Document:

exhibit10_5.htm

Exhibit 10.5

 

 

 

FORM OF RECEIVABLES PURCHASE AGREEMENT

 

 

between

 

 

BMW BANK OF NORTH AMERICA,

as Seller,

 

and

 

 

BMW FS SECURITIES LLC,

as Depositor

 

 

 

Dated as of September 1, 2014

 

  

  

  

TABLE OF CONTENTS

 

PAGE

 

	
ARTICLE I

 

	
CERTAIN DEFINITIONS

 

	
1

	
ARTICLE II

 

	
CONVEYANCE OF RECEIVABLES

 

	
3

	
SECTION 2.01

	
Conveyance of Receivables

	
3

	
SECTION 2.02

	
The Closing

 

	
4

	
ARTICLE III

 

	
REPRESENTATIONS AND WARRANTIES

 

	
4

	
SECTION 3.01

	
Representations and Warranties of the Depositor

	
4

	
SECTION 3.02

	
Representations and Warranties of the Seller

	
6

	
SECTION 3.03

	
Perfection Representations, Warranties and Covenants

 

	
17

	
ARTICLE IV

 

	
CONDITIONS

 

	
17

	
SECTION 4.01

	
Conditions to Obligation of the Depositor

	
17

	
SECTION 4.02

	
Conditions to Obligation of the Seller

 

	
18

	
ARTICLE V

 

	
COVENANTS OF THE SELLER AND THE DEPOSITOR

 

	
20

	
SECTION 5.01

	
Protection of Right, Title and Interest

	
20

	
SECTION 5.02

	
Other Liens or Interests

	
20

	
SECTION 5.03

	
Costs and Expenses

	
20

	
SECTION 5.04

	
Hold Harmless

	
21

	
SECTION 5.05

	
Compliance with the FDIC Rule

 

	
21

	
ARTICLE VI

 

	
MISCELLANEOUS PROVISIONS

 

	
21

	
SECTION 6.01

	
Obligations of Seller

	
21

	
SECTION 6.02

	
Repurchase Events

	
21

	
SECTION 6.03

	
Depositor Assignment of Repurchased Receivables

	
22

	
SECTION 6.04

	
Transfer to the Issuer

	
22

	
SECTION 6.05

	
Amendment

	
22

	
SECTION 6.06

	
Waivers

	
23

	
SECTION 6.07

	
Notices

	
23

	
SECTION 6.08

	
Costs and Expenses

	
23

	
SECTION 6.09

	
Representations of the Seller and the Depositor

	
23

	
SECTION 6.10

	
Confidential Information

	
23

	
SECTION 6.11

	
Headings and Cross-References

	
23

	
SECTION 6.12

	
Governing Law

	
23

	
SECTION 6.13

	
Counterparts

	
24

	
SECTION 6.14

	
Third Party Beneficiary

	
24

	
SECTION 6.15

	
No Proceedings

	
24

 

 

 

  

i

  

SCHEDULES

 

	
SCHEDULE I

	
Schedule of Receivables

	
SCHEDULE II

	
Location of Receivable Files

	
SCHEDULE III

	
Perfection Representations, Warranties and Covenants

  

ii

  

THIS RECEIVABLES PURCHASE AGREEMENT dated as of September 1, 2014, is between BMW BANK OF NORTH AMERICA, a Utah corporation (the “Seller”), and BMW FS SECURITIES LLC, a Delaware limited liability company, as depositor (the “Depositor”).

 

RECITALS

 

WHEREAS, in the regular course of its business, the Seller has purchased certain motor vehicle retail installment sale contracts secured by new and used automobiles, light trucks and motorcycles from certain motor vehicle dealers;

 

WHEREAS, the Seller and the Depositor wish to set forth the terms pursuant to which such contracts are to be sold by the Seller to the Depositor; and

 

WHEREAS, the Depositor intends, concurrently with its purchase hereunder, to convey all of its right, title and interest in and to all of such contracts to BMW Vehicle Owner Trust 2014-A (the “Issuer”) pursuant to a Sale and Servicing Agreement dated as of September 1, 2014 (the “Sale and Servicing Agreement”), by and among the Issuer, the Depositor, the Sponsor, the Servicer, the Administrator and the Custodian, and U.S. Bank National Association, as indenture trustee (the “Indenture Trustee”), and the Issuer intends to pledge all of its right, title and interest in and to such contracts to the Indenture Trustee pursuant to the Indenture dated as of September 1, 2014 (the “Indenture”), by and between the Issuer and the Indenture Trustee.

 

NOW, THEREFORE, in consideration of the foregoing, other good and valuable consideration and the mutual terms and covenants contained herein, the parties hereto agree as follows:

 

ARTICLE I

 

CERTAIN DEFINITIONS

 

Terms not defined in this Agreement shall have the meanings assigned thereto in the Sale and Servicing Agreement, the Underwriting Agreement or the Indenture, as the case may be.  As used in this Agreement, the following terms shall, unless the context otherwise requires, have the following meanings (such meanings to be equally applicable to the singular and plural forms of the terms defined):

 

“Act” shall have the meaning specified in Section 3.01(h).

 

“Agreement” shall mean this Receivables Purchase Agreement, as the same may be amended and supplemented from time to time.

 

“BMW FS” shall mean BMW Financial Services NA, LLC.

 

“BMW FS Receivables Purchase Agreement” shall mean the Receivables Purchase Agreement, dated as of September 1, 2014, between BMW FS, as seller, and the Depositor.

 

  

  

  

 

“Conveyed Assets” shall have the meaning set forth in Section 2.01.

 

“Depositor” shall mean BMW FS Securities LLC, a Delaware limited liability company, and its successors and assigns.

 

“Final Prospectus” shall have the meaning set forth in the Underwriting Agreement.

 

“Indenture” shall have the meaning set forth in the recitals.

 

“Issuer” shall have the meaning set forth in the recitals.

 

“Lien Certificate” means, with respect to a Financed Vehicle, an original certificate of title, certificate of lien or other notification issued by the Registrar of Titles of the applicable State to a secured party which indicates that the lien of the secured party on such Financed Vehicle is recorded on the original certificate of title.  In any jurisdiction in which the original certificate of title is required to be given to the Obligor, the term “Lien Certificate” shall mean only a certificate or notification issued to a secured party.

 

“Preliminary Prospectus” shall have the meaning set forth in the Underwriting Agreement.

 

“Purchase Price” shall have the meaning set forth in Section 2.01.

 

“Receivable” shall mean any Contract listed on Schedule I hereto (which Schedule may be in the form of microfiche).

 

“Registrar of Titles” means with respect to any State, the governmental agency or body responsible for the registration of, and the issuance of certificates of title relating to, motor vehicles and liens thereon.

 

“Registration Statement” means Registration Statement No. 333-182371 filed by the Depositor with the Securities and Exchange Commission in the form in which it became effective on August 17, 2012.

 

“Rules and Regulations” shall have the meaning specified in Section 3.01(i).

 

“Sale and Servicing Agreement” shall have the meaning set forth in the recitals.

 

“Schedule of Receivables” shall mean the list of Receivables annexed hereto as Schedule I (which Schedule may be in the form of microfiche).

 

“Seller” shall mean BMW Bank of North America, and its successors and assigns.

 

“Transfer Date” shall mean the Closing Date.

 

“Transfer Taxes” shall have the meaning specified in Section 3.02(b)(xlii).

 

  

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“Underwriters” means each of RBC Capital Markets, LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman, Sachs & Co., Mitsubishi UFJ Securities (USA), Inc. and Mizuho Securities USA Inc.

 

“Underwriting Agreement” means the Underwriting Agreement, dated October 8, 2014, among BMW FS, the Depositor and RBC Capital Markets, LLC, on behalf of itself and as representative of the Underwriters, relating to BMW Vehicle Owner Trust 2014-A.

 

ARTICLE II

 

CONVEYANCE OF RECEIVABLES

 

SECTION 2.01  Conveyance of Receivables.

 

(a)      In consideration of the Depositor’s delivery to or upon the order of the Seller on the Closing Date of $[__] and a Certificate representing a Certificate Percentage Interest equal to [__]%, representing a total purchase price of $[__] (collectively, the “Purchase Price”), the Seller does hereby sell, transfer, assign, set over and otherwise convey to the Depositor, without recourse (subject to the obligations of the Seller herein) all right, title, and interest of the Seller in and to the following assets and property whether now owned or existing or hereafter acquired or arising:

 

(i)      the Receivables and all moneys received thereon after the close of business on August 31, 2014;

 

(ii)      the security interests in the Financed Vehicles and any accessions thereto granted by Obligors pursuant to the Receivables and any other interest of the Seller in such Financed Vehicles;

 

(iii)      any Liquidation Proceeds and Recoveries and any other proceeds with respect to the Receivables from claims on any theft, physical damage, credit life or disability insurance policies covering Financed Vehicles or Obligors, including any vendor’s single interest or other collateral protection insurance policy;

 

(iv)      any property that shall have secured a Receivable and that shall have been acquired by or on behalf of the Seller;

 

(v)      all documents and other items contained in the Receivable Files;

 

(vi)      all proceeds from any Receivable repurchased by a Dealer pursuant to a Dealer Agreement; and

 

(vii)      the proceeds of any and all of the foregoing (collectively, with the assets listed in clauses (i) through (vi) above, the “Conveyed Assets”).

 

  

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(b)      For all non-tax purposes, the Seller and the Depositor intend that the transfer of assets by the Seller to the Depositor pursuant to this Agreement be a sale of the ownership interest in such assets to the Depositor, rather than the mere granting of a security interest to secure a borrowing.  In the event, however, that such transfer is deemed not to be a sale but to be a grant of a mere security interest to secure a borrowing, the Seller shall be deemed to have hereby granted, and does hereby grant, to the Depositor a first priority security interest in all right, title and interest of the Seller in and to the Conveyed Assets, whether now owned or existing or hereafter acquired or arising, and all accounts, money, chattel paper, securities, instruments, documents, deposit accounts, certificates of deposit, letters of credit, advices of credit, banker’s acceptances, uncertificated securities, general intangibles, contract rights, goods and other property consisting of, arising from or relating to such Conveyed Assets, which security interest shall be perfected, to secure a debt in the amount equal to the Purchase Price (less payments of principal previously received in respect of the Receivables) plus interest at a rate equal to the weighted average of the interest rates payable on the Receivables.  Pursuant to the Sale and Servicing Agreement and Section 6.04 hereof, the Depositor may sell, transfer and assign to the Issuer (i) all or any portion of the assets assigned to the Depositor hereunder, (ii) all or any portion of the Depositor’s rights against the Seller under this Agreement and (iii) all proceeds thereof.  Such assignment may be made by the Depositor with or without an assignment by the Depositor of its rights under this Agreement, and without further notice to or acknowledgement from the Seller.  The Seller waives, to the extent permitted under applicable law, all claims, causes of action and remedies, whether legal or equitable (including any right of setoff), against the Depositor or any assignee of the Depositor relating to such action by the Depositor in connection with the transactions contemplated by the Sale and Servicing Agreement.  Because (i) the Depositor intends to convey all of its right, title and interest in and to the Receivables to the Issuer pursuant to the Sale and Servicing Agreement, (ii) the Issuer intends to pledge all of its right, title and interest in and to the Receivables to the Indenture Trustee pursuant to the Indenture, (iii) the Seller intends that the transfer of Receivables pursuant to this Agreement be a sale of the ownership interest in such Receivables to the Depositor, and (iv) the parties intend that the Indenture Trustee have a direct security interest in the Receivables, if the transfer of the Receivables pursuant to this Agreement is deemed to be a grant of a security interest to secure a borrowing, the foregoing grant by the Seller of a security interest in the Receivables to secure a debt in the amount of the debt described above shall be deemed to be, and the Seller hereby grants, a direct security interest in the Receivables to the Indenture Trustee for the benefit of the Noteholders to secure the debt described above.

 

SECTION 2.02  The Closing.  The sale and purchase of the Receivables shall take place at a closing at the offices of Bingham McCutchen LLP, 399 Park Avenue, New York, New York 10022 on the Closing Date, simultaneously with the closing under (a) the Sale and Servicing Agreement, (b) the Indenture, (c) the BMW FS Receivables Purchase Agreement and (d) the Trust Agreement.

 

  

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ARTICLE III

 

REPRESENTATIONS AND WARRANTIES

 

SECTION 3.01  Representations and Warranties of the Depositor.  The Depositor hereby represents and warrants as follows to the Seller and the Indenture Trustee as of the date hereof and the Transfer Date:

 

(a)      Organization and Good Standing.  The Depositor is duly organized and validly existing as a limited liability company in good standing under the laws of the State of Delaware, with the power and authority to own its properties and to conduct its business as such properties are currently owned and such business is currently conducted.

 

(b)      Due Qualification.  The Depositor is duly qualified to do business as a foreign limited liability company in good standing, and has obtained all necessary licenses and approvals in all jurisdictions, including a license pursuant to the Pennsylvania Motor Vehicle Sales Finance Act and the Maryland Code Financial Institutions, Title 11, Subtitle 4, where the failure to do so would materially and adversely affect the Depositor’s ability to acquire the Receivables or the validity or enforceability of the Receivables.

 

(c)      Power and Authority.  The Depositor has the limited liability company power and authority to execute and deliver this Agreement and the other Basic Documents to which it is a party and to carry out their respective terms; the Depositor has full power and authority to sell and assign the property to be sold and assigned to and deposited with the Issuer, and the Depositor shall have duly authorized such sale and assignment to the Issuer by all necessary limited liability company action; and the execution, delivery and performance of this Agreement and the other Basic Documents to which the Depositor is a party have been duly authorized by the Depositor by all necessary limited liability company action.

 

(d)      Binding Obligation.  This Agreement and the other Basic Documents to which the Depositor is a party, when duly executed and delivered by the other parties hereto and thereto shall constitute legal, valid and binding obligations of the Depositor, enforceable against the Depositor in accordance with their respective terms, except as the enforceability thereof may be limited by bankruptcy, insolvency, reorganization or similar laws now or hereafter in effect relating to or affecting creditors’ rights generally and to general principles of equity (whether applied in a proceeding at law or in equity).

 

(e)      No Violation.  The consummation of the transactions contemplated by this Agreement and the fulfillment of the terms hereof do not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time or both) a default under, the limited liability company agreement or certificate of formation of the Depositor, or any indenture, agreement or other instrument to which the Depositor is a party or by which it is bound, or violate any law, rules or regulation applicable to the Depositor of any court or federal or state regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Depositor.

 

  

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(f)      No Proceedings.  There are no proceedings or investigations pending or, to the Depositor’s knowledge, threatened against the Depositor before any court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Depositor or its properties (i) asserting the invalidity of this Agreement or any other Basic Document to which the Depositor is a party, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement or any other Basic Document to which the Depositor is a party or (iii) seeking any determination or ruling that might materially and adversely affect the performance by the Depositor of its obligations under, or the validity or enforceability of, this Agreement or any other Basic Document to which the Depositor is a party.

 

(g)      No Consents.  The Depositor is not required to obtain the consent of any other party or any consent, license, approval, registration, authorization, or declaration of or with any governmental authority, bureau or agency in connection with the execution, delivery, performance, validity, or enforceability of this Agreement or any other Basic Document to which it is a party that has not already been obtained.

 

(h)      The Depositor, and the Securities being offered in connection with the transactions described in this Agreement and the Basic Documents, meet the requirements for use of Form S-3 under the Securities Act of 1933, as amended (the “Act”), and the Depositor has filed with the Commission the Registration Statement on such Form, including a related base prospectus and a preliminary prospectus supplement, for the registration under the Act of the offering and sale of the Securities.

 

(i)      On the date of this Agreement, the Registration Statement will comply in all material respects with the applicable requirements of the Act, and the respective rules and regulations of the Commission thereunder (the “Rules and Regulations”).

 

(j)      On the date of this Agreement, the Depositor is not aware of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or the institution or threat of any proceeding for that purpose.

 

SECTION 3.02  Representations and Warranties of the Seller.

 

(a)      The Seller hereby represents and warrants as follows to the Depositor and the Indenture Trustee as of the date hereof and as of the Transfer Date:

 

(i)      Organization and Good Standing.  The Seller has been duly  organized and is validly existing as a corporation under the laws of the State of Utah, with the power and authority to own its properties and to conduct its business as such properties are currently owned and such business is currently conducted.

 

(ii)      Due Qualification.  The Seller is duly authorized to transact business as a foreign corporation in good standing, and has obtained all necessary licenses and approvals, in all  jurisdictions in which the ownership or lease of property or the conduct of its business shall require such qualifications and in which the failure to be so authorized would have a material adverse effect on the business, properties, assets, or condition

 

  

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(financial or other) of the Seller and its subsidiaries, considered as one enterprise.

 

(iii)      Power and Authority; Binding Obligation.  The Seller has the  power and authority to make, execute, deliver and perform this Agreement and all of the transactions contemplated under this Agreement and the other Basic Documents to which the Seller is a  party, and has taken all necessary action to authorize the execution, delivery and performance of this Agreement and the other Basic Documents to which the Seller is a party.  When executed and delivered, this Agreement and the other Basic Documents to which the Seller is a  party will constitute legal, valid and binding obligations of the Seller enforceable in accordance with their respective terms, except as enforcement of such terms may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally and by the availability of equitable remedies.

 

(iv)      No Violation.  The execution, delivery and performance by the  Seller of this Agreement and the other Basic Documents to which the Seller is a party will not violate any provision of any existing  state, federal or, to the best knowledge of the Seller, local law or regulation or any order or decree of any court applicable to the Seller or any provision of the charter or bylaws of the Seller, or constitute a breach of any mortgage, indenture, contract or other agreement to which the Seller is a party or by which the Seller may be bound or result in the creation or imposition of any lien upon any of the Seller’s properties pursuant to any such mortgage, indenture, contract or other agreement (other than this Agreement).

 

(v)      No Proceedings.  There are no proceedings or investigations pending or, to the Seller’s knowledge, threatened against the Seller before any court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Seller or its properties (i) asserting the invalidity of this Agreement or any other Basic Document, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement or any other Basic Document or (iii) seeking any determination or ruling that might materially and adversely affect the performance by the Seller of its obligations under, or the validity or enforceability of, this  Agreement or any other Basic Document.

 

(vi)      Chief Executive Office and Principal Place of Business.  The chief executive office and the principal place of business of the Seller for the previous five years is 2735 East Parleys Way, Suite 301, Salt Lake City, Utah 84109.

 

(vii)      No Consents.  The Seller is not required to obtain the consent of any other party or any consent, license, approval, registration, authorization, or declaration of or with any governmental authority, bureau or agency in connection with the execution, delivery, performance, validity, or

 

  

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enforceability of this Agreement or any other Basic Document to which it is a party that has not already been obtained.

 

(viii)      No Notice.  The Seller represents and warrants that it acquired title to the Receivables in good faith, without notice of any adverse claim.

 

(ix)      Bulk Transfer.  The Seller represents and warrants that the transfer, assignment and conveyance of the Receivables by the Seller pursuant to this Agreement is not subject to the bulk transfer laws or any similar statutory provisions in effect in any applicable jurisdiction.

 

(x)      Seller Information.  No certificate of an officer, statement or document furnished in writing or report delivered pursuant to the terms hereof by the Seller contains any untrue statement of a material fact or omits to state any material fact necessary to make the certificate, statement, document or report not misleading.

 

(xi)      Ordinary Course.  The transactions contemplated by this Agreement and the other Basic Documents to which the Seller is a party are in the ordinary course of the Seller’s business.

 

(xii)      Solvency.  The Seller is not insolvent, nor will the Seller be made insolvent by the transfer of the Receivables, nor does the Seller anticipate any pending insolvency.

 

(xiii)      Legal Compliance.  The Seller is not in violation of, and the execution and delivery of this Agreement and the other Basic Documents to which the Seller is a party by it and its performance and compliance with the terms of this Agreement and the other Basic Documents to which the Seller is a party will not constitute a violation with respect to, any order or decree of any court or any order or regulation of any federal, state, municipal or governmental agency having jurisdiction, which violation would materially and adversely affect the Seller’s condition (financial or otherwise) or operations or any of the Seller’s properties or materially and adversely affect the performance of any of its duties under the Basic Documents.

 

(xiv)      Creditors.  The Seller is not selling the Receivables to the Depositor with any intent to hinder, delay or defraud any of its creditors.

 

(b)      The Seller makes the following representations and warranties with respect to the Receivables, on which the Depositor relies in accepting the Receivables and in transferring the Receivables to the Issuer under the Sale and Servicing Agreement, and on which the Issuer relies in pledging the same to the Indenture Trustee.  Such representations and warranties speak as of the execution and delivery of this Agreement and as of the Transfer Date, but shall survive the sale, transfer and assignment of the Receivables to the Depositor, the subsequent sale, transfer and assignment of the Receivables by the Depositor to the Issuer pursuant to the Sale and Servicing Agreement and the pledge of the Receivables by the Issuer to

 

  

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the Indenture Trustee pursuant to the Indenture and with respect to the representations and warranties set forth in paragraphs (lii) through (lviii) below, shall be non-waivable.

 

(i)      Characteristics of Receivables.  Each Receivable (A) was originated in the United States of America by a Dealer located in the United States of America for the retail sale of a Financed Vehicle in the ordinary course of such Dealer’s business in accordance with the Seller’s credit policies as of the date of origination of the related Receivable, is payable in United States dollars, has been fully and properly executed or electronically authenticated by the parties thereto, has been purchased by the Seller from such Dealer under an existing Dealer Agreement and has been validly assigned by such Dealer to the Seller, which has validly assigned the same to the Seller, except that certain Receivables originated through the “Lease to Loan” program were not originated by Dealers, but directly by the Seller and to the best of the Seller’s knowledge was so originated or sold without fraud or misrepresentation on the part of such Dealer in either case, (B) has created a valid, subsisting and enforceable first priority perfected security interest in favor of the Seller in the Financed Vehicle, which security interest is assignable by the Seller to the Depositor, and by the Depositor to the Issuer, (C) contains customary and enforceable provisions such that the rights and remedies of the holder thereof are adequate for realization against the collateral of the benefits of the security, (D) provides for fixed level monthly payments (provided that the payment in the last month of the term of the Receivable may be different from the level scheduled payments) that fully amortize the Amount Financed by maturity and yield interest at the APR and (E) amortizes using the Simple Interest Method.

 

(ii)      Compliance with Law.  Each Receivable and the sale of the related Financed Vehicle complied at the time it was originated or made, and at the time of execution of this Agreement complies, in all material respects with all requirements of applicable federal, state and, to the best knowledge of the Seller, local laws, rulings and regulations thereunder, including usury laws, the Federal Truth-in-Lending Act, the Equal Credit Opportunity Act, the Fair Credit Billing Act, the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Federal Trade Commission Act, the Magnuson-Moss Warranty Act, the Federal Reserve Board’s Regulations “B” and “Z,” the Servicemembers Civil Relief Act, as amended (the “Relief Act”), the Military Reservist Relief Act of 1991, as amended, and state adaptations of the National Consumer Act and of the Uniform Consumer Credit Code, and other consumer credit laws and equal credit opportunity and disclosure laws applicable to such Receivable.

 

(iii)      Binding Obligation.  Each Receivable represents the genuine, legal, valid and binding payment obligation of the Obligor thereon, enforceable by the holder thereof in accordance with its terms, except (A) as enforceability thereof may be limited by bankruptcy, insolvency, reorganization or similar laws affecting the enforcement of creditors’ rights

 

  

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generally and by equitable limitations on the availability of specific remedies, regardless of whether such enforceability is considered in a proceeding in equity or at law and (B) as such Receivable may be modified by the application after the Transfer Date of the Relief Act or the Military Reservist Relief Act of 1991, as amended.

 

(iv)      No Government Obligor.  No Receivable is due from the United States of America or any State or any agency, department, subdivision or instrumentality thereof.

 

(v)      Obligor Bankruptcy.  To the best of the Seller’s knowledge, as of the Cutoff Date with respect to the Receivables, no Obligor is or has been, since the origination of the related Receivable, the subject of a bankruptcy proceeding.

 

(vi)      Schedule of Receivables.  The information set forth in Schedule I to this Agreement is true and correct in all material respects as of the close of business on the Cutoff Date.

 

(vii)      Marking Records.  By the Transfer Date, the Seller will have caused its computer and accounting records relating to each Receivable to be marked to show that such Receivables have been sold to the Depositor by the Seller and transferred and assigned by the Depositor to the Issuer in accordance with the terms of the Sale and Servicing Agreement and pledged by the Issuer to the Indenture Trustee in accordance with the terms of the Indenture.

 

(viii)      Computer Tape.  The computer tape regarding the Receivables made available by the Seller to the Depositor is complete and accurate in all material respects as of the Cutoff Date.

 

(ix)      No Adverse Selection.  No selection procedures (other than those specified herein) believed by the Seller to be adverse to the Noteholders or the Certificateholders were utilized in selecting the Receivables.

 

(x)      [Reserved.]

 

(xi)      One Original.  With respect to any Receivable constituting “electronic chattel paper”, there is only one “authoritative copy” of the Receivable and with respect to any Receivable constituting “tangible chattel paper”, there is no more than one original executed copy of such Receivable and none of the “instruments”, “tangible chattel paper” or “electronic chattel paper” that constitute or evidence the Receivables has any marks or notations indicating that it has been pledged, assigned or otherwise conveyed to any Person other than to the Depositor, the Issuer or the Indenture Trustee.  All quoted terms are used as such term is used in the UCC.

 

  

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(xii)      Receivables in Force.  No Receivable has been satisfied, subordinated or rescinded, nor has any Financed Vehicle been released from the Lien of the related Receivable in whole or in part.  None of the terms of any Receivable has been waived, altered or modified in any respect since its origination, except by instruments or documents identified in the related Receivable File.  No Receivable has been modified as a result of the application of the Relief Act or the Military Reservist Relief Act of 1991, as amended.

 

(xiii)      Lawful Assignment.  No Receivable has been originated in, or is subject to the laws of, any jurisdiction the laws of which would make unlawful, void or voidable the sale, transfer and assignment of such Receivable under this Agreement or the Sale and Servicing Agreement or the pledge of such Receivable under the Indenture.

 

(xiv)      Title.  It is the intention of the Seller that the transfers and assignments herein contemplated constitute sales of the Receivables from the Seller to the Depositor and that the beneficial interest in and title to the Receivables not be part of the debtor’s estate in the event of the appointment of a receiver or conservator for the Seller under any receivership, bankruptcy law, insolvency or banking law.  Immediately prior to the Closing Date, no Receivable has been sold, transferred, assigned or pledged by the Seller to any Person other than to the Depositor or pursuant to this Agreement (or by the Depositor to any other Person other than to the Issuer pursuant to the Sale and Servicing Agreement).  Immediately prior to the transfers and assignments herein contemplated, the Seller has good and marketable title to each Receivable free and clear of all Liens, and, immediately upon the transfer thereof, the Depositor shall have good and marketable title to each Receivable, free and clear of all Liens and, immediately upon the transfer thereof from the Depositor to the Issuer pursuant to the Sale and Servicing Agreement, the Issuer shall have good and marketable title to each Receivable, free and clear of all Liens and, immediately upon the pledge thereof from the Issuer to the Indenture Trustee pursuant to the Indenture, the Indenture Trustee shall have a first priority perfected security interest in each Receivable.

 

(xv)      Security Interest in Financed Vehicle.  Immediately prior to its sale, assignment and transfer to the Depositor pursuant to this Agreement, each Receivable is secured by a first priority perfected security interest in the related Financed Vehicle in favor of the Seller, as secured party, or all necessary and appropriate actions have been commenced that will result in the valid perfection of a first priority security interest in such Financed Vehicle in favor of the Seller, as secured party.  The Lien Certificate for each Financed Vehicle shows, or if a new or replacement Lien Certificate is being applied for with respect to such Financed Vehicle such Lien Certificate shall be received within 120 days of the Closing Date and shall show the Seller named as the original secured party under each Receivable as the holder of a first priority

 

  

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security interest in such Financed Vehicle.  With respect to each Receivable for which the Lien Certificate has not yet been returned from the Registrar of Titles, the Seller has received written evidence that such Lien Certificate showing the Seller as first lienholder has been applied for.  Each Dealer’s security interest in any Receivable originated by such Dealer has been validly assigned by the Dealer to the Seller, which has validly assigned it to the Seller.  The Seller’s security interest has been validly assigned to the Depositor pursuant to this Agreement.  The Seller has the legal right to repossess or recover by legal process the Financed Vehicle in its name.

 

(xvi)      All Filings Made.  All filings (including UCC filings) required to be made in any jurisdiction to give the Issuer a first perfected ownership interest in the Conveyed Assets and the Indenture Trustee a first priority perfected security interest in the Conveyed Assets have been made or will be made on the Closing Date.

 

(xvii)      No Defenses.  No Receivable is subject to any right of rescission, setoff, counterclaim, dispute or defense, including the defense of usury, whether arising out of transactions concerning the Receivable or otherwise, and the operation of any terms of the Receivable or the exercise by the Seller or the Obligor of any right under the Receivable will not render the Receivable unenforceable in whole or in part, and no such right of rescission, setoff, counterclaim, dispute or defense, including the defense of usury, has been asserted with respect thereto.

 

(xviii)      No Default.  There has been no default, breach, violation or event permitting acceleration under the terms of any Receivable (other than payment delinquencies of not more than 29 days) as of the Cutoff Date, and no condition exists or event has occurred and is continuing that with notice, the lapse of time or both would constitute a default, breach, violation or event permitting acceleration under the terms of any Receivable, and there has been no waiver of any of the foregoing.  On or prior to the Transfer Date, no Financed Vehicle has been repossessed.

 

(xix)      Insurance.  The Seller, in accordance with its customary procedures, has determined that the Obligor has obtained physical damage insurance covering each Financed Vehicle and, under the terms of the related Receivable, the Obligor is required to maintain such insurance.

 

(xx)      Final Scheduled Maturity Date.  No Receivable has a final scheduled payment date later than the last day of the Collection Period immediately preceding the Class A-4 Final Scheduled Payment Date.

 

(xxi)      Certain Characteristics of the Receivables.  As of the Cutoff Date, (A) each Receivable had an original maturity of not less than 14 or more than 72 months and (B) no Receivable was more than 29 days past due.

 

  

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(xxii)      No Foreign Obligor.  All of the Receivables are due from Obligors with billing addresses within the United States of America, its territories and possessions.

 

(xxiii)      No Deferments.  The number or timing of scheduled payments has not been changed on any Receivable on or before the Closing Date, except as reflected on the computer tape delivered in connection with the sale of the Receivables.

 

(xxiv)      Scheduled Payments.  Each Receivable had a first scheduled payment due on or prior to 45 calendar days after the origination date thereof.  Each Obligor has been instructed to make all scheduled payments to the Servicer.  To the best knowledge of the Seller, each Obligor has paid the entire down payment called for by the Contract.

 

(xxv)      Receivable Files Complete.  There exists a Receivable File pertaining to each Receivable and such Receivable File contains, without limitation, (A) a fully executed or electronically authenticated original of the Receivable, (B) the original Lien Certificate or application therefor together with such other documents that the Seller shall keep on file in accordance with its customary procedures evidencing the security interest of the Seller in the related Financed Vehicle, and (C) any and all other documents that the Servicer shall have kept on file in accordance with its customary procedures relating to a Receivable, an Obligor or a Financed Vehicle.  Each of such documents that is required to be signed by the Obligor has been signed by the Obligor in the appropriate spaces.  All blanks on any form described in clauses (A), (B) and (C) of this paragraph have been properly filled in and each form has otherwise been correctly prepared in all material respects.  Notwithstanding the above, the complete Receivable File for each Receivable, (x) shall fulfill the documentation requirements of the Seller’s credit policies as in effect on the date of origination of such Receivable and (y) is in possession of the Servicer and/or Custodian, as applicable, at the location set forth on Schedule II hereto (except that, in the case of any Receivable constituting “electronic chattel paper”, the “authoritative copy” (as such term is used in Section 9-105 of the UCC) of such Receivable shall be maintained by the Servicer in a computer system such that the Servicer maintains “control” (as such term is used in Section 9-105 of the UCC) over such authoritative copy on the Transfer Date.  The blanket power of attorney granted to the Indenture Trustee and the original Lien Certificate are the only documents necessary to permit the Indenture Trustee to submit the Lien Certificate for each Financed Vehicle for retitling in the name of the Indenture Trustee as secured party in the event such retitling were required or otherwise permitted under the Basic Documents.

 

(xxvi)      Receivables Not Assumable.  No Receivable is assumable by another person in a manner which would release the Obligor thereof from such Obligor’s obligations to the Seller with respect to such Receivable.

 

  

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(xxvii)      Tax Liens.  To the best of the Seller’s knowledge, there is no Lien against any Financed Vehicle for delinquent taxes.

 

(xxviii)      No Impairment.  The Seller has not done anything to convey any right to any person that would result in such person having a right to payments due under a Receivable or otherwise to impair the rights of the Depositor in any Receivable or the proceeds thereof.

 

(xxix)      Servicing.  Each Receivable has been serviced in conformity with all applicable laws, rules and regulation and in conformity with the Seller’s policies and procedures which are consistent with customary, prudent industry standards.

 

(xxx)      No Liens.  No Liens or claims have been filed for work, labor, or materials relating to a Financed Vehicle that are prior to, or equal or coordinate with, the security interest in the Financed Vehicle granted by the related Receivable.

 

(xxxi)      [Reserved.]

 

(xxxii)      Remaining Term.  As of the Cutoff Date, each Receivable has a remaining term of at least 3 months and no more than 71 months.

 

(xxxiii)      [Reserved.]

 

(xxxiv)      Remaining Balance.  As of the Cutoff Date, each Receivable has a remaining balance of at least $41.73.

 

(xxxv)      [Reserved.]

 

(xxxvi)      No Repossessions.  No Financed Vehicle has been repossessed prior to the Transfer Date.

 

(xxxvii)      Initial Payment.  The Obligor with respect to each Receivable has made at least one scheduled payment.

 

(xxxviii)      No Proceedings.  As of the Cutoff Date, there are no proceedings pending, or to the best of the Seller’s knowledge, threatened, wherein the Obligor or any governmental agency has alleged that any Receivable is illegal or unenforceable.

 

(xxxix)      Dealer Agreement.  Each Dealer from whom the Seller purchases Receivables directly has entered into a Dealer Agreement with the Seller providing for the sale of Receivables from time to time by such Dealer to the Seller.  Each Dealer Agreement is substantially in the form attached to the Sale and Servicing Agreement as Exhibit D, except for immaterial modifications or deviations from the Dealer Agreement.  Such modifications

 

  

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and deviations from the Dealer Agreement will not have a material adverse effect on the Noteholders.

 

(xl)      Obligations Fulfilled.  To the best of its knowledge, the Seller has duly fulfilled all obligations to be fulfilled on its part under or in connection with the origination, acquisition and assignment of the Receivables.

 

(xli)      No Consent.  To the best of the Seller’s knowledge, no notice to or consent from any Obligor is necessary to effect the acquisition of the Receivables by the Depositor or the Issuer or the pledge of the Receivables by the Issuer to the Indenture Trustee.

 

(xlii)      No Transfer Taxes.  The sale, transfer, assignment and conveyance of the Receivables by the Seller pursuant to this Agreement is not subject to and will not result in any tax, fee or governmental charge payable by the Depositor, the Seller, the Issuer or the Indenture Trustee to any federal, state or local government (“Transfer Taxes”) other than Transfer Taxes which have or will be paid by the Seller as due.  In the event the Depositor, the Issuer or the Indenture Trustee receives actual notice of any Transfer Taxes arising out of the transfer, assignment and conveyance of the Receivables, on written demand by the Depositor, the Issuer or the Indenture Trustee, or upon the Seller’s otherwise being given notice thereof by the Depositor, the Issuer or the Indenture Trustee, the Seller shall pay, and otherwise indemnify and hold the Depositor, the Issuer and the Indenture Trustee harmless, on an after-tax basis, from and against any and all such Transfer Taxes (it being understood that the Depositor, the Noteholders, the Indenture Trustee and the Issuer shall have no obligation to pay such Transfer Taxes).

 

(xliii)      Aggregate Balance.  The aggregate principal balance of the Receivables as of the Cutoff Date is equal to $1,063,540,711.84.

 

(xliv)      [Reserved.]

 

(xlv)      No Advances.  No advances have been made to Obligors in order to meet any representation and warranties herein set forth; provided, however, that Receivables may have had (1) prior to June 9, 2014, up to four deferments and (2) on and after June 9, 2014, one deferment for every 12-month financed period in the term of the Contract, provided that no deferments in the case of this subclause (2) were permitted for twelve months after the first such deferment on and after June 9, 2014, in each case prior to the Cutoff Date, subject to the following: (A) each such deferment was made in conformity with the Seller’s “Collection and Servicing Guidelines” and (B) each deferred Receivable satisfies in all material respects all applicable requirements under the Seller’s or the Servicer’s, as applicable, credit and collection policies as of the date of its origination.

 

 

  

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(xlvi)      Amount Financed.  At the time each Receivable was acquired from the Dealer, the Amount Financed was fully disbursed.  There is no requirement for future advances of principal thereunder, and all fees and expenses in connection with the origination of such Receivable have been paid.

 

(xlvii)      Tape.  The computer tape from which the selection of the Receivables being acquired on the Closing Date was made available to the accountants that are providing comfort letters to the Depositor and the Underwriters in connection with the numerical information regarding the Receivables and the Notes contained in the Preliminary Prospectus and the Final Prospectus and such information in the Preliminary Prospectus and the Final Prospectus with respect to the Receivables and the Notes was complete and accurate as of its date and includes a description of the same Receivables that are described in Schedule I to this Agreement.

 

(xlviii)      Insurance.  In connection with the purchase of each Receivable, the Seller required the related Dealer to supply information that a physical damage insurance policy covers the related Financed Vehicle: (i) in an amount at least equal to the lesser of (a) the actual cash value of the related Financed Vehicle or (b) the unpaid principal balance owing on such Receivable, (ii) naming the Seller as a loss payee and (iii) insuring against loss and damage due to fire, theft, transportation, collision and other risks generally covered by comprehensive and collision coverage.

 

(xlix)      Dealer Agreement Binding.  Each Dealer that sold a Receivable to the Seller has entered into a Dealer Agreement and such Dealer Agreement, together with the assignment and related documentation signed by the Dealer, constitutes the entire agreement between the Seller and the related Dealer with respect to the sale of such Receivable to the Seller.  Each such Dealer Agreement is in full force and effect and is the legal, valid and binding obligation of such Dealer; there have been no material defaults by the Seller under such Dealer Agreement; the Seller has fully performed all of its obligations under such Dealer Agreement; the Seller has not made any statements or representations to such Dealer (whether written or oral) inconsistent with any term of such Dealer Agreement; the purchase price (as specified in the applicable Dealer Agreement) for such Receivable has been paid in full, other than any dealer reserve, by the Seller; and any payment owed to such Dealer by the Seller is a corporate obligation of the Seller.

 

(l)      Good Working Order.  Each Receivable requires the Obligor to maintain the related Financed Vehicle in good and workable order and to obtain and maintain physical damage insurance on the related Financed Vehicle subject thereto and to name the Seller as a loss payee.

 

(li)      No Consumer Lease.  No Receivable constitutes a “consumer lease” under either (a) the UCC as in effect in the jurisdiction

 

  

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whose law governs the Receivable or (b) the Consumer Leasing Act, 15 USC 1667.

 

(lii)      Valid Security Interest.  This Agreement creates a valid and continuing security interest (as defined in the applicable UCC) in the Conveyed Assets in favor of the Depositor, which security interest is prior to all other Liens, and is enforceable as such as against creditors of and purchasers from the Seller.

 

(liii)      Perfection.  The Seller has taken all steps necessary to perfect its security interest against the Obligors in the property securing the Receivables.

 

(liv)      Chattel Paper.  Each Receivable constitutes “tangible chattel paper” or “electronic chattel paper” within the meaning of the applicable UCC.

 

(lv)      Good and Marketable Title.  The Seller owns and has good and marketable title to the Receivables free and clear of any Lien, claim or encumbrance of any Person.

 

(lvi)      Filing of Financing Statements.  The Seller has caused or will have caused, within ten days, the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions under applicable law in order to perfect the security interest in the Receivables granted to the Depositor hereunder.

 

(lvii)      Other Financing Statements.  Other than the security interest granted to the Depositor pursuant to this Agreement, the Seller has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of the Conveyed Assets.  The Seller has not authorized the filing of and is not aware of any financing statements against the Seller that include a description of collateral covering the Conveyed Assets other than any financing statement relating to the security interest granted to the Depositor hereunder or that has been terminated.  The Seller is not aware of any judgment or tax lien filings against the Seller.

 

(lviii)      Original Contracts.  The Seller (or its custodian, on its behalf) has in its possession all original copies of the Contracts that constitute or evidence the Receivables (or, in the case of each Receivable constituting “electronic chattel paper” the custodian has “control” (as such term is used in Section 9-105 of the UCC) of each such Receivable).  The Contracts that constitute or evidence the Receivables do not have any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any Person other than the Depositor.  All financing statements filed or to be filed against the Seller in favor of the Depositor in connection herewith describing the Receivables contain a statement to the following effect: “A purchase of or

 

  

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security interest in any collateral described in this financing statement will violate the rights of the Depositor.”

 

SECTION 3.03  Perfection Representations, Warranties and Covenants. The Seller hereby makes the perfection representations, warranties and covenants set forth on Schedule III hereto to the Depositor and the Depositor shall be deemed to have relied on such representations, warranties and covenants in acquiring the Receivables.

 

ARTICLE IV

 

CONDITIONS

 

SECTION 4.01  Conditions to Obligation of the Depositor.  The obligation of the Depositor to purchase the Receivables is subject to the satisfaction of the following conditions:

 

(a)      Representations and Warranties True.  The representations and warranties of the Seller hereunder shall be true and correct on the Transfer Date with the same effect as if then made, and the Seller shall have performed all obligations to be performed by it hereunder on or prior to the Transfer Date.

 

(b)      Computer Files Marked.  The Seller shall, at its own expense, on or prior to the Transfer Date, indicate in its computer files that the Receivables have been sold to the Depositor by the Seller pursuant to this Agreement and transferred and assigned by the Depositor to the Issuer in accordance with the terms of the Sale and Servicing Agreement and pledged by the Issuer to the Indenture Trustee in accordance with the Indenture and deliver to the Depositor the Schedule of Receivables, certified by the Seller’s President, Vice President or Treasurer to be true, correct and complete.

 

(c)      Documents To Be Delivered by the Seller on the Transfer Date:

 

(i)      Evidence of UCC Filing.  On or prior to the Closing Date, the Seller shall record and file, at its own expense, a UCC-1 financing statement in the State of Utah and in each other jurisdiction required by applicable law, naming the Seller, as seller or debtor, and naming the Depositor, as secured party, describing the Receivables and the other assets assigned to the Depositor pursuant to Section 2.01 hereof meeting the requirements of the laws of each such jurisdiction and in such manner as is necessary to perfect the sale, transfer, assignment and conveyance of the Receivables and such other assets to the Depositor.  The Seller shall deliver to the Depositor a file-stamped copy or other evidence satisfactory to the Depositor of such filing on or prior to the Transfer Date.

 

(ii)      Opinions of Seller’s Counsel.  On or prior to the Closing Date, the Depositor shall have received the opinions of counsel to the Seller, in form and substance satisfactory to the Depositor.

 

(iii)        Other Documents.  Such other documents as the Depositor may reasonably request.

 

  

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(d)      Other Transactions.  The transactions contemplated by the Sale and Servicing Agreement, the BMW FS Receivables Purchase Agreement, the Indenture and the Trust Agreement to be consummated on the Transfer Date shall be consummated on such date.

 

SECTION 4.02  Conditions to Obligation of the Seller.  The obligation of the Seller to sell the Receivables to the Depositor is subject to the satisfaction of the following conditions:

 

(a)      Representations and Warranties True.  The representations and warranties of the Depositor hereunder shall be true and correct on the Transfer Date with the same effect as if then made, and the Depositor shall have performed all obligations to be performed by it hereunder on or prior to the Transfer Date.

 

(b)      Receivables Purchase Price.  On the Transfer Date, the Depositor shall have delivered to the Seller the Purchase Price.

 

(c)      Opinion of Counsel.  The Depositor shall have furnished to the Seller an opinion of counsel, dated the Closing Date, to the effect that:

 

(i)      the Depositor has been duly formed and is validly existing as a limited liability company in good standing under the laws of the State of Delaware, with full power and authority to own its properties and conduct its business as described in the Prospectus;

 

(ii)      each of this Agreement, the Sale and Servicing Agreement, the BMW FS Receivables Purchase Agreement and the Trust Agreement has been duly authorized, executed and delivered by the Depositor and constitutes a legal, valid and binding obligation of the Depositor, enforceable against the Depositor in accordance with its terms except as limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, receivership, conservatorship or similar laws relating to or affecting creditors’ rights generally or the rights of creditors, and except that such counsel need express no opinion as to the availability of equitable remedies or the enforceability of rights of indemnification for violations of federal securities laws;

 

(iii)        no consent, approval, authorization or order of, or filing with, any court or governmental agency or body is required for the consummation by the Depositor of the transactions contemplated herein or in the Sale and Servicing Agreement, the BMW FS Receivables Purchase Agreement, the Trust Agreement or the Indenture, except such as may be required under the blue sky or securities laws of any jurisdiction in connection with the purchase and sale of the Notes by the Underwriters, the filing of the UCC-1 financing statements relating to the conveyance of the Receivables and the Conveyed Assets (as defined herein) by the Seller to the Depositor and of the Receivables and the Conveyed Assets (as defined in the Sale and Servicing Agreement) by the Depositor to the Issuer and of the Collateral by the Issuer to the Indenture Trustee for the benefit of the Noteholders and the filing of the

 

  

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UCC-1 financing statement relating to the security interests in the Eligible Investments included in the Reserve Account, and such other approvals (which shall be specified in such opinion) as have been obtained and such filings as have been made or are in the process of being made; and

 

(iv)       none of the issue and sale of the Notes and Certificates, the execution and delivery of this Agreement, the BMW FS Receivables Purchase Agreement, the Sale and Servicing Agreement or the Trust Agreement, the consummation of any other of the transactions herein or therein contemplated or the fulfillment of the terms hereof or thereof will conflict with, result in a breach or violation of, or constitute a default under, the limited liability company agreement or certificate of formation of the Depositor or the terms of any indenture or other agreement or instrument known to such counsel and to which the Depositor is a party or by which it is bound, or any judgment, order or decree known to such counsel to be applicable to the Depositor of any court, regulatory body, administrative agency, governmental body, or arbitrator having jurisdiction over the Depositor.

 

(d)      Other Transactions.  The transactions contemplated by the Sale and Servicing Agreement, the BMW FS Receivables Purchase Agreement, the Indenture and the Trust Agreement to be consummated on the Transfer Date shall be consummated on such date.

 

ARTICLE V

 

COVENANTS OF THE SELLER AND THE DEPOSITOR

 

The Seller and the Depositor agree with each other, respectively, and the Indenture Trustee as follows:

 

SECTION 5.01  Protection of Right, Title and Interest.

 

(a)      Filings.  The Seller shall cause at its own expense all financing statements and continuation statements and any other necessary documents covering the right, title and interest of the Seller, the Depositor, the Issuer and the Indenture Trustee, respectively, in and to the Receivables and the other property included in the Trust Estate to be promptly filed and at all times to be kept recorded, registered and filed, all in such manner and in such places as may be required by law fully to preserve and protect the right, title and interest of the Depositor hereunder, the Issuer under the Sale and Servicing Agreement and the Indenture Trustee under the Indenture in and to the Receivables and the other property included in the Trust Estate.  The Seller shall deliver to the Depositor and the Indenture Trustee file-stamped copies of, or filing receipts for, any document recorded, registered or filed as provided above, as soon as available following such recordation, registration or filing.  The Depositor shall cooperate fully with the Seller in connection with the obligations set forth above and will execute any and all documents reasonably required to fulfill the intent of this paragraph.

 

(b)      Name Change.  If the Seller makes any change in its jurisdiction of organization (within the meaning of the applicable UCC), name or corporate structure that would

 

  

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make any financing statement or continuation statement filed in accordance with paragraph (a) above seriously misleading within the applicable provisions of the UCC or any title statute, the Seller shall give the Depositor, the Indenture Trustee and the Owner Trustee written notice thereof at least 45 days prior to such change and shall promptly file such financing statements or amendments as may be necessary to continue the perfection of the Depositor’s interest in the Conveyed Assets.

 

SECTION 5.02  Other Liens or Interests.  Except for the conveyances hereunder and pursuant to the Basic Documents, the Seller shall not sell, pledge, assign or transfer to any Person, or grant, create, incur, assume, or suffer to exist any Lien on, or any interest in, to or under the Conveyed Assets, and the Seller shall defend the right, title and interest of the Depositor, the Issuer and the Indenture Trustee in, to and under the Conveyed Assets against all claims of third parties claiming through or under the Seller.

 

SECTION 5.03  Costs and Expenses.  The Seller agrees to pay all reasonable costs and disbursements in connection with the perfection, as against all third parties, of the Depositor’s, the Issuer’s and the Indenture Trustee’s right, title and interest in and to the Receivables and the other property included in the Trust Estate.

 

SECTION 5.04  Hold Harmless.  The Seller shall protect, defend, indemnify and hold the Depositor, the Issuer, the Noteholders, the Underwriters and their respective assigns and their employees, officers and directors harmless from and against all losses, liabilities, claims and damages of every kind and character, including any legal or other expenses reasonably incurred, as incurred, resulting from or relating to or arising out of (i) the inaccuracy, nonfulfillment or breach of any representation, warranty, covenant or agreement made by the Seller in this Agreement, (ii) any legal action, including, without limitation, any counterclaim, that has either been settled by the litigants or has proceeded to judgment by a court of competent jurisdiction, in either case to the extent it is based upon alleged facts that, if true, would constitute a breach of any representation, warranty, covenant or agreement made by the Seller in this Agreement, or (iii) any failure of a Receivable to be originated in compliance with all applicable requirements of law.  These indemnity obligations shall be in addition to any obligation that the Seller may otherwise have.

 

SECTION 5.05  Compliance with the FDIC Rule.  The Seller shall (i) perform the covenants set forth in Article XII of the Indenture applicable to it (including as “sponsor”, as defined in Section 12.01(c) of the Indenture) and (ii) facilitate compliance with Article XII of the Indenture by the FDIC Rule Parties.  So long as any outstanding Notes are secured by the Receivables sold by the Seller to the Depositor pursuant to the terms of this Agreement, this Agreement shall be treated as an official record of the Seller within the meaning of Section 13(e) of the Federal Deposit Insurance Act (12 U.S.C. Section 1823(e)).

 

  

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ARTICLE VI

 

MISCELLANEOUS PROVISIONS

 

SECTION 6.01  Obligations of Seller.  The obligations of the Seller under this Agreement shall not be affected by reason of any invalidity, illegality or irregularity of any Receivable.

 

SECTION 6.02  Repurchase Events.

 

(a)      The Seller hereby covenants and agrees with the Depositor for the benefit of the Depositor, the Indenture Trustee, the Issuer, the Owner Trustee, the Certificateholders and the Noteholders that the occurrence of a breach of any of the Seller’s representations and warranties contained in Section 3.02 and Section 3.03 that materially and adversely affects the interests of the Issuer, the Indenture Trustee, the Owner Trustee, the Certificateholders or the Noteholders in any Receivable, without regard to any limitation set forth in such representation or warranty concerning the knowledge of the Seller as to the facts stated therein shall constitute an event obligating the Seller to repurchase the Receivables to which such failure or breach is applicable from the Issuer on or before the last day of the second Collection Period following the Collection Period in which it discovers or receives notice of such failure or breach (or, at the Seller’s election the last day of the first Collection Period following the Collection Period in which it discovers or receives notice of such breach), unless any such failure or breach shall have been cured in all material respects by such date.  In consideration of such repurchase, the Seller shall deposit or cause to be deposited, into the Collection Account, an amount equal to the Purchase Amount with respect to such Receivable on or prior to such date of such repurchase, and shall notify the Indenture Trustee and the Servicer of such deposit.  The Seller further agrees that it shall promptly deposit or cause to be deposited into the Collection Account, the Dealer Recourse Amount related to any Receivable in satisfaction of any Purchase Amount in respect of such Receivable that is due and which remains unpaid by the Seller.

 

(b)      The Seller shall have the option to repurchase from the Depositor, from time to time, any of the Receivables sold to the Depositor under this Agreement for the related Purchase Amount; provided, that the aggregate outstanding principal balance of all such Receivables repurchased and to be repurchased shall not exceed 2.0% of the aggregate outstanding principal balance of all of the Receivables sold to the Depositor hereunder, in each case measured as of the Cutoff Date.  If the Seller shall exercise such option, it shall deposit or cause to be deposited into the Collection Account, an amount equal to the Purchase Amount with respect to such Receivable on or prior to the date of such repurchase, and shall notify the Indenture Trustee and the Servicer of such deposit.

 

SECTION 6.03  Depositor Assignment of Repurchased Receivables.  With respect to all Receivables repurchased by the Seller pursuant to this Agreement, the Depositor shall assign, without recourse, representation or warranty, to the repurchasing Seller all of the Depositor’s right, title and interest in and to such Receivables and all security and documents relating thereto.

 

  

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SECTION 6.04  Transfer to the Issuer.  The Seller acknowledges and agrees that (1) the Depositor will, pursuant to the Sale and Servicing Agreement, transfer and assign the Conveyed Assets and assign its rights under this Agreement with respect thereto to the Issuer and, pursuant to the Indenture, the Issuer will pledge the Conveyed Assets to the Indenture Trustee, and (2) the representations and warranties contained in this Agreement and the rights of the Depositor under this Agreement, including under Section 6.02, are intended to benefit the Issuer and the Noteholders.  The Seller hereby consents to such transfers and assignments and agrees that enforcement of a right or remedy hereunder by the Indenture Trustee, the Owner Trustee or the Issuer, including the right to require the Seller to repurchase any Receivable pursuant to Section 6.02(a), shall have the same force and effect as if the right or remedy had been enforced or executed by the Depositor, and agrees that no such party shall be obligated to exercise any such rights through the Depositor.

 

SECTION 6.05  Amendment.  This Agreement may be amended from time to time, with prior written notice to the Rating Agencies, but without the consent of the Noteholders or the Certificateholders, by a written amendment duly executed and delivered by the Seller and the Depositor, for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or of modifying in any manner the rights of Noteholders or Certificateholders; provided that such amendment shall not, as evidenced by an Opinion of Counsel, materially and adversely affect the interest of any Noteholder or Certificateholder; provided further, that such action shall be deemed not to adversely affect in any material respect the interests of any Noteholder or Certificateholder and no Opinion of Counsel to that effect shall be required if the Rating Agency Condition is satisfied with respect to each Rating Agency.  This Agreement may also be amended by the Seller and the Depositor, with prior written notice to the Rating Agencies and the prior written consent of Holders of Notes evidencing at least a majority of the Outstanding Amount of the Notes and the Holders (as defined in the Trust Agreement) of outstanding Certificates evidencing not less than a majority of the outstanding aggregate Certificate Percentage Interest (as defined in the Trust Agreement), for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or of modifying in any manner the rights of the Noteholders or the Certificateholders; provided, however, that no such amendment may (i) increase or reduce in any manner the amount of, or accelerate or delay the timing of, collections of payments on Receivables or distributions that are required to be made for the benefit of Noteholders or Certificateholders or (ii) reduce the aforesaid percentage of the Notes or the Certificates that is required to consent to any such amendment, without the consent of the Holders of all the Outstanding Notes and all of the Certificates.

 

SECTION 6.06  Waivers.  No failure or delay on the part of the Depositor, the Issuer or the Indenture Trustee in exercising any power, right or remedy under this Agreement or any bill of sale shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or remedy preclude any other or further exercise thereof or the exercise of any other power, right or remedy.

 

SECTION 6.07  Notices.  All demands, notices and communications under this Agreement shall be in writing, personally delivered, faxed and followed by first class mail, or mailed by certified mail, return receipt requested, and shall be deemed to have been duly given upon receipt (a) in the case of the Depositor, to 300 Chestnut Ridge Road, Woodcliff Lake, New

 

  

23

  

Jersey 07677, Attention: Vice President-Finance & CFO; (b) in the case of the Servicer, Administrator and Custodian, to 300 Chestnut Ridge Road, Woodcliff Lake, New Jersey 07677, Attention: Vice President of-Finance & CFO; (c) in the case of the Seller, 2735 East Parleys Way, Suite 301, Salt Lake City, Utah 84109, Attention: BMW Bank Chief Financial Officer; (d) in the case of the Issuer or the Owner Trustee, at the Corporate Trust Office (as defined in the Trust Agreement); (e) in the case of Moody’s, to 7 World Trade Center, 250 Greenwich Street, 25th Floor, New York, New York 10007, Attention: ABS/RMBS Monitoring Department, Email: ServicerReports@moodys.com; and (f) in the case of Fitch, to 33 Whitehall Street, New York, New York 10004, Email: notifications.abs@fitchratings.com, Fax: 212-514-9879; or, as to each of the foregoing, at such other address as shall be designated by written notice to the other parties.

 

SECTION 6.08  Costs and Expenses.  The Seller shall pay all expenses incident to the performance of its obligations under this Agreement and the Seller agrees to pay all reasonable out-of-pocket costs and expenses of the Depositor, in connection with the perfection as against third parties of the Depositor’s, the Issuer’s and the Indenture Trustee’s right, title and interest in and to the Receivables and the enforcement of any obligation of the Seller hereunder.

 

SECTION 6.09  Representations of the Seller and the Depositor.  The respective agreements, representations, warranties and other statements by the Seller and the Depositor set forth in or made pursuant to this Agreement shall remain in full force and effect and will survive the closing under Section 2.02 and the transfers and assignments referred to in Section 6.04.

 

SECTION 6.10  Confidential Information.  The Depositor agrees that it will neither use nor disclose to any Person the names and addresses of the Obligors, except in connection with the enforcement of the Depositor’s rights hereunder, under the Receivables, under the Sale and Servicing Agreement or any other Basic Document, or as required by any of the foregoing or by law.

 

SECTION 6.11  Headings and Cross-References.  The various headings in this Agreement are included for convenience only and shall not affect the meaning or interpretation of any provision of this Agreement.  References in this Agreement to section names or numbers are to such Sections of this Agreement.

 

SECTION 6.12  Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

SECTION 6.13  Counterparts.  This Agreement may be executed in counterparts, each of which shall be an original, but all of which together shall constitute one and the same instrument.

 

  

24

  

SECTION 6.14  Third Party Beneficiary.  The Indenture Trustee is an express third party beneficiary of this Agreement and shall be entitled to enforce the provisions of this Agreement as if it were a party hereto.

 

SECTION 6.15  No Proceedings.  The Seller hereby covenants and agrees that it will not, at any time, petition or otherwise invoke or cause the Issuer or the Depositor to invoke the process of any court or government authority for the purpose of commencing or sustaining a case against the Issuer or the Depositor under any federal or state bankruptcy, insolvency or similar law, or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Issuer or the Depositor or any substantial part of its property, or ordering the winding up or liquidation of the affairs of the Issuer or the Depositor.

 

  

25

  

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

 

BMW BANK OF NORTH AMERICA

 

By:    _______________________________________

Name:

Title:

 

By:    _______________________________________

Name:

Title:

 

BMW FS SECURITIES LLC

 

By:  _______________________________________

Name:

Title:

 

By:  _______________________________________

Name:

Title:

 

  

  

  

SCHEDULE I

 

Schedule of Receivables

 

[Delivered to the Owner Trustee at Close]

 

  

1

  

SCHEDULE II

 

Location of Receivable Files

 

BMW Bank of North America

5550 Britton Parkway

Hilliard, Ohio 43016

  

1

  

SCHEDULE III

 

PERFECTION REPRESENTATIONS, WARRANTIES AND COVENANTS

 

          In addition to the representations, warranties and covenants contained in this Agreement, the Seller hereby represents, warrants and covenants to the Depositor as follows on the Closing Date:

 

General

 

          1.       This Agreement creates a valid and continuing security interest (as defined in the applicable UCC) in the Receivables and the other Conveyed Assets in favor of the Depositor, which security interest is prior to all other Liens, and is enforceable as such against creditors of and purchasers from the Seller.

 

          2.       The Receivables constitute “chattel paper” (including “electronic chattel paper” and “tangible chattel paper”) within the meaning of the applicable UCC.

 

          3.       Each Receivable is secured by a first priority validly perfected security interest in the related Financed Vehicle in favor of the Seller, as secured party, or all necessary actions with respect to such Receivable have been taken or will be taken to perfect a first priority security interest in the related Financed Vehicle in favor of the Seller, as secured party.

 

Creation

 

          4.       Immediately prior to the sale, transfer, assignment and conveyance of a Receivable by the Seller to the Depositor, the Seller owned and had good and marketable title to such Receivable free and clear of any Lien and immediately after the sale, transfer, assignment and conveyance of such Receivable to the Depositor, the Depositor will have good and marketable title to such Receivable free and clear of any Lien.

 

Perfection

 

          5.       The Seller has caused or will have caused, within ten days after the effective date of this Agreement, the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions under applicable law in order to perfect the security interest in the Conveyed Assets granted to the Depositor hereunder; and the Servicer, in its capacity as custodian, has in its possession the original copies of such “instruments” or “tangible chattel paper” and the “authoritative copy” of such “electronic chattel paper” that constitute or evidence the Receivables, and all financing statements referred to in this paragraph contain a statement that: “A purchase of or security interest in any collateral described in this financing statement will violate the rights of the Secured Party/Depositor.”

 

          6.       With respect to Receivables that constitute “instruments” or “tangible chattel paper”, such instruments or tangible chattel paper are in the possession of the Servicer and the Indenture Trustee has received a written acknowledgment from the Servicer that the Servicer (in

 

  

1

  

 

its capacity as custodian) is holding such instruments or tangible chattel paper solely on behalf and for the benefit of the Indenture Trustee.

 

Priority

 

          7.       The Seller has not authorized the filing of, and is not aware of, any financing statements against the Seller that include a description of collateral covering the Receivables other than any financing statement (i) relating to the conveyance of the Receivables by the Seller to the Depositor under the Receivables Purchase Agreement, (ii) relating to the conveyance of the Receivables by the Depositor to the Issuer under the Sale and Servicing Agreement, (iii) relating to the security interest granted to the Indenture Trustee under the Indenture or (iv) that has been terminated.

 

          8.       The Seller is not aware of any material judgment, ERISA or tax lien filings against the Seller.

 

          9.       Neither the Seller nor a custodian or vaulting agent thereof holding any Receivable that is “electronic chattel paper” has communicated an “authoritative copy” (as such term is used in Section 9-105 of the UCC) of any loan agreement that constitutes or evidences such Receivable to any Person other than the Servicer.

 

          10.       None of the tangible chattel paper or electronic chattel paper that constitute or evidence the Receivables has any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any Person other than the Depositor, the Issuer or the Indenture Trustee.

 

Survival of Perfection Representations

 

          11.       Notwithstanding any other provision of this Agreement or any other Basic Document, the perfection representations, warranties and covenants contained in this Schedule III shall be continuing, and remain in full force and effect until such time as all obligations under the Basic Documents and the Notes have been finally and fully paid and performed.

 

No Waiver

 

          12.       The parties to this Agreement shall provide the Rating Agencies with prompt written notice of any material breach of the perfection representations, warranties and covenants contained in this Schedule III, and shall not, without satisfying the Rating Agency Condition with respect to each Rating Agency, waive a breach of any of such perfection representations, warranties or covenants.

 

  

2EX-10.11

 Exhibit 10.11 

CO-BRAND CREDIT CARD PROGRAM AGREEMENT 

BETWEEN 
 COMENITY
CAPITAL BANK 
 AND 

VIRGIN AMERICA INC. 

DATED AS OF MAY 16, 2013 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 TABLE OF CONTENTS 

 

			
	
	 SECTION 1. PROGRAM SUMMARY AND DEFINITIONS

	     1.1
	 	Program Summary
	     1.2
	 	Definitions and Other Obligations
	
	 SECTION 2. ESTABLISHMENT OF THE PROGRAM

	     2.1
	 	Establishment of the Program; Applications for Credit
	     2.2
	 	Internet Features
	     2.3
	 	Operating Procedures
	     2.4
	 	Program Documents (Forms and Collateral)
	     2.5
	 	Marketing and Promotion of Program
	     2.6
	 	Ownership of Accounts and Information
	     2.7
	 	Protection Programs and Enhancement Marketing Services
	     2.8
	 	Ownership and Licensing of the Party’s Marks
	     2.9
	 	Elevate Rewards Program
	     2.10
	 	Program Value Proposition
	     2.11
	 	Card Network Selection
	     2.12
	 	Network Products
	
	 SECTION 3. OPERATION OF THE PROGRAM

	     3.1
	 	Processing Through Card Network
	     3.2
	 	Ownership of Accounts; Fees; Accounting
	     3.3
	 	Bank Mailings; Insertion of Virgin’s Promotional Materials
	     3.4
	 	Payments
	     3.5
	 	*****
	     3.6
	 	Reports
	     3.7
	 	*****
	     3.8
	 	Purchase, Reporting and Posting of Elevate Points
	     3.9
	 	Program Economics
	     3.10
	 	Implementation
	
	 SECTION 4. REPRESENTATIONS AND WARRANTIES

	     4.1
	 	Organization, Power and Qualification
	     4.2
	 	Authorization, Validity and Non-Contravention
	     4.3
	 	Compliance with Law
	     4.4
	 	Intellectual Property Rights
	     4.5
	 	Virgin Marks
	
	 SECTION 5. COVENANTS

	     5.1
	 	Notices of Changes
	     5.2
	 	Financial Statements
	     5.3
	 	Access Rights
	     5.4
	 	Each Party’s Business
	     5.5
	 	Insurance
	     5.6
	 	Compliance with Agreement and Applicable Law
	
	 SECTION 6. INDEMNIFICATION

	     6.1
	 	Indemnification Obligations
	     6.2
	 	LIMITATION ON LIABILITY
	     6.3
	 	NO WARRANTIES
	     6.4
	 	Notification of Indemnification; Conduct of Defense

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

			
	 SECTION 7. TERM, EXPIRATION AND TERMINATION

	     7.1
	 	Term and Expiration
	     7.2
	 	Termination with Cause by Bank; Bank Termination Events
	     7.3
	 	Termination with Cause by Virgin; Virgin Termination Events
	     7.4
	 	Purchase of Accounts
	     7.5
	 	Effect of Termination
	
	 SECTION 8. MISCELLANEOUS

	     8.1
	 	Entire Agreement; Amendment; No Waiver; Severability; Counterparts; Captions and Cross References; Mutual Drafting
	     8.2
	 	Coordination of Public Statements
	     8.3
	 	Successors and Assigns
	     8.4
	 	Notices
	     8.5
	 	GOVERNING LAW / WAIVER OF JURY TRIAL
	     8.6
	 	Force Majeure
	     8.7
	 	Survival
	     8.8
	 	Relationship of Parties; Third Parties; Independent Contractor
	     8.9
	 	Confidentiality and Security Control
	     8.10
	 	Taxes
	
	 SCHEDULES

	     1.2
	 	Definitions and Other Obligations
	     1.2(a)
	 	Bank Marks
	     1.2(b)
	 	Virgin Marks
	     2.1 (f)
	 	EV Process
	     2.1 (g)
	 	Approval Rates
	     2.1 (i)
	 	Operating Committee
	     2.1 (h)
	 	Service Standards
	     2.4 (a)
	 	Virgin Marks on Cardholder Materials
	     2.4(d)(ii)
	 	Bank Standard Specifications for Forms
	     2.5(a)
	 	Marketing Promotions
	     2.5(b)
	 	Marketing Funds
	     2.6
	 	Monthly Master File Information
	     2.6(c)(i)
	 	Securitization of Accounts
	     2.9(a)
	 	Elevate Rewards Program
	     2.10
	 	Program Value Proposition
	     3.2(b)
	 	Summary of Rates and Fees
	     3.6
	 	Bank Reports
	     3.9
	 	Payment Obligations
	     7.1
	 	Term and Expiration
	     7.4
	 	Purchase of Accounts

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 CO-BRAND CREDIT CARD PROGRAM AGREEMENT 

THIS CO-BRAND CREDIT CARD PROGRAM AGREEMENT (together with any schedules, exhibits, addenda, and future amendments and supplements hereto,
this “Agreement”) is made as of the 16th day of May, 2013 (the “Effective Date”), by and between VIRGIN AMERICA INC., a Delaware corporation, with its principal office at 555 Airport Boulevard, Burlingame, CA 94402 (hereinafter
referred to as “Virgin”), and COMENITY CAPITAL BANK, with its principal office at 2795 E. Cottonwood Parkway, Suite #100, Salt Lake City, UT 84121 (hereinafter referred to as “Bank”). 

WITNESSETH: 
 WHEREAS,
Virgin is the owner of a loyalty program (the “Elevate Rewards Program”) under which Members are awarded Elevate Points, which Elevate Points are eligible for redemption by Members for travel on Virgin’s airline and for other Virgin
products and services in accordance with the terms and conditions of the Elevate Rewards Program; and 
 WHEREAS, Virgin has requested Bank
to extend credit to qualifying Members in the form of co-brand credit card accounts and to issue Credit Cards to such Members (as such capitalized terms are defined below); and 

WHEREAS, Bank is a member of various Card Networks and is an issuer of general purpose credit cards throughout the United States; and 

WHEREAS, Bank shall own and service all the Accounts as more fully set forth herein; and 

NOW THEREFORE, in consideration of the terms and conditions hereof, and for other good and valuable consideration, the receipt of which is
hereby mutually acknowledged by the parties, Virgin and Bank agree as follows. 
 SECTION 1 PROGRAM SUMMARY AND DEFINITIONS

 1.1 Program Summary. For the benefit of both parties hereto, Virgin and Bank have agreed to collaboratively launch,
promote and maintain the Program, to be offered to customers, prospective customers, and employees of Virgin in the United States. The parties’ intent is that they will work in collaboration (emphasizing communication and good faith efforts) to
maximize the value of the Program for their mutual benefit. To that end, the parties agree that, although the provisions of this Section 1.1 do not supersede either party’s rights and obligations as set forth elsewhere in this Agreement,
it is the intent of each party that its respective performance under this Agreement shall be guided by the following objectives: 
  

	 	•	 	Generate new Accounts and improve Net Sales 

  

	 	•	 	Develop and cultivate Member relationships and build loyalty 

  

	 	•	 	Improve overall profitability for Virgin 

 In order to achieve the Program objectives, an extraordinary amount
of cooperation and communication between the parties is essential. Accordingly, the parties shall establish an Operating Committee as set forth in Section 2.1 (i). Through such Operating Committee, the parties shall work together in good faith
to review, discuss and address any particular concerns that either such party has with regard to the general performance of the overall portfolio, as well as any matters which either party believes to be material with respect to the ongoing
administration of the Program. 
 1.2 Definitions and Other Obligations. See Schedule 1.2. 

SECTION 2 ESTABLISHMENT OF THE PROGRAM 

2.1 Establishment of the Program; Applications for Credit. 

(a) The Program is established for the primary purposes of providing Member financing for purchasing goods and/or services, promoting and
enhancing the benefits associated with the Elevate Rewards Program, and providing Bank and Virgin a commercially reasonable financial return. 

(b) Virgin and Bank shall use reasonable efforts to commence the Program on January 1, 2014, or such earlier date as the parties mutually
agree upon in writing. 
 (c) Applicants who wish to apply for an Account under the Program must submit a completed application on a form or
in an electronic format approved by Bank, and Bank shall grant or deny the request for credit based upon Bank’s credit criteria. The decision to extend credit to any Applicant under the Program shall be solely Bank’s decision. 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 (d) When facilitating any Application Procedure, Virgin shall follow all applicable Operating
Procedures and maintain the confidentiality of all Applicant data pursuant to Section 8.9. Depending on the Application Procedure utilized, the application shall be submitted to Bank by the Applicant or submitted by Virgin on behalf of the
Applicant, as required in the Operating Procedures. 
 (e) The initial Application Procedures for the Program shall be direct mail, instant
credit, real time prescreen, batch prescreen, take ones, and web/mobile. At any time during the Term the parties may mutually agree to utilize Bank’s other Application Procedures. Bank acknowledges that real time prescreen may not be the
optimal method for acquiring Accounts and that it is possible that full application methodologies may be more effective with certain segments and channels and agrees to test application methodologies mutually agreed by the parties to determine the
methodologies that maximize program acquisition and spending metrics, such metrics to be mutually agreed upon by the parties. 
 (f)
Qualified Applicants desiring to use the Program shall be granted an Account and issued the applicable Credit Card product for which they qualify by Bank with a credit line in an amount to be determined by Bank in its discretion, but no less
favorable than the standard lines assigned for other similar Bank cobrand programs. Bank shall determine the terms and conditions of the Account to be contained in a Credit Card Agreement. To the extent any Applicant that is granted an Account is
not already a Member, Bank will provide Virgin with such Applicant’s name, address, and e-mail and Virgin will enroll such Applicant into the Elevate Rewards Program. Bank will ***** the Credit Card mailed to the Cardholder, subject to Virgin
providing the applicable ***** information to Bank during the application process. As a point of clarity, Bank shall not issue a Credit Card until Virgin either confirms that the Member number provided by the Member is accurate or provides a new
Member number in the event that the Applicant is not currently a Member. Bank and Virgin shall cooperate to develop a process that effects the foregoing in a manner that complies with Applicable Law and with the objective of not delaying the
Bank’s opening of an Account by more than ***** (“EV Process”). The agreed upon EV Process is portrayed in Schedule 2.1(f). Any delays due to the EV Process shall be excluded for the purpose of measuring the applicable Service
Standards. 
 (g) Bank shall perform all functions necessary to administer and service the Accounts, including but not limited to:
establishing and administering the underwriting and credit decisions for the Program; making all necessary credit investigations; notifying Applicants in writing of acceptance or rejection of credit under the Program; preparing and mailing billing
statements; making collections; funding receivables; handling Cardholder inquiries managing billing issues, merchant inquiries and fraud control; and processing payments. See also Schedule 2.1 (g) with respect to Bank’s credit decisions.

 (h) Bank shall perform in accordance with the Service Standards set forth in Schedule 2.1 (h). Bank will provide Virgin with a monthly
summary of Bank’s performance regarding the Service Standards. 
 (i) The parties shall establish an Operating Committee to review and
discuss (i) marketing efforts and Marketing Fund usage; (ii) the general performance of the Program; and (iii) any matters which either party believes to be material with respect to the ongoing administration and/or operation of the
Program. The Operating Committee shall include participation at the management level from both parties. Additional details of the Operating Committee are set forth in Schedule 2.1 (i). 

2.2 Internet Features. Bank shall establish an Account Center for the Program, and Virgin shall provide a weblink to the Account
Center. In the event Bank changes or otherwise modifies the website address for its designated website, Virgin will either update or modify its link thereto, as directed by Bank subject to commercial reasonableness. 

2.3 Operating Procedures. Virgin shall observe and comply with the Operating Procedures on not less than ***** prior notice to Virgin
or otherwise required by Applicable Law or applicable Card Network rules and regulations. The Operating Procedures may be amended or modified by Bank from time to time in its reasonable discretion; provided, however, unless such changes are required
by Applicable Law, a copy of any such amendment or modification shall be provided to Virgin at least ***** before its effective date, and for those changes required by Applicable Law or Card Network rules and regulations, if applicable, notice shall
be given *****. The parties will work together in good faith to establish, maintain, amend and improve the procedures needed to carry out the agreed operational tasks for the Program. 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 2.4 Program Documents (Forms and Collateral). (a) Forms - General. Subject to
(b) below, Bank shall design, determine the terms and conditions of, and generate the form of the Credit Card Agreement, applications, Credit Card, card mailers, PIN mailers, privacy notices, billing statements (including backers), Cardholder
letters, templates, and other documents and forms to be used under the Program which (i) relate to the Program, (ii) relate to Bank’s and/or the Cardholder’s obligations, (iii) are used by Bank in maintaining and servicing
the Accounts; or (iv) are required by Applicable Law (collectively, “Forms”). All Forms shall be in the English language only unless otherwise agreed by the parties in writing, and there shall be only one design for each Form.
Notwithstanding the above, Bank and Virgin shall jointly design any Member marketing aspects of billing statements, Credit Cards, and card mailers and Bank shall endeavor to integrate Virgin branding elements on the foregoing Forms when possible and
appropriate and if requested by Virgin at no cost to Virgin (subject to costs relating to deviations from Bank’s standard specifications for such Forms as provided in 2.4(d)(ii) below). For the avoidance of doubt, Bank shall use the Virgin
Marks on Forms and Cardholder communications in a manner consistent with the guidelines set forth in Schedule 2.4(a). 
 (b)
Collateral. Virgin may design and produce promotional material, direct mail pieces, catalog, newspaper, radio and electronic advertisements, and other collateral documents (collectively, “Collateral”) which reference the Program.
Virgin shall submit all Collateral to Bank for its review and approval solely of the Program disclosures, as well as references to the Program and use of Bank Marks. Pursuant to this review and approval process, Virgin will make (or have made) all
changes that Bank requests to satisfy Applicable Law and/or in exercising its rights regarding Bank Marks under this Agreement. 
 (c)
Bank’s Costs. Subject to subsection (d) below, Bank will determine which and how many of the following to provide, which shall be at its expense. First, Bank will provide to Virgin at one central location, for distribution to
Members and Cardholders, marketing purposes, and mass mailings, as applicable: (i) adequate copies of Credit Card Agreements and applications; and (ii) the template of any appropriate Forms. Second, Bank shall provide an appropriate number
of (or copies of, as applicable) Credit Card Agreements, applications, Credit Cards, billing statements, and card mailers. 
 (d)
Virgin’s Costs. (i) Virgin Re-issuances and Upgrades. Virgin shall pay any and all direct costs (including but not limited to embossing and encoding plastics, Forms, Collateral and postage) related to any re-issuance of
Credit Cards to Cardholders that Virgin requests or that is necessitated solely by Virgin’s decisions and/or actions, including any re-issuance due to a change in Card Network pursuant to Section 2.11 (collectively “Virgin
Re-issuances”). Bank will charge Virgin no more than ***** per Account for costs resulting from Virgin’s request to change the Card Network pursuant to Section 2.11. 

(ii) Variations from Bank’s Standards. If a request or requirement (as applicable) of Virgin with regard to any Program Documents
requires a variation from Bank’s standard specifications, and such variation causes an increase in any cost of Bank, Virgin shall bear the additional expense. In the event any Forms become obsolete as a result of changes requested by Virgin or
necessitated solely by its decisions and/or actions, Virgin shall reimburse Bank for the costs associated with any unused obsolete Forms. The Bank’s standard specifications for Forms are outlined in Schedule 2.4(d)(ii) of this Agreement. For
the sake of clarity, Bank shall customize the appropriate Program materials with Virgin Marks and such customization shall not be considered a variation from Bank’s standard specifications. 

2.5 Marketing and Promotion of Program. (a) Throughout the Term of this Agreement, Virgin and Bank shall actively and consistently
market, promote, participate in and support the Program, including without limitation those marketing promotions set forth in Schedule 2.5 (a) and such other methods mutually agreed upon by Virgin and Bank. Virgin and Bank will jointly agree
upon programs to market the Program, both initially and on a continuing basis. 
 (b) Bank shall contribute the amounts set forth in
Schedule 2.5 (b) to apply to mutually agreed upon marketing and promotion expenses associated with the Program, such agreement not to be unreasonably withheld. All of such funds shall be referred to herein as the “Marketing Fund.”
Virgin shall pay all marketing and promotion expenses directly as they are incurred by Virgin, and shall send Bank an invoice for the aggregate amount of the expenditures mutually agreed upon by the parties, together with supporting documentation
reasonably satisfactory to Bank for such expenses. Bank shall then reimburse Virgin. For marketing and promotion expenses mutually agreed by the parties and incurred by Bank, Bank shall send Virgin documentation reasonably satisfactory to Virgin for
such expenses and Bank shall deduct such amounts from the Marketing Fund. Bank shall have the right to cease the availability of the Marketing Funds contributed by Bank for any 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 
future marketing or promotions if either party: (i) terminates this Agreement, (ii) notifies the other party of an intent to terminate or the fact that the notifying party has already
terminated this Agreement, or (iii) notifies the other of an intent to allow this Agreement to expire. If the Marketing Funds are not used in the Program Year they are contributed, they will roll over and shall be used within the first ***** of
the next Program Year. 
 2.6 Ownership of Accounts and Information. (a) Virgin and Bank recognize that Cardholders are Members,
and that each party has certain ownership rights in information relating to such individuals in their respective roles as Cardholders and Members. The parties acknowledge that the same or similar information may be contained in the Bank Cardholder
Information (defined below) and Virgin Member Information (defined below); such common information being referred to herein as “Common Information”. Each such pool of data shall therefore be considered separate information subject to the
specific provisions applicable to that data hereunder. 
 (b) The Members’ names and addresses and other Member information collected
by Virgin independent of Bank and set forth in Virgin’s records shall be the exclusive property of Virgin; such information and Virgin’s Common Information shall be referred to collectively as “Virgin Member Information”. Prior
to the Program Commencement Date, Virgin shall provide to Bank no less than ***** marketable Member names and addresses, as well as e-mail addresses, which e-mail addresses will only be used by Bank in connection with marketing initiatives approved
by the Operating Committee. Additionally, as requested by Bank and in any event, no less than *****, Virgin shall provide the names, addresses, telephone numbers and e-mail addresses of new marketable Members to Bank, to be used only for purposes of
(i) evaluating such Member’s creditworthiness, (ii) soliciting such Members for Credit Cards, (iii) administering the Program in accordance with the terms of this Agreement and Applicable Law. Bank shall protect the
confidentiality of such information as set forth in Section 8.9. 
 (c) (i) Subject to Virgin’s rights pursuant to Schedule 7.4,
Bank shall own the Program, and all Accounts under the Program, from the time of establishment and Virgin shall not have any right to any indebtedness on an Account or to any Account payment from a Cardholder arising out of or in connection with any
Purchases under the Program. Additionally, all information related to the Program, the Accounts set forth in Bank’s records, including without limitation the information listed in Schedule 2.6, the information obtained through applications, the
receivables, names, addresses, credit, and transaction information of Cardholders shall be the exclusive property of Bank. Such information and Bank’s Common Information shall be referred to collectively as “Bank Cardholder
Information”. Bank shall keep the Accounts and receivables from such Accounts free and clear of any claims, liens, security interests, pledges, encumbrances and similar claims and Bank shall not sell, assign, transfer pledge, securitize or
otherwise transfer any Account or any receivable generated by any Account except that (i) Bank shall have the right to securitize receivables generated by the Accounts in accordance with the terms of Schedule 2.6(c)(i) provided, that any such
Bank securitization shall not interfere in any manner with the Virgin’s right to purchase the Accounts in accordance with Schedule 7.4 and (ii) Bank may sell or transfer written-off Accounts in connection with Bank’s ordinary course
collections actions. 
 (ii) Bank shall provide to Virgin ***** one (1) master file extract, initially containing the information set
forth on Schedule 2.6, and subject to change by Bank at any time. Bank may agree to share additional Confidential Information and/or Bank Cardholder Information with Virgin and, unless Bank consents otherwise in advance and in writing, Virgin shall
keep such Confidential Information and Bank Cardholder Information confidential as set forth in Section 8.9, and shall not disclose such information to any third-party nor sell, lease, or otherwise transfer such information to any third-party.

 2.7 Protection Programs and Enhancement Marketing Services. ***** 

2.8 Ownership and Licensing of the Parties’ Marks. (a) Subject to the other provisions of this Agreement, Virgin hereby
grants to Bank a royalty-free, non-exclusive (except as to branded credit account and card plans per Section 3.5), non-transferable limited license to use the Virgin Marks in the United States solely in satisfaction of its duties, rights and
obligations described in this Agreement, including without limitation, using same in any and all promotional materials, Account documentation, advertising, websites, marketing, and solicitations related to the Program, subject to the prior written
approval of Virgin, which will not be unreasonably withheld or delayed. Bank shall use the trademark designations “®” or “TM” or such other designation as Virgin may
specify or approve in connection with the Virgin Marks on the Credit Cards, Account documentation and promotional materials. Bank agrees it will not use the Virgin Marks on or in connection with any products or services or for any other purpose
other than (i) as explicitly described in this Agreement, (ii) for Bank’s securitization activities; and/or (iii) as required by Applicable Law. In connection with any securitization activities, Bank agrees to prevent the use or
publication of any of the Virgin Marks or of the Virgin America name in the title 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 
or subtitle of any offered securities or in any related prospectus, registration statement or offering materials, other than (i) in a narrative description or table describing the
characteristics and/or performance of the designated Accounts for which receivables are being securitized; (ii) a narrative description of the terms of this Agreement, if in connection with any termination or potential termination of this
Agreement, Bank in its discretion believes such termination or potential termination of this Agreement (including the terms of the Agreement relating to termination of the Program) would be material to the holders of any offered securities;
(iii) any publicly available information relating to Virgin or its Affiliates that Bank in its discretion believes would be material to the holders of any offered securities; (iv) with the prior written approval of Virgin, in a narrative
description of the terms of this Agreement; and (v) without limiting the foregoing, such information as may be required to comply with any federal or state securities laws or regulations in connection with any offered securities. 

(b) Anything in this Agreement to the contrary notwithstanding, Virgin shall retain all rights in and to the Virgin Marks pertaining to such
Accounts, and all goodwill associated with the use of the Virgin Marks (whether under this Agreement or otherwise) shall inure to the benefit of Virgin. Virgin shall have the right, in its sole and absolute discretion, to prohibit the use of any
Virgin Marks in any Forms, advertisements or other materials or references proposed to be used by Bank which Virgin in its reasonable business judgment deems objectionable or improper and Bank shall follow the guidelines for the use of the Virgin
Marks as set forth in Schedule 2.4(a). Bank shall cease all use of the Virgin Marks upon the termination of this Agreement for any reason unless Bank retains the Accounts after termination of the Agreement. In that case, Bank may use the Virgin
Marks for up to ***** following termination solely in connection with the administration and collection of the Accounts. 
 (c) Virgin
recognizes that Bank is the sole owner of the Bank Marks, that Virgin has no rights of ownership or license therein, and that Virgin is not entitled to (and shall not) use the Bank Marks other than as explicitly and specifically provided in this
Agreement. As a point of clarification, Bank has and retains all rights in and to Bank Marks and the use thereof, and all goodwill associated with the use of Bank Marks (whether under this Agreement or otherwise) shall inure to the benefit of Bank.
Bank shall have the right, in its sole and absolute discretion, to prohibit the use of any Bank Marks in any Program Documents, advertisements, or other materials or references proposed to be used by Virgin which Bank in its reasonable business
judgment deems objectionable or improper. Virgin shall cease all use of Bank Marks upon the termination of this Agreement for any reason. 

2.9 Elevate Rewards Program. (a) Virgin is the owner of the Elevate Rewards Program (whether operated under that name or some
other chosen by Virgin). Subject to Virgin’s obligations set forth on Schedule 2.9 (a), Virgin will be responsible for determining the rules, funding and facilitating redemption of the rewards related to the Elevate Rewards Program. In
addition, Virgin will be responsible for ensuring compliance with all Applicable Laws with respect to the Elevate Rewards Program. 
 (b)
Bank and Virgin will work together to ensure system functionality tied to the Accounts to support the Elevate Rewards Program, for matters such as recording the accumulation of Elevate Points, tracking, and lookup/reporting. Any such system
functionality provided by Bank shall be at no additional charge to Virgin, to the extent the same does not require Bank to incur material additional internal or external expense. Otherwise, such functionality shall be provided pursuant to terms
(including fees to Bank) mutually agreed to by the parties. Notwithstanding the foregoing, Bank shall provide data reasonably necessary for Virgin, or its designee, to fulfill the Value Proposition associated with a Member’s Account at no cost
to Virgin. 
 2.10 Program Value Proposition. The initial benefits, features and rewards associated with the Credit Cards are set
forth in Schedule 2.10, and shall be funded by the parties as set forth therein. 
 2.11 Card Network Selection. Virgin shall have
the right to initially select the Card Network for the Program in its sole discretion. In addition, upon ***** prior written notice to Bank, Virgin may change the Card Network during the Term, in accordance with the Card Network processes and
procedures for effecting such a change. Notwithstanding the foregoing, any Bank obligations with regard to the process of changing the Card Network shall be completed, for all Accounts, no more than ***** from Bank’s notice of
Virgin’s intent to change Card Networks. 
 2.12 Card Network Products. Bank shall offer, at a minimum, the following network
products, and/or successor products, at Program Commencement and throughout the Term as applicable; Visa or MasterCard Platinum, Visa Signature or MasterCard World/World Elite. In addition, Bank shall adapt the applicable product so that it can be
effectively marketed and provided to applicants wishing to have the Card embossed with the name of their small business. Subject to the Card Network Rules, Bank shall ensure that Cards issued with credit lines equal to, or higher than, ***** shall
be issued as Visa Signature or MasterCard World/World Elite or their successor products as provided by the Network. 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 SECTION 3 OPERATION OF THE PROGRAM 

3.1 Processing Through Card Network 

Virgin shall honor any Credit Card properly issued and currently authorized by Bank pursuant to the Program. So long as the Program
transactions are processed through the Card Network, settlement, disputes and chargebacks shall be governed by the Card Network Rules. 

3.2 Ownership of Accounts; Fees; Accounting. (a) Bank shall own all the Accounts under the Program from the time of establishment,
and except as otherwise provided herein, Virgin shall not have any right to any indebtedness on an Account or to any Account payment from a Cardholder. 

(b) The Credit Card Agreement shall include the Rates and Fees as are set forth in Schedule 3.2 (b). In connection with its servicing of the
Accounts, Bank may make changes to the Credit Card Agreement on an individual Account by Account basis and without notice to Virgin. On other than an Account by Account basis, Bank may make non-Rates and Fees changes at any time but must provide
notice of same to Virgin as is reasonable under the circumstances. With respect to any changes in the Rates and Fees, Bank will, prior to making any such changes, notify Virgin of such changes. Notwithstanding the foregoing, Bank may not increase
annual fees set forth on Schedule 3.2 (b) without the prior consent of Virgin. 
 3.3 Bank Mailings; Insertion of Virgin’s
Promotional Materials. Envelope space (including bangtail) for billing statements and Credit Card mailers shall be allocated as follows: 

(a) “Priority Materials”, defined as: legally required material, privacy notices, disclosures, Cardholder notices, billing
statements, new Credit Card mailers, PIN mailers, Credit Card Agreement, and notices sent by Bank; 
 (b) Bank’s other inserts
(including bangtail). 
 (c) Virgin’s promotional materials, subject to the following terms: 

Subject to the foregoing allocation, at Virgin’s request, Bank will include with the billing statements and new Credit Card mailers
Virgin promotional materials provided by Virgin, so long as the materials: (i) are provided to Bank at least ***** prior to the scheduled mailing date of such statements or notices and pursuant to an insert schedule that Virgin provided to Bank
at least ***** in advance; (ii) have been approved as to content by Bank (in its reasonable discretion) with respect to any manner of reference to Bank or the Program; (iii) meet all size, weight, or other specifications for such inserts
as shall be reasonably set by Bank from time to time; (iv) would not require the removal (in Bank’s standard envelope) of Priority Materials and/or Bank’s other inserts; and (v) are paid for by Virgin, along with all additional
postage costs caused by Bank’s insertion of such materials. Bank shall not include any Virgin insert materials (that will result in additional postage expense to Virgin) without Virgin’s prior written consent to pay the additional postage
costs. 
 Bank reserves the right to disallow any inserts which are in violation of Applicable Law, conflict with any other provision of
this Agreement, or whose subject matter is reasonably deemed by Bank to be inappropriate in nature. 
 3.4 Payments. All payments to
be made by Cardholders with respect to any amounts outstanding on the Accounts shall be made in accordance with the instructions of Bank and at the location or address specified by Bank. Virgin hereby authorizes Bank, or any of its employees or
agents, to endorse “Comenity Capital Bank” upon all or any checks, drafts, money orders or other evidence of payment, made payable to Virgin and intended as payment on an Account, that may come into Bank’s possession from Cardholders
and to credit said payment against the appropriate Cardholder’s Account. As to any Cardholder who inquires of Virgin as to where payments on Accounts shall be made, Virgin shall inform them that payments should be made to Bank. 

3.5 ***** 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 3.6 Reports. Bank will deliver to Virgin the reports set forth in Schedule 3.6, as
specified therein and to the extent information is available and applicable. Bank may provide any additional reports requested by Virgin upon such terms and conditions (including reasonable costs) as are mutually agreed to by the parties. 

3.7 ***** 
 3.8 Purchase,
Reporting and Posting of Elevate Points. 
  

	 	(a)	Point Reporting. Once *****, per Cardholder *****, Bank will send to Virgin or its designee, in an agreed upon electronic format and by an agreed upon process, the earned Elevate Points for each Elevate Rewards
Program Cardholder for that month. 

  

	 	(b)	Point Posting. Virgin shall post Elevate Points earned through the Program to the applicable Cardholder’s Elevate Reward Program account within ***** of the receipt of the report described in
Section 3.8(a). 

 3.9 Program Economics. In connection with the Program, Bank will make the payments to Virgin
described and in accordance with Schedule 3.9. 
 3.10 Implementation. The parties shall cooperate in good faith to develop and
implement an annual marketing plan designed to maximize the profitable growth of the Program with regard to the number of new Accounts, total Accounts, and Purchases. The annual marketing plan shall be mutually agreed upon, such agreement not to be
unreasonably withheld. The parties understand and acknowledge that the ability to develop and implement new consumer offers and promotions is integral to the success of the Program. Accordingly, Bank agrees that upon agreement by the parties on new
offers or promotions, Bank shall take no more than ***** to implement, or enable Virgin to implement said offer or promotion. Virgin acknowledges that the foregoing obligation of Bank is limited to elements of the offer or promotion that is solely
within Bank’s control and that Virgin will cooperate with Bank to ensure cooperation by third parties necessary for implementation. 

SECTION 4. REPRESENTATIONS AND WARRANTIES 

Each party makes the following representations and warranties to the other party as of the date of this Agreement: 

4.1 Organization, Power and Qualification. 

Such party is duly organized, validly existing and in good standing under the laws of its jurisdiction or organization and has full power and
authority to enter into this Agreement and to carry out the provisions of this Agreement. Such party is duly qualified and in good standing to do business in all jurisdictions where located and/or conducting business, except where the failure to be
so qualified would not have a material adverse effect on such party’s business or such party’s or the other party’s ability to perform as required under this Agreement or operate the Program. 

4.2 Authorization, Validity and Non-Contravention. 

(a) This Agreement has been duly authorized by all necessary corporate proceedings (or analogous governing proceedings) by such party.
Further, this Agreement has been duly executed and delivered by such party, and is a valid and legally binding agreement of such party and duly enforceable in accordance with its terms (except as such enforcement may be limited by bankruptcy,
insolvency, reorganization, moratorium and other laws relating to or affecting creditors’ rights generally and by general equity principles). 

(b) No consent, approval, authorization, order, registration or qualification of or with any court or regulatory authority or other
governmental body having jurisdiction over such party is required for (nor would the absence of such adversely affect) the legal and valid execution and delivery of this Agreement, and the performance of the transactions contemplated by this
Agreement. 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 (c) The execution and delivery of this Agreement by such party and the compliance by such party
with all provisions of this Agreement: (i) will not conflict with or violate any Applicable Law; and (ii) will not conflict with or result in a breach of or default under any of the terms or provisions of any indenture, loan agreement, or
other contract or agreement to which such party is a party (including but not limited to any under which such party is an obligor or by which its property is bound) where such conflict, breach or default would have a material adverse effect on such
party or the Program, nor will such execution, delivery or compliance violate or result in the violation of the Articles of Incorporation or By-Laws (or analogous rules of governance) of such party. 

4.3 Compliance with Law. 

Any action taken by such party or inaction (where such party has a duty to act) in connection with the Program and/or the other party hereto,
shall be in compliance with all Applicable Law, except where the failure to comply, individually or in the aggregate, does not or will not have a material adverse effect on such party, such other party, or the Program. 

4.4 Intellectual Property Rights. 

(a) In the event Virgin provides any software or hardware to Bank, Virgin has the legal right to such software or hardware and the right to
permit Bank to use such software or hardware, and such use shall not violate any intellectual property rights of any third party. Any software or other technology developed by or for Virgin or its Affiliates, to facilitate the Program, including but
not limited to, software and software modifications developed in response to Bank’s request or to accommodate Bank’s special requirements and all derivative works, regardless of the developer thereof, will remain the exclusive property of
Virgin and/or its Affiliates. Nothing in this Agreement shall be deemed to convey a proprietary interest to Bank or any third party in any of the software, hardware, technology or any of the derivative works thereof which are owned or licensed by
Virgin and/or its Affiliates, and Bank shall return to Virgin all materials containing such intellectual property upon termination of this Agreement. 

(b) In the event Bank provides any software or hardware to Virgin, Bank has the legal right to such software or hardware and the right to
permit Virgin to use such software or hardware, and such use shall not violate any intellectual property rights of any third party. Any software or other technology developed by Bank or its Affiliates or developed for Bank or its Affiliates at
Bank’s expense, to facilitate the Program, including but not limited to, software and software modifications developed in response to Virgin’s request or to accommodate Virgin’s special requirements and all derivative works,
regardless of the developer thereof, will remain the exclusive property of Bank and/or its Affiliates. Nothing in this Agreement shall be deemed to convey a proprietary interest to Virgin or any third party in any of the software, hardware,
technology or any of the derivative works thereof which are owned or licensed by Bank and/or its Affiliates, and Virgin shall return to Bank all materials containing such intellectual property upon termination of this Agreement. 

4.5 Virgin Marks. 
 In
the case of Virgin, Virgin has the legal right to use and to permit Bank to use, to the extent set forth herein, the Virgin Marks. 

SECTION 5. COVENANTS 

Each party hereby covenants and agrees as follows: 

5.1 Notices of Changes. Each party will as soon as reasonably possible notify the other of any: (a) change in the name or form of
its business organization, change in the location of its chief executive office or the location of the office where its records concerning the Program are kept; (b) merger or consolidation of such party, the sale of a significant portion of its
stock (or other form of ownership) or the sale of a substantial amount of its assets not in the ordinary course of business, or any change in the control of such party; (c) material adverse change in its financial condition or operations;
(d) any change in business practices of such party that would have a material adverse effect on this Agreement or the Program; (e) in the case of Virgin, any occurrence that would constitute a Bank Termination Event under Section 7.2;
or (f) in the case of Bank, any occurrence that would constitute a Virgin Termination Event under Section 7.3. Each party will furnish such additional information with respect to any of the foregoing as the other party may request, for the
purpose of evaluating the effect of such change on the financial condition and operations of the affected party and on the Program. 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 5.2 Financial Statements. Each party shall furnish to the other as soon as available the
following information (on a consolidated basis if applicable): (a) a balance sheet as of the close of each fiscal year; (b) a statement of income, retained earnings, and paid-in capital to the close of each fiscal year; (c) a
statement of cash flow to the close of each such period; and (d) a copy of the opinion submitted by such party’s independent certified public accountants in connection with such of the financial statements as have been audited. Provided,
however, that as long as Bank is a subsidiary of Alliance Data Systems Corporation (“ADSC”), and ADSC is publicly traded, Bank may satisfy the foregoing requirements by ADSC’s filing with the SEC copies of its quarterly 10-Q filings,
annual 10-K filing, and a quarterly statement of operating income (based on ADSC’s fiscal quarter). 
 5.3 Access Rights. 

(a) Subject to (b) below, each party will permit, once per Program Year unless the other party has reasonable cause to do so more than
once, authorized representatives designated by the accessing party, at accessing party’s expense, to visit its facilities and inspect, to the extent permitted by Applicable Law, any of its books and records pertaining to Applicants, Accounts
and any category of payments owed by one party to the other, and to make copies and take extracts there from, and to discuss the same with its officers and independent public accountants, all at reasonable times during normal business hours on at
least ***** advance notice to the other party. In addition, Virgin shall permit regulatory bodies having jurisdiction over Bank to visit its facilities related to the Program during normal business hours with advance notice. 

(b) Each party’s obligations under (a) shall not be required to the extent that (i) such access is prohibited by Applicable
Law, (ii) such records are legally privileged, or (iii) such records are planning documents or those of any of its Affiliates, operating budgets, management reviews or employee records. 

5.4 Each Party’s Business. Each party shall do or cause to be done all things necessary to preserve and keep in full force and
effect its corporate existence (or analogous business form) and to comply with all Applicable Laws in connection with its business, including, but not limited to: (i) compliance with all applicable license requirements related to its business,
and (ii) fulfilling its obligations under the Program. 
 5.5 Insurance. Each party shall maintain insurance policies with
insurers, and in such amounts and against such types of loss and damage, as are customarily maintained by other companies engaged in similar businesses within such party’s industry. 

5.6 Compliance with Agreement and Applicable Law. Each party shall comply with all Applicable Laws in performing its obligations under
this Agreement and use commercially reasonable efforts to ensure that its Affiliates, licensees, franchises, officers, directors, associates and agents comply with the terms of this Agreement and Applicable Law, and each party shall be responsible
for their respective actions and omissions as provided elsewhere in this Agreement. 
 SECTION 6 INDEMNIFICATION 

6.1 Indemnification Obligations. (a) Each party shall be liable to and shall indemnify and hold harmless the other and its
Affiliates and their respective officers, directors, employees, subcontractors and their successors and assigns (collectively “Indemnified Parties”) from any and all Losses (as hereinafter defined) incurred by them by reason of:
(i) The indemnifying party’s breach of any representation, warranty or covenant hereunder; (ii) The indemnifying party’s failure to perform its obligations hereunder; (iii) any action or failure to act (where there was a
duty to act) by the indemnifying party related to the Program and/or as otherwise provided for in this Agreement; (iv) The indemnifying party having caused Losses to third parties, where such third parties have sought recovery from Indemnified
Parties; and (v) The indemnified party’s defending against claims described in (iv). In any case, the indemnifying party’s liability does not extend to Losses proximately arising from an act or failure to act by Indemnified Parties.
Additionally, Virgin shall indemnify Bank and its Indemnified Parties for any Losses caused by or related to Virgin Goods or Services charged to an Account and Bank shall indemnify Virgin for all Losses caused by or related to Account matters,
including Cardholder credit decisions, billing matters, collections, payment processing, funding receivables, fraud control, and administration of the Accounts. 

(b) For purposes of this Section 6, the term “Losses” shall mean any liability, damage, costs, fees, losses, judgments,
penalties, fines, and expenses, including without limitation, any reasonable attorneys’ fees, 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 
disbursements, settlements (which require the other party’s consent which shall not be unreasonably withheld), and court costs, reasonably incurred by Bank, Virgin, or a third-party, as the
case may be, without regard to whether or not such Losses would be deemed material under this Agreement; provided however, that Losses shall not include any overhead costs that either party would normally incur in conducting its everyday business.

 6.2 LIMITATION ON LIABILITY. (a) IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR ANY INCIDENTAL, INDIRECT,
PUNITIVE, SPECIAL OR CONSEQUENTIAL LOSSES; OR (ii) LOST PROFITS AND/OR LOST BUSINESS RELATIONSHIPS/OPPORTUNITIES WITH THIRD PARTIES, THAT THE OTHER PARTY INCURS OR CLAIMS TO HAVE INCURRED ARISING OUT OF THIS AGREEMENT; PROVIDED, HOWEVER, THAT
THE FOREGOING EXCLUSIONS AND LIMITATIONS OF LIABILITY SHALL NOT APPLY IN THE EVENT OF (I) INDEMNIFICATION CLAIMS (INCLUDING INDEMNIFICATION FROM INFRINGEMENT CLAIMS OF A THIRD PARTY’S INTELLECTUAL PROPERTY RIGHTS), (II) BREACH BY A PARTY
OF ITS CONFIDENTIALITY OBLIGATIONS SET FORTH IN THIS AGREEMENT, OR (III) WITH RESPECT TO A PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. 

*****  
 6.3 NO
WARRANTIES. EXCEPT AS PROVIDED HEREIN, THERE ARE NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, RESPECTING THE SERVICES AND/OR OTHER PRODUCTS SOLD OR PROVIDED BY BANK
PURSUANT TO THIS AGREEMENT. 
 6.4 Notification of Indemnification; Conduct of Defense. (a) In no case shall the indemnifying
party be liable under Section 6.1 of this Agreement with respect to any claim or claims made against the indemnified party or any other person so indemnified unless it shall be notified in writing of the nature of the claim within a reasonable
time after the assertion thereof. However, failure to so notify the indemnifying party shall not relieve it from any liability which it may have under other provisions of this Agreement, except to the extent that the indemnifying party’s right
to defend the matter is materially and irrevocably prejudiced by such failure to give prompt notice. 
 (b) The indemnifying party shall be
entitled to participate, at its own expense, in the defense of any suit brought against the indemnified party which gives rise to a claim against the indemnifying party. Alternatively, the indemnifying party may elect to assume defense of such
claim, but must do so within a reasonable time after receiving notice of the claim. However, if the indemnifying party so elects to assume the defense, such defense shall be conducted by counsel chosen by the indemnifying party and approved by the
indemnified party (or the person or persons so indemnified, who are the defendant or defendants in any suit so brought), which approval shall not be unreasonably withheld. Once the indemnifying party has retained counsel approved by the indemnified
party, the indemnified party (or the person or persons so indemnified who are the defendant or defendants in the suit), shall bear the fees and expenses of any additional counsel it chooses to retain. 

SECTION 7 TERM, EXPIRATION AND TERMINATION 

7.1 Term and Expiration. See Schedule 7.1. 

7.2 Termination with Cause by Bank; Bank Termination Events. Any of the following conditions or events shall constitute a “Bank
Termination Event” hereunder, and Bank may terminate this Agreement immediately without further action if such Bank Termination Event occurs: 

(a) If Virgin shall: (i) generally not pay its debts as they become due; (ii) file, or consent by answer or otherwise to the filing
against it, of a petition for relief, reorganization or arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction; (iii) make an assignment for the benefit of
its creditors; (iv) consent to the appointment of a custodian, receiver, trustee or other officer with similar powers of itself or of any substantial part of its property; (v) be adjudicated insolvent or be liquidated; (vi) take
corporate action for the purpose of any of the foregoing and such event shall materially adversely affect the ability of Virgin to perform under this Agreement or the Program; (vii) have a change in its financial condition that materially
adversely affects the ability of Virgin to perform under this Agreement or the Program; or (viii) receive an adverse opinion by its auditors or accountants and/or a negative opinion by same as to Virgin’s viability as a going concern; or

 (b) If a court or government authority of competent jurisdiction shall enter an order appointing, without consent by Virgin, a custodian,
receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, or if an order for relief shall be entered in any case or proceeding for liquidation or reorganization or otherwise to
take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution, winding up or liquidation of Virgin, or if any petition for any such relief shall be filed against Virgin and such petition shall not be dismissed
within *****; or 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 (c) If Virgin shall default in the performance of or compliance with any term or violates any of
the covenants, representations, warranties or agreements contained in this Agreement and Virgin shall not have remedied such default within ***** after written notice thereof shall have been received by Virgin from Bank; provided that, if such
condition is incapable of being remedied within the ***** remedy period and Virgin is diligently proceeding to remedy such condition, then said ***** may be extended to a maximum of *****, or 

(d) If Bank exercises its rights under Section 8.6 [Force Majeure]; or 

(e) If at any time during the Term, Virgin’s aggregate number of available seat miles in any ***** have been reduced by more than *****,
as compared to Virgin’s aggregate available seat miles in calendar year 2013, then (i) at Bank’s option, the Initial Term shall be extended by one year to permit any unearned portion of the Annual Revenue Guarantees for any prior
Program Year to be earned and (ii) if Virgin shall not have remedied such default within ***** after written notice of such event, Bank may terminate this Agreement. During any additional Program Year provided for in this clause
Section 7.2(e), no Annual Revenue Guarantee will be payable and no additional amounts will be payable by Bank to Virgin hereunder until the earlier of (i) Virgin’s remedy of the default related to the reduction in available seat miles
or (ii) all unearned portions of the Annual Revenue Guarantee paid in any prior Program Year have been fully earned. In the event that Virgin remedies the default and/or Bank elects not to terminate this Agreement, the terms of this
Section 7.2(e) will apply again if the event described above occurs in any subsequent period. 
 (f) If at the end of any calendar
month during the Term, the number of Members in the Elevate Rewards Program has been reduced by more than *****, as compared to the number of Members in the Elevate Rewards Program as of the Program Commencement Date, and such condition continues
unremedied for a period of ***** after the date of occurrence; provided, that if such condition is incapable of being remedied within the ***** remedy period and Virgin is diligently proceeding to remedy such condition, then said ***** shall be
extended to a maximum of ***** (and the Initial Term shall be extended by one year to permit any unearned portion of the Annual Revenue Guarantees for any prior Program Year to be earned); provided further, if Virgin is unable to correct the
deficiency in such period then Bank shall have the right to terminate the agreement. During any additional Program Year provided for in this clause Section 7.2(f), no Annual Revenue Guarantee will be payable and no additional amounts will be
payable by Bank to Virgin hereunder until the earlier of (i) Virgin’s remedy of the default in the reduction in the number of Members in the Elevate Rewards Program or (ii) all unearned portions of the Annual Revenue Guarantee paid in
any prior Program Year have been fully earned. In the event that Virgin remedies the default and/or Bank elects not to terminate this Agreement, the terms of this Section 7.2(f) will apply again if the event described above occurs in any
subsequent period. 
 7.3 Termination with Cause by Virgin; Virgin Termination Events. Any of the following conditions or events
shall constitute a “Virgin Termination Event” hereunder, and Virgin may terminate this Agreement immediately without further action if such Virgin Termination Event occurs: 

(a) If Bank shall: (i) generally not be paying its debts as they become due; (ii) file or consent by answer or otherwise to the
filing against it, of a petition for relief, reorganization or arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction; (iii) make an assignment for the
benefit of its creditors; (iv) consent to the appointment of a custodian, receiver, trustee or other officer with similar powers for itself or of any substantial part of its property; (v) be adjudicated insolvent or be liquidated; or
(vi) take corporate action for the purpose of any of the foregoing and such event shall materially adversely affect the ability of Bank to perform under this Agreement or the operation of the Program and such event shall materially adversely
affect the ability of Bank to perform under this Agreement or the Program; or (vii) have a change in its financial condition, including, but not limited to being downgraded by a rating agency to a rating below an investment grade rating, that
materially adversely affects the ability of Bank to perform under this Agreement or the Program; or (viii) receive an adverse opinion by its auditors or accountants as to its viability as a going concern; or (ix) breach or fail to perform
or observe any covenant or other term contained in any creditor loan agreement, debt instrument or any other material agreement to which it is bound, which breach or failure, if left uncured could result in a default of such agreement; or 

(b) If a court or government authority of competent jurisdiction shall enter an order appointing, without consent by Bank, a custodian,
receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, or if an order for relief shall be entered in any case or proceeding for liquidation or reorganization or otherwise to
take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution, winding up or liquidation of Bank, or if any petition for any such relief shall be filed against Bank and such petition shall not be dismissed
within *****; or 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 (c) Except with respect to the Service Standards, if Bank shall default in the performance of or
compliance with any term or violates any of the covenants, representations, warranties or agreements contained in this Agreement and Bank shall not have remedied such default within ***** after written notice of the default thereof shall have been
received by Bank from Virgin; provided that, if such condition is incapable of being remedied within the ***** remedy period and Bank is diligently proceeding to remedy such condition, then said ***** may be extended to a maximum of *****; or 

(d) With respect to Service Standards, as set forth on Schedule 2.1 (h); or 

(e) If Virgin exercises its rights under Section 8.6 [Force Majeure]; or 

(f) As described in Schedule 2.1 (g). 

7.4 Purchase of Accounts. See Schedule 7.4. 

7.5 Effect of Termination. In the event this Agreement is terminated by either party prior to the end of the Term for any reason, the
following shall apply: 
 (a) Bank’s obligation to pay the Annual Revenue Guarantees shall cease as of the effective date of the
termination; provided, however, that Bank shall continue making the other payments set forth on Schedule 3.9 until the date the Agreement is actually terminated to the extent the Annual Revenue Guarantee for such Program Year already paid by Bank to
Virgin are not sufficient to meet such amounts owing. 
 (b) If the Agreement is terminated by Bank due to any Bank Termination Event
(including as provided in Schedule 3.9), by either party pursuant to Schedule 2.9 (a), by Virgin pursuant to Schedule 7.1, or by Virgin pursuant to Section 7.3(e) or (f), no later than ***** following the termination of the Agreement, Virgin
shall repay to Bank the unearned portion of any Annual Revenue Guarantee for any Program Year previously paid by Bank to Virgin (including any Annual Revenue Guarantee paid by Bank following the date the event giving rise to the applicable
termination right of Bank or Virgin occurred, which shall be repaid to Bank pursuant to clause (a) above). 
 (c) If the Agreement is
terminated by Virgin pursuant to Section 7.3(a), (b), (c) or (d), Virgin will be entitled to retain the unearned portion of any Annual Revenue Guarantee for any Program Year previously paid by Bank to Virgin (other than any Annual Revenue
Guarantee paid by Bank following the date the event giving rise to the applicable termination right of Virgin occurred, which shall be repaid to Bank pursuant to clause (a) above). 

(d) As used in this Agreement, the “unearned” portion of any Annual Revenue Guarantee for any Program Year shall mean any portion of
any Annual Revenue Guarantee paid by Bank to Virgin hereunder that was not applied to an amount otherwise owed by Bank to Virgin pursuant to Schedule 3.9 during such Program Year. 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 SECTION 8 MISCELLANEOUS 

8.1 Entire Agreement; Amendment; No Waiver; Severability; Counterparts; Captions and Cross References; Mutual Drafting. This Agreement
constitutes the entire Agreement and supersedes all prior representations, proposals, offers, agreements and understandings, whether oral or written, among the parties hereto with respect to the subject matter hereof and merges all prior discussions
between them. Except as otherwise provided for in this Agreement, the provisions herein may be modified only upon the mutual agreement of the parties, however, no such modification shall be effective until reduced to writing and executed by both
parties. No waiver of the provisions hereto shall be effective unless in writing and shall not be deemed to be a continuing waiver unless expressly so stated in writing. No failure or delay on the part of either party in exercising any power or
right under this Agreement shall be deemed to be a waiver, nor does any single or partial exercise of any power or right preclude any other or further exercise, or the exercise of any other power or right. If any of the provisions or parts of the
Agreement are determined to be illegal, invalid or unenforceable in any respect, such provisions or parts shall be deemed omitted without affecting any other provisions or parts of the Agreement which shall remain in full force and effect. This
Agreement may be signed in one or more counterparts, all of which shall be taken together as one agreement. The table of contents and various captions in this Agreement are included for convenience only and shall not affect the meaning or
interpretation of any provision of this Agreement. References in this Agreement to any Section are to such Section of this Agreement. This Agreement is the joint product of Virgin and Bank and each provision hereof has been subject to mutual
consultation, negotiation and agreement of Virgin and Bank; therefore to the extent any language in this Agreement is determined to be ambiguous, it shall not be construed for or against any party based on the fact that either party controlled the
drafting of the document. 
 8.2 Coordination of Public Statements. Except as required by Applicable Law, including, without
limitation, any SEC filings reasonably deemed by a party to be required (in which case the party making such filing will provide notice thereof to the other, in advance whenever possible, and shall when possible redact any and all exhibits,
schedules and such other information as the parties may discuss), neither party will make any public announcement of the Program or provide any information concerning the Program to any representative of any news, trade or other media without the
prior approval of the other party, which approval will not be unreasonably withheld. Neither party will respond to any inquiry from any public or governmental authority, except as required by Applicable Law, concerning the Program without prior
consultation and coordination with the other party. 
 8.3 Successors and Assigns. This Agreement and all obligations and rights
arising hereunder shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Neither party may assign its rights and obligations under this Agreement without the prior written consent of the
other, which consent shall not be unreasonably withheld in the case of a proposed assignment to an Affiliate. Subject to Section 3.7(c), in the event that Virgin merges, sells, transfers or otherwise disposes of all or substantially all of the
assets that comprise the line-of-business currently operating under the name “Virgin America” or “Elevate” to a purchaser, and the purchaser in such transaction is a legal successor-in-interest of Virgin (the defined party to
this Agreement),the terms of this Agreement shall be binding upon such successor (regardless of whether or not such entity is a parent, Affiliate, or party with some other relationship of the kind with Virgin, and regardless of under what name the
business is conducted). 
 8.4 Notices. All communications and notices pursuant hereto to either party shall be in writing and
addressed or delivered to it at its address shown below, or at such other address as may be designated by it by notice to the other party, and shall be deemed given when delivered by hand, or two (2) Business Days after being mailed (by
certified mail with postage prepaid and return receipt requested) or when received by receipted courier service: 
  

			
	If to Bank:	  	If to Virgin:
	Comenity Capital Bank	  	Virgin America Inc.
	2795 E. Cottonwood Parkway	  	555 Airport Boulevard, Suite 500
	Suite #100	  	Burlingame, CA 94402
	Salt Lake City, UT 84121	  	Attn.: VP Marketing
	Attn: President	  	

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

			
	With a Copy to:	  	With a Copy to:
	ADS Alliance Data Systems, Inc.	  	General Counsel (at the same address)
	3100 Easton Square Place	  	
	Columbus, OH 43219	  	
	Attn: Law Department	  	

 8.5 GOVERNING LAW/WAIVER OF JURY TRIAL. (a) THIS AGREEMENT SHALL BE A CONTRACT MADE UNDER AND
GOVERNED BY THE INTERNAL, SUBSTANTIVE LAWS OF THE STATE OF NEW YORK, REGARDLESS OF THE DICTATES OF THE CONFLICTS OF LAW PROVISIONS OF NEW YORK OR ANY OTHER JURISDICTION. ANY DISPUTES ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE BREACH HEREOF
OR THREOF, THE RIGHTS GRANTED OR OBLIGATIONS UNDERTAKEN HEREIN OR THEREIN, SHALL PROCEED IN A FEDERAL OR STATE COURT LOCATED IN THE COUNTY AND STATE OF THE PARTY AGAINST WHOM SUCH DISPUTE, CONTROVERSY OR CLAIM IS INITIATED. EACH PARTY HEREBY SUBMITS
TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS. EACH PARTY HEREBY WAIVES ITS RIGHT TO A JURY TRIAL. 
 (b) THE PROVISIONS IN THE PRECEDING
PARAGRAPH DO NOT APPLY TO ALL MATTERS RELATED TO THE ACCOUNTS, THE CREDIT CARD AGREEMENTS, THE CARDHOLDERS AND THE FORMS, TO THE EXTENT RELATED TO THE RELATIONSHIP BETWEEN THE CARDHOLDERS AND BANK, ALL OF WHICH SHALL BE GOVERNED BY UTAH LAW. 

8.6 Force Majeure. Neither party will be responsible for any failure or delay in performance of its obligations under this Agreement
because of circumstances beyond its reasonable control, and not due to the fault or negligence of such party, including, but not limited to, acts of God, flood, criminal acts, fire, riot, computer viruses or hackers where such party has utilized
commercially reasonable means to prevent the same, accident, strikes or work stoppage, embargo, sabotage, terrorism, inability to obtain material, equipment or phone lines, government action (including any laws, ordinances, regulations or the like
which restrict or prohibit the providing of the services contemplated by this Agreement), and other causes whether or not of the same class or kind as specifically named above. In the event a party is unable to perform substantially for any of the
reasons described in this Section, it will notify the other party promptly of its inability so to perform, and if the inability continues for at least *****, the party so notified may then terminate this Agreement forthwith. This provision shall
not, however, release the party unable to perform from using its best efforts to avoid or remove such circumstance and such party unable to perform shall continue performance hereunder with the utmost dispatch whenever such causes are removed. 

8.7 Survival. No termination or expiration of this Agreement shall in any way affect or impair the powers, obligations, duties, rights,
indemnities, liabilities, covenants or warranties and/or representations of the parties with respect to times and/or events occurring prior to such termination or expiration. No powers, obligations, duties, rights, indemnities, liabilities,
covenants or warranties and/or representations of the parties with respect to times and/or events occurring after termination or expiration shall survive termination or expiration except for the following Sections and their corresponding schedules:
Section 2.8, Section 3.2, Section 3.4, Section 6, Section 7.4, Section 7.5, Section 8.4, Section 8.5, Section 8.6, Section 8.9 and Section 8.10. 

8.8 Relationship of Parties; Third Parties; Independent Contractor. This Agreement does not constitute the parties as partners or joint
venturers and neither party will so represent itself. The provisions of this Agreement are for the benefit of the parties hereto and not for any other person or entity. The parties hereby declare and agree that Bank is engaged in an independent
business, and shall perform its obligations under this Agreement as an independent contractor; that any of Bank’s personnel performing the services hereunder are agents, employees, Affiliates, or subcontractors of Bank and are not agents,
employees, Affiliates, or subcontractors of Virgin; that Bank has and hereby retains the right to exercise full control of and supervision over the performance of Bank’s obligations hereunder and full control over the employment, direction,
compensation and discharge of any and all of the Bank’s agents, employees, Affiliates, or subcontractors, including compliance with workers’ compensation, unemployment, disability insurance, social security, withholding and all other
federal, state and local laws, rules and regulations governing such matters; that Bank shall be responsible for Bank’s own acts and those of Bank’s agents, employees, Affiliates, and subcontractors; and that except as expressly set forth
in this Agreement, Bank does not undertake by this Agreement or otherwise to perform any obligation of Virgin, whether regulatory or contractual, or to assume any responsibility for Virgin’s business or operations. 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 8.9 Confidentiality and Security Control. 

(a) Confidential Information and Other Protected Information. Except as specifically provided in this Section 8.9, neither party
shall disclose any Confidential Information (defined below) which it learns as a result of negotiating or implementing this Agreement. Additionally, the use and/or disclosure of any Consumer Personal Information, Virgin Member Information, and/or
Bank Cardholder Information shall be subject to Applicable Law, Section 2.6, and this Section 8.9. “Confidential Information” shall mean all material and information not of a public nature concerning the business or properties of
the other party including, without limitation: the terms and conditions of this Agreement (as well as proposed terms and conditions of any amendments, renewals, or extensions of this Agreement), marketing plans, business plans, financial results,
Virgin member names and other Elevate Rewards Program information, Cardholder names, card usage, sales volumes, test results, and results of marketing programs, Program reports and files generated by Bank (in the case of Bank), trade secrets,
business and financial information, source codes, business methods, procedures, know-how and other information (including but not limited to intellectual property) of every kind that relates to the business of either party. 

However, the definition of “Confidential Information” specifically excludes information which: 

(i) is generally known to the trade or to the public at the time of such disclosure; or 

(ii) becomes generally known to the trade or the public subsequent to the time of such disclosure; provided, however, that such general
knowledge is not the result of a disclosure in violation of this Section 8.9; or 
 (iii) is obtained by a party from a source other
than the other party, without breach of this Agreement or any other obligation of confidentiality or secrecy owed to such other party or any other person or organization; or 

(iv) is independently conceived and developed by the disclosing party and proven by the disclosing party through tangible evidence not to have
been developed as a result of a disclosure of information to the disclosing party, or any other person or organization which has entered into a confidential arrangement with the non-disclosing party; or 

(v) Bank is required to report to a Card Network by such Card Network’s applicable rules and regulations. 

(b) Permitted Uses and Disclosures. Nothing in this Section 8.9 shall be interpreted to mean that a party is restricted with
respect to the use or disclosure of Confidential Information which it owns. The parties may also disclose any Consumer Personal Information or Confidential Information under the following circumstances. First, to the extent disclosure is required by
Applicable Law. Second, to the extent disclosure is both permitted by Applicable Law and either necessary for the performance of the disclosing party’s obligation under this Agreement and/or agreed to in writing by the other party, provided
that: (i) prior to disclosing any such information to any third party, the party making the disclosure (to the third party) shall give notice to the other party of the nature of such disclosure and of the fact that such disclosure will be made;
and (ii) prior to filing a copy of this Agreement (whole or partial) with any governmental authority or agency, the filing party will consult with the other party with respect to such filing and shall redact such portions of this Agreement
which the other party requests be redacted, unless, in the filing party’s reasonable judgment based on the advice of its counsel (which advice shall have been discussed with counsel to the other party), the filing party concludes that such
request is inconsistent with the filing party’s obligations under Applicable Law. Notwithstanding anything to the contrary in this Agreement, Bank may disclose Confidential Information concerning this Agreement in order to facilitate and/or
maintain Bank’s securitization activities. 
 (c) Protecting Disclosed Information. When, pursuant to subsection (b) above,
one party discloses the other party’s Confidential Information or Consumer Personal Information to the disclosing party’s Affiliate or a third-party, the disclosing party shall be responsible for ensuring that such disclosure complies with
Applicable Law. Furthermore, the disclosing party shall ensure that the Affiliate or third-party executes a confidentiality agreement with the disclosing party provided by or approved in writing by the non-disclosing party, or, in the event Bank
Confidential Information is to be disclosed to a Virgin consultant and/or a potential purchaser of the Portfolio as described in Schedule 7.4, such confidentiality agreement shall be executed by both Bank and the recipient of the Bank Confidential
Information, and in either event the confidentiality agreement shall require that the recipient of Confidential Information keeps all such information in confidence. Each party covenants that at all times it shall have in place procedures designed
to assure that each of its employees who is given access to the other party’s Consumer Personal Information or Confidential Information shall protect the privacy of such information. Each party acknowledges that any breach of the
confidentiality provisions of this Agreement by it will result in 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 
irreparable damage to the other party and therefore in addition to any other remedy that may be afforded by law any breach or threatened breach of the confidentiality provisions of this Agreement
may be prohibited by restraining order, injunction or other equitable remedies of any court. 
 (d) Protecting Stored Information.
Each party shall establish commercially reasonable controls to ensure the confidentiality of any Consumer Personal Information and the other’s Confidential Information. Each party shall also ensure that such information is not disclosed
contrary to the provisions of this Agreement, or any applicable privacy, security or other laws, rules and regulations. Without limiting the foregoing, each party shall implement such physical and other security measures as are necessary to
(i) ensure the security and confidentiality of any Consumer Personal Information and the other’s Confidential Information, (ii) protect against any threats or hazards to the security and integrity of such information,
(iii) protect against any unauthorized access to or use of such information, and (iv) properly dispose of any Consumer Personal Information as required under Applicable Law. Each party shall promptly notify the other party in the event it
believes, or has reason to believe, that a confidentiality or security breach, or any other unauthorized intrusion, has occurred with respect to Consumer Personal Information and such notice shall specify the corrective action taken and to be taken
by the party subject to such intrusion. 
 (e) If, upon expiration or termination of this Agreement, Virgin or its designee does not
purchase the Accounts from Bank pursuant to Section and Schedule 7.4, Virgin shall take appropriate measures to destroy or remove from its systems Bank’s Cardholder, Confidential, and Consumer Personal Information. This includes but is not
limited to any and all records regarding Cardholders whether in paper, electronic, or other form, that is maintained or otherwise possessed by or on behalf of Virgin, including a compilation of such records; provided, that Virgin may retain such
data reasonably necessary for Virgin to provide ongoing customer service support to Members or for financial accounting purposes. If Virgin or its designee does purchase the Accounts at such time, Virgin’s obligation to remove or destroy
information shall apply only to any Bank Confidential Information that is not comprised of Bank Cardholder Information or Consumer Personal Information. 

8.10 Taxes. Anything to the contrary notwithstanding, Bank shall be responsible for the payment of all federal excise taxes pursuant to
Section 4261 of the Internal Revenue Code, or any successor federal excise tax related to Bank’s purchase of Elevate Points under this Agreement (“Excise Tax”). If, at any time, any governmental agency or authority determines
that additional Excise Taxes are due because of a determination by such agency or authority that the allocation between transportation and non-transportation costs is properly other than as previously paid, Bank shall indemnify and hold harmless
Virgin from such additional Excise Taxes, including all interest and penalties thereon. As to taxes other than the Excise Tax, each party is responsible for its own tax obligations as assessed by taxing authorities under Applicable Law. The parties
agree to cooperate with each other in connection with any tax matters related to this Agreement. 
 [Signature block on following page.]

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement in manner and form sufficient to bind them as
of the date first above written. 
  

									
	COMENITY CAPITAL BANK	 		  	VIRGIN AMERICA INC.
					
	By:	 	 /s/ Ronald J. Ostler
	 		  	By:	  	 /s/ Peter D. Hunt

	Title:	 	 President
	 		  	Title:	  	 SVP & Chief Financial Officer

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 Schedule 1.2 

Definitions and Other Obligations 

A. DEFINITIONS 
 As used herein
and unless otherwise required by the context, the following terms shall have the following respective meanings. 
 “Account” shall
mean an individual general purpose open-end revolving line of credit which is (i) established by Bank for a Member pursuant to the terms of a Credit Card Agreement and in accordance with the applicable Card Network rules and regulations, and
(ii) marketed with a Virgin Mark and the trade names and/or logos of a Card Network. 
 “Account Center” shall mean an
electronic customer service system Bank makes available on a Bank website. 
 “Affiliate” shall mean with respect to a party any
entity that is owned by, owns, or is under common control with such party. 
 “Applicable Law” shall mean any applicable federal,
state or local law, rule, or regulation including but not limited to formal or informal direction from Bank’s primary banking regulator(s), as well as the Card Network Rules. 

“Applicant” shall mean an individual who applies for an Account under the Program. 

“Application Procedure(s)” shall mean, as applicable, Bank’s proprietary application procedures in which Applicant information
is communicated to Bank in a form and through a process determined by Bank. Application Procedures include but are not limited to Bank’s instant credit, quick credit, online prescreen, batch prescreen, automated telephone, take-one, web and
mobile application procedures, each of which is more specifically described in the Operating Procedures. 
 “Bank Mark” shall mean
the trademarks, service marks, or trade names owned by or licensed (and capable of being sublicensed) to Bank and designated by Bank to Virgin for use in connection with the Program as set forth in Schedule 1.2(a). 

“Business Day” shall mean any day, except Saturday, Sunday, federal holidays, or a day on which banks in Utah are required to be
closed. 
 “Cardholder” shall mean any natural person to whom an Account has been issued by Bank and/or any authorized user of the
Account. 
 “Card Network” shall mean a nationwide payment clearing network such as MasterCard International, Inc., Visa U.S.A.
Inc., American Express, or Discover, in which the Accounts participate. 
 “Card Network Rules” shall mean the rules, regulations,
releases, interpretations and other requirements (whether contractual or otherwise) imposed or adopted by the Card Network participating in the Program. 

“Consumer Personal Information” shall mean that non-public personal information regarding Applicants, Members, and Cardholders,
including but not limited to Account information consumer reports, and information derived from consumer reports, that is subject to protection from publication under Applicable Law. 

“Credit Card” shall mean the credit card issued by Bank to Cardholders, which is a general purpose Account credit card bearing the
trademark or logo of the applicable Card Network (designated by Bank), corresponding to a related Account for the purpose of making Virgin Purchases and General Purchases pursuant to this Agreement. 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 “Credit Card Agreement” shall mean the open-end revolving credit agreement between a
Cardholder and Bank governing the Account and Cardholder’s use of the Credit Card, together with any modifications or amendments which may be made to such agreement. 

“Electronic Bill Presentment and Payment (or EBPP)” shall mean a procedure whereby Cardholders can elect to receive their billing
statements electronically and that also allows them an opportunity to remit their Account payments to Bank electronically. 
 “Elevate
Point” means any credit under the Elevate Rewards Program issued in any form by Virgin that entitles the holder to acquire travel on Virgin’s airline or any other benefits offered by the Elevate Rewards Program. 

“Elevate Rewards Program” shall have the meaning set forth in the recitals. 

“Financial Products” shall mean credit card or credit issuance programs similar in purpose to those covered by this Agreement. 

“Forms” shall have the meaning set forth in Section 2.4. 

“General Net Sales” shall mean General Purchases, less credits or refunds for goods and/or services, calculated each Business Day.

 “General Purchase” shall mean a purchase of non-Virgin Goods and/or Services including without limitation all applicable taxes
and shipping costs, with a specific extension of credit by Bank to a Cardholder using an Account as provided for under this Agreement. A General Purchase is not included within the definition of a Virgin Purchase. 

“Initial Term” shall have the meaning set forth in Schedule 7.1. 

“Member” shall mean an individual who has been enrolled as a member in the Elevate Rewards Program with a mailing address in the
United States. 
 “Net Sales” shall mean Virgin Net Sales and General Net Sales, collectively. 

“Operating Procedures” shall mean Bank’s instructions and procedures regarding the Program as written by Bank and provided to
Virgin to be followed by Virgin, such instructions and procedures to be strictly limited to legal and regulatory considerations. For the avoidance of doubt, Virgin’s operations including, but not limited to, airline operations, management of
the Elevate Rewards Program, customer and employee procedures and sales and marketing initiatives are explicitly not Operating Procedures. 

“Premium Card” shall mean the Credit Card described as “Premium Card” on Schedule 2.10. 

“Platinum Card” shall mean the Credit Card described as “Platinum Card” on Schedule 2.10. 

“Program” shall mean the Co-Brand credit card program established and administered by Bank for Members by virtue of this Agreement.

 “Program Commencement Date” shall mean the earlier of the date on which Bank begins to issue new Accounts or the date on which
Bank notifies Virgin in writing that Bank has commenced operation of the Program, such date to be documented as an addendum to this Agreement. 

“Program Year” shall mean each consecutive twelve (12) month period commencing on the Program Commencement Date or the first
day of the first full calendar month following the Program Commencement Date if the Program Commencement Date is not the first day of a calendar month and each anniversary thereof. 

“Purchases” shall mean General Purchases and Virgin Purchases, collectively. 

“Rates and Fees” shall mean those Cardholder terms and conditions regarding rates and fees as are initially set forth in Schedule
3.2 (b), as amended from time to time pursuant to Section 3.2 (b). 
 “Service Standards” shall have the meaning set forth in
Schedule 2.1 (h). 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 “Term” shall mean the Initial Term, as defined in Schedule 7.1, plus any renewal terms
agreed by the parties. 
 “United States” shall mean the contiguous 48 states, plus Alaska, Hawaii, the District of Columbia and
Puerto Rico. 
 “Virgin Goods and/or Services” shall mean those goods and/or services sold at retail by Virgin through Virgin
Sales Channels to the general public for individual, personal, family or household use. 
 “Virgin Mark” shall mean the
trademarks, service marks, or trade names owned by or licensed (and capable of being sublicensed) to Virgin and designated by Virgin to Bank for use in connection with the Program as set forth in Schedule 1.2(b). 

“Virgin Net Sales” shall mean Virgin Purchases, less credits or refunds for Virgin Goods and/or Services, calculated each Business
Day. 
 “Virgin Purchase” shall mean a purchase of Virgin Goods and/or Services, including without limitation all applicable taxes
and shipping costs, with a specific extension of credit by Bank to a Cardholder using an Account as provided for under this Agreement. A General Purchase is not included within this definition. 

“Virgin Sales Channels” shall mean those certain sales channels through which Virgin sells Virgin Goods and/or Services during the
Term, regardless of what name Virgin uses for such sales channels, including (as applicable) but not limited to: (i) locations which are owned and operated by Virgin or Virgin’s Affiliates or Virgin’s licensees or franchisees,
including airplanes, airport lounges, check-in counters and kiosks and gates, and (ii) Virgin’s website. 
 B. Other
Definitions. As used herein, terms defined in the introductory paragraph hereof and in other sections of this Agreement shall have such respective defined meanings. Defined terms stated in the singular shall include reference to the plural and
vice versa. The terms “shall” and “will” have the identical meaning (i.e., that something is compulsory and certain), and the use of one versus the other is not to be interpreted as implying less certainty or a sense of
possibility or choice. 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 Schedule 1.2 (a) 

Bank Marks 
 COMENITY CAPITAL BANK

  
 

 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 Schedule 1.2 (b) 

Virgin Marks 
  

			
	Virgin America® word mark and trade name	  	U.S. Reg. No. 3541731
	Elevate® word mark	  	U.S. Reg. No. 3998413

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 Schedule 2.1 (f) 

EV Process & File Transfer Process 

Bank and Virgin to cooperate to develop mutually acceptable EV Process. 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 Schedule 2.1 (g) 

Approval Rates 
 Bank shall meet the
Target Approval Rate for the Program in accordance with this Schedule 2.1 (g). 
 Bank shall calculate the Quarterly Approval Rate at the end of each
Program quarter, beginning after Program month six (which shall measure the Quarterly Approval Rates for Program months seven through nine). The parties intend that each Program quarter Bank shall achieve the Target Approval Rate. In the event that
Bank has a Below Benchmark Quarter, Bank shall have the right to cure in the immediately following Program quarter (meaning that such Program quarter is a Benchmark Quarter). If Bank has ***** consecutive Below Benchmark quarters, Bank shall pay to
virgin ***** for each full percentage point the Quarterly Approval Rate falls below the Target Approval Rate for the applicable Program quarter. *****  

Notwithstanding the foregoing, Virgin shall not have any remedies pursuant to this Schedule 2.1 (g) to the extent Bank’s failure to meet its
obligations under this Schedule 2.1 (g) is caused by either or both of the following: (i) the negligent or willful actions of Virgin; and/or (ii) any changes implemented by Bank to comply with Applicable Law (including regulations and
expectations of regulators). 
 Definitions applicable to this Schedule 2.1 (g): 

“Below Benchmark Quarter” shall mean any Program quarter in which the Quarterly Approval Rate is less than the Target Approval Rate. 

“Benchmark Quarter” shall mean a Program quarter in which the Quarterly Approval Rate is greater than or equal to the Target Approval Rate. 

“Benchmark Applicant Rating” shall equal a FICO-equivalent* bureau score of ***** or higher. 

* Bank currently uses a FICO-equivalent scoring model. If Bank changes to a different scoring model other than FICO-equivalent, Bank shall convert the
non-FICO-equivalent score to a FICO-equivalent score, for all purposes where a FICO-equivalent score is referenced in this Schedule 2.1 (g). 

“Quarterly Approval Rate” shall mean the amount, expressed as a percentage, which equals ***** 

“Target Approval Rate” shall mean ***** of Valid Applications approved: 

“Valid Application” shall mean, for the purposes of this Schedule 2.1 (g), an application that is fully completed, submitted, and delivered to Bank,
excluding: (i) Applications from Customers that do not achieve the Benchmark Applicant Rating; (ii) any application categorized as pending, as a duplicate, as being fraudulent, or as being incomplete; and / or (iii) any declined
application due to compliance with Applicable Law. Additionally, the following prescreen applications will be excluded from the definition of Valid Application: (y) those prescreen applications for which Bank declines to make an offer of
credit; and (z) those prescreen applications for which the Customer does not accept Bank’s offer of credit. 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 Schedule 2.1 (h) 

Service Standards 
  

			
	Service Factor Category	  	Service Standards
		
	 Critical Service Factors
	  	
		
	 Telephone Service Factors:
	  	
		
	 1.      Telephone answering response time for new Accounts, authorizations, and customer service
	  	 1.      At least ***** of calls answered within *****

		
	 2.      Abandon rate for new Accounts, authorizations, and customer service
	  	 2.      ***** or less. *****

		
	 3.      First call resolution
	  	 3.      ***** of all calls result in no follow up contact by Cardholder regarding the same issue. Only
applies to issues fully in control of Bank. ***** For purposes of measurement, no response to the survey shall be deemed a positive resolution.

	New Account Service Factors:	  	
		
	 4.      Application response time (exclusive of mail-in applications and those requiring a supplemental
telephone call or additional credit agency investigation)
	  	 4.      *****

		
	 Member Service Factors:
	  	
		
	 5.      Response to written Applicant or Cardholder inquiries (paper/email)
	  	 5.      *****

		
	 Systems Availability Service Factor:
	  	
		
	 6.      Availability of Bank’s authorization systems
	  	 6.      *****

		
	 7.      Availability of Bank’s website
	  	 7.      *****

		
	 Other Service Factors
	  	
		
	 8.      Initial Credit Card production
	  	 8.      *****

		
	 9.      Replacement Credit Card production
	  	 9.      *****

 Assumptions: 
  

	 	•	 	Response time for application related inquiries relates to those Applicants which Bank has approved or declined. Applications which Bank is reviewing under special circumstances, such as a suspected fraudulent
application, shall not be included in the measurement of the Standard. 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

	 	•	 	Response times for authorization requests relates to those requests processed solely by Bank’s host. Authorization requests requiring external support such as additional credit bureau pulls are excluded.

 Termination Right by Virgin: 
 Virgin may
terminate the Agreement in accordance with Section 7.3(d) if Bank fails to perform any one of the same Service Standards in this Schedule 2.1 (h) for any *****, and such failure is not the result of an act of Virgin, or a result of a force
majeure event specified in Section 8.6, provided that, after receipt of written notice from Virgin, Bank fails to perform such Service Standard again for *****. Notwithstanding the foregoing, Virgin may terminate the Agreement in accordance
with Section 7.3(d) if Bank fails to perform any one of the same Service Standards in this Schedule 2.1 (h) for any *****, and such failure is not the result of an act of Virgin, or a result of a force majeure event specified in
Section 8.6. 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 Schedule 2.1 (i) 

Operating Committee 

(a) Establishment of the Operating Committee. The parties hereby establish an operating committee (the “Operating Committee”)
to perform the functions with respect to the Program as set forth herein and any other actions that, pursuant to any express provision of this Agreement, requires the Operating Committee’s action or as may be mutually agreed to by members of
the Operating Committee. 
 (b) Composition. The Operating Committee shall consist of ***** members of whom half of which shall be
designated by Virgin (the “Virgin Designees”) and the remaining half of which shall be designated by Bank (the “Bank Designees”). Each party’s designees shall include at all times at least one member of management. Each
party may substitute its members from time to time, provided that each party shall provide the other party with as much prior notice of any such (temporary or permanent) substitution as is reasonably practicable under the circumstances. During the
Term each party shall ensure the availability and participation of high-level representatives as necessary to fulfill its obligations in this Agreement. 

(c) Functions. The functions of the Operating Committee shall include discussion and review of the following: 

(i) marketing efforts and Marketing Fund usage (“Marketing Plan”); 

(ii) the general performance of the Program, including issues such as system integration and the Elevate Rewards Program, and anticipated or
actual change in applicable law; 
 (iii) Bank’s compliance with the Service Standards; 

(iv) changes to the Rates and Fees (for discussion purposes only); 

(v) disputes; 
 (vi) changes to
Operating Procedures; and 
 (vii) any matters which either party believes to be material with respect to the ongoing administration and
operation of the Program. 
 (d) Proceedings. Unless all Operating Committee members agree otherwise, the Operating Committee shall
meet (telephonically or in person as agreed) not less frequently than ***** and not less than ***** shall be in person. The Operating Committee (and any subcommittee formed by it) shall determine the frequency, place (in the case of meetings in
person) and agenda for its meetings, the manner in which meetings shall be called and all procedural matters relating to the conduct of meetings and the approval of matters thereafter not already specifically provided for herein. Either party may
call a special meeting of the Operating Committee at any time or on reasonable prior notice in the event of a default by the other party under this Agreement. Any such special meeting shall be held at the location of the party that did not call the
special meeting to order. A valid meeting shall consist of (i) no less than ***** designees, and (ii) at least ***** of each party. A valid vote (and any course of action based thereon) shall consist of votes cast by (i) no less than
***** designees, and (ii) an equal number of Virgin Designees and Bank Designees, respectively. A majority vote of all designees participating in a valid vote shall suffice for a matter to be considered approved or otherwise decided. 

(e) Dispute Resolution. If the parties reach impasse on a matter that requires agreement, the matter shall be resolved as described in
this subsection (e). Upon the written request of either party, such a matter shall be submitted to the Operating Committee for resolution. The Operating Committee 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 
shall discuss the problem and negotiate in good faith in an effort to resolve the dispute without the necessity of any formal proceeding relating thereto. If the Operating Committee does not
resolve the subject matter within ***** after the date of receipt by the other party of a request to submit the matter to the Operating Committee, then the matter shall be escalated to a senior executive officer of Virgin and a senior executive
officer of Bank, for their review and resolution within ***** of receipt of the notice of escalation. 
 (f) Relationship Management.
The parties agree that they will respectively provide the resources necessary to the effective execution of this Agreement and that, regardless of other commitments or obligations hereunder, Virgin and Bank each shall provide, at their own expense,
a dedicated relationship manager whose primary job function is the support of the Program. The relationship managers shall have the requisite skills and empowerment to effectively manage the day to day operations of the Program. 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 Schedule 2.4 (a) 

Virgin Marks on Cardholder Materials 

Virgin Marks will appear on the following Cardholder materials: 
  

	-	Advertising materials 

  

	-	Acquisition materials (e.g., direct mail, brochures, etc.) 

  

	-	Card package (envelope, benefits brochure, etc.) 

  

	-	Monthly and Year End Card statements 

  

	-	Fulfillment materials 

  

	-	Renewal mailings 

  

	-	Offerings/communications developed exclusively for Virgin Cardholders 

 Virgin Marks will not appear on the
following Cardholder materials: 
  

	-	Cash advance/balance transfer checks 

  

	-	Customer service or legal communications (e.g., customer-merchant disputes, credit issues, overdue payments, etc.) 

  

	-	Legal notifications (e.g., privacy policy notices) 

  

	-	Card update information not unique to the Virgin Card (e.g., purchased goods insurance program) 

  

	-	Offerings/communications not targeted solely to Virgin Cardholders 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 Schedule 2.4(d)(ii) 

Bank Standard Specifications for Forms 

Bank shall provide to Virgin promptly following the execution of this Agreement 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 Schedule 2.5 (a) 

Marketing Promotions 
 Virgin and/or
Bank (as applicable) will implement the following marketing promotions (which, in the case of the marketing promotions for which Virgin is responsible, shall be implemented by the Program Commencement Date unless otherwise specified below): 

Online: 
  

	 	•	 	Subject to the provisions of Section 2.1 (e), *****, Virgin will include the capabilities of real time prescreen on Virgin’s website, call center and at time of enrollment in the Elevate Rewards Program.

  

	 	•	 	Virgin will offer “warm transfer” capability from the Elevate service center(s) as mutually agreed upon by the parties, which may include appropriate incentives for Virgin call center employees, in
Virgin’s sole discretion. 

  

	 	•	 	Virgin will conduct email marketing campaigns for the Program at least ***** per marketable Member per Program Year. 

  

	 	•	 	Virgin shall ensure that, at all times during the Term, the Program is prominently placed, in each case consistent with then-current industry best practices for such channels: 

 

	 	•	 	On Virgin’s website, above the fold on the home page and payment page for on-line booking, with a link to a dedicated Program page describing Program benefits; 

 

	 	•	 	On the mobile optimized view of Virgin website, with a link to apply for an Account within the pages; 

  

	 	•	 	On Virgin’s social media platforms, with Program promotions and a link to apply for an Account will be included periodically. 

Airport/In Air: 
 Virgin will, in each case
consistent with then-current industry best practices for such channels: 
  

	 	•	 	Promote the Program in flight by making at least one in flight announcement promoting the Program during each flight, which may be by flight attendants or via the onboard video system beginning no later than ***** after
Program Commencement Date. 

  

	 	•	 	Equip flight attendants with applications to provide to customers that request them. 

  

	 	•	 	Include Program placement within the Red in-flight entertainment system ***** 

  

	 	•	 	Ensure that In-flight crews are offered training. 

  

	 	•	 	Provide airport gate, ticketing and/or check in area signage promoting the Program, with applications available in lounges, subject to the approval of airport authorities. 

Bank Originated: 
  

	 	•	 	Virgin shall provide to Bank, access to full database of Elevate Rewards Program Members as provided in Section 2.6(b) for direct mail prescreening, on ***** basis, to be conducted as determined by the Operating
Committee such direct mail to be limited to ***** per Member per Program Year. 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

	 	•	 	Bank will fund, through the Marketing Fund, email, including prescreen emails, and on-line targeting and retargeting subject to the Operating Committee’s prior approval of such marketing initiatives.

  

	 	•	 	Other marketing initiatives to be funded by Bank through the Marketing Fund subject to the Operating Committee’s prior approval 

 

	 	•	 	Bank will fund the cost of acquiring prospect information for up to ***** new-customer prospects 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 Schedule 2.5(b) 

Marketing Funds 
 Subject to the
provisions of Section 2.5, Bank shall contribute Marketing Funds as follows: 
 First Program Year: *****, no less than ***** of which shall be
used to support a strategy to “win-back” Members who were cardholders under Virgin’s former credit card programs as follows: 
  

	 	•	 	***** in direct mail and email campaigns funding 

  

	 	•	 	***** funding of digital display ad retargeting (including email retargeting) 

 Each Program Year
thereafter: ***** on prior Program Year’s Net Sales, ***** of which shall be reserved for General Purchase marketing. 
 Launch Fund: Bank
shall pay to Virgin ***** no later than ***** following the Effective Date, to be used by Virgin for launch expenses mutually agreed by Bank and Virgin, but with no less than ***** being dedicated to developing and implementing Virgin Sales
Channels. The parties will endeavor in good faith to ensure that the launch fund is spent within ***** of the Program Commencement Date, but in the event it is not, the remaining funding shall remain available and be used consistently with the other
Marketing Funds outlined in this schedule. 
 The parties agree and acknowledge that Marketing Funds shall not be used to offset either party’s
expenses related to either party’s staff, including but not limited to salaries and travel expenses for either party’s staff. 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 Schedule 2.6 

*****Master File Information 
  

	
	 *****

	 *****

	 *****

	 *****

	 *****

	 *****

	 *****

	 *****

	 *****

	 *****

	 *****

	 *****

	 *****

	 *****

	 *****

	 *****

	 *****

	 *****

	 *****

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 Schedule 2.6(c)(i) 

Securitization of Accounts 
  

	1.	Bank shall have the right to “securitize” receivables generated by Accounts (which shall not include the underlying Accounts associated with such receivables) provided that the structure of such securitization
does not adversely impact the purchase of the Accounts in accordance with Schedule 7.4. 

  

	2.	Bank hereby agrees to indemnify and hold harmless Virgin and its respective officers, directors, employees and agents (each, an “indemnified party”), against any and all losses, claims, expenses, damages or
liabilities, joint or several, to which such indemnified party may become subject to the Securities Act of 1933 or otherwise, as and when such losses, claims expenses, damages or liabilities are incurred insofar as such loss, claims, damages or
liabilities (or actions in respect thereof) are based upon any untrue statement or alleged untrue statement of any material fact contained in any prospectus or registration statement relating to such securitization of receivables pursuant to this
Agreement, or arise out of, or are based upon, the omission or alleged omission to state therein a material fact required by Applicable Law to be stated therein or necessary to make the statements therein not misleading. Bank will not be liable in
any such case to the extent that any such actual loss, damage or liability arises out of or is based upon an untrue statement or a material fact made in any such prospectus or registration statement in reliance upon and in conformity with written
information furnished to Bank by Virgin for inclusion therein. 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 Schedule 2.9(a) 

Elevate Rewards Program 
 Virgin
shall, at its sole expense, maintain and fund the Elevate Rewards Program. In addition, the parties agree as follows: 
  

	 	1.	Unless otherwise agreed to by Bank, at no time during the Term will the Value Proposition of the Elevate Rewards Program for Cardholders be less than the value of the Elevate Rewards Program for non-Cardholders.
Consequently, Virgin will offer the same or better Elevate Rewards Program tiers to Cardholders that it does for non-Cardholders. 

  

	 	2.	At no time during the Term will Virgin permit Elevate Points or equivalent Virgin travel rewards earned based on customer spending to be equal or better than the Elevate Points or equivalent Virgin travel awards earned
by Cardholders as part of the Value Proposition. 

  

	 	3.	Virgin and Bank agree and acknowledge that Virgin may make changes to the Elevate Rewards Program and/or Value Proposition in the ordinary course of business so long as such changes preserve the perceived value of the
Elevate Rewards Program and the Value Proposition to Cardholders and in any event such that the perceived value of the Elevate Rewards Program and the Value Proposition to Cardholders is equal to or greater than the MasterCard World and Visa
Signature requirements regarding value from time to time. If after the first Program Year, and annually thereafter, Virgin elects to make changes to the Elevate Rewards Program and/or Value Proposition and the perceived current rewards value
decreases below the MasterCard World and Visa Signature requirements, the Bank and Virgin shall discuss possible changes to the Elevate Rewards Program and/or Value Proposition that would offset such impact. If Bank and Virgin do not mutually agree
upon a way to mitigate any such negative impact within *****, either Bank or Virgin may, in its sole and commercially reasonable discretion, terminate the Agreement upon ***** prior written notice. After such notice, and until such time as the
Program is terminated, the Parties may make changes only to the elements in accordance with this Schedule 2.9 (a). 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 Schedule 2.10 

Program Value Proposition 

Premium Card 
 The parties agree to work together, in good
faith, to develop and launch a premium card product with a customer value proposition that supports an annual fee of *****. Said product will have premium card benefits as provided by the Card Network, accelerated point earning for certain category
purchases, an acquisition sign-up bonus greater than that of the Base Card as well as other Virgin and Bank benefits as mutually agreed. The parties will conduct customer research and review competing offerings by other airline cobranded cards to
develop the terms of a competitive premium card offering no later than the Program Commencement Date. 
 The parties will review options for implementing
both a consumer and small business version of the premium card. 
 Platinum Card 

 

	 	•	 	Annual Fee: ***** (paid by Cardholder) 

  

	 	•	 	Visa Signature / MasterCard World benefits, if applicable (to be provided by Card Network) 

  

	 	•	 	Elevate Points Earned for Purchases (to be provided by Virgin): 

  

	 	•	 	*****Sign-Up Bonus of no less than ***** awarded if Cardholder makes ***** or more of General Purchases in the first ***** after Account opening [(to be used for miles/Elevate points or mutually agreed-upon bonus for
activation)] (to be provided by Bank). 

  

	 	•	 	***** off a companion ticket every year (to be provided by Virgin) 

  

	 	•	 	***** every calendar year in which the Cardholder spends ***** (to be provided by Virgin) 

  

	 	•	 	The parties will review options for implementing both a consumer and small business version of the platinum card 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 Schedule 3.2 (b) 

Summary of Rates and Fees 
  

			
	 CONDITIONS
	  	 CURRENT TERMS

	Annual Percentage Rate (APR)	  	*****
	Annual Fee	  	 Platinum Card: *****
 Premium Card:
*****

	Penalty Rate	  	*****
	Minimum Late Fee	  	*****
	Minimum NSF Fee	  	*****
	Cash Advance Rate	  	*****
	Balance Transfer Fee	  	*****
	Minimum Finance Charge	  	*****

 ***** 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 Schedule 3.6 

Bank Reports 
  

					
	 Frequency
	  	 Name
	 	 Description

			
	*****	  	CORE PERFORMANCE METRICS	 	New Account processing: number submitted, duped, pending, activated and percentages.
			
	*****	  	 ACQUISITION PERFORMANCE
  

(all by channel and by source code)
	 	 •    # of submitted applications

 
 •    # of approved
accounts
  

•    Approval rates

			
	*****	  	 ACQUISITION PERFORMANCE
  

(all by channel and by source code)
	 	 •    Approval rates by Bureau Risk Scores

 
 •    Responder volumes
by Bureau Risk Scores
  

•    Initial line assignments by quintile

 
 •    Number of new
accounts by card product and pricing tier

			
	*****	  	CORE PERFORMANCE METRICS	 	 •    # debit active accounts

 
 •    # statement active
accounts
  
 •    #
accounts ever actives
  

•    Sales per debit active account

 
 •    Sales per open
account
  
 •    #
transactions/debit active (on and off Virgin)
  

•    Average ticket size (on and off Virgin)

 
 •    Spending by MID and
MCC
  
 •    Attrition
rates ($ and # accounts) cumulative, voluntary, and involuntary

			
	*****	  	DISBURSEMENT	 	 •    Total portfolio sales

 
 •    Total portfolio
sales returns
  

•    New accounts qualifying for bounty

 
 •    Total new
accounts
  
 •    #
accounts earning new account bounty
  

•    new account bounty points awarded

 
 •    Other
“bonus” point awarded
  

•    Total points awarded

 
 •    # cardholders
transacting at Virgin in month
  

•    Payments to Virgin attributed to cardholder spending

 
 •    Payments to Virgin
for new accounts
  

•    Payments to Virgin for acquisition bounty points

 
 •    Payments to Virgin
for other “bonus” points awarded

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

					
	*****	  	SERVICE STANDARDS	  	Actual performance by standard outlined in Schedule 2.1 in absolute levels and relative to required levels
	*****	  	MARKETING	  	Marketing spend relative to budget by month and YTD with remaining annual forecast
			
	*****	  	Marketing	  	Account number, number of Elevate points and YTD by type

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 Schedule 3.9 

Payment Obligations 

Bank shall make the following payments to Virgin in connection with the Program: 

 

	 	A.	ROYALTY ON NET SALES 

 On Net Sales, Bank shall pay to Company an amount (“Royalty”)
equal to *****  
  

	 	B.	BONUS POINTS 

 Unless otherwise mutually agreed, Bank shall pay Virgin ***** provided to
Cardholders for new account acquisition premiums. Virgin covenants that it will not sell bonus miles, directly or indirectly, to any of its partners (other than Bank) for an equal or lower rate than ***** during the Term. 

 

	 	C.	NEW ACCOUNT BOUNTIES 

 Premium Card: 

 

	 	•	 	***** per each new Account with respect to a Premium Card sourced through a Virgin Sales Channel, subject to the applicable Cardholder making at least ***** in General Purchases within the first ***** of Account
opening. 

  

	 	•	 	***** per each new Account with respect to a Premium Card not sourced through a Virgin Sales Channel (i.e. a Bank-sourced Account), subject to the applicable Cardholder making a General Purchase ***** within the first
***** of Account opening. 

 Platinum Card: 
  

	 	•	 	***** per each new Account with respect to a Platinum Card sourced through a Virgin Sales Channel, subject to the applicable Cardholder making at least ***** in General Purchases within the first ***** of Account
opening. 

  

	 	•	 	***** per each new Account with respect to a Platinum Card not sourced through a Virgin Sales Channel (i.e. a Bank-sourced Account), subject to the applicable Cardholder making a General Purchase in ***** within the
first ***** of Account opening. 

  

	 	D.	ANNUAL FEE SHARING 

  

	 	•	 	No later than ***** after the end of each Program Year, Bank shall pay to Virgin ***** for each Premium Card Account on which the applicable Cardholder paid the full annual fee to Bank. 

 

	 	•	 	No later than ***** after the end of each Program Year, Bank shall pay to Virgin ***** for each Platinum Card Account on which the applicable Cardholder paid the full annual fee to Bank. 

 

	 	E.	PROFIT SHARE 

 Within ***** after the end of each Program Year, Bank shall pay to Virgin an
amount equal to ***** of the Annual Cumulative Net Portfolio Yield for the just concluded Program Year that will be equal to *****  

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

	 	F.	ANNUAL REVENUE GUARANTEE 

 Subject to Virgin’s fulfillment of its obligations pursuant to
Section 2.6 (b) and Schedule 2.5 (a), then each Program Year during the Term, Bank shall ensure that, in the aggregate, the total payments made by Bank to Virgin pursuant to this Agreement during such Program Year, including all of the
following: (i) Elevate Points and bonus miles purchased by Bank, including pursuant to Section A and B of this Schedule 3.9, (ii) new Account bounties pursuant to Section C of this Schedule 3.9, (iii) payments with respect to annual
fees pursuant to Section D of this Schedule 3.9, and (iv) any Profit Share pursuant to Section E of this Schedule 3.9, shall equal no less than the amount for the applicable Program Year set forth in the table below (the “Annual Revenue
Guarantee”): 
 Program Year One: ***** 

Program Year Two: ***** 

Program Year Three: ***** 

Program Year Four: ***** 

Program Year Five: ***** 

Program Year Six: ***** 

Program Year Seven: ***** 
 Within ***** after
the Effective Date, Bank shall pay to Virgin ***** as a partial prepayment of the Program Year One Annual Revenue Guarantee, provided however, that if Virgin does not meet all obligations required to be completed on or before the Program
Commencement Date set forth in Section 2.6 (b) and Schedule 2.5 (a), Virgin shall repay to Bank the full ***** prepayment until such obligations have been met (at which time the Bank shall repay such amount to Virgin). The remaining *****
of the Program Year One Annual Revenue Guarantee shall be paid upon the Program Commencement Date, provided that Virgin has fulfilled its obligations pursuant to Section 2.6 (b) and Schedule 2.5 (a) at such time. So long as Virgin
continues to meet its obligations under Section 2.6 (b) and Schedule 2.5 (a), at the beginning of each Program Year thereafter Bank shall pay the above amounts to Virgin as a prepayment of the revenues expected to be contributed by Bank to
Virgin in such Program Year. Notwithstanding anything herein to the contrary, Bank shall not be obligated to make any payments in connection with the (i) New Account Awards; (ii) Royalty; (iii) bonus miles, (iv) Profit Share; or
(v) Annual Fee Rebates until the Annual Revenue Guarantee amount has been satisfied in such Program Year. For the avoidance of doubt, the Annual Revenue Guarantees shall apply to the specific Program Years listed and the Annual Revenue
Guarantees are not to be construed as additive or cumulative in nature; provided that any “unearned” amount of any Annual Revenue Guarantee (as defined in Section 7.5(d)) will roll over into subsequent Program Years but shall not have
any effect on Bank’s obligation to pay the full Annual Revenue Guarantee in subsequent Program Year. By way of example, if ***** of the Annual Revenue Guarantee for the first Program Year is “unearned”, Bank will pay the full *****
Annual Revenue Guarantee for the second Program Year but no additional payments will be made during Program Year two until the total of (i) the ***** Annual Revenue Guarantee for Program Year two plus (ii) the ***** unearned portion of the
Annual Revenue Guarantee for Program Year one has been earned and applied. Bank’s obligation to make the Annual Revenue Guarantee shall cease if and when either party: (i) terminates this Agreement or (ii) notifies the other party of
an intent to terminate the Agreement or that the notifying party has already terminated this Agreement. 
  

	 	G.	NOTES 

 In the event changes to Applicable Law, or applicable Card Network Rules, including
changes to Interchange Fees, have an actual, material, adverse economic impact on Bank, the parties shall discuss modifying Schedules 2.5(b), 2.10, 3.2(b), and/or 3.9 of the Agreement in consideration of the impact on Bank. However, in the event
that the parties cannot mutually agree upon the type and/or amount of such modification(s) after no fewer than ***** of such good faith discussion, this shall be deemed a Bank Termination Event and Bank shall have the right to terminate this
Agreement with ***** prior notice. 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 Schedule 7.1 

Term and Expiration 
 Upon execution
by authorized representatives of both parties, and unless terminated as provided herein, this Agreement shall become effective as of the Effective Date, remain in effect for seven (7) years from the Program Commencement Date (the “Initial
Term”). Notwithstanding the preceding sentence, in the event that Accounts Receivable equal less than ***** at the end of *****, Virgin shall have the option to allow the Agreement to expire as of ***** upon written notice to Bank, provided
that such written notice must be received by Bank no more than ***** after the end of the ***** 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 Schedule 7.4 

Purchase of Accounts 

(a) Notwithstanding anything to the contrary in this Agreement, upon termination or expiration of this Agreement, Virgin or its designee will
have the option to purchase the Accounts and all Accounts Receivable related thereto (the “Portfolio”), without recourse to Bank. The purchase price shall be fair market value*. 

(b) No Deconversion during Down Period. Notwithstanding anything to the contrary provided elsewhere in this Schedule 9.5, Bank shall
not be required to deconvert the Portfolio during the period ***** (“Down Period”). In the event that a conversion from Bank to Virgin or its designated purchaser cannot be completed on the closing date, Bank and Virgin, or its designated
purchaser, shall negotiate in good faith, a comprehensive interim servicing agreement that allows for uninterrupted maintenance of the portfolio until such time as the conversion can be accomplished. The terms of such interim servicing agreement
shall be standard and customary and include a reasonable and customary fee to Bank. In no event shall the deconversion be later than ***** after the closing date of the portfolio purchase. 

(c) If Virgin (or its designee) exercises such right to purchase the Portfolio, the closing of such purchase shall take place not later than
***** after this Agreement’s termination or expiration, and shall include payment being made by wire transfer of immediately available funds to an account designated by Bank. Upon payment of the purchase price to Bank, Bank shall assign to
Virgin (or its designee), without recourse, all of Bank’s right, title and interest in and to the Portfolio. 
 (d) In the case of a
purchase, Virgin shall (at its and/or its designee’s expense, but not Bank’s) notify all Cardholders that Bank is no longer the owner of their Accounts. Virgin and Bank shall cooperate in facilitating the transition to Virgin or its
designee, and Virgin shall ensure appropriate cooperation on the part of its designee. This subparagraph (d) shall not have the effect of transferring Bank’s legal and/or regulatory notification requirements to Virgin or its designee. 

 

	*	Fair market value (FMV). If the parties are unable to agree on the fair market value of the Portfolio, the parties shall each select and retain, an Independent Appraiser within ***** following receipt of a
written notice from the other party stating that such party does not believe that an agreement can be reached on valuation. The term “Independent Appraiser” shall mean a nationally recognized firm with documented and recognized standing
and experience in valuing credit card portfolios similar to the Portfolio who has not been employed or retained by a party to the Agreement or any of their Affiliates within ***** of the date of selection, The two Independent Appraisers will
issue a written opinion within ***** following their selection as to the fair market valuation (FMV) of the Portfolio. If the two Independent Appraisers’ valuations of the portfolio differ by less than *****, then both valuations
shall be averaged and the result shall be the fair market valuation (FMV) of the Portfolio. If the two Independent Appraisers’ valuations of the portfolio differ by more than *****, then the two Independent Appraisers shall cooperate to
select a third Independent Appraiser within ***** following issuance of their written FMV opinions. The third Independent Appraiser shall be provided the FMV opinions prepared by the two initial Independent Appraisers, and shall determine FMV
by choosing one or the other of the appraisals which the third Independent Appraiser believes is closest to the true FMV within ***** following selection. Each party shall select, retain, and pay the full cost of its own Independent
Appraiser, and the cost of the third Independent Appraiser, if necessary, shall be evenly shared by the parties. Each of Bank and Virgin (and/or its designee) shall provide such information to the two initial Independent Appraisers within
***** following their selection as is necessary to permit the two Independent Appraisers to provide a valuation(and those materials shall be available to the third Independent Appraiser, if necessary). There shall be no discovery permitted
and no hearing or other proceedings in connection with the FMV determination; however, an Independent Appraiser may request of the parties information it believes would be useful in making the valuation determination. 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 FIRST AMENDMENT TO THE CO-BRAND 

CREDIT CARD PROGRAM AGREEMENT 

This First Amendment to the Co-Brand Credit Card Program Agreement (“First Amendment”) is entered into as of this
_31st_ this day of _July_, 2014 (“First Amendment Effective Date”) by and between VIRGIN AMERICA, INC., a Delaware corporation, with its principal office at 555 Airport Boulevard, Burlingame, CA 94402 (hereinafter
being referred to as “Virgin”) and COMENITY CAPITAL BANK, with its principal offices located at 2795 East Cottonwood Parkway, Suite #100, Salt Lake City, UT 84121 (hereinafter referred to as “Bank”). 

R E C I T A L S: 

WHEREAS, Virgin and Bank entered into a Co-Brand Credit Card Program Agreement dated as of May 16, 2013 (the
“Agreement”); and 
 WHEREAS, Virgin and Bank now desire to amend the Agreement to set forth the revised terms and
conditions of the Program Value Proposition, to include, among other things, removal of the Status accelerator benefit from the Base Credit Card, as more particularly set forth herein. 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties hereto agree as follows:

  

	1.	Definitions; References. Each term used herein which is not defined herein shall have the meaning assigned to such term in the Agreement. Each reference to “hereof”, “hereunder”,
“herein” and “hereby” and each other similar reference and each reference to “this Agreement” and each other similar reference contained in the Agreement shall from and after the date hereof refer to the Agreement
amended hereby. 

  

	2.	New Section 3.5(f). The following text is hereby added to the Agreement as a new Section 3.5(f): 

***** 
  

	3.	Schedule 2.10; Program Value Proposition. Schedule 2.10; Program Value Proposition, is hereby deleted in its entirety and replaced with a revised Schedule 2.10 that is attached hereto and incorporated
herein. Bank and Virgin will monitor activity and performance under the Program Value Proposition and may modify the terms and conditions of the Program Value Proposition as both parties mutually agree in writing. 

 

	4.	Schedule 3.9, Section D, Annual Fee Sharing. Schedule 3.9, Section D, is hereby deleted in its entirety and replaced with the following: “D. ANNUAL FEE SHARING 

 

	•	 No later than ***** after the end of each Program Year, Bank and Virgin will meet to review the performance of the Premium Card Accounts to determine
if such Accounts have at least matched, on average, the profit performance of the 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

	 	
aggregate Platinum Card Account portfolio as mutually agreed by the parties in their good faith business judgment. If the parties mutually agree that the average profit performance of such
Premium Card Accounts have at least matched the average profit performance for Platinum Card Accounts for that Program Year, then Bank shall pay to Virgin ***** for each Premium Card Account on which the applicable Cardholder paid the full annual
fee to Bank. If Bank and Virgin mutually agree that the Premium Card Accounts have not at least matched the profit performance of the Platinum Card Accounts for that Program Year, then the annual fee share amount to be paid from Bank to
Virgin for each Premium Card Account on which the applicable Cardholder paid the full annual fee to Bank shall be ***** 

 If
the annual fee share amount paid is *****, then Virgin shall have the right ***** as outlined in Schedule 2.10. In the event that Virgin notifies Bank that it wishes to eliminate *****, in accordance with the terms and conditions set forth herein,
the parties will work together in good faith to develop and implement new and/or additional benefit(s) to apply to the Premium Card Accounts (“New Benefits”), subject to mutually agreed changes, as applicable, to the economics of this
Agreement. The New Benefits shall be researched and agreed upon by Bank and Virgin within ***** following Virgin’s notice to Bank of its intent to eliminate *****. If Virgin elects to cancel *****, Virgin and Bank shall remove ***** from all
marketing materials and from all Premium Card Accounts as soon as practicable after the parties reach agreement on the New Benefits, but in no event ***** after the parties reach agreement on the New Benefits, unless otherwise mutually agreed in
writing by the parties. 
 Notwithstanding the foregoing, should Virgin and Bank be unable to reach agreement on the New Benefits within
***** following Virgin’s notice to Bank of its intent to eliminate *****, then the New Benefits will default to a *****, unless otherwise mutually agreed in writing by the parties. Should this occur, Virgin and Bank shall remove ***** from all
marketing materials and from all Premium Card Accounts within *****, unless otherwise mutually agreed in writing by the parties. 
  

	Ÿ	No later than ***** after the end of each Program Year, Bank shall pay to Virgin ***** for each Platinum Card Account on which the applicable Cardholder paid the full annual fee to Bank. 

The parties may revise the fee sharing amounts and/or the elements of the fee sharing calculation upon mutual written agreement.” 

 

	5.	Governing Law. The governing law provisions of this First Amendment shall be the same as those of the Agreement. 

  

	6.	Counterparts; Effectiveness. This First Amendment may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original, but all of such counterparts shall
together constitute one and the same instrument. The provisions included in this First Amendment shall be effective as of the First Amendment Effective Date set forth above. 

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

	7.	Entire Agreement. As hereby amended and supplemented, the Agreement shall remain in full force and effect. 

IN WITNESS WHEREOF, the parties have caused this First Amendment to be executed by their duly authorized officers. 

 

									
	VIRGIN AMERICA, INC.	  		  	COMENITY CAPITAL BANK
					
	By:	  	 /s/ Peter D. Hunt
	  		  	By:	  	 /s/ Ronald J. Ostler

	Name:	  	 Peter D. Hunt
	  		  	Name:	  	 Ronald J. Ostler

	Title:	  	 SVP & Chief Financial Officer
	  		  	Title:	  	 President

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission. 

 Schedule 2.10 

Program Value Proposition 

PREMIUM CARD 
  

			
	Annual Fee	  	*****
		
	Sign-up Bonus	  	*****, provided Cardholder makes ***** in Purchases during ***** the Account is open
		
	Earn Structure:	  	*****
		
	Status Accelerator	  	***** earned after ***** spent per calendar year ***** will be awarded for every ***** spent, up to ***** per ***** spent). ***** that are earned in excess of published membership
qualification thresholds *****
		
	Companion Ticket	  	***** off one (1) companion ticket each year
		
	Anciliary	  	***** for Cardholder and ***** for Virgin-operated flights
		
	IFE Discount	  	***** for in-flight purchases made on RED (in the form of a statement credit)
		
	Points Expiration Policy	  	*****
	
	PLATINUM CARD
		
	Annual Fee	  	*****
		
	Sign-up Bonus	  	*****, provided Cardholder makes ***** in Purchases during ***** the Account is open
		
	Earn Structure	  	*****
		
	Companion Ticket	  	***** off one (1) companion ticket each year
		
	Ancillary	  	***** for Cardholder and *****
		
	IFE Discount	  	***** for in-flight purchases made on RED (In the form of a statement credit)
		
	Points Expiration Policy	  	*****

  
 ***** Confidential portions of the
material have been omitted and filed separately with the Securities and Exchange Commission.

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