Document:

EXHIBIT 4.1

 

GE CAPITAL CREDIT CARD MASTER NOTE
TRUST,

 

as Issuer

 

And

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

 

as Indenture Trustee

 

Form of Series 2012-7 INDENTURE
SUPPLEMENT

 

Dated as of October 17, 2012

 

    	 

    	 

    

 

Table
of Contents

 

	 	 	 	 	 	 	 	Page
	 	 	 	 	 	 	 	 
	ARTICLE I	Definitions	 	 
	 	 	 	 	 	 	 	 
	 	SECTION 1.1.	Definitions	 	1
	 	 	 	 	 	 	 	 
	 	SECTION 1.2.	Incorporation of Terms	 	14
	 	 	 	 	 	 	 	 
	ARTICLE II	Creation of the Series 2012-7 Notes	 	 
	 	 	 	 	 	 	 	 
	 	SECTION 2.1.	Designation	 	14
	 	 	 	 	 	 	 	 
	 	SECTION 2.2.	Transfer Restrictions Applicable to the Class C Notes	 	14
	 	 	 	 	 	 	 	 
	ARTICLE III	REPRESENTATIONS, WARRANTIES and Covenants	 	 
	 	 	 	 	 	 	 	 
	 	SECTION 3.1.	Representations, Warranties and Covenants with respect to Receivables	 	16
	 	 	 	 	 	 	 	 
	 	SECTION 3.2.	Representations, Warranties and Covenants with respect to ERISA	 	16
	 	 	 	 	 	 	 	 
	ARTICLE IV	Rights of Series 2012-7 Noteholders and Allocation and Application of Collections	 	 
	 	 	 	 	 	 	 	 
	 	SECTION 4.1.	Determination of Interest and Principal	 	17
	 	 	 	 	 	 	 	 
	 	SECTION 4.2.	Establishment of Accounts	 	18
	 	 	 	 	 	 	 	 
	 	SECTION 4.3.	Calculations and Series Allocations	 	19
	 	 	 	 	 	 	 	 
	 	SECTION 4.4.	Application of Available Finance Charge Collections and Available Principal Collections	 	22
	 	 	 	 	 	 	 	 
	 	SECTION 4.5.	Distributions	 	25
	 	 	 	 	 	 	 	 
	 	SECTION 4.6.	Investor Charge-Offs	 	26
	 	 	 	 	 	 	 	 
	 	SECTION 4.7.	Reallocated Principal Collections	 	26
	 	 	 	 	 	 	 	 
	 	SECTION 4.8.	Excess Finance Charge Collections	 	26
	 	 	 	 	 	 	 	 
	 	SECTION 4.9.	Shared Principal Collections	 	26
	 	 	 	 	 	 	 	 
	 	SECTION 4.10.	Reserve Account	 	27
	 	 	 	 	 	 	 	 
	 	SECTION 4.11.	Spread Account	 	28
	 	 	 	 	 	 	 	 
	 	SECTION 4.12.	Investment of Accounts	 	28
	 	 	 	 	 	 	 	 
	 	SECTION 4.13.	Controlled Accumulation Period	 	29
	 	 	 	 	 	 	 	 
	 	SECTION 4.14.	[RESERVED]	 	29
	 	 	 	 	 	 	 	 
	 	SECTION 4.15.	Deposit of Collections	 	30
	 	 	 	 	 	 	 	 
	ARTICLE V	Delivery of Series 2012-7 Notes; Reports to Series 2012-7 Noteholders	 	 
	 	 	 	 	 	 	 	 
	 	SECTION 5.1.	Delivery and Payment for the Series 2012-7 Notes	 	30

 

    	-i-

    	 

    

 

Table
of Contents

(continued)

 

	 	 	 	 	 	 	Page
	 	 	 	 	 	 	 
	 	SECTION 5.2.	Reports and Statements to Series 2012-7 Noteholders	 	30
	 	 	 	 	 	 	 	 
	ARTICLE VI	Series 2012-7 Early Amortization Events	 	 
	 	 	 	 	 	 	 	 
	 	SECTION 6.1.	Series 2012-7 Early Amortization Events	 	30
	 	 	 	 	 	 	 	 
	ARTICLE VII	Redemption of Series 2012-7 Notes; Final Distributions; Series Termination	 	 
	 	 	 	 	 	 	 	 
	 	SECTION 7.1.	Optional Redemption of Series 2012-7 Notes; Final Distributions	 	32
	 	 	 	 	 	 	 	 
	 	SECTION 7.2.	Series Termination	 	33
	 	 	 	 	 	 	 	 
	 	SECTION 7.3.	Sale of Collateral	 	33
	 	 	 	 	 	 	 	 
	ARTICLE VIII	Miscellaneous Provisions	 	 
	 	 	 	 	 	 	 	 
	 	SECTION 8.1.	Ratification of Indenture; Amendments	 	33
	 	 	 	 	 	 	 	 
	 	SECTION 8.2.	Form of Delivery of the Series 2012-7 Notes	 	34
	 	 	 	 	 	 	 	 
	 	SECTION 8.3.	Counterparts	 	34
	 	 	 	 	 	 	 	 
	 	SECTION 8.4.	GOVERNING LAW	 	34
	 	 	 	 	 	 	 	 
	 	SECTION 8.5.	Limitation of Liability	 	35
	 	 	 	 	 	 	 	 
	 	SECTION 8.6.	Rights of the Indenture Trustee	 	35
	 	 	 	 	 	 	 	 
	 	SECTION 8.7.	Notice Address for Rating Agencies	 	35
	 	 	 	 	 	 	 	 
	 	SECTION 8.8.	Compliance with Applicable Anti-Terrorism and Anti-Money Laundering Regulations	 	35
	 	 	 	 	 	 	 	 
	 	SECTION 8.9.	Notes to be Treated as Debt for Tax	 	36
	 	 	 	 	 	 	 	 
	 	SECTION 8.10.	Deemed Consent	 	36

 

	EXHIBITS	 	 
	 	 	 
	EXHIBIT A-1	FORM OF CLASS A NOTE	 
	 	 	 
	EXHIBIT A-2	FORM OF CLASS B NOTE	 
	 	 	 
	EXHIBIT A-3	FORM OF CLASS C NOTE	 
	 	 	 
	EXHIBIT B	FORM OF MONTHLY NOTEHOLDER’S STATEMENT	 

 

    	-ii-

    	 

    

 

Table
of Contents

(continued)

 

	 	 	Page
	 	 	 
	SCHEDULES	 	 
	 	 	 
	SCHEDULE I	PERFECTION REPRESENTATIONS, WARRANTIES AND COVENANTS (With Respect to Receivables)	 

 

    	-iii-

    	 

    

 

SERIES 2012-7 INDENTURE
SUPPLEMENT, dated as of October 17, 2012 (the “Indenture Supplement”), between GE CAPITAL CREDIT CARD MASTER
NOTE TRUST, a Delaware statutory trust (herein, the “Issuer” or the “Trust”), and DEUTSCHE
BANK TRUST COMPANY AMERICAS, a New York banking corporation, not in its individual capacity, but solely as indenture trustee (herein,
together with its successors as provided in the Master Indenture referred to below, the “Indenture Trustee”)
under the Master Indenture, dated as of September 25, 2003 (the “Indenture”), between the Issuer and the Indenture
Trustee, as amended by the Omnibus Amendment No.1 to Securitization Documents, dated as of February 9, 2004, among RFS Holding,
L.L.C., RFS Funding Trust, the Issuer, Deutsche Bank Trust Company Delaware, as trustee of RFS Funding Trust, RFS Holding, Inc.,
and the Indenture Trustee, as further amended by the Second Amendment to Master Indenture, dated as of June 17, 2004, between the
Issuer and the Indenture Trustee, as further amended by the Third Amendment to Master Indenture, dated as of August 31, 2006, between
the Issuer and the Indenture Trustee, as further amended by the Fourth Amendment to Master Indenture, dated as of June 28, 2007,
between the Issuer and the Indenture Trustee, as further amended by the Fifth Amendment to Master Indenture, dated as of May 22,
2008, between the Issuer and the Indenture Trustee, and as further amended by the Sixth Amendment to Master Indenture, dated as
of August 7, 2009, between the Issuer and the Indenture Trustee (the Indenture, together with this Indenture Supplement, the “Agreement”).

 

The Principal Terms
of this Series are set forth in this Indenture Supplement to the Indenture.

 

ARTICLE
I

Definitions

 

SECTION 1.1. Definitions.

 

(a)          Capitalized
terms used and not otherwise defined herein are used as defined in Section 1.1 of the Indenture. This Indenture Supplement
shall be interpreted in accordance with the conventions set forth in Section 1.2 of the
Indenture.

 

(b)          Each
capitalized term defined herein relates only to Series 2012-7 and to no other Series. Whenever used in this Indenture Supplement,
the following words and phrases shall have the following meanings:

 

“Accumulation
Shortfall” means (a) for the first Payment Date during the Controlled Accumulation Period, zero; and (b) thereafter,
for any Payment Date during the Controlled Accumulation Period, the excess, if any, of the Controlled Deposit Amount for the previous
Payment Date over the amount deposited into the Principal Accumulation Account pursuant to Section 4.4(c)(i) for the previous
Payment Date.

 

“Addition
Date” means an “Addition Date” as such term is defined in the Transfer Agreement.

 

“Additional
Interest” means, for any Payment Date, Class A Additional Interest, Class B Additional Interest and Class C
Additional Interest for such Payment Date.

 

    	 

    	 

    

 

“Administration
Agreement” means the Administration Agreement, dated as of September 25, 2003, between the Administrator and the Issuer.

 

“Administrator”
means General Electric Capital Corporation, in its capacity as Administrator under the Administration Agreement or any other Person
designated as an Administrator under the Administration Agreement.

 

“Agreement”
is defined in the preamble.

 

“Allocation
Percentage” means, with respect to any date of determination in any Monthly Period, the percentage equivalent of a fraction:

 

(a)          the
numerator of which shall be equal to:

 

(i) for Principal
Collections during the Revolving Period and for Finance Charge Collections and Default Amounts at any time, the Collateral Amount
at the end of the last day of the prior Monthly Period (or, in the case of the first Monthly Period, on the Closing Date); or

 

(ii) for Principal
Collections during the Early Amortization Period and the Controlled Accumulation Period, the Collateral Amount at the end of the
last day of the Revolving Period; provided that on and after the date on which the Principal Accumulation Account Balance
equals the Note Principal Balance, the numerator shall equal zero; and

 

(b)          the
denominator of which shall be the greater of (x) the Aggregate Principal Receivables determined as of the close of business
on the last day of the prior Monthly Period (or, in the case of the first Monthly Period, on the Closing Date) and (y) the
sum of the numerators used to calculate the allocation percentages for allocations with respect to Finance Charge Collections,
Principal Collections or Default Amounts, as applicable, for all outstanding Series on such date of determination; provided
that if one or more Reset Dates occur in a Monthly Period, the denominator determined pursuant to clause (x) of this clause (b)
shall be (A) the Aggregate Principal Receivables as of the close of business on the last day of the prior Monthly Period for the
period from and including the first day of the current Monthly Period, to but excluding such Reset Date and (B) the Aggregate Principal
Receivables as of the close of business on such Reset Date, for the period from and including such Reset Date to the earlier of
the last day of such Monthly Period (in which case such period shall include such day) or the next succeeding Reset Date (in which
case such period shall not include such succeeding Reset Date); and provided, further, that notwithstanding the preceding
proviso, if a Reset Date occurs during any Monthly Period and the Issuer is permitted to make a single monthly deposit to the Collection
Account pursuant to Section 8.4 of the Indenture for such Monthly Period, then the denominator determined pursuant to clause
(x) of this clause (b) for each day during such Monthly Period shall equal the Average Principal Balance for such Monthly Period.

 

    	2

    	 

    

 

“Available
Finance Charge Collections” means, for any Monthly Period, an amount equal to the sum of (a) the Investor Finance Charge
Collections for such Monthly Period, (b) the Series 2012-7 Excess Finance Charge Collections for such Monthly Period, (c) Principal
Accumulation Investment Proceeds, if any, with respect to the related Transfer Date, (d) interest and earnings on funds on deposit
in the Reserve Account which will be deposited into the Finance Charge Account on the related Payment Date to be treated as Available
Finance Charge Collections pursuant to Section 4.10(a), and (e) amounts, if any, to be withdrawn from the Reserve Account
which will be deposited into the Finance Charge Account on the related Transfer Date to be treated as Available Finance Charge
Collections pursuant to Section 4.10(c).

 

“Available
Principal Collections” means, for any Monthly Period, an amount equal to the sum of (a) the Investor Principal Collections
for such Monthly Period, minus (b) the amount of Reallocated Principal Collections with respect to such Monthly Period which
pursuant to Section 4.7 are required to be applied on the related Payment Date, plus (c) the sum of (i) any
Shared Principal Collections with respect to other Principal Sharing Series (including any amounts on deposit in the Excess Funding
Account that are allocated to Series 2012-7 for application as Shared Principal Collections), (ii) the aggregate amount to be treated
as Available Principal Collections pursuant to Sections 4.4(a)(vi), (vii)
and (x), and (iii) during an Early Amortization Event, the amount
of Available Finance Charge Collections used to pay principal on the Notes pursuant to Section 4.4(a)(xiii) for the related
Payment Date.

 

“Available
Reserve Account Amount” means, for any Transfer Date, the lesser of (a) the amount on deposit in the Reserve Account
(after taking into account any interest and earnings retained in the Reserve Account pursuant to Section 4.10(a) on such
date, but before giving effect to any deposit made or to be made pursuant to Section 4.4(a)(viii) to the Reserve Account
on such date) and (b) the Required Reserve Account Amount.

 

“Available
Spread Account Amount” means, for any Transfer Date, an amount equal to the lesser of (a) the amount on deposit in the
Spread Account (exclusive of Investment Earnings on such date and before giving effect to any deposit to, or withdrawal from, the
Spread Account made or to be made with respect to such date) and (b) the Required Spread Account Amount, in each case on such Transfer
Date.

 

“Average Principal
Balance” means for any Monthly Period in which a Reset Date occurs, the sum of (i) the Aggregate Principal Receivables
determined as of the close of business on the last day of the prior Monthly Period, multiplied by a fraction the numerator
of which is the number of days from and including the first day of such Monthly Period, to but excluding the related Reset Date,
and the denominator of which is the number of days in such Monthly Period, and (ii) for each such Reset Date, the product of the
Aggregate Principal Receivables determined as of the close of business on such Reset Date, multiplied by a fraction, the
numerator of which is the number of days from and including such Reset Date, to the earlier of the last day of such Monthly Period
(in which case such period shall include such date) or the next succeeding Reset Date (in which case such period shall exclude
such date), and the denominator of which is the number of days in such Monthly Period.

 

“Base Rate”
means, for any Monthly Period, the annualized percentage (based on a 360-day year of twelve 30-day months, or in the case of the
initial Monthly Period, the actual number of days and a 360-day year) equivalent of a fraction, the numerator of which is equal
to the sum of (a) the Monthly Interest, (b) the amount required to be paid pursuant to Section 4.4(a)(i) and (c) the Noteholder
Servicing Fee, each with respect to the related Payment Date, and the denominator of which is the Collateral Amount plus amounts
on deposit in the Principal Accumulation Account, each as of the close of business on the last day of such Monthly Period.

 

    	3

    	 

    

 

“Benefit Plan”
means (i) an “employee benefit plan” as defined in Section 3(3) of ERISA, that is subject to Title I of ERISA, (ii)
a “plan” as defined in Section 4975 of the Code that is subject to Section 4975 of the Code, or (iii) an entity whose
underlying assets include plan assets by reason of investment by an employee benefit plan or plan in such entity.

 

“Business
Day” means any day that is not a Saturday, a Sunday or a day on which banks are required or permitted to be closed in
the State of New York or the State of Connecticut.

 

“Class A Additional
Interest” is defined in Section 4.1(a).

 

“Class A Deficiency
Amount” is defined in Section 4.1(a).

 

“Class A Monthly
Interest” is defined in Section 4.1(a).

 

“Class A Note
Initial Principal Balance” means $500,000,000.

 

“Class
A Note Interest Rate” means a per annum rate of 1.76%.

 

“Class A Note
Principal Balance” means, on any date of determination, an amount equal to (a) the Class A Note Initial Principal Balance,
minus (b) the aggregate amount of principal payments made to the Class A Noteholders on or prior to such date.

 

“Class A Noteholder”
means the Person in whose name a Class A Note is registered in the Note Register.

 

“Class A Notes”
means any one of the Notes executed by the Issuer and authenticated by or on behalf of the Indenture Trustee, substantially in
the form of Exhibit A-1.

 

“Class A Required
Amount” means, for any Payment Date, an amount equal to the excess of the amounts described in Sections 4.4(a)(i),
(ii) and (iii) over Available Finance Charge Collections applied to pay such amount pursuant to Section
4.4(a).

 

“Class B Additional
Interest” is defined in Section 4.1(b).

 

“Class B Deficiency
Amount” is defined in Section 4.1(b).

 

“Class B Monthly
Interest” is defined in Section 4.1(b).

 

“Class B Note
Initial Principal Balance” means $63,091,483.

 

“Class
B Note Interest Rate” means a per annum rate of 2.21%.

 

“Class B Note
Principal Balance” means, on any date of determination, an amount equal to (a) the Class B Note Initial Principal Balance,
minus (b) the aggregate amount of principal payments made to the Class B Noteholders on or prior to such date.

 

    	4

    	 

    

 

“Class B Noteholder”
means the Person in whose name a Class B Note is registered in the Note Register.

 

“Class B Notes”
means any one of the Notes executed by the Issuer and authenticated by or on behalf of the Indenture Trustee, substantially in
the form of Exhibit A-2.

 

“Class B Required
Amount” means, for any Payment Date, an amount equal to the excess of the amount described in Section 4.4(a)(iv)
over Available Finance Charge Collections applied to pay such amount pursuant to Section 4.4(a).

 

“Class C Additional
Interest” is defined in Section 4.1(c).

 

“Class C Deficiency
Amount” is defined in Section 4.1(c).

 

“Class C Monthly
Interest” is defined in Section 4.1(c).

 

“Class C Note
Initial Principal Balance” means $42,586,750.

 

“Class
C Note Interest Rate” means a per annum rate of 3.00%.

 

“Class C Note
Principal Balance” means, on any date of determination, an amount equal to (a) the Class C Note Initial Principal Balance,
minus (b) the aggregate amount of principal payments made to the Class C Noteholders on or prior to such date.

 

“Class C Noteholder”
means the Person in whose name a Class C Note is registered in the Note Register.

 

“Class C Note
Transfer” is defined in Section 2.2(b).

 

“Class C Notes”
means any one of the Notes executed by the Issuer and authenticated by or on behalf of the Indenture Trustee, substantially in
the form of Exhibit A-3.

 

“Class C Required
Amount” means with respect to any Payment Date, an amount equal to the excess of the amount described in Section 4.4(a)(v)
over Available Finance Charge Collections applied to pay such amount pursuant to Section 4.4(a).

 

“Closing Date”
means October 17, 2012.

 

“Collateral
Amount” means, as of any date of determination, an amount equal to the excess of (a) the Initial Collateral Amount, over
(b) the sum of (i) the amount of principal previously paid to the Series 2012-7 Noteholders (other than any principal payments
made from funds on deposit in the Spread Account), (ii) reductions in the Collateral Amount pursuant to Section 4.4(f),
(iii) the Principal Accumulation Account Balance, and (iv) the excess, if any, of the aggregate amount of Investor Charge-Offs
and Reallocated Principal Collections over the reimbursements of such amounts pursuant to Section 4.4(a)(vii) prior
to such date.

 

    	5

    	 

    

 

“Controlled
Accumulation Amount” means, for any Payment Date with respect to the Controlled Accumulation Period, $302,839,117; provided,
however, that if the Controlled Accumulation Period Length is determined to be more than or less than two months pursuant
to Section 4.13, the Controlled Accumulation Amount for each Payment Date with respect to the Controlled Accumulation Period
will be equal to (i) the initial Note Principal Balance divided by (ii) the Controlled Accumulation Period Length; provided,
further, that the Controlled Accumulation Amount for any Payment Date shall not exceed the Note Principal Balance minus
any amount already on deposit in the Principal Accumulation Account on such Payment Date.

 

“Controlled
Accumulation Period” means, unless an Early Amortization Event shall have occurred prior thereto, the period commencing
at the opening of business on June 22, 2019 or such other date as is determined in accordance with Section 4.13 and ending
on the first to occur of (a) the commencement of the Early Amortization Period and (b) the Final Payment Date.

 

“Controlled
Accumulation Period Length” is defined in Section 4.13.

 

“Controlled
Deposit Amount” means, for any Payment Date with respect to the Controlled Accumulation Period, an amount equal to the
sum of the Controlled Accumulation Amount for such Payment Date and any existing Accumulation Shortfall.

 

“Covered Amount”
means an amount, determined as of each Transfer Date for any Interest Period, equal to the sum of:

 

(a)          product
of (i) the Class A Monthly Interest and (ii) a fraction (A) the numerator of which is equal to the lesser of the Principal Accumulation
Account Balance and the Class A Note Principal Balance, each as of the last day of the calendar month preceding such Transfer Date,
and (B) the denominator of which is equal to the Class A Note Principal Balance as of the last day of the calendar month preceding
such Transfer Date;

 

(b)          product
of (i) the Class B Monthly Interest and (ii) a fraction (A) the numerator of which is equal to the lesser of (x) the excess of
the Principal Accumulation Account Balance over the Class A Note Principal Balance as of the last day of the calendar month preceding
such Transfer Date and (y) the Class B Note Principal Balance, as of the last day of the calendar month preceding such Transfer
Date, and (B) the denominator of which is equal to the Class B Note Principal Balance as of the last day of the calendar month
preceding such Transfer Date; and

 

(c)          product
of (i) the Class C Monthly Interest and (ii) a fraction (A) the numerator of which is equal to the lesser of (x) the excess of
the Principal Accumulation Account Balance over the sum of the Class A Note Principal Balance and the Class B Note Principal Balance,
each as of the last day of the calendar month preceding such Transfer Date and (y) the Class C Note Principal Balance as of the
last day of the calendar month preceding such Transfer Date, and (B) the denominator of which is equal to the Class C Note
Principal Balance as of the last day of the calendar month preceding such Transfer Date.

  

“Default Amount”
means, as to any Defaulted Account, the amount of Principal Receivables (other than Ineligible Receivables, unless there is an
Insolvency Event with respect to the Originator or the Transferor) in such Defaulted Account on the day it became a Defaulted Account.

 

    	6

    	 

    
  

“Defaulted
Account” means an Account in which there are Charged-Off Receivables.

 

“Dilution”
means any downward adjustment made by Servicer in the amount of any Transferred Receivable (a) because of a rebate, refund or billing
error to an accountholder, (b) because such Transferred Receivable was created in respect of merchandise which was refused or returned
by an accountholder or (c) for any other reason other than receiving Collections therefor or charging off such amount as uncollectible.

 

“Distribution
Account” means the account designated as such, established and owned by the Issuer and maintained in accordance with
Section 4.2.

 

“Early Amortization
Period” means the period commencing on the date on which a Trust Early Amortization Event or a Series 2012-7 Early Amortization
Event is deemed to occur and ending on the Final Payment Date.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended.

 

“Excess Collateral
Amount” means, at any time, the excess of (a) the sum of (i) the Collateral Amount, and (ii) the Principal Accumulation
Account Balance, over (b) the Note Principal Balance.

 

“Excess Spread
Percentage” means, for any Monthly Period, a percentage equal to (a) the Portfolio Yield for such Monthly Period, minus
(b) the Base Rate for such Monthly Period.

 

“Expected
Principal Payment Date” means the September 2019 Payment Date.

 

“Final Payment
Date” means the earliest to occur of (a) the date on which the Note Principal Balance is paid in full, (b) the date on
which the Collateral Amount is reduced to zero and (c) the Series Maturity Date.

 

“Finance Charge
Account” means the account designated as such, established and owned by the Issuer and maintained in accordance with
Section 4.2.

 

“Finance Charge
Shortfall” is defined in Section 4.8.

 

“Group One”
means Series 2012-7 and each other outstanding Series previously or hereafter specified in the related Indenture Supplement to
be included in Group One.

 

“Indenture”
is defined in the preamble.

 

“Indenture
Trustee” is defined in the preamble.

 

“Initial Collateral
Amount” means $630,914,827, which equals the sum of (i) the Class A Note Initial Principal Balance, (ii) the Class B
Note Initial Principal Balance, (iii) the Class C Note Initial Principal Balance and (iv) the Initial Excess Collateral Amount.

 

    	7

    	 

    

 

“Initial Excess
Collateral Amount” means $25,236,594.

 

“Interest
Period” means, for any Payment Date, the period from and including the Payment Date immediately preceding such Payment
Date (or, in the case of the first Payment Date, from and including the Closing Date) to but excluding such Payment Date.

 

“Investment
Earnings” means, for any Payment Date, all interest and earnings on Permitted Investments included in the Spread Account
(net of losses and investment expenses) during the period commencing on and including the Payment Date immediately preceding such
Payment Date and ending on but excluding such Payment Date.

 

“Investor
Charge-Offs” is defined in Section 4.6.

 

“Investor
Default Amount” means, for any Monthly Period, the sum for all Accounts that became Defaulted Accounts during such Monthly
Period, of the following amount: the product of (a) the Default Amount with respect to each such Defaulted Account and (b) the
Allocation Percentage on the day such Account became a Defaulted Account.

 

“Investor
Finance Charge Collections” means, for any Monthly Period, an amount equal to the aggregate amount of Finance Charge
Collections retained or deposited in the Finance Charge Account for Series 2012-7 pursuant to Section 4.3(b)(i) for such
Monthly Period.

 

“Investor
Principal Collections” means, for any Monthly Period, an amount equal to the aggregate amount of Principal Collections
retained or deposited in the Principal Account for Series 2012-7 pursuant to Section 4.3(b)(ii) for such Monthly Period.

 

“Investor
Uncovered Dilution Amount” means, for any Monthly Period, an amount equal to the product of (a) the Series Allocation
Percentage for such Monthly Period (determined on a weighted average basis, if a Reset Date occurs during that Monthly Period),
and (b) the aggregate Dilutions occurring during such Monthly Period as to which any deposit is required to be made hereunder but
has not been made, provided that, if the Free Equity Amount is greater than zero at the time the deposit referred to in
clause (b) is required to be made, the Investor Uncovered Dilution Amount shall be deemed to be zero.

 

“Issuer”
is defined in the preamble.

 

“Minimum Free
Equity Percentage” means, for purposes of Series 2012-7, 5.5%.

 

“Monthly Interest”
means, for any Payment Date, the sum of the Class A Monthly Interest, the Class B Monthly Interest and the Class C Monthly
Interest for such Payment Date.

 

“Monthly Period”
means, as to the November 2012 Payment Date, the period beginning on the Closing Date and ending on October 21, 2012, and as to
each Payment Date thereafter, the period beginning on the 22nd day of the second preceding calendar month and ending
on the 21st day of the immediately preceding calendar month.

 

“Monthly Principal”
is defined in Section 4.1(d).

 

    	8

    	 

    

 

“Monthly Principal
Reallocation Amount” means, for any Monthly Period, an amount equal to the sum of:

 

(a)          the
lesser of (i) the Class A Required Amount and (ii) 20.75% of the Initial Collateral Amount minus the sum of (x) the amount
of unreimbursed Investor Charge-Offs (after giving effect to Investor Charge-Offs for the related Monthly Period) and unreimbursed
Reallocated Principal Collections (as of the previous Payment Date) and (y) any reductions to the Collateral Amount pursuant to
Section 4.4(f), but not less than zero;

 

(b)          the
lesser of (i) the Class B Required Amount and (ii) 10.75% of the Initial Collateral Amount minus the sum of (x) the amount
of unreimbursed Investor Charge-Offs (after giving effect to Investor Charge-Offs for the related Monthly Period) and unreimbursed
Reallocated Principal Collections (as of the previous Payment Date and as required in clause (a) above) and (y) any reductions
to the Collateral Amount pursuant to Section 4.4(f), but not less than zero; and

 

(c)          the
lesser of (i) the Class C Required Amount and (ii) 4.00% of the Initial Collateral Amount minus the sum of (x) the amount
of unreimbursed Investor Charge-Offs after giving effect to Investor Charge-Offs for the related Monthly Period) and unreimbursed
Reallocated Principal Collections (as of the previous Payment Date and as required in clauses (a) and (b) above)
and (y) any reduction to the Collateral Amount pursuant to Section 4.4(f), but not less than zero.

 

“Note Purchase
Agreement” means the Note Purchase Agreement, dated as of October 17, 2012, between the Transferor and GE Capital, as
initial Class C Noteholder.

 

“Note Principal
Balance” means, on any date of determination, an amount equal to the sum of the Class A Note Principal Balance, the Class B
Note Principal Balance and the Class C Note Principal Balance.

 

“Noteholder
Servicing Fee” means, for any Transfer Date, an amount equal to one-twelfth of the product of (a) the Series Servicing
Fee Percentage and (b) the Collateral Amount as of the last day of the Monthly Period preceding such Transfer Date; provided,
however, that with respect to the first Transfer Date, the Noteholder Servicing Fee shall be calculated based on the Collateral
Amount as of the Closing Date and shall be pro rated for the number of days in the first Monthly Period.

 

“Payment Date”
means November 15, 2012 and the 15th day of each calendar month thereafter, or if such 15th day is not a
Business Day, the next succeeding Business Day.

 

“Percentage
Allocation” is defined in Section 4.3(b)(ii)(y).

 

“Portfolio
Yield” means, for any Monthly Period, the annualized percentage (based on a 360-day year of twelve 30-day months, or
in the case of the initial Monthly Period, the actual number of days and a 360-day year) equivalent of a fraction, (a) the numerator
of which is equal to the excess of (i) the Available Finance Charge Collections (excluding any Excess Finance Charge Collections),
over (ii) the Investor Default Amount and the Investor Uncovered Dilution Amount for such Monthly Period and (b) the denominator
of which is the Collateral Amount plus amounts on deposit in the Principal Accumulation Account, each as of the close of business
on the last day of such Monthly Period.

 

    	9

    	 

    

 

“Principal
Account” means the account designated as such, established and owned by the Issuer and maintained in accordance with
Section 4.2.

 

“Principal
Accumulation Account” means the account designated as such, established and owned by the Issuer and maintained in accordance
with Section 4.2.

 

“Principal
Accumulation Account Balance” means, for any date of determination, the principal amount, if any, on deposit in the Principal
Accumulation Account on such date of determination.

 

“Principal
Accumulation Investment Proceeds” means, with respect to each Transfer Date, the investment earnings on funds in the
Principal Accumulation Account (net of investment expenses and losses) for the period from and including the immediately preceding
Transfer Date to but excluding such Transfer Date.

 

“Principal
Shortfall” is defined in Section 4.9.

 

“Quarterly
Excess Spread Percentage” means (a) with respect to the January 2013 Payment Date, the percentage equivalent of a fraction
the numerator of which is the sum of (i) the Excess Spread Percentage for the Monthly Period relating to the December 2012 Payment
Date and (ii) the Excess Spread Percentage for the Monthly Period relating to the January 2013 Payment Date and the denominator
of which is two, and (b) with respect to the February 2013 Payment Date and each Payment Date thereafter, the percentage equivalent
of a fraction the numerator of which is the sum of the Excess Spread Percentages determined with respect to the Monthly Periods
relating to such Payment Date and the immediately preceding two Payment Dates and the denominator of which is three.

 

“Rating Agency”
means, as of any date and with respect to any Class of the Series 2012-7 Notes, the nationally recognized statistical rating organizations
that have been requested by the Transferor to provide ratings of such class and that are rating the Series 2012-7 Notes on such
date.

 

“Rating Agency
Condition” means, with respect to Series 2012-7 and any action, (i) that Moody’s and S&P shall have notified
the Issuer in writing that such action will not result in a reduction or withdrawal of the rating, if any, of any outstanding Class
with respect to which Moody’s or S&P, respectively, is a Rating Agency or (ii) with respect to any outstanding Class
with respect to which Fitch is a Rating Agency, 10 days’ prior written notice (or, if 10 days’ advance notice is impracticable,
as much advance notice as is practicable) delivered electronically to each applicable Rating Agency as provided in Section 8.7.

 

“Reallocated
Principal Collections” is defined in Section 4.7.

 

“Reassignment
Amount” means, with respect to Series 2012-7, the Redemption Amount.

 

    	10

    	 

    

 

“Redemption
Amount” means, for any Transfer Date, after giving effect to any deposits and payments otherwise to be made on the related
Payment Date, the sum of (i) the Note Principal Balance on such Payment Date, (ii) Monthly Interest for such Payment Date and any
Monthly Interest previously due but not distributed to the Series 2012-7 Noteholders and (iii) the amount of Additional Interest,
if any, for the related Payment Date and any Additional Interest previously due but not distributed to the Series 2012-7 Noteholders
on a prior Payment Date.

 

“Reference
Banks” means four major banks in the London interbank market selected by the Servicer.

 

“Removal Date”
means a “Removal Date” as such term is defined in the Transfer Agreement.

 

“Required
Excess Collateral Amount” means, at any time, 4.00% of the Collateral Amount; provided that:

 

(a)          except
as provided in clause (c), the Required Excess Collateral Amount shall never be less than 3.00% of the Initial Collateral
Amount;

 

(b)          except
as provided in clause (c), the Required Excess Collateral Amount shall not decrease during an Early Amortization Period;
and

 

(c)          the
Required Excess Collateral Amount shall never be greater than the excess of the Note Principal Balance over the balance on deposit
in the Principal Accumulation Account.

 

“Required
Reserve Account Amount” means, for any Transfer Date on or after the Reserve Account Funding Date, an amount equal to
(a) 0.50% of the Note Principal Balance or (b) any other amount designated by the Issuer; provided,
however, that if such designation is of a lesser amount, the Issuer shall (i) provide the Indenture Trustee with
evidence that the Rating Agency Condition shall have been satisfied and (ii) deliver to the Indenture Trustee a certificate of
an Authorized Officer to the effect that, based on the facts known to such officer at such time, in the reasonable belief of the
Issuer, such designation will not cause an Early Amortization Event or an event that, after the giving of notice or the lapse of
time, would cause an Early Amortization Event to occur with respect to Series 2012-7; provided, further, however,
that at any time during which the Controlled Accumulation Period Length is equal to one month, the Required Reserve Account Amount
shall be equal to $0.00.

 

“Required
Spread Account Amount” means, for the November 2012 Payment Date and the December 2012 Payment Date, zero, and for any
Payment Date thereafter, the product of (i) the Spread Account Percentage in effect on such date and (ii) during (x) the Revolving
Period, the Collateral Amount, and (y) during the Controlled Accumulation Period or the Early Amortization Period, the Collateral
Amount as of the last day of the Revolving Period; provided that, prior to the occurrence of an Event of Default and acceleration
of the Series 2012-7 Notes, the Required Spread Account Amount will never exceed the Class C Note Principal Balance (after taking
into account any payments to be made on such Payment Date).

 

    	11

    	 

    

 

“Reserve Account”
means the account designated as such, established and owned by the Issuer and maintained in accordance with Section 4.2.

 

“Reserve Account
Funding Date” means the Payment Date selected by the Servicer on behalf of the Issuer which occurs not later than the
earliest of the Payment Date with respect to the Monthly Period which commences three months prior to the commencement of the Controlled
Accumulation Period (which commencement shall be subject to postponement pursuant to Section 4.13); provided, however,
that if the Rating Agency Condition is satisfied, the Issuer may postpone the Reserve Account Funding Date.

 

“Reserve Account
Surplus” means, as of any Transfer Date following the Reserve Account Funding Date, the amount, if any, by which the
amount on deposit in the Reserve Account exceeds the Required Reserve Account Amount.

 

“Reserve Draw
Amount” means, with respect to each Transfer Date relating to the Controlled Accumulation Period or the first Transfer
Date relating to the Early Amortization Period, the amount, if any, by which the Principal Accumulation Investment Proceeds for
such Payment Date are less than the Covered Amount determined as of such Transfer Date.

 

“Reset Date”
means:

 

(a)          each
Addition Date;

 

(b)          each
Removal Date on which, if any Series of Notes has been paid in full, Principal Receivables for that Series are removed from the
Trust;

 

(c)          each
date on which there is an increase in the outstanding balance of any Variable Interest; and

 

(d)          each
date on which a new Series or Class of Notes is issued.

 

“Revolving
Period” means the period beginning on the Closing Date and ending at the close of business on the day immediately preceding
the earlier of the day the Controlled Accumulation Period commences or the day the Early Amortization Period commences.

 

“Series Accounts”
means, collectively, the Finance Charge Account, the Principal Account, the Principal Accumulation Account, the Distribution Account,
the Reserve Account and the Spread Account.

 

“Series Allocation
Percentage” means, with respect to any Monthly Period, the percentage equivalent of a fraction, the numerator of which
is the numerator used in determining the Allocation Percentage for Finance Charge Collections for that Monthly Period and the denominator
of which is the sum of the numerators used in determining the Allocation Percentage for Finance Charge Collections for all outstanding
Series on such date of determination; provided that if one or more Reset Dates occur in a Monthly Period, the Series Allocation
Percentage for the portion of the Monthly Period falling on and after each such Reset Date and prior to any subsequent Reset Date
will be determined using a denominator which is equal to the sum of the numerators used in determining the Allocation Percentage
for Finance Charge Collections for all outstanding Series as of the close of business on the subject Reset Date.

 

    	12

    	 

    

 

“Series Maturity
Date” means, with respect to Series 2012-7, the September 2022 Payment Date.

 

“Series Servicing
Fee Percentage” means 2% per annum.

 

“Series 2012-7”
means the Series of Notes the terms of which are specified in this Indenture Supplement.

 

“Series 2012-7
Early Amortization Event” is defined in Section 6.1.

 

“Series 2012-7
Excess Finance Charge Collections” means Excess Finance Charge Collections allocated from other Series in Group One to
Series 2012-7 pursuant to Section 8.6 of the Indenture.

 

“Series 2012-7
Note” means a Class A Note, a Class B Note or a Class C Note.

 

“Series 2012-7
Noteholder” means a Class A Noteholder, a Class B Noteholder or a Class C Noteholder.

 

“Similar Law”
means any applicable law that is substantially similar to the fiduciary responsibility provisions of ERISA or Section 4975 of the
Code.

 

“Spread Account”
means the account designated as such, established and owned by the Issuer and maintained in accordance with Section 4.2.

 

“Spread Account
Deficiency” means the excess, if any, of the Required Spread Account Amount over the Available Spread Account Amount.

 

“Spread Account
Percentage” means, (i) 0% if the Quarterly Excess Spread Percentage on such Payment Date is greater than or equal to
5.00%, (ii) 2.00% if the Quarterly Excess Spread Percentage on such Payment Date is less than 5.00% and greater than or equal to
4.50%, (iii) 2.50% if the Quarterly Excess Spread Percentage on such Payment Date is less than 4.50% and greater than or equal
to 4.00%, (iv) 3.50% if the Quarterly Excess Spread Percentage on such Payment Date is less than 4.00% and greater than or equal
to 3.50%, (v) 4.50% if the Quarterly Excess Spread Percentage on such Payment Date is less than 3.50% and greater than or equal
to 3.00%, (vi) 5.50% if the Quarterly Excess Spread Percentage on such Payment Date is less than 3.00% and greater than or equal
to 2.50%, (vii) 6.50% if the Quarterly Excess Spread Percentage on such Payment Date is less than 2.50% and greater than or equal
to 1.50%, (viii) 7.50% if the Quarterly Excess Spread Percentage on such Payment Date is less than 1.50% and greater than or equal
to 0.50% and (ix) 8.50% if the Quarterly Excess Spread Percentage on such Payment Date is less than 0.50%.

 

“Surplus Collateral
Amount” means, with respect to any Payment Date, the excess, if any, of the Excess Collateral Amount over the Required
Excess Collateral Amount, in each case calculated after giving effect to any deposits into the Principal Accumulation Account and
payments of principal on such Payment Date, but before giving effect to any reduction in the Collateral Amount on such Payment
Date pursuant to Section 4.4(f).

 

    	13

    	 

    

 

“Target Amount”
is defined in Section 4.3(b)(i).

 

“Trust”
is defined in the preamble.

 

SECTION 1.2. Incorporation
of Terms. The terms of the Indenture are incorporated in this Supplement as if set forth in full herein. As supplemented by
this Supplement, the Indenture is in all respects ratified and confirmed and both together shall be read, taken and construed as
one and the same agreement. If the terms of this Supplement and the terms of the Indenture conflict, the terms of this Supplement
shall control with respect to the Series 2012-7.

 

ARTICLE
II

Creation of the Series 2012-7 Notes

 

SECTION 2.1. Designation.

 

(a)          There
is hereby created and designated a Series of Notes to be issued pursuant to the Indenture and this Indenture Supplement to be known
as “GE Capital Credit Card Master Note Trust, Series 2012-7” or the “Series 2012-7 Notes.”
The Series 2012-7 Notes shall be issued in three Classes, known as the “Class A Series 2012-7 Fixed Rate Asset Backed
Notes”, the “Class B Series 2012-7 Fixed Rate Asset Backed Notes” and the “Class C Series
2012-7 Fixed Rate Asset Backed Notes.”

 

(b)          Series
2012-7 shall be included in Group One and shall be a Principal Sharing Series. Series 2012-7 shall be an Excess Allocation Series
with respect to Group One only. Series 2012-7 shall not be subordinated to any other Series.

 

(c)          The
Series 2012-7 Class A Notes shall be issued in minimum denominations of $100,000 and in integral multiples of $1,000 and the Class
B Notes and the Class C Notes shall be issued in minimum denominations of $100,000 and in integral multiples of $1.

 

SECTION 2.2. Transfer
Restrictions Applicable to the Class C Notes.

 

(a)          The
Class C Notes have not been registered under the Securities Act or any state securities law. None of the Issuer, the Note
Registrar or the Indenture Trustee is obligated to register the Class C Notes under the Securities Act or any other securities
or “blue sky” laws or to take any other action not otherwise required under this Indenture Supplement or the Trust
Agreement to permit the transfer of any Class C Note without registration.

 

(b)          Until
such time as any such Class of Notes has been registered under the Securities Act and any applicable state securities law, the
Class C Notes may not be sold, transferred, assigned, participated, pledged or otherwise disposed of (any such act, a “Class C
Note Transfer”) to any Person except in accordance with the provisions of this Section 2.2, and any attempted
Class C Note Transfer in violation of this Section 2.2 will be null and void.

 

    	14

    	 

    

 

(c)          Each
Class C Note will bear a legend to the effect of the following unless determined otherwise by the Administrator (as certified
to the Indenture Trustee in an Officer’s Certificate) consistent with applicable law:

 

THIS NOTE
HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT AS SET FORTH IN THE NEXT SENTENCE. BY ITS ACQUISITION HEREOF
OR OF A BENEFICIAL INTEREST HEREIN, THE HOLDER OF THIS NOTE:

 

(1)   AGREES
FOR THE BENEFIT OF THE ISSUER AND THE TRANSFEROR THAT THIS NOTE MAY BE SOLD, TRANSFERRED, ASSIGNED, PARTICIPATED, PLEDGED OR OTHERWISE
DISPOSED OF ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS, AND ONLY (I) PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER,
WITHIN THE MEANING OF RULE l44A (A “QIB”), PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB, WHOM
THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE, PLEDGE, OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A,
OR (II) TO THE DEPOSITOR OR ITS AFFILIATES, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES;
AND

 

(2)   AGREES
THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE OR AN INTEREST HEREIN IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT
OF THIS LEGEND.

 

(d)          By
acceptance of any Class C Note, the Class C Noteholder specifically agrees with and represents to the Transferor, the
Issuer and the Note Registrar, that no Class C Note Transfer will be made unless (i) the registration requirements of the
Securities Act and any applicable state securities laws have been complied with, (ii) such Class C Note Transfer is to the
Transferor or its Affiliates, or (iii) such Class C Note Transfer is exempt from the registration requirements under the Securities
Act because such Class C Note Transfer is in compliance with Rule 144A under the Securities Act, to a transferee who the transferor
reasonably believes is a QIB that is purchasing for its own account or for the account of a QIB and to whom notice is given that
such Class C Note Transfer, as applicable, is being made in reliance upon Rule 144A under the Securities Act.

 

(e)          The
Issuer will make available to the prospective transferor and transferee of a Class C Note information requested to satisfy
the requirements of paragraph (d)(4) of Rule 144A.

 

    	15

    	 

    

 

(f)          Each
Class A Note, Class B Note and Class C Note will bear a legend to the effect of the following unless determined otherwise
by the Administrator (as certified to the Indenture Trustee in an Officer’s Certificate) consistent with applicable law:

 

THE HOLDER
OF THIS NOTE BY ITS ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST THEREIN, SHALL BE DEEMED TO REPRESENT AND
WARRANT THAT EITHER (I) SUCH HOLDER IS NOT (AND FOR SO LONG AS IT HOLDS SUCH NOTE WILL NOT BE), IS NOT ACTING ON BEHALF OF (AND
FOR SO LONG AS IT HOLDS SUCH NOTE WILL NOT BE ACTING ON BEHALF OF), AND IS NOT INVESTING THE ASSETS OF (A) AN "EMPLOYEE BENEFIT
PLAN" (AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"))
THAT IS SUBJECT TO TITLE I OF ERISA, (B) A "PLAN" (AS DEFINED IN SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED (THE "CODE")) THAT IS SUBJECT TO SECTION 4975 OF THE CODE, (C) AN ENTITY WHOSE UNDERLYING ASSETS ARE DEEMED TO
BE PLAN ASSETS OF A PLAN DESCRIBED IN (A) OR (B) ABOVE (EACH, A “BENEFIT PLAN”) OR (D) A GOVERNMENTAL PLAN, CHURCH
PLAN OR NON-U.S. PLAN THAT IS SUBJECT TO ANY APPLICABLE LAW THAT IS SUBSTANTIALLY SIMILAR TO THE FIDUCIARY RESPONSIBILITY PROVISIONS
OF ERISA OR SECTION 4975 OF THE CODE (“SIMILAR LAW”) OR (II) ITS ACQUISITION, CONTINUED HOLDING AND DISPOSITION OF
THIS NOTE WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER ERISA OR SECTION 4975 OF THE CODE OR A VIOLATION OF ANY
SIMILAR LAW. BENEFIT PLANS MAY NOT ACQUIRE THIS NOTE AT ANY TIME THAT THIS NOTE DOES NOT HAVE A CURRENT INVESTMENT GRADE RATING
FROM A NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION.

 

ARTICLE
III

REPRESENTATIONS, WARRANTIES and Covenants

 

SECTION 3.1. Representations,
Warranties and Covenants with respect to Receivables. The parties hereto agree that the representations, warranties and covenants
set forth in Schedule I shall be a part of this Indenture Supplement for all purposes.

 

SECTION 3.2. Representations,
Warranties and Covenants with respect to ERISA. By acquiring a Series 2012-7 Note (or interest therein), each purchaser and
subsequent transferee shall be deemed to represent and warrant that either (i) it is not (and for so long as it holds such Series
2012-7 Note will not be), is not acting on behalf of (and for so long as it holds such Series 2012-7 Note will not be acting on
behalf of), and is not investing the assets of a Benefit Plan or a governmental plan, church plan or non-U.S. plan that is subject
to any Similar Law or (ii) its acquisition, continued holding and disposition of such Series 2012-7 Note will not result in a non-exempt
prohibited transaction under ERISA or Section 4975 of the Code or a violation of any Similar Law. Benefit Plans may not acquire
the Series 2012-7 Notes at any time that the Series 2012-7 Notes do not have a current investment grade rating from a nationally
recognized statistical rating organization.

 

    	16

    	 

    

 

ARTICLE
IV

Rights of Series 2012-7 Noteholders and Allocation and Application of Collections

 

SECTION 4.1. Determination
of Interest and Principal.

 

(a)          The
amount of monthly interest (“Class A Monthly Interest”) due and payable with respect to the Class A Notes on
any Payment Date shall be an amount equal to the product of (i) a fraction, the numerator of which is 30 (but in the case of the
initial Interest Period, 28) and the denominator of which is 360 , (ii) the Class A Note Interest Rate in effect with respect to
the related Interest Period and (iii) the Class A Note Principal Balance as of the close of business on the last day of the preceding
Monthly Period (or, with respect to the initial Payment Date, the Class A Note Initial Principal Balance).

 

With respect to each
Payment Date, the Issuer shall determine the excess, if any (the “Class A Deficiency Amount”), of (x) the aggregate
amount of Class A Monthly Interest payable pursuant to this Section 4.1(a) as of the prior Payment Date over (y)
the amount of Class A Monthly Interest actually paid on such Payment Date. If the Class A Deficiency Amount for any Payment Date
is greater than zero, on each subsequent Payment Date until such Class A Deficiency Amount is fully paid, an additional amount
(“Class A Additional Interest”) equal to the product of (i) a fraction, the numerator of which is 30 and the
denominator of which is 360, (ii) the Class A Note Interest Rate in effect with respect to the related Interest Period plus
2% per annum and (iii) such Class A Deficiency Amount (or the portion thereof which has not been paid to the Class A Noteholders)
shall be payable as provided herein with respect to the Class A Notes. Notwithstanding anything to the contrary herein, Class A
Additional Interest shall be payable or distributed to the Class A Noteholders only to the extent permitted by applicable law.

 

(b)          The
amount of monthly interest (“Class B Monthly Interest”) due and payable with respect to the Class B Notes on
any Payment Date shall be an amount equal to the product of (i) a fraction, the numerator of which is 30 (but in the case of the
initial Interest Period, 28) and the denominator of which is 360, (ii) the Class B Note Interest Rate in effect with respect to
the related Interest Period and (iii) the Class B Note Principal Balance as of the close of business on the last day of the preceding
Monthly Period (or, with respect to the initial Payment Date, the Class B Note Initial Principal Balance).

 

With respect to each
Payment Date, the Issuer shall determine the excess, if any (the “Class B Deficiency Amount”), of (x) the aggregate
amount of Class B Monthly Interest payable pursuant to this Section 4.1(b) as of the prior Payment Date over (y)
the amount of Class B Monthly Interest actually paid on such Payment Date. If the Class B Deficiency Amount for any Payment Date
is greater than zero, on each subsequent Payment Date until such Class B Deficiency Amount is fully paid, an additional amount
(“Class B Additional Interest”) equal to the product of (i) a fraction, the numerator of which is 30 and the
denominator of which is 360, (ii) the Class B Note Interest Rate in effect with respect to the related Interest Period plus
2% per annum and (iii) such Class B Deficiency Amount (or the portion thereof which has not been paid to the Class B Noteholders)
shall be payable as provided herein with respect to the Class B Notes. Notwithstanding anything to the contrary herein, Class B
Additional Interest shall be payable or distributed to the Class B Noteholders only to the extent permitted by applicable law.

 

    	17

    	 

    

 

(c)          The
amount of monthly interest (“Class C Monthly Interest”) due and payable with respect to the Class C Notes on
any Payment Date shall be an amount equal to the product of (i) a fraction, the numerator of which is 30 (but in the case of the
initial Interest Period, 28) and the denominator of which is 360, (ii) the Class C Note Interest Rate in effect with respect to
the related Interest Period and (iii) the Class C Note Principal Balance as of the close of business on the last day of the preceding
Monthly Period (or, with respect to the initial Payment Date, the Class C Note Initial Principal Balance).

 

With respect to each
Payment Date, the Issuer shall determine the excess, if any (the “Class C Deficiency Amount”), of (x) the
aggregate amount of Class C Monthly Interest payable pursuant to this Section 4.1(c) as of the prior Payment Date over
(y) the amount of Class C Monthly Interest actually paid on such Payment Date. If the Class C Deficiency Amount for any Payment
Date is greater than zero, on each subsequent Payment Date until such Class C Deficiency Amount is fully paid, an additional amount
(“Class C Additional Interest”) equal to the product of (i) a fraction, the numerator of which is 30 and the
denominator of which is 360, (ii) the Class C Note Interest Rate in effect with
respect to the related Interest Period plus 2% per annum and (iii) such Class C Deficiency Amount (or the portion thereof
which has not been paid to the Class C Noteholders) shall be payable as provided herein with respect to the Class C Notes. Notwithstanding
anything to the contrary herein, Class C Additional Interest shall be payable or distributed to the Class C Noteholders only
to the extent permitted by applicable law.

 

(d)          The
amount of monthly principal to be transferred from the Principal Account with respect to the Notes on each Payment Date (the “Monthly
Principal”), beginning with the Payment Date in the Monthly Period following the Monthly Period in which the Controlled
Accumulation Period or, if earlier, the Early Amortization Period, begins, shall be equal to the least of (i) the Available Principal
Collections on deposit in the Principal Account with respect to the related Monthly Period, (ii) for each Payment Date with respect
to the Controlled Accumulation Period, the Controlled Deposit Amount for such Payment Date, (iii) the Collateral Amount (after
taking into account any adjustments to be made on such Payment Date pursuant to Sections 4.6 and 4.7) prior to any
deposit into the Principal Accumulation Account on such Payment Date, and (iv) the Note Principal Balance, minus any amount already
on deposit in the Principal Accumulation Account on such Payment Date.

 

SECTION 4.2. Establishment
of Accounts.

 

(a)          As
of the Closing Date, the Issuer covenants to have established and shall thereafter maintain the Finance Charge Account, the Principal
Account, the Principal Accumulation Account, the Distribution Account, the Reserve Account and the Spread Account, each of which
shall be an Eligible Deposit Account.

 

(b)          If
the depositary institution wishes to resign as depositary of any of the Series Accounts for any reason or fails to carry out the
instructions of the Issuer for any reason, then the Issuer shall promptly notify the Indenture Trustee on behalf of the Noteholders.

 

    	18

    	 

    

 

(c)          On
or before the Closing Date, the Issuer shall enter into a depositary agreement to govern the Series Accounts pursuant to which
such accounts are continuously identified in the depositary institution’s books and records as subject to a security interest
in favor of the Indenture Trustee on behalf of the Noteholders and, except as may be expressly provided herein to the contrary,
in order to perfect the security interest of the Indenture Trustee on behalf of the Noteholders under the UCC, the Indenture Trustee
on behalf of the Noteholders shall have the power to direct disposition of the funds in the Series Accounts without further consent
by the Issuer; provided however, that prior to the delivery by the Indenture Trustee on behalf of the Noteholders
of notice otherwise, the Issuer shall have the right to direct the disposition of funds in the Series Accounts; provided
further that the Indenture Trustee on behalf of the Noteholders agrees that it will not deliver such notice or exercise
its power to direct disposition of the funds in the Series Accounts unless an Event of Default has occurred and is continuing.

 

(d)          The
Issuer shall not close any of the Series Accounts unless it shall have (i) received the prior consent of the Indenture Trustee
on behalf of the Noteholders, (ii) established a new Eligible Deposit Account with the depositary institution or with a new depositary
institution satisfactory to the Indenture Trustee on behalf of the Noteholders, (iii) entered into a depositary agreement to govern
such new account(s) with such new depositary institution which agreement is satisfactory in all respects to the Indenture Trustee
on behalf of the Noteholders (whereupon such new account(s) shall become the applicable Series Account(s) for all purposes of this
Indenture Supplement), and (iv) taken all such action as the Indenture Trustee on behalf of the Noteholders shall reasonably require
to grant and perfect a first priority security interest in such account(s) under this Indenture Supplement.

 

SECTION 4.3. Calculations
and Series Allocations.

 

(a)          Allocations.
Finance Charge Collections, Principal Collections and Charged-Off Receivables allocated to Series 2012-7 pursuant to Article
VIII of the Indenture shall be allocated and distributed as set forth in this Article. Notwithstanding anything to the contrary
in Section 4.3(b), during any period when the Issuer is permitted by Section 8.4 of the Indenture to make a single
monthly deposit to the Collection Account, amounts allocated to the Noteholders pursuant to Section 4.3(b) with respect
to any Monthly Period need not be deposited into the Collection Account or any Series Account prior to the related Payment Date,
and, when so deposited, (x) may be deposited net of any amounts required to be distributed to Transferor and, if GE Capital or
an Affiliate thereof is Servicer, any amounts owed to the Servicer, and (y) shall be deposited into the Finance Charge Account
(in the case of Collections of Finance Charge Receivables) and the Principal Account (in the case of Collections of Principal Receivables
(not including any Shared Principal Collections allocated to Series 2012-7 pursuant to Section 8.5 of the Indenture)).

 

(b)          Allocations
to the Series 2012-7 Noteholders. The Issuer shall on each Date of Processing, allocate to the Series 2012-7 Noteholders the
following amounts as set forth below:

 

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(i)          Allocations
of Finance Charge Collections. The Issuer shall allocate to the Series 2012-7 Noteholders an amount equal to the product of
(A) the Allocation Percentage and (B) the aggregate Finance Charge Collections processed on such Date of Processing and, subject
to Section 4.15, shall deposit such amount into the Finance Charge Account; provided that, with respect to each Monthly
Period falling in the Revolving Period (and with respect to that portion of each Monthly Period in the Controlled Accumulation
Period falling on or after the day on which Collections of Principal Receivables equal to the related Controlled Deposit Amount
have been allocated pursuant to Section 4.3(b)(ii) and deposited pursuant to Section 4.3(a)), Collections
of Finance Charge Receivables shall be transferred into the Finance Charge Account only until such time as the aggregate amount
so deposited equals the sum (the “Target Amount”) of (A) the fees payable to the Indenture Trustee, the Trustee
and the Administrator on the related Payment Date, (B) the Monthly Interest on the related Payment Date, (C) if GE Capital or an
Affiliate thereof is not the Servicer, the Noteholder Servicing Fee (and if GE Capital or an Affiliate thereof is the Servicer,
then the Issuer covenants to pay directly to the Servicer as payment of the Noteholder Servicing Fee amounts that otherwise would
have been transferred into the Finance Charge Account pursuant to this clause (C)),
and (D) any amount required to be deposited in the Reserve Account and the Spread Account on the related Payment Date; provided
further, that, notwithstanding the preceding proviso, if on any Business Day the Issuer determines that the Target Amount
for a Monthly Period exceeds the Target Amount for that Monthly Period as previously calculated by Issuer, then (x) Issuer shall
(on the same Business Day) inform Transferor of such determination, and (y) within two Business Days thereafter cause Transferor
to deposit into the Finance Charge Account funds in an amount equal to the amount of Collections of Finance Charge Receivables
allocated to the Noteholders for that Monthly Period but not deposited into the Finance Charge Account due to the operation of
the preceding proviso (but not in excess of the amount required so that the aggregate amount deposited for the subject Monthly
Period equals the Target Amount); and provided, further, that if on any Transfer Date the Free Equity Amount
is less than the Minimum Free Equity Amount after giving effect to all transfers and deposits on that Transfer Date, the Issuer
shall cause Transferor, on that Transfer Date, to deposit into the Principal Account funds in an amount equal to the amounts of
Available Finance Charge Collections that are required to be treated as Available Principal Collections pursuant to Section 4.4(a)(vi)
and (vii) but are not available from funds in the Finance Charge Account as a result of the operation of the second preceding
proviso.

 

With respect to any
Monthly Period when deposits of Collections of Finance Charge Receivables into the Finance Charge Account are limited to deposits
up to the Target Amount in accordance with clause (i) above, notwithstanding such limitation: (1) “Reallocated
Principal Collections” for the related Transfer Date shall be calculated as if the full amount of Finance Charge Collections
allocated to the Series 2012-7 Noteholders during that Monthly Period had been deposited in the Finance Charge Account and applied
on the related Payment Date in accordance with Section 4.4(a); and (2) Collections of Finance Charge Receivables released
to Transferor pursuant to clause (i) above shall be deemed, for purposes of all calculations under this Indenture Supplement,
to have been applied to the items specified in Section 4.4(a) to which such amounts would have been applied (and in the
priority in which they would have been applied) had such amounts been available in the Finance Charge Account on the related Payment
Date. To avoid doubt, the calculations referred to in the preceding clause (2) include the calculations required by clause
(b)(iv) of the definition of Collateral Amount.

 

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(ii)         Allocations
of Principal Collections. The Issuer shall allocate to the Series 2012-7 Noteholders the following amounts as set forth below:

 

(x)          Allocations
During the Revolving Period.

 

(1)         During
the Revolving Period an amount equal to the product of the Allocation Percentage and the aggregate amount of Principal Collections
processed on such Date of Processing, shall be allocated to the Series 2012-7 Noteholders and first, if any other Principal Sharing
Series is outstanding and in its accumulation period or amortization period, retained in the Principal Account for application,
to the extent necessary, as Shared Principal Collections to other Principal Sharing Series on the related Payment Date, second
deposited in the Excess Funding Account to the extent necessary so that the Free Equity Amount is not less than the Minimum Free
Equity Amount and third paid to the holders of the Transferor Interest.

 

(2)         With
respect to each Monthly Period falling in the Revolving Period, to the extent that Collections of Principal Receivables allocated
to the Series 2012-7 Noteholders pursuant to this Section 4.3(b)(ii) are paid to Transferor, the Issuer shall cause Transferor
to make an amount equal to the Reallocated Principal Collections for the related Transfer Date available on that Transfer Date
for application in accordance with Section  4.7.

 

(y)          Allocations
During the Controlled Accumulation Period. During the Controlled Accumulation Period an amount equal to the product of the
Allocation Percentage and the aggregate amount of Principal Collections processed on such Date of Processing (the product for any
such date is hereinafter referred to as a “Percentage Allocation”) shall be allocated to the Series 2012-7 Noteholders
and transferred to the Principal Account until applied as provided herein; provided,
however, that if the sum of such Percentage Allocation and all preceding Percentage Allocations with respect to the
same Monthly Period exceeds the Controlled Deposit Amount during the Controlled Accumulation Period for the related Payment Date,
then such excess shall not be treated as a Percentage Allocation and shall be first, if any other Principal Sharing Series is outstanding
and in its accumulation period or amortization period, retained in the Principal Account for application, to the extent necessary,
as Shared Principal Collections to other Principal Sharing Series on the related Payment Date, second deposited in the Excess Funding
Account to the extent necessary so that the Free Equity Amount is not less than the Minimum Free Equity Amount and third paid to
the holders of the Transferor Interest.

 

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(z)          Allocations
During the Early Amortization Period. During the Early Amortization Period, an amount equal to the product of the Allocation
Percentage and the aggregate amount of Principal Collections processed on such Date of Processing shall be allocated to the Series
2012-7 Noteholders and transferred to the Principal Account until applied as provided herein; provided, however,
that after the date on which an amount of such Principal Collections equal to the Note Principal Balance has been deposited into
the Principal Account such amount shall be first, if any other Principal Sharing Series is outstanding and in its accumulation
period or amortization period, retained in the Principal Account for application, to the extent necessary, as Shared Principal
Collections to other Principal Sharing Series on the related Payment Date, second deposited in the Excess Funding Account to the
extent necessary so that the Free Equity Amount is not less than the Minimum Free Equity Amount and third paid` to the holders
of the Transferor Interest.

 

SECTION 4.4. Application
of Available Finance Charge Collections and Available Principal Collections. On or prior to each Transfer Date or related Payment
Date, as applicable, the Issuer shall withdraw, to the extent of available funds, the amount required to be withdrawn from the
Finance Charge Account, the Principal Accumulation Account, the Principal Account and the Distribution Account as follows:

 

(a)          On
or prior to each Payment Date, an amount equal to the Available Finance Charge Collections with respect to the related Monthly
Period will be paid or deposited in the following priority:

 

(i)          to
pay, on a pari passu basis, the following amounts, to the extent allocated to Series 2012-7 pursuant to Section 8.4(d) of
the Indenture: (A) the payment to the Indenture Trustee of the accrued and unpaid fees and other amounts owed to the Indenture
Trustee up to a maximum amount of $25,000 for each calendar year, (B) the payment to the Trustee of the accrued and unpaid fees
and other amounts owed to the Trustee up to a maximum amount of $25,000 for each calendar year and (C) the payment to the Administrator
of the accrued and unpaid fees and other amounts owed to the Administrator up to a maximum amount of $25,000 for each calendar
year;

 

(ii)         an
amount equal to the Noteholder Servicing Fee for such Transfer Date, plus the amount of any Noteholder Servicing Fee previously
due but not paid by the Issuer on a prior Transfer Date, shall be paid to the Servicer;

 

(iii)        an
amount equal to Class A Monthly Interest for such Payment Date, plus any Class A Deficiency Amount, plus the amount
of any Class A Additional Interest for such Payment Date, plus the amount of any Class A Additional Interest previously
due but not paid to Class A Noteholders on a prior Payment Date, shall be deposited into the Distribution Account;

 

(iv)        an
amount equal to Class B Monthly Interest for such Payment Date, plus any Class B Deficiency Amount, plus the amount
of any Class B Additional Interest for such Payment Date, plus the amount of any Class B Additional Interest previously
due but not paid to Class B Noteholders on a prior Payment Date, shall be deposited into the Distribution Account;

 

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(v)         an
amount equal to Class C Monthly Interest for such Payment Date, plus any Class C Deficiency Amount, plus the amount
of any Class C Additional Interest for such Payment Date, plus the amount of any Class C Additional Interest previously
due but not paid to the Class C Noteholders on a prior Payment Date shall be deposited into the Distribution Account;

 

(vi)        (A)
first, an amount equal to the Investor Default Amount for such Payment Date shall be treated as a portion of Available Principal
Collections for such Payment Date and (B) second, an amount equal to any Investor Uncovered Dilution Amount for such Payment
Date shall be treated as a portion of Available Principal Collections for such Payment Date, and any amounts treated as Available
Principal Collections pursuant to subclause (A) or (B) of this clause (vi) during the Controlled Accumulation Period or
the Early Amortization Period, shall be deposited into the Principal Account on the related Payment Date;

 

(vii)       an
amount equal to the sum of the aggregate amount of Investor Charge-Offs and the amount of Reallocated Principal Collections which
have not been previously reimbursed pursuant to this Section 4.4(a)(vii) shall be treated as a portion of Available Principal
Collections for such Payment Date and, during the Controlled Accumulation Period or Early Amortization Period, shall be deposited
into the Principal Account on the related Payment Date;

 

(viii)      on
each Transfer Date from and after the Reserve Account Funding Date, but prior to the date on which the Reserve Account terminates
as described in Section 4.10(e), an amount up to the excess, if any, of the Required Reserve Account Amount over
the Available Reserve Account Amount shall be deposited into the Reserve Account;

 

(ix)         an
amount equal to the amounts required to be deposited in the Spread Account pursuant to Section 4.11(e) shall be deposited
into the Spread Account;

 

(x)          without
duplication of the amount specified in clause (vi)(B) of this Section 4.4(a), an amount equal to the Series Allocation
Percentage (calculated by excluding all outstanding Series of Notes excluded from this calculation pursuant to the terms of the
Indenture Supplement for such Series) of the excess, if any, of the Minimum Free Equity Amount over the Free Equity Amount, shall
be treated as a portion of Available Principal Collections for such Payment Date and, during the Controlled Accumulation Period
or the Early Amortization Period, deposited into the Principal Account on the related Payment Date;

 

(xi)         [Reserved];

 

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(xii)        unless
an Early Amortization Event shall have occurred and be continuing, on a pari passu basis any amounts owed to such Persons listed
in clause (i) above that have been allocated to Series 2012-7 pursuant to Section 8.4(d) of the Indenture and that
have not been paid pursuant to clause (i) above shall be paid to such Persons; and

 

(xiii)       the
balance, if any, will constitute a portion of Excess Finance Charge Collections for such Payment Date and will be applied in accordance
with Section 8.6 of the Indenture; provided that during an Early Amortization Period, if any such Excess Finance
Charge Collections would be paid to the Transferor in accordance with Section 8.6 of the Indenture, the portion of such
Excess Finance Charge Collections that would otherwise be payable to the Transferor, first shall be used to pay Monthly
Principal pursuant to Section 4.4(c) to the extent not paid in full from Available Principal Collections (calculated without
regard to amounts available to be treated as Available Principal Collections pursuant to this clause (xiii)), second,
shall be used to pay on a pari passu basis any amounts owed to such Persons listed in clause (i) above that have been allocated
to Series 2012-7 pursuant to Section 8.4(d) of the Indenture and that have not been paid pursuant to clauses (i)
and (xii) above, and, third, any amounts remaining after payment in full of the Monthly Principal and amounts owed
to such Persons listed in clause (i) above shall be paid to the Issuer.

 

(b)          On
or prior to each Transfer Date with respect to the Revolving Period, an amount equal to the Available Principal Collections for
the related Monthly Period shall be treated as Shared Principal Collections and applied in accordance with Section 8.5
of the Indenture.

 

(c)          On
or prior to each Transfer Date or Payment Date, as applicable, with respect to the Controlled Accumulation Period or the Early
Amortization Period, an amount equal to the Available Principal Collections for the related Monthly Period shall be paid or deposited
in the following order of priority:

 

(i)          during
the Controlled Accumulation Period, an amount equal to the Monthly Principal for each Transfer Date shall be deposited into the
Principal Accumulation Account on the related Payment Date;

 

(ii)         during
the Early Amortization Period, an amount equal to the Monthly Principal for each Transfer Date shall be deposited into the Distribution
Account on the related Payment Date and on such Payment Date shall be paid, first to the Class A Noteholders on the related
Payment Date until the Class A Note Principal Balance has been reduced to zero; second to the Class B Noteholders until
the Class B Note Principal Balance has been reduced to zero; and third to the Class C Noteholders until the Class C Note
Principal Balance has been reduced to zero; and

 

(iii)        the
balance of such Available Principal Collections remaining after application in accordance with clauses (i) and (ii)
above shall be treated as Shared Principal Collections and applied in accordance with Section 8.5 of the Indenture.

 

(d)          On
each Payment Date, the Issuer shall pay in accordance with Section 4.5 to the Class A Noteholders from the Distribution
Account, the amount deposited into the Distribution Account pursuant to Section 4.4(a)(iii) on such Payment Date, to the
Class B Noteholders from the Distribution Account, the amount deposited into the Distribution Account pursuant to Section 4.4(a)(iv)
on such Payment Date and to the Class C Noteholders from the Distribution Account, the amount deposited into the Distribution
Account pursuant to Section 4.4(a)(v) on such Payment Date.

 

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(e)          On
the earlier to occur of (i) the first Payment Date with respect to the Early Amortization Period and (ii) the Expected Principal
Payment Date, the Issuer shall withdraw from the Principal Accumulation Account and deposit into the Distribution Account the amount
deposited into the Principal Accumulation Account pursuant to Section 4.4(c)(i) and on such Payment Date shall pay such
amount first to the Class A Noteholders, until the Class A Note Principal Balance is paid in full; second to the
Class B Noteholders until the Class B Principal Balance is paid in full; and third to the Class C Noteholders until
the Class C Note Principal Balance is paid in full.

 

(f)          As
of any Payment Date during the Controlled Accumulation Period or Early Amortization Period on which Available Principal Collections
are treated as Shared Principal Collections, the Collateral Amount shall be reduced by an amount equal to the lesser of (x) the
amount of Available Principal Collections applied as Shared Principal Collections and (y) the Surplus Collateral Amount.

 

SECTION 4.5. Distributions.

 

(a)          On
each Payment Date, the Issuer shall pay to each Class A Noteholder of record on the related Record Date such Class A Noteholder’s
pro rata share of the amounts on deposit in the Distribution Account that are allocated and available on such Payment
Date and as are payable to the Class A Noteholders pursuant to this Indenture Supplement.

 

(b)          On
each Payment Date, the Issuer shall pay to each Class B Noteholder of record on the related Record Date such Class B Noteholder’s
pro rata share of the amounts on deposit in the Distribution Account that are allocated and available on such Payment
Date and as are payable to the Class B Noteholders pursuant to this Indenture Supplement.

 

(c)          On
each Payment Date, the Issuer shall pay to each Class C Noteholder of record on the related Record Date such Class C Noteholder’s
pro rata share of the amounts on deposit in the Distribution Account (including amounts withdrawn from the Spread
Account (at the times and in the amounts specified in Section 4.11)) that are allocated and available on such Payment Date
and as are payable to the Class C Noteholders pursuant to this Indenture Supplement.

 

(d)          The
payments to be made pursuant to this Section 4.5 are subject to the provisions of Section 7.1 of this Indenture Supplement.

 

(e)          All
payments to Noteholders hereunder shall be made by (i) check mailed to each Series 2012-7 Noteholder (at such Noteholder’s
address as it appears in the Note Register), except that for any Series 2012-7 Notes registered in the name of the nominee of a
Clearing Agency, such payment shall be made by wire transfer of immediately available funds and (ii) except as provided in Section
2.7(b) of the Indenture, without presentation or surrender of any Series 2012-7 Note or the making of any notation thereon.

 

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SECTION 4.6. Investor
Charge-Offs. On each Determination Date, the Issuer shall calculate the Investor Default Amount and any Investor Uncovered
Dilution Amount for the preceding Monthly Period. If, on any Transfer Date, the sum of the Investor Default Amount and any Investor
Uncovered Dilution Amount for the preceding Monthly Period exceeds the amount of Available Finance Charge Collections allocated
with respect thereto pursuant to Section 4.4(a)(vi) with respect to such Transfer Date, the Collateral Amount will be reduced
(but not below zero) by the amount of such excess (such reduction, an “Investor Charge-Off”).

 

SECTION 4.7. Reallocated
Principal Collections. On each Transfer Date, the Issuer shall apply Investor Principal Collections with respect to that Transfer
Date, to fund any deficiency pursuant to and in the priority set forth in Sections 4.4(a)(i), (ii), (iii),
(iv) and (v) (any such Investor Principal Collections so allocated,
“Reallocated Principal Collections”); provided,
that for any Monthly Period, Reallocated Principal Collections may not exceed the Monthly Principal Reallocation Amount for such
Monthly Period. On each Transfer Date, the Collateral Amount shall be reduced by the amount of Reallocated Principal Collections
for such Transfer Date.

 

SECTION 4.8. Excess
Finance Charge Collections. Series 2012-7 shall be an Excess Allocation Series with respect to Group One only. Subject to Section 8.6
of the Indenture, Excess Finance Charge Collections with respect to the Excess Allocation Series in Group One with respect to any
Monthly Period will be allocated to Series 2012-7 in an amount equal to the product of (x) the aggregate amount of Excess Finance
Charge Collections with respect to all the Excess Allocation Series in Group One for such Monthly Period and (y) a fraction, the
numerator of which is the Finance Charge Shortfall for Series 2012-7 for such Monthly Period and the denominator of which is the
aggregate amount of Finance Charge Shortfalls for all the Excess Allocation Series in Group One, in each case with respect to payments
to be made on or prior to the Payment Date following such Monthly Period. The “Finance Charge Shortfall” for
Series 2012-7 for any date on which Excess Finance Charge Collections are allocated pursuant to Section 8.6 of the Indenture
will be equal to the excess, if any, of (a) the full amount required to be paid, without duplication, pursuant to Sections
4.4(a)(i) through (xii) with respect to the next following Payment Date over (b) the Available Finance Charge
Collections with respect to the related Monthly Period (excluding any portion thereof attributable to Excess Finance Charge Collections).

 

SECTION 4.9. Shared
Principal Collections. Subject to Section 8.5 of the Indenture, Shared Principal Collections allocable to Series
2012-7 with respect to any Monthly Period will be equal to the product of (x) the aggregate amount of Shared Principal Collections
with respect to all Principal Sharing Series for such Monthly Period and (y) a fraction, the numerator of which is the Principal
Shortfall for Series 2012-7 for such Monthly Period and the denominator of which is the aggregate amount of Principal Shortfalls
for all the Series which are Principal Sharing Series, in each case with respect to payments to be made on or prior to the Payment
Date following such Monthly Period. The “Principal Shortfall” for Series 2012-7 for any date on which Shared
Principal Collections are allocated pursuant to Section 8.5 of the Indenture will be equal to (a) for any allocation date
with respect to the Revolving Period or any allocation date during the Early Amortization Period prior to the earlier of (i) the
end of the Monthly Period immediately preceding the Expected Principal Payment Date and (ii) the date on which all outstanding
Series are in early amortization periods, zero, (b) for any allocation date with respect to the Controlled Accumulation Period,
the excess, if any, of the Controlled Deposit Amount with respect to the next following Payment Date over the amount of
Available Principal Collections for the related Monthly Period (excluding any portion thereof attributable to Shared Principal
Collections or amounts available to be treated as Available Principal Collections pursuant to clause (xiii) of Section
4.4(a)) and (c) for any allocation date on or after the earlier of (i) the end of the Monthly Period immediately preceding
the Expected Principal Payment Date and (ii) the date on which all outstanding Series are in early amortization periods, the Note
Principal Balance.

 

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SECTION 4.10. Reserve
Account.

 

(a)          On
each Transfer Date, all interest and earnings (net of losses and investment expenses) accrued since the preceding Transfer Date
on funds on deposit in the Reserve Account shall be retained in the Reserve Account (to the extent that the Available Reserve Account
Amount is less than the Required Reserve Account Amount) and any remaining interest and earnings (net of losses and investment
expenses) shall be deposited into the Finance Charge Account and included in Available Finance Charge Collections for the related
Monthly Period. For purposes of determining the availability of funds or the balance in the Reserve Account for any reason under
this Indenture Supplement, except as otherwise provided in the preceding sentence, investment earnings on such funds shall be deemed
not to be available or on deposit.

 

(b)          On
or before each Transfer Date with respect to the Controlled Accumulation Period and on or before the first Transfer Date with respect
to the Early Amortization Period, the Issuer shall calculate the Reserve Draw Amount; provided, however, that such
amount will be reduced to the extent that funds otherwise would be available for deposit in the Reserve Account under Section 4.4(a)(viii)
on the following Payment Date.

 

(c)          If
for any Transfer Date the Reserve Draw Amount is greater than zero, the Reserve Draw Amount, up to the Available Reserve Account
Amount, shall be withdrawn from the Reserve Account on such Transfer Date by the Issuer and deposited into the Finance Charge Account
for application as Available Finance Charge Collections on the following Payment Date.

 

(d)          If
the Reserve Account Surplus on any Transfer Date, after giving effect to all deposits to and withdrawals from the Reserve Account
with respect to such Transfer Date, is greater than zero, the Indenture Trustee, acting in accordance with the written instructions
of the Issuer, shall withdraw from the Reserve Account an amount equal to such Reserve Account Surplus and distribute any such
amounts to the holders of the Transferor Interest.

 

(e)          Upon
the earliest to occur of (i) the termination of the Trust pursuant to Article VIII of the Trust Agreement, (ii) the
first Transfer Date relating to the Early Amortization Period and (iii) the Expected Principal Payment Date, the Issuer, after
the prior payment of all amounts owing to the Series 2012-7 Noteholders that are payable from the Reserve Account as provided herein,
shall withdraw from the Reserve Account all amounts, if any, on deposit in the Reserve Account and distribute any such amounts
to the holders of the Transferor Interest. The Reserve Account shall thereafter be deemed to have terminated for purposes of this
Indenture Supplement.

 

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SECTION 4.11. Spread
Account.

 

(a)          On
or before each Transfer Date, if the aggregate amount of Available Finance Charge Collections available for application pursuant
to Section 4.4(a)(v) is less than the aggregate amount required to be deposited pursuant to Section 4.4(a)(v), the
Issuer shall withdraw from the Spread Account the amount of such deficiency up to the Available Spread Account Amount and if the
Available Spread Account Amount is less than such deficiency, Investment Earnings credited to the Spread Account and shall apply
such amount in accordance with Section 4.4(a)(v).

 

(b)          Unless
an Early Amortization Event occurs, the Issuer will withdraw from the Spread Account and deposit in the Collection Account for
payment to the Class C Noteholders on the Expected Principal Payment Date for the Class C Notes an amount equal to the lesser of:
(i) the amount on deposit in the Spread Account after application of any amounts set forth in clause (a) above and (ii) the Class
C Note Principal Balance.

 

(c)          Upon
an Early Amortization Event, the amount, if any, remaining on deposit in the Spread Account, after making the payments described
in clause (a) above, shall be applied to pay principal on the Class C Notes on the earlier of the Series Maturity Date and the
first Payment Date on which the Class A Note Principal Balance and the Class B Note Principal Balance have been paid in full.

 

(d)          On
any day following the occurrence of an Event of Default with respect to Series 2012-7 that has resulted in the acceleration of
the Series 2012-7 Notes, the Issuer shall withdraw from the Spread Account the Available Spread Account Amount and deposit such
amount in the Distribution Account for payment to the Series 2012-7 Notes in the following order of priority until all amounts
owed to such Noteholders have been paid in full: (i) the Class C Noteholders, (ii) the Class A Noteholders and (iii) the Class
B Noteholders.

 

(e)          If
on any Payment Date, after giving effect to all withdrawals from the Spread Account, the Available Spread Account Amount is less
than the Required Spread Account Amount then in effect, Available Finance Charge Collections shall be deposited into the Spread
Account pursuant to Section 4.4(a)(ix) up to the amount of the Spread Account Deficiency.

 

(f)          If,
after giving effect to all deposits to and withdrawals from the Spread Account with respect to any Payment Date, the amount on
deposit in the Spread Account exceeds the Required Spread Account Amount, the Issuer shall withdraw an amount equal to such excess
from the Spread Account and distribute such amount to the Transferor. On the date on which the Class C Note Principal Balance has
been paid in full, after making any payments to the Noteholders required pursuant to Sections 4.11(a), (b),
(c) and (d), the Issuer shall withdraw from the Spread Account all amounts then remaining in the Spread Account
and pay such amounts to the holders of the Transferor Interest.

 

SECTION 4.12. Investment
of Accounts. (a) To the extent there are uninvested amounts deposited in the Series Accounts, the Issuer shall cause such amounts
to be invested in Permitted Investments selected by the Issuer that mature no later than the following Transfer Date.

 

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(b)          On
each Transfer Date with respect to the Controlled Accumulation Period and on the first Transfer Date with respect to the Early
Amortization Period, the Issuer shall transfer from the Principal Accumulation Account to the Finance Charge Account the Principal
Accumulation Investment Proceeds on deposit in the Principal Accumulation Account for application as Available Finance Charge Collections
in accordance with Section 4.4.

 

(c)          Principal
Accumulation Investment Proceeds (including reinvested interest) shall not be considered part of the amounts on deposit in the
Principal Accumulation Account for purposes of this Indenture Supplement.

 

(d)          On
each Transfer Date (but subject to Section 4.11(a)), the Investment Earnings, if any, credited since the preceding Transfer
Date on funds on deposit in the Spread Account shall be retained in the Spread Account (to the extent that the Available Spread
Account Amount is less than the Required Spread Account Amount) and the balance, if any, shall be paid to the holders of the Transferor
Interest. For purposes of determining the availability of funds or the balance in the Spread Account for any reason under this
Indenture Supplement (subject to Section 4.11(a)), all Investment Earnings shall be deemed not to be available or on deposit;
provided that after the maturity of the Series 2012-7 Notes has been accelerated as a result of an Event of Default, all
Investment Earnings shall be added to the balance on deposit in the Spread Account and treated like the rest of the Available Spread
Account Amount.

 

SECTION 4.13. Controlled
Accumulation Period. The Controlled Accumulation Period is scheduled to commence at the beginning of business on June 22, 2019;
provided that if the Controlled Accumulation Period Length (determined as described below) on any Determination Date is
less than or more than the number of months in the scheduled Controlled Accumulation Period, upon written notice to the Indenture
Trustee, with a copy to each Rating Agency, the Issuer shall either postpone or accelerate, as applicable, the date on which the
Controlled Accumulation Period actually commences, so that, as a result, the number of Monthly Periods in the Controlled Accumulation
Period will equal the Controlled Accumulation Period Length; provided that the length of the Controlled Accumulation Period
will not be less than one month. The “Controlled Accumulation Period Length” will mean a number of whole months
such that the amount available for payment of principal on the Notes on the Expected Principal Payment Date is expected to equal
or exceed the Note Principal Balance, assuming for this purpose that (1) the payment rate with respect to Principal Collections
remains constant at the lowest level of such payment rate during the twelve preceding Monthly Periods, (2) the total amount of
Principal Receivables in the Trust (and the principal amount on deposit in the Excess Funding Account, if any) remains constant
at the level on such date of determination, (3) no Early Amortization Event with respect to any Series will subsequently occur
and (4) no additional Series (other than any Series being issued on such date of determination) will be subsequently issued. Any
notice by Issuer modifying the commencement of the Controlled Accumulation Period pursuant to this Section 4.13 shall
specify (i) the Controlled Accumulation Period Length, (ii) the commencement date of the Controlled Accumulation Period and (iii)
the Controlled Accumulation Amount with respect to each Monthly Period during the Controlled Accumulation Period.

 

SECTION 4.14. [RESERVED].

 

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SECTION 4.15. Deposit
of Collections. Notwithstanding anything to the contrary in the Indenture, for any Monthly Period during which the Issuer is
permitted to make a single monthly deposit to the Collection Account pursuant to Section 8.4 of the Indenture for such Monthly
Period, the Issuer need not make the daily deposits of Collections into the Collection Account as provided in Section 8.4
of the Indenture, but may make a single deposit in the Collection Account in immediately available funds not later than 12:00 noon,
New York City time, on the related Payment Date.

 

ARTICLE
V

Delivery of Series 2012-7 Notes;

Reports to Series 2012-7 Noteholders

 

SECTION 5.1. Delivery
and Payment for the Series 2012-7 Notes.

 

The Issuer shall execute
and issue, and the Indenture Trustee shall authenticate, the Series 2012-7 Notes in accordance with Section 2.2 of
the Indenture. The Indenture Trustee shall deliver the Series 2012-7 Notes to or upon the written order of the Issuer when so authenticated.

 

SECTION 5.2. Reports
and Statements to Series 2012-7 Noteholders.

 

(a)          Not
later than the second Business Day preceding each Payment Date, the Issuer shall deliver or cause the Servicer to deliver to the
Trustee, the Indenture Trustee and each Rating Agency a statement substantially in the form of Exhibit B prepared by the
Servicer; provided that the Issuer may amend the form of Exhibit B from time to time, with the prior written consent
of the Indenture Trustee.

 

(b)          A
copy of each statement or certificate provided pursuant to Section 5.2(a) may be obtained by any Series 2012-7 Noteholder
by a request in writing to the Issuer.

 

(c)          On
or before January 31 of each calendar year, beginning with January 31, 2013, the Issuer shall furnish or cause to be furnished
to each Person who at any time during the preceding calendar year was a Series 2012-7 Noteholder the information for the preceding
calendar year, or the applicable portion thereof during which the Person was a Noteholder, as is required to be provided by an
issuer of indebtedness under the Code to the holders of the Issuer’s indebtedness and such other customary information as
is necessary to enable such Noteholder to prepare its federal income tax returns. Notwithstanding anything to the contrary contained
in this Agreement, the Issuer shall, to the extent required by applicable law, from time to time furnish to the appropriate Persons,
at least five Business Days prior to the end of the period required by applicable law, the information required to complete a Form
1099-INT.

 

ARTICLE
VI

Series 2012-7 Early Amortization Events

 

SECTION 6.1. Series
2012-7 Early Amortization Events. If any one of the following events shall occur with respect to the Series 2012-7 Notes:

 

    	30

    	 

    

 

(a)          (i)
failure on the part of Transferor to make any payment or deposit required to be made by it by the terms of the Trust Receivables
Purchase Agreement or the Transfer Agreement on or before the date occurring five (5) Business Days after the date such payment
or deposit is required to be made therein or herein or (ii) failure of the Transferor duly to observe or perform in any material
respect any other of its covenants or agreements set forth in the Trust Receivables Purchase Agreement or the Transfer Agreement
which failure has a material adverse effect on the Series 2012-7 Noteholders and which continues unremedied for a period of sixty
days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Transferor
by the Indenture Trustee, or to the Transferor and the Indenture Trustee by any Noteholder of the Series 2012-7 Notes;

 

(b)          any
representation or warranty made by Transferor in the Transfer Agreement or the Trust Receivables Purchase Agreement or any information
contained in an account schedule required to be delivered by it pursuant to Section 2.1 or Section 2.6(c) of
the Transfer Agreement, Trust Agreement or the Bank Receivables Sale Agreement shall prove to have been incorrect in any material
respect when made or when delivered, which continues to be incorrect in any material respect for a period of sixty days after the
date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Transferor by the
Indenture Trustee, or to the Transferor and the Indenture Trustee by any Noteholder of the Series 2012-7 Notes and as a result
of which the interests of the Series 2012-7 Noteholders are materially and adversely affected for such period; provided,
however, that a Series 2012-7 Early Amortization Event pursuant to this Section 6.1(b) shall not be deemed to have occurred
hereunder if the Transferor has accepted reassignment of the related Transferred Receivable, or all of such Transferred Receivables,
if applicable, during such period in accordance with the provisions of the Transfer Agreement or the Trust Receivables Purchase
Agreement;

 

(c)          a
failure by Transferor under the Transfer Agreement to convey Transferred Receivables in Additional Accounts or Participations to
the Trust when it is required to convey such Transferred Receivables pursuant to Section 2.6(a) of the Transfer Agreement;

 

(d)          any
Servicer Default or any Indenture Servicer Default shall occur;

 

(e)          (i)
the average of the Portfolio Yields for the two Monthly Periods immediately preceding the January 2013 Payment Date is less than
the average of the Base Rates for the same Monthly Periods, or (ii) beginning with the three consecutive Monthly Periods immediately
preceding the February 2013 Payment Date, the average of the Portfolio Yields for three consecutive Monthly Periods is less than
the average of the Base Rates for the same Monthly Periods (for the avoidance of doubt, the Monthly Period preceding the November
2012 Payment Date shall be excluded for purposes of calculating the three-month average Portfolio Yield and Base Rate under this
clause (e)(ii));

 

(f)          the
Note Principal Balance shall not be paid in full on the Expected Principal Payment Date; or

 

(g)          without
limiting the foregoing, the occurrence of an Event of Default with respect to Series 2012-7 and acceleration of the maturity of
the Series 2012-7 Notes pursuant to Section 5.3 of the Indenture;

 

    	31

    	 

    

 

then, in the case of any event described
in subsection (a), (b) or (d), after the applicable grace period, if any, set forth in such subparagraphs,
either the Indenture Trustee or the holders of Series 2012-7 Notes evidencing more than 50% of the aggregate unpaid principal amount
of Series 2012-7 Notes by notice then given in writing to the Issuer (and to the Indenture Trustee if given by the Series 2012-7
Noteholders) may declare that a “Series Early Amortization Event” with respect to Series 2012-7 (a “Series
2012-7 Early Amortization Event”) has occurred as of the date of such notice, and, in the case of any event described
in subsection (c), (e), (f) or (g) a Series 2012-7
Early Amortization Event shall occur without any notice or other action on the part of the Indenture Trustee or the Series 2012-7
Noteholders immediately upon the occurrence of such event.

 

ARTICLE
VII

Redemption of Series 2012-7 Notes; Final Distributions; Series Termination

 

SECTION 7.1. Optional
Redemption of Series 2012-7 Notes; Final Distributions.

 

(a)          On
any day occurring on or after the date on which the outstanding principal balance of the Series 2012-7 Notes is reduced to 10%
or less of the initial outstanding principal balance of Series 2012-7 Notes, Transferor has the option pursuant to the Trust Agreement
to reduce the Collateral Amount to zero by paying a purchase price equal to the greater of (x) the Collateral Amount, plus the
applicable Allocation Percentage of outstanding Finance Charge Receivables and (y) a minimum amount equal to (i) if such day is
a Payment Date, the Redemption Amount for such Payment Date or (ii) if such day is not a Payment Date, the Redemption Amount for
the Payment Date following such day. If Transferor exercises such option, Issuer will apply such purchase price to repay the Notes
in full as specified below.

 

(b)          Issuer
shall give the Indenture Trustee at least thirty (30) days prior written notice of the date on which Transferor intends to exercise
such optional redemption. Not later than 12:00 noon, New York City time, on such day Transferor shall deposit into the Distribution
Account in immediately available funds the excess of the Redemption Amount over the amount, if any, on deposit in the Principal
Accumulation Account. Such redemption option is subject to payment in full of the Redemption Amount. Following such deposit into
the Distribution Account in accordance with the foregoing, the Collateral Amount for Series 2012-7 shall be reduced to zero and
the Series 2012-7 Noteholders shall have no further security interest in the Transferred Receivables. The Redemption Amount shall
be paid as set forth in Section 7.1(d).

 

(c)          (i)
The amount to be paid by the Transferor with respect to Series 2012-7 in connection with a reassignment of Transferred Receivables
to the Transferor pursuant to Section 6.1(f) of the Transfer Agreement shall not be less than the Redemption Amount
for the first Payment Date following the Monthly Period in which the reassignment obligation arises under the Transfer Agreement.

 

(ii)         The
amount to be paid by the Issuer with respect to Series 2012-7 in connection with a repurchase of the Notes pursuant to Section
10.1 of the Trust Agreement shall not be less than the Redemption Amount for the Payment Date of such repurchase.

 

    	32

    	 

    

 

(d)          With
respect to (i) the Redemption Amount deposited into the Distribution Account pursuant to Section 7.1 or (ii) the proceeds
of any sale of Transferred Receivables pursuant to Section 5.3 of the Indenture with respect to Series 2012-7, the Indenture
Trustee shall, in accordance with the written direction of the Issuer, not later than 12:00 noon, New York City time, on the related
Payment Date, make payments of the following amounts (in the priority set forth below and, in each case, after giving effect to
any deposits and payments otherwise to be made on such date) in immediately available funds: (i) (x) the Class A Note Principal
Balance on such Payment Date will be paid to the Class A Noteholders and (y) an amount equal to the sum of (A) Class A Monthly
Interest due and payable on such Payment Date or any prior Payment Date, (B) any Class A Deficiency Amount for such Payment
Date and (C) the amount of Class A Additional Interest, if any, for such Payment Date and any Class A Additional Interest previously
due but not paid to the Class A Noteholders on any prior Payment Date, will be paid to the Class A Noteholders, (ii) (x) the
Class B Note Principal Balance on such Payment Date will be paid to the Class B Noteholders and (y) an amount equal to the sum
of (A) Class B Monthly Interest due and payable on such Payment Date or any prior Payment Date, (B) any Class B Deficiency Amount
for such Payment Date and (C) the amount of Class B Additional Interest, if any, for such Payment Date and any Class B Additional
Interest previously due but not paid to the Class B Noteholders on any prior Payment Date, will be paid to the Class B Noteholders,
(iii) (x) the Class C Note Principal Balance on such Payment Date will be paid to the Class C Noteholders and (y) an amount
equal to the sum of (A) Class C Monthly Interest due and payable on such Payment Date or any prior Payment Date, (B) any Class
C Deficiency Amount for such Payment Date and (C) the amount of Class C Additional Interest, if any, for such Payment Date and
any Class C Additional Interest previously due but not paid to the Class C Noteholders on any prior Payment Date will be paid to
the Class C Noteholders and (iv) any excess shall be released to the Issuer.

 

SECTION 7.2. Series
Termination.

 

On the Series Maturity
Date, the unpaid principal amount of the Series 2012-7 Notes shall be due and payable.

 

SECTION 7.3. Sale
of Collateral.

 

If the Indenture Trustee
exercises its right to sell any portion of the Collateral in accordance with Section 5.16 of the Indenture upon the occurrence
of an Event of Default with respect to Series 2012-7, GE Capital shall have a right of first refusal to purchase any portion of
the Collateral for which the Indenture Trustee has received a bona fide offer from a third-party that is not an affiliate of the
Transferor at a price equal to the highest price bid for such Collateral by such third-party bidder.

 

ARTICLE
VIII

Miscellaneous Provisions

 

SECTION 8.1. Ratification
of Indenture; Amendments. As supplemented by this Indenture Supplement, the Indenture is in all respects ratified and confirmed
and the Indenture as so supplemented by this Indenture Supplement shall be read, taken and construed as one and the same instrument.
This Indenture Supplement may be amended only by a Supplemental Indenture entered in accordance with the terms of Section 9.1
or 9.2 of the Indenture. For purposes of the application of Section 9.2 to any amendment of this Indenture Supplement,
the Series 2012-7 Noteholders shall be the only Noteholders whose vote shall be required.

 

    	33

    	 

    

 

SECTION 8.2. Form
of Delivery of the Series 2012-7 Notes. The Class A Notes, the Class B Notes and the Class C Notes shall be Book-Entry Notes
and shall be delivered as provided in Sections 2.1 and 2.2 of the Indenture.

 

SECTION 8.3. Counterparts.
This Indenture Supplement may be executed in two or more counterparts, and by different parties on separate counterparts, each
of which shall be an original, but all of which shall constitute one and the same instrument.

 

SECTION 8.4. GOVERNING
LAW. (a) THIS INDENTURE SUPPLEMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION,
VALIDITY AND PERFORMANCE, BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW
YORK (INCLUDING SECTION 5-1401(1) OF THE GENERAL OBLIGATIONS LAW, BUT WITHOUT REGARD TO ANY OTHER CONFLICT OF LAW PROVISIONS THEREOF)
AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA. THIS INDENTURE SUPPLEMENT IS SUBJECT TO THE TRUST INDENTURE ACT OF 1939,
AS AMENDED, AND SHALL BE GOVERNED THEREBY AND CONSTRUED IN ACCORDANCE THEREWITH.

 

(b)          EACH
PARTY HERETO HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN THE BOROUGH OF MANHATTAN IN NEW YORK CITY SHALL
HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN THEM PERTAINING TO THIS INDENTURE SUPPLEMENT OR
TO ANY MATTER ARISING OUT OF OR RELATING TO THIS INDENTURE SUPPLEMENT; PROVIDED,
THAT EACH PARTY HERETO ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF THE
BOROUGH OF MANHATTAN IN NEW YORK CITY; PROVIDED, FURTHER, THAT NOTHING IN THIS INDENTURE SUPPLEMENT SHALL BE DEEMED
OR OPERATE TO PRECLUDE THE INDENTURE TRUSTEE FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO REALIZE
ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE NOTES, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE INDENTURE
TRUSTEE. EACH PARTY HERETO SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT,
AND EACH PARTY HERETO HEREBY WAIVES ANY OBJECTION THAT SUCH PARTY MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE
OR FORUM NON CONVENIENS AND HEREBY CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY
SUCH COURT. EACH PARTY HERETO HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION
OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED
TO SUCH PARTY AT ITS ADDRESS DETERMINED IN ACCORDANCE WITH SECTION 10.4 OF THE INDENTURE AND THAT SERVICE SO MADE SHALL
BE DEEMED COMPLETED UPON THE EARLIER OF SUCH PARTY’S ACTUAL RECEIPT THEREOF OR THREE DAYS AFTER DEPOSIT IN THE UNITED STATES
MAIL, PROPER POSTAGE PREPAID. NOTHING IN THIS SECTION SHALL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE LEGAL PROCESS IN ANY
OTHER MANNER PERMITTED BY LAW.

 

    	34

    	 

    

 

BECAUSE DISPUTES
ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT
PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT
THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS
OF THE JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING
BROUGHT TO RESOLVE ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, ARISING OUT OF, CONNECTED WITH, RELATED TO, OR
INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS INDENTURE SUPPLEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

 

SECTION 8.5. Limitation
of Liability. Notwithstanding any other provision herein or elsewhere, this Indenture Supplement has been executed and delivered
by BNY Mellon Trust of Delaware, not in its individual capacity, but solely in its capacity as Trustee of the Trust, in no event
shall BNY Mellon Trust of Delaware in its individual capacity have any liability in respect of the representations, warranties,
or obligations of the Issuer hereunder or under any other document, as to all of which recourse shall be had solely to the assets
of the Trust, and for all purposes of this Indenture Supplement and each other document, the Trustee (as such or in its individual
capacity) shall be subject to, and entitled to the benefits of, the terms and provisions of the Trust Agreement.

 

SECTION 8.6. Rights
of the Indenture Trustee. The Indenture Trustee shall have herein the same rights, protections, indemnities and immunities
as specified in the Master Indenture.

 

SECTION 8.7. Notice
Address for Rating Agencies. Delivery of any notices required to be delivered to the Rating Agencies by the Issuer, the Indenture
Trustee or the Trustee shall be sufficient for the purposes of this Indenture Supplement and the other Related Documents if sent
to such mailing addresses or such email addresses as may be provided by the Rating Agencies.

 

SECTION 8.8. Compliance
with Applicable Anti-Terrorism and Anti-Money Laundering Regulations. In order to comply with laws, rules and regulations applicable
to banking institutions, including those relating to the funding of terrorist activities and money laundering, the Indenture Trustee
is required to obtain, verify and record certain information relating to individuals and entities which maintain a business relationship
with the Indenture Trustee. Accordingly, each of the parties hereto agrees to provide to the Indenture Trustee upon its request
from time to time such identifying information and documentation as may be available for such party in order to enable the Indenture
Trustee to comply with applicable law.

 

    	35

    	 

    

 

SECTION 8.9. Notes
to be Treated as Debt for Tax. It is the intent of the parties hereto that, for purposes of federal, state and local income
and franchise tax and any other tax measured in whole or in part by income, the Class A Notes, the Class B Notes and the Class C
Notes shall be treated as debt and a person purchasing such Notes agrees to treat such Notes as debt for such purposes.

 

SECTION 8.10. Deemed
Consent. The Series 2012-7 Noteholders will be deemed to have consented to any amendment to any Related Document that changes
the definition of “Rating Agency Condition” in such Related Document to match the definition of “Rating Agency
Condition” in this Indenture Supplement.

 

[SIGNATURE PAGE FOLLOWS]

 

    	36

    	 

    

 

 

IN WITNESS WHEREOF,
the undersigned have caused this Indenture Supplement to be duly executed and delivered by their respective duly authorized officers
on the day and year first above written.

 

	 	GE CAPITAL CREDIT CARD MASTER NOTE TRUST, as Issuer
	 	 	 	 
	 	By:	BNY MELLON TRUST OF DELAWARE, not in its individual capacity, but solely as Trustee on behalf of Issuer
	 	 	 	 
		By:	
	 	 	Name:	Kristine K. Gullo
	 	 	Title:	Vice President
	 	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS, as Indenture Trustee
	 	 
	 	By: DEUTSCHE BANK NATIONAL TRUST COMPANY
	 	 	 	 
		By:	 
	 	 	Name:	Susan Barstock
	 	 	Title:	Vice President
	 	 	 	 
		By:	 
	 	 	Name:	Ellen Jean-Baptiste
	 	 	Title:	Associate

  

    	 	S-1	Indenture Supplement
Series 2012-7

    	 

    

 

EXHIBIT A-1

FORM OF CLASS A SERIES 2012-7 FIXED RATE
ASSET BACKED NOTE

 

UNLESS THIS NOTE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER
OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

THE HOLDER OF THIS
NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT WILL NOT AT ANY TIME DIRECTLY OR INDIRECTLY INSTITUTE OR CAUSE TO BE
INSTITUTED AGAINST THE ISSUER ANY BANKRUPTCY, REORGANIZATION, ARRANGEMENT, INSOLVENCY OR LIQUIDATION PROCEEDING OR OTHER PROCEEDING
UNDER ANY FEDERAL OR STATE BANKRUPTCY LAW UNLESS NOTEHOLDERS OF NOT LESS THAN 662⁄3% OF THE OUTSTANDING PRINCIPAL AMOUNT OF
EACH CLASS OF EACH SERIES HAS APPROVED SUCH FILING AND IT WILL NOT DIRECTLY OR INDIRECTLY INSTITUTE OR CAUSE TO BE INSTITUTED AGAINST
THE TRANSFEROR ANY BANKRUPTCY, REORGANIZATION, ARRANGEMENT, INSOLVENCY OR LIQUIDATION PROCEEDING OR OTHER PROCEEDING UNDER ANY
FEDERAL OR STATE BANKRUPTCY LAW IN ANY INSTANCE; PROVIDED, THAT THE FOREGOING SHALL NOT IN ANY WAY LIMIT THE NOTEHOLDER’S
RIGHTS TO PURSUE ANY OTHER CREDITOR RIGHTS OR REMEDIES THAT THE NOTEHOLDERS MAY HAVE FOR CLAIMS AGAINST THE ISSUER.

 

THE HOLDER OF THIS
CLASS A NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE CLASS A NOTES AS
INDEBTEDNESS OF THE ISSUER FOR APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER
TAX IMPOSED ON, OR MEASURED BY, INCOME.

 

    	Exhibit A-1 (Page 1)

    	 

    

 

THE
HOLDER OF THIS NOTE BY ITS ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST THEREIN, SHALL BE DEEMED TO REPRESENT
AND WARRANT THAT EITHER (I) SUCH HOLDER IS NOT (AND FOR SO LONG AS IT HOLDS SUCH NOTE WILL NOT BE), IS NOT ACTING ON BEHALF OF
(AND FOR SO LONG AS IT HOLDS SUCH NOTE WILL NOT BE ACTING ON BEHALF OF), AND IS NOT INVESTING THE ASSETS OF (A) AN "EMPLOYEE
BENEFIT PLAN" (AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"))
THAT IS SUBJECT TO TITLE I OF ERISA, (B) A "PLAN" (AS DEFINED IN SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED (THE "CODE")) THAT IS SUBJECT TO SECTION 4975 OF THE CODE, (C) AN ENTITY WHOSE
UNDERLYING ASSETS ARE DEEMED TO BE PLAN ASSETS OF A PLAN DESCRIBED IN (A) OR (B) ABOVE (EACH, A “BENEFIT PLAN”) OR
(D) A GOVERNMENTAL PLAN, CHURCH PLAN OR NON-U.S. PLAN THAT IS SUBJECT TO ANY APPLICABLE LAW THAT IS SUBSTANTIALLY SIMILAR TO THE
FIDUCIARY RESPONSIBILITY PROVISIONS OF ERISA OR SECTION 4975 OF THE CODE (“SIMILAR LAW”) OR (II) ITS ACQUISITION, CONTINUED
HOLDING AND DISPOSITION OF THIS NOTE WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER ERISA OR SECTION 4975 OF THE
CODE OR A VIOLATION OF ANY SIMILAR LAW. BENEFIT PLANS MAY NOT ACQUIRE THIS NOTE AT ANY TIME THAT THIS NOTE DOES NOT HAVE
A CURRENT INVESTMENT GRADE RATING FROM A NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION.

 

    	Exhibit A-1 (Page 2)

    	 

    

 

	REGISTERED

No. R- _______________________	$500,000,000

CUSIP NO. 36521JDL2

 

GE CAPITAL
CREDIT CARD

MASTER NOTE TRUST SERIES 2012-7

CLASS A SERIES 2012-7 FIXED RATE ASSET BACKED NOTE

 

GE Capital Credit
Card Master Note Trust (herein referred to as the “Issuer” or the “Trust”), a Delaware statutory trust
governed by a Trust Agreement dated as of September 25, 2003, for value received, hereby promises to pay to Cede & Co., or
registered assigns, subject to the following provisions, the principal sum of FIVE HUNDRED MILLION DOLLARS, or such greater or
lesser amount as determined in accordance with the Indenture, on the September 2022 Payment Date, except as otherwise provided
below or in the Indenture. The Issuer will pay interest on the unpaid principal amount of this Note at the Class A Note Interest
Rate on each Payment Date until the Final Payment Date (which is the earlier to occur of (a) the Payment Date on which the Note
Principal Balance is paid in full, (b) the date on which the Collateral Amount is reduced to zero and (c) the September 2022 Payment
Date). Interest on this Note will accrue for each Payment Date from and including the most recent Payment Date on which interest
has been paid to but excluding such Payment Date or, for the initial Payment Date, from and including the Closing Date to but
excluding such Payment Date. Interest will be computed on the basis of a 360-day year and twelve 30-day months (and in the case
of the initial interest period, for a period of 28 days). Principal of this Note shall be paid in the manner specified in the
Indenture Supplement referred to on the reverse hereof.

 

The principal of and
interest on this Note are payable in such coin or currency of the United States of America as at the time of payment is legal tender
for payment of public and private debts.

 

Reference is made to
the further provisions of this Note set forth on the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

 

Unless the certificate
of authentication hereon has been executed by or on behalf of the Indenture Trustee, by manual signature, this Note shall not be
entitled to any benefit under the Indenture or the Indenture Supplement referred to on the reverse hereof, or be valid for any
purpose.

 

    	Exhibit A-1 (Page 3)

    	 

    

 

IN WITNESS WHEREOF, the Issuer has caused this Class A Note
to be duly executed.

 

	 	GE CAPITAL CREDIT CARD MASTER NOTE TRUST, as Issuer
	 	 	 
	 	By:	BNY MELLON TRUST OF DELAWARE,  not in its individual capacity but solely as  Trustee on behalf of Issuer
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

Dated:_________________, _____

 

    	Exhibit A-1 (Page 4)

    	 

    

 

INDENTURE TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

 

This is one of the Class A Notes described in the within-mentioned
Indenture.

 

	 	DEUTSCHE BANK TRUST COMPANY AMERICAS, as Indenture Trustee
	 	 
	 	By:	 
	 	 	Authorized Signatory

 

    	Exhibit A-1 (Page 5)

    	 

    

 

GE CAPITAL CREDIT CARD

MASTER NOTE TRUST SERIES 2012-7

CLASS A SERIES 2012-7 FIXED RATE ASSET BACKED NOTE

Summary of Terms and Conditions

 

This Class A Note is
one of a duly authorized issue of Notes of the Issuer, designated as GE Capital Credit Card Master Note Trust, Series 2012-7 (the
“Series 2012-7 Notes”), issued under a Master Indenture dated as of September 25, 2003 (as amended, the “Master
Indenture”), between the Issuer and Deutsche Bank Trust Company Americas, as indenture trustee (the “Indenture
Trustee”), as supplemented by the Indenture Supplement, dated as of October 17, 2012 (the “Indenture Supplement”),
and representing the right to receive certain payments from the Issuer. The term “Indenture,” unless the context otherwise
requires, refers to the Master Indenture as supplemented by the Indenture Supplement. The Notes are subject to all of the terms
of the Indenture. All terms used in this Note that are defined in the Indenture shall have the meanings assigned to them in or
pursuant to the Indenture. In the event of any conflict or inconsistency between the Indenture and this Note, the Indenture shall
control.

 

The Class B Notes and
the Class C Notes will also be issued under the Indenture.

 

The Noteholder, by
its acceptance of this Note, agrees that it will look solely to the property of the Issuer allocated to the payment of this Note
for payment hereunder and that neither the Owner Trustee nor the Indenture Trustee is liable to the Noteholders for any amount
payable under the Notes or the Indenture or, except in the case of the Indenture Trustee as expressly provided in the Indenture,
subject to any liability under the Indenture.

 

This Note does not
purport to summarize the Indenture and reference is made to the Indenture for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced thereby, and the rights, duties and immunities of the Indenture Trustee.

 

THIS CLASS A NOTE DOES
NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN, THE ISSUER, GE CAPITAL RETAIL BANK, RFS HOLDING, L.L.C., OR ANY OF THEIR AFFILIATES,
AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

 

The Issuer, the Indenture
Trustee and any agent of the Issuer or the Indenture Trustee shall treat the person in whose name this Class A Note is registered
as the owner hereof for all purposes, and neither the Issuer, the Indenture Trustee nor any agent of the Issuer or the Indenture
Trustee shall be affected by notice to the contrary.

 

THIS CLASS A NOTE SHALL
BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

    	Exhibit A-1 (Page 6)

    	 

    

 

ASSIGNMENT

 

Social Security or other identifying number of assignee                              
_____________________

 

FOR VALUE RECEIVED,
the undersigned hereby sells, assigns and transfers unto                                  
(name and address of assignee) the within certificate and all rights thereunder, and hereby irrevocably constitutes and appoints
                            
attorney, to transfer said certificate on the books kept for registration thereof, with full power of substitution in the premises.

 

	Dated:	 	 	 	**
	 	 	 	Signature Guaranteed:	 

 

 

	**	The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration, enlargement or any change whatsoever.

 

    	Exhibit A-1 (Page 7)

    	 

    

 

 

EXHIBIT A-2

FORM OF CLASS B SERIES 2012-7 FIXED RATE
ASSET BACKED NOTE

 

UNLESS THIS NOTE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER
OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

THE HOLDER OF THIS
NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT WILL NOT AT ANY TIME DIRECTLY OR INDIRECTLY INSTITUTE OR CAUSE TO BE
INSTITUTED AGAINST THE ISSUER ANY BANKRUPTCY, REORGANIZATION, ARRANGEMENT, INSOLVENCY OR LIQUIDATION PROCEEDING OR OTHER PROCEEDING
UNDER ANY FEDERAL OR STATE BANKRUPTCY LAW UNLESS NOTEHOLDERS OF NOT LESS THAN 662⁄3% OF THE OUTSTANDING PRINCIPAL AMOUNT OF
EACH CLASS OF EACH SERIES HAS APPROVED SUCH FILING AND IT WILL NOT DIRECTLY OR INDIRECTLY INSTITUTE OR CAUSE TO BE INSTITUTED AGAINST
THE TRANSFEROR ANY BANKRUPTCY, REORGANIZATION, ARRANGEMENT, INSOLVENCY OR LIQUIDATION PROCEEDING OR OTHER PROCEEDING UNDER ANY
FEDERAL OR STATE BANKRUPTCY LAW IN ANY INSTANCE; PROVIDED, THAT THE FOREGOING SHALL NOT IN ANY WAY LIMIT THE NOTEHOLDER’S
RIGHTS TO PURSUE ANY OTHER CREDITOR RIGHTS OR REMEDIES THAT THE NOTEHOLDERS MAY HAVE FOR CLAIMS AGAINST THE ISSUER.

 

THE HOLDER OF THIS CLASS B NOTE, BY ACCEPTANCE
OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE CLASS B NOTES AS INDEBTEDNESS OF THE ISSUER
FOR APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON, OR MEASURED
BY, INCOME.

 

    	Exhibit A-2 (Page 1)

    	 

    

 

THE HOLDER OF THIS
NOTE BY ITS ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST THEREIN, SHALL BE DEEMED TO REPRESENT AND WARRANT
THAT EITHER (I) SUCH HOLDER IS NOT (AND FOR SO LONG AS IT HOLDS SUCH NOTE WILL NOT BE), IS NOT ACTING ON BEHALF OF (AND FOR SO
LONG AS IT HOLDS SUCH NOTE WILL NOT BE ACTING ON BEHALF OF), AND IS NOT INVESTING THE ASSETS OF (A) AN "EMPLOYEE BENEFIT PLAN"
(AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA:)) THAT IS SUBJECT
TO TITLE I OF ERISA, (B) A “PLAN: (AS DEFINED IN SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”))
THAT IS SUBJECT TO SECTION 4975 OF THE CODE, (C) AN ENTITY WHOSE UNDERLYING ASSETS ARE DEEMED TO BE PLAN ASSETS OF A PLAN DESCRIBED
IN (A) OR (B) ABOVE (EACH, A “BENEFIT PLAN”) OR (D) A GOVERNMENTAL PLAN, CHURCH PLAN OR NON-U.S. PLAN THAT IS SUBJECT
TO ANY APPLICABLE LAW THAT IS SUBSTANTIALLY SIMILAR TO THE FIDUCIARY RESPONSIBILITY PROVISIONS OF ERISA OR SECTION 4975 OF THE
CODE (“SIMILAR LAW”) OR (II) ITS ACQUISITION, CONTINUED HOLDING AND DISPOSITION OF THIS NOTE WILL NOT RESULT IN A NON-EXEMPT
PROHIBITED TRANSACTION UNDER ERISA OR SECTION 4975 OF THE CODE OR A VIOLATION OF ANY SIMILAR LAW. BENEFIT PLANS MAY NOT ACQUIRE
THIS NOTE AT ANY TIME THAT THIS NOTE DOES NOT HAVE A CURRENT INVESTMENT GRADE RATING FROM A NATIONALLY RECOGNIZED STATISTICAL RATING
ORGANIZATION.

 

    	Exhibit A-2 (Page 2)

    	 

    

 

	REGISTERED

No. R- _________________	$63,091,483

CUSIP NO. 36159JDM0

 

GE CAPITAL CREDIT CARD

MASTER NOTE TRUST SERIES 2012-7

CLASS B SERIES 2012-7 FIXED RATE ASSET BACKED NOTE

 

GE Capital Credit Card
Master Note Trust (herein referred to as the “Issuer” or the “Trust”), a Delaware statutory trust governed
by a Trust Agreement dated as of September 25, 2003, for value received, hereby promises to pay to Cede & Co., or registered
assigns, subject to the following provisions, the principal sum of SIXTY THREE MILLION NINETY ONE THOUSAND FOUR HUNDRED EIGHTY
THREE DOLLARS, or such greater or lesser amount as determined in accordance with the Indenture, on the September 2022 Payment Date,
except as otherwise provided below or in the Indenture. The Issuer will pay interest on the unpaid principal amount of this Note
at the Class B Note Interest Rate on each Payment Date until the Final Payment Date (which is the earlier to occur of (a) the Payment
Date on which the Note Principal Balance is paid in full, (b) the date on which the Collateral Amount is reduced to zero and (c)
the September 2022 Payment Date). Interest on this Note will accrue for each Payment Date from and including the most recent Payment
Date on which interest has been paid to but excluding such Payment Date or, for the initial Payment Date, from and including the
Closing Date to but excluding such Payment Date. Interest will be computed on the basis of a 360-day year and twelve 30-day months
(and in the case of the initial interest period, for a period of 28 days). Principal of this Note shall be paid in the manner specified
in the Indenture Supplement referred to on the reverse hereof.

 

The principal of and
interest on this Note are payable in such coin or currency of the United States of America as at the time of payment is legal tender
for payment of public and private debts.

 

Reference is made to
the further provisions of this Note set forth on the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

 

Unless the certificate
of authentication hereon has been executed by or on behalf of the Indenture Trustee, by manual signature, this Note shall not be
entitled to any benefit under the Indenture or the Indenture Supplement referred to on the reverse hereof, or be valid for any
purpose.

 

THIS CLASS B NOTE IS
SUBORDINATED TO THE EXTENT NECESSARY TO FUND PAYMENTS ON THE CLASS A NOTES TO THE EXTENT SPECIFIED IN THE INDENTURE SUPPLEMENT.

 

    	Exhibit A-2 (Page 3)

    	 

    

 

IN WITNESS WHEREOF, the Issuer has caused this Class B Note
to be duly executed.

 

 

	 	GE CAPITAL CREDIT CARD MASTER NOTE TRUST, as Issuer
	 	 	 
	 	By:	BNY MELLON TRUST OF DELAWARE, not in its individual capacity but solely as
	 	 	Trustee on behalf of Issuer
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

  

Dated:_________________, _____

 

    	Exhibit A-2 (Page 4)

    	 

    

 

INDENTURE TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

 

This is one of the Class B Notes described in the within-mentioned
Indenture.

 

	 	DEUTSCHE BANK TRUST COMPANY AMERICAS, as Indenture Trustee
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	Exhibit A-2 (Page 5)

    	 

    

 

GE CAPITAL CREDIT CARD

MASTER NOTE TRUST SERIES 2012-7

CLASS B SERIES 2012-7 FIXED RATE ASSET BACKED NOTE

Summary of Terms and Conditions

 

This Class B Note is
one of a duly authorized issue of Notes of the Issuer, designated as GE Capital Credit Card Master Note Trust, Series 2012-7 (the
“Series 2012-7 Notes”), issued under a Master Indenture dated as of September 25, 2003 (as amended, the “Master
Indenture”), between the Issuer and Deutsche Bank Trust Company Americas, as indenture trustee (the “Indenture
Trustee”), as supplemented by the Indenture Supplement, dated as of October 17, 2012 (the “Indenture Supplement”),
and representing the right to receive certain payments from the Issuer. The term “Indenture,” unless the context otherwise
requires, refers to the Master Indenture as supplemented by the Indenture Supplement. The Notes are subject to all of the terms
of the Indenture. All terms used in this Note that are defined in the Indenture shall have the meanings assigned to them in or
pursuant to the Indenture. In the event of any conflict or inconsistency between the Indenture and this Note, the Indenture shall
control.

 

The Class A Notes and
the Class C Notes will also be issued under the Indenture.

 

The Noteholder, by
its acceptance of this Note, agrees that it will look solely to the property of the Issuer allocated to the payment of this Note
for payment hereunder and that neither the Owner Trustee nor the Indenture Trustee is liable to the Noteholders for any amount
payable under the Notes or the Indenture or, except in the case of the Indenture Trustee as expressly provided in the Indenture,
subject to any liability under the Indenture.

 

This Note does not
purport to summarize the Indenture and reference is made to the Indenture for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced thereby, and the rights, duties and immunities of the Indenture Trustee.

 

THIS CLASS B NOTE DOES
NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN, THE ISSUER, GE CAPITAL RETAIL BANK, RFS HOLDING, L.L.C., OR ANY OF THEIR AFFILIATES,
AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

 

The Issuer, the Indenture
Trustee and any agent of the Issuer or the Indenture Trustee shall treat the person in whose name this Class B Note is registered
as the owner hereof for all purposes, and neither the Issuer, the Indenture Trustee nor any agent of the Issuer or the Indenture
Trustee shall be affected by notice to the contrary.

 

THIS CLASS B NOTE SHALL
BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

    	Exhibit A-2 (Page 6)

    	 

    

 

ASSIGNMENT

 

Social Security or other identifying number of assignee _____________________________________________

 

FOR VALUE RECEIVED,
the undersigned hereby sells, assigns and transfers unto                                  
(name and address of assignee) the within certificate and all rights thereunder, and hereby irrevocably constitutes and appoints
                            
attorney, to transfer said certificate on the books kept for registration thereof, with full power of substitution in the premises.

 

	Dated:	 	 	 	**
	 	 	 	Signature Guaranteed:	 

 

 

	**	The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration, enlargement or any change whatsoever.

 

    	Exhibit A-2 (Page 7)

    	 

    

 

 

EXHIBIT A-3

FORM OF CLASS C SERIES 2012-7 FIXED RATE
ASSET BACKED NOTE

 

UNLESS THIS NOTE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER
OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

THIS NOTE HAS NOT BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY
NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT AS SET FORTH IN THE NEXT SENTENCE. BY ITS ACQUISITION HEREOF OR OF
A BENEFICIAL INTEREST HEREIN, THE HOLDER OF THIS NOTE:

 

		(1)	AGREES FOR THE BENEFIT OF THE ISSUER AND THE TRANSFEROR
THAT THIS NOTE MAY BE SOLD, TRANSFERRED, ASSIGNED, PARTICIPATED, PLEDGED OR OTHERWISE DISPOSED OF ONLY IN COMPLIANCE WITH THE
SECURITIES ACT AND OTHER APPLICABLE LAWS, AND ONLY (I) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”)
TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER, WITHIN THE MEANING OF RULE l44A (A “QIB”),
PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE,
PLEDGE, OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (II) TO THE DEPOSITOR OR ITS AFFILIATES, IN EACH CASE IN
ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES; AND

 

		(2)	AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS
NOTE OR AN INTEREST HEREIN IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.

 

THE HOLDER OF THIS
NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT WILL NOT AT ANY TIME DIRECTLY OR INDIRECTLY INSTITUTE OR CAUSE TO BE
INSTITUTED AGAINST THE ISSUER ANY BANKRUPTCY, REORGANIZATION, ARRANGEMENT, INSOLVENCY OR LIQUIDATION PROCEEDING OR OTHER PROCEEDING
UNDER ANY FEDERAL OR STATE BANKRUPTCY LAW UNLESS NOTEHOLDERS OF NOT LESS THAN 662⁄3% OF THE OUTSTANDING PRINCIPAL AMOUNT OF
EACH CLASS OF EACH SERIES HAS APPROVED SUCH FILING AND IT WILL NOT DIRECTLY OR INDIRECTLY INSTITUTE OR CAUSE TO BE INSTITUTED AGAINST
THE TRANSFEROR ANY BANKRUPTCY, REORGANIZATION, ARRANGEMENT, INSOLVENCY OR LIQUIDATION PROCEEDING OR OTHER PROCEEDING UNDER ANY
FEDERAL OR STATE BANKRUPTCY LAW IN ANY INSTANCE; PROVIDED, THAT THE FOREGOING SHALL NOT IN ANY WAY LIMIT THE NOTEHOLDER’S
RIGHTS TO PURSUE ANY OTHER CREDITOR RIGHTS OR REMEDIES THAT THE NOTEHOLDERS MAY HAVE FOR CLAIMS AGAINST THE ISSUER.

 

    	Exhibit A-3 (Page 1)

    	 

    

 

THE HOLDER OF THIS CLASS C NOTE, BY ACCEPTANCE
OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE CLASS C NOTES AS INDEBTEDNESS OF THE ISSUER
FOR APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON, OR MEASURED
BY, INCOME.

 

THE HOLDER OF THIS
NOTE BY ITS ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST THEREIN, SHALL BE DEEMED TO REPRESENT AND WARRANT
THAT EITHER (I) SUCH HOLDER IS NOT (AND FOR SO LONG AS IT HOLDS SUCH NOTE WILL NOT BE), IS NOT ACTING ON BEHALF OF (AND FOR SO
LONG AS IT HOLDS SUCH NOTE WILL NOT BE ACTING ON BEHALF OF), AND IS NOT INVESTING THE ASSETS OF (A) AN “EMPLOYEE BENEFIT
PLAN” (AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”))
THAT IS SUBJECT TO TITLE I OF ERISA, (B) A “PLAN” (AS DEFINED IN SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986,
AS AMENDED (THE “CODE”)) THAT IS SUBJECT TO SECTION 4975 OF THE CODE, (C) AN ENTITY WHOSE UNDERLYING ASSETS ARE DEEMED
TO BE PLAN ASSETS OF A PLAN DESCRIBED IN (A) OR (B) ABOVE (EACH, A “BENEFIT PLAN”) OR (D) A GOVERNMENTAL PLAN, CHURCH
PLAN OR NON-U.S. PLAN THAT IS SUBJECT TO ANY APPLICABLE LAW THAT IS SUBSTANTIALLY SIMILAR TO THE FIDUCIARY RESPONSIBILITY PROVISIONS
OF ERISA OR SECTION 4975 OF THE CODE (“SIMILAR LAW”) OR (II) ITS ACQUISITION, CONTINUED HOLDING AND DISPOSITION OF
THIS NOTE WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER ERISA OR SECTION 4975 OF THE CODE OR A VIOLATION OF ANY
SIMILAR LAW. BENEFIT PLANS MAY NOT ACQUIRE THIS NOTE AT ANY TIME THAT THIS NOTE DOES NOT HAVE A CURRENT INVESTMENT GRADE RATING
FROM A NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION.

 

    	Exhibit A-3 (Page 2)

    	 

    

 

	REGISTERED

No. R- ___________________________	$42,586,750

CUSIP NO. 36159JDN8

 

GE CAPITAL CREDIT CARD

MASTER NOTE TRUST SERIES 2012-7

 

CLASS C SERIES 2012-7 FIXED RATE ASSET BACKED
NOTE

 

GE Capital Credit Card
Master Note Trust (herein referred to as the “Issuer” or the “Trust”), a Delaware statutory
trust governed by a Trust Agreement dated as of September 25, 2003, for value received, hereby promises to pay to Cede & Co.,
or registered assigns, subject to the following provisions, the principal sum of FORTY TWO MILLION FIVE HUNDRED EIGHTY SIX THOUSAND
SEVEN HUNDRED FIFTY DOLLARS, or such greater or lesser amount as determined in accordance with the Indenture, on the September
2022 Payment Date, except as otherwise provided below or in the Indenture. The Issuer will pay interest on the unpaid principal
amount of this Note at the Class C Note Interest Rate on each Payment Date until the Final Payment Date (which is the earlier to
occur of (a) the Payment Date on which the Note Principal Balance is paid in full, (b) the date on which the Collateral Amount
is reduced to zero and (c) the September 2022 Payment Date). Interest on this Note will accrue for each Payment Date from and including
the most recent Payment Date on which interest has been paid to but excluding such Payment Date or, for the initial Payment Date,
from and including the Closing Date to but excluding such Payment Date. Interest will be computed on the basis of a 360-day year
and twelve 30-day months (and in the case of the initial interest period, for a period of 28 days). Principal of this Note shall
be paid in the manner specified in the Indenture Supplement referred to on the reverse hereof.

 

The principal of and
interest on this Note are payable in such coin or currency of the United States of America as at the time of payment is legal tender
for payment of public and private debts.

 

Reference is made to
the further provisions of this Note set forth on the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

 

Unless the certificate
of authentication hereon has been executed by or on behalf of the Indenture Trustee, by manual signature, this Note shall not be
entitled to any benefit under the Indenture or the Indenture Supplement referred to on the reverse hereof, or be valid for any
purpose.

 

THIS CLASS C NOTE IS
SUBORDINATED TO THE EXTENT NECESSARY TO FUND PAYMENTS ON THE CLASS A AND CLASS B NOTES TO THE EXTENT SPECIFIED IN THE INDENTURE
SUPPLEMENT.

 

    	Exhibit A-3 (Page 3)

    	 

    

 

IN WITNESS WHEREOF, the Issuer has caused this Class C Note
to be duly executed.

 

	 	GE
CAPITAL CREDIT CARD MASTER NOTE TRUST, as Issuer
	 	 	 
	 	By:	BNY MELLON TRUST OF DELAWARE
	 	 	not in its individual capacity but solely as
	 	 	Trustee on behalf of Issuer
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

Dated:_________________, _____

 

    	Exhibit A-3 (Page 4)

    	 

    

 

INDENTURE TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

 

This is one of the Class C Notes described in the within-mentioned
Indenture.

 

	 	DEUTSCHE BANK TRUST COMPANY AMERICAS, as Indenture Trustee
	 	 
	 	By:	 
	 	 	Authorized Signatory

 

    	Exhibit A-3 (Page 5)

    	 

    

 

GE CAPITAL CREDIT CARD

MASTER NOTE TRUST SERIES 2012-7

 

CLASS C SERIES 2012-7 FIXED RATE ASSET BACKED
NOTE

Summary of Terms and Conditions

 

This Class C Note is
one of a duly authorized issue of Notes of the Issuer, designated as GE Capital Credit Card Master Note Trust, Series 2012-7 (the
“Series 2012-7 Notes”), issued under a Master Indenture dated as of September 25, 2003 (as amended, the “Master
Indenture”), between the Issuer and Deutsche Bank Trust Company Americas, as indenture trustee (the “Indenture
Trustee”), as supplemented by the Indenture Supplement, dated as of October 17, 2012 (the “Indenture Supplement”),
and representing the right to receive certain payments from the Issuer. The term “Indenture,” unless the context otherwise
requires, refers to the Master Indenture as supplemented by the Indenture Supplement. The Notes are subject to all of the terms
of the Indenture. All terms used in this Note that are defined in the Indenture shall have the meanings assigned to them in or
pursuant to the Indenture. In the event of any conflict or inconsistency between the Indenture and this Note, the Indenture shall
control.

 

The Class A Notes and
the Class B Notes will also be issued under the Indenture.

 

The Noteholder, by
its acceptance of this Note, agrees that it will look solely to the property of the Issuer allocated to the payment of this Note
for payment hereunder and that neither the Owner Trustee nor the Indenture Trustee is liable to the Noteholders for any amount
payable under the Notes or the Indenture or, except in the case of the Indenture Trustee as expressly provided in the Indenture,
subject to any liability under the Indenture.

 

This Note does not
purport to summarize the Indenture and reference is made to the Indenture for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced thereby, and the rights, duties and immunities of the Indenture Trustee.

 

THIS CLASS C NOTE DOES
NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN, THE ISSUER, GE CAPITAL RETAIL BANK, RFS HOLDING, L.L.C., OR ANY OF THEIR AFFILIATES,
AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

 

The Issuer, the Indenture
Trustee and any agent of the Issuer or the Indenture Trustee shall treat the person in whose name this Class C Note is registered
as the owner hereof for all purposes, and neither the Issuer, the Indenture Trustee nor any agent of the Issuer or the Indenture
Trustee shall be affected by notice to the contrary.

 

THIS CLASS C NOTE SHALL
BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

    	Exhibit A-3 (Page 6)

    	 

    

 

ASSIGNMENT

 

Social Security or other identifying number of assignee ____________________________________

 

FOR VALUE RECEIVED,
the undersigned hereby sells, assigns and transfers unto                                  
(name and address of assignee) the within certificate and all rights thereunder, and hereby irrevocably constitutes and appoints
                            
attorney, to transfer said certificate on the books kept for registration thereof, with full power of substitution in the premises.

 

	Dated:	 	 	 	**
	 	 	 	Signature Guaranteed:	 

 

 

	**	The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration, enlargement or any change whatsoever.

 

    	Exhibit A-3 (Page 7)

    	 

    

 

EXHIBIT B

 

FORM OF MONTHLY NOTEHOLDER’S STATEMENT

 

Monthly Noteholder’s Statement

GE Capital Credit Card Master Note Trust

 

Series 2012-7

Class A 1.76% Notes

Class B 2.21% Notes

Class C 3.00% Notes

 

Pursuant to the Master
Indenture, dated as of September 25, 2003 (as amended and supplemented, the "Indenture")
between GE Capital Credit Card Master Note Trust (the "Issuer") and Deutsche
Bank Trust Company Americas, as indenture trustee (the "Indenture Trustee"),
as supplemented by the Series 2012-7 Indenture Supplement (the "Indenture Supplement"),
dated as of October 17, 2012, between the Issuer and the Indenture Trustee, the Issuer is required to prepare, or cause the Servicer
to prepare, certain information each month regarding current distributions to the Series 2012-7 Noteholders and the performance
of the Trust during the previous month. The information required to be prepared with respect to the Payment Date of [  l
], 20[ l ], and with respect to the performance of the Trust during the
Monthly Period ended [ l ], 20[ l
] is set forth below. Capitalized terms used herein are defined in the Indenture and the Indenture Supplement. The Discount Percentage
(as defined in the Transfer Agreement) remains at 0% for all the Receivables in the Trust until otherwise indicated. The undersigned,
an Authorized Officer of the Servicer, does hereby certify as follows: 

 

	Record Date:	[ l ], 20[ l ]
	Monthly Period Beginning:	[ l ], 20[ l ]
	Monthly Period Ending:	[ l ], 20[ l ]
	Previous Payment Date:	[ l ], 20[ l ]
	Payment Date:	[ l ], 20[ l ]
	Interest Period Beginning:	[ l ], 20[ l ]
	Interest Period Ending:	[ l ], 20[ l ]
	Days in Monthly Period:	[ l ]
	Days in Interest Period:	[ l ]
	Is there a Reset Date?	[No][Yes]

 

		I.	Trust Receivables Information

		a.	Number of Accounts Beginning

		b.	Number of Accounts Ending

		c.	Average Accounts Balance (q / b)

		d.	BOP Principal Receivables

		e.	BOP Finance Charge Receivables

 

    	Exhibit B (Page 1)

    	 

    

 

		f.	BOP Total Receivables

		g.	Increase in Principal Receivables from Additional Accounts

		h.	Increase in Principal Activity on Existing Securitized Accounts

		i.	Increase in Finance Charge Receivables from Additional Accounts

		j.	Increase in Finance Charge Activity on Existing Securitized Accounts

		k.	Increase in Total Receivables

		l.	Decrease in Principal Receivables due to Account Removal

		m.	Decrease in Principal Activity on Existing Securitized Accounts

		n.	Decrease in Finance Charge Receivables due to Account Removal

		o.	Decrease in Finance Charge Activity on Existing Securitized Accounts

		p.	Decrease in Total Receivables

		q.	EOP Aggregate Principal Receivables

		r.	EOP Finance Charge Receivables

		s.	EOP Total Receivables

		t.	Excess Funding Account Balance

		u.	Required Principal Balance

		v.	Minimum Free Equity Amount (EOP Aggregate Principal Receivables * 5.5%)

		w.	Free Equity Amount (EOP Principal Receivables - EOP Collateral Amount (II.d.ii+II.a.ii+II.b.ii+II.b.iii))
	 	 	 
	II.	 	Investor Information (Trust Level)
	 	 	 

		a.	Note Principal Balance (Sum of all Series)

		i.	Beginning of Interest Period

		ii.	Increase in Note Principal Balance due to New Issuance

		iii.	Decrease in Note Principal Balance due to Principal Paid

		iv.	As of Payment Date

	 	 	 
		b.	Excess Collateral Amount (Sum of all Series)

		i.	Beginning of Interest Period

		ii.	Additional Enhancement Amount

		iii.	Change to Excess Collateral Amount due to New Issuance

		iv.	Reductions in Required Excess Collateral Amount

		v.	Increase in Unreimbursed Investor Charge-Off

		vi.	Decrease in Unreimbursed Investor Charge-Off

		vii.	Increase in Unreimbursed Reallocated Principal Collections

		viii.	Decrease in Unreimbursed Reallocated Principal Collections

		ix.	As of Payment Date

 

    	Exhibit B (Page 2)

    	 

    

 

		c.	Principal Accumulation Account Balance

		i.	Beginning of Interest Period

		ii.	Controlled Deposit Amount

		iii.	Withdrawal for Principal Payment

		iv.	As of Payment Date

	 	 	 
		d.	Collateral Amount (Sum of all Series)

		i.	End of Prior Monthly Period
	 	ii.	Beginning of Interest Period (a.i + b.i)

	 	 	 
	III.	Trust Performance Data (Monthly Period)
	 	 	 

		a.	Gross Trust Yield (Finance Charge Collections + Recoveries / BOP Principal Receivables)

		i.	Current

		ii.	Prior Monthly Period

		iii.	Two Months Prior Monthly Period

		iv.	Three-Month Average

	 	 	 
		b.	Payment Rate (Principal Collections / BOP Principal Receivables)

		i.	Current

		ii.	Prior Monthly Period

		iii.	Two Months Prior Monthly Period

		iv.	Three-Month Average

	 	 	 
		c.	Gross Charge-Off Rate excluding Fraud (Default Amount for Defaulted Accounts – Fraud Amount / BOP Principal Receivables)

		i.	Current

		ii.	Prior Monthly Period

		iii.	Two Months Prior Monthly Period

		iv.	Three-Month Average

	 	 	 
		d.	Gross Charge-Off Rate (Default Amount for Defaulted Accounts / BOP Principal Receivables)

	 	 	 
		e.	Net Charge-Off Rate excluding Fraud (Default Amount for Defaulted Accounts – Recoveries – Fraud Amount / BOP Principal
Receivables

	 	 	 
		i.	Current

	 	 	 
		ii.	Prior Monthly Period

	 	 	 
		iii.	Two Months Prior Monthly Period

	 	 	 
		iv.	Three-Month Average

	 	 	 
		f.	Net Charge-Off Rate (Default Amount for Defaulted Accounts – Recoveries / BOP Principal Receivables)

 

    	Exhibit B (Page 3)

    	 

    

 

		g.	Trust excess spread percentage ((FC Coll – Charged-Off Rec – Monthly Interest +/- Net Swaps – Monthly Servicing
Fee) / BOP Principal Receivables)

	 	 	 
		h.	Default Amount for Defaulted Accounts

	 	 	 
		i.	Recoveries

	 	 	 
		j.	Collections

		i.	Total Trust Finance Charge Collections

		ii.	Total Trust Principal Collections

		iii.	Total Trust Collections

 

	k.   Delinquency Data	Percentage	 	Total
    Receivables
	              i.    1-29 Days Delinquent	 	 	 
	              ii.    30-59 Days Delinquent	 	 	 
	              iii.   60-89 Days Delinquent	 	 	 
	              iv.   90-119 Days Delinquent	 	 	 
	              v.   120-149 Days Delinquent	 	 	 
	              vi.   150-179 Days Delinquent	 	 	 
	              vii. 180 or Greater Days Delinquent	 	 	 

 

		IV.	Series Performance Data

	 	 	 
		a.	Portfolio Yield (Finance Charge Collections + Recoveries – Aggregate Investor Default Amount + PAA Inv Proceeds / BOP
Collateral)

		i.	Current

		ii.	Prior Monthly Period

		iii.	Two Months Prior Monthly Period

		iv.	Three-Month Average

	 	 	 
		b.	Base Rate (Noteholder Servicing Fee + Admin Fee + Monthly Interest / + Swap Payments – Swap Receipts / BOP Collateral)

		i.	Current

		ii.	Prior Monthly Period

		iii.	Two Months Prior Monthly Period

		iv.	Three-Month Average

	 	 	 
		c.	Excess Spread Percentage (Portfolio Yield – Base Rate)

		i.	Current

		ii.	Prior Monthly Period

		iii.	Two Months Prior Monthly Period

		iv.	Quarterly Excess Spread Percentage

	 	 	 
	V.	Investor Information Regarding Distributions to Noteholders

	 	 	 
		a.	The total amount of the distribution to Class A Noteholders per $1000 Note Initial Principal Balance.

 

    	Exhibit B (Page 4)

    	 

    

 

		b.	The amount of the distribution set forth in paragraph a. above in respect of interest on the Class A Notes, per $1000 Note
Initial Principal Balance.

	 	 	 
		c.	The amount of the distribution set forth in paragraph a. above in respect of principal on the Class A Notes, per $1000 Note
Initial Principal Balance.

	 	 	 
		d.	The total amount of the distribution to Class B Noteholders per $1000 Note Initial Principal Balance.

	 	 	 
		e.	The amount of the distribution set forth in paragraph d. above in respect of interest on the Class B Notes, per $1000 Note
Initial Principal Balance.

	 	 	 
		f.	The amount of the distribution set forth in paragraph d. above in respect of principal on the Class B Notes, per $1000 Note
Initial Principal Balance.

	 	 	 
		g.	The total amount of the distribution to Class C Noteholders per $1000 Note Initial Principal Balance.

	 	 	 
		h.	The amount of the distribution set forth in paragraph g. above in respect of interest on the Class C Notes, per $1000 Note
Initial Principal Balance.

	 	 	 
		i.	The amount of the distribution set forth in paragraph g. above in respect of principal on the Class C Notes, per $1000 Note
Initial Principal Balance.
	 	 	 
	VI.	 	Investor Information
	 	 	 

		a.	Class A Note Initial Principal Balance

		b.	Class B Note Initial Principal Balance

		c.	Class C Note Initial Principal Balance

		d.	Initial Excess Collateral Amount

		e.	Initial Collateral Amount

	 	 	 
		f.	Class A Note Principal Balance

		i.	Beginning of Interest Period

		ii.	Principal Payment

		iii.	As of Payment Date

	 	 	 
		g.	Class B Note Principal Balance

		i.	Beginning of Interest Period

		ii.	Principal Payment

		iii.	As of Payment Date

	 	 	 
		h.	Class C Note Principal Balance

		i.	Beginning of Interest Period

		ii.	Principal Payment

		iii.	As of Payment Date

 

    	Exhibit B (Page 5)

    	 

    

 

		i.	Excess Collateral Amount

		i.	Beginning of Interest Period

		ii.	Increase in Excess Collateral Amount in connection with the Supplemental Indenture

iii. Reduction in Excess Collateral
Amount

		iv.	As of Payment Date

	 	 	 
		j.	Collateral Amount

		i.	Beginning of Interest Period

		ii.	Increase in Excess Collateral Amount in connection with the Supplemental Indenture

iii. Increase/Decrease in Unreimbursed
Investor Charge-Offs

		iv.	Increase/Decrease in Reallocated Principal Collections

		v.	Reduction in Excess Collateral Amount

		vi.	Principal Accumulation Account Deposit

		vii.	As of Payment Date

viii. Collateral Amount as
a Percentage of Note Trust Principal Balance

ix. Amount by which Note Principal
Balance exceeds Collateral Amount

	 	 	 
		k.	Required Excess Collateral Amount

	 	 	 
		VII.	Investor Charge-Offs and Reallocated Principal Collections

(Section references relate to Indenture Supplement)

	 	 	 
		a.	Beginning Unreimbursed Investor Charge-Offs

		b.	Current Unreimbursed Investor Defaults

		c.	Current Unreimbursed Investor Uncovered Dilution Amount

		d.	Current Reimbursement of Investor Charge-Offs pursuant to Section 4.4(a)(vii)

		e.	Ending Unreimbursed Investor Charge-Offs

		f.	Beginning Unreimbursed Reallocated Principal Collections

		g.	Current Reallocated Principal Collections pursuant to Section 4.7

		h.	Current Reimbursement of Reallocated Principal Collections pursuant to Section 4.4(a)(vii)

		i.	Ending Unreimbursed Reallocated Principal Collections

	 	 	 
		VIII.	Investor Percentages –BOP Balance and Series Account Information

		a.	Allocation Percentage Numerator – for Finance Charge Collections and Default Amounts

		b.	Allocation Percentage Numerator – for Principal Collections

		c.	Allocation Percentage Denominator

		i.	Aggregate Principal Receivables Balance as of Prior Monthly Period

 

    	Exhibit B (Page 6)

    	 

    

 

		ii.	Number of Days at Balance

		iii.	Average Principal Balance

		d.	Sum of Allocation Percentage Numerators for all outstanding Series with respect to Finance Charge Collections and Default Amounts

		e.	Sum of Allocation Percentage Numerators for all outstanding Series with respect to Principal Collections

		f.	Allocation Percentage, Finance Charge Collections and Default Amount (a./greater of c.iii. or d.)

		g.	Allocation Percentage, Principal Collections (b./ greater of c.iii. or e.)

		h.	Series Allocation Percentage
	 	 	 
	IX.	 	Collections and Allocations
	 	 	 

	 	Trust	 	Series
	        a.   Finance Charge Collections	 	 	 
	        b.   Recoveries	 	 	 
	        c.   Principal Collections	 	 	 
	        d.   Default Amount	 	 	 
	        e.   Dilution	 	 	 
	        f.    Investor Uncovered Dilution Amount	 	 	 
	        g.   Dilution including Fraud Amount	 	 	 

		h.	Available Finance Charge Collections

		i.	Investor Finance Charge Collections

		ii.	Excess Finance Charge Collections allocable to Series 2012-7

		iii.	Principal Accumulation Account Investment Proceeds

		iv.	Investment earnings in the Reserve Account

		v.	Reserve Account Draw Amount

vi. Net Swap Receipts

		vii.	Recoveries

		i.	Available Finance Charge Collections (Sum of h.i through h.vii)

		j.	Total Collections to Series

		k.	Total Finance Charge Collections deposited in the Collection Account (net of any amounts distributed to Transferor and owed
to Servicer)
	 	 	 
	X.	 	Application of Available Funds pursuant to Section 4.4(a) of the Indenture Supplement
	 	 	 

		a.	Available Finance Charge Collections

		i.	On a pari passu basis:

		a.	Payment to the Indenture Trustee, to a maximum of $25,000

		b.	Payment to the Trustee, to a maximum of $25,000

 

    	Exhibit B (Page 7)

    	 

    

 

		c.	Payment to the Administrator, to a maximum of $25,000

	 	 	 
		ii.	To the Servicer:

		a.	Noteholder Servicing Fee

		b.	Noteholder Servicing Fee previously due but not paid

		c.	Total Noteholder Servicing Fee

	 	 	 
		iii.	On a pari passu basis:

		a.	Class A Monthly Interest

		b.	Class A Deficiency Amount

		c.	Class A Additional Interest

		d.	Class A Additional Interest not paid on prior Payment Date

	 	 	 
		iv.	On a pari passu basis:

		a.	Class B Monthly Interest

		b.	Class B Deficiency Amount

		c.	Class B Additional Interest

		d.	Class B Additional Interest not paid on prior Payment Date

	 	 	 
		v.	On a pari passu basis:

		a.	Class C Monthly Interest

		b.	Class C Deficiency Amount

		c.	Class C Additional Interest

		d.	Class C Additional Interest not paid on prior Payment Date

	 	 	 
		vi.	To be treated as Available Principal Collections

		a.	Aggregate Investor Default Amount

		b.	Aggregate Investor Uncovered Dilution Amount

	 	 	 
		vii.	To be treated as Available Principal Collections, to the extent not previously reimbursed

		a.	Investor Charge-offs

		b.	Reallocated Principal Collections

	 	 	 
		viii.	Excess of Required Reserve Account Amount Over Available Reserve Account Amount

	 	 	 
		ix.	Amounts required to be deposited to the Spread Account

	 	 	 
		x.	To be treated as Available Principal Collections: Series Allocation Percentage of Minimum Free Equity Shortfall

	 	 	 
		xi.	Unless an Early Amortization Event has occurred, amounts that have not been paid pursuant to (a)(i) above

	 	 	 
		xii.	The balance, if any, will constitute a portion of Excess Finance Charge Collections for such Payment Date and first will be
available for allocation to other Series in Group One and, then:

 

    	Exhibit B (Page 8)

    	 

    

 

		a.	Unless an Early Amortization Event has occurred, to the Transferor; and

		b.	If an Early Amortization Event has occurred, first, to pay Monthly Principal in accordance with Section 4.4(c) of the Indenture
to the extent not paid in full from Available Principal Collections (calculated without regard to amounts available to be treated
as Available Principal Collections pursuant to this clause), second, to pay on a pari passu basis any amounts owed to such Persons
listed in clause (a)(i) above that have been allocated to Series 2012-7 in accordance with Section 8.4(d) of the Indenture and
that have not been paid pursuant to clauses (a)(i) and (a)(xi) above, and, third, any amounts remaining after payment in full of
the Monthly Principal and amounts owed to such Persons listed in clause (a)(i) above shall be paid to the Issuer.

	 	 	 
	XI.	 	Excess Finance Charge Collections (Group One)
	 	 	 
		a.	Total Excess Finance Charge Collections in Group One

	 	 	 
		b.	Finance Charge Shortfall for Series 2012-7

	 	 	 
		c.	Finance Charge Shortfall for all Series in Group One

	 	 	 
		d.	Excess Finance Charges Collections Allocated to Series 2012-7

	 	 	 
		XII.	Available Principal Collections and Distributions (Section references relate to Indenture Supplement)

	 	 	 
		a.	Investor Principal Collections

	 	 	 
		b.	Less: Reallocated Principal Collections for the Monthly Period pursuant to Section 4.7

	 	 	 
		c.	Plus: Shared Principal Collections allocated to this Series

	 	 	 
		d.	Plus: Aggregate amount to be treated as Available Principal Collections pursuant to Section 4.4(a)(vi)

	 	 	 
		e.	Plus: Aggregate amount to be treated as Available Principal Collections pursuant to Section 4.4(a)(vii)

	 	 	 
		f.	Plus: During an Early Amortization Period, the amount of Available Finance Charge Collections used to pay principal on the
Notes pursuant to Section 4.4(a)(xiii)

	 	 	 
		g.	Available Principal Collections (Deposited to Principal Account)

		i.	During the Revolving Period, Available Principal Collections treated as Shared Principal Collections pursuant to Section 4.4(b)

 

    	Exhibit B (Page 9)

    	 

    

 

		ii.	During the Controlled Accumulation Period, Available Principal Collections deposited to the Principal Accumulation Account
pursuant to Section 4.4(c)(i), (ii)

		iii.	During the Early Amortization Period, Available Principal Collections deposited to the Distribution Account pursuant to Section
4.4(c)

		iv.	Series Shared Principal Collections available to Group One pursuant to Section 4.4(c)(iii)

		v.	Principal Distributions pursuant to Section 4.4(e) in order of priority

		a.	Principal paid to Class A Noteholders

		b.	Principal paid to Class B Noteholders

		c.	Principal paid to Class C Noteholders

		vi.	Total Principal Collections Available to Share (Inclusive of Series 2012-7)

		vii.	Series Principal Shortfall

		viii.	Shared Principal Collections allocated to this Series from other Series

	 	 	 
		XIII.	Series 2012-7 Accumulation

	 	 	 
		a.	Controlled Accumulation Period Length in months (scheduled)

	 	 	 
		b.	Controlled Accumulation Amount

	 	 	 
		c.	Controlled Deposit Amount

	 	 	 
		d.	Accumulation Shortfall

	 	 	 
		e.	Principal Accumulation Account Balance

		i.	Beginning of Interest Period

		ii.	Controlled Deposit Amount

		iii.	Withdrawal for Principal Payment

		iv.	As of Payment Date

	 	 	 
		XIV.	Reserve Account Funding (Section references relate to Indenture Supplement)

	 	 	 
		a.	Reserve Account Funding Date (scheduled)

	 	 	 
		b.	Required Reserve Account Amount (0.50% of Note Principal Balance beginning on Reserve Account Funding Date)

	 	 	 
		c.	Beginning Available Reserve Account Amount

	 	 	 
		d.	Reserve Draw Amount

	 	 	 
		e.	Deposit pursuant to 4.4(a)(viii) the excess of b. over c.

	 	 	 
		f.	Withdrawal for Reserve Account Surplus paid to Transferor pursuant to Section 4.10(d)

	 	 	 
		g.	Withdrawal for Reserve Account Surplus paid to Transferor pursuant to Section 4.10(e)

 

    	Exhibit B (Page 10)

    	 

    

 

		h.	Ending Available Reserve Account Amount
	 	 	 
	XV.	 	Spread Account Funding (Section references relate to Indenture Supplement)
	 	 	 

		a.	Spread Account Percentage

	 	 	 
		b.	Required Spread Account Amount

	 	 	 
		c.	Beginning Available Spread Account Amount

	 	 	 
		d.	Withdrawal pursuant to 4.11(a) – Section 4.4(a)(v) Shortfall

	 	 	 
		e.	Withdrawal pursuant to 4.11(b) – Class C Expected Principal Payment Date

	 	 	 
		f.	Withdrawal pursuant to 4.11(c) – Early Amortization Event

	 	 	 
		g.	Withdrawal pursuant to 4.11(d) – Event of Default

	 	 	 
		h.	Deposit pursuant to 4.4(a)(ix) – Spread Account Deficiency

	 	 	 
		i.	Withdrawal pursuant to 4.11(f) – Spread Account Surplus Amount
	 	 	 
	 	j.	Ending Available Spread Account Amount
	 	 	 

	XVI.	 	Series Early Amortization Events
	 	 	 

		a.	The Free Equity Amount is less than the Minimum Free Equity Amount
	 	 	 
	 	 	Free Equity:

 

		i.	Free Equity Amount

		ii.	Minimum Free Equity Amount

		iii.	Excess Free Equity Amount

	 	 	 
		b.	The Note Trust Principal Balance is less than the Required Principal Balance Note Trust Principal Balance:

		i.	Note Trust Principal Balance

		ii.	Required Principal Balance

		iii.	Excess Principal Balance

	 	 	 
		c.	The three-month Average Portfolio Yield is less than three-month average Base Rate Portfolio Yield:

		i.	Three month Average Portfolio Yield

		ii.	Three month Average Base Rate

		iii.	Three Month Average Excess Spread

	 	 	 
		d.	The Note Principal Balance is outstanding beyond the Expected Principal Payment Date

		i.	Expected Principal Payment Date

		ii.	Current Payment Date

	 	 	 
		e.	Are there any material modifications, extensions or waivers to pool asset terms, fees penalties or payments?

 

    	Exhibit B (Page 11)

    	 

    

 

		f.	Are there any material breaches or pool of assets representations and warranties or covenants?

	 	 	 
		g.	Are there any material changes in criteria used to originate, acquire, or select new pool assets?

	 	 	 
		h.	Has an early amortization event occurred?

  

IN WITNESS WHEREOF,
the undersigned has duly executed this Monthly Noteholder's Statement as of the ___ day of _____________.

 

	 	GENERAL ELECTRIC CAPITAL CORPORATION, as Servicer
	 	 
	 	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	Exhibit B (Page 12)

    	 

    

 

SCHEDULE I

PERFECTION REPRESENTATIONS, WARRANTIES

AND COVENANTS (WITH RESPECT TO RECEIVABLES)

 

(a)              In addition
to the representations, warranties and covenants contained in the Indenture, the Issuer hereby represents, warrants and covenants
to the Indenture Trustee as follows as of the Closing Date:

 

(1)              The Indenture
creates a valid and continuing security interest (as defined in the applicable UCC) in the Receivables in favor of the Indenture
Trustee, which security interest is prior to all other Liens, and is enforceable as such against creditors of and purchasers from
the Issuer.

 

(2)              The Receivables
constitute either “accounts” or “general intangibles” within the meaning of the applicable UCC.

 

(3)              The Issuer owns
and has good and marketable title to the Receivables free and clear of any Lien, claim or encumbrance of any Person.

 

(4)              There are no
consents or approvals required for the pledge of the Receivables to the Indenture Trustee pursuant to the Indenture.

 

(5)              The Issuer (or
the Administrator on behalf of the Issuer) has caused the filing of all appropriate financing statements in the proper filing office
in the appropriate jurisdictions under applicable law in order to perfect the security interest granted to the Indenture Trustee
under the Indenture in the Receivables.

 

(6)              Other than the
pledge of the Receivables to the Indenture Trustee pursuant to the Indenture, the Issuer has not pledged, assigned, sold, granted
a security interest in, or otherwise conveyed the Receivables. The Issuer has not authorized the filing of and is not aware of
any financing statements against the Issuer that include a description of the Receivables, except for the financing statement filed
pursuant to the Indenture.

 

(7)              Notwithstanding
any other provision of the Indenture, the representations and warranties set forth in this Schedule I shall be continuing,
and remain in full force and effect, until such time as the Series 2012-7 Notes are retired.

 

(b)              The Indenture
Trustee covenants that it shall not, without satisfying the Rating Agency Condition, waive a breach of any representation or warranty
set forth in this Schedule I.

 

(c)              The Issuer covenants
that in order to evidence the interests of the Issuer and the Indenture Trustee under the Indenture, the Issuer shall take such
action, or execute and deliver such instruments as may be necessary or advisable (including, without limitation, such actions as
are requested by the Indenture Trustee) to maintain and perfect, as a first priority interest, the Indenture Trustee’s security
interest in the Receivables.

 

    	Schedule I (Page 1)Exhibit
10.1

 

LOAN AGREEMENT

 

This LOAN AGREEMENT is made as of October 4,
2012, by and among (a) ThermoEnergy Corporation, a Delaware corporation (“ThermoEnergy”), (b) ThermoEnergy
Power Systems, LLC, a Delaware limited liability company (“ThermoEnergy Power Systems”), (c) CASTion
Corporation, a Massachusetts corporation (“CASTion”, and together with ThermoEnergy and ThermoEnergy
Power Systems, the “Borrowers”) and (d) C13 Thermo LLC, a Delaware limited liability company (together
with its successors and assigns, to the extent permitted under Section 10.9 below, (the “Lender”).

 

In consideration of the mutual covenants
contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the Borrowers and the Lender agree as follows:

 

section
1.          DEFINITIONS.

 

All capitalized terms not defined herein
but defined in Appendix A attached hereto shall have the meanings given to such terms therein. All terms defined
in this Agreement shall also have such defined meanings when used in the other Loan Documents or any certificate or other document
made or delivered pursuant hereto or thereto, unless otherwise specified herein or therein.

 

All references in this Agreement to Sections,
Exhibits, Schedules and Appendices refer to the sections, exhibits, schedules and appendices of this Agreement unless otherwise
indicated. All Schedules, Appendices and Exhibits attached to this Agreement are incorporated herein and made a part hereof.

 

section
2.          LOANS.

 

2.1           General.
Subject to the terms and conditions hereof, the Lender agrees to make loans (hereinafter referred to collectively as the “Loans”
and each singly as a “Loan”) in an
aggregate principal amount not to exceed the Commitment. Subject to Borrower’s compliance with the Weekly Budget to the satisfaction
of Lender, Loans shall be advanced to the Borrowers from time to time in response to Loan Requests submitted in accordance Section
4.3.

 

2.2           Note.
Contemporaneously with the execution and delivery of this Agreement, the Borrowers shall execute and deliver to the Lender a certain
Note, dated of even date herewith (the “Note”), from
the Borrowers, made payable to the order of the Lender, in the original principal amount of up to Seven Hundred Thousand and 00/100
Dollars ($700,000.00). The Note shall be substantially in the form of Exhibit A
attached hereto and shall be duly executed by the Borrowers. 

 

2.3           Use
of Proceeds. The proceeds from the Loans shall be used by the Borrowers solely to
finance the fabrication and testing of the System in accordance with the Weekly Budget and for the reimbursement of the Lender’s
fees and expenses, as set forth in Section 3.10.

 

2.4           Interest
Rate. Subject to the provisions of Section 2.5(a),
the Loans shall not accrue interest. On the Maturity Date, such earlier date as the Loans may become due in accordance with this
Agreement or the date of prepayment of the Loans, the Borrowers shall pay to the Lender a fee (the “Commitment
Fee”) in an amount equal to ten percent (10%) of the aggregate
principal amount of the Loans borrowed pursuant to the terms of this Agreement.

 

    	 

    	 

    

 

2.5           Default
Rate.

 

(a)          Upon
the occurrence and during the continuance of an Event of Default, the Lender may, at its option, by written notice to the Borrowers,
declare that the unpaid principal amount of the Loans, together with the fees, expenses and all other amounts due and payable under
the Loan Documents shall accrue interest at a rate equal to Eight and 00/100 Percent (8.00%) per annum (such sum, the “Default
Rate”) from and after the date of such written notice. Upon the occurrence of an Event of Default under Section
8.1(f) or Section 8.1(g), any such increase described in the foregoing sentence shall occur automatically without
notice to the Borrowers. Interest per annum shall be calculated on the basis of actual number of days elapsed and an assumed 360-day
year and shall compound on the last day of each calendar month. Therefore, principal and all other amounts outstanding hereunder
for all or any part of a day shall accrue interest equal to 1/360th of the per annum interest accruing hereunder. Interest shall
accrue on each day or part thereof that any principal or other amount is outstanding, including Sundays, legal holidays and other
non-business days.

 

(b)          Notwithstanding
any provision contained in this Agreement or any other Loan Document to the contrary, in no event shall the amount paid or agreed
to be paid by the Borrowers (or any other Person) as interest or as a premium on the Note
or any other Obligations exceed the highest lawful rate permissible under any law applicable thereto.

 

2.6           Repayment
of Note. 

 

(a)          Subject
to the provisions of Section 8.1, no payment of principal or interest shall be due under the Note until the Maturity Date.

 

(b)          On
the Maturity Date (or such earlier date on which the Note become due and payable pursuant to Section 8.1), the entire remaining
outstanding balance of the Note (including without limitation, all unpaid principal, all accrued but unpaid interest and all unpaid
fees (including, without limitation, the Commitment Fee), charges, costs and expenses) shall be immediately due and payable in
full.

 

2.7           Method
of Payment. 

 

All payments (including
prepayments) to be made by the Borrowers hereunder, whether on account of principal, interest, fees or otherwise, shall be made
without set off or counterclaim and shall be made prior to 12:00 Noon, Boston, Massachusetts time, on the due date thereof to the
Lender, at the Lender’s office specified in Section 10.5 (or such other place as the Lender may specify in writing
from time to time), in Dollars and in immediately available funds. Payments received by the Lender after such time shall be deemed
to have been received on the next Business Day.

 

    	-2-

    	 

    

 

2.8           Prepayments.

 

(a)          The
Borrowers may at any time and from time to time prepay the Note, in whole or in part, without premium or penalty.

 

(b)          All
amounts received for the prepayment of Note shall be applied to the Obligations as follows: first, to any unpaid fees (including,
without limitation, the Commitment Fee), charges, costs and expenses then due and payable under this Agreement or any of the other
Loan Documents to the Lender; second, to any accrued and unpaid interest, if any, then due and owing under the Note to the
Lender; and third, to the unpaid principal balance then due and payable under the Note to the Lender. Any amounts prepaid
on account of the Note may not be reborrowed.

 

2.9           Termination
of Loan Documents; Release of Liens. Upon receipt by the Lender of payment and satisfaction
in full in cash of the Obligations, the Lender agrees that: 

 

(a)          the
Loan Documents shall, without further action, terminate and be of no further force or effect;

 

(b)          the
Lender’s security interests in and Liens on all Collateral, granted by or arising under the Loan Documents shall be, automatically
and without further action, terminated, released and discharged;

 

(c)          the
Borrowers may prepare and file such UCC-3 termination statements as the Borrowers may reasonably deem necessary or desirable in
connection with the termination of the security interests and Liens set forth in Section 2.9(b) above; and

 

(d)          at
the request of any Borrower, the Lender will execute and deliver such additional instruments and other writings, and take such
other action, as such Borrower may reasonably request to effect or evidence the satisfaction of the Obligations, the termination
of the effectiveness of the Loan Documents or any instruments executed pursuant thereto, or the release of any Liens or security
interests in favor of the Lender.

 

section
3.          CONDITIONS PRECEDENT TO EFFECTIVENESS.

 

The effectiveness of this Agreement and
the agreement of the Lender to make the Loans is subject to the satisfaction of the following conditions precedent:

 

3.1           Loan
Documents. The Lender shall have received the following Loan Documents, each as duly
executed and delivered by the parties thereto: (a) this Agreement; (b) the Note; (c) the Security Agreements (other than the Control
Agreement) and (d) the Letter of Credit in form and substance satisfactory to the Lender.

 

3.2           Actions
to Perfect Liens. The Lender shall have received evidence in form and substance reasonably
satisfactory to it that all filings, recordings and registrations, including, without limitation, the filing of duly executed financing
statements on form UCC-1, reviewed and approved by Lender, necessary or, in the opinion of the Lender, desirable to perfect the
Liens created by the Security Documents shall have been completed (or, to the extent that any such filings, recordings, registrations
and other actions shall not have been completed, arrangements satisfactory to the Lender for the completion thereof shall have
been made).

 

    	-3-

    	 

    

 

3.3           Lien
Searches. The Lender shall have received at least one (1) Business Day prior
to the Closing Date the results of a recent search by a Person reasonably satisfactory to the Lender, of the UCC, judgment and
tax lien filings which may have been filed with respect to personal property of the Borrowers in the jurisdictions set forth in
Schedule 3.3, and the results of such search shall be satisfactory to the
Lender.

 

3.4           UCC-3
Termination Statements. The Lender shall have received UCC-3 termination statements
and any other instrument necessary to terminate the Liens granted by the Borrowers to any Person (other than Permitted Liens)(or,
to the extent that any such UCC-3 termination statements or any other instrument shall not have been obtained and filed, arrangements
satisfactory to the Lender for the obtaining and filing thereof shall have been made).

 

3.5           Corporate
Proceedings of the Borrowers. The Lender shall have received a copy of the resolutions,
in form and substance satisfactory to the Lender, of the board of directors (or other equivalent governing body) of each Borrower
authorizing (i) the execution, delivery and performance by such Borrower such of this Agreement and the other Loan Documents to
which it is a party, (ii) the issuance by such Borrower of the Note contemplated hereunder and (iii) the granting by it of the
Liens created pursuant to the Security Documents to which such Borrower is a party, all as certified by the Secretary or other
appropriate officer of such Borrower as of the Closing Date, which certificate shall be in form and substance reasonably satisfactory
to the Lender.

 

3.6           Borrower
Incumbency Certificates. The Lender shall have received a certificate of each Borrower,
dated as of the Closing Date, as to the incumbency and signature of the officers of such Borrower executing any Loan Document reasonably
satisfactory in form and substance to the Lender, executed by the President or any Vice President and the Secretary or other appropriate
officer of such Borrower.

 

3.7           Corporate
Documents. The Lender shall have received true and complete copies of the Certificate
(or Articles) of Incorporation (or Organization) and By-Laws of each Borrower, as certified as of the Closing Date as complete
and correct copies thereof by the Secretary or other appropriate officer of each Borrower.

 

3.8           Legal
Existence, Good Standing, Tax Good Standing and Foreign Qualification Certificates.
The Lender shall have received certificates of legal existence, good standing, tax good standing and foreign qualification for
each of the Borrowers, all of recent date issued by the appropriate Governmental Authorities.

 

3.9           Other
Insurance. The Lender shall have received evidence in form and substance satisfactory
to it that all of the requirements of Section 6.7 and those provisions of
the Security Documents requiring the maintenance of insurance shall have been satisfied, including certificates of insurance of
the Borrowers and, within 30 days after the Closing Date, endorsements naming Lender as lender’s loss payee and additional
insured with respect to such insurance.

 

3.10         Fees
and Expenses. The Lender shall have received (a) as contemplated by Section 10.5(c),
reimbursement of all legal fees, expenses and disbursements incurred by counsel to the Lender in connection with the transactions
contemplated herein, and (b) reimbursement of all other out-of-pocket costs and expenses incurred by the Lender in connection with
the transactions contemplated herein.

 

    	-4-

    	 

    

 

3.11         Representations
and Warranties. Each of the representations and warranties made by the Borrowers in
or pursuant to the Loan Documents shall be true and correct in all material respects on and as of the Closing Date as if made on
and as of such date, except to the extent such representations and warranties expressly relate to an earlier date in which case
such representations and warranties shall be true and correct in all material respects as of such earlier date.

 

3.12         No
Default. No Default or Event of Default shall have occurred and be continuing on such
date or after giving effect to the issuance of the Note.

 

3.13         Weekly
Budget. The Lender shall have received an operating budget (as amended with the written
consent of the Lender, in its sole discretion, the “Weekly Budget”)
setting forth the schedule of operations, progress and purchases with respect to the fabrication and testing of the System on a
weekly basis for the period from the Closing Date to five (5) months after the Closing Date, which shall be in form and substance
satisfactory to the Lender.

 

3.14         Other
Matters. The Lender shall have received, in form and substance satisfactory to it,
such other assurances, documents or consents related to the foregoing as the Lender may reasonably require.

 

section
4.          CONDITIONS PRECEDENT TO EACH LOAN

 

The obligation of the
Lender to make any Loan (including its initial Loan) hereunder or to honor any request for a Loan is subject to the following conditions
precedent:

 

4.1           Truth
and Correctness of Representations and Warranties. The representations and warranties of the Borrowers contained in Section
5 or any other Loan Document, or that are contained in any document furnished at any time under or in connection herewith or
therewith, shall be true and correct on and as of the date of such Loan, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date, except that for purposes
of this Section 4, the representations and warranties contained in Section 5.1 shall be deemed to refer
to the financial statements indicated therein or, if more recent, the financial statements furnished pursuant to Section 6.1(a)
and (b).

 

4.2           No
Default. No Default or Event of Default exists or is occurring and no Default shall result from the proposed Loan or from the
application of the proceeds thereof or from the honoring of any request for the proposed Loan.

 

4.3           Requests
for Loans. Not later than 1:00 p.m. Boston time two (2) Business Days prior to the requested date of any Loan, the Lender shall
have received a Loan Request substantially in the form of Exhibit 4.3 attached hereto, duly completed and executed by a
Responsible Officer of each Borrower, and (i) with respect to purchases of equipment and materials necessary to complete the Project
(A) attaching copies of invoices for purchases of such equipment and/or materials and (B) proof that the amount of the applicable
Loan is equal to the aggregate amount actually paid for such equipment and materials by the Borrowers to vendors during the prior
week in accordance with the Weekly Budget; (ii) a weekly report included in Schedule 1 thereto containing (w) a narrative of work
progress made on the system during the previous week, (x) a narrative forecast of work to be completed during the current week,
(y) a rolling two (2) week forecast detailing milestones, cash flow (including deposits and progress payments to vendors) and critical
path deliveries and (z) a comparison of the current project status to the original Weekly Budget with respect to the timing of
task, procurement, cash flow and completion or (ii) with respect to working capital contemplated by the Weekly Budget, indicating
the amount of working capital required, and such supporting documentation as the Lender may from time to time reasonably request.

 

    	-5-

    	 

    

 

4.4           Weekly
Budget. The Borrowers shall not be more than two (2) weeks behind the fabrication and testing schedule set forth on the Weekly
Budget.

 

4.5           Other
Matters.  The Lender shall have received, in form and substance satisfactory to it, such other assurances, documents
or consents related to the foregoing as the Lender may reasonably require.

 

Each Loan Request shall
be deemed to be a representation and warranty that the conditions specified in Section 4.1 and Section 4.2
have been satisfied on and as of the date of the making of the applicable Loan or the honoring of the applicable request for a
Loan. Without limiting any of its other rights hereunder, the Lender shall have no obligation to make further Loans for so long
as the Borrowers have not satisfied the condition set forth in Section 4.4.

 

section
5.          REPRESENTATIONS AND WARRANTIES.

To induce the Lender to enter into this
Agreement and to make the Loans, each Borrower hereby represents and warrants to the Lender as follows:

 

5.1           Financial
Condition. The Borrowers have furnished to the Lender (a) audited consolidated financial
statements for the Borrowers for the years ended December 31, 2009, December 31, 2010 and December 31, 2011 and (b) management-prepared
consolidated financial statements for the Borrowers for (i) the three (3) months ended as of March 31, 2012 and (ii) the three
(3) months ended as of June 30, 2012 (collectively, the “Initial Financial Statements”).
The Initial Financial Statements were prepared in accordance with GAAP, consistently maintained and applied throughout the periods
covered thereby (except as may be noted therein) and fairly present the financial condition of the Borrowers on the respective
dates thereof and the results of the operations of the Borrowers for the respective periods covered thereby.

 

5.2           No
Change. Since June 30, 2012, (a) except as set forth on Schedule 5.2,
there has been no development or event which has had or could reasonably be expected to have a Material Adverse Effect, (b) there
has been no sale, transfer or other disposition by any Borrower of any material part of the business or property of any Borrower
and no purchase or other acquisition of any business or property (including any Equity Interest of a Borrower) material in relation
to the financial condition of any Borrower as of June 30, 2012 and, except as set forth on Schedule 5.2,
the Borrowers have not entered into and do not intend to enter into any agreement with respect to the foregoing, (c) no dividends
or other distributions have been declared, paid or made upon the Equity Interest of any Borrower nor have any of the Equity Interests
of any Borrower been redeemed, retired, purchased or otherwise acquired for value by any Borrower and the Borrowers have not entered
into and do not intend to enter into any agreement with respect to the foregoing, (d) except as set forth on Schedule
5.2, there has been no material adverse change in the financial condition of the Borrowers
as reflected on the financial statements filed with the 10-Q of ThermoEnergy for the quarter ending June 30, 2012 and (e) no Borrower
has experienced any damage, destruction or loss to any of its material assets (whether or not covered by insurance).

 

    	-6-

    	 

    

 

5.3           Legal
Existence; Compliance with Law. Each Borrower (a) is duly organized, validly existing
and in good standing under the laws of the jurisdiction of its organization, (b) has the power and authority to own and operate
its property, to lease the property it operates as lessee and to conduct the business in which it is currently engaged, (c) is
duly qualified or licensed to do business as a foreign company and in good standing under the laws of each jurisdiction where its
ownership, lease or operation of property or the conduct of its business requires such qualification except where the failure to
be so qualified and/or in good standing, in the aggregate could not reasonably be expected to have a Material Adverse Effect and
(d) is in compliance with all Requirements of Law (including, without limitation, Environmental Laws) except to the extent that
the failure to comply therewith could not, in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

5.4           Power;
Authorization; Enforceable Obligations. Each Borrower has the power and authority,
and the legal right, to make, execute, deliver and perform the Loan Documents to which it is a party and to borrow hereunder. No
consent or authorization of, filing with, notice to or other act by or in respect of, any Governmental Authority or any other Person
is required to be obtained or made by any Borrower in connection with the execution, delivery or performance by the Borrowers or
the validity or enforceability with respect to or against the Borrowers, of the Loan Documents to which any Borrower is a party
(other than the filings of Uniform Commercial Code financing statements in order to perfect the security interest that can be perfected
by such filings). Each of the Loan Documents, when executed and delivered, will constitute a legal, valid and binding obligation
of each of the Borrowers, enforceable against each of them, to the extent that each of them is a party thereto, except as such
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement
of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity
or at law).

 

5.5           No
Legal Bar. The execution, delivery and performance of the Loan Documents, the Note
hereunder and the use of the proceeds thereof by the Borrowers will not violate any Requirement of Law or any material Contractual
Obligation of any Borrower, the creation or imposition of any Lien on any of its or their respective properties or revenues pursuant
to any such Requirement of Law or Contractual Obligation other than as contemplated in or permitted by the Loan Documents.

 

5.6           No
Material Litigation. Except as set forth on Schedule 5.6,
no litigation, investigation or proceeding of or before any arbitrator or Governmental Authority is pending or, to the best of
the knowledge of each Borrower, threatened by or against such Borrower or against any of their respective properties or revenues.

 

5.7           No
Default. No Borrower is in default under or with respect to any of its material Contractual
Obligations. No Default or Event of Default has occurred and is continuing hereunder.

 

    	-7-

    	 

    

 

5.8           Ownership
of Property; Liens. Each Borrower has good record and marketable title in fee simple
to, or a valid leasehold interest in, all of its real property except for such matters as do not materially adversely affect the
use of the property in the conduct of the business as currently conducted, and good title to, or a valid leasehold interest in,
all its other material property, and none of such property is subject to any Lien (other than Permitted Liens). Set forth on Schedule
5.8 is a true and complete list of all of real property owned or leased by each Borrower
as of the Closing Date and all Liens granted by such Borrower in respect of any real property owned or leased by it as of the Closing
Date.

 

5.9           Subsidiaries.
Set forth on the Schedule 5.9 is a true and complete list of all of the
Subsidiaries of each Borrower as of the Closing Date and the ownership of the Equity Interests in each Borrower (other than ThermoEnergy),
each Subsidiary and each joint venture in which a Borrower or a Subsidiary has an interest.

 

5.10         Brokers
or Finders. No Person has or will have, as a result of the transaction contemplated
by this Agreement of any of the other Loan Documents, any right, interest or claim against or upon the Lender or the Borrowers
for the commission, fee or other compensation as a finder or broker because of any act or omission by the Borrowers.

 

5.11         Intellectual
Property. Except as set forth on Schedule 5.11,
(a) each Borrower owns, or is licensed to use, all material patents, trademarks (registered or unregistered), trade names, service
marks, assumed names. copyrights and software (such items, together with all applications therefore and all other material intellectual
property and proprietary rights, whether or not subject to statutory registration or protection, of such Borrower that are used
in or necessary for the conduct of the business of such Borrower being collectively referred to herein as the “Intellectual
Property”) necessary for the conduct of its business except, with respect
to software, for those the failure to own or be licensed to use could not reasonably be expected to have a Material Adverse Effect
and (b) no claim of which any Borrower has been given notice has been asserted and is pending by any Person challenging or questioning
the use of any such Intellectual Property or the validity or effectiveness of any such Intellectual Property, nor does any Borrower
know of any valid basis for any such claim. 

 

5.12         Taxes.
Each Borrower has filed or caused to be filed all tax returns which are required to be filed and have paid all taxes shown to be
due and payable on said returns or on any assessments made against it or any of its property in respect of such periods and all
other material taxes imposed on it or any of its property by any Governmental Authority in respect of such periods (other than
any taxes (a) the amount or validity of which are being contested in good faith by appropriate proceedings, (b) with respect to
which reserves in conformity with GAAP have been provided on the books of the Borrowers, (c) non-payment of which, in the aggregate,
would not have a Material Adverse Effect). Except as set forth on Schedule 5.12,
the Borrowers are unaware of any proposed or pending tax assessments, deficiencies or audits. 

 

5.13         ERISA.
Each Borrower and each Commonly Controlled Entity is in compliance in all material respects with ERISA and the provisions of the
Tax Code applicable to any Plans. Neither a Reportable Event nor an “accumulated funding deficiency” (within the meaning
of Section 412 of the Tax Code or Section 302 of ERISA) has occurred with respect to any Plan. No Borrower or any Commonly Controlled
Entity has incurred any liability to the PBGC over and above premiums which are required by law and which would constitute a Material
Adverse Effect. No Borrower or any Commonly Controlled Entity has terminated any Plan in a manner which could result in the imposition
of a Lien on the property of any Borrower.

 

    	-8-

    	 

    

 

5.14         Existing
Debt. Set forth on Schedule 5.14
is a complete and accurate list of all existing Indebtedness of each Borrower and each Subsidiary.

 

5.15         Bank
Accounts. Set forth on Schedule 5.15
is a complete and accurate list of all banks and other financial institutions at which any Borrower or any Subsidiary maintains
deposit accounts, securities accounts or other accounts as of the Closing Date, including any disbursement accounts, and Schedule
5.15 identifies the name, address and telephone number of each depositary institution,
securities intermediary or other financial institution for each such account, the name in which the account is held, a description
of the purpose of such account and the account number thereof.

 

5.16         Obligations.
The Borrowers’ financial condition enables them to comply with their respective existing obligations, including the obligations
hereunder and under the other Loan Documents and has not led, and is not expected to lead, to a default in their respective payment
obligations as they become due. 

 

5.17         Ranking.
The payment obligations of each Borrower hereunder and under the other Loan Documents to which it is a party are unconditional
general obligations of such Borrower, and rank at least pari passu with all other present and future senior unsubordinated Indebtedness
of such Borrower.

 

5.18         Security
Interest. The Loan Documents provide, upon execution, delivery and, as applicable,
filing with the appropriate government authority thereof, the Lender with effective, valid, legally binding and enforceable first
priority Liens on all of the Collateral, which Liens as of the Closing Date will be superior and prior to the rights of all third
parties now existing or hereafter arising whether by way of Lien, assignment or otherwise, except as may be limited by bankruptcy,
insolvency or similar laws affecting enforcement of creditors’ rights generally and as may be limited by equitable principles
of general applicability. All necessary action will have been taken as of the Closing Date under applicable laws to establish and
perfect the first priority rights of the Lender in and to the Collateral.

 

section
6.          AFFIRMATIVE COVENANTS

 

So long as any Loan or other Obligation
(other than contingent indemnification obligations not then due) hereunder shall remain unpaid or unsatisfied, each Borrower hereby
covenants and agrees with the Lender as follows:

 

6.1           Financial
Statements. Such Borrower shall furnish to the Lender:

 

(a)          commencing
with the fiscal year ended December 31, 2012, as soon as available, but in any event upon the earlier of (i) the date that
is 120 days after the end of each fiscal year of the Borrowers or (ii) the date such information is required to be filed with the
SEC, a consolidated balance sheet of the Borrowers as at the end of such fiscal year, and the related consolidated statements of
income or operations, changes in shareholders’ equity, and cash flows for such fiscal year, setting forth in each case in
comparative form the figures for the previous fiscal year, all in reasonable detail and prepared in accordance with GAAP, audited
and accompanied by a report and opinion of Grant Thornton LLP or any other independent certified public accountant of nationally
recognized standing reasonably acceptable to the Lender, which report and opinion shall be prepared in accordance with generally
accepted auditing standards and shall not be subject to any “going concern” or like qualification or exception or any
qualification or exception as to the scope of such audit, together with a copy of the management discussion and analysis submitted
by the Borrowers to the SEC with respect to such period; and

 

    	-9-

    	 

    

 

(b)          commencing
with the fiscal quarter ending September 30, 2012, as soon as available, but in any event upon the earlier of (i) 60 days
after the end of each of the first three fiscal quarters of each fiscal year of the Borrowers, or (ii) the date such information
is required to be filed with the SEC, a consolidated balance sheet of the Borrowers as at the end of such fiscal quarter, the related
consolidated statements of income or operations, changes in shareholders’ equity and cash flows for such fiscal quarter and
for the portion of the Borrowers’ fiscal year then ended, in each case setting forth in comparative form, as applicable,
the figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the previous fiscal
year, all in reasonable detail and prepared in accordance with GAAP, as certified by the chief executive officer or chief financial
officer of each Borrower as fairly presenting the financial condition, results of operations, shareholders’ equity and cash
flows of the Borrowers in accordance with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes.

 

The Borrowers shall be
deemed to have delivered the financial statements referred to in this Section 6.1 if: (i) such financial statements or other
information have been posted on the website of the SEC (http://www.sec.gov) or on the Borrowers’ own website as previously
identified to the Lender, and (ii) the Borrowers have notified the Lender by electronic mail of such posting.

 

6.2           Certificates;
Other Information. Each Borrower shall furnish to the Lender:

 

(a)          concurrently
with the delivery of the financial statements referred to in Sections 6.1(a) and (b), a duly completed Compliance
Certificate, substantially in the form attached hereto as Exhibit 6.2, as signed by any Responsible Officer of each Borrower;

 

(b)          promptly
after any request by the Lender, copies of any detailed audit reports, management letters or recommendations submitted to the board
of directors (or the audit committee of the board of directors) of the Borrowers by independent accountants in connection with
the accounts or books of the Borrowers, or any audit of any of them;

 

(c)          promptly
after the same are available, copies of each annual report, proxy or financial statement or other report or communication sent
to the stockholders of any Borrower, and copies of all annual, regular, periodic and special reports and registration statements
which the Borrowers may file or be required to file with the SEC under Section 13 or 15(d) of the Securities Exchange Act of 1934,
and not otherwise required to be delivered to the Lender pursuant hereto;

 

(d)          promptly,
and in any event within five (5) Business Days after receipt thereof by any Borrower, copies of each notice or other correspondence
received from the SEC (or comparable agency in any applicable non-U.S. jurisdiction) concerning any investigation or possible investigation
or other inquiry by such agency regarding financial or other operational results of any Borrower; and

 

    	-10-

    	 

    

 

(e)          promptly,
such additional information regarding the business, financial or corporate affairs of the Borrowers, or compliance with the terms
of the Loan Documents, as the Lender may from time to time reasonably request.

 

6.3           Notices.
Each Borrower shall, and shall cause each of its Subsidiaries to, give prompt, and in any event within one (1) Business Day, notice
to the Lender and the Lender of:

 

(a)          the
occurrence of any Default or Event of Default;

 

(b)          any
(i) default or event of default under any Contractual Obligation of such Borrower or (ii) litigation, investigation or proceeding
which may exist at any time between such Borrower and any Governmental Authority, which in either case, if not cured, or resolved
or if adversely determined, as the case may be, could reasonably be expected to have a Material Adverse Effect;

 

(c)          any
litigation or proceeding affecting such Borrower in which the amount involved is not covered by insurance or in which injunctive
or similar relief is sought which, if adversely determined, could reasonably be expected to have a Material Adverse Effect;

 

(d)          the
following events, as soon as possible and in any event within thirty (30) days after such Borrower knows or has reason to know
thereof: (i) the occurrence or expected occurrence of any Reportable Event with respect to any Plan, a failure to make any required
contribution to a Plan, the creation of any Lien in favor of the PBGC or a Plan or (ii) the institution of proceedings or the taking
of any other action by the PBGC or such Borrower or any Commonly Controlled Entity with respect to the withdrawal from, or the
termination, reorganization or insolvency of, any Plan; and

 

(e)          any
development or event which could reasonably be expected to have a Material Adverse Effect.

 

Each notice pursuant to this Section 6.3
shall be accompanied by a statement of a Responsible Officer setting forth details of the occurrence referred to therein and stating
what action the applicable Borrower proposes to take with respect thereto.

 

6.4           Inspection
of Property; Books and Records; Discussions. Each Borrower shall, and shall cause
each of its Subsidiaries to; (a) keep proper financial records in conformity with GAAP and all Requirements of Law; (b) permit
representatives of the Lender (including their respective officers, employees, consultants and other designees) to visit and inspect
any of its properties and examine and make abstracts from any of its books and records at any reasonable time, upon reasonable
notice, and as often as may reasonably be desired; provided, however, that
so long as the Borrowers remain in compliance with the Weekly Budget to the satisfaction of the Lender, such inspections shall
be limited to one (1) inspection per each fiscal quarter of such Borrower; and (c) permit, upon reasonable notice during normal
business hours, representatives of the Lender (including their respective officers, employees, consultants and other designees)
to discuss the business, operations, properties and financial and other condition of such Borrower with officers and employees
of such Borrower and with its independent certified public accountants.

 

    	-11-

    	 

    

 

6.5           Payment
of Obligations. Each Borrower shall, and shall cause each of its Subsidiaries to,
pay, discharge or otherwise satisfy at or before maturity or before they become delinquent, as the case may be, all of the material
obligations of such Borrower, except as contemplated by this Agreement or where the amount or validity thereof is currently being
contested in good faith by appropriate proceedings and reserves in conformity with GAAP with respect thereto have been provided
on the books of such Borrower.

 

6.6           Conduct
of Business and Maintenance of Existence. Each Borrower shall, and shall cause each
of its Subsidiaries to: (a) continue to engage in business of the same general type as now conducted by such Borrower; (b) preserve,
renew and keep in full force and effect its existence and take all reasonable action to maintain all rights, privileges and franchises
necessary or desirable in the normal conduct of its business except as otherwise permitted pursuant to Section 7.10;
and (c) comply in all material respects with all Contractual Obligations and Requirements of Law, except where (i) any such Contractual
Obligation is being contested in good faith, a bona fide dispute exists with respect to any such Contractual Obligation or failure
to comply therewith could not, in the aggregate, reasonably be expected to have a Material Adverse Effect, and (ii) any such Requirement
of Law is being contested in good faith and the failure to comply therewith could not, in the aggregate, reasonably be expected
to have a Material Adverse Effect.

 

6.7           Maintenance
of Property; Insurance. Each Borrower shall, and shall cause each of its Subsidiaries
to (a) keep all property material to the conduct of its business in good working order and condition; (b) maintain insurance with
financially sound and reputable insurance companies on such of its property and in at least such amounts and against at least such
risks as are usually insured against in the same general area by companies engaged in the same or a similar business; and (c) furnish
to the Lender, upon written request, full information as to the insurance carried. The Borrowers shall, within thirty (30) days
of the Closing Date, cause the Lender to be added as a lender’s loss payee and additional insured to the insurance policies
of the Borrowers. 

 

6.8           Compliance
with Loan Documents and Requirements of Law. Each Borrower shall, and shall cause
each of its Subsidiaries to perform each of its obligations under this Agreement and each other Loan Document to which it is a
party, and such Borrower shall comply in all material respects with all Requirements of Law (including, without limitation, Environmental
Laws) applicable to it.

 

6.9           Maintenance
of Liens of the Security Documents. Each Borrower shall, and shall cause each of its
Subsidiaries to promptly, upon the reasonable request of the Lender, at the sole cost and expense of such Borrower, execute, acknowledge
and deliver, or cause the execution, acknowledgement and delivery of, and thereafter register, file or record, or cause to be registered,
filed or recorded, in an appropriate governmental office, any document or instrument supplemental to or confirmatory of the Security
Documents or otherwise reasonably deemed by the Lender necessary or desirable for the continued validity, perfection and priority
of the Liens on the Collateral covered thereby.

 

6.10         New
Subsidiaries. Each Borrower shall cause, at its sole cost and expense, each new Subsidiary
of such Borrower created or acquired on or after the date hereof, promptly upon such creation or acquisition, to execute and deliver
to the Lender, the following agreements and documents, which agreements and documents shall be in form and substance reasonably
satisfactory to the Lender: (a) an instrument pursuant to which such new Subsidiary shall be become a party to (i) this Agreement
as a Borrower hereunder and (ii) the Security Agreement as a debtor thereunder; (b) any and all UCC financing statements which
the Lender deems necessary and appropriate in order to perfect its first priority perfected security interests in all of the assets
of such Subsidiary; and (c) such other agreements, documents, financing statements, instruments, opinions and certificates and
completion of such other matters, as the Lender may reasonably deem necessary or appropriate.

 

    	-12-

    	 

    

 

6.11         Use
of Proceeds. The Borrowers shall use the proceeds of the Loans solely (i) for purchasing
materials and equipment necessary or convenient to the construction, operation, testing and delivery of the System and working
capital expenditures set forth on the Weekly Budget and (ii) for the reimbursement of the Lender’s fees and expenses, as
set forth in Section 3.10.

 

6.12         Weekly
Budget. The Borrowers shall provide to the Lender, on the first business day of each
calendar week simultaneously with delivery of a Loan Request, a statement of compliance with the Weekly Budget setting forth in
detail (i) the amount and description of each reasonable and documented out-of-pocket expense paid during the prior week in accordance
with the Weekly Budget with respect to which the Borrowers intend to request a Loan, (ii) a description of progress made in the
construction, testing and delivery of the System, (iii) any deviations from the Weekly Budget, and (iv) any requested amendments
to the Weekly Budget.

 

6.13         Control
Agreements. Each Borrower shall cause, within fifteen (15) days of a written request
from the Lender, the depositary institution, securities intermediary or commodities intermediary with respect to each account listed
on Schedule 5.15 to enter into Control Agreements in favor of the Lender
in form and substance satisfactory to the Lender granting the Lender the right to exercise control over such accounts upon the
occurrence of an Event of Default and perfecting Lender’s security interest therein and in all assets held in or credited
to such accounts.

 

6.14         Letter
of Credit. The Borrowers shall pay the proceeds of any draw on the Letter of Credit
to the Lender no later than one (1) Business Day following the date of receipt of such proceeds up to an amount equal to the then
outstanding Obligations.

 

section
7.          NEGATIVE COVENANTS.

 

So long as any Loan or other Obligation
(other than contingent indemnification obligations not then due) hereunder shall remain unpaid or unsatisfied, each Borrower hereby
covenants and agrees that:

 

7.1           Limitation
on Indebtedness. Such Borrower shall not, and shall not permit any of its Subsidiaries
to, create, incur, assume or suffer to exist any Indebtedness, except for Permitted Debt.

 

7.2           Limitation
on Contingent Liabilities. Such Borrower shall not, and shall not permit any of its
Subsidiaries to, assume, guarantee, endorse or otherwise become directly or contingently liable (including without limitation,
liable by way of agreement, contingent or otherwise to purchase or provide funds for payment, to supply funds to or otherwise invest
in any debtor or otherwise to assure any creditor against any loss) in connection with any Indebtedness of any other Person, except
for: (a) liabilities to the Lender arising under any of the Loan Documents; and (b) guarantees made in the ordinary course of the
business by such Borrower of obligations of any Subsidiary, which obligations are otherwise permitted under this Agreement.

 

    	-13-

    	 

    

 

7.3           Limitation
on Liens. Such Borrower shall not, and shall not permit any of its Subsidiaries to,
create, incur, assume or suffer to exist any Lien upon any of its property, assets or revenues, whether now owned or hereafter
acquired, except for Permitted Liens.

 

7.4           Limitation
on Fundamental Changes. Such Borrower shall not, and shall not permit any of its Subsidiaries
to, enter into any merger, consolidation or amalgamation, or liquidate, wind up or dissolve itself (or suffer any liquidation or
dissolution), or convey, sell, lease, assign, transfer or otherwise dispose of, all or substantially all of its property, business
or assets, or make any material change in its present method of conducting business, except:

 

(a)          any
Borrower may be merged or consolidated with or into another Borrower;

 

(b)          any
Subsidiary of a Borrower may be merged or consolidated with or into another Borrower (provided that a Borrower shall be the continuing
or surviving person) or with or into any one or more wholly owned Subsidiaries of a Borrower (provided that the wholly owned Subsidiary
or Subsidiaries shall be the continuing or surviving person);

 

(c)          any
wholly owned Subsidiary may sell, lease, assign, transfer or otherwise dispose of any or all of its assets (upon voluntary liquidation
or otherwise) to a Borrower or any other wholly owned Subsidiary of a Borrower; and

 

(d)          pursuant
to any sale of assets expressly permitted by Section 7.5.

 

7.5           Limitation
on Sale of Assets. Such Borrower shall not, and shall not permit any of its Subsidiaries
to, convey, sell, lease, license, assign, transfer or otherwise dispose of any of its property, business or assets (including,
without limitation, receivables, leasehold interests and Intellectual Property), whether now owned or hereafter acquired, or, in
the case of any Subsidiary, issue or sell any shares of such Subsidiary’s Equity Interest to any Person (other than a Borrower
or any wholly owned Subsidiary, and subject to the provisions of the Security Documents), except:

 

(a)          the
conveyance, sale, lease, license, assignment, transfer or other disposition of Obsolete Property or surplus property in the ordinary
course of business;

 

(b)          the
sale of inventory in the ordinary course of business;

 

(c)          the
sale or discount for fair value, without recourse and consistent with sound business practices of accounts receivable arising in
the ordinary course of business in connection with the compromise or collection thereof;

 

(d)          the
license of Intellectual Property in the ordinary course of business; and

 

(e)          leases
or subleases of real property not materially interfering with the ordinary course of conduct of the business of such Borrower.

 

7.6           Limitation
on Sales and Leasebacks. Such Borrower shall not, and shall not permit any of its
Subsidiaries to, enter into any arrangement with any Person providing for the leasing by such Borrower or any Subsidiary of real
or personal property which has been or is to be sold or transferred by such Borrower or such Subsidiary to such Person or to any
other Person to whom funds have been or are to be advanced by such Person on the security of such property or rental obligations
of such Borrower or such Subsidiary.

 

    	-14-

    	 

    

 

7.7           Restricted
Payments. Such Borrower shall not, and shall not permit any of its Subsidiaries to,
declare or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise) to do so, except
that, so long as no Event of Default shall have occurred and be continuing at the time of any action described below or would result
therefrom:

 

(a)          each
Subsidiary may make Restricted Payments to any Borrower and any other Person that owns an Equity Interest in such Subsidiary, ratably
according to their respective holdings of the type of Equity Interest in respect of which such Restricted Payment is being made;

 

(b)          the
Borrowers and each Subsidiary may declare and make dividend payments or other distributions payable solely in the common stock
or other common Equity Interests of such Person; and

 

(c)          the
Borrowers and each Subsidiary may purchase, redeem or otherwise acquire Equity Interests issued by it with the proceeds received
from the substantially concurrent issue of new shares of its common stock or other common Equity Interests.

 

7.8           Limitation
on Investments, Loans and Advances. Such Borrower shall not, and shall not permit
any of its Subsidiaries to, make any advance, loan, extension of credit or capital contribution to, or purchase any stock, bonds,
notes, debentures or other securities of, or any assets constituting a business unit of, or make any other investment in, any Person
(an “Investment”), except:

 

(a)          investments
in Cash Equivalents;

 

(b)          securities
held by such Borrower or any of its Subsidiaries prior to the Closing Date and listed on Schedule 7.8;

 

(c)          Investments
by such Borrower in any Subsidiary and Investments by any such Subsidiary in a Borrower or in any other Subsidiary;

 

(d)          extensions
of trade credit and endorsements of negotiable instruments and other negotiable documents in the ordinary course of business; and

 

(e)          loans
and advances to employees and directors of a Borrower or any of its Subsidiaries for travel, entertainment and relocation expenses
in the ordinary course of business in an aggregate amount for the Borrowers and their respective Subsidiaries not to exceed Twenty-Five
Thousand and 00/100 Dollars ($25,000.00) at any time outstanding.

 

7.9           Limitation
on Transactions with Affiliates. Such Borrower shall not, and shall not permit any
of its Subsidiaries to, enter into any transaction (including, without limitation, any purchase, sale, lease or exchange of property
or the rendering of any service) with any Affiliate unless such transaction is (a) otherwise permitted under this Agreement; (b)
in the ordinary course of such Borrower’s or such Subsidiary’s business; and (c) upon fair and reasonable terms no
less favorable to such Borrower or such Subsidiary, as the case may be, than it would obtain in a comparable arm’s length
transaction with a Person which is not an Affiliate; provided, however, that the foregoing restriction shall not prohibit (i) any
employment agreement entered into by such Borrower or any of its Subsidiaries in the ordinary course of business; (ii) any issuance
of securities in connection with employment arrangements, stock options and stock ownership plans of such Borrower entered into
in the ordinary course of business; (iii) transactions between such Borrower and its Subsidiaries; and (iv) the transactions contemplated
by the agreements listed on Schedule 7.9.

 

    	-15-

    	 

    

 

7.10         Limitation
on Lines of Business. Such Borrower shall not, and shall not permit any of its Subsidiaries
to, enter into any business, either directly or through any Subsidiary, except for those businesses in which such Borrower is engaged
on the date of this Agreement or which are reasonably related thereto.

 

7.11         Limitations
on Amendments to Organizational Documents. The Borrowers shall not and shall not cause
or permit their Subsidiaries to directly or indirectly amend, modify or waive any term or provision of its organizational documents,
including its certificate of incorporation, limited liability company agreement, by-laws or certificates of designations pertaining
to preferred stock in any manner adverse to the Lender.

 

7.12         Bank
Accounts. The Borrowers shall not, and shall not permit their Subsidiaries to, establish
any new bank accounts, securities accounts or commodities accounts without the prior written consent of the Lender unless the Lender
and the depositary institution, securities intermediary or commodities intermediary, as applicable, as to which the account is
to be opened enter into a Control Agreement in form and substance satisfactory to the Lender.

 

7.13         Letter
of Credit. The Borrowers shall not, and shall not permit any Subsidiary to, permit
the imposition of any Lien on, or permit the assignment of, the Letter of Credit or any proceeds of the Letter of Credit to any
Person other than the Lender. 

 

section
8.          EVENTS OF DEFAULT.

 

8.1           Events
of Default; Acceleration. If any of the following events (“Events of Default” or, if the giving of
notice or the lapse of time or both is required, then, prior to such notice or lapse of time, “Defaults”)
shall occur:

 

(a)          the
Borrowers shall fail to pay any amount of principal of any Loan when due in accordance with the terms of this Agreement and the
other Loan Documents; or the Borrowers shall fail to pay any interest or other amount payable hereunder or under any other Loan
Document, within three (3) days after such interest or other amount becomes due in accordance with the terms of this Agreement
and/or any Loan Documents; or

 

(b)          any
representation or warranty made or deemed made by any Borrower or any other Obligor herein or in any other Loan Document or which
is contained in any certificate, document or financial or other statement furnished by it at any time under or in connection with
this Agreement or any such other Loan Document shall prove to have been incorrect in any material respect (except that such materiality
qualifier shall not be applicable to any representation or warranty already qualified or modified by the text thereof) on or as
of the date made or deemed made; or

 

    	-16-

    	 

    

 

(c)          the
failure by any Borrower or any other Obligor to punctually perform, observe, comply with or satisfy any covenant, agreement or
condition contained in (i) Section 6.1, 6.2, 6.3, 6.4, 6.6, 6.7, 6.8, 6.10,
6.11, 6.12, 6.13 or 6.14 of this Agreement; or (ii) Section 7 of this Agreement; or (iii) Section
4.1 of the Security Agreement; or

 

(d)          any
Borrower or any Subsidiary shall default in the observance or performance of any other agreement contained in this Agreement or
any other Loan Document (other than as provided this Section 8.1), and such default shall continue un-remedied for a period
of thirty (30) days; or

 

(e)          any
Borrower shall fail to pay when due (after any applicable period of grace) any Indebtedness of such Borrower (other than Indebtedness
comprising the Obligations), which together with all such other due but unpaid Indebtedness, exceeds the sum of One Hundred Thousand
and 00/100 Dollars ($100,000.00), or shall fail (after any applicable period of grace) to observe or perform any term, covenant
or agreement evidencing or securing such Indebtedness, which, if uncured or unwaived, permits the acceleration of such Indebtedness,
or any default or event of default shall have been declared under any agreement relating to such Indebtedness; or

 

(f)          any
Borrower, Subsidiary or any other Obligor shall (i) apply for or consent to the appointment of, or the taking of possession by,
a receiver, custodian, trustee, liquidator or similar official of itself or of all or a substantial part of its property, (ii)
make a general assignment for the benefit of its creditors, (iii) commence a voluntary case under the United States Bankruptcy
Code, as amended from time to time, (iv) take any action or commence any case or proceeding under any law relating to bankruptcy,
insolvency, reorganization, winding-up or composition or adjustment of debts, or any other law providing for the relief of debtors,
(v) fail to contest in a timely or appropriate manner, or acquiesce in writing to, any petition filed against it in an involuntary
case under the United States Bankruptcy Code, as amended from time to time or other law, (vi) take any action under the laws
of its jurisdiction of incorporation or organization similar to any of the foregoing, or (vii) take any corporate action for the
purpose of effecting any of the foregoing; or

 

(g)          a
proceeding or case shall be commenced against any Borrower, any Subsidiary or any other Obligor, without the application or consent
of such Borrower, such Subsidiary or such Obligor, in any court of competent jurisdiction, seeking (i) the liquidation, reorganization,
dissolution, winding up, or composition or readjustment of its debts, (ii) the appointment of a trustee, receiver, custodian, liquidator
or the like of it or of all or any substantial part of its assets, or (iii) similar relief in respect of it, under any law relating
to bankruptcy, insolvency, reorganization, winding-up or composition or adjustment of debts or any other law providing for the
relief of debtors, and such proceeding or case shall continue undismissed, or unstayed and in effect, for a period of thirty (30)
days; or an order for relief shall be entered in an involuntary case under the United States Bankruptcy Code, as amended from time
to time, against any Borrower, any Subsidiary or any other Obligor; or

 

    	-17-

    	 

    

 

(h)          (i)
the Letter of Credit ceases to be in full force and effect prior to the Maturity Date, is revoked or repudiated for any reason,
is (or any proceeds thereof are) assigned to any Person other than the Lender, a Lien is created thereon (or on any proceeds thereof)
in favor of any Person other than the Lender or its enforceability is challenged by or on behalf of the Borrowers or the LC Issuer,
and the Borrowers shall thereafter fail (within five (5) days of receipt of notice of such event) to: (A) cause a new Letter of
Credit to be issued for the benefit of the Lender by a financial institution acceptable to the Lender in its reasonable discretion;
or (B) pledge and deposit with or deliver to the Lender cash or deposit account balances in an amount equal to the then-face amount
of the Letter of Credit pursuant to documents in form and substance reasonably satisfactory to the Lender; or (ii) a default or
event of default shall occur with respect to the Letter of Credit and remain uncured after the lapsing of any applicable cure period;
or

 

(i)          (i)
any Borrower or any Commonly Controlled Entity shall fail to pay when due any amount that it shall have become liable to pay to
the PBGC or to a Plan under Title IV of ERISA, unless (A) such liability is being contested in good faith by appropriate proceedings,
such Borrower or such Commonly Controlled Entity, as the case may be, has established and is maintaining adequate reserves in accordance
with GAAP and no Lien shall have been filed to secure such liability or (B) which would not have a Material Adverse Effect; (ii)
the PBGC shall institute proceedings under Title IV of ERISA to terminate or to cause a trustee to be appointed to administer any
such Plan or Plans; or (iii) a condition shall exist by reason of which the PBGC would be entitled to obtain a decree adjudicating
that any such Plan or Plans must be terminated; or

 

(j)          one
or more judgments or decrees shall be entered against any Borrower involving a liability of One Hundred Thousand and 00/100 Dollars
($100,000.00)(not paid or fully covered by insurance) or in the aggregate a liability (not paid or fully covered by insurance),
and all such judgments or decrees shall not have been vacated, discharged, stayed or bonded pending appeal within thirty (30) days
from the entry thereof; or

 

(k)          if
any of the Loan Documents (or any provision contained therein) shall be cancelled, terminated, revoked, curtailed or rescinded
otherwise than in accordance with the terms thereof or with the express prior written agreement, consent or approval of the Lender,
or any action at law, suit or in equity or other legal proceeding to cancel, revoke, curtail or rescind any of the Loan Documents
shall be commenced by or on behalf of any Borrower or any of its officers, directors, stockholders or creditors, or any Governmental
Authority of competent jurisdiction shall make a determination that, or issue a judgment, order, decree or ruling to the effect
that, any of the Loan Documents (or any provision contained therein) is illegal, invalid or unenforceable in accordance with the
terms thereof; or

 

(l)          any
Lien created by any of the Security Documents shall, by reason of any breach by any Borrower, any Subsidiary or Obligor party thereto
of any of its covenants or other obligations contained in such Security Documents, cease to be enforceable and of the same effect
and priority purported to be created thereby; or

 

(m)          A
material portion of the property of any Borrower or Subsidiary (whether or not Collateral) is damaged by fire or other casualty,
or otherwise lost or stolen, the restoration or replacement cost of which property exceeds by more than One Hundred Thousand Dollars
($100,000.00), in the aggregate, the amount of insurance proceeds readily available for such restoration or replacement; or

 

    	-18-

    	 

    

 

(n)          the
occurrence of any Change of Control or any Material Adverse Effect; then, and in any such event, so long as the same may be
continuing, the Lender may, by notice to the Borrowers, declare all amounts owing with respect to this Agreement, the Note
and the other Loan Documents to be, and they shall thereupon forthwith become, immediately due and payable without
presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by the Borrowers; provided,
however, that in the event of any Event of Default specified in Sections 8.1(f) or 8.1(g), all such amounts
shall become immediately due and payable automatically and without any requirement of notice from the Lender.

 

8.2           Termination
of Commitment. If any one or more of the Events of Default specified in Sections
8.1(f) or 8.1(g) shall occur,
any unused portion of the Commitment shall immediately terminate and the Lender shall be relieved of all further obligations to
make advances to the Borrowers. If any other Event of Default shall have occurred and be continuing, the Lender may, by notice
to the Borrowers, terminate the unused portion of the Commitment, and upon such notice being given such unused portion of the Commitment
shall terminate immediately and the Lender shall be relieved of all further obligations to make Loans. No termination of the Commitment
shall relieve the Borrowers of any of the Obligations.

 

section
9.          RIGHTS AND REMEDIES.

 

9.1           Rights
and Remedies. Upon the occurrence and during the continuance of any one or more of
the Events of Default, the Lender may proceed to enforce all legal or equitable rights or remedies it may have under this Agreement
or any other Loan Documents or otherwise by virtue of applicable law.

 

9.2           Setoff
and Adjustments. In addition to any rights and remedies of the Lender provided by
law, the Lender shall have the right, without prior notice to the Borrowers, any such prior notice being expressly waived by the
Borrowers to the extent permitted by applicable law, upon any amount becoming due and payable by the Borrowers hereunder (whether
at the stated maturity, by acceleration or otherwise) to set-off and appropriate and apply against such amount any other credits,
indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, at any time held or owing
the Lender to or for the credit or the account of the Borrowers. The Lender agrees promptly to notify the Borrowers after any such
set-off and application made by the Lender, provided that the failure to give such notice shall not affect the validity of such
set-off and application.

 

9.3           No
Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on
the part of the Lender, any right, remedy, power or privilege hereunder or under the other Loan Documents shall operate as a waiver
thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein
provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

 

9.4           Distribution
of Collateral Proceeds. In the event that, following the occurrence or during the
continuance of any Event of Default, the Lender receives any monies in connection with the enforcement of any of the Security Documents,
or otherwise with respect to the realization upon any of the Collateral, such monies shall be distributed for application as follows:
(a) first, to the Obligations (including accrued Default Interest, if any) in such order or preference as the Lender may
determine; (b) second, upon payment and satisfaction in full or other provisions for payment in full satisfactory of all
of the Obligations, to the payment of any obligations required to be paid pursuant to §9-615 of the UCC; and (c) third,
the excess, if any, shall be returned to the Borrowers or to such other Persons as are entitled thereto.

 

    	-19-

    	 

    

 

section
10.         MISCELLANEOUS

 

10.1         Survival
of Covenants. Except for those which by their terms survive termination of the Loan
Documents, all agreements, representations, covenants and warranties made by each Borrower and any of its Subsidiaries in the Loan
Documents shall remain in full force and effect until all Obligations have been paid in full and satisfied, notwithstanding the
fact that the Note may, from time to time, be in a zero or credit position.

 

10.2         Prior
Discussions; Amendments in Writing; Counterparts. The Loan Documents incorporate all
discussions and negotiations among the Lender and the Borrowers either express or implied, concerning the Obligations, notwithstanding
any custom, usage or oral agreement or understanding to the contrary. This Agreement may be amended or modified only in writing
signed by the parties hereto. This Agreement may be executed in two or more counterparts, each of which shall constitute an original,
but such counterparts together shall constitute one and the same instrument. Any proof of this Agreement shall require production
of only one such counterpart.

 

10.3         Severability.
Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

10.4         Notices.
All notices, requests and demands to or upon the respective parties hereto to be effective shall be in writing (including by facsimile
transmission and electronic mail), and, unless otherwise expressly provided herein, shall be deemed to have been duly given when
delivered by hand, or when sent by facsimile transmission or by electronic mail, or on the first Business Day after delivery to
any overnight delivery service, freight prepaid, or three (3) Business Days after being sent by certified or registered mail, return
receipt requested, postage prepaid, and addressed to the Borrowers and the Lender as follows or to such other address as may be
hereafter notified by the respective parties hereto:

 

	 	(a)	If to the Borrowers, then:	ThermoEnergy Corporation
	 	 	 	ThermoEnergy Power Systems, LLC
	 	 	 	CASTion Corporation
	 	 	 	10 New Bond Street 
	 	 	 	Worcester, MA 01606
	 	 	 	Attention:  Teodor Klowan, Jr.,
	 	 	 	Executive Vice President and 
	 	 	 	Chief Financial Officer
	 	 	 	Facsimile No: 508.854.1753
	 	 	 	Telephone No. 508.854.1628, Ext. 310
	 	 	 	E-mail: ted.klowan@thermoenergy.com

 

    	-20-

    	 

    

 

	 	 	with copies to:	Nixon Peabody LLP
	 	 	 	100 Summer Street
	 	 	 	Boston, MA  02110
	 	 	 	Attention:  William E. Kelly, Esq.
	 	 	 	Facsimile No: 866-743-4899
	 	 	 	Telephone No. 617.345.1195
	 	 	 	E-mail: wkelly@nixonpeabody.com
	 	 	 	 
	 	 	 	 
	 	(b)	If to the Lender, then:	C13 Thermo LLC 
	 	 	 	c/o Stroock & Stroock & Lavan LLP
	 	 	 	180 Maiden Lane
	 	 	 	New York, NY 10038
	 	 	 	Attention:  Lewis Kruger, Esq.
	 	 	 	Facsimile No: 212-806-1230
	 	 	 	Telephone No. 212-806-5430
	 	 	 	E-mail: lkruger@stroock.com
	 	 	 	 
	 	 	with copies to:	Stroock & Stroock & Lavan LLP 
	 	 	 	180 Maiden Lane
	 	 	 	New York, NY 10038
	 	 	 	Attention:  Bradley G. Kulman, Esq.
	 	 	 	Facsimile No: 212-806-7613
	 	 	 	Telephone No. 212-806-6613
	 	 	 	E-mail: bkulman@stroock.com

 

10.5         Expenses.
The Borrowers jointly and severally agree to pay (a) the reasonable costs of producing and reproducing this Agreement, the other
Loan Documents and the other agreements and instruments mentioned herein, (b) any taxes (including any interest and penalties in
respect thereto) payable by the Lender (other than taxes based upon any the Lender’s net income) on or with respect to the
transactions contemplated by this Agreement (the Borrowers jointly and severally hereby agreeing to indemnify the Lender with respect
thereto), (c) the reasonable fees, expenses and disbursements of counsel to the Lender incurred in connection with the preparation,
negotiation, administration or interpretation of the Loan Documents and other instruments mentioned herein, and amendments, modifications,
approvals, consents or waivers hereto or hereunder, (d) all reasonable out-of-pocket expenses (including without limitation reasonable
attorneys’ fees and costs, which attorneys may be employees of the Lender, and reasonable consulting, accounting, appraisal,
investment banking and similar professional fees and charges) incurred by the Lender in connection with (i) the enforcement of
or preservation of rights under any of the Loan Documents against the Borrowers or the administration thereof after the occurrence
of a Default or Event of Default and (ii) any litigation, proceeding or dispute whether arising hereunder or otherwise, in any
way related to the Lender’s relationship with the Borrowers and (e) all reasonable fees, expenses and disbursements of the
Lender incurred in connection with UCC searches, UCC filings or mortgage recordings. The covenants contained in this Section
10.5 shall survive payment or satisfaction in full of all other Obligations. The Borrowers
shall pay the foregoing amounts within three (3) Business Days of delivery of a written request therefore from or on behalf of
the Lender. The amounts described in clause (c) of this Section 10.5 shall
be paid on the date of the first Loan in accordance with Section 3.10, or,
at the option of the Lender or if not otherwise paid, shall be added to the principal amount of the Loans and deemed Loans made
hereunder.

 

    	-21-

    	 

    

 

10.6         Indemnification.
The Borrowers jointly and severally agree to indemnify and hold harmless the Lender from and against any and all claims, actions
and suits whether groundless or otherwise, and from and against any and all liabilities, losses, damages and expenses of every
nature and character arising out of this Agreement or any of the other Loan Documents or the transactions contemplated hereby including,
without limitation, (a) any actual or proposed use by the Borrowers of the proceeds of any of the Loans other than in compliance
with Section 6.11, (b) any actual or alleged infringement of any patent,
copyright, trademark, service mark or similar right of the Borrowers or any other Obligor comprised in the Collateral, (c) all
liabilities, obligations, claims, damages, costs, losses and expenses (including court costs and attorney’s reasonable fees
and expenses) that the Lender may sustain or incur by reason of, relating to or arising out of this Agreement or the other Loan
Documents, including, without limitation, the defending or protecting of any Collateral or the priority of the Lender’s interest
therein, or in collecting or enforcing the Obligations, or in enforcing any of the Lender’s rights or remedies, or in the
prosecution or defense of any action or proceeding concerning any matter growing out of or connected with this Agreement, any of
the other Loan Documents, the Obligations, the Collateral, or on account of the Lender’s relationship with the Borrowers
or any other Obligor (except for such claims which have been determined by a court of competent jurisdiction to have arisen out
of the Lender’s actual bad faith, willful misconduct or gross negligence) or (d) with respect to the Borrowers or any other
Obligor and their respective properties and assets, the violation of any Environmental Law, the presence, disposal, escape, seepage,
leakage, spillage, discharge, emission, release or threatened release of any hazardous substances or any action, suit, proceeding
or investigation brought or threatened with respect to any hazardous substances (including, but not limited to, claims with respect
to wrongful death, personal injury or damage to property), in each case including, without limitation, the reasonable fees and
disbursements of counsel and allocated costs of internal counsel incurred in connection with any such investigation, litigation
or other proceeding. In litigation, or the preparation therefore, the Lender shall be entitled to select its own counsel and, in
addition to the foregoing indemnity, the Borrowers agree to pay promptly the reasonable fees and expenses of such counsel. If,
and to the extent that the obligations of the Borrowers under this Section 10.6
are unenforceable for any reason, the Borrowers hereby agree to make the maximum contribution to the payment in satisfaction of
such obligations which is permissible under applicable law. The covenants contained in this Section 10.6
shall survive payment or satisfaction in full of all other Obligations.

 

10.7         Joint
and Several Liability. All of the obligations and liabilities of the Borrowers under
this Agreement are joint and several.

 

10.8         Acknowledgements.
Each Borrower hereby acknowledges that (a) such Borrower has been advised by counsel in the negotiation, execution and delivery
of this Agreement and the other Loan Documents; (b) the Lender has no fiduciary relationship with or duty to such Borrower arising
out of or in connection with this Agreement or any of the other Loan Documents, and the relationship of the Lender, and such Borrower,
in connection herewith or therewith is solely that of debtor and creditor; and (c) no joint venture is created hereby or by the
other Loan Documents or otherwise exists by virtue of the transactions contemplated hereby among such Borrower, the Lender.

 

10.9         Successors
and Assigns; Assignments and Participation.

 

(a)          Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the Borrowers, the Lender and their respective
successors and assigns, except that the Borrowers may not assign or transfer any of their respective rights or obligations under
this Agreement.

 

    	-22-

    	 

    

 

(b)          Assignments.
The Lender may, in accordance with applicable law, at any time and from time to time assign to an Eligible Assignee all or a portion
of its rights and obligations under this Agreement. Upon such assignment, such Eligible Assignee shall be a party hereto and have
the rights and obligations of the Lender hereunder, and the assigning Lender shall be released from its obligations under this
Agreement. Notwithstanding any provision of this Section 10.9(b), the consent of the Borrowers shall not be required if
any Event of Default has occurred and is continuing.

 

10.10 
     Loss, Theft, Destruction or Mutilation of any Note.
Upon receipt of an affidavit of the Lender as to the loss, theft, destruction or mutilation of the Lender’s Note or any
other Loan Document which is not of public record, and, in the case of any such loss, theft, destruction or mutilation, upon
cancellation of such Note or other Loan Document, the Borrowers will issue, in lieu thereof, a replacement Note or other Loan
Document in the same principal amount thereof and otherwise of like tenor. 

 

10.11     Waiver
of Jury Trial. THE BORROWERS AND THE LENDER HEREBY WAIVES THEIR RESPECTIVE RIGHTS
TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, ANY OF THE OTHER LOAN DOCUMENTS
OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN OR THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL
OTHER COMMON LAW OR STATUTORY CLAIMS.

 

10.12      Governing
Law; Consent to Jurisdiction. This Agreement and the other Loan Documents shall be
construed in accordance with and governed by, the laws of The Commonwealth of Massachusetts, without giving effect to the conflict
of laws principles thereof. The Borrowers and the Lender agree that any suit, action or proceeding against the other arising out
of or based upon this Agreement may be instituted in or removed to a United States Federal or Massachusetts state court located
in the city of Boston, and any appellate court from any thereof, and the Borrowers and the Lender irrevocably submit to the non-exclusive
jurisdiction of such courts in any suit, action or proceeding. The Borrowers and the Lender irrevocably waive, to the fullest extent
permitted by law, any objection to any suit, action or proceeding that may be brought in connection with this Agreement in such
courts whether on the grounds of venue, residence or domicile or on the ground that any such suit, action or proceeding has been
brought in an inconvenient forum. The Borrowers and the Lender agree that final judgment in any such suit, action or proceeding
brought in such court shall be conclusive and binding upon the Borrowers and the Lender and may be enforced in any court to the
jurisdiction of which they are subject, by a suit upon judgment.

 

    	-23-

    	 

    

 

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

 

	 	BORROWERS:
	 	 
	 	THERMOENERGY CORPORATION
	 	THERMOENERGY POWER SYSTEMS, LLC
	 	CASTION CORPORATION
	 	 
	 	By:	/s/ Teodor Klowan, Jr.
	 	 	Name: Teodor Klowan, Jr.
	 	 	Title: CFO / Treasurer
	 	 	 
	 	LENDER:
	 	 
	 	C13 THERMO LLC
	 	 	 
	 	By:	/s/ Carmen Rosario
	 	 	Name: Carmen Rosario
	 	 	Title: Authorized Person

 

[Loan Agreement – Signature Page]

 

    	 

    	 

    

 

 

LOAN AGREEMENT

(the “Agreement”)

 

by and among

 

THERMOENERGY CORPORATION;

 

THERMOENERGY POWER SYSTEMS,
LLC; and

 

CASTION CORPORATION

 

(the “Borrowers”)

 

and

 

C13 THERMO LLC

(the “Lender”)

 

 

APPENDIX A

 

1.          Definitions.
As used in the Agreement, the following terms shall have the following meanings:

 

“Affiliate”:
as to any Person, any other Person (other than a Subsidiary) which, directly or indirectly, is in control of, is controlled by,
or is under common control with, such Person. For purposes of this definition, “control” of a Person means the power,
directly or indirectly, either to (a) vote 10% or more of the securities having ordinary voting power for the election of directors
of such Person or (b) direct or cause the direction of the management and policies of such Person, whether by contract or otherwise.

 

“Agreement”:
 this Loan Agreement, as amended, supplemented or otherwise modified from time to time.

 

“Asset Sale”:
as to any Person, any voluntary or involuntary sale or other disposition subsequent to the Closing Date of any assets or property
of such Person.

 

“Borrowers”:
as defined in the preamble to this Agreement.

 

“Business Day”:
any day excluding Saturday, Sunday and any day which is a legal holiday under the laws of The Commonwealth of Massachusetts,
or is a day on which banking institutions located in The Commonwealth of Massachusetts are required or authorized by any Requirement
of Law to be closed.

 

    	 

    	 

    

 

“Buyer”:
PT. Paiton Energy, a limited liability company having its registered address at Sentral Senayan II, 5th Floor, Jl. Asia Afrika
No. 8, Jakarta, 10270, Indonesia, NPWP No.: 01.070.831.1-058.000.

 

“Capitalized Lease”:
any lease of property, real or personal, the obligations of the lessee in respect of which are required in accordance with
GAAP to be capitalized on a balance sheet of the lessee.

 

“Capitalized Lease
Obligations”: as to any Person, the obligations of such Person to pay rent or other amounts under any Capitalized
Leases; the amount of such obligations at any time shall be the capitalized amount thereof at such time determined in accordance
with GAAP.

 

“Cash Equivalents”:
(a) securities issued or directly and fully guaranteed or insured by the United States Government, or any agency or instrumentality
thereof, having maturities of not more than one year from the date of acquisition, (b) marketable general obligations issued by
any state of the United States of America or any political subdivision of any such state or any public instrumentality thereof
maturing within one year from the date of acquisition thereof and, at the time of acquisition thereof, having a credit rating of
“A” or better from either Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc.; (c) certificates
of deposit, time deposits, Eurodollar time deposits, overnight bank deposits or bankers’ acceptances having maturities of
not more than one year from the date of acquisition thereof of any domestic commercial bank the long-term debt of which is rated
at the time of acquisition thereof at least A or the equivalent thereof by Standard & Poor’s Ratings Group, or A or the
equivalent thereof by Moody’s Investors Service, Inc., and having capital and surplus in excess of Five Hundred Million and
00/100 Dollars ($500,000,000.00), (d) repurchase obligations with a term of not more than seven days for underlying securities
of the types described in clauses (a), (b) and (c) entered into with any bank meeting the qualifications specified in clause (c)
above, (e) commercial paper rated at the time of acquisition thereof at least A-2 or the equivalent thereof by Standard & Poor’s
Ratings Group or P-2 or the equivalent thereof by Moody’s Investors Service, Inc., or carrying an equivalent rating by a
nationally recognized rating agency, if both of the two named rating agencies cease publishing ratings of investments, and in either
case maturing within two hundred seventy (270) days after the date of acquisition thereof and (f) other investment instruments
approved in writing by the Lender and offered by any financial institution which has a combined capital and surplus of not less
than One Hundred Million and 00/100 Dollars ($100,000,000.00).

 

“Change
of Control”:  any event or series of events by which:

 

(a)          any
“person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act
of 1934, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity
as trustee, Lender or other fiduciary or administrator of any such plan) becomes the “beneficial owner” (as defined
in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person or group shall be deemed to have “beneficial
ownership” of all securities that such person or group has the right to acquire, whether such right is exercisable immediately
or only after the passage of time (such right, an “option right”)), directly or indirectly, of 35% or
more of the equity securities of a Borrower entitled to vote for members of the board of directors or equivalent governing body
of such Borrower on a fully-diluted basis (and taking into account all such securities that such person or group has the right
to acquire pursuant to any option right);

 

    	 

    	 

    

 

(b)          during
any period of 12 consecutive months, a majority of the members of the board of directors or other equivalent governing body of
a Borrower cease to be composed of individuals (i) who were members of that board or equivalent governing body on the first day
of such period, (ii) whose election or nomination to that board or equivalent governing body was approved by individuals referred
to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or equivalent
governing body or (iii) whose election or nomination to that board or other equivalent governing body was approved by individuals
referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that board
or equivalent governing body (excluding, in the case of both clause (ii) and clause (iii), any individual whose initial nomination
for, or assumption of office as, a member of that board or equivalent governing body occurs as a result of an actual or threatened
solicitation of proxies or consents for the election or removal of one or more directors by any person or group other than a solicitation
for the election of one or more directors by or on behalf of the board of directors);

 

(c)          there
shall have occurred a sale of all or substantially all of the assets of the Borrowers on a consolidated basis; or

 

(c)          there
shall have occurred, under any indenture, any agreement or any other instrument evidencing any Indebtedness or Equity Interest
in excess of Three Hundred Fifty Thousand and 00/100 Dollars ($350,000.00), any “change of control” or any comparable
term (as set forth in any indenture, any agreement or any other instrument evidencing such Indebtedness or Equity Interest) obligating
a Borrower or any other Obligor to repurchase, redeem or repay all or any part of the Indebtedness or Equity Interest provided
for therein.

 

“Closing Date”:
the date of satisfaction, in the sole determination of Lender, of the conditions precedent set forth in Section 3.

 

“Collateral”:
 all assets of the Borrowers, now owned or hereinafter acquired, upon which a Lien is purported to be created by any Security
Document.

 

“Commitment”:
the Lender’s obligation to make Loans to the Borrowers in an aggregate principal amount at any one time outstanding not to
exceed an amount equal to Seven Hundred Thousand and 00/100 Dollars ($700,000.00).

 

“Commitment Fee”:
as defined in Section 2.4.

 

“Commonly Controlled
Entity”: an entity, whether or not incorporated, which is under common control with a Borrower within the meaning
of Section 4001 of ERISA or is part of a group which includes a Borrower and which is treated as a single employer under Section
414(b) or (c) of the Tax Code or, solely for purposes of determining liability under Section 412 of the Tax Code, which is treated
as a single employer under Section 414(b), (c), (m) or (o) of the Tax Code.

 

    	 

    	 

    

 

“Contractual Obligation”:
 as to any Person, any provision of (a) any security issued by such Person or (b) any agreement, instrument or other undertaking
to which such Person is a party or by which it or any of its property is bound.

 

“Control Agreement”:
means any control agreement granting the Lender control (under the UCC) over the deposit accounts, securities account or commodities
accounts, if any, of any Borrower.

 

“Default Rate”:
as defined in Section 2.5(a).

 

“Defaults”:
as defined in Section 8.1.

 

“Dollars”
and “$”: dollars in lawful currency of the United States of America.

 

“Eligible Assignee”:
any Person controlling, controlled by, or under common control with, the Lender.

 

“Environmental Laws”:
 any and all foreign, Federal, state, local or municipal laws, rules, orders, regulations, statutes, ordinances, codes, decrees,
requirements of any Governmental Authority or other Requirements of Law (including common law) regulating, relating to or imposing
liability or standards of conduct concerning protection of human health or the environment, as now or may at any time hereafter
be in effect.

 

“Equity
Interests”: with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests
in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital
stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares
of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or
acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such
Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares,
warrants, options, rights or other interests are outstanding on any date of determination.

 

“ERISA”:
the Employee Retirement Income Security Act of 1974, as amended from time to time.

 

“Events of Default”:
 as defined in Section 8.1.

 

“GAAP”:
 generally accepted accounting principles in the United States of America in effect from time to time.

 

“Governmental Authority”:
any nation or government, any state or other political subdivision thereof and any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government.

 

    	 

    	 

    

 

“Indebtedness”:
of any Person at any date, without duplication, (a) all indebtedness of such Person for borrowed money (whether by loan or the
issuance and sale of debt securities) or for the deferred purchase price of property or services (other than current trade liabilities
incurred in the ordinary course of business and payable in accordance with customary practices), (b) any other indebtedness of
such Person which is evidenced by a note, bond, debenture or similar instrument, (c) all obligations of such Person under Capitalized
Leases, (d) all obligations of such Person in respect of letters of credit, acceptances or similar instruments issued or created
for the account of such Person, (e) all liabilities of third parties secured by any Lien on any property owned by such Person even
though such Person has not assumed or otherwise become liable for the payment thereof (the amount of such indebtedness with respect
to such Person being deemed to be the lesser of the value of such property or the amount of indebtedness of others so secured)
and (f) guarantee obligations of such Person in respect of obligations of the kind referred to in clauses (a) through (e) above.

 

“Initial Financial
Statements”: as defined in Section 5.1.

 

“Intellectual Property”:
 as defined in Section 5.11.

 

“Inventory”:
all “inventory” (as that term is defined in the UCC) of each Borrower, and to the extent not included in such definition,
shall also mean and include all raw materials and other materials and supplies, work-in-process and finished goods of each Borrower
and any products made or processed therefrom and all substances, if any, commingled therewith or added thereto.

 

“Investment”:
as defined in Section 7.8.

 

“LC Issuer”:
at any time, the issuer of the Letter of Credit (which, initially, shall be Deutsche Bank AG), provided, however, that any successor
LC Issuer shall be satisfactory to the Lender in its reasonable discretion.

“Letter of Credit”:
means one or more irrevocable documentary letters of credit now or hereafter issued by the LC Issuer for the benefit of ThermoEnergy,
in the original face amount of not less than Nine Hundred Seventy-Eight Thousand One Hundred Seventy-Nine and 40/100 Dollars ($978,179.40)
and otherwise in form and substance reasonably acceptable to the Lender.

 

“Lender”:
as defined in the preamble to this Agreement.

 

“Lien”:
 any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge or other
security interest or any preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever
(including, without limitation, any conditional sale or other title retention agreement and any Capitalized Lease having substantially
the same economic effect as any of the foregoing).

 

“Loan Documents”:
this Agreement, the Note, the Security Documents, the Letter of Credit and any and all other agreements, guaranties, instruments,
documents, certificates, financing statements, powers of attorney, consents and filings, whether heretofore, now, or hereafter
executed by or on behalf of a Borrower, any of its Subsidiaries, or any other Person and delivered to the Lender in connection
with the transactions contemplated herein, all as may be amended, modified, supplemented, restated or extended from time to time.

 

    	 

    	 

    

 

“Material Adverse
Effect”: a material adverse effect or change on (a) the business, operations, property, prospects or condition (financial
or otherwise) of the Borrowers and their respective Subsidiaries taken as a whole or (b) the validity or enforceability of this
Agreement or any of the other Loan Documents or the rights or remedies of the Lender or any Lender hereunder or thereunder including
the validity, priority, perfection or enforceability of the security interests created by the Security Documents.

 

“Maturity Date”:
the earlier of (i) March 4, 2012 and (ii) one (1) Business Day following the date any Borrower draws any amount under the Letter
of Credit.

 

“Moody’s”:
Moody’s Investors Services, Inc.

 

“Note”:
 as defined in Section 2.2.

 

“Obligations”:
 all Indebtedness, obligations and liabilities of a Borrower or any of its Subsidiaries to the Lender, individually or collectively,
now existing or hereafter arising, direct or indirect, joint or several, absolute or contingent, matured or unmatured, liquidated
or unliquidated, secured or unsecured, arising by contract, operation of law or otherwise, arising or incurred under this Agreement
or any of the other Loan Documents.

 

“Obligors”:
 collectively, the Borrowers and each Person who, following the Closing Date, becomes a guarantor of the Obligations.

 

“Obsolete Property”:
any property of a Borrower or any of its Subsidiaries which is obsolete, outdated or worn out or the useful life of which has ended,
in each case in the good faith determination of a Borrower or any applicable Subsidiary.

 

“PBGC”:
the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of Title IV of ERISA and any Governmental Authority
which succeeds to the powers and functions thereof.

 

“Patent Security Agreements”:
the Patent Security Agreements to be executed and delivered by each of the applicable Borrowers, substantially in the
form of Exhibit B, as the same may be amended, supplemented or otherwise modified from time to time.

 

“Permitted Debt”:
any of the following:

 

(a)          Indebtedness
to the Lender arising under any of the Loan Documents;

 

(b)          Indebtedness
arising under the Roenigk Family Trust Note;

 

(c)          Indebtedness
consisting of Purchase Money Indebtedness and/or in respect to Capitalized Lease Obligations; provided, however, that the
aggregate amount of all such Indebtedness at any one time outstanding shall not exceed Two Hundred Thousand and 00/100 Dollars
($200,000.00);

 

(d)          Indebtedness
with respect to taxes, assessments, governmental charges or levies, which are being contested in good faith by appropriate proceedings,
provided that adequate reserves with respect thereto are maintained on the books of a Borrower or its Subsidiaries, as the case
may be, in conformity with GAAP; and

 

    	 

    	 

    

 

(e)          Indebtedness
under performance bonds, surety bonds, release, appeal and similar bonds, statutory obligations or with respect to workers’
compensation claims, in each case incurred in the ordinary course of business, and reimbursement obligations in respect of any
of the foregoing;

 

(f)          Indebtedness
arising from the honoring by a bank or other financial institution of a check, draft or other similar instrument drawn against
insufficient funds in the ordinary course of business;

 

(g)          current
liabilities which are incurred in the ordinary course of business and which are not incurred through (i) the borrowing of money
or (ii) the obtaining of credit except for credit on an open account basis customarily extended and in fact extended in connection
with normal purchases of goods and services;

 

(h)          Indebtedness
of a Borrower to any Subsidiary and of any Subsidiary to a Borrower or any other Subsidiary, so long as such Indebtedness (i) is
subordinated in right of payment to all Obligations; and (ii) has terms and conditions as the Lender may reasonably require;

 

(i)          Indebtedness
set forth on Schedule 5.14; and

 

(j)          unsecured
Indebtedness in an aggregate principal amount not to exceed Fifty Thousand and 00/100 Dollars ($50,000.00) at any time outstanding.

 

“Permitted Liens”:
any of the following:

 

(a)          Liens
created pursuant to the Security Documents;

 

(b)          Liens
for taxes not yet due or which are being contested in good faith and by appropriate proceedings diligently conducted, if adequate
reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP;

 

(c)          carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens arising in the ordinary course
of business which are not overdue for a period of more than 30 days or which are being contested in good faith and by appropriate
proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of the applicable Person;

 

(d)          pledges
or deposits in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other
social security legislation, other than any Lien imposed by ERISA;

 

(e)          deposits
to secure the performance of bids, trade contracts and leases (other than Indebtedness), statutory obligations, surety and appeal
bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of business;

 

(f)          easements,
rights-of-way, restrictions and other similar encumbrances affecting real property which, in the aggregate, are not substantial
in amount, and which do not in any case materially detract from the value of the property subject thereto or materially interfere
with the ordinary conduct of the business of the applicable Person;

 

    	 

    	 

    

 

(g)          Liens
securing judgments for the payment of money not constituting an Event of Default under this Agreement;

 

(h)          Liens
securing Indebtedness permitted under clause (c) of the definition of the term “Permitted Debt,” as set forth in this
Appendix A; provided, however, that (i) such Liens do not at any time encumber any property other than the
property financed by such Indebtedness and (ii) the Indebtedness secured thereby does not exceed the cost or fair market value,
whichever is lower, of the property being acquired on the date of acquisition;

 

(i)          Liens
arising from the filing of precautionary UCC financing statements relating solely to personal property leased pursuant to operating
leases entered into in the ordinary course of business of a Borrower and its Subsidiaries;

 

(j)          (i) Liens
of a collecting bank arising in the ordinary course of business under Section 4-210 of the UCC in effect in the relevant jurisdiction
and (ii) Liens of any depositary bank in connection with statutory, common law and contractual rights of set-off and recoupment
with respect to any deposit account of a Borrower or any Subsidiary thereof;

 

(k)          (i) contractual
or statutory Liens of landlords solely to the extent relating to the goods and equipment located on the leased premises relating
to any lease agreements with such landlord, and (ii) contractual Liens of suppliers (including sellers of goods) granted in
the ordinary course of business to the extent limited to the property or assets purchased from such suppliers relating to such
contract;

 

(l)          any
interest or title of a licensor, sublicensor, lessor or sublessor with respect to any assets under any license or lease agreement
to the Borrowers or any Subsidiary entered into in the ordinary course of business which do not (i) interfere in any material
respect with the business of a Borrower or its Subsidiaries or materially detract from the value of the relevant assets of a Borrower
or its Subsidiaries or (ii) secure any Indebtedness;

 

(m)          to
the extent constituting Liens, restrictions under federal and state securities Laws on the transfer of securities not securing
Indebtedness and which do not, individually or in the aggregate, materially detract from the value of the properties or assets
of a Borrower and its Subsidiaries; and

 

(n)          Liens
in existence on the date hereof listed on Schedule 7.3; provided, however, that no such Lien encumbers any additional
property after the Closing Date and that the amount of Indebtedness secured thereby shall not subsequently be increased.         

 

“Person”:
an individual, partnership, corporation, business trust, joint stock company, limited liability company, trust, unincorporated
association, joint venture, Governmental Authority or other entity of whatever nature.

 

    	 

    	 

    

 

“Plan”:
at a particular time, any employee benefit plan which is covered by ERISA and in respect of which any Borrower or a Commonly
Controlled Entity is (or, if such plan were terminated at such time, would under Section 4069 of ERISA be deemed to be) an “employer”
as defined in Section 3(5) of ERISA.

 

“Purchase Money Indebtedness”:
any Indebtedness incurred by a Borrower or any of its Subsidiaries, whichever is applicable, in connection with the acquisition
by such Borrower or any of its Subsidiaries, whichever is applicable, of any inventory or equipment in the ordinary course of business.

 

“Reportable Event”:
any of the events set forth in Section 4043(b) of ERISA, other than those events as to which the thirty day notice period is
waived under subsections .13, .14, .16, .18, .19 or .20 of PBGC Reg. Section 2615.

 

“Requirement of Law”:
 as to any Person, the Certificate (or Articles) of Incorporation (or Organization) and By-Laws or other organizational or
governing documents of such Person, and any law, treaty, rule or regulation or determination of an arbitrator or a court or other
Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or
any of its property is subject.

 

“Responsible Officer”:
 as to any Person, the chief executive officer and/or the president of such Person, or with respect to financial matters, the
chief financial officer of such Person or, in either case, such other executive officers as may be designated from time to time
by such Person in writing to the Lender.

 

“Restricted
Payment”:  any dividend or other distribution (whether in cash, securities or other property) with respect to any
capital stock or other Equity Interest of a Borrower or any Subsidiary, or any payment (whether in cash, securities or other property),
including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or
termination of any such capital stock or other Equity Interest, or on account of any return of capital to such Borrower’s
stockholders, partners or members (or the equivalent Person thereof).

 

“Roenigk Family Trust
Note”: that certain Amended and Restated Convertible Promissory Note, dated as of April 1, 2012, from ThermoEnergy
made payable to the order of The Roenigk Family Trust dated November 10, 2004, in the original principal amount of One Million,
Eight Hundred Seventy-Seven Thousand, Two Hundred Seventeen Dollars and Twelve Cents ($1,877,217.12), as the same may have been
or be amended, modified, substituted, extended or restated, from time to time.

 

“S&P”
means Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc.

 

“SEC”:
Securities and Exchange Commission of the United States of America, together with any successor thereto.

 

“Securities Act”:
the Securities Act of 1933, as amended from time to time.

 

    	 

    	 

    

 

“Security Agreement”:
 the Pledge and Security Agreement to be executed and delivered by the Borrowers, substantially in the form of Exhibit
C, as the same may be amended, supplemented or otherwise modified from time to time.

 

“Security Agreements”:
collectively, the Security Agreement, the Control Agreements, the Patent Security Agreements and the Trademark Security Agreements.

 

“Security Documents”:
collectively, the Security Agreements and all other security agreements, pledge agreements, financing statements, assignments,
mortgages, agreements, documents and instruments now or hereafter delivered to the Lender granting a Lien on any asset or assets
of any Person to secure the Obligations or to secure any guarantee of any such Obligations and, including, without limitation,
any such document delivered pursuant to Section 5.10.

 

“Subsidiary”:
as to any Person, a corporation, partnership or other entity of which shares of stock or other ownership interests having ordinary
voting power (other than stock or such other ownership interests having such power only by reason of the happening of a contingency)
to elect a majority of the board of directors or other managers of such corporation, partnership or other entity are at the time
owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both,
by such Person. Unless otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries” in this
Agreement shall refer to a Subsidiary or Subsidiaries of the applicable Borrower.

 

“System”:
the Ammonia Reduction Process system to be used to remove ammonia from the condensate water fabricated for the Buyer and installed
at the Buyer’s power plant in Jakarta, Indonesia.

 

“Tax Code”:
the Internal Revenue Code of 1986, as amended from time to time.

 

“Trademark Security
Agreement”: the Trademark Security Agreement to be executed and delivered by each of the applicable Borrowers,
substantially in the form of Exhibit D, as the same may be amended, supplemented or otherwise modified from time
to time.

 

“UCC”: 
the Uniform Commercial Code as from time to time in effect in The Commonwealth of Massachusetts; provided, however, that
if by reason of mandatory provisions of law, the perfection or the effect of perfection or non-perfection of the security interest
in any Collateral or the availability of any remedy hereunder is governed by the Uniform Commercial Code as in effect on or after
the date hereof in any other jurisdiction, then the term “UCC” shall mean the Uniform Commercial Code as in effect
in such other jurisdiction for purposes of the provisions hereof relating to such perfection or effect of perfection or non-perfection
or availability of such remedy.

 

2.          Use
of Terms. The use of the singular of terms which are defined in the plural shall mean and refer to any one of them; and pronouns
used herein shall be deemed to include the singular and the plural and all genders. The use of the connective “or”
is not intended to be exclusive; the term “may not” is intended to be prohibitive and not permissive; use of “includes”
and “including” is intended to be interpreted as expansive and amplifying and not as limiting in any way.

 

    	 

    	 

    

 

The words “hereof”, “herein”
and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement.

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