Document:

Exhibit

10.4

 

COMMON STOCK PURCHASE WARRANT

 

THESE SECURITIES HAVE NOT

BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “SECURITIES ACT”) OR

UNDER APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR

OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND ANY

APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AVAILABLE EXEMPTIONS FROM SUCH

REGISTRATION, PROVIDED THAT THE SELLER DELIVERS TO THE COMPANY AN OPINION OF

COUNSEL (WHICH OPINION IS REASONABLY SATISFACTORY TO THE COMPANY) CONFIRMING

THE AVAILABILITY OF SUCH EXEMPTION.

 

Dated:

June          , 2003

 

No. AXE-                                              AXONYX

INC.

 

WARRANT TO PURCHASE

               

SHARES OF COMMON STOCK

 

THIS CERTIFIES THAT, for

value received,                

(the “Holder”) is entitled to subscribe for and purchase                

shares (as adjusted pursuant to Section 4 hereof) of the fully paid and

nonassessable Common Stock, par value $0.001 per share (the “Shares”), of

Axonyx Inc., a Nevada corporation (the “Company”), at the price of $5.00 per

share (the “Exercise Price”) (as adjusted pursuant to Section 4 hereof), upon

the terms and subject to the conditions hereinafter set forth.

 

1.                                       Method

of Exercise; Payment.

 

(a)                                  Cash

Exercise. The purchase rights represented by this Warrant may be exercised

by the Holder, in whole or in part, at any time or from time to time, by the

surrender of this Warrant (with the notice of exercise form attached hereto as Exhibit

A duly executed) at the principal office of the Company, and by the payment to

the Company, by certified, cashier’s or other check acceptable to the Company,

of an amount equal to the aggregate Exercise Price of the shares being

purchased.

 

(b)                                 Fair

Market Value.  For purposes of

Section 6 hereof, the fair market value of the Company’s Common Stock shall

mean:

 

(i)                                     if

the Company’s Common Stock is traded on a securities exchange, the average of

the closing price each day over the thirty consecutive day period ending three

(3) days before the date on which the fair market value of the securities is

being determined;

 

(ii)                                  if

the Company’s Common Stock is actively traded over-the counter, the average of

the closing bid and asked prices quoted on the Nasdaq system (or similar

system) each day over the thirty consecutive day period ending three (3) days

before the date on which the fair market value of the securities is being

determined; or

 

 

(iii)                               if

at any time the Company’s Common Stock is not listed on any securities exchange

or quoted in the Nasdaq System or the over-the-counter market, then as

determined by the board of directors of the Company in good faith.

 

(c)                                  Stock

Certificates.  This Warrant shall be

deemed to have been exercised immediately prior to the close of business on the

date of its surrender for exercise as provided above, and the person entitled

to receive the Shares issuable upon such exercise shall be treated for all

purposes as the holder of record of such Shares as of the close of business on

such date. As soon as practicable, but in any event no later than five (5) days

after such date, the Company shall issue and deliver to the person or persons

entitled to receive the same a certificate or certificates for the number of

whole Shares issuable upon such exercise. 

Unless this Warrant has been fully exercised or has expired, a new

Warrant representing the Shares with respect to which this Warrant shall not

have been exercised shall also be issued to the Holder within such time.

 

2.                                       Call

Provision.  Notwithstanding the

foregoing Section 1, the Company shall have the right (the “Call Right”),

except as may be limited by law or other agreements, to require the exercise of

this Warrant, in whole or in part, by providing written notice (the “Call

Notice”) thereof to the registered Holder hereof, if the average closing price

for the Company’s Common Stock, as quoted by the Nasdaq SmallCap Market or any

other established over-the-counter quotation service, is equal to or greater

than $8.00 per share, as adjusted pursuant to Section 4 hereof, for any period

of twenty (20) consecutive days.  Within

thirty (30) days following the date of the Call Notice, the Holder hereof may,

in its sole discretion, exercise this Warrant in accordance with Section 1 as

to the number of shares against which the Company shall have exercised the Call

Right.  If such exercise has not been

made within such period, this Warrant (or applicable portion hereof) shall

expire and cease to be exercisable, as to the number of shares against which

the Company shall have exercised the Call Right, at 11:59 p.m. Eastern Standard

Time, on the thirtieth day after the date of mailing of the Call Notice.  Notwithstanding the foregoing, the Company

may not exercise its rights pursuant to this Section 2 unless and until there

is, at the time of such Call Notice and exercise of this Warrant, an effective

registration statement covering the sale of the Shares issuable upon exercise

of this Warrant.

 

3.                                       Stock

Fully Paid; Reservation of Shares. 

All of the Shares issuable upon the exercise of the rights represented

by this Warrant will, upon issuance and receipt of the Exercise Price therefor,

be fully paid and nonassessable, and free from all preemptive rights, taxes,

liens , and charges with respect to the issue thereof.  During the period within which the rights

represented by this Warrant may be exercised, the Company shall at all times

have authorized and reserved for issuance upon exercise of the rights evidenced

by this Warrant, sufficient shares of its Common Stock to provide for the

exercise of the rights represented by this Warrant.

 

4.                                       Adjustment

of Exercise Price and Number of Shares. 

Subject to the provisions of Section 13 hereof, the number and kind of

securities purchasable upon the exercise of this Warrant and the Exercise Price

therefor shall be subject to adjustment from time to time upon the occurrence

of certain events, as follows:

 

(a)                                  Stock

Splits, Dividends and Combinations. 

In the event that the Company shall at any time subdivide the

outstanding shares of Common Stock or shall issue a stock dividend on its outstanding

shares of Common Stock the number of Shares issuable upon exercise of this

 

2

 

Warrant immediately prior

to such subdivision or to the issuance of such stock dividend shall be

proportionately increased, and the Exercise Price shall be proportionately

decreased, and in the event that the Company shall at any time combine the

outstanding shares of Common Stock the number of Shares issuable upon exercise

of this Warrant immediately prior to such combination shall be proportionately

decreased, and the Exercise Price shall be proportionately increased, effective

at the close of business on the date of such subdivision, stock dividend or

combination, as the case may be.

 

(b)                                 Reclassification,

Consolidation or Merger.  In case of

any reclassification or change of the Common Stock (other than a change in par

value, or as a result of a subdivision or combination), or in case of any

consolidation or merger of the Company with or into another corporation (other

than a merger with another corporation in which the Company is a continuing

corporation and which does not result in any reclassification or change of

outstanding securities issuable upon exercise of this Warrant), or in case of

any sale of all or substantially all of the assets of the Company, the Company

or such successor or purchasing corporation, as the case may be, shall execute

a new Warrant, providing that the holder of this Warrant shall have the right

to exercise such new Warrant, and procure upon such exercise and payment of the

same aggregate Exercise Price, in lieu of the shares of Common Stock

theretofore issuable upon exercise of this Warrant, the kind and amount of

shares of stock, other securities, money and property receivable upon such

reclassification, change, consolidation, sale of all or substantially, all of

the Company’s assets or merger by a holder of an equivalent number of shares of

Common Stock. Such new Warrant shall provide for adjustments which shall be as

nearly equivalent as may be practicable to the adjustments provided for in this

Section 4. The provisions of this Section 4(a), subject to Section 13 hereof,

shall similarly apply to successive reclassifications, changes, consolidations,

mergers, transfers and the sale of all or substantially all of the Company’s

assets.

 

5.                                       Notice

of Adjustments.  Whenever the number

of Shares purchasable hereunder or the Exercise Price thereof shall be adjusted

pursuant to Section 4 hereof, the Company shall provide notice by first class mail

to the holder of this Warrant setting forth, in reasonable detail, the event

requiring the adjustment, the amount of the adjustment, the method by which

such adjustment was calculated, and the number of Shares which may be purchased

and the Exercise Price therefor after giving effect to such adjustment.

 

6.                                       Fractional

Shares.  No fractional shares of

Common Stock will be issued in connection with any exercise hereunder.  In lieu of such fractional shares, the

Company shall make a cash payment therefor based upon the Fair Market Value of

one share of Common Stock of the Company on the date of such exercise.

 

7.                                       Representations

of the Company.  The Company

represents that all corporate actions on the part of the Company, its officers,

directors and stockholders necessary for the sale and issuance of the Shares

pursuant hereto and the performance of the Company’s obligations hereunder were

taken prior to and are effective as of the effective date of this Warrant.

 

8.                                       Representations

and Warranties by the Holder.  The

Holder represents and warrants to the Company as follows:

 

3

 

(a)                                  This

Warrant and the Shares issuable upon exercise thereof are being acquired for

its own account, for investment and not with a view to, or for resale in

connection with, any distribution or public offering thereof within the meaning

of the Securities Act of 1933, as amended (the “Act”).  Upon exercise of this Warrant, the Holder

shall, if so requested by the Company, confirm in writing, in a form

satisfactory to the Company, that the securities issuable upon exercise of this

Warrant are being acquired for investment and not with a view toward

distribution or resale in violation of the Securities Act.

 

(b)                                 The

Holder understands that the Warrant and the Shares have not been registered

under the Act by reason of their issuance in a transaction exempt from the

registration and prospectus delivery requirements of the Act pursuant to

Section 4(2) thereof, and that they must be held by the Holder indefinitely,

and that the Holder must therefore bear the economic risk of such investment

indefinitely, unless a subsequent disposition thereof is registered under, the

Act or is exempted from such registration.

 

(c)                                  The

Holder has such knowledge and experience in financial and business matters that

it is capable of evaluating the merits and risks of the purchase of this

Warrant and the Shares purchasable pursuant to the terms of this Warrant and of

protecting its interests in connection therewith.

 

(d)                                 The

Holder is able to bear the economic risk of the purchase of the Shares pursuant

to the terms of this Warrant.

 

9.    Restrictive Legend.

 

The Shares issuable upon

exercise of this Warrant (unless registered under the Act) shall be stamped or

imprinted with a legend in the following form:

 

THESE SECURITIES HAVE NOT

BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “SECURITIES ACT”) OR

UNDER APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR

OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND ANY

APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AVAILABLE EXEMPTIONS FROM SUCH

REGISTRATION, PROVIDED THAT THE SELLER DELIVERS TO THE COMPANY AN OPINION OF

COUNSEL (WHICH OPINION IS REASONABLY SATISFACTORY TO THE COMPANY) CONFIRMING

THE AVAILABILITY OF SUCH EXEMPTION.

 

10.   Restrictions Upon Transfer and

Removal of Legend.

 

(a)          The Company need not

register a transfer of Shares bearing the restrictive legend set forth in

Section 9 hereof, unless the conditions specified in such legend are

satisfied.  The Company may also

instruct its transfer agent not to register the transfer of the Shares, unless

one of the conditions specified in the legend referred to in Section 9 hereof

is satisfied.

 

(b)         Notwithstanding the

provisions of Section 9(a) above, no opinion of counsel or “no-action” letter

shall be necessary for a transfer without consideration by any holder (i) to an

 

4

 

affiliate of the holder,

(ii) if such holder is a partnership, to a partner or retired partner of such

partnership who retires after the date hereof or to the estate of any such

partner or retired partner, (iii) if such holder is a corporation, to a

stockholder of such corporation, or to any other corporation under common

control, direct or indirect, with such holder, (iv) if such holder is a limited

liability company, to a member or retired member of such limited liability

company who retires after the date hereof or to the estate of any such member

or retired member, or (v) by gift, will or intestate succession of any

individual holder to his spouse or siblings, or to the lineal descendants or

ancestors of such holder or his spouse, if the transferee agrees in writing to

be subject to the terms hereof to the same extent as if such transferee were

the original holder hereunder.

 

11.                                 Rights

of Stockholders.  No holder of this

Warrant shall be entitled, as a Warrant holder, to vote or receive dividends or

be deemed the holder of Common Stock or any other securities of the Company

which may at any time be issuable on the exercise hereof for any purpose, nor

shall anything contained herein be construed to confer upon the holder of this

Warrant, as such, any of the rights of a stockholder of the Company or any right

to vote for the election of directors or upon any matter submitted to

stockholders at any meeting thereof, or to give or withhold consent to any

corporate action (whether upon any recapitalization, issuance of stock,

reclassification of stock, change of par value, consolidation, merger,

conveyance, or otherwise) or to receive notice of meetings, or to receive

dividends or subscription rights or otherwise until the Warrant shall have been

exercised and the Shares purchasable upon the exercise hereof shall have become

deliverable, as provided herein.

 

12.                                 Registration

Rights.

 

(a)                                  Registrable

Shares.  The Shares issuable upon

exercise of this Warrant shall be “Registrable Shares” for the purposes of this

Warrant, provided

that such Shares shall not be Registrable Shares if the Holder (i) is able to

sell such Shares pursuant to an effective registration statement under the

Securities Act or (ii) is able to sell under Rule 144(k) under the Securities

Act all of the remaining Shares issued or issuable to such Holder.

 

(b)                                 Company

Registration.  Subject to Section

12(e), if the Company proposes to register any shares of its common stock under

the Securities Act (other than a registration (A) on Form S-8 or S-4 or any

successor or similar form, (B) relating to common stock issuable upon exercise

of employee shares options or in connection with any employee benefit or

similar plan of the Company, or (C) in connection with a public offering

involving an underwriter), it will at such time, give prompt written notice at least

twenty (20) days prior to the anticipated filing date of the registration

statement (a “Registration Statement”) relating to such registration to the

Holder, which notice shall set forth the Holder’s rights under this Section

12(b) and shall offer the Holder the opportunity to include in such

registration statement such number of Registrable Shares as the Holder may

request.  Upon the written request of

the Holder made within ten (10) days after the receipt of notice from the

Company (which request shall specify the number of Registrable Shares intended

to be disposed of by the Holder), the Company will use its commercially

reasonable efforts to effect the registration under the Securities Act of all

Registrable Shares that the Company has been so requested to register by the

Holder, to the extent necessary to permit the disposition of the Registrable

Shares to be so registered, provided that the Holder agrees to sell

those of its Registrable Shares to be included in such registration in the same

manner and on

 

5

 

the same terms and

conditions as the other shares of common stock which the Company proposes to

register.

 

(c)                                  Covenants

of the Company With Respect to Registration. 

The Company covenants and agrees as follows:

 

(i)                                     Following

the effective date of the Registration Statement under Section 12(b), the

Company shall, upon the request of the Holder, forthwith supply such reasonable

number of copies of the Registration Statement, preliminary prospectus and

prospectus meeting the requirements of the Securities Act, and other documents

necessary or incidental to the public offering of the Registrable Shares, as

shall be reasonably requested by the Holder to permit the Holder to make a

public distribution of the Registrable Shares registered in connection with the

Registration Statement.

 

(ii)                                  The

Company shall prepare and file with the Securities and Exchange Commission such

amendments and supplements to such Registration Statement and the prospectus

used in connection with such Registration Statement as may be necessary to

comply with the Securities Act with respect to the disposition of all

securities covered by such Registration Statement during the period of time

such Registration Statement remains effective;

 

(iii)                               The

Company shall use its commercially reasonable efforts to register and qualify

the securities covered by such Registration Statement under such other

securities or Blue Sky laws of such jurisdictions as shall be reasonably

requested by the Holder; provided that the Company shall not be required in

connection therewith or as a condition thereto to qualify to do business or to

file a general consent to service of process in any such states or

jurisdictions;

 

(iv)                              During

the period of time such Registration Statement remains effective, the Company

shall notify each Holder of Registrable Shares covered by such Registration

Statement at any time when a prospectus relating thereto is required to be

delivered under the Securities Act or the happening of any event as a result of

which the prospectus included in such Registration Statement, as then in

effect, includes an untrue statement of a material fact or omits to state a

material fact required to be stated therein or necessary to make the statements

therein not misleading in the light of the circumstances then existing;

 

(v)                                 The

Company shall use its commercially reasonable efforts to cause all such

Registrable Shares registered hereunder to be listed on each securities

exchange on which securities of the same class issued by the Company are then

listed;

 

6

 

(vi)                              The

obligations of the Company hereunder with respect to the Registrable Shares are

subject to the Holder furnishing to the Company such appropriate information

concerning the Holder, the Registrable Shares and the terms of the Holder’s

offering of such Registrable Shares as the Company may reasonably request in

writing.

 

(d)                                 Expenses.  All expenses incurred in effecting a

registration pursuant to this Agreement (including, without limitation, all

registration, qualification and filing fees, printing expenses, fees and

disbursements of counsel for the Company, blue sky fees and expenses) shall be

borne by the Company.  All transfer

taxes, underwriting discounts and selling commissions applicable to the sale of

the Registrable Shares shall be borne by the Holder.

 

(e)                                  Suspension

of Sales.

 

(i)                                     With

respect to the Registration Statement filed pursuant to Section 12(b), the

Company may suspend sales of Registrable Shares under such Registration

Statement for a period of not more than forty five (45) days with respect to

such Registration Statement if, at any time the Company is engaged in

confidential negotiations or other confidential business activities, the

disclosure of which would be required if such sales were not suspended and the

Board of Directors of the Company determines in good faith that such suspension

would be in the Company’s best interest at such time, provided that the Company

shall not be permitted to suspend such sales for more than sixty (60) days in

any twelve (12) month period.  In order

to suspend sales pursuant to this Section 12(e)(i), the Company shall promptly

(but in any event within five (5) business days), upon determining to seek such

suspension, deliver to each holder of Registrable Shares a certificate signed

by an executive officer of the Company stating that the Company is suspending

such filing pursuant to this Section 12(e)(i) and a general statement of the

reason for such suspension and an approximation of the anticipated delay.  Each holder of Registrable Shares hereby

agrees to keep confidential any information disclosed to it in any such

certificate (including the fact that a certificate was delivered).

 

(ii)                                  If

the Company suspends such Registration Statement pursuant to Section 12(e)(i)

above, the Company shall, as promptly as practicable following the termination

of the circumstances which entitled the Company to do so but in no event more

than fifteen (15) days thereafter, take such actions as may be necessary to

file or reinstate the effectiveness of such Registration Statement and/or give

written notice to the selling Holder authorizing them to resume sales pursuant

to such Registration Statement.  If, as

a result thereof, the prospectus included in such Registration Statement has

been amended to comply with the requirements of the Securities Act, the Company

shall enclose such revised prospectus with the notice to the selling Holder

given pursuant to this Section 12(e)(ii), and the selling Holder shall make no

offers or sales of securities pursuant to such Registration Statement other

than by means of such revised prospectus.

 

7

 

(d)                                 Transfer

or Assignment of Registration Rights. 

The right to cause the Company to register Registrable Shares granted to

the Holder by the Company under this Section 12 may be transferred or assigned

by the Holder to a transferee or assignee of such Registrable Shares that (i)

is a subsidiary, parent, current or former partner, current or former limited

partner, current or former member, current or former manager or stockholder of

the Holder, (ii) is an entity controlling, controlled by or under common

control, or under common investment management, with the Holder, including

without limitation a corporation, partnership or limited liability company that

is a direct or indirect parent or subsidiary of the Holder, or (iii) is a

transferee or assignee of not less than 50,000 Registrable Shares (as presently

constituted and subject to subsequent adjustments for stock splits, stock

dividends, reverse stock splits and the like), provided that the Company is

given written notice at the time of or within a reasonable time after said

transfer or assignment, stating the name and address of said transferee or

assignee and identifying the securities with respect to which such registration

rights are being transferred or assigned, and provided further that the

transferee or assignee of such rights assumes the obligations of such Holder

under this Section 12.

 

(g)                                 Reports

under Exchange Act.  With a view to

making available to the Holder the benefits of Rule 144 promulgated under the

Securities Act and any other rule or regulation of the SEC that may at any time

permit the Holder to sell securities of the Company to the public without

registration, the Company agrees to:

 

(i)                                     Make

and keep public information available, as those terms are used in SEC Rule 144,

at all times;

 

(ii)                                  File

with the SEC in a timely manner all reports and other documents required of the

Company under the Securities Act and the Exchange Act of 1934, as amended (the

“Exchange Act”);

 

(iii)                               Furnish

to the Holder, so long as the Holder owns any Registrable Shares, forthwith on

request, (i) a written statement by the Company that it has complied with the

reporting requirements of SEC Rule 144, the Securities Act and the Exchange

Act, (ii) a copy of the most recent annual or quarterly report of the Company

and such other reports and documents so filed by the Company, and (iii) such

other information as may be reasonably requested in availing any Holder of any

rule or regulation of the SEC that permits the selling of any such securities

without registration; and

 

(iv)                              Undertake

any additional actions reasonably necessary to maintain the availability of the

use of Rule 144.

 

(h)                                 Delay

of Registration.  The Holder shall

not have any right to obtain or seek an injunction restraining or otherwise

delaying any registration as the result of any controversy that might arise

with respect to the interpretation or implementation of this Section 12.

 

8

 

13.                                 Expiration

of Warrant.  This Warrant shall

expire and shall no longer be exercisable at 5:00 p.m., New York local time, on

the date that is two (2) years after the date of issuance of this Warrant as

set forth on the first page of this Warrant.

 

14.                                 Notices,

Etc.  Any request, consent, notice

or other communication required or permitted under this Warrant shall be in

writing and shall be deemed duly given and received when delivered personally

or transmitted by facsimile, or one business day after being deposited for

next-day delivery with a nationally recognized overnight delivery service, or

three (3) days after being deposited as first class mail with the United States

Postal Services, all charges or postage prepaid, and properly addressed to the

party to receive the same. Any party may, at any time, by providing ten (10)

days’ advance written notice to the other party hereto, designate any other

address in substitution of the an address established pursuant to the

foregoing.  The Holder’s notice address

shall be as set forth on the signature page hereto or as may have been

subsequently furnished by the Holder to the Company in writing.  The Company’s notice address shall be as

follows (or as may have been subsequently furnished by the Company to the

Holder in writing):

 

500 Seventh Avenue

10th Floor

New York, NY  10018

Telephone:  (212) 645-7705

Facsimile:  (212) 989-1745

 

15.                                 Governing

Law; Headings.  This Warrant is

being delivered in the State of New York and shall be construed and enforced in

accordance with and governed by the laws of such State.  The headings in this Warrant are for

purposes of reference only, and shall not limit or otherwise affect any of the

terms hereof.

 

16.                                 Amendment;

Waiver.  Any term of this Warrant

may be amended, and the observance of any tern of this Warrant may be waived

(either generally or in a particular instance and either retroactively or

prospectively) only with the written consent of the Company and the Holder.

 

17.                                 Severability.  If one or more provisions of this Warrant

are held to be unenforceable under applicable law, such provision(s) shall be

replaced with a provision that accomplishes, to the extent possible, the

original business purpose of such provision in a valid and enforceable manner,

and the balance of the Warrant shall be interpreted as if such provision were

so modified and shall be enforceable in accordance with its terms.

 

18.                                 No

Impairment.  The Company will not,

by amendment of its certificate of incorporation or bylaws, or through

reorganization, consolidation, merger, dissolution, issue or sale of

securities, sale of assets or any other voluntary action, avoid or seek to

avoid the observance or performance of any of the terns of this Warrant, but

will at all times in good faith assist in the carrying out of all such terms

and in the taking of all such action as may be necessary or appropriate in

order to protect the rights of the Holder of this Warrant against

impairment.  Without limiting the

generality of the foregoing, the Company (a) will not increase the par value of

any shares of stock issuable upon the exercise of this Warrant above the amount

 

9

 

payable therefor upon such exercise, and (b) will take

all such action as may be necessary or appropriate in order that the Company

may validly issue fully paid and non-assessable Shares upon exercise of this

Warrant.

 

19.                                 Attorneys’

Fees.  In the event any party is

required to engage the services of any attorneys for the purpose of enforcing

this Warrant, or any provision thereof, the prevailing party shall be entitled

to recover its reasonable expenses and costs in enforcing this Warrant,

including attorneys’ fees.

 

20.                                 Loss

or Mutilation.  Upon receipt by the

Company of evidence reasonably satisfactory to it of the ownership and the

loss, theft, destruction or mutilation of this Warrant, and of indemnity

reasonably satisfactory to it, and (in the case of mutilation) upon surrender

and cancellation of this Warrant, the Company will execute and deliver in lieu

thereof a new Warrant of like tenor.

 

21.                                 Taxes.  The Company shall pay all taxes and other

governmental charges that may be imposed in respect of the issue or delivery of

any Shares.

 

[Signatures appear on the following

page.]

 

10

 

IN WITNESS WHEREOF, this

Warrant has been executed as of the date first written above by an authorized

officer of the Company and the Warrant Holder.

 

	

   

  	

  AXONYX INC.

  
	

   

  
	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  WARRANT HOLDER

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  
	

   

  	

  Address:

  
	

   

  	

  Telephone:

  
	

   

  	

  Facsimile:

  

 

11<PAGE>
                                                                     EXHIBIT 4.1

<PAGE>

                                                                  EXECUTION COPY

================================================================================

                            SERIES 2003-4 SUPPLEMENT
                            Dated as of June 18, 2003

                                       to

                         POOLING AND SERVICING AGREEMENT
                            Dated as of May 16, 1996

                                  $680,000,000

                              ---------------------

                  AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST

                                  Series 2003-4

                              ---------------------

                                      among

                         AMERICAN EXPRESS CENTURION BANK
              AMERICAN EXPRESS RECEIVABLES FINANCING CORPORATION II
                                 as Transferors

             AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC.
                                   as Servicer

                                       And

                              THE BANK OF NEW YORK
                                   as Trustee
                on behalf of the Series 2003-4 Certificateholders

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                 Page

<S>                   <C>                                                                                     <C>
ARTICLE I             Creation of the Series 2003-4 Certificates.................................................1

         Section 1.01.        Designation........................................................................1

ARTICLE II            Definitions................................................................................2

         Section 2.01.        Definitions........................................................................2

ARTICLE III           Servicing Fee.............................................................................13

         Section 3.01.        Servicing Compensation............................................................13

ARTICLE IV            Rights of Series 2003-4 Certificateholders and
                      Allocation and Application of Collections.................................................14

         Section 4.01.        Collections and Allocations.......................................................14

         Section 4.02.        Determination of Monthly Interest.................................................16

         Section 4.03.        Principal Funding Account; Controlled Accumulation Period.........................18

         Section 4.04.        Required Amount...................................................................19

         Section 4.05.        Application of Class A Available Funds, Class B Available
                              Funds, Collateral Available Funds and Available Principal Collections.............20

         Section 4.06.        Defaulted Amounts; Investor Charge-Offs...........................................22

         Section 4.07.        Excess Spread; Excess Finance Charge Collections..................................23

         Section 4.08.        Reallocated Principal Collections.................................................24

         Section 4.09.        Excess Finance Charge Collections.................................................25

         Section 4.10.        Reallocated Investor Finance Charge Collections...................................25

         Section 4.11.        Shared Principal Collections......................................................26

         Section 4.12.        Reserve Account...................................................................26

         Section 4.13.        Investment Instructions...........................................................28

ARTICLE V             Distributions and Reports to Series 2003-4 Certificateholders.............................29

         Section 5.01.        Distributions.....................................................................29

         Section 5.02.        Reports and Statements to Series 2003-4 Certificateholders........................30

ARTICLE VI            Pay-Out Events............................................................................30

         Section 6.01.        Pay-Out Events....................................................................30

ARTICLE VII           Optional Repurchase; Series Termination...................................................31

         Section 7.01.        Optional Repurchase...............................................................31

         Section 7.02.        Series Termination................................................................32
</TABLE>

                                       i
<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                                                                 Page

<S>                   <C>                                                                                      <C>
ARTICLE VIII          Final Distributions.......................................................................32

         Section 8.01.        Sale of Receivables or Certificateholders' Interest pursuant to Section
                              2.06 or 10.01 of the Agreement and Section 7.01 or 7.02 of this Supplement........32

         Section 8.02.        Distribution of Proceeds of Sale, Disposition or Liquidation of the
                              Receivables pursuant to Section 9.01 of the Agreement.............................34

ARTICLE IX            Miscellaneous Provisions..................................................................35

         Section 9.01.        Ratification of Agreement.........................................................35

         Section 9.02.        Counterparts......................................................................35

         Section 9.03.        Governing Law.....................................................................35

         Section 9.04.        Certain Accounting Related Amendments.............................................35

         Section 9.05.        Additional Representations and Warranties of the Transferors......................35
</TABLE>

                                       ii

<PAGE>

                  SERIES 2003-4 SUPPLEMENT, dated as of June 18, 2003 (the
                  "Supplement"), among AMERICAN EXPRESS CENTURION BANK, a
                  Utah-chartered industrial loan company, and AMERICAN EXPRESS
                  RECEIVABLES FINANCING CORPORATION II, a Delaware corporation,
                  as Transferors, AMERICAN EXPRESS TRAVEL RELATED SERVICES
                  COMPANY, INC., a New York corporation, as Servicer, and THE
                  BANK OF NEW YORK, a banking corporation organized and existing
                  under the laws of the State of New York, not in its individual
                  capacity, but solely as Trustee.

                  Pursuant to the Pooling and Servicing Agreement, dated as of
May 16, 1996 (as amended and supplemented, the "Agreement"), among the
Transferors, the Servicer and the Trustee, the Transferors have created the
AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST (the "Trust"). Section 6.03 of the
Agreement provides that the Transferors may from time to time direct the Trustee
to authenticate one or more new Series of Investor Certificates representing
fractional undivided interests in the Trust. The Principal Terms of any new
Series are to be set forth in a Supplement to the Agreement.

                  Pursuant to this Supplement, the Transferors and the Trustee
shall create a new Series of Investor Certificates and specify the Principal
Terms thereof.

                                   ARTICLE I

                   Creation of the Series 2003-4 Certificates

                  Section 1.01. Designation.

                  (a) There is hereby created a Series of Investor Certificates
to be issued pursuant to the Agreement and this Supplement to be known as
"American Express Credit Account Master Trust, Series 2003-4." The Series 2003-4
Certificates shall be issued in two Classes, the first of which shall be known
as the "Class A Series 2003-4 1.69% Asset Backed Certificates" and the second of
which shall be known as the "Class B Series 2003-4 1.90% Asset Backed
Certificates." In addition, there is hereby created a third Class of
uncertificated interests in the Trust which shall be known as the "Collateral
Interest, Series 2003-4" and which shall be deemed to be "Investor Certificates"
for all purposes under the Agreement and this Supplement other than for purposes
of the definition of the term "Tax Opinion" in Section 1.01 of the Agreement.
The Collateral Interest shall be considered a Class of Series 2003-4 for all
purposes of the Agreement and this Supplement, including for purposes of voting
concerning the liquidation of the Trust pursuant to Section 9.01 of the
Agreement. The Collateral Interest Holder shall be deemed to be the Series
Enhancer for all purposes under the Agreement and this Supplement.

                  (b) Series 2003-4 shall be included in Group I and shall be a
Principal Sharing Series. Series 2003-4 shall be an Excess Allocation Series.
Series 2003-4 shall not be subordinated to any other Series. Notwithstanding any
provision in the Agreement or in this Supplement to the contrary, the first
Distribution Date with respect to Series 2003-4 shall be the July 2003
Distribution Date and the first Monthly Period shall begin on and include the
Closing Date and end on and include June 25, 2003.

                  (c) Except as expressly provided herein, the provisions of
Article VI and Article XII of the Agreement relating to the registration,
authentication, delivery, presentation, cancellation and surrender of Registered
Certificates shall not be applicable to the Collateral Interest.

                                       1
<PAGE>

                                   ARTICLE II

                                   Definitions

                  Section 2.01. Definitions.

                  (a) Whenever used in this Supplement, the following words and
phrases shall have the following meanings, and the definitions of such terms are
applicable to the singular as well as the plural forms of such terms and the
masculine as well as the feminine and neuter genders of such terms.

                  "Additional Interest" means, with respect to any Distribution
Date, the Class A Additional Interest, the Class B Additional Interest and the
Collateral Additional Interest for such Distribution Date.

                  "Adjusted Invested Amount" shall mean, with respect to any
date of determination, an amount equal to the Invested Amount less the Principal
Funding Account Balance on such date of determination.

                  "Available Principal Collections" shall mean, with respect to
any Monthly Period, an amount equal to the sum of (a) (i) an amount equal to the
Principal Allocation Percentage of Series 2003-4 Allocable Principal Collections
received during such Monthly Period minus (ii) the amount of Reallocated
Principal Collections with respect to such Monthly Period which pursuant to
Section 4.08 are required to fund the Required Amount for the related
Distribution Date, (b) any Shared Principal Collections with respect to other
Series that are allocated to Series 2003-4 in accordance with Section 4.04 of
the Agreement and Section 4.11 of this Supplement, and (c) any other amounts
which pursuant to Section 4.05 or 4.07 of this Supplement are to be treated as
Available Principal Collections with respect to the related Distribution Date.

                  "Available Reserve Account Amount" shall mean, with respect to
any Distribution Date, the lesser of (a) the amount on deposit in the Reserve
Account on such date (before giving effect to any deposit to be made to the
Reserve Account on such date) and (b) the Required Reserve Account Amount.

                  "Base Rate" shall mean, with respect to any Monthly Period,
the annualized percentage equivalent of a fraction, the numerator of which is
equal to the sum of the Class A Monthly Interest, the Class B Monthly Interest
(calculated as if the Class B Invested Amount equals the outstanding principal
balance of the Class B Certificates), the Collateral Monthly Interest and the
Monthly Servicing Fee with respect to the related Distribution Date and the
denominator of which is the Invested Amount as of the last day of the preceding
Monthly Period.

                  "Class A Additional Interest" shall have the meaning specified
in subsection 4.02(a).

                  "Class A Adjusted Invested Amount" shall mean, with respect to
any date of determination, an amount equal to the Class A Invested Amount less
the Principal Funding Account Balance (but not in excess of the Class A Invested
Amount) on such date.

                  "Class A Available Funds" shall mean, with respect to any
Monthly Period, an amount equal to the sum of (a) if such Monthly Period relates
to a Distribution Date with respect to the Controlled Accumulation Period, the
Class A Floating Percentage of Principal Funding Account Investment Proceeds, if
any, with respect to such Distribution Date, (b) the Class A Floating Percentage
of the Reallocated Investor Finance Charge Collections and (c) the amount of
funds, if any, to be withdrawn from the Reserve Account which, pursuant to
subsection 4.12(d), are required to be included in Class A Available Funds with
respect to such Distribution Date.

                                       2
<PAGE>

                  "Class A Certificate Rate" shall mean 1.69% per annum,
calculated on the basis of a 360-day year consisting of twelve 30-day months.

                  "Class A Certificateholder" shall mean the Person in whose
name a Class A Certificate is registered in the Certificate Register.

                  "Class A Certificates" shall mean any one of the Certificates
executed by the Transferors and authenticated by or on behalf of the Trustee,
substantially in the form of Exhibit A-l.

                  "Class A Floating Percentage" shall mean, with respect to any
Monthly Period, the percentage equivalent (which percentage shall never exceed
100%) of a fraction, the numerator of which is equal to the Class A Adjusted
Invested Amount as of the close of business on the last day of the preceding
Monthly Period and the denominator of which is equal to the Adjusted Invested
Amount as of such day; provided, however, that with respect to the first Monthly
Period, the Class A Floating Percentage shall mean the percentage equivalent of
a fraction, the numerator of which is the Class A Initial Invested Amount and
the denominator of which is the Initial Invested Amount.

                  "Class A Initial Invested Amount" shall mean $588,200,000.

                  "Class A Interest Shortfall" shall have the meaning specified
in subsection 4.02(a).

                  "Class A Invested Amount" shall mean, on any date of
determination, an amount equal to (a) the Class A Initial Invested Amount, minus
(b) the aggregate amount of principal payments made to the Class A
Certificateholders on or prior to such date, minus (c) the excess, if any, of
(i) the aggregate amount of Class A Investor Charge-Offs for all prior
Distribution Dates over (ii) Class A Investor Charge-Offs reimbursed pursuant to
subsection 4.07(b) prior to such date.

                  "Class A Investor Charge-Offs" shall have the meaning
specified in subsection 4.06(a).

                  "Class A Investor Default Amount" shall mean, with respect to
each Distribution Date, an amount equal to the product of (i) the Investor
Default Amount for the related Monthly Period and (ii) the Class A Floating
Percentage for such Monthly Period.

                  "Class A Monthly Interest" shall have the meaning specified in
subsection 4.02(a).

                  "Class A Principal Percentage" shall mean, with respect to any
Monthly Period (i) during the Revolving Period, the percentage equivalent (which
percentage shall never exceed 100%) of a fraction, the numerator of which is the
Class A Invested Amount as of the last day of the immediately preceding Monthly
Period and the denominator of which is the Invested Amount as of such day and
(ii) during the Controlled Accumulation Period, the Early Amortization Period or
any Partial Amortization Period, the percentage equivalent (which percentage
shall never exceed 100%) of a fraction, the numerator of which is the Class A
Invested Amount as of the close of business on the date on which the Revolving
Period shall have terminated and the denominator of which is the Invested Amount
as of the close of business on the date on which the Revolving Period shall have
terminated; provided, however, that with respect to the first Monthly Period,
the Class A Principal Percentage shall mean the percentage equivalent of a
fraction, the numerator of which is the Class A Initial Invested Amount and
denominator of which is the Initial Invested Amount.

                                       3
<PAGE>

                  "Class A Required Amount" shall have the meaning specified in
subsection 4.04(a).

                  "Class A Servicing Fee" shall have the meaning specified in
Section 3.01.

                  "Class B Additional Interest" shall have the meaning specified
in subsection 4.02(b).

                  "Class B Adjusted Invested Amount" shall mean an amount equal
to the Class B Invested Amount less the positive difference, if any, between the
Principal Funding Account Balance and the Class A Invested Amount on such date.

                  "Class B Available Funds" shall mean, with respect to any
Monthly Period, an amount equal to the sum of (a) Class B Floating Percentage of
the Reallocated Investor Finance Charge Collections and (b) if such Monthly
Period relates to a Distribution Date with respect to the Controlled
Accumulation Period, the Class B Floating Percentage of the Principal Funding
Account Investment Proceeds, if any, with respect to such Distribution Date.

                  "Class B Certificate Rate" shall mean 1.90% per annum,
calculated on the basis of a 360-day year consisting of twelve 30-day months.

                  "Class B Certificateholder" shall mean the Person in whose
name a Class B Certificate is registered in the Certificate Register.

                  "Class B Certificates" shall mean any one of the Certificates
executed by the Transferors and authenticated by or on behalf of the Trustee,
substantially in the form of Exhibit A-2.

                  "Class B Floating Percentage" shall mean, with respect to any
Monthly Period, the percentage equivalent (which percentage shall never exceed
100%) of a fraction, the numerator of which is equal to the Class B Adjusted
Invested Amount as of the close of business on the last day of the preceding
Monthly Period and the denominator of which is equal to the Adjusted Invested
Amount as of the close of business on such day; provided, however, that with
respect to the first Monthly Period, the Class B Floating Percentage shall mean
the percentage equivalent of a fraction, the numerator of which is the Class B
Initial Invested Amount and the denominator of which is the Initial Invested
Amount.

                  "Class B Initial Invested Amount" shall mean $40,800,000.

                  "Class B Interest Shortfall" shall have the meaning specified
in subsection 4.02(b).

                  "Class B Invested Amount" shall mean, on any date of
determination, an amount equal to (a) the Class B Initial Invested Amount, minus
(b) the aggregate amount of principal payments made to the Class B
Certificateholders prior to such date, minus (c) the aggregate amount of Class B
Investor Charge-Offs for all prior Distribution Dates, minus (d) the amount of
Reallocated Principal Collections allocated on all prior Distribution Dates
pursuant to subsection 4.08(a) (excluding any Reallocated Principal Collections
that have resulted in a reduction in the Collateral Invested Amount pursuant to
Section 4.08), minus (e) an amount equal to the amount by which the Class B
Invested Amount has been reduced on all prior Distribution Dates pursuant to
subsection 4.06(a) and plus (f) the amount of Excess Spread and Excess Finance
Charge Collections allocated and available on all prior Distribution Dates
pursuant to subsection 4.07(e) for the purpose of reimbursing amounts deducted
pursuant to the foregoing clauses (c), (d) and (e); provided, however, that the
Class B Invested Amount may not be reduced below zero.

                  "Class B Investor Charge-Offs" shall have the meaning
specified in subsection 4.06(b).

                                       4
<PAGE>

                  "Class B Investor Default Amount" shall mean, with respect to
each Distribution Date, an amount equal to the product of (i) the Investor
Default Amount for the related Monthly Period and (ii) the Class B Floating
Percentage for such Monthly Period.

                  "Class B Monthly Interest" shall have the meaning specified in
subsection 4.02(b).

                  "Class B Principal Percentage" shall mean, with respect to any
Monthly Period, (i) during the Revolving Period, the percentage equivalent
(which percentage shall never exceed 100%) of a fraction, the numerator of which
is the Class B Invested Amount as of the last day of the immediately preceding
Monthly Period and the denominator of which is the Invested Amount as of such
day and (ii) during the Controlled Accumulation Period, the Early Amortization
Period or any Partial Amortization Period, the percentage equivalent (which
percentage shall never exceed 100%) of a fraction, the numerator of which is the
Class B Invested Amount as of the close of business on the date on which the
Revolving Period shall have terminated and the denominator of which is the
Invested Amount as of the close of business on the date on which the Revolving
Period shall have terminated; provided, however, that with respect to the first
Monthly Period, the Class B Principal Percentage shall mean the percentage
equivalent of a fraction, the numerator of which is the Class B Initial Invested
Amount and the denominator of which is the Initial Invested Amount.

                  "Class B Required Amount" shall have the meaning set forth in
subsection 4.04(b).

                  "Class B Servicing Fee" shall have the meaning specified in
Section 3.01.

                  "Closing Date" shall mean June 18, 2003; provided that, for
purposes of determining the date on which the first Monthly Period begins, the
Closing Date shall be deemed to be the close of business on the last day of the
seventh billing cycle applicable to the Accounts ending in May 2003.

                  "Collateral Additional Interest" shall have the meaning
specified in subsection 4.02(c).

                  "Collateral Available Funds" shall mean with respect to any
Distribution Date, the Collateral Floating Percentage of Reallocated Investor
Finance Charge Collections with respect to the preceding Monthly Period.

                  "Collateral Charge-Offs" shall have the meaning specified in
subsection 4.06(c).

                  "Collateral Default Amount" shall mean, with respect to any
Distribution Date, the product of the Investor Default Amount for the related
Monthly Period and the Collateral Floating Percentage.

                  "Collateral Floating Percentage" shall mean, with respect to
any Distribution Date, the percentage equivalent (which percentage shall never
exceed 100%) of a fraction, the numerator of which is equal to the Collateral
Invested Amount as of the close of business on the last day of the preceding
Monthly Period and the denominator of which is the Adjusted Invested Amount as
of the close of business on such last day; provided, however, that with respect
to the first Monthly Period, the Collateral Floating Percentage shall mean the
percentage equivalent of a fraction, the numerator of which is the Collateral
Initial Invested Amount and the denominator of which is the Initial Invested
Amount.

                  "Collateral Initial Invested Amount" shall mean $51,000,000.

                  "Collateral Interest" shall mean a fractional undivided
interest in the Trust which shall consist of the right to receive, to the extent
necessary to make the required payments to the Collateral Interest Holder under
this Supplement, the portion of Collections allocable thereto under the
Agreement and this Supplement and funds on deposit in the Collection Account
allocable thereto pursuant to the Agreement and this Supplement.

                                       5
<PAGE>

                  "Collateral Interest Holder" shall mean the entity so
designated in the Loan Agreement.

                  "Collateral Interest Shortfall" shall have the meaning
specified in subsection 4.02(c).

                  "Collateral Invested Amount" shall mean, when used with
respect to any date, an amount equal to (a) the Collateral Initial Invested
Amount, minus (b) the aggregate amount of principal payments made to the
Collateral Interest Holder prior to such date, minus (c) the aggregate amount of
Collateral Charge-Offs for all prior Distribution Dates pursuant to subsection
4.06(c), minus (d) the aggregate amount of Reallocated Principal Collections
allocated on all prior Distribution Dates pursuant to Section 4.08 allocable to
the Collateral Invested Amount, minus (e) an amount equal to the amount by which
the Collateral Invested Amount has been reduced on all prior Distribution Dates
pursuant to subsections 4.06(a) and (b), and plus (f) the amount allocated and
available on all prior Distribution Dates pursuant to subsection 4.07(i), for
the purpose of reimbursing amounts deducted pursuant to the foregoing clauses
(c), (d) and (e); provided, however, that the Collateral Invested Amount may not
be reduced below zero.

                  "Collateral Monthly Interest" shall have the meaning specified
in subsection 4.02(c).

                  "Collateral Principal Percentage" shall mean, with respect to
any Monthly Period, (i) during the Revolving Period, the percentage equivalent
(which percentage shall never exceed 100%) of a fraction, the numerator of which
is the Collateral Invested Amount as of the last day of the immediately
preceding Monthly Period and the denominator of which is the Invested Amount as
of such day and (ii) during the Controlled Accumulation Period, the Early
Amortization Period or any Partial Amortization Period, the percentage
equivalent (which percentage shall never exceed 100%) of a fraction, the
numerator of which is the Collateral Invested Amount as of the close of business
on the date on which the Revolving Period shall have terminated and the
denominator of which is the Invested Amount as of the close of business on the
date on which the Revolving Period shall have terminated; provided, however,
that with respect to the first Monthly Period, the Collateral Principal
Percentage shall mean the percentage equivalent of a fraction, the numerator of
which is the Collateral Initial Invested Amount and the denominator of which is
the Initial Invested Amount.

                  "Collateral Rate" shall mean the rate specified in the Loan
Agreement.

                  "Collateral Servicing Fee" shall have the meaning set forth in
Section 3.01.

                  "Controlled Accumulation Amount" shall mean, for any
Distribution Date with respect to the Controlled Accumulation Period,
$52,416,666.67; provided, however, that, if the Controlled Accumulation Period
Length is determined to be less than 12 months, the Controlled Accumulation
Amount for each Distribution Date with respect to the Controlled Accumulation
Period will be equal to (i) the product of (x) the sum of the Class A Initial
Invested Amount and the Class B Initial Invested Amount and (y) the Controlled
Accumulation Period Factor for the related Monthly Period divided by (ii) the
Required Accumulation Factor Number.

                  "Controlled Accumulation Period" shall mean, unless a Pay-Out
Event shall have occurred prior thereto, the period commencing at the close of
business on the last day of the May 2005 Monthly Period or such later date as is
determined in accordance with subsection 4.03(c) and ending on the first to
occur of (a) the commencement of the Early Amortization Period, (b) the payment
in full of the Invested Amount and (c) the Series 2003-4 Termination Date.

                                       6
<PAGE>

                  "Controlled Accumulation Period Factor" shall mean, for each
Monthly Period, a fraction, the numerator of which is equal to the sum of the
series invested amounts as of the last day of the prior Monthly Period of all
outstanding Series, and the denominator of which is equal to the sum (without
duplication) of (a) the Series Invested Amount as of the last day of the prior
Monthly Period, (b) the series invested amounts as of the last day of the prior
Monthly Period of all outstanding Series (other than Series 2003-4) that are not
expected to be in their revolving periods, and (c) the series invested amounts
as of the last day of the prior Monthly Period of all other outstanding Series
that are not Principal Sharing Series and are in their revolving periods.

                  "Controlled Accumulation Period Length" has the meaning
specified in subsection 4.03(c).

                  "Controlled Deposit Amount" shall mean, for any Distribution
Date with respect to the Controlled Accumulation Period, an amount equal to the
sum of the Controlled Accumulation Amount for such Distribution Date and any
Deficit Controlled Accumulation Amount for the immediately preceding
Distribution Date.

                  "Covered Amount" shall mean, for any Distribution Date with
respect to the Controlled Accumulation Period or the first Special Payment Date,
if such Special Payment Date occurs prior to the date the Class A Invested
Amount is paid in full, an amount equal to the sum of (x) with respect to the
Class A Certificates, one-twelfth of the product of (i) the Class A Certificate
Rate and (ii) the Principal Funding Account Balance, if any, as of the preceding
Distribution Date that is allocable to the principal of the Class A Certificates
and (y) with respect to the Class B Certificates, one-twelfth of the product of
(i) the Class B Certificate Rate and (ii) the Principal Funding Account Balance,
if any, as of the preceding Distribution Date that is allocable to the principal
of the Class B Certificates.

                  "Deficit Controlled Accumulation Amount" shall mean (a) on the
first Distribution Date with respect to the Controlled Accumulation Period, the
excess, if any, of the Controlled Accumulation Amount for such Distribution Date
over the amount deposited in the Principal Funding Account on such Distribution
Date and (b) on each subsequent Distribution Date with respect to the Controlled
Accumulation Period, the excess, if any, of the Controlled Deposit Amount for
such subsequent Distribution Date over the amount deposited in the Principal
Funding Account on such subsequent Distribution Date.

                  "Distribution Date" shall mean July 15, 2003, and the 15th day
of each calendar month thereafter, or if such 15th day is not a Business Day,
the next succeeding Business Day.

                  "Early Amortization Period" shall mean the period commencing
at the close of business on the Business Day immediately preceding the day on
which a Pay-Out Event with respect to Series 2003-4 is deemed to have occurred,
and ending on the first to occur of (i) the payment in full of the Invested
Amount or (ii) the Series 2003-4 Termination Date.

                  "Excess Finance Charge Collections" shall mean collections of
Finance Charge Receivables and certain other amounts allocable to the
Certificateholders' Interest of any Excess Allocation Series in excess of the
amounts necessary to make required payments with respect to such series
(including payments to the provider of any related Series Enhancement) that are
payable out of collections of Finance Charge Receivables.

                  "Excess Spread" shall mean, with respect to any Distribution
Date, the sum of the amounts, if any, specified pursuant to subsections
4.05(a)(iv), 4.05(b)(iii) and 4.05(c)(ii) with respect to such Distribution
Date.

                                       7
<PAGE>

                  "Expected Final Payment Date" shall mean the June 2006
Distribution Date.

                  "Finance Charge Shortfall" shall have the meaning specified in
Section 4.09.

                  "Floating Allocation Percentage" shall mean, with respect to
any Monthly Period, the percentage equivalent (which percentage shall never
exceed 100%) of a fraction, the numerator of which is the Adjusted Invested
Amount as of the last day of the preceding Monthly Period (or with respect to
the first Monthly Period, the Initial Invested Amount) and the denominator of
which is the product of (x) the Series 2003-4 Allocation Percentage with respect
to such Monthly Period and (y) the sum of (i) the total amount of Principal
Receivables in the Trust as of such day (or with respect to the first Monthly
Period, the total amount of Principal Receivables in the Trust on the Closing
Date) and (ii) the principal amount on deposit in the Special Funding Account as
of such last day (or with respect to the first Monthly Period, as of the Closing
Date); provided, however, that with respect to any Monthly Period in which an
Addition Date for an Aggregate Addition or a Removal Date occurs the amount in
(y)(i) above shall be (1) the aggregate amount of Principal Receivables in the
Trust at the end of the day on the last day of the prior Monthly Period for the
period from and including the first day of such Monthly Period to but excluding
the related Addition Date or Removal Date and (2) the aggregate amount of
Principal Receivables in the Trust at the end of the day on the related Addition
Date or Removal Date for the period from and including the related Addition Date
or Removal Date to and including the last day of such Monthly Period.

                  "Group I" shall mean Series 2003-4 and each other Series
specified in the related Supplement to be included in Group I.

                  "Group I Investor Additional Amounts" shall mean, with respect
to any Distribution Date, the sum of (a) Series 2003-4 Additional Amounts for
such Distribution Date and (b) for all other Series included in Group I, the sum
of (i) the aggregate net amount by which the Invested Amounts of such Series
have been reduced as a result of investor charge-offs, subordination of
principal collections and funding the investor default amounts in respect of any
Class or Series Enhancement interests of such Series as of such Distribution
Date and (ii) if the applicable Supplements so provide, the aggregate unpaid
amount of interest at the applicable certificate rates that has accrued on the
amounts described in the preceding clause (i) for such Distribution Date.

                  "Group I Investor Default Amount" shall mean, with respect to
any Distribution Date, the sum of (a) the Investor Default Amount for such
Distribution Date and (b) the aggregate amount of the investor default amounts
for all other Series included in Group I for such Distribution Date.

                  "Group I Investor Finance Charge Collections" shall mean, with
respect to any Distribution Date, the sum of (a) Investor Finance Charge
Collections for such Distribution Date and (b) the aggregate amount of the
investor finance charge collections for all other Series included in Group I for
such Distribution Date.

                  "Group I Investor Monthly Fees" shall mean with respect to any
Distribution Date, the sum of (a) Series 2003-4 Monthly Fees for such
Distribution Date and (b) the aggregate amount of the servicing fees, investor
fees, fees payable to any Series Enhancer and any other similar fees, which are
payable out of reallocated investor finance charge collections pursuant to the
related Supplements, for all other Series included in Group I for such
Distribution Date.

                  "Group I Investor Monthly Interest" shall mean, with respect
to any Distribution Date, the sum of (a) Series 2003-4 Monthly Interest for such
Distribution Date and (b) the aggregate amount of monthly interest, including
overdue monthly interest and interest on such overdue monthly interest, if such
amounts are payable out of reallocated investor finance charge collections
pursuant to the related Supplements, for all other Series included in Group I
for such Distribution Date.

                                       8
<PAGE>

                  "Initial Invested Amount" shall mean $680,000,000.

                  "Interest Accrual Period" shall mean, with respect to any
Distribution Date, the period (a) from and including the Distribution Date
immediately preceding such Distribution Date (or, in the case of the first
Distribution Date, from and including the Closing Date) and (b) to but excluding
such Distribution Date.

                  "Invested Amount" shall mean, as of any date of determination,
an amount equal to the sum of (a) the Class A Invested Amount as of such date,
(b) the Class B Invested Amount as of such date and (c) the Collateral Invested
Amount as of such date.

                  "Investor Charge-Offs" shall mean Class A Investor
Charge-Offs, Class B Investor Charge-Offs and Collateral Charge-Offs.

                  "Investor Default Amount" shall mean, with respect to any
Distribution Date, an amount equal to the product of (a) the Series 2003-4
Allocable Defaulted Amount for the related Monthly Period and (b) the Floating
Allocation Percentage for such Monthly Period.

                  "Investor Finance Charge Collections" shall mean with respect
to any Distribution Date, an amount equal to the product of (a) the Floating
Allocation Percentage for the related Monthly Period and (b) Series 2003-4
Allocable Finance Charge Collections deposited in the Collection Account for the
related Monthly Period.

                  "Loan Agreement" shall mean the agreement among the
Transferors, the Trustee, the Servicer and the Collateral Interest Holder, dated
as of the date hereof.

                  "Monthly Interest" means, with respect to any Distribution
Date, the Class A Monthly Interest, the Class B Monthly Interest and the
Collateral Monthly Interest for such Distribution Date.

                  "Monthly Servicing Fee" shall have the meaning specified in
subsection 3.01.

                  "Pay-Out Event" shall mean any Pay-Out Event specified in
Section 6.01.

                  "Principal Allocation Percentage" shall mean, with respect to
any day during a Monthly Period, the percentage equivalent (which percentage
shall never exceed 100%) of a fraction, the numerator of which is (a) during the
Revolving Period, the Series Adjusted Invested Amount for Series 2003-4 as of
the last day of the immediately preceding Monthly Period (or, in the case of the
first Monthly Period, the Initial Invested Amount) and (b) during the Controlled
Accumulation Period, the Early Amortization Period or any Partial Amortization
Period, the Series Adjusted Invested Amount for Series 2003-4 as of the close of
business on the date on which the Revolving Period shall have terminated and the
denominator of which is the product of (x) the sum of (i) the total amount of
Principal Receivables in the Trust as of the last day of the immediately
preceding Monthly Period (or with respect to the first Monthly Period, the total
amount of Principal Receivables in the Trust as of the Closing Date) and (ii)
the principal amount on deposit in the Special Funding Account as of such last
day (or with respect to the first Monthly Period, the Closing Date) and (y) the
Series 2003-4 Allocation Percentage as of the last day of the immediately
preceding Monthly Period; provided, however, that with respect to any Monthly
Period in which an Addition Date for an Aggregate Addition or a Removal Date
occurs the amount in (x)(i) above shall be (1) the aggregate amount of Principal
Receivables in the Trust at the end of the day on the last day of the prior
Monthly Period for the period from and including the first day of such Monthly
Period to but excluding the related Addition Date or Removal Date and (2) the
aggregate amount of Principal Receivables in the Trust at the end of the day on
the related Addition Date or Removal Date for the period from and including the
related Addition Date or Removal Date to and including the last day of such
Monthly Period; and provided further, that if after the commencement of the
Controlled Accumulation Period a Pay-Out Event occurs with respect to another
Series that was designated in the Supplement therefor as a Series that is a
"Paired Series" with respect to Series 2003-4, the Transferors may, by written
notice delivered to the Trustee and the Servicer, designate a different
numerator for the foregoing fraction, provided that (x) such numerator is not
less than the Adjusted Invested Amount as of the last day of the revolving
period for such Paired Series, (y) the Transferors shall have received written
notice from each Rating Agency that the Rating Agency Condition has been
satisfied with respect to such designation and shall have delivered copies of
each such written notice to the Servicer and the Trustee and (z) the Transferors
shall have delivered to the Trustee an Officer's Certificate to the effect that,
based on the facts known to such officer at such time, in the reasonable belief
of the Transferors, such designation will not cause a Pay-Out Event or an event
that, after the giving of notice or the lapse of time, would constitute a
Pay-Out Event, to occur with respect to Series 2003-4.

                                       9
<PAGE>

                  "Principal Funding Account" shall have the meaning specified
in subsection 4.03(a)(i).

                  "Principal Funding Account Balance" shall mean, with respect
to any date of determination during the Controlled Accumulation Period, the
principal amount, if any, on deposit in the Principal Funding Account on such
date of determination.

                  "Principal Funding Account Investment Proceeds" shall have the
meaning specified in subsection 4.03(a)(ii).

                  "Principal Funding Account Investment Shortfall" shall mean,
with respect to each Distribution Date during the Controlled Accumulation
Period, the amount, if any, by which the Principal Funding Account Investment
Proceeds are less than the Covered Amount.

                  "Reallocated Investor Finance Charge Collections" shall mean
that portion of Group I Investor Finance Charge Collections allocated to Series
2003-4 pursuant to Section 4.10.

                  "Reallocated Principal Collections" shall mean, with respect
to any Monthly Period, the product of (a) the Series 2003-4 Allocable Principal
Collections deposited in the Collection Account for such Monthly Period and (b)
the sum of the Class B Principal Percentage and the Collateral Principal
Percentage.

                  "Reassignment Amount" shall mean, with respect to any
Distribution Date, after giving effect to any deposits and distributions
otherwise to be made on such Distribution Date, the sum of (i) the Adjusted
Invested Amount on such Distribution Date, plus (ii) Monthly Interest for such
Distribution Date and any Monthly Interest previously due but not distributed to
the Series 2003-4 Certificateholders on a prior Distribution Date, plus (iii)
the amount of Additional Interest, if any, for such Distribution Date and any
Additional Interest previously due but not distributed to the Series 2003-4
Certificateholders on a prior Distribution Date.

                  "Required Accumulation Factor Number" shall be equal to a
fraction, rounded upwards to the nearest whole number, the numerator of which is
one and the denominator of which is equal to the lowest monthly principal
payment rate on the Accounts, expressed as a decimal, for the three months
preceding the date of such calculation.

                                       10
<PAGE>

                  "Required Amount" shall mean, with respect to any Monthly
Period, the sum of the Class A Required Amount and the Class B Required Amount.

                  "Required Collateral Invested Amount" shall mean (i) initially
$51,000,000 and (ii) on any Distribution Date thereafter, 7.50% of the sum of
the Class A Adjusted Invested Amount on such Distribution Date, the Class B
Adjusted Invested Amount on such Distribution Date (in each case after taking
into account payments to be made on such Distribution Date) and the Collateral
Invested Amount on such Distribution Date after taking into account any
adjustments made on such Distribution Date, but not less than $20,400,000;
provided, however, that (1) if either (a) there is a reduction in the Collateral
Invested Amount pursuant to clauses (c), (d) or (e) of the definition thereof
during the Controlled Accumulation Period or (b) a Pay-Out Event with respect to
the Series 2003-4 Certificates has occurred, the Required Collateral Invested
Amount for such Distribution Date thereafter shall equal the Required Collateral
Invested Amount for such Distribution Date immediately preceding such reduction
or Pay-Out Event, (2) in no event shall the Required Collateral Invested Amount
exceed the unpaid principal amount of the Series 2003-4 Certificates as of the
last day of the Monthly Period preceding such Distribution Date after taking
into account payments to be made on the related Distribution Date and (3) the
Required Collateral Invested Amount may be reduced to a lesser amount at any
time if the Rating Agency Condition is satisfied.

                  "Required Reserve Account Amount" shall mean, with respect to
any Distribution Date on or after the Reserve Account Funding Date, an amount
equal to (1) 0.50% of the Class A Invested Amount as of the preceding
Distribution Date (after giving effect to all changes therein on such date) or
(2) any other percentage (which may be 0%) of the Class A Invested Amount
designated by the Transferors, provided that if such percentage is less than the
percentage specified in clause (1) above, the Transferors shall have received
the prior written consent of the Collateral Interest Holder and written notice
from each Rating Agency that the Rating Agency Condition shall have been
satisfied with respect to such designation and shall have delivered copies of
each such written notice to the Servicer and the Trustee.

                  "Reserve Account" shall have the meaning specified in
subsection 4.12(a).

                  "Reserve Account Funding Date" shall mean the Distribution
Date which occurs not later than the earliest of (a) the Distribution Date with
respect to the Monthly Period that commences not later than three months prior
to the Distribution Date with respect to the first Monthly Period in the
Controlled Accumulation Period, (b) in the event that the average Excess Spread
Percentage for any three consecutive Monthly Periods ending in the June 2004
Monthly Period or any Monthly Period thereafter is less than 2%, the
Distribution Date with respect to such Monthly Period, (c) in the event that the
average Excess Spread Percentage for any three consecutive Monthly Periods
ending in the December 2004 Monthly Period or any Monthly Period thereafter is
less than 3%, the Distribution Date with respect to such Monthly Period and (d)
such earlier Distribution Date as the Transferors may determine by written
notice to the Trustee and the Servicer. For this purpose, the "Excess Spread
Percentage" for any Monthly Period shall be equal to the Series Adjusted
Portfolio Yield for such Monthly Period minus the Base Rate for such Monthly
Period.

                  "Reserve Account Surplus" shall mean, as of any date of
determination, the amount, if any, by which the amount on deposit in the Reserve
Account exceeds the Required Reserve Account Amount.

                  "Reserve Draw Amount" shall have the meaning specified in
subsection 4.12(c).

                                       11
<PAGE>

                  "Revolving Period" shall mean the period beginning at the
close of business on the Series Cut-Off Date and ending on the earlier of (a)
the close of business on the day immediately preceding the day the Controlled
Accumulation Period commences and (b) the close of business on the day
immediately preceding the day the Early Amortization Period commences.

                  "Series Adjusted Portfolio Yield" shall mean, with respect to
any Monthly Period, the annualized percentage equivalent of a fraction, (A) the
numerator of which is equal to (a) Reallocated Investor Finance Charge
Collections with respect to such Monthly Period, plus (b) the amount of any
Principal Funding Account Investment Proceeds for the related Distribution Date,
plus (c) provided that each Rating Agency has consented in writing to the
inclusion thereof in calculating the Series Adjusted Portfolio Yield, any Excess
Finance Charge Collections that are allocated to Series 2003-4 with respect to
such Monthly Period plus (d) the amount of funds, if any, withdrawn from the
Reserve Account which pursuant to subsection 4.12(d) are required to be included
as Class A Available Funds for the Distribution Date with respect to such
Monthly Period minus (e) the Investor Default Amount for the Distribution Date
with respect to such Monthly Period, and (B) the denominator of which is the
Invested Amount as of the last day of the preceding Monthly Period.

                  "Series Cut-Off Date" shall mean the close of business on June
18, 2003.

                  "Series 2003-4" shall mean the Series of Certificates the
terms of which are specified in this Supplement.

                  "Series 2003-4 Additional Amounts" shall mean, with respect to
any Distribution Date, the sum of the amounts determined pursuant to subsections
4.07(b), (e) and (i) for such Distribution Date.

                  "Series 2003-4 Allocable Defaulted Amount" shall mean the
Series Allocable Defaulted Amount with respect to Series 2003-4.

                  "Series 2003-4 Allocable Finance Charge Collections" shall
mean the Series Allocable Finance Charge Collections with respect to Series
2003-4.

                  "Series 2003-4 Allocable Principal Collections" shall mean the
Series Allocable Principal Collections with respect to Series 2003-4.

                  "Series 2003-4 Allocation Percentage" shall mean the Series
Allocation Percentage with respect to Series 2003-4.

                  "Series 2003-4 Certificate" shall mean a Class A Certificate
or a Class B Certificate or the Collateral Interest.

                  "Series 2003-4 Certificateholder" shall mean a Class A
Certificateholder or a Class B Certificateholder or the Collateral Interest
Holder.

                  "Series 2003-4 Certificateholders' Interest" shall mean the
Certificateholders' Interest for Series 2003-4, including the Collateral
Interest.

                  "Series 2003-4 Monthly Fees" shall mean, with respect to any
Distribution Date, the amount determined pursuant to subsections 4.05(a)(ii),
(b)(ii) and (c)(i) and subsection 4.07(g).

                  "Series 2003-4 Monthly Interest" shall mean the amounts
determined pursuant to subsections 4.02(a), (b) and (c).

                                       12
<PAGE>

                  "Series 2003-4 Principal Shortfall" shall have the meaning
specified in Section 4.11.

                  "Series 2003-4 Termination Date" shall mean the January 2009
Distribution Date.

                  "Series Invested Amount" shall mean the Initial Invested
Amount.

                  "Series Required Transferor Amount" shall mean an amount equal
to 7% of the Invested Amount.

                  "Servicing Base Amount" shall have the meaning specified in
Section 3.01.

                  "Servicing Fee Rate" shall mean 2.0% per annum.

                  "Special Payment Date" shall mean each Distribution Date with
respect to the Early Amortization Period.

                  "Telerate Page 3750" shall mean the display page currently so
designated on the Moneyline Telerate Service (or such other page as may replace
that page on that service for the purpose of displaying comparable rates or
prices).

                  "Transferor Percentage" shall mean 100% minus (a) the Floating
Allocation Percentage, when used at any time with respect to Finance Charge
Receivables and Defaulted Receivables, or (b) the Principal Allocation
Percentage, when used at any time with respect to Principal Receivables.

                  (b) Notwithstanding anything to the contrary in this
Supplement or the Agreement, the term "Rating Agency" shall mean, whenever used
in this Supplement or the Agreement with respect to Series 2003-4, Moody's and
Standard & Poor's. As used in this Supplement and in the Agreement with respect
to Series 2003-4, "highest investment category" shall mean (i) in the case of
Standard & Poor's, AAA or A-1+, as applicable and (ii) in the case of Moody's,
Aaa or P-1, as applicable.

                  (c) Each capitalized term defined herein shall relate to the
Series 2003-4 Certificates and no other Series of Certificates issued by the
Trust, unless the context otherwise requires. All capitalized terms used herein
and not otherwise defined herein have the meanings ascribed to them in the
Agreement. In the event that any term or provision contained herein shall
conflict with or be inconsistent with any term or provision contained in the
Agreement, the terms and provisions of this Supplement shall govern.

                  (d) The words "hereof," "herein" and "hereunder" and words of
similar import when used in this Supplement shall refer to this Supplement as a
whole and not to any particular provision of this Supplement; references to any
Article, subsection, Section or Exhibit are references to Articles, subsections,
Sections and Exhibits in or to this Supplement unless otherwise specified; and
the term "including" means "including without limitation."

                                  ARTICLE III

                                  Servicing Fee

                  Section 3.01. Servicing Compensation. The share of the
Servicing Fee allocable to the Series 2003-4 Certificateholders with respect to
any Distribution Date (the "Monthly Servicing Fee") shall be equal to
one-twelfth of the product of (a) the Servicing Fee Rate and (b) (i) the
Adjusted Invested Amount as of the last day of the Monthly Period preceding such
Distribution Date minus (ii) the

                                       13
<PAGE>

product of the amount, if any, on deposit in the Special Funding Account as of
the last day of the Monthly Period preceding such Distribution Date and the
Series 2003-4 Allocation Percentage with respect to such Monthly Period (the
amount calculated pursuant to this clause (b) is referred to as the "Servicing
Base Amount"). The share of the Monthly Servicing Fee allocable to the Class A
Certificateholders with respect to any Distribution Date (the "Class A Servicing
Fee") shall be equal to one-twelfth of the product of (a) the Class A Floating
Percentage, (b) the Servicing Fee Rate and (c) the Servicing Base Amount. The
share of the Monthly Servicing Fee allocable to the Class B Certificateholders
with respect to any Distribution Date (the "Class B Servicing Fee") shall be
equal to one-twelfth of the product of (a) the Class B Floating Percentage, (b)
the Servicing Fee Rate and (c) the Servicing Base Amount. The share of the
Monthly Servicing Fee allocable to the Collateral Interest with respect to any
Distribution Date (the "Collateral Servicing Fee") shall be equal to one-twelfth
of the product of the (a) Collateral Floating Percentage, (b) the Servicing Fee
Rate and (c) the Servicing Base Amount. The remainder of the Servicing Fee shall
be paid by the Holders of the Transferor Certificates or the investor
certificateholders of other Series (as provided in the related Supplements) and
in no event shall the Trust, the Trustee or the Series 2003-4 Certificateholders
be liable for the share of the Servicing Fee to be paid by the Holders of the
Transferor Certificates or the investor certificateholders of any other Series.
To the extent that the Class A Servicing Fee, the Class B Servicing Fee and the
Collateral Servicing Fee are not paid in full pursuant to the preceding
provisions of this Section 3.01, and Sections 4.05 and 4.07, they shall be paid
by the Holders of the Transferor Certificates.

                                   ARTICLE IV

                 Rights of Series 2003-4 Certificateholders and
                    Allocation and Application of Collections

                  Section 4.01. Collections and Allocations.

                  (a) Allocations. Collections of Finance Charge Receivables and
Principal Receivables and Defaulted Receivables allocated to Series 2003-4
pursuant to Article IV of the Agreement (and, as described herein, Collections
of Finance Charge Receivables reallocated from other Series in Group I) shall be
allocated and distributed or reallocated as set forth in this Article.

                  (b) Payments to the Transferor. The Servicer shall on each
Deposit Date withdraw from the Collection Account and pay to the Holders of the
Transferor Certificates the following amounts:

                      (i) an amount equal to the Transferor Percentage for the
                   related Monthly Period of Series 2003-4 Allocable Finance
                   Charge Collections to the extent such amount is deposited in
                   the Collection Account; and

                      (ii) an amount equal to the Transferor Percentage for the
                   related Monthly Period of Series 2003-4 Allocable Principal
                   Collections deposited in the Collection Account, if the
                   Transferor Amount (determined after giving effect to any
                   Principal Receivables transferred to the Trust on such
                   Deposit Date) exceeds zero.

                  The withdrawals to be made from the Collection Account
pursuant to this subsection 4.01(b) do not apply to deposits into the Collection
Account that do not represent Collections, including payment of the purchase
price for the Certificateholders' Interest pursuant to Section 2.06 or 10.01 of
the Agreement, payment of the purchase price for the Series 2003-4
Certificateholders' Interest pursuant to Section 7.01 of this Supplement and
proceeds from the sale, disposition or liquidation of Receivables pursuant to
Section 9.01 or 12.02 of the Agreement.

                                       14
<PAGE>

                  (c) Allocations to the Series 2003-4 Certificateholders. The
Servicer shall, prior to the close of business on each Deposit Date, allocate to
the Series 2003-4 Certificateholders the following amounts as set forth below:

                      (i) Allocations of Finance Charge Collections. The
                   Servicer shall allocate to the Series 2003-4
                   Certificateholders and retain in the Collection Account for
                   application as provided herein an amount equal to the product
                   of (A) the Floating Allocation Percentage and (B) the Series
                   2003-4 Allocation Percentage and (C) the aggregate amount of
                   Collections of Finance Charge Receivables deposited in the
                   Collection Account on such Deposit Date.

                      (ii) Allocations of Principal Collections. The Servicer
                   shall allocate to the Series 2003-4 Certificateholders the
                   following amounts as set forth below:

                           (x) Allocations During the Revolving Period. During
                      the Revolving Period (A) an amount equal to the product of
                      (I) the sum of the Class B Principal Percentage and the
                      Collateral Principal Percentage and (II) the Principal
                      Allocation Percentage and (III) the Series 2003-4
                      Allocation Percentage and (IV) the aggregate amount of
                      Collections of Principal Receivables deposited in the
                      Collection Account on such Deposit Date, shall be
                      allocated to the Series 2003-4 Certificateholders and
                      retained in the Collection Account until applied as
                      provided herein and (B) an amount equal to the product of
                      (I) the Class A Principal Percentage and (II) the
                      Principal Allocation Percentage and (III) the Series
                      2003-4 Allocation Percentage and (IV) the aggregate amount
                      of Collections of Principal Receivables deposited in the
                      Collection Account on such Deposit Date shall be allocated
                      to the Series 2003-4 Certificateholders and, to the extent
                      needed to make any distribution pursuant to subsection
                      4.05(d)(i), deposited in the Collection Account, and
                      otherwise first, if any other Principal Sharing Series is
                      outstanding and in its amortization period or accumulation
                      period, retained in the Collection Account for
                      application, to the extent necessary, as Shared Principal
                      Collections on the related Distribution Date, and second
                      paid to the Holders of the Transferor Certificates;
                      provided, however, that such amount to be paid to the
                      Holders of the Transferor Certificates on any Deposit Date
                      shall be paid to such Holders only if the Transferor
                      Amount on such Deposit Date is greater than the Required
                      Transferor Amount (after giving effect to all Principal
                      Receivables transferred to the Trust on such day) and
                      otherwise shall be deposited in the Special Funding
                      Account.

                           (y) Allocations During the Controlled Accumulation
                      Period. During the Controlled Accumulation Period (A) an
                      amount equal to the product of (I) the sum of the Class B
                      Principal Percentage and the Collateral Principal
                      Percentage and (II) the Principal Allocation Percentage
                      and (III) the Series 2003-4 Allocation Percentage and (IV)
                      the aggregate amount of Collections of Principal
                      Receivables deposited in the Collection Account on such
                      Deposit Date, shall be allocated to the Series 2003-4
                      Certificateholders and retained in the Collection Account
                      until applied as provided herein and (B) an amount equal
                      to the product of (I) the Class A Principal Percentage and
                      (II) the Principal Allocation Percentage and (III) the
                      Series 2003-4 Allocation Percentage and (IV) the aggregate
                      amount of Collections of Principal Receivables deposited
                      in the Collection Account on such Deposit Date (the
                      product specified in this clause (B) for any such date is
                      hereinafter referred to as a "Percentage Allocation")

                                       15
<PAGE>

                      shall be allocated to the Series 2003-4 Certificateholders
                      and retained in the Collection Account until applied as
                      provided herein; provided, however, that if the sum of
                      such Percentage Allocation and all preceding Percentage
                      Allocations with respect to the same Monthly Period
                      exceeds the Controlled Deposit Amount during the
                      Controlled Accumulation Period for the related
                      Distribution Date, then such excess shall not be treated
                      as a Percentage Allocation and shall be first, if any
                      other Principal Sharing Series is outstanding and in its
                      amortization period or accumulation period, retained in
                      the Collection Account for application, to the extent
                      necessary, as Shared Principal Collections on the related
                      Distribution Date, and second paid to the Holders of the
                      Transferor Certificates only if the Transferor Amount on
                      such Deposit Date is greater than the Required Transferor
                      Amount (after giving effect to all Principal Receivables
                      transferred to the Trust on such day) and otherwise shall
                      be deposited in the Special Funding Account.

                           (z) Allocations During the Early Amortization Period.
                      During the Early Amortization Period, an amount equal to
                      the product of (A) the Principal Allocation Percentage and
                      (B) the Series 2003-4 Allocation Percentage and (C) the
                      aggregate amount of Collections of Principal Receivables
                      deposited in the Collection Account on such Deposit Date,
                      shall be allocated to the Series 2003-4 Certificateholders
                      and retained in the Collection Account until applied as
                      provided herein; provided, however, that after the date on
                      which an amount of such Collections equal to the Adjusted
                      Invested Amount has been deposited into the Collection
                      Account and allocated to the Series 2003-4
                      Certificateholders, the remainder that has not been so
                      deposited and allocated shall be first, if any other
                      Principal Sharing Series is outstanding and in its
                      amortization period or accumulation period, retained in
                      the Collection Account for application, to the extent
                      necessary, as Shared Principal Collections on the related
                      Distribution Date, and second paid to the Holders of the
                      Transferor Certificates only if the Transferor Amount on
                      such date is greater than the Required Transferor Amount
                      (after giving effect to all Principal Receivables
                      transferred to the Trust on such day) and otherwise shall
                      be deposited in the Special Funding Account.

                  Section 4.02. Determination of Monthly Interest.

                  (a) The amount of monthly interest ("Class A Monthly
Interest") distributable from the Collection Account with respect to the Class A
Certificates on any Distribution Date shall be an amount equal to one-twelfth of
the product of (i) the Class A Certificate Rate for such Distribution Date and
(ii) the outstanding principal balance of the Class A Certificates as of the
close of business on the immediately preceding Record Date; provided that Class
A Monthly Interest for the first Distribution Date shall be an amount equal to
$745,543.50.

                  On the Determination Date preceding each Distribution Date,
the Servicer shall determine the excess, if any (the "Class A Interest
Shortfall"), of (x) the Class A Monthly Interest for such Distribution Date over
(y) the aggregate amount of funds allocated and available to pay such Class A
Monthly Interest on such Distribution Date. If the Class A Interest Shortfall
with respect to any Distribution Date is greater than zero, on each subsequent
Distribution Date until such Class A Interest Shortfall is fully paid, an
additional amount ("Class A Additional Interest") equal to one-twelfth of the
product of (i) the sum of (x) the Class A Certificate Rate and (y) 2.0% per
annum and (ii) such Class A Interest Shortfall (or the portion thereof which has
not been paid to the Class A Certificateholders) shall be payable as provided
herein with respect to the Class A Certificates. Notwithstanding anything to the
contrary herein, Class A Additional Interest shall be payable or distributed to
the Class A Certificateholders only to the extent permitted by applicable law.

                                       16
<PAGE>

                  (b) The amount of monthly interest ("Class B Monthly
Interest") distributable from the Collection Account with respect to the Class B
Certificates on any Distribution Date shall be an amount equal to one-twelfth of
the product of (i) the Class B Certificate Rate for such Distribution Date and
(ii) the Class B Invested Amount as of the close of business on the immediately
preceding Record Date; provided that Class B Monthly Interest for the first
Distribution Date shall be an amount equal to $58,140.00.

                  On the Determination Date preceding each Distribution Date,
the Servicer shall determine the excess, if any (the "Class B Interest
Shortfall"), of (x) the Class B Monthly Interest for such Distribution Date over
(y) the aggregate amount of funds allocated and available to pay such Class B
Monthly Interest on such Distribution Date. If the Class B Interest Shortfall
with respect to any Distribution Date is greater than zero, on each subsequent
Distribution Date until such Class B Interest Shortfall is fully paid, an
additional amount ("Class B Additional Interest") equal to one-twelfth of the
product of (i) the sum of (x) the Class B Certificate Rate and (y) 2.0% per
annum and (ii) such Class B Interest Shortfall (or the portion thereof which has
not been paid to the Class B Certificateholders) shall be payable as provided
herein with respect to the Class B Certificates. Notwithstanding anything to the
contrary herein, Class B Additional Interest shall be payable or distributed to
the Class B Certificateholders only to the extent permitted by applicable law.

                  (c) The amount of monthly interest ("Collateral Monthly
Interest") distributable from the Collection Account with respect to the
Collateral Invested Amount on any Distribution Date shall be an amount equal to
the product of (i) (A) a fraction, the numerator of which is the actual number
of days in the period from (and including) the immediately preceding
Distribution Date (or in the case of the first Distribution Date, the Closing
Date) to (but excluding) such Distribution Date and the denominator of which is
360, (B) the Collateral Rate in effect with respect to the period from (and
including) the immediately preceding Distribution Date (or in the case of the
first Distribution Date, the Closing Date) to (but excluding) such Distribution
Date, and (ii) the Collateral Invested Amount as of the close of business on the
last day of the preceding Monthly Period; provided, however, with respect to the
first Distribution Date, Collateral Monthly Interest shall be equal to the
interest accrued on the Collateral Initial Invested Amount at the Collateral
Rate for the period from the Closing Date to but excluding the first
Distribution Date.

                  On the Determination Date preceding each Distribution Date,
the Servicer shall determine an amount (the "Collateral Interest Shortfall")
equal to (x) the aggregate Collateral Monthly Interest for such Distribution
Date minus (y) the aggregate amount of funds allocated and available to pay such
Collateral Monthly Interest on such Distribution Date. If the Collateral
Interest Shortfall with respect to any Distribution Date is greater than zero,
on each subsequent Distribution Date until such Collateral Interest Shortfall is
fully paid, an additional amount ("Collateral Additional Interest") shall be
payable as provided herein with respect to the Collateral Invested Amount equal
to the product of (i) (A) a fraction, the numerator of which is the actual
number of days in the period from (and including) the immediately preceding
Distribution Date to (but excluding) such Distribution Date and the denominator
of which is 360, (B) the Collateral Rate in effect during the period from (and
including) the immediately preceding Distribution Date to (but excluding) such
Distribution Date, and (ii) such Collateral Interest Shortfall (or the portion
thereof which has not been paid to the Collateral Interest Holder).
Notwithstanding anything to the contrary herein, Collateral Additional Interest
shall be payable or distributed to the Collateral Interest Holder only to the
extent permitted by applicable law.

                                       17
<PAGE>

                  Section 4.03. Principal Funding Account; Controlled
Accumulation Period.

                  (a) (i) The Servicer, for the benefit of the Series 2003-4
Certificateholders, shall establish and maintain in the name of the Trustee, on
behalf of the Trust, an Eligible Deposit Account (the "Principal Funding
Account"), bearing a designation clearly indicating that the funds deposited
therein are held for the benefit of the Series 2003-4 Certificateholders. The
Principal Funding Account shall initially be established with The Bank of New
York.

                      (ii) At the written direction of the Servicer, funds on
deposit in the Principal Funding Account shall be invested by the Trustee in
Eligible Investments selected by the Servicer. All such Eligible Investments
shall be held by the Trustee for the benefit of the Series 2003-4
Certificateholders; provided that on each Distribution Date all interest and
other investment income (net of losses and investment expenses) ("Principal
Funding Account Investment Proceeds") on funds on deposit therein shall be
applied as set forth in paragraph (iii) below. Funds on deposit in the Principal
Funding Account shall be invested in Eligible Investments that will mature so
that such funds will be available at the close of business on the Transfer Date
preceding the following Distribution Date. Unless the Servicer directs
otherwise, funds deposited in the Principal Funding Account on a Transfer Date
(which immediately precedes a Payment Date) upon the maturity of any Eligible
Investments are not required to be invested overnight. No such Eligible
Investment shall be disposed of prior to its maturity; provided, however, that
the Trustee may sell, liquidate or dispose of any such Eligible Investment
before its maturity, at the written direction of the Servicer, if such sale,
liquidation or disposal would not result in a loss of all or part of the
principal portion of such Eligible Investment or if, prior to the maturity of
such Eligible Investment, a default occurs in the payment of principal, interest
or any other amount with respect to such Eligible Investment.

                      (iii) On each Distribution Date with respect to the
Controlled Accumulation Period, the Servicer shall direct the Trustee in writing
to withdraw from the Principal Funding Account and deposit into the Collection
Account all Principal Funding Account Investment Proceeds then on deposit in the
Principal Funding Account and such Principal Funding Account Investment Proceeds
shall be treated as a portion of Class A Available Funds and Class B Available
Funds.

                      (iv) Reinvested interest and other investment income on
funds deposited in the Principal Funding Account shall not be considered to be
principal amounts on deposit therein for purposes of this Supplement.

                  (b) (i) The Trustee shall possess all right, title and
interest in all funds on deposit from time to time in the Principal Funding
Account and in all proceeds thereof. The Principal Funding Account shall be
under the sole dominion and control of the Trustee for the benefit of the Series
2003-4 Certificateholders. If, at any time, the Principal Funding Account ceases
to be an Eligible Deposit Account, the Trustee (or the Servicer on its behalf)
shall within 10 Business Days (or such longer period, not to exceed 30 calendar
days, as to which each Rating Agency may consent) establish a new Principal
Funding Account meeting the conditions specified in paragraph (a)(i) above as an
Eligible Deposit Account and shall transfer any cash or any investments to such
new Principal Funding Account.

                      (ii) Pursuant to the authority granted to the Servicer in
subsection 3.01(b) of the Agreement, the Servicer shall have the power to make
withdrawals and payments or to instruct the Trustee to make withdrawals and
payments from the Principal Funding Account for the purposes of carrying out the
Servicer's or Trustee's duties hereunder. Pursuant to the authority granted to
the Paying Agent in Section 5.01 of this Supplement and Section 6.07 of the
Agreement, the Paying Agent shall have the power to withdraw funds from the
Principal Funding Account for the purpose of making distributions to the Series
2003-4 Certificateholders.

                                       18
<PAGE>

                  (c) The Controlled Accumulation Period is scheduled to
commence at the close of business on the last day of the May 2005 Monthly
Period; provided, however, that if the Controlled Accumulation Period Length
(which shall be determined as described below) is less than 12 months, the date
on which the Controlled Accumulation Period actually commences will be delayed
to the close of business on the last day of the month preceding the month that
is the number of months prior to the Expected Final Payment Date at least equal
to the Controlled Accumulation Period Length and, as a result, the number of
Monthly Periods in the Controlled Accumulation Period will at least equal the
Controlled Accumulation Period Length. On the Determination Date immediately
preceding the May 2005 Distribution Date, and on each Determination Date
thereafter that occurs prior to the Determination Date occurring in the Monthly
Period in which the Controlled Accumulation Period commences, the Servicer will
determine the "Controlled Accumulation Period Length" which will equal the
number of months such that the sum of the Controlled Accumulation Period Factors
for each month during such period will be equal to or greater than the Required
Accumulation Factor Number; provided, however, that the Controlled Accumulation
Period Length shall not be less than one month. Notwithstanding the foregoing,
if the Controlled Accumulation Period Length shall have been determined to be
less than 12 months and, after the date on which such determination is made, a
Pay-Out Event or Reinvestment Event (as those terms are defined in the
Supplement for such Series) shall occur with respect to any outstanding
Principal Sharing Series other than Series 2003-4, the Controlled Accumulation
Period will commence on the earlier of (i) the first day of the Monthly Period
immediately succeeding the date that such Pay-Out Event or Reinvestment Event
shall have occurred with respect to such Series and (ii) the date on which the
Controlled Accumulation Period is then scheduled to commence.

                  Section 4.04. Required Amount.

                  (a) With respect to each Distribution Date, on the related
Determination Date, the Servicer shall determine the amount (the "Class A
Required Amount"), if any, by which (x) the sum of (i) Class A Monthly Interest
for such Distribution Date, (ii) any Class A Monthly Interest previously due but
not paid to the Class A Certificateholders on a prior Distribution Date, (iii)
any Class A Additional Interest for such Distribution Date and (iv) any Class A
Additional Interest previously due but not paid to the Class A
Certificateholders on a prior Distribution Date, (v) if TRS or an Affiliate of
TRS is no longer the Servicer, the Class A Servicing Fee for such Distribution
Date, (vi) if TRS or an Affiliate of TRS is no longer the Servicer, any Class A
Servicing Fee previously due but not paid to the Servicer, and (vii) the Class A
Investor Default Amount, if any, for such Distribution Date exceeds (y) the
Class A Available Funds. In the event that the difference between (x) the Class
A Required Amount for such Distribution Date and (y) the amount of Excess Spread
and Excess Finance Charge Collections applied with respect thereto pursuant to
subsection 4.07(a) on such Distribution Date is greater than zero, the Servicer
shall give written notice to the Trustee of such excess Class A Required Amount
on the date of computation.

                  (b) With respect to each Distribution Date, on the related
Determination Date, the Servicer shall determine the amount (the "Class B
Required Amount"), if any, equal to the sum of (x) the amount, if any, by which
(A) the sum of (i) Class B Monthly Interest for such Distribution Date, (ii) any
Class B Monthly Interest previously due but not paid to the Class B
Certificateholders, (iii) Class B Additional Interest, if any, for such
Distribution Date, (iv) any Class B Additional Interest previously due but not
paid to the Class B Certificateholders on a prior Distribution Date, (v) if TRS
or an Affiliate of TRS is no longer the Servicer, the Class B Servicing Fee for
such Distribution Date and (vi) if TRS or an Affiliate of TRS is no longer the
Servicer, any Class B Servicing Fee previously due but not paid to the Servicer
exceeds (B) the Class B Available Funds and (y) the Class B Investor Default
Amount for such Distribution Date. In the event that the difference between (x)
the Class B Required Amount for such Distribution Date and (y) the amount of
Excess Spread and Excess Finance Charge Collections applied with respect thereto
pursuant to subsection 4.07(c) on such Distribution Date is greater than zero,
the Servicer shall give written notice to the Trustee of such excess Class B
Required Amount on the date of computation.

                                       19
<PAGE>

                  Section 4.05. Application of Class A Available Funds, Class B
Available Funds, Collateral Available Funds and Available Principal Collections.
The Servicer shall apply, or shall cause the Trustee to apply by written
instruction to the Trustee, on each Distribution Date, Class A Available Funds,
Class B Available Funds, Collateral Available Funds and Available Principal
Collections on deposit in the Collection Account with respect to such
Distribution Date to make the following distributions:

                  (a) On each Distribution Date, an amount equal to the Class A
Available Funds with respect to such Distribution Date will be distributed or
deposited in the following priority:

                      (i) an amount equal to Class A Monthly Interest for such
                   Distribution Date, plus the amount of any Class A Monthly
                   Interest previously due but not distributed to Class A
                   Certificateholders on a prior Distribution Date, plus the
                   amount of any Class A Additional Interest for such
                   Distribution Date and any Class A Additional Interest
                   previously due but not distributed to Class A
                   Certificateholders on a prior Distribution Date, shall be
                   distributed to the Paying Agent for payment to the Class A
                   Certificateholders;

                      (ii) if TRS or an Affiliate of TRS is no longer the
                   Servicer, an amount equal to the Class A Servicing Fee for
                   such Distribution Date, plus the amount of any Class A
                   Servicing Fee previously due but not distributed to the
                   Servicer on a prior Distribution Date, shall be distributed
                   to the Servicer (unless such amount has been netted against
                   deposits to the Collection Account in accordance with Section
                   4.03 of the Agreement);

                      (iii) an amount equal to the Class A Investor Default
                   Amount for such Distribution Date shall be treated as a
                   portion of Available Principal Collections for such
                   Distribution Date; and

                      (iv) the balance, if any, shall constitute Excess Spread
                   and shall be allocated and distributed or deposited as set
                   forth in Section 4.07.

                  (b) On each Distribution Date, an amount equal to the Class B
Available Funds with respect to such Distribution Date will be distributed or
deposited in the following priority:

                      (i) an amount equal to Class B Monthly Interest for such
                  Distribution Date, plus the amount of any Class B Monthly
                  Interest previously due but not distributed to Class B
                  Certificateholders on a prior Distribution Date, plus the
                  amount of any Class B Additional Interest for such
                  Distribution Date and any Class B Additional Interest
                  previously due but not distributed to Class B
                  Certificateholders on a prior Distribution Date, shall be
                  distributed to the Paying Agent for payment to the Class B
                  Certificateholders;

                      (ii) if TRS or an Affiliate of TRS is no longer the
                  Servicer, an amount equal to the Class B Servicing Fee for
                  such Distribution Date, plus the amount of any Class B
                  Servicing Fee previously due but not distributed to the
                  Servicer on a prior Distribution Date, shall be distributed to
                  the Servicer (unless such amount has been netted against
                  deposits to the Collection Account in accordance with Section
                  4.03 of the Agreement); and

                                       20
<PAGE>

                      (iii) the balance, if any, shall constitute Excess Spread
                  and shall be allocated and distributed or deposited as set
                  forth in Section 4.07.

                  (c) On each Distribution Date, an amount equal to the
Collateral Available Funds with respect to such Distribution Date will be
distributed or deposited in the following priority:

                      (i) if TRS or an Affiliate of TRS is no longer the
                  Servicer, an amount equal to the Collateral Servicing Fee for
                  such Distribution Date, plus the amount of any Collateral
                  Servicing Fee previously due but not distributed to the
                  Servicer on a prior Distribution Date, shall be distributed to
                  the Servicer (unless such amount has been netted against
                  deposits to the Collection Account in accordance with Section
                  4.03 of the Agreement); and

                      (ii) the balance, if any, shall constitute Excess Spread
                  and shall be allocated and distributed or deposited as set
                  forth in Section 4.07.

                  (d) On each Distribution Date with respect to the Revolving
Period, an amount equal to the Available Principal Collections deposited in the
Collection Account for the related Monthly Period shall be distributed in the
following order of priority:

                      (i) an amount equal to the excess, if any, of the
                  Collateral Invested Amount over the Required Collateral
                  Invested Amount shall be paid to the Collateral Interest
                  Holder for application in accordance with the Loan Agreement;
                  and

                      (ii) the balance of such Available Principal Collections
                  shall be treated as Shared Principal Collections and applied
                  in accordance with Section 4.04 of the Agreement.

                  (e) On each Distribution Date with respect to the Controlled
Accumulation Period, an amount equal to the Available Principal Collections
deposited in the Collection Account for the related Monthly Period shall be
distributed in the following order of priority:

                      (i) an amount equal to the lesser of (x) the Controlled
                  Deposit Amount and (y) the sum of the Class A Adjusted
                  Invested Amount and the Class B Adjusted Invested Amount shall
                  be deposited in the Principal Funding Account;

                      (ii) for each Distribution Date prior to the Distribution
                  Date on which the Class B Invested Amount is paid in full,
                  after giving effect to paragraph (i) above, an amount equal to
                  the balance, if any, of such Available Principal Collections
                  shall be paid to the Collateral Interest Holder for
                  application in accordance with the Loan Agreement to the
                  extent the Collateral Invested Amount exceeds the Required
                  Collateral Invested Amount;

                      (iii) for each Distribution Date beginning on the
                  Distribution Date on which the Class B Invested Amount shall
                  have been paid in full, an amount up to the Collateral
                  Invested Amount shall be paid to the Collateral Interest
                  Holder for application in accordance with the Loan Agreement;
                  and

                                       21
<PAGE>

                      (iv) the balance of such Available Principal Collections
                  shall be treated as Shared Principal Collections and applied
                  in accordance with Section 4.04 of the Agreement.

                  (f) On each Distribution Date with respect to the Early
Amortization Period, an amount equal to Available Principal Collections
deposited in the Collection Account for the related Monthly Period shall be
distributed or deposited in the following order of priority:

                      (i) an amount up to the Class A Adjusted Invested Amount
                  on such Distribution Date shall be deposited in the Principal
                  Funding Account for distribution to the Class A
                  Certificateholders;

                      (ii) for each Distribution Date beginning on the
                  Distribution Date on which the Class A Invested Amount is paid
                  in full, an amount up to the Class B Adjusted Invested Amount
                  on such Distribution Date shall be deposited in the Principal
                  Funding Account for distribution to the Class B
                  Certificateholders;

                      (iii) for each Distribution Date beginning on the
                  Distribution Date on which the Class B Invested Amount is paid
                  in full, an amount up to the Collateral Invested Amount on
                  such Distribution Date shall be paid to the Collateral
                  Interest Holder for application in accordance with the Loan
                  Agreement; and

                      (iv) for each Distribution Date, after giving effect to
                  paragraphs (i), (ii) and (iii) above, an amount equal to the
                  balance, if any, of such Available Principal Collections will
                  be treated as Shared Principal Collections and applied in
                  accordance with Section 4.04 of the Agreement.

                  Section 4.06. Defaulted Amounts; Investor Charge-Offs.

                  (a) On each Determination Date, the Servicer shall calculate
the Class A Investor Default Amount, if any, for the related Distribution Date.
If, on any Distribution Date, the Class A Required Amount for the related
Monthly Period exceeds the sum of (x) the amount of Reallocated Principal
Collections allocated to Series 2003-4 with respect to such Monthly Period and
(y) the amount of Excess Spread and the Excess Finance Charge Collections
allocable to Series 2003-4 with respect to such Monthly Period, the Collateral
Invested Amount, if any, will be reduced by the amount of such excess, but not
by more than the Class A Investor Default Amount for such Distribution Date. In
the event that such reduction would cause the Collateral Invested Amount to be a
negative number, the Collateral Invested Amount will be reduced to zero and the
Class B Invested Amount shall be reduced by the amount by which the Collateral
Invested Amount would have been reduced below zero, but not by more than the
excess, if any, of the Class A Investor Default Amount for such Distribution
Date over the amount of such reduction, if any, of the Collateral Invested
Amount with respect to such Distribution Date. In the event that such reduction
would cause the Class B Invested Amount to be a negative number, the Class B
Invested Amount shall be reduced to zero, and the Class A Invested Amount shall
be reduced by the amount by which the Class B Invested Amount would have been
reduced below zero, but not by more than the excess, if any, of the Class A
Investor Default Amount for such Distribution Date over the aggregate amount of
the reductions, if any, of the Collateral Invested Amount and the Class B
Invested Amount for such Distribution Date (a "Class A Investor Charge-Off").
Class A Investor Charge-Offs shall thereafter be reimbursed and the Class A
Invested Amount increased (but not by an amount in excess of the aggregate
unreimbursed Class A Investor Charge-Offs) on any Distribution Date by the
amount of Excess Spread and Excess Finance Charge Collections allocated and
available for that purpose pursuant to subsection 4.07(b). References to
"negative numbers" above shall be determined without regard to the requirement
that the Invested Amount of a Class not be reduced below zero.

                                       22
<PAGE>

                  (b) On each Determination Date, the Servicer shall calculate
the Class B Investor Default Amount, if any, for the related Distribution Date.
If, on any Distribution Date, the Class B Required Amount for such Distribution
Date exceeds the sum of (x) the amount of Excess Spread and Excess Finance
Charge Collections allocated to Series 2003-4 with respect to the related
Monthly Period which are allocated and available to pay such amount pursuant to
subsection 4.07(c) and (y) the Reallocated Principal Collections allocable to
the Collateral Interest and not required to pay the Class A Required Amount with
respect to such Distribution Date, then the Collateral Invested Amount shall be
reduced by the amount of such excess. In the event that such reduction would
cause the Collateral Invested Amount to be a negative number, the Collateral
Invested Amount shall be reduced to zero, and the Class B Invested Amount shall
be reduced by the amount by which the Collateral Invested Amount would have been
reduced below zero, but not by more than the excess, if any, of the Class B
Investor Default Amount for such Distribution Date over the amount of such
reduction, if any, of the Collateral Invested Amount with respect to such
Distribution Date (a "Class B Investor Charge-Off"). Class B Investor
Charge-Offs shall thereafter be reimbursed and the Class B Invested Amount
increased (but not by an amount in excess of the aggregate unreimbursed Class B
Investor Charge-Offs) on any Distribution Date by the amount of Excess Spread
and Excess Finance Charge Collections allocated and available for that purpose
pursuant to subsection 4.07(e). References to "negative numbers" above shall be
determined without regard to the requirement that the Invested Amount of a Class
not be reduced below zero.

                  (c) On each Determination Date, the Servicer shall calculate
the Collateral Default Amount. If on any Distribution Date the Collateral
Default Amount for the previous Monthly Period exceeds the amount of Excess
Spread and Excess Finance Charge Collections allocated to Series 2003-4 with
respect to the related Monthly Period which are allocated and available to pay
such amount pursuant to subsection 4.07(h), the Collateral Invested Amount will
be reduced by the amount of such excess but not by more than the lesser of the
Collateral Default Amount and the Collateral Invested Amount for such
Distribution Date (a "Collateral Charge-Off"). The Collateral Invested Amount
will be reimbursed after any reduction pursuant to this Section 4.06 on any
Distribution Date by the amount of Excess Spread and Excess Finance Charge
Collections allocated and available on such Distribution date for that purpose
as described under subsection 4.07(i).

                  Section 4.07. Excess Spread; Excess Finance Charge
Collections. The Servicer shall apply, or shall cause the Trustee to apply by
written instruction to the Trustee, on each Distribution Date, Excess Spread and
Excess Finance Charge Collections allocated to Series 2003-4 with respect to the
related Monthly Period, to make the following distributions or deposits in the
following order of priority:

                  (a) an amount equal to the Class A Required Amount, if any,
with respect to such Distribution Date shall be distributed by the Trustee to
fund the Class A Required Amount in accordance with, and in the priority set
forth in, subsections 4.05(a)(i), (ii) and (iii);

                  (b) an amount equal to the aggregate amount of Class A
Investor Charge-Offs which have not been previously reimbursed shall be treated
as a portion of Available Principal Collections for such Distribution Date;

                  (c) an amount equal to interest on the aggregate outstanding
principal balance of the Class B Certificates not otherwise distributed to the
Class B Certificateholders pursuant to Section 4.05(b)(i), at a rate per annum
equal to the Class B Certificate Rate, shall be distributed to the Class B
Certificateholders, except that interest previously due but not paid will accrue
interest at a rate per annum equal to the Class B Certificate Rate plus 2% per
annum;

                                       23
<PAGE>

                  (d) an amount equal to the Class B Required Amount, if any,
with respect to such Distribution Date will be (i) used to fund the Class B
Required Amount and be applied in accordance with subsection 4.05(b)(ii), and
then (ii) an amount up to the Class B Investor Default Amount will be treated
and applied as Available Principal Collections for such Distribution Date;

                  (e) an amount equal to the aggregate amount by which the Class
B Invested Amount has been reduced pursuant to clauses (c), (d) and (e) of the
definition of "Class B Invested Amount" in Section 2.01 of this Supplement (but
not in excess of the aggregate amount of such reductions which have not been
previously reimbursed) shall be treated as a portion of Available Principal
Collections for such Distribution Date;

                  (f) an amount equal to Collateral Monthly Interest for such
Distribution Date, plus the amount of any Collateral Monthly Interest previously
due but not distributed to the Collateral Interest Holder on a prior
Distribution Date, plus the amount of any Collateral Additional Interest for
such Distribution Date and any Collateral Additional Interest previously due but
not distributed to the Collateral Interest Holder on a prior Distribution Date,
shall be distributed to the Collateral Interest Holder for application in
accordance with the Loan Agreement;

                  (g) an amount equal to the Monthly Servicing Fee for such
Distribution Date that has not been paid to the Servicer and any Monthly
Servicing Fee due but not paid to the Servicer on a prior Distribution Date
shall be paid to the Servicer;

                  (h) an amount equal to the Collateral Default Amount, if any,
for such Distribution Date shall be treated as a portion of Available Principal
Collections for such Distribution Date;

                  (i) an amount equal to the aggregate amount by which the
Collateral Invested Amount has been reduced pursuant to clauses (c), (d) and (e)
of the definition of "Collateral Invested Amount" (but not in excess of the
aggregate amount of such reductions which have not been previously reimbursed)
shall be treated as a portion of Available Principal Collections for such
Distribution Date;

                  (j) on each Distribution Date from and after the Reserve
Account Funding Date, but prior to the date on which the Reserve Account
terminates pursuant to subsection 4.12(f), an amount up to the excess, if any,
of the Required Reserve Account Amount over the Available Reserve Account Amount
shall be deposited into the Reserve Account;

                  (k) an amount equal to the aggregate of any other amounts then
required to be applied pursuant to the Loan Agreement (to the extent such
amounts are required to be applied pursuant to the Loan Agreement out of Excess
Spread and Excess Finance Charge Collections) shall be distributed to the
Collateral Interest Holder for application in accordance with the Loan
Agreement; and

                  (l) the balance, if any, will constitute a portion of Excess
Finance Charge Collections for such Distribution Date and will be available for
allocation to other Series or to the Holders of the Transferor Certificates as
described in Section 4.05 of the Agreement.

                  Section 4.08. Reallocated Principal Collections. On each
Distribution Date, the Servicer shall apply, or shall cause the Trustee to
apply, Reallocated Principal Collections with respect to such Distribution Date,
to make the following distributions or deposits in the following order of
priority:

                  (a) an amount equal to the excess, if any, of (i) the Class A
Required Amount, if any, with respect to such Distribution Date over (ii) the
amount of Excess Spread and Excess Finance Charge Collections allocated to
Series 2003-4 with respect to the related Monthly Period shall be distributed by
the Trustee to fund any deficiency pursuant to and in the priority set forth in
subsections 4.05(a)(i), (ii) and (iii); and

                                       24
<PAGE>

                  (b) an amount equal to the excess, if any, of (i) the Class B
Required Amount, if any, with respect to such Distribution Date over (ii) the
amount of Excess Spread and Excess Finance Charge Collections allocated and
available to the Class B Certificates pursuant to subsections 4.07(c) and (d) on
such Distribution Date shall be applied first to fund any deficiency pursuant to
subsections 4.05(b)(i) and (ii) and then to fund any deficiency pursuant to and
in the priority set forth in subsections 4.07(c) and (d).

                  On each Distribution Date, the Collateral Invested Amount
shall be reduced by the amount of Reallocated Principal Collections for such
Distribution Date. In the event that such reduction would cause the Collateral
Invested Amount (after giving effect to any Collateral Charge-Offs for such
Distribution Date) to be a negative number, the Collateral Invested Amount
(after giving effect to any Collateral Charge-Offs for such Distribution Date)
shall be reduced to zero and the Class B Invested Amount shall be reduced by the
amount by which the Collateral Invested Amount would have been reduced below
zero. In the event that the reallocation of Reallocated Principal Collections
would cause the Class B Invested Amount (after giving effect to any Class B
Investor Charge-Offs for such Distribution Date) to be a negative number on any
Distribution Date, Reallocated Principal Collections shall be reallocated on
such Distribution Date in an aggregate amount not to exceed the amount which
would cause the Class B Invested Amount (after giving to any Class B Investor
Charge-Offs for such Distribution Date) to be reduced to zero. References to
"negative numbers" above shall be determined without regard to the requirement
that the Invested Amount of a Class not be reduced below zero.

                  Section 4.09. Excess Finance Charge Collections. Series 2003-4
shall be an Excess Allocation Series. Subject to Section 4.05 of the Agreement,
Excess Finance Charge Collections with respect to the Excess Allocation Series
for any Distribution Date will be allocated to Series 2003-4 in an amount equal
to the product of (x) the aggregate amount of Excess Finance Charge Collections
with respect to all the Excess Allocation Series for such Distribution Date and
(y) a fraction, the numerator of which is the Finance Charge Shortfall for
Series 2003-4 for such Distribution Date and the denominator of which is the
aggregate amount of Finance Charge Shortfalls for all the Excess Allocation
Series for such Distribution Date. The "Finance Charge Shortfall" for Series
2003-4 for any Distribution Date will be equal to the excess, if any, of (a) the
full amount required to be paid, without duplication, pursuant to subsections
4.05(a), 4.05(b) and 4.05(c) and subsections 4.07(a) through (k) on such
Distribution Date over (b) the sum of (i) the Reallocated Investor Finance
Charge Collections, (ii) if such Monthly Period relates to a Distribution Date
with respect to the Controlled Accumulation Period or Early Amortization Period,
the amount of Principal Funding Account Investment Proceeds, if any, with
respect to such Distribution Date and (iii) the amount of funds, if any, to be
withdrawn from the Reserve Account which, pursuant to subsection 4.12(d), are
required to be included in Class A Available Funds with respect to such
Distribution Date.

                  Section 4.10. Reallocated Investor Finance Charge Collections.

                  (a) That portion of Group I Investor Finance Charge
Collections for any Distribution Date equal to the amount of Reallocated
Investor Finance Charge Collections for such Distribution Date will be allocated
to Series 2003-4 and will be distributed as set forth in this Supplement.

                  (b) Reallocated Investor Finance Charge Collections with
respect to any Distribution Date shall equal the sum of (i) the aggregate amount
of Series 2003-4 Monthly Interest, Investor Default Amount, Series 2003-4
Monthly Fees and Series 2003-4 Additional Amounts for such Distribution Date and
(ii) that portion of excess Group I Investor Finance Charge Collections to be
included in Reallocated Investor Finance Charge Collections pursuant to
subsection (c) hereof; provided, however, that if the amount of Group I Investor
Finance Charge Collections for such Distribution Date is less than the sum of
(w) Group I Investor Monthly Interest, (x) Group I Investor Default Amount, (y)
Group I Investor Monthly Fees and (z) Group I Investor Additional Amounts, then
Reallocated Investor Finance Charge Collections shall equal the sum of the
following amounts for such Distribution Date:

                                       25
<PAGE>

                         (A) The product of (I) Group I Investor Finance Charge
                  Collections (up to the amount of Group I Investor Monthly
                  Interest) and (II) a fraction, the numerator of which is
                  Series 2003-4 Monthly Interest and the denominator of which is
                  Group I Investor Monthly Interest;

                         (B) the product of (I) Group I Investor Finance Charge
                  Collections less the amount of Group I Investor Monthly
                  Interest (up to the Group I Investor Default Amount) and (II)
                  a fraction, the numerator of which is the Investor Default
                  Amount and the denominator of which is the Group I Investor
                  Default Amount;

                         (C) the product of (I) Group I Investor Finance Charge
                  Collections less the amount of Group I Investor Monthly
                  Interest and the Group I Investor Default Amount (up to Group
                  I Investor Monthly Fees) and (II) a fraction, the numerator of
                  which is Series 2003-4 Monthly Fees and the denominator of
                  which is Group I Investor Monthly Fees; and

                         (D) the product of (I) Group I Investor Finance Charge
                  Collections less the sum of (i) Group I Investor Monthly
                  Interest, (ii) the Group I Investor Default Amount and (iii)
                  Group I Investor Monthly Fees and (II) a fraction, the
                  numerator of which is Series 2003-4 Additional Amounts and the
                  denominator of which is Group I Investor Additional Amounts.

                  (c) If the amount of Group I Investor Finance Charge
Collections for such Distribution Date exceeds the sum of (i) Group I Investor
Monthly Interest, (ii) Group I Investor Default Amount, (iii) Group I Investor
Monthly Fees and (iv) Group I Investor Additional Amounts, then Reallocated
Investor Finance Charge Collections for such Distribution Date shall include an
amount equal to the product of (x) the amount of such excess and (y) a fraction,
the numerator of which is the Invested Amount as of the last day of the second
preceding Monthly Period (or, for Series 2003-4 only, with respect to the first
Distribution Date, as of the Closing Date) and the denominator of which is the
sum of such Invested Amount and the aggregate invested amounts for all other
Series included in Group I as of such last day (or, for Series 2003-4 only, with
respect to the first Distribution Date, as of the Closing Date).

                  Section 4.11. Shared Principal Collections. Subject to Section
4.04 of the Agreement, Shared Principal Collections for any Distribution Date
will be allocated to Series 2003-4 in an amount equal to the product of (x) the
aggregate amount of Shared Principal Collections with respect to all Principal
Sharing Series for such Distribution Date and (y) a fraction, the numerator of
which is the Series 2003-4 Principal Shortfall for such Distribution Date and
the denominator of which is the aggregate amount of Principal Shortfalls for all
the Series which are Principal Sharing Series for such Distribution Date. The
"Series 2003-4 Principal Shortfall" will be equal to (a) for any Distribution
Date with respect to the Revolving Period, zero, (b) for any Distribution Date
with respect to the Controlled Accumulation Period, the excess, if any, of the
Controlled Deposit Amount with respect to such Distribution Date over the amount
of Available Principal Collections for such Distribution Date (excluding any
portion thereof attributable to Shared Principal Collections), and (c) for any
Distribution Date with respect to the Early Amortization Period, the excess, if
any, of the Invested Amount over the amount of Available Principal Collections
for such Distribution Date (excluding any portion thereof attributable to Shared
Principal Collections).

                                       26
<PAGE>

                  Section 4.12. Reserve Account.

                  (a) The Servicer shall establish and maintain, in the name of
the Trustee, on behalf of the Trust, for the benefit of the Class A
Certificateholders and the Collateral Interest Holder, an Eligible Deposit
Account (the "Reserve Account") bearing a designation clearly indicating that
the funds deposited therein are held for the benefit of the Class A
Certificateholders and the Collateral Interest Holder. The Reserve Account shall
initially be established with The Bank of New York. The Trustee shall possess
all right, title and interest in all funds on deposit from time to time in the
Reserve Account and in all proceeds thereof. The Reserve Account shall be under
the sole dominion and control of the Trustee for the benefit of the Class A
Certificateholders and the Collateral Interest Holder. If at any time the
Reserve Account ceases to be an Eligible Deposit Account, the Trustee (or the
Servicer on its behalf) shall within 10 Business Days (or such longer period,
not to exceed 30 calendar days, as to which each Rating Agency shall consent)
establish a new Reserve Account meeting the conditions specified above as an
Eligible Deposit Account, and shall transfer any cash or any investments to such
new Reserve Account. The Trustee, at the direction of the Servicer, shall (i)
make withdrawals from the Reserve Account from time to time in an amount up to
the Available Reserve Account Amount at such time, for the purposes set forth in
this Supplement, and (ii) on each Distribution Date (from and after the Reserve
Account Funding Date) prior to the termination of the Reserve Account make a
deposit into the Reserve Account in the amount specified in, and otherwise in
accordance with, subsection 4.07(j).

                  (b) Funds on deposit in the Reserve Account shall be invested
at the written direction of the Servicer by the Trustee in Eligible Investments.
Funds on deposit in the Reserve Account on any Transfer Date, after giving
effect to any withdrawals from the Reserve Account on such Transfer Date, shall
be invested in such investments that will mature so that such funds will be
available for withdrawal on or prior to the following Transfer Date. No such
Eligible Investment shall be disposed of prior to its maturity; provided,
however, that the Trustee may sell, liquidate or dispose of any such Eligible
Investment before its maturity, at the written direction of the Servicer, if
such sale, liquidation or disposal would not result in a loss of all or part of
the principal portion of such Eligible Investment or if, prior to the maturity
of such Eligible Investment, a default occurs in the payment of principal,
interest or any other amount with respect to such Eligible Investment. On each
Distribution Date, all interest and earnings (net of losses and investment
expenses) accrued since the preceding Distribution Date on funds on deposit in
the Reserve Account shall be retained in the Reserve Account (to the extent that
the Available Reserve Account Amount is less than the Required Reserve Account
Amount) and the balance, if any, shall be deposited in the Collection Account
and treated as collections of Finance Charge Receivables allocable to Series
2003-4. For purposes of determining the availability of funds or the balance in
the Reserve Account for any reason under this Supplement, except as otherwise
provided in the preceding sentence, investment earnings on such funds shall be
deemed not to be available or on deposit.

                  (c) On the Determination Date preceding each Distribution Date
with respect to the Controlled Accumulation Period and the first Special Payment
Date, the Servicer shall calculate the "Reserve Draw Amount" which shall be
equal to the excess, if any, of the Covered Amount with respect to such
Distribution Date or Special Payment Date over the Principal Funding Account
Investment Proceeds with respect to such Distribution Date or Special Payment
Date; provided, that such amount will be reduced to the extent that funds
otherwise would be available for deposit in the Reserve Account under subsection
4.07(j) with respect to such Distribution Date or Special Payment Date.

                  (d) In the event that for any Distribution Date the Reserve
Draw Amount is greater than zero, the Reserve Draw Amount, up to the Available
Reserve Account Amount, shall be withdrawn from the Reserve Account on the
related Transfer Date by the Trustee (acting in accordance with the instructions
of the Servicer), deposited into the Collection Account and included in Class A
Available Funds for such Distribution Date.

                                       27
<PAGE>

                  (e) In the event that the Reserve Account Surplus on any
Distribution Date, after giving effect to all deposits to and withdrawals from
the Reserve Account with respect to such Distribution Date, is greater than
zero, the Trustee, acting in accordance with the written instructions of the
Servicer, shall withdraw from the Reserve Account, and pay to the Collateral
Interest Holder for application in accordance with the Loan Agreement, an amount
equal to such Reserve Account Surplus.

                  (f) Upon the earliest to occur of (i) the day on which the
Invested Amount is paid in full to the Series 2003-4 Certificateholders, (ii) if
the Controlled Accumulation Period has not commenced, the occurrence of a
Pay-Out Event with respect to Series 2003-4, (iii) if the Controlled
Accumulation Period has commenced, the earlier of the first Special Payment Date
and the Expected Final Payment Date and (iv) the termination of the Trust
pursuant to the Agreement, the Trustee, acting in accordance with the
instructions of the Servicer, after the prior payment of all amounts owing to
the Class A Certificateholders which are payable from the Reserve Account as
provided herein, shall withdraw from the Reserve Account and pay to the
Collateral Interest Holder for application in accordance with the Loan Agreement
all amounts, if any, on deposit in the Reserve Account and the Reserve Account
shall be deemed to have terminated for purposes of this Supplement.

                  Section 4.13. Investment Instructions.

                  (a) Any investment instructions required to be given to the
Trustee pursuant to the terms hereof must be given to the Trustee no later than
10:30 a.m. (New York City time) on the date such investment is to be made. In
the event the Trustee receives such investment instruction later than such time,
the Trustee may, but shall have no obligation to, make such investment. In the
event the Trustee is unable to make an investment required in an investment
instruction received by the Trustee after 10:30 a.m. (New York City time) on
such day, such investment shall be made by the Trustee on the next succeeding
Business Day. In no event shall the Trustee be liable for any investment not
made pursuant to investment instructions received after 10:30 a.m. (New York
City time) on the day such investment is requested to be made.

                  (b) The Trustee shall hold each Eligible Investment that
constitutes investment property through a securities intermediary, which
securities intermediary shall agree with the Trustee that (i) such investment
property at all times shall be credited to a securities account of the Trustee,
(ii) all property credited to such securities account shall be treated as a
financial asset, (iii) such securities intermediary shall treat the Trustee as
entitled to exercise the rights that comprise each financial asset credited to
such securities account, (iv) such securities intermediary shall comply with
entitlement orders originated by the Trustee without the further consent of any
other person or entity, (v) such securities intermediary shall not agree with
any person or entity other than the Trustee to comply with entitlement orders
originated by any person or entity other than the Trustee, (vi) such securities
account and all property credited thereto shall not be subject to any lien,
security interest, right of set-off, or encumbrance in favor of such securities
intermediary or anyone claiming through such securities intermediary (other than
the Trustee), (vii) such agreement between such securities intermediary and the
Trustee shall be governed by the laws of the State of New York, and (viii) such
securities intermediary's jurisdiction for purposes of the Uniform Commercial
Code shall be the State of New York. The Trustee shall maintain possession of
each other Eligible Investment in the State of New York, separate and apart from
all other property held by the Trustee. Notwithstanding any other provision of
this Supplement, the Trustee shall not hold any Eligible Investment through an
agent except as expressly permitted by this Section 4.13(b). Each term used in
this Section 4.13(b) and defined in the New York Uniform Commercial Code shall
have the meaning set forth in the New York Uniform Commercial Code.

                                       28
<PAGE>

                                   ARTICLE V

                          Distributions and Reports to
                        Series 2003-4 Certificateholders

                  Section 5.01. Distributions.

                  (a) On each Distribution Date, the Paying Agent shall
distribute to each Class A Certificateholder of record on the related Record
Date (other than as provided in Section 12.02 of the Agreement) such Class A
Certificateholder's pro rata share of the amounts held by the Paying Agent that
are allocated and available on such Distribution Date to pay interest on the
Class A Certificates pursuant to this Supplement.

                  (b) On each Special Payment Date and on the Expected Final
Payment Date, the Paying Agent shall distribute (in accordance with the
Certificate delivered by the Servicer pursuant to Section 3.04(b) of the
Agreement) to each Class A Certificateholder of record on the related Record
Date (other than as provided in Section 12.02 of the Agreement) such Class A
Certificateholder's pro rata share of the amounts on deposit in the Principal
Funding Account or otherwise held by the Paying Agent that are allocated and
available on such date to pay principal of the Class A Certificates pursuant to
this Supplement up to a maximum amount on any such date equal to the Class A
Invested Amount on such date (unless there has been an optional repurchase of
the Series 2003-4 Certificateholders' Interest pursuant to Section 10.01 of the
Agreement, in which event the foregoing limitation will not apply).

                  (c) On each Distribution Date, the Paying Agent shall
distribute (in accordance with the Certificate delivered by the Servicer
pursuant to Section 3.04(b) of the Agreement) to each Class B Certificateholder
of record on the related Record Date (other than as provided in Section 12.02 of
the Agreement) such Class B Certificateholder's pro rata share of the amounts
held by the Paying Agent that are allocated and available on such Distribution
Date to pay interest on the Class B Certificates pursuant to this Supplement.

                  (d) On each Special Payment Date, and on the Expected Final
Payment Date, the Paying Agent shall distribute (in accordance with the
Certificate delivered by the Servicer pursuant to Section 3.04(b) of the
Agreement) to each Class B Certificateholder of record on the related Record
Date (other than as provided in Section 12.02 of the Agreement) such Class B
Certificateholder's pro rata share of the amounts on deposit in the Principal
Funding Account or otherwise held by the Paying Agent that are allocated and
available on such date to pay principal of the Class B Certificates pursuant to
this Supplement up to a maximum amount on any such date equal to the Class B
Invested Amount on such date (unless there has been an optional repurchase of
the Series 2003-4 Certificateholders' Interest pursuant to Section 10.01 of the
Agreement, in which event the foregoing limitation will not apply).

                  (e) The distributions to be made pursuant to this Section 5.01
are subject to the provisions of Sections 2.06, 9.02, 10.01 and 12.02 of the
Agreement and Sections 8.01 and 8.02 of this Supplement.

                  (f) Except as provided in Section 12.02 of the Agreement with
respect to a final distribution, distributions to Series 2003-4
Certificateholders hereunder shall be made by check mailed to each Series 2003-4
Certificateholder at such Series 2003-4 Certificateholder's address appearing in
the Certificate Register without presentation or surrender of any Series 2003-4
Certificate or the making of any notation thereon; provided, however, that with
respect to Series 2003-4 Certificates registered in the name of a Clearing
Agency, such distributions shall be made to such Clearing Agency in immediately
available funds.

                                       29
<PAGE>

                  Section 5.02. Reports and Statements to Series 2003-4
Certificateholders.

                  (a) On each Distribution Date, the Paying Agent, on behalf of
the Trustee, shall forward to each Series 2003-4 Certificateholder a statement
substantially in the form of Exhibit C to this Supplement prepared by the
Servicer and delivered to the Paying Agent.

                  (b) Not later than each Determination Date, the Servicer shall
deliver to the Trustee, the Paying Agent, each Rating Agency and the Collateral
Interest Holder (i) a statement substantially in the form of Exhibit C to this
Supplement prepared by the Servicer and (ii) a certificate of a Servicing
Officer substantially in the form of Exhibit D.

                  (c) A copy of each statement or certificate provided pursuant
to paragraph (a) or (b) may be obtained by any Series 2003-4 Certificateholder
or any Certificate Owner thereof by a request in writing to the Servicer.

                  (d) On or before January 31 of each calendar year, beginning
with calendar year 2004, the Paying Agent, on behalf of the Trustee, shall
furnish or cause to be furnished to each Person who at any time during the
preceding calendar year was a Series 2003-4 Certificateholder, a statement
prepared by the Servicer containing the information which is required to be
contained in the statement to Series 2003-4 Certificateholders, as set forth in
paragraph (a) above aggregated for such calendar year or the applicable portion
thereof during which such Person was a Series 2003-4 Certificateholder, together
with other information as is required to be provided by an issuer of
indebtedness under the Code. Such obligation of the Servicer shall be deemed to
have been satisfied to the extent that substantially comparable information
shall be provided by the Paying Agent pursuant to any requirements of the Code
as from time to time in effect.

                                   ARTICLE VI

                                 Pay-Out Events

                  Section 6.01. Pay-Out Events. If any one of the following
events shall occur with respect to the Series 2003-4 Certificates:

                  (a) the occurrence of an Insolvency Event relating to any
Transferor or other holder of the Original Transferor Certificate;

                  (b) the Trust becomes an investment company within the meaning
of the Investment Company Act;

                  (c) failure on the part of any Transferor (i) to make any
payment or deposit required by the terms of the Agreement or this Supplement on
or before the date occurring five Business Days after the date such payment or
deposit is required to be made therein or herein or (ii) duly to observe or
perform any other covenants or agreements of the Transferors set forth in the
Agreement or this Supplement, which failure has a material adverse effect on the
Series 2003-4 Certificateholders 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 such Transferor by the Trustee, or
to the Transferors and the Trustee by any Holder of the Series 2003-4
Certificates;

                                       30
<PAGE>

                  (d) any representation or warranty made by any Transferor in
the Agreement or this Supplement, or any information contained in a computer
file or microfiche list required to be delivered by any Transferor pursuant to
Section 2.01 or subsection 2.08(f) of the Agreement shall prove to have been
incorrect in any material respect when made or when delivered, which continues
to be incorrect in any material respect for a period of 60 days after the date
on which written notice of such failure, requiring the same to be remedied,
shall have been given to such Transferor by the Trustee, or to such Transferor
and the Trustee by any Holder of the Series 2003-4 Certificates and as a result
of which the interests of the Series 2003-4 Certificateholders are materially
and adversely affected for such period; provided, however, that a Pay-Out Event
pursuant to this subsection 6.01(d) shall not be deemed to have occurred
hereunder if a Transferor has accepted reassignment of the related Receivable,
or all of such Receivables, if applicable, during such period (or such longer
period not to exceed an additional 60 days as the Trustee may specify) in
accordance with the provisions of the Agreement;

                  (e) a failure by a Transferor to convey Receivables in
Additional Accounts or Participation Interests to the Trust within five Business
Days after the day on which it is required to convey such Receivables or
Participation Interests pursuant to subsection 2.09(a) of the Agreement;

                  (f) any Servicer Default which would have an Adverse Effect
shall occur;

                  (g) the average Series Adjusted Portfolio Yield for any three
consecutive Monthly Periods is reduced to a rate which is less than the average
of the Base Rates for such period;

                  (h) the Class A Invested Amount and the Class B Invested
Amount shall not be paid in full on the Expected Final Payment Date; or

                  (i) a Transfer Restriction Event shall occur;

then, in the case of any event described in subparagraph (c), (d) or (f), after
the applicable grace period, if any, set forth in such subparagraphs, either the
Trustee or the Holders of Series 2003-4 Certificates evidencing more than 50% of
the aggregate unpaid principal amount of Series 2003-4 Certificates by notice
then given in writing to the Transferors and the Servicer (and to the Trustee if
given by the Series 2003-4 Certificateholders) may declare that a Pay-Out Event
has occurred with respect to Series 2003-4 as of the date of such notice, and,
in the case of any event described in subparagraph (a), (b), (e), (g), (h) or
(i), a Pay-Out Event shall occur with respect to Series 2003-4 without any
notice or other action on the part of the Trustee or the Series 2003-4
Certificateholders immediately upon the occurrence of such event.

                                  ARTICLE VII

                     Optional Repurchase; Series Termination

                  Section 7.01. Optional Repurchase.

                  (a) So long as a Transferor is the Servicer or an Affiliate of
the Servicer, on any day occurring on or after the date on which the Invested
Amount is reduced to 5% or less of the Initial Invested Amount, such Transferor
shall have the option to purchase the Series 2003-4 Certificateholders'
Interest, at a purchase price equal to (i) if such day is a Distribution Date,
the Reassignment Amount for such Distribution Date or (ii) if such day is not a
Distribution Date, the Reassignment Amount for the Distribution Date following
such day. If, on the date on which a Transferor exercises such option, the
long-term unsecured debt obligations of either Transferor purchasing the Series
2003-4 Certificateholders' Interest is not rated at least in the third highest
rating category by the Rating Agency, such Transferor shall deliver to the
Trustee, with a copy to the Rating Agency, an Officer's Certificate which shall
have attached to it the relevant fraudulent conveyance statute, if any, and set
forth the factual basis for a conclusion that the exercise of such optional
repurchase would not constitute a fraudulent conveyance of such Transferor.

                                       31
<PAGE>

                  (b) The Transferors shall give the Servicer and the Trustee at
least 30 days prior written notice of the date on which the Transferors intend
to exercise such purchase option. Not later than 12:00 noon, New York City time,
on such day the Transferors shall deposit the Reassignment Amount into the
Collection Account in immediately available funds. Such purchase option is
subject to payment in full of the Reassignment Amount. Following the deposit of
the Reassignment Amount into the Collection Amount in accordance with the
foregoing, the Invested Amount for Series 2003-4 shall be reduced to zero and
the Series 2003-4 Certificateholders shall have no further interest in the
Receivables. The Reassignment Amount shall be distributed as set forth in
subsection 8.01(b).

                  Section 7.02. Series Termination.

                  (a) If, on the November 2008 Distribution Date, the Invested
Amount (after giving effect to all changes therein on such date) would be
greater than zero, the Servicer, on behalf of the Trustee, shall, within the
40-day period which begins on such Distribution Date, solicit bids for the sale
of Principal Receivables and the related Finance Charge Receivables (or
interests therein) in an amount equal to the Invested Amount at the close of
business on the last day of the Monthly Period preceding the Series 2003-4
Termination Date (after giving effect to all distributions required to be made
on the Series 2003-4 Termination Date, except pursuant to this Section 7.02).
Such bids shall require that such sale shall (subject to subsection 7.02(b))
occur on the Series 2003-4 Termination Date. The Transferors and the Collateral
Interest Holder shall be entitled to participate in, and to receive from the
Trustee a copy of each other bid submitted in connection with, such bidding
process. Each Transferor and its Affiliates shall be permitted to bid for the
Receivables and, in addition, shall have the right to match any bid and to
purchase the Receivables at such matched price if such matched price shall be
the highest bid price received by the Trustee.

                  (b) The Servicer, on behalf of the Trustee, shall sell such
Receivables (or interests therein) on the Series 2003-4 Termination Date to the
bidder who made the highest cash purchase offer. The proceeds of any such sale
shall be treated as Collections on the Receivables allocated to the Series
2003-4 Certificateholders pursuant to the Agreement and this Supplement;
provided, however, that the Servicer shall determine conclusively the amount of
such proceeds which are allocable to Finance Charge Receivables and the amount
of such proceeds which are allocable to Principal Receivables. During the period
from the November 2008 Distribution Date to the Series 2003-4 Termination Date,
the Servicer shall continue to collect payments on the Receivables and allocate
and deposit such Collections in accordance with the provisions of the Agreement
and the Supplements.

                                  ARTICLE VIII

                               Final Distributions

                  Section 8.01. Sale of Receivables or Certificateholders'
Interest pursuant to Section 2.06 or 10.01 of the Agreement and Section 7.01 or
7.02 of this Supplement.

                  (a) (i) The amount to be paid by the Transferors with respect
                  to Series 2003-4 in connection with a reassignment of
                  Receivables to the Transferors pursuant to Section 2.06 of the
                  Agreement shall equal the Reassignment Amount for the first
                  Distribution Date following the Monthly Period in which the
                  reassignment obligation arises under the Agreement.

                                       32
<PAGE>

                      (ii) The amount to be paid by the Transferors with respect
                  to Series 2003-4 in connection with a repurchase of the
                  Certificateholders' Interest pursuant to Section 10.01 of the
                  Agreement shall equal the sum of (x) the Reassignment Amount
                  for the Distribution Date of such repurchase and (y) the sum
                  of (A) the excess, if any, of (I) a price equivalent to the
                  average of bids quoted on the Record Date preceding the date
                  of repurchase or, if not a Business Day, on the next
                  succeeding Business Day by at least two recognized dealers
                  selected by the Trustee for the purchase by such dealers of a
                  security which is similar to the Class A Certificates with a
                  remaining maturity approximately equal to the remaining
                  maturity of the Class A Certificates and rated by each Rating
                  Agency in the rating category originally assigned to the Class
                  A Certificates over (II) the portion of the Reassignment
                  Amount attributable to the Class A Certificates and (B) the
                  excess, if any, of (I) a price equivalent to the average of
                  bids quoted on such Record Date, or if not a Business Day, on
                  the next succeeding Business Day by at least two recognized
                  dealers selected by the Trustee for the purchase by such
                  dealers of a security which is similar to the Class B
                  Certificates with a remaining maturity approximately equal to
                  the remaining maturity of the Class B Certificates and rated
                  by each Rating Agency in the rating category originally
                  assigned to the Class B Certificates over (II) the portion of
                  the Reassignment Amount attributable to the Class B
                  Certificates.

                  (b) With respect to the Reassignment Amount deposited into the
Collection Account pursuant to Section 7.01 or any amounts allocable to the
Series 2003-4 Certificateholders' Interest deposited into the Collection Account
pursuant to Section 7.02, the Trustee shall, in accordance with the written
direction of the Servicer, not later than 12:00 noon, New York City time, on the
related Distribution Date, make deposits or distributions of the following
amounts (in the priority set forth below and, in each case after giving effect
to any deposits and distributions otherwise to be made on such date) in
immediately available funds: (i) (x) the Class A Invested Amount on such
Distribution Date will be distributed to the Paying Agent for payment to the
Class A Certificateholders and (y) an amount equal to the sum of (A) Class A
Monthly Interest for such Distribution Date, (B) any Class A Monthly Interest
previously due but not distributed to the Class A Certificateholders on a prior
Distribution Date and (C) the amount of Class A Additional Interest, if any, for
such Distribution Date and any Class A Additional Interest previously due but
not distributed to the Class A Certificateholders on any prior Distribution
Date, will be distributed to the Paying Agent for payment to the Class A
Certificateholders, (ii) (x) the Class B Invested Amount on such Distribution
Date will be distributed to the Paying Agent for payment to the Class B
Certificateholders and (y) an amount equal to the sum of (A) Class B Monthly
Interest for such Distribution Date, (B) any Class B Monthly Interest previously
due but not distributed to the Class B Certificateholders on a prior
Distribution Date and (C) the amount of Class B Additional Interest, if any, for
such Distribution Date and any Class B Additional Interest previously due but
not distributed to the Class B Certificateholders on any prior Distribution
Date, will be distributed to the Paying Agent for payment to the Class B
Certificateholders and (iii) the balance, if any, will be distributed to the
Collateral Interest Holder for application in accordance with the Loan
Agreement.

                  (c) Notwithstanding anything to the contrary in this
Supplement or the Agreement, all amounts distributed to the Paying Agent
pursuant to subsection 8.01(b) for payment to the Series 2003-4
Certificateholders shall be deemed distributed in full to the Series 2003-4
Certificateholders on the date on which such funds are distributed to the Paying
Agent pursuant to this Section and shall be deemed to be a final distribution
pursuant to Section 12.02 of the Agreement.

                                       33
<PAGE>

                  Section 8.02. Distribution of Proceeds of Sale, Disposition or
Liquidation of the Receivables pursuant to Section 9.01 of the Agreement.

                  (a) Not later than 12:00 noon, New York City time, on the
Distribution Date following the date on which the Insolvency Proceeds are
deposited into the Collection Account pursuant to subsection 9.01(b) of the
Agreement, the Trustee shall in accordance with the written direction of the
Servicer (in the following priority and, in each case, after giving effect to
any deposits and distributions otherwise to be made on such Distribution Date)
(i) deduct an amount equal to the Class A Invested Amount on such Distribution
Date from the portion of the Insolvency Proceeds allocated to Series 2003-4
Allocable Principal Collections and distribute such amount to the Paying Agent
for payment to the Class A Certificateholders, provided that the amount of such
distribution shall not exceed the product of (x) the portion of the Insolvency
Proceeds allocated to Series 2003-4 Allocable Principal Collections and (y) the
Principal Allocation Percentage with respect to the related Monthly Period, (ii)
deduct an amount equal to the Class B Invested Amount on such Distribution Date
from the portion of the Insolvency Proceeds allocated to Series 2003-4 Allocable
Principal Collections and distribute such amount to the Paying Agent for payment
to the Class B Certificateholders, provided that the amount of such distribution
shall not exceed (x) the product of (A) the portion of such Insolvency Proceeds
allocated to Series 2003-4 Allocable Principal Collections and (B) the Principal
Allocation Percentage with respect to the related Monthly Period minus (y) the
amount distributed to the Paying Agent pursuant to clause (i) of this sentence
and (iii) deduct an amount equal to the Collateral Invested Amount, if any, on
such Distribution Date from the portion of the Insolvency Proceeds allocated to
Series 2003-4 Allocable Principal Collections and distribute such amount to the
Collateral Interest Holder for application in accordance with the Loan
Agreement, provided that the amount of such distribution shall not exceed (x)
the product of (1) the portion of the Insolvency Proceeds allocated to Series
2003-4 Allocable Principal Collections and (2) the Principal Allocation
Percentage with respect to such Monthly Period minus (y) the amounts distributed
to the Paying Agent pursuant to clauses (i) and (ii) of this sentence. To the
extent that the product of (A) the portion of the Insolvency Proceeds allocated
to Series 2003-4 Allocable Principal Collections and (B) the Principal
Allocation Percentage with respect to the related Monthly Period exceeds the
aggregate amounts distributed to the Paying Agent pursuant to the preceding
sentence, the excess shall be allocated to the Transferor's Interest and shall
be released to the Holders of the Transferor Certificates on such Distribution
Date.

                  (b) Not later than 12:00 noon, New York City time, on such
Distribution Date, the Trustee shall in accordance with the written direction of
the Servicer (in the following priority and, in each case, after giving effect
to any deposits and distributions otherwise to be made on such Distribution
Date) (i) deduct an amount equal to the sum of (w) Class A Monthly Interest for
such Distribution Date, (x) any Class A Monthly Interest previously due but not
distributed to the Class A Certificateholders on a prior Distribution Date and
(y) the amount of Class A Additional Interest, if any, for such Distribution
Date and any Class A Additional Interest previously due but not distributed to
the Class A Certificateholders on a prior Distribution Date from the portion of
the Insolvency Proceeds allocated to Collections of Finance Charge Receivables
and distribute such amount to the Paying Agent for payment to the Class A
Certificateholders, provided that the amount of such distribution shall not
exceed the product of (x) the portion of the Insolvency Proceeds allocated to
Series 2003-4 Allocable Finance Charge Collections, (y) the Floating Allocation
Percentage with respect to the related Monthly Period and (z) the Class A
Floating Percentage with respect to such Monthly Period and (ii) deduct an
amount equal to the sum of (w) Class B Monthly Interest for such Distribution
Date, (x) Class B Monthly Interest previously due but not distributed to the
Class B Certificateholders on a prior Distribution Date and (y) the amount of
Class B Additional Interest, if any, for such Distribution Date and any Class B
Additional Interest previously due but not distributed to the Class B
Certificateholders on a prior Distribution Date from the portion of the
Insolvency Proceeds allocated to Series 2003-4 Allocable Finance Charge
Collections and distribute such amount to the Paying Agent for payment to the
Class B Certificateholders, provided that the amount of such distribution shall
not exceed the product of (x) the portion of the Insolvency Proceeds allocated
to Series 2003-4 Allocable Finance Charge Collections, (y) the Floating
Allocation Percentage with respect to the related Monthly Period and (z) the
Class B Floating Percentage with respect to such Monthly Period. To the extent
that the product of (A) the portion of the Insolvency Proceeds allocated to
Series 2003-4 Allocable Finance Charge Collections and (B) the Floating
Allocation Percentage with respect to the related Monthly Period exceeds the
aggregate amount distributed to the Paying Agent pursuant to the preceding
sentence, the excess shall be released to the Collateral Interest Holder for
application by the Collateral Interest Holder in accordance with the Loan
Agreement.

                                       34
<PAGE>

                  (c) Notwithstanding anything to the contrary in this
Supplement or the Agreement, all amounts distributed to the Paying Agent
pursuant to this Section for payment to the Series 2003-4 Certificateholders
shall be distributed in full to the Series 2003-4 Certificateholders on the date
on which funds are distributed to the Paying Agent pursuant to this Section and
shall be deemed to be a final distribution pursuant to Section 12.02 of the
Agreement.

                                   ARTICLE IX

                            Miscellaneous Provisions

                  Section 9.01. Ratification of Agreement. As supplemented by
this Supplement, the Agreement is in all respects ratified and confirmed and the
Agreement as so supplemented by this Supplement shall be read, taken and
construed as one and the same instrument.

                  Section 9.02. Counterparts. This Supplement may be executed in
two or more counterparts, and by different parties on separate counterparts,
each of which shall be an original, but all of which shall constitute one and
the same instrument.

                  Section 9.03. Governing Law. THIS SUPPLEMENT SHALL BE
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
LAWS.

                  Section 9.04. Certain Accounting Related Amendments. In
addition to being subject to amendment pursuant to any other provisions relating
to amendments in either the Agreement or this Supplement, the Agreement or this
Supplement may be amended by the Transferors without the consent of the
Servicer, the Trustee or any Investor Certificateholder to account for the
transfer of assets as sales in accordance with FASB Statement No. 140, including
providing for the transfer of receivables from American Express Centurion Bank
to a bankruptcy-remote special purpose entity and from that entity to the trust;
provided that the Transferors shall have delivered a Tax Opinion on the date of
such amendment. Promptly after the effectiveness of any amendment pursuant to
this Section 9.04, the Transferors shall deliver a copy of such amendment to
each of the Servicer, the Trustee and each Rating Agency.

                  Section 9.05. Additional Representations and Warranties of the
Transferors. Each Transferor hereby makes the following representations and
warranties. Such representations and warranties shall survive until the
termination of this Series Supplement. Such representations and warranties speak
of the date that the Collateral (as defined below) is transferred to the Trustee
but shall not be waived by any of the parties to this Series Supplement unless
each Rating Agency shall have notified the Transferors, the Servicer and the
Trustee in writing that such waiver will not result in a reduction or withdrawal
of the rating of any outstanding Series or Class to which it is a Rating Agency.

                                       35
<PAGE>

                           (a) The Agreement creates a valid and continuing
         security interest (as defined in the applicable UCC) in favor of the
         Trustee in the Receivables described in Section 2.01 of the Agreement
         or in Section 3(a) of any Assignment (the "Collateral"), which security
         interest is prior to all other liens, and is enforceable as such
         against creditors of and purchasers from such Transferor.

                           (b) The Collateral constitutes "accounts" within the
         meaning of the applicable UCC.

                           (c) At the time of its transfer of any Receivable to
         the Trustee pursuant to the Agreement or an Assignment, such Transferor
         owned and had good and marketable title to such Receivable free and
         clear of any lien, claim or encumbrance of any Person.

                           (d) Such Transferor has caused or will have caused,
         within ten (10) days of the initial execution of the Agreement and each
         Assignment, the filing of all appropriate financing statements in the
         proper filing office in the appropriate jurisdictions under applicable
         law in order to perfect the security interest in the related Collateral
         granted to the Trustee pursuant to the Agreement or such Assignment.

                           (e) Other than the security interest granted to the
         Trustee pursuant to the Agreement or an Assignment, such Transferor has
         not pledged, assigned, sold, granted a security interest in, or
         otherwise conveyed the Collateral. Such Transferor has not authorized
         the filing of and is not aware of any financing statements against such
         Transferor that include a description of the Collateral other than any
         financing statement relating to the security interest granted to the
         Trustee pursuant to the Agreement or an Assignment or that has been
         terminated. Such Transferor is not aware of any judgment or tax lien
         filings against such Transferor.

                     [The signature page follows this page.]

                                       36
<PAGE>

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

                             AMERICAN EXPRESS RECEIVABLES
                             FINANCING CORPORATION II,
                               as a Transferor,

                             By:       /s/ Leslie R. Scharfstein
                                    -------------------------------
                                    Name: Leslie R. Scharfstein
                                    Title:   President

                             AMERICAN EXPRESS CENTURION BANK,
                                    as a Transferor,

                             By:         /s/ Maureen A. Ryan
                                    -------------------------------
                                    Name: Maureen A. Ryan
                                    Title:   Assistant Treasurer

                             AMERICAN EXPRESS TRAVEL RELATED
                                    SERVICES COMPANY, INC.,
                                    as the Servicer,

                             By:          /s/ John D. Koslow
                                    -------------------------------
                                    Name: John D. Koslow
                                    Title:   Assistant Treasurer

                             THE BANK OF NEW YORK,
                                    as Trustee,

                             By:       /s/ Catherine L. Cerilles
                                    -------------------------------
                                    Name:  Catherine L. Cerilles
                                    Title:    Assistant Vice President

                   [Signature page - Series 2003-4 Supplement]

<PAGE>

                     FORM OF CLASS A CERTIFICATE                     EXHIBIT A-1

REGISTERED                                                           $       1/
                                                                      ---------

No. R-__________                                              CUSIP No.________

                  Unless this Class A Certificate is presented by an authorized
representative of The Depository Trust Company, a New York corporation ("DTC"),
to American Express Centurion Bank, American Express Receivables Financing
Corporation II or their agent for registration of transfer, exchange or payment,
and any certificate issued is registered in the name of Cede & Co. or in such
other name as is requested by an authorized representative of DTC (and any
payment is made to Cede & Co. or to such other entity as is requested by an
authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered
owner hereof, Cede & Co., has an interest herein.

                  AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST

                                  SERIES 2003-4

                     CLASS A 1.69% ASSET BACKED CERTIFICATE

                          Expected Final Payment Date:
                         The June 2006 Distribution Date

                  Each $1,000 minimum denomination represents a
                         1/588,200ths undivided interest
                         in Class A Certificates of the

           AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST, SERIES 2003-4

Evidencing an undivided interest in certain assets of a trust, the corpus of
which consists primarily of an interest in receivables generated from time to
time in the ordinary course of business in a portfolio of credit and charge
accounts serviced by

             AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC.,

and other assets and interests constituting Trust Assets under the Pooling and
Servicing Agreement referred to below.

  (Not an interest in or obligation of American Express Travel Related Services
  Company, Inc., American Express Centurion Bank, American Express Receivables
         Financing Corporation II or any of their respective affiliates)

--------------------------
1 /  Denominations of $1,000 and integral multiples of $1,000 in excess thereof.

<PAGE>

This certifies that CEDE & CO. (the "Class A Certificateholder") is the
registered owner of a fractional undivided interest in certain assets of a trust
(the "Trust") created pursuant to the Pooling and Servicing Agreement, dated as
of May 16, 1996 (as amended and supplemented, the "Agreement"), as supplemented
by the Series 2003-4 Supplement, dated as of June 18, 2003 (as amended and
supplemented, the "Supplement"), among American Express Centurion Bank and
American Express Receivables Financing Corporation II, as transferors (together,
the "Transferors"), American Express Travel Related Services Company, Inc., as
servicer, and The Bank of New York, a New York banking corporation, as trustee
(the "Trustee"). The corpus of the Trust consists of (i) the Transferors'
ownership interest in a portfolio of receivables (the "Receivables") existing in
credit and charge accounts identified under the Agreement from time to time (the
"Accounts"), (ii) all Receivables generated under the Accounts from time to time
thereafter, (iii) funds collected or to be collected from cardmembers in respect
of the Receivables, (iv) all funds which are from time to time on deposit in the
Collection Account, the Special Funding Account and any other Series Accounts
and (v) all other assets and interests constituting the Trust. The Holder of
this Certificate is entitled to the benefits of the subordination of the Class B
Certificates and the Collateral Interest to the extent provided in the
Supplement. Although a summary of certain provisions of the Agreement and the
Supplement is set forth below and in the Summary of Terms and Conditions
attached hereto and made a part hereof, this Class A Certificate does not
purport to summarize the Agreement and the Supplement and reference is made to
the Agreement and the Supplement for information with respect to the interests,
rights, benefits, obligations, proceeds and duties evidenced hereby and the
rights, duties and obligations of the Trustee. A copy of the Agreement and the
Supplement (without schedules) may be requested from the Trustee by writing to
the Trustee at the Corporate Trust Office. To the extent not defined herein, the
capitalized terms used herein have the meanings ascribed to them in the
Agreement or the Supplement, as applicable.

                  This Class A Certificate is issued under and is subject to the
terms, provisions and conditions of the Agreement and the Supplement, to which
Agreement and Supplement, each as amended and supplemented from time to time,
the Class A Certificateholder by virtue of the acceptance hereof assents and is
bound.

                  It is the intent of the Transferors and the Class A
Certificateholder that, for federal, state and local income and franchise tax
purposes, the Class A Certificates will qualify as indebtedness of the
Transferors secured by the Receivables. The Class A Certificateholder, by the
acceptance of this Class A Certificate, agrees to treat this Class A Certificate
for federal, state and local income and franchise tax purposes as debt of the
Transferors.

                  In general, payments of principal with respect to the Class A
Certificates are limited to the Class A Invested Amount, which may be less than
the unpaid principal balance of the Class A Certificates. The Expected Final
Payment Date is the June 2006 Distribution Date, but principal with respect to
the Class A Certificates may be paid earlier or later under certain
circumstances described in the Agreement and the Supplement. If for one or more
months during the Controlled Accumulation Period there are not sufficient funds
to pay the Controlled Deposit Amount, then to the extent that excess funds are
not available on subsequent Distribution Dates with respect to the Controlled
Accumulation Period to make up for such shortfalls, the final payment of
principal of the Class A Certificates will occur later than the Expected Final
Payment Date.

                  Unless the certificate of authentication hereon has been
executed by or on behalf of the Trustee, by manual signature, this Class A
Certificate shall not be entitled to any benefit under the Agreement or the
Supplement or be valid for any purpose.

                                     A-1-2
<PAGE>

                  IN WITNESS WHEREOF, the Transferors have caused this Class A
Certificate to be duly executed.

                         AMERICAN EXPRESS CENTURION BANK

                         By:
                                ----------------------------------------------
                                Name:
                                Title:

                         AMERICAN EXPRESS RECEIVABLES FINANCING CORPORATION II

                         By:
                                ----------------------------------------------
                                Name:
                                Title:
Dated:  June 18, 2003

                                     A-1-3
<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the American Express Credit Account Master Trust Series 2003-4
Class A Certificates described in the within-mentioned Agreement and Supplement.

                         THE BANK OF NEW YORK,
                         as Trustee,

                         By:
                                ----------------------------------------------
                                Authorized Signatory

                                or

                         By:
                                ----------------------------------------------
                                as Authenticating Agent
                                for the Trustee,

                         By:
                                ----------------------------------------------
                                Authorized Signatory

                                     A-1-4
<PAGE>

                  AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST

                                  SERIES 2003-4

                     CLASS A 1.69% ASSET BACKED CERTIFICATE

                         Summary of Terms and Conditions

                  The Receivables consist of Principal Receivables which arise
generally from the purchase of goods and services and amounts advanced to
cardmembers as cash advances and Finance Charge Receivables. This Class A
Certificate is one of a Series of Certificates entitled American Express Credit
Account Master Trust, Series 2003-4 (the "Series 2003-4 Certificates"), and one
of a class thereof entitled Class A Series 2003-4 1.69% Asset Backed
Certificates (the "Class A Certificates"), each of which represents a
fractional, undivided interest in certain assets of the Trust. The assets of the
Trust are allocated in part to the investor certificateholders of all
outstanding Series (the "Certificateholders' Interest") with the remainder
allocated to the Holders of the Transferor Certificates. The aggregate interest
represented by the Class A Certificates at any time in the Principal Receivables
in the Trust shall not exceed an amount equal to the Class A Invested Amount at
such time. The Class A Initial Invested Amount is $588,200,000. The Class A
Invested Amount on any date will be an amount equal to (a) the Class A Initial
Invested Amount, minus (b) the aggregate amount of principal payments made to
the Class A Certificateholder on or prior to such date, minus (c) the excess, if
any, of the aggregate amount of Class A Investor Charge-Offs for all prior
Distribution Dates over Class A Investor Charge-Offs reimbursed pursuant to
subsection 4.07(b) of the Supplement prior to such date.

                  Subject to the terms and conditions of the Agreement, the
Transferors may, from time to time, direct the Trustee, on behalf of the Trust,
to issue one or more new Series of Investor Certificates, which will represent
fractional, undivided interests in certain of the Trust Assets.

                  On each Distribution Date, the Paying Agent shall distribute
to each Class A Certificateholder of record on the last day of the preceding
calendar month (each a "Record Date") such Class A Certificateholder's pro rata
share of such amounts (including amounts on deposit in the Collection Account
and Principal Funding Account) as are payable to the Class A Certificateholder
pursuant to the Agreement and the Supplement. Distributions with respect to this
Class A Certificate will be made by the Paying Agent by check mailed to the
address of the Class A Certificateholder of record appearing in the Certificate
Register without the presentation or surrender of this Class A Certificate or
the making of any notation thereon (except for the final distribution in respect
of this Class A Certificate) except that with respect to Class A Certificates
registered in the name of Cede & Co., the nominee for The Depository Trust
Company, distributions will be made in the form of immediately available funds.
Final payment of this Class A Certificate will be made only upon presentation
and surrender of this Class A Certificate at the office or agency specified in
the notice of final distribution delivered by the Trustee to the Series 2003-4
Certificateholders in accordance with the Agreement and the Supplement.

                  On any day occurring on or after the day on which the Invested
Amount is reduced to 5% or less of the Initial Invested Amount, the Transferors
have the option to repurchase the Series 2003-4 Certificateholders' Interest in
the Trust. The repurchase price will be equal to (a) if such day is a
Distribution Date, the Reassignment Amount for such Distribution Date or (b) if
such day is not a Distribution Date, the Reassignment Amount for the
Distribution Date following such day. Following the deposit of the Reassignment
Amount in the Collection Account, Series 2003-4 Certificateholders will not have
any interest in the Receivables and the Series 2003-4 Certificates will
represent only the right to receive such Reassignment Amount.

                                     A-1-5
<PAGE>

                  This Class A Certificate does not represent an obligation of,
or an interest in, the Transferors or the Servicer or any affiliate of any of
them and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other governmental agency or instrumentality. This Class A
Certificate is limited in right of payment to certain Collections with respect
to the Receivables (and certain other amounts), all as more specifically set
forth hereinabove and in the Agreement and the Supplement.

                  The Class A Certificates are issuable only in minimum
denominations of $1,000 and integral multiples of $1,000. The transfer of this
Class A Certificate shall be registered in the Certificate Register upon
surrender of this Class A Certificate for registration of transfer at any office
or agency maintained by the Transfer Agent and Registrar accompanied by a
written instrument of transfer, in a form satisfactory to the Trustee or the
Transfer Agent and Registrar, duly executed by the Class A Certificateholder or
such Class A Certificateholder's attorney, and duly authorized in writing with
such signature guaranteed, and thereupon one or more new Class A Certificates of
authorized denominations and for the same aggregate fractional undivided
interest will be issued to the designated transferee or transferees.

                  As provided in the Agreement and subject to certain
limitations therein set forth, Class A Certificates are exchangeable for new
Class A Certificates evidencing like aggregate fractional, undivided interests
as requested by the Class A Certificateholder surrendering such Class A
Certificates. No service charge may be imposed for any such exchange but the
Servicer or Transfer Agent and Registrar may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
therewith.

                  The Servicer, the Trustee, the Paying Agent and the Transfer
Agent and Registrar and any agent of any of them, may treat the person in whose
name this Class A Certificate is registered as the owner hereof for all
purposes, and neither the Servicer nor the Trustee, the Paying Agent, the
Transfer Agent and Registrar, nor any agent of any of them, shall be affected by
notice to the contrary except in certain circumstances described in the
Agreement.

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

                                     A-1-6
<PAGE>

                                   ASSIGNMENT

Social Security or other identifying number of assignee ________________________

                  FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto _______________________________________________
                  (name and address of assignee)

the within certificate and all rights thereunder, and hereby irrevocably
constitutes and appoints _____________________________, attorney, to transfer
said certificate on the books kept for registration thereof, with full power of
substitution in the premises.

Dated: ______________                                 ________________________2/

                                                      Signature Guaranteed:

                                                      _______________________

--------------------------
2 / NOTE: The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Certificate in every
particular, without alteration, enlargement or any change whatsoever.

                                     A-1-7
<PAGE>

                      FORM OF CLASS B CERTIFICATE                    EXHIBIT A-2

THIS CLASS B CERTIFICATE MAY NOT BE ACQUIRED BY OR FOR THE ACCOUNT OF PERSONS
INVESTING ASSETS OF A BENEFIT PLAN (AS DEFINED BELOW) OR AN INDIVIDUAL
RETIREMENT ACCOUNT OTHER THAN BY INSURANCE COMPANIES INVESTING ASSETS SOLELY OF
THEIR GENERAL ACCOUNTS.

REGISTERED                                                           $       3/
                                                                      ---------

No. R-__________                                              CUSIP No.________

                  Unless this Class B Certificate is presented by an authorized
representative of The Depository Trust Company, a New York corporation ("DTC"),
to American Express Centurion Bank, American Express Receivables Financing
Corporation II or their agent for registration of transfer, exchange or payment,
and any certificate issued is registered in the name of Cede & Co. or in such
other name as is requested by an authorized representative of DTC (and any
payment is made to Cede & Co. or to such other entity as is requested by an
authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered
owner hereof, Cede & Co., has an interest herein.

                  AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST

                                  SERIES 2003-4

                     CLASS B 1.90% ASSET BACKED CERTIFICATE

                          Expected Final Payment Date:
                         The June 2006 Distribution Date

                  Each $1,000 minimum denomination represents a
                         1/40,800ths undivided interest
                         in Class B Certificates of the

           AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST, SERIES 2003-4

Evidencing an undivided interest in certain assets of a trust, the corpus of
which consists primarily of an interest in receivables generated from time to
time in the ordinary course of business in a portfolio of credit and charge
accounts serviced by

             AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC.,

and other assets and interests constituting Trust Assets under the Pooling and
Servicing Agreement referred to below.

 (Not an interest in or obligation of American Express Travel Related Services
  Company, Inc., American Express Centurion Bank, American Express Receivables
        Financing Corporation II or any of their respective affiliates)

--------------------------
3 /  Denominations of $1,000 and integral multiples of $1,000 in excess thereof.

<PAGE>

This certifies that CEDE & CO. (the "Class B Certificateholder") is the
registered owner of a fractional, undivided interest in certain assets of a
trust (the "Trust") created pursuant to the Pooling and Servicing Agreement,
dated as of May 16, 1996 (as amended and supplemented, the "Agreement"), as
supplemented by the Series 2003-4 Supplement, dated as of June 18, 2003 (as
amended and supplemented, the "Supplement"), among American Express Centurion
Bank and American Express Receivables Financing Corporation II, as transferors
(together, the "Transferors"), American Express Travel Related Services Company,
Inc., as servicer, and The Bank of New York, a New York banking corporation, as
trustee (the "Trustee"). The corpus of the Trust consists of (i) the
Transferors' ownership interest in a portfolio of receivables (the
"Receivables") existing in credit and charge accounts identified under the
Agreement from time to time (the "Accounts"), (ii) all Receivables generated
under the Accounts from time to time thereafter, (iii) funds collected or to be
collected from cardmembers in respect of the Receivables, (iv) all funds which
are from time to time on deposit in the Collection Account, the Special Funding
Account, and any other Series Accounts and (v) all other assets and interests
constituting the Trust. Although a summary of certain provisions of the
Agreement and the Supplement is set forth below and in the Summary of Terms and
Conditions attached hereto and made a part hereof, this Class B Certificate does
not purport to summarize the Agreement and the Supplement and reference is made
to the Agreement and the Supplement for information with respect to the
interests, rights, benefits, obligations, proceeds and duties evidenced hereby
and the rights, duties and obligations of the Trustee. A copy of the Agreement
and the Supplement (without schedules) may be requested from the Trustee by
writing to the Trustee at the Corporate Trust Office. To the extent not defined
herein, the capitalized terms used herein have the meanings ascribed to them in
the Agreement or the Supplement, as applicable.

                  This Class B Certificate is issued under and is subject to the
terms, provisions and conditions of the Agreement and the Supplement, to which
Agreement and Supplement, each as amended and supplemented from time to time,
the Class B Certificateholder by virtue of the acceptance hereof assents and is
bound.

                  No Class B Certificate may be acquired by or for the account
of any employee benefit plan, trust or account, including an individual
retirement account, that is subject to the Employee Retirement Income Security
Act of 1974, as amended, or that is described in Section 4975(e)(1) of the
Internal Revenue Code of 1986, as amended, or an entity whose underlying assets
include plan assets by reason of a plan's investment in such entity (a "Benefit
Plan"), unless (i) such acquirer or holder is an insurance company, (ii) the
source of funds used to acquire or hold such Certificate (or interest therein)
is an "insurance company general account" (as defined in U.S. Department of
Labor Prohibited Transaction Class Exemption ("PTCE") 95-60), and (iii) the
conditions set forth in Sections I and III of PTCE 95-60 have been satisfied. By
acquiring any interest in this Class B Certificate, each applicable Certificate
Owner shall be deemed to have represented and warranted either (i) that it is
not a Benefit Plan and is not acting for the account of any Benefit Plan or (ii)
that (1) it is an insurance company, (2) the source of funds used to acquire or
hold an interest in such Certificate is an "insurance company general account"
(as such term is defined in PTCE 95-60), and (3) the conditions set forth in
Sections I and III of PTCE 95-60 have been satisfied.

                  THIS CLASS B CERTIFICATE IS SUBORDINATED TO THE EXTENT
NECESSARY TO FUND PAYMENTS ON THE CLASS A CERTIFICATES TO THE EXTENT SPECIFIED
IN THE SUPPLEMENT.

                  It is the intent of the Transferors and the Class B
Certificateholder that, for federal, state and local income and franchise tax
purposes, the Class B Certificates will qualify as indebtedness of the
Transferors secured by the Receivables. The Class B Certificateholder, by the
acceptance of this Class B Certificate, agrees to treat this Class B Certificate
for federal, state and local income and franchise tax purposes as debt of the
Transferors.

                                     A-2-2
<PAGE>

                  In general, payments of principal with respect to the Class B
Certificates are limited to the Class B Invested Amount, which may be less than
the unpaid principal balance of the Class B Certificates. The Expected Final
Payment Date is the June 2006 Distribution Date, but principal with respect to
the Class B Certificates may be paid earlier or later under certain
circumstances described in the Agreement and the Supplement. If for one or more
months during the Controlled Accumulation Period there are not sufficient funds
to pay the Controlled Deposit Amount, then to the extent that excess funds are
not available on subsequent Distribution Dates with respect to the Controlled
Accumulation Period to make up for such shortfalls, the final payment of
principal of the Class B Certificates will occur later than the Expected Final
Payment Date.

                  Unless the certificate of authentication hereon has been
executed by or on behalf of the Trustee, by manual signature, this Class B
Certificate shall not be entitled to any benefit under the Agreement or the
Supplement or be valid for any purpose.

                  IN WITNESS WHEREOF, the Transferors have caused this Class B
Certificate to be duly executed.

                         AMERICAN EXPRESS CENTURION BANK

                         By:
                                ----------------------------------------------
                                Name:
                                Title:

                         AMERICAN EXPRESS RECEIVABLES FINANCING CORPORATION II

                         By:
                                ----------------------------------------------
                                Name:
                                Title:
Dated:  June 18, 2003

                                     A-2-3
<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

                  This is one of the American Express Credit Account Master
Trust Series 2003-4 Class B Certificates described in the within mentioned
Agreement and Supplement.

                          THE BANK OF NEW YORK,
                          as Trustee

                          By:
                                 ----------------------------------------------
                                 Authorized Signatory

                          or

                          By:
                                 ----------------------------------------------
                                 as Authenticating Agent
                                 for the Trustee

                          By:
                                 ----------------------------------------------
                                 Authorized Signatory

                                     A-2-4
<PAGE>

                  AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST

                                  SERIES 2003-4

                     CLASS B 1.90% ASSET BACKED CERTIFICATE

                         Summary of Terms and Conditions

                  The Receivables consist of Principal Receivables which arise
generally from the purchase of goods and services and amounts advanced to
cardmembers as cash advances and Finance Charge Receivables. This Class B
Certificate is one of a Series of Certificates entitled American Express Credit
Account Master Trust, Series 2003-4 (the "Series 2003-4 Certificates"), and one
of a class thereof entitled Class B Series 2003-4 1.90% Asset Backed
Certificates (the "Class B Certificates"), each of which represents a
fractional, undivided interest in certain assets of the Trust. The assets of the
Trust are allocated in part to the investor certificateholders of all
outstanding Series (the "Certificateholders' Interest") with the remainder
allocated to the Holders of the Transferor Certificates. The aggregate interest
represented by the Class B Certificates at any time in the Principal Receivables
in the Trust shall not exceed an amount equal to the Class B Invested Amount at
such time. The Class B Initial Invested Amount is $40,800,000. The Class B
Invested Amount on any date will be an amount equal to (a) the Class B Initial
Invested Amount, minus (b) the aggregate amount of principal payments made to
the Class B Certificateholder on or prior to such date, minus (c) the excess, if
any, of the aggregate amount of Class B Investor Charge-Offs for all prior
Distribution Dates over Class B Investor Charge-Offs reimbursed, minus (d) the
amount of Reallocated Principal Collections allocated on all prior Distribution
Dates pursuant to subsection 4.08(a) of the Supplement (excluding any
Reallocated Principal Collections that have resulted in a reduction in the
Collateral Invested Amount pursuant to Section 4.08), minus (e) an amount equal
to the amount by which the Class B Invested Amount has been reduced to cover the
Class A Investor Default Amount on all prior Distribution Dates, and plus (f)
the amount of Excess Spread and Excess Finance Charge Collections allocated to
Series 2003-4 and applied on all prior Distribution Dates for the purpose of
reimbursing amounts deducted pursuant to the foregoing clauses (c), (d) and (e);
provided, however, that the Class B Invested Amount may not be reduced below
zero.

                  Subject to the terms and conditions of the Agreement, the
Transferors may, from time to time, direct the Trustee, on behalf of the Trust,
to issue one or more new Series of Investor Certificates, which will represent
fractional, undivided interests in certain of the Trust Assets.

                  On each Distribution Date, the Paying Agent shall distribute
to each Class B Certificateholder of record on the last day of the preceding
calendar month (each a "Record Date") such Class B Certificateholder's pro rata
share of such amounts (including amounts on deposit in the Collection Account
and Principal Funding Account) as are payable to the Class B Certificateholder
pursuant to the Agreement and the Supplement. Distributions with respect to this
Class B Certificate will be made by the Paying Agent by check mailed to the
address of the Class B Certificateholder of record appearing in the Certificate
Register without the presentation or surrender of this Class B Certificate or
the making of any notation thereon (except for the final distribution in respect
of this Class B Certificate) except that with respect to Class B Certificates
registered in the name of Cede & Co., the nominee for The Depository Trust
Company, distributions will be made in the form of immediately available funds.
Final payment of this Class B Certificate will be made only upon presentation
and surrender of this Class B Certificate at the office or agency specified in
the notice of final distribution delivered by the Trustee to the Series 2003-4
Certificateholders in accordance with the Agreement and the Supplement.

                  On any day occurring on or after the day on which the Invested
Amount is reduced to 5% or less of the Initial Invested Amount, the Transferors
have the option to repurchase the Series 2003-4 Certificateholders' Interest in
the Trust. The repurchase price will be equal to (a) if such day is a
Distribution Date, the Reassignment Amount for such Distribution Date or (b) if
such day is not a Distribution Date, the Reassignment Amount for the
Distribution Date next following such day. Following the deposit of the
Reassignment Amount in the Collection Account, Series 2003-4 Certificateholders
will not have any interest in the Receivables and the Series 2003-4 Certificates
will represent only the right to receive such Reassignment Amount.

                                     A-2-5
<PAGE>

                  This Class B Certificate does not represent an obligation of,
or an interest in, the Transferors or the Servicer or any affiliate of any of
them and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other governmental agency or instrumentality. This Class B
Certificate is limited in right of payment to certain Collections with respect
to the Receivables (and certain other amounts), all as more specifically set
forth hereinabove and in the Agreement and the Supplement.

                  The Class B Certificates are issuable only in minimum
denominations of $1,000 and integral multiples of $1,000. The transfer of this
Class B Certificate shall be registered in the Certificate Register upon
surrender of this Class B Certificate for registration of transfer at any office
or agency maintained by the Transfer Agent and Registrar accompanied by a
written instrument of transfer, in a form satisfactory to the Trustee or the
Transfer Agent and Registrar, duly executed by the Class B Certificateholder or
such Class B Certificateholder's attorney, and duly authorized in writing with
such signature guaranteed, and thereupon one or more new Class B Certificates of
authorized denominations and for the same aggregate fractional undivided
interest will be issued to the designated transferee or transferees.

                  As provided in the Agreement and subject to certain
limitations therein set forth, Class B Certificates are exchangeable for new
Class B Certificates evidencing like aggregate fractional undivided interests as
requested by the Class B Certificateholder surrendering such Class B
Certificates. No service charge may be imposed for any such exchange but the
Servicer or Transfer Agent and Registrar may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
therewith.

                  The Servicer, the Trustee, the Paying Agent and the Transfer
Agent and Registrar and any agent of any of them, may treat the person in whose
name this Class B Certificate is registered as the owner hereof for all
purposes, and neither the Servicer nor the Trustee, the Paying Agent, the
Transfer Agent and Registrar, nor any agent of any of them, shall be affected by
notice to the contrary except in certain circumstances described in the
Agreement.

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

                                     A-2-6
<PAGE>

                                   ASSIGNMENT

Social Security or other identifying number of assignee ________________________

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

Dated: ______________                               ________________________4/

                                                    Signature Guaranteed:

                                                    ________________________

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

                                     A-2-7
<PAGE>

                                                                       EXHIBIT B

                    FORM OF MONTHLY PAYMENT INSTRUCTIONS AND
                           NOTIFICATION TO THE TRUSTEE

                            ------------------------

                  AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST

                                  SERIES 2003-4

                            ------------------------

                  The undersigned, a duly authorized representative of American
Express Travel Related Services Company, Inc. ("TRS"), as Servicer pursuant to
the Pooling and Servicing Agreement dated as of May 16, 1996 (as amended and
supplemented, the "Pooling and Servicing Agreement"), among TRS, American
Express Centurion Bank and American Express Receivables Financing Corporation
II, as transferors (together, the "Transferors") and The Bank of New York, as
trustee (the "Trustee"), does hereby certify as follows:

                  1. Capitalized terms used in this Certificate have their
respective meanings set forth in the Pooling and Servicing Agreement or the
Series 2003-4 Supplement, dated as of June 18, 2003, among TRS, the Transferors
and the Trustee (as amended and supplemented, the "Supplement"), as applicable.

                  2. TRS is the Servicer.

                  3. The undersigned is a Servicing Officer.

I. INSTRUCTION TO MAKE A WITHDRAWAL

                  Pursuant to subsections 4.05(a), (b) and (c), the Servicer
does hereby instruct the Trustee (i) to make withdrawals from the Collection
Account on , , which date is a Distribution Date under the Supplement, in the
aggregate amounts (equal to the Class A Available Funds, Class B Available Funds
and Collateral Available Funds, respectively) as set forth below in respect of
the following amounts and (ii) to apply the proceeds of such withdrawals in
accordance with subsections 4.05(a), (b) and (c):

                  With respect to the Class A Certificates,

                  A) Pursuant to subsection 4.05(a)(i):

                     (1) Interest at the Class A Certificate Rate for
                         the related Interest Accrual Period on the
                         Class A Invested Amount......................$
                                                                       --------

                     (2) Class A Monthly Interest previously
                         due but not paid.............................$
                                                                       ---------

                                       B-1
<PAGE>

                     (3) Class A Additional Interest and any Class A
                         Additional Interest due but not paid........$
                                                                       ---------

                  B) Pursuant to subsection 4.05(a)(ii):

                     (1) The Class A Servicing Fee for the preceding
                         Monthly Period, if applicable...............$
                                                                       ---------

                     (2) Accrued and unpaid Class A Servicing Fees,
                         if applicable...............................$
                                                                       ---------

                  C) Pursuant to subsection 4.05(a)(iii):

                     (1) Class A Investor Default Amount for the
                         preceding Monthly Period....................$
                                                                       ---------

                  With respect to the Class B Certificates,

                  A) Pursuant to subsection 4.05(b)(i):

                     (1) Interest at the Class B Certificate Rate for
                         the related Interest Accrual Period on the
                         Class B Invested Amount.....................$
                                                                       ---------

                     (2) Class B Monthly Interest previously due but
                         not paid....................................$
                                                                       ---------

                     (3) Class B Additional Interest and any Class B
                         Additional Interest previously due but not
                         paid.........................................$
                                                                       ---------

                  B) Pursuant to subsection 4.05(b)(ii):

                     (1) The Class B Servicing Fee for the preceding
                         Monthly Period, if applicable...............$
                                                                       ---------

                     (2) Accrued and unpaid Class B Servicing Fees,
                          if applicable..............................$
                                                                       ---------

                  With respect to the Collateral Interest.............

                  A) Pursuant to subsection 4.05(c)(i):

                     (1) The Collateral Servicing Fee for the
                         preceding Monthly Period, if applicable.....$
                                                                       ---------

                     (2) Accrued and unpaid Collateral Servicing Fee,
                          if applicable..............................$
                                                                       ---------

                  Pursuant to subsections 4.05(d), (e) and (f), the Servicer
hereby instructs the Trustee (i) to make withdrawals from the Collection Account
on ______________, which date is a Distribution Date under the Supplement, in
the aggregate amounts (equal to the Available Principal Collections) as set
forth below in respect of the following amounts and (ii) to apply the proceeds
of such withdrawals in accordance with subsections 4.05(d), (e) and (f):

                                      B-2
<PAGE>

                  A) Pursuant to subsection 4.05(d):

                     (1) The excess, if any, of the Collateral
                         Invested Amount over the Required Collateral
                         Invested Amount paid to the Collateral
                         Interest Holder pursuant to the Loan
                         Agreement....................................$
                                                                       --------

                     (2) Amount to be treated as Shared Principal
                         Collections..................................$
                                                                       ---------

                  B) Pursuant to subsection 4.05(e):

                     (1) The Lesser of the Controlled Deposit Amount
                         and the sum of the Class A Adjusted Invested
                         Amount and the Class B Adjusted Invested
                         Amount deposited in the Principal Funding
                         Account......................................$
                                                                       ---------

                     (2) After the Class B Invested Amount is paid
                         in full, the amount paid to the Collateral
                          Interest Holder (up to the Collateral
                         Invested Amount) pursuant to the Loan
                         Agreement....................................$........
                                                                       --------

                     (3) Prior to the date the Class B Invested Amount
                         is paid in full, excess of the Collateral
                         Invested Amount over the Required Collateral
                         Invested Amount paid to the Collateral
                         Interest Holder pursuant to the Loan
                         Agreement....................................$
                                                                       --------

                     (4) Prior to the date the Class B Invested Amount
                         is paid in full, amount to be treated as
                         Shared Principal Collections.................$
                                                                       ---------

                  C) Pursuant to subsection 4.05(f):

                     (1) An amount up to the Class A Adjusted Invested
                         Amount deposited in the Principal Funding
                         Account......................................$
                                                                       ---------

                     (2) On and after the Distribution Date on which
                         the Class A Invested Amount is paid in full,
                         an amount up to the Class B Invested Amount
                         deposited in the Principal Funding Account...$
                                                                       ---------

                                      B-3
<PAGE>

                     (3) On an after the Distribution Date on which
                         the Class B Invested Amount is paid in full,
                         an amount up to the Collateral Invested
                         Amount paid to the Collateral Interest Holder
                         pursuant to the Loan Agreement...............$
                                                                       ---------

                  Pursuant to Section 4.07, the Servicer does hereby instruct
the Trustee to apply on ____________, which is a Distribution Date under the
Supplement, any Excess Spread and Excess Finance Charge Collections allocated to
Series 2003-4 as follows:

                  A) Pursuant to subsection 4.07(a):

                     Class A Required Amount applied in the priority
                     set forth in subsections 4.05(a)(i), (ii)
                     and (iii)........................................$
                                                                       ---------

                  B) Pursuant to subsection 4.07(b):

                     Aggregate amount of Class A Investor Charge-Offs
                     not previously reimbursed allocated to Available
                     Principal Collections............................$
                                                                       ---------

                  C) Pursuant to subsection 4.07(c):

                     Class B Required Amount applied in the priority
                     set forth in subsections 4.05(b)(i)..............$
                                                                       ---------

                  D) Pursuant to subsection 4.07(d):

                     Interest accrued on aggregate outstanding principal
                     balance of the Class B Certificates not otherwise
                     distributed to Class B Certificateholders pursuant to
                     Section 4.07(c)..................................$
                                                                       ---------
                  E) Pursuant to subsection 4.07(d):

                     Amount (up to the Class B Investor Default) to be
                     applied as Available Principal Collections.......$
                                                                       ---------

                  F) Pursuant to subsection 4.07(e):

                     The amount by which the "Class B Invested Amount"
                     has been reduced pursuant to clauses (c), (d) and
                     (e) of the definition thereof allocated to
                     Available Principal Collections..................$
                                                                       ---------

                  G) Pursuant to subsection 4.07(f):

                     (1) Collateral Monthly Interest..................$
                                                                       ---------

                     (2) Collateral Monthly Interest previously due
                         but not paid.................................$
                                                                       ---------

                                      B-4
<PAGE>

                     (3) Collateral Additional Interest and any
                         Collateral Additional Interest previously
                         due and not paid.............................$
                                                                       ---------

                  H) Pursuant to subsection 4.07(g):

                     Monthly Servicing Fee for such Distribution Date
                     that has not been paid to the Servicer and any
                     Monthly Servicing Fee previously due but not
                     paid to the Servicer.............................$
                                                                       ---------

                  I) Pursuant to subsection 4.07(h):

                     Collateral Default Amount allocated to Available
                     Principal Collections............................$
                                                                       ---------

                  J) Pursuant to subsection 4.07(i):

                     The amount by which the "Collateral Invested
                     Amount" hasbeen reduced pursuant to clauses (c),
                     (d) and (e) of the definition thereof allocated
                     to Available Principal Collections...............$
                                                                       ---------

                  K) Pursuant to subsection 4.07(j):

                     The excess of the Required Reserve Account Amount
                     over the Available Reserve Amount deposited into
                     the Reserve Account..............................$
                                                                       ---------

                  L) Pursuant to subsection 4.07(k):

                     Paid to the Collateral Interest Holder pursuant
                     to the Loan Agreement............................$
                                                                       ---------

                  M) Pursuant to subsection 4.07(l):

                     Treated as Excess Finance Charge Collections
                     and allocated to other Series or paid to the
                     Holders of the Transferor Certificates...........$
                                                                       ---------

                  Pursuant to Section 4.08, the Servicer does hereby instruct
the Trustee to apply on _____________, which is a Distribution Date under the
Pooling and Servicing Agreement, $ of Reallocated Principal Collections to fund
any deficiencies in the Required Amount after applying Class A Available Funds,
Class B Available Funds, Excess Spread and Excess Finance Charge Collections
thereto.

II. INSTRUCTION TO MAKE CERTAIN PAYMENTS

                  Pursuant to Section 5.01 of the Series Supplement, the
Servicer does hereby instruct the Trustee to pay in accordance with Section 5.01
from the Interest Funding Account or the Principal Funding Account, as
applicable, on ______________, which date is a Payment Date under the
Supplement, the following amounts as set forth below:

                                      B-5
<PAGE>

                  A) Pursuant to subsection 5.01(a):

                     Interest to be distributed to Class A
                     Certificateholders...............................$
                                                                       ---------

                  B) Pursuant to subsection 5.01(b):

                     On the Expected Final Payment Date or a Special
                     Payment Date, principal to be distributed to the
                     Class A Certificateholders.......................$
                                                                       ---------

                  C) Pursuant to subsection 5.01(c):

                     Interest to be distributed to Class B
                     Certificateholders...............................$
                                                                       ---------

                  D) Pursuant to subsection 5.01(d):

                     On the Expected Final Payment Date or a Special
                     Payment Date, on or after the date Class A
                     Invested Amount is paid in full, principal to
                     be distributed to the Class B
                     Certificateholders...............................$
                                                                       ---------

III. ACCRUED AND UNPAID AMOUNTS

                  After giving effect to the withdrawals and transfers to be
made in accordance with this notice, the following amounts will be accrued and
unpaid with respect to all Monthly Periods preceding the current calendar month.

                  1. Subsection 4.06(a):

                     The aggregate amount of all unreimbursed Class
                     A Investor Charge-Offs...........................$
                                                                       ---------

                  2. Subsection 4.06(a), (b) and 4.08(a):

                     The aggregate amount by which the "Class B
                     Invested Amount" has been reduced pursuant to
                     clauses (c), (d) and (e) of the definition
                     thereof..........................................$
                                                                       ---------

                  3. Subsection 4.06(a), (b), (c) and 4.08(a) and (b):

                     The aggregate amount by which the "Collateral
                     Invested Amount" has been reduced pursuant to
                     clauses (c), (d) and (e) of the definition
                     thereof..........................................$
                                                                       ---------

                                      B-6
<PAGE>

                  IN WITNESS  WHEREOF, the undersigned has duly executed this
Certificate this ______ day of __________________, _______.

                                    AMERICAN EXPRESS TRAVEL RELATED
                                    SERVICES COMPANY, INC., as Servicer

                                    By:
                                        ---------------------------------------
                                        Name:
                                        Title:

                                      B-7
<PAGE>

                                                                       EXHIBIT C

                            FORM OF MONTHLY STATEMENT

                  AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST
                                  SERIES 2003-4

                  Pursuant to the Pooling and Servicing Agreement dated as of
May 16, 1996 (hereinafter as such agreement may have been or may be from time to
time, amended or otherwise modified, the "Pooling and Servicing Agreement"),
among American Express Travel Related Services Company, Inc. ("TRS"), as
Servicer, American Express Centurion Bank and American Express Receivables
Financing Corporation II, as transferors (together, the "Transferors"), and The
Bank of New York, as trustee (the "Trustee"), as supplemented by the Series
2003-4 Supplement, dated as of June 18, 2003 (the "Supplement"), among TRS, the
Transferors and the Trustee, TRS, as Servicer is required to prepare certain
information each month regarding current distributions to the Series 2003-4
Certificateholders and the performance of the American Express Credit Account
Master Trust (the "Trust") during the previous month. The information which is
required to be prepared with respect to the Distribution Date of , and with
respect to the performance of the Trust during the month of is set forth below.
Certain of the information is presented on the basis of an original principal
amount of $1,000 per Series 2003-4 Certificate (a "Certificate"). Certain other
information is presented based on the aggregate amounts for the Trust as a
whole. Capitalized terms used in this Monthly Statement have their respective
meanings set forth in the Pooling and Servicing Agreement and the Supplement.

                  A) Information regarding distributions in respect of the
                     Class A Certificates per $1,000 original certificate
                     principal amount

                     (1) The total amount of the distribution in
                         respect of Class A Certificates, per $1,000
                         original certificate principal amount........$
                                                                       ---------

                     (2) The amount of the distribution set forth in
                         paragraph 1 above in respect of interest on
                         Class A Certificates, per $1,000 original
                         the certificate principal amount.............$
                                                                       ---------

                     (3) The amount of the distribution set forth in
                         paragraph 1 above in respect of principal of
                         the Class A Certificates, per $1,000 original
                         certificate principal amount.................$
                                                                       ---------

                  B) Class A Investor Charge Offs and Reimbursement
                     of Charge Offs

                     (1) The amount of Class A Investor Charge
                         Offs.........................................$
                                                                       ---------

                     (2) The amount of Class A Investor Charge Offs
                         set forth in paragraph 1 above, per $1,000
                         original certificate principal amount........$
                                                                       ---------

                                      C-1
<PAGE>

                     (3) The total amount reimbursed in respect of
                         Class A Investor Charge Offs.................$
                                                                       ---------

                     (4) The amount set forth in paragraph 3 above,
                         per $1,000 original certificate principal
                         amount.......................................$
                                                                       ---------

                     (5) The amount, if any, by which the outstanding
                         principal balance of the Class A Certificates
                         exceeds the Class A Invested Amount after
                         giving effect to all transactions on such
                         Distribution Date............................$
                                                                       ---------

                  C) Information regarding distributions in respect
                     of the Class B Certificates, per $1,000 original
                     certificate principal amount

                     (1) The total amount of the distribution in
                         respect of Class B Certificates, per $1,000
                         original certificate principal amount........$
                                                                       ---------

                     (2) The amount of the distribution set forth in
                         paragraph 1 above in respect of interest on
                         Class B Certificates, per $1,000 original
                         the certificate principal amount.............$
                                                                       ---------

                     (3) The amount of the distribution set forth in
                         paragraph 1 above in respect of principal of
                         the Class B Certificates, per $1,000 original
                         certificate principal amount.................$
                                                                       ---------

                  D) Amount of reductions in Class B Invested Amount
                     pursuant to clauses (c), (d), and (e) of the
                     definition of Class B Invested Amount

                     (1) The amount of reductions in Class B Invested
                         Amount pursuant to clauses (c), (d) and (e)
                         of the definition of Class B Invested
                         Amount.......................................$
                                                                       ---------

                     (2) The amount of the reductions in the Class B
                         Invested Amount set forth in paragraph 1
                         above, per $1,000 original certificate
                         principal amount.............................$
                                                                       ---------

                     (3) The total amount reimbursed in respect of
                         such reductions in the Class B Invested
                         Amount.......................................$
                                                                       ---------

                     (4) The amount set forth in paragraph 3 above,
                         per $1,000 original certificate principal
                         amount.......................................$
                                                                       ---------

                                      C-2
<PAGE>

                     (5) The amount, if any, by which the outstanding
                         principal balance of the Class B Certificates
                         exceeds the Class B Invested Amount after
                         giving effect to all transactions on such
                         Distribution Date............................$
                                                                       ---------

                  E) Information regarding certain distributions to
                      the Collateral Interest Holder

                     (1) The amount distributed to the Collateral
                         Interest Holder in respect of interest on
                         the Collateral Invested Amount...............$
                                                                       --------

                     (2) The amount distributed to the Collateral
                         Interest Holder in respect of principal on
                         the Collateral Invested Amount...............$
                                                                       ---------

                  F) Amount of reductions in Collateral Invested
                     Amount pursuant to clauses (c), (d), and (e)
                     of the definition of Collateral Invested Amount

                     (1) The amount of reductions in the Collateral
                         Invested Amount pursuant to clauses (c), (d)
                         and (e) of the definition of Collateral
                         Invested Amount..............................$
                                                                       ---------

                     (2) The total amount reimbursed in respect of
                         such reductions in the Collateral Invested
                         Amount.......................................$.......
                                                                       ---------

                                        AMERICAN EXPRESS TRAVEL RELATED
                                        SERVICES COMPANY, INC., as Servicer

                                        By:
                                               --------------------------------
                                               Name:
                                               Title:

                                      C-3
<PAGE>

   RECEIVABLES --

Beginning of the Month Principal Receivables:                       $_________

Beginning of the Month Finance Charge Receivables:                  $_________

Beginning of the Month Discounted Receivables:                      $_________

Beginning of the Month Premium Receivables:                         $_________

Beginning of the Month Total Receivables:                           $_________

Removed Principal Receivables:                                      $_________

Removed Finance Charge Receivables:                                 $_________

Removed Total Receivables:                                          $_________

Additional Principal Receivables:                                   $_________

Additional Finance Charge Receivables:                              $_________

Additional Total Receivables:                                       $_________

Discounted Receivables Generated this Period:                       $_________

Premium Receivables Generated this Period:                          $_________

End of the Month Principal Receivables:                             $_________

End of the Month Finance Charge Receivables:                        $_________

End of the Month Discounted Receivables:                            $_________

End of the Month Premium Receivables:                               $_________

End of the Month Total Receivables:                                 $_________

Special Funding Account Balance:                                    $_________

Aggregate Invested Amount (all Master Trust Series):                $_________

End of the Month Transferor Amount:                                 $_________

DELINQUENCIES AND LOSSES --

End of the Month Delinquencies:                                     RECEIVABLES
                                                                    -----------

         30-59 Days Delinquent                                      $_________

         60-89 Days Delinquent                                      $_________

         90+ Days Delinquent                                        $_________

                                      C-4
<PAGE>

         Total 30+ Days Delinquent                                  $_________

Defaulted Accounts During the Month:                                $_________

INVESTED AMOUNTS --

         Class A Initial Invested Amount        $588,200,000

         Class B Initial Invested Amount        $40,800,000

         Collateral Initial Invested Amount     $51,000,000

INITIAL INVESTED AMOUNT                                             $680,000,000

         Class A Invested Amount                $__________

         Class B Invested Amount                $__________

         Collateral Invested Amount             $__________

INVESTED AMOUNT                                                     $_________

         Class A Adjusted Invested Amount                           $_________

         Class B Adjusted Invested Amount                           $_________

ADJUSTED INVESTED AMOUNT                                            $_________

MONTHLY SERVICING FEE                                               $_________

INVESTOR DEFAULT AMOUNT                                             $_________

GROUP II INFORMATION

         WEIGHTED AVERAGE CERTIFICATE RATE FOR ALL SERIES
         IN GROUP II                                                $_________

         GROUP II INVESTOR FINANCE CHARGE COLLECTIONS               $_________

         GROUP II INVESTOR ADDITIONAL AMOUNTS                       $_________

         GROUP II INVESTOR DEFAULT AMOUNT                           $_________

         GROUP II INVESTOR MONTHLY FEES                             $_________

         GROUP II INVESTOR MONTHLY INTEREST                         $_________

                                      C-5
<PAGE>

SERIES 2003-4 INFORMATION

         SERIES 2003-4 ALLOCATION PERCENTAGE                         _________%

         SERIES 2003-4 ALLOCABLE FINANCE CHARGE COLLECTIONS         $_________

         SERIES 2003-4 ADDITIONAL AMOUNTS                           $_________

         SERIES 2003-4 ALLOCABLE DEFAULTED AMOUNT                   $_________

         SERIES 2003-4 MONTHLY FEES                                 $_________

         SERIES 2003-4 ALLOCABLE PRINCIPAL COLLECTIONS              $_________

         SERIES 2003-4 REQUIRED TRANSFEROR AMOUNT                   $_________

         FLOATING ALLOCATION PERCENTAGE                             $_________

         INVESTOR FINANCE CHARGE COLLECTIONS
                                                                     _________%

         INVESTOR DEFAULT AMOUNT                                    $_________

         REALLOCATED INVESTOR FINANCE CHARGE COLLECTIONS            $_________

         PRINCIPAL ALLOCATIONS PERCENTAGE
                                                                     _________%

         AVAILABLE PRINCIPAL COLLECTIONS                            $_________

CLASS A AVAILABLE FUNDS --

CLASS A FLOATING PERCENTAGE
                                                                     _________%

         Class A Floating Percentage of         $__________
         Reallocated Investor Finance Charge
         Collections

         Other Amounts                          $__________

TOTAL CLASS A AVAILABLE FUNDS                                       $_________

         Class A Monthly Interest               $__________

         Class A Servicing Fee (if applicable)  $__________

         Class A Investor Default Amount        $__________

TOTAL CLASS A EXCESS SPREAD                                         $_________

CLASS A REQUIRED AMOUNT                                             $_________

                                      C-6
<PAGE>

CLASS B AVAILABLE FUNDS --                                          $_________

CLASS B FLOATING PERCENTAGE                                          _________%

CLASS B AVAILABLE FUNDS                                             $_________

         Class B Monthly Interest               $_________

         Class B Servicing Fee (if applicable)  $_________

COLLATERAL AVAILABLE FUNDS COLLATERAL FLOATING PERCENTAGE
                                                                     _________%

COLLATERAL AVAILABLE FUNDS                                          $_________

         Collateral Interest Servicing Fee (if applicable)          $_________

TOTAL COLLATERAL EXCESS SPREAD                                      $_________

TOTAL CLASS B EXCESS SPREAD                                         $_________

EXCESS SPREAD --

TOTAL EXCESS SPREAD                                                 $_________

         Excess Spread Applied to Class A
         Required Amount                        $_________

         Excess Spread Applied to Class A
         Investor Charge                        $_________
         Offs

         Excess Spread Applied to Class B
         Required Amount                        $_________

         Excess Spread Applied to Reductions
         of Class B                             $_________

         Invested Amount pursuant to clauses
         (c), (d) and (e)

         Excess Spread Applied to Collateral
         Monthly Interest                       $_________

         Excess Spread Applied to Unpaid
         Monthly Servicing Fee                  $_________

         Excess Spread Applied Collateral
         Default Amount                         $_________

                                      C-7
<PAGE>

         Excess Spread Applied to Reductions of $_________
         Collateral Invested Amount Pursuant to
         Clauses (c), (d) and (e)

         Excess Spread Applied to Reserve
         Account                                $_________

         Excess Spread Applied to Other Amounts
         Owed to Collateral Interest Holder     $_________

TOTAL EXCESS FINANCE CHARGE                     $_________
COLLECTIONS ELIGIBLE FOR OTHER
EXCESS ALLOCATION SERIES

EXCESS FINANCE CHARGES COLLECTIONS

TOTAL EXCESS FINANCE CHARGE COLLECTIONS FOR
ALL ALLOCATION SERIES                           $_________

SERIES 2003-4 EXCESS FINANCE CHARGE COLLECTIONS

EXCESS FINANCE CHARGE COLLECTIONS ALLOCATED
TO SERIES 2003-4                                $_________

         Excess Finance Charge Collections      $_________
         Applied to Class A Required Amount

         Excess Finance Charge Collections      $_________
         Applied to Class A Investor
         Charge Offs

         Excess Finance Charge Collections      $_________
         Applied to  Class B Required Amount

         Excess Finance Charge Collections      $_________
         Applied to Reductions of Class B
         Invested Amount Pursuant to
         Clauses (c), (d) and (e)

         Excess Finance Charge Collections      $_________
         Applied to Collateral
         Monthly Interest

         Excess Finance Charge Collections      $_________
         Applied to Unpaid Monthly
         Servicing Fee

         Excess Finance Charge Collections      $_________
         Applied to Collateral Default Amount

                                      C-8
<PAGE>

         Excess Finance Charge Collections      $_________
         Applied to Reductions of Collateral
         Invested Amount Pursuant to Clauses
         (c), (d) and (e)

         Excess Finance Charge Collections      $_________
         Applied to Reserve Account

         Excess Finance Charge Collections      $_________
         Applied to Other Amounts Owed to
         Collateral Interest Holder

YIELD AND BASE RATE --

         Base Rate (Current Month)              _________%

         Base Rate (Prior Month)                _________%

         Base Rate (Two Months Ago)             _________%

THREE MONTH AVERAGE BASE RATE                                       _________%

         Series Adjusted Portfolio Yield
         (Current Month)                        _________%

         Series Adjusted Portfolio Yield
         (Prior Month)                          _________%

         Series Adjusted Portfolio Yield
         (Two Months Ago)                       $_________%

THREE MONTH AVERAGE SERIES
ADJUSTED PORTFOLIO YIELD                                            _________%

PRINCIPAL COLLECTIONS --

CLASS A PRINCIPAL PERCENTAGE                                        _________%

         Class A Principal Collections          $_________

CLASS B PRINCIPAL PERCENTAGE                                        _________%

         Class B Principal Collections          $_________

COLLATERAL PRINCIPAL PERCENTAGE                                     _________%

                                      C-9
<PAGE>

         Collateral Principal Collections       $_________

AVAILABLE PRINCIPAL COLLECTIONS                                     $_________

REALLOCATED PRINCIPAL COLLECTIONS                                   $_________

SERIES 2003-4 PRINCIPAL SHORTFALL                                   $_________

SHARED PRINCIPAL COLLECTIONS ALLOCABLE FROM OTHER
PRINCIPAL SHARING SERIES                                            $_________

ACCUMULATION --  -

         Controlled Accumulation Amount         $_________

         Deficit Controlled Accumulation Amount $_________

CONTROLLED DEPOSIT AMOUNT                                           $_________

PRINCIPAL FUNDING ACCOUNT BALANCE                                   $_________

SHARED PRINCIPAL COLLECTIONS
ELIGIBLE FOR OTHER PRINCIPAL
SHARING SERIES                                                      $_________

INVESTOR CHARGE OFFS AND REDUCTIONS--

CLASS A INVESTOR CHARGE OFFS                                        $_________

REDUCTIONS IN CLASS B INVESTED AMOUNT
(OTHER THAN BY PRINCIPAL PAYMENTS)                                  $_________

REDUCTIONS IN COLLATERAL INVESTED AMOUNT (OTHER THAN BY
PRINCIPAL PAYMENTS)                                                 $_________

PREVIOUS CLASS A CHARGE OFFS REIMBURSED                             $_________

                                      C-10
<PAGE>

PREVIOUS CLASS B INVESTED AMOUNT
REDUCTIONS REIMBURSED                                               $_________

PREVIOUS COLLATERAL INVESTED AMOUNT
REDUCTIONS REIMBURSED                                               $_________

                          AMERICAN EXPRESS TRAVEL RELATED
                          SERVICES COMPANY, INC., as Servicer

                          By:
                              ----------------------------------------------
                              Name:
                              Title:

                                      C-11
<PAGE>

                                                                       EXHIBIT D

                     FORM OF MONTHLY SERVICER'S CERTIFICATE

             AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC.

                  AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST
                                  SERIES 2003-4

                  The undersigned, a duly authorized representative of American
Express Travel Related Services Company, Inc., as Servicer ("TRS"), pursuant to
the Pooling and Servicing Agreement, dated as of May 16, 1996 (as amended and
supplemented, the "Agreement"), as supplemented by the Series 2003-4 Supplement,
dated as of June 18, 2003 (as amended and supplemented, the "Series
Supplement"), among TRS, as Servicer, American Express Centurion Bank and
American Express Receivables Financing Corporation II, as Transferors, and The
Bank of New York, as Trustee, does hereby certify as follows:

                  1. Capitalized terms used in this Certificate have their
respective meanings as set forth in the Agreement or the Series Supplement, as
applicable.

                  2. TRS is, as of the date hereof, the Servicer under the
Agreement.

                  3. The undersigned is a Servicing Officer.

                  4. This Certificate relates to the Distribution Date occurring
on ____________ ___, 200_.

                  5. As of the date hereof, to the best knowledge of the
undersigned, the Servicer has performed in all material respects all its
obligations under the Agreement through the Monthly Period preceding such
Distribution Date [or, if there has been a default in the performance of any
such obligation, set forth in detail the (i) nature of such default, (ii) the
action taken by the Servicer, if any, to remedy such default and (iii) the
current status of each such default; if applicable, insert "None"].

                  6. As of the date hereof, to the best knowledge of the
undersigned, no Pay Out Event occurred on or prior to such Distribution Date.

                  IN WITNESS  WHEREOF,  the undersigned has duly executed and
delivered this Certificate this ____ day of _________________, 200_.

                                  AMERICAN EXPRESS TRAVEL RELATED
                                  SERVICES COMPANY, INC.,
                                  as Servicer

                                  By:
                                      ------------------------------------------
                                      Name:
                                      Title:

                                      D-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00053-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00053-of-00352.parquet"}]]