Document:

exv10w1

 

Exhibit 10.1

AMENDMENT

TO

AMENDED AND RESTATED SECURED CONVERTIBLE TERM NOTE

AND

SECURED TERM NOTE

     THIS AMENDMENT TO AMENDED AND RESTATED SECURED CONVERTIBLE TERM NOTE AND SECURED TERM NOTE
(this “Amendment”) is entered into as of November 5, 2007 by and among Laurus Master Fund, Ltd.
(“Laurus”), Valens U.S. SPV I, LLC (“Valens U.S.”), Valens Offshore SPV I, Ltd. (“Valens Offshore”)
and PSource Structured Debt Limited (“PSource” and together with Laurus, Valens U.S. and Valens
Offshore, the “Holders”), and Silicon Mountain Holdings, Inc. (“SM Holdings”), Silicon Mountain
Memory, Incorporated (“Silicon Mountain”) and VCI Systems, Inc. (“VCI”). Laurus, Valens U.S.,
Valens Offshore, PSource, SM Holdings, Silicon Mountain and VCI are sometimes referred to
individually as a “Party” and collectively as the “Parties.”

WITNESSETH:

     WHEREAS, the Parties are parties to that certain Amended and Restated Convertible Term Note,
dated August 28, 2007 (as amended, modified or supplemented from time to time, the “Convertible
Note”), and have agreed to defer a portion of the principal payments under the Convertible Note as
reflected below in exchange for the consideration described below;

     WHEREAS, Laurus, as the holder of the Secured Term Note, dated September 25, 2006 (as amended,
modified or supplemented from time to time, the “Term Note”), Valens U.S., Valens Offshore,
PSource, each as an assignee of the Term Note, and Silicon Mountain and VCI, collectively as the
issuer of the Term Note, and SM Holdings, as the guarantor of the Term Note, have agreed to defer a
portion of the principal payments under the Term Note as reflected below in exchange for the
consideration described below.

     WHEREAS, the Parties desire and intend to amend Section 1.3 of the Convertible Note and
Section 1.3 of the Term Note as reflected below.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Parties hereby agree as follows:

     1. Definitions. Terms used herein and not otherwise defined shall have the meanings
set forth in the Security and Purchase Agreement, dated as of September 25, 2006 by and between
Laurus and Silicon Mountain and VCI as amended, modified or supplemented from time to time, the
“Security Agreement”).

     2. Amendments. The following provisions of the Convertible Note and of the Term Note
shall be modified as indicated as follows and such modification shall be effective as of the date
of this Amendment:

     (a) Amendment to Convertible Note and Term Note. Section 1.3 of the

 

 

Convertible Note and Section 1.3 of the Term Note are hereby amended by inserting the
below sub-paragraph (a) to the end of Section 1.3 of the Convertible Note and Section 1.3 of
the Term Note:

     “(a) Deferred Payments. Notwithstanding the preceding paragraph of
this Section 1.3, during the period commencing on and including November 1, 2007
through April 30, 2008 (the “Deferred Payment Period”), the Companies shall be
required to pay a Monthly Amount on each Amortization Date equal to Twenty Five
Thousand Dollars ($25,000) with the remaining one-half of the Monthly Amount to be
deferred (the “Deferred Amount”). The Deferred Amount shall be amortized over and
paid in equal amounts in addition to each Monthly Amount scheduled on or after May
1, 2008 under this Note (prior to giving effect to this Amendment). As a result,
following the conclusion of the Deferred Payment Period, the Monthly Amount payable
by the Companies to the Holder on each Amortization Date, shall be equal to Fifty
Eight Thousand Eight Hundred Twenty Three and Fifty Cents ($58,823.50). At all
times, the Companies shall continue to pay any accrued and unpaid interest on the
outstanding principal amount and any other unpaid amounts which are then owing under
this Note, the Security Agreement and/or any other Ancillary Agreement.”

     3. Consideration. In consideration and exchange for the above amendments to the
Convertible Note and Term Note, the Companies authorize LV Administrative Services, Inc., an
affiliate of the Holders, to withdraw an aggregate of $30,000 from the Revolving Loan and
distribute it as follows: Eight Thousand Nine Hundred Forty Five Dollars ($8,945.00)_to
Laurus (the “Laurus Payment”), Five Thousand One Hundred Sixty Two and Seventy Three Cents ($
5,162.73) to Valens U.S. (the “Valens US Payment”), Five Thousand One Hundred Dollars ($ 5,100.00)
to Valens Offshore (the “Valens Offshore Payment”) and Ten Thousand Seven Hundred Ninety Two
Dollars ($ 10,792.00) to PSource (the “PSource Payment” and together with the Laurus Payment, the
Valens US Payment and the Valens Offshore Payment, the “Amendment Payment”).

     4. Tax. (a) With respect to the Laurus Payment, the Parties hereto agree that the
fair market value of the Laurus Payment (as reasonably determined by the Parties) received in
consideration of the amendments to the Convertible Note and Term Note is hereby designated as
interest and, accordingly shall be treated as a reduction of the remaining stated principal amount
(which reduced principal amount shall be treated as the issue price) of the Convertible Note and
Term Note for U.S. federal income tax purposes under and pursuant to Treasury Regulations Section
1.1001-3(e)(2)(iii), 1.1273-2(g)2(ii) and 1.1274-2(b)(1). The parties further agree to file all
applicable tax returns in accordance with such characterization and shall not take a position on
any tax return or in any judicial or administrative proceeding that is inconsistent with such
characterization. Notwithstanding the foregoing, nothing contained in this paragraph shall be
deemed to modify or impair in any manner whatsoever the obligations from time to time owing by the
Companies and/or its Subsidiaries to Laurus or its assigns under the Security Agreement, and other
Ancillary Agreements, the Convertible Note and the Term Note.

     (b) With respect to the PSource Payment, the cash payment received in consideration of
the amendments to the Convertible Note and Term Note made by PSource hereunder shall be
treated for U.S. federal income tax purposes as a payment of

 

 

additional interest. The parties further agree to file all applicable tax returns in
accordance with such characterization and shall not take a position on any tax return or in
any judicial or administrative proceeding that is inconsistent with such characterization.
Notwithstanding the foregoing, nothing contained in this paragraph shall or shall be deemed
to modify or impair in any manner whatsoever the Companies and/or its Subsidiaries
obligations from time to time owing to PSource or its assigns under the Security Agreement,
and other Ancillary Agreements, the Convertible Note and the Term Note.

     5. Continued Validity. The Convertible Note and Term Note (including the provisions
of the respective agreements not modified hereby), as modified by this Amendment, shall remain in
full force and effect following the execution of this Amendment.

     6. Governing Law. This Amendment shall be construed and enforced in accordance with
the laws of the State of New York.

     7. Captions. Section captions and headings used in this Amendment are for convenience
only, and shall not affect the construction of this Amendment.

     8. Severability. Whenever possible, each provision of this Amendment shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Amendment shall be prohibited by or invalid under such law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Amendment.

     9. Counterparts. This Amendment may be executed in any number of counterparts and by
the different parties hereto on separate counterparts, and each such counterpart shall be deemed to
be an original, but all such counterparts shall together constitute one and the same agreement.

     10. No Default. Each of SM Holdings, Silicon Mountain and VCI hereby represents and
warrants to Laurus that (i) no Event of Default exists on the date hereof, (ii) on the date hereof,
all representations, warranties and covenants made by each of SM Holdings, Silicon Mountain and VCI
in connection with Security and Purchase Agreement, the Convertible Note, the Term Note and the
Ancillary Agreements related thereto are true, correct and complete and (iii) on the date hereof,
all of the Companies and its Subsidiaries covenant requirements set forth in the Security and
Purchase Agreement and Ancillary Agreements related thereto have been met.

     11. Effectiveness. Each amendment set forth herein shall be effective as of the date
first above written when (i) each of the Parties shall have executed this Amendment and (ii) the
Amendment Payment shall have been paid in accordance with Section 3 above.

[Remainder of Page Intentionally Left Blank]

 

 

IN WITNESS WHEREOF, the parties have executed this Amendment No. to Amended and

Restated Secured Convertible Term Note and Secured Term Note of the date first written above.

	 	 	 	 	 	 	 
	 	 	SILICON MOUNTAIN HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Rudolph (Tré) A. Cates III	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Rudolph (Tré) A. Cates III	 	 
	 

	 	 	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	SILICON MOUNTAIN MEMORY, INCORPORATED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Rudolph (Tré) A. Cates III	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Rudolph (Tré) A. Cates III	 	 
	 

	 	 	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	VCI SYSTEMS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Rudolph (Tré) A. Cates III	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Rudolph (Tré) A. Cates III	 	 
	 

	 	 	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	LAURUS MASTER FUND, LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Scott Bluestein	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Scott Bluestein	 	 
	 

	 	Title:
	 	Authorized Signatory	 	 
	 
	 	 	 	 	 	 
	 	 	VALENS U.S. SPV I, LLC	 	 
	 
	 	 	 	 	 	 
	 	 	By: Valens Capital Management, LLC, its investment

manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Scott Bluestein	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Scott Bluestein	 	 
	 

	 	Title:
	 	Authorized Signatory	 	 

 

 

	 	 	 	 	 	 	 
	 	 	VALENS OFFSHORE SPV I, LTD.	 	 
	 
	 	 	 	 	 	 
	 	 	By: Valens Capital Management, LLC, its investment

manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Scott Bluestein	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Scott Bluestein	 	 
	 

	 	Title:
	 	Authorized Signatory	 	 
	 
	 	 	 	 	 	 
	 	 	PSOURCE STRUCTURED DEBT LIMITED	 	 
	 
	 	 	 	 	 	 
	 	 	By: Laurus Capital Management, LLC, its investment

manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Scott Bluestein	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Scott Bluestein	 	 
	 

	 	Title:
	 	Authorized Signatoryexv10w1

 

EXHIBIT 10.1

SETTLEMENT AGREEMENT

Dated November 29, 2007

by and among

VISA U.S.A. INC.

and

VISA INC.

and

THE TJX COMPANIES, INC.

and

FIFTH THIRD BANK

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	1. DEFINITIONS; CERTAIN RULES OF CONSTRUCTION
	 	 	1	 
	1.1. Definitions
	 	 	1	 
	1.2. Certain Rules of Construction
	 	 	5	 
	 
	 	 	 	 
	2. ACCOUNTING STATEMENT
	 	 	5	 
	 
	 	 	 	 
	3. ALTERNATIVE RECOVERY OFFER
	 	 	5	 
	3.1. Terms of Communication
	 	 	5	 
	3.2. Alternative Recovery Amount
	 	 	6	 
	3.3. Maximum Payment Amounts
	 	 	6	 
	3.4. Alternative Recovery Acceptance Report
	 	 	7	 
	 
	 	 	 	 
	4. OBLIGATIONS OF FIFTH THIRD; DISTRIBUTION BY VISA
	 	 	7	 
	 
	 	 	 	 
	5. TJX INDEMNITY
	 	 	8	 
	 
	 	 	 	 
	6. FINES, INTERCHANGE FEE RATE ADJUSTMENT, ETC.; OTHER MATTERS
	 	 	8	 
	6.1. Fine Suspension and Interchange Fee Rate Adjustment
	 	 	8	 
	6.2. Visa Pilot Security Program
	 	 	9	 
	6.3. TJX Spokesperson Activities
	 	 	9	 
	6.4. Covenant Not To Sue
	 	 	9	 
	 
	 	 	 	 
	7. RELEASE; CONSUMMATION DATE
	 	 	9	 
	7.1. Release
	 	 	9	 
	7.2. Conditions to Consummation; Consummation Date
	 	 	9	 
	 
	 	 	 	 
	8. OPT-IN THRESHOLD CONDITION; TERMINATION, ETC
	 	 	10	 
	8.1. Opt-In Threshold Condition
	 	 	10	 
	8.2. Termination:
	 	 	10	 
	8.3. Effect of Termination
	 	 	11	 
	 
	 	 	 	 
	9. REPRESENTATIONS AND WARRANTIES
	 	 	11	 
	9.1. Representations and Warranties of Visa
	 	 	11	 
	9.2. Representations and Warranties of TJX
	 	 	12	 
	9.3. Representations and Warranties of Fifth Third
	 	 	13	 
	9.4. No Presumption
	 	 	13	 

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	10. MISCELLANEOUS
	 	 	13	 
	10.1. Notices
	 	 	13	 
	10.2. Succession and Assignment; No Third-Party Beneficiary
	 	 	15	 
	10.3. Amendments and Waivers
	 	 	15	 
	10.4. Entire Agreement
	 	 	15	 
	10.5. Counterparts; Effectiveness
	 	 	15	 
	10.6. Non-Severability
	 	 	15	 
	10.7. Headings
	 	 	16	 
	10.8. Construction
	 	 	16	 
	10.9. Governing Law
	 	 	16	 
	10.10. Jurisdiction; Venue; Service of Process
	 	 	16	 
	10.11. Specific Performance
	 	 	17	 
	10.12. Waiver of Jury Trial
	 	 	17	 
	10.13. No Admission of Liability
	 	 	17	 
	10.14. Public Announcements
	 	 	18	 

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EXHIBITS

Exhibit 3 — Form of Alternative Recovery Offer Communication, including Alternative Recovery
Offer, with the following exhibit:

	 	•	 	Exhibit A — Form of Acceptance of Alternative Recovery Offer

Exhibit 7.1 — Form of TJX and Fifth Third Release

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SETTLEMENT AGREEMENT

     SETTLEMENT AGREEMENT dated as of November 29, 2007 (together with the attached Exhibits,
called this “Settlement Agreement”), by and among VISA U.S.A. INC., a Delaware corporation,
and VISA INC., a Delaware corporation (hereinafter collectively called “Visa”), THE TJX
COMPANIES, INC., a Delaware corporation (“TJX”), and FIFTH THIRD BANK, an Ohio banking
corporation (“Fifth Third”).

     WHEREAS, prior to December 19, 2006, TJX’s computer system that processes and stores
information related to customer transactions was subjected to unauthorized intrusions (further
defined collectively below as the TJX Intrusion), during which payment card account data were at
risk of being stolen;

     WHEREAS, certain issuers of payment cards bearing the “Visa” brand name may have certain
rights under the operating regulations of Visa and/or Interlink to recover certain amounts (which
amounts may be payable by Fifth Third and indemnifiable by TJX) by reason of losses and costs
associated with the TJX Intrusion allegedly incurred by those issuers;

     WHEREAS, in order to settle potential claims and resolve other disputes among TJX, Fifth Third
and Visa with respect to the possible rights of Visa issuers described above and potential
associated claims by Visa issuers asserting such possible rights, TJX, Fifth Third and Visa have
entered into this Settlement Agreement.

     NOW, THEREFORE, in consideration of the representations, warranties and covenants set forth
in this Settlement Agreement and in the attached Exhibits and subject to all the terms and
conditions, Visa, TJX and Fifth Third agree as follows:

     1. DEFINITIONS; CERTAIN RULES OF CONSTRUCTION

          1.1. Definitions. The following capitalized terms and non-capitalized words and
phrases have the meanings respectively assigned to them below, which meanings are applicable
equally to the singular and plural forms of the terms so defined:

     “Accepting Issuer” has the meaning set forth in Section 3.1.

     “Accounting Statement” means a written statement which sets forth (with the issuers’
names redacted and replaced with a numerical identifier) the calculation of each Eligible Visa
Issuer’s Alternative Recovery Amount, such calculation (a) to show that each Eligible Visa Issuer’s
Set 1 ADCR Recovery, Set 2 ADCR Recovery, Set 3 ADCR Recovery, Set 4 ADCR Recovery, Total ADCR
Recovery Amount, and Minimum Recovery Amount (if any) were all calculated in accordance with this
Settlement Agreement, (b) to show that the aggregate amounts of the Set 1, 2, 3, and 4 ADCR
Recoveries, the Total ADCR Recovery Amounts, the Minimum Recovery Amounts, and the Alternative
Recovery Amounts of the Eligible Visa Issuers equal the maximum payment amounts for such items set
forth in Paragraph 3.4 of this Settlement Agreement, and (c) to contain an issuer-by-issuer
breakdown (with the names of the issuers redacted and replaced with a numerical identifier) of the
number of Visa accounts each Eligible Visa Issuer has in each Set of Accounts, as well as the
amount of each Eligible Visa Issuer’s Set

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1 ADCR Recovery, Set 2 ADCR Recovery, Set 3 ADCR Recovery, Set 4 ADCR Recovery, Total ADCR Recovery
Amount, Minimum Recovery Amount (if any) and Alternative Recovery Amount.

     “ADCR Recovery” means, as to any set of Visa Accounts, the recovery that would be
available to Visa issuers under the ADCR Rules with respect to such accounts as a result of the TJX
Intrusion assuming the ADCR Rules were applicable to such accounts in the context of the TJX
Intrusion.

     “ADCR Rules” means the rules set forth in Chapter 4 of Visa’s Dispute Resolution
Rules, together with Visa’s published methodology for applying such rules, and together with any
other standard Visa methodology for applying such rules that is not inconsistent with such rules or
such published methodology.

     “Affiliated Person” means, as to any Person, the past, present, and future
representatives, attorneys, agents, accountants, assigns, insurers, administrators, officers,
directors, trustees, employees, retained contractors, parents, affiliates, subsidiaries,
predecessors, and successors of the Person, and any other Persons acting on behalf of the Person,
all in their capacities as such.

     “Alternative Recovery Acceptance” has the meaning set forth in Section 3.1.

     “Alternative Recovery Acceptance Report” has the meaning set forth in Section 3.4.

     “Alternative Recovery Amount” has the meaning set forth in Section 3.2.

     “Alternative Recovery Offer Date” has the meaning set forth in Section 3.

     “Alternative Recovery Offer” has the meaning set forth in Section 3.1.

     “Alternative Recovery Acceptance Deadline” has the meaning set forth in Section 8.1.

     “Calculated Set 3/4 Percentage” means the percentage such that the combined aggregate
amount of the Set 3 ADCR Recoveries and the Set 4 ADCR Recoveries equals $19.110 million, which
percentage shall be identical for purposes of determining both Set 3 ADCR Recoveries and Set 4 ADCR
Recoveries.

     “Consummation Date” has the meaning set forth in Section 7.2.

     “Eligible Account” means any Identified Visa Account that is a Set 1 Account, a Set 2
Account, a Set 3 Account or a Set 4 Account.

     “Eligible Visa Issuer” means an issuer of an Eligible Account.

     “Identified Visa Accounts” means those Visa Accounts that were identified to Visa by
or at the request of Fifth Third and/or TJX on or before the date of this Settlement Agreement in

-2-

 

response to Visa’s requests for information as to those Visa Accounts that Visa considered may
have been at risk from the TJX Intrusion.

     “Interlink” means Interlink Network, Inc., a wholly owned subsidiary of Visa.

     “Minimum Recovery Amount” for each Eligible Visa Issuer shall mean an amount
determined as follows: (i) for an Eligible Visa Issuer for which the Total ADCR Recovery Amount is
less than $25, the “Minimum Recovery Amount” shall be the difference between $250 and the
amount of such Eligible Visa Issuer’s Total ADCR Recovery Amount, and (ii) for an Eligible Visa
Issuer for which the Total ADCR Recovery Amount is at least $25 but not more than $699, the
“Minimum Recovery Amount” shall be the difference between $700 and the amount of such
Eligible Visa Issuer’s Total ADCR Recovery Amount.

     “Opt-In Termination Notice” has the meaning set forth in Section 8.2.

     “Opt-In Threshold Condition” has the meaning set forth in Section 8.1.

     “Person” means any individual or corporation, association, partnership, limited
liability company, joint venture, joint stock or other company, business trust, trust,
organization, Governmental Authority or other entity of any kind.

     “Release” has the meaning set forth in Section 7.1.

     “Set 1 Accounts” means those Identified Visa Accounts that were used to make
U.S.-acquired signature-based payment card transactions at TJX Stores during the period from
December 31, 2002 through September 2, 2003.

     “Set 2 Accounts” means those Identified Visa Accounts that were used to make
U.S.-acquired PIN-based payment card transactions at TJX Stores during the period from December 31,
2002 through September 2, 2003, provided, that there shall be excluded from the Set 2
Accounts any Identified Visa Account that is a Set 1 Account.

     “Set 3 Accounts” means those Identified Visa Accounts that were used to make
U.S.-acquired PIN-based payment card transactions at TJX Stores during the period from May 15, 2006
through December 18, 2006, provided, that there shall be excluded from the Set 3 Accounts
any Identified Visa Account that is a Set 1 Account or a Set 2 Account.

     “Set 4 Accounts” means those Identified Visa Accounts that were used to make
U.S.-acquired signature-based payment card transactions at TJX Stores during the period from May
15, 2006 through December 18, 2006, provided, that there shall be excluded from the Set 4
Accounts any Identified Visa Account that is a Set 1 Account, a Set 2 Account or a Set 3 Account.

     “Set 1 ADCR Recovery” has the meaning set forth in the definition of Total ADCR
Recovery Amount.

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     “Set 2 ADCR Recovery” has the meaning set forth in the definition of Total ADCR
Recovery Amount.

     “Set 3 ADCR Recovery” has the meaning set forth in the definition of Total ADCR
Recovery Amount.

     “Set 4 ADCR Recovery” has the meaning set forth in the definition of Total ADCR
Recovery Amount.

     “Set Accounts” or “Set of Accounts” means one or more of the Set 1 Accounts, Set 2
Accounts, Set 3 Accounts or Set 4 Accounts, as the context may require.

     “Settlement Agreement” has the meaning set forth in the preamble hereto.

     “Termination Date” has the meaning set forth in Section 8.2

     “Total ADCR Recovery Amount” means, for each Eligible Visa Issuer, the sum of the
following amounts:

	 	(i)	 	Set 1 Accounts: in respect of all Set 1 Accounts of an
Eligible Visa Issuer, an amount (such issuer’s “Set 1 ADCR Recovery”)
equal to 100% of the ADCR Recovery on such issuer’s Set 1 Accounts.

	 	(ii)	 	Set 2 Accounts: in respect of all Set 2 Accounts of an
Eligible Visa Issuer, an amount (such issuer’s “Set 2 ADCR Recovery”)
equal to 25% of the ADCR Recovery on such issuer’s Set 2 Accounts.

	 	(iii)	 	Set 3 Accounts: in respect of all Set 3 Accounts of an
Eligible Visa Issuer, an amount (such issuer’s “Set 3 ADCR Recovery”)
equal to the Calculated Set 3/4 Percentage of the ADCR Recovery on such
issuer’s Set 3 Accounts.

	 	(iv)	 	Set 4 Accounts: in respect of all Set 4 Accounts of an
Eligible Visa Issuer, an amount (such issuer’s “Set 4 ADCR Recovery”)
equal to the Calculated Set 3/4 Percentage of the ADCR Recovery on such
issuer’s Set 4 Accounts.

     “TJX Acquirers” means, in their capacities as acquiring banks for TJX, Fifth Third and
Chase Paymentech Solutions LLC (formerly known as Chase Merchant Services LLC), together with the
Affiliated Persons of such Persons.

     “TJX Intrusion” means the TJX computer system intrusion(s) that are the subject of
CAMS Event 2007-030-IC, and all its subparts.

     “TJX Stores” means any stores operated by TJX under any of the names T.J. Maxx,
Marshalls, HomeGoods, A.J. Wright, T.J. Maxx ‘n More, Marshalls MegaStore, and The Maxx.

-4-

 

     “Visa Account” means a payment card account with the Visa Flag Symbol or Visa Brand
Mark issued by or through a U.S. member of Visa (or by or through some other entity sponsored
directly or indirectly by a U.S. member of Visa) that enables the purchase of goods from a
merchant.

          1.2. Certain Rules of Construction. Except as otherwise explicitly specified to the
contrary, (a) references to a Section, Exhibit or Schedule means a Section of, or Schedule or
Exhibit to this Settlement Agreement, unless another agreement is specified, (b) the word
“including” will be construed as “including without limitation,” (c) references to a particular
statute or regulation include all rules and regulations thereunder and any predecessor or successor
statute, rules or regulation, in each case as amended or otherwise modified from time to time, (d)
words in the singular or plural form include the plural and singular form, respectively and (e)
references to a particular Person include such Person’s successors and assigns to the extent not
expressly prohibited by this Settlement Agreement.

     2. ACCOUNTING STATEMENT. Prior to the execution and delivery of this Settlement
Agreement, Visa has delivered to TJX and Fifth Third a preliminary version of the Accounting
Statement, which version conforms to the requirements of the Accounting Statement except that, in
regard to the Set 3 Accounts and the Set 4 Accounts, it assumes that “January 5, 2007” is
substituted for “December 18, 2006” in defining those terms, and except that it does not provide
(i) the number of Eligible Accounts on a set-by-set basis; (ii) the number of Eligible Accounts
that were excluded in calculating the ADCR Recovery amounts shown; or (iii) the derivation of the
payout factor that was used in calculating the counterfeit fraud portion of the ADCR Recovery
amounts shown. Visa shall deliver the Accounting Statement to TJX and Fifth Third on November 30,
2007.

     3. ALTERNATIVE RECOVERY OFFER. Visa hereby agrees to send to all Eligible Visa
Issuers on December 6, 2007 (the “Alternative Recovery Offer Date”) the communication
attached as Exhibit 3, appropriately completed for each Eligible Visa Issuer.

          3.1. Terms of Communication. The Alternative Recovery Offer communication shall
include an offer to the Visa issuer to which it is addressed of such issuer’s Alternative Recovery
Amount, as an alternative to any recovery in connection with such issuer’s Eligible Accounts that
such issuer might be entitled to under the operating regulations of Visa and/or Interlink by reason
of costs allegedly incurred by such issuer by reason of the TJX Intrusion (the “Alternative
Recovery Offer”), and shall recommend acceptance of the Alternative Recovery Offer by Eligible
Visa Issuers. Each Eligible Visa Issuer which on or before the Alternative Recovery Acceptance
Deadline executes and delivers to Visa the “Alternative Recovery Acceptance” appearing as Exhibit 1
to the Alternative Recovery Offer communication (the “Alternative Recovery Acceptance”)
(each such issuer is herein called an “Accepting Issuer”) shall, effective on the
Consummation Date, as provided in the Alternative Recovery Acceptance, irrevocably waive the
Accepting Issuer’s right to assert against Visa, TJX, the TJX Acquirers, and the Affiliated Persons
of each of them, and shall fully and finally release Visa, TJX, the TJX Acquirers, and the
Affiliated Persons of each of them from, (a) any claim or right of recovery the Accepting Issuer
might otherwise have had in respect of any of its Identified Visa Accounts under the Visa and/or
Interlink operating regulations (whether under the ADCR Rules, the

-5-

 

compliance rules contained in said regulations, or otherwise) by reason of any matter,
occurrence, or event pertaining to the TJX Intrusion, (b) any dispute or objection the Accepting
Issuer might otherwise be entitled to raise or make with respect to the amount, or the calculation
of the amount, of its Alternative Recovery Amount as shown in the Alternative Recovery Offer, and
(c) any claim or right the Accepting Issuer might be entitled to assert, and any monetary recovery
or other relief that the Accepting Issuer might be entitled to seek or receive, in any litigation
or other proceeding (including without limitation the pending putative class action proceedings
consolidated under the caption entitled In re TJX Companies Retail Security Breach
Litigation, Master Docket No. 07-10162-WGY, pending in the United States District Court for the
District of Massachusetts), or under any other laws, rules or regulations, in connection with any
injury or harm the Accepting Issuer may have incurred in its capacity as a Visa issuer with respect
to any of its Identified Visa Accounts by reason of any matter, occurrence, or event pertaining to
the TJX Intrusion (whether or not such matter, occurrence, or event is known to the Accepting
Issuer as of the date of the Alternative Recovery Acceptance). Visa agrees to provide to TJX and
to Fifth Third on a daily basis with a copy of each Alternative Recovery Acceptance received by
Visa on the preceding day and with an update, in the required form of the Alternative Recovery
Acceptance Report, as to whether and by what amount the Opt-In Threshold Condition has or has not
been satisfied.

          3.2. Alternative Recovery Amount. Effective on the Consummation Date, each Accepting
Issuer shall be entitled to receive the Total ADCR Recovery Amount for such issuer and any Minimum
Recovery Amount for such issuer (the combined amount of an Eligible Visa Issuer’s Total ADCR
Recovery Amount and Minimum Recovery Amount being, as to any Eligible Visa Issuer, such issuer’s
“Alternative Recovery Amount”); provided, however, that the total amount of all payments to
Accepting Issuers under this Settlement Agreement shall not exceed the maximum amounts set forth in
Section 3.3 below.

          3.3. Maximum Payment Amounts. The aggregate amount of Fifth Third’s payment
obligation under Section 4, and TJX’s indemnity obligation under Section 5, shall not in any event
exceed the amounts set forth in Section 3.3.1 below, reduced by the amounts determined pursuant to
Section 3.3.2 below:

               3.3.1. Acceptance by All Eligible Visa Issuers. Assuming that all Eligible Visa
Issuers accept the Alternative Recovery Offer, the aggregate amount of such obligations shall not
exceed: (i) in respect of all Accepting Issuers’ Set 1 ADCR Recoveries, an aggregate of
$19,062,000, (ii) in respect of all Accepting Issuers’ Set 2 ADCR Recoveries, $1,201,000, (iii) in
respect of all Accepting Issuers’ Set 3 ADCR Recoveries and Set 4 ADCR Recoveries, an aggregate
amount of $19,110,000 for both Sets of Accounts, (iv) in respect of all Accepting Issuers’ Total
ADCR Recovery Amounts, an aggregate of $39,373,000 and (v) in respect of all Accepting Issuers’
Minimum Recovery Amounts, an aggregate of $1,490,000. The aggregate amount payable by Fifth Third
and indemnifiable by TJX in respect of all Accepting Issuers’ Alternative Recovery Amounts shall
not in any event exceed a total of $40,863,000.

               3.3.2. Reduction for Non-Acceptances. The maximum aggregate amounts of the Set 1, 2,
3, and 4 ADCR Recoveries, the Total ADCR Recovery Amounts, the Minimum Recovery Amounts, and the
Alternative Recovery Amounts, as stated in Section 3.3.1, assume 100% acceptance of the Alternative
Recovery Offer by the Eligible Visa Issuers. The

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only amounts actually payable by Fifth Third and indemnifiable by TJX under Sections 4 and 5
of this Settlement Agreement shall be the Alternative Recovery Amount of each Accepting Issuer.
Accordingly, each of the aggregate maximum dollar amounts set forth in Section 3.3.1 shall be
reduced, and the potential liability of Fifth Third and TJX under Sections 4 and 5 of this
Settlement Agreement in respect of each of those maximum aggregate amounts shall correspondingly be
reduced, dollar for dollar, by the aggregate dollar amounts that Eligible Visa Issuers that do not
timely submit their respective Alternative Recovery Acceptances would have been entitled to receive
under the Alternative Recovery Offer had they qualified hereunder to be Accepting Issuers.

          3.4. Alternative Recovery Acceptance Report. Visa hereby agrees that before 12 noon,
Eastern time, December 20, 2007, Visa shall deliver to TJX and Fifth Third a written report (the
“Alternative Recovery Acceptance Report”) (i) identifying by name (and by the numerical
identifier used for such issuer in the Accounting Statement) each Eligible Visa Issuer that
satisfied the requirements of the Alternative Recovery Offer and is thereby an Accepting Issuer and
(ii) providing (with the names of the issuers redacted and replaced with the same numerical
identifiers used for such issuers in the Accounting Statement) a tabulation in the same format as
the Accounting Statement of the Eligible Visa Issuers that did not satisfy such requirements. The
Alternative Recovery Acceptance Report shall also set forth in the same detail as the Accounting
Statement the calculation and amount of (i) each Eligible Visa Issuer’s Set 1 ADCR Recovery, Set 2
ADCR Recovery, Set 3 ADCR Recovery and Set 4 ADCR Recovery, and (ii) the Minimum Recovery Amount of
each Accepting Issuer that is entitled to receive a Minimum Recovery Amount. Finally, the
Alternative Recovery Acceptance Report shall set forth the calculation of the number of accounts
covered by Alternative Recovery Acceptances on an issuer-by-issuer basis and whether the Opt-In
Threshold Condition has been satisfied as provided in Section 8.1. The delivery of the Alternative
Recovery Acceptance Report by Visa shall constitute a representation and warranty by Visa, and Visa
shall be deemed to represent and warranty by such delivery (i) that Visa has correctly identified
the Accepting Issuers, that each such Accepting Issuer has timely provided Visa with a correct and
complete Alternative Recovery Acceptance, and that the information contained in the Alternative
Recovery Acceptance Report regarding the Accepting Issuers is true, correct and complete, and (ii)
Visa has correctly identified those Eligible Visa Issuers that did not satisfy the requirements of
the Alternative Recovery Offer and are not entitled to payments under it and the information
contained in the Alternative Recovery Acceptance Report with respect to such issuers is true,
correct and complete. The Alternative Recovery Acceptance Report shall be accompanied by copies of
all of the Alternative Recovery Acceptances reflected in the Report.

     4. OBLIGATIONS OF FIFTH THIRD; DISTRIBUTION BY VISA. Subject to all the
conditions of this Settlement Agreement and the satisfaction of the other parties’ obligations
hereunder (including without limitation Fifth Third’s receipt of funds from TJX as called for by
Section 5), (a) Fifth Third agrees to pay to Visa (by making such funds available to Visa to take
through Visa’s settlement process) same day funds not later than December 24, 2007 the aggregate
amount of all Accepting Issuers’ Alternative Recovery Amounts, the calculation of which aggregate
amount shall be set forth on the Alternative Recovery Acceptance Report furnished by Visa to TJX
and Fifth Third as provided in Section 3.4, and (b) Visa agrees that, on or before December 27,
2007, it shall distribute to each Accepting Issuer its Alternative Recovery Amount. Visa is not
obligated to distribute the Alternative Recovery Amount to each

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Accepting Issuer until funds have been received from Fifth Third as called for by clause (a)
of the first sentence of this Section 4.

     5. TJX INDEMNITY. TJX agrees to indemnify and hold harmless Fifth Third from and
against payment of the aggregate amount of all Accepting Issuers’ Alternative Recovery Amounts
required by the terms of Section 4. Upon Fifth Third’s becoming obligated to pay such aggregate
amount to Visa as required by Section 4, TJX hereby agrees that it shall, sufficiently in advance
of the due date of such payment so as to enable Fifth Third to make such payment timely, provide
Fifth Third with same day funds equal to the amount so required to be paid by Fifth Third.

     6. FINES, INTERCHANGE FEE RATE ADJUSTMENT, ETC.; OTHER MATTERS. Effective as of the
Consummation Date, the parties agree as follows:

          6.1. Fine Suspension and Interchange Fee Rate Adjustment. Visa agrees that it will
suspend fines pending, but not yet imposed and collected, on Fifth Third arising from its alleged
failure to ensure TJX’s compliance with Visa data security requirements or as a result of TJX’s
alleged failure to be fully PCI DSS compliant by September 30, 2007 (which was Visa’s deadline for
TJX’s PCI DSS compliance) including the elimination of all storage of prohibited account data.
Those fines, which have a maximum level of $225,000 for Fifth Third Bank, will be waived by Visa
based upon the PCI DSS ROC submitted on behalf of TJX and received by Visa on October 12, 2007.
Effective October 18, 2007, Visa has restored TJX’s credit and debit card interchange fee rates to
the levels that pertained before the change implemented on October 13, 2007, such restoration
having been accomplished on an accelerated basis so as to have become effective 21 calendar days
earlier than would have been the case in the normal course, and such acceleration having reduced
the interchange fees paid by TJX by an estimated approximately $10,000 per day from what they
otherwise would have been during such 21-calendar-day period, and such reduction having been a
material factor in leading Fifth Third and TJX to agree to increase the aggregate maximum amount of
the funding of the Alternative Recovery Offer to $40,863,000 as set forth in Section 3.3. In
addition, when Visa’s Board of Directors rules on the pending appeal of the fines previously
imposed on Fifth Third, the Board will at a minimum rescind the $500,000 Egregious Violation fine,
based on the totality of the circumstances known to Visa, including the pre-breach conduct and
post-breach efforts of Fifth Third and TJX and their decisions to enter into this Settlement
Agreement, provided that this settlement is finalized and approved, the 80% threshold for issuer
participation is either met or waived, and the TJX and Fifth Third Release becomes effective (such
promised rescission having been a material factor in leading Fifth Third and TJX to agree to
increase the aggregate maximum amount of the funding of the Alternative Recovery Offer to
$40,863,000 as set forth in Section 3.3). Visa agrees that (i) Visa will not impose on or collect
from any of the TJX Acquirers any further fines, (ii) Visa will not impose any changes in
interchange fee rates on TJX or any of the TJX Acquirers and (iii) Visa will not impose on or
assert against TJX or any of the TJX Acquirers or any Affiliated Person of TJX or the TJX Acquirers
any claim, provided that this sentence applies only with respect to (a) the TJX Intrusion or (b)
alleged non-compliance by TJX with Visa’s data security requirements on or before the date of this
Settlement Agreement to the extent such alleged non-compliance is based on facts that relate to the
TJX Intrusion (whether or not such facts were known to Visa as of the date of this Settlement
Agreement ) or that were known to Visa as of the date of this Settlement Agreement (whether or

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not such facts relate to the TJX Intrusion). To further effectuate the intention of the
preceding sentence, Visa certifies that it has read and understands, and hereby expressly waives,
the benefits of Section 1542 of the California Civil Code, and any and all similar statutes, rules
and legal doctrines in California or any other jurisdiction.

          6.2. Visa Pilot Security Program. Visa agrees to offer to TJX’s Visa acquiring bank
the right for TJX to participate in at least one pilot program of an appropriate security-related
payment card technology, if any, that Visa introduces for or makes available for piloting by any
merchants in TJX’s class within the United States during the twenty-four month period following the
date of this Settlement Agreement.

          6.3. TJX Spokesperson Activities. TJX agrees that upon Visa’s request, TJX will serve
on at least four occasions during the twenty-four month period following the date of this
Settlement Agreement as a spokesperson in support of the goals of the Payment Card Industry Data
Security Standards and the security of payment card information.

          6.4. Covenant Not To Sue. TJX, Visa, and Fifth Third each hereby covenants and
agrees that neither it nor any of its Affiliated Persons will initiate any litigation prior to July
1, 2008 against either of the others or any of their Affiliated Persons with respect to any ruling
that Visa has made or may make with regard to any compliance claim that may be filed by a U.S. Visa
issuer with respect to U.S.-acquired transactions related to the TJX Intrusion after the date of
this Settlement Agreement and, further, that no such litigation will be initiated unless and until
Fifth Third, TJX, and Visa have conducted a good faith negotiation relative to the ruling(s) at
issue, such negotiation having been attended in person by a business representative from each party
having the title of Senior Vice President or higher, and such negotiation having been unsuccessful
in resolving the dispute regarding the ruling(s) at issue.

     7. RELEASE; CONSUMMATION DATE.

          7.1. Release. Upon the satisfaction of all of the other conditions set forth in
Section 7.2 below, each of TJX and Fifth Third hereby agree that they shall deliver the Release
attached to this Settlement Agreement as Exhibit 7.1 (the “Release”).

          7.2. Conditions to Consummation; Consummation Date. It is a condition to the
consummation of this Settlement Agreement that a termination notice pursuant to Section 8.2 shall
not have been given by TJX, Visa, or Fifth Third. In the event that such a termination notice has
not been given, this Settlement Agreement shall be consummated on the date (which is expected to be
December 24, 2007) (the “Consummation Date”) when all of the following conditions shall
have been satisfied:

	 	(a)	 	TJX shall have paid to Fifth Third the amount
required to be paid by Section 5;

	 	(b)	 	Fifth Third shall have paid to Visa the
aggregate amount required to be paid by Section 4;

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	 	(c)	 	TJX and Fifth Third shall have executed and
delivered the Release described in Section 7.1; and

	 	(d)	 	The representations and warranties of each
party shall be true and correct in all material respects on the
Consummation Date with the same force and effect as if made as of the
Consummation Date and each Party shall have performed and complied with
all agreements, obligations and covenants contained in this Agreement
that are required to be performed or complied with by it.

     8. OPT-IN THRESHOLD CONDITION; TERMINATION, ETC.

          8.1. Opt-In Threshold Condition. The obligations of Fifth Third and TJX to make any
of the payments required by the terms of this Settlement Agreement or to deliver the Release are
subject to the condition that at or before 5:00 p.m., Pacific time, on December 19, 2007 (the
“Alternative Recovery Acceptance Deadline”) the Alternative Recovery Offer shall have been
accepted by Eligible Visa Issuers that in the aggregate issued not less than eighty percent (80%)
of the Eligible Accounts (such percentage acceptance by the Alternative Recovery Acceptance
Deadline is herein called the “Opt-In Threshold Condition”). The Alternative Recovery
Acceptance Report shall set forth calculations that show whether and by what amount the Opt-In
Threshold Condition has or has not been satisfied.

          8.2. Termination. This Agreement may be terminated (the date on which the Agreement
is terminated, the “Termination Date”) at any time prior to the Consummation Date:

8.2.1. by mutual written consent of TJX, Fifth Third and Visa;

8.2.2. by any of TJX, Fifth Third and Visa, by written notice to the other
parties, at any time after December 31, 2007 if the Consummation Date has
not occurred by such date (unless the Consummation Date has not occurred as
the result of one or more breaches or violations of, or inaccuracy in any
covenant, agreement, representation or warranty of this Agreement by the
terminating party);

8.2.3. by TJX or Fifth Third, by written notice to the other parties, if
either (i) there has been or will be a material breach of, or inaccuracy in,
any representation or warranty of Visa contained in this Agreement as of the
date of this Agreement or as of any subsequent date (other than
representations or warranties that expressly speak only as of a specific
date or time, with respect to which TJX or Fifth Third’s right to terminate
will arise only in the event of a breach of, or inaccuracy in, such
representation or warranty as of such specified date or time), or (ii) Visa
has breached or violated any of its covenants and agreements contained in
this Agreement;

8.2.4. by Visa, by written notice to the other parties, if either (i) there
has been or will be a material breach of, or inaccuracy in, any
representation

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or warranty of either TJX or Fifth Third contained in this Agreement as of
the date of this Agreement or as of any subsequent date (other than
representations or warranties that expressly speak only as of a specific
date or time, with respect to which Visa’s right to terminate will arise
only in the event of a breach of, or inaccuracy in, such representation or
warranty as of such specified date or time), or (ii) TJX or Fifth Third has
breached or violated any of its covenants and agreements contained in this
Agreement; and

8.2.5. by TJX or Fifth Third, by written notice to the other parties (which
shall reference this Section 8.2.5) (the “Opt-In Termination
Notice”) not later than 4:00 p.m., Pacific time, on December 21, 2007,
if the Opt-In Threshold Condition is not satisfied on or before the
Alternative Recovery Acceptance Deadline.

Effective with any such notice (delivered as provided in Section 10.1), this Settlement Agreement
shall terminate and be of no further force or effect, except as provided in Section 8.3; provided,
however, that in the event that the Opt-In Threshold Condition shall not have been satisfied, TJX
and Fifth Third shall have the right, in their absolute discretion, but acting jointly, to waive
the Opt-In Threshold Condition, it being understood that either TJX or Fifth Third has the right
under this Section 8.2 to send the Opt-In Termination Notice as provided herein.

          8.3. Effect of Termination. If this Settlement Agreement is terminated by any party
as permitted by Section 8.2, such termination shall be effective as against all parties to this
Settlement Agreement and shall be without liability of any party to the other parties to this
Settlement Agreement, except for liabilities arising in respect of breaches under this Agreement by
any party on or prior to the Termination Date. In the event of such termination it is agreed by
the parties that, as provided in Section 10.13, none of Visa’s agreement to present the Alternative
Recovery Offer to Eligible Visa Issuers, Fifth Third’s agreement to fund the Alternative Recovery
Amounts and TJX’s agreement to indemnify for such funding or any other provision of this Settlement
Agreement shall be cited in any way by Visa, Fifth Third, or TJX, or be deemed evidence of an
admission on the part of any of the parties in any subsequent dispute regarding the propriety of
the standard ADCR and compliance processes or in any other subsequent dispute other than a dispute
relative to the enforcement of this Settlement Agreement (including without limitation an admission
on the part of Fifth Third that it was the relevant acquirer with respect to all the transactions
at issue). The provisions of this Section 8.3 and Section 10 shall survive any termination
pursuant to Section 8.2.

     9. REPRESENTATIONS AND WARRANTIES. Each of the parties to this Settlement Agreement
hereby makes the following representations and warranties to the other parties hereto:

          9.1. Representations and Warranties of Visa. In addition to its representations made
in connection with the delivery of the Alternative Recovery Acceptance Report as provided in
Section 3.4, Visa hereby represents and warrants that:

               9.1.1. Authorization. The execution, delivery and performance by Visa of its
obligations under this Settlement Agreement, including the Exhibits to which Visa is a party,

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and the consummation by Visa of the transactions contemplated hereby and thereby, are within
its corporate powers and have been duly authorized by all necessary corporate action. This
Settlement Agreement constitutes, and each of the Exhibits to which Visa is a party when executed
and delivered by it will constitute, a valid and binding agreement of Visa, enforceable against
Visa in accordance with its terms, except to the extent such enforceability may be limited to
bankruptcy, insolvency, moratorium or other similar laws affecting or relating to creditors’ rights
generally and general principles of equity.

9.1.2. Non-Contravention. The execution, delivery and performance by Visa of this
Settlement Agreement and the Exhibits to which Visa is a party (a) do not and will not (i) violate
the certificate of incorporation or by-laws of Visa, or (ii) require any consent that has not been
given or other action that has not been taken by any Person under any instrument binding upon Visa,
and (b) do not require any action by or filing with any domestic or foreign, federal, state or
local governmental authority, department, court or agency.

9.1.3. Accounting Statement. The calculations of amounts set forth in the Accounting
Statement for each Eligible Visa Issuer were performed in accordance with Visa’s methodologies and
consistent with the definitions herein of Set 1 ADCR Recovery, Set 2 ADCR Recovery, Set 3 ADCR
Recovery, Set 4 ADCR Recovery, Total ADCR Recovery Amount, Minimum Recovery Amount, and Alternative
Recovery Amount (it being understood that Visa relied on transaction information provided by or at
the request of TJX and/or Fifth Third in determining whether any particular Visa Account was an
Eligible Account). The aggregate amounts for each Eligible Visa Issuer and for all the Eligible
Visa Issuers set forth in the Accounting Statement are equal to the amounts obtained by application
of such methodologies, are consistent with the terms of this Settlement Agreement, and (in the case
of the aggregate amounts set forth for all the Eligible Visa Issuers) equal the maximum payment
amounts set forth in Paragraph 3.3 hereof.

9.2. Representations and Warranties of TJX. TJX hereby represents and warrants that:

9.2.1. Authorization. The execution, delivery and performance by TJX of its
obligations under this Settlement Agreement, including the Exhibits to which TJX is a party, and
the consummation by TJX of the transactions contemplated hereby and thereby, are within its
corporate powers and have been duly authorized by all necessary corporate action. This Settlement
Agreement constitutes, and each of the Exhibits to which TJX is a party when executed and delivered
by it will constitute, a valid and binding agreement of TJX, enforceable against TJX in accordance
with its terms, except to the extent such enforceability may be limited to bankruptcy, insolvency,
moratorium or other similar laws affecting or relating to creditors’ rights generally and general
principles of equity.

9.2.2. Non-Contravention. The execution, delivery and performance by TJX of this
Settlement Agreement and the Exhibits to which TJX is a party (a) do not and will not (i) violate
the certificate of incorporation or by-laws of TJX, or (ii) require any consent that has not been
given or other action that has not been taken by any Person under any instrument binding upon TJX,
and (b) do not require any action by or filing with any domestic or foreign, federal, state or
local governmental authority, department, court or agency.

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          9.3. Representations and Warranties of Fifth Third. Fifth Third hereby represents
and warrants that:

               9.3.1. Authorization. The execution, delivery and performance by Fifth Third of its
obligations under this Settlement Agreement, including the Exhibits to which Fifth Third is a
party, and the consummation of the transactions contemplated hereby and thereby by Fifth Third are
within its corporate powers and have been duly authorized by all necessary corporate action. This
Settlement Agreement constitutes, and each of the Exhibits to which Fifth Third is a party when
executed and delivered by it will constitute, a valid and binding agreement of Fifth Third,
enforceable against Fifth Third in accordance with its terms, except to the extent such
enforceability may be limited to bankruptcy, insolvency, moratorium or other similar laws affecting
or relating to creditors’ rights generally and general principles of equity.

               9.3.2. Non-Contravention. The execution, delivery and performance by Fifth Third of
this Settlement Agreement and the Exhibits to which Fifth Third is a party (a) do not and will not
(i) violate the certificate of incorporation or by-laws of Fifth Third, or (ii) require any consent
that has not been given or other action that has not been taken by any Person under any instrument
binding upon Fifth Third, and (b) do not require any action by or filing with any domestic or
foreign, federal, state or local governmental authority, department, court or agency.

          9.4. No Presumption. No breach of or inaccuracy in any representation and warranty
made by any party in this Settlement Agreement shall be presumed to be material merely by reason of
such representation and warranty having been characterized in this Settlement Agreement as a
representation and warranty and not merely as a representation.

     10. MISCELLANEOUS

          10.1. Notices. All notices, requests, demands, claims and other communications
required or permitted to be delivered, given or otherwise provided under this Settlement Agreement
must be in writing and must be delivered, given or otherwise provided:

	 	(a)	 	by hand (in which case, it will be effective upon delivery);

	 	(b)	 	by facsimile (in which case, it will be
effective upon receipt of confirmation of good transmission);

	 	(c)	 	by overnight delivery by a nationally
recognized courier service (in which case, it will be effective on the
Business Day after being deposited with such courier service); or
	 
	 	(d)	 	by electronic mail

in each case, to the address (or facsimile number) listed below:

If to Visa, to it at:

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Visa Inc.

P.O. Box 8999

San Francisco, California 94128-8999

Telephone number: 650-432-3200

Facsimile number: 415-932-2525

Attention: General Counsel

with a copy to:

O’Melveny & Myers LLP

275 Battery Street, Suite 2600

San Francisco, California 94111

Telephone number: 415-984-8700

Facsimile number: 415-984-8701

Attention: Randall W. Edwards, Esq.

If to Fifth Third, to it at:

38 Fountain Square Plaza

Cincinnati, Ohio 45263

Telephone number: 513-534-8780

Facsimile number: 513-534-7678

Attention: John C. Huber, Esq.

with a copy to:

Vorys, Sater, Seymour and Pease LLP

221 East Fourth Street

Cincinnati, Ohio 45202

Telephone number: (513) 723-4078

Facsimile number: (513) 852-8448

Attention: W. Breck Weigel, Esq.

If to TJX, to it at:

770 Cochituate Road

Framingham, Massachusetts 01701

Telephone number: 508-390-1000

Facsimile number: 508-390-5022

Attention: Ann McCauley, Esq.

with a copy to:

Ropes & Gray LLP

One International Place

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Boston, Massachusetts 02110

Telephone number: (617) 951-7000

Facsimile number: (617) 951-7050

Attention: Douglas H. Meal, Esq.

Each of the parties to this Settlement Agreement may specify different address or facsimile number
by giving notice in accordance with this Section 10.1 to each of the other parties.

          10.2. Succession and Assignment; No Third-Party Beneficiary. This Settlement
Agreement will be binding upon and inure to the benefit of the parties and their respective
successors and permitted assigns, each of which such successors and permitted assigns will be
deemed to be a party for all purposes of this Settlement Agreement. No party may assign, delegate
or otherwise transfer either this Settlement Agreement or any of its rights, interests, or
obligations hereunder without the prior written approval of the other parties. This Settlement
Agreement is for the sole benefit of the parties and nothing in this Settlement Agreement (whether
expressed or implied) will give or be construed to give any Person (including without limitation
Eligible Visa Issuers), other than the parties, any legal or equitable rights in connection with
this Settlement Agreement.

          10.3. Amendments and Waivers. No amendment or waiver of any provision of this
Settlement Agreement will be valid and binding unless it is in writing and signed, in the case of
an amendment, by Visa, TJX and Fifth Third, or in the case of a waiver, by the party against whom
the waiver is to be effective. No waiver by any party of any breach or violation of or, default
under or inaccuracy in any representation, warranty or covenant hereunder, whether intentional or
not, will extend to any prior or subsequent breach or violation of, default under, or inaccuracy
in, any such representation, warranty or covenant or affect in any way any rights arising by virtue
of any such prior or subsequent occurrence. No delay or omission on the part of any party in
exercising any right, power or remedy under this Settlement Agreement will operate as a waiver
thereof.

          10.4. Entire Agreement. This Settlement Agreement, together with any documents,
instruments and certificates explicitly referred to herein, constitutes the entire agreement among
the parties with respect to the subject matter of this Settlement Agreement and supersedes any and
all prior discussions, negotiations, proposals, undertakings, understandings and agreements,
whether written or oral, with respect such subject matter (other than the parties’ existing
confidentiality obligations to one another with respect to such subject matter).

          10.5. Counterparts; Effectiveness. This Settlement Agreement may be executed in any
number of counterparts, each of which will be deemed an original, but all of which together will
constitute but one and the same instrument. This Settlement Agreement will become effective when
duly executed by each party hereto.

          10.6. Non-Severability. The parties to this Settlement Agreement have negotiated the
provisions of this Settlement Agreement as an integral whole and would not have entered into this
Settlement Agreement if the provisions hereof had not been written as they appear herein.
Accordingly, if at any time, whether before or after the Consummation Date any term or provision of
this Settlement Agreement or any document delivered pursuant to this

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Settlement Agreement should be held invalid or unenforceable by any court of competent
jurisdiction, the parties intend that this Settlement Agreement may be terminated by written notice
to the other parties referencing this Section 10.6 and delivered in accordance with Section 10.1,
which notice shall have the same effect as if a termination notice pursuant to Section 8.2 had been
delivered, as provided in Section 8.3, and that each party shall thereafter take such action as may
be necessary to restore the other parties to their positions immediately prior to their execution
of this Settlement Agreement.

10.7. Headings. The headings contained in this Settlement Agreement are for
convenience purposes only and will not in any way affect the meaning or interpretation hereof.

10.8. Construction. The parties have participated jointly in the negotiation and
drafting of this Settlement Agreement. In the event an ambiguity or question of intent or
interpretation arises, this Settlement Agreement will be construed as if drafted jointly by the
parties and no presumption or burden of proof will arise favoring or disfavoring any party by
virtue of the authorship of any of the provisions of this Settlement Agreement. The parties intend
that each representation, warranty and covenant contained herein will have independent
significance. If any party has breached or violated, or if there is an inaccuracy in, any
representation, warranty or covenant contained herein in any respect, the fact that there exists
another representation, warranty or covenant relating to the same subject matter (regardless of the
relative levels of specificity) which the party has not breached or violated, or in respect of
which there is not an inaccuracy, will not detract from or mitigate the fact that the party has
breached or violated, or there is an inaccuracy in, the first representation, warranty or covenant.

10.9. Governing Law. This Settlement Agreement and the rights of the parties and all
Actions arising in whole or in part under it, will be governed by and construed in accordance with
the domestic substantive laws of the State of New York, without giving effect to any choice or
conflict of law provision or rule that would cause the application of the laws of any other
jurisdiction. Notwithstanding the foregoing, the Release shall be governed by the substantive law
of the State of California.

10.10. Jurisdiction; Venue; Service of Process.

10.10.1. Jurisdiction. Each party to this Settlement Agreement, by its execution
hereof, (a) hereby irrevocably submits to the exclusive jurisdiction of the state courts of the
State of New York or the United States District Court located in the Southern District of New York
for the purpose of any Action between the parties arising in whole or in part under or in
connection with this Settlement Agreement, (b) hereby waives to the extent not prohibited by
applicable law, and agrees not to assert, by way of motion, as a defense or otherwise, in any such
Action, any claim that it is not subject personally to the jurisdiction of the above-named courts,
that its property is exempt or immune from attachment or execution, that any such Action brought in
one of the above-named courts should be dismissed on grounds of forum non conveniens, should be
transferred or removed to any court other than one of the above-named courts, or should be stayed
by reason of the pendency of some other proceeding in any other court other than one of the
above-named courts, or that this Settlement Agreement or the subject matter hereof may not be
enforced in or by such court and (c) hereby agrees not to commence any such Action other than
before one of the above-named courts. Notwithstanding the previous

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sentence a party may commence any Action in a court other than the above-named courts solely
for the purpose of enforcing an order or judgment issued by one of the above-named courts.

               10.10.2. Venue. Each party agrees that for any Action between the parties arising in
whole or in part under or in connection with this Settlement Agreement, such party may bring
Actions only in the state courts located in the Borough of Manhattan or in the United States
District Court for the Southern District of New York. Each party further waives any claim and will
not assert that venue should properly lie in any other location within the selected jurisdiction.

               10.10.3. Service of Process. Each party hereby (a) consents to service of process in
any Action between the parties arising in whole or in part under or in connection with this
Settlement Agreement in any manner permitted by New York law, (b) agrees that service of process
made in accordance with clause (a) or made by registered or certified mail, return receipt
requested, at its address specified pursuant to Section 10.1, will constitute good and valid
service of process in any such Action and (c) waives and agrees not to assert (by way of motion, as
a defense, or otherwise) in any such Action any claim that service of process made in accordance
with clause (a) or (b) does not constitute good and valid service of process.

          10.11. Specific Performance. The parties will have such entitlement as may be
provided under applicable law to seek and obtain an injunction or injunctions to prevent breaches
or violations of the provisions of this Settlement Agreement and to enforce specifically this
Settlement Agreement and the terms and provisions hereof in any Action instituted in any court of
the United States or any state thereof having jurisdiction over the parties and the matter, in
addition to any other remedy to which the parties may be entitled, at law or in equity.

          10.12. Waiver of Jury Trial. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT
CANNOT BE WAIVED, THE PARTIES HEREBY WAIVE, AND COVENANT THAT THEY WILL NOT ASSERT (WHETHER AS
PLAINTIFF, DEFENDANT OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY ACTION ARISING IN WHOLE OR IN
PART UNDER OR IN CONNECTION WITH THIS SETTLEMENT AGREEMENT OR ANY OF THE CONTEMPLATED TRANSACTIONS,
WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE.
THE PARTIES AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN
EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG THE PARTIES IRREVOCABLY TO
WAIVE ITS RIGHT TO TRIAL BY JURY IN ANY PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THIS
SETTLEMENT AGREEMENT OR ANY OF THE CONTEMPLATED TRANSACTIONS WILL INSTEAD BE TRIED IN A COURT OF
COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

          10.13. No Admission of Liability. Neither this Settlement Agreement nor the
Alternative Recovery Offer, nor any act performed or document executed pursuant to or in
furtherance of this Settlement Agreement or the Alternative Recovery Offer: (a) is or may be
deemed to be or may be used as an admission of, or evidence of, the validity or lack thereof of any
claim or right of recovery or cause of action against or by, or of any wrongdoing or liability

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of any of the parties to this Agreement, the TJX Acquirers or the Affiliated Persons of each
of them; or (b) is or may be deemed to be or may be used as an admission of, or evidence of, any
fault or omission of any of the parties to this Agreement, the TJX Acquirers or the Affiliated
Persons of each of them, in any civil, criminal, or administrative proceeding in any court,
administrative agency, or other tribunal. Any of the parties to this Agreement may file this
Settlement Agreement, the Releases, and/or the Alternative Recovery Acceptances in any action that
may be brought against them in order to support a defense or counterclaim based on principles of
res judicata, collateral estoppel, release, good faith settlement, judgment bar or reduction or any
other theory of claim preclusion or issue preclusion or similar defense or counterclaim.

          10.14. Public Announcements. The parties understand that this Settlement Agreement
will be disclosed in a filing by TJX with the Securities and Exchange Commission (“SEC”), in a
press release by TJX, and by public disclosure by Visa, and may also be publicly disclosed by Fifth
Third in its sole discretion.

[Remainder of page intentionally left blank]

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     IN WITNESS WHEREOF, each of the undersigned has executed this Settlement Agreement as an
agreement under seal as of the date first above written.

	 	 	 	 	 
	 	 	VISA INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ John Partridge
	 

	 	 	 	 
	 

	 	 	 	Name: John Partridge
	 

	 	 	 	Title: Executive Vice President
	 
	 	 	 	 
	 	 	VISA U.S.A. INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ John Partridge
	 

	 	 	 	 
	 

	 	 	 	Name: John Partridge
	 

	 	 	 	Title: Executive Vice President
	 
	 	 	 	 
	 	 	THE TJX COMPANIES, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Donald G. Campbell
	 

	 	 	 	 
	 

	 	 	 	Name: Donald G. Campbell
	 

	 	 	 	Title: Vice Chairman
	 
	 	 	 	 
	 	 	FIFTH THIRD BANK
	 
	 	 	 	 
	 

	 	By:	 	/s/ John C. Huber
	 

	 	 	 	 
	 

	 	 	 	Name: John C. Huber
	 

	 	 	 	Title: Vice President

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