Document:

Exhibit

EXHIBIT 10.1

AMENDMENT NO. EIGHT
TO 
AMENDED AND RESTATED 
PRIVATE LABEL CREDIT CARD PLAN AGREEMENT
BETWEEN COMENITY BANK
AND
STAGE STORES, INC.
SPECIALTY RETAILERS, INC. 

THIS AMENDMENT NO. EIGHT (“Amendment No. 8”) to that certain AMENDED and RESTATED PRIVATE LABEL CREDIT CARD PLAN AGREEMENT entered into as of the 8th day of August, 2012 and effective as of the 1st day of August 2012 (“Agreement”) among Stage Stores, Inc. (“SSI”) and Specialty Retailers, Inc. (“SRI”) (with SSI and SRI hereinafter collectively referred to as “Stage”) and Comenity Bank (formerly known as World Financial Network Bank) (“Bank”), is entered into by and between Bank and SSI on the _11th__ of April, 2019 (the “Amendment No. 8 Effective Date”).  

WHEREAS, Stage and Bank previously entered into the Agreement pursuant to which, among other things, Stage requested Bank to, and Bank agreed to, extend credit to qualifying individuals in the form of private label open-ended credit card accounts for the purchase of Goods and/or Services from Stage through designated Sales Channels and to issue Credit Cards to qualifying individuals under the Stage Nameplates.

WHEREAS, SRI, the wholly owned operating subsidiary of SSI and currently the employer of all Stage employees, signed the Agreement solely for purposes of Section 13.1(a) of the Agreement, thereby agreeing that the Amended and Restated Private Label Credit Card Program Agreement dated March 5, 2004 by and among SSI, SRI and Bank was terminated in its entirety upon the full execution of the Agreement and thereby terminating SRI’s status as a separate party to the Agreement effective August 1, 2012.

WHEREAS, SSI and Bank entered into Amendment No. One to the Agreement effective as of February 1, 2013, Amendment No. Two to the Agreement effective as of February 13, 2014 (no longer in effect), Amendment No. Three to the Agreement effective as of May 4, 2014 (no longer in effect), Amendment No. Four to the Agreement effective as of March 28, 2016, Amendment No. Five to the Agreement effective as of August 11, 2017 (the “Gordmans Amendment”), Amendment No. 6 to the Agreement effective as of December 12, 2017 and Amendment No. 7 to the Agreement effective as of December 22, 2017.

WHEREAS, SSI and Bank now desire to amend the Agreement as set forth herein.

NOW, THEREFORE, in consideration of the terms and conditions hereof, and for other good and valuable consideration, the receipt of which is hereby mutually acknowledged by the parties, SSI and Bank agree as follows:

		
	1.
	Definitions; References.  Capitalized terms not otherwise defined in this Amendment No. 8 are used herein as defined in the Agreement.  

		
	2.
	Measurement Periods and Plan Economics.  Schedule 1.3(e) of the Agreement is hereby deleted and replaced in its entirety with Exhibit A hereto and Schedule 6.1 of the Agreement is hereby deleted and replaced in its entirety with Exhibit B hereto.  Sections 2(a) and 2(b) of Amendment No. One are deleted in their entirety and replaced by language included in the updated Schedule 6.1 of the Agreement, which is attached hereto as Exhibit B.  Section 13 of the Gordmans Amendment is deleted in its entirety.

ACTIVE 241371473

		
	3.
	Section 12.1 - Term and Expiration.  Section 16 of the Gordmans Amendment is hereby deleted in its entirety; provided, however that the parties acknowledge and agree that the Option Grant Bonus described therein has been paid by Bank to Stage and shall not be refunded by Stage for any reason. Section 12.1 of the Agreement, as amended, is hereby deleted in its entirety and replaced with the following:

“12.1 Term and Expiration.  Upon execution by authorized representatives of both parties, and unless terminated as provided herein, this Agreement shall become effective as of the Effective Date and remain in effect until July 31, 2024 (“Initial Term”).  This Agreement shall automatically renew for successive two (2)-year terms (each a “Renewal Term”) thereafter, unless either party provides the other with at least twelve (12) months’ written notice of its intention not to renew this Agreement beyond the expiration of the Initial Term or then-current Renewal Term.”

		
	4.
	Amendment No. 8 Signing Bonus. In consideration for extending the Agreement from July 31st, 2021 to July 31st, 2024, within three (3) Business Days of the full execution of this Amendment No. 8, Bank shall pay to Stage an amount equal to [****], which shall be referred to herein as the “Amendment No. 8 Signing Bonus”.  Bank shall pay the Amendment No. 8 Signing Bonus as set forth in 6.2 of the Agreement.  If Stage properly terminates the Agreement pursuant to any express right of termination provided hereunder, Stage will not be obligated to repay any amount of the Amendment No. 8 Signing Bonus.  If Bank properly terminates the Agreement between August 1, 2021 and July 31, 2024 (such period shall be referred to herein as the “Amendment No. 8 Extension Period”) pursuant to any express right of termination provided in the Agreement, Stage will be obligated to repay an amount calculated as follows:  (A) [****] multiplied by (B) the quotient obtained by dividing the number of complete months remaining in the Amendment No. 8 Extension Period from the termination’s effective date by thirty-six (36).  If Bank properly terminates the Agreement prior to the Amendment No. 8 Extension Period, Stage will be obligated to repay the Amendment No. 8 signing Bonus in full.  For clarity, the parties acknowledge and agree that the Signing Bonus defined in Section C of Schedule 6.1, including as amended by Exhibit B hereto, has been paid in full by Bank.

		
	5.
	Credit Card Reissue.  The parties hereby agree that clause (iv) of paragraph 3 of Schedule 2.4(c) of the Agreement is amended in its entirety as follows:

 (iv) fourth, during [****] or as soon as commercially practicable thereafter, but in any event prior to [****].  Such re-issuance shall include substantially all Cardholders who have made a Purchase using an Account during the eighteen (18) month period immediately prior to the re-issuance (excluding a control population of such Cardholders). Bank will also test re-issuance to Cardholders who have not made a Purchase using an Account during the eighteen (18) month period immediately prior to the re-issuance but who have made a Purchase using an Account during the six (6) month period beginning eighteen (18) months immediately prior to the re-issuance and ending twenty-four (24) months immediately prior to the re-issuance.  Bank represents and warrants to Stage that the reissuance contemplated by this Section is permitted by Applicable Law and Bank’s Corporate Reissuance Policy. Should any such re-issuance of the Credit Card plastics not comply with Applicable Law or Bank's Corporate Reissuance Policy, in lieu of the reissuance Bank shall, promptly following such determination, pay to Stage an amount equal [****] and Stage shall use such funds, in its sole reasonable discretion, to fund credit marketing program(s.) 

		
	6.
	Counterparts; Effectiveness.  This Amendment No. 8 may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original, but all of such counterparts shall together constitute one and the same instrument.  

		
	7.
	General.  This Amendment No. 8 shall not be changed, modified or amended except in writing and signed by both of the parties hereto.  Except as specifically amended in this Amendment No. 8, 

ACTIVE 241371473                        2

the provisions of the Agreement, as amended, remain unaffected and in full force and effect.  The provisions of this Amendment No. 8 shall prevail in the event of any conflict between the provisions hereof and the provisions of the Agreement.

ACTIVE 241371473                        3

IN WITNESS WHEREOF, SSI and Bank have executed this Amendment No. 8 in manner and form sufficient to bind them on the Amendment No. 8 Effective Date.

                            
	
						
	STAGE STORES, INC.
	 
	COMENITY BANK (formerly known as WORLD FINANCIAL NETWORK BANK)

	 
	 
	 

	 
	 
	 
	 
	 
	 

	By:
	/s/ Jason Curtis
	 
	By:
	/s/ John Marion
	 

	 
	 
	 
	 
	 
	 

	Jason Curtis
	 
	John Marion
	 

	Printed Name
	 
	Printed Name
	 

	 
	 
	 
	 
	 
	 

	EVP, CFO
	 
	President
	 

	Title
	 
	Title
	 

ACTIVE 241371473                        4

Exhibit A to Amendment No. 8

Schedule Error! Reference source not found.
Measurement Period Summary

	
															
	 
	 
	MP1
	MP2
	MP3
	MP4
	MP5
	MP6
	MP7
	MP8
	MP9
	MP10
	MP11
	MP12
	MP13

	Measurement
Period (MP)
	 
	8/1/12 
through 12/31/12
	2013
	2014
	2015
	2016
	2017
	2018
	2019
	2020
	2021
	2022
	2023
	1/1/2024
through 7/31/24

	$/Account Mailed (OPEX)
(Schedule Error! Reference source not found.)
	 
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]

	Paperless Statement Target (Schedule Error! Reference source not found.)
	 
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]

	Target Penetration Rate
(Schedule Error! Reference source not found.)
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]

	Apps/Store Target Average
(Schedule Error! Reference source not found.)
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]
	[****]

ACTIVE 241371473                        5

Exhibit B to Amendment No. 8

Schedule Error! Reference source not found.
Plan Economics
		
	A.
	Discount Fees on Regular Revolving Purchases

On Regular Revolving Purchases, Stage shall [****].
		
	B.
	Discount Fees on Promotional Program Purchases

If and when the parties agree to the terms of any Promotional Program, such terms may include a Discount Fee (which may be no discount) that may be charged on Net Sales on Promotional Program Purchases as agreed by the parties.
For purposes of Sections A and B of this Schedule Error! Reference source not found.:  the term “Discount Fee” (if/when applicable) shall mean an amount to be charged or credited by Bank to Stage equal to the applicable Net Sales associated with agreed transaction types multiplied by the Discount Rate, and the term “Discount Rate” shall mean the rate agreed by the parties by which the Net Sales associated with agreed transaction types settled to Stage shall be discounted.
		
	C.
	Signing Bonus

Within three (3) Business Days of the full execution of this Agreement, Bank shall pay to Stage an amount equal to [****], which shall be referred to herein as the “Signing Bonus”. 
If Stage properly terminates this Agreement pursuant to any express right of termination provided hereunder, Stage will not be obligated to repay any amount of the Signing Bonus. 
If Bank properly terminates this Agreement before July 31, 2021 pursuant to any express right of termination provided hereunder, Stage will be obligated to repay an amount calculated as follows:  (1) the sum of all payments due under Section F of this Schedule Error! Reference source not found. that have not yet been paid to Bank in accordance with the terms thereof plus [****] shall be (2) multiplied by the quotient obtained by dividing the number of complete months remaining until July 31, 2021 from the termination’s effective date by one hundred eight (108). For clarity, the parties acknowledge and agree that the Signing Bonus defined in Section C of Schedule 6.1, including as amended by Exhibit B hereto, has been paid in full by Bank.
		
	D.
	Monthly Net Portfolio Yield Payment

On a monthly basis, within ten (10) days after the end of each calendar month, Bank shall pay to Stage a “Monthly Net Portfolio Yield Payment”, which is an amount equal to [****] of the Monthly Net Portfolio Yield for the just concluded month.  By way of example, a sample calculation of the Monthly Net Portfolio Yield Payment is attached hereto as Attachment A to this Schedule Error! Reference source not found..  The “Monthly Net Portfolio Yield” will be calculated as follows.
		
	•
	A = Plan revenue assessed after waivers and adjustments  (versus collected, for clarity) during the subject month, comprised of:  finance charges + late fees + all other Cardholder Fees + all Ancillary Income;

		
	•
	B = Plan write-offs, net of all recoveries during the subject month (write-offs will be defined as total receivable write-offs, not principal write-offs); and

		
	•
	C = operating expenses:  Billing Statements issued through any medium multiplied by the Operating Expense Amount.  For Measurement Periods 1-3 (as defined in Schedule Error! Reference source not found.), the “Operating Expense Amount” charged per billing statement will be [****].  For each Measurement Period thereafter, the “Operating Expense Amount” shall be equal to the Operating Expense Amount for the immediately preceding Measurement Period adjusted based on the CPI as of the last day of the immediately preceding Measurement Period; subject to the adjustment described below.  For Measurement Periods 3-12, there will be a predetermined “Paperless Statement Target,” which shall be measured as the figure equal to the total of all Billing Statements presented electronically during a period as a percentage of all Billing Statements presented during the same period.  Beginning in Measurement Period 4, if in the prior Measurement Period the applicable Paperless Statement Target (defined on Schedule Error! Reference source not found.) was met, the Operating Expense Amount will be adjusted by only [****] of the CPI corresponding to the preceding Measurement Period, if there was a positive increase in the applicable CPI.  By way of clarification, the adjustment will be [****] of CPI in the event that the applicable Paperless Payment Target was not met.  In the event the applicable CPI is negative in any period, the cost per Billing Statement in the next Measurement Period will be reduced the full amount of the decline in CPI.

		
	•
	Monthly Net Portfolio Yield = (A - B- C)

		
	•
	For avoidance of doubt, under no circumstance will the Monthly Net Portfolio Yield calculation result in Stage making a payment to Bank.

		
	•
	The term “Ancillary Income” shall mean (i)(A) all amounts charged to a Cardholder with respect to the use of an Account or Card for Protection Programs and Bank Enhancement Marketing Services minus (B) only with respect to Protection Programs and Bank Enhancement Marketing Services offered indirectly by Bank through a third-party vendor, amounts retained by the third-party vendor and/or paid to the third-party vendor by Bank; plus (B) all amounts collected by Bank from third-parties (other than Cardholders) with regard to Bank Enhancement Marketing Services.  Ancillary Income excludes amounts charged to a Cardholder for Purchases, amounts charged to a Cardholder for Stage Recurring Billing Programs, and any Cardholder Fees.  For clarity, the Protection Programs identified on Schedule 3.11(a) of the Agreement are Protection Programs offered directly by Bank and not through a third-party vendor and accordingly, the Ancillary Income from such Protection Programs shall be calculated under subclause (i) (A) of the definition of Ancillary Income without reduction pursuant to subclause (i) (B) of the definition of Ancillary Income.

		
	•
	As of the Amendment No. 1 Effective Date, the term “Cardholder Fees” shall mean all fees and charges assessed by Bank to a Cardholder with respect to an Account or a Credit Card other than those charged for Protection Programs, Bank Enhancement Marketing Services, and pay-by-phone fees.  Thus, by way of example, Cardholder Fees includes late fees, NSF fees, document fees and internet payment fees.  For clarity, Cardholder Fees does not include amounts charged to a Cardholder for Purchases or amounts charged to Cardholder for Stage Recurring Billing Programs. By way of clarity, other than pay-by-phone fees, those fees and charges assessed by Bank to Cardholders are not excluded from the definition of Cardholder Fees or Ancillary Income because, for internal accounting purposes, Bank accounts for them as off-sets to expenses. 

		
	•
	For purposes of this Schedule Error! Reference source not found., the term “CPI” shall mean, the annual year-end core Consumer Price Index (excluding food and energy) for the United States as published by the U.S. Bureau of Labor Statistics.

Note:  Payments will be initiated by ACH and Monthly Net Portfolio Yield Payments will take effect as of signing Amendment No. 8.  Further, to the extent that any Wind-down Period extends beyond July 31, 2024, Measurement Period 13 shall be extended until the termination or expiration of the Wind-down Period for purposes of calculating the Monthly Net Portfolio Yield Payments during such Wind-down Period.

Cost per statement:
		
	•
	Measurement Period 1: [****]

		
	•
	Measurement Period 2: [****]

		
	•
	Measurement Period 3: [****]

		
	•
	Measurement Period 4: [****] * CPI adjustor based on MP 3 ending paperless rate

		
	•
	Measurement Period 5:  cost per statement for MP 4 * CPI adjustor based on MP 4 ending paperless rate

		
	•
	Measurement Period 6:  cost per statement for MP 5 * CPI adjustor based on MP 5 ending paperless rate

		
	•
	Measurement Period 7:  cost per statement for MP 6 * CPI adjustor based on MP 6 ending paperless rate

		
	•
	Measurement Period 8:  cost per statement for MP 7 * CPI adjustor based on MP 7 ending paperless rate

		
	•
	Measurement Period 9:  cost per statement for MP 8 * CPI adjustor based on MP 8 ending paperless rate

		
	•
	Measurement Period 10:  cost per statement for MP 9 * CPI adjustor based on MP 9 ending paperless rate

		
	•
	Measurement Period 11:  cost per statement for MP 10 * CPI adjustor based on MP 10 ending paperless rate

		
	•
	Measurement Period 12:  cost per statement for MP 11 * CPI adjustor based on MP 11 ending paperless rate

		
	•
	Measurement Period 13:  cost per statement for MP 12 * CPI adjustor based on MP 12 ending paperless rate

		
	E.
	Annual Portfolio Performance Bonus

Stage shall earn an “Annual Portfolio Performance Bonus” in respect of each Measurement Period in accordance with the provisions of this Section E.  Bank shall pay each such Annual Portfolio Performance Bonus via ACH (i) with respect to the first Measurement Period within the first six (6) months following the end of such Measurement Period; and (ii) with respect to each Measurement Period thereafter, within ten (10) days of the end of each such Measurement Period.  For avoidance of doubt, the parties agree that each Annual Portfolio Performance Bonus shall be fully accrued as of the last day of the respective Measurement Period.  By way of example, sample calculations of the Annual Portfolio Performance Bonus for a stub year and a full year are attached hereto as Attachment B to this Schedule Error! Reference source not found..  The Annual Portfolio Performance Bonus shall be calculated based on the following formula and stated as a percentage of Average Annual Accounts Receivable for the period being measured:
“Adjusted Net Yield” shall mean:
[****] of the sum of each Monthly Net Portfolio Yield for each month during the Measurement Period minus [****] of the Average Annual Accounts Receivable for the Annual Portfolio Performance Plan Year minus [****].
For any calendar year in which the Adjusted Net Yield is greater than [****] of the Average Annual Accounts Receivable for the Measurement Period, Bank shall pay to Stage an amount equal to [****] of the difference of the Adjusted Net Yield minus [****] of the Average Annual Accounts Receivable for the Measurement Period.  During any stub year (less than twelve (12) months), the calculation of the Annual Portfolio Performance Bonus shall be pro rated as indicated on the sample calculation on Attachment B to this Schedule Error! Reference source not found..  
For purposes of this calculation, the term “Average Annual Accounts Receivable” shall mean the sum of the end-of-month Accounts Receivable for each of month during a Measurement Period divided by the number of months in such Measurement Period.
For avoidance of doubt, under no circumstance will the Annual Portfolio Performance Bonus result in Stage making a payment to Bank.

		
	F.
	Implementation

The financial arrangements under the 2004 Agreement shall apply through and including July 31, 2012.  The Monthly Net Portfolio Yield Payment and the Annual Portfolio Performance Bonus shall begin to accrue as of August 1, 2012 with respect to Billing Statements issued on or after that date.

   Stage Stores/WFNB  
CONFIDENTIAL                                    Amended and Restated PLCCPA
Schedule Error! Reference source not found. - 1
ACTIVE 241371473

Attachment A
to
Schedule Error! Reference source not found.
Sample Monthly Yield Payment Calculation
	
				
	 
	Calculation
	Example

	A1
	Finance Charges ($MM)
	 
	[****]

	A2
	Late Fees ($MM)
	 
	[****]

	A3
	Other Cardholder Fees ($MM)
	 
	[****]

	A4
	Ancillary Income ($MM)
	 
	[****]

	A
	PLAN REVENUE ($MM)
	A1+A2+A3+A4
	[****]

	 
	 
	 
	 

	B
	PLAN WRITE-OFFS (net of all recoveries, total receivable, not principal write-offs) ($MM)
	[****]

	 
	 
	 
	 

	C
	STATEMENTS MAILED
	 
	[****]

	 
	 
	 
	 

	D
	COST PER STATEMENT ($)1
	[****]
	[****]

	1 Cost Per Statement to be adjusted according to CPI Adjustments outlined in Schedule Error! Reference source not found.

	 
	 
	 
	 

	E
	APPLICABLE PLAN MONTH OPERATING EXPENSES ($MM)
	C X D
	[****]

	 
	 
	 
	 

	F
	Monthly Net Portfolio Yield Pool
	A - B - E
	[****]

	G
	Partner Share of Monthly Net Portfolio Yield
	[****]
	 

	H
	SSI MONTHLY NET PORTFOLIO YIELD PAYMENT
	F X G
	[****]

*Actual calculations will not be rounded.

Stage Stores/WFNB
CONFIDENTIAL                                    Amended and Restated PLCCPA
Schedule Error! Reference source not found. - 5
ACTIVE 241371473

Attachment B
to
Schedule Error! Reference source not found.
Annual and Stub Performance Bonus Calculation
Annual Calculation
	
				
	Annual Performance Bonus
	Calculation / Value
	Example

	A
	Program Year Average Receivables ($MM)
	 
	[****]

	B
	50% of Annual Net Portfolio Yield Pool ($MM)
	Sum of Monthly Net Portfolio Yield for the Measurement Period X [****]
	[****]

	C
	Cost of Funds Proxy ($MM)
	A X [****]
	[****]

	D
	Standard Adjustment ($MM)
	[****]
	[****]

	E
	ADJUSTED NET  YIELD
	B - C - D 
	[****]

	 
	 
	 
	 

	F
	5.35% Hurdle ($MM)
	A X [****]
	[****]

	G
	Annual Bonus Pool1 ($MM)
	E - F
	[****]

	H
	SSI ANNUAL PERFORMANCE BONUS ($MM)
	G x [****]
	[****]

1 In the event the Annual Bonus Pool is negative, Stage will not receive an Annual Performance Bonus payment
Stub1 Calculation
	
					
	Annual Performance Bonus
	Calculation / Value
	Example
	 

	A
	Stub Period Average Receivables ($MM)
	 
	[****]
	 

	B
	50% of Stub Period Net Portfolio Yield Pool ($MM)
	Sum of Monthly Net Portfolio Yield for the Stub Period X [****]
	[****]
	 

	C
	Cost of Funds Proxy ($MM)
	A X [****] X Prorated Time Frame2
	[****]
	 

	D
	Prorated Adjustment ($MM)
	[****] X Prorated Time Frame2
	[****]
	 

	E
	ADJUSTED NET  YIELD
	B - C - D 
	[****]
	 

	 
	 
	 
	 
	 

	F
	5.35% Hurdle ($MM)
	A X [****] X Prorated Time Frame2
	[****]
	 

	G
	Prorated Bonus Pool3 ($MM)
	E - F
	[****]
	 

	H
	SSI STUB PERIOD PERFORMANCE BONUS ($MM)
	G x [****]
	[****]
	 

	1 Calculations assume a five (5) month stub period
	 

	2 Prorated Timeframe equals months in stub period divided by twelve (12)
3 If the stub period Prorated Bonus Pool is negative, Stage will not receive an Annual Performance Bonus for the Measurement Period.
	 

ACTIVE 241371473ex_147248.htm

Exhibit 4.2

 

Execution Copy

 

8.0% CUMULATIVE CAPITAL SECURITY CERTIFICATE

(also referred to as the Alpha Income Trust Preferred Securities)

 

This Capital Security (also referred to as the Alpha Income Trust Preferred Securities) is a Global Certificate within the meaning of the Trust Agreement hereinafter referred to and is registered in the name of The Depository Trust Company (the “Depositary”) or a nominee of the Depositary. This Capital Security is exchangeable for Capital Securities registered in the name of a person other than the Depositary or its nominee only in the limited circumstances described in the Trust Agreement (as defined below) and no transfer of this Capital Security (other than a transfer of this Capital Security as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary) may be registered except in limited circumstances.

 

 

Unless this Capital Security is presented by an authorized representative of The Depository Trust Company, a New York corporation (“Depository Trust Company”), to Air T, Inc. or its agent for registration of transfer, exchange or payment, and any Capital Security issued is registered in the name of Cede & Co., or such other name as requested by an authorized representative of Depository Trust Company (and any payment hereon is made to Cede & Co. or to such other entity as is requested by an authorized representative of Depository Trust Company), 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.

 

	
			Certificate Number  

				
			Number of Capital Securities

			
	
			C-          

				
			_____________

			

 

CUSIP NO. 00919P 203

 

 

 

Certificate Evidencing Capital Securities

of

Air T Funding

 

8.0% Cumulative Capital Securities

(Alpha Income Trust Preferred Securities)

(liquidation amount $2.50 per Capital Security)

 

 

AIR T Funding, a statutory trust created under the laws of the State of Delaware (the “Trust”), hereby certifies that ___________ (the “Holder”) is the registered owner of ______________ (________) preferred securities of the Trust representing undivided beneficial interests in the assets of the Trust and designated the 8.0% Cumulative Capital Securities and also referred to as Alpha Income Trust Preferred Securities (liquidation amount $2.50 per Capital Security) (the “Capital Securities”). The Capital Securities are transferable on the books and records of the Trust, in person or by a duly authorized attorney, upon surrender of this certificate duly endorsed and in proper form for transfer as provided in Section 504 of the Trust Agreement (as defined below). The designations, rights, privileges, restrictions, preferences, and other terms and provisions of the Capital Securities are set forth in, and this certificate and the Capital Securities represented hereby are issued and shall in all respects be subject to the terms and provisions of, the Amended and Restated Trust Agreement of the Trust dated as of June 10, 2019, as the same may be amended from time to time (the “Trust Agreement”), among Air T, Inc. as Depositor, Delaware Trust Company, as Property Trustee and as Delaware Trustee, and the Administrative Trustees named therein including the designation of the terms of Capital Securities as set forth therein. The Holder is entitled to the benefits of the Capital Securities Guarantee Agreement entered into by Air T, Inc., a Delaware corporation, and Delaware Trust Company, as guarantee trustee, dated as of June 10, 2019, as the same may be amended from time to time, (the “Guaranty”), to the extent provided therein. The Trust will furnish a copy of the Trust Agreement and the Guaranty to the Holder without charge upon written request to the Trust at its principal place of business or registered office. Upon receipt of this certificate, the Holder is bound by the Trust Agreement and is entitled to the benefits thereunder.

 

 

 

 

IN WITNESS WHEREOF, one of the Administrative Trustees of the Trust has executed this certificate this        day of           , 2019.

 

 

	
			 

				
			AIR T FUNDING

			
	
			 

				
			 

			
	
			 

				
			By

				
			  /s/ Mark Jundt

				
			 

			
	
			 

				
			Name: Mark Jundt

			
	
			 

				
			Title:  Administrative Trustee

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