Visa 2013 Annual Report Download - page 91

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VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2013
Interchange judgment sharing agreement. Visa U.S.A. and Visa International have entered into an
interchange judgment sharing agreement with certain Visa U.S.A. members that have been named as
defendants in the interchange multidistrict litigation, which is described in Note 20—Legal Matters.
Under this judgment sharing agreement, Visa U.S.A. members that are signatories will pay their
membership proportion of the amount of a final judgment not allocated to the conduct of MasterCard.
Loss sharing agreement. Visa has entered into a loss sharing agreement with Visa U.S.A., Visa
International and certain Visa U.S.A. members. The loss sharing agreement provides for the
indemnification of Visa U.S.A., Visa International and, in certain circumstances, Visa with respect to:
(i) the amount of a final judgment paid by Visa U.S.A. or Visa International in the covered litigation after
the operation of the interchange judgment sharing agreement, plus any amounts reimbursable to the
interchange judgment sharing agreement signatories; or (ii) the damages portion of a settlement of a
covered litigation that is approved as required under Visa U.S.A.’s certificate of incorporation by the
vote of Visa U.S.A.‘s specified voting members. The several obligation of each bank that is a party to
the loss sharing agreement will equal the amount of any final judgment enforceable against Visa
U.S.A., Visa International or any other signatory to the interchange judgment sharing agreement, or the
amount of any approved settlement of a covered litigation, multiplied by such bank’s then-current
membership proportion as calculated in accordance with Visa U.S.A.’s certificate of incorporation.
Omnibus agreement. Visa entered into an omnibus agreement with MasterCard and certain Visa
U.S.A. members that confirmed and memorialized the signatories’ intentions with respect to the loss
sharing agreement, the interchange judgment sharing agreement and other agreements relating to the
interchange multidistrict litigation. The Visa portion of a settlement or judgment in the interchange
multidistrict litigation covered by the omnibus agreement would be allocated in accordance with
specified provisions of the retrospective responsibility plan. See Note 20—Legal Matters.
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