AC2

 Unless this Class B Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation (“DTC”), to American Express Receivables Financing Corporation III LLC or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the
name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. 

AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST 

SERIES 2019-1 

CLASS B 3.07% ASSET BACKED CERTIFICATE 

Expected Final Payment Date: 
 The
March 2022 Distribution Date 
 Each $100,000 minimum denomination represents a 

1/64286/100ths undivided interest

 in Class B of the 

AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST, SERIES 2019-1 

Evidencing an undivided interest in certain assets of a trust, the corpus of which consists primarily of an interest in receivables generated
from time to time in the ordinary course of business in a portfolio of credit and charge accounts serviced by 
 AMERICAN EXPRESS TRAVEL
RELATED SERVICES COMPANY, INC., 
 and other assets and interests constituting Trust Assets under the Fourth Amended and Restated Pooling
and Servicing Agreement referred to below. 
 (Not an interest in or obligation of American Express Travel Related Services Company, Inc.,
American Express National Bank, American Express Receivables Financing Corporation III LLC or any of their respective affiliates) 
  

 

	3 /	 Denominations of $100,000 and integral multiples of $1,000 in excess thereof. 

  
 A-2-1 

 This certifies that CEDE & CO. (the “Class B
Certificateholder”) is the registered owner of a fractional, undivided interest in certain assets of a trust (the “Trust”) created pursuant to the Fourth Amended and Restated Pooling and Servicing Agreement, dated as of
April 1, 2018 (as amended and restated and otherwise amended and supplemented, the “Agreement”), as supplemented by the Series 2019-1 Supplement, dated as of February 14, 2019 (as
amended and supplemented, the “Supplement”), among American Express Receivables Financing Corporation III LLC, as transferor (the “Transferor”), American Express Travel Related Services Company, Inc., as servicer,
and The Bank of New York Mellon, a New York banking corporation, as trustee (the “Trustee”). The corpus of the Trust consists of (i) the Transferor’s ownership interest in a portfolio of receivables (the
“Receivables”) existing in credit and charge accounts identified under the Agreement from time to time (the “Accounts”), (ii) all Receivables generated under the Accounts from time to time thereafter,
(iii) funds collected or to be collected from cardmembers in respect of the Receivables, (iv) all funds which are from time to time on deposit in the Collection Account, the Special Funding Account, and any other Series Accounts and
(v) all other assets and interests constituting the Trust. Although a summary of certain provisions of the Agreement and the Supplement is set forth below and in the Summary of Terms and Conditions attached hereto and made a part hereof, this
Class B Certificate does not purport to summarize the Agreement and the Supplement and reference is made to the Agreement and the Supplement for information with respect to the interests, rights, benefits, obligations, proceeds and duties
evidenced hereby and the rights, duties and obligations of the Trustee. A copy of the Agreement and the Supplement (without schedules) may be requested from the Trustee by writing to the Trustee at the Corporate Trust Office. To the extent not
defined herein, the capitalized terms used herein have the meanings ascribed to them in the Agreement or the Supplement, as applicable. 

This Class B Certificate is issued under and is subject to the terms, provisions and conditions of the Agreement and the
Supplement, to which Agreement and Supplement, each as amended and supplemented from time to time, the Class B Certificateholder by virtue of the acceptance hereof assents and is bound. 

No Class B Certificate may be acquired by or for the account of any employee benefit plan, trust or account, including
an individual retirement account, that is subject to the Employee Retirement Income Security Act of 1974, as amended, or that is described in Section 4975(e)(1) of the Internal Revenue Code of 1986, as amended, or an entity whose underlying
assets include plan assets by reason of a plan’s investment in such entity (a “Benefit Plan”), unless (i) such acquirer or holder is an insurance company, (ii) the source of funds used to acquire or hold such Certificate (or
interest therein) is an “insurance company general account” (as defined in U.S. Department of Labor Prohibited Transaction Class Exemption (“PTCE”) 95-60), and (iii) the
conditions set forth in Sections I and III of PTCE 95-60 have been satisfied. By acquiring any interest in this Class B Certificate, each applicable Certificate Owner shall be deemed to have represented
and warranted either (i) that it is not a Benefit Plan and is not acting for the account of any Benefit Plan or (ii) that (1) it is an insurance company, (2) the source of funds used to acquire or hold an interest in such Certificate
is an “insurance company general account” (as such term is defined in PTCE 95-60), and (3) the conditions set forth in Sections I and III of PTCE 95-60
have been satisfied. 
 THIS CLASS B CERTIFICATE IS SUBORDINATED TO THE EXTENT NECESSARY TO FUND PAYMENTS ON THE CLASS A
CERTIFICATES TO THE EXTENT SPECIFIED IN THE SUPPLEMENT. 
 It is the intent of the Transferor and the Class B
Certificateholder that, for federal, state and local income and franchise tax purposes, the Class B Certificates will qualify as indebtedness of the Transferor secured by the Receivables. The Class B Certificateholder, by the acceptance of
this Class B Certificate, agrees to treat this Class B Certificate for federal, state and local income and franchise tax purposes as debt of the Transferor. 

  
 A-2-2 

 In general, payments of principal with respect to the Class B Certificates
are limited to the Class B Invested Amount, which may be less than the unpaid principal balance of the Class B Certificates. The Expected Final Payment Date is the March 2022 Distribution Date, but principal with respect to the
Class B Certificates may be paid earlier or later under certain circumstances described in the Agreement and the Supplement. If for one or more months during the Controlled Accumulation Period there are not sufficient funds to pay the
Controlled Deposit Amount, then to the extent that excess funds are not available on subsequent Distribution Dates with respect to the Controlled Accumulation Period to make up for such shortfalls, the final payment of principal of the Class B
Certificates will occur later than the Expected Final Payment Date. 
 Unless the certificate of authentication hereon has
been executed by or on behalf of the Trustee, by manual signature, this Class B Certificate shall not be entitled to any benefit under the Agreement or the Supplement or be valid for any purpose. 

  
 A-2-3 

 IN WITNESS WHEREOF, the Transferor has caused this Class B Certificate to
be duly executed. 
  

			
	AMERICAN EXPRESS RECEIVABLES FINANCING CORPORATION III LLC
		
	By:	 	  

		 	Name:
		 	Title:

 Dated: February 14, 2019 

  
 A-2-4 

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the American Express Credit Account Master Trust Series 2019-1
Class B Certificates described in the within mentioned Agreement and Supplement. 
  

			
	 THE BANK OF NEW YORK MELLON,
 as
Trustee

		
	By:	 	  

		 	Authorized Signatory
		
	or	 	
		
	By:	 	  

		 	as Authenticating Agent
		 	for the Trustee
		
	By:	 	  

		 	Authorized Signatory

  
 A-2-5 

 AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST 

SERIES 2019-1 

CLASS B 3.07% ASSET BACKED CERTIFICATE 

Summary of Terms and Conditions 

The Receivables consist of Principal Receivables which arise generally from the purchase of goods and services and amounts
advanced to cardmembers as cash advances and Finance Charge Receivables. This Class B Certificate is one of a Series of Certificates entitled American Express Credit Account Master Trust, Series 2019-1
(the “Series 2019-1 Certificates”), and one of a class thereof entitled Class B Series 2019-1 3.07% Asset Backed Certificates (the
“Class B Certificates”), each of which represents a fractional, undivided interest in certain assets of the Trust. The assets of the Trust are allocated in part to the investor certificateholders of all
outstanding Series (the “Certificateholders’ Interest”) with the remainder allocated to the Holders of the Transferor Certificates. The aggregate interest represented by the Class B Certificates at any time in the
Principal Receivables in the Trust shall not exceed an amount equal to the Class B Invested Amount at such time. The Class B Initial Invested Amount is $64,286,000. The Class B Invested Amount on any date will be an amount equal to
(a) the Class B Initial Invested Amount, minus (b) the aggregate amount of principal payments made to the Class B Certificateholder on or prior to such date, minus (c) the excess, if any, of the aggregate
amount of Class B Investor Charge-Offs for all prior Distribution Dates over Class B Investor Charge-Offs reimbursed, minus (d) the amount of Reallocated Principal Collections allocated on all prior Distribution Dates pursuant
to subsection 4.08(a) of the Supplement (excluding any Reallocated Principal Collections that have resulted in a reduction in the Collateral Invested Amount pursuant to Section 4.08), minus (e) an amount equal to the amount by which
the Class B Invested Amount has been reduced to cover the Class A Investor Default Amount on all prior Distribution Dates, and plus (f) the amount of Excess Spread and Excess Finance Charge Collections allocated to Series 2019-1 and applied on all prior Distribution Dates for the purpose of reimbursing amounts deducted pursuant to the foregoing clauses (c), (d) and (e); provided, however, that the Class B Invested Amount
may not be reduced below zero. 
 Subject to the terms and conditions of the Agreement, the Transferor may, from time to
time, direct the Trustee, on behalf of the Trust, to issue one or more new Series of Investor Certificates, which will represent fractional, undivided interests in certain of the Trust Assets. 

On each Distribution Date, the Paying Agent shall distribute to each Class B Certificateholder of record on the last day
of the preceding calendar month (each a “Record Date”) such Class B Certificateholder’s pro rata share of such amounts (including amounts on deposit in the Collection Account and Principal Funding Account) as are
payable to the Class B Certificateholder pursuant to the Agreement and the Supplement. Distributions with respect to this Class B Certificate will be made by the Paying Agent by check mailed to the address of the Class B
Certificateholder of record appearing in the Certificate Register without the presentation or surrender of this Class B Certificate or the making of any notation thereon (except for the final distribution in respect of this Class B
Certificate) except that with respect to Class B Certificates registered in the name of Cede & Co., the nominee for The Depository Trust Company, distributions will be made in the form of immediately available funds. Final payment of
this Class B Certificate will be made only upon presentation and surrender of this Class B Certificate at the office or agency specified in the notice of final distribution delivered by the Trustee to the Series 2019-1 Certificateholders in accordance with the Agreement and the Supplement. 
 On any
day occurring on or after the day on which the Invested Amount is reduced to 5% or less of the Initial Invested Amount, the Transferor has the option to repurchase the Series 2019-1

  
 A-2-6 

 
Certificateholders’ Interest in the Trust. The repurchase price will be equal to (a) if such day is a Distribution Date, the Reassignment Amount for such Distribution Date or
(b) if such day is not a Distribution Date, the Reassignment Amount for the Distribution Date next following such day. Following the deposit of the Reassignment Amount in the Collection Account, Series
2019-1 Certificateholders will not have any interest in the Receivables and the Series 2019-1 Certificates will represent only the right to receive such Reassignment
Amount. 
 This Class B Certificate does not represent an obligation of, or an interest in, the Transferor or the
Servicer or any affiliate of any of them and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency or instrumentality. This Class B Certificate is limited in right of payment to certain
Collections with respect to the Receivables (and certain other amounts), all as more specifically set forth hereinabove and in the Agreement and the Supplement. 

The Class B Certificates are issuable only in minimum denominations of $100,000 and integral multiples of $1,000. The
transfer of this Class B Certificate shall be registered in the Certificate Register upon surrender of this Class B Certificate for registration of transfer at any office or agency maintained by the Transfer Agent and Registrar accompanied
by a written instrument of transfer, in a form satisfactory to the Trustee or the Transfer Agent and Registrar, duly executed by the Class B Certificateholder or such Class B Certificateholder’s attorney, and duly authorized in
writing with such signature guaranteed, and thereupon one or more new Class B Certificates of authorized denominations and for the same aggregate fractional undivided interest will be issued to the designated transferee or transferees. 

As provided in the Agreement and subject to certain limitations therein set forth, Class B Certificates are exchangeable
for new Class B Certificates evidencing like aggregate fractional undivided interests as requested by the Class B Certificateholder surrendering such Class B Certificates. No service charge may be imposed for any such exchange but the
Servicer or Transfer Agent and Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith. 

The Servicer, the Transferor, the Trustee, the Paying Agent and the Transfer Agent and Registrar and any agent of any of
them, may treat the person in whose name this Class B Certificate is registered as the owner hereof for all purposes, and none of the Servicer, the Transferor, the Trustee, the Paying Agent, the Transfer Agent and Registrar, or any agent of any
of them, shall be affected by notice to the contrary except in certain circumstances described in the Agreement. 
 THIS
CLASS B CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
WITH SUCH LAWS. 

  
 A-2-7 

 ASSIGNMENT 

Social Security or other identifying number of assignee
                                     

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto ______________________________________________ 

(name and address of assignee) 

the within certificate and all rights thereunder, and hereby irrevocably constitutes and appoints
                                     
   , attorney, to transfer said certificate on the books kept for registration thereof, with full power of substitution in the premises. 
  

			
	Dated:                         	  	                                    
            4/
		
		  	    Signature Guaranteed:
		
		  	                                      
          

  
  

4 /        NOTE: The signature to this assignment must
correspond with the name of the registered owner as it appears on the face of the within Certificate in every particular, without alteration, enlargement or any change whatsoever. 

  
 A-2-8 

 EXHIBIT B 

FORM OF MONTHLY PAYMENT INSTRUCTIONS AND 

NOTIFICATION TO THE TRUSTEE 
  

 
  

AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST 

SERIES 2019-1 
  

 

The undersigned, a duly authorized representative of American Express Travel Related Services Company, Inc.
(“TRS”), as Servicer pursuant to the Fourth Amended and Restated Pooling and Servicing Agreement, dated as of April 1, 2018 (as amended and restated and as otherwise amended and supplemented, the “Pooling and Servicing
Agreement”), among TRS, American Express Receivables Financing Corporation III LLC, as transferor (the “Transferor”), and The Bank of New York Mellon (formerly The Bank of New York), as trustee (the
“Trustee”), does hereby certify as follows: 
 1.    Capitalized terms used in this
Certificate have their respective meanings set forth in the Pooling and Servicing Agreement or the Series 2019-1 Supplement, dated as of February 14, 2019, among TRS, the Transferor and the Trustee (as
amended and supplemented, the “Supplement”), as applicable. 
 2.    TRS is the
Servicer. 
 3.    The undersigned is a Servicing Officer. 

 

	I.    INSTRUCTION	 TO MAKE A WITHDRAWAL 

Pursuant to subsections 4.05(a), (b) and (c), the Servicer does hereby instruct the Trustee (i) to make withdrawals from
the Collection Account on                 ,         , which date is a
Distribution Date under the Supplement, in the aggregate amounts (equal to the Class A Available Funds, Class B Available Funds and Collateral Available Funds, respectively) as set forth below in respect of the following amounts and
(ii) to apply the proceeds of such withdrawals in accordance with subsections 4.05(a), (b) and (c): 
 With respect to the Class A
Certificates, 
  

							
	A)	 	Pursuant to subsection 4.05(a)(i):	  	
				
		 	(1)	 	Interest at the Class A Certificate Rate for the related Interest Accrual Period on the Class A Invested Amount	  	    $                                 
        
				
		 	(2)	 	Class A Monthly Interest previously due but not paid	  	    $                                 
        

  
 B-1 

 
							
				
		 	(3)	 	Class A Additional Interest and any Class A Additional Interest due but not paid	 	    $                                 
        
			
	B)	 	Pursuant to subsection 4.05(a)(ii):	 	
				
		 	(1)	 	The Class A Servicing Fee for the preceding Monthly Period, if applicable	 	    $                                 
        
				
		 	(2)	 	Accrued and unpaid Class A Servicing Fees, if applicable	 	    $                                 
        
			
	C)	 	Pursuant to subsection 4.05(a)(iii):	 	
				
		 	(1)	 	Class A Investor Default Amount for the preceding Monthly Period	 	    $                                 
        
		
	With respect to the Class B Certificates,	 	
			
	A)	 	Pursuant to subsection 4.05(b)(i):	 	
				
		 	(1)	 	Interest at the Class B Certificate Rate for the related Interest Accrual Period on the Class B Invested Amount	 	    $                                 
        
				
		 	(2)	 	Class B Monthly Interest previously due but not paid	 	    $                                 
        
				
		 	(3)	 	Class B Additional Interest and any Class B Additional Interest previously due but not paid	 	    $                                 
        
			
	B)	 	Pursuant to subsection 4.05(b)(ii):	 	
				
		 	(1)	 	The Class B Servicing Fee for the preceding Monthly Period, if applicable	 	    $                                 
        
				
		 	(2)	 	Accrued and unpaid Class B Servicing Fees, if applicable	 	    $                                 
        
		
	With respect to the Collateral Interest	 	
			
	A)	 	Pursuant to subsection 4.05(c)(i):	 	
				
		 	(1)	 	The Collateral Servicing Fee for the preceding Monthly Period, if applicable	 	    $                                 
        
				
		 	(2)	 	Accrued and unpaid Collateral Servicing Fees, if applicable	 	    $                                 
        

 Pursuant to subsections 4.05(d), (e) and (f), the Servicer hereby instructs the Trustee
(i) to make withdrawals from the Collection Account on                 , which date is a Distribution Date under the Supplement, in the aggregate amounts
(equal to the Available Principal Collections) as set forth 

  
 B-2 

 
below in respect of the following amounts and (ii) to apply the proceeds of such withdrawals in accordance with subsections 4.05(d), (e) and (f): 

 

							
	A)	 	Pursuant to subsection 4.05(d):	 	
				
		 	(1)	 	Amount to be treated as Shared Principal Collections	 	    $                                 
        
			
	B)	 	Pursuant to subsection 4.05(e):	 	
				
		 	(1)	 	The lesser of the Controlled Deposit Amount and the sum of the Class A Adjusted Invested Amount and the Class B Adjusted Invested Amount deposited in the Principal Funding Account	 	    $                                 
        
				
		 	(2)	 	After the Class B Invested Amount is paid in full, the amount paid to the Collateral Interest Holder (up to the Collateral Invested Amount)	 	    $                                 
        
				
		 	(3)	 	Prior to the date the Class B Invested Amount is paid in full, amount to be treated as Shared Principal Collections	 	    $                                 
        
			
	C)	 	Pursuant to subsection 4.05(f):	 	
				
		 	(1)	 	An amount up to the Class A Adjusted Invested Amount deposited in the Principal Funding Account	 	    $                                 
        
				
		 	(2)	 	On and after the Distribution Date on which the Class A Invested Amount is paid in full, an amount up to the Class B Invested Amount deposited in the Principal Funding Account	 	    $                                 
        
				
		 	(3)	 	On and after the Distribution Date on which the Class B Invested Amount is paid in full, an amount up to the Collateral Invested Amount distributed to the Collateral Interest Holder	 	    $                                 
        
				
		 		 		 	

 Pursuant to Section 4.07, the Servicer does hereby instruct the Trustee to apply on
                        , which is a Distribution Date under the Supplement, any Excess Spread and
Excess Finance Charge Collections allocated to Series 2019-1 as follows: 
  

							
	A)	 	Pursuant to subsection 4.07(a):	 	
			
		 	Class A Required Amount applied in the priority set forth in subsections 4.05(a)(i), (ii) and (iii)	 	    $                                 
        

  
 B-3 

							
			
	B)	 	Pursuant to subsection 4.07(b):	 	
			
		 	Aggregate amount of Class A Investor Charge-Offs not previously reimbursed allocated to Available Principal Collections	 	    $                                 
        
			
	C)	 	Pursuant to subsection 4.07(c):	 	
			
		 	Interest accrued on aggregate outstanding principal balance of the Class B Certificates not otherwise distributed to Class B Certificateholders pursuant to Section 4.05(b)(i)	 	    $                                 
        
			
	D)	 	Pursuant to subsection 4.07(d):	 	
			
		 	Class B Required Amount applied in the priority set forth in subsections 4.05(b)(i) and (ii)	 	    $                                 
        
			
	E)	 	Pursuant to subsection 4.07(d):	 	
			
		 	Amount (up to the Class B Investor Default) to be applied as Available Principal Collections	 	    $                                 
        
			
	F)	 	Pursuant to subsection 4.07(e):	 	
			
		 	The amount by which the Class B Invested Amount has been reduced pursuant to clauses (c), (d) and (e) of the definition thereof allocated to Available Principal Collections	 	    $                                 
        
			
	G)	 	Pursuant to subsection 4.07(f):	 	
				
		 	(1)	 	Collateral Senior Minimum Monthly Interest	 	    $                                 
        
				
		 	(2)	 	Collateral Senior Minimum Monthly Interest previously due but not paid	 	    $                                 
        
				
		 	(3)	 	Collateral Senior Additional Interest and any Collateral Senior Additional Interest previously due and not paid	 	    $                                 
        
			
	H)	 	Pursuant to subsection 4.07(g):	 	
			
		 	Monthly Servicing Fee for such Distribution Date that has not been paid to the Servicer and any Monthly Servicing Fee previously due but not paid to the Servicer	 	    $                                 
        
			
	I)	 	Pursuant to subsection 4.07(h):	 	
			
		 	Collateral Default Amount allocated to Available Principal Collections	 	    $                                 
        

  
 B-4 

							
			
	J)	 	Pursuant to subsection 4.07(i):	 	
			
		 	The amount by which the Collateral Invested Amount has been reduced pursuant to clauses (c), (d) and (e) of the definition thereof allocated to Available Principal Collections	 	    $                            
             
			
	K)	 	Pursuant to subsection 4.07(j):	 	
			
		 	The excess of the Required Reserve Account Amount over the Available Reserve Amount deposited into the Reserve Account	 	    $                            
             
			
	L)	 	Pursuant to subsection 4.07(k):	 	
			
		 	Amount distributed to the Collateral Interest Holder	 	    $                            
             

 Pursuant to Section 4.08, the Servicer does hereby instruct the Trustee to apply
on                 , which is a Distribution Date under the Pooling and Servicing Agreement,
$                     of Reallocated Principal Collections to fund any deficiencies in the Required Amount after applying Class A
Available Funds, Class B Available Funds, Collateral Available Funds, Excess Spread and Excess Finance Charge Collections thereto. 
  

	II.	 INSTRUCTION TO MAKE CERTAIN PAYMENTS 

Pursuant to Section 5.01 of the Series Supplement, the Servicer does hereby instruct the Trustee to pay in accordance
with Section 5.01 from the Interest Funding Account or the Principal Funding Account, as applicable, on                 , which date is
a Payment Date under the Supplement, the following amounts as set forth below: 

							
			
	A)	 	Pursuant to subsection 5.01(a):	 	
			
		 	Interest to be distributed to Class A Certificateholders	 	    $                            
             
			
	B)	 	Pursuant to subsection 5.01(b):	 	
			
		 	On the Expected Final Payment Date or a Special Payment Date, principal to be distributed to the Class A Certificateholders	 	    $                            
             
			
	C)	 	Pursuant to subsection 5.01(c):	 	
			
		 	Interest to be distributed to Class B Certificateholders	 	    $                            
             
			
	D)	 	Pursuant to subsection 5.01(d):	 	
			
		 	On the Expected Final Payment Date or a Special Payment Date, on or after the date Class A Invested Amount is paid in full, principal to be distributed to the Class B Certificateholders	 	    $                            
             

  
 B-5 

							
			
	E)	 	Pursuant to subsection 5.01(e):	 	
			
		 	Aggregate amount to be distributed to the Collateral Interest Holder	 	    $                            
             

  

	III.	 ACCRUED AND UNPAID AMOUNTS 

After giving effect to the withdrawals and transfers to be made in accordance with this notice, the following amounts will be
accrued and unpaid with respect to all Monthly Periods preceding the current calendar month. 

							
			
	1.	 	Subsection 4.06(a):	 	
			
		 	The aggregate amount of all unreimbursed Class A Investor
Charge-Offs	 	    $                            
             
			
	2.	 	Subsection 4.06(a), (b) and 4.08(a):	 	
			
		 	The aggregate amount by which the Class B Invested Amount has been reduced pursuant to clauses (c), (d) and (e) of the definition thereof	 	    $                            
             
			
	3.	 	Subsection 4.06(a), (b), (c) and 4.08(a), (b) and (c):	 	
			
		 	The aggregate amount by which the Collateral Invested Amount has been reduced pursuant to clauses (c), (d) and (e) of the definition thereof	 	    $                            
             
			
		 		 	

 IN WITNESS WHEREOF, the undersigned has duly executed this Certificate this
                 day of
                ,         . 

 

			
	AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC., as Servicer
		
	By:	 	  

		 	Name:
		 	Title:

  
 B-6 

 EXHIBIT C-1 

FORM OF MONTHLY STATEMENT 

AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST 
  

							
	A. TRUST ACTIVITY	  	 TRUST

TOTALS
	  	 	  	 
	Record Date	  	________	  	 	  	 
	Number of days in Monthly Period	  	________	  	 	  	 
	Beginning Number of Accounts	  	________	  	 	  	 
	Beginning Principal Receivable Balance, including any Additions, Removals, or Adjustments of Principal Receivables during the Monthly Period	  	$________	  	 	  	 
	 a.  Addition of Principal
Receivables
	  	$________	  	 	  	 
	 b. Removal of Principal
Receivables
	  	$________	  	 	  	 
	 c.  Adjustments to Principal
Receivables
	  	$________	  	 	  	 
	Special Funding Account Balance	  	$________	  	 	  	 
	Beginning Total Principal Balance	  	$________	  	 	  	 
	Finance Charge Collections (excluding Recoveries)	  	$________	  	 	  	 
	Collections of Discount Option Receivables	  	$________	  	 	  	 
	Recoveries	  	$________	  	 	  	 
	Total Collections of Finance Charge Receivables	  	$________	  	 	  	 
	Total Collections of Principal Receivables	  	$________	  	 	  	 
	Monthly Payment Rate	  	________%	  	 	  	 
	Defaulted Amount	  	$________	  	 	  	 
	Annualized Default Rate	  	________%	  	 	  	 
	Annualized Default Rate, Net of Recoveries	  	________%	  	 	  	 
	Trust Portfolio Yield	  	________%	  	 	  	 
	New Principal Receivables	  	$________	  	 	  	 
	Ending Number of Accounts	  	________	  	 	  	 
	Ending Principal Receivables Balance	  	$________	  	 	  	 
	Ending Required Minimum Principal Balance	  	$________	  	 	  	 
	Ending Transferor Amount	  	$________	  	 	  	 
	Ending Special Funding Account Balance	  	$________	  	 	  	 
	Ending Total Principal Balance	  	$________	  	 	  	 
	Ending Total Receivables	  	$________	  	 	  	 

  
 C-1-1 

																			
	 B. SERIES
ALLOCATIONS

	 
	  	 	 Invested  

Amount
	 	 Adjusted  

Invested
 Amount
	 	 Principal  

Funding
 Account

Balance
	 	 Series

Required
 Transferor  

Amount
	 	 Series

Allocation
 Percentage  
	 	 Series

Allocable
 Finance

Charge
 Collections  
	 	 Series

Allocable
 Recoveries  
	 	 Series

Allocable
 Principal

Collections  
	 	 Series

Allocable  
 Defaulted

Amount

	 Group ___
	 	$______	 	$______	 	$______	 	$______	 	______%	 	$______	 	$______	 	$______	 	$______
	 Other
	 	$______	 	$______	 	$______	 	$______	 	______%	 	$______	 	$______	 	$______	 	$______
	 Total
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Trust
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

  

																					
	 C. GROUP
ALLOCATIONS

	  	 	 Invested  

Amount
	 	 Investor

Finance
 Charge

Collections  
	 	 Investor

Monthly  
 Interest
	 	 Investor

Default  
 Amount
	 	 Investor

Monthly  
 Fees
	 	 Investor

Additional  
 Amounts
	 	Total      	 	 Reallocated  

Investor
 Finance

Charge
 Collections
	 	 Investment  

Funding
 Account

Proceeds
	 	
Available  
 Excess

	 Group ___
	 	 $_____
	 	 $_______
	 	 $______
	 	 $_____
	 	 $______
	 	 $______
	 	 $____
	 	 $_______
	 	 $_______
	 	 $_______

	 Total
	 	 $_____
	 	 $_______
	 	 $______
	 	 $_____
	 	 $______
	 	 $______
	 	 $____
	 	 $_______
	 	 $_______
	 	 $_______

	 Trust Total
	 	 $_____
	 	 $_______
	 	 $______
	 	 $_____
	 	 $______
	 	 $______
	 	 $____
	 	 $_______
	 	 $_______
	 	 $_______

	 	 	 	 	 
	 	 	Group Investor Finance Charge Collections	 	Group Expenses	 	Group Reallocable Investor Finance Charge Collections
	 Group
___
	 	 	 	 $______
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

  

													
	 D. TRUST
PERFORMANCE

	Delinquencies  	 	 	 	Dollar Amount  	 	 Percentage of

Ending Total
 Receivables
	 	 Number of

Accounts
	 	
Percentage of
 Total Number

of Accounts

	 	 	
31-60 Days Delinquent
  
	 	$_________	 	_________%	 	_________	 	_________%
	 	 	
61-90 Days Delinquent
  
	 	$_________	 	_________%	 	_________	 	_________%
	 	 	
91-120 Days Delinquent
  
	 	$_________	 	_________%	 	_________	 	_________%
	 	 	 120+ Days Delinquent

 
	 	$_________	 	_________%	 	_________	 	_________%
	 	 	 Total 30+ Days

Delinquent
	 	$_________	 	_________%	 	_________	 	_________%
	 	 	 	 	 	 	 	 	 	 	 
	Loss Experience:
	 	 	Ending Principal Receivables Balance	 	 	 	__________
	 	 	Defaulted Amount	 	 	 	__________
	 	 	Recoveries	 	 	 	__________
	 	 	Net Default Amount	 	 	 	__________
	 	 	Annualized Default Rate	 	 	 	
_________%

  
 C-1-2 

					
	 	  	Annualized Recovery Rate	  	            _________%  

	 	  	Annualized Default Rate, Net of Recoveries	  	_________%  
	 	  	Number of Accounts Experiencing a Loss	  	_________      
	 	  	Number of Accounts Experiencing a Recovery	  	_________      
	 	  	Average Net Default Amount per Account Experiencing a Loss	  	_________      
	    
	E. REPURCHASES AND REPLACEMENTS
	Information required by Rule 15Ga-1(a) concerning the Trust:
	 [No activity to report for reporting
period.]

	Most recent Form ABS-15G:
	 Form
ABS-15G filed on _______ under CIK number _______

	    
	F. ASSET REVIEW
	Information required by Item 1121(d)(1) of Regulation AB concerning the Trust:
	 [No activity to report for reporting
period.]

	Information required by Item 1121(d)(2) of Regulation AB concerning the Trust:
	 [There has been no change to the
Asset Representation Reviewer during the reporting period.]

	    
	G. INVESTOR COMMUNICATION
	Information required by Item 1121(e) of Regulation AB concerning the Trust:
	 [No activity to report for reporting
period.]
 [On [_________], 20[__], [______] received a request from [______] expressing an interest in communicating with other
investors with regard to the possible exercise of rights under [TRANSACTION AGREEMENT]. The requesting investor may be contacted at:
 [ADDRESS]

[PHONE NUMBER]

[EMAIL]]

					
	H. CREDIT RISK RETENTION  	  	 As of the last day of Monthly

Period  
	  	As of the last day of Prior Monthly Period  
	Required Seller’s Interest Amount	  	$________	  	$________
	Seller’s Interest Amount	  	$________	  	 
	Seller’s Interest Percentage	  	________%	  	________%

  
 C-1-3 

									
	 SERIES 2019-1
CERTIFICATES
     

	 A. INVESTOR/

TRANSFEROR
 ALLOCATIONS
	  	 SERIES

ALLOCATIONS 
	  	TOTAL INVESTOR INTEREST	  	 TRANSFERORS’   INTEREST	  	 
	Beginning Invested Amount/Transferor Amount	  	$____________	  	$____________	  	$____________	  	 
	Beginning Adjusted Invested Amount	  	$____________	  	$____________	  	$____________	  	 
	Floating Allocation Percentage	  	_________%	  	_________%	  	_________%	  	 
	Principal Allocation Percentage	  	_________%	  	_________%	  	_________%	  	 
	Collections of Finance Charge Receivables	  	$____________	  	$____________	  	$____________	  	 
	Collections of Principal Receivables	  	$____________	  	$____________	  	$____________	  	 
	Defaulted Amount	  	$____________	  	$____________	  	$____________	  	 
	Ending Invested Amount/Transferor Amount	  	$____________	  	$____________	  	$____________	  	 
	    
	 B. MONTHLY PERIOD FUNDING 

REQUIREMENTS
	  	CLASS A	  	CLASS B	  	COLLATERAL INTEREST	  	TOTAL
	Principal Funding Account Balance	  	$____________	  	$____________	  	$____________	  	$____________
	Investment Proceeds for Monthly Period	  	$____________	  	$____________	  	$____________	  	$____________
	Required Reserve Account Amount	  	$____________	  	$____________	  	$____________	  	$____________
	Reserve Account Opening Balance	  	$____________	  	$____________	  	$____________	  	$____________
	Reserve Account Investment Proceeds retained per
Section 4.12(b)	  	$____________	  	$____________	  	$____________	  	$____________
	Reserve Account Deposit	  	$____________	  	$____________	  	$____________	  	$____________
	Reserve Draw Amount	  	$____________	  	$____________	  	$____________	  	$____________
	Reserve Account Surplus (after giving effect to any principal distributions on the related Distribution Date)	  	$____________	  	$____________	  	$____________	  	$____________
	Reserve Account Closing Balance (after giving effect to any principal distributions and Reserve Account withdrawals on the related Distribution Date)	  	$____________	  	$____________	  	$____________	  	$____________
	LIBOR Determination Date	  	NA	  	NA	  	NA	  	NA

  
 C-1-4 

									
	Coupon _______to ______	  	_________%	  	_________%	  	_________%	  	_________%
	Monthly Interest Due	  	$____________	  	$____________	  	$____________	  	$____________
	Outstanding Monthly Interest Due	  	$____________	  	$____________	  	$____________	  	$____________
	Additional Interest Due	  	$____________	  	$____________	  	$____________	  	$____________
	Total Interest Due	  	$____________	  	$____________	  	$____________	  	$____________
	Investor Default Amount	  	$____________	  	$____________	  	$____________	  	$____________
	Investor Monthly Fees Due	  	$____________	  	$____________	  	$____________	  	$____________
	Investor Additional Amounts Due	  	$____________	  	$____________	  	$____________	  	$____________
	Total Due	  	$____________	  	$____________	  	$____________	  	$____________
	 	  	 	  	 	  	 	  	 
	Reallocated Investor Finance Charge Collections	  	 	  	 	  	 	  	$____________
	Interest and Principal Funding Investment Proceeds	  	 	  	 	  	 	  	$____________
	Interest on Reserve Account	  	 	  	 	  	 	  	$____________
	Series Adjusted Portfolio Yield	  	 	  	 	  	 	  	_________%
	Base Rate	  	 	  	 	  	 	  	_________%
	Excess Spread Percentage	  	 	  	 	  	 	  	_________%
	    
	 C. CERTIFICATES –

BALANCES AND
 DISTRIBUTIONS
	  	CLASS A	  	CLASS B	  	 COLLATERAL   INTEREST	  	TOTAL
	Beginning Certificates Balance	  	$____________	  	$____________	  	$____________	  	$____________
	Distributions of Interest	  	$____________	  	$____________	  	$____________	  	$____________
	Deposits to the Principal Funding Account	  	$____________	  	$____________	  	$____________	  	$____________
	Distributions of Principal	  	$____________	  	$____________	  	$____________	  	$____________
	Total Distributions	  	$____________	  	$____________	  	$____________	  	$____________
	Ending Certificates Balance	  	$____________	  	$____________	  	$____________	  	$____________

  
 C-1-5 

 
							
			
	D)	 	Information regarding distributions on the Distribution Date in respect of the Class A Certificates per $1,000 original certificate principal amount.	 	
				
		 	(1)	 	The total amount of the distribution:	 	    $                                 
        
				
		 	(2)	 	The amount of the distribution in respect of Class A Monthly Interest:	 	    $                                 
        
				
		 	(3)	 	The amount of the distribution in respect of Class A Outstanding Monthly Interest:	 	    $                                 
        
				
		 	(4)	 	The amount of the distribution in respect of Class A Additional Interest:	 	    $                                 
        
				
		 	(5)	 	The amount of the distribution in respect of principal of the Class A Certificates:	 	    $                                 
        
			
	E)	 	Class A Investor Charge-Offs and Reimbursement of Class A Investor Charge-Offs.	 	
				
		 	(1)	 	The total amount of Class A Investor Charge-Offs:	 	    $                                 
        
				
		 	(2)	 	The amount of Class A Investor Charge-Offs per $1,000 original certificate principal amount:	 	    $                                 
        
				
		 	(3)	 	The total amount reimbursed in respect of Class A Investor Charge-Offs:	 	    $                                 
        
				
		 	(4)	 	The amount reimbursed in respect of Class A Investor Charge-Offs per $1,000 original certificate principal amount:	 	    $                                 
        
				
		 	(5)	 	The amount, if any, by which the outstanding principal balance of the Class A Certificates exceeds the Class A Invested Amount after giving effect to all transactions on such Distribution Date:	 	    $                                 
        
			
	F)	 	Information regarding distributions in respect of the Class B Certificates, per $1,000 original certificate principal amount.	 	
				
		 	(1)	 	The total amount of the distribution in respect of Class B Certificates:	 	    $                                 
        
				
		 	(2)	 	The amount of the distribution in respect of Class B Monthly Interest:	 	    $                                 
        

  
 C-1-6 

 
							
				
		 	(3)	 	The amount of the distribution in respect of Class B Outstanding Monthly Interest:	 	    $                                 
        
				
		 	(4)	 	The amount of the distribution in respect of Class B Additional Interest:	 	    $                                 
        
				
		 	(5)	 	The amount of the distribution in respect of principal of the Class B Certificates:	 	    $                                 
        
			
	G)	 	Amount of reductions in Class B Invested Amount pursuant to clauses (c), (d), and (e) of the definition of Class B Invested Amount on such Distribution Date.	 	
				
		 	(1)	 	The amount of reductions in Class B Invested Amount pursuant to clauses (c), (d) and (e) of the definition of Class B Invested Amount:	 	    $                                 
        
				
		 	(2)	 	The amount of the reductions in the Class B Invested Amount per $1,000 original certificate principal amount:	 	    $                                 
        
				
		 	(3)	 	The total amount reimbursed in respect of such reductions in the Class B Invested Amount:	 	    $                                 
        
				
		 	(4)	 	The amount reimbursed in respect of such reductions in the Class B Invested Amount, per $1,000 original certificate principal amount:	 	    $                                 
        
				
		 	(5)	 	The amount, if any, by which the outstanding principal balance of the Class B Certificates exceeds the Class B Invested Amount after giving effect to all transactions on such Distribution Date:	 	    $                                 
        
			
	H)	 	Information regarding distributions on the Distribution Date to the Collateral Interest Holder.	 	
				
		 	(1)	 	The total amount distributed to the Collateral Interest Holder:	 	    $                                 
        
				
		 	(2)	 	The amount of the distribution in respect of Collateral Senior Minimum Monthly Interest:	 	    $                                 
        
				
		 	(3)	 	The amount of the distribution in respect of Collateral Senior Additional Interest:	 	    $                                 
        
				
		 	(4)	 	The amount distributed to the Collateral Interest Holder in respect of principal on the Collateral Invested Amount:	 	    $                                 
        

  
 C-1-7 

							
				
		 	(5)	 	The amount of the distribution to the Collateral Interest Holder in respect of remaining Excess Spread:	 	    $                                 
        
			
	I)	 	Amount of reductions in Collateral Invested Amount pursuant to clauses (c), (d), and (e) of the definition of Collateral Invested Amount.	 	
				
		 	(1)	 	The amount of reductions in the Collateral Invested Amount pursuant to clauses (c), (d) and (e) of the definition of Collateral Invested Amount:	 	    $                                 
        
				
		 	(2)	 	The total amount reimbursed in respect of such reductions in the Collateral Invested Amount:	 	    $                                 
        

  
 C-1-8 

							
	J. APPLICATION OF REALLOCATED INVESTOR FINANCE CHARGE COLLECTIONS
	1. CLASS A AVAILABLE FUNDS	 	 	  	$____________	 	 
	
a.  Class A Monthly Interest

b. Class A Outstanding Monthly Interest

c.  Class A Additional Interest

d. Class A Investor Default Amount (treated as Available Principal Collections)

e.  Excess Spread
	  	$____________	 	 
	  	$____________      	 	  
	  	$____________	 	  
	  	$____________	 	  
	  	$____________	 	  
	  	$____________	 	  
	2. CLASS B AVAILABLE FUNDS	 	 	  	$____________	 	 
	
a.  Class B Monthly Interest

b. Class B Outstanding Monthly Interest

c.  Class B Additional Interest

d. Excess Spread
	  	$____________	 	 
	  	$____________	 	  
	  	$____________	 	  
	  	$____________	 	  
	3. COLLATERAL AVAILABLE FUNDS	 	 	  	$____________	 	 
	 a.  Excess
Spread
	  	$____________	 	 
	4. TOTAL EXCESS SPREAD	  	$____________	 	 
	    
	K. REALLOCATED PRINCIPAL COLLECTIONS
	 1. Principal Allocation
Percentage
	 	 	  	________%	 	 
	 2. Series
2019-1 Allocable Principal Collections
	 	 	  	$____________	 	 
	 3. Principal Allocation Percentage of
Series 2019-1 Allocable Principal Collections
	 	 	  	$____________	 	 
	 4. Reallocated Principal Collections
Required to fund the Required Amount
	 	 	  	$____________	 	 
	 5. Item 3 minus Item 4
	 	 	  	$____________	 	 
	 6. Shared Principal Collections from
other Series allocated to Series 2019-1
	 	 	  	$____________	 	 
	 7. Other amounts treated as Available
Principal Collections
	 	 	  	$____________	 	 
	 8. Available Principal Collections (total
of items 5, 6 and 7)
	 	 	  	$____________	 	 
	    
	L. APPLICATION OF AVAILABLE PRINCIPAL COLLECTIONS DURING REVOLVING PERIOD
	 1. Collateral Invested Amount
	 	 	  	$____________	 	 
	 2. Required Collateral Invested
Amount
	 	 	  	$____________	 	 
	 3. Excess of Collateral Invested Amount
over Required Collateral Invested Amount
	 	 	  	$____________	 	 
	 4. Treated as Shared Principal
Collections
	 	 	  	$____________	 	 
	    
	M. APPLICATION OF PRINCIPAL COLLECTIONS DURING ACCUMULATION OR AMORTIZATION PERIOD
	 1. Principal Funding Account
	 	 	  	$____________	 	 
	 2. Excess of Collateral Invested Amount
over Required Collateral Invested Amount
	 	 	  	$____________	 	 
	 3. Distribution of Principal
	 	 	  	$____________	 	 

  
 C-1-9 

											
	4. Treated as Shared Principal Collections	  	 	  	 	  	$____________	  	 
	    
	N. APPLICATION OF EXCESS SPREAD AND EXCESS FINANCE CHARGE COLLECTIONS ALLOCATED TO SERIES
2019-1
	
1.  Excess Spread
	  	 	  	 	  	$____________	  	 
	
2.  Excess Finance Charge Collections
	  	 	  	 	  	$____________	  	 
	
3.  Applied to fund Class A Required Amount
	  	 	  	 	  	$____________	  	 
	
4.  Class A Investor Charge-Offs treated as Available Principal Collections
	  	 	  	 	  	$____________	  	 
	
5.  Applied to fund overdue Class B Interest
	  	 	  	 	  	$____________	  	 
	
6.  Applied to fund Class B Required Amount
	  	 	  	 	  	$____________	  	 
	
7.  Reduction of Class B Invested Amount treated as Available Principal Collections
	  	 	  	 	  	$____________	  	 
	
8.  Applied to Collateral Senior Minimum Monthly Interest
	  	 	  	 	  	$____________	  	 
	
9.  Applied to unpaid Monthly Servicing Fee
	  	 	  	 	  	$____________	  	 
	
10. Collateral Default Amount treated as Available Principal Collections
	  	 	  	 	  	$____________	  	 
	
11. Reduction of Collateral Invested Amount treated as Available Principal Collections
	  	 	  	 	  	$____________	  	 
	
12. Deposited to Reserve Account
	  	 	  	 	  	$____________	  	 
	
13. Remaining Excess Spread distributed to Collateral Interest Holder(s)
	  	 	  	 	  	$____________      	  	 
	    
	O. YIELD AND BASE RATE
	 1.  Base Rate
	  	 	  	 	  	 	  	 	  	 
	 	  	a. Current Monthly Period	  	 	  	 	  	________%	  	 
	 	  	b. Prior Monthly Period	  	 	  	 	  	________%	  	 
	 	  	c. Second Prior Monthly Period	  	 	  	 	  	________%	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 2.  Three Month Average Base
Rate
	  	 	  	 	  	 	  	________%	  	 
	3. Series Adjusted Portfolio Yield	  	 	  	 	  	 	  	 	  	 
	 	  	a. Current Monthly Period	  	 	  	 	  	________%	  	 
	 	  	b. Prior Monthly Period	  	 	  	 	  	________%	  	 
	 	  	c. Second Prior Monthly Period	  	 	  	 	  	________%	  	 
	4. Three Month average Series Adjusted Portfolio Yield	  	 	  	 	  	 	  	________%	  	 

  
 C-1-10 

									
	5. Is the 3 month average Series Adjusted Portfolio Yield more than the 3 month average Base Rate?	  	 	  	 	  	[Yes/No]	  	 
	     

	P. REASSIGNMENT AMOUNT
	Adjusted Invested Amount	  	 	  	$____________      	  	 
	Monthly Interest	  	 	  	$____________	  	 
	Monthly Interest previously due but not paid	  	 	  	$____________	  	 
	Additional Interest	  	 	  	$____________	  	 
	Additional Interest previously due but not paid	  	 	  	$____________	  	 
	Reassignment Amount	  	 	  	$____________	  	 

  
 C-1-11 

 EXHIBIT C-2 

FORM OF ANNUAL PAYMENT INFORMATION 

AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST 

SERIES 2019-1 

FOR THE YEAR ENDED DECEMBER 31, 20[    ] 

The undersigned, a duly authorized representative of American Express Travel Related Services Company, Inc. (“TRS”),
as Servicer pursuant to the Fourth Amended and Restated Pooling and Servicing Agreement, dated as of April 1, 2018 (as amended and restated and as otherwise amended and supplemented, the “Pooling and Servicing Agreement”), among TRS,
American Express Receivable Financing Corporation III LLC, as transferor (the “Transferor”) and The Bank of New York Mellon, as trustee (the “Trustee”), does hereby certify as follows: 

Capitalized terms used in this Certificate have their respective meanings set forth in the Pooling and Servicing Agreement or
the Series 2019-1 Supplement, dated as of February 14, 2019, among TRS, the Transferor and the Trustee (as amended and supplemented, the “Supplement”), as applicable. 

Pursuant to Section 5.01 of the Series Supplement, the Servicer instructed the Trustee to pay in accordance with
Section 5.01 from the Interest Funding Account or the Principal Funding Account, as applicable, the following aggregate amounts during the year ended December 31, 20[    ]: 

 

							
	A)	 	Pursuant to subsection 5.01(a):	 	
			
		 	Interest distributed to Class A Certificateholders	 	    $                            
             
			
	B)	 	Pursuant to subsection 5.01(b):	 	
			
		 	On the Expected Final Payment Date or a Special Payment Date, if applicable, principal distributed to the Class A Certificateholders	 	    $                            
             
			
	C)	 	Pursuant to subsection 5.01(c):	 	
			
		 	Interest distributed to Class B Certificateholders	 	    $                            
             
			
	D)	 	Pursuant to subsection 5.01(d):	 	
			
		 	On the Expected Final Payment Date or a Special Payment Date, if applicable, on or after the date Class A Invested Amount is paid in full, principal distributed to the Class B Certificateholders	 	    $                            
             
			
	E)	 	Pursuant to subsection 5.01(e):	 	
			
		 	Aggregate amount distributed to the Collateral Interest Holder in respect of interest	 	    $                            
             
			
		 	Aggregate amount distributed to the Collateral Interest Holder in respect of principal	 	    $                            
             

  
 C-2-1 

 IN WITNESS WHEREOF, the undersigned has duly executed this Certificate this
[    ] day of January, 20[    ]. 
  

			
	AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC., as Servicer
		
	By:	 	  

		 	Name:
		 	Title:

  
 C-2-2 

 EXHIBIT D 

FORM OF MONTHLY SERVICER’S CERTIFICATE 

AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC. 

AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST 

The undersigned, a duly authorized representative of American Express Travel Related Services Company, Inc., as Servicer
(“TRS”), pursuant to the Fourth Amended and Restated Pooling and Servicing Agreement, dated as of April 1, 2018 (as amended and restated and as otherwise amended and supplemented, the “Agreement”), as
supplemented by the Series Supplements (as amended and supplemented, the “Series Supplements”), among TRS, as Servicer, American Express Receivables Financing Corporation III LLC, as Transferor, and The Bank of New York Mellon, as
Trustee, does hereby certify as follows: 
 1.    Capitalized terms used in this Certificate have their
respective meanings as set forth in the Agreement or the Series Supplement, as applicable. 
 2.    TRS is, as of the
date hereof, the Servicer under the Agreement. 
 3.    The undersigned is a Servicing Officer. 

4.    This Certificate relates to the Distribution Date occurring on
                
                , 20     and covers activity from
                
                , 20     through
                
                , 20    . 

5.    As of the date hereof, to the best knowledge of the undersigned, the Servicer has performed in all
material respects all its obligations under the Agreement through the Monthly Period preceding such Distribution Date [or, if there has been a default in the performance of any such obligation, set forth in detail the (i) nature of such
default, (ii) the action taken by the Servicer, if any, to remedy such default and (iii) the current status of each such default; if applicable, insert “None”]. 

6.    As of the date hereof, to the best knowledge of the undersigned, no Pay Out Event occurred on or
prior to such Distribution Date. 
 IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Certificate
this      day of                 , 20    . 

 

			
	AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC.,
	as Servicer
		
	By:	 	  

		 	Name:
		 	Title:

  
 D-1 

 EXHIBIT E 

FORM OF INVESTMENT LETTER 
 [Date]

 Re:         American Express Credit Account Master Trust; 

    Purchases of Series 2019-1 Collateral Interest 

Ladies and Gentlemen: 

This letter (the “Investment Letter”) is delivered by the undersigned (the “Purchaser”) pursuant to
Section 9.07 of the Series 2019-1 Supplement, dated as of February 14, 2019 (the “Series Supplement”) to Fourth Amended and Restated Pooling and Servicing Agreement, dated as of
April 1, 2018 (as amended and restated and as otherwise amended and supplemented, the “Agreement”), each among The Bank of New York Mellon, as Trustee, American Express Receivables Financing Corporation III LLC, as Transferor, and
American Express Travel Related Services Company, Inc., as Servicer. Capitalized terms used herein without definition shall have the meanings set forth in the Agreement. The Purchaser represents to and agrees with the Transferor as follows: 

 

	 	(a)	 The Purchaser has such knowledge and experience in financial and business matters as to be capable of
evaluating the merits and risks of its investment in the Collateral Interest and is able to bear the economic risk of such investment. 

  

	 	(b)	 The Purchaser is an “accredited investor,” as defined in Rule 501, promulgated by the Securities
and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended (the “Securities Act”), or is a sophisticated institutional investor. The Purchaser understands that the offering and sale of the Collateral
Interest has not been and will not be registered under the Securities Act and has not and will not be registered or qualified under any applicable “Blue Sky” law, and that the offering and sale of the Collateral Interest has not been
reviewed by, passed on or submitted to any federal or state agency or commission, securities exchange or other regulatory body. 

  

	 	(c)	 The Purchaser is acquiring an interest in the Collateral Interest without a view to any distribution, resale
or other transfer thereof except, with respect to any Collateral Interest or any interest or participation therein, as contemplated in the following sentence. The Purchaser will not resell or otherwise transfer any interest or participation in the
Collateral Interest, except in accordance with Section 9.07 of the Series Supplement and (i) in a transaction exempt from the registration requirements of the Securities Act and applicable state securities or “blue sky” laws;
(ii) to the Transferor or any affiliate of the Transferor; or (iii) to a person who the Purchaser reasonably believes is a qualified institutional buyer (within the meaning thereof in Rule 144A under the Securities Act) that is aware that
the resale or other transfer is being made in reliance upon Rule 144A. In connection therewith, the Purchaser hereby agrees that it will not resell or otherwise transfer the Collateral Interest or any interest therein unless the purchaser thereof
provides to the addressee hereof a letter substantially in the form hereof. 

  

	 	(d)	 No portion of the Collateral Interest or any interest therein may be Transferred, and each Assignee will
certify that it is not, (a) an “employee benefit plan” (as 

  
 E-1 

	 	 
defined in Section 3(3) of ERISA), including governmental plans and church plans, (b) any “plan” (as defined in Section 4975(e)(1) of the Code) including individual
retirement accounts and Keogh plans, or (c) any other entity whose underlying assets include “plan assets” (within the meaning of U.S. Department of Labor Regulation Section 2510.3-101, 29
C.F.R. § 2510.3-101 or otherwise under ERISA) by reason of a plan’s investment in the entity, including, without limitation, an insurance company general account. 

 

	 	(e)	 This Investment Letter has been duly executed and delivered and constitutes the legal, valid and binding
obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable principles affecting the
enforcement of creditors’ rights generally and general principles of equity. 

  

			
	Very truly yours,
	
	 [NAME OF PURCHASER]

		
	By:  	 	
                     
        

		 	Name:
		 	Title:

  

			
	 AGREED TO AS OF THE DATE FIRST ABOVE

WRITTEN:

	
	 AMERICAN EXPRESS RECEIVABLES

FINANCING CORPORATION III LLC,
 as
Transferor

			
		
	By:	 	  

		 	Name:
		 	Title:

  
 E-2

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