Document:

EXHIBIT 4.3

 

WORLD FINANCIAL NETWORK CREDIT CARD MASTER
NOTE TRUST

 

Issuer

 

And

 

BNY MIDWEST TRUST COMPANY

 

Indenture Trustee

 

ISSUANCE SUPPLEMENT

 

dated August 14, 2003

to

 

Series 2003-A INDENTURE SUPPLEMENT

 

Dated as of June 19, 2003

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I.

  	
  Designation of Additional Classes of Series
  2003-A Notes

  
	
   

  
	
  Section 1.1

  	
  Designation

  
	
   

  
	
  ARTICLE
  II.

  	
  Definitions

  
	
   

  
	
  Section 2.1

  	
  Definitions

  
	
   

  
	
  ARTICLE
  III.

  	
  Additional Provisions Applicable to Class
  A-2 Notes, Class B Notes and Class C-2 Notes

  
	
   

  
	
  Section 3.1

  	
  Class
  A-2 Swap, Class B Swap and Class C-2 Swap

  
	
   

  
	
  Section 3.2

  	
  Delivery
  and Payment for the Class A-2 Notes, the Class B Notes and the Class C-2
  Notes

  
	
   

  
	
  Section 3.3

  	
  Terms
  Applicable to Initial Interest Period for the Class A-2 Notes, the Class B
  Notes and the Class C-2 Notes

  
	
   

  
	
  ARTICLE
  IV.

  	
  Miscellaneous Provisions

  
	
   

  
	
  Section 4.1

  	
  Ratification
  of Indenture; Amendments

  
	
   

  
	
  Section 4.2

  	
  Counterparts

  
	
   

  
	
  Section 4.3

  	
  GOVERNING LAW

  
	
   

  
	
  Section 4.4

  	
  Limitation
  of Liability

  
	
   

  
	
  Section 4.5

  	
  Rights
  of the Indenture Trustee

  
	
   

  
	
  Section 4.6

  	
  Instruction
  to Owner Trustee

  
	
   

  
	
  EXHIBITS

  	
   

  
	
   

  	
   

  
	
  EXHIBIT A-1

  	
  FORM
  OF CLASS A-2 NOTE

  
	
   

  	
   

  
	
  EXHIBIT
  A-2

  	
  FORM
  OF CLASS B NOTE

  
	
   

  	
   

  
	
  EXHIBIT
  A-3

  	
  FORM
  OF CLASS C-2 NOTE

  
	
   

  	
   

  
	
  EXHIBIT
  B-1

  	
  FORM OF CLASS A-2 SWAP

  
	
   

  	
   

  
	
  EXHIBIT
  B-2

  	
  FORM OF CLASS B SWAP

  
	
   

  	
   

  
	
  EXHIBIT
  B-3

  	
  FORM OF CLASS C-2 SWAPS

  
	
   

  	
   

  
	
  SCHEDULE I

  	
  PERFECTION REPRESENTATIONS, WARRANTIES AND COVENANTS

  
						

 

i

 

ISSUANCE
SUPPLEMENT, dated as of August 14, 2003 (this “Issuance Supplement”), to
SERIES 2003-A INDENTURE SUPPLEMENT, dated as of June 19, 2003 (the “Indenture
Supplement”), between WORLD FINANCIAL NETWORK CREDIT CARD MASTER NOTE
TRUST, a statutory trust organized and existing under the laws of the State of
Delaware (herein, the “Issuer” or the “Trust”), and BNY MIDWEST
TRUST COMPANY, a trust company organized and existing under the laws of the
State of Illinois, not in its individual capacity, but solely as indenture
trustee (herein, together with its successors in the trusts thereunder as provided
in the Master Indenture referred to below, the “Indenture Trustee”)
under the Master Indenture, dated as of August 1, 2001 (the “Indenture”),
between the Issuer and the Indenture Trustee (the Indenture, together with the
Indenture Supplement and this Issuance Supplement, the “Agreement”).

 

Pursuant to Section 2.11
of the Indenture, the Transferor may direct the Issuer to issue one or more
Series of Notes.  Pursuant to the
Indenture Supplement, the Transferor and the Issuer have created a Series of
Notes to be known generally as the Series 2003-A Notes, one or more subclasses
of which were issued on the Closing Date and one or more additional classes or
subclasses of which will be issued on the Additional Issuance Date.  The Principal Terms of this Series are set
forth in the Indenture Supplement to the Indenture, as supplemented by this
Issuance Supplement.

 

Pursuant to
this Issuance Supplement, the Transferor and the Issuer will create a subclass
of Notes to be included among the Class A Series 2003-A Asset Backed Notes, a
class of Notes to be included among the Class B Series 2003-A Asset Backed
Notes and a subclass of Notes to be included among the Class C Series 2003-A
Asset Backed Notes and specify certain supplemental terms relating to each such
class or subclass.

 

ARTICLE I.

 

Designation of Additional Classes of Series 2003-A Notes

 

Section 1.1                                      Designation.

 

(a)                                  There
are hereby created three classes or subclasses of Notes, which shall be
designated and known generally as:

 

(a)                                  the
Class A-2 Series 2003-A Asset Backed Notes (the “Class A-2 Notes”),
which shall be a subclass of the Class A Series 2003-A Asset Backed Notes;

 

(b)                                 the
Class B Series 2003-A Asset Backed Notes (the “Class B Notes”);

 

(c)                                  the
Class C-2 Series 2003-A Asset Backed Notes (the “Class C-2 Notes”),
which shall be a subclass of the Class C Series 2003-A Asset Backed Notes.

 

(b)                                 The
Class A-2 Notes, the Class B Notes and the Class C-2 Notes shall be issued on
the Additional Issuance Date.

 

 

ARTICLE II.

 

Definitions

 

Section 2.1                                      Definitions.

 

(a)                                  Whenever
used in this Issuance 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
Cash Collateral Deposit” means $11,500,000.

 

“Additional
Issuance Date” means August 14, 2003.

 

“Class A-2
Counterparty” means JPMorgan Chase Bank or the counterparty under any
interest rate swap with respect to the Class A-2 Notes obtained pursuant to Section
3.1.

 

“Class A-2
Note Initial Principal Balance” means $368,000,000.

 

“Class A-2
Note Interest Rate” means a per annum rate of 0.37% in excess of LIBOR
determined on the LIBOR Determination Date for the applicable Distribution
Period.

 

“Class A-2
Notes” means any one of the Notes executed by the Issuer and
authenticated  by or on behalf of the
Indenture Trustee, substantially in the form of Exhibit A-1.

 

“Class A-2
Swap” means an interest rate swap agreement with respect to the Class A-2
Notes between the Issuer and the Class A-2 Counterparty substantially in the
form of Exhibit B-1 to this Issuance Supplement, or such other form as shall
have satisfied the Rating Agency Condition.

 

“Class A-2
Swap Rate” means, with respect to any Distribution Date, the fixed rate per
annum indicated on Schedule I to the ISDA confirmation for the Class A-2 Swap
for the period end date falling on such Distribution Date.

 

“Class B
Counterparty” means JPMorgan Chase Bank or the counterparty under any
interest rate swap with respect to the Class B Notes obtained pursuant to Section
3.1.

 

“Class B
Note Initial Principal Balance” means $51,000,000.

 

“Class B
Note Interest Rate” means a per annum rate of 1.10% in excess of LIBOR
determined on the LIBOR Determination Date for the applicable Distribution
Period.

 

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

 

2

 

“Class B
Swap” means an interest rate swap agreement with respect to the Class B
Notes between the Issuer and the Class B Counterparty substantially in the form
of Exhibit B-2 to this Issuance Supplement, or such other form as shall
have satisfied the Rating Agency Condition.

 

“Class B
Swap Rate” means, with respect to any Distribution Date, the fixed rate per
annum indicated on Schedule I to the ISDA confirmation for the Class B Swap for
the period end date falling on such Distribution Date.

 

“Class C-2
Counterparty” means JPMorgan Chase Bank or the counterparty under any
interest rate swap with respect to the Class C-2 Notes obtained pursuant to Section
3.1.

 

“Class C-2
Note Initial Principal Balance” means $41,000,000.

 

“Class C-2
Note Interest Rate” means a per annum rate of 2.45% in excess of LIBOR
determined on the LIBOR Determination Date for the applicable Distribution
Period.

 

“Class C-2
Notes” means any one of the Notes executed by the Issuer and authenticated
by or on behalf of the Indenture Trustee, substantially in the form of Exhibit
A-3.

 

“Class C-2
Swap” means an interest rate swap agreement with respect to the Class C-2
Notes between the Issuer and the Class C-2 Counterparty substantially in the
form of Exhibit B-3 to this Issuance Supplement, or such other form as
shall have satisfied the Rating Agency Condition.

 

“Class C-2
Swap Rate” means, with respect to any Distribution Date, the fixed rate per
annum indicated on Schedule I to the ISDA confirmation for the Class C-2 Swap
for the period end date falling on such Distribution Date.

 

(b)                                 Each
capitalized term defined herein shall relate to the Series 2003-A Notes and no
other Series of Notes 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 Indenture Supplement, or, if not defined therein, in  or the Indenture Supplement Annex A to the
Master Indenture.

 

(c)                                  The
interpretive rules specified in Section 1.2 of the Master Indenture also
apply to this Issuance Supplement.  If
any term or provision contained herein shall conflict with or be inconsistent
with any term or provision contained in the Master Indenture, the terms and
provisions of this Issuance Supplement shall be controlling.

 

ARTICLE III.

 

Additional Provisions Applicable to Class A-2 Notes, Class B Notes and
Class C-2 Notes

 

Section 3.1                                      Class
A-2 Swap, Class B Swap and Class C-2 Swap. 
(a) On or prior to the Additional Issuance Date, the Issuer shall enter
into a Class A-2 Swap with the Class A-2 Counterparty, a Class B Swap with the
Class B Counterparty and a Class C-2 Swap with the Class C-2 Counterparty for
the benefit of the Class A-2 Noteholders, the Class B Noteholders and Class C-2
Noteholders, respectively.  The
aggregate notional amount under the Class A-2

 

3

 

Swap shall, at any time, be
equal to the Class A-2 Note Principal Balance at such time.  The aggregate notional amount under the Class
B Swap, shall at any time, be equal to the Class B Note Principal Balance at
such time.  The aggregate notional
amount under the Class C-2 Swap shall, at any time, be equal to the Class C-2
Note Principal Balance at such time. 
Net Swap Receipts payable by the Class A-2 Counterparty, the Class B
Counterparty or the Class C-2 Counterparty shall be deposited by the Indenture
Trustee in the Collection Account on the day received and treated as Available
Finance Charge Collections.  On any
Distribution Date when there shall be a Class A-2 Net Swap Payment, such Class
A-2 Net Swap Payment shall be paid as provided in subsection 4.4(a)(i) of the
Indenture Supplement.  On any
Distribution Date when there shall be a Class B Net Swap Payment, such Class B
Net Swap Payment shall be paid as provided in subsection 4.4(a)(ii) of
the Indenture Supplement.  On any
Distribution Date when there shall be a Class C-2 Net Swap Payment, such Class
C-2 Net Swap Payment shall be paid as provided in subsection 4.4(a)(iv)
of the Indenture Supplement.  On any
Distribution Date when there shall be early termination payments or any other
miscellaneous payments payable by the Issuer to the Counterparties, such
amounts shall be paid as provided in subsection 4.4(a)(x) of the
Indenture Supplement.

 

(b)                                 The
Servicer may, upon satisfaction of the Rating Agency Condition, and, when
required under the terms of the existing Class A-2 Swap, Class B Swap or Class
C-2 Swap, shall, obtain a replacement Class A-2 Swap, Class B Swap or Class C-2
Swap, as applicable.

 

Section 3.2                                      Delivery
and Payment for the Class A-2 Notes, the Class B Notes and the Class C-2 Notes.  The Class A-2 Notes, the Class B Notes and
the Class C-2 Notes shall be Book-Entry Notes and shall be delivered as
Registered Notes as provided in Sections 2.1 and 2.13 of the Indenture.  The Issuer shall execute and issue, and the
Indenture Trustee shall authenticate, the Class A-2 Notes, the Class B Notes
and the Class C-2 Notes in accordance with Section 2.3 of the
Indenture.  The Indenture Trustee shall
deliver the Class A-2 Notes, the Class B Notes and the Class C-2 Notes to or
upon the written order of the Trust when so authenticated.

 

Section 3.3                                      Terms
Applicable to Initial Interest Period for the Class A-2 Notes, the Class B
Notes and the Class C-2 Notes.

 

(a)                                  The
initial Distribution Date for the Class A-2 Notes, the Class B Notes and the
Class C-2 Notes shall be September 15, 2003.

 

(b)                                 For
purposes of determining Class A-2 Note Interest Rate, the Class B Note Interest
Rate and the Class C-2 Note Interest Rate for the initial Distribution Period,
(i) the LIBOR Determination Date for the initial Distribution Period, shall be
August 12, 2003 and (ii) LIBOR for the initial Distribution Period will be
determined by straight line interpolation (based on the actual number of days
in the initial Distribution Period) between two rates determined in accordance
with the definition of LIBOR, one of which will be the determined for a
Designated Maturity of one month and the other of which will be determined for
a Designated Maturity of two months.

 

4

 

ARTICLE IV.

 

Miscellaneous
Provisions

 

Section 4.1                                      Ratification
of Indenture; Amendments.  As
supplemented by this Issuance Supplement, the Indenture and the Indenture
Supplement are in all respects ratified and confirmed and the Indenture as so
supplemented by the Indenture Supplement and this Issuance Supplement shall be
read, taken and construed as one and the same instrument.  This Issuance Supplement may (subject to the
following proviso) be amended only by a Supplemental Indenture entered in
accordance with the terms of Section 10.1 or 10.2 of the
Indenture and with the written consent of the Class A-1 Counterparty, the Class
A-2 Counterparty, the Class B Counterparty, the Class C-1 Counterparty or the
Class C-2 Counterparty prior to the date on which such Supplemental Indenture
takes effect if any provision of such Supplemental Indenture materially and adversely
affects the timing, amount or priority of distributions to be made to such
Class A-1 Counterparty, Class A-2 Counterparty, Class B Counterparty, Class C-1
Counterparty or Class C-2 Counterparty, respectively.  For purposes of the application of Section 10.2 to any
amendment of this Issuance Supplement, the Series 2003-A Noteholders shall be
the only Noteholders whose vote shall be required.

 

Section 4.2                                      Counterparts.  This Indenture Supplement may be executed in
two or more counterparts, and by different parties on separate counterparts,
each of which shall be an original, but all of which shall constitute one and
the same instrument.

 

Section 4.3                                      GOVERNING
LAW.  THIS INDENTURE 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 4.4                                      Limitation
of Liability.  Notwithstanding any
other provision herein or elsewhere, this Agreement has been executed and
delivered by Chase Manhattan Bank USA, National Association, not in its
individual capacity, but solely in its capacity as Owner Trustee of the Trust,
in no event shall Chase Manhattan Bank USA, National Association in its
individual capacity have any liability in respect of the representations,
warranties, or obligations of the Trust hereunder or under any other document,
as to all of which recourse shall be had solely to the assets of the Trust, and
for all purposes of this Agreement and each other document, the Owner Trustee
(as such or in its individual capacity) shall be subject to, and entitled to
the benefits of, the terms and provisions of the Trust Agreement.

 

Section 4.5                                      Rights
of the Indenture Trustee.  The
Indenture Trustee shall have herein the same rights, protections, indemnities
and immunities as specified in the Master Indenture.

 

5

 

Section 4.6                                      Instruction
to Owner Trustee.  By their execution
hereof, the Transferor hereby authorizes and instructs the Owner Trustee to
execute on behalf of the Issuer the Class A-2 Notes, Class B Notes, Class C-2
Notes, this Issuance Supplement, any Issuer Orders relating to such Notes and
this Issuance Supplement, the Class A-2 Swap, Class B Swap, Class C-2 Swap and
any documents related to or connected with any of the foregoing.

 

[SIGNATURE PAGE FOLLOWS]

 

6

 

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

 

	
   

  	
  WORLD
  FINANCIAL NETWORK CREDIT

  CARD MASTER NOTE TRUST,  as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:  Chase Manhattan Bank USA, National

  Association, not in its individual capacity, but

  solely as Owner Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John J. Cashin

  
	
   

  	
   

  	
  Name:

  	
  John J.
  Cashin

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BNY MIDWEST
  TRUST COMPANY, as

  Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sally Tokich

  
	
   

  	
   

  	
  Name:

  	
  Sally Tokich

  
	
   

  	
   

  	
  Title:

  	
  Assistant
  Treasurer

  

 

	
  Acknowledged
  and Accepted:

  
	
   

  
	
  WORLD FINANCIAL NETWORK NATIONAL BANK,

  as Servicer

  
	
   

  
	
  By:

  	
  /s/ Robert
  Armiak

  	
   

  
	
   

  	
  Name:

  	
  Robert
  Armiak

  
	
   

  	
  Title:

  	
  Senior Vice
  President and Treasurer

  
	
   

  
	
  WFN CREDIT COMPANY, LLC

  as Transferor

  
	
   

  
	
  By:

  	
  /s/ Robert
  Armiak

  	
   

  
	
   

  	
  Name:

  	
  Robert
  Armiak

  
	
   

  	
  Title:

  	
  Senior Vice
  President and Treasurer

  
				

 

Series 2003-A Indenture

Supplement

 

 

S-1

 

EXHIBIT A-1

 

FORM OF CLASS
A-2 SERIES 2003-A FLOATING RATE ASSET BACKED NOTE

 

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

 

THE HOLDER OF
THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT WILL NOT AT ANY
TIME INSTITUTE AGAINST  WORLD FINANCIAL
NETWORK CREDIT CARD MASTER TRUST, A COMMON LAW TRUST ORGANIZED UNDER THE LAWS
OF NEW YORK (“WFNMT”), THE TRANSFEROR OR THE ISSUER, OR SOLICIT OR JOIN OR
COOPERATE WITH OR ENCOURAGE OR ENCOURAGE ANY INSTITUTION IN INSTITUTING AGAINST
WFNMT, THE TRANSFEROR OR THE ISSUER, ANY BANKRUPTCY, REORGANIZATION,
ARRANGEMENT, INSOLVENCY OR LIQUIDATION PROCEEDINGS, OR OTHER PROCEEDINGS UNDER
ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW IN CONNECTION WITH
ANY OBLIGATION RELATING TO THE NOTES, THE INDENTURE OR ANY OF THE TRANSACTION
DOCUMENTS.

 

THE HOLDER OF
THIS CLASS A-2 NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A
BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE CLASS A-2 NOTES AS INDEBTEDNESS
OF THE ISSUER FOR APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX
LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON, OR MEASURED BY, INCOME.

 

THE HOLDER OF
THIS CLASS A-2 NOTE SHALL BE DEEMED TO REPRESENT AND WARRANT THAT EITHER (I) IT
IS NOT ACQUIRING THE NOTE WITH THE PLAN ASSETS OF AN “EMPLOYEE BENEFIT PLAN” AS
DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
AS AMENDED (“ERISA”), WHICH IS SUBJECT TO TITLE I OF ERISA, A “PLAN” AS DEFINED
IN SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”),
AN ENTITY DEEMED TO HOLD THE PLAN ASSETS OF ANY OF THE FOREGOING BY REASON OF
INVESTMENT BY AN EMPLOYEE BENEFIT PLAN OR PLAN IN SUCH ENTITY, OR A
GOVERNMENTAL PLAN SUBJECT TO APPLICABLE LAW THAT IS SUBSTANTIALLY SIMILAR TO
THE FIDUCIARY RESPONSIBILITY PROVISIONS OF ERISA OR SECTION 4975 OF THE CODE
(EACH SUCH ENTITY A “BENEFIT PLAN”); OR (II) THE ACQUISITION AND HOLDING OF THE
CLASS A-2 NOTE WILL NOT GIVE RISE TO A NON-EXEMPT PROHIBITED TRANSACTION

 

A-1-1

 

UNDER SECTION 406 OF ERISA OR
SECTION 4975 OF THE CODE (OR, IN THE CASE OF A GOVERNMENTAL PLAN, ANY
SUBSTANTIALLY SIMILAR APPLICABLE LAW).

 

A-1-2

 

	
  REGISTERED

  	
  $368,000,000

  
	
  No. R-1

  	
  CUSIP NO.                    

  

 

WORLD FINANCIAL NETWORK CREDIT CARD

MASTER NOTE TRUST SERIES 2003-A

 

CLASS A-2 SERIES 2003-A FLOATING RATE ASSET BACKED NOTE

 

World
Financial Network Credit Card Master Note Trust (herein referred to as the
“Issuer” or the “Trust”), a Delaware statutory trust governed by an Amended and
Restated Trust Agreement dated as of August 1, 2001, for value received, hereby
promises to pay to Cede & Co., or registered assigns, subject to the
following provisions, the principal sum of THREE HUNDRED SIXTY-EIGHT
MILLION DOLLARS, or such greater or lesser amount as determined in
accordance with the Indenture, on the March 2012 Distribution Date, except as
otherwise provided below or in the Indenture. 
The Issuer will pay interest on the unpaid principal amount of this Note
at the Class A-2 Note Interest Rate on each Distribution Date until the
principal amount of this Note is paid in full. 
Interest on this Note will accrue for each Distribution Date from and
including the most recent Distribution Date on which interest has been paid to
but excluding such Distribution Date or, for the initial Distribution Date,
from and including the Additional Issuance Date to but excluding such
Distribution Date.  Interest will be computed
on the basis of a 360-day year and the actual number of days elapsed.  Principal of this Note shall be paid in the
manner specified in the Indenture Supplement referred to on the reverse hereof.

 

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

 

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

 

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

 

A-1-3

 

IN WITNESS WHEREOF, the Issuer
has caused this Class A-2 Note to be duly executed.

 

	
   

  	
  WORLD
  FINANCIAL NETWORK CREDIT

  CARD MASTER NOTE TRUST,

  
	
   

  	
  as Issuer

  
	
   

  	
  By:  Chase Manhattan Bank USA, National

  Association, not in its individual capacity but solely

  as Owner Trustee under the Trust Agreement

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

Dated:  August
[      ], 2003

 

A-1-4

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Class A-2
Notes described in the within-mentioned Indenture.

 

	
   

  	
  BNY MIDWEST
  TRUST COMPANY,

  as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Authorized Signatory

  
	
   

  	
  Dated: 

  	
   

  
				

 

A-1-5

 

WORLD FINANCIAL NETWORK CREDIT CARD

MASTER NOTE TRUST SERIES 2003-A

 

CLASS A-2 SERIES 2003-A FLOATING RATE ASSET BACKED NOTE

 

Summary of Terms and Conditions

 

This Class A-2
Note is one of a duly authorized issue of Notes of the Issuer, designated as
World Financial Network Credit Card Master Note Trust, Series 2003-A (the
“Series 2003-A Notes”), issued under a Master Indenture dated as of August 1,
2001 (the “Master Indenture”), between the Issuer and BNY Midwest Trust
Company, as indenture trustee (the “Indenture Trustee”), as supplemented by the
Indenture Supplement dated as of June 19, 2003 (the “Indenture Supplement”) and
the Issuance Supplement dated as of August 14, 2003 (the “Issuance
Supplement”), and representing the right to receive certain payments from the
Issuer.  The term “Indenture,” unless
the context otherwise requires, refers to the Master Indenture as supplemented
by the Indenture Supplement and the Issuance Supplement.  The Notes are subject to all of the terms of
the Indenture.  All terms used in this
Note that are defined in the Indenture shall have the meanings assigned to them
in or pursuant to the Indenture.  In the
event of any conflict or inconsistency between the Indenture and this Note, the
Indenture shall control.

 

The Class A-1
Notes, Class B Notes, Class C-1 Notes and the Class C-2 Notes also have been,
or will be, issued under the Indenture.

 

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

 

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

 

THIS CLASS A-2
NOTE DOES NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN, THE ISSUER, WORLD
FINANCIAL NETWORK NATIONAL BANK, WFN CREDIT COMPANY, LLC, OR ANY OF THEIR
AFFILIATES, AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

 

The Issuer,
the Transferor, the Indenture Trustee and any agent of the Issuer, the
Transferor or the Indenture Trustee shall treat the person in whose name this
Class A-2 Note is registered as the owner hereof for all purposes, and neither
the Issuer, the Transferor, the Indenture Trustee nor any agent of the Issuer,
the Transferor or the Indenture Trustee shall be affected by notice to the
contrary.

 

THIS CLASS A-2
NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REFERENCE TO ITS CONFLICT OF

 

A-1-6

 

LAW PROVISIONS, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED
IN ACCORDANCE WITH SUCH LAWS.

 

A-1-7

 

ASSIGNMENT

 

Social Security or other
identifying number of assignee
                            

 

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

 

	
  Dated:

  	
   

  	
   

  	
   

  	
  **

  
	
   

  	
  Signature
  Guaranteed:

  

 

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

 

A-1-8

 

EXHIBIT A-2

 

FORM OF CLASS
B SERIES 2003-A FLOATING RATE ASSET BACKED NOTE

 

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

 

THE HOLDER OF
THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT WILL NOT AT ANY
TIME INSTITUTE AGAINST  WORLD FINANCIAL
NETWORK CREDIT CARD MASTER TRUST, A COMMON LAW TRUST ORGANIZED UNDER THE LAWS
OF NEW YORK (“WFNMT”), THE TRANSFEROR OR THE ISSUER, OR SOLICIT OR JOIN OR
COOPERATE WITH OR ENCOURAGE OR ENCOURAGE ANY INSTITUTION IN INSTITUTING AGAINST
WFNMT, THE TRANSFEROR OR THE ISSUER, ANY BANKRUPTCY, REORGANIZATION,
ARRANGEMENT, INSOLVENCY OR LIQUIDATION PROCEEDINGS, OR OTHER PROCEEDINGS UNDER
ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW IN CONNECTION WITH
ANY OBLIGATION RELATING TO THE NOTES, THE INDENTURE OR ANY OF THE TRANSACTION
DOCUMENTS.

 

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

 

THE HOLDER OF
THIS CLASS B NOTE SHALL BE DEEMED TO REPRESENT AND WARRANT THAT EITHER (I) IT
IS NOT ACQUIRING THE NOTE WITH THE PLAN ASSETS OF AN “EMPLOYEE BENEFIT PLAN” AS
DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
AS AMENDED (“ERISA”), WHICH IS SUBJECT TO TITLE I OF ERISA, A “PLAN” AS DEFINED
IN SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”),
AN ENTITY DEEMED TO HOLD THE PLAN ASSETS OF ANY OF THE FOREGOING BY REASON OF
INVESTMENT BY AN EMPLOYEE BENEFIT PLAN OR PLAN IN SUCH ENTITY, OR A
GOVERNMENTAL PLAN SUBJECT TO APPLICABLE LAW THAT IS SUBSTANTIALLY SIMILAR TO THE
FIDUCIARY RESPONSIBILITY PROVISIONS OF ERISA OR SECTION 4975 OF THE CODE (EACH
SUCH ENTITY A “BENEFIT PLAN”); OR (II) THE ACQUISITION AND HOLDING OF THE CLASS
B NOTE

 

A-2-1

 

WILL NOT GIVE RISE TO A NON-EXEMPT
PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE
(OR, IN THE CASE OF A GOVERNMENTAL PLAN, ANY SUBSTANTIALLY SIMILAR APPLICABLE
LAW).

 

A-2-2

 

	
  REGISTERED

  	
  $51,000,000

  
	
  No. R-1

  	
  CUSIP
  NO.                   

  

 

WORLD FINANCIAL NETWORK CREDIT CARD

MASTER NOTE TRUST SERIES 2003-A

 

CLASS B SERIES 2003-A FLOATING RATE ASSET BACKED NOTE

 

World
Financial Network Credit Card Master Note Trust (herein referred to as the
“Issuer” or the “Trust”), a Delaware statutory trust governed by an Amended and
Restated Trust Agreement dated as of August 1, 2001, for value received, hereby
promises to pay to Cede & Co., or registered assigns, subject to the
following provisions, the principal sum of FIFTY-ONE MILLION DOLLARS, or such
greater or lesser amount as determined in accordance with the Indenture, on the
March 2012 Distribution Date, except as otherwise provided below or in the
Indenture.  The Issuer will pay interest
on the unpaid principal amount of this Note at the Class B Note Interest Rate
on each Distribution Date until the principal amount of this Note is paid in
full.  Interest on this Note will accrue
for each Distribution Date from and including the most recent Distribution Date
on which interest has been paid to but excluding such Distribution Date or, for
the initial Distribution Date, from and including the Additional Issuance Date
to but excluding such Distribution Date. 
Interest will be computed on the basis of a 360-day year and the actual
number of days elapsed.  Principal of
this Note shall be paid in the manner specified in the Indenture Supplement
referred to on the reverse hereof.

 

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

 

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

 

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

 

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

 

A-2-3

 

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

 

	
   

  	
  WORLD
  FINANCIAL NETWORK CREDIT

  CARD MASTER NOTE TRUST,

  as Issuer

  
	
   

  	
  By:  Chase Manhattan Bank USA, National

  Association, not in its individual capacity but solely

  as Owner Trustee under the Trust Agreement

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
  Dated:  August [     ],
  2003

  	
   

  

 

A-2-4

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

	
   

  	
  BNY MIDWEST
  TRUST COMPANY,

  as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Authorized Signatory

  
	
   

  	
  Dated: 

  	
   

  
				

 

A-2-5

 

WORLD FINANCIAL NETWORK CREDIT CARD

MASTER NOTE TRUST SERIES 2003-A

 

CLASS B SERIES 2003-A FLOATING RATE ASSET BACKED NOTE

 

Summary of Terms and Conditions

 

This Class B
Note is one of a duly authorized issue of Notes of the Issuer, designated as
World Financial Network Credit Card Master Note Trust, Series 2003-A (the
“Series 2003-A Notes”), issued under a Master Indenture dated as of August 1,
2001 (the “Master Indenture”), between the Issuer and BNY Midwest Trust
Company, as indenture trustee (the “Indenture Trustee”), as supplemented by the
Indenture Supplement dated as of November 7, 2002 (the “Indenture Supplement”)
and the Issuance Supplement dated as of August 14, 2003 (the “Issuance
Supplement”), and representing the right to receive certain payments from the
Issuer.  The term “Indenture,” unless
the context otherwise requires, refers to the Master Indenture as supplemented
by the Indenture Supplement and the Issuance Supplement.  The Notes are subject to all of the terms of
the Indenture.  All terms used in this
Note that are defined in the Indenture shall have the meanings assigned to them
in or pursuant to the Indenture.  In the
event of any conflict or inconsistency between the Indenture and this Note, the
Indenture shall control.

 

The Class A-1
Notes, Class A-2 Notes, the Class C-1 Notes and the Class C-2 Notes also have
been, or will be, issued under the Indenture.

 

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

 

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

 

THIS CLASS B
NOTE DOES NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN, THE ISSUER, WORLD
FINANCIAL NETWORK NATIONAL BANK, WFN CREDIT COMPANY, LLC, OR ANY OF THEIR
AFFILIATES, AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

 

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

 

THIS CLASS B
NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REFERENCE TO ITS CONFLICT OF

 

A-2-6

 

LAW PROVISIONS, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED
IN ACCORDANCE WITH SUCH LAWS.

 

A-2-7

 

ASSIGNMENT

 

Social Security or other
identifying number of assignee
                            .

 

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

 

	
  Dated:

  	
   

  	
   

  	
   

  	
  **

  
	
   

  	
  Signature
  Guaranteed:

  

 

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

 

A-2-8

 

EXHIBIT A-3

 

FORM OF CLASS
C-2 SERIES 2003-A FLOATING RATE ASSET BACKED NOTE

 

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

 

THE HOLDER OF
THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT WILL NOT AT ANY
TIME INSTITUTE AGAINST  WORLD FINANCIAL
NETWORK CREDIT CARD MASTER TRUST, A COMMON LAW TRUST ORGANIZED UNDER THE LAWS
OF NEW YORK (“WFNMT”), THE TRANSFEROR OR THE ISSUER, OR SOLICIT OR JOIN OR
COOPERATE WITH OR ENCOURAGE OR ENCOURAGE ANY INSTITUTION IN INSTITUTING AGAINST
WFNMT, THE TRANSFEROR OR THE ISSUER, ANY BANKRUPTCY, REORGANIZATION,
ARRANGEMENT, INSOLVENCY OR LIQUIDATION PROCEEDINGS, OR OTHER PROCEEDINGS UNDER
ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW IN CONNECTION WITH
ANY OBLIGATION RELATING TO THE NOTES, THE INDENTURE OR ANY OF THE TRANSACTION
DOCUMENTS.

 

THE HOLDER OF
THIS CLASS C-2 NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A
BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE CLASS C-2 NOTES AS INDEBTEDNESS
OF THE ISSUER FOR APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX
LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON, OR MEASURED BY, INCOME.

 

THE HOLDER OF
THIS CLASS C-2 NOTE SHALL BE DEEMED TO REPRESENT AND WARRANT THAT EITHER (I) IT
IS NOT ACQUIRING THE NOTE WITH THE PLAN ASSETS OF AN “EMPLOYEE BENEFIT PLAN” AS
DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
AS AMENDED (“ERISA”), WHICH IS SUBJECT TO TITLE I OF ERISA, A “PLAN” AS DEFINED
IN SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”),
AN ENTITY DEEMED TO HOLD THE PLAN ASSETS OF ANY OF THE FOREGOING BY REASON OF
INVESTMENT BY AN EMPLOYEE BENEFIT PLAN OR PLAN IN SUCH ENTITY, OR A
GOVERNMENTAL PLAN SUBJECT TO APPLICABLE LAW THAT IS SUBSTANTIALLY SIMILAR TO
THE FIDUCIARY RESPONSIBILITY PROVISIONS OF ERISA OR SECTION 4975 OF THE CODE
(EACH SUCH ENTITY A “BENEFIT PLAN”); OR (II) THE ACQUISITION AND HOLDING OF THE
CLASS C-2 NOTE WILL NOT GIVE RISE TO A NON-EXEMPT PROHIBITED TRANSACTION

 

A-3-1

 

UNDER SECTION 406 OF ERISA OR
SECTION 4975 OF THE CODE (OR, IN THE CASE OF A GOVERNMENTAL PLAN, ANY
SUBSTANTIALLY SIMILAR APPLICABLE LAW).

 

A-3-2

 

	
  REGISTERED

  	
  $41,000,000

  
	
  No. R- 1

  	
  CUSIP NO.
                    

  

 

WORLD FINANCIAL NETWORK CREDIT CARD

MASTER NOTE TRUST SERIES 2003-A

 

CLASS C-2 SERIES 2003-A FLOATING RATE ASSET BACKED NOTE

 

World
Financial Network Credit Card Master Note Trust (herein referred to as the
“Issuer” or the “Trust”), a Delaware statutory trust governed by an Amended and
Restated Trust Agreement dated as of August 1, 2001, for value received, hereby
promises to pay to Cede & Co., or registered assigns, subject to the
following provisions, the principal sum of FORTY-ONE MILLION DOLLARS, or
such greater or lesser amount as determined in accordance with the Indenture,
on the March 2012 Distribution Date, except as otherwise provided below or in
the Indenture.  The Issuer will pay
interest on the unpaid principal amount of this Note at the Class C-2 Note
Interest Rate on each Distribution Date until the principal amount of this Note
is paid in full.  Interest on this Note
will accrue for each Distribution Date from and including the most recent
Distribution Date on which interest has been paid to but excluding such
Distribution Date or, for the initial Distribution Date, from and including the
Additional Issuance Date to but excluding such Distribution Date.  Interest will be computed on the basis of a
360-day year and the actual number of days elapsed.  Principal of this Note shall be paid in the manner specified in
the Indenture Supplement referred to on the reverse hereof.

 

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

 

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

 

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

 

THIS CLASS C-2
NOTE IS SUBORDINATED TO THE EXTENT NECESSARY TO FUND PAYMENTS ON THE CLASS A
AND CLASS B NOTES TO THE EXTENT SPECIFIED IN THE INDENTURE SUPPLEMENT.

 

A-3-3

 

IN WITNESS WHEREOF, the Issuer
has caused this Class C-2 Note to be duly executed.

 

	
   

  	
  WORLD
  FINANCIAL NETWORK CREDIT

  CARD MASTER NOTE TRUST, as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Chase
  Manhattan Bank USA, National Association, not in its individual capacity but
  solely as Owner Trustee under the Trust Agreement

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
  Dated:  August
  [       ], 2003

  	
   

  

 

A-3-4

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Class C-2
Notes described in the within-mentioned Indenture.

 

	
   

  	
  BNY MIDWEST
  TRUST COMPANY,

  as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Authorized Signatory

  
	
   

  	
  Dated: 

  	
   

  
				

 

A-3-5

 

WORLD FINANCIAL NETWORK CREDIT CARD

MASTER NOTE TRUST SERIES 2003-A

 

CLASS C-2 SERIES 2003-A FLOATING RATE ASSET BACKED NOTE

 

Summary of Terms and Conditions

 

This Class C-2
Note is one of a duly authorized issue of Notes of the Issuer, designated as
World Financial Network Credit Card Master Note Trust, Series 2003-A (the
“Series 2003-A Notes”), issued under a Master Indenture dated as of August 1,
2001 (the “Master Indenture”), between the Issuer and BNY Midwest Trust
Company, as indenture trustee (the “Indenture Trustee”), as supplemented by the
Indenture Supplement dated as of November 7, 2002 (the “Indenture Supplement”)
and the Issuance Supplement dated as of August 14, 2003 (the “Issuance
Supplement”), and representing the right to receive certain payments from the
Issuer.  The term “Indenture,” unless
the context otherwise requires, refers to the Master Indenture as supplemented
by the Indenture Supplement and the Issuance Supplement.  The Notes are subject to all of the terms of
the Indenture.  All terms used in this
Note that are defined in the Indenture shall have the meanings assigned to them
in or pursuant to the Indenture.  In the
event of any conflict or inconsistency between the Indenture and this Note, the
Indenture shall control.

 

The Class A-1
Notes, the Class A-2 Notes, the Class B Notes and the Class C-1 Notes also have
been, or will be, issued under the Indenture.

 

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

 

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

 

THIS CLASS C-2
NOTE DOES NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN, THE ISSUER, WORLD
FINANCIAL NETWORK NATIONAL BANK, WFN CREDIT COMPANY LLC, OR ANY OF THEIR
AFFILIATES, AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

 

The Issuer, the
Transferor, the Indenture Trustee and any agent of the Issuer, the Transferor
or the Indenture Trustee shall treat the person in whose name this Class C-2
Note is registered as the owner hereof for all purposes, and neither the
Issuer, the Transferor, the Indenture Trustee nor any agent of the Issuer, the
Transferor or the Indenture Trustee shall be affected by notice to the
contrary.

 

THIS CLASS C-2
NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS,
RIGHTS AND REMEDIES OF THE

 

A-3-6

 

PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

A-3-7

 

ASSIGNMENT

 

Social Security or other
identifying number of assignee
                           

 

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

 

	
  Dated: ,

  	
   

  	
   

  	
   

  	
  **

  
	
   

  	
   

  	
   

  	
  Signature
  Guaranteed:

  	
   

  
	
   

  
							

 

 

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

 

A-3-8

 

EXHIBIT B-1

 

Form of Class
A-2 Swap

 

[FILED SEPARATELY AS EXHIBIT 4.4, EXHIBIT 4.7 AND EXHIBIT
4.10

TO THE FORM 8-K FILED AUGUST 28, 2003]

 

B-1-1

 

EXHIBIT B-2

 

Form of Class
B Swap

 

[FILED SEPARATELY AS EXHIBIT 4.5, EXHIBIT 4.8 AND EXHIBIT
4.11

TO THE FORM 8-K FILED AUGUST 28, 2003]

 

B-2-1

 

EXHIBIT B-3

 

Form of Class
C-2 Swap

 

[FILED SEPARATELY AS EXHIBIT 4.6, EXHIBIT 4.9 AND EXHIBIT
4.12

TO THE FORM 8-K FILED AUGUST 28, 2003]

 

B-3-1

 

SCHEDULE 1

 

PERFECTION
REPRESENTATIONS, WARRANTIES

AND COVENANTS

 

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

 

(1)                                  The
Indenture creates a valid and continuing security interest (as defined in the
applicable Uniform Commercial Code) in the Class A-2 Net Swap Receipts, the
Class B Net Swap Receipts and the Class C-2 Net Swap Receipts in favor of the
Indenture Trustee, which security interest is prior to all other Liens, and is
enforceable as such against creditors of and purchasers from Issuer.

 

(2)                                  The
Class A-2 Net Swap Receipts, the Class B Net Swap Receipts and the Class C-2
Net Swap Receipts constitute “general intangibles” within the meaning of the
applicable Uniform Commercial Code.

 

(3)                                  Issuer
owns and has good and marketable title to the Class A-2 Net Swap Receipts, the
Class B Net Swap Receipts and the Class C-2 Net Swap Receipts free and clear of
any Lien, claim or encumbrance of any Person.

 

(4)                                  There
are no consents or approvals required by the terms of the Class A-2 Swap, the
Class B Swap or the Class C-2 Swap, for the pledge of the Class A-2 Net Swap
Receipts, the Class B Net Swap Receipts or Class C-2 Net Swap Receipts,
respectively, to the Indenture Trustee pursuant to the Indenture.

 

(5)                                  Issuer
(or the Administrator on behalf of the Issuer) has caused the filing of all
appropriate financing statements in the proper filing office in the appropriate
jurisdictions under applicable law in order to perfect the security interest
granted to the Indenture Trustee under the Indenture in the Class A-2 Net Swap
Receipts, the Class B Net Swap Receipts and the Class C-2 Net Swap Receipts.

 

(6)                                  Other
than the pledge of the Class A-2 Net Swap Receipts, the Class B Net Swap
Receipts and the Class C-2 Net Swap Receipts to Indenture Trustee pursuant to
the Indenture, Issuer has not pledged, assigned, sold, granted a security
interest in, or otherwise conveyed the Class A-2 Net Swap Receipts, the Class B
Net Swap Receipts or Class C-2 Net Swap Receipts.  Issuer has not authorized the filing of and is not aware of any
financing statements against Issuer that include a description of the Class A-2
Net Swap Receipts, the Class B Net Swap Receipts or Class C-2 Net Swap
Receipts, except for the financing statement filed pursuant to the Indenture.

 

(7)                                  Notwithstanding
any other provision of the Indenture, the representations and warranties set
forth in this Schedule 1 shall be continuing, and remain in full force
and effect, until such time as the Series 2003-A Notes are retired.

 

(a)                                  Indenture
Trustee covenants that it shall not, without satisfying the Rating Agency
Condition, waive a breach of any representation or warranty set forth in this Schedule
1.

 

Sch - 1

 

(b)                                 The
Servicer covenants that in order to evidence the interests of Issuer and
Indenture Trustee under the Indenture, Servicer shall take such action, or
execute and deliver such instruments as may be necessary or advisable
(including, without limitation, such actions as are requested by Indenture
Trustee) to maintain and perfect, as a first priority interest, Indenture
Trustee’s security interest in the Class A-2 Net Swap Receipts, the Class B Net
Swap Receipts or the Class C-2 Net Swap Receipts.

 

Sch - 2EXHIBIT 4.4

 

	
  (Multicurrency—Cross Border)

  	
  CLASS A-2 SWAP

  

 

ISDA®

International Swap Dealers Association, Inc.

 

MASTER AGREEMENT

 

dated as of August 7, 2003

 

	
  JPMorgan Chase Bank

  (“Party
  A”)

  	
  and

  	
  World Financial Network Credit Card
Master Note Trust
(“Party
  B”)

  

 

have entered and/or anticipate
entering into one or more transactions (each a “Transaction”) that are or will
be governed by this Master Agreement, which includes the schedule (the
“Schedule”), and the documents and other confirming evidence (each a “Confirmation”)
exchanged between the parties confirming those Transactions.

 

Accordingly, the parties agree
as follows:—

 

1.                                      Interpretation

 

(a)                                  Definitions. The
terms defined in Section 14 and in the Schedule will have the meanings therein
specified for the purpose of this Master Agreement.

 

(b)                                 Inconsistency. In the
event of any inconsistency between the provisions of the Schedule and the other
provisions of this Master Agreement, the Schedule will prevail.  In the event of any inconsistency between
the provisions of any Confirmation and this Master Agreement (including the
Schedule), such Confirmation will prevail for the purpose of the relevant
Transaction.

 

(c)                                  Single Agreement. All
Transactions are entered into in reliance on the fact that this Master Agreement
and all Confirmations form a single agreement between the parties (collectively
referred to as this “Agreement”), and the parties would not otherwise enter
into any Transactions.

 

2.                                      Obligations

 

(a)                                  General Conditions.

 

(i)                                     Each
party will make each payment or delivery specified in each Confirmation to be
made by it, subject to the other provisions of this Agreement.

 

(ii)                                  Payments
under this Agreement will be made on the due date for value on that date in the
place 

of the account specified in the relevant Confirmation or otherwise pursuant to
this Agreement, in freely transferable funds and in the manner customary for
payments in the required currency. Where settlement is by delivery (that is,
other than by payment), such delivery will be made for receipt on the due date
in the manner customary for the relevant obligation unless otherwise specified
in the relevant Confirmation or elsewhere in this Agreement.

 

(iii)                               Each
obligation of each party under Section 2(a)(i) is subject to (1) the condition
precedent 

that no Event of Default or Potential Event of Default with respect to the
other party has occurred

and is continuing, (2) the condition precedent that no Early Termination Date
in respect of the relevant Transaction has occurred or been effectively
designated and (3) each other applicable condition precedent specified in this
Agreement.

 

Copyright © 1992 by International Swap Dealers Association, Inc.

 

 

(b)                                 Change of Account.  Either party may change its
account for receiving a payment or delivery by giving notice to the other 

party at least five Local
Business Days prior to the scheduled date for the payment or delivery to which
such change applies unless such other party gives timely notice of a reasonable
objection to such change.

 

(c)                                  Netting.  If on any date amounts would otherwise be
payable:-

 

(i)                                     in
the same currency; and

 

(ii)                                  in
respect of the same Transaction,

 

by each party to the other,
then, on such date, each party’s obligation to make payment of any such amount
will be automatically satisfied and discharged and, if the aggregate amount
that would otherwise have been payable by one party exceeds the aggregate
amount that would otherwise have been payable by the other party, replaced by
an obligation upon the party by whom the larger aggregate amount would have
been payable to pay to the other party the excess of the larger aggregate
amount over the smaller aggregate amount.

 

The parties may elect in
respect of two or more Transactions that a net amount will be determined in
respect of all amounts payable on the same date in the same currency in respect
of such Transactions, regardless of whether such amounts are payable in respect
of the same Transaction.  The election
may be made in the Schedule or a Confirmation by specifying that subparagraph
(ii) above will not apply to the Transactions identified as being subject to
the election, together with the starting date (in which case subparagraph (ii)
above will not, or will cease to, apply to such Transactions from such date).  This election may be made separately for
different groups of Transactions and will apply separately to each pairing of
Offices through which the parties make and receive payments or deliveries.

 

(d)                                 Deduction or Withholding for Tax.

 

(i)                                     Gross-Up.  All payments under this Agreement will be
made without any deduction or withholding for or on account of any Tax unless
such deduction or withholding is required by any applicable law, as modified by
the practice of any relevant governmental revenue authority, then in
effect.  If a party is so required to
deduct or withhold, then that party (“X”) will:—

 

(1)                                  promptly
notify the other party (“Y”) of such requirement;

 

(2)                                  pay
to the relevant authorities the full amount required to be deducted or withheld
(including the full amount required to be deducted or withheld from any
additional amount paid by X to Y under this Section 2(d)) promptly upon
the earlier of determining that such deduction or withholding is required or
receiving notice that such amount has been assessed against Y;

 

(3)                                  promptly
forward to Y an official receipt (or a certified copy), or other documentation
reasonably acceptable to Y, evidencing such payment to such authorities; and

 

(4)                                  if
such Tax is an Indemnifiable Tax, pay to Y, in addition to the payment to which
Y is otherwise entitled under this Agreement, such additional amount as is
necessary to ensure that the net amount actually received by Y (free and clear
of Indemnifiable Taxes, whether assessed against X or Y) will equal the full
amount Y would have received had no such deduction or withholding been
required.  However, X will not be
required to pay any additional amount to Y to the extent that it would not be
required to be paid but for:—

 

(A)                              the
failure by Y to comply with or perform any agreement contained in Section
4(a)(i), 4(a)(iii) or 4(d); or

 

(B)                                the
failure of a representation made by Y pursuant to Section 3(f) to be accurate
and true unless such failure would not have occurred but for (I) any action
taken by a taxing authority, or brought in a court of competent jurisdiction,
on or after the date on which a Transaction is entered into (regardless of
whether such action is taken or brought with respect to a party to this
Agreement) or (II) a Change in Tax Law.

 

ISDA ® 1992

 

2

 

(ii)                                  Liability.  If:—

 

(1)                                  X
is required by any applicable law, as modified by the practice of any relevant
governmental revenue authority, to make any deduction or withholding in respect
of which X would not be required to pay an additional amount to Y under Section
2(d)(i)(4);

 

(2)                                  X
does not so deduct or withhold; and

 

(3)                                  a
liability resulting from such Tax is assessed directly against X,

 

then, except
to the extent Y has satisfied or then satisfies the liability resulting from
such Tax, Y will promptly pay to X the amount of such liability (including any
related liability for interest, but including any related liability for
penalties only if Y has failed to comply with or perform any agreement
contained in Section 4(a)(i), 4(a)(iii) or 4(d)).

 

(e)                                  Default Interest; Other Amounts.  Prior to the occurrence or effective
designation of an Early Termination Date in respect of the relevant
Transaction, a party that defaults in the performance of any payment obligation
will, to the extent permitted by law and subject to Section 6(c), be required
to pay interest (before as well as after judgment) on the overdue amount to the
other party on demand in the same currency as such overdue amount, for the
period from (and including) the original due date for payment to (but
excluding) the date of actual payment, at the Default Rate.  Such interest will be calculated on the
basis of daily compounding and the actual number of days elapsed.  If, prior to the occurrence or effective
designation of an Early Termination Date in respect of the relevant
Transaction, a party defaults in the performance of any obligation required to
be settled by delivery, it will compensate the other party on demand if and to
the extent provided for in the relevant Confirmation or elsewhere in this
Agreement.

 

3.                                      Representations

 

Each party represents to the
other party (which representations will be deemed to be repeated by each party
on each date on which a Transaction is entered into and, in the case of the
representations in Section 3(f), at all times until the termination of this
Agreement) that:—

 

(a)                                  Basic Representations.

 

(i)                                     Status.  It is duly organised and validly existing
under the laws of the jurisdiction of its organisation or incorporation and, if
relevant under such laws, in good standing;

 

(ii)                                  Powers.  It has the power to execute this Agreement
and any other documentation relating to this Agreement to which it is a party,
to deliver this Agreement and any other documentation relating to this
Agreement that it is required by this Agreement to deliver and to perform its
obligations under this Agreement and any obligations it has under any Credit
Support Document to which it is a party and has taken all necessary action to
authorise such execution, delivery and performance;

 

(iii)                               No Violation or Conflict.  Such execution, delivery and performance do
not violate or conflict with any law applicable to it, any provision of its
constitutional documents, any order or judgment of any court or other agency of
government applicable to it or any of its assets or any contractual restriction
binding on or affecting it or any of its assets;

 

(iv)                              Consents.  All governmental and other consents that are
required to have been obtained by it with respect to this Agreement or any
Credit Support Document to which it is a party have been obtained and are in
full force and effect and all conditions of any such consents have been
complied with; and

 

(v)                                 Obligations Binding.  Its obligations under this Agreement and any
Credit Support Document to which it is a party constitute its legal, valid and
binding obligations, enforceable in accordance with their respective terms
(subject to applicable bankruptcy, reorganisation, insolvency, moratorium or
similar laws affecting creditors’ rights generally and subject, as to
enforceability, to equitable principles of general application (regardless of
whether enforcement is sought in a proceeding in equity or at law)).

 

3

 

(b)                                 Absence of Certain Events.  No Event of Default or Potential Event of
Default or, to its knowledge, Termination Event with respect to it has occurred
and is continuing and no such event or circumstance would occur as a result of
its entering into or performing its obligations under this Agreement or any
Credit Support Document to which it is a party.

 

(c)                                  Absence of Litigation.  There is not pending or, to its knowledge,
threatened against it or any of its Affiliates any action, suit or proceeding
at law or in equity or before any court, tribunal, governmental body, agency or
official or any arbitrator that is likely to affect the legality, validity or
enforceability against it of this Agreement or any Credit Support Document to
which it is a party or its ability to perform its obligations under this
Agreement or such Credit Support Document.

 

(d)                                 Accuracy of Specified Information.  All applicable information that is furnished
in writing by or on behalf of it to the other party and is identified for the
purpose of this Section 3(d) in the Schedule is, as of the date of the
information, true, accurate and complete in every material respect.

 

(e)                                  Payer Tax Representation.  Each representation specified in the
Schedule as being made by it for the purpose of this Section 3(e) is accurate
and true.

 

(f)                                    Payee Tax Representations.  Each representation specified in the
Schedule as being made by it for the purpose of this Section 3(f) is accurate
and true.

 

4.                                      Agreements

 

Each party agrees with the
other that, so long as either party has or may have any obligation under this
Agreement or under any Credit Support Document to which it is a party:—

 

(a)                                  Furnish Specified Information.  It will deliver to the other party or, in
certain cases under subparagraph (iii) below, to such government or taxing
authority as the other party reasonably directs:

 

(i)                                     any
forms, documents or certificates relating to taxation specified in the Schedule
or any Confirmation;

 

(ii)                                  any
other documents specified in the Schedule or any Confirmation; and

 

(iii)                               upon
reasonable demand by such other party, any form or document that may be
required or reasonably requested in writing in order to allow such other party
or its Credit Support Provider to make a payment under this Agreement or any
applicable Credit Support Document without any deduction or withholding for or
on account of any Tax or with such deduction or withholding at a reduced rate
(so long as the completion, execution or submission of such form or document
would not materially prejudice the legal or commercial position of the party in
receipt of such demand), with any such form or document to be accurate and
completed in a manner reasonably satisfactory to such other party and to be
executed and to be delivered with any reasonably required certification,

 

in each case by the date
specified in the Schedule or such Confirmation or, if none is specified, as
soon as reasonably practicable.

 

(b)                                 Maintain Authorisations.  It will use all reasonable efforts to
maintain in full force and effect all consents of any governmental or other
authority that are required to be obtained by it with respect to this Agreement
or any Credit Support Document to which it is a party and will use all
reasonable efforts to obtain any that may become necessary in the future.

 

(c)                                  Comply with Laws.  It will comply in all material respects with
all applicable laws and orders to which it may be subject if failure so to
comply would materially impair its ability to perform its obligations under
this Agreement or any Credit Support Document to which it is a party.

 

(d)                                 Tax Agreement.  It will give notice of any failure of a
representation made by it under Section 3(f) to be accurate and true promptly
upon learning of such failure.

 

(e)                                  Payment of Stamp Tax.  Subject to Section 11, it will pay any Stamp
Tax levied or imposed upon it or in respect of its execution or performance of
this Agreement by a jurisdiction in which it is incorporated, organised,
managed and controlled, or considered to have its seat, or in which a branch or
office through

 

4

 

which it is acting for the
purpose of this Agreement is located (“Stamp Tax Jurisdiction”) and will
indemnify the other party against any Stamp Tax levied or imposed upon the other
party or in respect of the other party’s execution or performance of this
Agreement by any such Stamp Tax Jurisdiction which is not also a Stamp Tax
Jurisdiction with respect to the other party.

 

5.                                      Events
of Default and Termination Events

 

(a)                                  Events of Default.  The occurrence at any time with respect to a
party or, if applicable, any Credit Support Provider of such party or any
Specified Entity of such party of any of the following events constitutes an
event of default (an “Event of Default”) with respect to such party:—

 

(i)                                     Failure to Pay or Deliver.  Failure by the party to make, when due, any
payment under this Agreement or delivery under Section 2(a)(i) or 2(e) required
to be made by it if such failure is not remedied on or before the third Local Business
Day after notice of such failure is given to the party;

 

(ii)                                  Breach of Agreement.  Failure by the party to comply with or
perform any agreement or obligation (other than an obligation to make any
payment under this Agreement or delivery under Section 2(a)(i) or 2(e) or to
give notice of a Termination Event or any agreement or obligation under Section
4(a)(i), 4(a)(iii) or 4(d)) to be complied with or performed by the party in
accordance with this Agreement if such failure is not remedied on or before the
thirtieth day after notice of such failure is given to the party;

 

(iii)                               Credit Support Default.

 

(1)                                  Failure
by the party or any Credit Support Provider of such party to comply with or
perform any agreement or obligation to be complied with or performed by it in
accordance with any Credit Support Document if such failure is continuing after
any applicable grace period has elapsed;

 

(2)                                  the
expiration or termination of such Credit Support Document or the failing or
ceasing of such Credit Support Document to be in full force and effect for the
purpose of this Agreement (in either case other than in accordance with its
terms) prior to the satisfaction of all obligations of such party under each
Transaction to which such Credit Support Document relates without the written
consent of the other party; or

 

(3)                                  the
party or such Credit Support Provider disaffirms, disclaims, repudiates or
rejects, in whole or in part, or challenges the validity of, such Credit
Support Document;

 

(iv)                              Misrepresentation.  A representation (other than a
representation under Section 3(e) or (f)) made or repeated or deemed to have
been made or repeated by the party or any Credit Support Provider of such party
in this Agreement or any Credit Support Document proves to have been incorrect
or misleading in any material respect when made or repeated or deemed to have
been made or repeated;

 

(v)                                 Default under Specified Transaction.  The party, any Credit Support Provider of
such party or any applicable Specified Entity of such party (1) defaults under
a Specified Transaction and, after giving effect to any applicable notice
requirement or grace period, there occurs a liquidation of, an acceleration of
obligations under, or an early termination of, that Specified Transaction, (2)
defaults, after giving effect to any applicable notice requirement or grace
period, in making any payment or delivery due on the last payment, delivery or
exchange date of, or any payment on early termination of, a Specified
Transaction (or such default continues for at least three Local Business Days
if there is no applicable notice requirement or grace period) or (3)
disaffirms, disclaims, repudiates or rejects, in whole or in part, a Specified
Transaction (or such action is taken by any person or entity appointed or
empowered to operate it or act on its behalf);

 

(vi)                              Cross Default.  If “Cross Default” is specified in the
Schedule as applying to the party, the occurrence or existence of (1) a
default, event of default or other similar condition or event (however

 

5

 

described) in
respect of such party, any Credit Support Provider of such party or any
applicable Specified Entity of such party under one or more agreements or
instruments relating to Specified Indebtedness of any of them (individually or
collectively) in an aggregate amount of not less than the applicable Threshold
Amount (as specified in the Schedule) which has resulted in such Specified
Indebtedness becoming, or becoming capable at such time of being declared, due
and payable under such agreements or instruments, before it would otherwise
have been due and payable or (2) a default by such party, such Credit Support
Provider or such Specified Entity (individually or collectively) in making one
or more payments on the due date thereof in an aggregate amount of not less
than the applicable Threshold Amount under such agreements or instruments
(after giving effect to any applicable notice requirement or grace period);

 

(vii)                           Bankruptcy.  The party, any Credit Support Provider of
such party or any applicable Specified Entity of such party:—

 

(1) is
dissolved (other than pursuant to a consolidation, amalgamation or merger); (2)
becomes insolvent or is unable to pay its debts or fails or admits in writing
its inability generally to pay its debts as they become due; (3) makes a
general assignment, arrangement or composition with or for the benefit of its
creditors; (4) institutes or has instituted against it a proceeding seeking a
judgment of insolvency or bankruptcy or any other relief under any bankruptcy
or insolvency law or other similar law affecting creditors’ rights, or a
petition is presented for its winding-up or liquidation, and, in the case of
any such proceeding or petition instituted or presented against it, such
proceeding or petition (A) results in a judgment of insolvency or bankruptcy or
the entry of an order for relief or the making of an order for its winding-up
or liquidation or (B) is not dismissed, discharged, stayed or restrained in
each case within 30 days of the institution or presentation thereof; (5) has a
resolution passed for its winding-up, official management or liquidation (other
than pursuant to a consolidation, amalgamation or merger); (6) seeks or becomes
subject to the appointment of an administrator, provisional liquidator,
conservator, receiver, trustee, custodian or other similar official for it or
for all or substantially all its assets; (7) has a secured party take
possession of all or substantially all its assets or has a distress, execution,
attachment, sequestration or other legal process levied, enforced or sued on or
against all or substantially all its assets and such secured party maintains
possession, or any such process is not dismissed, discharged, stayed or
restrained, in each case within 30 days thereafter; (8) causes or is subject to
any event with respect to it which, under the applicable laws of any
jurisdiction, has an analogous effect to any of the events specified in clauses
(1) to (7) (inclusive); or (9) takes any action in furtherance of, or
indicating its consent to, approval of, or acquiescence in, any of the
foregoing acts; or

 

(viii)                        Merger Without Assumption.  The party or any Credit Support Provider of
such party consolidates or amalgamates with, or merges with or into, or
transfers all or substantially all its assets to, another entity and, at the
time of such consolidation, amalgamation, merger or transfer:—

 

(1)                                  the
resulting, surviving or transferee entity fails to assume all the obligations
of such party or such Credit Support Provider under this Agreement or any
Credit Support Document to which it or its predecessor was a party by operation
of law or pursuant to an agreement reasonably satisfactory to the other party
to this Agreement; or

 

(2)                                  the
benefits of any Credit Support Document fail to extend (without the consent of
the other party) to the performance by such resulting, surviving or transferee
entity of its obligations under this Agreement.

 

(b)                                 Termination Events.  The occurrence at any time with respect to a
party or, if applicable, any Credit Support Provider of such party or any
Specified Entity of such party of any event specified below constitutes an
Illegality if the event is specified in (i) below, a Tax Event if the event is
specified in (ii) below or a Tax Event Upon Merger if the event is specified in
(iii) below, and, if specified to be applicable, a Credit Event

 

6

 

Upon Merger if the event is
specified pursuant to (iv) below or an Additional Termination Event if the
event is specified pursuant to 

(v) below:—

 

(i)                                     Illegality.  Due to the adoption of, or any change in,
any applicable law after the date on which a Transaction is entered into, or
due to the promulgation of, or any change in, the interpretation by any court,
tribunal or regulatory authority with competent jurisdiction of any applicable
law after such date, it becomes unlawful (other than as a result of a breach by
the party of Section 4(b)) for such party (which will be the Affected Party):—

 

(1)                                  to
perform any absolute or contingent obligation to make a payment or delivery or
to receive a payment or delivery in respect of such Transaction or to comply
with any other material provision of this Agreement relating to such Transaction;
or

 

(2)                                  to
perform, or for any Credit Support Provider of such party to perform, any
contingent or other obligation which the party (or such Credit Support
Provider) has under any Credit Support Document relating to such Transaction;

 

(ii)                                  Tax Event.  Due to (x) any action taken by a taxing
authority, or brought in a court of competent jurisdiction, on or after the
date on which a Transaction is entered into (regardless of whether such action
is taken or brought with respect to a party to this Agreement) or (y) a Change
in Tax Law, the party (which will be the Affected Party) will, or there is a
substantial likelihood that it will, on the next succeeding Scheduled Payment
Date (1) be required to pay to the other party an additional amount in respect
of an Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest
under Section 2(e), 6(d)(ii) or 6(e)) or (2) receive a payment from which an
amount is required to be deducted or withheld for or on account of a Tax
(except in respect of interest under Section 2(e), 6(d)(ii) or 6(e)) and no
additional amount is required to be paid in respect of such Tax under Section
2(d)(i)(4) (other than by reason of Section 2(d)(i)(4)(A) or (B));

 

(iii)                               Tax Event Upon Merger.  The party (the “Burdened Party”) on the next
succeeding Scheduled Payment Date will either (1) be required to pay an
additional amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4)
(except in respect of interest under Section 2(e), 6(d)(ii) or 6(e)) or (2)
receive a payment from which an amount has been deducted or withheld for or on
account of any Indemnifiable Tax in respect of which the other party is not
required to pay an additional amount (other than by reason of Section
2(d)(i)(4)(A) or (B)), in either case as a result of a party consolidating or
amalgamating with, or merging with or into, or transferring all or
substantially all its assets to, another entity (which will be the Affected
Party) where such action does not constitute an event described in Section 5(a)(viii);

 

(iv)                              Credit Event Upon Merger.  If “Credit Event Upon Merger” is specified
in the Schedule as applying to the party, such party (“X”), any Credit Support
Provider of X or any applicable Specified Entity of X consolidates or
amalgamates with, or merges with or into, or transfers all or substantially all
its assets to, another entity and such action does not constitute an event
described in Section 5(a)(viii) but the creditworthiness of the resulting,
surviving or transferee entity is materially weaker than that of X, such Credit
Support Provider or such Specified Entity, as the case may be, immediately
prior to such action (and, in such event, X or its successor or transferee, as
appropriate, will be the Affected Party); or

 

(v)                                 Additional Termination Event.  If any “Additional Termination Event” is
specified in the Schedule or any Confirmation as applying, the occurrence of
such event (and, in such event, the Affected Party or Affected Parties shall be
as specified for such Additional Termination Event in the Schedule or such
Confirmation).

 

(c)                                  Event of Default and Illegality.  If an event or circumstance which would
otherwise constitute or give rise to an Event of Default also constitutes an
Illegality, it will be treated as an Illegality and will not constitute an
Event of Default.

 

7

 

6.                                      Early
Termination

 

(a)                                  Right to Terminate Following Event
of Default.  If at any
time an Event of Default with respect to a party (the “Defaulting Party”) has
occurred and is then continuing, the other party (the “Non-defaulting Party”)
may, by not more than 20 days notice to the Defaulting Party specifying the
relevant Event of Default, designate a day not earlier than the day such notice
is effective as an Early Termination Date in respect of all outstanding
Transactions.  If, however, “Automatic
Early Termination” is specified in the Schedule as applying to a party, then an
Early Termination Date in respect of all outstanding Transactions will occur
immediately upon the occurrence with respect to such party of an Event of
Default specified in Section 5(a)(vii)(1), (3), (5), (6) or, to the extent
analogous thereto, (8), and as of the time immediately preceding the
institution of the relevant proceeding or the presentation of the relevant
petition upon the occurrence with respect to such party of an Event of Default
specified in Section 5(a)(vii)(4) or, to the extent analogous thereto, (8).

 

(b)                                 Right to Terminate Following
Termination Event.

 

(i)                                     Notice.  If a Termination Event occurs, an Affected
Party will, promptly upon becoming aware of it, notify the other party,
specifying the nature of that Termination Event and each Affected Transaction
and will also give such other information about that Termination Event as the
other party may reasonably require.

 

(ii)                                  Transfer to Avoid Termination Event.  If either an Illegality under Section
5(b)(i)(1) or a Tax Event occurs and there is only one Affected Party, or if a
Tax Event Upon Merger occurs and the Burdened Party is the Affected Party, the
Affected Party will, as a condition to its right to designate an Early
Termination Date under Section 6(b)(iv), use all reasonable efforts (which will
not require such party to incur a loss, excluding immaterial, incidental
expenses) to transfer within 20 days after it gives notice under Section
6(b)(i) all its rights and obligations under this Agreement in respect of the
Affected Transactions to another of its Offices or Affiliates so that such
Termination Event ceases to exist.

 

If the
Affected Party is not able to make such a transfer it will give notice to the
other party to that effect within such 20 day period, whereupon the other party
may effect such a transfer within 30 days after the notice is given under
Section 6(b)(i).

 

Any such
transfer by a party under this Section 6(b)(ii) will be subject to and
conditional upon the prior written consent of the other party, which consent
will not be withheld if such other party’s policies in effect at such time
would permit it to enter into transactions with the transferee on the terms
proposed.

 

(iii)                               Two Affected Parties.  If an Illegality under Section 5(b)(i)(1) or
a Tax Event occurs and there are two Affected Parties, each party will use all
reasonable efforts to reach agreement within 30 days after notice thereof is
given under Section 6(b)(i) on action to avoid that Termination Event.

 

(iv)                              Right to Terminate.  If:—

 

(1)                                  a
transfer under Section 6(b)(ii) or an agreement under Section 6(b)(iii),
as the case may be, has not been effected with respect to all Affected
Transactions within 30 days after an Affected Party gives notice under Section
6(b)(i); or

 

(2)                                  an
Illegality under Section 5(b)(i)(2), a Credit Event Upon Merger or an
Additional Termination Event occurs, or a Tax Event Upon Merger occurs and the
Burdened Party is not the Affected Party,

 

either party
in the case of an Illegality, the Burdened Party in the case of a Tax Event
Upon Merger, any Affected Party in the case of a Tax Event or an Additional
Termination Event if there is more than one Affected Party, or the party which
is not the Affected Party in the case of a Credit Event Upon Merger or an
Additional Termination Event if there is only one Affected Party may, by not
more than 20 days notice to the other party and provided that the relevant
Termination Event is then

 

8

 

continuing,
designate a day not earlier than the day such notice is effective as an Early
Termination Date in respect of all Affected Transactions.

 

(c)                                  Effect of Designation.

 

(i)                                     If
notice designating an Early Termination Date is given under Section 6(a)
or (b), the Early Termination Date will occur on the date so designated,
whether or not the relevant Event of Default or Termination Event is then continuing.

 

(ii)                                  Upon
the occurrence or effective designation of an Early Termination Date, no
further payments or deliveries under Section 2(a)(i) or 2(e) in respect of the
Terminated Transactions will be required to be made, but without prejudice to
the other provisions of this Agreement. 
The amount, if any, payable in respect of an Early Termination Date
shall be determined pursuant to Section 6(e).

 

(d)                                 Calculations.

 

(i)                                     Statement.  On or as soon as reasonably practicable
following the occurrence of an Early Termination Date, each party will make the
calculations on its part, if any, contemplated by Section 6(e) and will provide
to the other party a statement (1) showing, in reasonable detail, such
calculations (including all relevant quotations and specifying any amount
payable under Section 6(e)) and (2) giving details of the relevant account to
which any amount payable to it is to be paid. 
In the absence of written confirmation from the source of a quotation
obtained in determining a Market Quotation, the records of the party obtaining
such quotation will be conclusive evidence of the existence and accuracy of
such quotation.

 

(ii)                                  Payment Date.  An amount calculated as being due in respect
of any Early Termination Date under Section 6(e) will be payable on the day
that notice of the amount payable is effective (in the case of an Early
Termination Date which is designated or occurs as a result of an Event of
Default) and on the day which is two Local Business Days after the day on which
notice of the amount payable is effective (in the case of an Early Termination
Date which is designated as a result of a Termination Event).  Such amount will be paid together with (to
the extent permitted under applicable law) interest thereon (before as well as
after judgment) in the Termination Currency, from (and including) the relevant
Early Termination Date to (but excluding) the date such amount is paid, at the
Applicable Rate.  Such interest will be
calculated on the basis of daily compounding and the actual number of days
elapsed.

 

(e)                                  Payments on Early Termination.  If an Early Termination Date occurs, the
following provisions shall apply based on the parties’ election in the Schedule
of a payment measure, either “Market Quotation” or “Loss”, and a payment
method, either the “First Method” or the “Second Method”.  If the parties fail to designate a payment
measure or payment method in the Schedule, it will be deemed that “Market
Quotation” or the “Second Method”, as the case may be, shall apply.  The amount, if any, payable in respect of an
Early Termination Date and determined pursuant to this Section will be subject
to any Set-off.

 

(i)                                     Events of Default.  If the Early Termination Date results from
an Event of Default:—

 

(1)                                  First Method
and Market Quotation.  If the
First Method and Market Quotation apply, the Defaulting Party will pay to the
Non-defaulting Party the excess, if a positive number, of (A) the sum of the
Settlement Amount (determined by the Non-defaulting Party) in respect of the
Terminated Transactions and the Termination Currency Equivalent of the Unpaid
Amounts owing to the Non-defaulting Party over (B) the Termination Currency
Equivalent of the Unpaid Amounts owing to the Defaulting Party.

 

(2)                                  First Method
and Loss.  If the First
Method and Loss apply, the Defaulting Party will pay to the Non-defaulting
Party, if a positive number, the Non-defaulting Party’s Loss in respect of this
Agreement.

 

(3)                                  Second
Method and Market Quotation. 
If the Second Method and Market Quotation apply, an amount will be
payable equal to (A) the sum of the Settlement Amount (determined by the

 

9

 

Non-defaulting
Party) in respect of the Terminated Transactions and the Termination Currency
Equivalent of the Unpaid Amounts owing to the Non-defaulting Party less (B) the
Termination Currency Equivalent of the Unpaid Amounts owing to the Defaulting
Party.  If that amount is a positive
number, the Defaulting Party will pay it to the Non-defaulting Party; if it is
a negative number, the Non-defaulting Party will pay the absolute value of that
amount to the Defaulting Party.

 

(4)                                  Second
Method and Loss.  If the
Second Method and Loss apply, an amount will be payable equal to the
Non-defaulting Party’s Loss in respect of this Agreement.  If that amount is a positive number, the
Defaulting Party will pay it to the Non-defaulting Party; if it is a negative
number, the Non-defaulting Party will pay the absolute value of that amount to
the Defaulting Party.

 

(ii)                                  Termination Events.  If the Early Termination Date results from a
Termination Event:—

 

(1)                                  One Affected
Party.  If there is one
Affected Party, the amount payable will be determined in accordance with
Section 6(e)(i)(3), if Market Quotation applies, or Section 6(e)(i)(4), if Loss
applies, except that, in either case, references to the Defaulting Party and to
the Non-defaulting Party will be deemed to be references to the Affected Party
and the party which is not the Affected Party, respectively, and, if Loss
applies and fewer than all the Transactions are being terminated, Loss shall be
calculated in respect of all Terminated Transactions.

 

(2)                                  Two Affected
Parties.  If there are two
Affected Parties:—

 

(A)                              if
Market Quotation applies, each party will determine a Settlement Amount in
respect of the Terminated Transactions, and an amount will be payable equal to
(I) the sum of (a) one-half of the difference between the Settlement Amount of
the party with the higher Settlement Amount (“X”) and the Settlement Amount of
the party with the lower Settlement Amount (“Y”) and (b) the Termination
Currency Equivalent of the Unpaid Amounts owing to X less (II) the Termination
Currency Equivalent of the Unpaid Amounts owing to Y; and

 

(B)                                if
Loss applies, each party will determine its Loss in respect of this Agreement
(or, if fewer than all the Transactions are being terminated, in respect of all
Terminated Transactions) and an amount will be payable equal to one-half of the
difference between the Loss of the party with the higher Loss (“X”) and the
Loss of the party with the lower Loss (“Y”).

 

If the amount
payable is a positive number, Y will pay it to X; if it is a negative number, X
will pay the absolute value of that amount to Y.

 

(iii)                               Adjustment for Bankruptcy.  In circumstances where an Early Termination
Date occurs because “Automatic Early Termination” applies in respect of a
party, the amount determined under this Section 6(e) will be subject to such
adjustments as are appropriate and permitted by law to reflect any payments or
deliveries made by one party to the other under this Agreement (and retained by
such other party) during the period from the relevant Early Termination Date to
the date for payment determined under Section 6(d)(ii).

 

(iv)                              Pre-Estimate.  The parties agree that if Market Quotation
applies an amount recoverable under this Section 6(e) is a reasonable
pre-estimate of loss and not a penalty. 
Such amount is payable for the loss of bargain and the loss of
protection against future risks and except as otherwise provided in this
Agreement neither party will be entitled to recover any additional damages as a
consequence of such losses.

 

10

 

7.                                      Transfer

 

Subject to Section 6(b)(ii),
neither this Agreement nor any interest or obligation in or under this
Agreement may be transferred (whether by way of security or otherwise) by
either party without the prior written consent of the other party, except
that:—

 

(a)                                  a
party may make such a transfer of this Agreement pursuant to a consolidation or
amalgamation with, or merger with or into, or transfer of all or substantially
all its assets to, another entity (but without prejudice to any other right or
remedy under this Agreement); and

 

(b)                                 a
party may make such a transfer of all or any part of its interest in any amount
payable to it from a Defaulting Party under Section 6(e).

 

Any purported transfer that is
not in compliance with this Section will be void.

 

8.                                      Contractual
Currency

 

(a)                                  Payment in the Contractual Currency.  Each payment under this Agreement will be
made in the relevant currency specified in this Agreement for that payment (the
“Contractual Currency”).  To the extent
permitted by applicable law, any obligation to make payments under this
Agreement in the Contractual Currency will not be discharged or satisfied by
any tender in any currency other than the Contractual Currency, except to the
extent such tender results in the actual receipt by the party to which payment
is owed, acting in a reasonable manner and in good faith in converting the
currency so tendered into the Contractual Currency, of the full amount in the
Contractual Currency of all amounts payable in respect of this Agreement.  If for any reason the amount in the
Contractual Currency so received falls short of the amount in the Contractual
Currency payable in respect of this Agreement, the party required to make the
payment will, to the extent permitted by applicable law, immediately pay such
additional amount in the Contractual Currency as may be necessary to compensate
for the shortfall.  If for any reason
the amount in the Contractual Currency so received exceeds the amount in the
Contractual Currency payable in respect of this Agreement, the party receiving
the payment will refund promptly the amount of such excess.

 

(b)                                 Judgments.  To the extent permitted by applicable law,
if any judgment or order expressed in a currency other than the Contractual
Currency is rendered (i) for the payment of any amount owing in respect of this
Agreement, (ii) for the payment of any amount relating to any early termination
in respect of this Agreement or (iii) in respect of a judgment or order of
another court for the payment of any amount described in (i) or (ii) above, the
party seeking recovery, after recovery in full of the aggregate amount to which
such party is entitled pursuant to the judgment or order, will be entitled to
receive immediately from the other party the amount of any shortfall of the
Contractual Currency received by such party as a consequence of sums paid in such
other currency and will refund promptly to the other party any excess of the
Contractual Currency received by such party as a consequence of sums paid in
such other currency if such shortfall or such excess arises or results from any
variation between the rate of exchange at which the Contractual Currency is
converted into the currency of the judgment or order for the purposes of such
judgment or order and the rate of exchange at which such party is able, acting
in a reasonable manner and in good faith in converting the currency received
into the Contractual Currency, to purchase the Contractual Currency with the
amount of the currency of the judgment or order actually received by such
party.  The term “rate of exchange”
includes, without limitation, any premiums and costs of exchange payable in
connection with the purchase of or conversion into the Contractual Currency.

 

(c)                                  Separate Indemnities.  To the extent permitted by applicable law,
these indemnities constitute separate and independent obligations from the
other obligations in this Agreement, will be enforceable as separate and
independent causes of action, will apply notwithstanding any indulgence granted
by the party to which any payment is owed and will not be affected by judgment
being obtained or claim or proof being made for any other sums payable in
respect of this Agreement.

 

(d)                                 Evidence of Loss.  For the purpose of this Section 8, it will
be sufficient for a party to demonstrate that it would have suffered a loss had
an actual exchange or purchase been made.

 

11

 

9.                                      Miscellaneous

 

(a)                                  Entire Agreement.  This Agreement constitutes the entire
agreement and understanding of the parties with respect to its subject matter
and supersedes all oral communication and prior writings with respect thereto.

 

(b)                                 Amendments.  No amendment, modification or waiver in
respect of this Agreement will be effective unless in writing (including a
writing evidenced by a facsimile transmission) and executed by each of the
parties or confirmed by an exchange of telexes or electronic messages on an
electronic messaging system.

 

(c)                                  Survival of Obligations.  Without prejudice to Sections 2(a)(iii) and
6(c)(ii), the obligations of the parties under this Agreement will survive the
termination of any Transaction.

 

(d)                                 Remedies Cumulative.  Except as provided in this Agreement, the
rights, powers, remedies and privileges provided in this Agreement are
cumulative and not exclusive of any rights, powers, remedies and privileges provided
by law.

 

(e)                                  Counterparts and Confirmations.

 

(i)                                     This
Agreement (and each amendment, modification and waiver in respect of it) may be
executed and delivered in counterparts (including by facsimile transmission),
each of which will be deemed an original.

 

(ii)                                  The
parties intend that they are legally bound by the terms of each Transaction
from the moment they agree to those terms (whether orally or otherwise).  A Confirmation shall he entered into as soon
as practicable and may he executed and delivered in counterparts (including by
facsimile transmission) or be created by an exchange of telexes or by an
exchange of electronic messages on an electronic messaging system, which in
each case will be sufficient for all purposes to evidence a binding supplement
to this Agreement.  The parties will
specify therein or through another effective means that any such counterpart,
telex or electronic message constitutes a Confirmation.

 

(f)                                    No Waiver of Rights.  A failure or delay in exercising any right,
power or privilege in respect of this Agreement will not be presumed to operate
as a waiver, and a single or partial exercise of any right, power or privilege
will not be presumed to preclude any subsequent or further exercise, of that
right, power or privilege or the exercise of any other right, power or
privilege.

 

(g)                                 Headings.  The headings used in this Agreement are for
convenience of reference only and are not to affect the construction of or to
be taken into consideration in interpreting this Agreement.

 

10.                               Offices;
Multibranch Parties

 

(a)                                  If
Section 10(a) is specified in the Schedule as applying, each party that enters
into a Transaction through an Office other than its head or home office
represents to the other party that, notwithstanding the place of booking office
or jurisdiction of incorporation or organisation of such party, the obligations
of such party are the same as if it had entered into the Transaction through
its head or home office. This representation will be deemed to be repeated by
such party on each date on which a Transaction is entered into.

 

(b)                                 Neither
party may change the Office through which it makes and receives payments or
deliveries for the purpose of a Transaction without the prior written consent
of the other party.

 

(c)                                  If
a party is specified as a Multibranch Party in the Schedule, such Multibranch
Party may make and receive payments or deliveries under any Transaction through
any Office listed in the Schedule, and the Office through which it makes and
receives payments or deliveries with respect to a Transaction will be specified
in the relevant Confirmation.

 

11.                               Expenses

 

A Defaulting Party will, on
demand, indemnify and hold harmless the other party for and against all
reasonable out-of-pocket expenses, including legal fees and Stamp Tax, incurred
by such other party by reason of the enforcement and protection of its rights
under this Agreement or any Credit Support Document

 

12

 

to which the Defaulting Party
is a party or by reason of the early termination of any Transaction, including,
but not limited to, costs of collection.

 

12.                               Notices

 

(a)                                  Effectiveness.  Any notice or other communication in respect
of this Agreement may be given in any manner set forth below (except that a
notice or other communication under Section 5 or 6 may not be given by
facsimile transmission or electronic messaging system) to the address or number
or in accordance with the electronic messaging system details provided (see the
Schedule) and will be deemed effective as indicated:—

 

(i)                                     if
in writing and delivered in person or by courier, on the date it is delivered;

 

(ii)                                  if
sent by telex, on the date the recipient’s answerback is received;

 

(iii)                               if
sent by facsimile transmission, on the date that transmission is received by a
responsible employee of the recipient in legible form (it being agreed that the
burden of proving receipt will be on the sender and will not be met by a
transmission report generated by the sender’s facsimile machine);

 

(iv)                              if sent
by certified or registered mail (airmail, if overseas) or the equivalent
(return receipt requested), on the date that mail is delivered or its delivery
is attempted; or

 

(v)                                 if
sent by electronic messaging system, on the date that electronic message is
received,

 

unless the date of that
delivery (or attempted delivery) or that receipt, as applicable, is not a Local
Business Day or that communication is delivered (or attempted) or received, as
applicable, after the close of business on a Local Business Day, in which case
that communication shall be deemed given and effective on the first following
day that is a Local Business Day.

 

(b)                                 Change of Addresses.  Either party may by notice to the other
change the address, telex or facsimile number or electronic messaging system
details at which notices or other communications are to be given to it.

 

13.                               Governing
Law and Jurisdiction

 

(a)                                  Governing Law.  This Agreement will be governed by and
construed in accordance with the law specified in the Schedule.

 

(b)                                 Jurisdiction.  With respect to any suit, action or
proceedings relating to this Agreement (“Proceedings”), each party
irrevocably:—

 

(i)                                     submits
to the jurisdiction of the English courts, if this Agreement is expressed to be
governed by English law, or to the non-exclusive jurisdiction of the courts of
the State of New York and the United States District Court located in the
Borough of Manhattan in New York City, if this Agreement is expressed to be
governed by the laws of the State of New York; and

 

(ii)                                  waives
any objection which it may have at any time to the laying of venue of any
Proceedings brought in any such court, waives any claim that such Proceedings
have been brought in an inconvenient forum and further waives the right to
object, with respect to such Proceedings, that such court does not have any
jurisdiction over such party.

 

Nothing in this Agreement
precludes either party from bringing Proceedings in any other jurisdiction
(outside, if this Agreement is expressed to be governed by English law, the
Contracting States, as defined in Section 1(3) of the Civil Jurisdiction and
Judgments Act 1982 or any modification, extension or re-enactment thereof for
the time being in force) nor will the bringing of Proceedings in any one or
more jurisdictions preclude the bringing of Proceedings in any other
jurisdiction.

 

(c)                                  Service of Process.  Each party irrevocably appoints the Process
Agent (if any) specified opposite its name in the Schedule to receive, for it
and on its behalf, service of process in any Proceedings.  If for any

 

13

 

reason any party’s Process
Agent is unable to act as such, such party will promptly notify the other party
and within 30 days appoint a substitute process agent acceptable to the other
party.  The parties irrevocably consent
to service of process given in the manner provided for notices in Section
12.  Nothing in this Agreement will
affect the right of either party to serve process in any other manner permitted
by law.

 

(d)                                 Waiver of Immunities.  Each party irrevocably waives, to the
fullest extent permitted by applicable law, with respect to itself and its
revenues and assets (irrespective of their use or intended use), all immunity
on the grounds of sovereignty or other similar grounds from (i) suit, (ii)
jurisdiction of any court, (iii) relief by way of injunction, order for
specific performance or for recovery of property, (iv) attachment of its assets
(whether before or after judgment) and (v) execution or enforcement of any judgment
to which it or its revenues or assets might otherwise be entitled in any
Proceedings in the courts of any jurisdiction and irrevocably agrees, to the
extent permitted by applicable law, that it will not claim any such immunity in
any Proceedings.

 

14.                               Definitions

 

As used in this Agreement:—

 

“Additional Termination Event”
has the meaning specified in Section 5(b).

 

“Affected Party”
has the meaning specified in Section 5(b).

 

“Affected Transactions”
means (a) with respect to any Termination Event consisting of an Illegality,
Tax Event or Tax Event Upon Merger, all Transactions affected by the occurrence
of such Termination Event and (b) with respect to any other Termination Event,
all Transactions.

 

“Affiliate” means, subject to the
Schedule, in relation to any person, any entity controlled, directly or
indirectly, by the person, any entity that controls, directly or indirectly,
the person or any entity directly or indirectly under common control with the
person.  For this purpose, “control” of
any entity or person means ownership of a majority of the voting power of the
entity or person.

 

“Applicable Rate” means:—

 

(a)                                  in
respect of obligations payable or deliverable (or which would have been but for
Section 2(a)(iii)) by a Defaulting Party, the Default Rate;

 

(b)                                 in
respect of an obligation to pay an amount under Section 6(e) of either party
from and after the date (determined in accordance with Section 6(d)(ii)) on
which that amount is payable, the Default Rate;

 

(c)                                  in
respect of all other obligations payable or deliverable (or which would have
been but for Section 2(a)(iii)) by a Non-defaulting Party, the Non-default
Rate; and

 

(d)                                 in
all other cases, the Termination Rate.

 

“Burdened Party” has the meaning
specified in Section 5(b).

 

“Change in Tax Law” means the
enactment, promulgation, execution or ratification of, or any change in or
amendment to, any law (or in the application or official interpretation of any
law) that occurs on or after the date on which the relevant Transaction is
entered into.

 

“consent” includes a consent, approval,
action, authorisation, exemption, notice, filing, registration or exchange
control consent.

 

“Credit Event Upon Merger” has the
meaning specified in Section 5(b).

 

“Credit Support Document” means any
agreement or instrument that is specified as such in this Agreement.

 

“Credit Support Provider” has the meaning
specified in the Schedule.

 

“Default Rate” means a rate per annum
equal to the cost (without proof or evidence of any actual cost) to the
relevant payee (as certified by it) if it were to fund or of funding the
relevant amount plus 1% per annum.

 

14

 

“Defaulting Party” has the meaning
specified in Section 6(a).

 

“Early Termination Date” means the date
determined in accordance with Section 6(a) or 6(b)(iv).

 

“Event of Default” has the meaning
specified in Section 5(a) and, if applicable, in the Schedule.

 

“Illegality” has the meaning specified in
Section 5(b).

 

“Indemnifiable Tax” means any Tax other
than a Tax that would not be imposed in respect of a payment under this
Agreement but for a present or former connection between the jurisdiction of
the government or taxation authority imposing such Tax and the recipient of
such payment or a person related to such recipient (including, without
limitation, a connection arising from such recipient or related person being or
having been a citizen or resident of such jurisdiction, or being or having been
organised, present or engaged in a trade or business in such jurisdiction, or
having or having had a permanent establishment or fixed place of business in
such jurisdiction, but excluding a connection arising solely from such
recipient or related person having executed, delivered, performed its
obligations or received a payment under, or enforced, this Agreement or a
Credit Support Document).

 

“law” includes any treaty, law, rule or
regulation (as modified, in the case of tax matters, by the practice of any
relevant governmental revenue authority) and “lawful” and “unlawful” will be
construed accordingly.

 

“Local Business Day” means, subject to
the Schedule, a day on which commercial banks are open for business (including
dealings in foreign exchange and foreign currency deposits) (a) in relation to
any obligation under Section 2(a)(i), in the place(s) specified in the relevant
Confirmation or, if not so specified, as otherwise agreed by the parties in
writing or determined pursuant to provisions contained, or incorporated by
reference, in this Agreement, (b) in relation to any other payment, in the
place where the relevant account is located and, if different, in the principal
financial centre, if any, of the currency of such payment, (c) in relation to
any notice or other communication, including notice contemplated under Section
5(a)(i), in the city specified in the address for notice provided by the
recipient and, in the case of a notice contemplated by Section 2(b), in the
place where the relevant new account is to be located and (d) in relation to
Section 5(a)(v)(2), in the relevant locations for performance with respect to
such Specified Transaction.

 

“Loss” means, with respect to this
Agreement or one or more Terminated Transactions, as the case may be, and a
party, the Termination Currency Equivalent of an amount that party reasonably
determines in good faith to be its total losses and costs (or gain, in which
case expressed as a negative number) in connection with this Agreement or that
Terminated Transaction or group of Terminated Transactions, as the case may be,
including any loss of bargain, cost of funding or, at the election of such
party but without duplication, loss or cost incurred as a result of its
terminating, liquidating, obtaining or reestablishing any hedge or related
trading position (or any gain resulting from any of them).  Loss includes losses and costs (or gains) in
respect of any payment or delivery required to have been made (assuming
satisfaction of each applicable condition precedent) on or before the relevant
Early Termination Date and not made, except, so as to avoid duplication, if
Section 6(e)(i)(1) or (3) or 6(e)(ii)(2)(A) applies.  Loss does not include a party’s legal fees and out-of-pocket
expenses referred to under Section 11. 
A party will determine its Loss as of the relevant Early Termination
Date, or, if that is not reasonably practicable, as of the earliest date
thereafter as is reasonably practicable. 
A party may (but need not) determine its Loss by reference to quotations
of relevant rates or prices from one or more leading dealers in the relevant
markets.

 

“Market Quotation” means, with respect to
one or more Terminated Transactions and a party making the determination, an
amount determined on the basis of quotations from Reference Market-makers.  Each quotation will be for an amount, if
any, that would be paid to such party (expressed as a negative number) or by
such party (expressed as a positive number) in consideration of an agreement
between such party (taking into account any existing Credit Support Document
with respect to the obligations of such party) and the quoting Reference
Market-maker to enter into a transaction (the “Replacement Transaction”) that
would have the effect of preserving for such party the economic equivalent of
any payment or delivery (whether the underlying obligation was absolute or
contingent and assuming the satisfaction of each applicable condition
precedent) by the parties under Section 2(a)(i) in respect of such Terminated
Transaction or group of Terminated Transactions that would, but for the
occurrence of the relevant Early Termination Date, have

 

15

 

been required after that
date.  For this purpose, Unpaid Amounts
in respect of the Terminated Transaction or group of Terminated Transactions
are to be excluded but, without limitation, any payment or delivery that would,
but for the relevant Early Termination Date, have been required (assuming
satisfaction of each applicable condition precedent) after that Early
Termination Date is to be included.  The
Replacement Transaction would be subject to such documentation as such party
and the Reference Market-maker may, in good faith, agree.  The party making the determination (or its
agent) will request each Reference Market-maker to provide its quotation to the
extent reasonably practicable as of the same day and time (without regard to
different time zones) on or as soon as reasonably practicable after the
relevant Early Termination Date.  The
day and time as of which those quotations are to be obtained will be selected
in good faith by the party obliged to make a determination under Section 6(e),
and, if each party is so obliged, after consultation with the other.  If more than three quotations are provided,
the Market Quotation will be the arithmetic mean of the quotations, without
regard to the quotations having the highest and lowest values.  If exactly three such quotations are
provided, the Market Quotation will be the quotation remaining after
disregarding the highest and lowest quotations.  For this purpose, if more than one quotation has the same highest
value or lowest value, then one of such quotations shall be disregarded.  If fewer than three quotations are provided,
it will be deemed that the Market Quotation in respect of such Terminated
Transaction or group of Terminated Transactions cannot be determined.

 

“Non-default Rate” means a rate per annum
equal to the cost (without proof or evidence of any actual cost) to the
Non-defaulting Party (as certified by it) if it were to fund the relevant
amount.

 

“Non-defaulting Party” has the meaning
specified in Section 6(a).

 

“Office” means a branch or office of a
party, which may be such party’s head or home office.

 

“Potential Event of Default” means any
event which, with the giving of notice or the lapse of time or both, would
constitute an Event of Default.

 

“Reference Market-makers” means four
leading dealers in the relevant market selected by the party determining a
Market Quotation in good faith (a) from among dealers of the highest credit
standing which satisfy all the criteria that such party applies generally at
the time in deciding whether to offer or to make an extension of credit and (b)
to the extent practicable, from among such dealers having an office in the same
city.

 

“Relevant Jurisdiction” means, with
respect to a party, the jurisdictions (a) in which the party is incorporated,
organised, managed and controlled or considered to have its seat, (b) where an
Office through which the party is acting for purposes of this Agreement is
located, (c) in which the party executes this Agreement and (d) in relation to
any payment, from or through which such payment is made.

 

“Scheduled Payment Date” means a date on
which a payment or delivery is to be made under Section 2(a)(i) with respect to
a Transaction.

 

“Set-off” means set-off, offset,
combination of accounts, right of retention or withholding or similar right or
requirement to which the payer of an amount under Section 6 is entitled or
subject (whether arising under this Agreement, another contract, applicable law
or otherwise) that is exercised by, or imposed on, such payer.

 

“Settlement Amount” means, with respect
to a party and any Early Termination Date, the sum of:—

 

(a)                                  the
Termination Currency Equivalent of the Market Quotations (whether positive or
negative) for each Terminated Transaction or group of Terminated Transactions
for which a Market Quotation is determined; and

 

(b)                                 such
party’s Loss (whether positive or negative and without reference to any Unpaid
Amounts) for each Terminated Transaction or group of Terminated Transactions
for which a Market Quotation cannot be determined or would not (in the
reasonable belief of the party making the determination) produce a commercially
reasonable result.

 

“Specified Entity” has the meanings
specified in the Schedule.

 

16

 

“Specified Indebtedness” means, subject
to the Schedule, any obligation (whether present or future, contingent or
otherwise, as principal or surety or otherwise) in respect of borrowed money.

 

“Specified Transaction” means, subject to
the Schedule, (a) any transaction (including an agreement with respect thereto)
now existing or hereafter entered into between one party to this Agreement (or
any Credit Support Provider of such party or any applicable Specified Entity of
such party) and the other party to this Agreement (or any Credit Support
Provider of such other party or any applicable Specified Entity of such other
party) which is a rate swap transaction, basis swap, forward rate transaction,
commodity swap, commodity option, equity or equity index swap, equity or equity
index option, bond option, interest rate option, foreign exchange transaction,
cap transaction, floor transaction, collar transaction, currency swap
transaction, cross-currency rate swap transaction, currency option or any other
similar transaction (including any option with respect to any of these
transactions), (b) any combination of these transactions and (c) any other
transaction identified as a Specified Transaction in this Agreement or the
relevant confirmation.

 

“Stamp Tax” means any stamp,
registration, documentation or similar tax.

 

“Tax” means any present or future tax,
levy, impost, duty, charge, assessment or fee of any nature (including
interest, penalties and additions thereto) that is imposed by any government or
other taxing authority in respect of any payment under this Agreement other
than a stamp, registration, documentation or similar tax.

 

“Tax Event” has the meaning specified in
Section 5(b).

 

“Tax Event Upon Merger” has the meaning
specified in Section 5(b).

 

“Terminated Transactions” means with
respect to any Early Termination Date (a) if resulting from a Termination
Event, all Affected Transactions and (b) if resulting from an Event of Default,
all Transactions (in either case) in effect immediately before the
effectiveness of the notice designating that Early Termination Date (or, if
“Automatic Early Termination” applies, immediately before that Early
Termination Date).

 

“Termination Currency” has the meaning
specified in the Schedule.

 

“Termination Currency Equivalent” means,
in respect of any amount denominated in the Termination Currency, such
Termination Currency amount and, in respect of any amount denominated in a
currency other than the Termination Currency (the “Other Currency”), the amount
in the Termination Currency determined by the party making the relevant
determination as being required to purchase such amount of such Other Currency
as at the relevant Early Termination Date, or, if the relevant Market Quotation
or Loss (as the case may be), is determined as of a later date, that later
date, with the Termination Currency at the rate equal to the spot exchange rate
of the foreign exchange agent (selected as provided below) for the purchase of
such Other Currency with the Termination Currency at or about 11:00 a.m. (in
the city in which such foreign exchange agent is located) on such date as would
be customary for the determination of such a rate for the purchase of such
Other Currency for value on the relevant Early Termination Date or that later
date.  The foreign exchange agent will,
if only one party is obliged to make a determination under Section 6(e), be
selected in good faith by that party and otherwise will be agreed by the
parties.

 

“Termination Event” means an Illegality,
a Tax Event or a Tax Event Upon Merger or, if specified to be applicable, a
Credit Event Upon Merger or an Additional Termination Event.

 

“Termination Rate” means a rate per annum
equal to the arithmetic mean of the cost (without proof or evidence of any
actual cost) to each party (as certified by such party) if it were to fund or
of funding such amounts.

 

“Unpaid Amounts” owing to any party
means, with respect to an Early Termination Date, the aggregate of (a) in respect
of all Terminated Transactions, the amounts that became payable (or that would
have become payable but for Section 2(a)(iii)) to such party under Section
2(a)(i) on or prior to such Early Termination Date and which remain unpaid as
at such Early Termination Date and (b) in respect of each Terminated
Transaction, for each obligation under Section 2(a)(i) which was (or would have
been but for Section 2(a)(iii)) required to be settled by delivery to such
party on or prior to such Early Termination Date and which has not been so
settled as at such Early Termination Date, an amount equal to the fair market

 

17

 

value of that which was (or
would have been) required to be delivered as of the originally scheduled date
for delivery, in each case together with (to the extent permitted under
applicable law) interest, in the currency, of such amounts, from (and
including) the date such amounts or obligations were or would have been
required to have been paid or performed to (but excluding) such Early
Termination Date, at the Applicable Rate. Such amounts of interest will be
calculated on the basis of daily compounding and the actual number of days
elapsed. The fair market value of any obligation referred to in clause (b)
above shall be reasonably determined by the party obliged to make the
determination under Section 6(e) or, if each party is so obliged, it shall be
the average of the Termination Currency Equivalents of the fair market values
reasonably determined by both parties.

 

IN WITNESS WHEREOF the parties
have executed this document on the respective dates specified below with effect
from the date specified on the first page of this document.

 

	
  JPMorgan Chase Bank (“Morgan”)
(Name of Party)

  	
   

  	
  World Financial Network Credit Card Master

  Note Trust (“Counterparty”)

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Chase Manhattan Bank USA, National  Association,
  not in its individual capacity, but 
  solely as Owner Trustee

  
	
   

  	
   

  
	
   

  	
  (Name of Party)

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Don Thompson

  	
   

  	
  By:

  	
  /s/ John J. Cashin 

  	
   

  
	
   

  	
  Name:  Don Thompson

  	
   

  	
  Name:  John J. Cashin

  
	
   

  	
  Title:  Managing Director and

  	
   

  	
  Title:  Vice-President

  
	
   

  	
  Associate General Counsel

  	
   

  	
  Date:  August 7, 2003

  
	
   

  	
  Date:  August 7, 2003

  	
   

  
						

 

CLASS A-2 SWAP

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