Document:

EXHIBIT 10.14

 Exhibit 10.14 
  
 EDUCATE, INC. 
  
 2004 OMNIBUS STOCK INCENTIVE PLAN 
  
 Section 1.    General Purpose of Plan; Definitions. 
  
 The name of this plan is the Educate, Inc. 2004 Omnibus Stock Incentive Plan (the “Plan”). The Plan was adopted by the Board (defined below) on
                        , subject to the approval of the stockholders of the Company (defined below). The purpose of the Plan is
to enable the Company to attract and retain highly qualified personnel who will contribute to the Company’s success and to provide incentives to Participants (defined below) that are linked directly to increases in stockholder value and will
therefore inure to the benefit of all stockholders of the Company. 
  
 For
purposes of the Plan, the following terms shall be defined as set forth below: 
  
 (a)    “Administrator” means the Board, or if and to the extent the Board does not administer the Plan, the Committee in accordance with Section 2 below. 
  
 (b)    “Board” means the Board of Directors of the
Company. 
  
 (c)    “Code” means the
Internal Revenue Code of 1986, as amended from time to time, or any successor thereto. 
  
 (d)    “Committee” means any committee the Board may appoint to administer the Plan. To the extent necessary and desirable, the Committee shall be composed entirely of individuals who meet
the qualifications referred to in Section 162(m) of the Code and Rule 16b-3 under the Exchange Act. If at any time or to any extent the Board shall not administer the Plan, then the functions of the Board specified in the Plan shall be exercised by
the Committee. 
  
 (e)    “Company”
means Educate, Inc., a Delaware corporation (or any successor corporation). 
  
 (f)    “Deferred Stock” means the right to receive Stock at the end of a specified deferral period granted pursuant to Section 7 below. 
  
 (g)    “Disability” shall have the meaning set forth in the Participant’s employment
agreement, or if no such meaning is set forth, means the inability of a Participant to perform substantially his or her duties and responsibilities to the Company or to any Parent or Subsidiary by reason of a physical or mental disability or
infirmity (i) for a continuous period of six months, or (ii) at such earlier time as the Participant submits medical evidence satisfactory to the Administrator that the Participant has a physical or mental disability or infirmity that will likely
prevent the Participant from returning to the performance of the Participant’s work duties for six months or longer. The date of such Disability shall be the last day of such six-month period or the day on which the Participant submits such
satisfactory medical evidence, as the case may be 

 (h)    “Eligible Recipient” means an officer, director, employee, consultant
or advisor of the Company or of any Parent or Subsidiary. 
  
 (i)    “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time. 
  
 (j)    “Fair Market Value” means, as of any given date, with respect to any awards granted hereunder, (A) the closing sale
price of a share of Stock on such date on the principal securities exchange on which the Company’s equity securities are listed or traded, (B) the fair market value of a share of Stock as determined in accordance with a method prescribed in the
agreement evidencing any award hereunder, or (C) the fair market value of a share of Stock as otherwise determined by the Administrator in the good faith exercise of its discretion. 
  
 (k)    “Incentive Stock Option” means any Stock Option intended to be designated as an
“incentive stock option” within the meaning of Section 422 of the Code. 
  
 (l)    “Non-Qualified Stock Option” means any Stock Option that is not an Incentive Stock Option, including any Stock Option that provides (as of the time such Stock Option is granted) that it will not
be treated as an Incentive Stock Option. 
  
 (m)    “Parent” means any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if each of the corporations in the chain (other than the Company) owns stock
possessing 50% or more of the combined voting power of all classes of stock in one of the other corporations in the chain. 
  
 (n)    “Participant” means any Eligible Recipient selected by the Administrator, pursuant to the Administrator’s authority
in Section 2 below, to receive grants of Stock Options, Stock Appreciation Rights, awards of Restricted Stock, Deferred Stock, or Performance Shares or any combination of the foregoing. 
  
 (o)    “Performance Shares” means shares of Stock that are subject to restrictions based upon the
attainment of specified performance objectives granted pursuant to Section 7 below. 
  
 (p)    “Registration Statement” means the registration statement on Form S-1 filed with the Securities and Exchange Commission for the initial underwritten public offering of the
Company’s Stock. 
  
 (q)    “Restricted
Stock” means shares of Stock subject to certain restrictions granted pursuant to Section 7 below. 
  
 (r)    “Stock” means the common stock, par value $0.001 per share, of the Company. 
  
 (s)    “Stock Appreciation Right” means the right
pursuant to an award granted under Section 6 below to receive an amount equal to the excess, if any, of (A) the Fair Market Value, as of the date such Stock Appreciation Right or portion thereof is 
  

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 surrendered, of the shares of Stock covered by such right or such portion thereof, over (B) the aggregate exercise price of such
right or such portion thereof. 
  
 (t)    “Stock
Option” means an option to purchase shares of Stock granted pursuant to Section 5 below. 
  
 (u)    “Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the
Company, if each of the corporations (other than the last corporation) in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in the chain. 
  
 Section 2.    Administration. 
  
 The Plan shall be administered in accordance with the requirements of Section 162(m)
of the Code (but only to the extent necessary and desirable to maintain qualification of awards under the Plan under Section 162(m) of the Code) and, to the extent applicable, Rule 16b-3 under the Exchange Act (“Rule 16b-3”), by the Board
or, at the Board’s sole discretion, by the Committee, which shall be appointed by the Board, and which shall serve at the pleasure of the Board. 
  
 Pursuant to the terms of the Plan, the Administrator shall have the power and authority to grant to Eligible Recipients pursuant to the terms of the Plan: (a) Stock
Options, (b) Stock Appreciation Rights, (c) awards of Restricted Stock, Deferred Stock or Performance Shares or (d) any combination of the foregoing. Except as otherwise provided in Section 5(h) below, the Administrator shall have the authority:

  
 (a)    to select those Eligible Recipients who shall
be Participants; 
  
 (b)    to determine whether and to
what extent Stock Options, Stock Appreciation Rights, awards of Restricted Stock, Deferred Stock or Performance Shares or a combination of any of the foregoing, are to be granted hereunder to Participants; 
  
 (c)    to determine the number of shares of Stock to be covered by
each award granted hereunder; 
  
 (d)    to determine
the terms and conditions, not inconsistent with the terms of the Plan, of each award granted hereunder (including, but not limited to, (x) the restrictions applicable to awards of Restricted Stock or Deferred Stock and the conditions under which
restrictions applicable to such awards of Restricted Stock or Deferred Stock shall lapse, and (y) the performance goals and periods applicable to awards of Performance Shares); 
  
 (e)    to determine the terms and conditions, not inconsistent with the terms of the Plan, which shall govern all
written instruments evidencing Stock Options, Stock Appreciation Rights, awards of Restricted Stock, Deferred Stock or Performance Shares or any combination of the foregoing granted hereunder; and 
  

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 (f)    to reduce the option price of any Stock Option to the then current Fair Market Value if
the Fair Market Value of the Stock covered by such Stock Option has declined since the date such Stock Option was granted. 
  
 The Administrator shall have the authority, in its sole discretion, to adopt, alter and repeal such administrative rules, guidelines and practices governing the
Plan as it shall from time to time deem advisable; to interpret the terms and provisions of the Plan and any award issued under the Plan (and any agreements relating thereto); and to otherwise supervise the administration of the Plan. 
  
 All decisions made by the Administrator pursuant to the provisions of the Plan shall be
final, conclusive and binding on all persons, including the Company and the Participants. 
  
 Section 3.    Stock Subject to Plan. 
  
 The total number of shares of Stock reserved and available for issuance under the Plan shall be 700,000 shares, provided however, that commencing on the first day of the Company’s fiscal year beginning in calendar year 2005, the number
of shares reserved and available for issuance shall be increased by an amount equal to the lesser of (i) 400,000 shares or (ii) one percent (1%) of the number of outstanding shares of Stock on the last day of the immediately preceding fiscal year.
Such shares may consist, in whole or in part, of authorized and unissued shares or treasury shares. The aggregate number of shares of Stock as to which Stock Options, Stock Appreciation Rights, and awards of Restricted Stock, Deferred Stock and
Performance Shares may be granted to any Participant during any calendar year may not, subject to adjustment as provided in this Section 3, exceed 500,000 shares of Stock reserved for the purposes of the Plan. 
  
 To the extent that (i) a Stock Option expires or is otherwise terminated without being
exercised, or (ii) any shares of Stock subject to any award of Restricted Stock, Deferred Stock or Performance Shares granted hereunder are forfeited, such shares of Stock shall again be available for issuance in connection with future awards
granted under the Plan. If any shares of Stock have been pledged as collateral for indebtedness incurred by a Participant in connection with the exercise of a Stock Option and such shares of Stock are returned to the Company in satisfaction of such
indebtedness, such shares of Stock shall again be available for issuance in connection with future awards granted under the Plan. 
  
 In the event of any merger, reorganization, consolidation, recapitalization, stock dividend, stock split or other change in corporate structure affecting the Stock,
an equitable substitution or proportionate adjustment shall be made in (i) the aggregate number of shares of Stock reserved for issuance under the Plan and the maximum number of shares of Stock that may be granted to any Participant in any calendar
year, (ii) the kind, number and option price of shares of Stock subject to outstanding Stock Options and Stock Appreciation Rights granted under the Plan, and (iii) the kind, number and purchase price of shares of Stock subject to outstanding awards
of Restricted Stock, Deferred Stock and Performance Shares granted under the Plan, in each case as may be 
  

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 determined by the Administrator, in its sole discretion. Such other substitutions or adjustments shall be made as may be determined
by the Administrator, in its sole discretion. An adjusted option price shall also be used to determine the amount payable by the Company upon the exercise of any Stock Appreciation Right related to any Stock Option. In connection with any event
described in this paragraph, the Administrator may provide, in its sole discretion, for the cancellation of any outstanding awards and payment in cash or other property therefor. 
  
 Section 4.    Eligibility. 
  
 Eligible Recipients shall be eligible to be granted Stock Options, Stock Appreciation Rights, awards of Restricted Stock, Deferred Stock or Performance Shares or
any combination of the foregoing hereunder. The Participants under the Plan shall be selected from time to time by the Administrator, in its sole discretion, from among the Eligible Recipients, and the Administrator shall determine, in its sole
discretion, the number of shares of Stock covered by each such award. 
  
 Section
5.    Stock Options. 
  
 Stock Options may be
granted alone or in addition to other awards granted under the Plan. Any Stock Option granted under the Plan shall be in such form as the Administrator may from time to time approve, and the provisions of Stock Option awards need not be the same
with respect to each Participant. Participants who are granted Stock Options shall enter into a subscription and/or award agreement with the Company, in such form as the Administrator shall determine, which agreement shall set forth, among other
things, the option price of the Stock Option, the term of the Stock Option and provisions regarding exercisability of the Stock Option granted thereunder. 
  
 The Stock Options granted under the Plan may be of two types: (i) Incentive Stock Options and (ii) Non-Qualified Stock Options. 
  
 The Administrator shall have the authority to grant to any officer or employee of the
Company or of any Parent or Subsidiary (including directors who are also officers of the Company) Incentive Stock Options, Non-Qualified Stock Options, or both types of Stock Options (in each case with or without Stock Appreciation Rights).
Directors who are not also officers of the Company or of any Parent or Subsidiary, consultants or advisors to the Company or to any Parent or Subsidiary may only be granted Non-Qualified Stock Options (with or without Stock Appreciation Rights). To
the extent that any Stock Option does not qualify as an Incentive Stock Option, it shall constitute a separate Non-Qualified Stock Option. More than one Stock Option may be granted to the same Participant and be outstanding concurrently hereunder.

  
 Stock Options granted under the Plan shall be subject to the following
terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Administrator shall deem desirable: 
  
 (a)    Option Price. The option price per share of Stock purchasable under a Stock Option shall be
determined by the Administrator in its sole discretion at the 
  

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 time of grant but shall not, (i) in the case of Incentive Stock Options, be less than 100% of the Fair Market Value of the Stock on
such date, (ii) in the case of Non-Qualified Stock Options intended to qualify as “performance-based compensation” within the meaning of Section 162(m) of the Code, be less than 100% of the Fair Market Value of the Stock on such date and
(iii) in any event, be less than the par value (if any) of the Stock. If a Participant owns or is deemed to own (by reason of the attribution rules applicable under Section 424(d) of the Code) more than 10% of the combined voting power of all
classes of stock of the Company or of any Parent or Subsidiary and an Incentive Stock Option is granted to such Participant, the option price of such Incentive Stock Option (to the extent required at the time of grant by the Code shall be no less
than 110% of the Fair Market Value of the Stock on the date such Incentive Stock Option is granted. 
  
 (b)    Option Term. The term of each Stock Option shall be fixed by the Administrator, but no Stock Option shall be exercisable more than
ten years after the date such Stock Option is granted; provided, however, that if an employee owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than 10% of the combined voting power of all
classes of stock of the Company or of any Parent or Subsidiary and an Incentive Stock Option is granted to such employee, the term of such Incentive Stock Option (to the extent required by the Code at the time of grant) shall be no more than five
years from the date of grant. 
  
 (c) Exercisability. Stock Options
shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Administrator at or after the time of grant. The Administrator may provide at the time of grant or any time thereafter, in its sole
discretion, that any Stock Option shall be exercisable with respect to unvested shares of Stock, provided that Optionee enters into a form of restricted stock purchase agreement approved by the Administrator. The Administrator may provide at the
time of grant, in its sole discretion, that any Stock Option shall be exercisable only in installments, and the Administrator may waive such installment exercise provisions at any time, in whole or in part, based on such factors as the Administrator
may determine, in its sole discretion. 
  
 (d) Method of Exercise.
Subject to paragraph (c) of this Section 5, Stock Options may be exercised in whole or in part at any time during the option period, by giving written notice of exercise to the Company specifying the number of shares of Stock to be purchased,
accompanied by payment in full of the purchase price in cash or its equivalent, as determined by the Administrator. As determined by the Administrator, in its sole discretion, payment in whole or in part may also be made (i) by means of any cashless
exercise procedure approved by the Administrator (to the extent permitted by applicable law), (ii) in the form of unrestricted Stock already owned by the Participant which, (x) in the case of unrestricted Stock acquired upon exercise of an option,
have been owned by the Participant for more than six months on the date of surrender, and (y) has a Fair Market Value on the date of surrender equal to the aggregate option price of the Stock as to which such Stock Option shall be exercised and the
minimum statutory withholding taxes with respect thereto, (iii) any other form of consideration approved by the Administrator and permitted by applicable law or (iv) any combination of the 
  

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 foregoing. A Participant shall generally have the rights to dividends and any other rights of a stockholder with respect to the
Stock subject to the Stock Option only after the Participant has given written notice of exercise, has paid in full for such shares, and, if requested, has given the representation described in paragraph (b) of Section 10 below. 
  
 Notwithstanding anything to the contrary contained herein, a Stock Option may not be
exercised for a fraction of a share of Stock. 
  
 The Administrator may
require the surrender of all or a portion of any Stock Option granted under the Plan as a condition precedent to the grant of a new Stock Option. Subject to the provisions of the Plan, such new Stock Option shall be exercisable at the price, during
such period and on such other terms and conditions as are specified by the Administrator at the time the new Stock Option is granted. Consistent with the provisions of Section 162(m), to the extent applicable, upon their surrender, Stock Options
shall be canceled and the shares of Stock previously subject to such canceled Stock Options shall again be available for future grants of Stock Options and other awards hereunder. 
  
 (e)    Non-Transferability of Options. Except under the laws of descent and distribution or as otherwise
permitted by the Administrator, the Participant shall not be permitted to sell, transfer, pledge or assign any Option, and all Options shall be exercisable, during the Participant’s lifetime, only by the Participant; provided, however, that the
Participant shall be permitted to transfer one or more Non-Qualified Stock Options to a trust controlled by the Participant during the Participant’s lifetime for estate planning purposes. 
  
 (f)    Termination of Employment or Service. If a
Participant’s employment with or service as a director, consultant or advisor to the Company or to any Parent or Subsidiary terminates by reason of his or her death, Disability or for any other reason, the Stock Option may thereafter be
exercised to the extent provided in the agreement evidencing such Stock Option, or as otherwise determined by the Administrator. In the absence of a specified time in the agreement evidencing such Stock Option, the Stock Option shall remain
exercisable for a period of thirty (30) days (six (6) months in the event of a Participant’s death or Disability) following the Participant’s termination of employment or service with the Company or any Parent or Subsidiary. If, on the
date of termination, the Participant is not vested as to his or her entire Stock Option, the shares of Stock covered by the unvested portion of the Stock Option shall revert to the Plan. If, after termination, the Participant does not exercise his
or her Stock Option within the time specified by the Administrator, the Stock Option shall terminate, and the shares of Stock covered by such Stock Option shall revert to the Plan. 
  
 Annual Limit on Incentive Stock Options. To the extent that the aggregate Fair Market Value (determined as of the date the
Incentive Stock Option is granted) of shares of Stock with respect to which Incentive Stock Options granted to a Participant under this Plan and all other option plans of the Company or of any Parent or Subsidiary become exercisable for the first
time by the Participant during any calendar year exceeds $100,000 (as determined in accordance with Section 422(d) of the Code), the portion of 
  

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 such Incentive Stock Options in excess of $100,000 shall be treated as Non-Qualified Stock Options. 
  
 Section 6.    Stock Appreciation Rights. 
  
 Stock Appreciation Rights may be granted either alone (“Free Standing
Rights”) or in conjunction with all or part of any Stock Option granted under the Plan (“Related Rights”). In the case of a Non-Qualified Stock Option, Related Rights may be granted either at or after the time of the grant of such
Stock Option. In the case of an Incentive Stock Option, Related Rights may be granted only at the time of the grant of the Incentive Stock Option. The Administrator shall determine the Eligible Recipients to whom, and the time or times at which,
grants of Stock Appreciation Rights shall be made; the number of shares of Stock to be awarded, the exercise price, and all other conditions of Stock Appreciation Rights. The provisions of Stock Appreciation Rights need not be the same with respect
to each Participant. 
  
 Stock Appreciation Rights granted under the Plan
shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Administrator shall deem desirable: 
  
 (a)    Awards. The prospective recipient of a Stock
Appreciation Right shall not have any rights with respect to such award, unless and until such recipient has executed an agreement evidencing the award (a “Stock Appreciation Right Agreement”) and delivered a fully executed copy thereof to
the Company, within a period of sixty days (or such other period as the Administrator may specify) after the award date. Participants who are granted Stock Appreciation Rights shall have no rights as stockholders of the Company with respect to the
grant or exercise of such rights. 
  
 (b)    Exercisability. 
  
         (i)    Stock Appreciation Rights that are Free Standing Rights (“Free Standing Stock Appreciation Rights”) shall be exercisable at such time or times and subject
to such terms and conditions as shall be determined by the Administrator at or after grant; provided, however, that no Free Standing Stock Appreciation Right shall be exercisable during the first six months of its term, except that
this additional limitation shall not apply in the event of a Participant’s death or Disability prior to the expiration of such six-month period. 
  
         (ii)    Stock Appreciation Rights that are Related Rights (“Related Stock Appreciation
Rights”) shall be exercisable only at such time or times and to the extent that the Stock Options to which they relate shall be exercisable in accordance with the provisions of Section 5 above and this Section 6 of the Plan; provided,
however, that a Related Stock Appreciation Right granted in connection with an Incentive Stock Option shall be exercisable only if and when the Fair Market Value of the Stock subject to the Incentive Stock Option exceeds the option price of
such Stock Option; provided, further, that no Related Stock Appreciation Right shall be exercisable during the first six months of its term, except that this additional limitation shall not apply 
  

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 in the event of a Participant’s death or Disability prior to the expiration of such six-month period. 
  
 (c)    Payment Upon Exercise. 
  
         (i)    Upon the
exercise of a Free Standing Stock Appreciation Right, the Participant shall be entitled to receive up to, but not more than, an amount in cash or that number of shares of Stock (or any combination of cash and shares of Stock) equal in value to the
excess of the Fair Market Value of one share of Stock as of the date of exercise over the price per share specified in the Free Standing Stock Appreciation Right (which price shall be no less than 100% of the Fair Market Value of the Stock on the
date of grant) multiplied by the number of shares of Stock in respect of which the Free Standing Stock Appreciation Right is being exercised, with the Administrator having the right to determine the form of payment. 
  
         (ii)    A Related
Right may be exercised by a Participant by surrendering the applicable portion of the related Stock Option. Upon such exercise and surrender, the Participant shall be entitled to receive up to, but not more than, an amount in cash or that number of
shares of Stock (or any combination of cash and shares of Stock) equal in value to the excess of the Fair Market Value of one share of Stock as of the date of exercise over the option price per share specified in the related Stock Option multiplied
by the number of shares of Stock in respect of which the Related Stock Appreciation Right is being exercised, with the Administrator having the right to determine the form of payment. Stock Options which have been so surrendered, in whole or in
part, shall no longer be exercisable to the extent the Related Rights have been so exercised. 
  
 (d)    Non-Transferability. 
  
         (i)    Free Standing Stock Appreciation Rights shall be transferable only when and to the extent that a Stock Option would be transferable under Section 5 of the Plan.

  
         (ii)    Related Stock Appreciation Rights shall be transferable only when and to the extent that the underlying Stock Option would be transferable under Section 5 of the
Plan. 
  
 (e)    Termination of Employment or
Service. 
  
         (i)    In the event of the termination of employment or service of a Participant who has been granted one or more Free Standing Stock Appreciation Rights, such rights shall
be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Administrator at or after grant. 
  
         (ii)    In the event of the termination of employment or service of a Participant who has been
granted one or more Related Stock Appreciation Rights, such rights shall be exercisable at such time or times and subject to such terms and conditions as set forth in the related Stock Options. 
  

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 (f)    Term. 
  
         (i)    The term of each Free Standing Stock Appreciation Right
shall be fixed by the Administrator, but no Free Standing Stock Appreciation Right shall be exercisable more than ten years after the date such right is granted. 
  
         (ii)    The term of each Related Stock Appreciation Right shall be
the term of the Stock Option to which it relates, but no Related Stock Appreciation Right shall be exercisable more than ten years after the date such right is granted. 
  
 Section 7.    Restricted Stock, Deferred Stock and Performance Shares. 
  
 Awards of Restricted Stock, Deferred Stock or Performance Shares may be issued either
alone or in addition to other awards granted under the Plan. The Administrator shall determine the Eligible Recipients to whom, and the time or times at which, awards of Restricted Stock, Deferred Stock or Performance Shares shall be made; the
number of shares to be awarded; the price, if any, to be paid by the Participant for the acquisition of Restricted Stock, Deferred Stock or Performance Shares; the Restricted Period (as defined in paragraph (b) of this Section 7) applicable to
awards of Restricted Stock or Deferred Stock; the performance objectives applicable to awards of Deferred Stock or Performance Shares; and all other conditions of the awards of Restricted Stock, Deferred Stock and Performance Shares. Subject to the
requirements of Section 162(m) of the Code, as applicable, the Administrator may also condition the grant of the award of Restricted Stock, Deferred Stock or Performance Shares upon the exercise of Stock Options, or upon such other criteria as the
Administrator may determine, in its sole discretion. The provisions of the awards of Restricted Stock, Deferred Stock or Performance Shares need not be the same with respect to each Participant. 
  
 (a)    Awards and Certificates. The prospective recipient of
awards of Restricted Stock, Deferred Stock or Performance Shares shall not have any rights with respect to any such award, unless and until such recipient has executed an agreement evidencing the award (a “Restricted Stock Award
Agreement,” “Deferred Stock Award Agreement” or “Performance Shares Award Agreement,” as appropriate) and delivered a fully executed copy thereof to the Company, within a period of sixty days (or such other period as the
Administrator may specify) after the award date. Except as otherwise provided below in this Section 7(b), (i) each Participant who is granted an award of Restricted Stock or Performance Shares shall be issued a stock certificate in respect of such
shares of Restricted Stock or Performance Shares; and (ii) such certificate shall be registered in the name of the Participant, and shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to any such award.

  
 The Company may require that the stock certificates evidencing
Restricted Stock or Performance Shares granted hereunder be held in the custody of the Company until the restrictions thereon shall have lapsed, and that, as a condition of any award of Restricted Stock or Performance Shares, the Participant shall
have delivered a stock power, endorsed in blank, relating to the Stock covered by such award. 
  

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 With respect to awards of Deferred Stock, at the expiration of the Restricted Period, stock certificates in respect
of such shares of Deferred Stock shall be delivered to the Participant, or his legal representative, in a number equal to the number of shares of Stock covered by the Deferred Stock award. 
  
 (b)    Restrictions and Conditions. The awards of Restricted
Stock, Deferred Stock and Performance Shares granted pursuant to this Section 7 shall be subject to the following restrictions and conditions: 
  
         (i)    Subject to the provisions of the Plan and the Restricted Stock Award Agreement, Deferred
Stock Award Agreement or Performance Shares Award Agreement, as appropriate, governing any such award, during such period as may be set by the Administrator commencing on the date of grant (the “Restricted Period”), the Participant shall
not be permitted to sell, transfer, pledge or assign shares of Restricted Stock, Deferred Stock or Performance Shares awarded under the Plan; provided, however, that the Administrator may, in its sole discretion, provide for the lapse
of such restrictions in installments and may accelerate or waive such restrictions in whole or in part based on such factors and such circumstances as the Administrator may determine, in its sole discretion, including, but not limited to, the
attainment of certain performance related goals, the Participant’s termination of employment or service as a director, consultant or advisor to the Company or any Parent or Subsidiary, the Participant’s death or Disability or the
occurrence of a “change in control” as defined in the Restricted Stock Award Agreement, Deferred Stock Award Agreement or Performance Shares Award Agreement, as appropriate, evidencing such award. 
  
         (ii)    Except as
provided in paragraph (b)(i) of this Section 7, the Participant shall generally have the rights of a stockholder of the Company with respect to Restricted Stock or Performance Shares during the Restricted Period. The Participant shall generally not
have the rights of a stockholder with respect to Stock subject to awards of Deferred Stock during the Restricted Period; provided, however, that dividends declared during the Restricted Period with respect to the number of shares of
Stock covered by Deferred Stock shall be paid to the Participant. Certificates for shares of unrestricted Stock shall be delivered to the Participant promptly after, and only after, the Restricted Period shall expire without forfeiture in respect of
such awards of Restricted Stock, Deferred Stock or Performance Shares except as the Administrator, in its sole discretion, shall otherwise determine. 
  
         (iii)    The rights of Participants granted awards of Restricted Stock, Deferred Stock or
Performance Shares upon termination of employment or service as a director, consultant or advisor to the Company or to any Parent or Subsidiary terminates for any reason during the Restricted Period shall be set forth in the Restricted Stock Award
Agreement, Deferred Stock Award Agreement or Performance Shares Award Agreement, as appropriate, governing such awards. 
  

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 Section 8.    Amendment and Termination. 
  
 The Board may amend, alter or discontinue the Plan, but no amendment, alteration, or discontinuation shall be made that would impair
the rights of a Participant under any award theretofore granted without such Participant’s consent, or that, without the approval of the stockholders (as described below), would: 
  
 (a)    except as provided in Section 3 of the Plan, increase the total number of shares of Stock reserved for
issuance under the Plan; 
  
 (b)    change the class of
officers, directors, employees, consultants and advisors eligible to participate in the Plan; or 
  
 (c)    extend the maximum option period under paragraph (b) of Section 5 of the Plan. 
  
 Notwithstanding the foregoing, stockholder approval under this Section 8 shall only be
required at such time and under such circumstances as stockholder approval would be required under Sections 162(m) and 422 of the Code, stock exchange rules or other applicable law or regulation with respect to any material amendment to an employee
benefit plan of the Company. 
  
 The Administrator may amend the terms of
any award theretofore granted, prospectively or retroactively, but, subject to Section 3 of Plan, no such amendment shall impair the rights of any Participant without his or her consent. 
  
 Section 9.    Unfunded Status of Plan. 
  
 The Plan is intended to constitute an “unfunded” plan for incentive compensation. With respect to any payments not yet made
to a Participant by the Company, nothing contained herein shall give any such Participant any rights that are greater than those of a general creditor of the Company. 
  
 Section 10.    General Provisions. 
  
 (a)    Shares of Stock shall not be issued pursuant to the exercise of any award granted hereunder unless the
exercise of such award and the issuance and delivery of such shares of Stock pursuant thereto shall comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act and the
requirements of any stock exchange upon which the Stock may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance. 
  
 (b)    The Administrator may require each person acquiring shares of Stock hereunder to represent to and agree
with the Company in writing that such person is acquiring the shares of Stock without a view to distribution thereof. The certificates for such shares of Stock may include any legend which the Administrator deems appropriate to reflect any
restrictions on transfer. 
  

 12 

 All certificates for shares of Stock delivered under the Plan shall be subject to such stop-transfer orders and
other restrictions as the Administrator may deem advisable under the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which the Stock is then listed, and any applicable Federal or state
securities law, and the Administrator may cause a legend or legends to be placed on any such certificates to make appropriate reference to such restrictions. 
  
 (c)    Nothing contained in the Plan shall prevent the Board from adopting other or additional compensation arrangements, subject to stockholder
approval, if such approval is required; and such arrangements may be either generally applicable or applicable only in specific cases. The adoption of the Plan shall not confer upon any Eligible Recipient any right to continued employment or service
with the Company or any Parent or Subsidiary, as the case may be, nor shall it interfere in any way with the right of the Company or any Parent or Subsidiary to terminate the employment or service of any of its Eligible Recipients at any time.

  
 (d)    Each Participant shall, no later than the
date as of which the value of an award first becomes includible in the gross income of the Participant for Federal income tax purposes, pay to the Company, or make arrangements satisfactory to the Administrator regarding payment of, any Federal,
state, or local taxes of any kind required by law to be withheld with respect to such award. The obligations of the Company under the Plan shall be conditional on the making of such payments or arrangements, and the Company shall, to the extent
permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the Participant. 
  
 (e)    No member of the Board or the Administrator, nor any officer or employee of the Company acting on behalf of the Board or the
Administrator, shall be personally liable for any action, determination, or interpretation taken or made in good faith with respect to the Plan, and all members of the Board or the Administrator and each and any officer or employee of the Company
acting on their behalf shall, to the extent permitted by law, be fully indemnified and protected by the Company in respect of any such action, determination or interpretation. 
  
 Section 11.    Stockholder Approval; Effective Date of Plan. 
  
 (a)    The grant of any award hereunder shall be contingent upon stockholder approval of the Plan being obtained
within 12 months before or after the date the Board adopts the Plan. 
  
 (b)    Subject to the approval of the Plan by the stockholders of the Company within twelve (12) months before or after the date the Plan is adopted by the Board, the Plan shall be effective as of the first trading day
on or after the date on which the Securities and Exchange Commission declares the Company’s Registration Statement effective (the “Effective Date”). 
  

 13 

 Section 12.    Term of Plan. 
  
 No Stock Option, Stock Appreciation Right, or awards of Restricted Stock, Deferred Stock or Performance Shares shall be granted
pursuant to the Plan on or after the tenth anniversary of the Effective Date, but awards theretofore granted may extend beyond that date. 
  

 14Class A (2004-6) Terms Document dated August 31, 2004

 Exhibit 4.01 
  

 BANK ONE ISSUANCE TRUST 
 as Issuer 
  
 CLASS A(2004-6) TERMS DOCUMENT 
 dated as of August 31, 2004 
  
 to 
  
 ONESERIES INDENTURE SUPPLEMENT 
 dated as of May 1, 2002 
  
 to

  
 INDENTURE 
  
 dated as of May 1, 2002 
  
 WELLS FARGO BANK, NATIONAL ASSOCIATION 
 as Indenture Trustee and Collateral Agent 
  

  

 THIS CLASS A(2004-6) TERMS DOCUMENT (this “Terms Document”), by and between BANK ONE
ISSUANCE TRUST, a statutory trust created under the laws of the State of Delaware (the “Issuer”), having its principal office at c/o Wilmington Trust Company, 1100 North Market Street, Wilmington, Delaware 19890-1600, and WELLS
FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as indenture trustee (the “Indenture Trustee”) and collateral agent (the “Collateral Agent”), is made and entered into as of August 31, 2004. 
  
 Pursuant to this Terms Document, the Issuer and the Indenture Trustee shall
create a new Tranche of ONEseries Class A Notes and shall specify the principal terms thereof. 
  
 ARTICLE I 
  
 Definitions and Other
Provisions of General Application 
  
 Section 1.1
Definitions. For all purposes of this Terms Document, except as otherwise expressly provided or unless the context otherwise requires: 
  
 (1) the terms defined in this Article have the meanings assigned to them in this Article, and include the plural as well as the singular;

  
 (2) all other terms used herein which are
defined in the Indenture Supplement, the Indenture or the Asset Pool Supplement, either directly or by reference therein, have the meanings assigned to them therein; 
  
 (3) all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with
generally accepted accounting principles and, except as otherwise herein expressly provided, the term “generally accepted accounting principles” with respect to any computation required or permitted hereunder means such accounting
principles as are generally accepted in the United States of America at the date of such computation; 
  
 (4) all references in this Terms Document to designated “Articles,” “Sections” and other subdivisions are to the
designated Articles, Sections and other subdivisions of this Terms Document as originally executed; 
  
 (5) the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Terms
Document as a whole and not to any particular Article, Section or other subdivision; 
  

 (6) in the event that any term or provision contained herein shall conflict with or be
inconsistent with any term or provision contained in the Indenture Supplement, the Indenture or the Asset Pool Supplement, the terms and provisions of this Terms Document shall be controlling; 
  
 (7) each capitalized term defined herein shall relate only
to the Class A(2004-6) Notes and no other Tranche of ONEseries Notes issued by the Issuer; and 
  
 (8) “including” and words of similar import will be deemed to be followed by “without limitation.” 
  
 “Asset Pool Supplement” means the Asset Pool One Supplement
to the Indenture, dated as of May 1, 2002 among the Issuer, the Indenture Trustee and the Collateral Agent, as amended, supplemented, restated or otherwise modified from time to time. 
  
 “Base Rate” has the meaning specified in the Indenture Supplement. 
  
 “BDL” means Banque de Luxembourg. 
  
 “Class A(2004-6) Adverse Event” means the occurrence of any
of the following: (a) an Early Amortization Event with respect to the Class A(2004-6) Notes, (b) an Event of Default and acceleration of the Class A(2004-6) Notes, (c) the Class A Usage of the Class B Required Subordinated Amount for the Class
A(2004-6) Notes becomes greater than zero or (d) the Class A Usage of the Class C Required Subordinated Amount for the Class A(2004-6) Notes becomes greater than zero. 
  
 “Class A(2004-6) Note” means any Note, substantially in the form set forth in Exhibit A-1 to the Indenture
Supplement, designated therein as a Class A(2004-6) Note and duly executed and authenticated in accordance with the Indenture. 
  
 “Class A(2004-6) Noteholder” means a Person in whose name a Class A(2004-6) Note is registered in the Note Register. 
  
 “Class A(2004-6) Termination Date” means the earliest to
occur of (a) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the Class A(2004-6) Notes is paid in full, (b) the Legal Maturity Date and (c) the date on which the Indenture is discharged and satisfied pursuant to
Article V thereof. 
  
 “Class A Required Subordinated
Amount of Class B Notes” is defined in Section 2.2(a). 
  

 2 

 “Class A Required Subordinated Amount of Class C Notes” is defined in Section 2.2(b).

  
 “Controlled Accumulation Amount” means
$45,833,333.33; provided, however, if the Accumulation Period Length is determined to be less than twelve months pursuant to Section 3.12(b)(ii) of the Indenture Supplement, the Controlled Accumulation Amount for any Note Transfer Date
with respect to the Class A(2004-6) Notes will be the amount specified in the definition of “Controlled Accumulation Amount” in the Indenture Supplement. 
  
 “Excess Spread Percentage” has the meaning specified in the Indenture Supplement. 
  
 “Indenture” means the Indenture, dated as of May 1, 2002,
between the Issuer and the Indenture Trustee, as the same may be amended, supplemented, restated or otherwise modified from time to time. 
  
 “Indenture Supplement” means the ONEseries Indenture Supplement, dated as of May 1, 2002, between the Issuer, the Indenture Trustee and
the Collateral Agent, as the same may be amended, supplemented, restated or otherwise modified from time to time. 
  
 “Initial Dollar Principal Amount” means $550,000,000. 
  
 “Interest Payment Date” means September 15, 2004 and the 15th day of each month thereafter, or if such 15th day is not a Business Day, the next succeeding Business Day. 
  
 “Interest Period” means, with respect to any Interest Payment Date, the period from and including the previous Interest Payment Date (or in the case of the initial Interest Payment Date, from and
including the Issuance Date) to but excluding such Interest Payment Date. 
  
 “Issuance Date” means August 31, 2004. 
  
 “Legal Maturity Date” means April 16, 2012 
  
 “Note Interest Rate” means a rate per annum equal to 3.94%. 
  
 “Paying Agent” means Wells Fargo Bank, National Association. 
  
 “Portfolio Yield” has the meaning specified in the Indenture Supplement. 
  
 “Predecessor Note” means, with respect to any particular
Note, every previous Note evidencing all or a portion of the same debt as that evidenced by such particular Note; and, for the purpose of this definition, any Note authenticated and delivered under Section 3.06 of the 

  

 3 

 
Indenture in lieu of a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same debt as the mutilated, lost, destroyed or stolen Note.

  
 “Record Date” means, for any Note Transfer
Date, the last Business Day of the preceding Monthly Period. 
  
 “Scheduled Principal Payment Date” means August 17, 2009. 
  
 “Stated Principal Amount” means $550,000,000. 
  
 “Tranche” has the meaning specified in the Indenture. 
  
 Section 1.2 Governing Law. THIS TERMS DOCUMENT WILL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY 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. 
  
 Section 1.3 Counterparts. This Terms Document may be executed in any number of counterparts, each of which so
executed will be deemed to be an original, but all such counterparts will together constitute but one and the same instrument. 
  
 Section 1.4 Ratification of Indenture and Indenture Supplement. As supplemented by this Terms Document, each of the Indenture, the Asset Pool
Supplement and the Indenture Supplement is in all respects ratified and confirmed and the Indenture as so supplemented by the Asset Pool Supplement and the Indenture Supplement as so supplemented by this Terms Document shall be read, taken and
construed as one and the same instrument. 
  
 [END OF ARTICLE I]

  

 4 

 ARTICLE II 
  
 The Class A(2004-6) Notes 
  
 Section 1.5 Creation and Designation. There is hereby created a Tranche of ONEseries Class A Notes to be issued pursuant to the Indenture and the
Indenture Supplement to be known as the “ONEseries Class A(2004-6) Notes.” 
  
 Section 1.6 Specification of Required Subordinated Amount and Other Terms. 
  
 (1) For the Class A(2004-6) Notes for any date of determination, the Class A Required Subordinated Amount of Class B Notes will be an amount equal to
8.47953% of (i) prior to the occurrence of a Class A(2004-6) Adverse Event, the Adjusted Outstanding Dollar Principal Amount of the Class A(2004-6) Notes on such date of determination or (ii) on and after the date on which a Class A(2004-6) Adverse
Event shall have occurred, the greater of (1) the Adjusted Outstanding Dollar Principal Amount of the Class A(2004-6) Notes on such date of determination and (2) the Adjusted Outstanding Dollar Principal Amount of the Class A(2004-6) Notes as of the
close of business on the day immediately preceding the date on which such Class A(2004-6) Adverse Event shall have occurred. 
  
 (2) For the Class A(2004-6) Notes for any date of determination, the Class A Required Subordinated Amount of Class C Notes will be an amount equal to
8.47953% of (i) prior to the occurrence of a Class A(2004-6) Adverse Event, the Adjusted Outstanding Dollar Principal Amount of the Class A(2004-6) Notes on such date or (ii) on and after the date on which a Class A(2004-6) Adverse Event shall have
occurred, the greater of (1) the Adjusted Outstanding Dollar Principal Amount of the Class A(2004-6) Notes on such date of determination and (2) Adjusted Outstanding Dollar Principal Amount of the Class A(2004-6) Notes as of the close of business on
the day immediately preceding the date on which such Class A(2004-6) Adverse Event shall have occurred. 
  
 (3) The Issuer may change the percentages or the formulas set forth in either clause (a) or (b) above without the consent of any Noteholder so long as the
Issuer has (i) received written confirmation from each Note Rating Agency that has rated any Outstanding Class A(2004-6) Notes that the change in either of such percentages or formulas, as applicable, will not result in a Ratings Effect with respect
to any Outstanding Class A(2004-6) Notes and (ii) delivered to the Indenture Trustee and the Note Rating Agencies a Master Trust Tax Opinion and an Issuer Tax Opinion. 
  
 Section 1.7 Interest Payment. 
  
 (1) For each Interest Payment Date, the amount of interest due with respect to the Class A(2004-6) Notes shall be an amount
equal to one-twelfth the product of (i) the Note Interest Rate, times, (ii) the Outstanding Dollar Principal Amount of the Class A(2004-6) Notes 

  

 5 

 
determined as of the close of business on the Interest Payment Date preceding the related Note Transfer Date for the Class A(2004-6) Notes; provided,
however, that for the first Interest Payment Date the amount of interest due with respect to the Class A(2004-6) Notes is $902,916.66. Interest on the Class A(2004-6) Notes will be calculated on the basis of a 360-day year consisting of
twelve 30-day months. 
  
 (2) Pursuant to Section 3.03 of the
Indenture Supplement, on each Note Transfer Date with respect to the Class A(2004-6) Notes, the Indenture Trustee shall deposit into the Class A(2004-6) Interest Funding Sub-Account the portion of ONEseries Available Finance Charge Collections
allocable to the Class A(2004-6) Notes. 
  
 Section 1.8
[Reserved]. 
  
 Section 1.9 Payments of Interest and
Principal. 
  
 (1) Any installment of interest or principal
payable on any Class A(2004-6) Note which is punctually paid or duly provided for by the Issuer and the Indenture Trustee on the applicable Interest Payment Date or Principal Payment Date shall be paid by the Paying Agent to the Person in whose name
such Class A(2004-6) Note (or one or more Predecessor Notes) is registered on the Record Date, by wire transfer of immediately available funds to such Person’s account as has been designated by written instructions received by the Paying Agent
from such Person not later than the close of business on the third Business Day preceding the date of payment or, if no such account has been so designated, by check mailed first-class, postage prepaid to such Person’s address as it appears on
the Note Register on such Record Date, except that with respect to Notes registered on the Record Date in the name of the nominee of Cede & Co., payment shall be made by wire transfer in immediately available funds to the account designated by
such nominee. 
  
 (2) The right of the Class A(2004-6) Noteholders
to receive payments from the Issuer will terminate on the first Business Day following the Class A(2004-6) Termination Date. 
  
 Section 1.10 Form of Delivery of Class A(2004-6) Notes; Depository; Denominations. 
  
 (1) The Class A(2004-6) Notes shall be delivered in the form of a global Registered Note as provided in Sections 2.02 and
3.01(i) of the Indenture, respectively. 
  
 (2) The Depository for
the Class A(2004-6) Notes shall be The Depository Trust Company, and the Class A(2004-6) Notes shall initially be registered in the name of Cede & Co., its nominee. 
  
 (3) The Class A(2004-6) Notes will be issued in minimum denominations of $1,000 and integral multiples of that amount.

  

 6 

 Section 1.11 Delivery and Payment for the Class A(2004-6) Notes. The Issuer shall execute and
deliver the Class A(2004-6) Notes to the Indenture Trustee for authentication, and the Indenture Trustee shall deliver the Class A(2004-6) Notes when authenticated, each in accordance with Section 3.03 of the Indenture. 
  
 Section 1.12 Supplemental Indenture. The Issuer may enter into a
supplemental indenture with respect to the Class A(2004-6) Notes as provided in Section 9.01 of the Indenture, provided, however, that any supplemental indenture which provides for an additional or alternative form of credit
enhancement for the Class A(2004-6) Notes shall, in addition to the requirements set forth in Section 9.01 of the Indenture, require confirmation from the Note Rating Agencies that have rated any Outstanding Notes of the ONEseries that such change
in credit enhancement will not result in a Ratings Effect with respect to any Outstanding Notes of the ONEseries. 
  
 Section 1.13 Appointment of co-Paying Agent and co-Transfer Agent. BDL is appointed as co-paying agent and as co-transfer agent in Luxembourg with
respect to the Class A(2004-6) Notes for so long as the Class A(2004-6) Notes are listed on the Luxembourg Stock Exchange. Any reference in this Terms Document, the Indenture Supplement, the Asset Pool Supplement and the Indenture to the Paying
Agent or the Transfer Agent shall be deemed to include BDL as co-paying agent or co-transfer agent, as the case may be, unless the context requires otherwise. 
  

[END OF ARTICLE II] 
  

 7 

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

			
	BANK ONE ISSUANCE TRUST
		
	By:	 	BANK ONE, DELAWARE,
NATIONAL ASSOCIATION,
as Beneficiary and not in its individual capacity
		
	By:	 	 /s/ Stephen R. Etherington

	 Name: 
	 	 Stephen R. Etherington

	 Title: 
	 	 Senior Vice President

	
	WELLS FARGO BANK,
NATIONAL ASSOCIATION,
as Indenture Trustee and Collateral Agent
		
	By:	 	/s/ Cheryl C. Zimmerman
	 Name: 
	 	 Cheryl C. Zimmerman, CCTS

	 Title: 
	 	 Assistant Vice President

  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	PAGE

			
	 	  	ARTICLE I Definitions and Other Provisions of General Application	  	 
			
	 Section 1.1
	  	Definitions	  	1
			
	 Section 1.2
	  	Governing Law	  	4
			
	 Section 1.3
	  	Counterparts	  	4
			
	 Section 1.4
	  	Ratification of Indenture and Indenture Supplement	  	4
			
	 	  	ARTICLE II The Class A(2004-6) Notes	  	 
			
	 Section 2.1
	  	Creation and Designation	  	5
			
	 Section 2.2
	  	Specification of Required Subordinated Amount and Other Terms	  	5
			
	 Section 2.3
	  	Interest Payment	  	5
			
	 Section 2.4
	  	[Reserved]	  	6
			
	 Section 2.5
	  	Payments of Interest and Principal	  	6
			
	 Section 2.6
	  	Form of Delivery of Class A(2004-6) Notes; Depository; Denominations	  	6
			
	 Section 2.7
	  	Delivery and Payment for the Class A(2004-6) Notes	  	7
			
	 Section 2.8
	  	Supplemental Indenture	  	7
			
	 Section 2.9
	  	Appointment of co-Paying Agent and co-Transfer Agent	  	7

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