Document:

ex10_1.htm

    
       

       

      EXHIBIT
C-1

      
 

      

    

    
      Diamond
Information Institute, Inc.

    

    
      

    

    
      ***ALL
INFORMATION WILL BE TREATED CONFIDENTIALLY***

    

    
      

    

    
      INVESTOR
QUESTIONNAIRE

    

    
      

    

    
      INSTRUCTIONS:  This
Questionnaire is being sent to each individual who has indicated an interest in
purchasing the Common Stock (the "Common Shares") and the Common Stock Purchase
Warrants (the Warrants”) of Diamond Information Institute, Inc., a New Jersey
corporation (the "Company").  The purpose of this Questionnaire is to
assure the Company that each investor will meet the standards imposed by
applicable federal and state law, since the Common Shares and the Warrants
offered hereunder will not be registered with the Securities and Exchange
Commission or with the securities regulatory agency of any state.

      

      If the answer to any
questions is "None" or "Not Applicable", please so state.  Your
answers will, at all times, be kept strictly confidential.  However,
by signing this questionnaire, you agree that the Company and/or seller may
present this Questionnaire to such parties as it deems appropriate, if called
upon under law to establish the availability under state or federal securities
laws of an exemption from registration of this private placement. Please
complete, sign, date, and return the questionnaire to the
Company.

    

    
      

    

    
      PLEASE
PRINT

    

    
      

      Name_____________________________________________________________

      

      Residence
Address __________________________________________________

      

      _________________________________________________________________

      

      Phone
Number _____________________________________________________

      

      Occupation________________________________________________________

      

      Business
Address ___________________________________________________

      
 

      _________________________________________________________________

      

      Business
Telephone __________________________________________________

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
      *
If Corporate Purchaser:

      

      Publicly
Owned _____________ or Privately Owned ________________

      

      Jurisdiction
of Incorporation _______________________________________

      

      Fiscal
Year End ________________________________________________

      

      If
Partnership Purchaser: Date of Formation
___________________________

      

      Fiscal
Year End ________________________________________________

    

    
      

      I
prefer to have correspondence sent to my:

    

    
      

    

    
      Home
Address (___)        Business Address
(___)

    

    
      

      

    

    
      I.  INVESTOR
INFORMATION

    

    
      

    

    
      
        	
                 1.

              	
                Set
      forth in the space provided below the state(s) in which you have
      maintained your principal residence during the past two years and the
      dates during which you resided in each
state.

              

      

    

    
      

    

    
      ____________________________________________________________

    

    
      

    

    
      ____________________________________________________________

    

    
      

    

    
      
        	
                 2.

              	
                Do
      you maintain a house or apartment in any other state(s)?  If
      yes, in which state(s)?

              

      

    

    
      

    

    
      ____________________________________________________________

    

    
      

    

    
      
        	
                 3.

              	
                In
      which state, if any, do you pay state income
  taxes?

              

      

    

    
      

    

    
      ____________________________________________________________

    

    
      

    

    
      
        	
                 4.

              	
                In
      which state, if any, are you registered to
vote?

              

      

    

    
      

    

    
      ____________________________________________________________

      

    

    
      
        	
                 5.

              	
                What
      is your present age?

              

      

    

    
      

    

    
      ____________________________________________________________

    

    
      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
      6.           The
undersigned has previously purchased Private Placements (securities which were
sold in reliance upon the non-public offering exemption from registration under
the Securities Act of 1933).

      

    

    
                      Yes
(___)     No (___)

    

    
      

      

      7.           Do
you believe that you are capable of evaluating the merits and risks of this
investment?

      

    

    
                      Yes
(___)     No (___) If yes, please describe and set
forth the reasons.

      

      ____________________________________________________________

    

    
      

    

    
      ____________________________________________________________

    

    
      

    

    
      ____________________________________________________________

    

    
      

    

    
      
        	
                8.

              	
                Do
      you intend to use a Purchaser Representative to assist you in your
      understanding of this
investment?

              

      

    

    
      

    

    
                      Yes
(___)     No (___)

    

    
      

    

    
      If
you use a Purchaser Representative, fill out the enclosed Selection of Purchaser
Representative Form.

    

    
      

      

    

    
             Print
Name: ____________________________ Date:___________

    

    
      

    

    
      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
      II. STATUS AS ACCREDITED or NON-
ACCREDITED INVESTOR

    

    
      (Please answer each
question.)

    

    
      

    

    
      
        	
                 9.

              	
                 

              	
                (a)

              	
                Does
      your individual net worth (inclusive of
      home, furnishings and automobiles valued at fair market value) or the
      joint net worth of you and your spouse (if any), exceed $1,000,000 at the
      present time?

              

      

    

    
      

    

    
      Yes
___________________                                                              No
______________________

    

    
      

    

    
      
        	
                           
      (b)

              	
                Did
      your individual income exceed $200,000 in each of the last two years and
      do you expect an income in excess of $200,000 this
  year?

              

      

    

    
       

    

    
                      
(For this purpose, income is computed by adding the following items to adjusted
gross income as computed for federal income tax purposes, but not including
any amounts attributable to a spouse or property owned by a
spouse):  any deductions for a long-term capital gain or
depletion, any exclusion of interest earned on tax-exempt bonds, any losses
allocated from a limited partnership, amounts contributed to an IRA or Keogh
retirement plan and alimony payments.)

    

    
      

    

    
      Yes
__________________                                                                No
______________________

    

    
      

    

    
      
        	
                           
      (c)

              	
                If
      married, did your joint combined income with that of your spouse exceed
      $300,000 in each of the last two years and do you expect a joint combined
      income in excess of $300,000 this
year?

              

      

    

    
      

    

    
      Yes
__________________                                                                No
______________________

    

    
      

    

    
      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

    

    
      III. REPRESENTATIONS

    

    
      

      I
hereby warrant and represent that:

      

    

    
      
        	
                (a)

              	
                The
      information contained in this Investor Questionnaire is true, complete and
      accurate, and may be relied upon by the Corporation in determining whether
      the offering in which I propose to participate is exempt from registration
      under the  Act of 1933, pursuant to Regulation D or otherwise,
      and applicable state securities
laws.

              

      

    

    
      

    

    
      
        	
                (b)

              	
                I
      have sufficient knowledge and experience in financial and business matters
      to evaluate the merits and risks of a prospective investment.  I
      understand the risks associated with an investment
  herein.

              

      

    

    
      

    

    
      
        	
                (c)

              	
                I
      understand that a false representation may constitute a violation of law,
      and agree to indemnify and hold harmless anyone who relies on my
      representations from any loss or damages resulting from any misstatement
      in this Investor
Questionnaire.

              

      

    

    
      

    

    
      
        	
                (d)

              	
                I
      will notify the Company of any material changes in the information
      provided which occur prior to the acceptance of my
      subscription.

              

      

    

    
      

    

    
      
        	
                (e)

              	
                I am experienced in
      investing in small, early-stage companies and the amount that I am
      investing is no more than 15% of my net
  worth.

              

      

    

    
      

      I
have executed this Investor Questionnaire this ____ day of ____________, 2007,
for the purpose of qualifying for the purchase of privately placed
securities.

      

      

      

      ______________________________                                                                _____________________________

      Signature
of
subscriber                                                                                          Signature
of co-owner (if the Units are 

                                                        to be purchased in joint
name or as community

             property)

      

      

      

    

    
      [The
remainder of this page has been left intentionally blank.]

    

    
      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

    

    
      EXHIBIT C-2

      

    

    
       DIAMOND INFORMATION INSTITUTE,
INC.

      A DIAMOND INFORMATION INSTITUTE
CORPORATION

    

    
      

    

    
      INVESTMENT
AGREEMENT

      

    

    
      
        	
                 
      

              	
                Date:_____________________

              

      

    

    
      

    

    
      

    

    
      Memorandum
No.___________

      

    

    
      Dear
Sir:

      

    

    
      1.     The
undersigned hereby acknowledges receipt of the following information on DIAMOND
INFORMATION INSTITUTE, INC., a New Jersey corporation (the
"Company"):

    

    
      

    

    
              a) Confidential
Private Placement Memorandum dated April 2, 2007;

              b) Audited Financial
Statements as of 12/31/2006;

              c) Articles of
Incorporation and Bylaws for the Company;

              d) Certificate of
Designation of Preferences.

      

    

    
      2.     The
undersigned hereby tenders this Investment Agreement for the purchase of the
Company's Common Stock and Common Stock Purchase Warrants (the
"Securities").

    

    
      

    

    
      3.     Experience in Investing & Matter
of Net Worth. The undersigned warrants and represents that: (a)
Subscriber is experienced in making investments into small, early-stage
companies that have no or little record of generating revenues; and (b)
Subscriber is investing no more than 15% of his net worth in connection with the
purchase of the Securities hereunder.

      

      4.     The
undersigned hereby represents and warrants to the Company as
follows:

    

    
      

    

    
                  
a.) The Subscriber understands that the representations contained herein are
made for the purpose of satisfying the Company that the Subscriber is an
Accredited Investor. THE
SUBSCRIBER HEREBY REPRESENTS THAT THE STATEMENT OR STATEMENTS MADE HEREIN ARE
TRUE AND CORRECT IN ALL RESPECTS.  THE SUBSCRIBER UNDERSTANDS THAT A
FALSE REPRESENTATION MAY CONSTITUTE A VIOLATION OF LAW AND THAT ANY PERSON WHO
SUFFERS DAMAGE AS A RESULT OF A FALSE REPRESENTATION MAY HAVE A CLAIM AGAINST
THE SUBSCRIBER FOR DAMAGES.

       

    

    
                 b.) In connection
with this Investment Agreement, the Subscriber has been advised and understands
that immediately prior to the offer and purchase of the Securities pursuant to
this Agreement:

      

    

    
                       (i)           The
Subscriber had such knowledge and experience in financial and business matters
that the subscriber was capable of evaluating the merits and risks of the
prospective investment; and

      

                       (ii)           The
Subscriber was able to bear the economic risk of the investment;
and

      

                       (iii)           Status as Accredited
Investor.  The Subscriber is an Accredited Investor as that
term is defined under Regulation D, Rule 501(a).  Under Regulation D,
an individual Accredited Investor must
meet the following criteria:

    

    
      

                 a.) The Subscriber
is a natural person and had an individual income in
excess of $200,000 or joint income with the
Subscriber’s spouse in excess of $300,000 in each of the two most recent years
and who reasonably expects reaching the same level of income in the current
year; and/or

      

                 b.) The Subscriber
is a natural person is a natural person and his/her net worth as of a current
date (i.e., the excess of total assets over total liabilities), exclusive of home, home
furnishings, and automobiles, either individually or jointly with his/her
spouse, exceeds $1,000,000.

    

    
      

    

    
                 c.)  Investment
Intent.  Subscriber is acquiring the Securities for his/her own
home account and not for the account of others and for investment purposes only
and not with a view to or for the sale, offer for sale, transfer, assignment,
resale, or distribution thereof, in whole or in part.  Subscriber has
no contract to sell, transfer, assign, or pledge to any person the Securities
subscribed for, or any part thereof.  Subscriber has no present plans
to enter into any such contract, undertaking, or
arrangement.  Subscriber will not transfer or assign the Investment
Agreement or any of his interest herein.  Subscriber understands the
meaning and legal consequences of the foregoing representations and
warranties.

    

    
       

                       d.)  Reliance Upon Own Advisors.
Subscriber has consulted with and is relying upon such legal, tax, and other
counsel, each of whom Subscriber has found necessary to consult concerning this
transaction, and such consultation has included an examination of applicable
documents and an analysis of all tax, financial, corporate, and securities law
aspects.  Subscriber, Subscriber’s counsel, Subscriber’s advisors, and
such other persons with whom Subscriber found it necessary to consult, have
sufficient knowledge and experience in such matters to evaluate the information
and the risks of the investment and to make an informed investment decision with
respect thereto.

    

    
       

                       e.)  Reliance Upon Own Tax
Advisor.  With respect to the tax aspects of his investment,
Subscriber is relying solely upon the advice of his own personal tax advisors
and upon his own knowledge with respect thereto.  Subscriber is aware
that any Federal Income Tax benefits which may be available to him may be lost
through adoption of new laws or regulations, amendments to existing laws and
regulations, or changes in the interpretation of existing laws and
regulations.

    

    
      

    

    
                  f.)  Absence of Registration; Restricted
Securities. Subscriber understands and is aware that the Securities have
not been registered under the Securities Act of 1933, as amended
("the  Act"), nor pursuant to any other Federal law in reliance on
exemptions for private offerings contained in Section 4(2) and Section 4(6) of
the  Act.  Subscriber is fully aware that any Securities
purchased him are to be sold in reliance upon such exemption based upon his
representations, warranties, and agreements set forth
herein.  Subscriber is also aware and understands that such exemption
is dependent upon the accuracy of the statements made by Subscriber
herein.  There is no assurance that the Company’s planned information
statement will become effective or that any trading market will develop or be
maintained.

    

    
      

    

    
                   g.)  Understanding Economic Risks.
Subscriber is fully aware of the restrictions on sale, transferability, and
assignment of the Securities, and Subscriber must bear economic risk of his
investment in the Company for an indefinite period of time because the
Securities (and any Shares of the Company's Common Stock acquired in connection
with the purchase of the Securities) have not been registered under
the  Act, and therefore, cannot be offered or sold unless they are
subsequently registered under the  Act or an exemption from such
registration is available.

      

                   h.)  Subscriber
is aware that the Securities are speculative investments involving an EXTREMELY HIGH LEVEL OF RISK
and that any right to transfer his Securities in the Company is limited
and restricted by law.

      

                  
i.)   Absence of
Any Other Representations.  No representations or warranties
have been made to Subscriber other than those contained herein, and Subscriber
has not relied upon any other representation or warranty.

      

                  
j.)  Subscriber is over the age of 21, and Subscriber, either alone or
together with Subscriber’s offeree representative (if any), has business and
investment experience and knowledge sufficient to enable Subscriber to evaluate
the hazards and merits of making this investment.

      

                  
k.)  The foregoing representations and warranties are true and
accurate as of the date hereof and will be true and correct as of the date of
his purchase of the Securities.  All representations and warranties
made in this Agreement shall survive Investor's purchase of the Securities and
any execution of this Agreement.

    

    
      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
      
        	
                        
      5.

              	
                Receipt of Memorandum.
      Investor further acknowledges and represents that Subscriber has received,
      read, understood, and is familiar with and understands the Private
      Placement Memorandum bearing all attachments and exhibits thereto
      concerning the Company and the offering pursuant to which this Investment
      Agreement is being made.  Subscriber further acknowledges that,
      except as set forth herein, no representations or warranties have been
      made to Subscriber or to Subscriber’s advisors by the Company or by any
      person acting on behalf of the Company, the financial condition of the
      Company, the deductibility of any item for tax purposes, and/or the
      economic, tax, or any other aspects or consequences of a purchase of a
      share and/or investment in the Company, and Subscriber has not relied upon
      any information concerning the offering, written or oral, other than as
      contained herein.

              

      

    

    
      

    

    
      
        	
                        
      6.

              	
                The
      undersigned understands that these Securities of the Company are being
      purchased for the undersigned's own account for investment and not for
      distribution or resale to others.  The undersigned agrees that
      Subscriber will not sell or otherwise transfer these securities unless
      they are registered under the Federal  Act of 1933 or unless an
      exemption from such registration is available.  The undersigned
      represents that Subscriber has adequate means of providing for his current
      needs and possible personal contingencies and that Subscriber has no need
      for liquidity of this investment.

              

      

      

      
        	
                 
      

              	
                       
      7.      The
      provisions of this Agreement shall be deemed to obligate, extend to and
      inure to the benefit of the successors, assigns, transferees, grantees,
      and indemnities of both parties to this
  Agreement.

              

      

      

      
        	
                        
      8.

              	
                Wherever
      the context so requires:  the singular number shall include the
      plural; the plural shall include the singular; and the masculine gender
      shall include the feminine and neuter
genders.

              

      

      

      
        	
                        
      9.

              	
                This
      Agreement, after full execution, acknowledgment and delivery, memorializes
      and constitutes the entire agreement and understanding between the parties
      and supersedes and replaces all prior negotiations and agreements of the
      parties, whether written or unwritten.  Each of the parties to
      this Agreement acknowledges that no other party, nor any agent or attorney
      of any other party has made any promises, representations, or warranty
      whatsoever, expressed or implied, which is not expressly contained in this
      Agreement; and each party further acknowledges that Subscriber or it has
      not executed this Agreement in reliance upon any belief as to any fact not
      expressly recited herein above.  No amendment or waiver of any
      provision, term, or condition of this Agreement shall be effective unless
      the same is executed by the party against whom enforcement is
      sought.

              

      

    

    
      

    

    
      10.    This
Agreement may be executed in any number of counterparts.

       

    

    
      11.   ARBITRATION.  Any dispute or claim arising to or in
any way related to this Agreement shall be settled by binding arbitration in
Fairfield, New Jersey and this Agreement and the
interpretation of this Agreement shall be governed by New Jersey law.  All
arbitration shall be conducted in accordance with the rules and regulations of
the American Arbitration Association ("AAA").  AAA shall designate an
arbitrator from an approved list of arbitrators following both parties' review
and deletion of those arbitrators on the approved list having a conflict of
interest with either party.  Each party shall pay its own expenses
associated with such arbitration.  A demand for arbitration shall be
made within a reasonable time after the claim, dispute or other matter has
arisen and in no event shall such demand be made after the date when institution
of legal or equitable proceedings based on such claim, dispute or other matter
in question would be barred by the applicable statutes of
limitations.  The decision of the arbitrators shall be rendered within
60 days of submission of any claim or dispute, shall be in writing and mailed to
all the parties included in the arbitration.  The decision of the arbitrator shall
be binding upon the
parties and judgment in
accordance with that decision may be entered in any court having jurisdiction
thereof.

    

    
      

    

    
      IN WITNESS WHEREOF, I have
executed this Investment Agreement this _____ day of __________,
2007.

    

    
      

      Dollar
Amount of Securities Purchased: $______________

      

      Number
of Units Purchased:___________________

      

      Name
(please print):__________________________________________________

      

      

      Subscriber
Signature: _________________________________________________

      

      

      Signature
of Co-Subscriber (if any): ______________________________________

      

      

      Signature
of Spouse:__________________________________________________

      

      

      ACCEPTED:

      

      ______________________________                     Date:  ____________________

       Diamond
Information Institute, Inc.

    

    
      

    

    
      c:s:001341:MSR:01-12-05

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

    

    
       DIAMOND INFORMATION INSTITUTE,
INC.

    

    
      A DIAMOND INFORMATION INSTITUTE
CORPORATION

    

    
      

    

    
      INVESTMENT
AGREEMENT

      

    

    
      
        	
                 
      

              	
                Date:_____________________

              

      

      

    

    
      Memorandum
No.____________

    

    
      

      

      Provide
Name(s) exactly as you wish your interest in the Company to be
registered:

      

      ______________________________________________________________________________

      (please
print clearly)

      

      ______________________________________________________________________________

      

      Provide
Address:

      

      ______________________________________________________________________________

      

      

    

    
      1.
If Not in Your Name, Provide Manner of Ownership

             (Joint
Tenancy, Tenants in Common, etc.):

      

      ______________________________________________________________________________

      

      

      2.       Social
Security Number and Address of Each Owner:

    

    
      

    

    
                                           
Address

    

    
               Owner
Name                                                              S.S.
No.                                         (Street/City/State/Zip)

    

    
      

      

      A.____________________                                                        _______________                                          ___________________________

      

      

      B.____________________                                                        _______________                                          ___________________________

    

    
      

    

    
      

      C.____________________                                                        _______________                                          ___________________________

      

    

    
      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

    

    
      EXHIBIT
C-3

      

    

    
      PURCHASER REPRESENTATIVE
QUESTIONNAIRE

    

    
      

    

    
       DIAMOND INFORMATION INSTITUTE,
INC.

      A DIAMOND INFORMATION INSTITUTE
CORPORATION

      

    

    
      Date:______________________

      

      Memorandum
No.____________

      

      

      Name
of
Offeree:  ________________________________________________________

      

      Please
complete the following questionnaire fully, attaching additional sheets if
necessary.

      

      1.
Name
_______________________________________________________________

      

      Age
_________________ Business Address:

      

      ______________________________________________________________________

      

      ______________________________________________________________________

      

      2.
Present occupation or position, indicating period of such practice or employment
and field or professional specialization, if any:

      

      ______________________________________________________________________

      

      3.
List any business or professional education, including degrees received, if
any:

      

      ______________________________________________________________________

      

      ______________________________________________________________________

      

      4.
Have you had prior experience in advising clients with respect to investments of
this type:

      

    

    
      Yes (___)    No
(___)

    

    
      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

    

    
      5.
List any professional licenses or registration, including bar admissions,
accounting certificates, real estate brokerage licenses, and SEC or state
broker-dealer registrations, held by you:

      

      ______________________________________________________________________

      

      ______________________________________________________________________

      

      ______________________________________________________________________

      

      6.
Describe generally any business, financial or investment experience that would
help you to evaluate the merits and risks of this investment:

      

      ______________________________________________________________________

      

      ______________________________________________________________________

      

      ______________________________________________________________________

      

      7.
State how long you have known the Offeree and in what capacity:

      

      ______________________________________________________________________

      

      ______________________________________________________________________

      

      ______________________________________________________________________

      

      8.
In advising the Offeree in connection with Offeree's prospective investment in
the Offering, I will be relying in part on the Offeree's own expertise in
certain areas.

      

    

    
      Yes (___)    No
(___)

    

    
      

      9.
In advising Offeree in connection with Offeree's prospective investment in the
Offering, I will be relying in part on the expertise of an additional Purchase
Representative or Representatives.

      

    

    
      Yes (___)    No
(___)

    

    
      

    

    
      If
"Yes" give the name and address of such additional Representative or
Representatives:

    

    
      

      ______________________________________________________________________

    

    
      

    

    
      ______________________________________________________________________

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
      I
understand that the Company will be relying on the accuracy and thoroughness of
my responses to the foregoing questions, and I represent and warrant to the
selling agent and the Company the following: (i) I am acting as Purchaser
Representative for

      

      _______________________________________________________________

      

      in
connection with evaluating the merits and risks of the prospective investment by
the Offeree in  Diamond Information Institute, Inc.,
(ii)  The answers to the above questions are true and correct and may
be relied upon by the underwriter in determining whether the Offering in
connection with which I have executed this questionnaire is exempt from
registration under Sections 4(2) and 4(6) and Regulation D of the  Act
of 1933, as amended, and under applicable state securities laws; (iii) to the
best of my knowledge, the information contained in the Offeree's suitability
questionnaire, which I have reviewed, is true and correct, and, in my opinion,
the Offeree is capable of bearing the economic risk of the proposed investment;
(v) I have received copies of the Offering document and have reviewed same with
the Offeree; (vi)  The representations, warranties and acknowledgments
made by the Offeree in the Investment Agreement which pertain are true and
correct, and those which pertain to the Offeree, to the best of my knowledge,
are true and correct; (vii) I personally (or together with the Offeree of the
additional Purchaser Representative or Representatives indicated above) have
such knowledge and experience in financial and business matters that I am
capable of evaluating the merits and risks of the Offeree's prospective
investment in the Offering.  Executed at

      

      _____________________________,
______________________ on

      

      this
______________ day of ___________________, 2007.

      

    

    
      

    

    
      _____________________________________________

      (Signature
of Purchaser Representative)

    

    
      

      

      _____________________________________________

      (Print
Name of Purchaser Representative)

      

      _____________________________________________

      (Print
Address of Purchaser Representative)

      

      _____________________________________________

      

      _____________________________________________

      (Print
Telephone No. w/Area Code)Exhibit 10(A)

 

TARGET CREDIT CARD
OWNER TRUST 2008-1

 

$3,825,000,000
Floating Rate Asset-Backed Note

 

NOTE PURCHASE
AGREEMENT

 

May 5, 2008

 

BOTAC, Inc., as Note Purchaser

c/o Chase Bank USA, National Association

201 N. Walnut Street

Wilmington, Delaware 19801

 

Chase Bank USA, National Association

201 N. Walnut Street

Wilmington, Delaware 19801

 

Ladies and Gentlemen:

 

1.  Introduction.  Target Credit
Card Owner Trust 2008-1, a Delaware statutory trust (the “Issuer”),
proposes to issue the $3,825,000,000 Floating Rate Asset-Backed Note (the “Note”,
which term shall include any Additional Notes) and Target Receivables
Corporation, a Minnesota corporation (“TRC”), proposes to sell the Note
to BOTAC, Inc., a Nevada corporation (the “Note Purchaser”),
pursuant to this Note Purchase Agreement (the “Note Purchase Agreement”),
by and among TRC, Target Corporation, a Minnesota corporation (“Target”),
the Note Purchaser and Chase Bank USA, National Association, a national banking
association (“Chase USA”).

 

Target National Bank, a national banking
association, from time to time sells, transfers and otherwise conveys
receivables (the “Receivables”) generated from time to time in a
portfolio of open-end bank credit card accounts and certain related rights to
Target Capital Corporation, a Minnesota corporation (“TCC”), pursuant to
the Amended and Restated Bank Receivables Purchase Agreement, dated as of April 28,
2000 (as amended, supplemented or otherwise modified, the “Bank Receivables
Purchase Agreement”), by and between Target National Bank and TCC.

 

TCC from time to time sells, transfers and
otherwise conveys the Receivables and other rights to TRC pursuant to the
Amended and Restated Receivables Purchase Agreement, dated as of April 28,
2000, as amended by Amendment No. 1 thereto, dated as of August 22,
2001 (as amended, supplemented or otherwise modified, the “Receivables
Purchase Agreement”), by and between TCC and TRC.

 

TRC from time to time transfers the
Receivables and other rights to the Target Credit Card Master Trust, a Delaware
common law trust (the “Trust”), pursuant to the Amended

 

 

and Restated
Pooling and Servicing Agreement, dated as of April 28, 2000, as amended by
Amendment No. 1 thereto, dated as of August 22, 2001 (as amended,
supplemented or otherwise modified, the “Pooling and Servicing Agreement”),
by and among TRC, as Transferor (in such capacity, the “Transferor”),
Target National Bank, as Servicer (in such capacity, the “Servicer”),
and Wells Fargo Bank, National Association, a national banking association (“Wells
Fargo”), as Trustee (the “Trustee”).

 

The Transferor and the Trustee propose to
create a new Series of Investor Certificates (the “Collateral
Certificate”) pursuant to the Series 2008-1 Supplement to the Pooling
and Servicing Agreement, dated as of May 19, 2008 (the “Series Supplement”),
by and among the Transferor, the Servicer and the Trustee.

 

The Collateral Certificate will be
transferred by TRC to the Issuer in consideration of the Note pursuant to the
Deposit and Administration Agreement, dated as of May 19, 2008 (the “Deposit
and Administration Agreement”), by and between TRC, as Depositor and
Administrator (in such capacities, the “Depositor” and the “Administrator,”
respectively) and the Issuer.

 

The Issuer, existing pursuant to the Amended
and Restated Trust Agreement, dated as of May 19, 2008 (the “Trust
Agreement”), by and between TRC, as Depositor, and Wilmington Trust
Company, a Delaware banking corporation, as Owner Trustee, will pledge the
Collateral Certificate to Wells Fargo, as Indenture Trustee (in such capacity,
the “Indenture Trustee”) under the Indenture, dated as of May 19,
2008 (the “Indenture”), by and between the Issuer and the Indenture
Trustee, to secure the Note to be issued by the Issuer on the Closing Date,
pursuant to the Indenture.

 

The Note is an obligation of the Issuer.  The primary asset of the Issuer is the
Collateral Certificate, which represents a specified undivided interest in the
Trust.

 

This Note Purchase Agreement, the Bank
Receivables Purchase Agreement, the Receivables Purchase Agreement, the Pooling
and Servicing Agreement, the Series Supplement, the Deposit and
Administration Agreement, the Trust Agreement, the Indenture and the
Confidentiality and Non-Solicitation Agreement, dated as of May 5, 2008
(the “Confidentiality and Non-Solicitation Agreement”), by and among
TRC, Target, the Note Purchaser, Chase USA and JPMorgan Chase Bank, National
Association shall collectively hereinafter be referred to as the “Basic
Documents.”  Capitalized terms used
but not defined herein have the meanings assigned thereto in the respective
Basic Documents.  In the event that any
definition contained herein shall conflict with or be inconsistent with any
definition contained in the Basic Documents other than this Note Purchase
Agreement, the definitions set forth in this Note Purchase Agreement shall
govern with respect to the Note and this Note Purchase Agreement.  TRC and Target hereby agree with the Note
Purchaser and Chase USA as follows:

 

2.  Representations
and Warranties of TRC and Target. 
Each of TRC and Target, as applicable (TRC as to itself only, and Target
as to itself, Target National Bank and TCC), hereby represents and warrants to,
and agrees with, the Note Purchaser and Chase USA that:

 

 

(a)           Each
of TRC and Target has been duly incorporated and is an existing corporation in
good standing under the laws of the State of Minnesota with power and authority
(corporate and other) to own its properties and conduct its business; and each
of TRC and Target is duly qualified to do business as a foreign corporation in
good standing in all other jurisdictions in which its ownership or lease of
property or the conduct of its business requires such qualification and where
the failure to so qualify would have a material adverse effect on the Trust’s,
the Transferor’s or the Servicer’s, as applicable, ability to perform its
obligations under the Basic Documents to which each is a party.

 

(b)           No
consent, approval, authorization, or order of, or filing with, any governmental
agency or body or any court is required for the consummation by TRC or Target
of the transactions contemplated by this Note Purchase Agreement in connection
with the issuance and sale of the Note, except such as have been obtained and
made.

 

(c)           Neither
TRC nor Target is in violation of its Articles of Incorporation or Bylaws or in
default in the performance or observance of any obligation, agreement, covenant
or condition contained in any agreement or instrument to which it is a party or
by which it or its properties are bound which would have a material adverse
effect on the transactions contemplated in the Basic Documents.  The execution, delivery and performance of
the Basic Documents and the issuance and sale of the Note and compliance with
the terms and provisions thereof will not result in a material breach or
violation of any of the terms and provisions of, or constitute a default under,
any statute, any rule, regulation or order of any governmental agency or body
or any court, domestic or foreign, having jurisdiction over TRC or Target or
any of Target’s subsidiaries or any of their properties, or any material
agreement or instrument to which TRC or Target or any of Target’s subsidiaries
is a party or by which TRC or Target or any of Target’s subsidiaries is bound
or to which any of the properties of TRC or Target or any of Target’s
subsidiaries is subject, or the Articles of Incorporation or Bylaws of TRC or
Target or any of Target’s subsidiaries; TRC has full power and authority to
authorize, issue and transfer the Collateral Certificate as contemplated by the
Deposit and Administration Agreement and sell the Note as contemplated by this
Note Purchase Agreement; and each of TRC and Target has full power and
authority to enter into the Basic Documents to which it is a party.

 

(d)           The
representations and warranties of each of TRC, TCC, Target National Bank and
Target in the Basic Documents to which it is a party are true and correct as of
the date hereof (unless such representation or warranty specifically relates to
an earlier date).

 

(e)           Each
of this Note Purchase Agreement and the other Basic Documents to which TRC,
TCC, Target National Bank and Target (each, a “Target Entity”) is a party has
been duly authorized, executed and delivered by each such party and constitutes
a legal, valid and binding agreement of each Target Entity which is a party
thereto enforceable in accordance with its terms, except as enforceability may
be

 

 

limited by (i) bankruptcy, insolvency,
liquidation, receivership, moratorium, reorganization or other similar laws
affecting the enforcement of the rights of creditors and (ii) general
principles of equity, whether enforcement is sought in a proceeding in equity
or at law.

 

(f)            TRC
has authorized:  (i) the conveyance
of the Receivables and other rights to the Trust, (ii) the issuance of the
Collateral Certificate by the Trust, (iii) the transfer of the Collateral
Certificate to the Issuer and (iv) the issuance and sale of the Note.

 

(g)           Any
taxes, fees and other governmental charges due and payable from or by TRC or
Target in connection with the execution, delivery and performance of the Basic
Documents, the Collateral Certificate and the Note and any other agreements
contemplated therein shall have been paid or will be paid by TRC or Target, as
the case may be, at or prior to the Closing Date to the extent then due.

 

(h)           The
information heretofore furnished by or on behalf of a Target Entity to the Note
Purchaser, as identified in Schedule I hereto but exclusive of any
information that was forward-looking information at the time it was provided,
for purposes of, or in connection with, this Note Purchase Agreement and the
other Basic Documents was true and accurate in every material respect, as of
the date such information was stated or certified.  If the representation or warranty made by TRC
and Target in this subsection 2(h) (i) shall prove to have
been incorrect in any material respect when made, which continues to be
incorrect in any material respect for a period of 60 days after the date on
which written notice of such failure, requiring the same to be remedied, shall
have been given to TRC and Target by the Note Purchaser and (ii) as a
result of which the interests of the Note Purchaser are materially and
adversely affected, a Note Purchase Agreement early amortization event (a “Note
Purchase Agreement Early Amortization Event”) shall be deemed to have
occurred.   Upon discovery by TRC or
Target of a material breach of any representation or warranty of TRC or Target
set forth in this subsection 2(h), the party discovering such breach
shall give prompt written notice thereof to the Note Purchaser.

 

(i)            Other
than as set forth in this Note Purchase Agreement, there are no legal or
governmental proceedings pending or, to the knowledge of any Target Entity,
threatened to which any Target Entity or any of their subsidiaries is a party
or to which any property of any Target Entity or any of their subsidiaries is
the subject which, if determined adversely to a Target Entity could individually
or in the aggregate reasonably be expected to (i) have a material adverse
effect on (A) the financial position or results of operations of any
Target Entity or any of their subsidiaries, taken as a whole, and (B) the Notes,
or (ii) impair materially the ability of any Target Entity or any of their
subsidiaries to perform any of their respective obligations under the Basic
Documents.

 

(j)            When
the Collateral Certificate is issued pursuant to the Series Supplement and
the Pooling and Servicing Agreement, the Trust will not be an

 

 

“investment company” or “controlled” by an “investment
company” as each such term is defined in the Investment Company Act of 1940.

 

(k)           When
the Note is issued pursuant to the Indenture, the Issuer will not be an “investment
company” or “controlled” by an “investment company” as each such term is
defined in the Investment Company Act of 1940.

 

3.  Purchase, Sale and Delivery of the Note.  On the basis of the representations,
warranties and agreements herein contained, but subject to the terms and
conditions herein set forth, TRC agrees to sell to the Note Purchaser, and the
Note Purchaser agrees to purchase from TRC, the Note at a purchase price of
93.00% of the original principal amount thereof and at an Interest Rate of, with
respect to any Interest Accrual Period, a per annum rate equal to LIBOR, as
determined on the related LIBOR Determination Date, plus (x) for each Interest Accrual Period through and
including the earlier of (i) the Interest Accrual Period beginning on April 25,
2013 and (ii) the Interest Accrual Period related to the first Special
Payment Date, 0.65% and (y) for each Interest Accrual Period thereafter,
2.28%.

 

TRC will deliver to the Note Purchaser,
against payment of the purchase price, the Note in the form of one permanent
security in certificated form (the “Certificated Note”).  Payment for the Note shall be made by the
Note Purchaser in Federal (same day) funds by wire transfer to an account
previously designated to the Note Purchaser by TRC or Target by 10:00 a.m.
(New York time), on May 19, 2008 (or such date that is as soon as
practicable after the conditions in Section 7 hereof are satisfied, as
mutually agreed upon by TRC and the Note Purchaser, the “Closing Date”),
but in no case later than May 30, 2008 (the “Termination Date”).  The Certificated Note will be made available
for inspection at the offices of Skadden, Arps, Slate, Meagher & Flom
LLP, Four Times Square, New York, New York 10036, at least 24 hours prior to
the Closing Date.

 

TRC, Target and the Note Purchaser each
covenants to treat the Note as indebtedness for all U.S. federal, state and
local income tax purposes.

 

4.  Representations,
Warranties and Agreements of the Note Purchaser and Chase USA; No Offering by
the Note Purchaser.  Each of the Note
Purchaser and Chase USA, as applicable, as to itself, hereby respectively
represents and warrants to, and agrees with, TRC and Target that:

 

(a)           The
Note Purchaser has been duly organized and is an existing corporation in good
standing under the laws of the State of Nevada with power and authority
(corporate and other) to own its properties and conduct its business; and the
Note Purchaser is duly qualified to do business as a foreign corporation in
good standing in all other jurisdictions in which its ownership or lease of
property or the conduct of its business requires such qualification and where
the failure to so qualify might permanently impair title to property material
to its operations or its right to enforce a material contract against others or
expose it to substantial liability in such jurisdiction.

 

 

(b)           Chase
USA has been duly organized and is an existing national banking association in
good standing under the laws of the United States of America with power and
authority (corporate and other) to own its properties and conduct its business;
and Chase USA is duly qualified to do business as a foreign corporation in good
standing in all other jurisdictions in which its ownership or lease of property
or the conduct of its business requires such qualification and where the
failure to so qualify might permanently impair title to property material to
its operations or its right to enforce a material contract against others or
expose it to substantial liability in such jurisdiction.

 

(c)           No
consent, approval, authorization, or order of, or filing with, any governmental
agency or body or any court is required for the consummation by the Note
Purchaser of the transactions contemplated by this Note Purchase Agreement in
connection with the issuance and sale of the Note, except such as have been
obtained and made and except such as may be required under state securities
laws.

 

(d)           No
consent, approval, authorization, or order of, or filing with, any governmental
agency or body or any court is required for the consummation by Chase USA of
the transactions contemplated by this Note Purchase Agreement in connection
with the issuance and sale of the Note, except such as have been obtained and
made and except such as may be required under state securities laws.

 

(e)           The
Note Purchaser has full power and authority to enter into this Note Purchase
Agreement.

 

(f)            Chase
USA has full power and authority to enter into this Note Purchase Agreement.

 

(g)           The
Note Purchase Agreement has been duly authorized, executed and delivered by the
Note Purchaser and constitutes a legal, valid and binding agreement of the Note
Purchaser enforceable in accordance with its terms, except as enforceability
may be limited by (i) bankruptcy, insolvency, liquidation, receivership,
moratorium, reorganization or other similar laws affecting the enforcement of
the rights of creditors and (ii) general principles of equity, whether
enforcement is sought in a proceeding in equity or at law.

 

(h)           The
Note Purchase Agreement has been duly authorized, executed and delivered by
Chase USA and constitutes a legal, valid and binding agreement of Chase USA
enforceable in accordance with its terms, except as enforceability may be
limited by (i) bankruptcy, insolvency, liquidation, receivership,
moratorium, reorganization or other similar laws affecting the enforcement of
the rights of creditors and (ii) general principles of equity, whether
enforcement is sought in a proceeding in equity or at law.

 

 

(i)            The
Note Purchaser understands that it is purchasing the Note for its own account
(and not in a fiduciary capacity) and does not intend to offer the Note for
sale to the public.

 

(j)            The
Note Purchaser will not offer to sell or otherwise dispose of the Note (or any
interest therein) in violation of any of the registration requirements of the
Securities Act of 1933, as amended (the “Securities Act”) or any
applicable state or other securities laws. 
The Note Purchaser acknowledges that it has no right to require TRC to
register the Note under the Securities Act or any state securities law.

 

(k)           The
Note Purchaser shall execute and deliver an investor letter addressed to TRC
substantially in the form attached as Exhibit B to the Indenture.

 

(l)            The
Note Purchaser has not acquired and will not Transfer any interest in the Note,
or cause an interest in the Note to be marketed, on or through an “established
securities market” within the meaning of Section 7704(b)(1) of the
Code and any regulations thereunder, including, without limitation, any
over-the-counter-market or an interdealer quotation system that regularly
disseminates firm buy or sell quotations.

 

(m)          The
Note Purchaser and Chase USA will not (i) include the Note in any
securitization which would require filings under Regulation AB under the Securities
Act or (ii) use any trademarks, tradenames, service marks, logos or other
proprietary designations of Target or its Affiliates in any securitization, and
the term of any securitization into which the Note is to be included cannot
extend beyond the expected final payment date of the Note.

 

For purposes of this Section 4, “Regulation
AB” shall mean Subpart 229.1100 – Asset Backed Securities (Regulation AB),
17 C.F.R. §§229.1100-229.1123, and all related rules and regulations of
the Securities and Exchange Commission, as such may be amended from time to
time, and subject to such clarification and interpretation as have been
provided by the Securities and Exchange Commission in the adopting release
(Asset-Backed Securities, Securities Act Release No. 33-8518, 70 Fed. Reg.
1,506, 1,531 (Jan. 7, 2005)) or by the staff of the Securities and
Exchange Commission, or as may be provided by the Securities and Exchange
Commission or its staff from time to time.

 

5.  Certain
Agreements of TRC and Target.  Each
of TRC and Target, as applicable (each as to itself only, except that the
covenants as to Target National Bank and TCC are made by Target) covenants and
agrees with the Note Purchaser and Chase USA that:

 

(a)           For
so long as the Note is Outstanding:

 

(i)                    TRC
agrees that it will not and will cause the Issuer and any of their Affiliates
(as defined in Rule 501(b) of Regulation D) not to solicit any offer
to buy or make any offer or sale of, or otherwise negotiate in respect of, the
Note if, as a result of the doctrine of “integration” referred to in Rule 502

 

 

under the Securities Act, such offer or sale
would render invalid (for the purpose of (A) the sale of the Note by the
Issuer to the Note Purchaser, (B) the resale of the Note by the Note
Purchaser to subsequent purchasers or (C) the resale of the Note by such
subsequent purchasers to others) the exemption from the registration
requirements of the Securities Act provided by Section 4(2) thereof,
by Rule 144A or by Regulation S of the Securities Act (“Regulation S”)
thereunder or otherwise.

 

(ii)                   None
of TRC, the Issuer or any of their Affiliates (as defined in Rule 501(b) of
Regulation D) will directly or through any agent:  (A) engage in any form of general
solicitation or general advertising (as those terms are used in Regulation D)
in connection with the offering or sale of the Note in the United States or in
any manner involving a public offering within the meaning of Section 4(2) of
the Securities Act or (B) engage in any “directed selling efforts” (as defined
in Rule 902(c) under Regulation S) with respect to the Note.

 

(b)           For
so long as all of the Notes are held by the Note Purchaser, JPMorgan Chase &
Co. or a wholly-owned direct or indirect subsidiary of JPMorgan Chase &
Co. (each a “Chase Entity” and collectively, the “Chase Entities”):

 

(i)                    For
a period from the date of this Note Purchase Agreement until payment in full of
the Note, Target National Bank, as Servicer, will furnish or cause to be
furnished to the Note Purchaser (A) copies of each certificate, report,
statement and the annual statements of compliance delivered to the Trustee,
pursuant to Article III of the Pooling and Servicing Agreement and Section 5.2
of the Series Supplement and the annual independent certified public
accountant’s servicing reports furnished to the Trustee pursuant to Article III
of the Pooling and Servicing Agreement, by either first-class mail or
electronic transfer (including e-mail) as soon as practicable after such
statements and reports are furnished to the Trustee, and (B) any other
periodic certificates or reports as may be delivered to the Trustee or the
Collateral Certificateholder under the Pooling and Servicing Agreement or the Series Supplement.

 

(ii)                   For
a period from the date of this Note Purchase Agreement until payment in full of
the Note, Target National Bank, as Servicer, will furnish to the Note Purchaser
(A) copies of each certificate and the annual statements of compliance
delivered to the Indenture Trustee, pursuant to Section 3.9 of the
Indenture, by either first-class mail or electronic transfer (including e-mail)
as soon as practicable after such statements and reports are furnished to the
Indenture Trustee, and (B) any other periodic certificates or reports as
may be delivered to the Indenture Trustee under the Indenture; provided that any certificate to be provided to the
Noteholders pursuant to the Indenture shall be provided by the Indenture
Trustee and not Target National Bank.

 

 

(iii)                  For
a period from the date of this Note Purchase Agreement until payment in full of
the Note, Target National Bank, as Servicer, shall provide to the Note
Purchaser the Forecast Book and the Risk Management Review containing
substantially similar information as the copies of such reports previously
provided to Chase USA or if such reports are no longer produced, such
replacement standard monthly profitability and risk management reports used by
Target’s credit card management team in the ordinary course of business to
monitor portfolio performance, in each case by either first-class mail or
electronic transfer (including e-mail) as soon as practicable after being
provided to Target’s credit card management team and not more than sixty (60)
days after the end of the related reporting period, subject, in each case, to
the mutually agreed upon confidentiality provisions.  Neither the Note Purchaser nor Chase USA will
have access to personally identifiable cardholder information.  Target National Bank agrees to have its
senior credit officers, or any other person designated by the foregoing that is
acceptable to the Note Purchaser, meet not more frequently than once each
calendar quarter with representatives of the Note Purchaser to discuss any such
report.  All such meetings shall be at a
location specified by Target National Bank. 
The Note Purchaser will not be reimbursed for its expenses incurred in
participating in such meetings.

 

(iv)                  TRC
agrees that any credit card account initially originated by a party other than
Target National Bank and its successors, assigns or transferees from Target
National Bank, and with respect to any such successors, assigns or transferees
any credit card account originated by such entity (other than Target National
Bank) prior to becoming a successor, assign or transferee of Target National
Bank, shall not become an Automatic Additional Account or Supplemental Account
unless the Note Purchaser shall have given its prior written consent to such
designation.

 

(v)                   TRC
agrees that no credit card account shall be treated as an Eligible Account
unless (a) it is Target branded and includes a consumer value proposition
substantially related to Target retail locations or Target merchandise or (b) the
Note Purchaser shall have given its prior written consent to such designation.

 

(vi)                  TRC
agrees that the Required Retained Transferor’s Percentage shall not be adjusted
unless there is: (A) written notice from TRC to the Trustee, (B) prior
written consent from the Note Purchaser in connection with such action and (C) a
Tax Opinion that such action shall not cause the Trust to be characterized for
Federal income tax purposes as an association or publicly traded partnership
taxable as a corporation or otherwise have any material adverse effect on the
Federal income taxation of any outstanding Series of Certificates or any
Certificate Owner.

 

 

(vii)                 With
respect to the Principal Allocation Percentage, the denominator under clause (2) of
the definition thereof shall be calculated as the sum of the numerators used to
calculate the principal allocation percentages for all Series and
Participations outstanding as of the date as to which such determination is
made; provided, however, that
such numerators for each other Series shall be based on the actual
invested amount of such Series as specified in the respective definition
thereof.

 

(viii)                TRC
agrees that, while each of the Basic Documents may be amended from time to time
in accordance with its terms, any amendment to a Basic Document after the
Closing Date which may have a material adverse effect on the Note Purchaser
shall be subject to the prior written consent of the Note Purchaser and
additionally, that the Note Purchaser shall be given notice of any proposed
amendment to such documents (regardless of any determination of materiality)
not less than ten Business Days prior to the proposed effective date for such
amendment.

 

(ix)                   TRC
agrees that it will request that Target National Bank not at any time, except
as otherwise required by any Requirement of Law, or as is deemed by Target
National Bank to be necessary in order for Target National Bank to maintain its
credit card business, based upon a good faith assessment by Target National
Bank, in its sole discretion, of the nature of the competition in the credit
card business, reduce the annual percentage rates of the Periodic Finance
Charges assessed on the Receivables or reduce other fees on the Accounts, if,
either (a) as a result of such reduction it is reasonably expected that
such reduction will cause an Early Amortization Event to occur with respect to
a Series or (b) such reduction (x) if Target National Bank owns
a comparable segment of receivables, is not applied to any such comparable
segment of consumer open end credit accounts owned by Target National Bank that
have characteristics the same as or substantially similar to the Receivables that
are the subject of such change and (y) if Target National Bank does not
own such a comparable segment of receivables, is made with the intent to (1) materially
benefit TRC over the Investor Certificateholders or (2) materially
adversely affect the Investor Certificateholders, except as otherwise
restricted by an endorsement, sponsorship, or other agreement between TRC and
an unrelated third party or by the terms of the Accounts.  TRC further agrees to provide prompt notice
to the Note Purchaser of the failure on the part of Target National Bank to act
in accordance with such request by TRC.

 

Failure on the part of TRC or Target duly to
observe or perform in any material respect any covenants or agreements of TRC
or Target set forth in subsection 5(b)(iii) through (ix), or
failure on the part of Target National Bank to act in accordance with the
request of TRC as set forth in subsection 5(b)(ix), which failure has a
material adverse effect on the Note Purchaser and which continues unremedied
for a period of 60 days after the date on which

 

 

written notice
of such failure, requiring the same to be remedied, shall have been given to
TRC and Target by the Note Purchaser shall constitute a Note Purchase Agreement
Early Amortization Event.

 

Upon discovery by TRC or Target of a material
breach of any covenants or agreements of TRC or Target set forth in subsection
5(b)(iii) through (ix) or the material failure on the part
of Target National Bank to act in accordance with the request of TRC as set
forth in subsection 5(b)(ix), the party discovering such breach or
failure shall give prompt written notice to the Note Purchaser.

 

6.  Payment
of Expenses.  TRC or Target will pay
all expenses incident to the performance of their obligations under this Note
Purchase Agreement, including (a) the preparation of the Basic Documents,
including this Note Purchase Agreement, the Collateral Certificate and the
Note, (b) the preparation, issuance and delivery of the Note to the Note
Purchaser, (c) the fees and disbursements of counsel and accountants for
TRC and Target and any fees or expenses of any other broker, agent or advisor
to a Target Entity and (d) the fees and expenses of the Trustee and its
counsel, the Owner Trustee and its counsel and the Indenture Trustee; provided, that TRC or Target may not use
Trust Assets for any payments made under this Section 6.

 

It is understood that the Note Purchaser will
pay all expenses incident to the performance of its obligations under this Note
Purchase Agreement, including the fees of its counsel.

 

7.  Conditions of the Obligations of the Note Purchaser.

 

I.  Conditions
to Initial Purchase.  The obligation
of the Note Purchaser to purchase and pay for the Note on the Closing Date will
be subject to the accuracy of the representations and warranties on the part of
TRC and Target herein, to the accuracy of the statements of officers of TRC and
Target made pursuant to the provisions hereof, to the performance by each of
TRC and Target of its obligations hereunder and to the following additional
conditions precedent:

 

(a)           You
shall have received from Timothy R. Baer, General Counsel for Target and
counsel for TRC, TCC and Target National Bank, such opinion or opinions dated
the Closing Date and satisfactory in form and substance to you and your
counsel, substantially to the effect that:

 

(i)                    Each
of TRC, Target and TCC has been duly incorporated and is validly existing and
in good standing under the laws of the State of Minnesota with full corporate
power, authority and legal right to own its properties and conduct its business
as such properties are currently owned and such business is currently
conducted, to execute, deliver and perform its obligations under each of the
Basic Documents to which it is a party and, solely with respect to TRC, as
Transferor, to execute and deliver to the Trustee the

 

 

Collateral Certificate pursuant to the
Pooling and Servicing Agreement and Series Supplement;

 

(ii)                   Target
National Bank is a national banking association duly organized, validly
existing and in good standing under the laws of the United States, and has full
corporate power, authority and legal right to execute, deliver and perform its
obligations under the Basic Documents to which it is a party and, in all
material respects, to own its properties and conduct its business as such
properties are presently owned and as such business is presently conducted;

 

(iii)                  Each
of TRC, Target National Bank, Target and TCC is duly qualified to do business
and is in good standing as a foreign corporation (or is exempt from such
requirements), and has obtained all necessary licenses and approvals in each
jurisdiction in which failure to so qualify or to obtain such licenses and
approvals would render any Credit Card Agreement relating to an Account owned
by the Credit Card Originator or any Receivable transferred to the Trust by the
Transferor unenforceable by the Credit Card Originator, the Transferor, the
Servicer or the Trustee and would have a material adverse effect on the
interests of the Note Purchaser under the Pooling and Servicing Agreement, the Series Supplement,
the Note Purchase Agreement or the Indenture;

 

(iv)                  The
Collateral Certificate has been duly authorized, executed and delivered by the
Transferor and, when duly authenticated by the Trustee in accordance with the
terms of the Pooling and Servicing Agreement and the Series Supplement and
delivered to the Issuer at the direction of the Transferor, will be validly
issued and outstanding and entitled to the benefits provided by the Pooling and
Servicing Agreement and the Series Supplement;

 

(v)                   The
Note has been duly authorized, executed and delivered by the Issuer and, when
duly authenticated by the Indenture Trustee in accordance with the terms of the
Indenture and delivered to and paid for by the Note Purchaser in accordance
with the terms of this Note Purchase Agreement, will constitute valid and
binding obligations of the Issuer entitled to the benefits of the Indenture and
enforceable against the Issuer in accordance with its terms;

 

(vi)                  Each
of the Basic Documents to which the applicable entity is a party has been duly
authorized, executed and delivered by TRC, TCC, Target and/or the Servicer, as
the case may be;

 

(vii)                 No
consent, approval, authorization or order of any governmental agency or body is
required for (A) the execution and delivery by TRC, the Issuer, TCC,
Target or the Servicer, of the Basic Documents, the Collateral Certificate or
the Note, to the extent it is a signatory or party thereto, or the performance
of its obligations thereunder, or (B) the issuance or sale of the

 

 

Note or the Collateral Certificate in
connection with the purchase of the Note by the Note Purchaser;

 

(viii)                None
of the execution and delivery of the Basic Documents, the Collateral
Certificate or the Note by TRC, the Issuer, TCC, Target and/or the Servicer, as
the case may be, or the performance by TRC, the Issuer, TCC, Target and/or the
Servicer, as the case may be, of the transactions therein contemplated to be
performed by it or the fulfillment of the terms thereof does or will result in
any violation of any statute or regulation or any order or decree of any court
or governmental authority binding upon TRC, the Issuer, TCC, Target or the
Servicer, or the property of TRC, the Issuer, TCC, Target or the Servicer, or
conflict with, or result in a breach or violation of any term or provision of,
or result in a default under any of the terms and provisions of, the charter or
by-laws (or other similar document) of TRC, the Issuer, TCC, Target or the
Servicer, or any material indenture, loan agreement or other material agreement
to which TRC, the Issuer, TCC, Target or the Servicer, is a party or by which
any of them is bound; and

 

(ix)                   There
are no proceedings or investigations pending or, to the best knowledge of such
counsel, threatened against TRC, the Issuer, TCC, Target or Target National
Bank, before any court, regulatory body, administrative agency, or other
tribunal or governmental instrumentality (A) asserting the invalidity of
any of the Basic Documents, the Collateral Certificate or the Note, (B) seeking
to prevent the issuance of the Collateral Certificate or the Note or the
consummation of any of the transactions contemplated by any of the Basic
Documents, the Collateral Certificate or the Note, (C) seeking any
determination or ruling that, in the reasonable judgment of such counsel, would
materially and adversely affect the performance by TRC of its obligations under
any of the Basic Documents, (D) seeking any determination or ruling that
would materially and adversely affect the validity or enforceability of any of
the Basic Documents, the Collateral Certificate or the Note or (E) seeking
to affect adversely the income tax attributes of the Trust under the Federal or
applicable state income or franchise tax systems.

 

(b)           You
shall have received from Skadden, Arps, Slate, Meagher & Flom LLP,
special counsel to TRC, an opinion dated the Closing Date and satisfactory in
form and substance to you and your counsel, substantially to the effect that,
in connection with the issuance of the Collateral Certificate and the Note,
neither the Trust nor the Issuer will be classified as an association or
publicly traded partnership taxable as a corporation for U.S. federal income
tax purposes.

 

(c)           You
shall have received from Skadden, Arps, Slate, Meagher & Flom LLP,
special counsel to TRC, such opinion or opinions dated the Closing Date and
satisfactory in form and substance to you and your counsel, substantially to
the effect that:

 

 

(i)                    Each
of the Pooling and Servicing Agreement and the Series Supplement
constitutes the valid and binding obligation of the Transferor, the Servicer
and the Trustee, enforceable against the Transferor, the Servicer and the
Trustee in accordance with its terms, except (x) to the extent that the
enforceability thereof may be limited by (a) bankruptcy, insolvency,
receivership, reorganization, moratorium or other similar laws now or hereafter
in effect relating to creditors’ rights generally and the rights of creditors
as the same may be applied in the event of the bankruptcy, insolvency,
receivership, reorganization, moratorium or other similar event in respect of
the Transferor, the Servicer and the Trustee, (b) general principles of
equity (regardless of whether enforceability is considered in a proceeding at
law or in equity) and (c) the qualification that certain of the remedial
provisions of the Pooling and Servicing Agreement and the Series Supplement
may be unenforceable in whole or in part, but the inclusion of such provisions
does not affect the validity of the Pooling and Servicing Agreement and the Series Supplement
taken as a whole, and the Pooling and Servicing Agreement and the Series Supplement
together with applicable law, contain adequate provisions for the practical
realization of the benefits of the security created thereby and (y) such
counsel expresses no opinion as to the enforceability of any rights to
contribution or indemnification which are violative of public policy underlying
any law, rule or regulation;

 

(ii)                   The
Bank Receivables Purchase Agreement constitutes the valid and binding
obligation of Target National Bank and TCC, enforceable against Target National
Bank and TCC in accordance with its terms, except (x) to the extent that
the enforceability thereof may be limited by (a) bankruptcy, insolvency,
receivership, conservatorship, reorganization, moratorium or other similar laws
now or hereafter in effect relating to creditors’ rights generally and the
rights of creditors as the same may be applied in the event of the bankruptcy,
insolvency, receivership, conservatorship, reorganization, moratorium or other
similar event in respect of Target National Bank or TCC and (b) general
principles of equity (regardless of whether enforceability is considered in a
proceeding at law or in equity) and (y) such counsel expresses no opinion
as to the enforceability of any rights to contribution or indemnification which
are violative of public policy underlying any law, rule or regulation;

 

(iii)                  The
Receivables Purchase Agreement constitutes the valid and binding obligation of
TCC and TRC, enforceable against TCC and TRC in accordance with its terms,
except (x) to the extent that the enforceability thereof may be limited by
(a) bankruptcy, insolvency, receivership, reorganization, moratorium or
other similar laws now or hereafter in effect relating to creditors’ rights
generally and the rights of creditors as the same may be applied in the event
of the bankruptcy, insolvency, receivership, reorganization, moratorium or
other similar event in respect of TCC and TRC and (b) general principles
of equity (regardless of whether enforceability is considered

 

 

in a proceeding at law or in equity) and (y) such
counsel expresses no opinion as to the enforceability of any rights to
contribution or indemnification which are violative of public policy underlying
any law, rule or regulation;

 

(iv)                  Each
of the Trust Agreement and the Deposit and Administration Agreement constitutes
the valid and binding obligation of TRC and the Issuer, enforceable against TRC
and the Issuer in accordance with its terms, except (x) to the extent that
the enforceability thereof may be limited by (a) bankruptcy, insolvency,
receivership, conservatorship, reorganization, moratorium or other similar laws
now or hereafter in effect relating to creditors’ rights generally and the
rights of creditors as the same may be applied in the event of the bankruptcy,
insolvency, receivership, conservatorship, reorganization, moratorium or other
similar event in respect of TRC or the Issuer and (b) general principles
of equity (regardless of whether enforceability is considered in a proceeding
at law or in equity) and (y) such counsel need express no opinion as to
the enforceability of any rights to contribution or indemnification which are
violative of public policy underlying any law, rule or regulation;

 

(v)                   The
Indenture constitutes the valid and binding obligation of the Indenture Trustee
and the Issuer, enforceable against the Indenture Trustee and the Issuer in
accordance with its terms, except (x) to the extent that the
enforceability thereof may be limited by (a) bankruptcy, insolvency,
receivership, conservatorship, reorganization, moratorium or other similar laws
now or hereafter in effect relating to creditors’ rights generally and the
rights of creditors as the same may be applied in the event of the bankruptcy,
insolvency, receivership, conservatorship, reorganization, moratorium or other
similar event in respect of the Indenture Trustee and the Issuer, (b) general
principles of equity (regardless of whether enforceability is considered in a
proceeding at law or in equity) and (c) the qualification that certain of
the remedial provisions of the Indenture may be unenforceable in whole or in
part, but the inclusion of such provisions does not affect the validity of the
Indenture taken as a whole, and the Indenture together with applicable law,
contain adequate provisions for the practical realization of the benefits of
the security created thereby and (y) such counsel need express no opinion
as to the enforceability of any rights to contribution or indemnification which
are violative of public policy underlying any law, rule or regulation;

 

(vi)                  The
Note, when executed and authenticated in accordance with the terms of the Indenture
and delivered to and paid for by the Note Purchaser pursuant to this Note
Purchase Agreement, will constitute the valid and binding obligation of the
Issuer entitled to the benefits of the Indenture and enforceable against the
Issuer in accordance with its terms under the applicable laws of the State of
Delaware;

 

 

(vii)                 The
Collateral Certificate, when executed and authenticated in accordance with the
terms of the Pooling and Servicing Agreement and the Series Supplement and
delivered to the Issuer at the direction of the Transferor in consideration of
receipt of the Note, will be entitled to the benefits of the Pooling and
Servicing Agreement and the Series Supplement under the applicable laws of
the State of Delaware;

 

(viii)                This
Note Purchase Agreement has been duly authorized, executed and delivered by TRC
and Target;

 

(ix)                   Neither
the execution, delivery or performance by each of TRC, TCC, Target National
Bank or Target of the Basic Documents to which it is a party, nor the
compliance by each of TRC, TCC, Target National Bank or Target, as the case may
be, with the terms and provisions thereof or hereof, will contravene any
provision of any applicable law;

 

(x)                    Based
on such counsel’s review of applicable laws, no governmental approval, which
has not been obtained or taken and is not in full force and effect, is required
to authorize or is required in connection with the execution, delivery or
performance by each of TRC, TCC, Target National Bank or Target, of the Basic
Documents to which it is a party;

 

(xi)                   The
Indenture will be qualified pursuant to the Trust Indenture Act of 1939, as
amended (the “Trust Indenture Act”);

 

(xii)                  Neither
the Trust nor the Issuer is required to be registered under the Investment
Company Act of 1940, as amended (the “1940 Act”); and

 

(xiii)                 Assuming
(A) the accuracy of the covenants and agreements of TRC set forth in Section 5
of this Note Purchase Agreement, (B) the accuracy of the representations,
warranties and agreements of the Note Purchaser set forth in Section 4
of this Note Purchase Agreement and (C) compliance with the terms of Section 2.3
of the Indenture, the offer and sale of the Note is not required to be
registered under the Securities Act, it being understood that such counsel does
not express any opinion as to any subsequent reoffer or resale of such Note.

 

(d)           You
shall have received from Davenport, Evans, Hurwitz & Smith LLP,
special South Dakota counsel to Target National Bank, such opinion or opinions
dated the Closing Date and satisfactory in form and substance to you and your
counsel, substantially to the effect that:

 

(i)                    The
security interest created by the Bank Receivables Purchase Agreement in the
Receivables has been perfected under Article 9 of the

 

 

Uniform Commercial Code of South Dakota by
the proper filing of UCC-1 financing statements with the appropriate filing
offices in South Dakota, and such security interest is of first priority under Article 9
of the South Dakota Uniform Commercial Code; and

 

(ii)                   The
UCC-1 financing statements have been previously filed, have not been amended or
terminated and no other filings or other actions, with respect to TCC’s
interest in the Receivables, are necessary to perfect the interest of TCC in
the Receivables, and the proceeds thereof, conveyed to TCC, except that
appropriate continuation statements must be filed in accordance with the South
Dakota Uniform Commercial Code.

 

(e)           You
shall have received from Faegre & Benson LLP, special Minnesota
counsel to the Transferor and TCC, such opinion or opinions dated the Closing
Date and satisfactory in form and substance to you and your counsel,
substantially to the effect that:

 

(i)                    Each
of the security interest created by the Receivables Purchase Agreement, the
security interest created by the Pooling and Servicing Agreement in the
Receivables and the security interest created by the Deposit and Administration
Agreement in the Collateral Certificate has been perfected under Article 9
of the Uniform Commercial Code of Minnesota by the proper filing of UCC-1 financing
statements with the appropriate filing offices in Minnesota, and each such
security interest is of first priority under Article 9 of the Minnesota
Uniform Commercial Code; and

 

(ii)                   The
UCC-1 financing statements have been previously filed, have not been amended or
terminated and (a) no other filings or other actions, with respect to TRC’s
interest in the Receivables, are necessary to perfect the interest of TRC in
the Receivables, and the proceeds thereof, conveyed to TRC thereunder and (b) no
other filings or other actions, with respect to the Trustee’s interest in the
Receivables, are necessary to perfect the interest of the Trustee in the
Receivables, and proceeds thereof, against third parties, except, in each case,
that appropriate continuation statements must be filed in accordance with the
applicable state’s requirements.

 

(f)            You
shall have received from Skadden, Arps, Slate, Meagher & Flom LLP,
special counsel to Target National Bank, TCC and TRC, such opinion or opinions
dated the Closing Date and satisfactory in form and substance to you and your
counsel, substantially to the effect that the Bank Receivables Purchase
Agreement creates in favor of TCC a security interest under Article 9 of
the Delaware Uniform Commercial Code (the “Delaware UCC”) in the rights
of Target National Bank in the Receivables, the Receivables Purchase Agreement
creates in favor of TRC a security interest under Article 9 of the
Delaware UCC in the rights of TCC in the Receivables, the Pooling and Servicing
Agreement creates in favor of the Trustee a security interest under Article 9
of

 

 

the Delaware UCC in the rights of the
Transferor in the Receivables, the Indenture together with the delivery of the
Collateral Certificate to the Indenture Trustee in the State of Delaware
creates in favor of the Indenture Trustee a security interest under Article 9
of the Delaware UCC in the rights of the Issuer in the Collateral Certificate
and the security interest of the Indenture Trustee, as secured party, will be
perfected in the Issuer’s rights in the Collateral Certificate upon the later
of the attachment of the security interest and the filing of applicable UCC-1
financing statements.

 

(g)           You
shall have received from Skadden, Arps, Slate, Meagher & Flom LLP,
special counsel to TRC, such opinion or opinions dated the Closing Date and
satisfactory in form and substance to you and your counsel, substantially to
the effect that:

 

(i)                    In
a properly presented and argued case, as a legal matter, and based upon
existing case law, in the event of the bankruptcy of TCC, the transfer of
Receivables from TCC to TRC would be treated as a “true sale” and, accordingly,
(A) Section 362(a) of title 11 of the United States Code (the “Bankruptcy
Code”) would not apply to stay payment to TRC (or its assigns) of amounts
collected on the Receivables and proceeds of sale thereof and (B) the
Receivables and proceeds of sale or collections thereof would not constitute
property of TCC’s bankruptcy estate under Section 541(a)(1) of the
Bankruptcy Code; and

 

(ii)                   If
TCC should become a debtor in a case under the Bankruptcy Code, a creditor or
trustee of TCC (or TCC as debtor in possession) would not have valid grounds to
have a court disregard the corporate form of TRC so as to cause a substantive
consolidation of the assets and liabilities of TRC with the assets and
liabilities of TCC in a manner prejudicial to the Noteholder.

 

(h)           You
shall have received from Skadden, Arps, Slate, Meagher & Flom LLP,
special counsel to Target National Bank, an opinion dated the Closing Date and
satisfactory in form and substance to you and your counsel, with respect to the
applicability of certain provisions of the Federal Deposit Insurance Act, as
amended by the Financial Institutions Reform, Recovery and Enforcement Act of
1989 with respect to the effect of receivership on TCC’s security interest in
the Receivables, and with respect to other related matters.

 

(i)            You
shall have received from Timothy J. Carlin, Assistant Vice President and Senior
Counsel or other internal legal counsel for Wells Fargo & Company, parent
of the Trustee and the Indenture Trustee, such opinion or opinions dated the
Closing Date and satisfactory in form and substance to you and your counsel,
substantially to the effect that:

 

 

(i)                    The
Trustee and the Indenture Trustee are each a national banking association duly
organized, validly existing and in good standing under the Federal laws of the
United States of America;

 

(ii)                   The
Trustee has all requisite power and authority as a national banking association
to execute and deliver, and to perform its obligations under the Pooling and
Servicing Agreement and the Series Supplement and to consummate the
transactions contemplated by the Pooling and Servicing Agreement and the Series Supplement;

 

(iii)                  The
Indenture Trustee has all requisite power and authority as a national banking
association to execute and deliver, and to perform its obligations under the
Indenture and to consummate the transactions contemplated by the Indenture;

 

(iv)                  The
Trustee’s performance of its obligations under the Pooling and Servicing
Agreement, the execution and delivery of the Series Supplement by the
Trustee and the performance of the Trustee’s obligations pursuant to the Series Supplement
do not conflict with or result in a violation of the Articles of Association or
By-Laws of the Trustee;

 

(v)                   The
execution and delivery of the Indenture by the Indenture Trustee and
performance of the Indenture Trustee’s obligations pursuant to the Indenture do
not conflict with or result in a violation of the Articles of Association or
By-Laws of the Indenture Trustee;

 

(vi)                  The
Pooling and Servicing Agreement and the Series Supplement have been duly
authorized, executed and delivered by the Trustee;

 

(vii)                 The
Indenture has been duly authorized, executed and delivered by the Indenture
Trustee;

 

(viii)                The
Collateral Certificate has been duly authenticated by the Trustee pursuant to
the Pooling and Servicing Agreement; and

 

(ix)                   The
Note has been authenticated by the Indenture Trustee pursuant to the Indenture.

 

(j)            You
shall have received a certificate, dated the Closing Date and satisfactory in
form and substance to you and your counsel, of an officer of each of TRC, TCC,
Target National Bank and Target, as applicable, in which such an officer, to
the best of his or her knowledge after reasonable investigation, shall state
that the representations and warranties of TRC and Target, as the case may be,
in this Note Purchase Agreement are true and correct, that TRC and Target have
each complied with all agreements and satisfied all conditions on its part to
be performed or satisfied 

 

 

hereunder at or prior to the Closing Date,
that no Early Amortization Event or event that would become an Early
Amortization Event after notice and the expiration of any applicable cure
period exists as of the Closing Date and that the representations and
warranties of each of TRC, TCC, Target National Bank and Target, as applicable,
in the Basic Documents are true and correct as of the dates specified therein.

 

(k)           (i)                   You
shall have received each of the items listed on Exhibit C hereto
(and not otherwise delivered pursuant to clauses (a) through (j) of
this Section 7), each of which items shall be dated the Closing Date and
in substantially the form heretofore agreed upon as of the date hereof; provided, that such forms are subject to
the further review from the Rating Agencies and/or trustees and may be revised
with the mutual consent of you and TRC (and the respective counsel thereto).

 

(ii)                   You
shall have received each of the items listed on Exhibit D hereto
(and not otherwise delivered pursuant to clauses (a) through (j) of
this Section 7), each of which items shall be dated the Closing Date and
in form and substance mutually agreed upon by you and TRC (and the respective
counsel thereto); provided, however, that if either of the Rating
Agency Conditions have not been satisfied by the Termination Date, (A) the
parties hereto shall promptly thereafter commence negotiations to amend this
Note Purchase Agreement to provide for such additional time during which the
Rating Agency Conditions may be satisfied or (B) any party hereto may
terminate this Note Purchase Agreement and no party shall have any further
liability or obligations hereunder except for any amounts due prior to the
Termination Date.

 

II.            Conditions to
Additional Purchases.  The following
shall be conditions precedent to each purchase hereunder by the Note Purchaser
of Additional Notes pursuant to subsection 17(b):

 

(a)           The
Note Purchaser shall have received notice of the date of the purchase of
Additional Notes (the “Additional Issuance Date”) and the principal
amount of such Additional Notes to be purchased on the Additional Issuance Date
pursuant to subsection 17(b);

 

(b)           (i)            If
after giving effect to the purchase of Additional Notes on the Additional
Issuance Date, the Note Principal Balance does not exceed the Note Initial
Principal Balance, no Early Amortization Event, Series 2008-1 Early
Amortization Event or Event of Default shall have occurred and be continuing;
and

 

(ii)           If
after giving effect to the purchase of Additional Notes on the Additional
Issuance Date, the Note Principal Balance shall exceed the Note Initial
Principal Balance, no Early Amortization Event, Series 2008-1 Early
Amortization Event or Event of Default, and no event that, with the giving of 

 

 

notice or the lapse of time, or both, would
constitute an Early Amortization Event, a Series 2008-1 Early Amortization
Event or an Event of Default, shall have occurred and be continuing;

 

(c)           If
after giving effect to the purchase of Additional Notes on the Additional
Issuance Date, the Note Principal Balance shall exceed the Note Initial
Principal Balance, all representations and warranties of TRC and Target (as to
itself, Target National Bank and TCC) contained herein, in the Basic Documents,
or otherwise made in writing pursuant to any of the provisions hereof shall be
true and correct in all material respects with the same force and effect as
though such representations and warranties had been made on and as of such
Additional Issuance Date (unless such representations and warranties
specifically relate to an earlier date);

 

(d)           After
giving effect to the purchase on the Additional Issuance Date of the Additional
Notes to be purchased on such date, (i) the Note Principal Balance shall
not exceed $4,200,000,000 and (ii) the Transferor Amount is at least equal
to the Required Retained Transferor Amount;

 

(e)           The
conditions precedent for increasing the principal amount of the Collateral
Certificate pursuant to Section 4.8 of the Series Supplement shall
have been satisfied and the principal amount of the Collateral Certificate
shall have been increased by an amount equal to the aggregate principal amount
of the Additional Notes proposed to be issued;

 

(f)            The
conditions precedent for the issuance of the Additional Notes pursuant to
subsection 2.2(b) of the Indenture shall have been satisfied; and

 

(g)           The
Note Purchaser shall have received a certificate, dated the Additional Issuance
Date and satisfactory in form and substance to the Note Purchaser and its
counsel, of an officer of each of TRC, TCC, Target National Bank and Target, as
applicable, certifying that the conditions described in clauses (a) through
(f) above have been satisfied.

 

For so long as
one or more of the Chase Entities holds all of the Notes, Additional Notes may
only be issued subject to subsection 17(b) and shall not be issued
to an entity that is not a Chase Entity.

 

8.  Transfer of the Note by the Note Purchaser.

 

(a)           The
Note may be sold, participated, transferred, assigned, exchanged or otherwise
pledged or conveyed by the Note Purchaser in whole or in part (a “Transfer”),
unless such Transfer would be to a retail competitor of Target.  Prior to any Transfer, the Note Purchaser
shall be required to obtain the prior written consent of TRC (which consent
shall not be unreasonably withheld, it being understood that it would be
reasonable for TRC to withhold consent if a proposed Transfer would cause the Issuer
or 

 

 

the Trust to be treated as an association (or
publicly traded partnership) taxable as a corporation) and except that such
consent shall not be required if the Transfer is to another Chase Entity.  Any such Transfer will also be subject to the
prior delivery to the Indenture Trustee of (A) an opinion of counsel to
the effect that, for U.S. federal income tax purposes, (1) such action
will not adversely affect the tax characterization as debt of the Note or the
Investor Certificates of any outstanding Series or Class that were
characterized as debt at the time of their issuance and (2) following such
action neither the Issuer nor the Trust will be treated as an association (or
publicly traded partnership) taxable as a corporation and (B) a transferee
representation letter substantially in the form of Exhibit B to the
Indenture.

 

(b)           No
Transfer of the Note shall be permitted if such Transfer would result in a
breach of the provisions regarding transfer set forth in Section 2.3 of
the Indenture.

 

(c)           In
the event that the Note Purchaser Transfers any part of the Note to another
Chase Entity, such Chase Entity will be required to execute prior to the
consummation of such Transfer a confidentiality agreement in the form
substantially agreed upon among the parties as of the date of this Note
Purchase Agreement; provided,
that if the Transfer is to Chase USA or JPMorgan Chase Bank, National
Association, this subsection 8(c) shall not apply.

 

(d)           Without
limiting the generality of the foregoing, the parties hereto acknowledge and
agree that no pledge to a Federal Reserve Bank shall require either the consent
of TRC or the delivery of an opinion of counsel and that any such pledge to a
Federal Reserve Bank shall be deemed to satisfy the requirements of this Section 8.

 

(e)           The
Noteholders shall not retain any rights under this Note Purchase Agreement if
the Note is defeased pursuant to Section 2.9 of the Indenture; provided, that

 

(i)                    the
amount to be determined by the Administrator as the Defeasance Covered Amount
shall be subject to the consent of the Note Purchaser; provided, however, that such consent shall
not be unreasonably withheld if the Issuer has provided an interest rate
guarantee or other similar agreement that in the reasonable judgment of the
Note Purchaser assures payment in full of each payment of Monthly Interest;

 

(ii)                   the
rights of the Noteholders to payments in respect of principal of and interest
on the Note when such payments are due shall survive defeasance and terminate
only upon payment in full of the Note;

 

(iii)                  the
rights of the Note Purchaser with respect to proposed amendments to a Basic
Document pursuant to Section 11.19 of the 

 

 

Indenture shall survive defeasance and
terminate only upon payment in full of the Note; and

 

(iv)                  the
rights of the Note Purchaser with respect to Sections 10 and 18
of this Note Purchase Agreement shall survive defeasance.

 

No Defeasance pursuant to Section 2.9 of
the Indenture shall occur unless the condition specified in subsection 8(e)(i) has
been satisfied.  In addition, no
Defeasance pursuant to subsection 12.4(c)(i) of the Pooling and Servicing
Agreement shall occur unless the Note Purchaser consents to the amount to be
determined by the Transferor; provided,
however, that such consent shall not be unreasonably withheld if the
Transferor has provided an interest rate guarantee or other similar agreement
that in the reasonable judgment of the Note Purchaser assures payment in full
of each payment of Monthly Interest.

 

9.  Management
of Target National Bank’s Credit Card Business.  Decisions concerning the Accounts, including
underwriting decisions, will remain with Target National Bank; provided that for so long as one or more of the Chase
Entities hold all of the Notes, if the Three-Month Average Excess Spread
Percentage is reduced to the level set forth in clause (a) or (b) below
and only for so long as it remains below such level, in which case the
following will apply:

 

(a)           If
on any Distribution Date on or after the October 2008 Distribution Date, the
Three-Month Average Excess Spread Percentage is less than 2%, the underwriting
criteria set forth in Exhibit A hereto will, at the Note Purchaser’s
option, as soon as reasonably practicable, replace Target National Bank’s
existing underwriting criteria until Target National Bank and Chase USA have
agreed on an acceptable alternative, subject to approval, to the extent
required, by Target National Bank’s regulator. 
The parties hereto may, by written mutual agreement, change the criteria
set forth in Exhibit A in order to reflect changed circumstances.

 

(b)           If
on any Distribution Date on or after the October 2008 Distribution Date,
the Three-Month Average Excess Spread Percentage is less than 1%, at the Note
Purchaser’s option, either or both of the following remedies may be triggered
within 30 days of such Distribution Date, subject to approval by Target
National Bank’s board of directors, and, to the extent required, by Target
National Bank’s regulator:

 

(i)                    Chase
USA may recommend appropriate changes, if any, to collections and recovery
policies and strategies; and

 

(ii)                   Chase
USA may recommend appropriate changes, if any, to underwriting criteria.

 

Any such recommended changes to collections and recovery policies and
strategies or underwriting criteria under either subsections 9(a) or
9(b), (A)(x) must be in effect in (1) Chase USA’s credit card
portfolio generally or (2) a segment of Chase USA’s credit card 

 

 

portfolio that is substantially comparable to an applicable segment of
the Target National Bank portfolio in terms of demographic and risk attributes
and (y) must not be impractical to implement given the infrastructure of
Target and its affiliates and (B) may not include recommendations of the
type listed on Exhibit B hereto. 
For so long as there is an Outstanding Series or Class that is
rated by a Rating Agency, such Rating Agency shall be provided notice if the
Three-Month Average Excess Spread Percentage falls below the levels set forth
in either subsections 9(a) or 9(b).

 

For purposes of this Section 9, “Excess Spread
Percentage” shall mean with respect to any Monthly Period, the sum of:

 

(1)          the percentage
equivalent of a fraction the numerator of which is the product of (A) a
fraction the numerator of which is the Floating Allocation Percentage of
Collections of Finance Charge Receivables for such Monthly Period and the
denominator of which is number of weeks in such Monthly Period and (B) the
number of weeks in the related fiscal year of the Transferor, and the
denominator of which is the Invested Amount at the end of the last day of the
preceding Monthly Period less,

 

(2)          the percentage
equivalent of a fraction the numerator of which is the product of the Investor
Defaulted Amount for such Monthly Period and 12, and the denominator of which is
the Invested Amount at the end of the last day of the preceding Monthly Period less,

 

(3)          2% (Servicing Fee) less,

 

(4)          3% (Program Fee) less.

 

(5)          the percentage
equivalent of a fraction the numerator of which is the product of (A) a
fraction the numerator of which is the Monthly Loyalty, Rewards and TCOE Fee
for such Monthly Period, and the denominator of which is the number of weeks in
such Monthly Period, and (B) the number of weeks in the related fiscal
year of the Transferor, and the denominator of which is the Invested Amount at
end of last day of preceding Monthly Period less,

 

(6)          the Interest Rate for
the related Interest Accrual Period,

 

provided that the
first Monthly Period to be used to calculate the Excess Spread Percentage shall
be the July 2008 Monthly Period.

 

 

For purposes of this Section 9, “Three-Month Average
Excess Spread Percentage” shall mean, with respect to each Distribution
Date on and after the October 2008 Distribution Date, the percentage
equivalent of a fraction, the numerator of which is the sum of the Excess
Spread Percentages with respect to the three immediately preceding Monthly
Periods and the denominator of which is three.

 

(c)           If,
within 60 days of receiving the recommendations provided pursuant to clause (b) above,
Target National Bank does not implement (or, for a change that could be
reasonably expected to take longer than 60 days to implement, take and continue
to proceed with commercially reasonable steps to implement) in all material
respects the changes recommended by Chase USA, a Note Purchase Agreement Early
Amortization Event will be deemed to have occurred.

 

Target National Bank will have exclusive authority to market its credit
card business at its expense and will retain the exclusive right to communicate
with cardholders for so long as it remains the Servicer.

 

Meetings between Target, Target National Bank and Chase USA may be
scheduled on an ad hoc basis and any information
exchanged at such meetings shall be subject to the mutually agreed upon
confidentiality provisions and such additional confidentiality provisions as
the discloser of the information reasonably determines to be appropriate.

 

The rights described in this Section 9 are exclusive to the
Note Purchaser, or, following a Transfer, any other Chase Entity to whom any
part of the Note is transferred upon satisfaction of the requirements in Section 8
and Section 2.3 of the Indenture, and are non-transferable by such
entities to any other entity.  Such
rights will expire upon the Transfer of any part of the Note to any other
entity.

 

10.  Survival
of Certain Representations and Obligations. 
The respective agreements, representations, warranties and other
statements of TRC and Target and their respective officers and of the Note
Purchaser and Chase USA set forth in or made pursuant to this Note Purchase
Agreement will remain in full force and effect, regardless of any
investigation, or statement as to the results thereof, made by or on behalf of
the Note Purchaser, Chase USA, TRC, Target or any of their respective
representatives, officers or directors or any controlling person, and will
survive delivery of and payment for the Note.

 

11.  Notices.  All communications hereunder will be in
writing and will be mailed, sent by facsimile or delivered and confirmed (or
such other means of communication as agreed upon by the parties hereto) to the
following (or to such other address as may be hereafter notified by the
respective parties hereto):

 

 

(a)           Note
Purchaser:

 

BOTAC, Inc.

c/o Chase Bank USA, National Association

201 N. Walnut Street

Wilmington, Delaware 19801

Attention: Keith W. Schuck, President

(facsimile no. (302) 282-7634)

 

(b)           Chase
USA:

 

Chase Bank USA, National Association

201 N. Walnut Street

Wilmington, Delaware 19801

Attention: Keith W. Schuck, President

(facsimile no. (302) 282-7634)

 

(c)           TRC:

 

Target Receivables Corporation

1000 Nicollet Mall, TPS 3136

Minneapolis, Minnesota 55403

Attention: General Counsel

(facsimile no. (612) 696-6909)

 

(d)           Target:

 

Target Corporation

1000 Nicollet Mall

Minneapolis, Minnesota 55403

Attention: Treasurer

(facsimile no. (612) 761-5573)

 

If notice is
required to be provided to the Rating Agencies:

 

(e)           Moody’s:

 

Moody’s Investors Service, Inc.

7 World Trade Center

250 Greenwich Street

New York, New York 10007

Attention: ABS Monitoring Group

(facsimile no. (212) 298-6664)

 

 

(f)            Standard
& Poor’s:

 

Standard & Poor’s Ratings Services
      a Division of The McGraw-Hill
Companies, Inc.

55 Water Street

New York, New York 10041

Attention: Asset Backed Surveillance Department

(facsimile no. (212) 438-2648)

 

12.  Successors.  This Note Purchase Agreement will inure to
the benefit of and be binding upon the parties hereto and their respective
successors and assignees (excluding any assignee other than an assignee who is
a Chase Entity, Target or a wholly-owned direct or indirect subsidiary of
Target) and no other person will have any right or obligation hereunder; provided, however, that no assignment
shall release or otherwise reduce the obligations of any party.

 

13.  Counterparts.  This Note Purchase Agreement may be executed
in any number of counterparts, each of which shall be deemed to be an original
but all such counterparts shall together constitute one and the same Note
Purchase Agreement.

 

14.  Applicable
Law; Jurisdiction.  THIS NOTE PURCHASE AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAWS PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

THE PARTIES HERETO
HEREBY SUBMIT TO THE NONEXCLUSIVE JURISDICTION OF THE FEDERAL AND STATE COURTS
IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK IN ANY SUIT OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS NOTE PURCHASE AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY.

 

15.  Amendments
or Waivers.  No amendment or waiver
of any provision of this Note Purchase Agreement, nor any consent or approval to
any departure therefrom, shall in any event be effective unless the same shall
be in writing and signed by the parties hereto. 
Any waiver or consent shall be effective only in the specific instance
and for the specific purpose for which it is given.  For so long as there is an Outstanding Series or
Class that is rated by a Rating Agency, such Rating Agency shall be
provided notice of any amendment or waiver of any provision of this Note
Purchase Agreement.

 

16.  Arm’s-Length
Transaction.  Each of TRC and Target
acknowledge and agree that each of the Note Purchaser and Chase USA is acting
solely in the capacity of an arm’s length contractual counterparty to each of
TRC and Target with respect to the purchase of the Note contemplated hereby
(including in connection with determining the terms of the sale and purchase)
and not as a financial advisor or a fiduciary to, or an agent of, either TRC or
Target or

 

 

any other
person.  Additionally, neither the Note
Purchaser nor Chase USA is advising TRC, 
Target or any other person as to any legal, tax, investment, accounting
or regulatory matters in any jurisdiction. 
TRC and Target shall each consult with its own advisors concerning such
matters and shall be responsible for making their own independent investigation
and appraisal of the transactions contemplated hereby, and neither the Note
Purchaser nor Chase USA shall have any responsibility or liability to either
TRC or Target with respect thereto. Any review by either the Note Purchaser or
Chase USA of TRC, Target, the transactions contemplated hereby or other matters
relating to such transactions will be performed solely for the benefit of the
Note Purchaser or Chase USA, as the case may be, and shall not be on behalf of
TRC or Target.

 

17.  Repurchase
Obligations.  Prior to the
Amortization Period Commencement Date and only for so long as one or more of
the Chase Entities hold all of the Notes:

 

(a)           On
each Determination Date beginning with the Determination Date related to the
October 2008 Monthly Period, the Servicer shall calculate the Cap Test
Percentage for the related Monthly Period. 
The “Cap Test Percentage” for any Monthly Period is the
percentage equivalent of a fraction, the numerator of which is the Invested
Amount of the Collateral Certificate and the denominator of which is the
aggregate amount of Principal Receivables in the Trust plus amounts on deposit in the Special
Funding Account, in each case as of the last day of such Monthly Period.  If, as determined on any Determination Date
beginning with the Determination Date relating to the December 2008 Monthly
Period, the Cap Test Percentage is equal to or greater than the Cap Trigger for
three (3) immediately preceding Monthly Periods, TRC agrees to purchase on the
Distribution Date related to such Determination Date, a portion of the Note
Principal Balance sufficient to reduce the Cap Test Percentage as of the prior
Monthly Period to a level that is one one-hundredth percentage point (0.01%)
less than the Cap Trigger (the “Transferor Note Repurchase”); provided, that the maximum Transferor Note
Repurchase for a given Distribution Date shall not exceed the Available Series
2008-1 Principal Collections for the related Monthly Period; provided, further,
that no such purchase shall be required if, after TRC provides notice on the
Determination Date of the amount of the Transferor Note Repurchase proposed to
take place on the related Distribution Date, the Note Purchaser, in its sole
discretion, provides written notice by the Business Day after such Determination
Date that the Transferor Note Repurchase shall be waived.  If a removal pursuant to Section 2.10 of the
Pooling and Servicing Agreement shall cause the Cap Test Percentage to exceed
the Cap Trigger as of the last day of the Monthly Period in which such Removal
Date occurred, TRC agrees to a Transferor Note Repurchase on the Distribution
Date in the next Monthly Period.  For
purposes of this Section 17, “Cap Trigger” shall mean 47.00%.  The purchase price for the Transferor Note
Repurchase shall be the Accreted Note Value (as defined below).  Failure on the part of TRC duly to effect the
Transferor Note Repurchase set forth in this subsection 17(a), which
failure has a material adverse effect on the Note Purchaser and which continues unremedied through the Distribution Date
in the Monthly Period following the Monthly Period containing the Determination
Date on which the Transferor

 

 

Note Repurchase obligation arose, shall
constitute a Note Purchase Agreement Early Amortization Event.

 

(b)           On
each Determination Date beginning with the Determination Date related to the January 2009
Monthly Period, if the Cap Test Percentage is less than the Cap Trigger as of
the end of the related Monthly Period, the Transferor at its option may request
on such Determination Date that the Note Purchaser purchase Additional Notes on
the following Distribution Date sufficient to maintain the Cap Test Percentage
at a level that is one one-hundredth percentage point (0.01%) less than the Cap
Trigger as of the end of the related Monthly Period (the “Note Purchaser
Note Repurchase”).  The Note
Purchaser will be obligated to purchase Additional Notes only to the extent
that such purchase would not cause the amount of Notes held by the Note
Purchaser to exceed $4,200,000,000; provided,
that Chase USA shall be obligated to purchase, or cause to be purchased, any
Additional Notes that are not purchased by the Note Purchaser pursuant to this subsection
17(b).  The obligation of the Note
Purchaser to effect the Note Purchaser Note Repurchase is subject to the
satisfaction of the conditions set forth in subsection 7(II) of
this Note Purchase Agreement, Section 4.8 of the Series Supplement
and subsection 2.2(b) of the Indenture. 
The purchase price for the Additional Notes shall be the Accreted Note
Value.

 

(c)           “Accreted
Note Value” shall mean the product of (i) the Principal Balance of the
Transferor Note Repurchase or the Additional Notes and (ii) one (1) minus the Adjustment Percentage for the
related Distribution Date.

 

18.  Further
Instruments and Acts.  Each of TRC,
Target, the Note Purchaser and Chase USA will execute and deliver such further
instruments and do such further acts as may be reasonably necessary or proper
to carry out more effectively the purpose of this Note Purchase Agreement.

 

19.  Action on Behalf of Note Purchaser.  The parties hereto agree that to the extent
an action is required or permitted to be taken under this Note Purchase
Agreement by the Note Purchaser such action may be taken by a Chase Entity on
its behalf.

 

20.  Agreement of TRC as to Removal of Accounts.  For so long as all of the Notes are held by
one or more of the Chase Entities, in addition to any conditions pursuant to Section 2.10
of the Pooling and Servicing Agreement, TRC shall provide the relevant Chase
Entity:

 

(a)           on
or prior to the thirtieth (30th) day immediately preceding the
Removal Date, written notice of such removal; and

 

 

(b)           concurrently
with delivery thereof to the Rating Agencies, information about the Removed
Accounts that is identical to that provided to the Rating Agencies.

 

[REMAINDER OF THE PAGE BLANK]

 

 

If the foregoing is in accordance with the
Note Purchaser’s and Chase USA’s understanding of our agreement, kindly sign
and return to TRC and Target one of the counterparts hereof, whereupon it will
become a binding agreement between TRC, Target, the Note Purchaser and Chase
USA in accordance with its terms.

 

	
   

  	
  Very truly yours,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TARGET RECEIVABLES CORPORATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Douglas
  A. Scovanner

  	
   

  
	
   

  	
   

  	
  Name:
  Douglas A. Scovanner

  	
   

  
	
   

  	
   

  	
  Title:   President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  TARGET CORPORATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Douglas
  A. Scovanner

  	
   

  
	
   

  	
   

  	
  Name:
  Douglas A. Scovanner

  	
   

  
	
   

  	
   

  	
  Title:   Executive Vice President and Chief
  Financial Officer

  	
   

  

 

 

	
  BOTAC, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
  /s/ David A.
  Penkrot

  	
   

  
	
   

  	
  Name: David
  A. Penkrot

  	
   

  
	
   

  	
  Title:   Vice President, Director

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  CHASE BANK USA,
  NATIONAL ASSOCIATION

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
  /s/ Keith
  Schuck

  	
   

  
	
   

  	
  Name: Keith
  Schuck

  	
   

  
	
   

  	
  Title:   President

  	
   

  

 

 

Note Purchase Agreement

 

 

Exhibit A

 

UNDERWRITING CRITERIA PURSUANT TO SUBSECTION 9(a)

 

[*]

 

 

 

 

 

 

 

 

 

 

* Material has been omitted pursuant to
a request for confidential treatment and such material has been filed separately
with the Securities and Exchange Commission.

 

 

Exhibit B

 

RECOMMENDATIONS EXCLUDED

 

[*]

 

 

 

 

 

 

 

 

 

 

* Material has been omitted pursuant to
a request for confidential treatment and such material has been filed
separately with the Securities and Exchange Commission.

 

 

Exhibit C

 

	
   

  	
  I.  2008-1
  DOCUMENTS

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.

  	
   

  	
  Series 2008-1
  Supplement to the Pooling and Servicing Agreement, dated as of the Closing
  Date, by and among the Transferor, the Servicer and the Trustee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.

  	
   

  	
  Indenture, dated as of the Closing Date, by
  and between Target Credit Card Owner Trust 2008-1, as Issuer and Wells Fargo
  Bank, National Association, as Indenture Trustee

  

 

 

Exhibit D

 

	
   

  	
  I.  2008-1
  DOCUMENTS

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.

  	
   

  	
  Deposit and Administration Agreement, dated
  as of the Closing Date, by and between TRC, as Depositor and Administrator
  and the Issuer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.

  	
   

  	
  Amended and Restated Trust Agreement, dated
  as of the Closing Date, by and between TRC, as Depositor, and the Owner
  Trustee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  II.  SECURITIES

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.

  	
   

  	
  Specimen of the Notes

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.

  	
   

  	
  Specimen of Collateral Certificate

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.

  	
   

  	
  Transferor Certificate (R-8) and Cancelled
  Transferor Certificate (R-7)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  III.  CORPORATE CERTIFICATES

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A.  Target Corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.

  	
   

  	
  Secretary’s Certificate, re: incumbency,
  dated as of the Closing Date, with attached Articles of Incorporation,
  By-laws and Resolutions

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.

  	
   

  	
  Good Standing Certificate from the Secretary of State of Minnesota

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.

  	
   

  	
  Bring-down Letter, dated as of the Closing
  Date, from the Secretary of State of Minnesota

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.  Target National
  Bank (Servicer)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.

  	
   

  	
  Secretary’s Certificate, re: incumbency,
  dated as of the Closing Date, with attached Articles of Association, By-laws
  and Loan Securitization Committee Resolutions

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.

  	
   

  	
  Certificate of Corporate Existence from the
  Comptroller of the Currency

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.

  	
   

  	
  Certificate from the Federal Deposit
  Insurance Corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  C.  Target
  Capital Corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.

  	
   

  	
  Secretary’s Certificate, re: incumbency,
  dated as of the Closing Date, with attached Articles of Incorporation,
  By-laws and Resolutions

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.

  	
   

  	
  Good Standing Certificate from the Secretary
  of State of Minnesota

  

 

 

	
   

  	
  14.

  	
   

  	
  Bring-down Letter, dated as of the Closing
  Date, from the Secretary of State of Minnesota

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  D.  Target
  Receivables Corporation (Transferor)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  15.

  	
   

  	
  Secretary’s Certificate, re: incumbency,
  dated as of the Closing Date, with attached Articles of Incorporation,
  By-laws and Resolutions

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.

  	
   

  	
  Good Standing Certificate from the Secretary
  of State of Minnesota

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  17.

  	
   

  	
  Bring-down Letter, dated as of the Closing
  Date, from the Secretary of State of Minnesota

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  E.  Wells
  Fargo Bank, National Association (Indenture Trustee/Master Trust Trustee)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  18.

  	
   

  	
  Certified Copy of General Signature Resolution
  Relating to Execution of Written Instruments

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  19.

  	
   

  	
  Certificate of Corporate Existence from the
  Comptroller of the Currency

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  F.  Target
  Credit Card Owner Trust 2008-1 (Owner Trust)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  20.

  	
   

  	
  Certificate of Trust

  
	
   

  	
   

  	
   

  	
  Trust Agreement, between TRC, as Depositor,
  and the Owner Trustee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  21.

  	
   

  	
  Owner Certificate Relating to Owner Trust

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  22.

  	
   

  	
  Good Standing Certificate, dated as of the
  Closing Date, from the Secretary of State of Delaware

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  G. 
  Wilmington Trust Company (Owner Trustee)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  23.

  	
   

  	
  Officer’s
  Certificate, re: incumbency, dated as of the Closing Date, with attached Articles of Incorporation, By-laws
  and Resolutions

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  24.

  	
   

  	
  Good
  Standing Certificate, dated as of the Closing Date, from the Secretary of
  State of Delaware

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  IV. 
  OFFICER CERTIFICATES

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A.  Target National
  Bank (Servicer)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  25.

  	
   

  	
  Officer’s Certificate, as to creation of a
  valid security interest under Bank Receivables Purchase Agreement

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  26.

  	
   

  	
  Officer’s Certificate, re: establishment of
  accounts

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.  Target
  Receivables Corporation (Transferor)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  27.

  	
   

  	
  Officer’s Certificate, re: subsections
  6.3(b)(v), (vii) of the Pooling and Servicing Agreement

  

 

 

	
   

  	
  28.

  	
   

  	
  Exchange Notice, re: subsection
  6.3(b)(i) of the Pooling and Servicing Agreement

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  29.

  	
   

  	
  Authentication Order, re: Notes, Collateral
  Certificate and Beneficial Interests in the Owner Trust

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  30.

  	
   

  	
  Cross-Receipt, signed by the Transferor and
  Chase USA, regarding delivery of the Notes

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  C.  Wells
  Fargo Bank, National Association (Indenture Trustee/Master Trust Trustee)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  31.

  	
   

  	
  Officer’s Certificate (Indenture
  Trustee/Master Trust Trustee), re: no knowledge of liens or material
  litigation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  32.

  	
   

  	
  Receipt of Collateral Certificate

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  D. 
  Wilmington Trust Company (Owner Trustee)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  33.

  	
   

  	
  Officer’s Certificate, re: no knowledge of
  liens or material litigation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  34.

  	
   

  	
  Power of Attorney, re: Deposit and
  Administration Agreement

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  35.

  	
   

  	
  Receipt of Collateral Certificate

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  F.  Chase
  USA (Note Purchaser) 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  36.

  	
   

  	
  Cross-Receipt, signed by the
  Transferor and Chase USA, regarding delivery of the Notes

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  V.  UCC
  DOCUMENTS

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  37.

  	
   

  	
  UCC Search Reports for TCC and TRC in
  Minnesota, Target National Bank in South Dakota and the Owner Trust in
  Delaware

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  38.

  	
   

  	
  UCC-1 (re: Collateral Certificate)

  
	
   

  	
   

  	
   

  	
  a. 
  Minnesota: TRC à Owner Trust

  
	
   

  	
   

  	
   

  	
  b. 
  Delaware:  Owner Trust/ee à Indenture Trustee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  VI. 
  OPINIONS

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A. 
  Target Corporation, Target National Bank, TCC, TRC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  39.

  	
   

  	
  Corporate Matters

  

 

 

	
   

  	
  B. 
  Skadden, Arps, Slate, Meagher & Flom LLP

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  40.

  	
   

  	
  Corporate Matters

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  41.

  	
   

  	
  FDIC Matters

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  42.

  	
   

  	
  True Sale

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  43.

  	
   

  	
  Nonconsolidation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  44.

  	
   

  	
  Security Interest (Delaware)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  45.

  	
   

  	
  Federal Tax Issues

  
	
   

  	
   

  	
   

  	
  Officer’s Certificate

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  C. 
  Davenport, Evans, Hurwitz & Smith LLP

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  46.

  	
   

  	
  Security Interest (South Dakota)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  47.

  	
   

  	
  Tax (South Dakota)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  D. 
  Faegre & Benson LLP

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  48.

  	
   

  	
  Security Interest (Minnesota)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  49.

  	
   

  	
  Tax (Minnesota)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  E.  Wells
  Fargo Bank, National Association

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  50.

  	
   

  	
  Corporate
  Matters (re: Master
  Trust Trustee/Indenture Trustee)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  F. 
  Richards, Layton & Finger, P.A.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  51.

  	
   

  	
  Corporate Matters (re: Owner Trustee)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  52.

  	
   

  	
  Corporate Matters (re: Owner Trust)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  VII. 
  MISCELLANEOUS DOCUMENTS

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  53.

  	
   

  	
  S&P Ratings Letter

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  54.

  	
   

  	
  Moody’s Ratings Letter

  

 

 

Schedule I

 

INFORMATION PREVIOUSLY PROVIDED TO NOTE
PURCHASER PURSUANT TO SUBSECTION 2(h)

 

·      Master
file account level data provided for Monthly Periods from August 2005
through December 2007, provided,
that, such master file account
level data excludes August 2006 and September 2006.

 

·      Materials
titled “Chase Due Diligence Meeting Risk and Collections Review” prepared by
Target Financial Services; Minneapolis, MN dated January 2, 2008, as
revised on May 2, 2008.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]