Document:

DAYWORK DRILLING CONTRACT

 Exhibit 10.20 
 NOTE. This form contract is a suggested guide only and use of this form or any variation thereof shall be at the sole discretion and risk of the user parties. Users of the form contract or any portion or variation thereof are encouraged to
seek the advice of counsel to ensure that their contract reflects the complete agreement of the parties and applicable law. The International Association of Drilling Contractors disclaims any liability whatsoever for loss or damages which may result
from use of the form contract or portions or variations thereof Computer generated form, reproduced under license from IADC. 
 Revised April, 2003 
  

					
		 	

	  	 INTERNATIONAL ASSOCIATION OF DRILLING CONTRACTORS
 DRILLING BID PROPOSAL
 AND
 DAYWORK DRILLING CONTRACT - U.S.

 TO: Windsor Energy Resources, Inc. 
 Please submit bid on this drilling contract form for performing the work outlined below, upon the terms and for the consideration set forth, with the understanding that if the bid is accepted by
_____________________________________________________ this instrument will constitute a Contract between us. Your bid should be mailed or delivered not later than ___________ P.M. on ________________, 20 ___ to the following address
_______________________________________________________ 
 THIS CONTRACT CONTAINS PROVISIONS RELATING TO INDEMNITY, 
 RELEASE OF LIABILITY, AND ALLOCATION OF RISK – 
 SEE PARAGRAPHS 4.9, 6.3(c), 10, 12, AND 14 
 This Contract is made and entered into on the date hereinafter set forth
by and between the parties herein designated as “Operator” and “Contractor”. 
  

			
	OPERATOR:	  	Windsor Energy Resources, Inc.
	Address:	  	 14313 North May Avenue
 Oklahoma City, Oklahoma
73134

		
	CONTRACTOR:	  	Bronco Drilling Company, Inc.
	Address:	  	 6601 S.W. 29th
 Oklahoma City, OK 73179

 IN CONSIDERATION of the mutual promises, conditions and agreements herein contained and the specifications and
special provisions set forth in Exhibit “A” and Exhibit “B” attached hereto and made a part hereof (the “Contract”), Operator engages Contractor as an independent contractor to drill the hereinafter designated well or
wells in search of oil or gas on a Daywork Basis or purposes hereof, the term “Daywork” or “Daywork Basis” means Contractor shall furnish equipment labor, and perform services as herein provided, for a specified sum per day under
the direction, supervision and control of Operator (inclusive of any employee, agent, consultant or subcontractor engaged by Operator to direct drilling operations). When operating on a Daywork Basis, Contractor shall be fully paid at the
applicable rates of payment and assumes only the obligations and liabilities stated herein. Except for such obligations and liabilities specifically assumed by Contractor, Operator shall be solely responsible and assumes liability for all
consequences of operations by both parties while on a Daywork Basis, including results and all other risks or liabilities incurred in or incident to such operations.  
  

	1.	LOCATION OF WELL: 

 Well Name and Number: Windsor
Energy Resources, Inc. / Term Contract – Bronco Drilling Rig #15 
 Parish/County: _________________________ State:
Texas     Field Name: _________________________ 
 Well location and land description: TO BE DETERMINED BY OPERATOR

 1.1 Additional Well Locations or Areas: To be specified by operator 
 Locations described above are for well and Contract identification only and Contractor assumes no liability whatsoever for a proper survey or location stake on Operator’s lease. 2. COMMENCEMENT DATE: 

Contractor agrees to use reasonable efforts to commence operations for the drilling of the well by the
                     day
                    , 2006, Upon completion of Rig #15 in the Oklahoma City yard and contractor has scheduled rig to move to the first
(1st) well designated by Windsor Energy. 
  

	3.	DEPTH: 

 3.1 Well Depth: The well(s) shall be
drilled to a depth of approximately 12,000" feet, or to the formation, whichever is deeper, but the Contractor shall not be required hereunder to drill said well(s) below a maximum depth of 15,000" feet, unless Contractor and Operator mutually agree
to drill to a greater depth. 
  

	4.	DAYWORK RATES: 

 Contractor shall be paid at the
following rates for the work performed hereunder. Actual mobilization costs plus 85% of the dayrate from rig release of prior well to spud of following or a mobilization day rate of well SEE SPEC PROV. ITEM 2 
 4.1 Mobilization: Operator shall pay Contractor a mobilization fee of
$                     $ N/A per day. This sum shall be due and payable in full at the time the rig is rigged up or positioned at the well site
ready to spud. Mobilization shall include: All Move in, and Rig Up of drilling rig and equipment. All rig down and move out of drilling rig and equipment. (Including, but not limited to, all permits, trucking, forklift and cranes). 
 4.2 Demobilization: Operator shall pay Contractor a demobilization fee of $ Same as 4.1 or a demobilization day rate during tear down of $ N/A per day,
provided however that no demobilization fee shall be payable if the Contract is terminated due to the total loss or destruction of the rig. Demobilization shall Include: Operator pays all trucking, dozer, forklift charges or other associated
mobilization costs. Operator pays 85% of dayrate from the time trucks first arrive at location until spud of subsequent well. 
 4.3 Moving
Rate: During the time the rig is in transit to or from a drill site, or between drill sites, commencing on SEE SPEC PROV– Item 1, Operator shall pay Contractor a sum of $ N/A per twenty-four (24) hour day. 
  

					
		 	(U.S. Daywork Contract - Page 1)	  	Form provided by Forms On-A-Disk
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 Revised April, 2003 
  

 4.4 Operating Day Rate: For work performed per twenty-four (24) hour day with Five (5) man crew the
operating day rate shall be: 
  

																	
	 Depth Intervals
	  	 	  	 	  	 	  	 	  	 	  	 
	 From
	  	 	  	 To
	  	 Without Drill Pipe
	  	 	  	 With Drill Pipe
	  	 
	 0"
	  		  	T.D.	  	$	  	  SEE SPEC PROV -
ITEM 2
	  	per day	  	$	  	 SEE SPEC PROV - ITEM 2
	  	per day
	  	  		  	  	  	$	  	  	  	per day	  	$	  	  	  	per day
	  	  		  	  	  	$	  	  	  	per day	  	$	  	  	  	per day

  

							
	Using Operator’s drill	  	SEE SPEC	  	per day.	  	
	pipe $	  	PROV. – ITEM 2	  		  	

 The rate will begin when the drilling unit is rigged up at the drilling location, or positioned over the location
during marine work, and ready to commence operations; and will cease when the rig is released after pits are clean and at such time moving rates shall commence. 
 If under the above column “With Drill Pipe” no rates are specified, the rate per twenty-four hour day when drill pipe is in use shall be the applicable rate specified in the column “Without Drill Pipe” plus compensation
for any drill pipe actually used at the rates specified below, computed on the basis of the maximum drill pipe in use at any time during each twenty-four hour day. 
 DRILL PIPE RATE PER 24-HOUR DAY 
  

																								
	 	 	 Straight Hole
	  	 	  	 Size
	  	 	  	 Grade
	  	Directional or
Uncontrollable Deviated Hole	  	 Size
	  	 	  	 Grade

	 $
	 	N/A	  	per ft.	  	  	  		  	  	  	$	 	 	  	  	per ft.	  	  	  		  	  
	 $
	 	  	  	per ft.	  	  	  		  	  	  	$	 	 	  	  	per ft.	  	  	  		  	  
	 $
	 	  	  	per ft.	  	  	  		  	  	  	$	 	 	  	  	per ft.	  	  	  		  	  

 Directional or uncontrolled deviated hole will be deemed to exist when deviation exceeds Ten (10) degrees or when
the change of angle exceeds three (3) degrees per one hundred feet. 
 Drill pipe shall be considered in use not only when in actual use but
also while it is being picked up or laid down. When drill pipe is standing in the derrick, it shall not be considered in use, provided, however, that if Contractor furnishes special strings or drill pipe, drill collars, and handling tools as
provided for in Exhibit “A”, the same shall be considered in use at all times when on location or until released by Operator. In no event shall fractions or an hour be considered in computing the amount of time drill pipe is in use but
such time shall be computed to the nearest hour, with thirty minutes or more being considered a full hour and less than thirty minutes not be counted. 
 4.5 Repair Time: In the event it is necessary to shut down Contractor’s rig for repairs, excluding routine rig servicing, Contractor shall be allowed compensation at the applicable rate for such shut down time up
to a maximum or 8 hours for any one rig repair job, but not to exceed 24 hours of such compensation for any calendar month. Thereafter, Contractor shall be compensated at a rate of $ - 0- per twenty-four (24) hour day. Routine rig servicing
shall include, but not be limited to, cutting and slipping drilling line, changing pump or swivel expondables, testing BOP equipment, lubricating rig, and ___________________________. 
 4.6 Standby Time Rate: $ See SPEC, PROV, ITEM 3 per twenty-four (24) day. Standby time shall be defined to include time when the rig is shut down
although in roadiness to begin or resume operations but Contractor is waiting on orders of Operator or on materials, services or other items to be furnished by Operator. 
 4.7 Drilling Fluid Rates: When drilling fluids of a type and characteristic that increases Contractor’s cost of performance hereunder, including, but not limited to, oil-based mud or potassium chloride, are in
use, Operator shall pay Contractor in addition to the operating rate specified above: 
  

	 	(a)	$20.00 per man per day for Contractor’s rig-site personnel. (including but not limited to Tool pusher) 

  

	 	(b)	$480.00 per day additional operating rate; and 

  

	 	(c)	Cost of all labor, materials and services plus 48 hours operating rate to clean rig and related equipment. 

 
 4.8 Force Majeure Rate: $ 85% of Dayrate per twenty-four (24) hour day for any
continuous period that normal operations are suspended or cannot be carried on due to conditions or Force Majeure as defined in Paragraph 17 hereof. It is, however, understood that subject to Subparagraph 6.3 below, Operator can release the rig in
accordance with Operator’s right to direct stoppage of the work, effective when conditions will permit the rig to be moved from the location. 
 4.9 Reimbursable Costs: Operator shall reimburse Contractor for the costs of material, equipment, work or services which are to be furnished by Operator as provided for herein but which for convenience are actually furnished by Contractor
at Operator’s request, plus ten (10) percent for such cost of handling. When, at Operator’s request and with Contractor’s agreement, the Contractor furnishes or subcontracts for certain items or services which Operator is required
herein to provide, for purposes of the Indemnity and release provisions of this Contract, said items or services shall be deemed to be Operator furnished items or services. Any subcontractors so hired shall be deemed to be Operator’s
contractor, and Operator shall not be relieved of any of its liabilities in connection therewith. 
 4.10 Revision In Rates: The rates
and/or payments herein set forth due to Contractor from Operator shall be revised to reflect the change in costs if the costs of any of the items hereinafter listed shall vary by more than 0 percent from the costs thereof on the date of this
Contract or by the same percent after the date of any revision pursuant to this Subparagraph: 
  

	 	(a)	Labor costs, including all benefits, of Contractor’s personnel; 

  

	 	(b)	Contractor’s costs of Insurance premiums; 

  

	 	(c)	Contractor’s cost of fuel, including all taxes and fees; the cost per gallon/MCF being $NA; 

  

	 	(d)	Contractor’s cost of catering, when applicable; 

  

	 	(e)	If Operator requires Contractor to Increase or decrease the number of Contractor’s personnel; 

  

	 	(f)	Contractor’s cost of spare parts and supplies with the understanding that such spare parts and supplies constitute 20 percent of the operating rate and that the parties shall
use the U.S. Bureau of Labor Statistics Oil Field and Gas Field Drilling Machinery Producer Price Index (Series ID WPU119102) to determine to what extent a price variance has occurred in said spare parts and supplies; 

  

	 	(g)	If there is any change in legislation or regulations in the area in which Contractor is working or other unforeseen, unusual event that alters Contractor’s financial burden.

  

	5.	TIME OF PAYMENT 

 Payment is due by Operator to
Contractor as follows: 
 5.1 Payment for mobilization, drilling and other work performed at applicable rates, and all other applicable
charges shall be due, upon presentation of invoice therefore, upon completion of mobilization, demobilization, no release or at the end of the month in which such work was performed or other charges are incurred, whichever shall first occur. All
invoices may be mailed to Operator at the address hereinabove shown, unless Operator does hereby designate that such invoices shall be mailed as follows, as specified by operator _____________. 
 5.2 Disputed Invoices and Late Payment: Operator shall pay all invoices within 30 days after receipt except that if Operator disputes an invoice or any
part thereof, Operator shall, within fifteen days after receipt of the invoice, notify Contractor of the item disputed, specifying the reason therefore, and payment of the disputed item may be withheld until settlement of the dispute, but timely
payment shall be made of any undisputed portion. Any sums (including amounts ultimately paid with respect to a disputed invoice) not paid within the above specified days shall bear interest at the rate of 2 percent or the maximum legal rate,
whichever is less, per month from the due date until paid. If Operator does not pay undisputed items within the above stated time, Contractor may suspend operations or terminate this Contract as specified under Subparagraph 6.3. 
  

					
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 Revised April, 2003 
  

	6.	TERM: 

 6.1 Duration of Contract: This Contract
shall remain in full force and effect until drilling operations are completed on the well or wells specified in Paragraph 1 above, or for a term of TWO (2) years
                    , commencing on the date specified in Paragraph 2 above. 
 6.2 Extension of Term: Operator may extend the term of this Contract for NA well(s) or for a period of NA by giving notice to Contractor at least
     days prior to completion of the well then being drilled or by
                                        
                     
 6.3 Early
Termination: 
 (a) By Either Party: Upon giving of written notice, either party may terminate this Contract when total loss or destruction
of the rig, or a major breakdown with indefinite repair time necessitate stopping operations hereunder 
 (b) By Operator: Notwithstanding
the provisions of Paragraph 3 with respect to the depth to be drilled. Operator shall have the right to direct the stoppage of the work to be performed by Contractor hereunder at any time prior to reaching the specified depth, and even though
Contractor has made no default hereunder. In such event, Operator shall reimburse Contractor as set forth in Subparagraph 6.4 hereof. 
 (c)
By Contractor: Notwithstanding the provisions of Paragraph 3 with respect to the depth to be drilled, in the event Operator shall become insolvent, or be adjudicated a bankrupt, or file, by way of petition or answer, a debtor’s petition or
other pleading seeking adjustment of Operator’s debts, under any bankruptcy or debtor’s relief laws now or hereafter prevailing, or if any such be filed against Operator, or in case a receiver be appointed of Operator or Operator’s
property, or any part thereof, or Operator’s affairs be placed in the hands of a Creditor’s Committee, or, following three business days prior written notice to Operator if Operator does not pay Contractor within the time specified in
Subparagraph 5.2 all undisputed items due and owing, Contractor may, at its option, (1) elect to terminate further performance of any work under this Contract and Contractor’s right to compensation shall be as set forth in Subparagraph 6.4
hereof, or (2) suspend operations until payments is made by Operator in which event the standby time rate contained in Subparagraph 4.6 shall apply until payment is made by Operator and operations are resumed. In addition to Contractor’s
rights to suspend operations or terminate performance under this Paragraph, Operator hereby expressly agrees to protect, defend and indemnify Contractor from and against any claims, demands and causes of action, including all costs of defense, in
favor of Operator, Operator’s co-ventures, co-lessees and joint owners, or any other parties arising out of any drilling commitments or obligations contained in any loose, farmout agreement or other agreement, which may be affected by such
suspension of operations or termination of performance hereunder. 
 6.4 Early Termination Compensation: If Operator terminates this
Agreement prior to Operator’s complete performance, the parties agree that damages would be extremely difficult to determine and that the following liquidated damage sums are fair and reasonable estimates of damages under the circumstances and
do not constitute a penalty. 
 (a) Prior to Commencement: In the event Operator terminates this Contract prior to commencement of Operations
hereunder, Operator shall pay Contractor as liquidated damages and not as a penalty a sum equal to 7,300,000,00 
 (b) Prior to Spudding: If
such termination occurs after commencement of operations but prior to the spudding of the well, Operator shall pay to Contractor as liquidated damages and not as a penalty the lump sum calculated by taking the number of calendar days remaining on
the contract term (the difference in calendar days between the date of termination and two (2) years from the date specified in Paragraph Number 2) multiplied by $15,000.00. This provision is the complete understanding and agreement of the
parties and supersedes and merges all prior written or oral communications regarding the subject matter hereof (see item 4). 
 (c)
Subsequent to spudding: If such termination occurs after the spudding of the well, Operator shall pay Contractor as liquidated damages and not as a penalty the lump sum calculated by taking the number of calendar days remaining on the contract term
(the difference in calendar days between the date of termination and two (2) years from the date specified in Paragraph Number 2) multiplied by $15,000.00. This provision is the complete understanding and agreement of the parties and
supersedes and merges all prior written or oral communications regarding the subject matter hereof (see item 4). 
  

	7.	CASING PROGRAM 

 Operator shall have the right to
designate the points at which casing will be set and the manner of setting, cementing and testing. Operator may modify the casing program, however, any such modification which materially increases Contractor’s hazards or costs can only be made
by mutual consent of Operator and Contractor and upon agreement as to the additional compensation to be paid Contractor as a result thereof 
  

	8.	DRILLING METHODS AND PRACTICES: 

 8.1 Contractor
shall maintain well control equipment in good condition at all times and shall use all reasonable means to prevent and control fires and blowouts and to protect the hole. 
 8.2 Subject to the terms hereof, and at Operator’s cost, at all times during the drilling of the well, Operator shall have the right to control the mud program, and the drilling fluid must be of a type and have
characteristics and be maintained by Contractor in accordance with the specifications shown in Exhibit “A”. 
 8.3 Each party
hereto agrees to comply with all laws, rules, and regulations of any federal, state or local governmental authority which are now or may become applicable to that party’s operations covered by or arising out of the performance of this Contract.
When required by law, the terms of Exhibit “B” shall apply to this Contract. In the event any provision of this Contract is inconsistent with or contrary to any applicable federal, state or local law, rule or regulation, said provision
shall be deemed to be modified to the extent required to comply with said law, rule or regulation, and as so modified said provision and this Contract shall continue in full force and effect. 
 8.4 Contractor shall keep and furnish to Operator an accurate record of the work performed and formations drilled on the IADC-API Daily Drilling Report
Form or other form acceptable to Operator. A legible copy of said form shall be furnished by Contractor to Operator. 
 8.5 If requested by
Operator, Contractor shall furnish Operator with a copy of delivery tickets covering any material or supplies provided by Operator and received by Contractor. 
  

	9.	INGRESS, EGRESS, AND LOCATION: 

 Operator hereby
assigns to Contractor all necessary rights of ingress and egress with respect to the fact on which the well is to be located for the performance by Contractor of all work contemplated by this Contract. Should Contractor be denied free access to the
location for any reason not reasonably within Contractor’s control, any time lost by Contractor as a result of such denial shall be paid for at the standby time rate. Operator agrees at all times to maintain the road and location in such a
condition that will allow free access and movement to and from the drilling site in an ordinarily equipped highway type vehicle. If Contractor is required to use bulldozers, tractors, four-wheel drive vehicles, or any other specialized
transportation equipment for the movement of necessary personnel, machinery, or equipment over access roads or on the drilling location, Operator shall furnish the same at its expense and without cost to Contractor. The actual cost of repairs to any
transportation equipment furnished by Contractor or its personnel damaged as a result of improperly maintained access roads or location will be charged to Operator. Operator shall reimburse Contractor for all amounts reasonably expended by
Contractor for repairs and/or reinforcement of roads, bridges and related or similar facilities (public and private) required as a direct result of a rig move pursuant to performance hereunder. Operator shall be responsible for any costs associated
with leveling the rig because of location setting. 
  

					
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 Revised April, 2003 
  

	10.	SOUND LOCATION: 

 Operator shall prepare a sound
location adequate in size and capable of property supporting the drilling rig, and shall be responsible for a casing and cementing program adequate to prevent soil and subsoil wash out it is recognized that Operator has superior knowledge of the
location and access routes to the location, and must advice Contractor of any subsurface conditions, or obstructions (including, but not limited to, mines, caverns, sink holes, streams, pipelines, power lines and communication lines) which
Contractor might encounter while on route to the location or during operations hereunder. In the event subsurface conditions cause a cratering or shifting of the location surface, or if seabed conditions prove unsatisfactory to property support
the rig during marino operations hereunder, and loss or damage to the rig or its associated equipment results therefrom, Operator shall, without regard to other provisions of this Contract, Including Subparagraph 14.1 hereof, reimburse Contractor
for all such loss or damage including removal of debris and payment of Force Majeure Rate during repair and/or demobilization if applicable. 
  

	11.	EQUIPMENT CAPACITY 

 Operations shall not be
attempted under any conditions which exceed the capacity of the equipment specified to be used hereunder or where canal or water depths are in excess of N/A feet. Without prejudice to the provisions of Paragraph 14 hereunder, Contractor shall have
the right to make the final decision as to when an operation or attempted operation would exceed the capacity of specified equipment. 
  

	12.	TERMINATION OF LOCATION LIABILITY: 

 When
Contractor has concluded operations at the well location, Operator shall thereafter be liable for damage to property, personal injury or death of any person which occurs as a result of conditions of the location and Contractor shall be relieved of
such liability; provided, however, If Contractor shall subsequently reenter upon the location for any reason, including removal of the rig, any term of the Contract relating to such reentry activity shall become applicable during such period.

  

	13.	INSURANCE 

 During the life of this Contract,
Contractor shall at Contractor’s expense maintain, with an insurance company or companies authorized to do business in the state where the work is to be performed or through a self-insurance program, insurance coverages of the kind and in the
amount set forth in Exhibit “A”. Insuring the liabilities specifically assumed by Contractor in Paragraph 14 of this Contract Contractor shall procure from the company or companies writing said insurance a certificate of certificates that
said insurance is in full force and effect and that the same shall not be canceled or materially changed without ten (10) days prior written notice to Operator. For liabilities assumed hereunder by Contractor, its Insurance shall be endorsed to
provide that the underwriters waive their right of subrogation against Operator. Operator will, as well, cause its insurer to waive subrogation against Contractor for liability it assumes and shall maintain, at Operator’s expense, or shall self
insure, insurance coverage as set forth in Exhibit “A” of the same kind in the same amount as is required of Contractor, insuring the liabilities specifically assumed by Operator in Paragraph 14 of this Contract. Operator shall procure
from the company or companies writing said insurance a certificate or certificates that said insurance is in full force and effect and that the same shall not be canceled or materially changed without ten (10) days prior written notice to Contractor
Operator and Contractor shall cause their respective underwriters to name the other additionally insured but only to the extend of the indemnification obligations assumed herein. 
  

	14.	RESPONSIBILITY FOR LOSS OR DAMAGE, INDEMNITY, RELEASE OF LIABILITY AND ALLOCATION OF RISK: 

 14.1 Contractor’s Surface Equipment: Contractor shall assume liability at all times for damage to or destruction of Contractor’s surface
equipment, regardless of when or how such damage or destruction occurs, and Contractor shall release Operator of any liability of any such loss, except loss or damage under the provisions of Paragraph 10 or Subparagraph 14.3. 
 14.2 Contractor’s In-Hole Equipment: Except in the case of Contractor’s willful misconduct, Operator shall assume liability at all times for
damage to or destruction of Contractor’s in-hole equipment, including, but not limited to, drill pipe, drill collars, and tool joints, and Operator shall reimburse Contractor for the value of any such loss or damage; the value to be determined
by agreement between Contractor and Operator as current repair cost or 100 percent of current replacement cost of such equipment delivered to the well site. 
 14.3 Contractor’s Equipment - Environmental Loss or Damage: Notwithstanding the provisions of Subparagraph 14.1 above, Operator shall assume liability at all times for damage to or destruction of
Contractor’s equipment resulting from the presence of H2S, CO2, or other corrosive elements that enter the drilling fluids from subsurface formations or the use of corrosive, destructive or abrasive additives in the
drilling fluids. 
 14.4 Operator’s Equipment: Operator shall assume liability at all times for damage to or destruction
of Operator’s or its co-venturers’, co-lessees’ or joint owners’ equipment, including, but not limited to, casing, tubing, well head equipment, and platform if applicable, regardless of when or how such damage or destruction
occurs, and Operator shall release Contractor of any liability for any such loss or damage. 
 14.5 The Hole: In the event the hole
should be lost or damaged, Operator shall be solely responsible for such damage to or loss of the hole, including the casing therein, Operator shall release Contractor and its suppliers, contractors and subcontractors of any tier of any liability
for damage to or loss of the hole, and shall protect, defend and indemnify Contractor and its suppliers, contractors and subcontractors of any tier from and against any and all claims, liability and expense relating to such damage to or loss of the
hole. 
 14.6 Underground Damage: Operator shall release Contractor and its supplier, contractors and subcontractors of any tier of
any liability for, and shall protect, defend and indemnify Contractor and its suppliers, contractors and subcontractors of any tier from and against any and all claims, liability, and expense resulting from operations under this Contract on account
of Injury to, destruction of, or loss or Impairment of any property right in or to oil, gas, or other mineral substance or water, if at the time of the act or omission causing such injury, destruction, loss or impairment, said substance had not been
reduced to physical possession above the surface of the earth, and for any loss or damage to any formation, strata, or reservoir beneath the surface of the earth. 
 14.7 Inspection of Materials Furnished by Operator: Contractor agrees to visually inspect all materials furnished by Operator before using same and to notify Operator of any apparent defects therein. Contractor
shall not be liable for any loss or damage resulting from the use of materials furnished by Operator, and Operator shall release Contractor from, and shall protect, defend and indemnify Contractor from and against, any such liability.

 14.8 Contractor’s Indemnification of Operator: Contractor shall release Operator of any liability for, and shall protect,
defend and indemnify Operator from and against all claims, demands, and causes of action of every kind and character, without limit and without regard to the cause or causes thereof or the negligence of any party or parties, arising in connection
herewith in favor of contractor’s employees or Contractor’s subcontractors of any tier (inclusive of any agent or consultant engaged by Contractor) or their employees, or Contractor’s Invitees, on account of body injury, death or
damage to property, Contractor’s indemnity under this Paragraph shall be without regard to and without any right to contribution from any Insurance maintained by Operator pursuant to Paragraph 13. If it is judicially determined that the
monetary limits of insurance required hereunder or of the Indemnities voluntary assumed under Subparagraph 14.8 (which Contractor and Operator hereby agree will be supported either by available liability insurance, under which the insurer has no
right of subrogation against the indemnities, or voluntarily self-insured, in part or whole) exceed the maximum limits permitted under applicable law, it is agreed that said insurance requirement or indemnities shall automatically be amended to
conform to the maximum monetary limits permitted under such law. This sub paragraph is not meant to replace the provisions of sub paragraphs 14.1 through 14.7 and 14.10 through 14.13. 
  

					
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 Revised April, 2003 
  

 14.9 Operator’s Indemnification of Contractor: Operator shall release Contractor of any
liability for, and shall protect, defend and Indemnify Contractor from and against all claims, demands, and causes of action of every kind and character, without limit and without regard to the cause or causes thereof or the negligence of any party
or parties, arising in connection herewith in favor of Operator’s employees or Operator’s contractors of any tier (inclusive of any agent, consultant or subcontractor engaged by Operator) or their employees, or Operator’s invitees,
other than those parties identified in Subparagraph 14.8 on account of body injury, death or damage to property. Operator’s indemnity under this Paragraph shall be without regard to and without any right to contribution from any insurance
maintained by Contractor pursuant to Paragraph 13. If it is judicially determined that the monetary limits of insurance required hereunder or of the indemnities voluntary assumed under Subparagraph 14.9 (which Contractor and Operator hereby agree
will be supported either by available liability insurance, under which the insurer has no right of subrogation against the Indemnities, or voluntarily self-insured, In part or whole) exceed the maximum limits permitted under applicable law, it is
agreed that said insurance requirements or indemnities shall automatically be amended to conform to the maximum monetary limits permitted under such law. This sub paragraph is not meant to replace the provisions of sub paragraphs 14.1 through 14.7
and 14.10 through 14.13. 
 14.10 Liability for Wild Well: Operator shall be liable for the cost of regaining control of any wild
well, as well as for cost of removal of any debts and cost of property remediation and restoration, and Operator shall release, protect, defend and indemnify Contractor and its suppliers, contractors and subcontractors of any tier from and against
any liability for such cost. 
 14.11 Pollution or Contamination: Notwithstanding anything to the contrary contained herein, except
the provisions of Paragraphs 10 and 12, it is understood and agreed by and between Contractor and Operator that the responsibility for pollution or contamination shall be as follows: 
 (a) Contractor shall assume all responsibility for, including control and removal of, and shall protect, defend and indemnify Operator from and
against all claims, demands and causes of action of every kind and character arising from pollution or contamination, which originates above the surface of the land or water from spills of fuels, lubricants, motor oil, pipe dope, paints, solvents,
ballast, bilge and garbage except unavoidable pollution from the reserve pits, wholly in Contractor’s possession and control and directly associated with Contractor’s equipment and facilities. 
 (b) Operator shall assume all responsibility for, including control and removal of, and shall protect, defend and indemnify Contractor and its
suppliers, contractors and subcontractors of any tier from and against all claims, demands, and causes of action or every kind and character arising directly or indirectly from all other pollution or contamination which may occur during the conduct
of operations hereunder, including, but not limited to, that which may result from fire, blowout, cratering, seepage or any other uncontrolled flow of oil, gas, water other substance, as well as the use or disposition of all drilling fluids,
including, but not limited to, all emulsion, oil base or chemically treated drilling fluids, contaminated cuttings or cavings, lost circulation and fish recovery materials and fluids. Operator shall release Contractor and its suppliers, contractors
and subcontractors of any tier of any liability for the foregoing. 
 (c) In the event a third party commits an act or omission which
results in pollution or contamination for which either Contractor and Operator, for whom such party is performing work, is held to be legally liable, the responsibility therefore shall be considered, as between Contractor and Operator, to be the
same as if the party for whom the work was performed had performed the same and all of the obligations respecting protection, defense, indemnity and limitation of responsibility and liability, as set forth in (a) and (b) above, shall be specifically
applied. 
 14.12 Consequential Damages: Subject to and without effecting the provisions of this Contract regarding the payment rights
and obligations of the parties or the risk of loss, release and indemnity rights and obligations of the parties, each party shall at all times be responsible for and hold harmless and indemnify the other party from and against its own special,
indirect or consequential damages, and the parties agree that special, indirect and consequential damages shall be deemed to include, without limitation, the following: loss of profit or revenue; costs and expenses resulting from business
interruptions; loss of or delay in production; loss of or damage to the leasehold; loss of or delay in drilling or operating rights; cost of or loss of use of property, equipment, materials and services, including without limitation those provided
by contractors or subcontractors of every tier or by third parties. Operator shall at all times be responsible for and hold harmless and indemnify Contractor and its suppliers, contractors and subcontractors of any tier from and against all claims,
demands and causes of action of every kind and character in connection with such special, indirect or consequential damages suffered by Operator’s co-owners, co-venturers, co-lessees, farmers, farmees, partners and joint owners. 

 14.13 Indemnity Obligation: Except as otherwise expressly limited in this
Contract, it is the intent of parties hereto that all releases, Indemnity obligations and/or liabilities assumed by such parties under terms of this Contract, including, without limitation, Subparagraphs 4.9 and 6.3(c), Paragraphs 10 and 12, and
Subparagraphs 14.1 through 14.12 hereof, be without limit and without regard to the cause or causes thereof, including, but not limited to, pre-existing conditions, defect or ruin of premises or equipment, strict liability, regulatory or statutory
liability, products liability, breach of representation or warranty (express or implied), breach of duty (whether statutory, contractual or otherwise) any theory of tort, breach of contract, fault the negligence of any degree or character
(regardless of whether such negligence is sole, joint or concurrent, active, passive or gross) of any party or parties, including the party seeking the benefit of the release, indemnity or assumption of liability, or any other theory of legal
liability. The indemnities, and releases and assumptions of liability extended by the parties hereto under the provisions of Subparagraphs 4.9 and 8.3 and Paragraphs 10, 12 and 14 shall inure to the benefit of such parties, their co-venturers,
co-lessees, joint owners, their parent, holding and affiliated companies and the officers, directors, stockholders, partners, managers, representatives, employees, consultants, agents, servants and insurers of each. Except as otherwise provided
herein, such indemnification and assumptions of liability shall not be deemed to create any rights to indemnification in any person or entity not a party to this Contract, either as a third party beneficiary or by reason of any agreement of
indemnity between one of the parties hereto and another person or entity not a party of this Contract. 
  

	15.	AUDIT 

 If any payment provided for hereunder is
made on the basis of Contractor’s costs, Operator shall have the right to audit Contractor’s books and records relating to such costs. Contractor agrees to maintain such books and records for a period of two (2) years from the date such
costs were incurred and to make such books and records readily available to Operator at any reasonable time or times within the period. 
  

	16.	NO WAIVER EXCEPT IN WRITING 

 It is fully understood
and agreed that none of the requirements of this Contract shall be considered as waived by either party unless the same is done in writing, and then only by the persons executing this Contract or other duly authorized agent or representative of the
party. 
  

	17.	FORCE MAJEURE 

 Except as provided in this Paragraph
17 and without prejudice to the risk of loss, release and indemnity obligations under this Contract, each party of this Contract shall be excused from complying with the terms of this Contract, except for the payment of monies when due, if and for
so long as such compliance is hindered or prevented by a Force Majeure Event As used in this Contract, “Force Majeure Event” includes: acts of God, action of the elements, wars (declared or undeclared), insurrection, revolution, rebellions
or civil strife, piracy, civil war or hostile action, terrorist acts, riots, strikes, differences with workmen, acts of public enemies, federal or state laws, rules, regulations dispositions or orders of any governmental authorities having
jurisdiction in the premises or of any other group, organization or informal association (whether or not formally recognized as a government), inability to procure material, equipment, fuel or necessary labor in the open market, acute and unusual
labor or material, equipment or fuel shortages, or any other causes (except financial) beyond the control of either party. Neither Operator nor Contractor shall be required against its will to adjust any labor or similar disputes except accordance
with applicable law in the event that either party hereto is rendered unable, wholly or in party, by 

  

					
		 	(U.S. Daywork Contract - Page 5)	  	Form provided by Forms On-A-Disk
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 Revised April, 2003 
  

 
any of these causes to carry out its obligation under this Contract, It is agreed that such party shall give notice and details of Force Majeure in writing
to the order party as promptly as possible after its occurrence. In such cases, the obligation of the party giving the notice shall be suspended during the continuance of any inability so caused except that Operator shall be obligated to pay to
Contractor the Force Majeure Rate provided for in Subparagraph 4.8 above. 
  

	18.	GOVERNING LAW: 

 This Contract shall be construed,
governed, Interpreted, enforced and litigated, and the relations between the parties determined in accordance with the laws of State of Oklahoma. 
  

	19.	INFORMATION CONFIDENTIAL: 

 Upon written request by
Operator, Information obtained by Contractor in the conduct of drilling operations on this well, including, but not limited, to depth, formation penetrated, the result of coring, testing and surveying, shall be considered confidential and shall not
be divulged by Contractor or its employees, to any person, firm, or corporation other than Operator’s designated representatives. 
  

	20.	SUBCONTRACTS: 

 Either party may employ other
contractors to perform any of the operations or services to be provided or performed by it according to Exhibit “A”. 
  

	21.	ATTORNEY’S FEES 

 If this Contract is placed in
the hands of an attorney for collection of any sums or the performance of any services due hereunder, or suit is brought on same, or sums due hereunder are collected through bankruptcy or arbitration proceedings, then the prevailing party shall be
entitled to recover reasonable attorney’s fees and costs. 
  

	22.	CLAIMS AND LIENS: 

 Contractor agrees to pay all
valid claims for labor, material, services, and supplies to be furnished by Contractor hereunder, and agrees to allow no lien by such third parties to be fixed upon the lease, the well, or other property of the Operator or the land upon which said
well is located. 
  

	23.	ASSIGNMENT: Operator may assign this contract upon Contractor’s written approval which shall not be unreasonably withheld. However, not withstanding any assignment, Operator
shall remain liable to Contractor as guarantor of the performance by the assignee. 

 Contractor may not assign its rights
and obligations under this contract without the prior written approval or Operator, which approval shall not be unreasonably withheld. 
  

	24.	NOTICES AND PLACE OF PAYMENT: 

 Notices, reports,
and other communications required or permitted by this Contract to be given or sent by one party to the other shall be delivered by hand, mailed, digitally transmitted or telecopied to the address hereinabove shown. All sums payable hereunder to
Contractor shall be payable at its address hereinabove shown unless otherwise specified herein. 
  

	25.	CONTINUING OBLIGATIONS: 

 Notwithstanding the
termination of this Contract, the parties shall continue to be bound by the provisions of this Contract that reasonably require some action or forbearance after such termination. 
  

	26.	ENTIRE AGREEMENT: 

 This Contract constitutes the
full understanding of the parties, and a complete and exclusive statement of the terms of their agreement, and shall exclusively control and govern all work performed hereunder. All representations, offers, and undertakings of the parties made prior
to the effective date hereof, whether oral or in writing, are merged herein, and no other contracts, agreements or work orders, executed prior to the execution of this Contract, shall in any way modify, amend, alter or change any of the terms or
conditions set out herein. 
  

	27.	SPECIAL PROVISIONS: 

  

	ITEM 1	Operator agrees to pay actual (“actual” means charges equivalent to those billed by the trucking company, or charged by the Contractor, if the Contractor performs the
move) plus 85% of the day rate for each day moving from the rigs’ prior location following the rigs’ release, waiting on location, waiting on trucks, waiting on allowable weather conditions, until the well is spud, and for each day rigging
down. 

  

	ITEM 2	Operator agrees to pay daywork rate of $21,000.00 for the first twelve (12) months following the commencement date and daywork rate of $23,000.00 for the subsequent twelve (12)
months. 

  

	ITEM 3	Operator agrees to pay Standby Time Rate in accordance with the daywork rate ( SEE ITEM 2 Above ) 

 ACCEPTANCE OF CONTRACT: 
 The
foregoing Contract, including the provision relating to indemnity, release of liability and allocation of risk of Subparagraphs 4.9 and 6.3(c), Paragraph 10 and 12, and Subparagraphs 14.1 through 14.13, is acknowledged, agreed to and accepted by
Operator this      day of                     ,20    . 
  

			
		
	 OPERATOR:
	 	 Windsor Energy Resources Inc.

		
	By:	 	 /s/ Michael P. Cross

	Title:	 	 Michael P. Cross-CEO

 The foregoing Contract, including the provisions relating to indemnity, release of
liability and allocation of risk of Subparagraphs 4.9, 6.3(c) Paragraphs 10 and 12, and Subparagraphs 14.1 through 14.13, is acknowledged, agreed to and accepted by Contractor this ____ day of ______, 2005__, which is the effective date of this
Contract, subject to rig availability, and subject to all its terms and provisions, with the understanding that it will not be binding upon Operator until Operator has noted its acceptance, and with the further understanding that unless said
Contract is thus executed by Operator within 5 days of the above date Contractor shall be in no manner bound by its signature thereto. 
  

			
		
	 CONTRACTOR:
	 	 Bronco Drilling Company, Inc.

		
	By:	 	 /s/ Karl Benzor

	Title:	 	Karl Benzor-Chief Operating Officer

  

					
		 	(U.S. Daywork Contract - Page 6)	  	Form provided by Forms On-A-Disk
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 Revised April, 2003 
  

 EXHIBIT “A” 
 To Daywork Contract dated                     , 2005
             
 Operator Windsor Energy Resources, Inc. Contractor Bronco Drilling
Company, Inc. 
 Well Name and Number TO BE DETERMINED BY OPERATOR AND SPECIFIED BY INDIVIDUAL LETTER AGREEMENT FOR EACH WELL 
 SPECIFICATIONS AND SPECIAL PROVISIONS 
  

	1.	CASING PROGRAM (See Paragraph 7) To be determined by Operator. 

  

																							
	  	  	 Hole
 Size
	  	 	  	 Casing
 Size
	  	 	  	Weight	  	 	  	Grade	  	 Approximation
 Setting Depth
	  	 	  	 Wait on Cement
 Time
	  	 
	Conductor	  	__________	  	in.	  	__________	  	in.	  	__________	  	lbs/ft.	  	__________	  	__________	  	ft.	  	__________	  	hrs
	Surface	  	__________	  	in.	  	__________	  	in.	  	__________	  	lbs/ft.	  	__________	  	__________	  	ft.	  	__________	  	hrs
	Protection	  	__________	  	in.	  	__________	  	in.	  	__________	  	lbs/ft.	  	__________	  	__________	  	ft.	  	__________	  	hrs
		  	__________	  	in.	  	__________	  	in.	  	__________	  	lbs/ft.	  	__________	  	__________	  	ft.	  	__________	  	hrs
	Production	  	__________	  	in.	  	__________	  	in.	  	__________	  	lbs/ft.	  	__________	  	__________	  	ft.	  	__________	  	hrs
	Liner	  	__________	  	in.	  	__________	  	in.	  	__________	  	lbs/ft.	  	__________	  	__________	  	ft.	  	__________	  	hrs
	____________	  	__________	  	in.	  	__________	  	in.	  	__________	  	lbs/ft.	  	__________	  	__________	  	ft.	  	__________	  	hrs

  

	2.	MUD CONTROL PROGRAM (See Subparagraph 8.2) To be determined by Operator. 

  

											
	 Depth Interval
 (ft)
	  	 	  	 	  	 	  	 
	 From
	  	To	  	Type Mud	  	 Weight
 (lbs./gal.)
	  	 Viscosity
 (Secs)
	  	 Water Loss
 (cc)

	__________________	  	________________	  	________________	  	________________	  	________________	  	________________
	__________________	  	________________	  	________________	  	________________	  	________________	  	________________
	__________________	  	________________	  	________________	  	________________	  	________________	  	________________
	__________________	  	________________	  	________________	  	________________	  	________________	  	________________
	__________________	  	________________	  	________________	  	________________	  	________________	  	________________

  

			
	 Other mud specifications:
	  	  
	  
	  
	  
	  

  

	3.	INSURANCE (See Paragraph 13) Certificates on file with Operator. 

 3.1 Adequate Workers’ Compensation Insurance complying with State Laws applicable or Employers’ Liability Insurance with limits of
$                     covering all of Contractor’s employees working under this Contract. 
 3.2 Commercial (or Comprehensive) General Liability Insurance, including contractual obligations as respects this Contract and proper coverage for all
other obligations assumed in this Contract. The limit shall be $                     combined single limit per occurrence for Bodily Injury
and Property Damage. 
 3.3 Automobile Public Library Insurance with limits of
$                     for the death or injury of each person and
$                     for each accident; and Automobile Public Liability Property Damage Insurance with limits of
$                     for each accident. 
 3.4 In the event operations are over water, Contractor shall carry in addition to the Statutory Workers’ Compensation Insurance, endorsements covering liability under the Longshoremen’s & Harbor Workers’ Compensation Act
and Maritime liability including maintenance and cure with limits of $                     for each death or injury to one person and
$                     for any one accident. 
  

			
	3.5 Other Insurance:	  	  
	  	  	  
	  	  	  

  

	4.	EQUIPMENT, MATERIALS AND SERVICES TO BE FURNISHED BY CONTRACTOR: 

 The machinery, equipment, tools, materials, supplies, instruments, services and labor hereinafter listed, including any transportation required for such items, shall be provided at the well location at the expense of
Contractor unless otherwise noted by this Contract. 
 4.1 Drilling Rig - Inventory attached. 
 Complete drilling rig, designated by Contractor at its Rig No #15 the major items of equipment being: 
 Drawworks; Make and Model __________________________________________________________________________________ 
 Engines: Make, Model, and H.P. ________________________________________________________________________________ 
 No. on Rig SEE ATTACHED RIG INVENTORY 
 Pumps: No. 1 Make,
Size, and Power _____________________________________________________________________________ 
              No. 2 Make, Size, and Power _____________________________________________________________________________ 
 Mud Mixing Pump: Make, Size, and Power ________________________________________________________________________ 
 Boilers:
Number, Make, H.P. and W.P. ___________________________________________________________________________ 
 Derrick or Mast: Make, Size, and Capacity
________________________________________________________________________ 
 ___________________________________________________________________________________________________________ 
 Substructure. Size and Capacity
_________________________________________________________________________________ 
 Rotary Drive. Type
___________________________________________________________________________________________ 
 Drill Pipe: Size _________________ in __________________ ft:
Size: __________________________ in __________________ft 
 Drill Collars, Number and Size
__________________________________________________________________________________ 
  

					
		 	(U.S. Daywork Contract - “Exhibit A” - Page 1)	  	Form provided by Forms On-A-Disk
		 	Copyright© 2003 International Association of Drilling Contractors	  	(214) 340-9429 - FormsOnADisk.com

 Revised April, 2003 
  

			
	Blowout Preventors.	  	  

  

							
	Size	 	Series or Test Pr.	 	Make & Model	 	Number
	____________________	 	____________________	 	____________________	 	____________________
	____________________	 	____________________	 	____________________	 	____________________
	____________________	 	____________________	 	____________________	 	____________________
	____________________	 	____________________	 	____________________	 	____________________
	B.O.P. Closing Unit.	 	  	 	  	 	  
	B.O.P. Accumulator:	 	  	 	  	 	  

 4.2 Derrick timbers. 
 4.3 Normal strings of drill pie and drill collars specified above. 
 4.4 Conventional drift indicator.

 4.5 Circulating mud pits. 
 4.6 Necessary pipe racks and rigging up material. 
 4.7 Normal storage for mud and chemicals. 
 4.8 Shale Shaker. 
 4.9
_________________________________________________________________________________________________ 
 4.10
_________________________________________________________________________________________________ 
 4.11
_________________________________________________________________________________________________ 
 4.12
_________________________________________________________________________________________________ 
 4.13
_________________________________________________________________________________________________ 
 4.14
_________________________________________________________________________________________________ 
 4.15
_________________________________________________________________________________________________ 
 4.16
_________________________________________________________________________________________________ 
 4.17
_________________________________________________________________________________________________ 
  

	5.	EQUIPMENT, MATERIALS AND SERVICES TO BE FURNISHED BY OPERATOR: 

 The machinery, equipment, tools, materials, supplies, instruments, services and labor hereinafter listed, including any transportation required for such items, shall be provided at the well location at the expense of
Operator unless otherwise noted by this Contract. 
 5.1 Furnish and maintain adequate roadway and/or canal to location, right-of-way,
including rights–of–way for fuel and water lines, river crossings, highway crossings, gates and cattle guards. 
 5.2 Stake
location, clear and grade location, and provide turnaround, including surfacing when necessary. 
 5.3 Test tanks with pipe and fittings.

 5.4 Mud storage tanks with pipe and fittings. 
 5.5 Separator with pipe and fittings. 
 5.6 Labor and materials to connect and disconnect mud tank, test
tank, and mud gas separator. 
 5.7 Labor to disconnect and clean test tanks and mud gas separator. 
 5.8 Drilling mud, chemicals, lost circulation materials and other additives. 
 5.9 Pipe and connections for oil circulating lines. 
 5.10 Labor to lay, bury and recover oil circulating lines. 
 5.11 Drilling bits, reamers, reamer cutters, stabilizers and special
tools. 
 5.12 Contract fishing tool services and tool rental. 
 5.13 Wire line core bits or heads, core barrels and wire line core catchers if required. 
 5.14 Conventional
core bits, core catchers and core barrels. 
 5.15 Diamond core barrel with head. 
 5.16 Cement and cementing service. 
 5.17
Electrical wireline logging services. 
 5.18 Directional, caliper, or other special services. 
 5.19 Gun or jet pertorating services. 
 5.20
Explosives and shooting devices. 
 5.21 Formation testing, hydraulic fracturing, acidizing and other related services. 
 5.22 Equipment for drill stem testing. 
 5.23 Mud logging services. 
 5.24 Sidewall coring service. 
 5.25 Welding service for welding bottom joints of casing, guide shoe, float shoe, float collar and in connection with installing of well head equipment
if required. 
 5.26 Casing, tubing, liners, screen, floats collars, guide and float shoes and associated equipment. 
 5.27 Casing scratchers and centralizers. 
 5.28 Well head connections and all equipment to be installed in or on well or on the premises for use in connection with testing, completion and operation of well. 
 5.29 Special or added storage for mud and chemicals. 
 5.30 Casinghead, API series, to conform to that shown for the blowout Preventors specified in Subparagraph 4.1 above. 
 5.31 Blowout preventor testing packoff and testing services. 
 5.32 Replacement of BOP rubbers, elements and
seals, if required, after initial test. 
 5.33 Casing Thread Protectors and Casing Lubricants. 
 5.34 H2S Training and equipment as necessary or as required by law. 
 5.35 Site specific systems. 
 5.36 Fuel additives and conditioners as required for year round operations
_________________________________________ 
 5.37 All rubber products furnished as required while using an oil based drilling fluid including
all expendables and mud system valves _____________________________________________________________ 
 5.38
_________________________________________________________________________________________________ 
 5.39
_________________________________________________________________________________________________ 
 5.40
_________________________________________________________________________________________________ 
 5.41
_________________________________________________________________________________________________ 
 5.42
_________________________________________________________________________________________________ 
 5.43
_________________________________________________________________________________________________ 
 5.44
_________________________________________________________________________________________________ 
 5.45
_________________________________________________________________________________________________ 
 5.46
_________________________________________________________________________________________________ 
 5.47
_________________________________________________________________________________________________ 
 5.48
_________________________________________________________________________________________________ 
 5.49
_________________________________________________________________________________________________ 
 5.50
_________________________________________________________________________________________________ 
  

					
		 	(U.S. Daywork Contract - “Exhibit A” - Page 2)	  	Form provided by Forms On-A-Disk
		 	Copyright© 2003 International Association of Drilling Contractors	  	(214) 340-9429 - FormsOnADisk.com

 Revised April, 2003 
  

	6.	EQUIPMENT, MATERIALS AND SERVICES TO BE FURNISHED BY DESIGNATED PARTY: 

 The machinery, equipment, tools, materials, supplies, instruments, services, and labor listed to as the following numbered items, including any transportation required for such items unless otherwise specified, shall
be provided at the well location and at the expense of the party hereto as designated by an X mark in the appropriate column. 
  

							
	 	 	 	  	 To Be Provided By and
 At The Expense Of

	  	 	 Item
	  	Operator	  	Contractor
	 6.1
	 	 Cellar and Runways
	  	x	  	
	 6.2
	 	 Ditches and Bumps
	  	x	  	
	 6.3
	 	 Fuel (located at Rig - including propane)
	  	x	  	
	 6.4
	 	 Fuel Lines ( length)
	  		  	x
	 6.5
	 	 Water at sources, including required permits
	  	x	  	
	 6.6
	 	 Water well, including required permits
	  	x	  	
	 6.7
	 	 Water lines, including required permits
	  	x	  	
	 6.8
	 	 Water storage tanks 400 bbl capacity
	  		  	x
	 6.9
	 	 Potable water
	  	x	  	
	 6.10
	 	 Labor to operate water well or water pump
	  		  	x
	 6.11
	 	 Maintenance of water well, if required
	  	x	  	
	 6.12
	 	 Water pump
	  	x	  	
	 6.13
	 	 Fuel or water pump
	  	x	  	
	 6.14
	 	 Mats for engines and boilers, or motors and mud pumps
	  	x	  	
	 6.15
	 	 Transportation of Contractor’s property Move in
	  	x	  	
		 	 Move out
	  	x	  	
	 6.16
	 	 Materials for “boxing in” rig and derrick
	  		  	x
	 6.17
	 	 Special strings of drill pipe and drill collars as follows:
 All tubulars not listed on rig inventory
	  	x	  	
	 6.18
	 	 Kelly joints, subs, elevators, tongs, slips and BOP rams for use with special drill pipe
	  	x	  	
	 6.19
	 	 Drill pipe protectors for Kelly joint and each joint of drill pipe running inside of Surface Casing as required, for use with normal strings
of drill pipe
	  	x	  	
	 6.20
	 	 Drill pipe protectors for Kelly joint and drill pipe running inside of Protection Casing
	  	x	  	
	 6.21
	 	 Ratio of penetration recording device Mechanical or Totco EDR as required by contractor
	  		  	x
	 6.22
	 	 Extra labor for running and cementing casing (Casing crews)
	  	x	  	
	 6.23
	 	 Casing tools
	  	x	  	
	 6.24
	 	 Power casing tongs
	  	x	  	
	 6.25
	 	 Laydown and pickup machine
	  	x	  	
	 6.26
	 	 Tubing tools
	  	x	  	
	 6.27
	 	 Power tubing tong
	  	x	  	
	 6.28
	 	 Crow Boats, Number
	  	N/A	  	
	 6.29
	 	 Service Barge
	  	N/A	  	
	 6.30
	 	 Service Tug Boat
	  	N/A	  	
	 6.31
	 	 Rat Hole
	  	x	  	
	 6.32
	 	 Mouse Hole
	  	x	  	
	 6.33
	 	 Reserve Pits
	  	x	  	
	 6.34
	 	 Upper Kelly Cock
	  		  	x
	 6.35
	 	 Lower Kelly Valve
	  		  	x
	 6.36
	 	 Drill Pipe Safety Valve
	  		  	x
	 6.37
	 	 Inside Blowout Preventer
	  		  	x
	 6.38
	 	 Drilling hole for or driving for conductor pipe
	  	x	  	
	 6.39
	 	 Charges, cost of bonds for public roads
	  	x	  	
	 6.40
	 	 Portable Toilet
	  	x	  	
	 6.41
	 	 Trash Recoptacio
	  	x	  	
	 6.42
	 	 Linear Motion Shale Shaker
	  		  	x
	 6.43
	 	 Shale Shaker Screens Operators to provide all shale shaker screens
	  	x	  	
	 6.44
	 	 Mud Cleaner
	  	x	  	
	 6.45
	 	 Mud/Gas Separator
	  	x	  	
	 6.46
	 	 Dosander - Rig Inventory
	  		  	x
	 6.47
	 	 Desilter
	  		  	x
	 6.48
	 	 Degasser
	  	x	  	
	 6.49
	 	 Centrifuge
	  	x	  	
	 6.50
	 	 Rotating Head
	  	x	  	
	 6.51
	 	 Rotating Head Rubbers
	  	x	  	
	 6.52
	 	 Hydraulic Adjustable Choke
	  	x	  	
	 6.53
	 	 Pit Volume Totalizer
	  	x	  	
	 6.54
	 	 Communication type MOBILE PHONE ONLY **
	  		  	x
	 6.55
	 	 Forklift, capacity 8000# Overhead Extended Boom
	  	x	  	
	 6.56
	 	 Corrosion Inhibitor for protecting drill string To be specified by Contractor
	  	x	  	
	 6.58
	 	 String-Up Crew and Equipment
	  	x	  	
	 6.59
	 	 Right-of-way for water and gas lines
	  	x	  	
	 6.60
	 	 Water lines permits – if required
	  	x	  	
	 6.61
	 	 Drill Pipe Corrosion control to less than 15 lb/sqft per year (if required)
	  	x	  	

  

	**	Operator to supply Land Phone line services if Contractor Mobile Phone services are not available on location 

 EXHIBIT “B” 
 (See Subparagraph 8.3) 
  

					
		 	(U.S. Daywork Contract - “Exhibit A” - Page 3)	  	Form provided by Forms On-A-Disk
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 Revised April, 2003 
  

 The following clauses, when required by law, are incorporated in the Contract by reference as if fully set out:

  

	(1)	The Equal Opportunity Clause prescribed in 41 CFR 60-1.4 

  

	(2)	The Affirmative Action Clause prescribed in 41 CFR 60-250.4 regarding veterans and veterans of Vietnam era. 

  

	(3)	The Affirmative Action Clause for handicapped workers prescribed in 41 CFR 60-741.4 

  

	(4)	The Certification of Compliance with Environmental Laws prescribed in 40 CFR 15.20 

  

					
		 	(U.S. Daywork Contract - “Exhibit B” - Page 4)	  	Form provided by Forms On-A-Disk
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	(7.0)	   OTHER PROVISIONS: 

 7.1 Contractor
shall furnish initial tested annual preventer element. If element is damaged during the job, Operator agrees to furnish a new element. 
 7.2
Chemical additives to the mud for preventing oxidation of the drill string and hydrogen sulfide scavenging chemicals to treat the mud or drilling fluids are necessary to remove all traces of H2S and to control oxygen corrosion levels not to exceed
1.5 pounds per square foot per year to be furnished by Operator. Contractor’s shall specify the company which provides corrosion control. 
 7.3 Operator’s representative and Operator’s subcontractors shall support Contractor’s safety policies and procedures in general and in particular will comply with all Contractor’s personal protective equipment
requirements. 
 7.4 Operator shall be responsible for all materials and welding to hook up flow line, chokes and mud gas separator.

 7.5 Operator shall be responsible for all materials and welding associated with all air drilling and oil base mud requirements.

 7.6 Weight run on bit shall not exceed drill collar weight in mud. Rotary speed shall be run of mutually agreed upon speed between
Operator and Contractor as not to damage drill pipe. 
 7.7 Should oil-based mud be used on this job, any special revision or protection of
pits and cleanup costs shall be at the expense of Operator. Any mud cleaning equipment (including power and fuel) required by Operator, not in the normal rig inventory, shall be furnished by Operator. Any modification of the rig (drain under racking
board, etc.) or replacement of rig parts (mud buckets, etc.) required by Operator in order to reduce the cost of oil-based mud shall be at the Operator’s expense. Operator shall bear all expense to clean rig upon completion of well (including
labor and foam cleaner.) Operator shall reimburse Contractor for any additional pay, protective clothing, or other compensation to Contractor’s employees for working with oil-based mud. Dayrate shall increase by the amount of $200.00 when
oil-base or potassium chloride mud is used. When oil-base or potassium chloride mud is used Operator shall pay $15.00/day expense reimbursement for hands (including toolpusher). Operator shall pay up to 48 hours of dayrate for cleaning or rig.

 7.8 Operator will provide shaker screens required for shaker. 
 7.9 Contractor shall not be liable for any outside equipment. Any electrical connections made to Bronco Drilling’s light plant shall be made at
owner of equipment’s risk. 
 7.10 In the event of there is a conflict between any or all of the terms and provisions of this contract
and any other agreement, oral or written, to include but not limited to master service agreement, then it is understood and agreed that the terms and provisions of this contract shall prevail and control. 
 7.11 Daywork shall be billed at the end of each month and be due within 30 days. 
 7.12 Contractor will provide inspected double white band pipe prior to commencement of well. Operator will provide all subsequent inspections including
final inspection upon completion of well or program. Operator will provide drill pipe and drill collar maintenance (including trip check, repairs, replacement hardbanding, etc.). Operator shall provide all trucking and repair for drill string.

 7.13 If Operator elects to run standby pump in tandom with the main pump (and main pump is operational), Operator will waive the down time
provision in 4.5 as to the repair of the mud pumps while operations in said connection continue. 
 7.14 If additional compensation for crews
is required due to the distance required to drive, Operator will reimburse Bronco of actual costs plus 40% overhead burden. 
 7.15 If a camp
job is required. Operator will provide mobile homes and needed hook-up for on-site living quarters for crews, plus $20.00 / day per diem from start of moving in through drilling, tear down, and move out. Operator will provide motels as needed prior
to mobile homes being set or motels in place of trailers. As an alternative, Operator may provide off site housing ( i.e. hotels, apartments, etc.) Operator shall reimburse Bronco Drilling if Bronco Drilling provides housing. 
 7.16 Operator shall be responsible and bear all expenses for any H2S training or equipment (including safety equipment, detection equipment, and
corrosion inhibitor to less than one pound per food per year) as well as any additional personnel needed due to encounter or potentially encounter H2S. 
 7.17 Operator shall bear all responsibility and costs to adhere to any and all city regulations including but not limited to sound abatement, security and traffic control. 
 7.18 Contractor’s drill pipe will be used only in the vertical section of the hole. (6 degrees) Contractor’s drill pipe will not be run past
KOP. 
 7.19 Rig’s mud pumps will be operated up to a maximum of 75% of rated pressure and strokes. 
  

							
				
	 Signed by the
 Parties as correct:
	 	 For Contractor
	 	 /s/ Karl Benzer
	 	 Chief Operating Officer

		 		 	 Karl Benzer
	 	
				
	 	 	For Operator	 	 /s/ Michael P. Cross
	 	
		 		 	 Michael P. CrossPurchase and Sale Agreement

 Exhibit 10.1 
 EXECUTION COPY 

 PURCHASE AND SALE AGREEMENT

 By and Between 
 KOHL’S
DEPARTMENT STORES, INC. 
 And 
 CHASE BANK USA, NATIONAL ASSOCIATION 
 Dated as of March 5, 2006 
  

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page
		
	ARTICLE I DEFINITIONS	  	1
			
		 	SECTION 1.1 Definitions of Certain Terms	  	1
			
		 	SECTION 1.2 Interpretation	  	9
		
	ARTICLE II PURCHASE, SALE AND ASSUMPTION	  	10
			
		 	SECTION 2.1 Purchase and Sale of Assets	  	10
			
		 	SECTION 2.2 Assumption of Liabilities	  	11
			
		 	SECTION 2.3 Excluded Liabilities	  	11
			
		 	SECTION 2.4 Purchase Price; Purchase Price Adjustment	  	11
			
		 	SECTION 2.5 Allocation of Purchase Price	  	12
			
		 	SECTION 2.6 Third-Party Consents.	  	12
			
		 	SECTION 2.7 Intention of the Parties	  	13
		
	ARTICLE III CLOSING; ASSIGNMENT	  	13
			
		 	SECTION 3.1 The Closing	  	13
		
	ARTICLE IV REPRESENTATIONS OF THE PARTIES	  	14
			
		 	SECTION 4.1 Representations of the Seller	  	14
			
		 	SECTION 4.2 Representations of the Purchaser	  	17
			
		 	SECTION 4.3 No Other Representations or Warranties	  	19
		
	ARTICLE V COVENANTS	  	19
			
		 	SECTION 5.1 Conduct of Business	  	19
			
		 	SECTION 5.2 Certain Changes	  	20
			
		 	SECTION 5.3 Access and Confidentiality.	  	21
			
		 	SECTION 5.4 Reasonable Efforts; Other Filings	  	21
			
		 	SECTION 5.5 Additional Instruments	  	22
			
		 	SECTION 5.6 Non-Solicitation	  	23
			
		 	SECTION 5.7 Notice to Cardholders	  	23
			
		 	SECTION 5.8 Post-Closing Access	  	23
			
		 	SECTION 5.9 Cooperation in Actions	  	23
			
		 	SECTION 5.10 Preservation of Books and Records	  	24
			
		 	SECTION 5.11 Bulk Sales Law	  	24

  

 i 

					
	 ARTICLE VI TAX AND EMPLOYEE MATTERS
	  	24
			
		 	SECTION 6.1 Taxes	  	24
			
		 	SECTION 6.2 Employees	  	25
		
	ARTICLE VII CONDITIONS	  	26
			
		 	SECTION 7.1 Conditions to Each Party’s Obligations to Effect the Purchase and Assumption	  	26
			
		 	SECTION 7.2 Conditions to Obligations of the Purchaser	  	26
			
		 	SECTION 7.3 Conditions to Obligations of the Seller	  	27
		
	ARTICLE VIII TERMINATION	  	27
			
		 	SECTION 8.1 Termination	  	27
			
		 	SECTION 8.2 Effect of Termination	  	28
		
	ARTICLE IX SURVIVAL; INDEMNIFICATION	  	28
			
		 	SECTION 9.1 Survival	  	28
			
		 	SECTION 9.2 Indemnification by the Seller	  	29
			
		 	SECTION 9.3 Indemnification by the Purchaser	  	30
			
		 	SECTION 9.4 Notice, Settlements and Other Matters	  	30
		
	ARTICLE X MISCELLANEOUS	  	32
			
		 	SECTION 10.1 Notices	  	32
			
		 	SECTION 10.2 Expenses	  	33
			
		 	SECTION 10.3 Successors and Assigns	  	33
			
		 	SECTION 10.4 Entire Agreement; Amendment; Waiver	  	33
			
		 	SECTION 10.5 Counterparts	  	34
			
		 	SECTION 10.6 Governing Law	  	34
			
		 	SECTION 10.7 Waiver of Jury Trial and Venue	  	34
			
		 	SECTION 10.8 Severability	  	34
			
		 	SECTION 10.9 Public Announcement	  	34
			
		 	SECTION 10.10 Third-Party Beneficiaries	  	34
			
		 	SECTION 10.11 Credit Bureau Reporting	  	34
			
		 	SECTION 10.12 Further Assurances	  	34

  

 ii 

 SCHEDULES AND EXHIBITS 
  

			
	Schedule 1.1	 	Parties with Knowledge
		
	Schedule 1.2	 	Master File Layout
		
	Schedule 2.4	 	Form of Estimated Closing Statement and Final Closing Statement
		
	Schedule 4.1(c)	 	Third Party Consents Required for Closing
		
	Schedule 4.1(f)	 	Write-Off Policy
		
	Schedule 4.1(i)	 	Assigned Contracts
		
	Schedule 4.1(l)	 	Forms of Cardholder Agreements
		
	Schedule 5.2(d)	 	Sales, Leases, and Disposals
		
	Schedule 9.2	 	Indemnification Matters
		
	Exhibit A	 	Form of Program Agreement
		
	Exhibit B	 	Form of Instrument of Assignment and Assumption

  

 iii 

 PURCHASE AND SALE AGREEMENT 
 THIS PURCHASE AND SALE AGREEMENT is dated as of March 5, 2006 (the “Agreement”) and is by and between KOHL’S DEPARTMENT
STORES, INC., a Delaware corporation (the “Seller”), and CHASE BANK USA, NATIONAL ASSOCIATION, a national bank (the “Purchaser”). 
 RECITALS 
 WHEREAS, the Seller is, among other things, (i) engaged in the business of selling
merchandise through retail stores and by other means, and (ii) directly and indirectly engaged in the Business (as hereinafter defined); 
 WHEREAS, pursuant to this Agreement, the Seller desires to sell to the Purchaser, and the Purchaser desires to purchase from the Seller, certain assets used in the Business pursuant to the terms contained and in the manner described herein
and in the Ancillary Agreements (as hereinafter defined); 
 WHEREAS, on the date hereof, the Seller and the Purchaser are entering into a
Program Agreement (the “Program Agreement”) in the form attached hereto as Exhibit A, that is to become effective as of the Closing under this Agreement, and that provides for, among other things, the issuance of
proprietary credit cards of the Seller, the issuance of existing and new credit-related products to be developed with the Purchaser, the processing and servicing of the related accounts, and the conduct of related marketing activities, all as more
fully set forth therein; and 
 WHEREAS, concurrently with the Closing under this Agreement, the Seller and the Purchaser desire to enter
into other agreements in connection with the transactions contemplated hereby, all as more fully set forth herein. 
 NOW, THEREFORE, in
consideration of the premises, and of the mutual representations and agreements contained in this Agreement, the parties agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 SECTION 1.1 Definitions of Certain Terms. In this Agreement, the following terms are used with the meanings assigned below: 
 “Account” means, as of the Cut-Off Time, any account identified by name and account number under which a purchase or credit transaction may be or has been made by a Cardholder by means of a Credit
Card, which is recorded as an Account on the Master File and for which an Account Agreement is in effect as of the Closing Date, including any world-wide accounts. 

 “Accountant” has the meaning given thereto in Section 2.4(c). 
 “Account Agreement” means an agreement (including related disclosure) between the Seller or its Affiliates and a Person or Persons under
which Accounts are established and pursuant to which Credit Cards are issued to or on behalf of such Person or Persons, as such agreement may be amended, modified or otherwise changed from time to time (including pursuant to change of terms
notices). 
 “Accrued Interest” means the aggregate amount of all finance charges that were accrued and earned, but not
posted on the Accounts as of the Cut-Off Time. 
 “Acquired Assets” means all right, title and interest of the Seller and
its Affiliates in and to the following credit assets and properties, except to the extent they constitute Excluded Assets: 
 (1) the Accounts and the Gross Receivables accrued as of the Cut-Off Time related to the Accounts; 
 (2) the
applications for Accounts pending and solicitations for Accounts outstanding; 
 (3) the Account Agreements, the Cardholder
List and the Master File; 
 (4) the Assigned Contracts; 
 (5) the Books and Records, subject to Section 5.10, and subject to the Seller’s right to retain a copy of the Books and
Records for use in connection with servicing the Accounts; 
 (6) the Credit Cards; and 
 (7) rights, claims, credits, causes of action and rights of set-off against third parties relating principally to any Acquired Assets or
Assumed Liabilities. 
 “Action” means any claim, action, complaint, investigation, petition, suit or other proceeding,
whether civil, criminal or administrative, in law or in equity, or before any arbitrator or Governmental Authority. 
 “Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with such Person. For purposes of this definition, “control” of a Person
shall mean the possession, directly or indirectly, of the power to direct or cause the direction of its management or policies, whether through the ownership of voting securities, by contract or otherwise. 
 “Agreement” has the meaning given thereto in the Preamble. 
  

 2 

 “Allocation Statement” has the meaning given thereto in Section 2.5(a).

 “Ancillary Agreements” means the Program Agreement and the Instrument of Assignment and Assumption. 
 “Applicable Order” means, with respect to any Person, a judgment, injunction, writ, decree or order of any Governmental Authority, in
each case legally binding on that Person or on any of its property. 
 “Assigned Contracts” means the Contracts listed on
Schedule 4.1(i), and specifically excludes any contracts relating to servicing of the Accounts and any intercompany Contracts between the Seller and any of its Affiliates. 
 “Assumed Liabilities” mean the following Liabilities of the Seller and its Affiliates, except to the extent they constitute Excluded
Liabilities: 
 (1) all obligations to Cardholders from and after the Closing Date in respect of Accounts to perform under
Account Agreements, including payment of credit balances as of the Cut-Off Time; 
 (2) all fees, normal operating assessments
and other charges relating to the Accounts that are incurred or accrue on or after the Closing Date; 
 (3) all obligations of
the Seller arising under the Assigned Contracts from and after the Closing Date; 
 (4) all Liabilities for Taxes relating to
the Acquired Assets to the extent set forth in Sections 6.1(d) and 6.1(e). 
 “Books and Records” means books,
records, original documents, files and papers maintained by or for the Seller, whether in hard copy or electronic format, in each case to the extent within the Seller’s control and/or possession and primarily used with respect to the Acquired
Assets, other than any relating principally to the Excluded Assets and other than Tax returns or Tax workpapers. 
 “Business” means the proprietary Credit Card business of the Seller relating to the Accounts, including the extension of credit to Cardholders, the servicing of the Accounts, billings, collections, processing of Account
transactions and the administration of the Accounts and Gross Receivables. 
 “Business Day” means any day other than a
Saturday, a Sunday or a day on which banks located in Wisconsin or New York generally are required or authorized by law or executive order to close. 
 “Cardholder” means a Person or Persons to whom a Credit Card is or has been issued and in whose name(s) an Account, in connection with which the Credit Card may be used, has been established pursuant
to an Account Agreement. 
  

 3 

 “Cardholder List” means a list of the names, addresses, telephone numbers, taxpayer
identification numbers, social security numbers and e-mail addresses of all Cardholders as of the Cut-Off Time if and to the extent such information is within the possession or control of the Seller or its Affiliates. 
 “Closing” has the meaning set forth in Section 3.1(a). 
 “Closing Date” has the meaning set forth in Section 3.1(a). 
 “Code” means the Internal Revenue Code of 1986, as amended. 
 “Confidentiality Agreement” means that certain Confidentiality Agreement dated October 17, 2005, by and between the Seller and the
Purchaser. 
 “Constituent Documents” means the articles of association, articles of incorporation, certificate of
incorporation, by-laws and/or other organizational documents, as appropriate, of any Person. 
 “Contract” means, with
respect to any Person, any agreement, undertaking, contract, indenture, deed of trust or other instrument, document or agreement by which that Person, or any amount of its properties, is bound and/or subject. 
 “Credit Card” means a proprietary card that may be used by the related Cardholder to purchase goods and/or services from the Seller or
other Persons authorized by the Seller through open-end revolving credit, commonly known as credit, store or Kohl’s charge card, commonly referred to as “Kohl’s Charge.” 
 “Cut-Off Time” means 11:59 PM Pacific time on the date immediately preceding the Closing Date. 
 “Deductible Amount” has the meaning given thereto on Schedule 9.2. 
 “De Minimis Claim Amount” has the meaning given thereto on Schedule 9.2. 
 “Disclosure Schedule” means, with respect to the Seller or the Purchaser, a schedule delivered to the other party on or before the date
of this Agreement setting forth, among other things, items the disclosure of which is required under this Agreement either in response to an express disclosure requirement contained in a provision of this Agreement or as an exception to one or more
of the representations or covenants contained in this Agreement; provided, however, that, unless the terms of the applicable representation provide otherwise, the mere inclusion of an item in a Disclosure Schedule as an exception to a
representation will not be considered an admission by the disclosing party that such item (or any non-disclosed item or information of comparable or greater significance) represents a material exception or fact, event or circumstance or that such
item has had or would reasonably be expected to have a Material Adverse Effect with respect to the disclosing party or the Acquired Assets. 
 “Eligible Receivables” means all Gross Receivables other than receivables under Written-Off Accounts. 
  

 4 

 “Estimated Closing Statement” means a statement prepared by the Seller substantially in
the form of Schedule 2.4, showing in reasonable detail the calculation of the Estimated Purchase Price, based on data available as of the close of business on the fifth Business Day preceding the Closing Date. 
 “Estimated Purchase Price” means the amount payable by the Purchaser on the Closing Date in accordance with the Estimated Closing
Statement. 
 “Exchange Act” has the meaning given thereto in Section 4.1(e). 
 “Excluded Assets” means the assets of the Seller and its Affiliates not being acquired by the Purchaser hereunder, including the
following: 
 (1) cash and cash equivalents on hand and cash and cash equivalents in bank accounts maintained by the Seller or
any of its Affiliates; 
 (2) insurance policies maintained by or for the benefit of the Seller and all claims accrued
thereunder, and all amounts for insurance billed with respect to Accounts prior to the Closing; 
 (3) Intellectual Property
Rights other than rights to the Cardholder List or the Master File and other than any Intellectual Property Rights explicitly licensed or otherwise granted to the Purchaser under any Ancillary Agreement; 
 (4) assets of the Seller or any of its Affiliates sold or otherwise disposed of, or otherwise becoming no longer a part of the Acquired
Assets, without violation of this Agreement during the period prior to the Closing Date; 
 (5) assets relating to the
Seller’s employee benefit agreements, plans or other arrangements; 
 (6) rights, claims, credits, causes of action, or
rights of set-off against third parties not relating principally to the Acquired Assets or which relate principally to an Excluded Liability; 
 (7) all licenses, permits or other authorizations of any Governmental Authorities held or used by the Seller; 
 (8) interests in real property; 
 (9) Personal Property of the Seller; 
 (10) all right, title and interest of the Seller in and to any and all other assets and properties, of any kind whatsoever, that are not
primarily used in connection with the Acquired Assets as of the Closing Date; 
  

 5 

 (11) all customer data relating to customers of the Seller and its Affiliates (whether or
not duplicated in the Cardholder List, the Master File and the Books and Records (all of which constitute Acquired Assets)); 
 (12) prepaid Taxes, Tax payments due from any of the Seller’s Affiliates, and entitlements to refunds, credits, offsets or other benefits for overpayment of Taxes relating to any period (or portion thereof) prior to the Closing Date;

 (13) Loan loss reserves; 
 (14) Intercompany Contracts between the Seller and any of its Affiliates; 
 (15) The Scoring
Models; 
 (16) Any gift card, debit card, or other stored-value card, and any program related thereto; 
 (17) All Written-Off Accounts; and 
 (18) All rights, privileges, and benefits of acting as servicer of the Accounts or any account created in the future, including all servicing fees and other compensation payable to the servicer with respect to all
periods from and after the Closing. 
 “Excluded Liabilities” means Liabilities of the Seller (or any of its respective
predecessors) and its Affiliates, other than the Assumed Liabilities, of any kind whatsoever, whether presently in existence or arising hereafter, including: 
 (1) Except as provided in Sections 6.1(d) and (e), (A) all Liabilities for Taxes with respect to the Business or the Acquired
Assets for any period (or portion thereof) prior to the Closing Date and (B) all Liabilities for Taxes with respect to the Business or the Acquired Assets that accrue on the Closing Date in connection with the sale of the Acquired Assets;

 (2) Liabilities that result from an act, or failure to act, by the Seller or any of its Affiliates prior to the Closing
Date that relate to any claims by any current, former or putative employee thereof, whether or not such claims are brought prior to, on or after the Closing Date, and Liabilities relating to employee benefits (including any accrued vacation
benefits) or compensation arrangements existing prior to the Closing Date; 
 (3) Any Liability principally related to an
Excluded Asset; and 
 (4) Any Liability of the Seller (or any of its Affiliates) relating to or arising from the operation of
the Business at or prior to the Cut-Off Time or from any facts, circumstances or events existing or occurring at or prior to the Cut-Off Time. 
 “Federal Funds Rate” means the offered rate as reported in The Wall Street Journal in the “Money Rates” section for reserves traded among commercial banks for overnight use in amounts of one million dollars
or more or, if no such rate is published for a day, the rate published for the preceding Business Day. 
  

 6 

 “Final Closing Statement” means a statement prepared by the Seller, substantially in the
form of Schedule 2.4, showing in reasonable detail the Seller’s calculation of the Purchase Price, based on the Accounts and the Acquired Assets as of the Cut-Off Time. 
 “GAAP” means generally accepted accounting principles as in effect in the United States. 
 “Governmental Authority” means any domestic or foreign governmental, regulatory or self-regulatory authority, agency, court, tribunal,
commission or other governmental, regulatory or self-regulatory entity exercising legislative, judicial, regulatory or administrative functions. 
 “Gross Receivables” means all amounts owing (after deduction of credit balances scheduled as of the Cut-Off Time and unapplied cash) to the Seller from Cardholders with respect to Accounts (including outstanding loans, cash
advances and other extensions of credit; billed or posted but unbilled finance charges and late charges; Accrued Interest; and any other fees, charges and interest assessed on the Accounts) as of the Cut-Off Time (or, solely with respect to the
Estimated Closing Statement, as of the close of business on the fifth Business Day preceding the Closing Date). 
 “HSR Act”
means the Hart-Scott-Rodino Antitrust Improvements Act of 1976. 
 “Indemnified Party” has the meaning given thereto in
Section 9.4(a). 
 “Indemnifying Party” has the meaning given thereto in Section 9.4(a). 

“Indemnity Cap Amount” has the meaning given thereto on Schedule 9.2. 
 “Instrument of Assignment and Assumption” means the Instrument of Assignment and Assumption in the form attached as
Exhibit B, to be entered into at Closing. 
 “Intellectual Property Right” means any intellectual property
right, including any trademark, service mark or other source indicator, invention, patent, copyright, trade secret, know-how, and any registration or application for registration of any of the foregoing. 
 “Knowledge” means, with respect to the Seller, the actual knowledge of the officers of the Seller who are listed on Schedule 1.1,
and, with respect to the Purchaser, the actual knowledge of the officers of the Purchaser who are listed on Schedule 1.1. 
 “Liability” means any debt, liability, commitment or obligation, of any kind whatsoever, whether due or to become due, known or unknown, accrued or fixed, absolute or contingent, or otherwise. 
 “Lien” means, with respect to any property, any lien, security interest, mortgage, pledge, charge or encumbrance, whether consensual or
statutory, relating to that property, including the interest of a vendor or lessor under any conditional sale agreement, capital lease or other title retention agreement relating to such property. 
  

 7 

 “Losses” has the meaning given thereto in Section 9.2. 
 “Master File” means the master file maintained by the Seller and the Service Provider with respect to the Accounts, including the
information listed on Schedule 1.2. 
 “Material Adverse Effect” means: 
 (a) With respect to the Acquired Assets, a material adverse change in, or a material adverse effect upon, the Acquired Assets taken as a whole, excluding
any effect or change attributable to or resulting from (i) events, conditions or occurrences in economic, business or financial conditions generally effecting the credit card services, consumer credit business, or banking industry, to the
extent such that such events, conditions or occurrences do not disproportionately effect the Acquired Assets, (ii) financial market conditions, including interest rates or changes therein, (iii) changes in Requirements of Law, GAAP or
regulatory accounting principles after the date hereof, (iv) any action, omission, change, effect, circumstance or condition contemplated by this Agreement, or attributable to the signing and announcement of this Agreement or the transactions
contemplated by this Agreement and the Ancillary Agreements, or (v) any actions or omissions required by the terms of this Agreement or the Ancillary Agreements; and 
 (b) With respect to the Seller or the Purchaser, a material impairment of the ability of the relevant Person or Persons to perform its or their material obligations under this Agreement. 
 “Permissible Liens” means (a) with respect to those Acquired Assets that are Personal Property, restrictions or imperfections of
title that do not materially detract from the value or impair the use of any Acquired Asset and (b) Liens for taxes, assessments and other governmental charges or levies not yet due or which are being contested in good faith by appropriate
action. 
 “Person” means any individual, corporation, business trust, partnership, association, limited liability company
or similar organization, or any Governmental Authority. 
 “Personal Property” means the tangible assets of the Seller.

 “Program Agreement” has the meaning given thereto in the Recitals. 
 “Purchase and Assumption” has the meaning given thereto in Section 3.1(a). 
 “Purchaser” has the meaning given thereto in the Preamble. 
 “Purchase Price” means the purchase price payable in accordance with the Final Closing Statement, as finally determined in accordance
with Section 2.4. 
 “Purchaser Indemnified Parties” has the meaning given thereto in Section 9.2.

  

 8 

 “Requirement of Law” means all federal, state and local laws, statutes, regulations,
written regulatory guidance, orders or directives, opinions and interpretations of any Governmental Authority as may be amended and in effect from time to time, including: (i) the Truth in Lending Act and Regulation Z; (ii) the Equal
Credit Opportunity Act and Regulation B; (iii) the Fair Debt Collection Practices Act; (iv) the Fair Credit Reporting Act; (v) the Gramm-Leach-Bliley Act and its implementing regulations; and (vi) the Federal Trade Commission
Act. 
 “Schedule” shall mean any Disclosure Schedule hereto. 
 “SEC” has the meaning given thereto in Section 4.1(e). 
 “SEC Documents” has the meaning given thereto in Section 4.1(e). 
 “Securities Act” shall have the meaning given thereto in Section 4.1(e). 
 “Seller “ has the meaning given thereto in the Preamble. 
 “Seller Indemnified Parties” has the meaning given thereto in Section 9.3. 
 “Scoring Models” means the customer underwriting scorecard and the customer behavioral scorecard developed on behalf of the Seller
relating to the Accounts. 
 “Service Provider” means any data processing service provider used by the Seller in connection
with the Accounts. 
 “Tax Return” means any return, declaration, report or similar statement required to be filed with
respect to any Taxes (including any attached schedules) including any information return, claim for refund, amended return and declaration of estimated Tax. 
 “Taxes” means (A) any income, alternative or add-on minimum tax, gross receipts, sales, use, transfer, gains, ad valorem, franchise, profits, license, withholding, payroll,
employment, excise, severance, stamp, occupation, premium, property, environmental or windfall profit tax, custom, duty or other tax, governmental fee or other like assessment or charge, together with any interest or any penalty, addition to tax or
additional amount imposed by any Governmental Authority responsible for the imposition of any such tax (domestic or foreign), and (B) any Liability of the Seller for the payment of any amounts of the type described in clause (A) above as a
result of being a member of an affiliated, consolidated, combined or unitary group for any period. 
 “Written-Off Accounts”
means all Accounts that (i) have been charged-off or written-off as of the Cut-Off Time, or (ii) are eligible for charge off or write-off as of the Cut-Off Time in accordance with the write-off policy attached hereto as
Schedule 4.1(f). 
 SECTION 1.2 Interpretation. (a) In this Agreement, unless the context otherwise requires,
references to: 
 (i) the Preamble or the Recitals, Sections, Exhibits, or
Schedules refer to the Preamble or a Recital or Section of, or Exhibit or Schedule to, this Agreement; 
  

 9 

 (ii) any Contract (including this Agreement) refer to the Contract as amended,
modified, supplemented or replaced from time to time; 
 (iii) any statute or regulation refer to the statute or
regulation as amended, modified, supplemented or replaced from time to time (and, in the case of statutes, include any rules and regulations promulgated under the statute) and to any section of any statute or regulation include any successor to the
section; 
 (iv) any Governmental Authority includes any successor to the Governmental Authority; 
 (v) this Agreement refers to this Agreement, the Schedules, the Disclosure Schedule and the Exhibits hereto; and 
 (vi) any Schedule refer to a Disclosure Schedule. 
 (b) The table of contents and headings contained in this Agreement are for reference purposes only and do not limit or otherwise effect any of the provisions of this Agreement. 
 (c) Whenever the word “include,” “includes” or “including” is used in this Agreement, it will be deemed to be followed by
the words “without limitation.” 
 (d) Any time period specified herein, including the period during or after which a payment is
due, shall be deemed to exclude the day on which the period commences and include the day on which the period ends. 
 (e) This Agreement is
the product of negotiation by the parties having the assistance of counsel and other advisers. It is the intention of the parties that this Agreement not be construed more strictly with regard to one party than with regard to the other. 

ARTICLE II 
 PURCHASE, SALE AND
ASSUMPTION 
 SECTION 2.1 Purchase and Sale of Assets. On the terms and subject to the conditions of this Agreement, at the time
of the Closing, and effective from and after the Closing Date, the Seller shall sell, convey and assign (or cause its Subsidiaries to sell, convey and assign) to the Purchaser, free and clear of all Liens, except Permissible Liens, the Acquired
Assets, and the Purchaser agrees to purchase all such Acquired Assets. 
  

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 SECTION 2.2 Assumption of Liabilities. On the terms and subject to the conditions set forth in
this Agreement, from and after the Closing Date, the Purchaser agrees to assume, pay, defend, discharge and perform as and when due the Assumed Liabilities. 
 SECTION 2.3 Excluded Liabilities. Notwithstanding any provision in this Agreement or any other writing to the contrary, the Purchaser is assuming only the Assumed Liabilities and not any Excluded Liabilities.
The Excluded Liabilities will be retained by the Seller. 
 SECTION 2.4 Purchase Price; Purchase Price Adjustment. (a) On the
second Business Day before the Closing, the Seller will deliver to the Purchaser the Estimated Closing Statement reflecting the Seller’s calculation of the Estimated Purchase Price to be paid by the Purchaser at the Closing. 
 (b) Within 60 Business Days after the Closing, the Seller will deliver to the Purchaser (i) the Final Closing Statement (A) prepared in
accordance with the Seller’s normal operating procedures in effect as of the Cut-Off Time, and (B) based on the information in the Master File and the other Acquired Assets as of the Cut-Off Time and (ii) copies of the Master File as
of the Cut-Off Time and all material working papers relating to the Final Closing Statement. 
 (c) The Purchaser shall, within 30 Business
Days after receipt of the Final Closing Statement, advise the Seller in writing and in reasonable detail of any inaccuracies it believes are reflected in the Final Closing Statement. In the event no such objection to the Final Closing Statement is
delivered to the Seller within such time period, the Final Closing Statement, as delivered to the Purchaser, shall be final and binding upon the parties. In the event the Purchaser delivers such an objection, the Seller and the Purchaser shall
attempt in good faith to resolve any differences. In the event all differences are not resolved within 30 Business Days following delivery to the Seller of any objections, then the issues remaining unresolved shall be determined by an independent
nationally-recognized public accounting firm mutually acceptable to the Seller and the Purchaser (the “Accountant”). The Accountant shall resolve all disputed items in accordance with the provisions of this Agreement. In making its
determination, the Accountant may only consider those items and amounts as to which the Purchaser and the Seller have disagreed within the time periods and the permitted grounds specified. The Accountant’s determination will be conclusive and
binding on the Purchaser and the Seller absent manifest error. The fees of the Accountant will be shared by the Purchaser and the Seller in proportion to the relative differences between their respective calculations of the Purchase Price and the
amount determined by the Accountant. 
 (d) If the Estimated Purchase Price exceeds the Purchase Price, then the Seller shall, within five
Business Days after the Purchase Price has been finally determined pursuant to Section 2.4(c), pay such excess amount to the Purchaser, together with interest on such excess amount for the period from and including the Closing Date to
but excluding the date of such payment at a rate per annum equal to the Federal Funds Rate. If the Estimated Purchase Price is less than the Purchase Price, then the Purchaser shall, within five Business Days after the Purchase Price has been
finally determined pursuant to Section 2.4(c), pay such deficiency to the Seller, together with interest on such deficiency for the period from and including the Closing Date to but excluding the date of such payment at a rate per annum
equal to the Federal Funds 
  

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 Rate. Each party to this Agreement will make available to the other party, and to the Accountant, its and its
accountant’s work papers, schedules and other supporting data as may be reasonably requested by such party to enable it to verify the amounts set forth in the Final Closing Statement. 
 SECTION 2.5 Allocation of Purchase Price. (a) The Seller shall prepare an allocation of the Purchase Price (as determined for federal income
tax purposes) among the Acquired Assets (the “Allocation Statement”) and, within 90 days after the Closing Date, shall deliver to the Purchaser a copy of the Allocation Statement, together with any appropriate supporting
documentation. The Purchaser and the Seller shall endeavor in good faith to agree on the Allocation Statement. If the Purchaser and the Seller have not agreed on the Allocation Statement within 30 days after delivery of the Allocation Statement by
the Seller to the Purchaser, each of the Purchaser and the Seller may use its own allocation. The Seller will consult with the Purchaser regarding the preparation of the Allocation Statement and will respond to any reasonable request or inquiry of
the Purchaser in connection therewith. The Allocation Statement shall be prepared in accordance with Section 1060 of the Code and the rules and regulations promulgated thereunder. 
 (b) The Purchaser and the Seller shall report the allocation of the total consideration among the Acquired Assets in a manner consistent with the
Allocation Statement and shall act in accordance with the Allocation Statement in the preparation and filing of all Tax Returns (including filing Form 8594 with their respective Federal income tax returns for the taxable year that includes the
Closing Date and any other forms or statements required by the Code, Treasury regulations, the Internal Revenue Service or any applicable state or local taxing authority) and in the course of any Tax audit, Tax review or Tax litigation relating
thereto; provided, however, that neither the Seller nor the Purchaser will be obligated to litigate any challenge to such allocation of the Purchase Price by a Governmental Authority. 
 (c) The Purchaser and the Seller will promptly inform each other of any challenge by any Governmental Authority to any allocation made pursuant to this
Section 2.5 and shall consult with and keep each other informed with respect to the status of, and any discussion, proposal or submission with respect to, such challenge. 
 SECTION 2.6 Third-Party Consents. 
 (a) To the extent that any consent needed to assign to the Purchaser any Assigned Contract has not been obtained on or prior to the Closing Date, this Agreement and any document delivered pursuant hereto will not constitute an assignment or
attempted assignment thereof if such assignment or attempted assignment would constitute a material breach of such Assigned Contract or would give rise to a valid right of termination thereof. If any such third-party consent will not be obtained on
or prior to the Closing Date, then the applicable Contract shall be withheld from sale pursuant to this Agreement and the parties shall enter into an agreement reasonably acceptable to the Purchaser and the Seller to provide for the transfer thereto
of all the economic rights and benefits related to such Contract. 
 (b) The Seller and the Purchaser will use commercially reasonable
efforts (which for purposes of this Section 2.6 shall not require any payment of money by the Seller or 
  

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 the Purchaser, except as agreed between them in writing) to seek any required consents to the assignment of the Assigned
Contracts that have not been obtained as of the Closing Date, and promptly upon receipt of such consents will effect such assignments. 
 SECTION 2.7 Intention of the Parties. The Seller and the Purchaser intend that the transfer of the Acquired Assets by the Seller to the Purchaser pursuant to this Agreement be a sale of the ownership interest in such assets to the
Purchaser and that, following such sale, the Acquired Assets shall not be part of the Seller’s estate in the event of the filing of a bankruptcy petition by or against the Seller under any bankruptcy law. The Seller and the Purchaser intend to
treat such transfer as a sale for accounting and tax purposes. In the event that, notwithstanding the intent of the Seller and the Purchaser, the transfer contemplated hereby is held not to be a sale, this Agreement shall constitute a security
agreement under applicable law, and the Seller hereby grants to the Purchaser a first priority continuing security interest in and to all of the Seller’s right, title and interest now owned or hereafter arising in, to and under the Acquired
Assets. 
 ARTICLE III 
 CLOSING; ASSIGNMENT 
 SECTION 3.1 The Closing. (a) The closing (the “Closing”) of the purchase
and sale of the Acquired Assets and assumption of the Assumed Liabilities hereunder (collectively, the “Purchase and Assumption”) will take place at the offices of Sidley Austin LLP, 1787 7th Avenue, New York, New York, on the second Business Day after the last of the conditions set forth in Sections 7.1, 7.2 and 7.3 (other than
conditions relating solely to the delivery of documents to be dated the Closing Date) has been satisfied or waived in accordance with the terms of this Agreement or at such other place or on such other date as the parties hereto jointly designate in
writing (the “Closing Date”). 
 (b) At the Closing, the Seller and the Purchaser will deliver or cause to be delivered to
each other the Instrument of Assignment and Assumption in substantially the form set forth in Exhibit B and, if necessary, such other instruments as are necessary or appropriate to reflect any alternative arrangements described in
Section 2.6, appropriately executed by the Seller and the Purchaser. 
 (c) At the Closing, the Purchaser will pay the Estimated
Purchase Price by initiating a wire transfer of immediately available funds (in U.S. dollars) prior to 11:00 a.m. Eastern time on the Closing Date to an account or accounts specified by the Seller at least one Business Day prior to the Closing Date.

 (d) All of the actions described in subsections (b) and (c) of this Section 3.1 shall be deemed to occur simultaneously.

  

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 ARTICLE IV 
 REPRESENTATIONS OF THE PARTIES 
 SECTION 4.1 Representations of the Seller. The Seller
represents to the Purchaser as follows: 
 (a) Corporate Existence. The Seller (i) is a corporation duly organized, validly
existing and in good standing under the laws of the State of its incorporation, and (ii) is duly licensed or qualified to do business as a corporation and is in good standing as a foreign corporation in all jurisdictions in which the nature of
the activities conducted or proposed to be conducted by it or the character of the assets owned or leased by it makes such licensing or qualification necessary to perform its obligations required hereunder except to the extent that its
non-compliance would not reasonably be expected to have a Material Adverse Effect on the Acquired Assets or the Seller. 
 (b) Capacity;
Authorization; Validity. The Seller has all necessary corporate power and authority to (i) own the Acquired Assets and to carry on the Business as currently conducted, (ii) execute and enter into this Agreement and each of the
Ancillary Agreements, and (iii) perform the obligations required of the Seller hereunder and under each of the Ancillary Agreements. The execution and delivery by the Seller of this Agreement and each of the Ancillary Agreements, and the
consummation by the Seller of the transactions specified herein have been duly and validly authorized and approved by all necessary corporate action of the Seller. This Agreement (i) has been duly executed and delivered by the Seller,
(ii) constitutes the valid and legally binding obligation of the Seller, and (iii) is enforceable against the Seller in accordance with its terms (subject to applicable bankruptcy, insolvency, reorganization, receivership or other laws
effecting the rights of creditors generally and by general equity principles including those respecting the availability of specific performance). 
 (c) Governmental and Third-Party Consents. Except as set forth on Schedule 4.1(c), the Seller has all necessary licenses, permits, consents and approvals from or by, and has made all necessary notices to, any Governmental
Authority having jurisdiction, or any other third party, in connection with the execution, delivery or performance of this Agreement and the Ancillary Agreements by the Seller or the consummation by the Seller of the transactions contemplated by
this Agreement and the Ancillary Agreements, except to the extent that the failure to obtain such licenses, permits, consents or approvals or to provide such notices would not reasonably be expected to have a Material Adverse Effect on the Acquired
Assets or the Seller. 
 (d) Conflicts; Defaults; Etc. The execution, delivery and performance of this Agreement and the Ancillary
Agreements by the Seller, its compliance with the terms hereof and thereof, and its consummation of the transactions specified herein and therein do not, and (subject to obtaining the governmental and third-party consents referred to in
Section 4.1(c)) the consummation of the transactions contemplated by this Agreement and the Ancillary Agreements will not, (i) conflict with, violate, result in the breach of, constitute an event which would, or with the lapse of
time or action by a third party or both would, result in a default under, or accelerate the performance required by, the terms of any Contract to which the Seller is a party or by which it is bound, or by which the Seller’s assets are bound;
(ii) conflict with or 
  

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 violate the Constituent Documents of the Seller; (iii) violate any Requirements of Law or conflict with, or require
any consent or approval under any Applicable Order, permit or license, to which the Seller is a party or by which it is bound or effected; (iv) require the consent or approval of any other party to any Contract to which the Seller is a party or
by which it is bound; or (v) require any filing with, notice to, consent or approval of, or any other action to be taken with respect to, any Governmental Authority, except any filings required under the HSR Act; except in each case described
in clause (i), (iii), (iv) or (v) of this Section 4.1(d), for any conflict, violation, breach, default, termination, or cancellation that would not reasonably be expected to have a Material Adverse Effect on the Acquired Assets
or the Seller. 
 (e) SEC Reports. The Seller has filed with the Securities and Exchange Commission (the “SEC”) all
forms, reports and other documents (including all prospectuses and registration statements) required to be filed by it with respect to all periods commencing on or after January 1, 2002 (the “SEC Documents”). As of their
respective filing dates (or effective dates, in the case of prospectuses and registration statements), the SEC Documents complied in all material respects with the requirements of the Securities Act of 1933 (the “Securities
Act”) or the Securities Exchange Act of 1934 (the “Exchange Act”), as applicable, and the rules and regulations of the SEC promulgated thereunder. 
 (f) Absence of Certain Changes. 
 (i) Between November 1, 2005 and the date hereof, the Business has been conducted in the ordinary course and there has not been any change in the financial condition or results of operations of the Business that
has had or would reasonably be expected to have a Material Adverse Effect on the Acquired Assets or the Seller. 
 (ii) Set
forth on Schedule 4.1(f) hereto is a true and complete copy of the write-off policy of the Seller as in effect on November 1, 2005. Since that date, (A) the Accounts and Gross Receivables have been underwritten, established,
administered, serviced, collected, terminated and charged-off in the ordinary course consistent with the Seller’s past practice, and (B) the Seller has not materially amended, modified or supplemented or otherwise made any material changes
to the policies and procedures as in effect on such date. 
 (g) Title to Properties; Encumbrances. The Seller has good title to or a
valid leasehold interest in, or is licensed or otherwise entitled to use, all of the Acquired Assets (other than the Accounts to which Section 4.1(1) applies), free and clear of all Liens other than Permissible Liens. 
 (h) Litigation. No Action is pending or, to Seller’s Knowledge, threatened against the Seller or its Affiliates with respect to the Business
or the Acquired Assets, at law, in equity or otherwise, before any Governmental Authority or before any arbitrator or panel of arbitrators, to which the Seller is a party, which, if adversely determined, would reasonably be expected to have a
Material Adverse Effect on the Acquired Assets or the Seller. There is no outstanding judgment, order, decree, or award that would reasonably be expected to have such a Material Adverse Effect. To the Seller’s Knowledge, there has been no
adverse finding of any audit, investigation, or inspection of any Governmental Authority concerning or Business within the past two years that would reasonably be expected to have such a Material Adverse Effect. 
  

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 (i) Contracts. Except to the extent that any of the following would not reasonably be expected to
have a Material Adverse Effect on the Acquired Assets or the Seller, each Assigned Contract is a valid, legally binding agreement of the Seller, enforceable against Seller in accordance with its terms, and neither the Seller nor, to the
Seller’s Knowledge, any other party thereto is in default under the terms of any such Contract. Schedule 4.1(i) sets forth a complete list of the Assigned Contracts. 
 (j) Books and Records. All of the Seller’s Books and Records are in all material respects complete and correct and are maintained in
accordance with all Requirements of Law. 
 (k) Compliance with Laws. Except to the extent that the following would not reasonably be
expected to have a Material Adverse Effect on the Acquired Assets or the Seller: 
 (i) the Seller is in compliance with all
Requirements of Law relating to the Business and the Acquired Assets; and 
 (ii) the Seller is not subject to any capital
plan or supervisory agreement, order or memorandum between any of them and any Governmental Authority. 
 (l) Account Agreements;
Accounts; Gross Receivables. Except to the extent that any of the following would not reasonably be expected to have a Material Adverse Effect on the Acquired Assets or the Seller: 
 (i) The Seller is the sole owner of and has good title to the Accounts and the Gross Receivables. This Agreement shall, following the
Closing Date, and subject to the filing of appropriate financing statements and all required continuations, amendments and replacements thereof, vest in the Purchaser all right, title and interest of the Seller in and to the Accounts and the Gross
Receivables, free and clear of all Liens other than Permissible Liens. 
 (ii) Each Account Agreement (other than any Account
Agreement with respect to any Written-Off Account) is a valid and legally binding obligation of each obligor thereunder, including any co-signer, guarantor or surety, in the full amount thereof set forth in the Master File or the Books and Records,
and is enforceable against such obligors in accordance with its terms, subject to (A) claims and defenses on disputed card transactions asserted by a Cardholder as indicated on the Master File or the Books and Records, (B) applicable
bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and other laws relating to or effecting creditors’ rights generally and the effect of general equitable principles, and (C) the Soldiers’ and Sailors’ Civil
Relief Act of 1940, as amended. Representative forms of Cardholder Agreements are set forth in Schedule 4.1(1), and those forms contain all material terms of the Cardholder Agreements as in effect as of the date of this Agreement;
provided, however, that 
  

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 no representation or warranty is hereby given as to the capacity, authority or any other factor relating
to the identity or status of the obligor that may effect the enforceability of the Account Agreements to which it is party. 
 (iii) Each Gross Receivable is not subject to offset, refund, recoupment, reversal, adjustment or any claim or defense by any Person (other than claims or defenses on disputed card transactions and refunds of credit balances, as indicated
on the Master File). 
 (iv) Other than the Written-Off Accounts, each Account complies in all material respects with the
applicable Account Agreement. 
 (v) All Account applications have been taken and evaluated and applicants notified in a
manner that complied with all applicable Requirements of Law. 
 (vi) All Accounts have been solicited, originated, maintained
and serviced in all material respects in compliance with all applicable Requirements of Law. 
 (vii) All disclosures made in
connection with the Accounts complied in all material respects with all applicable Requirements of Law. 
 (m) No Brokers or Finders.
The Assumed Liabilities do not include, and the Seller is solely responsible for and shall pay, any Liability incurred by it for any financial advisory fees, brokerage fees, commissions or finder’s fees directly or indirectly in connection with
this Agreement or the transactions contemplated hereby or by the Ancillary Agreements. 
 (n) Accuracy of Information. The information
contained in the Master File, the Books and Records, and the Cardholder List delivered to the Purchaser prior to the date hereof was, and the information contained in the Master File, the Cardholder List and the Books and Records delivered to the
Purchaser on the Closing Date will be, complete and accurate in all material respects as of the date of delivery and the Cut-Off Time, respectively. 
 SECTION 4.2 Representations of the Purchaser. The Purchaser represents to the Seller as follows: 
 (a)
Corporate Existence. The Purchaser (i) is a national bank organized, validly existing, and in good standing under the laws of the United States; and (ii) is duly licensed or qualified to do business as a banking corporation and is
in good standing as a foreign corporation in all jurisdictions in which the nature of the activities conducted or proposed to be conducted by it or the character of the assets owned or leased by it makes such licensing or qualification necessary to
perform its obligations hereunder, except to the extent that its non-compliance would not reasonably be expected to have a Material Adverse Effect on the Purchaser or on the Acquired Assets following the Closing Date. 
 (b) Capacity; Authorization; Validity. The Purchaser has all necessary power and authority to (i) execute and enter into this Agreement and
each of the Ancillary Agreements, 
  

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 and (ii) perform the obligations required of the Purchaser hereunder and under each of the Ancillary Agreements. The
execution and delivery by the Purchaser of this Agreement and each of the Ancillary Agreements, and the consummation by the Purchaser of the transactions specified herein, have been duly and validly authorized and approved by all necessary corporate
action of the Purchaser. This Agreement (i) has been duly executed and delivered by the Purchaser, (ii) constitutes the valid and legally binding obligation of the Purchaser, and (iii) is enforceable against the Purchaser in
accordance with its terms (subject to applicable bankruptcy, insolvency, reorganization, receivership or other laws effecting the rights of creditors generally and financial institutions in particular and by general equity principles including those
respecting the availability of specific performance). 
 (c) Governmental and Third-Party Consents. The Purchaser has all necessary
licenses, permits, consents, and approvals from or by, and has made all necessary notices to, any Governmental Authority having jurisdiction or any third party, in connection with the execution, delivery or performance of this Agreement and the
Ancillary Agreements by the Purchaser and the consummation by the Purchaser of the transactions contemplated by this Agreement and the Ancillary Agreements, except to the extent that the failure to obtain such licenses, permits, consents, or
approvals or to provide such notices would not reasonably be expected to have a Material Adverse Effect on the Purchaser or on the Acquired Assets following the Closing Date. 
 (d) Conflicts; Defaults; Etc. The execution, delivery and performance of this Agreement and the Ancillary Agreements by the Purchaser, its
compliance with the terms hereof and thereof, and its consummation of the transactions specified herein and therein do not and the consummation of the transactions contemplated by this Agreement and the Ancillary Agreements will not
(i) conflict with, violate, result in the breach of, constitute an event which would, or with the lapse of time or action by a third party or both would, result in a default under, or accelerate the performance required by, the terms of any
Contract to which the Purchaser is a party or by which it is bound; (ii) conflict with or violate the Constituent Documents of the Purchaser; (iii) violate any Requirement of Law or conflict with, or require any consent or approval under
any Applicable Order, permit or license, to which the Purchaser is a party or by which it is bound or effected; (iv) require the consent or approval of any other party to any Contract to which the Purchaser is a party or by which it is bound;
or (v) require any filing with, notice to, consent or approval of, or any other action to be taken with respect to, any Governmental Authority, except any filings required under the HSR Act; and except in each case described in clause (i),
(iii), (iv) or (v) of this Section 4.2(d), for any conflict, violation, breach, default, termination, or cancellation that would not reasonably be expected to have a Material Adverse Effect on the Purchaser or on the Acquired
Assets following the Closing Date. 
 (e) Absence of Certain Changes. Since November 1, 2005, there has not been any change in
the financial condition or results of operations of the Purchaser that has had or would reasonably be expected to have a Material Adverse Effect on the Purchaser or on the Acquired Assets following the Closing Date. 
 (f) Compliance with Laws. Except to the extent that the following would not reasonably be expected to have a Material Adverse Effect on the
Purchaser or on the Acquired Assets following the Closing Date: 
 (i) the Purchaser is in compliance with all Requirements of
Law relating to its credit card business; and 
  

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 (ii) the Purchaser is not subject to any capital plan or supervisory agreement, order or
memorandum between it and any Governmental Authority. 
 (g) Financing. The Purchaser has sufficient cash, available lines of credit
or other sources of immediately available funds to enable it to pay the Estimated Purchase Price as required by Section 3.1(c) and to timely pay any other amounts to be paid by it under this Agreement. The Purchaser is not subject to any
capital plan or supervisory agreement, order or memorandum between it and any Governmental Authority with jurisdiction over it that could reasonably be expected to effect its ability to consummate the purchase of the Acquired Assets from the Seller
and fulfill its obligations under this Agreement and the Ancillary Agreements. 
 (h) Litigation. No Action is pending or, to the
Purchaser’s Knowledge, threatened against the Purchaser or its Affiliates with respect to any of their respective assets, at law, in equity or otherwise, before any Governmental Authority or before any arbitrator or panel of arbitrators, to
which the Purchaser is a party, which, if adversely determined, would reasonably be expected to have a Material Adverse Effect on the Purchaser or on the Acquired Assets following the Closing Date. There is no outstanding judgment, order, decree, or
award that would reasonably be expected to have such a Material Adverse Effect. To the Purchaser’s Knowledge, there has been no adverse finding of any audit, investigation, or inspection of any Governmental Authority concerning the
Purchaser’s credit card business within the past two years that would reasonably be expected to have such a Material Adverse Effect. 
 (i) No Brokers or Finders. Any Liability incurred by the Purchaser or its Affiliates for any financial advisory fees, brokerage fees, commissions or finder’s fees directly or indirectly in connection with this Agreement or the
transactions contemplated hereby or by the Ancillary Agreements will be borne by the Purchaser. 
 SECTION 4.3 No Other Representations or
Warranties. Except as expressly set forth in this Article IV and Article VI or in any of the Ancillary Agreements, neither the Seller nor the Purchaser has made or make any other express or implied representations, or any express
or implied warranty, either written or oral, with respect to the Acquired Assets, the Assumed Liabilities or the Seller, the Business or the Purchaser, respectively. 
 ARTICLE V 
 COVENANTS 
 SECTION 5.1 Conduct of Business. (a) Except as otherwise contemplated hereby or by the Ancillary Agreements, and except for transactions in
the ordinary course of business, until the Closing Date, the Seller will use its commercially reasonable efforts to preserve intact the business organizations and relationships with third parties relating to the Business, to keep available the
services of required employees of the Business and to preserve beneficial relationships with customers in connection with the Business, following substantially the same material practices and standards, including collection practices and accounting
practices for charge-offs and reserves, as in effect on November 1, 2005. 
  

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 (b) Except as otherwise contemplated hereby or by the Ancillary Agreements, and except for transactions
in the ordinary course of business, until the Closing Date, the Purchaser will use its commercially reasonable efforts to preserve intact the business organizations and relationships with third parties relating to its credit card business, to keep
available the services of required employees of its credit card business and to preserve beneficial relationships with customers in connection with its credit card business, following substantially the same material practices and standards,
including collection practices and accounting practices for charge-offs and reserves, as in effect on the date hereof. 
 SECTION 5.2
Certain Changes. Without limiting Section 5.1, and except as otherwise contemplated hereby or by the Ancillary Agreements or required by applicable Requirements of Law, from the date hereof until the Closing Date, without the
prior written consent of the Purchaser (which consent shall not be unreasonably withheld or delayed), the Seller will not: 
 (a) Enter into,
terminate, or amend any Contract except in the ordinary course of business consistent with past practice and only to the extent such entry or amendment would not reasonably be expected to have a Material Adverse Effect on the Acquired Assets;

 (b) Acquire, except in the course of collection, a material amount of assets from any other Person or all or substantially all of the
business or assets of any Person if such business or assets would constitute Acquired Assets; 
 (c) Change in any material respect its
credit and underwriting, posting, collection, charge-off or operating policies and procedures (or the manner of application thereof) with respect to the Business as in effect on November 1, 2005; 
 (d) Sell, lease or otherwise dispose of any of the Acquired Assets except (i) in the ordinary course of business consistent with past practice and
in transactions that individually or in the aggregate with all such other dispositions would not reasonably be expected to have a Material Adverse Effect on the Seller or the Acquired Assets or (ii) pursuant to the terms of Contracts or
commitments existing as of the date hereof, or (iii) as disclosed by Seller on Schedule 5.2(d); 
 (e) Change any of the
Cardholder Agreements; or 
 (f) Engage in any transaction or incur any obligation or liability with respect to the Acquired Assets, except
in the ordinary course consistent with past practice; 
 (g) Impair or encumber the Purchaser’s rights in the Acquired Assets or the
ability of the Purchaser to collect the Acquired Assets, other than Permitted Liens and Liens that will be removed on or before the Closing Date; or 
 (h) Agree with any Person or otherwise commit to do any of the foregoing. 
  

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 SECTION 5.3 Access and Confidentiality. 
 (a) Until the Closing Date, upon reasonable prior notice and subject to applicable Requirements of Law relating to the exchange of information, the Seller
will permit the Purchaser and its authorized representatives to have reasonable access, during regular business hours for purposes consistent with this Agreement (including reasonable access to the servicing reports, systems and procedures of the
Seller), to the personnel (including the Employees), properties and financial Books and Records, to the extent that such access does not interfere with the business of the Seller; provided, however, that the Purchaser and such
representatives comply with the confidentiality obligations contained herein and in the Confidentiality Agreement; and provided, further that the foregoing shall not (i) require the Seller to permit any inspection, or to disclose
any information, that in its reasonable judgment would result in the disclosure of any trade secrets of third parties or trade secrets of the Seller or its Affiliates unrelated to the Business or violate any obligations of the Seller to any third
party with respect to confidentiality if the Seller shall have used commercially reasonable efforts to obtain the consent of such third party to such inspection or disclosure, or (ii) require any disclosure by the Seller that could, as a result
of such disclosure, have the effect of causing the waiver of any attorney-client privilege. 
 (b) If this Agreement is terminated, the
Purchaser, at its own expense, will promptly deliver (without retaining any copies) to the Seller or (at the Seller’s option) confirm in writing to the Seller that it has completely destroyed, all information furnished to the Purchaser or its
representatives by the Seller or any of its agents, employees or representatives in connection with this Agreement, whether so obtained before or after the execution hereof, and all analyses, compilations, forecasts, studies or other documents
prepared by the Purchaser or its representatives that contain or reflect any such information. The Purchaser will cause any information so obtained to be kept confidential and will not use, or permit the use of, such information in its business or
in any other manner or for any other purpose except as contemplated by this Agreement. 
 (c) In addition to the confidentiality arrangements
contained herein, all information provided or obtained in connection with the transactions contemplated by this Agreement and by the Ancillary Agreements (including pursuant to Section 5.3(a)) will be held by each party in accordance
with the Confidentiality Agreement. In the event of a conflict or inconsistency between the terms of this Agreement and the Confidentiality Agreement, the terms of this Agreement will govern; and in the event of a conflict or inconsistency between
the terms of this Agreement and the Program Agreement, the terms of the Program Agreement will govern. 
 (d) Each party and its Affiliates
shall be entitled to specific performance of the foregoing provisions of this Section 5.3 and the provisions of the Confidentiality Agreement, in addition to any other remedies that they may have at law or in equity. 
 SECTION 5.4 Reasonable Efforts; Other Filings. (a) Subject to the terms and conditions of this Agreement, the Purchaser and the Seller will
use commercially reasonable efforts to take, or cause to be taken, all actions and will do, or cause to be done, all things necessary, proper or advisable under applicable Requirements of Law, so as to permit consummation of the Purchase and
Assumption as promptly as reasonably practicable and otherwise to enable consummation of the transactions contemplated by this Agreement and the Ancillary Agreements, and will cooperate fully to that end. 
  

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 (b) Without limiting Section 5.4(a), the Seller and the Purchaser will use commercially
reasonable efforts to prepare all documentation, to effect all filings and to obtain all permits, consents, approvals and authorizations of all Governmental Authorities necessary to consummate the transactions contemplated by this Agreement and the
Ancillary Agreements, including taking any action necessary to defend vigorously, lift, mitigate or rescind the effect of any litigation or administrative proceeding involving any Governmental Authority adversely effecting the transactions
contemplated by this Agreement or this Agreement, including promptly appealing any adverse court or administrative decision. The Seller and the Purchaser shall consult with the other with respect to the obtaining of such permits, consents, approvals
and authorizations and to keep the other apprised of the status thereof. Subject to appropriate confidentiality protections, the Seller and the Purchaser shall each furnish to the other such necessary information and reasonable assistance as such
parties may request in connection with the foregoing and shall each provide counsel for the other party with copies of all filings made by such party, and all correspondence between such party (and its advisors) with any Governmental Authority and
any other information supplied by such party and such party’s Affiliates to a Governmental Authority in connection with this Agreement and the transactions contemplated hereby. Each party shall, subject to applicable Requirements of Law, permit
counsel for the other party to review in advance any such proposed written communication to any Governmental Authority. 
 (c) Without
limiting the foregoing, the Seller and the Purchaser will use commercially reasonable efforts to obtain all consents and approvals required pursuant to Article VII in time to permit the Closing Date to occur on or before April 15,
2006 or, if the Closing Date has not occurred, as promptly thereafter after April 15, 2006 as reasonably practicable. Each of the Seller and the Purchaser further agrees, without any request or demand by the other, to complete all filings
required pursuant to Article VII no later than 10 Business Days from the execution and delivery of this Agreement and to prosecute actively all such filings and pursue the receipt of any related consent or approval. 
 (d) The Purchaser will promptly notify the Seller in writing, and the Seller will promptly notify the Purchaser in writing, upon (i) becoming aware
of any order or decree or any complaint praying for an order or decree restraining or enjoining the execution of this Agreement or the Ancillary Agreements or the consummation of the transactions contemplated hereunder and thereunder, or
(ii) receiving any notice from any Governmental Authority of its intention to (A) institute an Action to restrain or enjoin the execution of this Agreement or the Ancillary Agreements or the consummation of the transactions contemplated
hereunder and thereunder, or (B) nullify or render ineffective this Agreement or the Ancillary Agreements if such transactions are consummated. 
 (e) The filing fees under the HSR Act shall be borne by the Purchaser. 
 SECTION 5.5 Additional
Instruments. At the reasonable request of the Seller or the Purchaser at or after the Closing, the Person receiving such request will promptly execute and deliver, or cause to be executed and delivered, to the requesting party such assignments,
bills of 
  

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 sale, assumption agreements, consents and other similar instruments in addition to those specifically required by this
Agreement, in form and substance satisfactory to the requesting party, as may be reasonably necessary to carry out or implement any provision of this Agreement or any Ancillary Agreement. 
 SECTION 5.6 Non-Solicitation. The Purchaser shall not recruit, solicit for employment, or hire any employees of the Seller or its Affiliates
during the period between the date of this Agreement and the Closing Date, and thereafter in accordance with the Program Agreement. The Seller and its Affiliates shall be entitled to specific performance of such provisions in addition to any other
remedies that they may have at law or in equity. 
 SECTION 5.7 Notice to Cardholders. From and after the date of this Agreement and
until the Closing, the Purchaser and its Affiliates shall not communicate with the Cardholders (whether by mail, by telephone or otherwise) without the prior written consent of the Seller. 
 SECTION 5.8 Post-Closing Access. Upon reasonable prior notice, subject to applicable Requirements of Law relating to the exchange of information,
and to the extent such access does not interfere with the business of the Purchaser, the Purchaser will permit the Seller, its Affiliates and their representatives reasonable access (including the right to copy), without charge, during normal
business hours, to the Acquired Assets, the Books and Records conveyed hereunder, and any third party who maintains or controls any of the foregoing for the Purchaser or its Subsidiaries, all as may be reasonably requested by the Seller or any
Affiliate in order to enable the Seller to (i) perform any covenants required to be performed under this Agreement and the Ancillary Agreements after the Closing Date by them; (ii) permit the preparation of any Tax Return or other document
required to be filed with any Governmental Authority; (iii) respond to any Action by any Governmental Authority or any other Person, including any Cardholder with respect to matters that may constitute Excluded Liabilities; and (iv) permit
the processing of or response to any claim made under this Agreement or the Ancillary Agreements, and the Purchaser shall reasonably cooperate with the Seller and any such Affiliates, if requested, in connection with the foregoing; provided,
however that the foregoing shall not (a) require the Purchaser to permit any inspection, or to disclose any information, that in its reasonable judgment would result in the disclosure of any trade secrets of third parties or trade
secrets of the Purchaser or its Affiliates unrelated to the Acquired Assets or violate any obligations of the Purchaser to any third party with respect to confidentiality if the Purchaser shall have used commercially reasonable efforts to obtain the
consent of such third party to such inspection or disclosure, or (b) require any disclosure by the Purchaser that could, as a result of such disclosure, have the effect of causing the waiver of any attorney-client privilege. 
 SECTION 5.9 Cooperation in Actions. (a) The Purchaser agrees to take commercially reasonable actions necessary to make employees who are then
employed by the Purchaser and knowledgeable with respect to any matter in question available to the Seller and its representatives after the Closing Date with respect to any Action to which the Seller is or becomes a party or is otherwise involved
with regard to the Business, commenced after the Closing Date. The Purchaser agrees to use commercially reasonable efforts to provide that any such employees who terminate their employment with the Purchaser or any of its Affiliates and enter into
termination agreements or similar agreements, arrangements or understandings, will be obligated to continue to assist the Seller in the investigation, evaluation or defense of any such 
  

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 matters, whether as consultants, expert witnesses, or otherwise. The Seller will reimburse the Purchaser for reasonable
out-of-pocket expenses incurred by the Purchaser in connection with requests by the Seller pursuant to this Section 5.9 (excluding salary and fringe benefits paid to such employees and related direct or indirect overhead). 
 (b) The Seller and the Purchaser shall cooperate, to the extent reasonably requested by the other, in the handling and disposition of any Actions,
whether or not listed on the Disclosure Schedules and whether or not pending or threatened prior to the Closing, that arise out of or are related to any event or occurrence with respect to the Business prior to the Closing; provided,
however, that the party ultimately responsible for discharging such Action shall have the authority to take such actions as it deems necessary or advisable, in its sole discretion, to discharge such Action, subject, however, to the provisions
of this Agreement. 
 (c) The Seller shall be entitled to keep copies of all filings relating to Actions, correspondence, Books and Records,
the Cardholder List, the Master File, and other documentation of any kind that the Seller reasonably determines are necessary or desirable in connection with its handling and disposition of Actions. 
 SECTION 5.10 Preservation of Books and Records. The Purchaser shall preserve and keep the Cardholder List, the Master File, all Books and Records
of the Acquired Assets and all information transferred by the Seller to the Purchaser relating to the accounting, business, financial and Tax affairs of the Acquired Assets in existence on the Closing Date or that come into existence after the
Closing Date but relate to the Acquired Assets prior to the Closing Date for a period of seven years thereafter, or for any longer period (i) as may be required by any federal, state, local or foreign governmental body or agency, (ii) as
may be reasonably necessary with respect to the prosecution or defense of any audit or other Action that is then pending or threatened, or (iii) that is equivalent to the period established by any applicable statute of limitations (or any
extension or waiver thereof) with respect to matters pertaining to Taxes. For a period of four years following the seven year period specified above, if the Purchaser wishes to destroy such records, the Purchaser shall first provide the Seller the
opportunity to take possession of the same. The Purchaser shall further afford the Seller reasonable access during normal business hours and upon reasonable notice to the Books and Records in order for the Seller to perform its duties and
obligations as servicer of the Accounts. 
 SECTION 5.11 Bulk Sales Law. The Purchaser hereby acknowledges that the Seller does not
intend to comply, in connection with the transactions contemplated hereby, with the provisions of any applicable bulk sale or similar Requirement of Law. 
 ARTICLE VI 
 TAX AND EMPLOYEE MATTERS 
 SECTION 6.1 Taxes. (a) The Seller hereby represents and warrants to the Purchaser that the Seller has timely filed all Tax Returns relating
to the Business or the Acquired Assets that it was required to file on or before the date hereof (taking into account all applicable extensions), and has timely paid all Taxes shown thereon as due and owing. There are no Liens with respect to Taxes
upon any of the Acquired Assets other than with respect to Taxes not yet due and payable or that are being contested in good faith by appropriate action. 
  

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 (b) At the requesting party’s expense, the parties hereto shall furnish or cause to be furnished to
each other, promptly upon reasonable request, any information and assistance relating to the Acquired Assets or the Business as the requesting party deems reasonably necessary in connection with the filing of any Tax Returns, the preparation for any
audit by any taxing authority, the response to any inquiry by a taxing authority, the mailing or filing of any notice and the prosecution or defense of any claim, suit or proceeding relating to any Tax Returns or any other filing required to be made
with any Taxing authority or any other matter related to Taxes. The Seller and the Purchaser will cooperate with each other in the conduct of any audit or other proceeding related to Taxes involving the Acquired Assets or the Business prior to the
Closing Date. 
 (c) Notwithstanding anything in this Agreement to the contrary, all Tax Returns filed by the Seller for periods ending on or
before the Closing Date shall remain the property of the Seller. 
 (d) Notwithstanding anything in this Agreement to the contrary, all
excise, sales, use, transfer, documentary, stamp or similar Taxes that are payable or that arise as a result of the consummation of the transactions contemplated by this Agreement and the Ancillary Agreements and any recording or filing fees with
respect thereto will be borne equally by the Seller and by the Purchaser, and such Taxes shall not be considered Excluded Liabilities. 
 (e)
For all purposes of this Agreement, all property and ad valorem Tax liabilities with respect to the Acquired Assets for taxable periods that begin on or before the Closing Date and end after the Closing Date shall be allocated to the
Seller, on the one hand, and to the Purchaser, on the other hand, on a per diem basis. For Tax Returns with respect to such property and ad valorem Taxes that are due on or prior to the Closing Date, the Seller will file or cause to be filed
such Tax Returns. For Tax Returns with respect to such property and ad valorem Taxes that are due after the Closing Date, the Purchaser will file or cause to be filed such Tax Returns. The non-filing party shall promptly remit to the
party filing such property or ad valorem Tax Returns the portion of such Taxes allocated to such non-filing party. 
 (f) The
Purchaser shall, if the Seller so requests and at the Seller’s expense (for reasonable out-of-pocket costs and expenses), cooperate with the Seller to file for and obtain any Tax refund that relates to any period prior to the Closing Date.

 SECTION 6.2 Employees. All employees of the Seller and any of its Affiliates involved with the Business shall remain with the
Seller and the Purchaser shall have no obligations with respect thereto. 
  

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 ARTICLE VII 
 CONDITIONS 
 SECTION 7.1 Conditions to Each Party’s Obligations to Effect the Purchase and
Assumption. The respective obligations of the Seller and the Purchaser to effect the Purchase and Assumption are subject to the fulfillment or written waiver, at or prior to the Closing Date, of the following conditions: 
 (a) Governmental and Regulatory Approvals. (i) The HSR waiting period shall have expired or have been earlier terminated, and (ii) all
other authorizations of, filings and registrations with, and notifications to, all Governmental Authorities required to effect the transactions contemplated by this Agreement shall have been obtained or made and shall be in full force and effect and
all waiting periods required by applicable Requirements of Law in connection therewith shall have expired or been terminated except to the extent that the failure to obtain any such other approvals or authorizations would not reasonably be expected
to have a Material Adverse Effect on the Acquired Assets, the Purchaser or the Seller. 
 (b) Third Party Consents. The consents and
approvals of third Persons set forth in Schedule 4.1(c) shall have been obtained and shall be in full force and effect. 
 (c)
No Injunction or Prohibition. No Governmental Authority of competent jurisdiction shall have enacted, issued, promulgated, enforced or entered any statute, rule, regulation, by-law, judgment, decree, injunction or other order (whether
temporary, preliminary or permanent) that is in effect and prohibits or makes illegal consummation of the transactions contemplated by this Agreement or any of the Ancillary Agreements. 
 (d) Program Agreement. The Program Agreement shall have been duly executed and delivered by the other party thereto. 
 (e) Instrument of Assignment and Assumption. The Instrument of Assignment and Assumption shall have been duly executed and delivered by the other
party thereto. 
 (f) Financing Statements. The Purchaser shall have prepared and delivered and the Seller shall have executed UCC-1
financing statements to be filed by the Purchaser in the Offices of the Secretaries of State of those states necessary to perfect the sale of the Gross Receivables purchased pursuant to the terms and conditions hereof. 
 SECTION 7.2 Conditions to Obligations of the Purchaser. The obligations of the Purchaser to effect the Purchase and Assumption are subject to the
fulfillment or written waiver, at or prior to the Closing Date, of the following additional conditions: 
 (a) Performance of
Obligations. The Seller shall have performed in all material respects all of its covenants and agreements set forth in this Agreement, to the extent required at or prior to the Closing Date. 
 (b) Representations. The representations of the Seller set forth in this Agreement shall be true and correct as of (i) the date of this
Agreement, and (ii) the Closing 
  

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 Date, except that representations that by their terms speak as of the date of this Agreement or some other date shall be
true and correct only as of such date (in each case, without giving any effect to any qualifications or limitations as to materiality or Material Adverse Effect contained therein), except to the extent that any failure to be so true and correct has
not had, or would not reasonably be expected to have, a Material Adverse Effect on the Seller or the Acquired Assets. 
 (c)
Certificate. The Purchaser shall have received a certificate signed on the Seller’s behalf by an executive officer of the Seller, dated the Closing Date, to the effect that the conditions set forth in Sections 7.2(a) and 7.2(b)
have been satisfied. 
 SECTION 7.3 Conditions to Obligations of the Seller. The obligations of the Seller to effect the Purchase and
Assumption are subject to the fulfillment or waiver in writing, at or prior to the Closing Date, of the following additional conditions: 
 (a) Performance of Obligations. The Purchaser shall have performed in all material respects all of its covenants and agreements set forth in this Agreement, to the extent required at or prior to the Closing Date. 
 (b) Representations. The representations of the Purchaser set forth in this Agreement shall be true and correct as of (i) the date of this
Agreement, and (ii) the Closing Date, except that any representations that by their terms speak as of the date of this Agreement or some other date shall be true and correct only as of such date (in each case, without giving any effect to any
qualifications or limitations as to materiality or Material Adverse Effect contained therein), except to the extent that any failure to be so true and correct has not had, or would not reasonably be expected to have, a Material Adverse Effect on the
Purchaser or the Acquired Assets. 
 (c) Certificate. The Seller shall have received a certificate signed on the Purchaser’s
behalf by an executive officer of the Purchaser, dated the Closing Date, to the effect that the conditions set forth in Sections 7.3(a) and 7.3(b) have been satisfied. 
 ARTICLE VIII 
 TERMINATION 
 SECTION 8.1 Termination. This Agreement may be terminated and the transactions contemplated by this Agreement and the Ancillary Agreements may be
abandoned at any time before the Closing Date only: 
 (a) By the written consent of each of the parties hereto; 
 (b) By the Seller or the Purchaser if (i) any approval of a Governmental Authority, the lack of which would result in the failure to satisfy the
condition set forth in Section 7.1(a), has been denied by the Governmental Authority, and (ii) in each case such party has no opportunity to cure the fault giving rise to such denial, including through reapplication or appeal;

  

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 (c) By the Seller or the Purchaser if (i) any permanent injunction or Action by any Governmental
Authority of competent jurisdiction prohibiting consummation of the transactions contemplated by this Agreement or the Ancillary Agreements becomes final and nonappealable, (ii) any law or regulation makes consummation of the transactions
contemplated by this Agreement or the Ancillary Agreements illegal or otherwise prohibited, or (iii) consummation of the transactions contemplated by this Agreement or the Ancillary Agreements would violate any nonappealable final order, decree
or judgment of any Governmental Authority having competent jurisdiction; 
 (d) By the Seller or the Purchaser if the transactions
contemplated by this Agreement and the Ancillary Agreements are not consummated by June 1, 2006; provided, however, that neither the Seller nor the Purchaser may terminate this Agreement pursuant to this Section 8.1(d)
if its (or one of its Affiliate’s) breach of any representation, warranty or covenant contained herein has been the cause of or resulted in the failure to consummate such transactions by such date; provided, however, that if the
failure to consummate the transactions contemplated hereby by such date is caused by a delay in satisfying the conditions referenced in Section 7.1(a), no party shall have the right to terminate this Agreement pursuant to this
Section 8.1(d) until the date that is three months after such date; or 
 (e) By the Seller or the Purchaser in the event of a
breach or default in the performance by the other party of any representation, warranty, covenant or agreement hereunder, which breach or default (i) would, individually or in the aggregate with all other uncured breaches and defaults of such
other party, constitute grounds for the conditions set forth in Section 7.2(a) or (b) or Section 7.3(a) or (b), as the case may be, not to be satisfied at the Closing Date, and (ii) has not been, or cannot be, cured within
30 days after written notice, describing such breach or default in reasonable detail, is given by the terminating party to the breaching or defaulting party. 
 SECTION 8.2 Effect of Termination. If this Agreement is terminated in accordance with the terms of this Agreement, no party hereto (or any of its Affiliates, directors, officers, representatives or agents) will
have any Liability or further obligation to any other party to this Agreement, except for (i) obligations that survive termination as expressly provided for in Section 9.1, Section 5.3 and Article X, and
(ii) liabilities or obligations arising out of or related to any knowing, willful or intentional breach of this Agreement prior to such termination. 
 ARTICLE IX 
 SURVIVAL; INDEMNIFICATION 
 SECTION 9.1 Survival. (a) The representations or warranties of the parties in this Agreement will survive the Closing until the date that is
12 months after the Closing; provided, however, that the representations and warranties set forth in the following provisions will survive until the expiration of the applicable statute of limitations (including any extensions
thereof): Section 4.1(g), Section 4.1(l)(i), and Section 6.1(a). 
 (b) No agreement or covenant in this
Agreement will survive the Closing Date, other than the covenants in any agreement or covenant that by their terms survive for a 
  

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 period after the Closing; provided, however, that the agreements and covenants set forth in the following
provisions will survive until the expiration of the applicable statute of limitations (including any extensions thereof): Sections 6.1(b)-(f), Section 8.2, and this Article IX. In addition, the last sentence of
Section 2.5(a) will survive until the expiration of the applicable statute of limitations (including any extensions thereof). 
 (c) No claim for indemnification pursuant to this Article IX for breach of any representation, warranty or covenant may be brought after the date on which such representation, warranty or covenant no longer survives; provided,
however, that if any reasonably specific indemnification claim is validly made prior to the termination of the applicable survival period, the indemnifying party’s obligation hereunder with respect to such indemnification claim shall
survive until such claim has been finally resolved. 
 (d) If a Purchaser employee listed on Schedule 1.1 determines prior to Closing
that the Seller is in breach of any of the Seller’s representations or warranties contained herein, or of any of the Seller’s covenants contained herein that are to be performed by the Seller at or prior to Closing, and that such breach
would have a Material Adverse Effect on the Acquired Assets, the Purchaser shall notify the Seller of the same as promptly as reasonably practicable. However, no such notice shall constitute a waiver of any claim by the Purchaser, and if the Seller
has Knowledge of such breach, Purchaser shall be relieved of its notice obligation under this Section. 
 SECTION 9.2 Indemnification by
the Seller. The Seller agrees to indemnify the Purchaser and each of its Affiliates and their respective officers, directors and employers (collectively, the “Purchaser Indemnified Parties”) against, and agrees to hold each of
them harmless from, any and all damage, loss, liability, expense, judgment, settlement, claim, cost or penalty (including reasonable expenses of investigation and reasonable attorneys’ fees and expenses in connection with any Action and
enforcement of any rights of indemnification against any Indemnifying Party or with respect to any appeal) (collectively, “Losses”) incurred or suffered by the Purchaser Indemnified Parties arising out of or resulting from, without
duplication, (i) any breach of a representation or warranty of the Seller contained in this Agreement or in any certificate delivered by the Seller pursuant to this Agreement, (ii) any breach of an agreement or covenant made by the Seller
in this Agreement, (iii) any failure of the Seller or any of its Affiliates to comply with any applicable “bulk sales” or similar Requirement of Law in connection with the consummation of the transactions contemplated hereby, or
(iv) any Excluded Liability. Notwithstanding the foregoing, the Purchaser Indemnified Parties will not be entitled to indemnity pursuant to clause (i) of this Section 9.2: (x) in respect of any individual Action or
individual claim, fact or occurrence or any series of related Actions, claims, facts or occurrences (including any class action), until Losses in respect of such individual or related Actions, claims, facts or occurrences are greater than the De
Minimis Claim Amount; or (y) for any Losses, until the aggregate amount of all such Losses incurred or suffered by the Purchaser Indemnified Parties exceeds the Deductible Amount, in which case the Purchaser Indemnified Parties be entitled to
indemnification for the full amount of such Losses in excess of such threshold; provided, however, that in no event will the Purchaser Indemnified Parties be entitled to indemnity for Losses pursuant to clause (i) of this
Section 9.2 to the extent that the amount of Losses, in the aggregate, incurred or suffered by the Purchaser Indemnified Parties exceeds the Indemnity Cap Amount, except with respect to Losses arising from the breach of
Section 4.1(g), Section 4.1(l)(i), or Section 6.1. 
  

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 SECTION 9.3 Indemnification by the Purchaser. The Purchaser agrees to indemnify the Seller and
each of its Affiliates and their respective officers, directors and employers (collectively, the “Seller Indemnified Parties”) against, and agree to hold each of them harmless from, any and all Losses incurred or suffered by the
Seller Indemnified Parties arising out of or resulting from without duplication, (i) any breach of a representation or warranty of the Purchaser contained in this Agreement or in any certificate delivered by the Purchaser pursuant to this
Agreement, (ii) any breach of an agreement or covenant made by the Purchaser in this Agreement, (iii) any Assumed Liability, or (iv) the operation of the Acquired Assets from and after the Closing. Notwithstanding the foregoing, the
Seller Indemnified Parties will not be entitled to indemnity pursuant to clause (i) of this Section 9.3: (x) in respect of any individual Action or individual claim, fact or occurrence or any series of related Actions, claims,
facts or occurrences (including any class action), until Losses in respect of such individual or related Actions, claims, facts or occurrences are greater than the De Minimis Claim Amount; or (y) for any Losses, until the aggregate amount of
all such Losses incurred or suffered by the Seller Indemnified Parties exceeds the Deductible Amount, in which case the Seller Indemnified Parties shall be entitled to indemnification for the full amount of Losses in excess of such threshold;
provided, however, that in no event will the Seller Indemnified Parties be entitled to indemnity for Losses pursuant to clause (i) of this Section 9.3 to the extent that the amount of such Losses, in the aggregate,
incurred or suffered by the Seller Indemnified Parties exceeds the Indemnity Cap Amount, except with respect to Losses arising from the breach of Section 6.1. 
 SECTION 9.4 Notice, Settlements and Other Matters. (a) A party seeking indemnification pursuant to Section 9.2 or Section 9.3 (the “Indemnified Party”) must give
prompt written notice to the party from whom such indemnification is sought (the “Indemnifying Party”) of the assertion or commencement of any Action, in respect of which indemnity may be sought hereunder specifying in reasonable
detail the individual items of such Losses including the amount, the date each such item was paid, or properly accrued or arose, and the specific details of the breach of representation, warranty or covenant or other claim or matter to which such
item is related. Notwithstanding the foregoing, the failure of the Indemnified Party to furnish the written notice referred to in the preceding sentence in a prompt manner shall not effect its right to indemnification to the extent the Indemnifying
Party’s right to defend the matter is not materially prejudiced by such failure to give prompt notice. In the event that any third party Action is made against the Indemnified Party and the Indemnified Party notifies the Indemnifying Party of
the commencement thereof, the Indemnifying Party may elect at any time to negotiate a settlement or a compromise of such Action or to defend such Action, in each case at its sole cost and expense (subject to the limitations set forth in
Section 9.2, if the Seller is the Indemnifying Party, or Section 9.3, if the Purchaser is the Indemnifying Party) and with its own counsel. If, within 30 days of receipt from an Indemnified Party of the notice referred to
above the Indemnifying Party (i) advises the Indemnified Party in writing that it will not elect to defend, settle or otherwise compromise or pay such Action, or (ii) fails to make such an election in writing within such time-frame, the
Indemnified Party may (subject to the Indemnifying Party’s continuing right of election in the preceding sentence), at its option, defend, settle, compromise or pay such Action; provided, however, that any such settlement or
compromise shall be permitted hereunder only with the written consent of the Indemnifying Party. Unless 
  

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 and until the Indemnifying Party makes an election in accordance with this Section to defend, settle, compromise or pay
such Action, all of the Indemnified Party’s reasonable costs arising out of the defense, settlement, compromise or payment thereof will be Losses subject to indemnification by the Indemnifying Party (subject to the provisions and limitations of
Section 9.2 and Section 9.3, as applicable). Each Indemnified Party shall make available to the Indemnifying Party all information reasonably available to such Indemnified Party relating to such Action. If the Indemnifying
Party elects to defend any such Action, the Indemnified Party may participate in such defense with counsel of its choice at the Indemnified Party’s sole cost and expense. If the Indemnifying Party elects to assume the defense of (or otherwise
elects to negotiate, settle or compromise) any Action as described above, the Indemnified Party will reimburse the Indemnifying Party for all costs and expenses incurred by the Indemnifying Party in connection with such defense to the extent such
costs and expenses do not total an amount indemnifiable pursuant to Section 9.2 or Section 9.3, as applicable. 
 (b)
The Indemnified Party will have the right to reject any settlement approved by the Indemnifying Party if the Indemnified Party is not fully and unconditionally released from any Liability resulting from that Action. The Indemnified Party will not
have the right to settle any third party Action without the written consent of the Indemnifying Party if the Indemnifying Party is contesting such Action in good faith and has assumed the defense of such Action from the Indemnified Party or if the
period for determining whether or not to assume the defense of such Action from the Indemnified Party has not expired. 
 (c) In calculating
the amount of any Losses of an Indemnified Party under this Article IX, there will be subtracted from such amount the amount of any (i) insurance proceeds (net of Taxes actually incurred), and other than proceeds received through
self-insurance or insurance provided by Affiliates of such Indemnified Party) actually received by the Indemnified Party with respect to such Losses, and (ii) third-party payments actually received by the Indemnified Party with respect to such
Losses. In the event that the Indemnifying Party reimburses the Indemnified Party for any Losses prior to the occurrence of any events contemplated by clauses (i) or (ii) of this Section 9.4(c), the Indemnified Party will remit
to the Indemnifying Party any such amounts that the Indemnified Party subsequently receives or realizes with respect to such Losses. Upon the payment in full of any claim hereunder, the Indemnifying Party will be subrogated to the rights of the
Indemnified Party against any Person with respect to the subject matter of such claim and any amount paid by the Indemnifying Party under this Article IX. The Indemnified Party shall cooperate with the Indemnifying Party in the assertion by
the Indemnifying Party of any such claim against such other Persons. 
 (d) Without limitation of their respective rights and obligations as
set forth elsewhere in this Article IX, and subject to the procedures for indemnification claims set forth in this Article IX, the Indemnified Party will act in good faith, will use commercially reasonable efforts to mitigate any
Losses, will use similar discretion in the use of personnel and the incurring of expenses as the Indemnifying Party would use if they were engaged and acting entirely at their own cost and for their own account, and will consult regularly with the
Indemnifying Party regarding the conduct of any Actions or the taking of any action for which indemnification may be sought. In the event that an Indemnified Party shall fail to make such commercially reasonable efforts to mitigate any such Losses,
then notwithstanding anything else to the contrary contained herein, neither the Seller nor the Purchaser, as the case may be, shall be required to indemnify any Indemnified Party for that portion of any Losses that could reasonably be expected to
have been avoided if the Indemnified Party had made such efforts. 
  

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 (e) The Seller and the Purchaser agree to treat and report all indemnity payments as additional
adjustments to the amount of the total consideration paid for the Acquired Assets for all Tax purposes unless required by applicable Requirements of Law. 
 (f) For purposes of this Article IX, all representations and warranties continued in this Agreement shall be read to exclude any materiality or “Material Adverse Effect” qualifiers appearing therein.

 (g) Notwithstanding anything to the contrary contained herein, the indemnification provided for herein shall not cover, and in no event
shall any party hereto be liable for, any indirect damages, including consequential, incidental, exemplary or special damages, or punitive damages. 
 (h) After the Closing Date, other than as provided in Section 2.4 and except with respect to claims based on fraud and/or claims seeking equitable remedies, this Article IX will constitute the Seller’s and the
Purchaser’s exclusive remedy for any of the matters addressed herein or other claim arising out of or relating to this Agreement. 
 ARTICLE X 
 MISCELLANEOUS 
 SECTION 10.1 Notices. All notices and other communications by the Purchaser or the Seller hereunder will be in writing to the other party and will be deemed to have been duly given when delivered in person,
when received via facsimile or overnight courier, or when posted by United States registered or certified mail, with postage prepaid, addressed as follows: 
 if to the Purchaser to: 
 Chase Bank USA, N.A. 
 3 Christina Center 
 201 North Walnut Street

 Wilmington, DE 19801 
 Attention: Chief Executive Officer 
 Facsimile: (212) 230-8881 
 with a copy to: 
 Chase Bank USA, N.A.

 3 Christina Center 
 201 North
Walnut Street 
 Wilmington, DE 19801 
 Attention: General Counsel Chase Card Services 
 Facsimile: (212) 230-8881 
  

 32 

 if to the Seller to: 
 Kohl’s Department Stores, Inc. 
 N56 W17000 Ridgewood Drive 
 Menomonee Falls, WI 53051 
 Attention: Chief
Operating Officer 
 Facsimile: (262) 703-6796 
 with a copy to: 
 Kohl’s Department Stores, Inc. 
 N56 W17000 Ridgewood Drive 
 Menomonee Falls,
WI 53051 
 Attention: General Counsel 
 Facsimile: (262) 703-7274 
 Notices and other communications may also be sent to such other address or addresses as the Purchaser or the
Seller may from time to time designate by notice as provided herein, except that notices of change of address will be effective only upon receipt. 
 SECTION 10.2 Expenses. (a) Except as otherwise provided herein, all legal and any other third-party costs and expenses incurred in connection herewith and the transactions contemplated by this Agreement and the Ancillary
Agreements will be paid by the party incurring such expenses, except that all fees or other amounts payable to any Governmental Authority in connection with any consent or approval required by Article VII shall be paid by the Purchaser.

 (b) Collection efforts and related expenses on all Accounts made or incurred by the Seller prior to the Closing Date will be the
responsibility of the Seller, and all monies collected thereon prior to the Closing Date (and all monies collected on Written-Off Accounts prior to the Closing Date) shall be retained by the Seller. 
 SECTION 10.3 Successors and Assigns. This Agreement will be binding upon and will inure to the benefit of the parties and their respective
successors and permitted assigns. This Agreement and the rights and obligations hereunder may not be assigned by any party to any Person without the prior written consent of the other party hereto, and any purported assignment without such consent
shall be void. 
 SECTION 10.4 Entire Agreement; Amendment; Waiver. This Agreement and the Ancillary Agreements, including the
Exhibits and Schedules hereto and thereto, embody the entire agreement of the parties hereto with respect to the subject matter hereof and supersede all prior agreements with respect thereto, other than the Confidentiality Agreement. No
representation, warranty, inducement, promise, understanding or condition not set forth in this Agreement (or the other documents referred to in the preceding sentence) has been made or relied on by any party in entering into this Agreement. This
Agreement may be amended, and any provision hereof waived, but only in a writing signed by the parties hereto. 
  

 33 

 SECTION 10.5 Counterparts. This Agreement may be executed in two or more counterparts any of which
may be delivered by facsimile transmission and all of which will together constitute one and the same instrument. 
 SECTION 10.6
Governing Law. This Agreement and all rights and obligations hereunder, including matters of construction, validity and performance, shall be governed by and construed in accordance with the laws of the State of New York, without regard to
internal principles of conflict of laws, and applicable federal law. 
 SECTION 10.7 Waiver of Jury Trial and Venue. The parties
hereto waive all right to trial by jury in any action or proceeding to enforce or defend any rights under this Agreement. Any lawsuit brought by either party against the other shall be brought in the United States District Court for the Eastern
District of Wisconsin in Milwaukee, Wisconsin. 
 SECTION 10.8 Severability. In case any one or more of the provisions contained
herein is found by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect under any law, the validity, legality and enforceability of the remaining provisions contained herein will not in any way be effected or
impaired thereby. 
 SECTION 10.9 Public Announcement. Except for any notice that is required by law or regulation, each of the
Purchaser and the Seller agrees that it will not issue a press release or make any other public statement with respect to the transactions contemplated by this Agreement or the Ancillary Agreements without the prior written consent of the other
party, which consent will not be unreasonably withheld or delayed. Each of the Purchaser and the Seller, agrees to notify and consult with the other at least one Business Day in advance of filing any notice required by law or regulation. 

SECTION 10.10 Third-Party Beneficiaries. Nothing in this Agreement, expressed or implied, will confer on any Person, other than the parties
hereto and their respective successors and permitted assign, any rights, remedies, obligations or liabilities; provided that the provisions of Article IX will inure to the benefit of the Indemnified Parties. 
 SECTION 10.11 Credit Bureau Reporting. Upon the Closing, with the cooperation of the Purchaser, the Seller will notify the three major credit
reporting bureaus that the designation on all Accounts purchased hereunder shall reflect that such Accounts have been transferred. 
 SECTION
10.12 Further Assurances. Each of the parties hereto shall, whenever and as often as reasonably requested to do so by the other party hereto, execute, acknowledge and deliver any and all such other and further acts, assignments, endorsements,
transfers and any instruments of further assurance, approvals and consents as are necessary or proper in order to complete, ensure and perfect (i) the Purchase and Assumption contemplated hereby, and (ii) the consummation of the other
transactions contemplated hereby. 
 [Signature Page Follows] 
  

 34 

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

			
	KOHL’S DEPARTMENT STORES, INC.
		
	By:	 	 /s/ Arlene Meier

	Name:	 	 Arlene Meier

	Title:	 	 Chief Operating Officer

	
	 CHASE BANK USA, NATIONAL
 ASSOCIATION

		
	By:	 	 /s/ David Hoyt

	Name:	 	 David Hoyt

	Title:	 	 Senior Vice President

  
 Signature Page to
Purchase and Sale Agreement

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