Document:

exv10w28

Exhibit 10.28

WEBBANK

and

BLUESTEM BRANDS, INC.

[dba “GETTINGTON”]

AMENDED AND RESTATED

RECEIVABLES SALE AGREEMENT

Dated as of August 20, 2010

Confidential Treatment Requested

[*] Indicates confidential portions omitted pursuant to a request for confidential treatment filed separately with the Securities and Exchange Commission

 

 

TABLE OF CONTENTS

	 	 	 	 	 

	1. DEFINITIONS
	 	 	2	 
	2. PURCHASE OF RECEIVABLES; PAYMENT TO BANK; REPORTING TO BANK
	 	 	2	 
	3. OWNERSHIP OF RECEIVABLES AND ACCOUNTS; COVENANTS OF THE BANK
	 	 	3	 
	4. GENERAL REPRESENTATIONS AND WARRANTIES OF BANK
	 	 	5	 
	5. ADDITIONAL REPRESENTATIONS AND WARRANTIES OF BANK
	 	 	6	 
	6. REPRESENTATIONS AND WARRANTIES OF COMPANY
	 	 	6	 
	7. CONDITIONS PRECEDENT TO THE OBLIGATIONS OF COMPANY
	 	 	7	 
	8. CONDITIONS PRECEDENT TO THE OBLIGATIONS OF BANK
	 	 	7	 
	9. TERM AND TERMINATION
	 	 	8	 
	10. CONFIDENTIALITY
	 	 	10	 
	11. INDEMNIFICATION
	 	 	11	 
	12. ASSIGNMENT
	 	 	13	 
	13. THIRD PARTY BENEFICIARIES
	 	 	14	 
	14. PROPRIETARY MATERIAL
	 	 	14	 
	15. NOTICES
	 	 	14	 
	16. RELATIONSHIP OF PARTIES
	 	 	15	 
	17. RETENTION OF RECORDS
	 	 	15	 
	18. FORCE MAJEURE
	 	 	15	 
	19. AGREEMENT SUBJECT TO APPLICABLE LAWS
	 	 	16	 
	20. EXPENSES
	 	 	16	 
	21. EXAMINATION
	 	 	175	 
	22. INSPECTION; REPORTS
	 	 	17	 
	23. GOVERNING LAW; WAIVER OF JURY TRIAL
	 	 	17	 
	24. MANNER OF PAYMENTS
	 	 	17	 
	25. BROKERS
	 	 	17	 
	26. ENTIRE AGREEMENT
	 	 	17	 
	27. AMENDMENT AND WAIVER
	 	 	186	 
	28. SEVERABILITY
	 	 	18	 
	29. INTERPRETATION
	 	 	18	 
	30. JURISDICTION; VENUE
	 	 	18	 
	31. HEADINGS
	 	 	18	 
	32. COUNTERPARTS
	 	 	18	 
	33. WAIVER
	 	 	177	 
	34. COLLATERAL ACCOUNT
	 	 	18	 
	35. SURVIVAL
	 	 	20	 
	36. CHARGED-OFF ACCOUNTS
	 	 	20	 

 

 

     THIS AMENDED AND RESTATED RECEIVABLES SALE AGREEMENT (“Agreement”), effectively dated
as of August 20, 2010 (“Effective Date”), amends and restates in its entirety that certain
Receivables Sale Agreement dated as of July 23, 2009 (as amended and modified, the “Original
Receivables Agreement”), made by and between WEBBANK, a Utah-chartered industrial bank having its
principal location in Salt Lake City, Utah (“Bank”), and BLUESTEM BRANDS, INC., (formerly known as
Fingerhut Direct Marketing, Inc.) a Delaware corporation, having its principal location in Eden
Prairie, Minnesota (“Company”).

RECITALS

     WHEREAS, Bank and Company entered into that certain Revolving Loan Product Program Agreement
dated as of July 23, 2009, (as modified and amended, the “Original Program Agreement”) pursuant to
which Bank provides open-end revolving loan accounts to qualifying consumers identified by Company
to enable consumers to purchase Company’s Merchandise; and

     WHEREAS, Bank and Company are also parties to the Original Receivables Agreement whereby Bank
sells to Company, and Company purchases from Bank, the account receivables generated by Bank
pursuant to the Original Program Agreement; and

     WHEREAS, Bank and Company are amending the Original Program Agreement contemporaneously with
this Agreement; and

     WHEREAS, the Parties desire that this Agreement amends and restates in its
entirety the Original Receivables Agreement as of the date first set forth above.

AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing Recitals and the terms, conditions and
mutual covenants and agreements herein contained, and for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Bank and Company agree as follows:

	1.	 	Definitions. The terms used in this Agreement shall be defined as set
forth in Schedule 1.

	2.	 	Purchase of Receivables; Payment to Bank; Reporting to Bank.

	 	(a)	 	During the Term of this Agreement, and subject to the terms and
conditions set forth herein, Bank hereby sells, transfers, assigns, sets-over, and
otherwise conveys to Company, without recourse and with servicing released, on each
Closing Date, one hundred percent (100%) of the Receivables existing and arising under
the Accounts. All of the foregoing shall be in accordance with the procedures set forth
in this Section 2. In consideration for Bank’s agreement to sell, transfer, assign,
set-over and convey to Company all Receivables existing and arising under the Accounts
during the Term of this Agreement, Company hereby purchases one hundred percent (100%)
of such Receivables from Bank by paying Bank the Purchase Price on each Closing Date in
accordance with subsection 2(b) below.

	 	(b)	 	Bank shall prepare and deliver to Company a Daily Settlement Sheet,
in a form to be agreed to by the Parties, by e-mail or as otherwise mutually agreed, no
later than

 

 

	 	 	 	11:00 a.m. Eastern Time on each Business Day, which sheet shall relate to the
Receivables Bank is selling to Company on such Business Day consistent with
subsection 2(a) of this Agreement. No later than 4:00 p.m. Eastern Time on the same
Business Day that Bank provides the related Daily Settlement Sheet to Company,
Company shall effect payment to Bank of the Purchase Price calculated herein and as
described on the applicable Daily Settlement Sheet. The payment of the Purchase
Price shall be made by wire or other transfer in immediately available funds to an
account designated by Bank (the “Purchase Price Account”). Prior to the first
Closing Date, Bank shall provide to Company the designated Purchase Price Account
name and number. Failure to strictly adhere to the times referenced in this
paragraph, provided that payment is made on the same Business Day, shall not
constitute a breach of this Agreement.

	 	(c)	 	In the event Company does not pay Bank the Purchase Price on any
given Closing Date, in addition to any other remedies available to Bank under this
Agreement and by law, Bank shall have the right to withdraw from the Collateral Account
an amount equal to the Purchase Price and deposit such amount into the Purchase Price
Account.

	 	(d)	 	To the extent that any Records pertaining to a purchased Receivable
are in Bank’s possession, upon Company’s request, Bank agrees to cause such Records to
be delivered to Company, at Company’s cost, on each applicable Closing Date.

3. Ownership of Receivables and Accounts; Covenants of the Bank.

	 	(a)	 	On and after each Closing Date, Company shall be the sole owner for all
purposes (e.g., tax, accounting and legal) of the Receivables purchased from Bank on
such date and Company shall be entitled to all of the rights, privileges, and remedies
applicable to said ownership interest, including, without limitation, the right to
pledge, transfer, sell, assign, exchange, or collect and receive payments under the
Receivables. Bank does not assume and shall not have any liability to Company for the
repayment of any Receivables. Bank and Company each intend the transfer of the
Receivables under this Agreement to be a true sale by Bank to Company that is absolute
and irrevocable. At any time and from time to time, Bank will promptly and duly execute
and deliver or will promptly cause to be executed and delivered, such further
instruments and documents and take such further actions as are reasonably requested by
Company to confirm the sale of the Receivables and/or for the purpose of obtaining or
preserving the full benefits of this Agreement, including, without limitation, the
filing of any financing or continuation statements under the UCC or other applicable
state law in effect in any jurisdiction with respect to the transfer of ownership of
the Receivables. However, notwithstanding the intent of the parties, if a court of
competent jurisdiction holds that the conveyance of the Receivables is not a true sale
of the Receivables from Bank to Company, then (i) this Agreement also shall be deemed
to be and hereby is a security agreement within the meaning of the UCC, and (ii) the
conveyance by Bank provided for in this Agreement shall be deemed to be, and Bank
hereby grants to Company, a first priority security interest in and to all of Bank’s
right, title, and interest in the Receivables to secure all obligations now or
hereafter arising from Bank to Company. Bank also hereby authorizes Company to file any
such financing or continuation statement with respect to such grant. Further, Bank will
promptly and duly execute and deliver or will promptly cause to be executed or

 

 

	 	 	 	delivered, such further instruments and documents and take such further actions as
are reasonably requested by Company to effect the servicing of the Accounts and
Receivables. At any time and from time to time, Company will promptly and duly
execute and deliver or will promptly cause to be executed or delivered, such further
instruments and documents and take such further actions as are reasonably requested
by Bank for the purpose of obtaining or preserving the full benefits of this
Agreement.

	 	(b)	 	During such time as Bank owns the Receivables related to the
Accounts, Company shall ensure that all refunds, adjustments, and credits provided by
Company for Merchandise under its customer satisfaction policy, which are purchased via
an extension of credit with respect to an Account, shall be disbursed to Bank within
three (3) Business Days after the refund is made by Company. Bank hereby assigns to
Company, with respect to each Receivable purchased pursuant to this Agreement, all of
Bank’s rights to any such refunds, credits or adjustments and the interest accruing on
each of such Receivables at the time of the sale of such Receivable to Company.

	 	(c)	 	Bank shall retain ownership of the Accounts after each Closing
Date. Company agrees to make entries on its books and records to clearly indicate the
Bank’s ownership of the Accounts as of each Closing Date. Bank does not assume and
shall not have any liability to Company or its assignees for the Borrower’s failure to
make any payment under any Receivable; provided that the Bank shall make the payments,
in respect of the Receivables received by it, as provided in Section 4(d)(iii) hereof.

	 	(d)	 	Bank hereby covenants that:

	 	(i)	 	BANK will take no action to cause any Account or
Receivable to be evidenced by any “instrument” or “chattel paper” (as defined
in the UCC as in effect in the Relevant UCC State). Bank will take all actions
reasonably requested by Company for the purpose of ensuring that any Account
not be anything other than an “account” or a “general intangible” or a “payment
intangible” and/or any Receivable not be anything other than a “general
intangible” or an “account” (as defined in the UCC as in effect in the Relevant
UCC State) or under any revision to the law under the Relevant UCC State.

	 	(ii)	 	Except for the rights expressly granted to Company under
the Program Documents, during the Term hereof, Bank will not sell, pledge,
assign or transfer to any other Person, any Account or any Receivable, or any
interest therein.

	 	(iii)	 	If Bank receives or collects any funds in repayment of a
Receivable sold to Company after the applicable Closing Date for such
Receivable, Bank shall promptly send an e-mail notice of any such receipts to
Company, and simultaneously send such funds by wire transfer (or other means as
agreed to by Parties) to an account designated for this purpose by Company.
Bank hereby agrees and acknowledges that any payments so collected by Bank
shall be held in trust for Company and shall be delivered promptly to Company.

 

 

4. General Representations and Warranties of Bank. Bank hereby represents
and warrants as of the Effective Date of this Agreement and on each Closing Date that:

	 	(a)	 	Bank is an FDIC-insured Utah-chartered industrial loan
company, duly organized, validly existing under the laws of the State of Utah and has
full corporate power and authority to execute, deliver, and perform its obligations
under this Agreement; the execution, delivery and performance of this Agreement and the
transfer of the Receivables have been and will continue to be duly authorized and are
not and will not be in conflict with and do not violate the terms of the charter or
bylaws of Bank and will not result in a material breach of or constitute a default
under, or require any consent under, any indenture, loan, or material agreement to
which Bank is a party unless such breach or default is waived or consent is obtained;

	 	(b)	 	All approvals, authorizations, licenses, registrations, consents,
and other actions by, notices to, and filings with, any Person that may be required in
connection with the execution, delivery, and performance of this Agreement by Bank,
have been obtained (other than those required to be made to or obtained from
Borrowers);

	 	(c)	 	This Agreement constitutes a legal, valid, and binding obligation
of Bank, enforceable against Bank in accordance with its terms, except (i) as such
enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, receivership, conservatorship or other similar laws now or hereafter in
effect (including the rights and obligations of receivers and conservators under 12
U.S.C. §§ 1821(d) and (e)), which may affect the enforcement of creditors’ rights in
general, and (ii) as such enforceability may be limited by general principles of equity
(whether considered in a suit at law or in equity);

	 	(d)	 	There are no proceedings or investigations pending or, to the best
knowledge of Bank, threatened against Bank (i) asserting the invalidity of this
Agreement, (ii) seeking to prevent the consummation by Bank of any of the transactions
contemplated by this Agreement, (iii) seeking any determination or ruling that, in the
reasonable judgment of Bank, would materially and adversely affect the performance by
Bank of its obligations under this Agreement, (iv) seeking any determination or ruling
that would materially and adversely affect the validity or enforceability of this
Agreement or (v) that would have a materially adverse financial effect on Bank or its
operations if resolved adversely to it;

	 	(e)	 	Bank is not Insolvent; and

	 	(f)	 	The execution, delivery and performance of this Agreement by Bank
complies in all material respects with all Applicable Laws; provided that the Bank
makes no representation or warranty regarding compliance with Applicable Laws relating
to consumer protection, consumer lending, loan collection, anti-money laundering or
privacy.

5. Additional Representations and Warranties of Bank. Bank hereby represents
and warrants that, as of the Effective Date or such other date as specified below in a specific
representation:

 

 

	 	(a)	 	As of each applicable Closing Date, each Receivable
transferred to Company on such date was originated by Bank and constitutes a valid
sale, transfer, assignment, set-over and conveyance to Company of all of Bank’s right,
title, and interest in and to such Receivable free of any lien or adverse interest;

	 	(b)	 	As of each applicable Closing Date, Bank was the legal and
beneficial owner of all right, title and interest in and to each Receivable transferred
to Company on such date, and no such Receivable was subject to an encumbrance,
immediately prior to the transfer of such Receivable to Company pursuant hereto;

	 	(c)	 	At all times Bank shall maintain its records in a manner to
clearly and unambiguously reflect the ownership of Company in each of the Receivables
transferred hereunder; and

	 	(d)	 	As of each applicable Closing Date, with respect to each
Receivable transferred to Company on such date: (i) Bank has done nothing that would
alter the terms and conditions or the amount of the Receivable or impair its
enforceability; and (ii) each Account Agreement provides that it, and the Receivables
related thereto, may be assigned without the written consent of the Borrower and there
is no limit on Bank’s authority to assign the Receivable. For the avoidance of doubt,
the representation made in Section 5(d)(i) shall not encompass actions that are taken
by Company on behalf of Bank.

6. Representations and Warranties of Company. Company hereby represents and
warrants to Bank, as of the Effective Date and on each Closing Date that:

	 	(a)	 	Company is a corporation, duly organized and validly existing in good
standing under the laws of the State of Delaware, and has full power and authority to
execute, deliver, and perform its obligations under this Agreement; the execution,
delivery, and performance of this Agreement have been duly authorized, and are not in
conflict with and do not violate the terms of the articles or bylaws of Company and
will not result in a material breach of or constitute a default under or require any
consent under any indenture, loan, or Material Agreement to which Company is a party
unless such breach or default is waived or consent is obtained;

	 	(b)	 	All approvals, authorizations, consents, and other actions by, notices
to, and filings with any Person required to be obtained for the execution, delivery,
and performance of this Agreement by Company, have been obtained;

	 	(c)	 	This Agreement constitutes a legal, valid, and binding obligation of
Company, enforceable against Company in accordance with its terms, except (i) as such
enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, or other similar laws now or hereafter in effect, which may affect the
enforcement of creditors’ rights in general, and (ii) as such enforceability may be
limited by general principles of equity (whether considered in a suit at law or in
equity);

	 	(d)	 	There are no proceedings or investigations pending or, to the best
knowledge of Company, threatened against Company (i) asserting the invalidity of this
Agreement,

 

 

	 	 	 	(ii) seeking to prevent the consummation of any of the transactions contemplated by
Company pursuant to this Agreement, (iii) seeking any determination or ruling that,
in the reasonable judgment of Company, would materially and adversely affect the
performance by Company of its obligations under this Agreement, (iv) seeking any
determination or ruling that would materially and adversely affect the validity or
enforceability of this Agreement or (v) that would have a materially adverse
financial effect on Company or its operations if resolved adversely to it;

	 	(e)	 	Company is not Insolvent; and

	 	(f)	 	The execution, delivery and performance of this Agreement by Company
complies in all material respects with Applicable Laws.

7. Conditions Precedent to the Obligations of Company. The obligations of
Company under this Agreement are subject to the satisfaction of the following conditions precedent
on or prior to each applicable Closing Date:

	 	(a)	 	No action or proceeding shall have been instituted or threatened
against Bank to prevent or restrain the consummation of the transactions contemplated
hereby, and, there shall be no injunction, decree, or similar restraint preventing or
restraining such consummation;

	 	(b)	 	The representations and warranties of Bank set forth in Sections 4
and 5 shall be true and correct in all material respects on each applicable Closing
Date as though made on and as of such date; and

	 	(c)	 	The agreements of Bank under Section 3(a) herein with respect to a
Receivable shall have been performed in all material respects as of the Closing Date
for such Receivable.

8. Conditions Precedent to the Obligations of Bank. The obligations of Bank
in this Agreement are subject to the satisfaction of the following conditions precedent on or prior
to each applicable Closing Date:

	 	(a)	 	No action or proceeding shall have been instituted or threatened
against Company to prevent or restrain the consummation of the purchase or other
transactions contemplated hereby, and, there shall be no injunction, decree, or similar
restraint preventing or restraining such consummation;

	 	(b)	 	The representations and warranties of Company set forth in Section 6
herein and in Section 9(b) and 9(c) of the Revolving Loan Product Program Agreement
shall be true, complete, and correct in all material respects on each applicable
Closing Date as though made on and as of such date; and

	 	(c)	 	The obligations of Company set forth in the Program Documents to be
performed on or before each applicable Closing Date shall have been performed in all
material respects as of such date by Company.

 

 

The Parties agree that, upon payment by Company to Bank of the Purchase Price on any Closing Date,
ownership of the Receivable acquired by Company on such day shall vest in Company, whether or not
the foregoing conditions precedent to such purchase, as set forth in Section(s) 7 and 8 herein,
were in fact satisfied; provided, however, that a Party’s failure to satisfy any of the foregoing
conditions precedent shall not constitute, or be construed or deemed, a waiver by any other Party
to any such condition and the non-breaching Party shall have the right to exercise all of the
rights and remedies available under this Agreement and by law for such failure, except to the
extent limited by Section 33 herein.

9. Term and Termination.

	 	(a)	 	This Agreement shall have an initial term commencing on the Effective
Date and continuing through August 19, 2013 (the “Initial Term”) and shall renew
automatically for successive additional terms of twelve (12) months each (each a
“Renewal Term”), unless either Party provides notice of non-renewal to the other Party
at least one hundred and eighty (180) days prior to the end of the Initial Term or any
Renewal Term or this Agreement is earlier terminated in accordance with the provisions
hereof.

	 	(b)	 	In addition to the termination right set forth in Section 19 herein,
a Party shall have the right to terminate this Agreement immediately upon written
notice to the other Party in any of the following circumstances:

	 	(1)	 	any representation or warranty made by the other
Party in this Agreement shall be incorrect in any material respect and shall
not have been corrected within thirty (30) calendar days after written notice
thereof has been given to such other Party;

	 	(2)	 	the other Party shall default in the performance of
any material obligation or undertaking under this Agreement and such default
shall continue for thirty (30) calendar days after written notice thereof has
been given to such other Party;

	 	(3)	 	the other Party shall commence a voluntary case or
other proceeding seeking liquidation, reorganization, or other relief with
respect to itself or its debts under any bankruptcy, insolvency, receivership,
conservatorship or other similar law now or hereafter in effect or seeking the
appointment of a trustee, receiver, liquidator, conservator, custodian, or
other similar official of it or any substantial part of its property, or shall
consent to any such relief or to the appointment of a trustee, receiver,
liquidator, conservator, custodian, or other similar official or to any
involuntary case or such proceeding commenced against it, or shall make a
general assignment for the benefit of creditors, or shall fail generally to pay
its debts as they become due, or shall take any corporate action to authorize
any of the foregoing;

	 	(4)	 	an involuntary case or other proceeding, whether
pursuant to banking regulations or otherwise, shall be commenced against the
other Party seeking liquidation, reorganization, or other relief with respect
to it or its debts under any bankruptcy, insolvency, receivership,
conservatorship or other similar

 

 

	 	 	 	law now or hereafter in effect or seeking the appointment of a trustee,
receiver, liquidator, conservator, custodian, or other similar official of
it or any substantial part of its property, and in the case of Company, such
involuntary case or other proceeding shall remain undismissed and unstayed
for a period of thirty (30) days, or an order for relief shall be entered
against either Party under the federal bankruptcy laws as now or hereafter
in effect;

	 	(5)	 	there is a materially adverse change in the financial
condition of the other Party; or

	 	(6)	 	either Party has terminated the Revolving Loan Product
Program Agreement in accordance with the terms thereof and any applicable notice
period provided in the Revolving Loan Product Program Agreement has expired.

	 	(c)	 	In addition to any other rights or remedies available to the Bank
under this Agreement or by law, Bank shall have the right to suspend payments of the
Settlement Amounts due to Company (as required under Section 7(a) of the Revolving Loan
Product Program Agreement) during the period commencing with the occurrence of any
monetary default, including but not limited to the failure to maintain the Required
Balance in the Collateral Account, and ending when such condition has been cured. In
addition to the foregoing termination rights and notwithstanding such suspension right,
Bank may terminate this Agreement: (i) immediately if Company defaults on its
obligations to make a payment to Bank as provided in Section 2 hereof and fails to cure
such default by 11:00 a.m. Eastern Time on the second (2rd) Business Day
following such default; or (ii) upon two (2) Business Days prior written notice to
Company if Company fails to maintain the Required Balance in the Collateral Account as
required by Section 34 hereof. In the event of any termination, except as provided in
Section 9(f) herein, Company shall immediately discontinue approving Accounts and
Account Advances under the terms of the Revolving Loan Product Program Agreement.

	 	(d)	 	Bank shall have the right to terminate this Agreement immediately
upon written notice to Company if Bank’s continued participation in the Program has
been prohibited pursuant to an order or other action, including any letter or directive
of any kind, by Bank’s Regulatory Authority.

	 	(e)	 	The termination of this Agreement either in part or in whole shall
not discharge any Party from any obligation incurred prior to such termination,
including any obligation with respect to Receivables sold prior to such termination.

	 	(f)	 	Following the termination of this Agreement, Company shall
purchase in accordance with the terms hereof any Receivables originated by Bank under
the Revolving Loan Product Program Agreement that have not already been purchased by
Company. Further, subject to Applicable Laws, immediately upon termination of this
Agreement, Company shall discontinue offering the Program as a purchase payment option
for Company’s Merchandise, including without limitation the removal of all references
to the Program from all of the Company’s websites.

10. Confidentiality.

 

 

	 	(a)	 	Each Party agrees that Confidential Information of the other Party (the
“Disclosing Party”) shall be used by each other Party (the “Restricted Party”) solely
in the performance of its obligations and exercise of its rights pursuant to the
Program Documents. Except as required by Applicable Laws or legal process, the
Restricted Party shall not disclose Confidential Information of the Disclosing Party to
third parties; provided, however, that the Restricted Party may disclose Confidential
Information of a Disclosing Party (i) to the Restricted Party’s Affiliates, agents,
representatives or subcontractors for the sole purpose of fulfilling the Restricted
Party’s obligations under this Agreement (as long as the Restricted Party exercises
commercially reasonable efforts to prohibit any further disclosure by its Affiliates,
agents, representatives or subcontractors), provided that in all events, the Restricted
Party shall be responsible for any breach of the confidentiality obligations hereunder
by any of its Affiliates, agents (other than Company as agent for Bank),
representatives or subcontractors, (ii) to the Restricted Party’s auditors, accountants
and other professional advisors, or to a Regulatory Authority, (iii) to the
Administrative Agent, other lenders to Bluestem and Bluestem’s other financing sources,
or (iv) to any other third party as mutually agreed by the Parties.

	 	(b)	 	A Party’s Confidential Information shall not include information
that:

	 	(1)	 	is generally available to the public;

	 	(2)	 	has become publicly known, without fault on the part of
the Restricted Party,
subsequent to the Restricted Party acquiring the information;

	 	(3)	 	was otherwise known by, or available to, the Restricted
Party prior to April 28, 2008; or

	 	(4)	 	becomes available to the Restricted Party on a
non-confidential basis from a Person, other than a Party to this Agreement, who
is not known by the Restricted Party after reasonable inquiry to be bound by a
confidentiality agreement with the Disclosing Party or otherwise prohibited
from transmitting the information to the Restricted Party.

	 	(c)	 	Upon written request or upon the termination of this Agreement, each
Restricted Party shall return to the Disclosing Party all Confidential Information in
its possession that is in written form, including by way of example, but not limited
to, reports, plans, and manuals; provided, however, that a Restricted Party may
maintain in its possession all such Confidential Information of the Disclosing Party
required to be maintained under Applicable Laws relating to the retention of records
for the period of time required thereunder.

	 	(d)	 	In the event that a Restricted Party is requested or required (by
oral questions, interrogatories, requests for information or documents, subpoena, civil
investigative demand or similar process) to disclose any Confidential Information of
the other Party, the Restricted Party will provide the Disclosing Party with prompt
notice of such request(s) so that the Disclosing Party may seek an appropriate
protective order or other appropriate remedy and/or waive the Restricted Party’s
compliance with the provisions of this Agreement. In the event that the Disclosing
Party does not seek

 

 

	 	 	 	such a protective order or other remedy, or such protective order or other remedy is
not obtained, or the Disclosing Party grants a waiver hereunder, the Restricted
Party may furnish that portion (and only that portion) of the Confidential
Information of the Disclosing Party which the Restricted Party is legally compelled
to disclose and will exercise such efforts to obtain reasonable assurance that
confidential treatment will be accorded any Confidential Information of the
Disclosing Party so furnished as the Restricted Party would exercise in assuring the
confidentiality of any of its own Confidential Information.

11. Indemnification.

	 	(a)	 	Bank agrees to indemnify and hold harmless Company and its
Affiliates, and the officers, directors, members, employees, representatives,
shareholders, agents and attorneys of such entities (the “Company Indemnified Parties”)
from and against any and all claims, actions, liability, judgments, damages, costs and
expenses, including reasonable attorneys’ fees (“Losses”), that may arise from the
gross negligence, willful misconduct or breach of any of Bank’s obligations or
undertakings under this Agreement by Bank.

	 	(b)	 	Company agrees to indemnify and hold harmless Bank and its
Affiliates, and the officers, directors, members, employees, representatives,
shareholders, agents and attorneys of such entities (the “Bank Indemnified Parties”)
from and against any and all Losses that may arise from Bank’s participation in the
Program as contemplated by the Program Documents (including Losses arising from a
violation of Applicable Law or a breach by Company or its agents or representatives of
any of Company’s obligations or undertakings under the Program Documents and
notwithstanding any materiality qualifier made in connection with any of the Company’s
representations and warranties set forth herein), unless such Loss results from the
gross negligence or willful misconduct of Bank.

	 	(c)	 	The Company Indemnified Parties and the Bank Indemnified Parties
are sometimes referred to herein as the “Indemnified Parties,” and Company or Bank, as
indemnitor hereunder, is sometimes referred to herein as the “Indemnifying Party.”

	 	(d)	 	Any Indemnified Party seeking indemnification hereunder shall
promptly notify the Indemnifying Party, in writing, of any notice of the assertion by
any third party of any claim or of the commencement by any third party of any legal or
regulatory proceeding, arbitration or action, or if the Indemnified Party determines
the existence of any such claim or the commencement by any third party of any such
legal or regulatory proceeding, arbitration or action, whether or not the same shall
have been asserted or initiated, in any case with respect to which the Indemnifying
Party is or may be obligated to provide indemnification (an “Indemnifiable Claim”),
specifying in reasonable detail the nature of the Loss, and, if known, the amount, or
an estimate of the amount, of the Loss, provided that failure to promptly give such
notice shall only limit the liability of the Indemnifying Party to the extent of the
actual prejudice, if any, suffered by such Indemnifying Party as a result of such
failure. The Indemnified Party shall provide to the Indemnifying Party as promptly as
practicable thereafter information and documentation reasonably requested by such
Indemnifying Party to defend against the claim asserted.

 

 

	 	(e)	 	The Indemnifying Party shall have thirty (30) days after receipt
of any notification of an Indemnifiable Claim (a “Claim Notice”) to notify the
Indemnified Party of the Indemnifying Party’s election to assume the defense of the
Indemnifiable Claim and, through counsel of its own choosing, and at its own expense,
to commence the settlement or defense thereof and the Indemnified Party shall cooperate
with the Indemnifying Party in connection therewith if such cooperation is so requested
and the request is reasonable; provided that the Indemnifying Party shall hold the
Indemnified Party harmless from all its reasonable out-of-pocket expenses, including
reasonable attorneys’ fees incurred in connection with the Indemnified Party’s
cooperation. If the Indemnifying Party assumes responsibility for the settlement or
defense of any such claim, (i) the Indemnifying Party shall permit the Indemnified
Party to participate at its expense in such settlement or defense through counsel
chosen by the Indemnified Party (subject to the consent of the Indemnifying Party,
which consent shall not be unreasonably withheld or delayed); provided that, in the
event that both the Indemnifying Party and the Indemnified Party are defendants in the
proceeding and the Indemnified Party shall have reasonably determined and notified the
Indemnifying Party that representation of both parties by the same counsel would be
inappropriate due to actual or potential differing interests between them, then the
fees and expenses of one such counsel for all Indemnified Parties in the aggregate
shall be borne by the Indemnifying Party; and (ii) the Indemnifying Party shall not
settle any Indemnifiable Claim without the Indemnified Party’s consent, which consent
shall not be unreasonably withheld or delayed for any reason if the settlement involves
only the payment of money, and which consent may be withheld for any reason if the
settlement involves more than the payment of money, including any admission by the
Indemnified Party. So long as the Indemnifying Party is reasonably contesting any such
Indemnifiable Claim in good faith, the Indemnified Party shall not pay or settle such
claim without the Indemnifying Party’s consent, which consent shall not be unreasonably
withheld or delayed. Notwithstanding the foregoing, (i) where such Indemnifiable Claim
involves a Bank’s Regulatory Authority, Bank shall retain the right to control the
settlement or defense thereof whether Bank is an Indemnifying Party or and Indemnified
Party, and (ii) if Bank is the Indemnified Party, Bank shall be entitled to the
Indemnifying Party’s cooperation and indemnification, including out-of-pocket expenses,
and reasonable attorney’s fees incurred by Bank.

	 	(f)	 	If the Indemnifying Party does not notify the Indemnified Party
within thirty (30) days after receipt of the Claim Notice that it elects to undertake
the defense of the Indemnifiable Claim described therein, or if the Indemnifying Party
fails to contest vigorously any such Indemnifiable Claim, the Indemnified Party shall
have the right, upon notice to the Indemnifying Party, to contest, settle or compromise
the Indemnifiable Claim in the exercise of its reasonable discretion; provided that the
Indemnified Party shall notify the Indemnifying Party at least five (5) Business Days
prior to any compromise or settlement of any such Indemnifiable Claim. No action taken
by the Indemnified Party pursuant to this subsection 11(f) shall deprive the
Indemnified Party of its rights to indemnification pursuant to this Section 11.

12. Assignment. This Agreement and the rights and obligations created under
it shall be binding upon and inure solely to the benefit of the Parties and their respective
successors, and

 

 

permitted assigns. Neither Party shall be entitled to assign or transfer any interest under this
Agreement without the prior written consent of the other Party, except that Bank may assign this
Agreement or any of its rights or obligations arising hereunder to the surviving entity in a
merger, sale, acquisition, or consolidation in which it participates. No assignment under this
Section 12 shall relieve Bank or Company of its obligations under this Agreement. Company may use
subcontractors in the performance of its obligations under this Agreement; provided that Company
shall be fully responsible for the acts and omissions of its subcontractors, including the
subcontractors’ compliance with the terms of the Agreement and all Applicable Laws. Notwithstanding
the prohibition on assignment in the second sentence of this Section 12, Bank hereby acknowledges
and consents to (i) the sale, transfer and assignment by Company of all of its right, title and
interest (but excluding all of Company’s obligations, including, without limitation, Company’s
obligations under Section 34 hereof) in, to and under the Receivables, the Account Agreements and
the Program Documents, whether now existing or hereafter acquired (the “Assigned Interests”),
pursuant to the Receivables Purchase Agreement (“RPA”), dated as of August 20, 2010 between Company
and Fingerhut Receivables I, LLC (“Fingerhut Receivables”), as the same may be amended,
supplemented or otherwise modified, or refinanced, restated or replaced (with the same or different
financing sources), from time to time in accordance with the terms thereof, and (ii) in connection
with the Credit Agreement (“Credit Agreement”) dated as of August 20, 2010 by and among Goldman
Sachs Bank USA, as administrative agent (in such capacity, and including any successor thereto, the
“Administrative Agent”), collateral agent (in such capacity, and including any successor thereto,
the “Collateral Agent”), joint lead arranger, joint bookrunner, syndication agent and documentation
agent and J.P. Morgan Securities Inc., as joint lead arranger and joint bookrunner, as the same may
be amended, supplemented or otherwise modified, or refinanced, restated or replaced (with the same
or different financing sources), from time to time in accordance with the terms thereof, the grant
of a security interest by Fingerhut Receivables of in all of its right, title and interest in the
Assigned Interests to the Collateral Agent, and the enforcement of such security interest by the
Collateral Agent, in each case pursuant to the Security Agreement (the “Security Agreement”) dated
as of August 20, 2010 between Collateral Agent and Fingerhut Receivables, as the same may be
amended, supplemented or otherwise modified, or refinanced, restated or replaced (with the same or
different financing sources), from time to time in accordance with the terms thereof. Bank hereby
further acknowledges and consents to the exercise of the rights, title and interest in the Assigned
Interests directly by Fingerhut Receivables to the extent permitted by the RPA, and by the
Collateral Agent to the extent permitted by the Security Agreement. Notwithstanding the foregoing,
in exercising such rights in the Assigned Interests permitted by the RPA and the Security
Agreement, neither Fingerhut Receivables nor the Collateral Agent shall have any greater right,
title and interest than Company’s right, title and interest in the Assigned Interests, and the Bank
shall have any and all rights and defenses against Fingerhut Receivables and the Collateral Agent
as it would have had against the Company.

13. Third Party Beneficiaries. Nothing contained herein shall be construed as
creating a third-party beneficiary relationship between either Party and any other Person;
provided, however, (i) Fingerhut Receivables I, LLC, (ii) the Administrative Agent and (iii)
Collateral Agent shall each be a third party beneficiary of this Agreement.

14. Proprietary Material. The Bank hereby provides Company with a non-exclusive
right and non assignable license to use and reproduce the Bank’s name, logo, registered trademarks
and

 

 

service marks (collectively “Proprietary Material”) as necessary to fulfill each Party’s
obligations under this Agreement; provided, however, that (i) Company shall obtain Bank’s prior
written approval for the use of Proprietary Material and such use shall at all times comply with
written instructions provided by Bank regarding the use of its Proprietary Material; and (ii)
Company acknowledges that, except as specifically provided in this Agreement, it will acquire no
interest in Bank’s Proprietary Material. Upon termination of this Agreement, Company will cease
using Bank’s Proprietary Material.

15. Notices. All notices and other communications that are required or may be
given in connection with this Agreement shall be in writing and shall be deemed received (i) on the
day delivered, if delivered by hand; (ii) on the day transmitted, if transmitted by facsimile or
e-mail with receipt confirmed; or (iii) the following Business Day after the date of mailing to the
other party, if mailed for next-day delivery and delivered by a reputable overnight courier with
package tracing capability, at the following address, or such other address as either party shall
specify in a notice to the other:

	 	 	 	 
	
	 	To Bank:

	 	WebBank
	 	 

	 	Attn: Senior Vice President — Strategic Partnerships 6440 S. 

Wasatch Blvd., Suite 300
	 	 

	 	Salt Lake City, UT 84121
	 	 

	 	Tel. 908-251-5798
	 	 

	 	Fax: 801-993-5015
	 	 

	 	Email: strategicpartnerships@WebBank.com
	 	 
	 	 
	 	With a copy to:

	 	WebBank
	 	 

	 	Attn: Compliance Officer
	 	 

	 	6440 S. Wasatch Blvd., Suite 300
	 	 

	 	Salt Lake City, UT 84121 Tel. 801-993-5008
	 	 

	 	Fax: 801-993-5015
	 	 

	 	Email: complianceofficer@WebBank.com
	 	 
	 	 
	 	To Company:

	 	Bluestem Brands, Inc.
	 	 

	 	Attn: SVP and Chief Credit Officer
	 	 

	 	6509 Flying Cloud Drive
	 	 

	 	Eden Prairie, MN 55344
	 	 

	 	Tel. (952) 656-3916
	 	 

	 	Fax (952) 656-4117
	 	 
	 	 
	 	With copies to:

	 	Bluestem Brands, Inc.
	 	 

	 	Attn: General Counsel
	 	 

	 	6509 Flying Cloud Drive
	 	 

	 	Eden Prairie, MN 55344
	 	 

	 	Tel. (952) 656-3916
	 	 

	 	Fax (952) 656-4117
	 	 
	 	 
	 	 

	 	Goldman Sachs Bank USA
	 	 

	 	Attn: Account Manager
	 	 

	 	6011 Connection Drive
	 	 

	 	Irving TX 75039
	 	 

	 	Telephone: (972) 368-5099
	 	 

	 	Facsimile: (972) 368-5000

 

 

16. Relationship of Parties. Bank and Company agree that in
performing their responsibilities pursuant to this Agreement, they are in the position of
independent contractors. This Agreement is not intended to create, nor does it create and shall not
be construed to create, a relationship of partner or joint venturer or any association for profit
between and among Bank and Company.

17. Retention of Records. Any Records with respect to Receivables purchased by
Company pursuant hereto retained by Bank shall be held as custodian for the benefit of the account
of Bank and Company as owners thereof. Bank shall provide copies of Records to Company upon
reasonable request of Company.

18. Force Majeure. If any Party shall be unable to carry out the whole or any
part of its obligations under this Agreement by reason of a Force Majeure Event, then the
performance of such obligations under this Agreement of such Party as they are affected by such
cause shall be excused during the continuance of the inability so caused, except that should such
inability not be remedied within thirty (30) days after the date of such cause, either Party not so
affected may at any time after the expiration of such thirty (30) day period, during the
continuance of such inability, terminate this Agreement on giving written notice to the other Party
and without payment of a termination fee or other penalty. A “Force Majeure Event” as used in this
Agreement shall mean an unanticipated event that is not reasonably within the control of the
affected Party or its subcontractors (including, but not limited to, acts of God, acts of
governmental authorities, strikes, war, riot and any other causes of such nature), and which by
exercise of reasonable due diligence, such affected Party or its subcontractors could not
reasonably have been expected to avoid, overcome or obtain, or cause to be obtained, a commercially
reasonable substitute therefor. No Party shall be relieved of its obligations hereunder if its
failure of performance is due to removable or remediable causes which such Party fails to remove or
remedy using commercially reasonable efforts within a reasonable time period. Either Party rendered
unable to fulfill any of its obligations under this Agreement by reason of a Force Majeure Event
shall give prompt notice of such fact to the other Party, followed by written confirmation of
notice, and shall exercise due diligence to remove such inability with all reasonable dispatch.
Notwithstanding the foregoing, Bank shall have the right to suspend payments of the Settlement
Amounts due to Company (as required under Section 7(a) of the Revolving Loan Product Program
Agreement) during the period commencing with the occurrence of a Force Majeure Event resulting in
Company’s monetary default, including its failure to maintain the Required Balance in the
Collateral Account, and ending when such Force Majeure Event has been cured.

19. Agreement Subject to Applicable Laws. If (a) either Party has been advised by
legal counsel of a change in Applicable Laws or any judicial decision of a court having
jurisdiction over a Party or any interpretation of a Regulatory Authority that, in the view of such
legal counsel, would have a materially adverse effect on the rights or obligations of such Party
under this Agreement or the financial condition of such Party, (b) either Party shall receive a
request of any Regulatory Authority having jurisdiction over such Party, including any letter or
directive of

 

 

any kind from any such Regulatory Authority, that prohibits or restricts such Party from carrying
out its obligations under this Agreement, or (c) either Party has been advised by legal counsel
that such Party’s or the other Party’s continued performance under this Agreement would violate
Applicable Laws, then the affected Party shall provide written notice to the other Party of such
advisement or request and the Parties shall meet and consider in good faith any modifications,
changes or additions to the Program or the Program Documents that may be necessary to eliminate
such result. Notwithstanding any other provision of the Program Documents, including Section 9
hereof, if the Parties are unable to reach agreement regarding such modifications, changes or
additions to the Program or the Program Documents within ten (10) Business Days after the Parties
initially meet, either Party may terminate this Agreement upon five (5) days’ prior written notice
to the other Party. A Party shall be able to suspend performance of its obligations under this
Agreement, or require the other Party to suspend its performance of its obligations under this
Agreement, upon providing the other Party with advance written notice, if any event described in
subsection 19(a), (b) or (c) above occurs.

20. Expenses. Each Party shall bear the costs and expenses of performing its
obligations under this Agreement, unless expressly provided otherwise in the Program Documents.
Each Party shall be responsible for payment of any federal, state, or local taxes or assessments
associated with the performance of its obligations under this Agreement. Company shall reimburse
Bank for all third party bank fees incurred by Bank in connection with the performance of this
Agreement. Within ten (10) days after receipt of notice, Company shall reimburse Bank for all of
Bank’s closing costs and legal fees reasonably incurred in the due diligence, negotiation and
drafting of the Program Documents. Within ten (10) days after receipt of an invoice from Bank,
Company shall reimburse Bank for the monthly costs associated with the transfer of funds from the
Collateral Account to Company.

21. Examination. Each Party agrees to submit to any examination that may be
required by a Regulatory Authority having jurisdiction over the other Party, during regular
business hours and upon reasonable prior notice.

22. Inspection; Reports. Each Party, upon reasonable prior notice from the other
Party, agrees to submit to an inspection of its books, records, accounts, and facilities relevant
to the Program, from time to time, during regular business hours subject, in the case of Bank, to
the duty of confidentiality it owes to its customers and banking secrecy and confidentiality
requirements otherwise applicable under Applicable Laws. Except as otherwise provided herein, all
reasonable expenses of inspection shall be borne by the Party conducting the inspection.
Notwithstanding the obligation of each Party to bear its own expenses of inspection, Company shall
reimburse Bank for reasonable out of pocket expenses incurred by Bank in the performance of on-site
reviews of Company’s financial condition, operations, internal controls, and other matters
pertaining to this Agreement and the Revolving Loan Product Program Agreement. Company shall store
all documentation and electronic data related to its performance under this Agreement consistent
with its existing document and data storage retention practices as of the date hereof and shall
make such documentation and data available during any inspection by Bank or its designee. From time
to time upon Bank’s request, Company shall report to Bank regarding the performance of its
obligations, including the performance of its Account servicing obligations according to the
service level standards.

 

 

23. Governing Law; Waiver of Jury Trial. Except as preempted or controlled by
federal law, this Agreement shall be interpreted and construed in accordance with the laws of the
State of Utah, without giving effect to the rules, policies, or principles thereof with respect to
conflicts of laws. THE PARTIES HEREBY EXPRESSLY WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION ARISING HEREUNDER.

24. Manner of Payments. Unless the manner of payment is expressly provided
herein, all payments under this Agreement shall be made by either ACH or wire transfer to the bank
accounts designated by the respective Parties. Notwithstanding anything to the contrary contained
herein, neither Party shall be excused from making any payment required of it under this Agreement
as a result of a breach or alleged breach by the other Party of any of its obligations under this
Agreement or any other agreement, provided that the making of any payment hereunder shall not
constitute a waiver by the Party making the payment of any rights it may have under the Program
Documents or by law.

25. Brokers. Neither Party has agreed to pay any fee or commission to any agent,
broker, finder, or other person for or on account of services rendered as a broker or finder in
connection with this Agreement or the transactions contemplated hereby that would give rise to any
valid claim against the other Party for any brokerage commission or finder’s fee or like payment.

26. Entire Agreement. The Program Documents, including exhibits, constitute the
entire agreement between the Parties with respect to the subject matter thereof, and supersede any
prior or contemporaneous negotiations or oral or written agreements with regard to the same subject
matter.

27. Amendment and Waiver. This Agreement may not be amended orally, but only by a
written instrument signed by all Parties. The failure of any Party to require the performance of
any term of this Agreement or the waiver by any Party of any default under this Agreement shall not
prevent a subsequent enforcement of such term and shall not be deemed a waiver of any subsequent
breach. All waivers must be in writing and signed by the Party against whom the waiver is to be
enforced.

28. Severability. Any provision of this Agreement which is deemed invalid,
illegal or unenforceable in any jurisdiction, shall, as to that jurisdiction, be ineffective to the
extent of such invalidity, illegality or unenforceability, without affecting in any way the
remaining portions hereof in such jurisdiction or rendering such provision or any other provision
of this Agreement invalid, illegal, or unenforceable in any other jurisdiction.

29. Interpretation. The Parties acknowledge that each Party and its counsel have
reviewed and revised this Agreement and that the normal rule of construction to the effect that any
ambiguities are to be resolved against the drafting party shall not be employed in the
interpretation of this Agreement or any amendments thereto, and the same shall be construed neither
for nor against either Party, but shall be given a reasonable interpretation in accordance with the
plain meaning of its terms and the intent of the Parties.

30. Jurisdiction; Venue. The Parties consent to the personal jurisdiction and
venue of the federal and state courts in Salt Lake City, Utah for any court action or proceeding.

 

 

31. Headings. Captions and headings in this Agreement are for convenience only
and are not to be deemed part of this Agreement.

32. Counterparts. This Agreement may be executed and delivered by the Parties in
any number of counterparts, and by different parties on separate counterparts, each of which
counterpart shall be deemed to be an original and all of which counterparts, taken together, shall
constitute but one and the same instrument.

33. Waiver. Bank agrees that notwithstanding any claim, counterclaim,
right of setoff or defense which it may have against Company due to a breach by Company of this
Agreement or the Revolving Loan Product Program Agreement, or for any other reason, and
notwithstanding the bankruptcy or insolvency of Company or any other event whatsoever, in no event
shall Bank assert any interest in any Receivable for which the Purchase Price for such Receivable
has been paid to Bank or take any action which would reduce or delay receipt of any payment made by
a Borrower with respect thereto.

34. Collateral Account.

	 	(a)	 	Establishment of Collateral Account. On the Launch Date,
Company shall provide Bank with [*] as cash collateral for
Company’s obligations under this Agreement. Bank shall deposit such amount in a
deposit account (“Collateral Account”) at Bank. The Collateral Account shall be a
segregated deposit account that shall hold only the funds provided by Company to Bank
as collateral. At all times after the Launch Date, Company shall maintain funds in the
Collateral Account equal to one hundred percent (100%) of the average daily (calculated
on Business Days) outstanding principal balance of Receivables owned by Bank during the
preceding calendar month (the “Required Balance”). The Required Balance shall be
calculated monthly as of the first Business Day of each month during the Term. In the
event the actual balance in the Collateral Account is less than the Required Balance,
Company shall, within one (1) Business Day of such deficiency, make a payment into the
Collateral Account in an amount equal to the difference between the Required Balance
and the actual balance in such account. Notwithstanding the foregoing, upon no less
than three (3) Business Days notice to Company, Bank shall have the right to change the
calculation period for determining the Required Balance from monthly to weekly. In the
event the actual balance in the Collateral Account is more than the Required Balance,
Bank shall, within one (1) Business Day, make a payment to Company in an amount equal
to the difference between the Required Balance and the actual balance in such account.

	 	(b)	 	Security Interest. To secure Company’s obligations under
this Agreement, Company hereby grants Bank a security interest in the Collateral
Account and the funds therein or proceeds thereof, and agrees to take such steps as
Bank may reasonably require to perfect or protect such first priority security
interest. Bank shall have all of the rights and remedies of a secured party under
Applicable Laws with respect to the Collateral Account and the funds therein or
proceeds thereof, and shall be entitled to exercise those rights and remedies in its
discretion.

	 	(c)	 	Withdrawals.

[*]
Indicates confidential portions omitted pursuant to a request for
confidential treatment filed separately with the Securities and
Exchange Commission

 

 

	 	(1)	 	Without limiting any other rights or remedies of Bank
under this Agreement, Bank shall have the right to withdraw amounts from the
Collateral Account to fulfill any monetary obligations of Company arising under
this Agreement or the Revolving Loan Product Program Agreement (including but
not limited to purchasing Receivables, payment of fees and legal expenses,
reimbursement of costs, and indemnification) on which Company has defaulted in
accordance with the terms hereof or thereof, either during the Term or
following termination of either of the aforementioned agreements.

	 	(2)	 	Except as otherwise provided herein, Company shall not
have any right to withdraw amounts from the Collateral Account. On the last
Friday of each month, provided that if a Friday is not a Business Day, then on
the next Business Day, at Company’s option, Company may provide to Bank a
report setting forth a calculation for the Required Balance and the extent to
which the actual amount held in the Collateral Account at such time exceeds the
Required Balance. Within two (2) Business Days after receipt of such a report
from Company, Bank shall withdraw from the Collateral Account any amount held
therein that exceeds the Required Balance as of the date of such report and pay
such amount to an account designated by Company.

	 	(3)	 	Termination of Collateral Account. Bank
shall release any funds remaining in the Collateral Account within thirty (30)
Business Days after the latest to occur of: (i) termination of this Agreement;
(ii) the end of the period described in Section 12(e) of the Revolving Loan
Product Program Agreement; or (iii) the date when obligations of Company under
the Program Documents have been satisfied in full by Company.

35. Survival. All representations, warranties, covenants, guaranties and
indemnifications contained in this Agreement, including without limitation Section(s) 4, 5, 6, 9,
10, 11, 30, 33, 34, and 35 shall survive the sale, transfer, assignment, set-over, and conveyance
of the Receivables and the expiration or termination of this Agreement.

36. Charged-Off Accounts. Bank shall transfer, assign, set-over, and otherwise
convey to Company, for no fee, all Accounts opened pursuant to the Program that have been
charged-off by Bank in accordance with Bank’s policies and procedures regarding charge-offs.

[SIGNATURE PAGE FOLLOWS]

 

 

     IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by the duly
authorized officers as of the date first written above.

	 	 	 	 	 	 	 

	 
	WEBBANK	 	BLUESTEM BRANDS, INC.
	 
	By: 	 /s/ Kelly M. Barnett	 	By: 	  /s/ Mark P. Wagener
	 	Name Kelly M. Barnett `	 	 	Name: 	 Mark P. Wagener
	 	Title: 	 Acting President	 	 	Title: 	 Executive Vice President

 

 

Schedule 1

Definitions

All capitalized terms used in this Receivables Sale Agreement and not otherwise defined in this
Receivables Sale Agreement or this Schedule 1 shall have the meanings ascribed to those
terms in the Revolving Loan Product Program Agreement.

     (a) “ACH” means Automated Clearinghouse.

     (b) “Account” has the meaning assigned to such term in
Schedule 1 of the Revolving Loan Product Program Agreement.

     (c) “Account Advance” has the meaning assigned to such term in
Schedule 1 of the Revolving Loan Product Program Agreement.

     (d) “Account Agreement” has the meaning assigned to such term in
Schedule 1 of the Revolving Loan Product Program Agreement.

     (e) “Administrative Agent” shall have the meaning set forth in
Section 12.

     (f) “Affiliate” means, with respect to a Party, a Person who
directly or indirectly controls, is controlled by or is under common control with the Party. For
the purpose of this definition, the term “control” (including with correlative meanings, the terms
controlling, controlled by and under common control with) means the power to direct the management
or policies of such Person, directly or indirectly, through the ownership of fifty percent (50%) or
more of a class of securities having ordinary voting power for the election of directors of such
Person.

     (g) “Agreement” means this Receivables Sale Agreement.

     (h) “Applicable Laws” means all federal, state and local laws,
statutes, regulations and orders applicable to a Party or relating to or affecting any aspect of
the Program including, without limitation, the Accounts and Receivables, all requirements of any
Regulatory Authority having jurisdiction over a Party, as any such laws, statutes, regulations,
orders and requirements may be amended and in effect from time to time during the term of this
Agreement.

     (i) “Applicant” has the meaning assigned to such term in
Schedule 1 of the Revolving Loan Product Program Agreement.

     (j) “Assigned Interests” shall have the meaning set forth in
Section 12.

     (k) “Bank Indemnified Parties” shall have the meaning set forth
in subsection 11(b) hereof.

     (l) “Borrower” has the meaning assigned to such term in
Schedule 1 of the Revolving Loan Product Program Agreement.

 

 

     (m) “Business Day” means any day, other than (i) a Saturday or
Sunday, or (ii) a day on which banking institutions in the State of Utah are authorized or
obligated by law or executive order to be closed.

     (n) “Claim Notice” shall have the meaning set forth in
subsection 11(e) hereof.

     (o) “Closing Date” means each date on which Company pays Bank
the Purchase Price for a Receivable and, pursuant to Section 2 hereof, acquires such Receivable
from Bank. The Closing Date for Receivables listed on a Daily Settlement Statement shall be one (1)
Business Day after Bank’s payment of the Settlement Amount. For example, if the date that Bank
makes payment of the Settlement Amount is Monday, the Closing Date is Tuesday; however, if Tuesday
is not a Business Day, the Closing Date is Wednesday (assuming Wednesday is a Business Day). If the
date that Bank makes a payment of the Settlement Amount is Friday, the Closing Date is Monday
because Saturday and Sunday are not Business Days.

     (p) “Collateral Account” shall have the meaning set forth in
subsection 34(a) hereof.

     (q) “Collateral Agent” shall have the meaning set forth in
Section 12.

     (r) “Company Indemnified Parties” shall have the meaning set
forth in subsection 11(a) hereof.

     (s) “Confidential Information” means the terms and conditions of
this Agreement, and any proprietary information or non-public information of a Party, including a
Party’s proprietary marketing plans and objectives, that is furnished to the other Party in
connection with this Agreement.

     (t) “Credit Policy” has the meaning assigned to such term in
Schedule 1 of the Revolving Loan Product Program Agreement.

     (u) “Daily Settlement Sheet” means the statement prepared by
Bank each Business Day that contains the computation of the Purchase Price to be forwarded by
Company to Bank. Such Daily Settlement Sheet need not identify by account number (or other unique
identifier) the Receivables to which it relates provided that Company can ascertain such
information from its records.

     (v) “Disclosing Party” shall have the meaning set forth in
subsection 10(b)(2) hereof.

     (w) “Effective Date” shall mean July 23, 2009.

     (x) “FDIC” means the Federal Deposit Insurance Corporation.

     (y) “Fingerhut Receivables” shall have the meaning set forth in
Section 12.

     (z) “Force Majeure Event” shall have the meaning set forth in
Section 18 hereof.

     (aa) “Indemnifiable Claim” shall have the meaning set forth in subsection
11(d) hereof.

 

 

	 	(bb)	 	“Insolvent” means the failure to pay debts in the
ordinary course of business, the inability to pay its debts as they come due or the
condition whereby the sum of an entity’s debts is greater than the sum of its assets.

     (cc) “Interim Interest” means with respect to a Receivable,
interest accrued during the period commencing on the date the Bank pays the Settlement Amount and
ending on the Closing Date for such Receivable at an annual interest rate equal to the annual
percentage rate set forth in the Account Agreement for that Receivable; provided, however, that
with respect to any Receivable that has a promotional interest rate during the period, then the
Interim Interest shall be calculated using an assumed annual interest rate equal to the
non-promotional rate under the Account at such time for which the Borrower qualified.

     (dd) “Launch Date” has the meaning assigned to such term in
Schedule 1 of the Revolving Loan Product Program Agreement.

     (ee) “Revolving Loan Product Program Agreement” means that certain Revolving
Loan Product Program Agreement, dated as of July 23, 2009, between Company and Bank, pursuant to
which the Parties agreed to operate the Program.

     (ff)“Losses” shall have the meaning set forth in subsection 11(a) hereof.

     (gg)“Material Agreement” means any agreement: (i) by and between Company and Corecard
Software, Inc. (with respect to its card processing platform); and (ii) Company and Equifax
Information Services, LLC (with respect to its application approval system Interconnect).

     (hh)“Merchandise” has the meaning assigned to such term in the Revolving Loan Product
Program Agreement.

     (ii) “Origination Fee” has the meaning assigned to such term in Schedule
1 of the

     Revolving Loan Product Program Agreement.

     (jj) “Party” means either Company or Bank and “Parties” means Company and
Bank.

     (kk) “Person” means any legal person, including any individual, corporation,
limited liability company, partnership, joint venture, association, joint-stock company, trust,
unincorporated organization, governmental entity, or other entity of similar nature.

     (ll) “Program”
has the meaning assigned to such term in Schedule 1
of the Revolving Loan Product Program Agreement.

     (mm) “Program Documents” means the Revolving Loan Product Program Agreement
and this Agreement.

     (nn)“Proprietary Material” shall have the meaning set forth in subsection
14 hereof.

     (oo) “Purchase Price” means, as to each Closing Date, the sum of: (i) the
aggregate principal amount of each Receivable; (ii) the aggregate Origination Fee for the
Receivables; and (iii) the aggregate Interim Interest applicable to each Receivable.

 

 

     (pp) “Purchase Price Account” shall have the meaning set forth in subsection
2(b) hereof.

     (qq) “Receivable” means, with respect to any Borrower, any right to payment
from or on behalf of any Borrower in respect of any Account, and includes any existing, as well as
the right to payment of any future, finance charges, late fees, returned check fees and any and all
other fees and charges and other obligations of such Borrower with respect to such Account. Each
Receivable includes, without limitation, all rights of Bank to payment under the Account Agreement
with such Borrower.

     (rr)“Receivables Contribution and Purchase Agreement” or “RPA”
shall have the meaning set forth in Section 12.

     (ss) “Records” means any Account Agreements, applications, change-of-terms
notices, credit files, credit bureau reports, transaction data, records, or other documentation
(including computer tapes, magnetic files, and information in any other format).

     (tt) “Regulatory Authority” means any federal, state or local regulatory
agency or other governmental agency or authority having jurisdiction over a Party and, in the case
of Bank, shall include, but not be limited to, the Utah Department of Financial Institutions and
the FDIC.

     (uu) “Required Balance” shall have the meaning set forth in subsection 34(a)
hereof.

     (vv) “Restricted Party” shall have the meaning set forth in subsection 10(a)
hereof. (ww) “Security Agreement” shall have the meaning set forth in Section 12.

     (xx) “Settlement Amount” has the meaning assigned to such term in
Schedule 1 of the Revolving Loan Product Program Agreement.

     (yy) “Term” means the Initial Term and any Renewal Term, subject to the
earlier termination hereof in accordance with the provisions hereof.exv10w29

Exhibit 10.29

WEBBANK

and

BLUESTEM BRANDS, INC.

(dba “FINGERHUT”)

BACK-UP ORIGINATOR

REVOLVING LOAN PRODUCT PROGRAM AGREEMENT

Dated as of January 19, 2011

Confidential Treatment Requested

[*] Indicates confidential portions omitted pursuant to a request for confidential treatment filed separately with the Securities and Exchange Commission

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	1. DEFINITIONS
	 	 	2	 
	2. BACK-UP ORIGINATOR
	 	 	2	 
	3. MARKETING OF ACCOUNTS; OFFERING DEBT WAIVER PRODUCT
	 	 	4	 
	4. BANK TO EXTEND CREDIT; ORIGINATION FEES; MINIMUM
ORIGINATION FEES
	 	 	5	 
	5. CONSUMER DOCUMENTS AND FINGERHUT CREDIT POLICY
	 	 	6	 
	6. ACCOUNT REFERRAL, PROCESSING AND ORIGINATION
	 	 	7	 
	7. SERVICING OF ACCOUNTS AND EXISTING ACCOUNTS
	 	 	8	 
	8. SETTLEMENT WITH COMPANY
	 	 	8	 
	9. CUSTOMER DISPUTES AND REFUNDS
	 	 	9	 
	10. REPRESENTATIONS AND WARRANTIES
	 	 	9	 
	11. OTHER RELATIONSHIPS WITH BORROWERS
	 	 	12	 
	12. INDEMNIFICATION
	 	 	13	 
	13. TERM AND TERMINATION
	 	 	15	 
	14. CONFIDENTIALITY
	 	 	18	 
	15. PROPRIETARY MATERIAL
	 	 	19	 
	16. RELATIONSHIP OF PARTIES
	 	 	20	 
	17. EXPENSES
	 	 	20	 
	18. EXAMINATION
	 	 	21	 
	19. INSPECTION; REPORTS
	 	 	21	 
	20. GOVERNING LAW; WAIVER OF JURY TRIAL
	 	 	21	 
	21. SEVERABILITY
	 	 	22	 
	22. ASSIGNMENT
	 	 	22	 
	23. THIRD PARTY BENEFICIARIES
	 	 	23	 
	24. NOTICES
	 	 	23	 
	25. AMENDMENT AND WAIVER
	 	 	24	 
	26. ENTIRE AGREEMENT
	 	 	24	 
	27. COUNTERPARTS
	 	 	24	 
	28. INTERPRETATION
	 	 	24	 
	29. AGREEMENT SUBJECT TO APPLICABLE LAWS
	 	 	24	 
	30. FORCE MAJEURE
	 	 	25	 
	31. JURISDICTION; VENUE
	 	 	25	 
	32. INSURANCE
	 	 	25	 

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	 	 	Page	 
	33. COMPLIANCE WITH APPLICABLE LAWS; PROGRAM COMPLIANCE MANUAL
	 	 	26	 
	34. INFORMATION SECURITY; CONSUMER COMPLIANCE
	 	 	27	 
	35. INTENTIONALLY OMITTED
	 	 	28	 
	36. PROIDBITION ON TIE-IN FEES
	 	 	28	 
	37. NOTICE OF CONSUMER COMPLAINTS
	 	 	28	 
	38. HEADINGS
	 	 	28	 
	39. EXCLUSIVITY
	 	 	28	 
	40. SUBCONTRACTORS
	 	 	28	 
	41. DATA SECURITY AND DISASTER RECOVERY
	 	 	29	 
	42. PRIVACY LAW COMPLIANCE
	 	 	29	 
	43. MANNER OF PAYMENTS
	 	 	30	 
	44. REFERRALS
	 	 	30	 
	45. FINANCIAL INFORMATION TO BE PROVIDED
	 	 	30	 

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SCHEDULES AND EXHIBITS

	 	 	 

	SCHEDULE 1
	 	Definitions and Construction
	 	 	 
	EXHIBIT A
	 	The Fingerhut Program
	 	 	 
	EXHIBIT B
	 	Fingerhut Credit Policy
	 	 	 
	EXHIBIT C
	 	Form of Application
	 	 	 
	EXHIBIT D
	 	Account Documentation
	 	 	 
	EXHIBIT E
	 	Customer Identification Program
	 	 	 
	EXHIBIT F
	 	Sample Daily Funding Statement
	 	 	 
	EXHIBIT G
	 	Settlement Account Information
	 	 	 
	EXHIBIT H
	 	Insurance Summary
	 	 	 
	EXHIBIT I
	 	Fingerhut Program Compliance Manual
	 	 	 
	EXHIBIT J
	 	Third Party Service Contractors
	 	 	 
	EXHIBIT K
	 	Bank Secrecy Act Policy
	 	 	 
	EXHIBIT L
	 	Debt Waiver Product
	 	 	 
	EXHIBIT M
	 	Debt Waiver Product Terms and Conditions
	 	 	 
	EXHIBIT N
	 	Services Provided By Company
	 	 	 
	EXHIBIT O
	 	Service Level Standards

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          THIS BACK-UP ORIGINATOR REVOLVING LOAN PRODUCT PROGRAM AGREEMENT (“Agreement”), dated as
of January 19, 2011 (the “Effective Date”), is made by and between WEBBANK, a Utah-chartered
industrial bank having its principal location in Salt Lake City, Utah (“Bank”), and BLUESTEM
BRANDS, INC., a Delaware corporation, having its principal location in Eden Prairie, Minnesota
(“Company”).

RECITALS

          WHEREAS, Company is a direct marketing retailer of general merchandise and services
(“Merchandise”) directly to consumers primarily through catalog, email and internet shopping
channels and the Company markets and services, in English and Spanish, an open-end consumer
financing program and a closed-end installment loan program for qualifying customers of its
Fingerhut Brand (collectively, the “Fingerhut Program”); and

          WHEREAS, Bank is in the business of originating various types of consumer loans,
including closed-end installment loan and open-end revolving loan accounts to qualifying Company
customers; and

          WHEREAS, Bank and Company are parties to that certain Amended and Restated
Revolving Loan Product Program Agreement dated as of August 20, 2010 and that certain Amended and
Restated Receivables Sale Agreement dated as of August 20, 2010 which together define an open-end
consumer financing program for qualifying customers of Company’s Gettington.com brand (the
“Gettington Program”); and,

          WHEREAS, Company and a financial institution other than the Bank (the “Existing
Bank”) are parties to agreements pursuant to which the Existing Bank currently originates consumer
credit in connection with the Fingerhut Program and sells to the Company all receivables generated
by the Fingerhut Program (the “Fingerhut Receivables”) and the Company purchases and services all
Fingerhut Receivables; and

          WHEREAS, Company desires that Bank: (1) serve as back-up originator to the
Existing Bank, not originating any loans or credit in such capacity but standing ready, willing and
able to act as the originator under the Fingerhut Program upon notice (the “Activation Notice”)
from Company (in such capacity, the Bank may be referred to as the “Back-Up Originator”); (2) serve
as the originator under the Fingerhut Program in the event that Company provides the Activation
Notice to the Bank; and (3) on or after the effective date set forth in the Activation Notice, if
requested by the Company, acquire those accounts originated by the Existing Bank in connection with
the Fingerhut Program prior to the effective date set forth in the Activation Notice (the “Existing
Accounts”); and

          WHEREAS, Bank desires: (1) to serve as Back-Up Originator to the Existing Bank in
connection with the Fingerhut Program; (2) to serve as an originator under the Fingerhut Program in
the event that Company provides the Activation Notice to the Bank; and (3) on or after the
effective date set forth in the Activation Notice, if requested by the Company, to acquire the
Existing Accounts, subject to and in accordance with the terms and conditions set forth in this
Agreement; and

          WHEREAS, Bank and Company are parties to that certain Back-Up
Originator

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1

 

Receivables Sales Agreement, dated of even date herewith (the “Back-Up Originator RSA”)
pursuant to which the Company will purchase the Fingerhut Receivables originated hereunder.

AGREEMENT

          NOW, THEREFORE, in consideration of the foregoing Recitals and the terms, conditions,
representations and warranties, and mutual covenants and agreements herein contained, and for good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Bank and
Company mutually agree as follows:

	1.	 	Definitions. The terms used in this Agreement shall be defined as set forth in Schedule
1 and this Agreement shall be construed in accordance with the rules of construction set
forth in Schedule 1.

	2.	 	Back-Up Originator.

	 	(a)	 	Prior to the Program Start Date, the Bank shall serve as the Back-Up Originator for the
Fingerhut Program. The Bank, in its capacity as Back-Up Originator, and the Company shall each:
(i) appoint designated representatives to coordinate the relationship under the Fingerhut
Program and ensure that such representatives maintain periodic communications with the other
party’s designated representatives; and (ii) maintain all internal systems, documentation and
procedures which would be necessary in the event the Bank were to replace the Existing Bank and
become the originator for the Fingerhut Program pursuant to the terms and conditions of this
Agreement.

	 	(b)	 	Commencing on the Effective Date and continuing until the Program Start Date, the Company
will pay the Bank a monthly service fee of [ * ] (the “Monthly Back-Up Originator Fee”). The Monthly Back-Up Originator
Fee will be payable within five (5) Business Days after the end of each calendar month. The
Company shall pay a pro-rated portion of the Monthly Back-Up Originator Fee for each
partial calendar month, if any, within five (5) Business Days after the end of any such
partial calendar month.

	 	(c)	 	At any time during the term of this Agreement, Company may designate the Program Start Date
by providing the Activation Notice to the Bank, which the Company shall provide and the Bank
shall receive not less than five (5) Business Days’ prior to the effective Program Start Date;
provided, however, that the Company shall use its reasonable efforts to provide thirty (30)
days’ prior written notice (or, if thirty (30) days’ notice is not reasonably practicable, such
period of notice in excess of five (5) days that may be reasonable under the circumstances) of
the effective Program Start Date.

	 	(d)	 	On or after the Program Start Date, and subject to the terms and conditions of this
Agreement, the Company may cause the Existing Bank to transfer, assign, and convey the
Existing Accounts to the Bank upon such terms and conditions as are mutually agreeable
between the Existing Bank, the Bank, and the Company and the Company shall pay any and all
costs and expenses in connection with and in any way related to the transfer, assignment,
and conveyance of the Existing Accounts from the Existing Bank to the Bank, including,
without limitation, all of Bank’s reasonable out of pocket costs and expenses,

Bluestem Brands, Inc. — WebBank - Back-Up Originator Revolving Loan Product Program Agreement — Final

	[*]	 	Indicates confidential portions omitted pursuant to a request for
confidential treatment filed separately with the Securities and
Exchange Commission

2

 

	 	 	 	but excluding any corporate allocations, administrative fees, and mark-ups imposed by the
Bank. Company, on Bank’s behalf, and at Company’s sole expense, shall issue new borrower terms
and conditions and re-issue cards, if applicable, in accordance with the Consumer Finance
Materials, to holders of those Existing Accounts that have been transferred, assigned, and
conveyed from the Existing Bank to the Bank.

	 	(e)	 	Commencing on the Effective Date and continuing until the Program Start Date, the Company
agrees to provide Bank with prior written notice of any proposed amendments, modifications, or
other changes related to the Fingerhut Program with the Existing Bank as originator to the extent
that any such amendments, modifications, or other changes: (i) do not comply in all respects with
the terms and conditions in this Agreement; and/or (ii) would require notification to the Bank if
such amendments, modifications, or other changes were proposed by Company to Bank after the
Program Start Date with respect to the Fingerhut Program with Bank as the originator, including
without limitation any amendments, modifications, or other changes to any of the terms of Exhibits
B, C or D hereto. Upon issuance of an Activation Notice to the Bank, Company shall provide to
Bank copies of all then current documents, forms, and other materials related to the
Fingerhut Program including, without limitation, the Consumer Finance Materials, for review
during the ninety (90) day period following Company’s delivery of the Activation Notice (the
“Review Period”). Company shall incorporate any changes to the Fingerhut Program and the
related documents, forms, and materials including, without limitation, the Consumer Finance
Materials, which may be required by Bank within five (5) days notice thereof. Notwithstanding
the foregoing sentence, but subject to the other terms and conditions of this Agreement, with
respect to documents, forms and other materials related to the Fingerhut Program that Company
has actually printed prior to the Company’s issuance of an Activation Notice, such as Company’s
so-called “Welcome Kits” and catalogs, Company shall incorporate any changes required by Bank
as soon as possible, but in no event later than ninety (90) days from notice thereof. During
the Review Period, but subject to the other terms and conditions set forth in this Agreement,
Company may continue to use the Fingerhut Program materials in place as of the date the Company
delivers the Activation Notice to Bank. Notwithstanding the foregoing or anything to the
contrary herein, within fourteen (14) days of Bank’s receipt of Company’s notice of any
proposed amendments, modifications, or other changes related to the Fingerhut Program with the
Existing Bank, Bank shall have the right to provide notice to Company of any objection to any
such proposed amendments, modifications, or other changes related to the Fingerhut Program with
the Existing Bank. In the event that Company implements any proposed amendments, modifications,
or other changes related to the Fingerhut Program with the Existing Bank to which Bank has
provided an objection notice, Bank shall have the option, in its sole and absolute discretion,
to: (i) refuse to accept the transfer of any Existing Account after Company implements any
proposed amendments, modifications, or other changes related to the Fingerhut Program with the
Existing Bank to which Bank has provided an objection notice, except to the extent that
Applicable Law permits the Company and/or Bank to provide a valid and enforceable change in
terms notice to fully address and remove Bank’s objection to any such amendments,
modifications, or other changes; and (ii) refuse to serve as originator under the Fingerhut
Program until such time as Company has revised the Fingerhut Program to remove any amendments,
modifications, or other changes that Company implemented over Bank’s objection.

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3

 

	 	(f)	 	The Bank and Company agree that the Bank’s obligation to serve as the
originator under the Fingerhut Program and to accept the transfer, assignment, or conveyance of
the Existing Accounts as provided in this Agreement will not take effect, and will not become
valid and operative, if: (i) the Company’s representations and warranties in this Agreement are
not true, accurate, and complete as of the date that the Company delivers the Activation Notice
to the Bank and on the Program Start Date; (ii) the Company is in default of any of its
obligations to the Bank under the terms of this Agreement and/or any other agreements between
the Company and the Bank, including that certain Amended and Restated Revolving Loan Product
Program Agreement dated as of August 20, 2010 and that certain Amended and Restated Receivables
Sale Agreement dated as of August 20,2010; or (iii) the Company and the Bank have not agreed to
Consumer Finance Materials as provided in Section 5 herein or the Company has failed to comply
in any relevant respect with its obligations under Section 2(e).

	 	(g)	 	Notwithstanding anything to the contrary herein, the Parties’ respective rights and
obligations under Sections 3, 4, 6, 7, 8, 9, 11, 22, and 23 of this Agreement shall not be
effective until the Program Start Date.

	3.	 	Marketing of Accounts; Offering Debt Waiver Product.

	 	(a)	 	At its own cost, Company shall promote and market the Fingerhut Program and the Accounts
via mail, email, the Internet and any other form of media determined to be appropriate by
Company. Bank shall have the right to direct the Company not to promote or market the Fingerhut
Program through any media channels or vendors that Bank deems, in its reasonable discretion,
to be unsuitable or harmful to Bank’s reputation. Bank agrees that Company may refer to Bank
and the Fingerhut Program in promotional and marketing materials, including marketing scripts,
upon the condition that any references to Bank and/or the Fingerhut Program in any such
materials which relate to the extension of credit by Bank or Bank’s participation in the
Fingerhut Program must receive the prior written Approval of Bank. Company shall ensure that
all promotional and marketing materials and marketing strategies relating to the Fingerhut
Program, including without limitation the extension of credit by Bank, shall be accurate, not
misleading, and comply with Applicable Laws.

	 	(b)	 	Bank shall review any materials submitted by Company in accordance with Section 3(a) and
notify Company of its Approval or objection within five (5) Business Days after Bank’s receipt
of such materials. Further, subject to the foregoing sentence, the parties shall cooperate in
good faith to develop and document a process for the review of promotional and marketing
materials.

	 	(c)	 	At its own cost, Company, on behalf of Bank, shall offer and promote to Applicants and
Borrowers a debt waiver product with terms and features recommended by Company and approved by
Bank in its sole discretion, initially as described in Exhibit L attached hereto (“Debt
Waiver Product”), and as amended, modified, or otherwise changed from time to time, subject to
prior written Approval of Bank. Company shall administer the Debt Waiver Product in accordance
with the Debt Waiver Product Terms and Conditions described in Exhibit M attached
hereto, and as amended, modified, or otherwise changed

Bluestem Brands, Inc. — WebBank - Back-Up Originator Revolving Loan Product Program Agreement — Final

4

 

	 	 	 	from time to time by Bank. Company agrees that it will promptly cancel or suppress, as
applicable, any indebtedness of Borrower under an Account in accordance with the Debt Waiver
Product purchased by such Borrower.

	 	(d)	 	Bank shall pay Company an amount equal to the amounts actually collected from Borrowers for
the purchase of the Debt Waiver Product (“Premiums”), less the fees retained by Bank in the
following amounts: (i) [ * ] of Premiums collected during each Measuring Period;
(ii) [ * ] of Premiums collected during each Measuring Period between
[ * ] and [ * ]; and (iii) [ * ] of Premiums collected in
excess of [ * ] during each Measuring Period. In the event that Company collects any Premiums
on behalf of Bank, Company shall pay Bank the applicable fees for all such Premiums
collected during any calendar month not later than ten (10) days following the end of such
calendar month.

	4.	 	Bank to Extend Credit; Origination Fees; Minimum Origination Fees.

	 	(a)	 	Bank agrees to make Accounts available, in accordance with the Fingerhut Credit Policy, to
qualifying Applicants residing in any state in the United States, its territories, or the
District of Columbia. All Accounts shall be originated by Bank using the origination system of
Company or its designated service provider. Company acknowledges that approval of an Application
creates a creditor-borrower relationship between Bank and Borrower which involves, among other
things, the establishment of an account, the extension of credit, the disbursement of loan
proceeds, and the collection of loan payments by Bank. Nothing in this Agreement shall obligate
Bank to extend credit to an Applicant or make an advance on an Account or Existing Account if
Bank determines that doing so would be an unsafe or unsound banking practice; provided,
however, that in such an event, Bank shall notify Company of its determination.

	 	(b)	 	Subject to the provisions for Minimum Origination Fees in subsection (c) below, Company
shall pay to the Bank an origination fee (“Origination Fee”) for each Account Advance equal to:
(i) [ * ] for the first [ * ] of Fingerhut Receivables
originated by Bank in each Measuring Period; (ii) [ * ] over [ * ] of Fingerhut Receivables originated by Bank in each Measuring Period; and,
(iii) [ * ] over [ * ] of Fingerhut
Receivables originated by Bank in each Measuring Period, including during any Renewal
Term. Company shall pay the Origination Fee to Bank in accordance with the terms of
the Back-Up Originator RSA.

	 	(c)	 	Company shall pay Origination Fees in the minimum amounts (“Minimum Origination

Bluestem Brands, Inc. — WebBank - Back-Up Originator Revolving Loan Product Program Agreement — Final

	[*]	 	Indicates confidential portions omitted pursuant to a request for
confidential treatment filed separately with the Securities and
Exchange Commission

5

 

	 	 	 	Fees”) of [ * ] during each Measuring
Period. An amount equal one-twelfth (1/12) of the Minimum Origination Fees shall be paid to
the Bank on a monthly basis; provided, however, that such monthly amount paid by the Company
to the Bank shall be no less than [ * ]
(the “Minimum Monthly Payment”), with a pro-rated portion of the Minimum Monthly Payment
being paid to the Bank for a partial calendar month, if any, immediately following the
Program Start Date. To the extent the payment made in respect of Origination Fees paid
during any calendar month are less than the then applicable prorated Minimum Monthly
Payment, the Company shall pay such difference to Bank not later than five (5) Business Days
from the conclusion of each month and each subsequent month thereafter until such time as
the aggregate Origination Fees paid equal the then applicable Minimum Origination Fees.
Company shall make the payment in respect of Origination Fees above and beyond the Minimum
Monthly Payments once the aggregate of the Origination Fees exceed the sum of the Minimum
Monthly Payments at any time during each applicable twelve (12)-month period in accordance
with the terms of the Back-Up Originator RSA.

	5.	 	Consumer Documents and Fingerhut Credit Policy. The following documents, terms and
procedures (“Consumer Finance Materials”) will be used by the Company and, as applicable, the
Bank with respect to the Accounts and, as applicable, the Existing Accounts: (i) Fingerhut
Program description (financial terms of Accounts) as Exhibit A; (ii) Fingerhut Credit
Policy as Exhibit B; (iii) form of Application, including disclosures required by
Applicable Law, as Exhibit C; (iv) Account Documentation, including the forms of
Account Agreement, privacy policy and privacy notices and monthly Account statements- as
Exhibit D; Customer Identification Procedures as Exhibit E; (v) Sample Daily
Funding Statement as Exhibit F; Settlement Account Information as Exhibit
G; Insurance Requirements as Exhibit H; Fingerhut Program
Compliance Manual as Exhibit I; Third Party Service Contractors as Exhibit J;
Bank Secrecy Act Policy as Exhibit K; Debt Waiver Product as Exhibit
L; and Debt Waiver Product Terms and Conditions as Exhibit M.
Following the Program Start Date, with the exception of the Fingerhut Credit Policy,
Exhibit B, the Consumer Finance Materials shall not be changed without the prior
written consent of both Parties, which consent shall not be unreasonably withheld or delayed;
provided, however that Bank may require changes to the Consumer Finance Materials upon written
notice provided to Company, but without Company’s prior written consent, to the extent that
Bank is advised by legal counselor a Regulatory Authority that such change is required by
Applicable Laws or necessitated by safety and soundness concerns. In addition, Company will
notify Bank if any of the form communications to Applicants and Borrowers relating
specifically to the extension of credit, which forms the Company has provided, or will provide
to the Bank prior to the Program Start Date, are changed. Notwithstanding the foregoing,
following the Program Start Date, no change may be made to the Fingerhut Credit Policy,
Exhibit B, unless such change has been approved by the Bank’s Board of Directors, in
its sole discretion. The Parties acknowledge that each Account Agreement and all other
documents referring to the creditor for the Fingerhut Program shall identify the Bank as the
creditor for the Accounts at the time of Account origination, and that all checks or other
items in repayment of Account Advances shall be made payable to Bank or its assigns so long as
Bank owns such Account Advances. Company shall ensure that the Consumer Finance Materials
comply with Applicable Laws.

Bluestem Brands, Inc. — WebBank - Back-Up Originator Revolving Loan Product Program Agreement — Final

	[*]	 	Indicates confidential portions omitted pursuant to a request for
confidential treatment filed separately with the Securities and
Exchange Commission

6

 

	6.	 	Account Referral, Processing and Origination.

	 	(a)	 	In connection with Company’s Fingerhut Brand Merchandise, Company shall distribute, promote
and process Applications from Applicants for Accounts, on behalf of Bank (including retrieving
credit reports) to determine whether the Applicant meets the eligibility criteria set forth in
the Fingerhut Credit Policy. Company will only process Applications on behalf of Bank from
residents of the United States, its territories and the District of Columbia that have had
their identity verified and are not listed on the United States Department of the Treasury’s
Office of Foreign Assets Control (OFAC) list of Specially Designated Nationals and Blocked
Persons. Company shall promptly respond on behalf of Bank to all inquiries from Applicants
regarding the application process. All such Applications, except as set forth below on an
exception basis, shall be automatically adjudicated utilizing the Fingerhut Credit Policy.

	 	(b)	 	Upon Bank’s request, Company shall forward to Bank mutually agreed information, which
shall include at a minimum, the name, address, social security number and date of birth, of
each Applicant who meets the eligibility criteria set forth in the Fingerhut Credit Policy.
Company shall forward to Bank those Applications that require discretionary approval
action. Company shall have no discretion to override the Fingerhut Credit Policy with
respect to any Applications and Company must obtain Bank’s prior written consent to
establish any Account with respect to an Applicant that does not satisfy the eligibility
criteria set forth in the Fingerhut Credit Policy.

	 	(c)	 	Subject to the terms of this Agreement, Bank shall establish Accounts with respect to
Applicants who meet the eligibility criteria set forth in the Fingerhut Credit Policy.
Company, on behalf of the Bank, shall promote the Debt Waiver Product offered by the
Bank to each such qualifying Applicant. Except as otherwise provided in the Program
Documents, Bank shall maintain ownership of all Accounts established under the Fingerhut
Program and all Existing Accounts that have been transferred, assigned, and conveyed from
the Existing Bank to the Bank.

	 	(d)	 	Pursuant to procedures mutually agreed by the Parties, Company shall deliver adverse action
notices on behalf of Bank to Applicants who do not meet Fingerhut Credit Policy criteria or are
otherwise denied credit by Bank.

	 	(e)	 	On behalf of Bank, Company shall deliver Fingerhut Program privacy notices and Account
Agreements to Borrowers, and shall authorize or decline each Account Advance requested by a
Borrower in accordance with the Fingerhut Credit Policy. Pursuant to procedures mutually agreed
by the Parties, if the Company declines a Borrower’s Account Advance request on behalf of Bank
in accordance with the Fingerhut Credit Policy, Company shall deliver an adverse action notice
to the Borrower.

	 	(f)	 	Company shall hold and maintain, as custodian for Bank, all documents of Bank
pertaining to Accounts and, as applicable, Existing Accounts. At Bank’s request, Company shall
provide Bank with immediate access to the originals or copies of such documents in accordance
with Bank’s reasonable request.

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	 	(g)	 	Company shall perform the obligations described in Section 6 and 7 and the services set
forth in Exhibit N hereto, and deliver any customer communications to Applicants and
Borrowers as necessary to carry on the Fingerhut Program, all at Company’s own cost and in
accordance with Applicable Laws.

	7.	 	Servicing of Accounts and Existing Accounts. Company shall service the Accounts and,
as applicable, the Existing Accounts for as long as Bank owns the Accounts and Existing
Accounts. Such Account and Existing Account servicing shall include, without limitation,
Account and Existing Account transaction authorization, preparation and mailing of account
statements, undertaking collections, providing customer service (including responding to
credit limit adjustment requests in accordance with the Fingerhut Credit Policy), crediting
Accounts and Existing Accounts in respect of unauthorized charges, chargebacks, refunds and
adjustments, resolving customer disputes, and providing such other services as are ordinary
and customary in the servicing of closed-end installment loan and open-end revolving loan
accounts, including the services set forth on Exhibit N hereto. Company shall perform
Account and Existing Account servicing all at Company’s own cost and in accordance with the
Consumer Finance Materials, Fingerhut Program Compliance Manual, Applicable Laws, and with the
service level standard set forth on Exhibit O hereto. In connection with the
foregoing, subject to Company’s data security requirements, Bank shall be provided access to
the online system of Company or data processor, as applicable, for the purpose of reviewing
the Accounts, the Existing Accounts, and Fingerhut Receivables being serviced. In addition,
Bank may review (i) all forms of written communications with Borrowers, including Account and
Existing Account statements and collection letters, and customer service scripts and (ii) all
communications with regulatory agencies, better business bureaus, or like entities regarding
the Fingerhut Program and/or any Account and Existing Account servicing inquiries, in each
case, in connection with any examination, inspection, or other review permitted in this
Agreement.

	8.	 	Settlement with Company.

	 	(a)	 	Company will provide a Daily Funding Statement to Bank by e-mail or as otherwise mutually
agreed on each applicable Business Day no later than 11:00 a.m. Eastern Time, which statement
shall detail the Settlement Amount for all Accounts that are ready for settlement by Bank. The
Daily Funding Statement shall be substantially in the form of Exhibit F attached
hereto. No later than 4:00 p.m. Eastern Time on the same Business Day as Bank receives the
Daily Funding Statement, but subject to the provisions of the Program Documents, Bank shall
transfer in immediately available funds to the Company’s Settlement Account, as initially
identified on Exhibit G attached hereto, but which the Company may change from time to
time upon prior written notice to Bank, the Settlement Amount due to Company for the purchase
of Merchandise by Borrowers as set forth on the applicable Daily Funding Statement. Failure to
strictly adhere to the times referenced in this Section 8(a), shall not constitute a technical
breach of this Agreement, provided that performance occurs on the same Business Day.

	 	(b)	 	The obligation of Bank to disburse the Settlement Amount stated on a Daily Funding
Statement is, in each instance, subject to the satisfaction of the following conditions
precedent:

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	 	(1)	 	the representations and warranties of Company set forth in the Program Documents shall
be true, complete, and correct in all material respects; and,

	 	(2)	 	the obligations of Company set forth in the Program Documents to be performed prior to
the applicable settlement shall have been performed prior to each disbursement of the
proceeds of each such Account Advance by Bank.

	9.	 	Customer Disputes and Refunds.

	 	(a)	 	With respect to any Merchandise returns accepted by Company or customer refunds provided by
Company under its customer satisfaction policy or otherwise, for a purchase that was originally
financed via an Account or Existing Account, Company shall, to the extent of the outstanding
balance of the Fingerhut Receivable with respect to such Account or Existing Account, pay the
refund amount to the Person owning and holding such Fingerhut Receivable within three (3)
Business Days after the Merchandise return is accepted or the customer refund is made, as
applicable. Company shall ensure that any amounts paid as provided in the foregoing sentence are
credited by the Person to the applicable Account or Existing Account.

	 	(b)	 	Company shall ensure that all monetary adjustments and/or credits agreed upon by Company in
resolving any Customer dispute regarding Merchandise purchased via an Account or Existing
Account shall promptly be communicated to the Person owning and holding the Fingerhut
Receivable with respect to such Account or Existing Account at the time of the adjustment. The
procedures for applying such adjustments and/or credits to the Fingerhut Receivables shall be
mutually agreed upon by the Parties.

	10.	 	Representations and Warranties.

	 	(a)	 	Bank hereby represents, warrants or covenants, as applicable, to Company as of the
Effective Date that:

	 	(1)	 	Bank is an FDIC-insured Utah-chartered industrial bank, duly organized, validly
existing under the laws of the State of Utah and has full corporate power and authority to
execute, deliver, and perform its obligations under this Agreement; the execution, delivery
and performance of this Agreement have been duly authorized, and are not in conflict with
and do not violate the terms of the charter or bylaws of Bank and will not result in a
material breach of or constitute a default under, or require any consent under, any
indenture, loan, or material agreement to which Bank is a party unless such breach or
default is waived or consent is obtained;

	 	(2)	 	All approvals, authorizations, licenses, registrations, consents, and other actions by,
notices to, and filings with, any Person that may be required in connection with the
execution, delivery, and performance of this Agreement by Bank, have been obtained (other
than those required to be made to or received from Borrowers and Applicants);

	 	(3)	 	This Agreement constitutes a legal, valid, and binding obligation of Bank, enforceable
against Bank in accordance with its terms, except (i) as such enforceability may be limited
by applicable bankruptcy, insolvency, reorganization, moratorium,

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	 	 	 	receivership, conservatorship or other similar laws now or hereafter in effect,
including the rights and obligations of receivers and conservators under 12 U.S.C. §§ 1821
(d) and (e), which may affect the enforcement of creditors’ rights in general, and (ii)
as such enforceability may be limited by general principles of equity (whether considered
in a suit at law or in equity);

	 	(4)	 	There are no proceedings or investigations pending or, to the best knowledge of Bank,
threatened against Bank (i) asserting the invalidity of this Agreement, (ii) seeking to
prevent the consummation of any of the transactions contemplated by the Bank pursuant to this
Agreement, (iii) seeking any determination or ruling that, in the reasonable judgment of Bank,
would materially and adversely affect the performance by Bank of its obligations under this
Agreement, (iv) seeking any determination or ruling that would materially and adversely affect
the validity or enforceability of this Agreement or (v) that would have a materially adverse
financial effect on Bank or its operations if resolved adversely to it;

	 	(5)	 	Bank is not Insolvent;

	 	(6)	 	The execution, delivery and performance of this Agreement by Bank comply in all material
respects with Utah and federal banking laws specifically applicable to Bank’s operations;
provided that Bank makes no representation or warranty regarding compliance with Utah or
federal banking laws relating to consumer protection, consumer lending, loan collections,
anti-money-laundering or privacy;

	 	(7)	 	The Proprietary Materials Bank licenses to Company pursuant to Section 15, and their use as
contemplated by this Agreement, do not violate or infringe upon, or constitute an infringement
or misappropriation of, any U.S. patent, copyright or U.S. trademark, service mark, trade name
or trade secret of any person or entity and Bank has the right to grant the licenses set forth
in Sections 15(a) and 15(b) below; and

	 	(8)	 	Bank shall comply with Title V of the Gramm-Leach-Bliley Act and the implementing
regulations of the Federal Trade Commission, including but not limited to applicable limits on
the use, disclosure, storage, and safeguarding of Applicant and Borrower information, and shall
maintain reasonable disaster recovery protections; provided, however, that the Bank’s
representation in this subsection 10(a)(8) shall not apply to obligations of Company, which are
performed on behalf of the Bank.

	 	(b)	 	Company hereby represents and warrants to Bank as of the Effective Date and on each date that
Company provides a Daily Funding Statement to Bank that:

	 	(1)	 	Company is a corporation, duly organized and validly existing in good standing under the
laws of the State of Delaware, and has full power and authority to execute, deliver, and
perform its obligations under this Agreement; the execution, delivery, and performance of this
Agreement have been duly authorized, and are not in conflict with and do not violate the terms
of the articles or bylaws of Company and will not result in a material breach of or constitute
a default under or require any consent under any material indenture, loan, or Material
Agreement to which Company is a party, unless

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	 	 	 	such breach or defaults is waived or consent is obtained;

	 	(2)	 	All approvals, authorizations, consents, and other actions by, notices to, and filings with
any Person required to be obtained for the execution, delivery, and performance of this
Agreement by Company, have been obtained;

	 	(3)	 	This Agreement constitutes a legal, valid, and binding obligation of Company, enforceable
against Company in accordance with its terms, except (i) as such enforceability may be limited
by applicable bankruptcy, insolvency, reorganization, moratorium, or other similar laws now or
hereafter in effect, which may affect the enforcement of creditors’ rights in general, and
(ii) as such enforceability may be limited by general principles of equity (whether considered
in a suit at law or in equity);

	 	(4)	 	There are no proceedings or investigations pending or, to the best knowledge of Company,
threatened against Company (i) asserting the invalidity of this Agreement, (ii) seeking to
prevent the consummation of any of the transactions contemplated by the Company pursuant to
this Agreement, (iii) seeking any determination or ruling that, in the reasonable judgment of
Company, would materially and adversely affect the performance by Company of its obligations
under this Agreement, (iv) seeking any determination or ruling that would materially and
adversely affect the validity or enforceability of this Agreement, or (v) that would have a
materially adverse financial effect on Company or its operations if resolved adversely to it;

	 	(5)	 	Company is not Insolvent;

	 	(6)	 	The execution, delivery and performance of this Agreement by Company, including without
limitation, the Company’s obligations in Sections 3 and 6 herein, the servicing of Accounts,
the Consumer Finance Materials, the promotional and marketing materials, and marketing
strategies shall all comply in all material respects with Applicable Laws;

	 	(7)	 	The Proprietary Materials Company licenses to Bank pursuant to Section 15, and their use as
contemplated by this Agreement, do not violate or infringe upon, or constitute an infringement
or misappropriation of, any U.S. patent, copyright or U.S. trademark, service mark, trade name
or trade secret of any person or entity and Company has the right to grant the license set
forth in Section 15 (a) below; and

	 	(8)	 	Company shall comply with Title V of the Gramm-Leach-Bliley Act and the implementing
regulations of the Federal Trade Commission, including but not limited to applicable limits on
the use, disclosure, storage and safeguarding of Applicant and Borrower information, and shall
maintain reasonable disaster recovery protections.

	 	(c)	 	Company hereby represents and warrants to Bank as of each Settlement Date that:

	 	(1)	 	For each Account and Existing Account and each Account Advance: (i) to the best of
Company’s knowledge, none of the information in the related Application is false, incomplete,
and/or inaccurate; (ii) all required disclosures to Borrowers have been delivered in compliance
with Applicable Laws; (iii) the Account Agreement and all

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	 	 	 	other Account or Existing Account documents are genuine and legally binding and
enforceable, conform in all material respects to the requirements of the Fingerhut
Program and were prepared in conformity with the Fingerhut Program Compliance Manual and
all Applicable Laws; (iv) all necessary approvals required to be obtained by Company
have been obtained; (v) that the Company has taken no action that would prohibit the
sale of Fingerhut Receivables by Bank; and (vi) as between the Company, the Bank, and
any Third Party Beneficiaries, the Bank is the sole owner of the Fingerhut Receivables
prior to the sale of the Fingerhut Receivables to Company and Company has no interest or
claim in and to the Fingerhut Receivables prior to the sale of the Fingerhut Receivables
to Company;

	 	(2)	 	Each Borrower whose requested Account Advance is listed (in aggregate) on a Daily
Funding Statement is eligible for an Account and the requested Account Advance under the
Credit Policy; and each Borrower has completed an Application; and

	 	(3)	 	The information on each Daily Funding Statement is true, complete, and correct in all
material respects.

	 	(d)	 	The representations and warranties of Bank and Company contained in this Section 10 are made
continuously throughout the term of this Agreement. In the event that any investigation or
proceeding of the nature described in subsections 10(a)(4) and 10(b)(4) is instituted or
threatened against either Party, except to the extent prohibited by Applicable Law, such Party
shall promptly notify the other Party of the pending or threatened investigation or proceeding.

	11.	 	Other Relationships with Borrowers.

	 	(a)	 	Separate from the obligation to market Accounts offered by Bank, and subject to the
Fingerhut Program privacy policy (including Borrower’s exercise of any rights to opt out of
information sharing) and Applicable Laws, Company shall have the right, at its own expense, to
solicit Applicants and/or Borrowers with offerings of goods and services from Company and
parties other than Bank, provided, however, that in the event that Company uses Bank’s name
and/or Proprietary Materials in connection with such offerings, Company shall obtain Bank’s
prior Approval for such use, which may be withheld or conditioned in the Bank’s sole discretion.
Subject to Applicable Laws and its obligations under this Agreement, Company, at its own cost
also shall have the right to include inserts, on its own behalf or on behalf of third parties,
to billing statements on Accounts and Existing Accounts (whether in paper or electronic form)
and market through messages on such statements; provided, however, that Bank shall have priority
for space on the billing statements and in the envelope for matters required by Applicable Laws.

	 	(b)	 	Except as necessary to carry out its rights and responsibilities under this Agreement and
the Back-Up Originator RSA, Bank shall not use Applicant and/or Borrower information and shall
not provide or disclose any Applicant and/or Borrower information to any Person, except to the
extent required to do so under Applicable Law or legal process. Without limiting the generality
of the foregoing, except as otherwise provided in subsection (c) below, Bank shall not use the
Applicant and/or Borrower information to do any of the

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	 	 	 	following, either directly or indirectly, including through an arrangement with any
Person other than the Company: (1) solicit Applicants or Borrowers with product or service
offerings (including offerings by third parties); (2) insert any offerings in billing
statements to Borrowers, other than offerings approved by Company; or (3) use the names of
Applicants or Borrowers, or any other information relating to the Accounts or to the
Applicants in way related to this Agreement, other than as specifically authorized in this
Agreement.

	 	(c)	 	Notwithstanding the restrictions set forth in subsection 11 (b) hereof, (i) Bank may make
solicitations for goods and services to the public, which may include one or more Applicants or
Borrowers; provided that Bank does not (A) target such solicitations to specific Applicants
and/or Borrowers, (B) use or permit a third party to use any list of Applicants and/or Borrowers
in connection with such solicitations or (C) refer to or otherwise use the name of Company; and
(ii) Bank shall not be obligated to redact the names of Applicants and/or Borrowers from
marketing lists acquired from third parties (e.g., subscription lists) that Bank
uses for solicitations. Further, the Bank shall not be restricted from responding to unsolicited
requests or inquiries made by an Applicant and/or Borrower for any product or service offered by
the Bank or its Affiliates.

	 	(d)	 	The terms of this Section 11 shall survive the expiration or earlier termination of this
Agreement.

	12.	 	Indemnification.

	 	(a)	 	Company agrees to indemnify, defend and hold harmless Bank and its Affiliates, and the
officers, directors, employees, representatives, shareholders, agents and attorneys of such
entities (the “Bank Indemnified Parties”) from and against any and all claims, actions,
liability, judgments, damages, costs and expenses, including reasonable attorneys’ fees
(“Losses”) that may arise from: (i) Bank’s participation in the Fingerhut Program as
contemplated by the Program Documents, (including Losses arising from a violation of Applicable
Laws or a breach by Company or its agents, subcontractors, or representatives of any of
Company’s obligations or undertakings under the Program Documents and notwithstanding any
materiality qualifier made in connection with any of the Company’s representations and
warranties set forth herein), unless such Loss results from the gross negligence or willful
misconduct of Bank; (ii) the origination and/or servicing of the Existing Accounts; (iii) the
transfer, assignment, and conveyance of the Existing Accounts from the Existing Bank to the
Bank; and (iv) the agreements between the Existing Bank and the Company relating to the
origination and/or servicing of the Existing Accounts and/or the sale of receivables thereunder.

	 	(b)	 	The Bank Indemnified Parties are sometimes referred to herein as the “Indemnified Parties,”
and Company, as the indemnitor hereunder, is sometimes referred to herein as the “Indemnifying
Party.”

	 	(c)	 	Any Indemnified Party seeking indemnification hereunder shall immediately notify the
Indemnifying Party, in writing, of any notice of the assertion by any third party of any claim
or of the commencement by any third party of any legal or regulatory proceeding,

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	 	 	 	arbitration or action, or if the Indemnified Party determines the existence of any such
claim or the commencement by any third party of any such legal or regulatory proceeding,
arbitration or action, whether or not the same shall have been asserted or initiated, in any
case with respect to which the Indemnifying Party is or may be obligated to provide
indemnification (an “Indemnifiable Claim”), specifying in reasonable detail the nature of the
Loss, and, if known, the amount, or an estimate of the amount, of the Loss, provided that
failure to promptly give such notice shall only limit the liability of the Indemnifying Party
to the extent of the actual prejudice, if any, suffered by such Indemnifying Party as a result
of such failure. The Indemnified Party shall provide to the Indemnifying Party as promptly as
practicable thereafter information and documentation reasonably requested by such Indemnifying
Party to defend against the claim asserted.

	 	(d)	 	The Indemnifying Party shall have thirty (30) days after receipt of any notification of an
Indemnifiable Claim (a “Claim Notice”) to notify the Indemnified Party of the Indemnifying Party’s
election to assume the defense of the Indemnifiable Claim and, through counsel of its own
choosing, and at its own expense, to commence the settlement or defense thereof, and the
Indemnified Party shall cooperate with the Indemnifying Party in connection therewith if such
cooperation is so requested and the request is reasonable; provided that the Indemnifying Party
shall hold the Indemnified Party harmless from all its reasonable out-of-pocket expenses,
including reasonable attorneys’ fees, incurred in connection with the Indemnified Party’s
cooperation. If the Indemnifying Party assumes responsibility for the settlement or defense of any
such claim, (i) the Indemnifying Party shall permit the Indemnified Party to participate at the
Indemnifying Party’s expense in such settlement or defense through counsel chosen by the
Indemnified Party (subject to the consent of the Indemnifying Party, which consent shall not be
unreasonably withheld or delayed); provided that, in the event that both the Indemnifying Party
and the Indemnified Party are defendants in the proceeding and the Indemnified Party shall have
reasonably determined and notified the Indemnifying Party that representation of both parties by
the same counsel would be inappropriate due to actual or potential differing interests between
them, then the fees and expenses of one such counsel for all Indemnified Parties in the aggregate
shall be borne by the Indemnifying Party; and (ii) the Indemnifying Party shall not settle any
Indemnifiable Claim without the Indemnified Party’s consent, which consent shall not be
unreasonably withheld or delayed for any reason if the settlement involves only payment of money,
and which consent may be withheld for any reason if the settlement involves more than the payment
of money, including any admission by the Indemnified Party. So long as the Indemnifying Party is
reasonably contesting any such Indemnifiable Claim in good faith, the Indemnified Party shall not
pay or settle such claim without the Indemnifying Party’s consent, which consent shall not be
unreasonably withheld or delayed. Notwithstanding the foregoing, (i) where such Indemnifiable
Claim involves a Bank’s Regulatory Authority, Bank shall retain the right to control the
settlement or defense thereof whether Bank is an Indemnifying Party or an Indemnified Party, and
(ii) if Bank is the Indemnified Party, Bank shall be entitled to the Indemnifying Party’s
cooperation and indemnification, including out-of-pocket expenses, and reasonable attorney’s fees
incurred by Bank.

	 	(e)	 	If the Indemnifying Party does not notify the Indemnified Party within thirty (30) days after
receipt of the Claim Notice that it elects to undertake the defense of the Indemnifiable

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	 	 	 	Claim described therein, or if the Indemnifying Party fails to contest vigorously any
such Indemnifiable Claim, the Indemnified Party shall have the right, upon notice to the
Indemnifying Party, to contest, settle or compromise the Indemnifiable Claim in the exercise
of its reasonable discretion; provided that the Indemnified Party shall notify the
Indemnifying Party at least five (5) Business Days prior to any compromise or settlement of
any such Indemnifiable Claim. No action taken by the Indemnified Party pursuant to this
paragraph (e) shall deprive the Indemnified Party of its rights to indemnification pursuant
to this Section 12.

	 	(f)	 	The terms of this Section 12 shall survive the expiration or earlier termination of this
Agreement.

	13.	 	Term and Termination.

	 	(a)	 	This Agreement shall have an initial term commencing on the Effective Date and continuing
through August 20,2013 (the “Initial Term”) and shall renew automatically for successive
additional terms of twelve (12) months each (each a “Renewal Term”), unless either Party
provides notice of non-renewal to the other Party at least one hundred and eighty (180) days
prior to the end of the Initial Term or any Renewal Term or this Agreement is earlier terminated
in accordance with the provisions hereof.

	 	(b)	 	In addition to any other rights or remedies available to the Bank under this Agreement or by
law, Bank shall have the right to suspend payments of the Settlement Amounts due to Company (as
required under Section 8(a) of this Agreement) during the period commencing with the occurrence
of any monetary default, including but not limited to the failure to maintain the Required
Balance in the Collateral Account, and ending when such condition has been cured.
Notwithstanding such suspension right, Bank may terminate this Agreement upon written notice to
Company if Company defaults on its obligations: (i) to make a payment to Bank as provided in
Section 2 of the Back-Up Originator RSA and fails to remedy such default within one (1) Business
Day after notice thereof from Bank; or (ii) to deposit funds into the Collateral Account as
provided in Section 34 of the Back-Up Originator RSA and fails to remedy such default within one
(1) Business Day after notice thereof from Bank. Notwithstanding the foregoing cure provisions
in the preceding sentence, Company shall have no right to cure a default under (i) and/or (ii)
in the preceding sentence if Company has been in default on its obligation to make a payment to
Bank as provided in Schedule 2 of the Back-Up Originator RSA or to deposit funds into the
Collateral Account as provided in Section 34 of the Back-Up Originator RSA, in each case, more
than once in any three (3) month period. In the event of any termination herein, Company shall
immediately discontinue processing Accounts and Account Advances under the terms of the
Agreement.

	 	(c)	 	Bank shall have the right to terminate this Agreement immediately upon written notice to
Company if: (i) Bank’s continued participation in the Fingerhut Program would be in violation,
in Bank’s determination based upon an opinion of counsel, of any Applicable Law, or has been
otherwise prohibited pursuant to an order or other action, including any letter or directive of
any kind, by Bank’s Regulatory Authority; (ii) a Regulatory Authority with jurisdiction over
Bank has provided, formally or informally, concerns about the

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	 	 	 	Fingerhut Program and Bank determines, in its sole discretion, based upon an opinion of
counsel, that Bank rights and remedies under this Agreement are not sufficient to protect Bank
fully against the potential consequences of those concerns; (iii) a fine, penalty, or other
form of settlement payment has been assessed against Bank by a Regulatory Authority in
connection with the Fingerhut Program, including as a result of a consent order or stipulated
judgment; (iv) Company fails to obtain Bank’s Approval or consent on any matter for which
Bank’s Approval or consent is required under this Agreement, which for avoidance of doubt the
Parties hereto agree that any such failure shall be a material default under this Agreement; or
(v) Company fails to notify Bank of any matter for which Company is required to notify Bank
under this Agreement, which for avoidance of doubt the Parties hereto agree that any such
failure shall be a material default under this Agreement.

	 	(d)	 	In addition to the termination right set forth in Section 29 herein, a Party shall have a
right to terminate this Agreement immediately upon written notice to the other Party in any of the
following circumstances:

	 	(1)	 	any representation or warranty made by the other Party in this Agreement shall be
incorrect in any material respect and shall not have been corrected within thirty (30)
calendar days after written notice thereof has been given to such other Party;

	 	(2)	 	the other Party shall default in the performance of any material obligation or undertaking
under this Agreement and/or any other agreements between the Company and the Bank, including
that certain Amended and Restated Revolving Loan Product Program Agreement dated as of August
20, 2010 and that certain Amended and Restated Receivables Sale Agreement dated as of August
20, 2010 and such default shall continue for thirty (30) calendar days after written notice
thereof has been given to such other Party;

	 	(3)	 	the other Party shall commence a voluntary case or other proceeding seeking liquidation,
reorganization, or other relief with respect to itself or its debts under any bankruptcy,
insolvency, receivership, conservatorship or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator, conservator, custodian, or other
similar official of it or any substantial part of its property, or shall consent to any such
relief or to the appointment of a trustee, receiver, liquidator, conservator, custodian, or
other similar official or to any involuntary case or other proceeding commenced against it, or
shall make a general assignment for the benefit of creditors, or shall fail generally to pay
its debts as they become due, or shall take any corporate action to authorize any of the
foregoing;

	 	(4)	 	an involuntary case or other proceeding, whether pursuant to banking regulations or
otherwise, shall be commenced against the other Party seeking liquidation, reorganization, or
other relief with respect to it or its debts under any bankruptcy, insolvency, receivership,
conservatorship or other similar law now or hereafter in effect or seeking the appointment of
a trustee, receiver, liquidator, conservator, custodian, or other similar official of it or
any substantial part of its property; or an order for relief shall be entered against either
Party under the federal bankruptcy laws

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	 	 	 	as now or hereafter in effect that is not dismissed within thirty (30) days;
	 
	 	(5)	 	there is a materially adverse change in the financial condition of the other Party; or
	 
	 	(6)	 	either Party has terminated the Back-Up Originator RSA in accordance with the terms
thereof and any applicable notice period provided therein shall have expired.

	 	(e)	 	Upon termination of the Agreement by Company pursuant to Section 13(d), at the written
request of Company, and subject to Section 13(i) below, Bank shall continue to operate the
Fingerhut Program for up to one hundred and eighty (180) days following receipt of Company’s
written notice of termination, so long as both Parties continue to perform their respective
obligations under the Fingerhut Program during the period contemplated in this Section 13(e).
At the conclusion of such period, Bank shall assign to Company or a designee of Company upon
such terms and conditions as are reasonably agreeable to Bank all Accounts originated by Bank
pursuant to this Agreement and Existing Accounts that have been transferred, assigned, and
conveyed from the Existing Bank to the Bank, provided, however, that Company or its designee
shall also purchase all outstanding Fingerhut Receivables owned by Bank in connection with
Accounts originated under the Fingerhut Program and Existing Accounts that have been
transferred, assigned, and conveyed from the Existing Bank to the Bank. If at the conclusion
of such period the Company is not able to accept the assignment of the Accounts and Existing
Accounts and has not identified a designee to accept assignment of the Accounts and Existing
Accounts upon such terms and conditions as are reasonably agreeable to Bank, Bank may close
all Accounts and Existing Accounts. All costs associated with closing or transferring Accounts
and Existing Accounts shall be borne by Company.
	 
	 	(f)	 	Except as provided in Section 13(e), Bank shall not be obligated to approve Applications or
establish new Accounts or make any advance on any Account or Existing Account after
termination of this Agreement.
	 
	 	(g)	 	The termination of this Agreement either in part or in whole shall not discharge any Party
from any obligation incurred prior to such termination, provided that if this
Agreement is terminated for any of the events set forth in subsection 13(c), subsection
13(d)(3), or subsection 13(d)(4), Company shall not be required to pay any additional
Origination Fee. To secure the obligations of Bank to perform under the Program Documents,
Bank hereby grants to Company a security interest in all Accounts, Existing Accounts (as
applicable), and all Account Agreements. In the event Company validly terminates this
Agreement, after the expiration of any applicable notice and cure periods, Company may
exercise all rights and remedies under the Program Documents and under any Applicable Law;
provided however, that the security interest granted in this subsection 13(g) may be
enforced only in the event that Company validly terminates this Agreement for one or more of
the events set forth in subsection 13(d). No termination nor rejection or failure to assume
the executor’s obligations under this Agreement in the bankruptcy or receivership of either
Party shall be deemed to impair or affect the obligations pertaining to any executed
obligations, including, without limitation warranties by either Party pertaining to the
obligations that expressly survive termination of this Agreement.

      

			
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	 	(h)	 	Except as provided in Section 13(e), upon termination of this Agreement, Bank shall assign to
Company or a designee of Company upon such terms and conditions as are reasonably agreeable to
Bank all Accounts originated by Bank pursuant to this Agreement and Existing Accounts that
have been transferred, assigned, and conveyed from the Existing Bank to the Bank, provided,
however, that Company or its designee shall also purchase all outstanding Fingerhut
Receivables owned by Bank in connection with Accounts originated under the Fingerhut Program
and Existing Accounts that have been transferred, assigned, and conveyed from the Existing
Bank to the Bank. If at the conclusion of such period the Company is not able to accept the
assignment of the Accounts and Existing Accounts and has not identified a designee to accept
assignment of the Accounts and Existing Accounts upon such terms and conditions as are
reasonably agreeable to Bank, Bank may close all Accounts and Existing Accounts. All costs
associated with closing or transferring Accounts and Existing Accounts shall be borne by
Company.
	 
	 	(i)	 	Bank’s obligation to operate the Fingerhut Program, establish Accounts, accept Existing
Accounts, and make advances on any Accounts or Existing Accounts subsequent to a notice of
termination or termination of this Agreement shall in all cases be subject to Applicable Laws
and/or regulatory requirements. Further, immediately upon termination of this Agreement,
Company shall discontinue offering the Fingerhut Program as a purchase payment option for
Company’s Merchandise, including without limitation the removal of all references to the
Fingerhut Program from all of the Company’s websites.
	 
	 	(j)	 	The terms of this Section 13 shall survive the expiration or earlier termination of this
Agreement.

	14.	 	Confidentiality.

	 	(a)	 	Each Party agrees that Confidential Information of the other Party (the “Disclosing Party”)
shall be used by each other Party (the “Restricted Party”) solely in the performance of its
obligations and exercise of its rights pursuant to the Program Documents. Except as required
by Applicable Laws or legal process, the Restricted Party shall not disclose Confidential
Information of the Disclosing Party to third parties; provided, however, that the Restricted
Party may disclose Confidential Information of a Disclosing Party (i) to the Restricted
Party’s Affiliates, agents, representatives or subcontractors for the sole purpose of
fulfilling the Restricted Party’s obligations under this Agreement (as long as the Restricted
Party exercises commercially reasonable efforts to prohibit any further disclosure by its
Affiliates, agents, representatives or subcontractors), provided that in all events, the
Restricted Party shall be responsible for any breach of the confidentiality obligations
hereunder by any of its Affiliates, agents (other than Company as agent for Bank),
representatives or subcontractors, (ii) to the Restricted Party’s auditors, accountants and
other professional advisors, or to a Regulatory Authority, or (iii) to the Administrative
Agent, other lenders to the Company and the Company’s other financing sources, or (iv) to any
other third party as mutually agreed by the Parties.
	 
	 	(b)	 	A Party’s Confidential Information shall not include information that:

	 	(1)	 	is generally available to the public;

      

			
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	 	(2)	 	has become publicly known, without fault on the part of the Restricted Party, subsequent to
the Restricted Party acquiring the information;
	 
	 	(3)	 	was otherwise known by, or available to, the Restricted Party prior to April 28, 2008; or
	 
	 	(4)	 	becomes available to the Restricted Party on a non-confidential basis from a Person, other
than a Party to this Agreement, who is not known by the Restricted Party after reasonable
inquiry to be bound by a confidentiality agreement with the Disclosing Party or otherwise
prohibited from transmitting the information to the Restricted Party.

	 	(c)	 	Upon written request or upon the termination of this Agreement, each Restricted Party shall
return to the Disclosing Party all Confidential Information in its possession that is in
written form, including by way of example, but not limited to, reports, plans, and manuals;
provided, however, that a Restricted Party may maintain in its possession all such
Confidential Information of the Disclosing Party required to be maintained under Applicable
Laws relating to the retention of records for the period of time required thereunder.
	 
	 	(d)	 	In the event that a Restricted Party is requested or required (by oral questions,
interrogatories, requests for information or documents, subpoena, civil investigative demand
or similar process) to disclose any Confidential Information of the other Party, the
Restricted Party will provide the Disclosing Party with prompt notice of such request(s) so
that the Disclosing Party may seek an appropriate protective order or other appropriate remedy
and/or waive the Restricted Party’s compliance with the provisions of this Agreement. In the
event that the Disclosing Party does not seek such a protective order or other remedy, or such
protective order or other remedy is not obtained, or the Disclosing Party grants a waiver
hereunder, the Restricted Party may furnish that portion (and only that portion) of the
Confidential Information of the Disclosing Party which the Restricted Party is legally
compelled to disclose and will exercise such efforts to obtain reasonable assurance that
confidential treatment will be accorded any Confidential Information of the Disclosing Party
so furnished as the Restricted Party would exercise in assuring the confidentiality of any of
its own Confidential Information.
	 
	 	(e)	 	The terms of this Section 14 shall survive the expiration or earlier termination of this
Agreement.

	15.	 	Proprietary Material.

	 	(a)	 	Each Party (“Licensing Party”) hereby provides the other Party (“Licensee”) with a
non-exclusive, non-transferable, revocable limited license to use and reproduce the
Licensing Party’s name, logo, registered trademarks and service marks (“Proprietary
Material”) on the Applications, Account Agreements, marketing materials, and otherwise in
connection with the fulfillment of Licensee’s obligations under this Agreement; provided,
however, that (i) Licensee shall at all times comply with written instructions provided by
Licensing Party regarding the use of its Proprietary Material, and (ii) Licensee
acknowledges that, except as specifically provided in this Agreement, it will acquire no
interest in Licensing Party’s Proprietary Material, including without limitation, any and
all

      

			
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	 	 	 	goodwill arising from the Licensee’s use of the Licensing Party’s Proprietary Material, which
shall inure solely to the Licensing Party. Upon termination of this Agreement, Licensee will
cease using Licensing Party’s Proprietary Material.
	 
	 	(b)	 	No Licensee shall use the Licensing Party’s Proprietary Material for any purpose other than
as set forth in subsection (a) above whatsoever without the prior written consent, in each
instance, of the Licensing Party. Further, no Licensee shall at any time adopt or use, without
the Licensing Party’s prior written consent, any variation of Licensing Party’s Proprietary
Material, including translations, or any mark likely to be similar to or confusing with any of
the Licensing Party’s Proprietary Material. In the event that Licensing Party consents to any
variation of Licensing Party’s Proprietary Material, the Licensee hereby agrees that Licensing
Party shall own such new mark and shall, at its cost and expense, file and obtain in Licensing
Party’s name all United States and international trademark registrations.

	16.	 	Relationship of Parties. The Parties agree that in performing their responsibilities
pursuant to this Agreement, they are in the position of independent contractors. This
Agreement is not intended to create, nor does it create and shall not be construed to create,
a relationship of partner or joint venturer or any association for profit between Bank and
Company.
	 
	17.	 	Expenses.

	 	(a)	 	Except as set forth herein, each Party shall bear the costs and expenses of performing its
obligations under this Agreement.
	 
	 	(b)	 	Company shall bear all of its expenses in the originating and servicing of the Accounts and
those Existing Accounts that have been that have been transferred, assigned, and conveyed from
the Existing Bank to the Bank. Company shall also pay all costs of obtaining credit reports,
performing initial and ongoing credit and compliance screening, and delivering adverse action
notices.
	 
	 	(c)	 	Company shall pay all wire transfer and ACH costs for transfers by Bank under the Fingerhut
Program. Company shall reimburse Bank for all third party bank fees incurred by Bank in
connection with the performance of this Agreement.
	 
	 	(d)	 	Company shall reimburse Bank for Bank’s reasonable out of pocket expenses incurred in the
performance of on-site reviews of Company’s financial condition, operations, internal controls
and subcontracting arrangements in accordance with Section 19 hereunder; provided, however,
all such out of pocket expenses shall be invoiced by the Bank on a monthly basis and paid for
by Company at the Bank’s actual cost therefore, and shall not include any corporate
allocations, administrative fees, mark-ups imposed by the Bank, or other non-reimbursable
expenses of inspection to be borne by Bank specifically provided in Section 19 hereunder.
	 
	 	(e)	 	The Company shall pay such other costs and expenses as are set forth on the Term Sheet.
	 
	 	(f)	 	Each Party shall be responsible for payment of any federal, state, or local taxes or
assessments associated with the performance of its obligations under this Agreement and

      

			
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	 	 	 	for compliance with all filing, registration and other requirements with regard thereto.
	 
	 	(h)	 	Within ten (10) days after receipt of an invoice from Bank, Company shall reimburse Bank for
all of: (i) Bank’s reasonable out-of-pocket legal fees directly related to the Program,
including Bank’s attorneys’ fees and expenses in connection with the preparation, negotiation,
execution, and delivery of the Program Documents; (ii) any amendment, modification,
administration, collection and enforcement of the Program Documents; (iii) any modification of
the Consumer Finance Materials or other documents or disclosures related to the Program; (iv)
any dispute or litigation arising out of or related to the Program; and (v) all of Bank’s
reasonable out-of-pocket costs and expenses for any other third-party professional services
related to the Fingerhut Program, including the services of any third-party compliance
specialists in connection with Bank’s preparation of policies and procedures and Bank’s review
of the Fingerhut Program, including examinations, inspections, and audits made in accordance
with the terms of the Program Documents. Without limiting the generality of the foregoing, and
in addition to the foregoing rights, within ten (10) days after receipt of an invoice from
Bank, Company shall reimburse Bank for all of Bank’s reasonable out-of-pocket costs and
expenses related to Bank’s annual audit of the Fingerhut Program and the Company’s obligations
under or in any way connected with or related to the Program Documents, including without
limitation the Bank’s reasonable out-of-pocket costs and expenses for any third-party
professional services, attorneys fees, and/or third-party compliance specialists.

	18.	 	Examination. Each Party agrees to submit to any examination that may be required by a
Regulatory Authority having jurisdiction over the other Party, during regular business hours
and upon reasonable prior notice, and to otherwise provide reasonable cooperation to the other
Party in responding to such Regulatory Authorities’ inquiries and requests relating to the
Fingerhut Program.
	 
	19.	 	Inspection; Reports. Each Party, upon reasonable prior notice from the other Party,
agrees to submit to an inspection of its books, records, accounts, and facilities relevant to
the Fingerhut Program, from time to time, during regular business hours subject, in the case
of Bank, to the duty of confidentiality it owes to its customers and banking secrecy and
confidentiality requirements otherwise applicable under Applicable Laws. When possible, Bank
will avoid conducting any such inspections during Company’s Fourth Quarter. Except as
otherwise specifically provided herein, all expenses of inspection shall be borne by the Party
conducting the inspection. Notwithstanding the obligation of each Party to bear its own
expenses of inspection, in accordance with Section 17(d), Company shall reimburse Bank for
reasonable out of pocket expenses incurred by Bank in the performance of on-site reviews of
Company’s financial condition, operations, internal controls and subcontracting arrangements.
Company shall store all documentation and electronic data related to its performance under
this Agreement consistent with its existing document and data storage and retention practices
as of the date hereof and shall make such documentation and data available during any
inspection by Bank or its designee. From time to time upon Bank’s request, Company shall
report to Bank regarding the performance of its obligations, including the performance of its
Account and Existing Account servicing obligations according to the service level standards
(Exhibit O).
	 
	20.	 	Governing Law; Waiver of Jury Trial. This Agreement shall be interpreted and
construed in

      

			
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	 	 	accordance with the laws of the State of Utah, without giving effect to the rules, policies, or
principles thereof with respect to conflicts of laws. THE PARTIES HEREBY EXPRESSLY WAIVE ANY
RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF
ACTION ARISING HEREUNDER.
	 
	21.	 	Severability. Any provision of this Agreement which is deemed invalid, illegal or
unenforceable in any jurisdiction, shall, as to that jurisdiction, be ineffective to the
extent of such invalidity, illegality or unenforceability, without affecting in any way the
remaining portions hereof in such jurisdiction or rendering such provision or any other
provision of this Agreement invalid, illegal, or unenforceable in any other jurisdiction.
	 
	22.	 	Assignment. This Agreement and the rights and obligations created under it shall be
binding upon and inure solely to the benefit of the Parties and their respective successors,
and permitted assigns. Neither Party shall be entitled to assign or transfer any interest
under this Agreement without the prior written consent of the other Party, except that Bank
may assign this Agreement or any of its rights or obligations arising hereunder to the
surviving entity in a merger, sale, acquisition, or consolidation in which it participates. No
assignment under this Section 22 shall relieve Bank or Company of its obligations under this
Agreement. Company may use subcontractors in the performance of its obligations under this
Agreement; provided that Company shall be fully responsible for the acts and omissions of its
subcontractors, including the subcontractors’ compliance with the terms of the Agreement and
all Applicable Laws. Notwithstanding the prohibition on assignment in the second sentence of
this Section 22, Bank hereby acknowledges and consents to (i) the sale, transfer and
assignment by Company of all of its right, title and interest (but excluding all of Company’s
obligations, including, without limitation, Company’s obligations under Section 34 of the
Back-Up Originator RSA) in, to and under the Fingerhut Receivables, the Account Agreements and
the Program Documents, whether now existing or hereafter acquired (the “Assigned Interests”),
pursuant to the Receivables Purchase Agreement (“RPA”), dated as of August 20, 2010 between
Company and Fingerhut Receivables I, LLC (“Fingerhut Receivables LLC”), as the same may be
amended, supplemented or otherwise modified, or refinanced, restated or replaced (with the
same or different financing sources), from time to time in accordance with the terms thereof
upon the prior written notification to Bank, and (ii) in connection with Credit Agreement
(“Credit Agreement”) dated as of August 20, 2010 by and among Goldman Sachs Bank USA, as
administrative agent (in such capacity, and including any successor thereto, the
“Administrative Agent”), collateral agent (in such capacity, and including any successor
thereto, the “Collateral Agent”), joint lead arranger, joint bookrunner, syndication agent and
documentation agent and J.P. Morgan Securities Inc., as joint lead arranger and joint
bookrunner, as the same may be amended, supplemented or otherwise modified, or refinanced,
restated or replaced (with the same or different financing sources), from time to time in
accordance with the terms thereof the grant of a security interest by Fingerhut Receivables
LLC in all of its right, title and interest in the Assigned Interests to the Collateral Agent,
and the enforcement of such security interest by the Collateral Agent, in each case pursuant
to the Security Agreement (the “Security Agreement”) dated as of August 20, 2010 between
Collateral Agent and Fingerhut Receivables LLC, as the same may be amended, supplemented or
otherwise modified, or refinanced, restated or replaced (with the same or different financing
sources), from time to time in accordance with the terms thereof. Bank hereby further
acknowledges and consents to the exercise of the rights, title and interest in the Assigned

      

			
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	 	 	Interests directly by Fingerhut Receivables LLC to the extent permitted by the RPA, and by the
Collateral Agent to the extent permitted by the Security Agreement. Notwithstanding the
foregoing, in exercising such rights in the Assigned Interests permitted by the RPA and the
Security Agreement, neither Fingerhut Receivables LLC nor the Collateral Agent shall have any
greater right, title and interest than Company’s right, title and interest in the Assigned
Interests, and the Bank shall have any and all rights and defenses against Fingerhut Receivables
LLC and the Collateral Agent as it would have had against the Company.
	 
	23.	 	Third Party Beneficiaries. Nothing contained herein shall be construed as creating a
third-party beneficiary relationship between either Party and any other Person; provided,
however, (i) Fingerhut Receivables LLC, (ii) the Administrative Agent and (iii) the Collateral
Agent (collectively, the “Third Party Beneficiaries”) shall each be a third party beneficiary
of this Agreement.
	 
	24.	 	Notices. All notices and other  communications that are required or may be given in
connection with this Agreement shall be in writing and shall be deemed received (i) on the day
delivered, if delivered by hand; (ii) on the day transmitted, if transmitted by facsimile or
e-mail with receipt confirmed; or (iii) the following Business Day after the date of mailing
to the other Party, if mailed for next-day delivery and delivered by a reputable overnight
courier with package tracing capability, at the following address, or such other address as
either Party shall specify in a notice to the other:

	 	 	 	 	 

	 

	 	To Bank:
	 	WebBank
	 

	 	 	 	Attn: Senior Vice President — Strategic Partnerships
	 

	 	 	 	6440 S. Wasatch Blvd., Suite 300
	 

	 	 	 	Salt Lake City, UT 84121
	 

	 	 	 	Tel. 908-251-5798
	 

	 	 	 	Fax: 801-993-5015
	 

	 	 	 	Email: strategicpartnerships@WebBank.com
	 
	 	 	 	 
	 

	 	With a copy to:
	 	WebBank
	 

	 	 	 	Attn: Compliance Officer
	 

	 	 	 	6440 S. Wasatch Blvd., Suite 300
	 

	 	 	 	Salt Lake City, UT 84121
	 

	 	 	 	Tel. 801-993-5008
	 

	 	 	 	Fax: 801-993-5015
	 

	 	 	 	Email: complianceofficer@WebBank.com
	 
	 	 	 	 
	 

	 	To Company:
	 	Bluestem Brands, Inc.
	 

	 	 	 	Attn: SVP and Chief Credit Officer
	 

	 	 	 	6509 Flying Cloud Drive
	 

	 	 	 	Eden Prairie, MN 55344
	 

	 	 	 	Tel. (952) 656-3916
	 

	 	 	 	Fax (952) 656-4117

      

			
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	 	With copy(s) to:
	 	Bluestem Brands, Inc.
	 

	 	 	 	Attn: General Counsel
	 

	 	 	 	6509 Flying Cloud Drive
	 

	 	 	 	Eden Prairie, MN 55344
	 

	 	 	 	Tel. (952) 656-3916
	 

	 	 	 	Fax (952) 656-4117
	 
	 	 	 	 
	 

	 	 	 	Goldman Sachs Bank USA
	 

	 	 	 	Attn: Account Manager
	 

	 	 	 	6011 Connection Drive
	 

	 	 	 	Irving TX 75039
	 

	 	 	 	Telephone: (972) 368-5099
	 

	 	 	 	Facsimile: (972) 368-5000

	25.	 	Amendment and Waiver. This Agreement may be amended only by a written instrument
signed by each of the Parties. The failure of a Party to require the performance of any term
of this Agreement or the waiver by a Party of any default under this Agreement shall not
prevent a subsequent enforcement of such term and shall not be deemed a waiver of any
subsequent breach. All waivers must be in writing and signed by the Party against whom the
waiver is to be enforced.
	 
	26.	 	Entire Agreement. The Program Documents, including exhibits, constitute the entire
agreement between the Parties with respect to the subject matter thereof, and supersede any
prior or contemporaneous negotiations or oral or written agreements with regard to the same
subject matter.
	 
	27.	 	Counterparts. This Agreement may be executed and delivered by the Parties in any
number of counterparts, and by different parties on separate counterparts, each of which
counterpart shall be deemed to be an original and all of which counterparts, taken together,
shall constitute but one and the same instrument.
	 
	28.	 	Interpretation. The Parties acknowledge that each Party and its counsel have reviewed
and revised this Agreement and that the normal rule of construction to the effect that any
ambiguities are to be resolved against the drafting party shall not be employed in the
interpretation of this Agreement or any amendments thereto, and the same shall be construed
neither for nor against either Party, but shall be given a reasonable interpretation in
accordance with the plain meaning of its terms and the intent of the Parties.
	 
	29.	 	Agreement Subject to Applicable Laws. If(a) either Party has been advised by legal
counsel of a change in Applicable Laws or any judicial decision of a court having jurisdiction
over such Party or any interpretation of a Regulatory Authority that, in the view of such
legal counsel, would have a materially adverse effect on the rights or obligations of such
Party under this Agreement or the financial condition of such Party, (b) either Party shall
receive a request of any Regulatory Authority having jurisdiction over such Party, including
any letter or directive of any kind from any such Regulatory Authority, that prohibits or
restricts such Party from carrying out its obligations under this Agreement, or (c) either
Party has been advised by legal counsel that such Party’s or the other Party’s continued
performance under this Agreement would violate Applicable Laws then the Parties shall meet and
consider in good faith any modifications, changes or additions to the Fingerhut Program or the
Program Documents that

      

			
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	 	 	may be necessary to eliminate such result. Notwithstanding any other provision of the Program
Documents, including Section 13 hereof, if the Parties are unable to reach agreement regarding
such modifications, changes or additions to the Fingerhut Program or the Program Documents
within ten (10) Business Days after the Parties initially meet, either Party may terminate this
Agreement upon five (5) Business Days’ prior written notice to the other Party. A Party may
suspend performance of its obligations under this Agreement, or require the other Party to
suspend its performance of its obligations under this Agreement, upon providing the other Party
advance written notice, if any event described in subsections 29(a), (b) or (c) above occurs.
	 
	30.	 	Force Majeure. If any Party shall be unable to carry out the whole or any part of its
obligations under this Agreement by reason of a Force Majeure Event, then the performance of
the obligations under this Agreement of such Party as they are affected by such cause shall be
excused during the continuance of the inability so caused, except that should such inability
not be remedied within thirty (30) days after the date of such cause, the Party not so
affected may at any time after the expiration of such thirty (30)-day period, during the
continuance of such inability, terminate this Agreement on giving written notice to the other
Party and without payment of a termination fee or other penalty. To the extent that the Party
not affected by a Force Majeure Event is unable to carry out the whole or any part of its
obligations under this Agreement because a prerequisite obligation of the Party so affected
has not been performed, the Party not affected by a Force Majeure Event also is excused from
such performance during such period. A “Force Majeure Event” as used in this Agreement shall
mean an unanticipated event that is not reasonably within the control of the affected Party or
its subcontractors (including, but not limited to, acts of God, acts of governmental
authorities, strikes, war, riot and any other causes of such nature), and which by exercise of
reasonable due diligence, such affected Party or its subcontractors could not reasonably have
been expected to avoid, overcome or obtain, or cause to be obtained, a commercially reasonable
substitute therefore. No Party shall be relieved of its obligations hereunder if its failure
of performance is due to removable or remediable causes which such Party fails to remove or
remedy using commercially reasonable efforts within a reasonable time period. Either Party
rendered unable to fulfill any of its obligations under this Agreement by reason of a Force
Majeure Event shall give prompt notice of such fact to the other Party, followed by written
confirmation of notice, and shall exercise due diligence to remove such inability with all
reasonable dispatch. Notwithstanding the foregoing, Bank shall have the right to suspend
payments of the Settlement Amounts due to Company (as required under Section 8(a) of this
Agreement) during the period commencing with the occurrence of a
Force Majeure Event
resulting in Company’s monetary default, including its failure to maintain the Required
Balance in the Collateral Account, and ending when such Force Majeure Event has been cured.
	 
	31.	 	Jurisdiction; Venue. The Parties consent to the personal jurisdiction and venue of the
federal and state courts in Salt Lake City, Utah for any court action or proceeding. The terms
of this Section 31 shall survive the expiration or earlier termination of this Agreement.
	 
	32.	 	Insurance. Company agrees to maintain insurance coverages on the terms and conditions
specified in Exhibit H at all times during the term of this Agreement and to notify
Bank promptly of any cancellation or lapse of any such insurance coverage.

      

			
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	33.	 	Compliance with Applicable Laws; Fingerhut Program Compliance Manual. Company shall
comply with Applicable Laws, the Bank Secrecy Act Policy and the Fingerhut Program Compliance
Manual in its performance of this Agreement, including Application and Account solicitation,
Application processing and preparation of Account Agreements and other Account documents.
Except as required by Applicable Laws, Company may not amend or otherwise modify the Fingerhut
Program Compliance Manual without the prior written consent of Bank, which consent shall not
be unreasonably withheld or delayed. A copy of the Fingerhut Program Compliance Manual
provided to the Bank as of the date hereof is attached hereto as Exhibit I. Without
limiting the foregoing, Company shall:

	 	(a)	 	apply to all Applicants customer identification procedures that comply with Section 326 of
the USA PATRIOT Act of 2001 (“Patriot Act”) and the implementing regulations applicable to
Bank (31 C.F.R. § 103.121);
	 
	 	(b)	 	retain for five (5) years after an Account or Existing Account is purchased from Bank, and
deliver to Bank upon request: (i) the Applicant’s name, address, social security number, and
date of birth obtained pursuant to such customer identification procedures; (ii) a description
of the methods and the results of any measures undertaken to verify the identity of the
Applicant; and (iii) a description of the resolution of any substantive discrepancy discovered
when verifying the identifying information obtained;
	 
	 	(c)	 	screen all Applicants against the Office of Foreign Assets Control list of Specially
Designated Nationals and Blocked Persons, at the time an Applicant requests an Account from
Bank, reject any Applicant whose name appears on such list and immediately notify Bank
thereof, screen all Borrowers against the OFAC list of Specially Designated Nationals and
Blocked Persons on a monthly basis throughout the Term, immediately notify Bank if any
Borrower’s name appears on such list and work with Bank, the Office of Foreign Assets Control
or any other Regulatory Authority to take such actions as necessary;
	 
	 	(d)	 	monitor, identify and report to Bank any suspicious activity that meets the thresholds for
submitting a Suspicious Activity Report under the Bank Secrecy Act and the implementing
regulations applicable to Bank (31 C.F.R. § 103.18);
	 
	 	(e)	 	implement an anti-money laundering program to assist Bank in its compliance with Section 352
of the Patriot Act and the implementing regulations applicable to Bank (31
C.F.R. § 103.120);
	 
	 	(f)	 	in addition to the information retained pursuant to subsection (b) above, retain the account
number identifying a Borrower’s Account or Existing Account for at least one (1) year after
purchasing the Borrower’s Account or Existing Account from Bank;
	 
	 	(g)	 	upon receipt of a government information request forwarded by Bank to Company, (i) compare
the names, addresses, and social security numbers on such government list provided by Bank
with the names, addresses, and social security numbers of Borrowers for all Accounts or
Existing Account purchased from Bank within the prior twelve (12) months, and (ii) within one
(1) week of receipt of such an information request, deliver to

      

			
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	 	 	 	Bank a certification of completion of such a records search, which shall indicate whether
Company located a name, address, or social security number match and, if so, provide for any
such match: the name of the Borrower, the loan number identifying the Borrower’s Account or
Existing Account, and the Borrower’s social security number, date of birth, address, or other
similar identifying information provided by the Borrower, to assist Bank in its compliance with
Section 314(a) of the Patriot Act and the implementing regulations applicable to Bank (31 C.F.R.
§ 103.100);
	 
	 	(h)	 	provide to Bank electronic copies of the information retained pursuant to subsections (b) and
(f) above as mutually agreed to by the Parties, immediately upon request;
	 
	 	(i)	 	Upon Bank’s request, Company will provide to Bank a certification letter that it is complying
in all material respects with its obligations under this Section 33;
	 
	 	(j)	 	maintain policies and procedures to: (i) detect relevant red flags that may arise in the
performance of Company’s obligations; (ii) take appropriate steps to address such red flags
and to prevent and mitigate the effect of identity theft; (iii) report to Bank on such
policies and procedures on a regular basis; and (iv) otherwise assist Bank in complying with
the provisions of § 605A of the Fair Credit Reporting Act, 15 U.S.C. § 1681c-1, and applicable
implementing regulations;
	 
	 	(k)	 	maintain a compliance training program for Company employees or agents who perform functions
related to or in connection with the Fingerhut Program, which training program shall be in a
form and format that is subject to Bank’s Approval, and, upon Bank’s request, Company shall
furnish to Bank reports regarding such training program in such detail as required by Bank;
and,
	 
	 	(l)	 	engage and employ, at Company’s sole cost and expense, the Spanish language translation
subcontractors identified under Tier 1 of Exhibit J hereto to perform, on behalf of
the Company, any and all Spanish language translations in connection with or in any way
related to the Fingerhut Program, including without limitation the Consumer Finance Materials.

	34.	 	Information Security: Consumer Compliance. In connection with the servicing of the
Accounts and Existing Accounts, Company shall maintain an information security program that is
designed, after consulting with Bank, to: (i) ensure the security and confidentiality of
Applicant or Borrower information held on behalf of Bank; (ii) protect against any anticipated
threats or hazards to security or integrity of such information held on behalf of Bank; and
(iii) protect against unauthorized access to or use of such information held on behalf of Bank
that could result in substantial harm or inconvenience to any Applicant or Borrower. In
addition, Company shall designate one or more persons and/or committees for purposes of the
Fingerhut Program who shall oversee reviews of Company’s compliance with consumer laws and
regulations that may be applicable to the Fingerhut Program, including without limitation, the
Fair Credit Reporting Act, the Equal Credit Opportunity Act, the Fair Debt Collection Act, the
Truth-in-Lending Act and Regulation Z, the Fair and Accurate Credit Transactions (FACT) Act,
and issues related to prescreening. On an annual basis, Company shall provide to Bank in

      

			
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	 	 	writing a report of the results of such reviews and significant issues to be addressed (if any),
as well as Company’s resolutions of such issues (if applicable). Company shall designate one
individual, who Company shall make available to Bank, to respond to any matters regarding
compliance with consumer laws and regulations. At least once annually Company shall have a
reputable third party auditor conduct an industry standard information technology audit, which
shall include review of Company’s information security program. Upon request by Bank, Company
shall promptly provide a copy of the audit report.
	 
	35.	 	Intentionally Omitted.
	 
	36.	 	Prohibition on Tie-In Fees. Company shall not directly or indirectly impose or
collect any fees, charges or remuneration relating to the distribution, processing or approval
of an Application and/or Account or Existing Account, unless such fee, charge or remuneration
is set forth in the Consumer Finance Materials or approved by Bank.
	 
	37.	 	Notice of Consumer Complaints. Each Party shall notify the other Party if it receives
any consumer complaint or it becomes aware of any investigations or proceedings by any
governmental authority and/or better business bureau relating to any aspect of the Fingerhut
Program within five (5) days of receipt of such complaint or upon becoming aware of such
investigation or proceeding, and each Party shall provide the other Party with all related
documentation thereof, subject to any legal prohibitions on disclosure of such investigation
or proceeding. Company shall respond to such consumer complaints within ten (10) days or such
other time periods reasonably established by Bank. In addition, Company shall cooperate in
good faith and provide such assistance, at Bank’s request, to permit Bank to promptly resolve
or address any investigation or proceeding by any governmental authority or other Person with
respect to the Fingerhut Program.
	 
	38.	 	Headings. Captions and headings in this Agreement are for convenience only, and are
not to be deemed part of this Agreement.
	 
	39.	 	Exclusivity. Commencing on the Program Start Date and continuing through the
remaining term of this Agreement, Company shall exclusively retain Bank with respect to
Applications, Accounts, Existing Accounts (as applicable), and Debt Waiver Products solicited,
opened, issued, and serviced in connection with the Fingerhut Brand, except in the case that:
(a) Bank declines to originate a new product/program offered by Company; (b) if Company offers
a credit product that does not require an originating bank partner; or (c) Company offers a
VISA/MasterCard or similar product to its customers; provided, however, that nothing herein
shall prevent Company from engaging a back-up account originator. Notwithstanding the
foregoing sentence, Company will remain subject to and obligated to pay the Minimum
Origination Fees set forth in Section 4 hereof throughout the term of this Agreement.
	 
	40.	 	Subcontractors. Company may use subcontractors in the performance of its obligations
under the terms of this Agreement. Any Tier 1 subcontractor listed on Exhibit J hereto
and performing Company’s obligations under this Agreement is subject to the Bank’s prior
written consent, unless such subcontractor provides similar services for Company as of the
Effective Date and/or is an affiliate of Company. Company may also use those subcontractors in
the performance of its obligations under this Agreement, which are listed as Tier 2
subcontractors

      

			
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	 	 	on Exhibit J hereto, and may add or change such subcontractors subject to prior notification to
Bank of any such additions or changes. Further, in addition to any other rights or remedies
available to Bank under this Agreement or by law, Bank may notify Company of any unacceptable
service level issues with respect to any Tier 2 subcontractors, and Company shall promptly
correct any such issues or discontinue using the subject subcontractor. Notwithstanding the
foregoing, Company agrees to be fully responsible for the acts and omissions of all
subcontractors, including the subcontractors’ compliance with the terms of this Agreement and
all applicable laws. Company shall make commercially reasonable efforts to include provisions in
any new agreement with Tier 1 or Tier 2 subcontractor requiring the Tier 1 or Tier 2
subcontractor to allow Bank and any Regulatory Authority having jurisdiction over Bank to audit,
inspect and review their facilities, personnel, files and records insofar as they relate to the
Accounts or the Fingerhut Program. With respect to existing Tier 1 and Tier 2 subcontractors,
Company shall use commercially reasonable efforts to procure such audit and inspection rights in
the event required by Bank or its Regulatory Authority, and Company shall take those measures
reasonably required to honor the requirement of any such audit, inspection or review. Any audit,
inspection or review provided hereunder shall be on terms reasonably acceptable to the
applicable subcontractor, including advance notice, respecting the operating hours and
confidentiality and such other reasonable terms established by the subcontractor.
	 
	41.	 	Data Security and Disaster Recovery.

	 	(a)	 	Company shall maintain a data security and disaster recovery program and policies designed to
ensure Company’s compliance with all Applicable Laws, which shall be reviewed and tested
internally by Company and a third party mutually agreeable to Bank and Company. Company shall
test its data security and disaster recovery program at least once annually. Bank shall have
the right to review, upon request, a current copy of Company’s data security and disaster
recovery program and the results of Company’s tests of such program. Company shall promptly
notify Bank of any material changes to its data security and disaster recovery program.

	 	(b)	 	Company shall maintain a notification process as required under Applicable Laws in respect of
breaches in data security or unauthorized access to systems related to the Fingerhut Program
and shall provide Bank with notice upon the occurrence of any actual, suspected or threatened
breach of such systems. In any such event the Parties agree that they will fully cooperate
with each other in investigating any such breach or unauthorized access. With respect to any
actual, suspected or threatened breach in data security or unauthorized access to systems,
Company agrees to take action promptly, at its own expense, to investigate the breach, to
identify, mitigate and remediate the effects of the breach and to implement any other
reasonable and appropriate measures in response to the breach, in each case, as required by
Applicable Laws. Company will also provide Bank with additional information regarding such
breach as necessary to assist Bank in implementing its own information security responses
program and, if applicable, in notifying affected Borrowers. The specifics of any such
notification by Company shall be mutually agreed by the Parties.

	42.	 	Privacy Law Compliance. Subject to Applicable Laws, Bank and Company shall comply
with

      

			
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	 	 	the privacy policy agreed upon by both Parties with respect to Applicants and Borrowers.
	 
	43.	 	Manner of Payments. Unless the manner of payment is expressly provided herein, all
payments under this Agreement shall be made by either ACH or wire transfer to the bank
accounts designated by the respective Parties. Notwithstanding anything to the contrary
contained herein, neither Party shall fail to make any payment required of it under this
Agreement as a result of a breach or alleged breach by the other Party of any of its
obligations under this Agreement or any other agreement, provided that the making of any
payment hereunder shall not constitute a waiver by the Party making the payment of any rights
it may have under the Program Documents or by law.
	 
	44.	 	Referrals. Neither Party has agreed to pay any fee or commission to any agent,
broker, finder, or other person for or on account of such person’s services rendered in
connection with this Agreement that would give rise to any valid claim against the other Party
for any commission, finder’s fee or like payment.
	 
	45.	 	Financial Information to be Provided. During the term of this Agreement, Company
agrees to provide Bank with unaudited quarterly financial statements, which shall include, at
a minimum, a balance sheet, income statement, and cash flow statement, in such detail
reasonably acceptable to Bank and certified by the Company’s Treasurer, and audited annual
financial statements, which shall include, at a minimum, a balance sheet, income statement,
and cash flow statement, in such detail reasonably acceptable to Bank and prepared by an
independent certified public accountant in accordance with generally accepted accounting
principles, which shall be provided to Bank no later than the Company provides such financial
statements to its lenders. During the term of this Agreement, Company agrees to provide to
Bank notice of any material change to or Company’s default under the RPA, or material change
to or Fingerhut Receivables LLC’s default under the Credit Agreement.

[SIGNATURE PAGE FOLLOWS]

      

			
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     IN WITNESS WHEREOF, the Parties have entered into this Agreement on the date set forth above.

	 	 	 	 	 	 
	 	 	 	 	 	 
	WEBBANK

	 	BLUESTEM BRANDS, INC.	 
	 
	 	 	 	 	 
	By:

	 /s/ Kelly M. Barnett    	 	By:	  /s/ Mark P. Wagener	 
	 	 

	 	 	 	 
	 	Name: Kelly M. Barnett

	 	 	Name: Mark P. Wagener	 
	 	Title: Acting President

	 	 	Title: Executive Vice President	 

      

			
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Schedule 1

Definitions and Construction

I.
Definitions. All capitalized terms used in this Agreement and not otherwise defined in this
Agreement or this Schedule 1 shall have the meanings ascribed to those terms in the Back-Up
Originator RSA.

	 	 	 

	(a)

	 	“ACH” means the Automated Clearinghouse.
	 
	 	 
	(b)

	 	“Account” means each Closed-End Loan Account or open-end revolving consumer credit
account established by Bank pursuant to an Account Agreement for the purpose of
financing a Borrower’s purchase of Merchandise from the Company.
	 
	 	 
	(c)

	 	“Account Advance” means an advance by the Bank to a Borrower from an Account or
Existing Account pursuant to the Fingerhut Program.
	 
	 	 
	(d)

	 	“Account Agreement” means each agreement between Bank
and a Borrower containing the
terms and conditions of an account relationship between Bank and a Borrower, as may be
amended, modified, or otherwise changed from time to time.
	 
	 	 
	(e)

	 	“Activation Notice” shall have the meaning set forth in the Recitals of this Agreement.
	 
	 	 
	(f)

	 	“Affiliate” means, with respect to a Party, a Person who directly or indirectly
controls, is controlled by or is under common control with the Party. For the purpose
of this definition, the term “control” (including with correlative meanings, the terms
controlling, controlled by and under common control with) means the power to direct
the management or policies of such Person, directly or indirectly, through the
ownership of fifty percent (50%) or more of a class of securities having ordinary
voting power for the election of directors of such Person.

	 
	 	 
	(g)

	 	“Applicable Laws” means all federal, state and local laws, statutes, regulations and
orders applicable to a Party or relating to or affecting any aspect of the Fingerhut
Program including, without limitation, the Accounts, the Existing Accounts, the
Fingerhut Program promotional and marketing materials and the Consumer Finance
Materials, all requirements of any Regulatory Authority having jurisdiction over a
Party, in each case regardless of whether in English or Spanish, as any such laws,
statutes, regulations, orders and requirements may be amended and in effect from time
to time during the term of this Agreement.
	 
	 	 
	(h)

	 	“Applicant” means an individual who is a consumer who submits an Application for an
Account to Bank.
	 
	 	 
	(i)

	 	“Application” means any request from an Applicant for an Account in the form required
by Bank.
	 
	 	 
	(j)

	 	“Approval” means Bank’s consent; provided, however, that the fact that the Bank has
provided such consent shall not mean or otherwise be construed to mean that: (i) Bank

      

			
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	 	has performed any due diligence with respect to the requested or required approval, as
applicable; (ii) Bank agrees that the item or information for which Company seeks
approval complies with any Applicable Laws; (iii) Bank has assumed Company’s
obligations to comply with all Applicable Laws arising from or related to any requested
or required approval; or (iv) Approval impairs in any way the Bank’s rights or remedies
under the Agreement, including without limitation, indemnification rights, for the
Company’s failure to comply with all Applicable Laws.
	 	 
	 	 
	 	(k)

	 	“Back-Up Originator RSA” means that certain Back-Up Receivables Sale Agreement, dated
as of January 19, 2011, between Bank and Company, pursuant to which Bank agrees to sell
to Company, and Company agrees to purchase from Bank, the Fingerhut Receivables, as may
be amended, supplemented or otherwise modified from time to time in accordance with the
terms thereof.
	 	 
	 	 
	 	(1)

	 	“Bank” shall have the meaning set forth in the introductory paragraph of this Agreement.
	 	 
	 	 
	 	(m)

	 	“Bank Indemnified Parties” shall have the meaning set forth in Section 12(a) hereof.
	 	 
	 	 
	 	(n)

	 	“Borrower” means an Applicant or other Person for whom Bank has established an Account
or Existing Account and/or who is liable, jointly or severally, for amounts owing with
respect to an Account or Existing Account.
	 	 
	 	 
	 	(o)

	 	“Business Day” means any day, other than (i) a Saturday or Sunday, or (ii) a day on
which banking institutions in the State of Utah or State of Minnesota are authorized or
obligated by law or executive order to be closed.
	 	 
	 	 
	 	(p)

	 	“Claim Notice” shall have the meaning set forth in Section 12(d) hereof.
	 	 
	 	 
	 	(q)

	 	“Closed-End Loan Account” means an account: (i) which is established by Bank pursuant
to an Account Agreement for the purpose of financing a one-time, single purchase by a
Borrower of Merchandise from the Company; and (ii) which is not an open-end revolving
consumer credit account.
	 	 
	 	 
	 	(r)

	 	“Collateral Account” shall have the meaning set forth in Section 33(a) of the Back-Up
Originator RSA.
	 	 
	 	 
	 	(s)

	 	Intentionally deleted.
	 	 
	 	 
	 	(t)

	 	“Confidential Information” means the terms and conditions of this Agreement, and any
proprietary information or non-public information of a Party, including a Party’s
proprietary marketing plans and objectives.
	 	 
	 	 
	 	(u)

	 	“Consumer Finance Materials” shall have the meaning set forth in Section 5 hereof.
	 	 
	 	 
	 	(v)

	 	“Daily Funding Statement” means the statement prepared by Company on a Business Day
that contains the computation of the Settlement Amount, and all information necessary
for the transfer of Account Advance proceeds to the Settlement Account and

      

			
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	 	such other information as shall be reasonably requested by Bank and mutually
agreed by the Parties.
	 
	 	 
	(w)

	 	“Disclosing Party” shall have the meaning set forth in Section 14(a) hereof.
	 
	 	 
	(x)

	 	“Effective Date” shall have the meaning set forth in the introductory
paragraph of this Agreement.
	 
	 	 
	(y)

	 	“Existing Accounts” shall mean those accounts originated by the Existing Bank
in connection with the Fingerhut Program prior to the Program Start Date,
which accounts shall include any and all applications, documents, records,
notes, and statements of any kind that are related to such accounts.
	 
	 	 
	(z)

	 	“Existing Bank” shall have the meaning set forth in the Recitals hereof.
	 
	 	 
	(aa)

	 	“FDIC” means the Federal Deposit Insurance Corporation.
	 
	 	 
	(bb)

	 	“Fingerhut Brand” means the Company’s internet shopping channel, products and
services having the name, logo, design, registered trademarks, or service
marks of or associated with “Fingerhut.”
	 
	 	 
	(cc)

	 	“Fingerhut Credit Policy” means the minimum requirements of income, residency,
employment history, credit history, and/or other such considerations that Bank
uses to approve or deny an Application, establish an Account, and to authorize
or decline an Account Advance or modify any terms of an Account (e.g. a credit
line adjustment), as amended, modified, or otherwise changed from time to time
as provided herein.
	 
	 	 
	(dd)

	 	“Fingerhut Program” means the closed-end loan and open-end revolving loan
program pursuant to which Bank will (i) establish Accounts; (ii) accept
Existing Accounts; and (iii) make Account Advances to Borrowers pursuant to
the terms of this Agreement, initially as described in Exhibit A attached
hereto.
	 
	 	 
	(ee)

	 	“Fingerhut Program Compliance Manual” means the policies and procedures for
the implementation of the Fingerhut Program by Company, including the policies
and procedures for the solicitation and receipt of Applications, the
underwriting of Accounts and processing of Applications, and the servicing of
Accounts and Existing Accounts.
	 
	 	 
	(ff)

	 	“Fingerhut Receivable” shall have the meaning assigned to such term in
Schedule 1 of the Back-Up Originator RSA.
	 
	 	 
	(gg)

	 	“Force Majeure Event” shall have the meaning set forth in Section 30 hereof.
	 
	 	 
	(hh)

	 	“Fourth Quarter” shall mean the months of November, December, and January.
	 
	 	 
	(ii)

	 	“Indemnifiable Claim” shall have the meaning set forth in Section 12(c) hereof.

Bluestem Brands, Inc. — WebBank - Back-Up Originator Revolving Loan Product Program Agreement — Final

34

 

 

	 	 	 

	(jj)

	 	“Insolvent” means the failure to pay debts in the ordinary course of business, the
inability to pay its debts as they come due or the condition whereby the sum of an
entity’s debts is greater than the sum of its assets.
	 
	 	 
	(kk)

	 	“Licensee” shall have the meaning set forth in Section 15(a) hereof.
	 
	 	 
	(ll)

	 	“Licensing Party” shall have the meaning set forth in Section 15(a) hereof.
	 
	 	 
	(mm)

	 	“Losses” shall have the meaning set forth in Section 12(a) hereof.
	 
	 	 
	(nn)

	 	“Material Agreement” means any agreement: (i) by and between Company and Corecard
Software, Inc. (with respect to its card processing platform); (ii) Company and
Equifax Information Services, LLC (with respect to its application approval system
Interconnect); and (iii) the agreements between the Existing Bank and the Company
relating to the origination and/or servicing of the Existing Accounts and/or the
sale of receivables thereunder.
	 
	 	 
	(oo)

	 	“Measuring Period” means (i) the period from and including the Program Start Date
to but not including the date occurring 12 months thereafter and (ii) each twelve
month period thereafter beginning on an anniversary of the first day of the
calendar month immediately succeeding the Program Start Date.
	 
	 	 
	(pp)

	 	“Merchandise” shall have the meaning set forth in the Recitals hereof.
	 
	 	 
	(qq)

	 	“Origination Fee” shall have the meaning set forth in Section 4(b) hereof.
	 
	 	 
	(rr)

	 	“Party” means either Company or Bank and “Parties” means Company and Bank.
	 
	 	 
	(ss)

	 	“Person” means any legal person, including any individual, corporation, limited
liability company, partnership, joint venture, association, joint-stock company,
trust, unincorporated organization, governmental entity, or other entity of
similar nature.
	 
	 	 
	(tt)

	 	“Program Documents” means this Agreement and the Back-Up Originator RSA.
	 
	 	 
	(uu)

	 	“Program Start Date” means that specific date stated in the Activation Notice on
which the Bank will become the originator for the Fingerhut Program.
	 
	 	 
	(vv)

	 	“Proprietary Material” shall have the meaning set forth in subsection 15(a) hereof.
	 
	 	 
	(ww)

	 	“Regulatory Authority” means any federal, state or local regulatory agency or
other governmental agency or authority having jurisdiction over a Party and, in
the case of Bank, shall include, but not be limited to, the Utah Department of
Financial Institutions and the FDIC.
	 
	 	 
	(xx)

	 	“Restricted Party” shall have the meaning set forth in Section 14(a) hereof.

      

			
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35 

 

	 	 	 

	(yy)

	 	“Settlement Account” means the banking account designated by the
Company to be used for receipt of the applicable Settlement Amount,
as initially identified on Exhibit G attached hereto.
	 
	 	 
	(zz)

	 	“Settlement Amount” means the aggregate amount of all Account
Advance proceeds to be disbursed by Bank to Company, as listed on
the applicable Daily Funding Statement.
	 
	 	 
	(aaa)

	 	“Term Sheet” means that certain term sheet dated August 4, 2010, by
and between the Bank and the Company.

	II.	 	Construction. As used in this Agreement:

	 	 	 

	(a)

	 	All references to the masculine gender shall include the feminine gender (and vice versa);
	 
	 	 
	(b)

	 	All references to “include,”“includes,” or “including” shall be deemed to be followed by
the words “without limitation”;
	 
	 	 
	(c)

	 	References to any law or regulation refer to that law or regulation as amended from time
to time and include any successor law or regulation;
	 
	 	 
	(d)

	 	References to “dollars”
or “$” shall be to United States dollars unless otherwise
specified herein; and
	 
	 	 
	(e)

	 	Unless otherwise specified, all references to days, months, or years shall be deemed to
be proceeded by the word “calendar”.

      

			
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36

 

 

EXHIBIT A 

GENERAL DESCRIPTION OF PROGRAM

	1.	 	The following is an overview of the Program to be offered by Bank to Bluestem’s
customers pursuant to the terms of the Program Agreement to which this Exhibit A is attached
(the “Agreement”). Capitalized terms used in this Exhibit A without definition shall have the
meanings provided in the Agreement.
	 
	2.	 	Bluestem is a direct marketing retailer of general merchandise and services offered to
consumers through catalog mailings, the internet and the telephone. Based on creditworthiness,
Applicants may be offered an Open-End Account or Installment Loan with Bank which may be used
by Applicant for personal purposes to purchase such products and services. All Accounts
established by Bank under this Agreement shall have a non-variable annual percentage rate
(“APR”) of 24.90%. Consumers who successfully pay off an Installment Loan will be eligible for
an Open-End Account. Open-End Accounts shall be considered and treated as consumer credit card
accounts for purposes of compliance with the Truth in Lending Act, Regulation AA,
Regulation Z, the Credit CARD Act of 2009, and other Applicable Law pertaining to consumer
credit card accounts. Bluestem may contemplate other credit programs from time to time,
subject to approval by Bank.
	 
	3.	 	A copy of the form of Account Agreement currently used in the Open-End Program is attached as
Exhibit D to the Agreement. A copy of the form of Account Agreement currently used in the
Closed-End Program is attached as Exhibit D-1 to the Agreement. Customers wishing to apply for
an Account via the internet or mail will complete an Application, which is attached as Exhibit
C to the Agreement. The Application will be located on web pages at
www.fingerhut.com. Applicants applying for an Account via phone will provide Bluestem’s sales
representatives with oral answers to the application questions set forth on the Application.
Once the Applicant’s Application is completed, a FICO score, or other such credit score(s)
utilized by Bank at such time, will be obtained, and a credit determination will be made in
accordance with Bank’s then applicable Credit Policy, the current version of which is attached
as Exhibit B to the Agreement.

 

 

EXHIBIT B

[*]
Eight pages omitted

          [*]
Indicates confidential portions omitted pursuant to a request for
confidential treatment filed separately with the Securities and
Exchange Commission

1

 

EXHIBIT C

Forms of Application 

Fingerhut Credit Account 

1) Mail Order Application

2) Phone Order Application

3) Website Application

See subsequent pages 

 

 

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	EXHIBIT C-WEB APPLICATION (4)-Acceptance ofT&Cs and Submission (application cannot be
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~bt;!Llt fiJct~r:; tc ccr:sid”, ,’,!-,.;n
::!1=#E~Jyir9 for;;;- u;:;:ng a ,:redit
c~rd, froll’ lIle Fe::Jet’al ~-I’:IL
I}.,e >”,,,,c:;it.,. of l:i\€.
rsd€.,;;1 ~=!;:!”,’~ 3G ..rd at
Reserve Hoard            h;::p :/:\-, \’, ‘,’; .fr: d-::r!tl ~~$-=-ri,;:, g; ‘:>‘1/ c-;:dito:a ,:I_
Penally f’~e$
late Pityonent            Up t.rJ :!,30.00
“... 1:..;..& O~:.c..~__ ~#E_ “‘j
        .. ~, ~ .. :::.~~,’ . “ ,
I I ‘”

 

 

EXHIBIT C-1

Forms of Application

Fingerhut FreshStart Credit Account

1) Mail Order Application

2) Phone Order Application

See subsequent pages

 

 

	EXHIBIT (-1 (1) MAll APPLlCAfiON FiNGERHUT FRESrlSTNH
        ,• c:—. — — —1
f’!e~se check yom lall!)u<lge
11mf$1enCI!: [1 English OSll:>nls:1
        ,
        ,
;lfll"(~i~ir.J!\Ullllil!I’!i:
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your /lOW Fingerhut
F,d,S

	IlI/\” CriJdi/ ilrW(fn!:
 — (01/ /./WO ·UiI ·2SQr,
Nl!!wrs 12 d,,
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) APPlV 7u’a\~a w~{j,k
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(aI felt) iHid will ttl th~ fJrtJ.ic
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NWllt)p~ f1;!l1t’1~11
Tho fi!i\lCfhut flesliSlmt’”
Cm,M N
;cQtlni [~ ~!f\llr(1 hi ,
US [eS~!~frtit!~ ~1 Mttti~!1afl:kf . a f
m!cm!l; (:lliY!l~!;l S”\I~I\)~
U5Mia\!,;n ,;;,tl Hlv.: memtmf tu~:i
tf1d in SI0tf:(
Fulls, SO. wh\) !!~t~mlinu~ eli!liiiil:Ij’ lim! ‘lm~il
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!Qr tr,’J Ihlm:l 01 c;“i.\~.
“h.m::5; {lIi.(!.,.!{H’:Jtl.h I..J Llt,-H
~~~;~1,ttl:;~;#E1’1~~~tl~~~1:;’tttt~;~:~}~r;~~
ul
~\}’I: ~n~t;,/,~ oa”.!.1,.1 n:~1i <:’:rt
II f.’H.’;i’i:I.~~1 n’:~\’;.;.t~htl~~1..

 

 

EXHIBIT C-1 (2) FINGERHUT FRESHSTART PHONE ORDER APPLICATION

Order line intro script for customer that received FS catalog

	 	 	 
	FOP	 	OL Scripting Tool
	

	 	Greeting:

“Thank you for calling Fingerhut,
this is (name). Are you calling to place
an order from a Fingerhut FreshStart catalog today?”

 Response 1:

“That’s great! I would be happy to help you with that.”

Response 2:

“May I have your customer number? It is located on
the back of your catalog highlighted in yellow above your
name and address,”
	 

	 	

 

 

EXHIBIT C-1 (2) FINGERHUT FRESHSTART PHONE ORDER APPLICATION

	 	 	 
	FOP	 	OL Scripting Tool
	

	 	Verification:

 Refer to FOP scripting.

Verify the caller’s information — ensure name and
address are spelled correctly.

 

 

EXHIBIT C-l (2) FINGERHUT FRESHSTART PHONE ORDER APPLICATION

	 	 	 
	FOP	 	OL Scripting Tool
	

	 	Response 3:
	 
	 	“I see that you have received our Fingerhut FreshStart
catalog offer! Do you have any questions about the Fingerhut
FreshStart Credit Account issued by MetaBank?”
	 	 
	 	YES — Proceed to Response 4

NO — Go to Response 5
	 	 
	 	Response 4:
	 	 
	 	“The Fingerhut FreshStart Credit Account issued by MetaBank
is a new way of shopping that helps you make the purchases you
want today and may help build your credit over time. Shop,
order, pay it off - that’s how it works. Spend at least $50 up
to your pre-approved credit limit. Place your order
and make a down payment of just $30. You’ll pay off the remaining
balance in 6 on-time, low monthly payments. Upon completion of
the program with no late payments you will be rewarded with a
revolving Fingerhut Credit Account issued by MetaBank with a
credit limit of $200!”
	 	 
	 	Response 5:
	 	 
	 	“I can complete an application right now. If you are
approved, you can place an order immediately. Would you like
to apply?”
	 	 
	 	YES — continue with application.

NO — Offer other MOP.
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

 

 

EXHIBIT C-1 (2) FINGERHUT FRESHSTART PHONE ORDER APPLICATION

	 	 	 
	FOP	 	OL Scripting Tool
	

	 	FreshStart Credit Application:

Refer to FOP scripting.

 

 

EXHIBIT C-l (2) FINGERHUT FRESHSTART PHONE ORDER APPLICATION

Order line congratulations script for customers that are approved

	 	 	 
	FOP	 	OL Scripting Tool
	

	 	Response 1:

“Congratulations, your Fingerhut FreshStart Credit
Account issued by MetaBank application has been approved. Your
maximum purchase amount is $      . This is a
one-time use amount and your purchase must be at least $50.
With this order, you will need to make a down payment of $30
using your Visa or MasterCard debit card, checking/savings
electronic draft or payment by mail. We recommend making the
down payment with your debit or credit card - this method of
payment will allow us to process your order more
quickly. Do you have one of these methods available today?”

YES — Continue with order and refer to FOP scripting

NO — Go to Response 2

Response 2:

“OK, how would you like to make your down payment?”

 

 

EXHIBIT C-1 (2) FINGERHUT FRESHSTART PHONE ORDER APPLICATION

	 	 	 
	FOP	 	OL Scripting Tool
	

	 	If customer advises mailing in a check or money order:

Response 3:

“Please note that your payment must be received and
applied within 10 days so we can process your order. You can
mail a check or money order for your $30 down payment using the
postage-paid envelope in your catalog. If you do not have the
pre-paid envelope send your payment to P. O. Box
270, St. Cloud, MN 56372-xxxx . Please keep in mind if
you choose to mail your payment, we must allow time for the
payment to clear, which means your order could be delayed for
up to three (3) weeks.”

 

 

EXHIBIT C-l (2) FINGERHUT FRESHSTART PHONE ORDER APPLICATION

Order line script for advising timeframe on Down Payment methods of payment on in stock item

	 	 	 
	FOP	 	OL Scripting Tool
	 
	 	 
	

	 	Debit:
	 	 
	 	“We allow 2 — 3 business days for your payment
to be approved and applied to your order. Your order will be
processed once your payment has cleared the bank.”
	 	 
	 	Checking/Savings:
	 	 
	 	“We allow 12 business days for your payment to
be approved and applied to your order. Your order will
be processed once your payment has cleared the bank.”
	 	 
	 	Mail Money Order:
	 	 
	 	“We allow 5 business days for your payment to be approved and
applied to your order. Your order will be processed once your
payment has cleared the bank. Please mail your payment to PO Box
270, St. Cloud, MN 56395 and include
your 10 digit customer ID number on your payment.”
	 	 
	 	Paper Check:
	 	 
	 	“We allow 5 business days for your payment to
be approved and applied to your order. Your order will be processed
once your payment has cleared the bank. Please mail your payment to
PO Box 270, St. Cloud, MN 56395 and include your
10 digit customer ID number on your payment.”

 

 

EXHIBIT D

Fingerhut Credit Account

Terms and Conditions

Account Summary Disclosures

Privacy Policies

Fingerhut Credit Account Billing Statement

See Subsequent Pages

 

 

	YIl inv e stigate whe1her or oot  I h!!re  h as been 00 error: annoc  l ry to coIlecttfTe  a mom! in  ~ Ion, or
report yoo as oelnquent. :harge in question may rem~n on yotr statement, !lid we- may contiooe 10
Chllg! nferest 00 that !II11OIlI1t. t yoo do noc haw fa pay the llnoont in Question, yoo are
Yaspon!lf:le fex’ fue Inder of yolK’ balance. an aw/y any uflPlJd Mloont a~lnst yolK’ credit limit.
‘8 finish oor Inveslloatlon, one of two things will h~: made a mlst8ee: Yoo will not have to pay
the amoont in question or MY Interest or fees relaled to that llnoont. do not beleve there ~ a
mlsttb: Yoo will have to pay the Mloont In question, I with lWlciWlle Interest ood fees. We wi!
send yoo a statement 01 the llnoont you ood the date payment is due. We may then rep«! yoo as
delinquent ff yoo do not he amooot we think yoo owe. f&eeive oor exp!Malion but still believe your
bill Is wrong, yoo mUM write to us 10 days telling us thai yoo still refuse to pay. If y~J do SO,
we coonot reperl you nquenl withoot also reporting Ihat yoo tre questioning yoor ~II. We must Iell
you ne of 1K1yooe 10 whOO1 we rep«led you M d&lin~ent, and we I1XIstlet those :ations know when the
matter has been seHied belween us. J not fellow all of the rllles above, you do not have to pay the
first $50 of the all1Oll1t 9sUon even If yOlf bills correct. RIGIiTS IF YOII ARE DISSATISFIED WITH
yom CREDIT PURCHASES If yoo use ~d to make a ptl’chase and yoo tre tbsatlslled with the goOOs or
S!lVlces thai yoo , yoo mll’f have the ri~t not to pay the re!118inlng Nnoont due on the purchase.
I~s right, Nt of Ihe fell owing must be true: purchase must IIftve been made In your hOlM state or
w1t~n 100 mles of yoor lilt meHlng addre!!, and the purchase j:Klce must have been more thM $5{1.
(NoIe: ler of Ihese are neceMaty if yoor purchase was based on an advertiselNn! we MI to you, or ff
we own the COO1pany that sdd you the goOOs or services,) mus!f1ave used yoor Ctrd frt the
ptl’chase. must have not yet ful~ ~d fl1’ the purchase. the crHeria above are me! Md yoo are allH
diMatisfled wHh the purchl\!e, contact us ng at: Fingerlxlt Crell! Mcoont Servic!!, P.O. BIX( 1250,
St. Glood, MN 56395-1250. 1/8 Investigate, the me rlies aw/v to Ihe dlspuled amooot as lI!cuS!ed
aIleNe. ‘e finish oor Investigation, we willt~1 you 001’ d&el~oo. At that point, If we 1I11nk yoo
amoonl and you do oot pay we may repa1 yoo as delinquent.  •  BUREAU DISPUTES If you believe we
inaccurately repa1ed credit history !tion about you ex’ yoor Mcoont to a credit repcrllng agency,
call us at 734-03.42 or wrHe to us at: Greti! Bureau fleportilg Services, 6250 Ridgewood RotiI, Jd,
MN 56303. Please preMde the Fingerhut Credit Mcoont nunter ~ong wHIt a ‘your credll burelll reprrl
reflecting Ihe information that ‘100 believe Is Inaccurate. lion By requemlng M Accoont frOOl us Md
accepting ills A!J’eelmnt, you a!;fee a dIspute oIooy kind arises out of Ihfs Agreement, alliler
you or W!, at 0If sele lon, can choose to have ~at ti!llIte rHdved by blOOfng arbitration. If
!lbllI’atfoo i~ by any iMf, n&i!h&r you nor we win have 111& r\ti11 to litigate Illat claim In
coort. lve a Jury tris on trlllt crlm, rt to engaQ! In j:KNrbl~!tion dlscO’lery, except as It! frt
in tl1& arblhtioo  •  •  In addftlon, you will not have tile rirjl! to parllc~a~ presenlalfte C( member
0( any class 0( claimants pe!hlning to MY cllm su~e ct to :fon .. The !lblb’ator’s decfskln will
genmlly be fina and blndng. Oi!ler rights thai: !lId f1ftYe’ ff you wentlo coort may also not be
aY8IWle’ rn arbitration .It is ImpaiMt II read the entire Arbilrallon prO’lllion cnfuHy befcte
acceptfng the terms of this lent. Notwitilstandlng MY language of Vll~ Agreement. \0 !he contrary,
shadd any c{ this ArbitrMion prOYl~oo be held Invalid or unenf«cePble i1J a COIW! tr other body

Jetent jurisdictioo, tf1j$ entire Arbl1ration j:KO’IIsion shall be ooIomIIticailyterminatMl, other
prClilsions 0( this A!1eement shell remain In fllli frtce and eff&et. kif clNm, I or controversy
[wh6ti1er in cootract, regulatory, 1tlrt ct otherwise, whelller [X’el, present oc future ood
including conslffutionBi, staltrtory, COO1nlOO law, Intentional I equltOOle ciaims) arising frOOl
orrelalingfolhe cretitcMered or prO’lidedto yoo;lIle actions ofyoorsetf, us, ex’ thinJ p<rIies;
ex’ the ViV/dily ofj~s ArbIlration prO’lisioo Ondividualy 1K1d coIectiv8!y, a “Clamj, I1XIst, afler
M election i’I yoo 11’ us, be resol’r’ed by bilding irbIlration In at’trtdMC8 with lIle ArbItration
prO’lision and the GOO1merci~ Arbilratlon RIlles of the AA1ericoo Mlilration Association rflMj In
effect when the Claim Is filed. There wall be no authority for any Claims 10 be <rbilrated on a
class actioo basis. lit arbitration elJl only deckle yoor rt oor C1!11m and may no! coosolldate or
Join the claims of other per&ll1S who may have !lmlll’ claims. Yoo may OOtain rues Md fctms 111
cNllng the f>M at 1-800-778- 7879. Any arbltratioo he<rfng 1I1at yoo atiend will lake ~ace in
the I1deml jullclN district where you reside. At yoor request, we will advance the fil’8t $250.00
oIlIle filing Md hearing fees lex’ any Claim yoo may file a~nst us; the trbIlrator wiR decide
whether yoo or we will ultimately pay those fees.lM~ss incon~stent wi1l1 awlicallie law, sach
p!lrty wall bear the e~nse 01 U’~r respective allNneys, experts, and wilnm fm, regardless c{ wi,lch
party Ilevails In Ihe arbitration. The N’lXIralor shall1WlY awilcallie su~tantive law conslstent
with fue Federal Ar~tratron Act IJId awlicallle slaMas of IImtation~, and shall honex’ claims of
prl~lege recogIlzerl at law. Jud{J11ent upon 1I1e 3W!’d rendered by 1I1e 8bItrall1’ !118y be
entered in 1K1Y cOlrl hi!’ring 1Jrlsdlction. This Arbitration prCIil~on shall survive repayment 01
your extension of cretll1K1d termination of yoor Accoont. rns Ar~lralion proviskln shall be
[pIerned 111 the Federal Ar~lratlon kl, 9 USC Sections 1 throu[j116. 0010 R~~: The Ohio laws
against discrimination require that all creditors make cretit equally avalliWlle 10 all
creditworthy custOO1ers, Md that cr&!!l! repmlng agencies maintain seplYaie oredil histories on
each Intivklual upon re~est. The Ohio Ci”;l Rlfjrts Commission administers c~IMce wllh this law.
Ml!rrIed WIsl:onlin RlllidenlJ: 110 rtovision of MY mN’itN properly lI!1eement, unilateral
ageelmnt, rt court decree under WIsconsin’s Marital Property Mt will adversely affect a creditor’s
inlerest unless prlex’ to the time credit Is pled, the cr&!!ifor is furnished a COl’! of that
l1!,feement ex’ decree or Is ~ven cOO1~1e In/oonallon !ilOOt the 8{,feement or d&eree. All
aceooo!l, InckKIlng Hew YorkIRfIode IliandNennont R9Idenls: Yoo &I18e 10 ~ve MetaBMk permission to
ilCCMS yolK’ crellt report in connection wHh MY tranSllCllon, ex’ extension of cred~, and on an
ongdng basis, fex’ Ihe pUrpo!e of revlewMlg YOlK’ Accoont, oojusting the credit IMle on yotr Mcoon~
taking cell&ellon actIon on your Accoonl, or for MY other le!1\imale plJlpOm associated with yolK’
MM. Upon y~lr request, yoo will be inlann&!! of whether or not a con mer creelt repcrt was adered,
1K1d tf It was, yoo Vtill be given Ihe nNlle Md address of the consumer reporHng agency that
furnished Ihe report. flew Yrtk residents can contact the New York Stale B1K1klng Department:
1-800-518-8886. CaHfomia and IIIIIh R!lidentr. ~ required by law, you are herei1J nollfied that a
ne~tive credit repcxi reflecting on yoor credit reccrd may be subtrffled to a crell! repcrllng
agency if yoo fail to flllfl.the terms of your credit cbIlgations. Texas Relidenls: To contact us
moot yo!I’ ilCcOOnt calI1-000-2QS-2500. This contract Is subject In whele
 rt In pert to Texas law
which Is enfrtced by the Consumer Crellt Commlssklner, 2601 North lamar BooIgd, Austil, Texas
78705-4207. PIlon! 1-800-538- 1579; mogcc,stat§,OCll$. Contact ~e Commlsslonerreiatlv8 to 1K1y
inQUires rt COO1~~nts. Effective 8/10 MetaBank Fingerhut Credit Account Agreement  •  AGREEMENT TO
TERMS  •  USE OF YOUR ACCOUNT  •  DEFINITION OF PARTIES Arbitration notice: This Agreement provides
that all disputes arising from or related to your Account may be l’88orvod by arbitration. See
“Arbitration” below. This Is the Agreement which COV&r! yoor credll accoont (cNled yoor “Account’)
with ~taBanl< (“MetaBllllk”) fN purchases yoo make wilh Rngerhut. Yoo CMuse yoor Mcoont to
purchim goods IJId services from MY Fingerhut authorized merch3nt Md 10 peV lex’ goods and selViees
offered In conn&etion with yoor Mcoont. You 1K1d MeIaBank will be bound 111 this Agreement frOO1lhe
frst time yoo use the MCOOOt. In lhisAgreernen~ 1K1d In YOIl mont~ ~lIing statements (“Statement”),
ills Vt’rItis “you” 1K1d “yoor” refer to all ~rsons nNnMl on the credit accoont we Issue to yoo or
who have si[,11ed application ex’ acceptance forms, and the words “we”, “us’ and “00’’’ refer to
MetaBMk.lf your Accoont is a joint Accoont, yoo 1K1d yoor jelnt Accoont holder each [l’OO1lse to
pay 1K1d are jelnlly and IndMdllftl~ respoo~bIe IN all !I11oonls due under this Ageemenl. GrNemlnO
i.!wl£nfOltllllbilly This A!;f&en’lent will be galerned by I1deral law, Md to the extent State law
applies, by ~e law of Sooth llekota, whether ex’ no! yoo live il Sooth Dakota and whether or not
this Accoontls used oo!!ide of Sooth llekcke.lf MY prOYision of this A!;feemen! Is determfned to be
veld rt unenfl1’ceMle under MY applicable law, rule, or re~latlon, til oIher j:KOYlsions of this
Ageemenl wll remain valid and enforcetlble  •  Our falklre to exercise 1K1Yof oor ri!jrts \H1der this
A!1eement will nct be deemed 10 waive oor ri~\S to exercise SlIch rirjlis In Ihe future. This
A!1eement is a fins expression of the agreement between yoo 1K1d us and this Ap!ment may nol be
confrooicled by evidence of any alleged i1’al ~nl. PrOO1I.e In Pay Yoo j:KOOllse to JlftY for (a)
credlt extended by MefaBMk to you ex’to Myone youalfowto use)’OlJ Mcoonti (b) Interest chNges,
Ialt~es, and ilIherchlV’gfts(e,g. refumed check chPiges) prO’llded In ‘61ls ~eemenl; and (e)
collection cost! Md atll1’neys’ fees ns perm/tied by_ble law If your MCOO!1I sfKlukf f1J 11110
deflluK. Avsilebie Credit We anb’cipaiethal we will extend credit to yoo fi’001 tim&!o h, bulwill
be tnmroo cilI!gafoo to doso, Ind w& meynot!lWl’O’I

 

 

	nt The minillXlm payment  i s ba ! ed  0 0 yoor accooot baance as ootined in fue 1t Ch<rl beliYIY. Too
minD payment is d$ when roo receive yoor Slatemen! looth. We will not impose ooy lafe charges if
yoo pay at least t~ Il’inimum payml)f1! Kf in yoor Statement by Ifle payment due date spetitied,
whIch win aways be at ~ days fran tile Stafement date. If yoo wish, you may pay more I~n the
Il’inlmlN11 11 MIl at MY time you may pay the ent~e new bftlMCe, wlthoot pen~. All payments Imsl be
made by check er mooey erder. Yoo 8!,1’&e lhat lilY paymenl you make may rned 10 yoo wllhout
applying It to yoor Account ood without [lesenlment er prate!!, !OIlS Including, Ixlt not IimHed
to, thet Ifle check or llIOMy crder: (1) Is nof dra’M1 00 i. P~t OffIce er a finMclailnslitutioo
located In 111& lInlled States; (2) Is 1l’iS!lng a Irej (3) Is drawn wRh (ffferent numeric Md
wrillen Mloon!!; (4) coota/ns ! reslrlcllve ementj (5) Is pil$t ·dafed; (6) Is not payNlle as
directed 00 yoor slafement; (7) Is not l In U.S. d~I!’S; er (~ Is not paid upon presentment. Yoo
8f1&e to pay any book on f&es we InclM’ fer MY check payments made In U.S. d~lars drawn 00 a
finMclN 100 nof located In the Unit&!! Slates. We CM accept late er parUal payments, cr checks ey
crders marked “Pa’1111enl in Full” or ot~rwIse restrictively entlomd, wlthoot losing our ri~1!
under this A!r&emenl. All payments under the A!J’eemenl must be recelv&!! Iddress spetlfied 00 yotr
billng Slatement. PAYMENT CHART Account Balance Minimum PMT $ From To — $5.98 100% $5.99 $44.99
$5.99 $45.00 $69.99 $6.99 $70.00 $99.99 $7.99 $100.00 $124.99 $9.99 $125.00 $199.99 $13.99 $200.00
$249.99 $16.99 $250.00 $299,99 $19.99 $300,00 $349.99 $22.99 $350.00 $449.99 $28.99 $450.00 $549.99
$33.99 $550.00 $799.99 $46.99 $800.00 $1,099.99 $59.99 $1,100.00 $1,399.99 $69.99 $1,400.00 5% ‘~
Rgure Interest Chergel To calculate the lntmst chwge payable each month, we V lhe aver~ daiy baiMce
times the moothly perioolc rale Md, if iWleWle, add lerred interest chNge (8ft! IJeferr81 Periods).
YOllIr ~count Is subject to a mlnimlHll I clwge of $1.00. e Deity Ballne! We figll’t the Inter8!t
chargs 011 your Account IJj appl~ng tile ~ p!rfodlc rille fo Ihe “averag! daily OOrM~” of yoor
Aceooof, IllCludfng current rtloos. To get 1M “average dalfy balante” we tak& tile beginning
b!lance ~ your If each day,. add MY new ~rchases, ch;rg8! aOO other fees, MIl subli’act any 1f~.
!X7 c~edlts. Purchausc ~et fa Oeferr¥ Periods. described below ar5 excluded Jr calcu/atloo ~ 1I1e
“averag! daly ~e” unil1l1~ rIar fcilowing !he expiation of ‘erral Period. Thl& rjves u~ tilt dally
bftiMCe. Then, we add up !l!llfle dally belMce~ :bllli1g cycle and dlvfde 118 foW
byth’l1Ilmberofdays [ntna billing cycle, This ~ves lIarmagil dlli~ belNlce.” trllble APR Yoor Mnual
PercentBge Rate 1$ Z4.00%, which corr~d$ to a moolhly c ra\& of 2.0750/  •  •  ThI~ I! a noo ·vNiallle
rate. merest Charges Begin iI AccnI& Intere!! ch8’gIls be{jn to accrue 00 sach ~rchase dale of the
purchase. However, if you ptJid Ifle new balMee 00 your previous en! by 1l1e payment due dale Mown
00 your previoos Statement, then: (1) if yoo pay the new halMce 00 yoor curren! Statement by Ifte
payment due date shown, we Im~ no inlerestch!rgllson purcham during lite current tilling cycle, and
r2l if you m~e a payment by tile payment due date shown 00 your clM’rentSlatement lila! is less thM
the new balMce re1lected on yoor current Statlll11ant, we will credit that payment as of Ihe first
day in your current blilng cycle. In addition, W your [levioos Statement reftecled a new balance
and you did not pay t11~t new baiMce In full by the payment dale 00 Ihal previOUS Statement, lhen
we wHI not
 I~e Interes! charges 00 MY pIIrchMes during Ifte current billing cycle If you pay the
b?Jance shown 00 your current statement by the payment due date reflect&!! on your current
Statement. DefelTal Periods See the deferrN terms In the specific oIferyou are ifdering from fer
special rules which apply during the defernj periods. If you are unWle 10 locate the terms ~ yoor
deferred oller, ~ease cootact GuMcrner Servlce 8t1 ·800-200 ·25OO. L!Ie Fees Late fees wll be e~N 10
yotr mlnlmlN11 payment ooe willi a maximum amount of up to $25.00 for the first time offense Md
willlncreaS! to a maximum amount of $30.00 If you have not m~e your payment by the due date in each
~ yotr next 6 ~lIIng cycles. The late f&e will never be (Teater Ihan your minimum paymenl due to
which the lale fee r~ales. Returned Payment Fee ~tumed payment fees will be e~al to your mlnlllXlm
payment with a maximum amounl of up to $25.00 fer the first time oIfanse and will increase 10 a
maximum amoont of $30.00 if you have MY rellrned payments in your next 6 billing cycles. The
r8lumedpaymentfae will never be “mter thM yoor most recentminilOOm payment due. APpllcalon of
Paymen!s Each payment you send to us will be applied to your Account In a manner eoosistenl wHh the
aWlieMie law. Gene~ly, we wi. aWlY your payment first to salf!fy your Il’inlmll11 payment due. My
remaining payment In excess of the minimum payment ooe wAI be applied to the highest APR brJances
II!’!!. Exception to this will be deferred halMces with expiratioo dales within the next two
billing cycle period!. Chsnge of TennI ~ncludlng IIIteI’eIt Chftrges) SUBJECT TO APPl.ICABLE LAW,
WE MAY GHANGE OR TERMINATE AKY TERM OF THIS AGREEMENT DR ADO NEW TERMS AT NlY TIME, INClUDING,
WITHOUT UMITATION, ADDING DR INCREASlI«l FEES, INCREASING YOUR MINIWM PAYMENT AND INCREASIOO THE
MTE DR MlOONT OF INTEREST CHARGES DR CHANGING THE METHOD OF COMPUTING THE BAlANCE UPON WfiCH
INTEREST CHARGES ARE ASSESSED. PfUDR WRITTEN NOTICE WILL BE PROVIDED TO YOU WHEN REOOIRED BY
APPLICABLE LAW. CHANGES /MY APIt Y TO BOTH NEW MlD OUTSTANDING BALANCES. Default Yoo wKI be in
defMlI! underlhls ~eement~: (8))’OIM’ faVure 10 make at leaM Ihe mlnllOOm payment by the paytMnt
due dale specified In your Statement; (b) yoor YI~atlon rt MY other prD’iielon of thls Ageement;
(c) your dealh; (d) yotr beccrnlng fue su~ect ofbMkr~cy er Insolvency proo&e(Jngs; (e) your
beccrnlngthe OOject of attachment, fereclosure, repcesessloo, lien, jud~nt, er garnishment
proc&elings; (n your faMure 10 suwly us with any information we reasonably deem necMWY; (g) yotr
supplying us with misleading, flise, illCcrnpiate er Incmect infermatioo; ~) oor receipt of
informationlhal you are unallle 10 perfcrm the lenns Md conditions of this Ag&ement; er OJ yoor
mD’iing out of the U.S. Upon default, we have Ifle ~t fo require you to pay your antire Account
baallCe Oneluding all deferred purchases Md 811 accru&!! Ixlt u~d ch., Immedia\ely, Md to eue yoo
fer vmatyou ow!. Yoo wlK prf our coul’icosis, reMOllllble attorneys’ fees aM other conec!ioo cost!
relaled 10 the defailitio !he extent pennated by aPf,/icNJie law. F~lowing any defauH, any belaooes
outstiVldlng under ‘d1e Jl(jreement will conIlnue fo accrue Interest ch8l:ges until pard In full aM
wilt be suiJject 10 all the lerme. and condli’en! ofllt~ ~eernent, except that W! will a~y yotr
payments f~sI 10 allcrneys’ fm and other court costs, and then In the crder setfotflln !he.
Appllcaioo of Paymenfs sectloo. ClOling Your Account You CM cMoe[ or clO5t yoor AccoUllt by writ’ng
to U$ at FIngerhut Credit Account Services, M. Bo:< 1250-, Sf; Cloud, Mft 5639S-1250:.lf yoo 00
not ray us · in M when yoo CIIncet, yoor oofslMding ~ance~ wlK contlooe 10 aecrue Inltre!! IIf1d
other Ch31geSMdbe !Ilbfectt~fu~ terms and coodition$ of this fqeelmnf. ClIf1ce1tallon 01’
Termination of Agl’!!I11!t1t If yoo cancel or close yoor Accooot, or If we ChOOMlo fer
minallJ yotr
chrtgfng pri’deges for any reason, whelher ernotyoor Accoontts k1 default, you may not try to make
any purchases wltil yoor Accomt CiYd{~) (HCs-d”) am upon requm, yoo IOOS! retum to us yoor Car~s)
cut In hl’Jf. Fdlowklg MY cmHatioo, closing or termlnatioo, MY balances ooIslMding under this
A[J’eem8f1t wi. cooliooe 10 accrue i1terest charges until paid in full Md will be sOOjeel toailihe
lermsand cooditions oftflisA!1eement. Llabilly fII’ lkIool1orized Use Wile!! yoo receive yoor
Slatement, you shadd verify that the charges are true md the amoonts un~tered. You may be IiliJle
fer the oollithorized UM of your Clrd. You will not be Ii/’ble for unauthoozed use that occurs
after yoo notify us of the I~, theft, if poeeilie unoolhifized use. NoIificaHoo 100M be ~ven by you
iJml&!!lately upon learnk1g of Ifle loss, lhef! if poseilIe unoothoriz&!! use by callng us at
1 ·800 ·208 ·2500 or \\Tiling us at Fingerfxl! Credit Account Services, P.O. Bo:< 1250, SI. Glood,
MN 56395 ·1250. In any case, your llllbllly for oollithoriz&!! use of your Gard will nof exceed $50.
However, un!’illherlzed use does not Include use I1j a pe1’!Ol1 whcrn you have ~ven Ihe Grid er
authooty to use the Account, CIld you will be Il~ fer !III use I1i such a user. To tetmnale Il’is
ootherily, yoo mU!1 retrieve the Card fran the rrevlously aulherlzed user Nld retum It 10 us at the
above address aloog with a letter expiNnlng why you are doing so. We have found fuat moe! of oor
custcrners prefer 10 allow their epOllees to ~ace «ders 011 ther ~coont. To better serve you,
Ifyotr spouse ~lICes an order 00 yotr ~count we will j:4’ocess that roques~ unless you Instruct us
otherwise. Lad 01’ Stien Credil Card{l) You il!1ee to notify us Immediately If your Gard(s) are
lost er sl~en. You may notify us by clllilng 1 ·800 ·2011 ·2500 er wriHng us at Angerhut Credit ~count
Service!, P.O. Box 1250, 81. Cloud, MN 56395-1250. Chenge of II!me, AdtllmJ Te/ephaIle Humber or
Emp/oyrneflt You agree 10 rive us [lompl notice 01 any chft~ in your nMle, mNling address,
telephooe number if ~ace 01 empl(1fment. Sl)f1d changes to: Angerhul CrerJt Account Services, P.O.
Box 1250, St. Cloud, MN 56395-1250. Consent iI Use 01 Telep/lone Humbers You eX[lessly coosent to
reeeiving calls and messages, klelUting lltodlaled Md prerecerded mesaage cNls, from
MelaBMklAngerhut, thelr affWiates, msketing prilne!’!, 39MIs Md others c!l!lIng al their re~est or
00 ther behNf, at My lelep/1ooe numbers that yoo have prO’lided or may prOYIde In the future
rM1clutfng any cellulif te/ephooe numbers). Ml/jInmentof Aceount We may sell, MSlfll erlran!l

 

 

	EXHIBIT D (2) ACCOUNT  S UMMARY DISCLOURE PRIICIU1EIIIII D ~~lIOIICE:
1IiI’.- . ufll f lot f m«lttll“MlWImIdQft:1R !ll!rlll’l!llll!l~”)tII_w.ablXflldl.
Cld1!llY1IIM.-triJ,JftII’ !’1111MINIIf,KIl iIt= ... Ih.IiIfII*1ar~«fllr.
I!JIIII:IiIIII«WIMIMfCIIGflf W’fllldlMlWllIIlIltIiN tIfItI clNff!flllll1l ..
tk_”,CIlIIbIIIIIIIIII’~"'2t1..u.m-DtIT,I, 1. ..2 1:107211.H. .’t -uH1IIII1 .1 Wllt’WItt:
 .—‘1.D.1=1+l122, AIHII, GA ~1~ TIIIIIIIiIIaII 0!It OIl’” M, IIICIl5, WatflJII, p/’1~ lI*ItC .
DIlIIdiII ... ~CftH~lQi filMl1!II,lrtWIW,lfY IC8lI. . ~SUKIU.m’.alSCl.OSllfltS Inlcrest Pales and
Inter:5! Ch.1r1c5 AAIIII!I PCnlen!lgi! Rt!e (APRjlar Purcbtltl 24.90% HIIW to Avotd paying yOU! Ibl
data Is at I6a£t 24 ~Il’f! alt!r the dose !n!tresl of aach tAlIna Gj’C/5, We wM oo! charge yoo any
ilt!rest on plJ’ci1B!1IS H rm pay \\XN’ m hail!J1CC. by 100 doo date eac month, MInkm kltelUt r yoo
am charg&.1 lnlel85l, Ih! d1MgB wil be fl[ Chlrgt 1M11i1an $1.00, For !;Mdll Card 1/(!f To m IlWB m
factor. bl COIltIOOrwll!i1 . f1’om the Fedatl ~ lar or \1111g ! mt card, visit lI1e Rel«l’e Baarti
~ of the FedemiReserie Board zt bl!ili/Wt¥W,1tdIrl~eHM.aovlClSJtwd, Fc~s Ptn lllY Fec, I Lale
Payment  •  Up \o$~l.IIO  •  RalurnGd P!¥I\llJ1t .Up 10 $:1(1,00 — How WI ‘1M CalcUfte YIIIII’ !IIIact:
W! till D ~ ~tl ‘fM!Je ~ btIar1l1 oncW:1Q n!W pI.ICIq!IJ.’ SeI ilIbiIlo! 1IIOI1d!i;k, Rllllla
RJoIIlI: i1ftfmIIm on \I1!K ilih/.! j,] ~ ~ ~d h!w lD 1Y.!!ti1 ~ ni/l!lllPraMldll!ffll, SwrInaIy
1lI1cloxur .. lWr. 11’/s ~t OO’IIU In\l~t If~llr!! !bait 11!1 ~~ Cledit AtcDIW, bIIt k It not)OO’ .
CreDt Im’m. i¥l!fflMrt. YOll’ Clildit ~nI />q8lm1ilt \\till! III1IlD)tIl ~ rellllhe!e Ililclo!!m
Ml 11I! hlrl!llllnl Cllliltit{, IIId JIMjlIlwm for \’001’ mcorilf. itt Cd Account ,Iq_t wI .
Il\lilil how lilt ,lqllmll1t I11IY III thlJ’!)!ld, ~ 111M M!lIilid( I1Il\’ III, MIIgn !’i ~ancrll’
}IQlrlCl:OIJrtorllf1J(li:xt tlJred, i\lII’IItltId l’rlU per MIIntII: T1i! &rIi!ftitod PIlei 1«
rrOOl1 ~ 1M eIIlmI.l&d Iri!II m~ mWmum (.t!f11II’1t 1_ for I ~1,’iII1iIJm Milt, Yr$l rdJII
rrkll1\OO1 ptjmll\t wi be ~al!d u~ U1I ~dIrt on IhII1J! I’l0l, filled on jOIi’ Accoun!blim, HDw We
~11 JaIwN! I)harga: To ClWaI8Ih1 kl!«I!t chIrotlJl9ijt lath mor/h, ‘/II rOOt\l~
1i!lYtrI.Qtdllltlllm Ilm!s lie m~~rd WId,” ~etbIe, t:ldarw tlIflrTld ~1iIr!It chJrIlOl (lei
Dtkrrlll’lrlodt). A_¥lr1IIiIl Dl Iti!llMlol: Wt IQIre II1t klI«eIt!:M’aeoo ‘fC1I foo::IXrII by W10
110! i11Il!’IlIWi 10 1M ‘1\WIQ1 dilvbllJlC!’tI\’<IXNJ:rK1n\ \’dUl!bj~lI!IIt~, To gIt
Ihl’lI’!I’IOI dI~ blW,’ WI tile 1111 bejlnh;j bllwl::l rJ)roI Acl:1iOOt 11th dr{, add . IfI/ IIIW~,
cf1Ig8G WId oIltr Jeer, trJd IItIncI flI/ pl\ll1ll“lS !’i eII!II, i’tIttIIAI I1bIIct ill DO’raI
P!Ilodc illJt::rMf beIlw irl lWiId frMI (Ii cictIIII:x1 tllIi!’lY!IrlQl :
IilYlllarte’lI’IIIlhItflVloIoIWIllhI..,oIH11 OIfM’1PIJild. m.\tI’OG(I~dlllf :
bIInc!,111fI1W1JddI1JJIIl1Idltj~for~bllilJCjt!ea’l!fcl’.ti!lIi!!dd1tl1’lf romltof dl\’llIIfll
bll’lgcr,dt. 7I’h!J/I1I us 1fil’~d~Il*I1’ lbl ·VulU!l 11”: VOlt MooaI ~ 11411 ~ 24,Q’)%, WicIl
tM’lfjllil:dJ \0  •  1I’I.~lrIldIclllllrJ2.07~%,1IiIJc’m!\""'~I*, WbM JiIIIItIt CN1gH Itlln 10
AcenIe: bIN tI!Jo’gM ~ kIl!iClUIOli ud1 ~ on iii! dilall1t~, 1lt:l\IMr,
HyrlJPlidf1enewbtlM6I1}OO1’prrMJ’ Slaltmlnlb\’ ti1I ~ dill dIIIlhlwn on toe SIlelnlnt.f*1: (I) HJO
O PlY Uta mil bilnee on your cmStlllrnlrtbj’ 111 JlljmeIIIItiI dllt t/IaNn, WI ~11D WnI ~ on
pUtCi1U!! dIi1ng III mmrt W’Il C\I1I, lI1d
12) r ‘/(JIJ _ I pI\I’rWt by l/x! lIf)mItt li:I! dll& _
fI1 \’lI!lI MIlt f1.IIImIrt tIi II. fill tiIIl!III iIIftftJ, WI ‘l1li CldflKJlIjllIInI. of !h. bt
illy ln1W’cLl!ll1t IJIng r.)de, I:t ~ I jIl(I’SIIJIlMtt lIIkcfI.j, 1IIW bIlmi 1I’Il)OO $I
Mtpay1l11t rw IWm 111 jJ by ~’lI PIl!!IIIIt dtf611111i1 pmiaa; ~ tII<1 WI w1t lilt i1!,)Xlimet
c/wgIr an flI/~ Ikrilg t.el:tiTM!bIttg cjtII K’PI Ptl WI!! ilA’IcIlIIOIIIloo ~CtIrrM’t SIIiIIlMI by
Ifil~ tIJe ~*"'1 on U1IICUlItlJrS~ OtIatraI Plt/IJrJc: /diJBt.nI( II ~ tfIlltd l’IiIh ~ mil’ ¢f.
Jl«\ld !MIol\l1tll nil ~ III rtqiWId 1or)’DUI /Xl’dWt. WI cal ‘*’ ‘!lIlmIl’Iriodt’ SM UlIItIe P,..
In III ~ rrcm l\I’kh)lll r/dII!W’ MIl’ lor lie ~1cW1c mIeI ~ ~ kI )’oUr Odmi P!IIld. NtemaWt, )’(Xl
~ cd l0000 ·2M ·2000 I:J 00IaIn 1hI~, lOtI! rum illCflTS: W TICS!IOCUMM FIIR FI/TOOE. USE
ThI111Olict1ekI’JU DluI)\t’I’ rl\tll rnl ~lIIpMdftc tlldl’1hI Fit CdBIq h:~ ‘MIATTO 00 nIX! TIB:
YOO RIll AMISTAKEDH YOIII STATSI!ENl’ ff)’(Xl ti’litlhli! 1r Ii1 erroron)’O!l”.iIIfmfrl, 1IIb UI i:
~CIIId’I i\cDJ!rItSMblr. p,o, 1lax1250, 5tCioll~ MH~#EI2S0. In )’Illrllltlr, 0/11 uI1I1I ~
lrlonnllOil  •  AolKIn/I’lIat_: YO’JI’ 1M fbjfIhtt Ctti~kMtru:mer, , ImIIr AmxrI: n.. rtItr
IrIllUI’II of 1M f!I11dld 6fl’O(, ‘lJIII:r\:&nofp~r)’!lJlhI1kfflrl~lrIl!’I1Ii’on)’lllM’bW.
d!terll!lv.li«you~ I1l4!m1and~\’OObtlW8k~ al11lf(i(d. You rroi cMet UI VIIItIn 00 Mil 11’111 I1!J
II’ft( ~_ 111 ‘fJ¥ I!UmIrt. Voo l1llI! nolJt.}UI of anypoltrlJe/ tnmil’IItftIJ. V,jJ
l113YCdtt,1II.fW)IlIOlWI rlml~ LlI~II1’/~~annl’ll)’(XJmayhl\’elO~fMiJlIJ(.\’I(k1~,
~TlWJ.fWP1!I/AFTER\\UlCEM1yOUR LmElI \\f\loWl~j’lXrl:itt«,\IIIlII!IIIoolY«l~: 1. ti:lO dlj:lof
l’/.C!MrIg )liri!tW, WID t!I)IlIllItWl r&:~Vldyrur lett!!’, ~
IIiInItolelyotlrvllhll’lll~col!1elldthlll!lll’, 2. YMIn 90 dr/I or~\’IXI’I!Itlt, II’! ITXJlIIItw
COI1’eCIth!!IlIY!’i _ why we bWM tiIIltIW!1WI om:/. VhileWlI1’llltQt’AWl!WllrdlhlrlhICilIIntrlMtJ:
 .WlcanOOtIiy!<l~ihllIMUI1Iln~orrcPOl!lIJIl.~  •  The ch&f~ 11 ~ rrIY rB!i11il on )’CIt
~III/1’11n1, II1d VIII1Ilj’ eor/ilU!liD chIITIe )’Ill IrmlloollIllmouri,
‘l\11IfyoudDnDthrillOfB’ftilllll“dlltnl!\lll6lnr)’OU1I’I mlporRltforl’lf~ of yrw 1IMnc1, , Wt
CMIJW/i 111’/ IJ1!IIId al!Ylln IQI01K your crcdi: idt. I/II WI fWlh IItt klllltIOlIDn. one oIlWl
rt.ga v.t hIt\lM: , r we mt:Jt I mliw: You v.iI oot I1l\I! III pay thl1i’1rAlnt In ~ or any i1\foW
or r:I\Irfllllr!lltrJIo1l1&tMl:l.Kl!, , r II! OJ not ilIiIIYt Ibn Will miIIIIt: You wII hilt 10
PI’! ihlllllXlnt k1 qI*IIln. ilI“IllI«h~ i1Inct WId ftec, Wtllilltlldyou 1.1IIlI!’l of lie
M’rO!I’t1’lu DWlIIOO the ~ flIj’I11eI’iIlI dill, Wt fl1I\’ ~ Iopot! \IIU M dOilquent I ‘PJ do Illt
fJIf ihllmmwe trtyou owe. H)OO rQ/IllIJ(~rnIIln IlIA II bIiI!’iI ‘fI’JX~ 11~,)IlI all!’M
lIJLlliwll1l!1 10 ~ IeIi’9 UlItiIt)OO 111110 pI’f,’’PIOOIO, WI tlWYIOIl1!IOl!)OOMd!&1qutnt
\IAlflOl(1ItO~U1lI\’OOn~al’Xl’bl.Wtnu(ItJII)IlIl1IIl1ImloI~
IIlI’t41lWfrt[Xrtld\’Oll.~arrdWll!Mlll\ltfl1Olf(JI~IrraIt1I1t f1Ibr htI b««r 1I1kll!th1t«r!l. “we
rkl noIilIowliortill ,*i».t,)OO do !’Ill liM 10 pl’fl1ll !I1t$50 oIltremiOOX )Ill.pdn Ml ~}OOI“bI ~
CGII’ecL YlUIlI5IIiSlFlW ME OISSATlSfItl YI1TH YOIIII C~EOO’ CARD MCIW!S 1)00 UN)OO’CIrd to
Irrlkujl!1t’/llll ~dyau .. iItIaIIIId 1\11111 ~ ~_ U1Il )001I!l’III!, you lIllY ftM l1f~mt 111 ~
IhIIIIIDUI1IOII1f dill 00 It1I piITJIuf, TO!lli1k~ alclf1e~ milt III WI: 1,
1l1Ipm:lMmwthM~lIInulnj\lll’
mSlateorllllhitl00mil!lalyouramn! mllrQlCbI, Ild 1II~p:lc1 ulMbetn mom
Iw1$OO, f/o!e: Hlttrof lhMtl’l~f)’Oll,am:l1l8l1tSl»Iedon"'~WlI1’IIIedk1j11lJ,cr
Y\\l1l¥tll11l~thltlDi:l)OOl1e~orwklll 2. VoollllCtl’M !II!d)OOl’CfIdI Qn1 forUII (JJIdliH. 3. Yoo
rMttu r.It)’tlt It{)lIkI1or h /UdlIIe. r:.l of IhI etlllil aIloYt .. met ltd)lll iI’I ttl ~ ‘NIh
1111 \XIthIIIr C!:dIJ:t us It! ~ It ~ crnJtAca7JIISIrkN, P,O, 1laX1200, SlCIroIf. MIl U5-121i1l,
\1!1IIe”,,~, i1eJlllllUMlIWlo III IIIpJlliamM!l IItbelaId _ )1M ‘At ~1l1 oork’HtlllQlIoIl,
WlYllllllyooOll’dIdIIon. Atlhi: paint. WWI liiIyou OWl III 1l’Mt.-.d JOO do not PlY WI IN\’
I’IjIII\ jIIlJ If ~ 11110 iIIIIdenII: Tht Ctia 1M IJ1IirrII dIcil!1llllkn rllQlil1ll1t II adoa _
aedII ... 10 JI ~ clMlllmer.,1ld liWl:adJ1lllXti1!lIC,’l’dq lR,*” Ief.WIII;ft crtdt IiIilrIet 111
IJIlh ~ ~ llqUIII. ‘lI1I ChIc CiIt ~ Ctrm’iIIb1 adInnIII!rt~llIt11lt11l&w, MInItd WtlOGtllkl
RIIi:IIIIt: ~ tll\’MIiIn ~ 11/ d projlIItf 1QI’!tI1’6k, unIIIII1I IQI’IIItIInI. orwt
altldllllt’lmllll’. MOl P_Id.’IIIrJMrllljllllctl t’A’IdIY’. Wntlllllllt!!’loril 1111 tlmectdil
P’i’d, 111 Ct’dY11 rtmitId I cqJ’/rJ VlllJOMI’IIIII orcllttlliris glIen~l!#c(m*, mJth~ 1Id!cM AI
ace., IncIiIdIJ!g HrN YotkI1IfwJI iflndNlIlI’IIIIII: iIIIIdIIIII: You iI,\’M 10 QM MetIBri ~ 10 mil
y.\\r mt raptrt 11 tmdJn ilftI IYIlllndn, ortxlenll:r101crd,arrdcnt1~,.,forll1tr.u\1r:l!lol~\WkCNt,
~ 111 crd IInI 011 \W kcoUrt, tllq ctrldn xlix! on yrur II:X:Wlt. Ii’ Jar QIJf 4f11r,,1XiTM
artIUdvMrlW 1I:caurt l.jJQri lW~ JOO ‘1M t!t IdollTllld oIlMw« noll CIX“MI’~~WU oo1nI.l’/J K ~WIf,
11M! Wlllt q/ItlT N RIM ltd ltlt:tI5 ot ~ tMlIXI1lf’ ~ Ig«I:’f hi UrrIIhId I1ll11Mrl.
/l!Y/YCJk~C!1G1l1la:tl1llWrYOO!SI.!IJ~~l-alO-518o/l81!l8, ClM4mfI MIl tXlh Rakl«!!J:,t,c,..by w,
jIIlJ art ~nof!11! Ilata ~ c~ilrlfll’,rt IWcUng on jW’crdrmnJ II1IY III ~ 101
crodlll!lOliWJt;IrflGjIW yrufllllOftIIIIl1IIlImrld)\lll’crd~ TIJ!II AeIIdInb: To r.mll:t UJ i100t
Ii~ nMI ell 1#E~#E200-2500, ‘/IX cantrla! ~ _ kll!IX’Ie oc i’I pIlt 10 Telet II1II wl*h Ie IIiorUd
1tI1111 ~ Oldl eom”,’IIIooer, 2601 NMI1 ~ 1lMwnI. Mil’, TIlIIf 7870501207. I’11anI: IllOOl
fm1l-157l1: nwi’trM s!aIe ‘Xg!, G!’it1Ct 11! ~J’lQII/e in;rtf ~!’i ~. Ccmtnl ~ IJIe III
TtI!J;!allllIiHaIIIrI: Y!JJ ~ ttWltInlin recllWV CiII *“II f11I!IQ;1II. ~~:I’1dr.mcollld
l11ItIIOIah,lmn~ II« .. ~, ITllIkeIi1g pmn. 1gerit ftI aIlerl  •  Jt Ill! rlqlillt II 1111 Ill! W, It
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FINGERHUT.COM

Online Privacy Policy

Effective Date: November 1, 2009

Welcome to Fingerhut.com (this “Site”).

Fingerhut (“we,” “us,” “our,” and “Fingerhut”) cares about your privacy. We value your trust and
will work hard to earn and keep it.

As part of our commitment to your privacy, Fingerhut adheres to the guidelines and practices of the
Direct Marketing Association’s “Privacy Promise to American Consumers.” We have agreed to

	•	 	provide you with notice of how to opt out of having your personal information shared with other
direct marketers,
	 
	•	 	honor your requests not to share your personal information with other direct marketers, and
	 
	•	 	honor your requests not to receive mail, telephone, email or other solicitations from Fingerhut
or our marketing partners.

Scope of This Privacy Policy

This Online Privacy Policy (this “Privacy Policy”) covers all of the “personal information” we
collect through this Site, except the information you provide when you apply for a
MetaBank/Fingerhut Credit Account. The personal information you provide when you apply for a
MetaBank/Fingerhut Credit Account is collected on behalf of MetaBank and is covered by MetaBank’s
privacy policy. For more information, click here.

What is Personal Information?

“Personal Information” is information that identifies you personally, either alone or in
combination with other information available to us. Examples of personal information include your
name, address, email address, credit card information, and the information you provide when you
make a purchase.

Your Consent

PLEASE TAKE A FEW MINUTES TO REVIEW THIS PRIVACY POLICY. BY ACCESSING OR USING THIS SITE YOU
ARE CONSENTING TO THE COLLECTION, USE AND DISCLOSURE OF YOUR PERSONAL INFORMATION AS SET FORTH IN
THIS PRIVACY POLICY.

If you do not consent to the collection, use and disclosure of your personal information as set
forth in this privacy policy, please do not use this site.

This Privacy Policy is Part of Our Terms of Use

This Privacy Policy is incorporated by reference and is part of the Fingerhut Terms of Use (“Terms
of Use”) governing your use of this Site. Our Terms of Use contain the terms on which you may
purchase products and services through this Site. Please take a few minutes to review our Terms of
Use, if you have not already done so. You may access the current version of the Terms of
Use at any time by clicking on the link marked “Terms of Use” at the bottom of each page of this
Site.

This Privacy Policy May Change

We reserve the right to update or modify this Privacy Policy, at any time and without prior notice,
by posting the revised version of this Privacy Policy on this Site. These changes will only apply
to personal information we collect after we have posted the revised Privacy Policy. Your use of
this Site following any such change constitutes your agreement that all personal information
collected from or about you through this Site after the revised Privacy Policy is posted will be
subject to the terms of the revised Privacy Policy. For this reason, it is important to review this
Privacy Policy regularly. If we modify this Privacy Policy, we will provide a notice at the top of
this Privacy Policy for at least 30 days after the new effective date.

You may access the current version of this Privacy Policy at any time by clicking on the link
marked “Privacy and Security” at the bottom of each page of this Site. For your convenience, we
post the effective date of this Privacy Policy at the top of this page, so that you can see at a
glance whether this Privacy Policy has changed since your last visit.

 

 

Privacy Notices

This Privacy Policy may be supplemented or amended from time to time by “privacy notices” posted on
this Site. Generally, privacy notices provide details about the personal information we collect on
particular pages or particular areas of this site, why we need that information, and choices you
may have about the ways we use that information. Our privacy notices are part of this Privacy
Policy.

Agreements Governing Specific Features and Password-Protected Areas of This Site

This Privacy Policy may be supplemented or amended by special terms and conditions governing
specific features or password-protected areas of this Site. When you sign up to use a special
feature or password-protected area. you may be asked to agree to special terms governing your use
of the special feature or password-protected area, In such cases, you will be asked to expressly
consent to the special terms, for example, by checking a box or clicking on a button marked “I
agree.” This type of agreement is known as a “click-through” agreement. If any of the terms of the
click-through agreement are different than the terms of this Privacy Policy, the terms of the
click-through agreement will supplement or amend this Privacy Policy, but only with respect to the
matters governed by the “click-through agreement,”

Separate Privacy Policies Governing MetaBank/Fingerhut Credit Accounts

All Account Holders. Please be aware that the personal information you provide when you apply for a
MetaBank/Fingerhut Credit Account is collected for MetaBank, the initial creditor, and is not
covered by this Privacy Policy. If you apply and are approved for a MetaBank/Fingerhut
Credit Account, we will provide you with a separate copy of the MetaBank privacy notice describing
how MetaBank collects, uses, shares and protects the personal information collected in connection
with your MetaBank/Fingerhut Credit Account. To review MetaBank’s current privacy notice, click
here.

If your MetaBank/Fingerhut Credit Account is approved, Fingerhut will acquire and service your
account. We will provide you with a separate notice (our “MetaBank/Fingerhut Credit Account Privacy
Policy”) describing how we collect, use, share and protect the personal information we collect in
connection with your MetaBank/Fingerhut Credit Account (your “Credit Account Information”). Your
Credit Account Information may include your name and contact information, information about your
credit history and credit scores; and information about your account balances and payment history.
Our MetaBank/Fingerhut Credit Account Privacy Policy also describes the choices you have about the
ways we use and share the personal information we collect in connection with your
MetaBank/Fingerhut Credit Account. If any of the terms of the MetaBank/Fingerhut Credit Account
Privacy Policy are different than the terms of this Privacy Policy, the terms of the
MetaBank/Fingerhut Credit Account Privacy Policy will supplement or amend this Privacy Policy, but
only with respect to the personal information we collect in connection with your Credit Account
Information. To review our current MetaBank/Fingerhut Credit Account Privacy Policy, please click
here.

California Residents. If you are a California resident, we will send you a California Privacy
Statement when you open a MetaBank/Fingerhut Credit Account. Our California Privacy Statement
describes some of the choices you have about the ways we share your personal information. If any of
the terms of our California Privacy Statement are different than the terms of this Privacy Policy
or the MetaBank/Fingerhut Credit Account Privacy Policy, the California Privacy Statement will
govern. To view our current California Privacy Statement, please click here.

Vermont Residents. If you are a Vermont resident, we will send you a Vermont Privacy Statement
when you open a MetaBank/Fingerhut Credit Account. Our Vermont Privacy Statement describes some of
the choices you have about the ways we share your personal information. If any of the terms of our
Vermont Privacy Statement are different than the terms of this Privacy Policy or the
MetaBank/Fingerhut Credit Account Privacy Policy, the Vermont Privacy Statement will govern. To
view our current Vermont Privacy Statement, please click here.

What Personal Information Does Fingerhut Collect Through This Site?

Information You Volunteer. We collect the personal information that you knowingly and
voluntarily provide when you use this Site, for example, the information you provide when you
request information about products or services, request a catalog, purchase a product or service,
contact us regarding a purchase, or enter a contest or promotion. This information may include
your name, shipping/billing address, email address, phone number, credit card information, Social
Security number, birth date, gender, occupation, personal interests, and information used to
verify your identity or for fraud prevention purposes. Whether to provide such information is
completely your own choice, But if you choose not to provide the information we request, you may
be unable to purchase products, or access certain services, offers and content on this Site.

Supplemental Information. To serve you better, we may combine information you give us through
our catalogs with the information we collect through this Site. We may also supplement the
information we

 

 

collect through this Site with information that is publicly available (such as information based on
your zip code) and information we receive from or cross-reference
with our Marketing Partners. We
may also collect information regarding payment on your MetaBank/Fingerhut Credit Account. When you
apply for credit on this Site, personal information may be obtained about you from credit bureaus.
To learn more about the ways we protect your privacy in association with your MetaBank/Fingerhut
Credit Account, click here.

Information Sent to Us by Your Web Browser. We collect information that is sent to us
automatically by your Web browser. This information typically includes the IP address of your
Internet service provider, the name and version of your operating system, the name and version of
your browser, the date and time of your visit, and the pages you visit. Please check your browser
if you want to learn what information your browser sends or how to change your settings.

This information does not identify you personally. If, however, you have created a user identity on
one of your visits to this Site (for example, by making a purchase), we may link the information
provided by your browser to information that identifies you personally and use it for the purposes
described below. In addition, we may review our server logs for security purposes, such as
detecting intrusions into our network. If we suspect criminal activity, we may share portions of
our server logs — which contain visitors’ IP addresses — with the appropriate investigative
and/or law enforcement authorities who may use that information to trace and identify individuals.

Information Collected Using Cookies and Similar Technologies. We use “cookies” and similar
technologies, such as Web beacons (also referred to as “GIF files,” “pixels,” or “action tags”), to
collect information and support certain features of this Site. For example, we may use these
technologies to

	•	 	collect information about the ways you use this Site — which pages you visit, which links you
use, and how long you stay on each page;
	 
	•	 	support the features and functionality of this Site — for example, to track the items you add to
your shopping cart or to track your order;
	 
	•	 	save you the trouble of reentering information already in our database or to prompt the settings
you established on previous visits to this Site;
	 
	•	 	personalize your shopping experience;
	 
	•	 	manage and determine the effectiveness of our advertising campaigns; and
	 
	•	 	provide Web site security.

Generally, the information we collect using these Web technologies does not identify you
personally. If, however, you have created a user identity, for example, by applying for credit, we
may link the information we collect using Web technologies to other information that identifies you
personally.

If you do not wish to receive cookies, you may set your browser to reject cookies or to alert
you when a cookie is placed on your computer. You may also delete our cookies as soon as you leave
a site. Although you are not required to accept our cookies when you visit this Site, if you set
your browser to reject cookies, you will not be able to use all of the features and functionality
of this Site.

Our marketing and advertising consultants also use cookies and other Web technologies to
collect information about visitors to this Site. To learn more, click here.

How Does Fingerhut Use Your Personal Information?

Generally. We use the personal information we collect through this Site

	•	 	to provide the products, information and services you
request;
	 
	•	 	for security, credit or fraud prevention purposes;
	 
	•	 	to provide you with effective customer service;
	 
	•	 	to provide you with a personalized experience when you use
this Site;
	 
	•	 	to display personalized advertising when you visit this Site;
	 
	•	 	to contact you with special offers and other information we believe will be of interest to you
(but only with your permission);
	 
	•	 	to contact you with information and notices related to your use of this Site;
	 
	•	 	to invite you to participate in surveys and provide feedback to us;
	 
	•	 	to better understand your needs and interests;

 

 

	•	 	to improve the content, functionality and usability of this Site;
	 
	•	 	to improve our products and services;
	 
	•	 	to improve our marketing and promotional efforts; and
	 
	•	 	for any other purpose identified in an applicable privacy notice or other agreement between Fingerhut and you.

To learn more about the choices you have about the ways we use your personal information, please
click here.

How Does Fingerhut Share My Personal Information?

Service Providers. We share personal information with companies and organizations that perform
services on our behalf, for example, companies that provide support services to us (such as credit
card processing services, data storage services, and web hosting services) or that help us market
our products and services (such as third-party email marketing companies). These third parties are
required by contract to use the personal information we share with them only to perform services on
our behalf and to take commercially reasonable measures to protect the confidentiality and security
of your personal information.

With Our Marketing Partners. From time to time we may establish a business relationship with
other third parties whom we believe trustworthy. These are known as our “Marketing Partners.” In
such cases, we may share and cross-reference information, including some personal information about
you, so that our Marketing Partners can contact you regarding products and services that may be of
interest to you. If you do not want us to share your personal information with our Marketing
Partners, you may “opt-out” at any time using one of the methods described below.

With Our Affiliates. We may share the personal information we collect through this Site with
our affiliates so that they can contact you regarding products and services that may be of interest
to you. If you do not want us to share your personal information with our affiliates, you
may “opt-out” at any time using one of the methods described below.

Business Transfers. Your personal information may be transferred to a company that has acquired the
stock or assets of Fingerhut or one of our businesses, for example, as the result of a sale,
merger, reorganization or liquidation. If such a transfer occurs, the acquiring company’s use of
your personal information will still be subject to this Privacy Policy and the privacy preferences
you have expressed to us.

Compliance With Laws and Protection of Our Rights and the Rights of Others. We may disclose
personal information when we, in good faith, believe disclosure is appropriate to comply with the
law, a court order or a subpoena. We may also disclose personal information to prevent or
investigate a possible crime, such as fraud or identity theft; to enforce or apply our online terms
of use or other agreements; or to protect our own rights or property or the rights, property or
safety of our users or others.

As Described in a Privacy Notice. We reserve the right to disclose your personal information as
described in any privacy notice posted on the Web page (or area) where you provide that
information. By providing your personal information on that Web page you will be consenting to the
disclosure of your personal information as described in that privacy notice.

As Described in Any Other Agreement Between You and Fingerhut. We reserve the right to disclose
your personal information as described in any click-through agreement or any other agreement
between you and Fingerhut.

Your Choices

In General. We respect your right to make choices about the ways we collect, use and disclose your
personal information. In most cases, we will ask you to indicate your choices at the time
we collect your personal information. We will also include an “opt-out” link in newsletters or
promotional emails we send you so that you can inform us that you do not wish to receive such
communications from us in the future. If you have created an account or a personal profile
on this Site, you may be able to update some or all of your privacy choices by changing the
settings on your account settings or profile page.

Direct Marketing. We want to communicate with you only if you want to hear from us. You have the
choice to be excluded from our offers and promotions and to be excluded from sharing personal
information with our affiliates or Marketing Partners. If you choose not to receive
information from us or do not want us to share your personal information with our affiliates or
Marketing Partners, please let us know by calling us at

 

 

1-800-208-2500 or by sending us an email at customerservice@fingerhut.com. Please be
sure to include your email address, full name, and specifically what information you do not want to
receive, such as “no phone offers”, “no mail offers”, “no email offers”, or “no sharing of
information with Marketing Partners.” DO NOT include your Social Security number or account number
in the email, but DO provide us with your 10 digit customer number. We will respond to reasonable
requests within a reasonable time and, in any event, within the time period required by law.

Even if you ask us not to share or use your personal information for direct marketing purposes, we
may still use your personal information in connection with the proper administration and management
of your MetaBank/Fingerhut Credit Account. In addition, when you purchase from us online or through
our catalogs, we may need to contact you via phone, email or mail to address questions specific to
your order, even if you have opted to not receive marketing communications.

How Can You Update or Correct Your Personal Information?

If you wish to update or correct your personal information, please let us know by calling us at
1-800-208-2500 or by sending us an email at customerservice@fingerhut.com. Please be sure
to include your email address, full name, and specifically what information you would like to
update or correct. If you contact us by email, DO NOT include your Social Security number or
account number, but DO provide us with your 10 digit customer number.

Use of Cookies, Web Beacons and Similar Technologies by Third Parties

Marketing Consultants. Our marketing consultants may use Web beacons, cookies and other Web
technologies to collect information about visitors to this Site. For example, our consultants may
count how many visitors access this Site, what links they use, and what pages they view. They may
also track which Web sites and advertisements refer traffic to this Site and the URLs of the sites
to which this Site refers traffic (that is, the Web sites on which our visitors land when they
leave this Site). Our consultants use this information to compile statistics and prepare reports
that provide the feedback and analysis we need to understand the needs and interests of our
visitors, improve the content, functionality and usability of this Site, and improve the
effectiveness of our advertising and marketing efforts. The information our consultants collect
does not identify you personally.

Advertising Companies. We use third-party advertising companies to manage our online advertising
campaigns. These advertising companies use cookies and other Web technologies to target and measure
the effectiveness of the advertisements. For example, these advertising companies place Web beacons
on their clients’ Web sites, including this Site, When you visit these Web sites, the Web beacon
“tags” your computer with a “cookie”. The information stored on the cookie does not identify you
personally and is not combined with any information that identifies you personally, but it does
permit our advertising companies to recognize your computer when you access one of their clients’
sites. These advertising companies use the information they collect about your use of their
clients’ Web sites to customize the advertisements you see when you visit their clients’ sites. Our
advertising companies’ use of cookies and other web technologies is covered by their privacy
policies, not by this Online Privacy Statement. If you do not wish to receive our advertising
companies’ cookies, you may “opt-out” by using the following link and clicking the
“SELECT ALL” button on the opening page: http://www.networkadvertisinq.org/managing/opt out.
asp

Protecting Children

Our website is not focused on marketing or attracting minors and we do not knowingly collect
personal information about anyone under the age of 18. Anyone under the age of 18 should not use
this Site unless supervised by an adult. Our goal is to comply with applicable laws and
regulations relating to collection and use of information from children, including the federal
Children’s Online Privacy Protection Act. If you believe that we have received information from a
child, please notify us immediately by calling us at 1-800-208-2500 or by sending us an email at
customerservice@fingerhut.com , and we will take reasonable steps to remove that
information from our database.

Children under the age of 13 should always ask their parents or guardians for
permission before providing any personal information to anyone online.

Security and Confidentiality

In General. We take commercially reasonable administrative, physical and technological security
measures to protect your personal information from unauthorized access, unauthorized use, and
unauthorized or accidental destruction, modification or disclosure. Although we take commercially
reasonable precautions to provide a level of security appropriate to the sensitivity of the
personal information we collect, we cannot guarantee the security of information provided over the
Internet or stored in our databases.

 

 

Password Protected Areas of This Site. For your protection, certain areas of this Site are
password protected. You are responsible for maintaining the confidentiality of your passwords. We
have the right to assume that anyone accessing this Site using a password assigned to you has the
right to do so. You will be solely responsible for the activities of anyone accessing this Site
using a password assigned to you, even if the individual is not, in fact authorized by you. If you
have reason to believe that your password has been compromised or used without authorization, you
must promptly change it using the functionality provided on this Site.

Do Not Use Emails to Communicate Sensitive Personal Information. Never provide sensitive personal
information (for example, your Social Security number, driver’s license number or credit card
information) to us via email. Use the appropriate areas of this Site to communicate this
information or contact us by telephone with your 10 digit customer number.

Links to Other Fingerhut Web Sites

Fingerhut operates other Web sites, each with its own content, features, and functionality.
Each Fingerhut site serves a different purpose. For this reason, not all of our sites are governed
by this Privacy Policy. When you use a link on this Site to access another Fingerhut Web site,
please take a minute to review the privacy policy posted on that site.

Links to Third Party Sites

This site may contain links to Web sites operated by other companies, including websites operated
by our third-party service providers, our Marketing Partners, and other third parties. This Privacy
Policy does not apply to personal information collected on any of these third-party sites. When you
access third-party sites through a link on this Site, please take a few minutes to review the
privacy policy posted on that site.

Governing Law

This Privacy Policy is governed under the laws of the State of Minnesota without regard to its
conflicts of law provisions.

Interpretation

As used in this Privacy Policy, the word “including” means “including, without limitation.”

Contact Us

If you have questions about this policy or our privacy practices,
please email us at customerservice@fingerhut.com and write “Privacy” in
the subject line or write us at:

Fingerhut

6250 Ridgewood Road

St. Cloud, MN 56303

Attention: Privacy and Security

 

 

rev. 11/09

	 	 	 

	FACTS

	 	WHAT DOES FINGERHUT DO
	 

	 	WITH YOUR PERSONAL INFORMATION?
	 
	 	 
	Why?

	 	Financial companies choose how they share your personal information. Federal law gives
consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we
collect, share, and protect your personal information. Please read this notice carefully to understand
what we do.
	 
	 	 
	What?

	 	The types of personal information we collect and share depend on the product or service you have
with us. This information can include:
	 
	 

	 	  •   Social Security number and income

	 
	 

	 	  •   account balances and payment history

	 
	 

	 	  •   credit history and credit scores

	 
	 

	 	When you close your account, we continue to share information about you according to our policies.
	 
	 	 
	How?

	 	All financial companies need to share customers’ personal information to run their everyday
business—to process transactions, maintain customer accounts, and report to credit bureaus. In the
section below, we list the reasons financial companies can share their customers’ personal
information, the reasons Fingerhut chooses to share, and whether you can limit this sharing.

	 	 	 	 	 
	Reasons
we can share your personal information
	 	Does Fingerhut share?
	 	Can you limit this sharing?
	For our everyday business purposes—

	 	Yes
	 	No
	to process your transactions, maintain your account, and
report to credit bureaus
	 	 	 	 
	 
	 	 	 	 
	For our marketing purposes —

	 	Yes
	 	Yes (Check your choices, p. 3)
	to offer our products and services to you
	 	 	 	 
	 
	 	 	 	 
	For joint marketing with other financial companies

	 	Yes
	 	Yes (Check your choices, p. 3)
	 
	 	 	 	 
	For our affiliates’ everyday business purposes—

	 	Yes
	 	No
	information about your transactions and experiences
	 	 	 	 
	 
	 	 	 	 
	For our affiliates’ everyday business purposes—

	 	No
	 	We don’t share
	information about your creditworthiness
	 	 	 	 
	 
	 	 	 	 
	For our affiliates to market to you

	 	Yes
	 	Yes (Check your choices, p. 3)
	 
	 	 	 	 
	For nonaffiliates to market to you

	 	Yes
	 	Yes (Check your choices, p. 3)

	 	 	 

	To limit our sharing

	 	  •   Visit us online: www.fingerhut.com/privacy

	 

	 	  •   Mail in the form below

	 

	 	Please note:
	 

	 	If you are a new customer, we can begin sharing your information 30 days from the date
we sent this notice. When you are no longer our customer, we continue to share your
information as described in this notice. 

However, you can contact us at any time to limit our sharing.

	 
	 	 
	Questions?

	 	Email us at customerservice@fingerhut.com

Mail-in Form

Mark any/all you want to limit:

	 	 	 	o     Do not use my personal information to market Fingerhut products to me.
	 
	 	 	 	o     Do not allow your affiliates to use my personal information to market to me.
	 
	 	 	 	o     Do not share my personal information with nonaffiliates to market their products and services to me.
	 
	 	 	 	 o    Do not share my personal information with other financial institutions to jointly market to me.*

	 	 	 	 	 

	Name

	 	 	 	Mail to:

	Address 

	 	 	 	Fingerhut
	 

	 	 	 	6250 Ridgewood Road
	City, State, Zip 

	 	 	 	St. Cloud, MN 56303

	Customer #

	 	 	 	Attn: Privacy and Security

Page 1 of 2

 

rev.11/09

Page 2

Who we are

	 	 	 

	Who is providing this notice?

	 	Fingerhut
	 
	 	 
	What we do
	 	 
	 
	 	 
	How does Fingerhut protect my
personal information?

	 	To protect your personal information from unauthorized access and use, we use
security measures that comply with federal law. These measures include computer
safeguards and secured files and buildings.
	 
	 	 
	How does Fingerhut collect my
personal information?

	 	We collect your personal information, for example, when you
	 

	 	  •   open an account

	 
	 

	 	  •   pay your bills

	 
	 

	 	  •   use your debit or credit card

	 
	 

	 	  •   give us your contact information

	 
	 

	 	  •   pay us by check

	 
	 

	 	We also collect your personal information from others, such as credit bureaus,
affiliates, or other companies.
	 
	 	 
	Why can’t I limit all sharing?

	 	Federal law gives you the right to limit only:
	 
	 

	 	  •   sharing for affiliates’ everyday business purposes-information about your
creditworthiness

	 
	 

	 	  •
  affiliates from using your information to market to
you

	 
	 

	 	  •
  sharing to nonaffiliates to market to you

	 
	 

	 	State laws and individual companies may give you additional rights to limit sharing.
	 
	 	 
	What happens when I limit

	 	Your choices will apply to everyone on your account.
	sharing for an account I hold
	 	 
	jointly with someone else?
	 	 
	 
	 	 
	Definitions
	 	 
	 
	 	 
	Affiliates

	 	Companies related by common ownership or control. They can be financial and
	 

	 	nonfinancial companies.
	 
	 

	 	  •   Our affiliates include nonfinancial companies, such as order fulfillment
companies.

	 
	 	 
	Nonaffiliates

	 	Companies not related by common ownership or control. They can be financial and
	 

	 	nonfinancial companies.
	 
	 

	 	  •  Nonaffiliates
we share with can include direct marketing companies.

	 
	 	 
	Joint Marketing

	 	A formal agreement between nonaffiliated financial companies that together market
	 

	 	financial products or services to you.
	 
	 

	 	  •  
Our joint marketing partners can include insurance companies.

	Other important information
	 	 
	None.
	 	 

Page 2 of 2

 

CALIFORNIA PRIVACY STATEMENT

IMPORTANT PRIVACY CHOICES FOR CONSUMERS

You
have the right to control whether we share some of your personal
information.
 Please read the following information carefully
before you make your choices below.

Your Rights

You have the following rights to restrict the sharing of personal and financial
information with our affiliates (companies we own or control) and outside companies that we do
business with. Nothing in this form prohibits the sharing of information necessary for us to follow
the law, as permitted by law, or to give you the best service on your accounts with us.
This includes sending you information about some other products or services.

Your Choices 

Restrict Information Sharing With Other Companies Fingerhut Owns or Controls (Affiliates): Unless
you say “NO ”, we may share personal and financial information about you with our affiliated
companies.

	o	 	NO, please do not share personal and financial information about me with your
affiliated companies.

Restrict Information Sharing With Other Companies Fingerhut Does Business With To Provide
Financial Products And Services: Unless you say “NO”, we may share personal and financial
information about you with outside companies we contract with to provide financial products and
services to you.

	o	 	NO, please do not share personal and financial information about me with outside
companies you contract with to provide financial products and services.

Time Sensitive Reply 

You may make your privacy choice(s) at any time. Your choice(s) marked here will remain unless
you state otherwise. However, if we do not hear from you, we may share some of your information
with affiliated companies and other companies with whom we have contracts to provide financial
products and services.

Name:____________________________

	 	 	 	 	 	 	 	 	 

	Address:
	 	 	 	 	 	 	 	 
	 	 
	 

	Street Address  
	 	City
	 	State
	 	Zip Code

10 Digit Fingerhut Customer Number: ______________________________

Last Four Digits of Social Security Number: _________

Signature: ______________________________________

Date: ___________________

To exercise your choices, do one of the following:

	(1)	 	Contact us at customerservice@fingerhut.com. Please include your email address, full
name, address and Fingerhut customer number, as well as the request to opt-out of information
sharing as described above.

	(2)	 	Fill out, sign and send this form back to us using the envelope provided (you may want to make
a copy for your records). Mail your request to:

Fingerhut

6250 Ridgewood Road
 St.
Cloud, MN 56303
 Attn:
Privacy and Security

 

PRIVACY NOTICE DISCLOSURE

SPECIAL NOTICE FOR VERMONT RESIDENTS

Financial companies choose how they share your personal information. In addition to the
protections provided by federal law, Vermont law gives you the right to decide whether we may share
nonpublic personal information about you with certain third parties. Vermont law also requires us
to tell you how we collect, share, and protect your personal information. Please read this notice
carefully to understand what we do.

Information We Collect About You

We collect nonpublic personal information about you from the following sources:

	 	•	 	information received from you on applications and other forms;
	 
	 	•	 	information about your transactions with us, our affiliates or others; and
	 
	 	•	 	information we receive from a consumer reporting agency.

Information We Share About You

We may disclose all of the nonpublic personal information which we collect, as described
above.

Parties with Whom We Share Information

We may disclose the nonpublic personal information about you to the following types of third
parties:

	 	•	 	financial service providers (such as insurance agents);
	 
	 	•	 	non-financial companies (such as retailers, direct marketing companies and order fulfillment companies); and
	 
	 	•	 	others (including joint marketing companies).

We may also disclose the information described in this notice to other affiliated or
nonaffiliated third parties, as applicable, as required or permitted by law.

Information We Share to Parties that Provide Services to Us

In order for us to conduct out business and to best serve you, we may disclose all of the
information we collect, as described above, to nonaffiliated third parties (including service
providers that perform marketing on our behalf, such as direct marketing companies) or financial
institutions with whom we have joint agreements for marketing.

Information We Share About Former Customers

When you close your account, we continue to share the nonpublic personal information about
you described above according to our policies.

How We Protect Your Information

We restrict access to nonpublic personal information about you to [our employees who
need to know this information to provide products or services to you]. We maintain physical,
electronic and procedural safeguards that comply with state and federal regulations to guard your
nonpublic personal information.

Your Right to Opt In

We will not disclose nonpublic personal financial information about you to nonaffiliated
third parties (other than as permitted by law) unless you authorize us to make that disclosure.
Your authorization must be in writing or, if you agree, in electronic form. If you wish to
authorize us to disclose your nonpublic personal financial information to third parties, you may
check the box below or complete and sign the form included and mail it to us.

 

Products or Services to Which Your Opt In Right Applies

You have the right to elect that we may share your nonpublic personal
information to our business partners so that those business partners may
market financial products or services which may be of interest to you,
such as insurance.

Revoking Your Opt In Direction

You may, at any time, revoke your election to permit us to share your
nonpublic personal information. To do so, please contact us at
customerservice@fingerhut.com or at the address provided below.

Contact Us

If you have any questions, please contact us by email at
customerservice@fingerhut.com or by mail at:

Fingerhut

6250 Ridgewood Road

St. Cloud, MN 56303

Attn: Privacy and
Security

	 	o	 	I authorize Fingerhut to share my nonpublic personal information as provided in the notice provided to me.

Revocation of Opt In

By mailing this form to you, I (the undersigned) hereby exercise my
right to revoke my election to permit you to share my nonpublic personal
information.

Name: ________________________________

Address: ___________________________________________________________________________

                  Street Address                        City                         State         
                Zip Code

10 Digit Fingerhut Customer Number: __________________

Last Four Digits of Social Security Number: ____________

Signature: _________________

Date: _____________

 

 

	 	 	 

	FACTS

	 	WHAT DOES WEBBANK DO WITH YOUR PERSONAL INFORMATION ?
	 
	 	 
	Why?

	 	Financial companies choose how they share your personal information. Federal law gives consumers the right to limit
some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal
information. Please read this notice carefully to understand what we do.
	 
	 	 
	What?

	 	The types of personal information we collect and share depend on the product or service you have with us. This
information can include:
	 
	 	 
	 

	 	•   Social Security number and transaction history

	 
	 	 
	 

	 	•    Account balances and payment history

	 
	 	 
	 

	 	•    Credit history and credit scores

	 
	 	 
	 

	 	When you are no longer our customer, we continue to share your information as described in this notice.
	 
	 	 
	How?

	 	All financial companies need to share customers’ personal information to run their everyday business. In the section
below, we list the reasons financial companies can share their customers’ personal information; the reasons WebBank
chooses to share; and whether you can limit this sharing.

	 	 	 	 	 
	Reasons we can share your personal	 	Does WebBank	 	Can you limit this
	information	 	share?	 	sharing?
	For our everyday business purposes -
	 	 	 	 
	such as to process your transactions, maintain your
account(s),respond to court orders and legal investigations, or report
to credit bureaus

	 	YES
	 	NO
	 
	 	 	 	 
	For our marketing purposes -
	 	 	 	 
	to offer our products and services to you

	 	YES
	 	NO
	 
	 	 	 	 
	For joint marketing with other financial companies

	 	NO
	 	We don’t share
	 
	 	 	 	 
	For our affiliates’ everyday business purposes -

information about your transactions and experiences

	 	NO
	 	We don’t share
	 
	 	 	 	 
	For our affiliates’ everyday business purposes -
	 	 	 	 
	information about your creditworthiness

	 	NO
	 	We don’t share
	 
	 	 	 	 
	For our affiliates to market to you

	 	NO
	 	We don’t share
	 
	 	 	 	 
	For nonaffiliates to market to you

	 	NO
	 	We don’t share
	 
	 	 	 	 
	Questions? Call (866) 754-4094
	 	 	 	 

 

 

Page 2

	 	 	 

	What we do
	 	 
	How does WebBank protect my personal information?

	 	To protect your personal information from unauthorized
access and use, we use security measures that comply with
federal law. These measures include computer safeguards and
secured files and buildings.
	 
	 	 
	How does WebBank collect my personal
information?

	 	We collect your personal information, for example, when you
	 

	 	•    Open an account or pay us by check

	 

	 	•    Provide account information or give us your contact

information

	 

	 	•    Show your driver’s license

	 

	 	We also collect your personal information from others, such as
credit bureaus, affiliates, or other companies.
	 
	 	 
	Why can’t I limit all sharing?

	 	Federal law gives you the right to limit only
	 

	 	•    Sharing for affiliates’ everyday business
purposes—information about your creditworthiness

	 

	 	•    Affiliates from using your information to market to you

	 

	 	•    Sharing for non-affiliates companies to market to you

	 

	 	State laws and individual companies may give you additional
rights to limit sharing.
	What happens when I limit sharing for an
account I hold jointly with someone else?

	 	WebBank does not offer joint LendingClub accounts.
	 
	 	 
	Definitions
	 	 
	Affiliates

	 	Companies related by common ownership or control. They can
be financial and nonfinancial companies.
	 

	 	•    WebBank does not share with our affiliates

	Nonaffiliates

	 	Companies not related by common ownership or control. They
can be financial and nonfinancial companies.
	 

	 	•    WebBank does
not share with nonaffiliates so they can market to you

	 
	 	 
	Joint marketing

	 	A formal agreement between nonaffiliated financial
companies that together market financial products or services
to you.
	 

	 	•    WebBank doesn’t jointly market

 

 

	C62024—252
35 FINGERHUT. Page 1 of 1
70 Your account is past due. To keep your account in good standing, please mail $13.98 today.
10 01 11 00
Account Summary 14.99 0.00 9.99 8.99
Previous Balance Payments & Credits 0.00
Purchases & Debits Fees Charged Interest
Charged
New Balance  —  33.97
Credit Limit 350.00
Available Credit 316.03
Billing Date 01/06/11
Days in Cycle 31
Past Due Amount 7.99
Total Amount Due 13.98
Interest C            harge Calculal            tion
Type of            Annual Percentage            Balance Subject            Interest
Balance            Rate (APR) to Interest Rate            Charge
Nondeferred 24.90% 25.11 0.00
Payment Information
New Balance 33.97
Minimum Payment Due 13.98
Mail Payment By 01/26/11
Payment Due Date 02/02/11
Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may
have to pay a late fee of up to $30.00,
Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in
interest and it will take you longer to pay off your balance. For example:
If you make no            You will pay off the            And you will end up
additional charges            balance shown on this            paying an estimated
using this card and            statement in about: total of:
each month you pay:
Only the minimum 7 months 40
payment
If you would like information about credit counseling services call 1-888-364-2268 To avoid
additional interest charges, pay the New Balance by the Payment Due Date.
Date            Order Number            Description            Amount
Transactions 12/09/10 000017923351 JUSTFORME16765798DEC 877-397-440 9.99
Fees 01/03/11 Late Fee 7.99
01/06/11 Minimum Interest Fee 1.00
TOTAL FEES FOR THIS PERIOD 8.99
TOTAL INTEREST THIS PERIOD 0.00
TOTAL FEES YTD 2010 8.99
TOTAL INTEREST YTD 2010 0.00
Inquiries Regarding Your Fingerhut Credit Account issued by MetaBank: English: 1 -800-208-2500 En Espanol: 1 -800-556-3208
FINGERHUT            Make payments online at fingerhut.com/MyAccount J
Or tear off and return with your payment by mail. Make your check payable to Fingerhut.
Account Number            MAIL PAYMENT            BY            MINIMUM DUE            New Balance            Amount Enclosed
XXXX-XXXX-XXXX-3046
Customer Number 01/26/11 $13.98 $33.97  —
REPRINT
#BWNHJFS 1001 Make your check payable to Fingerhut and mail to: lll.,,lml,,,llll.,,,,.lll
PO Box 166
l.ll..ll.,..ll.,..l.ll<.l,.ll...l.lml.l. Newark, NJ 07101-0166
EX-10.26  — 2011 0
1 19 -SJ

 

 

IMPORTANT NOTICE

Your payment will be credited to your account on the same day we receive it if the bottom portion
of this statement and your check are received by us on a processing day by 5:00 pm in the enclosed
envelope at our processing center. Payments received after 5:00 pm will be credited on the next
processing day. Please allow at least seven (7) days for postal delivery. Payments received at any
other location in another form or with other documents may not be credited the same day we receive
the payment. Our processing days are Monday through Sunday, excluding holidays for payments
received by mail. Payments received on holidays will be credited as of the previous processing day.
When you send us a check as a payment, you authorize us to use information from your check to make
a one-time electronic fund transfer from your deposit account, or to process the payment as a check
transaction. When we use information from your check to make an electronic fund transfer, funds may
be withdrawn from your deposit account as soon as the same day we receive payment, and you will not
receive your check back from your financial institution. If your check is returned to us due to
non-sufficient funds we may also re-deposit it through a one-time electronic fund transfer. You may
also make a payment at anytime on your Fingerhut Account at fingerhut.com/MyAccount or via
an automated phone payment at 1-800-208-2500. Online and automated phone payments will be posted as
of the same day if made before 11:00 pm.

PAYMENTS

Make checks payable to Fingerhut and mail to:

     Fingerhut Credit Account Services, P.O. Box 166, Newark, NJ 07101-0166

Please write your Fingerhut account number on your check. Do not send correspondence to this
address. Mail your payment in the enclosed envelope with the payment coupon at the bottom of your
statement.

WHAT TO DO IF YOU THINK YOU FIND A MISTAKE ON YOUR STATEMENT

If you think there is an error on your statement, write us at:

     Fingerhut Credit Account Services, P.O. Box 1250, St. Cloud, MN 56395-1250.

In your letter, give us the following information:

	•	 	Account Information: Your name and Fingerhut Credit Account number.
	 
	•	 	Dollar Amount: The dollar amount of the suspected error.
	 
	•	 	Description of Problem: If you think there is an error on your bill, describe what you believe is
wrong and why you believe it is a mistake.

You must contact us within 60 days after the error appeared on your statement. You must notify us
of any potential errors in writing. You may call us, but if you do we are not required to
investigate any potential errors and you may have to pay the amount in question.

While we investigate whether or not there has been an error, the following are true:

	•	 	We cannot try to collect the amount in question, or report you as delinquent.
	 
	•	 	The charge in question may remain on your statement, and we may continue to charge you interest
on that amount. But, if we determine that we made a mistake, you will not have to pay the amount in
question or any interest or other fees related to that amount.
	 
	•	 	While you do not have to pay the amount in question, you are responsible for the remainder of
your balance.
	 
	•	 	We can apply any unpaid amount against your credit limit.

YOUR RIGHTS IF YOU ARE DISSATISFIED WITH YOUR CREDIT PURCHASES

If you use your card to make a purchase and you are dissatisfied with the goods or services that
you receive, you may have the right not to pay the remaining amount due on the purchase.

To use this right, all of the following must be true:

1. The purchase must have been made in your home State or within 100 miles of your current mailing
address, and the purchase price must have been more than $50. (Note: Neither of these are necessary
if your purchase was based on an advertisement we mailed to you, or if we own the company that sold
you the goods or services.)

2. You must have used your card for the purchase.

3. You must have not yet fully paid for the purchase.

If all of the criteria above are met and you are still dissatisfied with the purchase, contact us
in writing at: Fingerhut Credit Account Services, P.O. Box 1250, St. Cloud, MN 56395-1250.

While we investigate, the same rules apply to the disputed amount as discussed above. After we
finish our investigation, we will tell you our decision. At that point, if we think you owe an
amount and you do not pay we may report you as delinquent.

CREDIT BUREAU DISPUTES

If you believe we inaccurately reported credit history information about you or your Account to a
credit reporting agency, call us at 1-866-734-0342 or write to us at: Credit Bureau Reporting
Services, 6250 Ridgewood Road, St. Cloud, MN 56303. Please provide the Fingerhut Credit Account
number along with a copy of your credit bureau report reflecting the information that you believe
is inaccurate.

HOW WE CALCULATE INTEREST CHARGES

To calculate the interest charge payable each month, we multiply the average daily balance times
the monthly periodic rate and, if applicable, add any deferred interest charge (see DEFERRAL
PERIODS). Your Account is subject to a minimum interest charge of $1.00. Average Daily Balance: We
figure the interest charge on your Account by applying the monthly periodic rate to the “average
daily balance” of your Account, including current transactions, To get the “average daily balance”
we take the beginning balance of your Account, each day, add any new purchases, charges and other
fees, and subtract any payments or credits. Purchases subject to Deferral Periods described below
are excluded from our calculation of the “average daily balance” until the day following the
expiration of the Deferral Period. This gives us the daily balance. Then, we add up all the daily
balances for that billing cycle and divide the total by the number of days in the billing cycle.
This gives us the “average daily balance”.

Interest charges begin to accrue on each purchase on the date of the purchase. However, if you paid
the new balance on your previous Statement by the payment due date shown on the statement, then:
(1) if you pay the new balance on your current billing statement by the payment due date shown, we
impose no interest charges on purchases during the current billing cycle, and (2) if you make a
payment by the payment due date shown on your current billing statement that is less than the new
balance, we will credit that payment as of the first day in your current billing cycle. In
addition, if your Statement reflected a new balance and you did not pay that new balance in full by
the payment date on that previous statement, then we will not impose interest charges on any
purchases during the current billing cycle if you pay the balance shown on your current Statement
by the payment due date reflected on that current statement.

DEFERRAL PERIODS

MetaBank may offer Accounts promotional credit offers. These offers include, but are not limited
to, deferred interest offers or reduced payments with deferred interest offers. Special rules apply
to these promotional credit offers, which are described at the time of the offer.

	•	 	The date, amount and description of each purchase are identified on your periodic statement for
the period when you make the purchase.
	 
	•	 	Each periodic statement contains a summary of all active deferred offers, including unpaid
principal balances, any accrued interest charges and the date which the principal balance (New
Balance) of each plan must be paid in full to avoid interest charges in connection with your
purchase.
	 
	•	 	For offers with deferred interest, if you pay the deferred portion on or before the last day of
the applicable deferred period you pay no interest charges in connection with your purchase.
Otherwise, we add a deferred interest charge to your Account on the expiration date.
	 
	•	 	We figure accrued interest charges each month by multiplying the average daily balance of each
deferred balance by the monthly periodic rate.
	 
	•	 	We do consider all deferred purchases for purposes of determining your available credit.

QUESTIONS ABOUT YOUR STATEMENT

E-mail us at customerservice@fingerhut.com

or call 1-800-208-2500 (English) 1-800-556-3208 (En Espaňol)

©Fingerhut 5-060505-000

IMPORTANT! Has your address, phone number, or e-mail address
changed? If so, please fill in any NEW information in the Spaces below
and we will Update your account.

	 	 	 	 	 	 	 	 	 

	Account

	 	 	 	Phone	 	 
	 
	 	 	 	 	 	 	 
	Name
	 	 
	 
	 	 	 	 	 	 	 
	Address
	 	 
	 
	 	 	 	 	 	 	 
	City

	 	 	 	State 	 	 	       Zip   	 
	 
	 	 	 	 	 	 	 
	E-Mail Address
	 	 	 	 
	 	 	Please provide your e-mail address for business transactions.

	 

	 	(We will not send promotional material without your permission.)

	 

	 	o Check here if you’d like to receive e-mails about Fingerhut special deals and events.

 

 

EXHIBIT D-1

Fingerhut FreshStart Credit Account

Terms and Conditions

Account Summary Disclosures

Privacy Policies (see Exhibit D)

Fingerhut Credit Account Billing Statement

See Subsequent Pages

 

 

EXHIBIT D-1 (1) FINGERHUT FRESHSTART INSTALLMENT LOAN TERMS

CREDIT ACCOUNT ISSUED BY METABANK

TRUTH-IN-LENDING DISCLOSURE

	 	 	 

	Creditor: MetaBank,
Sioux Falls, South Dakota
	Borrower Name and Address:
	 	<Firstname Lastname>
	 

	 	<Address Line 1>
	 

	 	<Address Line 2>
	 

	 	<Address Line 3>

	 	 	 	 	 	 	 
		 	 	 	 	 	 
	ANNUAL PERCENTAGE RATE	 	FINANCE CHARGE	 	Amount Financed	 	Total of Payments
	The cost of
your credit as 
a
yearly rate

	 	The dollar amount
the 
credit will
cost you
	 	The amount of
credit provided to
you or on your
behalf
	 	The amount you will have
paid after you have made
all scheduled payments
	 
	 	 	 	 	 	 
	24.90%

	 	<$XXX.XX> (e)
	 	<$XXX.XXX>
	 	<$XXX.XXX> (e)
	 
	 	 	 	 	 	 
	Your payment schedule will be:	 	 	 	 
	 
	 	 	 	 	 	 
	Number of Payments

	 	Amount of Payments
	 	When Payments Are Due	 	 
	 
	 	 	 	 	 	 
	<X> (e)

	 	<$XXX.XX> (e)
	 	Monthly, starting <firstpaymentduedate>

Late
Charge: If a payment is late, you will be charged:

$4.90 if your balance Is greater than $15 but less than or equal to $50

$14.90 if your balance is greater than $50

Prepayment: If you pay off early, you will not have to pay a penalty.

See your contract document for any additional information about
nonpayment, default, any required repayment in full before the scheduled
date, and prepayment refunds and penalties.

(e) means an estimate

Itemization of Amount Financed:

<$XXX.XX>      Amount Financed — paid by MetaBank to Fingerhut (Principal Amount of your Loan)

In some cases, goods and services you order may be shipped at
different times, and will be added to your Loan when shipped. As a
result, your Payment Schedule, your Finance Charge, and your Total of
Payments are estimated.

©Fingerhut 5-060624-000

 

 

	E X HIBIT D-1 (2) FINGERHUT  F RESH START ACCOUNT SUMM A RY  D ISCLOSURES PRESI:nEEll AlID OPT-oUTJlOllC8
111, ‘prescruened’ offer of crudlt I, based on Inlormation In your amort TOporlindic:rting II1atynu
ment“rLlin anteri;. Cmillt may not bo onended if, nflJlr you respimd, It Is determined lITat you do
not meot the “lien, used for ,c”,enlng or ony ollTer ‘pprrc:rble crlinn, beming on
crodilwortliiMSS. II you do nol w’nt In recei~e ple!cruened ollern 01 credit from !his Dr oUrer
CIlmpnnilS, c:rll~, eollSllmer ICporUng agencies at 1-BaB-51JPT ·Our, 1-II1ili-21J.7lfiO,
1-115&-591 ·:1464 and1-!£IH!J(J.1920 orwrita: Equilax op~o” P.o. Box 7~012J, Manlll, GA 30314-0123;
TransUnlon Opt out Re<iues\ P.O. Box 505, Woorlly”, PA 1!IIJ!JHI505; AIlian! ClIDporalive OaLl
Sri/utions, AIIn: Cnlmd, 301 Relds llllll, DreVisler, Iii !0509. Your initial purchase of more than
$50 may be financed by an Installment Loan Agreement between you and MetaB,ml<. This Is not your
complete Installment Loan Agreemen~ It Is only a summary of certain important disclosures. Your
Installmont Loan Agreement will be sent to you. Please read It carelully and keep It for your
records. MetaBanl< may sell, assign or transfer your Installment Loan Agreement or any portion
thereof. Obtaining a Loan: To holp the government fight Ule lunding of terrorism and money
laundering activities, Federal law requires all tTnancial institutions to obtain, verify, and
record information lIlat Identifies each person who opens an account When you obtaIn an Installment
Loan, we will ask for your name. address. date of birth. and other information that will allow us
to Identify you. We may also ask for your driver’s license number or other identifying informalion.
Representative Tenus 01 Gradi!: The Installment Loan Agreement lets you maim your initial purchase
by making a $30 down payment to Fingerhut and 6 law monthly payments on your Loan. The Annual
Percentage Rate is 24.9%. For purchases of $50 and $100. Ihe lollowing credit terms apply; Cash
price $50 $100 Down payment $30 $30 Terms of repayment 6 mantl1ty payments 6 montilly payments of
$3.33 01 $11.66 Lale payment fee: $4.90 if your balance is greater than $15 but less than or equal
to $50; $14.90 il your balance Is greater than ,~50. Returned payment fee: $25. Advertised Prico
per Month: The advertised price per month Is the estimated Initial monUlly minimum payment required
for a single item order. Your actual minimum payment will be calculated at the time of your
purchase and will be disclosed to you with your Installment Loan Agreement. Credit Card Account You
request lIlat we consider you for a revolving Fingerhut Credit Account Issued by MetaBank that you
can use for future purposes, and lIlat we send you a credit card or account number if you am
approved. If you pay off your initial purchase within 6 payments or earlier with no instance 01
late payments, we may Issue a MetaSank! Fingerhut Credit Account to you. However. il you elect to
pay your entire batance due at the same time as your down payment, then this will cancel your Loan
and you may not be eligible to be considered for a MetaSanl<lFingerhut Credit AccoulTl. You may
not be eligible to be considered for a MetaBanklRngerhut Credit Account if you die, file for
bankruptcy, enter a conSUmor credit counseling service program. make any past due payments, or have
any payments rerumed unpaid, or If you enter any other negative credit status. We wi!! send you
your account agreement and imporrnnt disclosures about Ihe MellJSanl<lFingerhut Credit Account
when approved. Below Is a summary of the key credit terms of the Rngerhul Credit Account.
METABANKIFlNGERHUT REVOLVlNGCREOrT ACCOUNT SUMMARY DISCLOSURES .Interest Rates and Interest Charges
‘ .. Annual Percentage Rate 24;90% (APR) for Purchases How to Avoid Paying Your due date is at
least 24 d:rys after Ihe
clost Inlerest of each billing cycle. We will nol chafge you any interest
on purchases if you pay your entire balance by the due date each month. Minimum Inlerost If you are
charged interest the charge will be nr Charge less than $1. 00. For Credn Card Tips To ~am more
about (aclnrs 10 consider when from Ihe Federal app~ing for or using a credit card, visit tlle
Reserve Board website of the Federal ReselVe Board at htlg:flwww.fecteralreserve.govfcreditcarrl.
 .. Penalty Fees , Late Payment  •  Up to $30.00  •  Returned Payment ‘ Up to $30.00 Returned
Merchandise: Your abnlly to relurn any merchandise purchased Is governed by Fingerhut’s relurn
policy. When you refum merchandise. we subtract the return amount ~om your initial purchase amoun~
your payment amount will then remain the same, but you will payoff your Loan earlier. However. if a
retum (or returns) results in a purchase amount of less than S50, you will no longer be eligible
lor consideration for a Angerhut Credit Account issued by MellJBank. II a return (or retums)
results in a credit balance, we will also refund your credit balance. Arbitration: Your Installment
Loan Agreemont will contain a binding arbitration provision. In the event oJ any dispute relaling
to your Agreement, Ihe dispute will be resolved by binding arblt:mlion pursuant to the rules of the
American Arbitration Association. Both you and we 3grae to waive the right to go to court or to
nave the dispute heard by a jury. You and we will be waiving any right to a jury trial and you will
not have the right to partIcipate as part of a class of claimants relating to any dispute wltl1 us.
other rights available to you in court may also be unavailabte in arbitration. When you receive
your Installment Loan AgreemelTl, you should read the arbitration provision In tile Agreement
carefully. Updated Ananeial and otller Information: Upon request, you agree to promptly give us
accurate financial and other inriormation about yourself. CREDIT BUREAU DISPUTES: II you believe we
inaccurately reported credn hIstory information about you or your Loan to a credit reporting
agency, call us at 1-B66-734-0342 or write to us at: Credit Bureau Reporting Services, 6250
Ridgewood Road, St. ClOUd, MN 56303. Please provide the Loan number along with a copy of your
credit bureau report reflecling the Inlormation that you believe is inaccurate. Consent to Use of
Telephono /lumbers: Vou expressly consent to rmessage calls, from MetaBanl<lFingerhut, thelr
affiliates, marketing partners, agents and oUws calling at tllBir request or on their bellalf, at
any telephone numbers Ihat you have provided or may provide In Ihe fulure (Including any cellular
telephone numbers). All borrowers, including New YortC/Rhode IslandlVermont Res!dents: You give
MetaBanl< (as welt as its agents, successors, and assigns) permission to access your credit
report In connection willl any transaction, Dr exlension of credit, and on an ongoing basis, for
the purpose of reviewing your Loan. taking collection action on your Loan, or for any other
legitimate purposes associated with your Loan. Upon your request. you will be Informed of whether
or not a consumer credit report was ordered, and if It was, you will be given the name and address
of the consumer reporting agency that fumlshed the report New York residents may contact the New
York state banking department to obtain a comparative listing of credit card rates, fees and grece
periods, at 1-300-513-8866. Ohio Resldants: The Ohio laws against discrimination require that all
creditors make credIt equally available to all credItworthy cwrtomers, and that credit reporting
agencies maintain separate credit hislDries on each indIvidual upon request Tile Ohio Civil Rights
CommissIon administers compliance with this law. Marrled Wisconstn Resldenls: No proVision of any
marital property agreemen~ unilateral agreement. or court decree under Wisconsin’s Marital Property
Act will adversely affect a creditor’
s Interest unless prior to the time credit is granted, the
creditor Is furnished a copy of tilat agreement or decree or is given complete inriormation about
the agreement or decree. California and Utah Residents: k; requIred by law, you are hereby notified
that a negative credit report reflecting on your credit record may be submitted to a credit
rsporting agency if you fail to fulftll the terms of your credit obligations. receiving calls and
messages, Including auto dialed and prerecorded

 

 

	FiNGERHUT. 3tatemen t  Date  ! \ccount Number Justomer  N umber Payment Info r mati o n : : >ast Due Payment
Amount ~urrent Payment Due Payment Due Date Mail Payment By Total Amount Due Account Information
Monthly Payments Made Out~.~. ,..ling Balance* 09/09/10 $0.00 $11.33 10105/10 09/28/10 $11.33 o
$63.69 *Outstanding Balance is your payoff amount if paid on or before your due date FiNGERHUT
IliUU10itM  • . , Congratulations on your new Fingerhut FreshStart~” Credit Account! This is your
first step toward building your credit with us and an opportunity for a better credit outlook in
general. Monthly Highlights You can elect to receive your statements electronically by visiting My
Account at Fingerhut. com For automatic online payments: visit fingerhut.com/MyAccount For Customer
Service: call1-BOO-20B-2500 for account information, Monday-Friday, 8AM-8PM CT. Or email
atfingerhutfreshstart@fingerhut.com Account Activity Date 8/25/2010 9/112010 Description Down
Payment -Thank You! Purchase Presto TilVDrain Big Griddle Free Gift- Surprise Gift FiNGERHUT
IliUU10itM  • . , Congratulations on your new Fingerhut FreshStart~” Credit Account! This is your
first step toward building your credit with us and an opportunity for a better credit outlook in
general. Monthly Highlights You can elect to receive your statements electronically by visiting My
Account at Fingerhut. com For automatic online payments: visit fingerhut.com/MyAccount For Customer
Service: call1-BOO-20B-2500 for account information, Monday-Friday, 8AM-8PM CT. Or email
atfingerhutfreshstart@fingerhut.com Amount $-30.00 $92.96 Your HngelTIut FreshSiart Credit Account
is issued by MetaBank. - — - — FiNGERHUT: Make payments online at fingerhut.com/MyAccount Or tear
off and return with your payment by mail. Make your check payable to Fingerhut. Account “lumbEr
MAIL PAYMENT BY MINIMUM DUE New Balance Amount Enclosed XXXX -xx,“O: -xxx,,< -00 16 Customer
Number 09/28/10 1 <—I _$11.33—,11’ —_$63.69—‘1 [$ t Make your check payable to Rngerl1ut
and mail to: 1111111111111111111111111111111111111111111 h 111111111 II 11111111
11111111111111111111’111’ pi ‘1 11111 pili .111111111111 11111 h 1111 PO Box 166 Newark, NJ
07101-0166 S32S 090910DOD1133DDD3D004

 

 

	Payment Informati o n Your payment wil l  be  c red i ted to your account on the same day we receive it, if
the bottom portion of this statement and your check are received by our processing facility by 5:00
pm ET, in tile enclosed envelope at our processing center. Payments I“8ceived after 5:00 pm ET will
be cl“8dited on the next processing day. Please aI/ow up to seven (7) days for postal delivery.
Payments received at any other location, in another form or with other documents may not be
credited tile same day we receive the payment. Our processing days are Monday through Sunday,
excluding holidays for payments received by mail. Payments received on holidays will be credited as
of the previous processing day. Wilen you send us a check as a payment, you authorize us to use
information from your check to make a one-time electl“Onic fund transfer fl’om your deposit
account, or to pl“Ocess the payment as a check tmnsaction. When Fingerhut uses information from
your check to make an electronic fund transfer, funds may be withdrawn from your deposit account as
soon as the same day Fingerhut receives payment, and you will not receive your check back from your
financial institution. If your checl< is returned to Fingerhut due to non-sufficient funds,
Fingerhut may also redeposit it thl“Ough a one-time electronic funds transfer. You may also make a
payment at any time on your Fingerhut FreshStart Credit Account issued by MetaBank at
fingerhut.com/MyAccount or via an automated phone payment at 1-800-208-2500. Online and automated
phone payments will be posted as of the same day if I’nade before 11 :00 pill CT. Payment Mailing
Address Make checks payable to Fingerhut and mail to: Fingerhut Credit AccoLint Services P.O. Box
166 Newark, NJ 07101-0166 Please wl“ite your account number on your check. Do not send
corl“8spondence to this address. Mail your payment in the enclosed envelope with the payment coupon
at the bottom of your statement. Late Charges A late fee will be assessed if a payment is received
after its clue date, as permitteci and described in your credit agreement. Account Information Get
24-hour automated account information by visiting our webs’lte at fingen1ut.com/MyAccount or by
calling our toll-free number: 1-800-208-2500. Credit Bureau Disputes If you believe we inaccurately
reported credit history information about you or your Loan to a credit reporting agency, callus at
1-866-734-0342 or write to us at: Credit Bureau Reporting Services, 6250 Ridgewood Road, 8t. Cloud,
MN 56303. Please provide tile Loan number along with a copy of your credit bureau repolt reflecting
the information that you believe is inaccurate. Billing Inquiries If you have a specific question
about your bill, please provide a detailed description of your inquiry concerning your account,
copies of all relevant documentation, your name anci account number to: Fingerhut Credit Account
Services, P.O. Box 1250, St. Cloud, MN 56395-1250. ©Fingerhut 5 ·060535-000 IMPORTANT! Has your
address, phone number, or e-mail address changed? If so, please fill in any NEW information in the
spaces below and we will update your account. Account PllOne I I L .. I I— I ···-[-1 Name Address
City E-Mail Address I I Please provide your e-mail address for business transactions. 0Ne will not
send promotional material without your permission.) I State I I J Zip ·-1 I I’ I 1 [ ··-1 ·· I i I
II ··I-J — ,-"-"—.—... , .. “ [] Check here if you’d like to receive e-mails about Fingerhut
special deals and events.

 

 

EXHIBIT E

Bluestem Brands, Inc

Credit Compliance Policy

Section 13.1

Customer Identification Program

Policy Statement

It is the policy of Bluestem Brands, Inc (“Bluestem”) to insure proper adherence
Section 326 of the USA Patriot Act regarding the requirement to implement reasonable
procedures to verify the identity of any person seeking to open a credit account,
maintain records of the information used to verify the person’s identity, including
name, address and other identifying information, and determine whether the person
appears on any lists of known or suspected terrorists or terrorist organizations
provided by a government agency and to Bluestem by its partner banks.

The provisions and intent of the USA Patriot Act require Bluestem and its partner banks
to implement and maintain identification, documentation, verification, and
recordkeeping procedures to ensure:

	 	i.	 	compliance with state and federal laws and regulations;
	 
	 	ii.	 	adherence to safe and sound banking practices;
	 
	 	iii.	 	decrease risk that Bluestem and/or its partner banks
will become victim to illegal activities; and
	 
	 	iv.	 	protect the reputation and strategic position of Bluestem
and its partner banks.

Risk Management

Bluestem, as part of its overall risk management program, reviews each area where
risks may present themselves to regulatory customer identification requirements.

Customer Due Diligence

The USA Patriot Act establishes minimum standards regarding the identity of any
customer who applies to open a new credit account. Specifically, financial
institutions must:

	 	1.	 	identify and verify all persons seeking to open a new credit account;
	 
	 	2.	 	maintain accurate records of such; and
	 
	 	3.	 	compare presented customer identification with government lists.

Bluestem’s procedures for verifying the true identity of a person are based on
Bluestem and its partner banks’ risk assessment presented by the type of account, the
various methods of opening an account, and the type of identifying information
available. In any instance, though, employees must ensure that a reasonable belief of
the true identity of Bluestem customers is obtained.

1

 

Identification information required before opening a new credit account
includes all of the following:

	 	1.	 	name;
	 
	 	2.	 	date of birth;
	 
	 	3.	 	physical/street address, includes:

	 	a.	 	army post office (APO) or fleet post office (FPO) box number; or
	 
	 	b.	 	physical/street address where they can be reached and mail sent to;

	 	4.	 	Social Security number.

Procedures for Verification of Identity

For a customer submitting an application in person an unexpired identification which
provides evidence of a customer’s nationality or residence and bears a photograph or
similar safeguard, such as a driver’s license or passport.

For customers submitting applications over the phone, through direct mail or over the
internet, the applicants’ identification must be validated by comparing the information
provided with information received from a credit reporting agency, public database or
other source. In the event that the information cannot be verified through a credit
reporting agency, before opening a new credit account, a person’s identity must be
verified through one or more of the following documentary and non-documentary methods:

	 	1.	 	unexpired government issued identification;
	 
	 	2.	 	verification through a public database;
	 
	 	3.	 	utility bill with the person’s name and address

The specific step by step verification procedures for handing the verification of a
person’s information when it cannot be verified through a credit reporting agency are
outlined and maintained on the Consumer Credit Compliance Program intranet site.
Management of the department with responsibility for account opening is responsible for
ensuring their employees are properly trained and adhere to these procedures.

Procedures for Lack of Identity Verification

It is against policy to open or maintain a credit account for a person if the person
cannot be properly validated and a reasonable belief is not formed of the true identity
of the person. If a person’s identity cannot be verified within specific timeframes
provided for in operational procedures, the person is to be notified in writing and the
person’s credit application declined.

NOTE: On a case by case basis, in the event of a suspicious situation where a person’s
identity cannot be properly verified, a SAR may need to be filed. If this is the case,
the Compliance Manager should be contacted for guidance and assistance. The Compliance
Manager will subsequently notify the partner bank to report the suspicious activity so
the partner bank can determine whether the filing of a SAR is necessary.

Additional Account Opening Procedures

In addition to those listed in this policy, it may be necessary to conduct additional
information verification procedures to re-verify the true identity of a customer or
the true purpose of a credit

2

 

account. In this instance, the Compliance Manager should be contacted for guidance and assistance.

Procedures for Comparing with Government Lists

It is Bluestem’s practice, during the customer identification verification process, to determine
whether a person appears on any list of known or suspected terrorists or terrorist organizations or
any known or suspected drug traffickers or drug trafficking organizations provided by a government
agency or by our partner banks. These lists include, but are not limited to, the OFAC and 314(a)
lists.

Please also see the Bluestem Brands, Inc Credit Compliance Policy Section 11—OFAC Policy and the
Bluestem Brands, Inc Credit Compliance Policy Section 12—FinCEN 314(a) List Policy.

Customer Notice Procedures

It is Bluestem’s policy to provide consumers with adequate notice that a partner bank is requesting
information to verify their identity. Such notice will be provided to consumers in applicable
account disclosures on all direct mail solicitations or electronically via a website. The notices
state:

“IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT: To help the
government fight the funding of terrorism and money laundering activities, federal law
requires all financial institutions to obtain, verify, and record information that
identifies each person who opens an account. What this means to you: When you open an
account, we will ask you for your name, address, date of birth, and other information
that will allow us to identify you. We may also ask to see your driver’s license or
other identifying documents.”

Recordkeeping

It is Bluestem’s policy to retain the following documentation related to the identity verification
of customers for a period of 60 months from the date a credit account is closed or become dormant:

	 	1.	 	All identifying information provided by a customer after the date the account is closed
or becomes dormant;
	 
	 	2.	 	A description of any document that was relied upon pursuant to this policy that clearly
evidences the type of document and identification number it may contain;
	 
	 	3.	 	A description of the methods and results of any measures undertaken to verify the
identity of a customer pursuant to this policy; and
	 
	 	4.	 	A description of the resolution of any substantive discrepancy discovered when verifying
the identifying information obtained.

3

 

VIII. STAFF TRAINING

General

It is the responsibility of the appropriate department to ensure that
employees receive appropriate training on the Customer Identification
Program and the directives of this policy.

All managers are responsible for the complete comprehension of this policy
and for verifying their employees understand their responsibilities. The
Compliance Manager and/or other designated member of management will
periodically attend educational programs related to BSA and CIP.

	 	5.	 	If, at any time, an employee is uncertain about the
proper handling of a situation or transaction, he or she should
refer the issue to their immediate supervisor or contact the
Compliance Manager for further guidance.

	 	 	 	 	 	 	 	 	 	 	 	 	 

	 

	 	*
	 	*
	 	*
	 	*
	 	*
	 	*

Procedures: Operational procedures governed or impacted by this
regulation can be found on the “Procedures Index by Regulation” spreadsheet
housed on the Consumer Credit Compliance Program SharePoint site.

History:

Drafted 07.08.09

Version 13.1 Drafted 05.04.10

Version 13.1 approved by Credit Compliance Program Steering Committee 05.06.2010

4

 

EXHIBIT F

WEBBANK

GETTINGTON RECEIVABLES DAILY SETTLEMENT STATEMENT

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	WebBank	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Debt Walver	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Customer	 	 	Origination	 	 	Receivable	 	 	Origination Fee	 	 	Debt Waiver	 	 	Receivable	 	 	Additional Debt Waiver	 	 	Gettington	 	 	# Days of	 	 	Dally Interest	 	 	Total Purchase.	 	 	Due From	 	 	Due to	 
	Date	 	 	Transaction Date	 	 	Date	 	 	Sales Amt	 	 	as of       	 	 	Fees	 	 	Origination Fee	 	 	Origination Fee	 	 	Purchase Date	 	 	Interest	 	 	Rate	 	 	Amt	 	 	WebBank	 	 	WebBank	 

 

Exhibit G 

[*]

[*] indicates
confidential portions omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange
Commission.

 

EXHIBIT H

[*]

[*] indicates
confidential portions omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange
Commission.

 

EXHIBIT I

MetaBank/Bluestem Brands, Inc.

Program Compliance Manual

Compliance Program Overview

Bluestem Brands, Inc. (“Bluestem”), its subsidiaries and affiliates (for purposes of this Exhibit
E, “Fingerhut”) will act as an agent for MetaBank during underwriting, origination, and servicing
phases of the MetaBank/Fingerhut credit program (“Credit Program”).

The Consumer Credit Compliance Program (“Compliance Program”) was developed and
implemented by Fingerhut in cooperation with MetaBank to further compliance with
laws applicable to the Credit Program.

The Compliance Program is designed to further compliance with the law or regulations
named in the applicable policy, specifically:

	 	•	 	Regulation Z/Truth in Lending (12 CFR 226)
	 
	 	•	 	Regulation B/Equal Credit Opportunity Act (12 CFR 202)
	 
	 	•	 	Fair Credit Reporting Act/FACTA (12 CFR 222 and 15 USC 1681 seq.)
	 
	 	•	 	Bank Secrecy Act/USA PATRIOT Act (31 CFR 103 and HR 3162)
	 
	 	•	 	Right to Financial Privacy (12 USC 3501)
	 
	 	•	 	Office of Foreign Assets Control (OFAC)
	 
	 	•	 	Servicemembers’ Civil Relief Act
	 
	 	•	 	Fair Debt Collection Practices Act
	 
	 	•	 	Regulation P/Gramm-Leach-Bliley Privacy Act (12 CFR 332)
	 
	 	•	 	Regulation AA/FTC Unfair and Deceptive Practices Act (16 CFR 444)
	 
	 	•	 	Identity Theft/Red Flags
	 
	 	•	 	CAN SPAM/Telephone Consumer Protection Act (TCPA)/Do Not Call (DNC)

The Compliance Program encompasses the lending activities of MetaBank for which
Fingerhut acts as agent. Monitors are in place across all functional areas of Fingerhut
that include a credit component, be it prescreening, underwriting, servicing or
collections.

Bluestem’s Legal Services Department monitors changes in applicable laws and regulations, engaging
nationally recognized financial services counsel as partners in this effort, and ensures that such
changes are reflected in the applicable policies and procedures, subject to Bank’s review and
approval.

 

 

Consumer Credit Compliance Program

Bluestem’s Consumer Credit Compliance Program Steering Committee has been authorized by Bluestem’s
Executive Team to provide oversight of the development and administration of the Compliance
Program. Operating teams from the four main functional areas that include credit components
(Customer Service, Credit Operations, Credit Risk and Collections) have day-to-day responsibility
for maintaining compliance with internal procedures and monitoring of same.

Bluestem’s Compliance Program is maintained in a written format and is housed on Bluestem’s
internal SharePoint system. Access to policies and procedures is available to MetaBank and to all
Bluestem employees who require it in order to fulfill their responsibilities under the program.

Monitoring of compliance procedures is incorporated in the normal business activities of each
affected area and reported upon monthly. Goals for the monitoring process include the detection of
procedural or training deficiencies and the application of corrective action plans where
appropriate.

Training

Understanding of the laws which guide the various procedures across Bluestem is an integral part of
Bluestem’s “new hire” training. In addition, specialized training is provided to staff who perform
functions that are guided by consumer compliance laws, such as Billing Disputes or Collections.

Compliance Procedure Overview

Bluestem Brands, Inc has adopted policies and procedures as an integral part of its Consumer Credit
Compliance Program. This section is intended to be illustrative in a summary fashion of certain
procedures also constituting part of the Consumer Credit Compliance Program. It is only
representative of certain of Bluestem’s procedures and therefore is not a comprehensive index of
procedures nor the procedures themselves.

Collections

Collections Support Settlement Procedure

A
customer may be offered a settlement if his or her account is two cycles or more past due
(66 days or greater excluding charged-off accounts) and the account falls into certain
pre-determined behavior score ranges. The first payment must be received within 10 business
days of the original offer. The last payment must be received within 60 days of the first
payment. The offer is null and void if payments are not received or are returned by a
financial institution as unpaid. The account will not be moved to a “Settlement Status”
until 30 days after the last payment is received.

 

 

Cease and Desist Requests

When a written request is received via mail from the customer, an attorney representing the
customer, or any third party who provides a Power of Attorney signed by the customer,
communications from Fingerhut regarding the collection of an account will cease within 48
hours.

Reduced Payment Plans

Fingerhut offers reduced payment plans to customers who experience financial hardships. A
qualifying payment amount is a minimum of 2.5% of the account balance. Late fees are not
applied while the customer is on the program and the finance charges are reduced.

Reage of Accounts

Customers who have had an account open for a minimum of nine months, are at least 66 days past
due and have no open to buy are eligible for Fingerhut’s Re-age Program. Customers are offered
a re-age program when they are unable to bring their accounts current through any other means.
When on a reage program, the customer must make three qualifying payments, or one single
payment equal to the amount of three qualifying payments, in order for the account to reage.
An account may be reaged only once in a 12-month period and no more than twice in a five-year
period.

Bankruptcy and Deceased Early Charge-Off

Accounts marked as Bankruptcy or Deceased will be charged off 60 days after notification,
provided there is a balance and the account is six or more days delinquent.

Consumer Credit Counseling Services (CCCS)

From time to time, customers who are facing financial difficulties will contract with a
Consumer Credit Counseling Service (“CCCS”) in an effort to pay their debt. CCCS companies
contact Fingerhut with a written proposal for repayment. The payment amount proposed must be
at least 3% of the outstanding balance or $15.00, whichever is greater, in order to be
accepted. If the account is less than 90 days delinquent, the APR is set at 14.90% and the
account is set to “CCCS Retention”. If the account is greater than 90 days delinquent, the
APR is set at 9.90% and the account is set to “CCCS Closed”.

Credit Operations

FinCEN Reporting

The Financial Crimes Enforcement Network (“FinCEN”) provides biweekly files containing names
and addresses (when available) of individuals and business appearing on Specially Designated
Terrorist Lists. Bluestem matches the names of individuals against the lists of current
credit customers; in the event a name is a match or a potential match, further investigation
is completed and the results of the investigation is forwarded to the appropriate banking
partner. When a match occurs, the results are grouped based

 

 

on three main matching criteria: a one-to-one match on SSN, a one-to-one match by alias first
name/last name, city and ZIP code or a calculated match by address and city. MetaBank
performs this task for the Credit Program.

Manual Review Override Authorization (Applicable to Open-End Program Only)

From time to time, requests are made for credit line increases that are outside the normal
parameters for the Manual Review Area. In such cases, the request is forwarded to a
Supervisor or Manager. Manual Review Supervisors have authority up to $200.00 to approve an
account or increase of a credit limit. Manual Review Managers have authority up to $500.00 to
approve an account or increase of a credit limit. The Director/Vice President of NCA has
authority up to $2000.00 to approve an account or increase of a credit limit. Requests for
amounts greater than $2000.00 are referred to the head of Risk Management.

Credit Risk

Modeling Variable Restrictions

The following attributes are not to be included in the development or usage of any credit
statistical models: age, gender, religion, language preference, nationality, state of
residence, the fact that all or part of the applicant’s income derives from a public
assistance program, the fact that the applicant has in good faith exercised any right under
the Consumer Credit Protection Act (or any other fields that could directly or indirectly
cause redlining), marital status or medical condition. All credit statistical models will be
reviewed by the Model Review Committee.

GLB Annual Notifications

On an annual basis (defined as within a 12-month period), Privacy Notices are provided to
all account holders required to receive such notices. Account holders exempt from
notification include all zero balance closed accounts, charged off/closed, bankrupt and
deceased accounts. Account holders are provided the right and the ability to opt out of
information sharing as per the Fingerhut Privacy Policy, and are provided a form and mailing
address on the privacy notification.

Credit Bureau Reporting

On behalf of MetaBank, Fingerhut reports information on credit accounts on a monthly basis
to both Equifax and TransUnion. The extract file developed for reporting purposes conforms
to the standard Metro 2 credit reporting format. Customer Service and Collections Support
have separate operational procedures in order to comply with reporting requirements and any
subsequent customer inquiries. Collections Support is responsible for handling all credit
bureau disputes.

 

 

Portfolio Reviews

On a quarterly basis, Fingerhut, on behalf of MetaBank, obtains an updated read on the credit
bureau attributes of selected accounts. A representative of the Credit Risk team runs a SAS program
to determine which customers satisfy the criteria in place to generate a review. This group of
customers is then compared to a file constructed by IT using the same criteria, and if the
comparison is acceptable, the file is sent to the credit bureau. Upon receipt of the updated
information for the reviewed customers, Credit Risk verifies that the customers returned are the
same as those sent out and that the attributes returned are reasonable.

Real Time Authorizations (Applicable to Open-End Program only)

This fully automated process provides guidelines and logic for making purchase authorization
decisions at the point of sale. It includes decisioning for Overlimit Authorizations and High Risk
declines. At each purchase attempt, accounts satisfying all other criteria to approve the purchase
except sufficient available credit are subject to “OTB logic”, which uses preset parameters to make
an authorization decision. If the purchase passes the OTB Logic, the authorization is approved. No
overlimit fees are assessed. If the purchase does not pass the OTB Logic, the authorization is
declined. In addition, at each purchase attempt, accounts satisfying all other criteria that would
approve the purchase are analyzed in real time to assess the risk of the purchase. If the purchase
meets the high-end threshold in terms of defining the risk the account will become seriously
delinquent within the next 12 months, the purchase authorization is declined and the credit limit
is reduced to balance. The customer is sent an adverse action letter which provides the reasons for
the declination.

Credit Line Increase Program (Applicable to Open-End Program only)

On a monthly basis, Fingerhut, on behalf of MetaBank, executes an automated credit limit increase
program for accounts with demonstrated payment capacity and low risk. The credit limit increase is
not run in January or July so as not to interfere with the Portfolio Review process. The credit
limit increase process utilizes three unique sets of logic to determine which accounts qualify. Two
types of increases are given to customers: permanent and temporary. Temporary line increases
generally have an expiration date of 90 days. However, if a customer utilizes all or part of the
temporary line increase, their limit will remain increased by the amount of utilization even after
the expiration date.

Credit Line Decrease Due to Delinquency (Applicable to Open-End Program only)

At the end of each billing cycle, accounts meeting pre-set conditions are systematically reviewed
for a decrease in the credit limit. With the conditions met, actions are taken based upon the
number of days delinquent. Limits on accounts with a 60-89 day delinquency status are reduced to
balance and rounded up to the nearest whole dollar. The credit limit will not be reduced below
$100.00. Limits on accounts with a 90+ day delinquency status are reduced to zero. No action is
taken for purposes of this procedure

 

 

on accounts that are less than 60 days
delinquent.

Customer Service

Billing Disputes (Applicable to Open-End Program only)

In the event a customer has a dispute as defined in the Truth-in-Lending Act and notifies
Fingerhut no later than 60 days after the first billing statement on which the disputed
information appears, Fingerhut will investigate and resolve the dispute within the
timeframes as specified in the Truth-in-Lending Act. During the period in which the dispute
is being investigated, the amount in dispute will be suspended from the accrual of finance
charges, billing and, in some cases, collection. All notification to the customer regarding
the receipt, investigation and resolution of the dispute will be sent within the timeframes
as specified in the Truth-in-Lending Act.

Servicemembers’ Civil Relief Act

Upon the request of a customer who is enlisted in the Armed Services (as defined by the
SCRA), and when accompanied by copies of the customer’s active duty orders, FDM will reduce
the interest rate to 6% on that portion of the account balance incurred prior to the
customer’s call to active duty. Within 30-60 days prior to the release of the customer from
active duty, Fingerhut will send notification to the customer that their protection under
SCRA is due to expire and request further documentation in the event the customer’s active
duty has been extended. Protection under the SCRA will terminate within 30 to 90 days after
the customer’s discharge from active duty. As a courtesy to customers on active duty, and
upon appropriate verification, Fingerhut will accept requests for protection and information
regarding deployment from a servicemembers’ spouse.

 

 

Exhibit J

Third-Party Service Contractors

In accordance with and subject to Section 40 of the Agreement, Company’s Tier 1
and Tier 2 subcontractors are as follows:

	 	Tier 1:	 	 The Tier 1 subcontractors include CoreCard Software, Inc. and
Experian Marketing Solutions, which entities provide Company with its card
processing platform and application approval system, respectively.
	 
	 	Tier 2:	 	 The Tier 2 subcontractors include, without limitation, AllianceOne, Inc. and NCO
Financial Services, Inc., which entities provide first-party collection support to
Company, and vCustomer Corporation and 24-7 Customer, Inc., which entities provide
customer servicing support to Company, including account application and servicing.

 

 

EXHIBIT K

Bluestem Brands, Inc

Credit Compliance Policy

Section 4.2

Bank Secrecy Act

I. PURPOSE

The Bank Secrecy Act (BSA) and related laws and regulations require financial institutions and
their servicers to take reasonable steps to verify the identity of their customers, monitor and
report certain currency, suspicious and foreign transactions, and maintain specific records. These
steps require financial institutions to keep records that provide documentation that law
enforcement can utilize and provide penalties for individuals and entities attempting to avoid
these requirements.

II. POLICY DESCRIPTION, AUTHORITY AND SCOPE

Description and Authority

This policy is a general statement of Bluestem Brands, Inc’s (“Bluestem”) objectives, direction and
expectations regarding the BSA. As such, it is the authority, basis and platform for the
development, communication, implementation, interpretation and enforcement of appropriate and
applicable operating procedures.

It is the policy of Bluestem to comply with all provisions of the BSA. All employees must comply
with this policy and all steps necessary are taken to ensure that proper adherence to the laws and
regulations can be met.

Enforcement

Changes to this policy require approval by the Consumer Credit Compliance Steering Committee.
Changes in operating procedures, standards, guidelines, and technologies, provided they are
consistent with this policy, may be authorized by the Consumer Credit Compliance Operating Team for
the affected department and its representative on the Consumer Credit Compliance Steering Committee
and the Compliance Manager.

The Consumer Credit Compliance Steering Committee will approve this policy annually. It is
responsible for ensuring the directives are implemented and administered in compliance with the
approved policy. The primary responsibility for enforcement of this policy and its operating
procedures rests with Bluestem employees.

1

 

No part of this policy or its supporting operating procedures should be interpreted as contravening
or superseding any other legal and regulatory requirements. Protective measures should not
impede other legally mandated processes such as records retention or subpoenas. Any conflicts
should immediately be submitted to the Compliance Manager for further evaluation and/or
subsequent submission to the Consumer Credit Compliance Steering Committee.

Exceptions to Policy

There are no exceptions to the Bluestem BSA Policy. If unique circumstances exist that may
require special handling, requests for this special handling must be very specific and apply only
to specific terms or items, rather than entire sections of the policy. Employees with special handling
requests are to communicate their requests by submitting them in writing to the Compliance
Manager for consideration by the Consumer Credit Compliance Steering Committee and/or
senior management.

III. RISK MANAGEMENT

General

Bluestem realizes that the potential for risk exists in an ever changing environment, and in
response, has developed and implemented this comprehensive risk-based BSA, anti-money
laundering (“AML”) program. This program is designed to mitigate risks associated with
Bluestem’s partner banks and the geographies, customers, products, services, and the nature of
Bluestem’s operations. This program provides for policies and procedures, and the assignment of
designated employees responsible for monitoring day to day compliance.

The nature of the business conducted by Bluestem does not generally provide exposure to a high
risk of BSA or AML issues and past history demonstrates that Bluestem has a low risk of BSA or
AML violations. Nevertheless, Bluestem has committed to establishing strong internal controls,
processes, policies, and procedures to maintain compliance in all areas.

IV. CURRENCY TRANSACTION REPORTING

General

Federal law and regulation requires financial institutions to report every cash transaction by a
customer (unless the customer is specifically exempted) in excess of $10,000 to the Internal
Revenue Service on a Currency Transaction Report within 15 days of the transaction. However,
since it is the policy of Bluestem to not accept any cash payments, this requirement is not
relevant to Bluestem’s business.

If at any time Bluestem receives an unsolicited cash payment, the payment is to be reported to the
Payment Processing Manager, who is then required to report the cash payment to the Compliance Manager.

V. REPORT OF CRIMES AND SUSPECTED CRIMES

General

The FDIC’s rules and regulations require insured banks to make prompt and systematic reports of
crimes and attempted crimes to law enforcement authorities. This responsibility covers any
known, attempted, or suspected crimes involving or affecting the assets or affairs of insured
banks. As a servicer on behalf of Bluestem’s partner banks, it is the policy of Bluestem to

2

 

comply with rules and regulations of the applicable regulator as required by Bluestem’s
partner banks.

Suspicious activity and crimes can be identified in a wide variety of forms that may indicate money
laundering or other illegal activity. However, as activity may appear suspicious, it may only
require enhanced scrutiny. Examples of activity that may require enhanced scrutiny include, but are
not limited to:

	 	1.	 	activity inconsistent with a customer’s prior history;
	 
	 	2.	 	unusual characteristics of a customer;
	 
	 	3.	 	unusual or inconsistent payment activity
	 
	 	4.	 	unusual or inconsistent account purchase activity; or
	 
	 	5.	 	a consumer provides inconsistent, incomplete, insufficient or suspicious
information when requested to comply with the information requirements of Bluestem’ s
Customer Identification Program. (see Credit Compliance Policy Section 13, “Customer
Identification Program”)

Examples of suspicious activity that must be reported include, but are not limited to:

	 	1.	 	any BSA violation (ex. structuring or money laundering);
	 
	 	2.	 	bribery or gratuity;
	 
	 	3.	 	check fraud;
	 
	 	4.	 	computer intrusion;
	 
	 	5.	 	loan fraud;
	 
	 	6.	 	counterfeit credit card;
	 
	 	7.	 	counterfeit payment instrument;
	 
	 	8.	 	credit card fraud;
	 
	 	9.	 	employee defalcation or embezzlement;
	 
	 	10.	 	identity theft;
	 
	 	11.	 	misuse of position or self dealing;
	 
	 	12.	 	mysterious disappearance;
	 
	 	13.	 	terrorist financing;
	 
	 	14.	 	wire transfer fraud.

Suspicious Activity Reports

The Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”), along with bank
regulatory agencies, has adopted the Suspicious Activity Report (“SAR”). All banks are required to
file a SAR for any matter that they have basis to believe is a known or suspected violation of
federal criminal law. As a servicer on behalf of its partner banks, it is the policy of Bluestem to
comply with FinCEN rules as required by its partner banks.

Examples of incidents that require a bank to file a SAR include but are not limited to:

	 	1.	 	Known or suspected violations of federal criminal law by one of Bluestem’s
directors, officers, employees, agents or other affiliated parties that may have
committed or aided in the commission of the violation;
	 
	 	2.	 	Known or suspected violations of federal criminal law involving or aggregating
$5000 or more and there is substantial basis for identifying a possible suspect or group
of suspects;

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	 	3.	 	Known or suspected violation of federal criminal law involving or aggregating
$25,000 or more and there is no substantial basis for indentifying a possible suspect or
group of suspects;
	 
	 	4.	 	Transactions involving or aggregating $5000 or more that involve potential money
laundering or violations of the BSA.

NOTE: Bluestem will notify its partner bank in the event of a robbery or burglary, but no SAR is
required to be filed if the robbery or burglary is reported to the appropriate law enforcement
authorities.

In the event Bluestem identifies a known or suspected violation of federal criminal law as
described above, Bluestem will immediately notify its affected partner bank so that the bank may
file a SAR. A SAR must be filed within 30 calendar days after the date of initial detection of the
facts that constitute the basis for filing a SAR. If no suspect was identified on the date of
detection of the incident requiring filing, the bank may delay filing the SAR for an additional 30
calendar days to identify a suspect. In no case shall reporting be delayed more than 60 calendar
days after the date of initial detection of a reportable  incident.

To the best of its ability, Bluestem will provide its partner bank the following information so
that the bank may file a SAR:

	 	1.	 	who conducted the transaction;
	 
	 	2.	 	what instrument or instruments facilitated the suspicious activity;
	 
	 	3.	 	when the suspicious activity occurred;
	 
	 	4.	 	where the suspicious activity took place;
	 
	 	5.	 	why Bluestem believes the activity is suspicious;
	 
	 	6.	 	how the suspicious activity occurred; and
	 
	 	7.	 	any documentation that supports the filing of the SAR.

A SAR is confidential. If Bluestem is subpoenaed or otherwise requested to disclose any information
regarding a SAR or the information contained in a SAR, Bluestem will decline to provide any
information that would disclose that a SAR has been filed. Any such requests should be immediately
forwarded to the Compliance Manager for handling. Bluestem will also notify its partner bank so
that they may notify the appropriate regulatory agency of the request.

Employee Reporting of Suspicious Activity

Any Bluestem employee detecting a violation of federal criminal law or who has a suspicion
that a violation of federal criminal law has as occurred is to report their suspicions. Employees
may report suspicious currency transactions or other activities to the Compliance Manager.

The identity of the employee reporting the incident may remain anonymous.

VI. ANTI-MONEY LAUNDERING

Policy Statement

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It is the policy of Bluestem to ensure proper adherence to the provisions and intent of the
USA Patriot Act regarding the requirement to implement reasonable procedures to deter money
laundering activities and actively search for suspicious activity.

This policy is a general statement of Bluestem’s objectives, direction and expectations regarding
Bluestem’s anti-money laundering (“AML”) programs. As such, it is the authority, basis and platform
for the development, communication, implementation, interpretation and enforcement of appropriate
and applicable operating procedures.

Changes to this policy require approval by the Consumer Credit Compliance Steering Committee.
Changes in operating procedures, standards, guidelines and technologies, provided they are
consistent with this policy, may be authorized by the Consumer Credit Compliance Operating Team for
the affected department and its representative on the Consumer Credit Compliance Steering Committee
and the Compliance Manager. The Consumer Credit Compliance Steering Committee is responsible for
ensuring the directives are implemented and administered in compliance with the policy. The primary
responsibility for enforcement of this policy and its operating procedures lies with the Consumer
Credit Compliance Steering Committee and Bluestem employees.

General

Money laundering means any activity criminalized by 18 USC 1956 or 1957. Money is
‘laundered’ to conceal all types of criminal activity. It is driven by the need to
conceal the true source of funds, and becomes necessary when the amount of money is so large that
the criminal or criminal organization cannot reasonably absorb it into their lifestyle or business.

Money laundering, through often a complex process, generally consists of three independent steps
that often occur at once:

	 	1.	 	Placement. This involves illegal money in bank, in a non-bank
financial institution, in the general domestic economy, or in a foreign economy. Some
examples of placing money are listed below.

	 	A.	 	Structuring/Smurfing. This involves the structuring of cash,
monetary instruments, or exchanges of small bills for larger denominations to
avoid currency transaction report reporting requirements.
	 
	 	B.	 	Bank Complicity. This occurs when bank staff, from front line
operational employees to executives, are bribed by criminals or when entire
institutions are controlled by criminals.
	 
	 	C.	 	Misuse of BSA Exemption Lists. This occurs when banks or non-bank
financial institutions do not follow BSA rules for reviewing accounts and
maintaining an active “Know Your Customer” policy and grant exceptions from BSA
reviews.
	 
	 	D.	 	Creation of False BSA Trails. This occurs when documents are
falsified to disguise the true source, ownership, location or controls over
illegal money.

	 	2.	 	Layering. This means separating the illegal money from the source
through layers of complex financial transactions. If the placement of money is
undetected, the money
laundering activities are even more difficult to uncover. The confusing complicated
ways in which layer after layer of activities and transactions are piled on

5

 

	 	 	 	top of one another are intended to make tracing of funds impossible to law
enforcement.

	 	3.	 	Integration. This provides an apparently legitimate explanation for the illegal
money. This is the final stage in the process of money laundering where the “cleansed”
money is integrated into the economy providing the appearance that the funds were
legally obtained.

Risk Analysis. Detection and Monitoring

Due to the nature of the business of Bluestem and the programs serviced on behalf of its partner
banks, Bluestem’s customer base is considered low risk for money laundering activities. It is
considered low risk because Bluestem offers and services only low credit line credit card’s to
individual consumers, not businesses, and provide no high risk banking functions or transactions
such as private banking, trust, offshore internal activity, deposit taking facilities,
international correspondent banking, cash management functions, trade financing, or transactions
involving large amounts of traveler’s checks, official bank checks, money orders and stored value
cards. However, Bluestem has implemented reasonable procedures to deter money laundering activities
and actively search for suspicious activity. Bluestem has determined the appropriate due diligence
procedures to be applied to consumers when initiating a relationship or continuing a relationship.
For these risk analysis strategies, refer to the Report of Crimes and Suspected Crimes section and
the Customer Identification Program Policy.

If any employee of Bluestem suspects or identifies money laundering activities, they are to report
it to the Compliance Manager.

Penalties

Individuals, including employees of financial institutions, convicted of money laundering may face
up to 20 years in prison for each money laundering transaction. Any money or any property traceable
to proceeds from criminal activity, including loan collateral, personal property, bank accounts
(even if a portion of the funds in the accounts is legitimate) may be subject to forfeiture. In
addition, banks risk losing their charter and their employees risk being removed and barred from
future employment in the financial sector.

VII. KNOW YOUR CUSTOMER

General

It is the intent of Bluestem to have a clear and concise understanding of customer practices in
order to avoid criminal exposure by any customer who would use its resources or its partner bank’s
resources for illegal purposes. The objective of this policy is to ensure the immediate detection
and identification of suspicious activity. Accordingly, it is the policy of Bluestem to incorporate
the following into our business practices:

	 	1.	 	Bluestem will make a reasonable effort to determine the true identity of all
customers;
	 
	 	2.	 	Bluestem will make a reasonable effort to identify the true ownership of all
accounts;
	 
	 	3.	 	Employees of Bluestem will make a reasonable effort to be aware of any unusual
transaction activity.

As a general rule, Bluestem will not establish a business relationship until the identity of a
potential customer is satisfactorily established. If a potential customer refuses to produce any
requested verification documentation, the relationship will not be established. The Customer

6

 

Identification Program Policy provides an overview of general principles to follow in establishing
customer relationships.

Consumer Credit Accounts

No consumer credit account will be opened without capturing the following information and
conducting the following procedures, including, but not limited to:

	 	1.	 	Valid Social Security number
	 
	 	2.	 	Physical Address
	 
	 	3.	 	Date of Birth
	 
	 	4.	 	Confirmation of a credit bureau match

Commercial Credit Accounts

Bluestem does not offer or service commercial accounts.

VIII.
STAFF TRAINING

General

It is the responsibility of the appropriate department to ensure that employees receive appropriate
training on the Customer Identification Program and the directives of this policy.

All managers are
responsible for the complete comprehension of this policy and for verifying their employees
understand their responsibilities. The Compliance Manager and/or other designated member of
management will periodically attend educational programs related to BSA and CIP.

If, at any time, an employee is uncertain about the proper handling of a situation or transaction,
he or she should refer the issue to their immediate supervisor or contact the Compliance Manager
for further guidance.

IX. RETENTION OF RECORDS

It is the policy to retain the following items for a period of at least five years:

	 	1.	 	Currency Transaction Reports (it is policy to not accept cash payments)
	 
	 	2.	 	Customer Identification Records
	 
	 	3.	 	Documents related to a Suspicious Activity Report
	 
	 	4.	 	Evidence of 314(s) Searches
	 
	 	5.	 	Evidence of OFAC Searches
	 
	 	6.	 	Account Statements Showing Individual Transaction Activity
	 
	 	7.	 	Records containing the name, address and SSN of customer

*          *          *          *          *          *

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Procedures: Operational procedures governed or impacted by this regulation can
be found on the “Procedures Index by Regulation” spreadsheet housed on the Consumer Credit Compliance
Program SharePoint site.

History:

Drafted 10.08.07

Approved by Credit Compliance Program Steering Committee 10.23.07

Approved by FDM Executive Management 07.21.08

Revision 4.1 drafted 07.08.09

Revision 4.2 drafted 05.04.10

Revision 4.2 approved by Credit Compliance Program Steering Committee 05.06.2010

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EXHIBIT L

SafeLine
Account Protection (includes both Debt Suppression and Debt
Waiver)

Debt Suppression

Benefits Description:

Fingerhut suppresses Credit Account for up to six months in the event of the Borrower’s
unemployment or disability provided conditions below are met.

	 	a)	 	Credit Account will be suppressed for the shortest of: 1) number of months
enrolled in SafeLine, 2) the length of unemployment, 3) the length of disability
occurrence or 4) six months.
	 
	 	b)	 	Suppressed is defined as not imposing minimum payment due, late fees, or SafeLine
fees for the period in which benefits are provided. Negative reports will not be sent to
any reporting agency during a billing period in which the Credit Account is suppressed.
	 
	 	c)	 	Credit Account will be suppressed and unable to be used while benefits are
active. Interest will continue to accrue at contract rate.

Conditions for Unemployment Benefit Activation under Debt Suppression

	 	1.	 	Borrower must be out of work for 30 or more consecutive days prior to
making a request.
	 
	 	2.	 	Borrower’s previously held job must have required 30 or more hours per week.
	 
	 	3.	 	Borrower is not eligible if self-employed, retired or permanently disabled.
	 
	 	4.	 	Borrower’s unemployment must be involuntary.
	 
	 	5.	 	Borrower must be enrolled in SafeLine for 3 months prior to making unemployment
claim.
	 
	 	6.	 	Borrower must not be seriously delinquent more than 60 days at time of
Benefits Activation Application.

Conditions for Disability Benefits Activation under Debt Suppression

	 	1.	 	Borrower must be enrolled for one month prior to requesting benefit activation
due to disability.
	 
	 	2.	 	Borrower must be unable to work.
	 
	 	3.	 	Borrower must be out of work for 30 or more consecutive days prior to making a
request.
	 
	 	4.	 	Borrower’s previously held job must have required 30 or more hours per week.
	 
	 	5.	 	Borrower is not eligible if self-employed, retired or permanently disabled.
	 
	 	6.	 	Pre-existing conditions not covered until Borrower is enrolled in SafeLine six or
more months.
	 
	 	7.	 	Disability does not include: 1) childbirth, 2) normal pregnancy, or 3)
intentionally self-inflicted injuries.

 

 

Debt Waiver

Benefits Description:

In the event of Borrower’s death, SafeLine will waive the entire outstanding balance as of the date
of death.

Conditions for Death Benefit

	 	1.	 	Borrower must be enrolled in SafeLine for three or more months prior to
date of death to be eligible for the death benefit.
	 
	 	2.	 	Death certificate must be provided to Fingerhut by Borrower’s estate or a third
party.
	 
	 	3.	 	Borrower must not be seriously delinquent more than 60 days at time of
Benefits Activation Application.

Pricing — Price listed below is as of date of signing of contract.

	 	1.	 	$0.94 per $100 of total balance of Credit Account.

Marketing Channels — Marketing Channels listed below are as of date of signing of contract:

	 	1.	 	Print including billing statement message, insert, bangtail and solo
direct mail
	 
	 	2.	 	Inbound and outbound telemarketing
	 
	 	3.	 	Internet and email marketing
	 
	 	4.	 	Customer Service cross-sell and order add-on

SAFELINE ACCOUNT PROTECTION PLUS

(includes both Debt Suppression and Debt Waiver)

General Requirements for Benefit Activation

	 	•	 	Customer will not qualify for benefits if account is seriously delinquent
(more than sixty (60) days past due) when we review Benefit Activation Application.
	 
	 	•	 	Customer must complete a Benefit Activation Application and submit it, along with
the supporting documentation, to Fingerhut Account Services at the address shown on the
application.
	 
	 	•	 	Fingerhut Account Services will verify the information given and evaluate request
for benefit activation.
	 
	 	•	 	If benefit activation is approved, benefits will be activated immediately. If
benefits are not approved, customer will be notified of such action and the reason
benefits were not activated.
	 
	 	•	 	For Payment Suspension Benefits, except when activated for Life Events, customer
will be required to provide proof of continued qualification for benefit activation, as
described below.

 

 

Death Benefit: Balance Cancellation Benefit Description 

For the first ninety (90) days after enrollment in the Plan, customer may be eligible
for the Balance Cancellation Benefit, but only in the event of
Accidental Death. “Accidental Death” means death that (a) is directly due to an accidental injury
that occurs after the enrollment date; (b) is independent of all other causes, except accidental
injury; and (c) is unintended, unexpected, and unforeseen.

If death occurs more than ninety (90) days after enrollment in the Plan, customer may be eligible
for the Balance Cancellation Benefit regardless of the cause of death; however, death from war, act
of war (declared or not), or act of terrorism invalidates eligibility for the Balance Cancellation
Benefit, unless such invalidation is prohibited by applicable law.

Conditions for Death Benefit Activation

	 	•	 	Death certificate must be provided.

Involuntary Unemployment Benefit: Payment Suspension Benefit and Balance
Cancellation Benefit 

Customer may be eligible for a Payment Suspension Benefit if customer becomes Involuntarily
Unemployed.

“Involuntary Unemployment” or “Involuntarily Unemployed” means customer has suffered an entire
loss of employment income due to one of the following reasons: (a) layoff, (b) general
strike, or (c) involuntary termination by the employer.

Benefits will not be activated for termination due to willful or criminal misconduct,
unionized labor dispute, or lockout. The following are examples of occurrences that do not qualify
as Involuntary Unemployment: (a) voluntary forfeiture of employment salary, wages or employment
income; (b) resignation; (c) retirement; (d) scheduled termination of an employment contract; (e)
termination of employment (except for involuntary termination by the employer); or (f) loss of
income caused by illness, disease, accident, injury or pregnancy (although these occurrences may
qualify for a Disability Payment Suspension Benefit, as described below).

A customer is not eligible for Involuntary Unemployment benefit activation if customer is
self-employed or retired.

The Maximum Benefit Period for Involuntary Unemployment is twelve (12) months.

If a customer is continuously involuntarily unemployed for twelve (12) consecutive months,
customer may be eligible for a Balance Cancellation Benefit at that time.

 

 

Conditions for Involuntary Unemployment Benefit Activation

	 	•	 	Customer must be out of work for thirty (30) or more consecutive days to qualify for
benefit activation due to Involuntary Unemployment.
	 
	 	•	 	Customer must be enrolled in the Plan for three (3) months prior to requesting
benefit activation.
	 
	 	•	 	Customer must have been working in a job for thirty (30) or more hours per week for
the three (3) months immediately preceding date of Involuntary Unemployment in order to
qualify for benefit activation.
	 
	 	•	 	Customer will be required to submit a copy of state unemployment registration form
provided by the state in which customer collects Involuntary Unemployment benefits.
	 
	 	•	 	Upon approval of Benefit Activation Application, benefits will be
activated retroactive to the later of (a) customer’s first day of Involuntary
Unemployment, in which case any delinquency relating to the Involuntary Unemployment
condition will be cleared (if present); or (b) three (3) months after
enrollment date in the program, in which case any negative status or reporting will be
cleared only if it arose at least three (3) months after enrollment date in the program
and was a result of the Involuntary Unemployment condition for which customer received
Payment Suspension Benefits.
	 
	 	•	 	Each month customer may be required to give proof of continued receipt of state
unemployment benefits.

Disability Benefit: Payment Suspension Benefit and Balance Cancellation Benefit

Customer may be eligible for a Payment Suspension Benefit if a customer becomes Disabled.

If
customer is a working person, “Disability” or “Disabled” means that, as a result
of an injury or illness, the customer is unable to perform the material and substantial duties of
customer’s occupation and is under the continuous treatment of a
physician.

If customer is a non-working person, “Disability” or “Disabled” means that, as a
result of an injury or illness, the customer is unable to perform all the normal activities of
daily living of a person of like age or sex as certified by a physician and is under the
continuous treatment of a physician.

A customer does not qualify for benefit activation if Disability is due to (a) childbirth, (b)
normal pregnancy, or (c) intentionally self-inflicted injuries. Disability must begin more than
thirty (30) days after customer enrolls in the Plan. If Disability is caused by a pre-existing
condition, customer does not qualify for benefit activation until customer has been
enrolled in the Plan for six months. A pre-existing condition is an illness or an injury arising
from an accident that caused customer to consult with a physician or seek medical treatment within
six (6) months prior to enrollment date.

The Maximum Benefit Period for Disability is twelve (12) months.

If customer is continuously disabled for twelve (12) consecutive months, customer may be
eligible for a Balance Cancellation Benefit at that time.

 

 

Conditions for Disability Benefit Activation for Working Persons

	 	•	 	Customer must be out of work fur thirty (30) or more consecutive days to
qualify for benefit activation.
	 
	 	•	 	Customer must have been working in a job for thirty (30) or more hours per week for
the three (3) months immediately preceding date of Disability to qualify for benefit
activation.
	 
	 	•	 	Customer may be asked to provide a statement from physician stating the cause of the
Disability, the initial onset of the Disability, the expected duration of the Disability,
and a statement that customer is unable to perform the customer’s regular job. Each month
the customer may be required to give proof that Disability has continued.

Conditions for Disability Benefit Activation for Non-Working Persons

	 	•	 	Customer must have been unable to perform at least one (1) of the activities of daily
living for thirty (30) or more consecutive days to qualify for benefit activation.
	 
	 	•	 	Customer may be asked to provide a statement from physician stating the cause of
the Disability, the initial onset of the Disability, the expected duration of the
Disability, and a statement that customer is unable to perform at least one (1)
of the activities of daily living. Each month customer may be required to give
proof that Disability has continued.

Hospitalization Benefit: Payment Suspension Benefit and Balance Cancellation Benefit 

Customer may be eligible for a Payment Suspension Benefit if customer becomes
Hospitalized”.

“Hospitalization” or “Hospitalized” means that customer is admitted to a Hospital and
remains in the Hospital for more than forty-eight (48) hours. The term “Hospital” means a (a)
licensed medical facility; (b) chiropractic hospital; (c) acute care facility; (d) nursing home;
(e) residential drug facility; (f) psychiatric facility; (g) hospice facility; or (h)
rehabilitation facility.

Customer does not qualify for benefit activation if Hospitalization is due to (a) childbirth,
(b) normal pregnancy, or (c) intentionally self-inflicted injuries.

The Maximum Benefit Period for Hospitalization is three (3) months.

If customer is continuously hospitalized for three (3) consecutive months, customer may be
eligible for a Balance Cancellation Benefit at that time.

Conditions for Hospitalization Benefit Activation

	 	•	 	Hospitalization must begin more than thirty (30) days after enrollment in the Plan.
	 
	 	•	 	Customer may be asked to provide proof of Hospital stay and the duration of the
stay.

 

 

Unpaid Leave of Absence Benefit: Payment Suspension Benefit 

Customer may be eligible for a Payment Suspension Benefit if customer takes an Unpaid
Leave of Absence (“Leave”).

“Leave” means an employer-approved temporary absence without pay from permanent,
nonseasonal, full-time employment.

The following are examples of occurrences that do not qualify as a Leave: (a) resignation; (b)
retirement; (c ) scheduled termination of employment contract; (d) termination of employment; and (e) absence from work due to illness, disease, accident, or injury (although these occurrences may
qualify for a Disability Payment Suspension Benefit as described above).

Customer is not eligible for Leave benefit activation if customer is self-employed or is an
independent contractor.

The Maximum Benefit Period for Leave is three (3) months.

Conditions for Leave Benefit Activation

	 	•	 	Leave must begin more than thirty (30) days after enrollment in the Plan.
	 
	 	•	 	Customer must have been working in a job for thirty (30) or more hours per week for
the three (3) months immediately preceding date of Leave.
	 
	 	•	 	Customer may be asked to provide proof from employer, stating that customer has
been granted a Leave from work, the reason for the Leave, and the duration of the Leave.

Life Event: Payment Suspension Benefit 

Customer may be eligible for a Payment Suspension Benefit if customer experiences a Life
Event.

“Life Event” means (a) marriage or entrance into a domestic partnership; (b) the birth
of a child or adoption of a child; (c) divorce; (d) retirement; (e) change of primary residence;
(f) the death of Spouse or Domestic Partner; or (g) experiencing of a natural
disaster.

The Maximum Benefit Period for a Life Event is three (3) months, except for ”(e) change
of primary residence,” in which case the benefit period is one (1) month.

Conditions for Life Event Benefit Activation

	 	•	 	Customer must be enrolled in the Plan for thirty (30) days prior to requesting
benefit activation due to a Life Event.
	 
	 	•	 	Customer must notify Fingerhut Account Services within one (1) year
of the date the Life Event initially occurred.
	 
	 	•	 	Customer will be required to provide satisfactory evidence, such as a copy of (a)
a marriage certificate; (b) a birth certificate or adoption papers; (c) the divorce
decree or court order of divorce; (d) a letter from the employer indicating retirement;
(e) an address change documentation, such as a signed lease, real estate purchase
agreement, or deed of trust; (f) a death certificate; or (g) documentation
indicating that as a result of a natural disaster customer experienced at least five
hundred dollars ($500) in damages to

 

 

	 	 	 	residence or proof that residence is uninhabitable, or other proof that customer has
been directly impacted by a federally declared natural disaster.

Pricing — Price listed below is as of date of signing of contract.

     1. $1.19 per $100 of total balance of Fingerhut credit account.

Marketing Channels — Marketing Channels listed below are as of date of signing of contract.

     1. Print including Statement message, catalog, insert, bangtail and solo direct mail

     2. Inbound and outbound telemarketing

     3. Internet and email marketing

     4. Customer Service cross-sell and order add-on

 

 

Permissible States and Territories for Safeline Marketing

As of the Effective Date, the permissible states and territories are:

	 	 	 
	States	 	 
	1.
	 	Alabama
	2.
	 	Arizona
	3.
	 	Arkansas
	4.
	 	California
	5.
	 	Colorado
	6.
	 	Connecticut
	7.
	 	Delaware
	8.
	 	Georgia
	9.
	 	Hawaii
	10.
	 	Idaho
	11.
	 	Illinois
	12.
	 	Indiana
	13.
	 	Iowa
	14.
	 	Kansas
	15.
	 	Kentucky
	16.
	 	Louisiana
	17.
	 	Maine
	18.
	 	Maryland
	19
	 	Michigan
	20.
	 	Minnesota
	21.
	 	Mississippi
	22.
	 	Missouri
	23.
	 	Nebraska
	24.
	 	Nevada
	25.
	 	New Hampshire
	26.
	 	New Jersey
	27.
	 	New Mexico
	28.
	 	New York
	29.
	 	North Carolina
	30.
	 	North Dakota
	31.
	 	Ohio
	32.
	 	Oklahoma
	33.
	 	Oregon
	34.
	 	Pennsylvania
	35.
	 	Rhode Island
	36.
	 	South Carolina
	37.
	 	South Dakota
	38.
	 	Tennessee
	39.
	 	Texas
	40.
	 	Utah
	41.
	 	Vermont
	42.
	 	Virginia

 

 

	 	 	 
	43.
	 	Washington
	44.
	 	West Virginia
	45.
	 	Wisconsin
	46.
	 	Wyoming
	 
	Territories
	1.
	 	District of Columbia
	2.
	 	Puerto Rico
	For
	 	greater clarity, the states and territories that are not to be marketed to as of the date
	 
	 	of this contract are:
	 
	Territories
	1.
	 	American Samoa
	2.
	 	Federated States of Micronesia
	3.
	 	Guam
	4.
	 	Marshall Islands
	5.
	 	Northern Mariana Islands
	6.
	 	Palau
	7.
	 	Virgin Islands

 

 

EXHIBIT M

Debt Waiver Product Terms and Conditions 

See Subsequent Pages 

 

 

	EXHIB I T M(1) SAFELINE TERMS A N D COND I TIONS teM . —:- .. ‘.. ,  ,- ‘"'~.. I  •  -’I M PORT A NT  .  :~ .
‘Review immediately the r.,-S’ “ h ·  •  ..’. ‘ “ , A<.«::I1(1nl t’ ,.” “,a · “ell ne ..
“mh:clion"' / . Plan Summary enclosed, ‘~ then sign and mail -theform below or-” “Cp ~ “ p ~” ~ If
jJ ~ n"'l,’j , !\I. (“ounf Ij ~. ~. .’ J ct f ''-’"' J-. ~ g ‘-” PrplPctinn :::nma!me~t
AC!’GilOW~edgement f)“JtJ.Ilt:· YOI!./(JI’ i-hnosing S4;:L;’!I’~! I tldm~ritJWd~~o my umt1!1tmmt in
the SaiOLlno ACCI)WH P’ro{QcHon PlQijram OHCH:~d by MclaEmnk 10 pmtm:l my l“ingsthUI Croo~ Ac(!ounl
ilnd I h~ve rt’(l!1ivEld lil” Sall)Lino flf;.:n Summnr{. F’.fnnc:hut Cr~!t ACC(JU:1f N’t::nbC’C”:
 .>\~~iow~r~t” (p((“iI~(, p’im, J\dth”:~:’11 City —,’ m:JI:-a- Zip t\ct:(Hrnk Holder
Si~:::t”::”:;:11::”=.—— rL~SE SIGN THIS FORM AND MAII~ PROMPTLY TO: Fingerhut Account SeiVicc5
6250 Rklcowood Road SL Cloud~ MN 5630 Co ngratultltiorzs on choosing I“f ‘” ~ 1I-f.r -“I ~Ii ,r:Jor
‘.~ d ,/ p-l; II \I ,.I “~,,”. ~ I ~ r_r.l au~ i< e., ''” , Account Pro[ccliofl Yaur eJJ1T:ilmeM
elJ.l’ltJ’t:f tvor7J:fh’() PJ’o/’(‘ctim/ ofyrJUr Piugerhm Ct’!!dit , f” “J d
JICC(lllJit)iJrplStpCf1Jl!C.f II at;:? ffll )IOU I ‘ ;/’ /; “r IN~JI j,lotlJl.JJ1( ,1;; #E~you.
Jflllt: i/O {1!1f.(/ncc~ — hz (m’e OJ}O/I/()J:’’ 01’ “‘btbiB~)I, S,,/eLiItr fi’cc:u~( row’
flC(lJlmt ./0;’ t1jJ It, ‘6 J]1fJl}Lbs: no !111m/My payments OJ’ //zle/;’!’! unit be t/lIt’ tl11t!
110 S’1;’LilJ(;’ 1J1tJ1u/;/y ‘/:;:,:,0 Irill 111: tl.m~.r.refj. inU’tcSl dllti:~e5 wi!!
tIm/lilli<:’ to lICC!’!!I:. 0,:, in tiN! CU(;’J1t ‘lyour de!ltiJ, the mltstdl1diflJ:,’:
IfCCOutlt b,tftfliCC’ II/J to t.i7C fl.s.ril!m’t.! l:redit flmit will be U!{U:jJ~;~l, Sec jn,~ll£C
for impo~tallt information :!bout yaul’ beJlefits, incilldinr; c1i~ibilitv con(fjtjolT,~, al1d
retain rIle — clI~I(),<e<l Piau Summary. C~aim intu,maHrln To mai\[; an eligiblo clrill11,
pleaso COlltilct Fin~IDTlll.[t Accoun[ Scrvicm;: By lVillit Fingcr!w[ Account S\lrvic()!; fj25fJ
r ·{jdgewood Honel 51, Clouci, fII1N 56302. B1/ Phono l’nl!-fl’cc HlOO’20G ·2500 (..rhi1.·
P.trl.~#E.n.v”)r;;”.,.f!,-o ~Velc0711e to J~ Ii \”,...,.I Account Protectror fiji’ Fil1gcdmr
CIlS(mnCI’S You’ve l1Ulde It smflrt choice. Your Srrfi:UllC ctll’ollmcllt provides W(l1Ty ·[i,
prorcnion of your FIngerhut’ Credle .I\CCOtH (lsr.Hcd by MCl~lBnllk). !’LEASE Imvmw THE ENCLOSED
l’tAN SUMMAIU’, II ct>lIf3ins jllll’’’’I,,-nl i:n rurm~(if)n ItbO’ut ynur cIJ,’r,r;ar.,t"' iUtll
emll“et., rDr m“ldnlt n ,(“i,n. I~ET!IlN FHIt Ytltllt [tI~CrJIU>S,

 

 

	Saf~[dlme~ ffi l c@otmt I?~’@&ect[mm P~am S~Nm1r ~ ar~ l~~~: ~~ :t ~f l mWd~ Y  fl E  ~QliIr’E!fn~~; ~r,.rC
E~~mmitmr.~ @~ ~~i~ ~1tlmt’~i:’ Sllti!:U~U~! l~,:.r,li~.t Fr.(!)[~’ft.I!’ Pwgr~m t!r.
‘If~>\i~sch YUH ff,1Wll E’~;~e,:~ t~ hs e~I!~l~~ it’~, oTml1Jl.’Il!ion ~ .. ml j!iJOI’
M~!.!l$,I~il’i!lfl(!g!tm Grc[ll~ fltf.,mmL hl lb~ ht!~it!fi~t. (tt~d t~O:fK!inO~~~ nHid“J~~ !gr,e
~mH!1jj ~’;!m( ~~~d “Jr~~~f” edm’ ~I)j Htu froTSOH ~!lto~fd In Iffe S.11~j1tt1 iitt[/Ul~i
1“6(“‘11.1’: rlo:t,!ll~’(!, ~ml mlJ Vf;.’$!td!~ #E#E~~I(tl ~’u~’” if~’1GI “C:~f(‘ rcfetr ~G
MtJ~~sattil:. clli’!lllmaft! YCtif pUfclt’l1m c! SafilUm:; J\ct.:11lmt Pwtl!cHun ~~.: ;m. o:Hion~~
bcm~m (m Rnrrerhu( Cru(Ul r.u~{!Tm~’~. Wlrellrar or riot }’(jtt llmc.lmsil tllf!; lilOllnr.1 Vlia
nn! “Hee: ymlf ;lPlll!<;;Hino for r.rellil or 11m Glhcr lQrm~ of ,my er.ir.ling r.~cdil
~tUH~~ttmol. ym~ hnf/~~ wiUt M1:~.~t~1n!~. “!he nmnthiy ‘m: roj’ SrdeUna fll-xmmt r;rnttctirm If,
~/t: f:r.nt~: I!cr .~#E#E{U{; 0’ !o“our ~(fl;lt b;!ieltlCIJ of YOUr M~l~fOiIHklffU(H:rUm~ Crm1.it
~..c:{:nt!~t al Ht’!! end uf mcdl mr.mlhfv &minf,J cydc. i-m f.mampIG~ i/ your bi’![mw~ ~!i Simi
ylm vIm be (1!i}~us:::cd jj to!! (!~ StfJ3 (~;-r9L(1iGO x .g41~ H yom’ tl:dilJn:;~ if} h:tr. 1fuin
~(HlO. fhls fCd will be pnH<‘1ed. F[lf (~;:ampff.l. if yom bii~~~1t:e is’ $6!1, ~!tm wJ!I br.
,,’%e%’C.d (1 ~{1n 01 G1 I;f;r,ts ($G~il-W[! i .M). Yilt! i1~wn tire It~y.tlt fa r.j’im’:J::~
$~cU!1e l\[!cGtHlI Pwt~Ha(j ;;\ tlny tlmo. H y{)U r.aner.i ‘viUl~n 30 tli1~’5 of ynur nnmJkilen~
d:Huj Wit wm rorm-!fl your Silfl”!Ulle A~t:nOf!{ Pwtf!l.!UUH len. VJe m:\)’ c;mc~!l SnreUnn
AC:’;Gt:n~ Pmle(.Hotl iii :my timP.’. Wr. will no! rc!.fu{!e imy t!:-:iTIliid bcnnflts ym.c ~m
almn~y mc~i~ifiq at Ill!! lima ~l ollr c“llctJli~lior. naticG. fillg~rhut f{!!’;CfVr.s lhe riuht to
;{(liLIslIJfHtr!H!s r“md pricflI~t WHit 30 ~flP/5 prinr wriHr.n no!llir.”,I~!l to Y’lU of the
r.tmllQfJ. BauorH”‘l OC!r:ctitltfmr sarDUnc- J\cr.nunl Prow~licm ircmzm: your’
Mr.l\lOrtnlifFin!itH“lIul CrmrH AGcOtmt 1m up tr:t st~ ITwnthfi in trw (WWlf thi11 you hm:omCj
uncmplnyod o-r dir.;,{!llud, pt01Jlthit! ill! r,[\.mlfihm!~ ;n~ met (:)an “CrHH.lf!jonr, for
Unnmployrruml [1ctfcfit Itctns’allrllJ” itnd ‘ICHtlrJjlinll~i fer Di~mbi’ily Ommm !\CUV3n(ln”
bda~1l.) In (h~ Clf~m of your dC;!ih, S.ffc!.iflrJ Account ProUICUOrl win Willvr; Y{jW’ rmHro
f.l;1!ilHr.n lIt 01 (1m ([ilIa or }rour dO;tlil {{Ill to yow’ ;JM:ionnd cmtIH lfmH] prcwirfm[ air
r.omJiUnns ;“im mnl_ ~ml your MnlilB:rnlc/Flnpflr!l1ll GrmH! I\cr,mmt VJHI hl~ r.I{1nmJ. (Sao
“C01H!lliolls for Il~ath ar:iI,:lit” billow.) 1h: Itmn “Ir~m:f.!” nlt!.\1n:; filii! WD \’’liU nm
im!to~a tl ulinimum pnymnnl tille, lnt~ fr.”~. or 5i1feLinn Accourlll’mior.tioll la~” III ~1l~
IliHilllJ petlUli ill W!liclt 17mIT..!HI:; :tH? {lrnvldcrl. Your ilCCfJlrnt !i~atufi wHit
MGIi\9jlnt~ wJII hI’! rU.!L’lm uptm tmrwfit tl(~n’IJ;lni)n ,lm:nfJ ll11mu biJtinu pr.riudr;, ilnd
nl’! i1~P“f1~ wff~,C!liuO :! tI~lo~idrMlna cnnIH ~ll~Hf:-: wHh f~1{!ttl(3:lHt~ wi!! [)[! r,ent 10
ilfW cmdit rGtJ01(il1!1 agttllcy li!lring li1ur.~ hillil!:) [Wrion:.. for c~nmllla, it ;’(Jllr
i{Cr.O!l!l! ;~ 30 day~~ d~!nr.t!lcn! trfiulrl you flel/vnl!! h!lnrlfiin:, !1m oSliHn:; w!H mm~il!
imclliin\l~d willie your n[:~allfit I!. fwT.tlll. {ile,i~e !laic ill,l! yno wil! lir.lin;.hic 10
1J~;tt1(Jt!rM”(.!l<!111(il:llIilml1U1 Cre~it AccoUI11 ,Itlo inlcnml will e{tmfHH~ to t{~cnm ott
your OUf!li:mdilljJ ~jjil:fn{:!’i while S;l{eUlHl ACCOlHli Pru:nntir.n i~ ~t
..(~Jalr:d ~HH11NH!r
ilcr;cwnt t:·r frozm1. ~f ~~ r.{~~n:zm~mr~~ :.tW ~lMlt y~~H~#E F!M;iHilijnfJfjH~(:1~m~ G,mdlt
 ,f’1.!:cr.tml t~l!m !~1 ‘lIm:liil!J ·11(§t ~Ifu~ ti~mrf(!1S~ ;fin: ‘~j l~#EjC’ tlttrBhnt (1.{
wmH~~~ y~{1 tl~tffl! iwm~ ~j’11H~aI lim Sv.ffI!!1.9m:;’ .. 21 Cfr.n ger~~:i~~ t1i yiOO’f
n~1~Hjlf~!m~,nt~ 3j 1~!! #E~m~~l~ !1Jit va:11f tU~~{~~i ~~il~meiCt:~ ~)!i”. 4) str. mOOih1t Q,m;u
~3~t)~~~’&. ~~~!t m’:~~1e,!t ~ ti[;’;~(\,tm~ ~#Eini tftll ~~.:~tI~w;~1:Irr:l :m.t ·) ~~ wm ~r.
rn~~)l;!m.r-~~ln 1~Y:i 1:~~iti!lr~n mo:m5~ ~t~\jI’iI~t~~r. ~~~“t, ~’!l ~~’i:~l:~tr.iJ tn ~#EOOt
r’.1:!t{Jlf,w;tt~rnlitf.W.1hei~ Cfodu~ Atr.~p~l:t ~J~~imttl(r,t li~l t~~ G~l.1.ilm~ (,v~ ymPi’
@~1hf t~;\f, ~~m~ b~3tl#Et~1 tEl d~ ~~H~ d~~ af Y’~{W#E dm~;1Ur. ~Uf. ~G )’ItfW i~~jitt(:t2
{:1oTlt’m Hmilj 1.+~ !U~ \Vi’:;~tlt!t~ {t#Ej;Qll~a~~rI ;<J,~ cogltfi~~mt$: aft:: m~) q-mtl ~~m~l
M~!~r~~nW’fing~~I~~1~ Cftltm .fr.:~:iH~:il[ t~iif: b1r. tktt>r.r~. r,rra,i{~i~.n!l fm”
rJnel:~pfn)ln1(mt Utm~m !itnVa:~h“l I) ‘((fij~ 11nW;1 b;£! mil \?oJ wo~1c Wi’” 3I;’“j rIC” mme
(;nm:sCtHWe d~ys fH~J}r fo m~\~~Gnr~ ;: Ift!’lIl~fiS{ ~(.ir tlft:’~fn.~\. .. ‘1tOH I1;Ke;~ hiE/a
h~n t”!(Ui!ing l~~ n joh ~{:hicil ~m:nUB{1 3ef Ur m.\:Ml! how!; Der W!!~j~~ l’/~ :(1U{1)f to ~limw{
t:ln wl(!mplol~J1lTlli bl11Wifl ~mllY:Uifm rmlr.mr~t .. You ~re mj{ eligible ~m U~e
t~I(i!nrJloynnH\~ flJJneni rf ~rcu i1W ~e\t ... emrlnyed. Hctimd md p8(m~li!l’llll’{ tll’1;1~’nd
:ll~COl1l1l h,,j(lurl; c~nfM H:qUr.~t hour-Hi :tr.HvllHnrt {/Hfl ~o mt!lml.!loym~f~t .. Vn1H
Unenlfli{Wtrmn~ mu~ U~ 6nuoiumtuy. .. Y(m must Ul! f.~~m.iI!]tl in .sMCUfi~~ 11J!:r.:Clmf Pm{ocHnn
tnt UH!m rnnmi~$ . prior to 1ti(j!W:;!lIlQ b~lmIi! ~tlivi\ilo” d\l~ l() WlDffi!llcymiiU!. {) YoU
GQm1{j~ ~ul1mH 11 be..’“Jcill m:!lvi.tlieJf1 ~(l[;unSl Ow w ~tn Uflum;U1wmf.’!JH r.ommtnrl Uj~lt we
ilm!ct ~rlmi’ld!l11m~drr.d fm U11! tulf ~\jy’. . t\’mnllj bmmilt pmimL “ I(OU wlR ~H~ fi1[fUir8{j
to zuL’mit a C{HI~p~lr.d HGmHH AcliviHion J1pniictlnClB form (Unl il r,::Ot~y of your Stilln
tml“ln~j1fc~l~rti.ml j"(!or.4!(n~iDn ftinrJ PfOvldnd ttl YuH by 010 S{;da Jtl 1,vhlCOY!IH
txJJl!l.r.:~ unr.mplaymi:nl bf!11t!fiI:;~ .. Fil~O(l:l~ll~ Acc;r11ln~ SSIVit!QS wlH v0I1(y U1t~
jnformtllloo g~Jtm ;lnO UvnluaW your rmluc(·jt 10r lil!nnn~ in;livi1!lolt. It U~Ol1 jIPJH”()V~!
(If. yaw Bf.lflciil Acl~lilIion f~~pGCi’ltiOfi. ymu’ tamcfit!l wlH un wtf(lilClivp. to Ih~ t“iur 01
YQI!f lir:.~ dOll’ 01 uunmp\oyuwnt, in wlllr,h C.1511 ;IllY dr!1im”!UfJllr:y f~tilHnu 10 lim
trnnmproyrtU.lnl cantliUan win l’m dt!;HcCJ (if Jiiml!!n!). or 1hmr: O1flliHlS ilftnt your-
01l1“f!1lmtlH~ dtllrl tn ttm pl(J!Jmm~ ;\f!~n.lIIlY nr.giltil!{! !j~;j(U5 ·f)r fnfJfiJ(il1n wi!{ 00
CiOilwd if H WiI!.! tl rOf.tiII (if rile tJ:U~1u~plo!!mrH11 condition ii1“J! ;rro~(~ ~r1rcm monlhs
nHct your dHrolimcnt lIma in Ihn !,rormUTI. <T E;u~ll mmHh you wW 1m iO{t!!iW11 to !JIVU I1ftWf
Ih~!l you wi\{ cnntllllw t ·o rncr.rvn · ‘,Jll.lullp!oymmn hr.nl1tl1ft. r,Ct:t~p!:mf’l vrHHir.i1Unn
ill::lwlr.B a CflPY of lllr.clrt1ll;c (j(1CHmolllntlml of wee!))! of nnmrlploYHl(!!1l pnymnril or
oHmr ~:ifl1i!nrvMmcilti!1!“1, “ You i ·v!ll HoI nlfj!ilf~1 [O( l1tHltr[llf., if Yullr ilr.:nnunt [!;
!~Crlom:!y !!!!llntIIWm {mow 1h,!f1 GO r1~ly!> fl~IS1 (life) \’J!UUl we r0’11cw yOTlI’
;!Jipllr:mliol1 {O( lmt~nm!-l, GrmtlHluns lor Oi!;~bi!ilv [lmwri! !lcIiv~llml o \’OIr mW;1 be
unroHmll1l Snrel.lll~ [ICCOlI!lI ProIWi,,,, lor M (/,Y:1 [lrlr,r 10 roqllc,ling bOIlOfil
 ,ctiv;JIiOri 1IU8 to ti1501bilily.  •  Yon mU~1 UP, 1I1l,blo 10 WOrf, dll!’ to lltll iJl~nhilily. ..
YalJ rrrit Do ou of ma! ttlf 30 or moro oll.5lrr.rHitl C
; dilY~’i fJrrtJT 40 I1wlling n
tllJ1lr.fit nclivnllull rn~un5L ~ Mt1 dj~abliilY Dr mn(!rlr. har1!.H!t ik;I!lJi!lil1t1 wqllmH ;::m
be !;!fhn’IHlnd ~ot 1’rr.#Eij~l~tini,l conliillcns untl! you hn!1D twen ol1r()llmi in Snfel.inn
f,r.COIIIl! Pl1Jlcctioli fill’ !rl~ nWlltiH,. ·Ym.l mum II»VC tJucn wor\illl~ in a 1011 which
elll~Il~:1 ~iO I}r morn 110HW jHU’ \’Jl!tlj~ itl Ijnlnr to suhmit ;) honum m:thmllDH tclQUl’Wi far
 ,1 rJhmblt1ly~ VatJ il(C1101 r)1i1Jlb~v for tim r11t1tihjJji}’ ilOlltifil if )’flU nrc rvlimdy
fJfmn1H~C!ntly [firritlllmt. or t!!H-nrnpiQynrt ... Yrm r.C!ifiUi!U: (1Ul!il(V ~UW ~ll$c.hilJ~~1
~mdHs dus ~t~ a~ (;~~IH~hi~n1.d 11) ~mml~! ~r.mn;mr.y, IW~) !!~9111Wll~!~Y !:I!(!.j!lm~!’llI
irJjlillii!!~. ‘” ~#Em~ ~~I~:ffl~~ re"'!:uhm!ft ;3 frmp!fm ~~c~ftnRrm ij~~ltl0!l: ~tus g:Qj 8
di!li1W~~ Ca“I!~iuli Wn! wn II:I~B algt:,“ll’/ M,Il0lW far lIm M! S~!I#EmC)lI!~1 vr..mm~ ~l.f~r.imt
 . 01 rin~~H~“t~{ M;::;!ttm~ Scw~.c-rm ~~~M V~~~~9 ~~flu ifJ!a.Hrti1~i!!!’~fi ufwen ~:rl:ff
(fif~t111l y{!nr ~ffl~m~r.l WOir lmml;il e;t;l.tJ~#El~i“Hll. .. Yl.1U ‘l!’liU n~~ “Wtlmy ffn!f
~li(:7mm!.: H yrm:r ~t~!orm“H t!~ ~~61l~01£~.~.lr tfeiuKluegn {moUl lh~~t {’)U day!! ~$~ dj~}
~t.;~~n t~l’~ teiF~EJW’ y,t1tt( ;jppik:lllion tlrf !le,neiltr. Cr.II~IIl~ fin VelI1fI BClI~1i1 oil
YDtf rnllfl~ an omtdw.~ l~ 5;’iff;U!t(! ACF,~~u’i1t r!{H~c~tt:;n fen ~~~il“e~ r“tl<mUiG f,lflot
to {~ eH donUt W b!J fdq;R’~ f(fr lhm ~~rmlf1 fJl’li19fiL  •  II drlall! t~JI!m!:i!1~ mllsl tw
IjW’~:IIJj.l. U~DlI roceipl at !lgdl(! C!!Hilk:~!tc. your ,1(:mlml1 bitlmltil v;HI in! WillI/cd up
{o ynm c’mf~~ limit ami yuur ar.euuul ‘!1m ho dm~mJ. .. VOrJ tVm w.t~ qUi1I~fy for R1m~~ms H yf;ur
:ltccmn! i~l r;~~lnu;,!v deIJlH/UrlIH (/now thim fiO day!: f:mtl dtre) ~uhrm vm re’J~!JIN ~mUi
iiPIllic:ml1Jl (nr’[mnr.1it:;:  •  TlJtl;ik you f01~ elu“otling i’il Safe Lille, A r: C 0 u nIP rot
I’ c t ion For your security, plca$l: Fil[ Ollt the form on the oth~r ~idc of this panel and mail
prompdy to acknowledge rcct:ipt of your enrollmenr informacion. I

 

 

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til!!> PJiln SumlHary fur your rc{unh. Clolm IlIformallon:Y“fMiw. im ~’I!lI[)iNI’l~m, !,1~;;1’”
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6250 /l!dUC!itJeJDd Ro~d .. 5i~ ([Dud, MN 56303 By I’holl~:iplHrcc 1-800-203-2500 .:.~
oIr~:-!ll,Jl~ !l”;’%;il~:rJIl IMPORTAN — ... i Please review .ImmedIately the · -.. _,j 5 h L “ .
‘.-<1 .. a .e.. . [n.e , J\Cl(U.lnt . ~_ .-~ I’ral“cllan Plu-”;~ Plan Summary, then sign and, ..
‘:.; mail this form.” ~ ~ ;,,;. ~ <:; .0;- ~. i’!l, :.2 “- ~: .. -:: :3 ¥. ‘) ..: .,’~ Q) r ~-.J
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n I) III S .~c. -, ! .. ~:,.. [or Fing“rhut customers .~ .., . You’ve m;J(je CI smart choice.
Y01Ubf SafelJine en!ioi!fni1:ent pr~)vides ~N~Jr.Ty-fl[P-e prote.r;:tk~n of your fil’lge“hm Cr~djI
Accoum {iS51J.(;’d by Me\:iJ8all’lk), PLEASE flEVIEWTHEENCLOSEO PLAN SUMMARY, ·It contLlin~
imp0I’t,1nt lnformalion a.bOtJl your covt:wQI! ilnd (ont<lcts for making ;1 (\.:110“1,
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Exhibit N

Services Provided by Company

General Program Management

	•	 	Dedicated manager of the Program and liaison to WebBank
	 
	•	 	Management of the origination function

	 	•	 	Credit bureau reporting
	 
	 	•	 	Inventory management
	 
	 	•	 	Product development and hard-coding

	•	 	Management of payment processing
	 
	•	 	Record maintenance, storage, retention and retrieval

Marketing

	•	 	Development of products, marketing plans, collateral materials, educational inserts, surveys
and support materials
	 
	•	 	Print production of collateral
	 
	•	 	Application fulfillment
	 
	•	 	Market research
	 
	•	 	Notification to Borrowers of any change in terms

Credit Approval (based on WebBank credit policies)

	•	 	Customized programming to establish credit and fraud controls, meet servicing
requirements and adhere to WebBank criteria
	 
	•	 	Control Account creation, review and regular audit
	 
	•	 	Review application for completeness and fraud
	 
	•	 	Application processing
	 
	•	 	Use of credit review system to approve, decline or hold accounts, including credit bureau
analysis
	 
	•	 	Adverse action notification
	 
	•	 	Application retention, storage and retrieval

Credit Control

	•	 	Account management strategy recommendations and implementation (upon approval by WebBank)

	 	•	 	Credit line management
	 
	 	•	 	Authorizations
	 
	 	•	 	Reissue

	•	 	Behavior and credit scoring

Customer Service

	•	 	Customer education
	 
	•	 	Customer website for account status information and online payment options

 

 

	•	 	Voice response unit, 7 days, 24 hours
	 
	•	 	800 number for inbound customer service calls
	 
	•	 	800 number for application by phone
	 
	•	 	800 number for Account activation
	 
	•	 	800 number for lost/stolen calls taken by live representative 7 days, 24 hours
	 
	•	 	Account retention
	 
	•	 	“Day-of” payment processing (Western Union, “walk-in service”, MoneyGram, check-by-phone
payment vehicles)
	 
	•	 	Dispute handling
	 
	•	 	Charge-back processing
	 
	•	 	Financial and non-financial adjustments to Accounts
	 
	•	 	Customer information updates (name, address)
	 
	•	 	Quality assurance monitoring
	 
	•	 	On-going product, compliance and procedural training for representatives

Collection/Fraud

	•	 	Issuing monthly billing statements
	 
	•	 	Processing payments on Accounts from Borrowers
	 
	•	 	Inbound and auto-dialer driven outbound calls on delinquent accounts according to
documented phone and mail collection strategies
	 
	•	 	800 number for collection call backs
	 
	•	 	Skip tracing
	 
	•	 	Bankruptcy, deceased processing
	 
	•	 	Charge-off processing
	 
	•	 	Re-age processing (according to bank policy)
	 
	•	 	Quality assurance monitoring

Risk Management

	•	 	Tracking and analysis of products and portfolios
	 
	•	 	Reporting

Settlement and Reconciliation

	•	 	Daily settlement with WebBank
	 
	•	 	Daily balancing

Legal/Regulatory/Compliance

	•	 	Review of all collateral (solicitation pieces, customer education pieces, customer
service and collection communication pieces, etc.) for adherence to regulations
	 
	•	 	Proactive research on laws and regulations affecting Program
	 
	•	 	Compliance and internal audit programs, with reports documenting findings
	 
	•	 	Research, documentation and drafting of regulatory inquiry responses

 

 

Exhibit O 

Service Level Standards

Customer Servicing and Collections Functions

	 	 	 
	Service to be Provided	 	Standard
	
Customer Servicing and Collections Functions

	 	 
	Company will utilize reasonably industry accepted standards and practices to affect customer
service, collections, correspondence and payment processing consistent with the composition of the
customer base being serviced. Company will comply in all material respects with
Applicable Laws and regulations governing the business as well as the Account Documentation.
Examples of this level of service include:
	 	 
	 
	 	 
	a.    Call Center Functions:

	 	 
	 
	 	 
	          •    Company will answer 70% of incoming
customer service calls within 60 seconds,
determined on a monthly average.

	 	 
	 
	 	 
	          •     Abandon rates will not exceed 6% determined on a monthly average.

	 	 
	 
	 	 
	 b.    Collection Functions — applies to good phone delinquent Accounts where the Account
balance is $50 or greater and the Account holder is not charged off, bankrupt, deceased,
protected by a cease and desist order, institutionalized, or actively enrolled in a consumer
credit counseling program: Company will attempt to contact 2 + cycle delinquent
Accounts for which no successful contact was made or payment agreement reached no fewer than 5
times per month and Company will have a monthly average attempt penetration rate on 1+ cycle
delinquent Accounts of greater than 80%

	 	 
	 
	 	 
	 c.    Correspondence Functions — Company will acknowledge written disputes in all material
respects in accordance with the Billing Rights Notice and Applicable Laws and regulations
including, but not limited to, Regulation of the Truth in Lending Act.

	 	 
	 
	 	 
	 d.    Payment Processing Functions — Company will process customer payments in accordance
with Account Documentation and in material compliance with Applicable Laws and regulations.

	 	 

 

 

	 	 	 

	Data Entry (received by 1:00PM PST)
	 	 
	Non-monetary changes

	 	100% within 5 business days
	File maintenance changes made to an Account

	 	100% within 5 business days
	New account application entry

	 	100% within 5 business days
	 
	 	 
	Monetary Entries (received by 12:00PM EST)
	 	 
	Payments (identified)

	 	100% same or next day
	Payments (unidentified)

	 	Research within 5 business days
	Adjustments

	 	100% within 5 business days
	 
	 	 
	Statements 
	 	 
	A periodic summary of Account activity will be mailed to the Borrower

	 	Each cycle, in accordance with regulation
	 
	 	 
	Monthly Statement Storage
	 	 
	Information set forth on the Account statement will be stored electronically

	 	100% for 3 months
	 
	 	 
	Balance/Status Inquiry
	 	 
	Information provided to Borrower regarding their account

	 	100% same day if telephonic; otherwise, 5 business days
	 
	 	 
	Transaction Inquiry 
	 	 
	Information provided to Borrower regarding specific

	 	100% same day if telephonic,
	transaction within last 3 months

	 	otherwise, 5 business days
	 
	 	 
	Computer letters and Notices
	 	 
	Computer generated letters and notices to Borrower

	 	Mailed according to strategy
	 
	 	 
	Credit Bureau Reporting
	 	 
	Account holder files will be sent to those credit bureau

	 	Monthly
	reporting agencies to whom the Company/Bank reports
	 	 
	using the required format
	 	 
	 
	 	 
	MIS Report
	 	 
	Hard or soft copies of daily, weekly and monthly reports

	 	100% within 5 business days
	 
	 	 
	Collections
	 	 
	Blocking of bankrupt and deceased Accounts

	 	100% same or next business day
	Outbound calls on delinquent Accounts

	 	According to strategy
	Automated charge-off processing

	 	100% within 1 business day of
	 

	 	charge-off cycle

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