Document:

Philip Morris International Inc. Form of Indemnification Agreement

 Exhibit 10.1 
 INDEMNIFICATION AGREEMENT dated as of __________________________, 20__ 
 between 
 Philip Morris International Inc. (the “Company”), 
 and 
 _______________________________ (“Indemnitee”) 

 TABLE OF CONTENTS 
  

							
	 	 	 	 	 	  	Page
	 INDEMNIFICATION AGREEMENT 
	  	1
		 	1.	 	 Service by Indemnitee
	  	1
		 	2.	 	 Indemnification Against Liability and Advancement of Expenses
	  	2
		 	3.	 	 Indemnification
	  	2
		 	4.	 	 Partial Indemnification Against Liability and Advancement of Expenses
	  	2
		 	5.	 	 Payment of Expenses as a Witness
	  	3
		 	6.	 	 Payment of Expenses as a Party
	  	3
		 	7.	 	 Determination of Entitlement to Indemnification; Authorization of Payment
	  	4
		 	8.	 	 Presumptions and Effect of Certain Proceedings
	  	5
		 	9.	 	 Remedies of Indemnitee in Cases of Determination Not to Indemnify Against Liability or to Pay Expenses
	  	5
		 	10.	 	 Other Rights to Indemnification and Advancement; No Duplication of Payments
	  	6
		 	11.	 	 Expenses to Enforce Agreement
	  	6
		 	12.	 	 Continuation of Indemnity
	  	6
		 	13.	 	 Notification and Defense of Claim
	  	7
		 	14.	 	 Severability
	  	7
		 	15.	 	 Headings; References; Pronouns
	  	7
		 	16.	 	 Definitions and References
	  	7
		 	17.	 	 Other Provisions
	  	8

  

 (i) 

 INDEMNIFICATION AGREEMENT 
 WHEREAS, the Board of Directors has determined in accordance with its good faith business judgment that the ability to attract and retain qualified persons as directors and executive officers is in the best interests
of the Company and that the Company should act to assure such persons that there shall be adequate certainty of protection against risks of claims and actions against them arising out of their service to and activities on behalf of the Company; and

 WHEREAS, the Company has adopted provisions in its Amended and Restated Articles of Incorporation regarding indemnification against
liabilities and advancement and reimbursement of expenses for its directors and executive officers and the Company wishes to make further provision with respect thereto as permitted by the Amended and Restated Articles of Incorporation of the
Company and Section 13.1-704.B of the Virginia Stock Corporation Act; and 
 WHEREAS, in order to induce and encourage highly
experienced and capable persons such as Indemnitee to serve and to continue to serve as directors and/or executive officers of the Company and in any other capacity with respect to the Company, and to otherwise promote the desirable end that such
persons will resist what they consider unjustified lawsuits and claims made against them in connection with the performance of their duties to the Company, with the knowledge that certain costs, judgments, penalties, fines, liabilities and expenses
incurred by them in their defense of such litigation are to be borne by the Company and they shall receive appropriate protection against such risks and liabilities, the Board of Directors of the Company has determined that the following Agreement
is in the best interests of the Company; and 
 WHEREAS, the Company desires to have Indemnitee become or continue to serve as a director
and/or executive officer of the Company, and in such other capacity with respect to the Company as the Company may request, free from undue concern for unpredictable, inappropriate or unreasonable legal risks and personal liabilities by reason of
Indemnitee’s performing his or her duties to the Company; and Indemnitee desires so to serve the Company, provided, and on the express condition, that he or she is furnished with the indemnity set forth herein; 
 Now, therefore, in consideration of Indemnitee’s future service to the Company, the parties hereto agree as follows: 
 1.   Service by Indemnitee. 
 (a)      If Indemnitee is currently or is about to become a director of the Company, Indemnitee shall continue to serve in that capacity so long as Indemnitee is duly elected or 

  

 1 

 
appointed and until such time as Indemnitee’s successor is elected and qualified or Indemnitee is removed as permitted by law or tenders a resignation
in writing. 
 (b)      If Indemnitee is currently or is about to become an executive officer of the Company,
Indemnitee shall continue to serve in that capacity at the pleasure of the Board of Directors. 
 2.   Indemnification
Against Liability and Advancement of Expenses. The Company shall indemnify Indemnitee against all Liability and, subject to Section 6 below, shall pay to Indemnitee in advance of the final disposition of any Proceeding all Expenses incurred
by Indemnitee, to the fullest extent permitted by the Virginia Stock Corporation Act in effect on the date of this Agreement or as such law may from time to time be amended (but, in the case of any such amendment, only to the extent that such
amendment permits the Company to provide broader rights than said law permitted the Company to provide prior to such amendment). No indemnification against Liability or advancement or reimbursement of Expenses shall be paid hereunder to Indemnitee:

 (a)       to the extent expressly prohibited by applicable law or the Amended and Restated Articles of
Incorporation of the Company; 
 (b)      for which payment has previously been made to Indemnitee under a
valid and collectible insurance policy or under a valid and enforceable indemnity clause, provision of the articles of incorporation or by-laws, or agreement of the Company or any other company or organization, except in respect of any Expenses or
Liability exceeding the payment under such insurance, indemnity clause, provision of the articles of incorporation, by-laws or agreement; 
 (c)      in connection with an action, suit or proceeding, or part thereof (including claims and counterclaims) initiated by Indemnitee, except a judicial proceeding or arbitration pursuant to Section 9
below to enforce rights under this Agreement, unless such action, suit or proceeding, or part thereof, was authorized by the Board of Directors of the Company; or 
 (d)      with respect to any Proceeding brought by or on behalf of the Company against Indemnitee that is authorized by the Board of Directors of the Company, except as provided in
Section 4 below. 
 3.   Indemnification. Except as limited by Section 2 above, the Company shall indemnify
Indemnitee against all Liability incurred in any Proceeding, including a Proceeding brought by or in the right of the Company, by reason of the fact that Indemnitee is or was a director and/or executive officer of the Company, or while a director
and/or executive officer of the Company is or was serving at the request of the Company as a director, officer, manager, partner, trustee, employee, agent or fiduciary of any other entity, including, but not limited to, another corporation, limited
liability company, partnership, joint venture, trust or employee benefit plan; or by reason of anything done or not done by Indemnitee in any such capacity; provided, however, that no such indemnification shall be made against willful misconduct or
a knowing violation of the criminal law. 
 4.   Partial Indemnification Against Liability and Advancement of
Expenses. If Indemnitee is entitled under any provision of this Agreement to (a) indemnification for some 

  

 2 

 
or a portion of the Liability, and/or (b) advancement or reimbursement of some or a portion of the Expenses but not, however, for the total amount thereof,
the Company shall nevertheless indemnify Indemnitee for the portion of such Liability and advance to or reimburse Indemnitee for the portion of such Expenses to which Indemnitee is entitled. 
 5.   Payment of Expenses as a Witness. The Company shall pay directly or promptly reimburse Indemnitee all Expenses incurred or
suffered by Indemnitee or on Indemnitee’s behalf if Indemnitee appears as or is threatened to be made a witness as a result of or related to Indemnitee’s service as a director and/or executive officer of the Company, in any threatened,
pending or completed action, suit or proceeding, whether of a civil, criminal, administrative, arbitrative, investigative, legislative or other nature, and whether formal or informal, to which Indemnitee neither is, nor is threatened to be made, a
party. 
 6.   Payment of Expenses as a Party. 
 (a)      At the Request of Indemnitee, subject to Section 6(b) below, the Company shall pay directly or promptly
reimburse Indemnitee in advance of the final disposition of any Proceeding to which Indemnitee is, or is threatened to be made, a party, all Expenses incurred by Indemnitee in connection with such Proceeding if Indemnitee furnishes to the Company:
(i) a written statement, executed personally, of Indemnitee’s good faith belief that his or her conduct relevant to the Proceeding did not constitute willful misconduct or a knowing violation of the criminal law and (ii) a written
undertaking, executed personally or on Indemnitee’s behalf, to repay any funds advanced or reimbursed if it is ultimately determined in a final, nonappealable adjudication that Indemnitee’s conduct relevant to the Proceeding constituted
willful misconduct or a knowing violation of the criminal law. One such written statement and undertaking shall suffice for the duration of such Proceeding. Such undertaking shall be an unlimited general obligation but need not be secured and shall
be accepted without reference to financial ability to make repayment. To receive an advancement or reimbursement of Expenses under this Agreement, Indemnitee shall from time to time submit written requests to the Secretary of the Company. Such
requests shall reasonably evidence the Expenses incurred by Indemnitee. Each such advancement or reimbursement of Expenses shall be made within 20 calendar days after the receipt by the Company of the written request therefor. Indemnitee’s
entitlement to advancement or reimbursement of such Expenses shall include those incurred in connection with any action, suit or proceeding by Indemnitee seeking a judgment in court or an adjudication or award in arbitration pursuant to
Section 9 below (including the enforcement of this provision) to the extent the court or arbitrator shall determine that Indemnitee is entitled to an advancement or reimbursement of Expenses hereunder. 
 (b)      Notwithstanding Section 6(a) above, the Company shall not pay or continue to pay Expenses of Indemnitee in
any Proceeding if a determination is made in good faith that the facts as they are then known demonstrate clearly and convincingly that Indemnitee’s conduct relevant to the Proceeding constituted willful misconduct or a knowing violation of the
criminal law. Such determination shall be made by any of the following person or persons: 
  

	 	(i)	 if there are two or more Disinterested Directors, by the Board of Directors by a majority vote of all Disinterested Directors, a majority of whom shall for such
purpose constitute a quorum, or by a majority of the members of 

  

 3 

	 	 
a committee of two or more Disinterested Directors appointed by such a vote; 

  

	 	(ii)	if there are fewer than two Disinterested Directors, by the Board of Directors, in which determination directors who do not qualify as Disinterested Directors may participate; or

  

	 	(iii)	by Special Legal Counsel in a written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee, with such Special Legal Counsel: 

 

	 	(1)	selected in the manner prescribed in clause (i) above; or 

  

	 	(2)	if there are fewer than two Disinterested Directors, selected by the Board of Directors, in which selection, directors who do not qualify as Disinterested Directors may participate.

 Notwithstanding the foregoing, in the event that there has been a change in the composition of a majority of the Board of Directors after
the date of the alleged act or omission with respect to which payment of Expenses is sought by Indemnitee, other than through successor directors approved by the Board of Directors (“Successor Directors”), such determination shall be made:

  

	 	(iv)	by a majority of directors who qualify as both Disinterested Directors and Successor Directors; or 

  

	 	(v)	if there are fewer than two such Disinterested and Successor Directors, by Special Legal Counsel in a written opinion to the Board of Directors, a copy of which shall be delivered
to Indemnitee, with such Special Legal Counsel mutually agreed upon by the Board of Directors and Indemnitee. 

 If in the case of clause
(v) immediately above the Board of Directors and Indemnitee are unable to agree upon a Special Legal Counsel, the Board of Directors and Indemnitee each shall select a nominee and the nominees shall select such Special Legal Counsel.

 7.   Determination of Entitlement to Indemnification; Authorization of Payment. Any indemnification against
Liability under this Agreement (to the extent not ordered by a court) shall be made by the Company only in the specific case upon a determination that indemnification is required under this Agreement. To receive indemnification against Liability
under this Agreement, Indemnitee shall submit a written request to the Secretary of the Company. Such request shall include documentation or information that is both reasonably available to Indemnitee and necessary to determine whether
indemnification is payable under this Agreement. Upon written request by Indemnitee for indemnification against Liability pursuant to this Agreement, the entitlement of Indemnitee to indemnification, to the extent not ordered by a court, shall be
determined by the same person or persons entitled to make the determination specified in Section 6(b) above. Authorization of indemnification shall be made in the same manner as the determination that indemnification is required, except that if
the determination is made by Special Legal Counsel, such authorization shall be made by those persons entitled to select Special Legal Counsel pursuant to in clause (iii) of Section 6(b) above. 

  

 4 

 
The determination of entitlement to indemnification shall be made and, unless it is determined that Indemnitee is not entitled to indemnification hereunder,
such indemnification shall be required to be authorized and paid not later than 30 calendar days after receipt by the Company of a written request for indemnification. Any amounts incurred by Indemnitee in connection with a request for
indemnification or advancement of Expenses hereunder, under any other agreement, any provision of the Company’s Amended and Restated Articles of Incorporation or any directors’ and officers’ liability insurance, shall be borne by the
Company. The Company hereby indemnifies Indemnitee for any such amounts and agrees to hold Indemnitee harmless therefrom irrespective of the outcome of the determination of Indemnitee’s entitlement to indemnification. If the person making such
determination shall determine that Indemnitee is entitled to indemnification as to part (but not all) of the application for indemnification, such person shall reasonably prorate such partial indemnification among the claims, issues or matters at
issue at the time of the determination. 
 8.   Presumptions and Effect of Certain Proceedings. The Secretary of the
Company shall, promptly upon receipt of Indemnitee’s written request for indemnification, advise in writing the Board of Directors or such other person or persons empowered to make the determination of entitlement to indemnification as provided
in Section 7 above that Indemnitee has made such request for indemnification. Upon making such request for indemnification, Indemnitee shall be presumed to be entitled to indemnification hereunder and the Company shall have the burden of proof
in making any determination contrary to such presumption. If the person or persons so empowered to make such determination shall have failed to make the requested determination within the 30-day period prescribed in Section 7 above, a requisite
determination of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be absolutely entitled to such indemnification, absent actual and material fraud in the request for indemnification. The termination of any
Proceeding described in Section 3 above by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that Indemnitee’s conduct relevant to the Proceeding
constituted willful misconduct or a knowing violation of the criminal law. 
 9.   Remedies of Indemnitee in Cases of
Determination Not to Indemnify Against Liability or to Pay Expenses. In the event that a determination is made that Indemnitee is not entitled to indemnification hereunder or if payment has not been timely made following a determination of
entitlement to indemnification pursuant to Sections 7 and 8 above, or if payment of Expenses is not made pursuant to Sections 5 or 6 above, Indemnitee shall be entitled to final adjudication in a court of competent jurisdiction of
entitlement to such indemnification against Liability or payment of Expenses. Alternatively, Indemnitee at Indemnitee’s option may seek an award in an arbitration to be conducted by a single arbitrator pursuant to the rules of the American
Arbitration Association, such award to be made within 60 calendar days following the filing of the demand for arbitration. The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration. The determination
in any such judicial proceeding or arbitration shall be made de novo and Indemnitee shall not be prejudiced by reason of a determination (if so made) pursuant to Sections 7 or 8 above that Indemnitee is not entitled to
indemnification. If a determination is made or deemed to have been made pursuant to the terms of Sections 7 or 8 above that Indemnitee is entitled to indemnification, the Company shall be bound by such determination and is precluded from
asserting that such determination has not been made or that the procedure by which such determination was made is not valid, binding and 

  

 5 

 
enforceable. The Company further agrees to stipulate in any such court or before any such arbitrator that the Company is bound by all the provisions of this
Agreement and is precluded from making any assertions to the contrary. If the court or arbitrator shall determine that Indemnitee is entitled to any indemnification against Liability or payment of Expenses hereunder, the Company shall pay all
Expenses incurred by Indemnitee with respect to such adjudication or award in arbitration (including, but not limited to, any appellate proceedings). 
 10.   Other Rights to Indemnification and Advancement; No Duplication of Payments. 
 (a)      The indemnification against Liability and advancement of Expenses provided by this Agreement shall not be exclusive of any other rights to which Indemnitee may now or in the future be entitled under
any provision of the Amended and Restated Articles of Incorporation or Amended and Restated By-laws of the Company, vote of shareholders or Disinterested Directors, provision of law, agreement, policies of insurance or otherwise (including with
respect to claims, issues or matters in relation to which the Company would not have the power to indemnify or advance Expenses to Indemnitee under the provisions of this Agreement or otherwise). 
 (b)      The Company shall not be required under this Agreement to make any payment to the Indemnitee to the extent the
underlying Liability or Expense has previously been paid or reimbursed, whether under a source identified in Section 10(a) above or otherwise (the “Other Payment”). To the extent Indemnitee receives the Other Payment for the
underlying Liability or Expense after payment has been made by the Company under this Agreement, Indemnitee shall promptly reimburse the Company for such payment after receipt by Indemnitee of such Other Payment. 
 11.   Expenses to Enforce Agreement. In the event that Indemnitee is subject to or intervenes in any action, suit or proceeding in
which the validity or enforceability of this Agreement is at issue or seeks an adjudication or award in arbitration to enforce Indemnitee’s rights under, or to recover damages for breach of, this Agreement, Indemnitee, if Indemnitee prevails in
whole or in part in such action, suit or proceeding, shall be entitled to recover from the Company and shall be indemnified by the Company against any Expenses incurred by Indemnitee. If the person making such determination shall determine that
Indemnitee is entitled to indemnification as to part (but not all) of the application for indemnification, such person shall reasonably prorate such partial indemnification among the claims, issues or matters at issue at the time of the
determination. 
 12.   Continuation of Indemnity. All agreements and obligations of the Company contained herein
shall continue during the period Indemnitee is a director and/or an executive officer of the Company and shall continue thereafter with respect to any possible claims based on the fact that Indemnitee was a director and/or an executive officer of
the Company or while a director and/or an executive officer of the Company was serving at the request of the Company as a director, officer, manager, partner, trustee, employee, agent or fiduciary of any other entity including, but not limited to,
another corporation, limited liability company, partnership, joint venture, trust or employee benefit plan. This Agreement shall be binding upon all successors and assigns of the Company (including any transferee of all or 

  

 6 

 
substantially all of its assets and any successor by merger or operation of law) and shall inure to the benefit of the heirs, executors and administrators of
Indemnitee. 
 13.   Notification and Defense of Claim. Promptly after receipt by Indemnitee of notice of any
Proceeding, Indemnitee shall, if a claim in respect thereof is to be made against the Company under this Agreement, notify the Company in writing of the commencement thereof, but the omission so to notify the Company shall not relieve it from any
liability that it may have to Indemnitee. Notwithstanding any other provision of this Agreement, with respect to any such Proceeding of which Indemnitee notifies the Company: 
 (a)      The Company shall be entitled to participate therein at its own expense; and 
 (b)      Except as otherwise provided in this Section 13(b), to the extent that it may wish, the Company, jointly with
any other indemnifying party similarly notified, shall be entitled to assume the defense thereof, with counsel reasonably satisfactory to Indemnitee. Indemnitee shall have the right to employ Indemnitee’s own counsel in such Proceeding and the
fees and expenses of Indemnitee’s counsel shall be at the expense of the Company; and 
 (c)      If the
Company has assumed the defense of a Proceeding, the Company shall not be liable to indemnify Indemnitee under this Agreement for any amounts paid in settlement of any Proceeding effected without the Company’s written consent. The Company shall
not settle any Proceeding in any manner that would impose any penalty or limitation on or disclosure obligation with respect to Indemnitee without Indemnitee’s written consent. Neither the Company nor Indemnitee shall unreasonably withhold its
consent to any proposed settlement. 
 14.   Severability. If any provision or provisions of this Agreement shall be
held to be invalid, illegal or unenforceable for any reason whatsoever (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, but not limited to, all portions of any paragraphs of this Agreement
containing any such provision held to be invalid, illegal or unenforceable, that are not by themselves invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby, and (b) to the fullest extent possible, the
provisions of this Agreement (including, but not limited to, all portions of any paragraph of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall
be construed so as to give effect to the intent of the parties that the Company provide protection to Indemnitee as set forth in this Agreement to the fullest enforceable extent. 
 15.   Headings; References; Pronouns. The headings of the sections of this Agreement are inserted for convenience only and shall
not be deemed to constitute part of this Agreement or to affect the construction thereof. References herein to section numbers are to sections of this Agreement. All pronouns and any variations thereof shall be deemed to refer to the masculine,
feminine, neuter, singular or plural as appropriate. 
 16.   Definitions and References. For purposes of this
Agreement: 
 “Disinterested Director” shall have the meaning given in the Virginia Stock Corporation Act from time to time.

  

 7 

 “Expenses” includes, without limitation, all reasonable fees, costs and expenses incurred in
connection with the defense or settlement of any action, suit or proceeding, including all investigations, and all judicial, arbitrative, administrative or legislative proceedings, whether formal or informal, and appeals, attorneys’ fees and
expenses, witness fees and expenses, fees and expenses of accountants and other advisors, retainers and disbursements and advances thereon, expenses related to photocopying, transcripts, computer research and travel, the premium, security for, and
other costs relating to any bond (including cost bonds, appraisal bonds or their equivalents), and any expenses of establishing a right to indemnification against Liability or advancement of Expenses hereunder, but (i) shall not include the
amount of any Liability and (ii) shall not include attorneys’ fees and expenses that are payable by Indemnitee under Section 13(b) above. Any evaluation as to reasonableness of Expenses for which Indemnitee seeks advancement or
reimbursement pursuant to this Agreement shall be made in the same manner as an authorization of indemnification as described in Section 7 above. 
 (a)      “Liability” means the obligation to pay a judgment, settlement, penalty or fine, including any excise tax assessed with respect to an employee benefit plan. 

(b)      “Proceeding” includes any threatened, pending or completed action, suit or proceeding, whether brought
by or in the right of the Company or otherwise, against Indemnitee, whether of a civil, criminal, administrative, arbitrative, investigative, legislative or other nature, and whether formal or informal, by reason of the fact that Indemnitee is or
was a director and/or an executive officer of the Company, or while a director and/or an executive officer of the Company is or was serving at the request of the Company as a director, officer, manager, partner, trustee, employee, agent or fiduciary
of any other entity, including, but not limited to, another corporation, limited liability company, partnership, joint venture, trust or employee benefit plan, or by reason of anything done or not done by Indemnitee in such capacity, whether or not
Indemnitee is serving in such capacity at the time any liability or expense is incurred for which indemnification or advancement can be provided under this Agreement. 
 (c)      “Special Legal Counsel” means a law firm or a member of a law firm that neither is presently nor in the past five years has been retained to represent: (i) the
Company or Indemnitee in any matter material to either such party, or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Special Legal Counsel” shall
not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s right to
indemnification or advancement under this Agreement. 
 (d)      Indemnitee shall be considered to be serving an
employee benefit plan at the Company’s request if Indemnitee’s duties to the Company also impose duties on, or otherwise involve services by, Indemnitee to the plan or participants in or beneficiaries of the plan. 
 17.   Other Provisions. 
 (a)      This Agreement shall be interpreted and enforced in accordance with the laws of the Commonwealth of Virginia. 
  

 8 

 (b)      This Agreement may be executed in one or more counterparts, each
of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the party against whom enforceability is sought needs to be produced as evidence
of the existence of this Agreement. 
 (c)      This Agreement shall not be deemed an employment contract
between the Company and any Indemnitee who is an executive officer of the Company, and, if Indemnitee is an executive officer of the Company, Indemnitee specifically acknowledges that Indemnitee may be discharged at any time for any reason, with or
without cause, and with or without severance compensation, except as may be otherwise provided in a separate written contract between Indemnitee and the Company. 
 (d)      Upon a payment to Indemnitee under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of Indemnitee to recover against any person
(other than another past, present or future director and/or executive officer of the Company, in such capacity) for such liability, and Indemnitee shall execute all documents and instruments required and shall take such other actions as may be
necessary to secure such rights, including the execution of such documents as may be necessary for the Company to bring suit to enforce such rights. 
 (e)      No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both parties hereto. No waiver of any of the provisions of this
Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver. 
 (Signature Page Follows.) 
  

 9 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on and as of the day and year first
above written. 
  

			
	PHILIP MORRIS INTERNATIONAL INC.
		
	By:	 	 
		
	Title:	 	 

  

	
	
	 
	INDEMNITEE

  

 10Assignment No. 32 of Receivables in Additional Accounts

 Exhibit 10.1 
 ASSIGNMENT NO. 32 OF RECEIVABLES IN ADDITIONAL ACCOUNTS, dated as of September 17, 2009, by and between CHASE BANK USA, NATIONAL ASSOCIATION, a national banking association (the “Bank”), as Transferor
(in such capacity, the “Transferor”), and the CHASE ISSUANCE TRUST (the “Trust”), pursuant to the Agreement referred to below, and acknowledged by the Bank in its capacity as servicer under the Agreement referred to below (in
such capacity, the “Servicer”). 
 W I T N E S S E T H: 
 WHEREAS, the Bank, as Transferor, Servicer and Administrator, Wells Fargo Bank, National Association, as Indenture Trustee and Collateral Agent, and the
Trust are parties to the Third Amended and Restated Transfer and Servicing Agreement, dated as of December 19, 2007, as amended by the First Amendment to the Third Amended and Restated Transfer and Servicing Agreement, dated as of May 8, 2009
(hereinafter as such agreement may have been, or may from time to time be, amended, supplemented or otherwise modified, the “Agreement”); 
 WHEREAS, pursuant to the Agreement, the Transferor wishes to designate Additional Accounts to be included as Accounts and to convey hereby the Receivables of such Additional Accounts (as each such term is defined in the Agreement), whether
now existing or hereafter created, to the Trust; and 
 WHEREAS, the Administrator, on behalf of the Trust, is willing to accept such
designation and conveyance subject to the terms and conditions hereof; 
 NOW, THEREFORE, the Transferor and the Administrator, on behalf of
the Trust, hereby agree as follows: 
 1. Defined Terms. All capitalized terms used herein shall have the meanings ascribed to them in
the Agreement unless otherwise defined herein. 
 “Addition Cut-Off Date” shall mean, with respect to the Additional
Accounts designated hereby, August 31, 2009. 
 “Addition Date” shall mean, with respect to the Additional Accounts
designated on Schedule 1 hereto, September 17, 2009. 
 “Notice Date” shall mean, with respect to the Additional
Accounts designated on Schedule 1 hereto, September 10, 2009 which shall be a date on or prior to the third Business Day prior to the Addition Date with respect to additions pursuant to subsection 2.12(a) of the Agreement and the fifth Business
Day prior to the Addition Date with respect to additions pursuant to subsection 2.12(b) of the Agreement. 
 2. Designation of Additional
Accounts. No later than five Business Days after the Addition Date, the Transferor shall deliver to the Collateral Agent, as designee, on behalf of the Trust, a true and complete list (in the form of a computer file, microfiche list, CD-ROM or
such other form as is agreed upon between the Transferor 

 
and the Collateral Agent) of each VISA®
 and MasterCard® account which, as of the Addition Date, shall be deemed to be an Additional Account, identified by
account number and the aggregate amount of the Receivables in each such Additional Account as of the Addition Cut-Off Date, and stating to which Asset Pool each such Additional Account belongs, which list shall be marked as Schedule 1 to this
Assignment and, as of the Addition Date, shall modify and amend and be incorporated into and made part of the Agreement and shall supplement Schedule 1 to the Agreement. 
 3. Conveyance of Receivables. 
 (a) The Transferor does hereby sell, transfer and
assign to the Trust all right, title and interest, whether owned on the Addition Cut-Off Date or thereafter acquired, of the Transferor in the Receivables existing on the Addition Cut-Off Date or thereafter created in the Additional Accounts, all
Interchange and Recoveries related thereto, all monies due or to become due and all amounts received or receivable with respect thereto and all proceeds (including “proceeds” as defined in the applicable UCC) thereof and all Insurance
Proceeds related thereto. This Section 3(a) does not constitute and is not intended to result in the creation or assumption by the Trust, the Owner Trustee (as such or in its individual capacity), the Indenture Trustee, the applicable
Collateral Agent, any Noteholders, any Supplemental Credit Enhancement Provider or any Derivative Counterparty of any obligation of the Transferor or any other Person in connection with the Accounts, the Receivables or under any agreement or
instrument relating thereto, including any obligation to Obligors, merchant banks, merchants clearance systems, VISA®,
MasterCard® or insurers. 
 (b) The Transferor hereby grants to the Trust a security interest in all of its right, title and interest, whether owned on the Addition Cut-Off Date or thereafter acquired, of the Transferor in the Receivables
existing on the Addition Cut-Off Date or thereafter created in the Additional Accounts, all Interchange and Recoveries related thereto, all monies due or to become due and all amounts received or receivable with respect thereto and the
“proceeds” (including “proceeds” as defined in the applicable UCC) thereof and all Insurance Proceeds related thereto to secure a loan in an amount equal to the unpaid principal amount of the Notes issued pursuant to the
Indenture and the applicable Indenture Supplement and accrued and unpaid interest with respect thereto. This Assignment constitutes a security agreement under the UCC. 
 (c) If necessary, the Transferor agrees to record and file, at its own expense, financing statements (and continuation statements when applicable) with respect to the Receivables in Additional Accounts existing on the
Addition Cut-Off Date and thereafter created meeting the requirements of applicable state law in such manner and in such jurisdictions as are necessary to perfect, and maintain perfection of, the sale and assignment of its interest in such
Receivables to the Trust, and to deliver a file-stamped copy of each such financing statement or other evidence of such filing to the Owner Trustee on or prior to the Addition Date. The Owner Trustee shall be under no obligation whatsoever to file
such financing or continuation statements or to make any filing under the UCC in connection with such sale and assignment. 
  

 2 

 (d) In connection with such transfers, the Transferor further agrees, at its own expense, on or prior to
the date of this Assignment, to indicate in the appropriate computer files that Receivables created in connection with the Additional Accounts and designated hereby have been conveyed to the Trust pursuant to this Assignment for the benefit of the
Noteholders. 
 (e) The parties hereto agree that all transfers of Receivables to the Trust pursuant to this Assignment are subject to, and
shall be treated in accordance with, the Delaware Act and each of the parties hereto agrees that this Assignment has been entered into by the parties hereto in express reliance upon the Delaware Act. For purposes of complying with the requirements
of the Delaware Act, each of the parties hereto hereby agrees that any property, assets or rights purported to be transferred, in whole or in part, by the Transferor pursuant to this Assignment shall be deemed to no longer be the property, assets or
rights of the Transferor. The parties hereto acknowledge and agree that each such transfer is occurring in connection with a “securitization transaction” within the meaning of the Delaware Act. 
 4. Acceptance by Owner Trustee on Behalf of the Trust. The Owner Trustee, on behalf of the Trust, hereby acknowledges its acceptance of all right,
title and interest in and to the Receivables in the Additional Accounts now existing and hereafter created, conveyed to the Trust pursuant to Section 3(a) hereof and declares that the Trust shall maintain such right, title and interest, upon
the trust herein set forth, for the benefit of the Noteholders. 
 5. Representations and Warranties of the Transferor. The Transferor
hereby represents and warrants to the Trust as of the date of this Assignment (or such other date specified below) as follows: 
 (a)
Legal, Valid and Binding Obligation. This Assignment constitutes a legal, valid and binding obligation of the Transferor enforceable against the Transferor in accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect affecting the enforcement of creditors’ rights in general and except as such enforceability may be limited by general principles of
equity (whether considered in a suit at law or in equity); 
 (b) Eligibility of Accounts. As of the Addition Cut-Off Date, each
Additional Account designated hereby was an Eligible Account; 
 (c) Insolvency. As of each of the Addition Cut-Off Date and the
Addition Date, no Insolvency Event with respect to the Transferor has occurred and the transfer by the Transferor of Receivables arising in the Additional Accounts to the Trust has not been made in contemplation of the occurrence thereof;

 (d) No Adverse Effect. The acquisition by the Trust of the Receivables arising in the Additional Accounts shall not, in the
reasonable belief of the Transferor, result in an Adverse Effect; 
  

 3 

 (e) Security Interest. This Assignment constitutes a valid sale, transfer and assignment to the
Trust of all right, title and interest, whether owned on the Addition Cut-Off Date or thereafter acquired, of the Transferor in the Receivables existing on the Addition Cut-Off Date or thereafter created in the Additional Accounts, all Interchange
and Recoveries related thereto, all monies due or to become due and all amounts received or receivable with respect thereto and the “proceeds” (including “proceeds” as defined in the applicable UCC) thereof and Insurance Proceeds
related thereto, or, if this Assignment does not constitute a sale of such property, the Agreement as amended by this Assignment constitutes a grant of a “security interest” (as defined in the applicable UCC) in such property to the Trust,
which, in the case of existing Receivables and the proceeds thereof, is enforceable upon execution and delivery of this Assignment, and which will be enforceable with respect to such Receivables hereafter created and the proceeds thereof upon such
creation. Upon the filing of the financing statements described in Section 3 of this Assignment and, in the case of the Receivables hereafter created and the proceeds thereof, upon the creation thereof, the Trust shall have a first priority
perfected security or ownership interest in such property; 
 (f) No Conflict. The execution and delivery by the Transferor of this
Assignment, the performance of the transactions contemplated by this Assignment and the fulfillment of the terms hereof applicable to the Transferor, will not conflict with or violate any Requirements of Law applicable to the Transferor or conflict
with, result in any breach of any of the material terms and provisions of, or constitute (with or without notice or lapse of time or both) a material default under, any indenture, contract, agreement, mortgage, deed of trust or other instrument to
which the Transferor is a party or by which it or its properties are bound; 
 (g) No Proceedings. There are no proceedings or
investigations, pending or, to the best knowledge of the Transferor, threatened against the Transferor before any court, regulatory body, administrative agency or other tribunal or governmental instrumentality (i) asserting the invalidity of
this Assignment, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Assignment, (iii) seeking any determination or ruling that, in the reasonable judgment of the Transferor, would materially and
adversely affect the performance by the Transferor of its obligations under this Assignment or (iv) seeking any determination or ruling that would materially and adversely affect the validity or enforceability of this Assignment; and

 (h) All Consents. All authorizations, consents, orders or approvals of any court or other governmental authority required to be
obtained by the Transferor in connection with the execution and delivery of this Assignment by the Transferor and the performance of the transactions contemplated by this Assignment by the Transferor, have been obtained. 
 6. Conditions Precedent. The designation of Additional Accounts pursuant to Section 2 of this Assignment, the conveyance of Receivables
pursuant to Section 3 of this Assignment and the amendment of the Agreement pursuant to Section 7 hereof are each subject to the satisfaction of the conditions precedent set forth in 

  

 4 

 
subsection 2.12(c) of the Agreement on or prior to the dates specified in such subsection 2.12(c), except to the extent any such conditions have been waived.
For purposes of subsection 2.12(c)(i) of the Agreement, “Notice Date” shall having the meaning specified in subsection 1 hereof. With respect to the condition specified in subsection 2.12(c)(xi) of the Agreement, the Bank shall have
delivered to the Administrator, on behalf of the Trust, on or prior to the date hereof, a certificate of a Vice President or more senior officer substantially in the form of Schedule 2 hereto, certifying that (i) all requirements set forth in
clause (ii) through (x) of subsection 2.12(c) of the Agreement for designating and conveying Receivables in Additional Accounts have been satisfied or waived and (ii) each of the representations and warranties made by the Transferor
in Section 5 of this Assignment is true and correct as of the Addition Date. The Owner Trustee and the Administrator may conclusively rely on such Officer’s Certificate, shall have no duty to make inquiries with regard to the matters set
forth therein, and shall incur no liability in so relying. 
 7. Amendment of the Transfer and Servicing Agreement. The Agreement is
hereby amended to provide that all references therein to the “Transfer and Servicing Agreement,” to “this Agreement” and to “herein” shall be deemed from and after the Addition Date to be a dual reference to the
Agreement as supplemented by this Assignment. All references therein to Additional Accounts shall be deemed to include the Additional Accounts designated hereby and all references therein to Receivables shall be deemed to include the Receivables
conveyed hereby. Except as expressly amended hereby, all of the representations, warranties, terms, covenants and conditions of the Agreement shall remain unamended and shall continue to be, and shall remain, in full force and effect in accordance
with its terms and except as expressly provided herein shall not constitute or be deemed to constitute a waiver of compliance with or a consent to noncompliance with any term or provision of the Agreement. 
 8. Counterparts. This Assignment 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. 
 9. GOVERNING LAW. THIS ASSIGNMENT SHALL BE
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, 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. 

10. Removal Upon Breach. In the event of a breach of the representation and warranty set forth in Section 5(b) hereof other than in the
case of an automatic removal of a Receivable that is not an Eligible Receivable pursuant to subsection 2.05(a) of the Agreement, if as a result of such breach the related Receivable is no longer an Eligible Receivable or the Trust’s rights in,
to or under such Receivable or its proceeds are impaired, then upon the expiration of 60 days (or such longer period as may be agreed to by the Indenture Trustee, the applicable Collateral Agent and the Servicer, but in no event later than 120 days)
after the earlier to occur of the discovery 

  

 5 

 
thereof by the Transferor who conveyed such Receivable to the Trust or receipt by such Transferor of written notice thereof given by the Owner Trustee, the
Indenture Trustee, the applicable Collateral Agent or the Servicer, such Receivable shall be removed from the Trust on the terms and conditions set forth in subsection 2.05(b) of the Agreement and the Transferor shall accept reassignment of such
Receivable; provided, however, that no such removal shall be required to be made if, on any day within such applicable period, such representation and warranty with respect to such Receivable shall then be true and correct in all
material respects as if such Receivable had been designated for inclusion in the Trust on such day. 
  

 6 

 IN WITNESS WHEREOF, the parties hereto have caused this Assignment to be duly executed by their
respective officers as of the day and year first above written. 
  

			
	 CHASE BANK USA, NATIONAL
 ASSOCIATION, as
Transferor

		
	By:	 	 /s/ Keith W. Schuck

	Name:	 	Keith W. Schuck
	Title:	 	President
	
	CHASE ISSUANCE TRUST
		
	By:	 	WILMINGTON TRUST COMPANY, not in its individual capacity but solely as Owner Trustee on behalf of the Trust
		
	By:	 	 /s/ Jennifer A. Luce

	Name:	 	Jennifer A. Luce
	Title:	 	Assistant Vice President

  

			
	Acknowledged by:
	
	 CHASE BANK USA,
 NATIONAL
ASSOCIATION,
 as Servicer

		
	By:	 	 /s/ Keith W. Schuck

	Name:	 	Keith W. Schuck
	Title:	 	President

 Chase Issuance Trust 
 Assignment No. 32 (TSA) 

 Schedule 1 
 List of Additional Accounts 
 [TO BE DELIVERED BY THE TRANSFEROR TO THE OWNER TRUSTEE AND 
 MARKED AS SCHEDULE 1 TO THIS ASSIGNMENT] 
  

 Schedule 1 

 Schedule 2 
 Chase Bank USA, National Association 
 Officer’s Certificate 
 September 17, 2009 
 Keith W.
Schuck, a duly authorized officer of Chase Bank USA, National Association (“Chase USA”), a national banking association, as transferor (the “Transferor”), hereby certifies and acknowledges on behalf of the Transferor that to the
best of his knowledge the following statements are true on September 17, 2009 (the “Addition Date”), and acknowledges on behalf of the Transferor that this Officer’s Certificate will be relied upon by Wilmington Trust Company, as
Owner Trustee on behalf of the Chase Issuance Trust (the “Trust” or “Issuing Entity”), in connection with the Trust entering into Assignment No. 32 of Receivables in Additional Accounts, dated as of the Addition Date (the
“Assignment”), by and between the Transferor and the Trust, in connection with the Third Amended and Restated Transfer and Servicing Agreement, dated as of December 19, 2007 (as heretofore supplemented and amended, including as amended by
the First Amendment to the Third Amended and Restated Transfer and Servicing Agreement, dated as of May 8, 2009, the “Transfer and Servicing Agreement”), each by and among Chase USA, as Transferor, Servicer and Administrator, the
Issuing Entity and Wells Fargo Bank, National Association, as Indenture Trustee and Collateral Agent. The undersigned hereby certifies and acknowledges on behalf of the Transferor that: 
 (a) Representations and Warranties. Each of the representations and warranties made by the Transferor in Section 5 of the Assignment is true
and correct as of the Addition Date. 
 (b) Conditions Precedent. All requirements set forth in clause (ii) through (x) of
subsection 2.12(c) of the Transfer and Servicing Agreement for designating and conveying Receivables arising in the Additional Accounts have been satisfied or waived. The Transferor shall deliver to the Collateral Agent, as designee, on behalf of
the Issuing Entity, a true and complete list (in the form of a computer file, microfiche list, CD-ROM or such other form as is agreed upon between the Transferor and the Collateral Agent) of the Additional Accounts, identified by account number and
the aggregate amount of the Receivables in each Additional Account as of the Addition Cut-Off Date, and stating to which Asset Pool the Additional Accounts belong, which list shall, as of the Addition Date, modify and amend and be incorporated into
and made a part of the Assignment and the Transfer and Servicing Agreement. 
 Initially capitalized terms used herein and not otherwise
defined are used as defined in the Transfer and Servicing Agreement. 
  

 Schedule 2-1 

 IN WITNESS WHEREOF, I have hereunto set my hand on the date first set forth above. 
  

			
	 CHASE BANK USA,
 NATIONAL ASSOCIATION

		
	By:	 	  

	Name:	 	Keith W. Schuck
	Title:	 	President

  

 Schedule 2-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]