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HomeMy WebLinkAbout11-6862IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA AMERICAN EXPRESS BANK,FSB 4315 SOUTH 2700 WEST SALT LAKE CITY, UT 84184 PLAINTIFF NO. I I - (0840A Civ 1 I Term VS. MICHAEL KLINE 3000 LINCOLN ST CAMP HILL PA 17011 DEFENDANT(S) NOTICE TO DEFEND C-) c o ter.. op "??? --- --; Ca C)m You have been sued in Court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice is served, by entering a written appearance, personally of by attorney, and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so, the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO' TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Cumberland Co. Bar Association 32 South Bedford Street Carlisle, PA 17013 800/990-9108 ( Ds q,2. 00 P,0 HT7-4 C? 1(008 go aew1/3 FILE NO. 09000512 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA AMERICAN EXPRESS BANK,FSB NO. 4315 SOUTH 2700 WEST SALT LAKE CITY, UT 84184 PLAINTIFF vs. MICHAEL KLINE 3000 LINCOLN ST CAMP HILL PA 17011 DEFENDANT(S) NOTICIA USTED HA SIDO DEMANDADO/A EN LA CORTE. Si usted desea defender conta la demanda puestas en las siguientes paginas, usted tienen que tomar accion dentro veinte (20) dias despues que esta Demanda y Aviso es servido, con entrando por escrito una aparencia personalmente o por un abogado y archivando por escrito con la Corte sus defensas o objeciones a las demandas puestas en esta contra usted. Usted es advertido que si falla de hacerlo el caso puede proceder sin usted y un j uzgamiento puede ser entrado conta usted por la Corte sin mas aviso por cualquier dinero reclamado en la Demanda o por cualquier otro reclamo o alivio solicitado por Demandante. Usted puede perder dinero o propiedad o otros derechos importante para usted. USTED DEBE LLEVAR ESTE PAPEL A SU ABOGADO ENSEGUIDA. SI USTED NO TIENE UN ABOGADO, VAYA O LLAME POR TELEFONO LA OFICINA FIJADA AQUI ABAJO. ESTA OFICINA PUEDE PROVEERE CON INFORMACION DE COMO CONSEGUIR UN ABOGADO. SI USTED NO PUEDE PAGARLE A UN ABOGADO, ESTA OFICINA PUEDE PROVEERE INFORMACION ACERCA AGENCIAS. QUE PUEDAN OFRECER SERVICIOS LEGAL A PERSONAS ELIGIBLE AQ UN HONORARIO REDUCIDO O GRATIS. Cumberland Co. Bar Association 32 South Bedford Street Carlisle, PA 17013 800/990-9108 FILE NO. 09000512 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA AMERICAN EXPRESS BANK,FSB NO. 4315 SOUTH 2700 WEST SALT LAKE CITY, UT 84184 PLAINTIFF VS. MICHAEL KLINE 3000 LINCOLN ST CAMP HILL PA 17011 DEFENDANT(S) COMPLAINT 1. The Plaintiff is AMERICAN EXPRESS BANK,FSB, (hereafter "American Express") with a place of business located at 4315 SOUTH 2700 WEST, SALT LAKE CITY, UT 84184. 2. The Defendant, MICHAEL KLINE, is an adult individual, residing at 3000 LINCOLN ST, CAMP HILL PA 17011, CUMBERLAND County. 3. At all relevant times, American Express was, and is, a bank chartered under the laws of the State of Utah. 4. At all relevant times, Defendant was the holder of an American Express card (the "Card") that enabled Defendant to charge items to an American Express credit card Account (Account Number XXXXXXXXXX21005) (the "Account"). 5. At all relevant times, :Defendant was the basic cardmember on the Account, and was responsible for paying all amounts charged to the Account. 6. The Cardmember Agreement between Defendant and American Express (the "Agreement") was provided to Defendant during the time period in which the Card was utilized and maintained by Defendant, and therefore, Defendant assented to the terms and conditions contained therein, and a true and correct copy of the Agreement is attached hereto, and incorporated herein, as Exhibit "A". 7. By accepting and using the Card, Defendant agreed to all of the terms and conditions set forth in the Agreement, including the following: a. Defendant agreed that, as the basic cardmember, Defendant is liable for all amounts charged to the Account. FILE NO. 09000512 b. Defendant agreed to make the "Minimum Payment" (as that term is used in the Agreement) due each month, for charges on the account, by the payment due date indicated on the monthly billing statements mailed by or on behalf of American Express. A true and correct copy of a statement(s) reflecting the balance due is attached hereto, incorporated herein and marked Exhibit "B". c. Defendant agreed that if the payment was not made by the payment due date indicated on the monthly billing statements, American Express may assess additional fees per the terms of the agreement. d. Defendant agreed that in the event of default, Defendant would pay all reasonable costs, including reasonable attorney's fees, incurred by American Express in collecting the balance due, including finance charges and delinquency fees, and in protecting itself from any harm it may suffer as a result of the default. 8. Defendant used the Card to charge various items to the Account. 9. Plaintiff issued and sent to Defendant the Account Statements, which set forth in detail all items charged to the Account, and the total amount due and owing by Defendant to Plaintiff. Count 1 - Breach of Contract 10. American Express incorporates by reference the averments of paragraphs 1 through 9. 11. Defendant failed to make the minimum payment specified on the statements. 12. By reason of the foregoing, Defendant breached the Agreement with American Express. 13. As a result of the breach, Defendant is personally liable to American Express for the sum of $7,226.92. See Exhibit "B" as previously identified and incorporated herein. 14. Despite due demand, Defendant has failed and refused to pay American Express any portion of the amount due and owing. 15. As a result of Defendant's failure to pay the amount that Defendant owes, American Express referred its claim to outside attorneys for collection, and is entitled to collect reasonable attorney's fees from Defendant. 16. By reason of the foregoing, American Express is entitled to judgment against Defendant for breach of contract in the sum of $7,226.92, plus reasonable attorney's fees, costs and prejudgment interest. :FILE NO. 09000512 WHEREFORE, American Express demands judgment against Defendant on Count 1 in the sum of $7,226.92, plus reasonable attorney's fees, costs and prejudgment interest. Count 2 - Account Stated (in the alternative to Counts 1 and 3) 17. American Express incorporates by reference the averments of paragraphs 1 through 16. 18. Defendant used the Card to charge various items to the Account for which payment was never made. American Express kept accurate records of all debits and credits to the Account. 19. American Express mailed to Defendant monthly billing statements for the Account, which accurately stated the previous balance, and the debits and credits to the Account for the prior billing period. 20. Defendant had, for many months, made payments on account of the billing statements or retained the statements without payment. 21. Defendant's actions as set forth above constituted an account stated between the parties for the sum of $7,226.92, which sum reflects the balance, less credits, if any, which were applied prior to the date of this complaint. WHEREFORE, American Express demands judgment against Defendant on Count 2 in the sum of $7,226.92, plus prejudgment interest and the costs of this action. Count 3 - Unjust Enrichment (in the alternative to Counts 1 and 2) 22. American Express incorporates by reference the foregoing paragraphs 1 through 21. 23. As a result of the foregoing, Defendant received the benefit of American Express' extension of credit in the amount of $7,226.92 without paying for same. 24. Defendant was aware of, apprehended and appreciated American Express' provision of credit by reason of Defendant having made payments on account of the Account statements received on and after Defendant opened the Account. 25. The reasonable value of the credit American Express provided Defendant is the sum of $7,226.92. 26. American Express is entitled to prejudgment interest on the outstanding balance from the statement due date. FILE NO. 09000512 27. American Express believes and avers if the relief requested herein is not granted, Defendant will be unjustly enriched at American Express' expense. WHEREFORE, American Express demands judgment against Defendant on Count 3 in an amount to be determined at trial. Respectfully submitted, Amy F-Doyle Esqui PA Supreme Court I 87062 Doyle Adler, LLC 11 East Market St., Suite 102 York, PA 17401 717-885-0718 877-202-9420 206-203-3872 (facsimile) Counsel for Plaintiff FILE NO. 09000512 VERIFICATION I, PAUL LAVARTA ASSISTANT CUSTODIAN OF RLCORa one of the Assistant Custodian of Records for American Express the within Plaintiff, verify that the statements of fact made in the foregoing Complaint are true and correct to the best of my knowledge, information and belief. I understand that this verification is made subject to the penalties of 18 Pa. C. S. Section 4904, relating to unworn falsifications authorities. Date: -713 /it rican Express L LAVARTA CUSTODIAN OF RECORDS FILE NO. 09000512 CD26157_FDR899931_p12.gxp:FDR815199 9;27/07 1:29 PM Page FDR 899931 „- u, n,oer:carr rxpress c.arumemnersnip This document and the accompanying supplement(s) constitute your Agreement. Please read and keep this Agreement. Abide by its terms. When you keep, sign or use the Card issued to you (including any renewal or replacement Cards), or you use the account associated with this Agreement (your "Account"), you agree to the terms of this Agreement. The words ",you," "your" and "yours" mean the person who applied for the Account and the person to whom we address billing statements, as well as any person who agrees to be liable on the Account. The "Basic Cardmember" is the person who opened the Account You may request that we issue a Card ;o another person who shares your Costco membership, and if we do, that person will be called an "Additional Cardmember' on your Account. We may cancel such Additional Cardmember's use of your Account if he or she no longer shares your Costco membership. The term "Card" refers to the American Express* Card issued to you, all other Cards issued on your Account, and any other device (such as Account numbers and convenience checks) with which you may access your Account. "We;' "our" and "us" refer to American Express Bank, FSB, the issuer of your Account. Using the Card You may use the Card to obtain goods and services from any person who accepts the Card ("Purchase(s)"). You may also use the Card to obtain loans (Cash Advance(s)") through various means we may make avail-able (e.g., ATM machines) up to the applicable limits on your Account. At our discreticm, we may permit you to transfer balances from other accounts to your Account ("Balance Transfer(s)"). At our discretion, we may issue convenience checks that you can use to access your Account. Each convenience check may be used only by you. You may not use convenience checks to pay any amount you owe under this Agreement or to pay any other account you have with us or our affiliates. Transactions you make in response to promotional offers from us will be subject to the terms of the promotion and this Agreement. All amounts charged to your Account, including Purchases, Cash Advances, Balance Transfers, convenience checks, annual fee(s), if any, any amounts guaranteed by use of the Card, other fees, and any Finance Charges, are "Charges: 'A convenience check that we identify as having been made payable to cash, to you, or to a batik, brokerage or similar asset account will be treated as a Cash Advance. Any other convenience check and/or a Balance Transfer will be treated as a Purchase, except as otherwise noted If you make a Purchase or a Balance Transfer, or use a convenience check, that is governed by a promotional offer from its, the Charge will be included in a Promotional Balance, unless we notify you otherwise. You agree to use the Account only for legitimate purchases ofgoods and services for personal, family or household purposes. You agree not to let any person use a Card except a Cardmember whose name is on it. You agree to notify us if the Card is lost or stolen, or you suspect that it is being used without your permission. You agree to use the Account only for Purchases, Cash Advances, or Balance Transfers that are lawiiil and are permitted under this Agreement. We may issue you renewal or replacement Cards before a previously issued Card expires. If You or an Additional Cardmember authorize a third party to bill Charges on a recurring basis to your Account ("Recurring Charge(s)"), we may (but are not required to) provide such third party with your current Account status, Card number and/or expiration date to permit that third party to continue billing your Account. We may take such steps even if your account number changes or if we issue a renewal or replacement Card to you or air Additional Cardmember. To withdraw authorization for a Recurring Charge, you must notify the third party. Annual Fee There is no annual fee for this Account. Rebate Each Eligible Purchase shalt qualify for a Rebate of 1, 2, or 3 percent, as follows: 3% at restaurants, 2% for travel purchases from airline, lodging, car rental, cruise line, travel agency and. tour operators; or 1% on all other Eligible Purchases posted to your account. The Rebate percentage applied to a Purchase is dependent upon the merchants submitting the charge under the appropriate merchant category code "Eligible Purchases' include purchases of goods or services, which purchases have not been returned or otherwise rescinded, and are not subject to a credit; it does NOT include fees, Finance Charges, Cash Advances (including the use of checks, line activators, automated teller machines, or other means of accessing your Account), Balance Transfers, or adjustments to your Account or the purchase of American Express Travelers Cheques and American Express Gift Cheques. Your Rebate is awarded annually in the form of an in-store coupon redeemable for cash or merchandise at any (1.S. Costco Warehouse. The Rebate coupon will be issued with February billing statements. Coupons are non-transferable and are issued to you as part of a reward program only and have no value independent of the program. To receive the Rebate for a "Rebate Period" (billing periods from February through January of the following year), your Account must be active (not cancelled) in the month the Rebate coupon is scheduled to be issued and you must present the coupon at a U.S. Costco Warehouse prior to the expiration date stated on the coupon. You will not be eligible to receive a Rebate for any Rebate Period in which you fail to make a timely Minimum Payment for three consecutive billing periods. Each time you fail to make a timely Minimum Payment for two consecutive billing periods, the amount of the Purchases appearing on the billing statement for the first of tliese two periods will not be included in your Annual Purchases to calculate the Rebate. Annual Rebate reward coupons of less than $1 will be forfeited. Credit Line A portion of your credit line may be available to you for Cash Advances up to your Cash Advance limit. We may, at any time and in our sole discretion, increase and/or decrease your credit line and Cash Advance limit. We may limit Charges at an automated teller machine ("ATM") to the lesser of (i) a total of $1,000 in any seven-day period, or (ii) the remaining amount of the Cash Advance limit on your Account; and we may impose additional limits at our sole discretion (in addition to any limits imposed by the ATM's owner). Your billing statements will show your credit line and Cash Advance limit and the unused portions of such line and limit as of the statement date. You agree to manage your Account so that your balance for Cash Advances (including fees and Finance Charges) will not exceed the Cash Advance limit and your overall balance (including fees and Finance Charges) will not exceed your credit line. You agree to pay us, immediately upon request, the amount of any balance on your Account in excess of any applicable credit line or limit. We reserve the right to decline any attempted Charge, even if the Charge would not cause you to exceed your credit line or limit. We are not responsible for any losses or other consequences if a transaction on your Account is not approved for any reason, even if you have sufficient credit available. Except as otherwise required by applicable law, we will not be responsible if any merchant refuses to honor the Card or for any other problem you may have with a merchant. Promise to Pay You promise to pay all Charges, including Charges incurred by Additional Cardmembers, on your Account. This promise includes any Charge for which you or an Additional Cardmember indicated an intent to incur the Charge, even if you or the Additional Cardmember have not signed a charge form or presented the Card. You also promise to pay any Charge incurred by anyone that you or an Additional Cardinember let use the Card, even though you have agreed not to let anyone else use the Card. Status of and Responsibility for Additional Cardmembers Additional Cardmembers do not have accounts with us. Instead, they are authorized users on your Account, and the Cards issued to them may be cancelled by you or us at any time. You must notify us to revoke an Additional Cardmember's permission to use your Account. You are responsible under this Agreement for all use of your Account CD 26157 (11107) by the Additional Cardmembers, and by anyone else you or an Additional Cardmember lets use the Card, and the Charges they incur will be billed to you. You have this responsibility even if you did not intend for an Additional Cardmember, or other person, to use the Card ferr any transactions. An Additional Cardmember is not liable for Charges incurred by the Basic Cardmember or by other Additional Cardmembers. However, by each use of the Additional Card to incur Charges, the Additional Cardmember indicates his or her agreement to pay us for the Charge if you fail to or refuse to pay it, and we may, at our discretion, pursue Additional Cardmembers for payment of Charges they incur or authorize. You authorize us to provide Account information to Additional Cardmembers and to discuss the Account with them. You agree to notify each Additional Cardmember, at the time he or she becomes an Additional Cardmember, that we may receive, record, exchange and use information about hhn or her in the same manner we do with information about you, as described below in the Consumer Reports, Telephone Monitoring/Recording, and Suspension/ Cancellation sections of this Agreement. You agree to notify each Additional Cardmember that Additional Cardmembers are subject to all applicable provisions of this Agreement. Billing Statements You must notify us immediately of any change in the mailing or a-mail address to which we send billing statements or notices that a billing statement has been posted ("Billing Address"). If you wish a Billing Address change to apply to more than one account you maintain with us, you must tell us. You agree that we may also update your Billing Address if we receive information that your Billing Address has changed or is incorrect. The "New Balance' appears on your billing statement. To determine the New Balance, we begin with the outstanding balance on your Account at the beginning of each billing period, called the "Previous Balance" on the billing statement. We add any Charges, subtract any credits or payments credited as of that billing period, and make other applicable adjustments. Minimum Amount Due Each billing statement will reflect a Minimum Amount Due. Payment is due by the time and date shown and in the manner prescribed on the statement. The Minimum Amount Due will not exceed the New Balance You may pay more than the Minimum Amount Due, up to the entire outstanding balance, at any time. To calculate the Minimum Amount Due, we add together the following amounts, round the result to the nearest whole dollar, and then add any amount past due: (I) the greatest of: (a) 2% of the New Balance (excluding from the New Balance any over-funit amount and any late fees or over limit fees); (b) the lesser of: (i) current billed Finance Charges plus I%ofthe New Balance (excluding from the New Balance any over-limit amount, any late fees or over- limit fees and finance charges), or (it) 4% of the New Balance, or (c) $15; (2) any over-limit fees added during the billing period; (3) any late fees added during the billing period; and (4) 1/24th of any over-limit amount (the part of your New Balance in excess of your credit line). Adjusted Minimum Amount Due Summary: If you consistently pay more than the Minimum Amount Due outlined above, we may calculate your minimum payment without any late fees, over-limit amount or the additional 1 % of the balance referenced in (1)(b)(i). tf we do this, and finance charges are more than 2% of the balance, we may add $15 to your minimum payment. For information about how this works, read the detailed description below. Detailed Description: We may adjust the outlined calculation above by removing the late fees in (3). the over- limit amount in (4) and "plus 1% of die New Balance" in (I)(b)(i). In the adjusted calculation, we will exclude only the CD26157_FDR899931_p12.gxp:FDR815199 9127/07 1:29 PM Page over-limit fees from the New Balance in (1)(a). After the adjustment, if (1) is equal to the current billed Finance Charges, we will increase your Minimum Amount Due by $15. We will apply the adjusted calculation to your Account if.. the sum of your payments (credited to your Account in the six consecutive billing periods ending with the Closing Date of the current billing period) is greater than the sum of the Minimum Amounts Due (for the six consecutive billing periods ending with the Closing ])ate of the previous billing period, not using the adjusted calculation and including the amount past due in only tite first of those six periods); the sum of the Minimum Amounts Due is equal to the sum of your payments and it is less than or equal to $90; die sum of the Minimum Amounts Due is zero and we used the adjusted calculation in the last billing period when your Minimum Amount Due was not zero; or it is the first billing period ending on or after November 16, 2007, and your Account was opened before that date. If we adjust your Minimum Amount Due, we will do so for at least six billing periods, and if we stop adjusting your Minimum Amount Due, we will not adjust it again for at least six billing periods, regardless of your paymtent history. Payments All payments must be sent to the payment address shown on your billing statement and mast include the remittance coupon from your billing statement. You mast pay us in U.S. currency, with a single draft or check drawn on a U.S. bank and payable in U.S. dollars, or with a negotiable instrument payable in U.S. dollars and clearable through the U.S. banking system, or through an electronic payment method clearable through the U.S. banking system. Your Account number must be included on or with all payments. If we decide to accept a payment made in a foreign currency, you authorize us to choose a conversion rate that is acceptable to us to convert your remittance into CUS. currency, unless a particular rate is required by law. Payments conforming to the above requirements that we receive no later than the (tour specified on your billing statement will be credited to your Account as of the day received; payments conforming to the above requirements that we receive after the hour specified on your billing statement will be credited to your Account as of the following day. If payment does not conform to tite requirements stated above, crediting may be delayed. If this happens, additional Charges may be imposed. We may accept late payments, partial payments or any payments marked as being payment in full or as being settlement of any dispute without losing any of our rights under this Agreement or under the law. Our acceptance of any such payments does not mean we agree to change this Agreement in any way. You agree that an acceptance of such payments will not operate as all accord and satisfaction without our prior express written approval. Subject to applicable law, we will apply and allocate payments and credits among balances and Charges on your Account in any order and manner determined by us in oursole discretion. In most cases, we will apply and allocate payments first to balances at lower Annual Percentage Rates ("APRs") and then to higher APR balances, and apply Purchase credits first to the balance from which the corresponding debit originated. However, for servicing, administrative, systems or other business reasons, we Wray apply and allocate payments and credits among balances and to Charges on your Account in some other order or manner that we may determine in our sole discretion. You agree that we have the unconditional right to exercise this discretion in a way that is most favorable or convenient to us. Authorization for Electronic Debit to Your Checking Account When you provide a check as payment, you authorize us to use information from your check to make an electronic fund transfer from your account or to process the payment as a check transaction. If we process your check electronically, funds may be withdrawn from your bank or asset account as soon as the same day we receive your check. Also, if we process your check electronically, you will not receive that cancelled check with your bank or asset account statement. Finance Charges A. Finance Charges begin to accrue for each Charge as of the date the Charge is added to the daily balance, as described below. If payment in full for any New Balance shown on the statement for a billing period is credited to your Account by the Payment Due Date shown on that statement, then Finance Charges will not accrue for Purchases from the date on which payment in full of that New Balance is credited to your Account until the end of the billing period in which such payment is credited to your Account In addition, Finance Charges will not accrue for Purchases during a billing period if (a) the Previous Balance shown on the billing statement for that billing period is zero or a credit balance, or (b) payment in full for the New Balance, if any, shown on the statements covering the two immediately preceding billing periods is credited to your Account by tite respective Payment Due Dates shown oil those statements. For purposes of this paragraph, Purchases do not include Balance Transfers or convenience checks. B. The Daily Periodic Rate ("DPW') for Purchases and the DPR for Cash Advances are each based on an APR, which may vary. The APR for Cash Advances is the Prime Rate plus 14.99%. A DPR is 1/366th of the APR. Your DPRs and APRs for Purchases appear on the accompanying supplement(s). When an APR changes, we apply it to any existing balance subject to that rate. C. The "Prime Rate" is determined once with respect to each billing period. The Prime Rate for each billing period is the Prime Rate published in the Money Rates section (or successor section) of The Wall Street /ournal on (a) the first day of that billing period or (b) the day that is two days prior to the Closing Date of that billing period, whichever is higher. In each case, if such a day is not a customary publication day for The WWI Street Journal, we will substitute the closest preceding day that is a customary publication day. If The Wall Stree journal ceases or suspends publication, we may refer to the Prime Rate published in any other newspaper of general circulation in New York, New York, or we may substitute a similar reference rate at our sole discretion. Any increase or decrease to an APR resulting from a change in the Prime Rate takes effect as of the first day of the billing period. An increase in the Prime Rate means that the variable APRs (and corresponding DPRs) applicable to your Account will increase and you may incur higher Finance Charges and may have a higher Minimum Amount Due. D. Notwithstanding the foregoing, the DPR (and corresponding APR) on all balances will increase to the Default Rate if during the Review Period (i) payment of your Minimum Amount Due is not credited to your Account by the Payment Due Date in any two billing periods or (ii) a payment on your Account is not honored by your bank or other financial institution. The "Review Period" is the period, constituting approximately one year, of twelve consecutive billing periods ending with the Closing Date of the current billing period, whether or not you received a statement for each such billing period. If the Default Rate is applied, it will apply to your Account tar a minimum of twelve consecutive billing periods, beginning with the current billing period. The Default Rate is a DPR which corresponds to all APR equal to the Prime Rate plus 21.99%. Average Daily Balance Method for ta]culation of Finance Charges We use the Average Daily Balance method to calculate Finance Charges on your Account. Under this method, we calculate the Finance Charges on your Account by applying the DPR to the Average Daily Balance (as described below) separately for each balance subject to Finance Charges. Different periodic rates may be used for different balance. For example, different DPRs may be applied to separate balances, such as Purchase, Cash Advance, and Promotional Balances. To get the Avenge Daily Balance for each balance, we (1) take the beginning balance for each day (including unpaid Finance Charges from previous billing periods), (2) add any new transactions, debits, or fees, (3) subtract any payments or credits credited as of that day, and (4) make any appropriate adjustments. For each day after the first day of the billing period, we also add an amount of interest equal to the previous day's daily balance multiplied by the DPR for the balance. This gives us the daily balance for the particular balance for that day and the beginning balance for that balance for the next day. If this balance is negative, it is considered to be zero. Then, we add up all the daily balances for each balance for the billing period and divide the total by the number of days in the billing period. This gives us the Average Daily Balance for that balance. FDR 899931 If you multiply the Average Daily Balance for each balance by the number of days in the billing period and the DPR for that balance, the result will be the Finance Charge assessed on that balance, except for variations caused by rounding. The total Finance Charge fit the billing period is calculated by adding the Finance Charges assessed on all balances of the Account This method of calculating the Average Daily Balance and Finance Charge results in daily compounding of Finance Charges. We may use mathematical formulas which produce equivalent results to calculate the Average Daily Balance, Finance Charge, and related amounts. For example, we may utilize computer programs or other computational methods that are designed to produce mathematically equivalent results while using fewer and/or simpler computational steps than are described in this Agreement. At our discretion, we may exclude certain categories of debit transactions or fees from the calculation of the daily balances. Unless we elect to use a later date, we. add a Charge to the daily balance as follows: We add a Cash Advance or Purchase to the appropriate daily balance as of the date of request or the transaction date on the billing statement. We add a convenience check to the appropriate daily balance as of the date of first deposit. We add a Balance Transfer other than through a convenience check to the appropriate daily balance as of the date of the request. We add periodic Finance Charges to the daily balance as described above. We add any other Charge to the appropriate daily balance as of the date of the transaction. Periodic Finance Charges are added to the outstanding balance at the end of the billing period for which Finance Charges are calculated. In arty such billing period, we will impose a minimum Finance Charge of $11.50, which will be added to the balance with the highest APR unless, for our convenience and in our sole discretion, we choose to add it to a balance with a lower APR. In our sole discretion, we also may round any calculations made in determining the Finance Charges on your Account in any way that is convenient to us. Any such rounding may apply to or cause variations in your DPRs. Late Fees We may assess a Late Fee if payment of at least the Minimum Amount Due is not credited to your Account by the Payment Due Date. The amount of the Late Fee depends on the amount of the Previous Balance on the statement on which the Late Fee appears, as follows: Previous Balance Lae Fee Less than $400 $15 $400 or greater $35 Other Fees We may charge the following fees to your Account, subject to applicable law. Except as otherwise noted, these fees will be added to the Purchase Balance. t. Dishonored Payments: We may charge a fee of $38 whenever any check, similar instrument, or electronic payment order that we receive as payment on your Account is not honored upon first presentment. If a Card is presented in connection with cashing a clteck at all American Express Travel Service Office or other authorized location and the check is not honored, we may charge a fee of $38. (We will also add a Charge to the Cash Advance balance of your Account in the amount of the check that was not honored.) 2. Copies of Statements: We may charge a fee of $5 for each billing period for which a copy of a billing statement is requested. We will not charge this fee for any request for a copy of any of the billing statements for the three billing periods immediately prior to the request. 3. Account Re-opening Fee: We may charge a re-opening fee of $25 if your Account is cancelled for any reason and you request reinstatement and such request is honored. 4. Wire Transfers: We may charge a fee of $15 each Lime a wire transfer from your Account is initiated and authorized 5. Stop Payment Orders: We may charge a fee of $29 each time we receive a request to stop payment on a convenience check drawn on your Account. 6. Over-limit Fee: We may charge a fee of $29 in each billing period the New Balance on your statement exceeds your credit line. Convenience Check Usage/Balance Transfer Transaction Fee: We may assess a transaction fee for each Balance Transfer and each convenience check drawn on your Account, as disclosed in the applicable Promotional Offer, in CD26157_FDR899931_p12.gxp:FDR815199 9,'27/07 1:29 PM Page the materials accompanying the convenience check, or at the time of the transaction. This fee is a Finance Charge and, if assessed, will be added to the same Purchase or Cash Advance balance as the convenience check transaction or Balance Transfer. For convenience checks made payable to cash or to you, a bank, brokerage or similar asset account, however, unless otherwise disclosed in the applicable Promotional Offer, in the materials accompanying the convenience check, or at the time of the transaction, there will be a transaction fee of 3%, with a minimum of $5. 6. ATM Fee: We will impose a fee each time a Card is used to obtain cash or arty other services from an ATM. This fee will be 3% of the amount of the cash withdrawn or other services obtained (including any additional fee imposed for use of the AI'.M by its operator), with a minimum of S5. This fee will be added to the Cash Advance balance. Suspension /Cancellation . In addition to any of the actions we may take under this Agreement, we may suspend or cancel your Account privileges at our sole option, subject to applicable law, at any time with or without cause and without giving you notice, including but not limited to situations in which (1) you cease to be an Account holder in good standing with respect to any other Accounts you may have with American Express, (2) you are in default or (3) you are no longer a Costco member. Any such action on our part will not cancel your obligation to pay us the outstanding balance, Finance Charges and other charges due on your Account under the terns of the Agreement in effect at the time of the cancellation or suspension of ,your Account or as subsequently amended. You agree to pay us all such obligations despite any suspension or cancellation ofyour Account. Default We may consider your Account to be in default at any time if you fail to pay us any amount when it is due, or if you breach any other promise or obligation under this Agreement. Subject to applicable law, we may also consider your Account to be in default at any time if any statement made by you to us in connection with this Account or any other credit program was false or misleading; if you breach any promise or obligation under any other agreement that you may have with us or with any of our affiliates; if we receive information indicating that you are bankrupt, intend to file bankruptcy, or are unable to pay your debts as they become due; or we receive information leading us to conclude that you are otherwise not creditworthy In evaluating your creditworthiness, you agree that we may rely on information contained in consumer reports, and in our discretion we may consider the amount of debt you are carrying compared to your resources or any other of your credit characteristics, regardless of your performance on this Account. We may also consider your Account in defa all in the event of your death. In the event of your default, and subject to any limitations or requirements of applicable law, we may require payment of a portion of your outstanding balance greater than the Minimum Amount Due, declare the entire amount ofyour obligations to us immediately due and payable, and/or suspend or cancel your Account and/or any feature that may be offered in connection with the Account. You agree to pay all reasonable costs, including reasonable attorneys' fees, incurred by us (I) in connection with the collection of any amount due on your Account, whether or not any arbitration, litigation, or similar proceedings are initiated; and (2) in reasonably protecting ourselves from any loss, harm, or risk relating to any default on your Account. Transactions Made in Foreiym Currencies Ifyon incur a Charge in a foreign currency, it will be converted into U.S. dollars on the date it is processed by us or our agents. Unless a particular rate is required by applicable law, you authorize us to choose a conversion rate that is acceptable to us for that date. Currently, the conversion rate we use for a Charge in a foreign currency is no greater than (a) the highest official conversion rate published by a government agency, or (b) the highest interbank conversion rate identified by us from customary banking sources, on the conversion date or the prior business day, in each instance increased by 2%. This conversion rate may differ from rates in effect on the date of your Charge. Charges converted by establishments (such as airlines) will be billed at the rates such establishments use. Benefits and Services Subject to applicable law, we have the right to add, modify or delete any benefit, service, or Feature that may accompany your Account at any time and without notice to you. Arbitration Purpose: This Arbitration Provision sets forth the circumstances and procedures under which Claims (as defined below) may be arbitrated instead of litigated in court. Definitions: As used in this Arbitration Provision, the term "Claim" means any claim, dispute or controversy between you and us arising from or relating to your Account, this Agreement, the Electronic Funds Transfer Services Agreement, and any other related or prior agreement that you may have had with us, or the relationships resulting from any of the above agreements ("Agreements"), except for the validity, enforceability or scope of this Arbitration Provision or the Agreements. For purposes of this Arbitration Provision, "you" and "us' also includes any corporate parent, or wholly or majority owned subsidiaries, affiliates, any licensees, predecessors, successors, assigns, any purchaser of any accounts, all agents, employees, directors and representatives of any of the foregoing, and other persons referred to below in the definition of"Claims" "Claim' includes claims of every kind and nature, including but not limited to, initial claims, counterclaims, cross-claims and third-party claims and claims based upon contract, tort, fraud and other intentional torts, statutes, regulations, common law and equity. "Claim"also includes claims by or against any third party using or providing any product, service or benefit in connection with any account (including, but not limited to, credit bureaus, third parties who accept the Card, third parties who use, provide or participate in fee-based or free benefit programs, enrollment services and rewards programs, credit insurance companies, debt collectors and all of their agents, employees, directors and representatives) if and only if, such third party is named as a co-party with you or us (or files a Clam with or against you or us) in connection with a Claim asserted by you or us against the other. The term "Clairn" is to be given the broadest possible meaning that will be enforced and includes, by way of example and without limitation, any claim, dispute or controversy that arises from or relates to (a) any of the accounts created under any of the Agreements, or any balances on any such accounts, (b) advertisements, promotions or oral or written statements related to any such accounts, goods or services financed under any of the accounts or the terms of financing, (c) the benefits and services related to Cardmembership (including fee-based or free benefit programs, enrollment services and rewards programs), and (d) your application for any account. We shall not elect to use arbitration under the Arbitration Provision for any Claim that you properly file and pursue in a small claims court of vour state or municipality so long as the Claim is individual and pending only in that court. Initiation of Arbitration Proceeding/Selection of Administrator: Anv Claim shall be resolved upon the election by you or us, by arbitration pursuant to this Arbitration Provision and the code ofprocedures of the national arbitration organization to which the Claim is referred in effect at the time the Claim is filed (the "Code"), except to the extent the Code conflicts with this Agreement. Claims shall be referred to either the National Arbitration Forum ("NAF") or the American Arbitration Association ( AAA ), as selected by the party electing to use arbitration. If a selection by us of either of these organizations is unacceptable to you, you shall have the right within 30 days after you receive notice of our election to select the other organization listed to serve as arbitration administrator. For a copy of the procedures, to file a Claim or for other information about these organizations, contact them as follows: NAF at P0. Box 50191, Minneapolis, MN 55405; website: www.arbitration-forum.com AAA at 335 Madison Avenue, New York, NY 10017; website: www.adr.org. Significance of Arbitration: IF ARBITRATION IS CHOSEN BY ANY PARTY WITH RESPECT TO A CLAIM, NEITHER YOU NOR WE WILL. HAVE, THE. RIGHT TO LITIGATE THAT CLAIM IN COURT OR HAVE A JURY TRIAL ON THAT CLAIM. FURTHER, YOU AND WE WILL NOT HAVE THE RIGHT TO PARTICIPATE IN A REPRESENTATIVE CAPACITY OR AS A MEMBER OF ANY CLASS OF CLAIMANTS PERTAINING TO ANY CLAIM SUBJECT TO ARBITRATION. EXCEPT AS SET FORTH BELOW, THE ARBITRATOR'S DECISION WILL BE FINAL, FDR 899931 AND BINDING. NOTE THAT OTHER RIGHTS THAT YOU OR WE WOULD HAVE IF YOU WENT TO COURT ALSO MAY NOT BE AVAILABLE. IN ARBITRATION. Restrictions on Arbitration: IF EITHER PARTY ELECT'S TO RESOLVE A CLAIM BY ARBITRATION, THAT CLAIM SHALL BE ARBITRATED ON AN INDIVIDUAL BASIS. THERE SHALL. BE NO RIGHT OR AUTHORITY FOR ANY CLAIMS TO BE ARBITRATED ON A CLASS ACTION BASIS OR ON BASES INVOLVING CLAIMS BROUGHT IN A PURPORTED REPRESENTATIVE CAPACITY ON BEHALF OF THE GENERAL PUBLIC, OTHER CARDMEMBERS OR OTHER PERSONS SIN11LARLY SITUATED. The arbitrator's authority to resolve Claims is limited to Claims between you and us alone, and the arbitrator's authority to make awards is limited to awards to you and us alone. Furthermore, claims brought by you against us, or by us against you, may not be joined or consolidated in arbitration with Claims brought by or against someone other than you, unless agreed to in writing by all parties. No arbitration award or decision will have any preclusive effect as to issues or claims in any dispute with anyone who is not a named party to the arbitration. Notwithstanding any other provision in this Agreement (including but not limited to the Continuation provision below) and without waiving either party's right to appeal such decision, should any portion of this Restrictions on Arbitration provision be deemed invalid or unenforceable, then the entire Arbitration Provision (other than this sentence) shall not apply. Arbitration Procedures: This Arbitration Provision is made pursuant to a transaction involving interstate commerce, and shall be governed by the Federal Arbitration Act, 9 U.S.C. Sections 1-16, as it may be amended ("the 'FAA r). The arbitration shall be governed by the applicable Gale, except that (to the extent enforceable under the FAA) this Arbitration Provision shall control if it is inconsistent with the applicable Code. The arbitrator shall apply applicable substantive law consistent with the FAA and applicable statutes of limitations and shall honor claims of privilege recognized at law and, at the timely request of either party, shall provide a brief written explanation of the basis for the decision. The arbitration proceeding shall not be governed by any Federal or state rules of civil procedure or rules of evidence. Either party may submit a request to the arbitrator to expand the scope of discovery tinder the applicable Code. The party submitting such a request must provide a copy to the other party, who may submit objections to the arbitrator with a copy of the objections provided to the requesting party, within fifteen (15) days of receiving the requesting party's notice. The granting or denial of such a request will be in the sole discretion of the arbitrator, who shall notify the parties of his/her decision within twenty (20) days of the objecting party's submission. The arbitrator shall take reasonable steps to preserve the privacy of individuals, and of business matters. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction. The arbitrator's decision will be final and binding, except for any right of appeal provided by the FAA. However, any party can appeal that award to a three arbitrator panel administered by the same arbitration organization, which shall consider anew any aspect of the initial award objected to by the appealing party. The appealing part shall have thirty (30) days from the date of entry of the written arbitration award to notify the arbitration organization that it is exercising the right of appeal. The appeal shall be filed with the arbitration organization in the form of a dated writing. The arbitration organization will then notify the other party that the award has been appealed. The arbitration organization will appoint a three-arbitrator panel that will conduct an arbitration pursuant to its Code and issue its decision within one hundred and twenty- (120) days of the date of the appellant's written notice. The decision of the panel shall be by majority vote and shall be final and binding. Location of Arbitration/Payment of Fees: Any arbitration hearing that you attend shall take place in the federal judicial district of your residence. You will be responsible for paying your share, if any, of the arbitration fees (including filing, administrative, hearing and/or other fees) provided by the Code, to the extent that such fees do not exceed the amount of the filing fees you would have incurred if the Claim had been brought in the state or federal court closest to your billing address that would have jurisdiction over the Claim. We will be responsible for paying the remainder of any arbitration fees. At your written request, we will consider in CD261.57_FDR899931_p12.gxp:FDR815199 9/27/07 1:93 PM Page good faith making a temporary advance of all or part ofyour share of the arbitration tees for any Claim you initiate as to which you or we seek arbitration. You will not be assessed any arbitration fees in excess of your share if you do not prevail in any arbitration with us. Continuation: This Arbitration Provision shall survive termination of your accounts as well as voluntary payment of the Account balance in full by you, any legal proceeding by you or us to collect a debt owed by the other, any bankruptcy by you or us, and any sale by us of your Account (and in the case of sale, its terms shall apply to the buyer of any of your Account). Except as otherwise provided in the Restrictions on Arbitration provision above, if any portion of this Arbitration Provision (other than the Restrictions on Arbitration provision) is deemed invalid or unenforceable, it shall not invalidate the remaining portions of this Arbitration Provision, the Agreement or any predecessor agreement you may have had with us, each of which shall be enforceable regardless of such invalidity.. I'Vaiver Our failure to exercise any of our rights under this Agreement, our delay in enforcing any of our rights, or our waiver of our rights on any occasion, shall not constitute a waiver of such rights on any other occasion. Consumer Reports You authorize us to request consumer reports about you, to make whatever credit investigations we deem appropriate, to obtain and exchange any information we may receive from consumer reports and other sources, and to use such information for any purposes, subject to applicable law. You authorize us to furnish information concerning your Account to consumer reporting agencies, or others, subject to applicable law. If you believe information we have furnished about your Account to a constuner reporting agency is inaccurate, you should write to us at: American Express Credit Bureau Unit, P.O. Box 787 1, Ft. Lauderdale, FL 333297871 and identify the specific information you believe is inaccurate. You are hereby notified that information about your Account that may have a negative impact on your credit record may be submitted to a credit reporting agency if you fail to fulfill the terms of yrour credit obligations. Telephone MonitoringiRecording Situ agree that from time to time we may monitor and1or record telephone calls between you or Additional Cardmembers and us to assure the quality of our customer service or as required by applicable law. Use of Card at Federal Government Agencies American Express has entered into contracts that enable the Card to be accepted at certain federal government agencies and departments ("Agencies"). As with Card transactions at commercial establishments, when you choose to use your Card at an Agency, certain Charge information is necessarily collected by us. Charge information from Card transactions at Agencies may be used for processing Charges and payments, billing and collections activities and may be aggregated for reporting, analysis and marketing activities. Additional "routine uses" of Charge information by Agencies are pubb hed periodically in the Federal Register. Insurance Products Notice We identify insurance providers and products that may be of interest to you. In this role we may act on behalf of the insurance provider, as permitted by law. We receive compensation from insurance providers that may vary by provider and product. Also, we may receive additional compensation or financial benefit when AMEX Assurance Company err another American Express entity acts as the insurer or reinsurer for these products. The arrangements we have with providers, including the potential to insure or reinsure products, may also influence what products and providers we identify. Not ices Any notice given by us shall be deemed given when deposited in the U.S. mail, postage prepaid, addressed to you it die latest Billing Address shown on our records. Changing this AgreementlAssignment of this Agreement We may change the terms of or add new terms to this Agreement at any time, in accordance with applicable law. We may apply any changed or new terms to any then-existing balances on your Account as well as to future balances. This written Agreement is a final expression of the agreement between the creditor and the debtor and the written Agreement may not be contradicted by evidence of any alleged oral agreement. We may also sell, transfer or assign this Agreement and the Account at any time without notice to you. You may not sell, assign or transfer your Account or any of your obligations under this Agreement. Assignment of Claims In the event you dispute a Charge and we credit your Account for all or part of such disputed Charge, we automatically succeed to, and you are automatically deemed to assign and transfer to us, any rights and claims (excluding tort claims) that you have, had or may have against any third party for an amount equal to the amount we credited to your Account. After we make such credit, you agree that without our consent you will not pursue any claim against or reimbursement from such third party for the amount that we credited to your Account, and that you will cooperate with us if we decide to pursue the third party for the amount credited. Applicable Law This Agreement and your Account, and all questions about their legality, enforceability and interpretation, are governed by the laws of the State of Utah (without regard to internal principles of conflicts of law), and by applicable federal law. We are located in Utah, hold your Account in Utah, and entered into this Agreement with you in Utah. AMERICAN EXPRESS BANK, FSB To American Express Cardmembers In'lhe United States and Its Territories Billing Disputes Procedure - Keep This Notice For Future Use This notice contains important information about your rights and our responsibilities Linder the "Fair Credit Billing Act" Notify Us in Case of Errors or Questions About Your Account Statement If you think your statement is wrong or if you need more information about a transaction on your statement, write us on a separate sheet of paper at the address for billing inquiries listed on your statement. Write to us as soon as possible. We must (tear from you no later than 60 days after we sent you the first statement on which the error or problem appeared. You can also telephone us, but doing so will not preserve your rights. In your letter, give us the following information: • Your name and Account number. • The dollar amount of the suspected error. • Describe the error and explain, if you can, why you believe there is an error. If you need more information, describe the item you are not sure about. If you have authorized us to pay your Account statement automatically from your savings, checking or other account, you can stop the payment on any amount you think is wrong. To stop the payment, your letter must reach us three business days before the automatic payment is scheduled to occur. Your Rights and Our Responsibilities After We Receive Your Written Notice We must acknowledge your letter within thirty (30) days, unless we have corrected the error by then. Within ninety (90) days, we must either correct the error or explain why we believe the statement was correct. After we receive your letter, we cannot try to collect any amount you question, or report you as delinquent. We can continue to bill you for the amount you question, including Finance Charges, and we can apply any unpaid amount against your credit line. You do not have to pay any questioned amount while we are investigating, but you are still obligated to pay the parts of your statement that are not in question. If we find that we made a mistake on your statement, you will not have to pay any Finance Charges related to any questioned amount. If we did not make a mistake, you may have to pay Finance Charges, and you will have to make up any missed payments on the questioned amounts. In either case, we will send you a statement of the amount you owe and the date that it is due. If you fail to pay the amount that we think you owe, we may report you as delinquent. However, if our explanation does not satisfy you and you write to us within ten (10) days telling us that you still refuse to pay, we mast tell anyone we report you to that you have a question about your statement, and we must tell you the name of anyone we reported you to We must tell FDIC ti99931 anyone we report you to that the matter has been settled between its when it finally is. If we do not follow these rules, we cannot collect the first $50 of the questioned amount, even if your statement was correct, Special Rule for Credit Card Purchases If you have a problem with the quality of property or services that you purchased with the Card, and you have tried in good faith to correct the problem with the merchant, you may have the right not to pay the remaining amount due on the property or services. There are two limitations to this right: (a) You must have made the purchase in your home state or, if not within your home state, within 100 miles ofvour current mailing address; and (b) The purchase price must have been more than $50. These limitations do not apply if we own or operate the merchant, or if we mailed you the advertisement for the property or services. Note for Ohio Residents: The Ohio laws against discrimination require that all creditors make credit equally available to all credit-worthy customers, and that credit reporting agencies maintain separate credit histories on each individual upon request. The Ohio Civil Rights Commission administers compliance with this law, Once you enroll in Pay By Computer, Pay By Phone or any other American Express Electronic Funds Transfer service (hereafter the "Program"), you will be subject to this Electronic Funds Transfer Agreement (the "EFT Agreement"). Scope of Agreement This EFT Agreement covers your participation in the Program. In this EFT Agreement, the words "you" and "your" refer to the Basic Cardmember and also include all Additional Cardmembers who have enrolled in the Program. The words "we," "our" and "us" refer to American Express Travel Related Services Company, Inc. The words "your American Express Accounts" refer to your card account governed by your Cardmember Agreement ("Card Account") or any other American Express Accounts that we permit you to enroll in the Program. The words 'your Bank Account" refer to the account held by a bank, securities firm or other financial institution from which payment will be made when you make transactions under the Program. The words "your bank" mean the bank, securities firm or other financial institution that holds your Bank Account. The words "other options" refer to electronic payment transfer options mid/or other cash access that American Express may make available from time to time, including the option to pay your Account bill electronically using a computer, phone or other device. Your Account is governed by the Cardmember Agreement that is attached to this EFT Agreement. That agreement and the capitalized terms in it also apply here. Payment for Cash Transactions Each time you initiate a transaction under the Program, you instruct and authorize us or our agent to draw a check or initiate an automated clearing house ("ACH") debit in your name on your Bank Account, payable to us or to our agent, in the amount of the transaction. The amount of the transaction is the amount of the Account bill you paid or other funds transfer you authorized, plus any applicable fees or charges. We may charge a fee of $38 for each check or ACH debit drawn by us or our agent in connection with the Program that is not honored upon first presentment, subject to applicable law. Your bank may also assess its customary charge for such items, if any. Dishonored Requests for Payment, If any check or ACH debit drawn by us or our agent in connection with the Program is not honored by your bank, we have the right to charge the amount of any such transaction, and the dishonored payment fee referred to above, to the Card Account or to collect the amount from you. If this happens, we may cancel your right to participate in the Program. i CD26157_FDR899931_p12.gxp:FDR815199 9;27/07 1:29 PM Page For certain Bank Accounts, you may have a separate agreement with us or with a participating bank, securities firm, or other financial institution that allows a line of credit to be accessed in the event that your Bank Account contains insufficient funds to make payment to us. You should refer to the appropriate agreement relating to that line of credit for the terns and conditions that govern its use. Liability for Unauthorized 'transactions and Advisability of Prompt Reporting You must tell us AT ONCE if you believe a transaction under the Program has been made without your authorization. Telephoning is the best way of minimizing possible losses. If a transaction was unauthorized, and within two days after you learn about it you notify us that the transaction was unauthorized, we will not hold you liable for that transaction. In any event, even if you fail to notify us, your liability for any unauthorized transaction or series of related unauthorized transactions shall not exceed $50. If you believe that someone has transferred or may transfer money from your Bank Account without permission, caB;1-800-528-4800 (within U.S.) or 1-336-393-1111 (outside U.S.) anytime, or write: American Express Credit Department, PO. Box 53830, Phoenix, Arizona 850723830. Our 1. !ability for Improper Transactions or Payments If a transaction is not completed as you have directed or if we do not complete a transfer to or from your Batik Account on time in the correct amount, we will research and correct it as necessary, once you advise us. We will also reimburse you for your actual losses or damages, if any, caused by our error. However, there are some exceptions. We will not be liable to you in the following instances: if, through no fault of ours, your Bank Account does not or did not contain enough money to complete the transaction or the transfer would exceed an established credit limit; if the funds in your Bank Account are or were at the time of the attempted transaction subject to legal process or other encumbrance restricting the transaction; • if circumstances beyond our control (such as fire or flood) prevent or prevented the transaction, despite reasonable precautions that we have taken; if a technical malfunction known to you prevented the transaction; or any oilier exceptions stated in this EFT Agreement. Business Dav For purposes of this EFT Agreement, our business days are Monday through Friday. Holidays are not included. Arbitration The Card Account is governed by the Cardmember Agreement contained herein.'rhe Arbitration provision contained within that agreement applies to this EFT Agreement. Please refer to that provision as you read this EFT Agreement. Privacy Electronic brads transfers you initiate pursuant to this EFT Agreement are covered by the American Express Privacy Policy, a copy of whiclh was given to you together with your American Express Card. To view our Privacy Policy online, please: visit americanexpress.com. How n Contact Us If for any reason you wish to contact us about the Program, about your participation in the Program, or about transactions relating to the Program, write or call us as follows: Address; American Express Travel Related Services Company, Inc., Electronic Funds Services, PO. Box 297815, F:. l.auderdale, FL 33329-7815 or e-mail us by clicking on the Customer Service link online at www.americanexpress.com. Telephone: 1-800-CASH NOW, 24 hours a day, seven days a week. In Case of ltrrors or Questions About Your Transactions Write or call us at the number or address given above as soon as you can if you think your statement or receipt is wrong or if you need more information about a transaction listed on your statement or receipt. We must hear from you no later than 60 days after we sent you the FIRST statement on which the problem or error appeared. Ifyou are delayed in contacting us due to extenuating circumstances (such as a hospital stay), we may extend this 60 days for a reasonable time. 1. Tell us your name and Account nurnber. 2. Describe the error or the transaction you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information. 3, Tell us the dollar amount of the suspected error. If you tell us orally, we may require that you send us your complaint or question in writing within 10 business days" from the date you notified us. We will tell you the results of our investigation within 10 business days after we hear from you and we will correct any error promptly. If we need more time, however, we may take up to 45 calendar days to investigate your complaint or question. If we decide to do this we will assure that your batik recredits your Bank Account within 10 business days" for the amount you think is in error, so that you will have the use of the money during the time it takes us to complete our investigation. If we ask you to put your complaint or question in writing and we do not receive it within 10 business days" following your oral notification, we may not recredit your Bank Account. If notification of an error is received within 30 calendar days after your Bank Account is opened, we will have 20 business days to provide you with the results of our investigation and correct any error, and 90 days to complete the investigation. If we determine that there was no error, we will send you a written explanation within three business days after we finish our investigation. Upon your request we will provide you with copies of the documents that we used in our investigation. If we have provisionally recredited vour Bauk Account during the investigation and determine that there was no error, we will notify you of the date on which we will redebit your Bank Account, and the amount to be debited. You should make certain that your Bank Account contains sufficient funds to cover this debit. If it does not, we have the right to charge such amount to the Account or to collect the amount from you. If this happens, we may cancel your right to participate in the Program. 'termination We, or any bank or financial institution participating in the Program, may add to or remove from the Program any or all ATMs or extend or limit the services provided at any location without notifying you beforehand In addition, we may discontinue the Program at any time. Your right to participate in the Program will be terminated or suspended if the Card Account is cancelled or suspended, if you cancel the authorization you have given your bank to directly charge checks to your Bank Account, if the Bank Account from which payment will be made when you make transactions under the Program is closed to withdrawal transactions by us or our agents, if your participation in the Program is inactive for 18 consecutive months or more, or if the Card Account is no longer in good standing. In addition to the foregoing, we may revoke your right to participate in the Program, at any time, at our sole discretion, with or without cause, subject to applicable law. If we do so, we will send You written notice, but we may not send you the notice until after the revocation. We also have the right to deny authorization for any requested transaction, at any time, at our sole discretion, with or without cause, and without giving you notice, subject to applicable law. You may terminate your participation in the Program but you must do so by writing to us at the address disclosed in the Section of this EF'r Agreement entitled How to Contact Us. Prior Agreements and Assignments This EFT Agreement supercedes all prior agreements you may have with us relating to the Program. 'Ale have the right to assign this EFT Agreement to a subsidiary or affiliate company at any time. AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC. Note for Massachusetts Residents General Disclosure Statement. Any documentation provided to you which indicates that an electronic funds transfer was made shall be admissible as evidence of such transfer and shall constitute prima facie proof that such transfer was made. The initiation by you of certain electronic funds transfers from your Bank Account will, except as otherwise provided in this EFT Agreement, effectively eliminate your ability to stop payment of the transfer. UNLESS OTHERWISE PROVIDED IN THIS EFT AGREEMENT, YOU MAY NOT STOP PAYMENT OF FDR 899931 ELECTRONIC FUNDS TRANSFERS; THEREFORE, YOU SHOULD NOT EMPLOY ELECTRONIC ACCESS FOR PURCHASES OR SERVICES UNLESS YOU ARE SATISFIED THAT YOU WILL NOT NEED TO STOP PAYMENT. Disclosure of Account Information to Third Parties. If you give us your written authorization to disclose information about you, your Account or the transactions that you make to any person, that authorization shall automatically expire 45 days after we receive it. Optional Limit on Obtaining Cash. You have the option to request that we limit the total amount of cash that you may obtain from ATMs in a single day to $50. Byou elect this option we will take all reasonable steps to comply with your request. "For Massachusetts residents: 10 calendar days instead of business days. I CD26157_FDR899931_p12.gxp:FDR815199 9/27/07 2:19 PM Page Description of Coverage How the Buyers Assurance Plan Works W71en a Cardenember charges the entire cost of a covered product with his or her Card Account,' the Buyer's Assurance Plan will extend the terms of the original manufacturer's warranty for a period of time equal to the duration of the original manufacturer's warranty, up to one additional year, on warranties of five years or less that are eligible in the U.S. How You Benefit. The Buyer's Assurance Plan mirrors manufacturers' warranties for covered products purchased entirely with your Card Account, up to one additional year. When your covered product's manufacturers warranty expires, the Buyer's Assurance Plan takes effect. The Buyer's Assurance Plan cannot pay more than the actual amount charged to your Card for the item or $10,000; whichever is less (not to exceed $50,000 per Cardmember Account per policy year for all Occurrences combined). Coverage is provided for any product malfunction, defect or damage covered by the terms of the product's original warranty ("Occurrence") -- at no extra cost. For items charged entirely with the Card, the program administrator will decide whether to have the item repaired or replaced, or to reimburse you (cash or credit'), not to exceed the original purchase price. The Buyer's Assurance Plan does not reimburse for shipping and handling expenses or installation, assembly, professional advice, maintenance or other service charges.' Where the personal property consists of articles in a pair or set, this Policy shall be liable for one item in the pair or set which form the basis of claim hereunder. No product registration or enrollment is required for any covered products, including gifts purchased for others. Who is Covered You are covered under this Plan and coverage remains effective as long at you are a U.S. Resident Cardmember, that is, the American Express Card has been issued to you in your name, and you maintain your Permanent Residence within the 50 United States of America, the District of Columbia, Puerto Rico or the U.S. Virgin Islands.' Your Permanent Residence is considered your primary dwelling place. Key Perms to Know Benefits will not be paid if, on the dale of Occurrence, on the date of claim filing, or on the date of would-be claim payment, any amount due on your Card Account is unpaid for one or more billing cycle(s) or your Card Account is canceled.' You must provide proof of purchase and satisfactory proof of die covered Occurrence while coverage is in effect to quality for benefits under the Buyer's Assurance Plan. Remember to keep all your American Express charge receipts, original store receipts, original manufacturers' warranties, and products requiring repair. • if you purchase an additional service contract or extended warranty with a product which is otherwise eligible under the Buyer's Assurance Plan, and the combined coverage provided by both the original manufacturers warranty and the purchased service contract does not exceed five years, then the product is eligible for coverage under the Buyer's Assurance Plan. The Buyers Assurance Plan will extend the warranty time period and mirror coverage of the original manufacturer's warranty up to one additional year after both the original manufacturer's warranty and the purchased service contract have expired. If, however, you purchase an American Express` Service Plan with a purchase from American Express Merchandise Services, the Buyers Assurance Plan will apply before the service plan is in effect. If the combined coverage of the original manufacturer's warranty and the purchased service contract exceeds five years then the product purchased is not eligible under the Buyer's Assurance Plan and no coverage applies. If you buy an additional service contract or an extended warranty for a computer, computer component or part that already conics with an original U.S. manufacturer's warranty, unless such coverage is provided from, and administered by, the original manufacturer, coverage under the Buyer's Assurance Plan does not apply. Products Not Covered products not having manufacturers' warranties valid in the U.S.; • at the time of purchase, used, rebuilt, refurbished or remanufactured items; • products covered by an unconditional satisfaction guarantee; • motorized vehicles (such as cars, trucks, motorcycles, boats, airplanes) and their parts, subject to high risk, combustible wear and tear, or mileage stipulations (including batteries, carburetors, pipes, hoses, pistons, brakes, tires, or mufflers); motorized devices and their parts used for agriculture, landscaping, demolition or construction; motorized devices and their parts which are permanent additions or fixtures to a residential or commercial building; • business fixtures, including, but not limited to, air conditioners, refrigerators, heaters; • land or buildings; consumable or perishable items; animals or living plants; • one-of-a-kind products which cannot be replaced; • items purchased for resale, professional, or commercial use; • items still under installment billing (except those purchased from American Express Merchandise Services); and products with manufacturers' warranties, or combined manufacturers' warranties and service plan agreements, lasting in excess of rive years. Occurrences Not Covered any physical damage, including damage as a direct result of natural disaster or a power surge, except to the extent the manufacturer's warranty covers damage; • Occurrences caused by any of the following: fraud; abuse; war or hostilities of any kind (e.g., invasion, rebellion, insurrection); confiscation by order of any government, public authority, or customs official; risks of contraband; illegal activity or acts; radioactive contamination; mechanical failure covered under a product recall; all Occurrences that take place outside the Buyer's Assurance Plan coverage effective period. How to File a Claim Remember, you need to report any Occurrence immediately, including that for gifts purchased with the Card. Remember also, you need to retain your receipts, the original manufacturer's warranty and the product requiring repair until the claim process is complete. You may also be asked to obtain a repair estimate. 1. Call toll-free 1-800-225-3750 to notify us of your claim (overseas, call collect at 1-303-273-6498). Note: You must report your claim within 30 davs from the date c f Occurrence. 2. The program administrator will decide whether to have the item repaired or replaced, or to reimburse you (cash or credit'), up to the amount charged to the Card, and not to exceed the original purchase price. The Buyers Assurance Plan does not reimburse for shipping and handling expenses or installation, assembly, or other service charges.' Note: No payment will be made for invalid claims or claims not substantiated in the manner required by the Insurer. 3. You must return all requested documentation within 60 days from the date of Occurrence to remain eligible for coverage. 4. For some claims, you may be required to send in the damaged product, at your expense, for further evaluation of your claim. Note: Ifrequested, you mustsend in the damaged product within 30 days from the date of request to remain eligible far coverage. FDR 899931 :Additional Information for You The benefits provided under the Buyer's Assurance Plan apply only to you and additional Cardmembers on your Account. Only you and those persons have any legal or equitable right, remedy, or claim to insurance proceeds and/or damages under or arising from the Buyer's Assurance Plan. Subject to the terms and conditions of the Plan, if the Cardmember is notified that any warranty has ended for any reason (such as bankruptcy of the manufacturer or other responsible party), the Buyers Assurance Plan will continue to provide coverage, not to exceed one year from the date the Cardinember is notified of such an event. The Cardmember may be asked to provide proof in the form of a public announcement or other official documentation. The Buyer's Assurance Plan is underwritten by AMEX Assurance Company ("Insurer'), Administrative Office, Green Bay, Wisconsin. This document serves only as a description of coverage and is not a policy or contract of insurance; the actual terms, conditions and exclusions of Policy AX0953 ("Policy") govern the Buyers Assurance Plan. The Policy has been issued to American Express Travel Related Services Company, Inc. ("American Express"), the Policyholder. This document replaces all existing prior Descriptions of Coverage for the Buyer's Assurance Plan. Kenneth J. Ciak, President Timothy Meehan, Secretary AMEX Assurance Company AMEX Assurance Company 6717-11-01 1. For those eligible and enrolled in the Membership Rewards program, the entire cost of a covered produc t may also be purchased through redemption of a Membership Rewards program redemption certfJicate. 2. Credit reimbursement does Trot appiv to New livrk State residents. 3. For those eligible and enrolled in the Membership Rewards program, payment or credit will not exceed the original assigned value of the personal property received through redemption of a Membership Rewards program redemption cert f fate up to the stated limits, excluding shipping and handling expenses. 4. Important note for those enrolled in the Membership Rewards program: A Membership Rewards program redemption certificate can only be redeemed by eligible Cardmembers. Benefits will not be paid when a Membership Rewards program redemption certificate has been transferred to non-eligible Cardmembers and/or non-fardmembers. 5. Does not apply to New York State residents. Description of Coverage Underwritten by AMEX Assurance Company, Administrative Office, 480 Pilgrim Nay, Green Bay, Wisconsin Purchase Protection provides coverage for Your purchases for ninety (90) days from the date of purchase when You charge any portion of the price of the purchased item to Your Account. You will be reimbursed only for the amount charged to Your Account. (See Description of Benefits section.) Definitions Certain words used in this Description of Coverage are capitalized throughout and have special meanings. Wherever used herein, the singular shall include the plural, the plural shall include the singular, as the context requires. Account means Your American Express Card Account. Cardmember means a person who has been issued a United States of America based proprietary American Express Card, which is Current and in Good Standing, and who has a Permanent Residence in the 50 United States of America, the District of Columbia, Puerto Rico or the U.S. Virgin Islands. Covered Incident means the theft of, or damage, whether by accident or vandalism, to any one item of property purchased worldwide as a gift or for personal or business use and charged to Your Account. Company means AMEX Assurance Company, and its duly authorized agents. Current and In Good Standing means a Cardmember Account for which the monthly minimum requirement has been paid prior to the date in which the claim is payable. Master Policyholder means American Express Travel Related Services Company, Inc. CD26157_FDR899931_a12.gxp:FDR815199 9/27/07 1:29 PM Page Permanent Residence means the one primary dwelling place where the Cardmember resides and to which they intend to return. Plan means the Policy and the benefits described therein. Platinum Cardmember means a Cardmember who has a Platinum Charge Card (required to be paid in full monthly), a Corporate Platinum Card, or a Fidelity American Express Platinum Card. Any other Card which may reference the Platinum name or has Platinum colored plastic will not receive higher coverage limits or benefits. Policy means the Group Insurance Master Policy (AX0951 issued to American Express Travel Related Services Company, Inc.), We, Us, Our means the Company. You, Your means the Cardmember. Description of Benefits We will pay You the expense charged to Your Account up to 1,000 for any one Covered Incident and up to .+50,000 for all Covered Incidents during a calendar year. Purchase Protection provides benefits, for ninety (90) days from the date of purchase, if a Covered Incident occurs with respect to property You purchased and charged to Your Account. Our benefit payment will not include shipping and handling expenses or installation, assembly, professional advice, maintenance or other service charges or any product rebates, discounts or money received from lowest price comparison programs that reduced the original cost of the property. Our payment of any eligible benefit amount is further contingent upon Your Account being Current and in Good Standing. Only a Cardmember has a legal and equitable right to any nsurance benefit that may be available under this Plan. Exclusions Benefits are not payable if the loss for which coverage is sought was directly or indirectly, wholly or partially, contributed to or caused by: 1. war or any act of war, whether declared or undeclared; 2. any activity directly related to and occurring while in the service of any armed military force of any nation state recognized by the United Nations; 3, participation in a riot, civil disturbance, protest or insurrection; violation of a criminal law, offense or infraction; S. natural disasters, including, but not limited to, hurricanes, floods, tornados, earthquakes or any other event in the course of nature, that occurs at the same time or in separate instances; 6. fraud or abuse or illegal activity of any kind by the Cardmember, 7, confiscation by any governmental authority, public authority, or customs official; 8. negligent failure of a duty to care by any third party in whose possession the property purchased by a Cardmember has been temporarily placed; 9, not being reasonably safeguarded by You; to. theft from baggage not carried by hand and under Your personal supervision or under the supervision of a traveling companion known by You; 11. damage through alteration (including, but not limited to, cutting, sawing and shaping); I!. normal wear and tear, inherent product defect or manufacturer's defects or normal course of play; 13, damage or theft while under the care and control of s common carrier; 14, food spoilage; or 13, leaving property at an unoccupied construction site. For residents of Washington, the first paragraph of this section is removed and replaced with die following; We will not pay for loss caused by any of the excluded events described below. Loss will be considered to have been caused by an excluded event if the occurrences of that event directly and solely results in loss, or initiates a sequence of events that result in loss, regardless of the nature of any intermediate or final event in that sequence. Purchases Not Covered The following purchases are not covered: 1. travelers checks, tickets of any kind, negotiable instruments (including, but not limited to, gift certificates, gift cards and gift checks), cash or its equivalent; 2. animals or living plants; *, rare stamps or coins; FDR 899931 4. consumable or perishable items with limited life spans (including, but not limited to, perfume, light bulbs, batteries); 5. antique or previously owned items; 6, motorized vehicles and watercraft, aircraft, and motorcycles or their motors, equipment, parts or accessories; 7. stolen or damaged property consisting of articles in a pair or set. Coverage will be limited to no more than the value of any particular part or parts, unless the articles are unusable individually and cannot be replaced individually, regardless of any special value they may have had as part of a set or collection; items purchased for resale, professional, or commercial use; 9. permanent household and/or business fixtures, including, but not limited to, carpeting, flooring and/or tile; 10. business fixtures, including, but not limited to, air conditioners, refrigerators, heaters; and 11. hospital, medical and dental equipment and devices. Claims Provisions If You experience a loss for which You believe a benefit is payable under this Plan, You most provide both Notice of Claim and Proof of Loss. To insure prompt processing of Your claim, report any theft or damage immediately following the date of the Covered Incident, including for gifts purchased with the Card. Retain Your receipts and Your damaged property (if applicable) until the claim process is complete. Notice of Claim Notice of Claim should he provided to Us within thirty (30) days of the loss. You may contact Us by calling toll-free stateside 1-800-322-1277 or, if from (tverseas, by calling collect 1-303-273-6498. You may also write to Us at Purchase Protection, PO Box 402, Golden, CO 80402-0402. Failure to provide Notice of Claim within thirty (30) days will not invalidate a claim or reduce any benefit payment that may be found to be eligible, if it can be shown that it was provided is soon as reasonably possible. At the time You provide Us with Notice of Claim, We will assist You with Your Proof of Loss by providing You with instructions and/or documents, which You may have to complete and return to Us. You are required to cooperate with Us and provide documentation as requested by Us which is required and necessary to process Your claim and determine if benefits are payable. For residents of Missouri, no claim will be denied based upon Your failure to provide notice within such specified time, unless this failure operates to prejudice the right of Us. Proof of Loss Proof of Loss requires You to send Us all the information We request, at Your expense, in order that Your claim may be evaluated and that We may make a determination as to whether the claim may be paid. You must provide Us with satisfactory Proof of Loss within thirty (30) days (for residents of North Dakota sixty (60) days) after We have provided You with instructions and/or a claim form in response to Your Notice of Claim or Your claim may be denied. Your Proof of Loss documentation may be mailed to Us at the same address provided above for mailing Your Notice of Claim. We reserve the right to request all the information We deem necessary to determine that Your claim is payable, and We will not consider that We have received complete Proof of Loss until the information We have requested is received. Proof of Lass may require documentation consisting of, but not necessarily limited to, the following: 1, a Purchase Protection Claim Form; 31 the original itemized store receipt; 3. the insurance declaration fors for Your other sources of insurance or indemnity (e.g., homeowner's or renter's insurance); 4. a photograph of andior repair estimate for the damaged property; and 5. for theft and vandalism claims, a report regarding the stolen or vandalized property must be filed with the appropriate authority before You call to file a claim under Purchase Protection. No payment will be made on claims not substantiated in the manner required by Us. If all required documentation is not received within thirty (30) days (for residents of North Dakota sixty (60) days) of the date of the Covered Incident (except for documentation which has not been furnished for reasons beyond Your control), coverage may be denied. It is Your responsibility to provide all required documentation We request. You may be required to send in the damaged property at Your expense for further evaluation of Your claim. If requested, You must send in the damaged property within thirty (30) days (for residents of North Dakota sixty (60) days) from the date of our request to remain eligible for coverage. Payment of Claim A claim for benefits provided by this Plan will be paid upon Our receipt and review of Your complete Proof of Loss documentation and Our determination that a claim is payable according to the terms of the Plan. Any payment made by Us in good faith pursuant to this or any other provision of this Plan will fully discharge Us to the extent of such payment. If other insurance is available to You which provides the same or similar coverage as that provided by this Plan, this Plan becomes excess and We will pay only that portion of the Covered Incident benefit which is not reimbursed by other insurance up to Our limits, as provided under the Description of Benefits section. General Provisions Change of Permanent Residence If the change is to a different state, Your Policy provisions maybe adjusted to conform to the requirements of that state. Clerical Error A clerical error made by the Company will not invalidate insurance otherwise validly in force nor continue insurance not validly in force. Conformity with State and Federal Law If a Platt provision does not conform to applicable provisions of State or Federal law, the Plan is hereby amended to comply with such law. Entire Contract; Representation; Change This Description of Coverage, the Policy and any applications, endorsements or riders make up the entire contract. Any statement You make is a representation and not a warranty. This Description of Coverage may be changed at any time by written agreement between the Master Policyholder and the Company. Only the President, Vice- President or Secretary of AMEX Assurance Company may change or waive the provisions of the Description of Coverage. No agent or other person may change the Description of Coverage or waive any of its terms. This Description of Coverage may be changed at any time by providing notice to You. A copy of the Policy will be maintained and kept by the Master Policyholder and may be examined at any time. Excess Coverage If any loss under this Policy is insured under any other valid and collectible policy, then this Policy shall cover such loss, subject to its exclusions, conditions, provisions and other terms herein, only to the extent that the amount of such loss is in excess of the amount of such other insurance which is payable or paid. Fraud If any request for benefits made under the Plan is determined to be fraudulent, or if any fraudulent means or devices are used by You or by anyone acting on Your behalf to obtain benefits, all benefits will be forfeited. We do not provide coverage to a Cardmember who, whether before or after a loss, has: 1. concealed or misrepresented any fad upon which we rely, if the concealment or misrepresentation is material and is made with the intent to deceive; or 2. concealed or misrepresented any fact if the fact misrepresented contributes to the loss. Legal Actions No legal action may be brought to recover against this Plan until sixty (60) days after Proof of Loss has been received by Us. No such action may be brought after three (3) years (for residents of Arkansas five (5) years and residents of Missouri ten (10) years) from the time written Proof of Loss is required to be given. If a time limit of this Plan is less than allowed by the laws of the state where You live, the limit is extended to meet the minimum time allowed by such law. Right of Recovery If We make a payment to You under this Plan and You recover an amount from another, equal to or less than Our payment, You shall hold in trust for Us the proceeds of the CD26157_FDR899931_p12.gxptFDR815199 9!27/07 1:29 PM Page recovery and reimburse Cis to the extent of Our payment. If Our payments exceed the maximum amount payable under the benefits of this Plan, We have the right to recover from you any amount exceeding tite maximum amount parable. Subrogation In the event of any payment under this Policy, We shall be subrogated to the extent of such payment to all Your rights of recovery. You shall execute all papers required and shall do everything necessary to secure and preserve such rights, including the execution of such documents necessary to enable Us to effectively bring suit or otherwise pursue subrogation rights in Your name. You shall do nothing to prejudice such subrogation rights. We shall be entitled to a recovery as stated in these provisions only after You have been fully compensated for damages by another party. For residents of Louisiana, the Right of Recovery, Subrogation and Excess Coverage sections are revised to reflect: If the Company makes any payment under this Policy and the Cardmember has the right to recover damages from another, the Company shall be subrogated to that right. However, the Company's right to recover is subordinate to the i.ardmember's right to be fully compensated. Termination or Cancellation Coverage wiR cease on the earliest of the following. 1, the date You no longer maintain a Permanent Residence in the 50 United States of America, the District of Columbia, Puerto Rico or the U.S. V irgin Islands; 2. the date We determine that You or someone on Your behalf intentionally misrepresented or fraud occurred; 3. the date the Policy is cancelled; 4. the date You are no longer a Cardmember; 5. the date Your Account ceases to remain Current and in Good Standing; or 6. the date the Plan is not available in the location where You maintain a Permanent Residence. Termination or Cancellation of coverage will not prejudice any claim originating prior to termination or cancellation subject to all other terms of the Policy. The Company has the right to cancel the Policy at any time by sending a written notice at least forty five (45) days in advance to You at Your last known address. The notice will include the reason for cancellation. hnportant Additional Information For You For those eligible and enrolled in the Membership Rewards program, benefits are also paid when the purchased property is received through the redemption of a Membership Rewards redemption certificate. Payment or credit will not exceed the original assigned value of the property received through redemption of a Nfembership Rewards redemption certificate up to the stated limits, excluding shipping and handling expenses. Benefits will not be paid when a Membership Rewards redemption certificate has been transferred to a non eligible Cardmember or non- Cardmernbers. This Description of Coverage replaces any other Description of Coverage that You may have previously received for Purchase Protection. This Description of Coverage is an important document. Please read it and keep it in a safe place. IN WITNESS WHEREOF, We have caused this Description of Coverage to be signed by Our officers: •"`a9 G.L Kenneth J. Ciak, President Thomas R. Moore, Secretary AMEX Assurance Company AMEX Assurance Company PR DOC-CCSGI 02107 Applicable for Residents of the State of Kentucky In the Termination or Cancellation section the following is removed: The Company has the right to cancel the Policy at any time by sending a written notice at least forty five (45) days in advance to You at Your last known address. The notice will include the reason for cancellation. And replaced with die following: The Company has the right to cancel the Policy at any time by sending a written notice at least seventy-five (75) days in advance to You at Your last known address. The notice will include the reason for cancellation. PP/EW-RDRI -KY 05/07 FDR 899931 Applicable for Residents of the State of Oregon In the Exclusions section the following are removed: 4. violation of a criminal law, offense or infraction; 6, fraud or abuse or illegal activity of any kind by the Cardmember; The Proof of toss section is hereby, removed in its entirety and replaced with the following: Proof of Loss Proof of Loss requires You to send Us all the information We request, at Your expense, in order that Your claim may be evaluated and that We may make a determination as to whether the claim may be paid. You must provide Us with satisfactory Proof of Loss within ninety (90) days after We have provided You with instructions and/or a claim form in response to Your Notice of Claim or Your claim may be denied. Your Proof of Loss documentation may be mailed to Us at the same address provided above for mailing Your Notice of Claim. VVe reserve the right to request all the information We deem necessary to determine that Your claim is payable, and We will not consider that We have received complete Proof of Loss until the information We have requested is received. Proof of Loss may require documentation consisting of, but not necessarily limited to, the following: 1. Purchase Protection Claim Form; 2. the original itemized store receipt; 3. the insurance declaration forms for Your other sources of insurance or indemnity (e.g., homeowners or renter's insurance); 4. a photograph of and/or repair estimate for the damaged property; and 5. or theft and vandalism claims, a report regarding the stolen or vandalized property must be filed with the appropriate authority before You call to file a claim under Purchase Protection. No payment will be made our claims not substantiated in the manner required by Us. If all required documentation is not received within ninety (90) days of the date of the Covered Incident (except for documentation which has not been furnished for reasons beyond Your control), coverage may be denied. It is Your responsibility to provide all required docmnentation We request. You may, be required to send in the damaged property at Your expense for further evaluation of Your claim. If requested, You must send in the damaged property within ninety (90) days from the date of Our request to remain eligible for coverage. PP-RDRI-OR 05/07 Applicable for Residents of the State of South Dakota The Legal Actions section is hereby removed in its entirety and replaced with the following: Legal Actions No legal action may be brought to recover against this Plan until sixty (60) days after Proof of Loss has been received by Us. No such action may be brought after six (6) years from the time Proof of Loss is required to be given. PP/EW-RDRI-SD 05/07 Applicable for Residents of the State of'Vermont In the Termination or Cancellation section the following is removed: The Company has the right to cancel tite Policy at any, time by sending a written notice at least forty five (45) days in advance to You at Your last known address. The notice will include the reason for cancellation. And replaced with the following: The Company has the right to cancel the Policy by sending a written notice at least forty five (45) days in advance to You at Your last known address. The notice will include the reason for cancellation. PP/EW-RDRI-VT 05/07 Underwritten by AMEX Assurance Company Administrative Office, De Pere, Wisconsin (Herein called "the Company") Description of Coverage Covered Persons: A person shall be a Covered Person under the Blanket Master Group Policy AX0948 (the "Policy") only if: 1. he or she is: a. For $100,000 coverage, a Basic or Additional Cardmember who has any of the following Cards, or the extended payment account offered in conjunction with any of the following, issued by American Express Travel Related Services Company, Inc. or its participating subsidiaries (Express") in his or her name: American Express' Rewards Green Card, American Express' Preferred Rewards Green Card, American Express' Rewards Gold Card, American Express' Preferred Rewards Gold Card, American Express' Business Card, American Express` Cash Rebate Card, American Express' Community Business, American Express' Credit Card, American Express' Investment Management Account Gold Card, American Express' Costco Cash Rebate Credit Card, The American Express' Costco Card (IDC): American Express' Costco Business Card, Bank of Hawaii Credit Card from American Express, Batik of Hawaii Gold Credit Card from American Express, Best Rate Card, Blue for Business from American Express, Blue for Students', Blue from American Express, Business Capital Line from OPEN from American Express", Business Gold Card from OPEN from American Express`", American Express' Business Management Account from OPEN from American Express', Business Membership Rewards` Card, American Express' Business Purchase Account from OPEN from American Express", Buyer's Bonus Card, Continental OnePass Credit Card from American Express, Corporate Card from OPEN from American Express' including beginning with Account number 37134, American Express' Business Cash Rebate Card from OPEN from American Express', Corporate Costco Card from OPEN from American Express", Delta SkyMiles' Business Credit Card from OPEN from American Express", Gold Delta SkyMiles' Business Credit Card from OPEN from American Express', Delta SkyMiles' Credit Card, Delta SkyMiles' Options Card, American Express Executive Business Card from OPEN from American Express', Gold American Express Portfolio Credit Card, Gold Card, Gold Delta SkyMiles° Credit Card, Gold Senior Card, Gold Student Card, Membership Rewards' Credit Card from American Express, Membership Rewards Options' Credit Card from American Express, National Multiple Sclerosis Credit Card, Optima' Card Accounts, Optima' Cash Rewards Cana, Optima" Gold Card, Optima' Platinum Card, Optima' Platinum Cash Rebate Card, Optima' Platinum Preferred Card, Personal Card, Personal Choice Card, Personal Senior Card, Personal Student Card, Platinum Cash Rebate Card, Platinum Delta SkyMiles' Credit Card, Platinum ShopRite Credit Card from American Express, Starwood Preferred Guest Credit Card from American Express, The American Express' Golf Card, The Fidelity American Express' Card, The Fidelity American Express' Gold Card, The Hilton HHonors' Platinum Credit Card from American Express, Binghamton Savings Bank Gold Credit Card from American Express, Binghamton Savings Bank Business Credit Card from American Express, The New York Knicks Card from American Express, The New York Rangers Card from American Express, The Small Business Card from American Express; or b. For $250,000 coverage, a Basic or Additional Cardmember who has a Rewards Plus Gold Card, Corporate Rewards Plus Gold Card or the extended payment account offered in conjunction issued by American Express Travel Related Services Company, Inc. or its participating subsidiaries (`:American Express'") in his or her name; or c. For $500,000 coverage, a Basic or Additional Cardmember who has a Platinum Card'. Fidelity American Express Platinum Card'. American Express' Investment Management Account Platinum Card, American Express Business Platinum Card' from OPEN from American Express, Lexus Platinum Card", American Express Platinum Financial Services Card, LACADC Platinum Card or the extended payment account offered in conjunction issued by American Express Travel Related Services Company, Inc. or its participating subsidiaries ("American Express") in his or her name on a Platinum Card Account; or d. For $1500,000 coverage, a Basic or Additional Cardmember who has a Centurion Card, American Express' Business Centurion Card' from OPEN from American Expresso" or the extended payment account offered in conjunction issued by American Express Travel Related Services Company, Inc. or its participating subsidiaries ("American Express) in his or her name on a Centurion Card Account; or e. the spouse, Domestic Partner or dependent cold under age 23 of any eligible person described in (a), (b), (c), (d) above; and i CD26157_FDR899931_p12.gxp:FDR815199 9/27/07 1:29 PM Page I 2, his or her Permanent Residence is in the 50 united States, District of Columbia, Puerto Rico, or U.S. Virgin Islands. Definitions Accident whenever used in this Policy means an unexpected event which causes Injury and shall also include exposure resulting from a mishap on a Common Carrier Conveyance in which the Covered Person is traveling. Additional Cardmember meatus any individual who has received an American Express Carol at the request of a Basic Cardmember for use in connection with the Basic Cardmembees American Express Card account. American Express Card shall mean, unless otherwise specified, any of the Cards or Accounts listed above under Covered Persons. Basic Cardmember means any individual who has asked American Express to issue one or more American Express Cards and who has an A nerican Express Card account, Common Carrier Conveyance means an air, land or water vehicle (other than a rental) licensed to carry passengers for hire and available to the public- A trip is a Covered Trip if t, it is a trip taken by the Covered Person between the point of departure and the final destination as shown on the Covered Person's ticket or verification issued by the Common Carrier Conveyance; and 2. the Covered Person's entire fare for such trip on that Common Carrier Conveyance has been actually charged to a specific American Express Card account prior to any Injury. Domestic Partner means a person of the same or opposite gender who meets the following requirements: 1, has shared a residence with the Basic or Additional Cardmember for the last 12 months and plans to continue doing so; 2, is not married to any other person and is not committed to another Domestic Partner; 3. is at least 18 vears old; 4. is not related to the Basic or Additional Cardmember by blood closer than would bar marriage per state law; and 5. is financially interdependent with the Basic or Additional Cardmember and documentation of mutual financial support such as copies ofjoint home ownership or lease, common bank accounts, credit cards or investments can be supplied. Injury means bodily injury which: 1. is caused by an Accident which occurs while the Covered Person's insurance is in force under the Policy; and 2, results in Loss insured by the Policy; and 3. creates a Loss due, directly and independently of all other causes, to such accidental bodily injury. Permanent Residence means the Covered Persons one primary dwelling place, where the Covered Person permanently resides. Benefit Amounts As a benefit of Cardmembership, the Covered Permit will receive a benefit level of 3100,000 - $250,000 -- $500, 000 - $1,500,000 depending on the type of :American Express Card account used to charge the Common Carrier Conveyance fare jor the Covered Trip. Please refer to the Covered Persons section of this Description of Coverage, If you are still unsure what benefit level of coverage applies to your American Express Card, please contact the Customer Service Center toll-free number listed on the back afyourCard. also shown on,vourCard statement. Table of IIoosss LossofLife $100,000 $250,000 Dismemberment Loss of both hands or both feet $100,000 $250.00) Loss ofone hand and one foot $100,000 $250,000 Loss of entire sight of both eyes $100,000 $2501000 Loss of entire sight of one eye and one hand or one foot $100,000 $2501000 Loss of one hand or one toot $50,000 $125,000 Loss ofentire sight ofone eye $50,000 $125,000 1g1,Igof losses Loss of Life $500,000 $1,500,000 Dismemberment loss of both hands or both feet $500,000 $1,500,000 Loss of one hand and one foot $500,000 $1,500,00() Loa of entire sight of both eyes $500.000 $1,500,000 Loss of entire sight of one eye and one hand or one foot 5500,000 $11500,000 Loss of one hand or one foot $250,000 $750,000 Loss of entire sight of one eye $250,000 $750,000 Loss as used above with reference to hand or foot means complete and permanent severance through or above the wrist or ankle joint, and as used with reference to eye means the irrecoverable loss of the entire sight of such eye. $100,000...$250,000- $500,000.. $!,500,000 Maximum Indemnity per Covered Person In no event will multiple American Express Cards obligate the Company to pay for more than one Loss sustained by any one individual Covered Person as a result of any one Accident. The Company's obligation under the Policy will be determined according to the highest amount payable under the specific American Express Card actually used to charge the Common Carrier Conveyance fare for the Covered Trip as stated in the Benefit Amounts. In no event will a Loss from an Injury while coverage is in force under the Policy AX0948 obligate the Company to pay benefits under Policy AX0949, the Company's Business Travel Accident Insurance policy, in addition to any benefits payable by the Company under the Policy AX0948. The American Express Cards listed under this Policy do not receive coverage under Policy AX0949. ,Accidental Death and Dismemberment Benefit The Company will pay the applicable benefit amount as determined from the Table of Losses if a Covered Person suffers a Loss from an Injury while coverage is in force under the Policy; but only if such Loss occurs within 100 days after the date of the Accident which caused die Injury. Benefits will be paid for the greatest Loss. In no event will the Company pay for more than one Loss sustained by the Covered Person as the result of any one Accident. Description of Benefits Common Carrier Benefit: This Benefit is payable if the Covered Person sustains Injury as a result of an Accident which occurs while riding solely as a passenger in, or boarding, or alighting from or being struck by a Common Carrier Conveyance used on a Covered Trip. Exposure and Disappearance If the Covered Person is unavoidably exposed to the elements because of an Accident on a Covered Trip which results in the disappearance, sinking or wrecking of the Common Carrier Conveyance, and if as a result of such exposure, the Covered Person suffers a Loss for which benefits are otherwise payable under the Policy, such Loss will be covered under the Policy. If the Covered Person disappears because of an Accident on a Covered Trip which results in the disappearance, sinking or wrecking of the Common Carrier Conveyance, and if the Covered Person's body has not been found within 52 weeks after the date of such Accident, it will be presumed, subject to there being no evidence to the contrary, that the Covered Person suffered Loss of lice as a result of Injury covered by the Policy. Coverage Requirements A Covered Person will be fully insured for benefits under the Policy while taking a trip on a Common Carrier Conveyance only when the fare has been charged to the specific American Express Card. Eligibility for coverage will remain in effect as long as the definition of a Covered Person is met. Premiums The premium for this coverage is payable by American Express. Pxdusions This Policy does not cover any Loss caused or contributed to by (1) intentionally self-inflicted Injury, suicide or any attempt thereat, while sane; (2) war or any act of war whether declared or undeclared; however, any act committed by an agent of any government, party; or faction engaged in war, hostilities, or other warlike operations provided such agent is acting secretly and not in connection with any operation of armed forces (whether military, naval or air forces) in the country where the Injury occurs shall not he deemed an act of war; (3) Injury to which a contributory cause was the commission of or attempt to commit an illegal act by or on behalf of the Covered Person or his/her beneficiaries; (4) Injury received while serving as an operator or crew member of any conveyance; (5) Injury received while driving, riding as a passenger in, boarding or alighting from a rental vehicle; or (6) FDR 899931 sickness, physical or mental infirmity, pregnancy, or any medical or surgical treatment for such conditions, unless treatment of the condition is required as the direct result of a covered Injury. Beneficiary A Basic Cardmember may designate a beneficiary or change a previously designated beneficiary for himself/herself and his/her spouse/Domestic Partner and dependent children who are not also Basic or Additional Cardmembers. An Additional Cardmember may designate a beneficiary for himself/herself and his/her spouseiDomestic Partner and dependent children who are not also Basic or Additional Cardmembers or spouses/Domestic Partners or dependent children of Basic Cardmembers. No persons other than those stated above may designate or change a previously designated beneficiary. For such designation or change to become effective, a written request, on a form satisfactory to the Company, must be filed with American Express. Such designation or change shall take effect as of the date it was signed by the designator provided that it has been received by American Express, but any payment of proceeds made by the Company prior to receipt of such designation of change shall fully discharge the Company to the extent of such payment. (aaims Notice of claim must be given to AMEX Assurance Company, Claims Administrative Office, PO Box 19018, Green Bay, WI 54307-9018 within 20 days after the occurrence or commencement of any Loss covered by the Policy, or as soon thereafter as is reasonably possible. Notice given by or on behalf of the claimant to the Company at its Administrative Office, or to any authorized agent of the Company, with information sufficient to identify the Covered Person shall be deemed notice to the Company. Pavnrent of Claims Benefits for Lass of life of a Covered Person will be paid to the designated beneficiary. Benefits for all other Lasses sustained by a Covered Person will be paid to the Covered Person, if living, otherwise to the designated beneficiary. If more than one beneficiary is designated and the beneficiaries' respective interests are not specified, the designated beneficiaries shall share equally If no beneficiary has been designated, or if the designated beneficiary does not survive the Covered Person, the benefits will be paid to the first surviving class of the following: 1) spouse or Domestic Partner; 2) children, equally per stirpes; and 3) the estate. In determining such person or persons, the Company may rely upon an affidavit by a member of any of the classes of preference beneficiaries described above. Payment based upon any such affidavit shall fully discharge the Company from all obligations under the Policy unless, before such payment is made, the Company has received at its Administrative Office written notice of a valid claim by some other person(s). Any amount parable to a minor may he paid to the minor's legal guardian. Time Limit on Actions No action at law or in equity shall be brought to recover under the Policy after the expirations of three years, five years for Centurion Card, Corporate Centurion Card'" from OPEN from American Express", after the time written proof of loss is required to be furnished. The benefits described herein are subject to all of the terms and conditions of the Policy. This Description of Coverage replaces any prior Description of Coverage which may have been furnished in connection with the Policy. g !2_2 3464 Kenneth J. Ciak, President Timothy' eehan, Secretary 6713-11-01-COM Notice to Florida Residents Only: The benefits of the Policy providing your coverage are governed primarily by the laws of a state other than Florida. 1. If, after reading this Description of Coverage, you are still unsure what benefit level ofcoverage applies to your American Express Card, please contact the Customer Service Center toll- free number listed on the back of your Card, also shown on your Card statement. ICD26157_FDR899931_p12.gxp:FDR815199 9/27/07 1129 PM Page 10 Description of Coverage Car Rental Loss and Damage Insurance provides the Cardmember, if the Cardmember is the primary renter, (as defined below) with insurance coverage for damage to or theft of most Rental Autos when the Cardmember uses the Gard (as described below) to reserve and pay for an auto rental from any Commercial Car Rental Company ("Rental Company") other than those located in Australia, Ireland, Israel, Italy, Jamaica, and New Zealand.' This coverage is always excess insurance. Rental Auto means a tour-wheeled, two-axle passenger- type motor vehicle, designed for and sold to accommodate private passenger transport on public roads. 1% ho is Eligible for Coverage You are eligible for coverage if: 1. You area Basic or Additional Cardmember and an American Express` Card or Optima` Card in association with that Card (the "Card") has been issued to you in your name; 2. You are of an account status and class that is provided Car Rental Loss and Damage Insurance as a benefit of Cardmembership ("Cardmember"); 3. Your Card account is billed from a U.S. operating center in U.S. dollars; and 4. You maintain your Permanent Residence within the 50 United States of America, the District of Columbia, Puerto Rico or the U.S. Virgin Islands. Permanent Residence means the Covered Person's one primary dwelling place where the Covered Person permanently resides and intends to return. A Personal, Gold, or Rewards Plus Gold Cardmember who is enrolled at an accredited tour-}rear college, university or graduate school in the United States and is receiving student benefits provided as a benefit of Cardmembership is not eligible for benefits under this Policy. Commercial Car Rental Company or Car Rental Company means any commercial car rental agency which rents Rental Autos' For the purposes of this Description of Coverage, Commercial Car Rental company means "Rental Company." How to Activate Coverage Coverage for theft of or damage to a Rental Auto is activated when the Cardmember:' 1. presents his or her eligible Card to the Rental Company to reserve the Rental Auto by making a reservation; or by placing a hold or deposit at the time the Rental Auto is checked out; 2. declines the full Collision Damage Waiver or similar option (CDW), or pays for a partial collision damage waiver, offered by the Rental Company; 3, is the primary renter, which is defined as the Cardmember, who is named oft the written agreement with the Rental Company as the person renting and taking control and possession of the Rental Auto ("Primary Renter"); and 1. uses the Card to pay for the entire auto rental from the Rental Company at the time of vehicle return. Coverage continues in effect while the Cardmember remains in control and possession of the Rental Auto. A Cardmember, who is physically challenged and unable to operate the Rental Auto, may be the Primary Renter if heishe is the Cardmember entering into the rental transaction. When Coverage Terminates Coverage for theft of or damage to the Rental Auto terminates when: 1. the Rental Company resumes control of the Rental Auto, or 30 consecutive days after the Rental Auto was checked out, whichever is earlier: or 2. the Policy is cancelled. Length of coverage Car Rental Loss and Damage Insurance covers eligible Rental Autos when rented under a written rental agreement from a Rental Company for no more than 30 consecutive days. Note: In no event shall coverage be provided when the Cardmember rents a Rental Auto beyond 30 consecutive days from the saute Rental Company, regardless of whether the original agreement is extended, or a new written agreement is entered into, or a new vehicle is rented. Additionally, no coverage will be provided when the Primary Renter rents a Rental Auto for more than 30 consecutive days out of a 45-day period within the same geographic market/location (75 mile radius). What is Covered Car Rental Loss and Damage Insurance reimburses a Cardmember for payments for damage to or theft of a Rental Auto that the Cardtember is required to make, up to the lesser of. I) the actual cost to repair the Rental Auto, 2) the wholesale Book value minus salvage and depreciation costs, or 3) the purchase invoice price of the Rental Auto minus salvage and depreciation costs. The coverage also reimburses the Cardmember for reasonable charges (those charges incurred at the closest facility that are usual and customary in the vicinity in which the loss or disablement took place) imposed by the Rental Company, such as towing or storage and Loss of Use. Loss of Use means the unavailability of a Rental Auto and consequent loss of revenue by the Rental Company due to damage or theft. Unless otherwise required by law, the Rental Company must submit a fleet utilization log indicating that during such time: 1, no other Rental Auto was available; and 1 there was a demand for a Rental Auto. Car Rental Loss and Damage Insurance covers no other type of loss. For example, in the event of a collision involving the Cardmember's Rental Auto, damage to any other driver's car or the injury of anyone or anything is not covered. Note. This policy does not provide liability or any other coveragesuch as Uninsured Motorists, benefits underany Worker's Compensation law; Disability benefits law or other mandated Government Plaits. What Excess Coverage Means Car Rental Loss and Damage Insurance is an excess insurance plan. This means that this excess coverage will reimburse the Cardmember only for losses/expenses not covered by plans, such as a partial collision damage waiver, any personal auto insurance, employer's auto insurance or reimbursement plan or other sources of insurance. When these other plans apply, a Cardmember must first seek payment or reimbursement and receive a determination based on the stated terms of such other Plans, that any such Plans do not provide coverage before this excess coverage will reimburse the Cardmember. Vehicles Not Covered Car Rental Loss and Damage Insurance does not cover rentals of. 1. expensive cars, which means cars with an original manufacturer's suggested retail price of $50,000 or more when new; 2. exotic cars regardless of year or value, including but not limited to Chevrolet Corvette, Toyota Supra, Mazda RX-7, Dodge Viper and Stealth, Plymouth Prowler, Mitsubishi 3000 GT, Nissan 300 ZX, Jaguar XJS, Acura NSX, Mercedes SL, SIX, S Coupe and E320 Coupe and Convertible, BMW M3, Z3 and 8 Series, Cadillac Allante and all Porsche, Ferrari, Lamborghini, Maserati, Aston Martin, Lotus, Bugatti, Vector, Shelby Cobra, Bentley, Rolls Royce; 3. trucks, pickups, cargo vans, custom vans; 4. full-sized vans, including but not limited to, Ford Econoline or Club Wagon, Chevy Van or Sportvan, GMC Vandura and Rally, Dodge Ram Vans and Ram Wagon; 5, vehicles which have been customized or modified from the manufacturer's factory specifications except for drivers assistance equipment for the physically challenged; 6. vehicles used for hire or commercial purposes; 7, mini-vans used for commercial hire, Note: Passenger Mini-wits (not Cargo Mini-Vans) with factory specified seating capacity of 8 passengers or less, including but not limited it), Dodge Caravan, Plymouth Voyager, Ford Win dstar and Nissan Quest, are covered when rented for personal or business use only. 8. antique cars, which means cars that are 20 years old or have not been manufactured for to or more years; 9. limousines; 10. full-sized sport utility vehicles, including but not limited to, Chevrolet/GMC Suburban, Tahoe and Yukon, Ford Expedition, Lincoln Navigator, Toyota Land Cruiser, Lexus LX450, Range Rover or full-sized Ford Bronco; 11. sportiudlity vehicles when driven "off-road"; and Note: Compact sportlutility vehicles, including but not limited to Ford Explorer, Jeep Grand Cherokee, Arissan Pathfinder, 7bvota Four Runner, Chevrolet Blazer and Isuzu Trooper and Rodeo are covered when driven on paved roams. FDR 899931 12, off-road vehicles, motorcycles, mopeds, recreational vehicles, golf or motorized carts, campers, trailers and any other vehicle which is not a Rental Auto. Losses Not Covered Car Rental Loss and Damage Insurance does not cover losses caused by or contributed to by: 1. operation of the Rental Auto in violation of the terms and conditions of the Rental Company agreement (including but not limited to losses occurring when: a person not permitted to operate the vehicle pursuant to terms of the rental agreement was in possession or control of the vehicle; or, driving the vehicle outside of the authorized rental territory); 2. leased or mini-leased vehicles; 3. costs attributed to the Commercial Car Rental Company's normal course of doing business; 4. intentional damage; 5. illegal activity, such as losses where the Rental Auto was used for, or involved in illegal activity or felony; 6. pre-existing conditions, damage or defect; 7. alcohol intoxication on the part of the driver, as defined in the state where the Accident occurred; 8. voluntarily taking any drug or acting under the influence or effect of that drug (unless taken as prescribed or administered by a Doctor); 9. war or military activity; 10, radioactivity; 11. confiscation by authority; 12. wear and tear, including gradual deterioration; 13. damage which is due and confined to freezing, mechanical or electrical breakdown or failure unless such damage results from a theft covered by the Policy; 14, failure to return keys to the Rental Company when the vehicle is stolen; 15, theft or damage to unsecured vehicles; 16. theft of or damage to tires (flats or blowouts), unless damaged by fire, malicious mischief, vandalism, or stolen, unless the loss is coincident with and from the sate cause as other loss covered by the Policy; and 17. off-road operation of the vehicle. Car Rental loss and Damage Insurance does not cover, and benefits will not be paid for: 1. sales tax related to repair of damages, unless reimbursement of such sales tax is required by law; 2. damage to any vehicle other than the Rental Auto; 3. damage to any property other than the Rental Auto, owner's property, or items not permanently attached to the Rental Auto; 4. the injury of anyone or anything; 5. expenses assumed, waived or paid for by the Rental Company or its insurer; 6. expenses covered by the Cardmember's personal auto insurer, employer or employer's insurer, or authorized driver's insurer; 7. value added tax or similar tax, unless reimbursement of such tax is required by law; 8. diminishmentofvalue; 9. any Rental Auto used for hire or commercial purposes; and 10, depreciation, unless reimbursement for depreciation is required bylaw. How to File a Claim Notification of darnage, including vandalism, theft, or an accident must be reported to the appropriate law enforcement agency as soon as reasonably possible. This requirement applies regardless of whether the Rental Auto is involved with other vehicles. Failure to notify may result in denial of benefits. If a loss occurs, a Cardmember should promptly notify the Car Rental Loss and Damage Claims Unit toll free at (800) 338-1670 in the U.S. only or call (440) 914-2950 from other locations worldwide. If the failure of a Cardmember to promptly report a loss prejudices the rights of the Insurer, the claim may be denied. A representative will answer any questions a Cardmember may have and will send the Candmember a claim form with instructions. Complete and sign the claim form. Written proof of loss. which includes the claim form and all other requested documentation (listed below), must be received within 60 days following the date of the damage or theft by: American Express Car Rental Loss and Damage Claims Unit, PO Box, 94729, Cleveland, Ohio 44101-4729, If the proof of loss and other 7 CD261:57_FDR899931_pl2.gxp:FDR815199 9/27/07 1:29 PM Page 11 documentation is not received within 60 days of the date of loss, coverage may be denied. Required documentation may consist of, but is not limited to: 1. our signed and completed claim form; 2. an itemized repair bill; 3. a copy of charge slip for the rental of the Rental Auto, Rental Auto contract or machine generated receipt to show rental was charged and paid for with an American Express Card: -1, a police report (ifapplieable); 5. photos of the damaged vehicle, if available; 6. a copy of the Cardmember's, authorized driver's or employer's auto insurance coverage, or a notarized letter stating no insurance; a copy of all claim documents and correspondence, provided by the Car Rental Company; 8, a copy of the Rental Company's utilization log; 9, a copy of the drivers license of the Cardmember and for authorized driver, unless the driver's license number shows on the rental agreement; 10. a copy of the written rental agreement, front and back, which documents when the Rental Auto was checked out and checked in; and 11.. information pertaining to other available insurance coverage(s). Cardmember cooperation with issues related to their benefits is required. If all required documentation is not received within 180 days of the date of loss (except for documentation which has not been furnished for reasons beyond the Cardmember's control), coverage may be denied. How Benefits are Paid All Car Rental Loss and Damage Insurance payments reimbursable under the policy are payable to the Cardmember; except that payment may be made, at the discretion of the Insurer, jointly to the Cardmember and the Commercial Car Rental Company when the Car Rental Company has not been reimbursed for the covered loss or damage, or the Cardmember has not validly assigned his/her payments to the Retinal Company or any other party. Note: Benefits will not be paid if, on the date ofloss, on the date of claim filing, or on the date of potential claim payment any amount due on Pour Card account is past due or lour Card is cancelled.' Rights of Recovery In the event of a payment under this Policy, the Insurer is entitled to all the rights of recovery that the Cardmember, to whom payment was made, has against another. That Cardmember must sign and deliver to the Insurer any legal papers relating to that recovery, do whatever else is necessary to help the Insurer exercise those rights and do nothing after loss to harm the Insurers rights. When a Cardmember or Commercial Car Rental Company has been paid damages under Policy No. AX0925, and also recovers from another, the amount recovered from the other shall be held by that Cardmember or Commercial Car Rental Company in trust for the Insurer and reimbursed to the extent of the Insurers payment. As a condition precedent to coverage, the Cardmember is required, and has a duty to fully cooperate with the Insurer ir. airy investigations, subrogation matters or legal proceedings by providing copies of any and all legal notices and any and all statements, including sworn statements and contributing any other papers and documents to reasonably assist in the disposition of the legal matter. Notification of Legal Action When a Cardmember is served with suit and/or summons papers relating to a Car Rental Loss and Damage claim, the Cardmember must notify (see address and phone number under Claims Notice section) and provide copies of the suit or summons papers to the Car Rental Loss and Damage claims unit within 15 days of when the Cardmember is served. Failure to comply may result in denial of benefits. Additional Information for You This coverage is underwritten by AMEX Assurance Company ("Insurer") through insurance Policy AX0925 (the "Policy") issued to American Express Travel Related Services Company, Inc, and its participating subsidiaries, affiliates and licensees. The Policy may be changed or terminated. This Description of Coverage is an important document. Please keep it in a safe place. Although it describes the present form of insurance as it exists at the time of printing, this doctunent is not the Policy or contract of insurance. The benefits described in this document are subject to all of the terns, conditions and exclusions of the Policy issued by the underwriter. This document replaces any prior Description of Coverage under the Policy which may have been furnished to the Cardmember. Kenneth J. Ciak, President Paul R. Johnston, Secretary AMEX Assurance Company AMEX Assurance Company CRLDI-DOC-CCSG 11105 1. For those eligible and enrolled in Membership Rewards, if a Membership Rewards redemption certificate is used, coverage is provided only to Rental Autos rented in the United States. 2. When used in conjunction with a Membership Rewards redemption certificate, the participating Car Rental Companies are limited to Hertz National and Budget. 3. Ifeligible and enrolled in Membership Rewards, coverage is also activated when fire Cardmember (1) presents a Membership Rewards redemption certificate and (2) uses a Membership Rewards redemption certificate at a participating Commercial Car Rental Company. Important note for those enrolled in Membership Rewards: A Membership Rewards redemption certificate can only be redeemed by eligible Cardmernbers. Benefits will not be paid when a Membership Rewards redemption cert fcate has been transferred to non-eligible Cardmembers and/or non-Cardmembers. 4. Does not apply to New York State residents. Additional Information for Residents off.ouisiana The Rights of Recovery section is replaced with the following; If the Company makes any payment under this Policy and the Cardmember has the right to recover damages from another, the Company shall be subrogated to that right. However, the Companys right to recover is subordinate to the Cardtnember's right to be fully compensated. CRLDI-RDRI-LA 11/05 Additional Information for Residents of South Dakota Under Losses Not Covered, item number 5, is replaced with the following: Car Rental Loss and Damage Insurance does not cover losses caused by or contributed to by: 5. violation of criminal law, or commission of a criminal act, whether cited or charged; Under Losses Not Covered, item number i. is replaced with the following: Car Rental Loss and Damage Insurance does not cover losses caused by or contributed to by: 7, consumption of alcohol at or in excess of the legal blood alcohol level for a felony conviction in the state or locality in which the Accident occurred; CRLDI-RDRI-SD 11/05 Additional lidormation for Residents of Vermont Under Losses Not Covered, the following item is hereby removed: ^. alcohol intoxication on the part of the driver, as defined in the state where the Accident occurred; CRLDI-RDRI-VT 11/05 Additional information for Residents of Wisconsin Under Losses Not Covered, the following items are hereby removed: 5, illegal activity, such as losses where the Rental Auto was used for, or involved in illegal activity or felony; 7. alcohol intoxication on the part of the driver, as defined in the state where die Accident occurred; 8. voluntarily taking any drug or acting under the influence or effect of that drug (unless taken as prescribed or administered by a Doctor); Under Losses Not Covered, the following item is added: 18. The use of the Rental Auto for unlawful purposes, or for transportation of liquor in violation of law, or while the driver is under the influence of an intoxicant or a controlled substance or controlled substance analog, or a combination thereof, or under the influence of any other drug to a degree which renders him or her incapable of safely driving, or under the combined influence of an intoxicant and any other drug to a degree which renders him or her incapable of safely driving, or any use of the motor vehicle in a reckless manner. FDR 899931 CRLDI-RDR 1-WI 11/05 Additional Information for Residents of West Virginia Under How Benefits are Paid, the Footnote, to the note that reads: Note: Benefits will not be paid if, on the date of loss. on the date of claim filing or on the date of potential claim payment, any amount due on Your Card account is past due or Your Card is cancelled, is hereby revised to read as follows:. Does not apply to West Virginia and New York State residents. CRLDI-RDRI-WV 11105 I CD26157_FDR899931_p12.gxp:FDR815199 9/27/07 1:29 PM Page 12 FDR 899931 N 0 2007 American Express CrERK4N' TrueEarn ings® Card MICHAEL H KLINE Closing Date 03/25/11 New Balance $7,201.92 Minimum Payment Due $426.00 Includes the past due amount of $282.00 Payment Due Date 04/20/11 Late Payment Warning: If we do not receive your Minimum Payment Due by the Payment Due Date listed above, you may have to pay a late fee of up to $35.00 and your Purchase APR may be increased to the Penalty APR of 27.24%. Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example: If you make no additional You will payoff the balance And you will pay an charges and each month you shown on this statement in estimated total of... pay... about... Only the Minimum Payment Due 25 years $14,420 If you would like information about credit counseling services, call 1-888-733-4139. P See page 2 for important information about your account. Q Your account is past due and overlimit. Pay at least $1,101.92, plus any additional charges incurred since the date of this billing statement. To help manage your spending you can sign up for Account Alerts at americanexpress.com/alerts. + Pleasefold on the perforation below, detach and return with your payment + p. 1/3 Account Ending 3-21005 Earn cash back virtually everywhere you use the Card. Account Summary Previous Balance $7,099.16 Payments/Credits -$0,00 New Charges +$0.00 Fees +$25.00 Interest Charged +$77.76 New Balance $7,201.92 Minimum Payment Due $426.00 Credit Limit $6,100.00 Available Credit $0.00 Cash Advance Limit $0.00 Available Cash $0.00 Days in Billing Period: 30 Customer Care Pay by Computer americanexpress.com/pbc Customer Care Pay by Phone 1-888-246-1076 1-800-472-9297 See page 2 for additional information ® Payment Coupon © Pay by Computer Pay by Phone Do not staple or use paper clips americanexpress.com/pbc 1-800-472-9297 MICHAEL H KLINE 3000 LINCOLN ST CAMP HILL PA 17011-2830 Account Ending 3-21005 Enter account number on all documents. Make check payable to American Express. Payment Due Date 04/20/11 New Balance $7,201.92 Minimum Payment Due $426.00 iiliilliri?nn,Ilri?nnilil?ll?lllilllll?il??ilny??llil??rl AMERICAN EXPRESS $ • ? C phone heck here number addressor P.O. BOX 1270 Amount Enclosed Note changes on on reverse side. NEWARK NJ 07101-1270 Note ch 0000349991685658627 000720192000042600 22 H MICHAEL H KLINE Account Ending 3-21005 p. 2/3 Payments: Your payment must be sent to the payment address shown on your statement and must be received by 5 p.m. local time at that address to be credited as of the day it is received. Payments we receive after 5 p.m. will not be credited to your Account until the next day. Payments must also: (1) include the remittance coupon from your statement, (2) be made with a single check drawn on a US bank and payable in US dollars, or with a negotiable instrument payable in US dollars and clearable through the US banking system; and (3) include your Account number. If your payment does not meet all of the above requirements, crediting may be delayed and you may incur late payment fees and additional interest charges. Electronic payments must be made through an electronic payment method payable in US dollars and clearable through the US banking system. If we accept payment in a foreign currency, we will convert it into US dollars at a conversion rate that is acceptable to us, unlessa particular rate is required by law. Please do not send post-dated checks as they will be deposited upon receipt. Any restrictive language on a payment we accept will have no effect on us without our express prior written approval. We will re-present to your financial institution any payment that is returned unpaid. Permission for Electronic Withdrawal: (1) When you send a check for payment, you give us permission to electronically withdraw your payment from your depositor other asset account. We will process checks electronically by transmitting the amount of the check, routing number, account number and check serial number to your financial institution, unless the check is not processable electronically or a less costly process is available. When we process your check electronically, your payment maybe withdrawn from your depositor other asset account as soon as the same day we receive your check, and you will not receive that cancelled check with your deposit or other asset account statement. If we cannot collect the funds electronically we may issue a draft against your depositor other asset account for the amount of the check. (2) By using Pay By Computer, Pay By Phone or any other electronic payment service of ours, you give us permission to electronically withdraw funds from the depositor other asset account you specify in the amount you request. Payments using such services of ours received after 8:00 p.m. MST may not be credited until the next day. How We Calculate Your Balance: We use the Average Daily Balance (ADB) method (including new transactions) to calculate the balance on which we charge interest on your Account. Call the Customer Service number listed below for more information about this balance computation method and how resulting interest charges are determined. The method we use to figure the ADB and interest results in doilycompoundingof interest. Paying Interest: Your due date is at least 25 days after the close of each billing period. We will not charge you interest on your purchases if you pay the New Balance by the due date each month. We wil I charge you interest on cash advances and (unless otherwise disclosed) balance transfers beginning on the transaction date. Foreign Currency Charges: If you make a Charge in a foreign currency, we will convert it into US dollars on the date we or our agents process it. We will charge a fee of 2.7% of the converted US dollaramount. We will choose a conversion rate that is acceptable to us for that date, unless a particular rate is required by law. The conversion rate we use is no more than the highest official rate published by a government agency or the highest interbank rate we identify from customary banking sources on the conversion date or the prior business day. This rate may differ from rates in effect on the date of your charge. Charges converted by establishments (such as airlines) will be billed at the rates such establishments use. Credit Balance: A credit balance (designated CR) shown on this statement represents money owed to you. If within the six-month period following the date of the first statement indicating the credit balance you do not request a refund or charge enough to use up the credit balance, we will send you a check for the credit balance within 30 days if the amount is $ 1.00 or more. Credit Reporting: We may report information about your Account to credit bureaus. Late payments, missed payments, or other defaults on your Account may be reflected in your credit report. New York residents may contact the New York Banking Department to obtain a comparative listing of credit card rates, fees and grace periods by calling 1-800-518-8866. Customer Service & Billing Inquiries 1-888-246-1076 Hearing Impaired InternationalCollect 1-336-393-1111 M: 1-800-221-9950 Large Print& Braille Statements 1-888-246-1076 FAX* 1-800-695-9090 Express Cash 1-800-CASH-NOW In NY: 1-800-522-1897 Website: americanexpress.com Mobile Site: amexmobile.com Customer Service & Billing Inquiries Payments P.O. BOX 981535 P.O. BOX 1270 EL PASO, TX NEWARK NJ 79998-1535 07101-1270 Change of Address if correct on front, do not use. • To change your address online, visit www.americanexpress.com/updatecontactinfo • For Name, Company Name, and Foreign Address or Phone changes, please call Customer Care. • Please print clearly in blue or black ink only in the boxes provided. Street Address City, State Zip Code Area Code and Home Phone Area Code and Work Phone Email Pay Your Bill with AutoPay Avoid late fees Save time Deduct your payment from your bank account automatically each month Visit americanexpress.com/autopay today to enroll. For information on how we protect your privacy and to set your communication and privacy choices, please visit www.amodennexpress.com/privacy. TrueEarnings® Card p. 3/3 r?r??ss I? MICHAEL H KLINE Closing Date 03/25/11 Account Ending 3-21005 Fees Amount 03/21/11 Late Payment Fee $25.00 Total Fees for this Period $25.00 Interest Charged Amount 03/25/11 Interest Charge on Purchases $77.76 Total Interest Chargedfor this Period $77.76 2011 Fees and Interest Totals Year-to-Date Amount Total Fees in 2011 _ $50.00 Total Interest in 2011 $22804 Interest Charge Calculation Your Annual Percentage Rate (APR) is the annual interest rate on your account. Annual Balance5ubject Interest Percentage Rate to Interest Rate Charge Purchases 13.24%(v) $7,140.82 $77.76 Cash Advances 25.24% (v) $0.00 to-no Total $77.76 M Variable Rate SHERIFF'S OFFICE OF CUMBERLAND COUNTY Ronny R Anderson 4, Sheriff Jody S Smith Chief Deputy Y a Richard W Stewart 4$ ` »' `RLAa ,2 C0UHT Solicitor '"S Y' A ?? 1 A American Express Bank, FSB vs. Michael Kline Case Number 2011-6862 SHERIFF'S RETURN OF SERVICE 09/07/2011 08:11 PM - Gerald Worthington, Deputy Sheriff, who being duly sworn according to law, states that on September 7, 2011 at 2011 hours, he served a true copy of the within Complaint and Notice, upon the within named defendant, to wit: Michael Kline, by making known unto himself personally, at 3000 Lincoln Street, Camp Hill, Cumberland County, Pennsylvania 17011 its contents and at the same time handing to him personally the said true and correct copy of the same. GERALD WORTHINGT EPUTY SHERIFF COST: $43.00 September 08, 2011 SO ANSWERS, RON R ANDERSON, SHERIFF