Document:

ex10-1.htm

    
      

    

    SECOND MODIFICATION AND
EXTENSION AGREEMENT

    

    This
SECOND MODIFICATION AND EXTENSION AGREEMENT (this “Agreement”)
dated as of May 30, 2007 by and between STRATUS PROPERTIES INC., a
Delaware corporation (“Stratus”),
STRATUS PROPERTIES OPERATING
CO., L.P., a Delaware limited partnership (“SPOC”),
CIRCLE C LAND, L.P., a
Texas limited partnership (“Circle
C”), and AUSTIN 290
PROPERTIES, INC., a Texas corporation (“Austin”)
(Stratus, SPOC, Circle C and Austin are sometimes referred to in this Agreement
severally as “Borrower”),
CALERA COURT, L.P., a
Texas limited partnership ("Calera
Court"), OLY STRATUS
BARTON CREEK I JOINT VENTURE, a Texas joint venture ("Stratus
JV") and COMERICA BANK ("Lender");

    

    W I T N E
S S E T H:

    

    WHEREAS,
Borrower has executed and delivered to Lender, inter alia, (i) that
certain Revolving Promissory Note dated as of September 30, 2005, payable to the
order of Lender in the original principal sum of $45,000,000.00, with interest
and principal payable as therein provided, which note was amended by that
certain Modification and Extension Agreement (the "First
Modification") dated as of May 30, 2006, executed by and among Borrower,
Calera Court, Stratus JV and Lender, and recorded under Clerk’s File No.
2006140557 of the Real Property Records of Travis County, Texas (said note, as
amended by the First Modification, is herein called the “Note”);
(ii) that certain Loan Agreement dated of even date with the Note between
Borrower, Calera Court and Lender, which loan agreement was amended by the First
Modification (said loan agreement, as amended by the First Modification, is
herein called the "Loan
Agreement"); (iii) that certain Deed of Trust, Security Agreement and
Assignment of Rents dated of even date with the Note from Stratus to Melinda
Chausse, Trustee, securing the payment of the Note, covering certain real and
personal property described therein, recorded under Clerk’s File No. 2005183345
of the Real Property Records of Travis County, Texas, which deed of trust was
amended by the First Modification (said deed of trust, as amended by the First
Modification, is herein called the “Stratus
Deed of Trust”); (iv) that certain Deed of Trust, Security Agreement and
Assignment of Rents dated of even date with the Note from Circle C to Melinda
Chausse, Trustee, securing the payment of the Note, covering certain real and
personal property described therein, recorded under Clerk’s File No. 2005183344
of the Real Property Records of Travis County, Texas, which deed of trust was
amended by the First Modification (said deed of trust, as amended by the First
Modification, is herein called the “Circle C
Deed of Trust”); (v) that certain Deed of Trust, Security Agreement and
Assignment of Rents dated of even date with the Note from SPOC to Melinda
Chausse, Trustee, securing the payment of the Note, covering certain real and
personal property described therein, recorded under Clerk’s File No. 2005183343
of the Real Property Records of Travis County, Texas, which deed of trust was
amended by the First Modification (said deed of trust, as amended by the First
Modification, is herein called the “SPOC Deed
of Trust”); (vi) that certain Deed of Trust, Security Agreement and
Assignment of Rents dated of even date with the Note from Austin to Melinda
Chausse, Trustee, securing the payment of the Note, covering certain real and
personal property described therein, recorded under Clerk’s File No. 2005183347
of the Real Property Records of Travis County, Texas, which deed of trust was
amended by the First Modification (said deed of trust, as amended by the First
Modification, is herein called the “Austin
Deed of Trust”); (vii) that certain Deed of Trust, Security Agreement and
Assignment of Rents dated of even date with the Note from Calera Court to
Melinda Chausse, Trustee, securing the payment of the Note, covering certain
real and personal property described therein, recorded under Clerk’s File No.
2005183346 of the Real Property Records of Travis County, Texas, which deed of
trust was amended by the First Modification (said deed of trust, as amended by
the First Modification, is herein called the “Calera
Court Deed of Trust”); (viii) that certain Deed of Trust, Security
Agreement and Assignment of Rents dated of even date with the Note from Stratus
JV to Melinda Chausse, Trustee, securing the payment of the Note, covering
certain real and personal property described therein, recorded under Clerk’s
File No. 2005183348 of the Real Property Records of Travis County, Texas, which
deed of trust was amended by the First Modification (said deed of trust, as
amended by the First Modification, is herein called the “Stratus
JV Deed of Trust”) (the Stratus Deed of Trust, Circle C Deed of Trust,
SPOC Deed of Trust, Austin Deed of Trust, Calera Court and Stratus JV Deed of
Trust are herein collectively called the "Deed of
Trust", and all of the property covered by the Deed of Trust is herein
collectively called the “Mortgaged
Property”) (the Note, Loan Agreement, Deed of Trust and all other
documents executed by Borrower and/or any other party or parties evidencing or
securing or otherwise in connection with the loans evidenced by the Note being
herein collectively called the "Loan
Documents");

    

    WHEREAS,
the Note is due and payable on May 30, 2008, and Borrower has requested that
Lender extend the term of the Note to May 30, 2009 and make certain other
modifications to the Loan Documents, and Lender is willing to do so on the terms
and conditions set forth below; and

    

    WHEREAS,
Lender is the owner and holder of the Note and Borrower is the owner of the
legal and equitable title to the Mortgaged Property;

    

    NOW,
THEREFORE, for and in consideration of the mutual covenants contained herein and
for other valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

    

    1. Defined
Terms.  Capitalized terms used but not defined in this
Agreement shall have the meaning given to such capitalized terms in the Loan
Agreement.

    

    2. Extension
of Maturity Date.  The maturity date of the Note is hereby
extended to May 30, 2009, and the liens, security interests, assignments and
other rights evidenced by the Loan Documents are hereby renewed and extended to
secure payment of the Note as extended hereby.

    

    3. Modification
of Interest Rate.

    

    (a)           The
definition of Applicable Base Rate in the Note is hereby amended in its entirety
to read as follows:

     

    “'Applicable
Base Rate' shall mean the lesser of (a) the Base Rate from time to time
in effect minus
one and one-tenth of one percent (1.10%) per annum, or (b) the Maximum Lawful
Rate, but in no event shall the Applicable Base Rate ever be less than the Floor
Rate.  Fluctuations in the Applicable Base Rate shall become effective
immediately, without necessity for any notice whatsoever."

     

    (b)           The
definition of Applicable LIBOR Rate in the Note is hereby amended in its
entirety to read as follows:

     

    “'Applicable
LIBOR Rate' shall mean the lesser of (a) the rate of interest equal to
the Adjusted LIBOR Rate in effect for the subject Interest Period plus
one and sixty-five one hundredths percent (1.65%) or (b) the Maximum Lawful
Rate, but in no event shall the Applicable LIBOR Rate ever be less than the
Floor Rate."

     

    

    4. Representations
and Warranties.  Borrower hereby represents and warrants that
(a) Borrower is the sole legal and beneficial owner of the Mortgaged
Property; (b) Borrower is duly organized and legally existing under the laws of
the State of Texas; (c) the execution and delivery of, and performance
under this Agreement are within Borrower's power and authority without the
joinder or consent of any other party and have been duly authorized by all
requisite action and are not in contravention of law or the powers of Borrower's
articles of incorporation and bylaws; (d) this Agreement constitutes the legal,
valid and binding obligations of Borrower enforceable in accordance with its
terms; (e) the execution and delivery of this Agreement by Borrower do not
contravene, result in a breach of or constitute a default under any deed of
trust, loan agreement, indenture or other contract, agreement or undertaking to
which Borrower is a party or by which Borrower or any of its properties may be
bound (nor would such execution and delivery constitute such a default with the
passage of time or the giving of notice or both) and do not violate or
contravene any law, order, decree, rule or regulation to which Borrower is
subject; and (f) to the best of Borrower's knowledge there exists no uncured
default under any of the Loan Documents.  Borrower agrees to indemnify
and hold Lender harmless against any loss, claim, damage, liability or expense
(including without limitation reasonable attorneys' fees) incurred as a result
of any representation or warranty made by it herein proving to be untrue in any
respect.

    

    5. Further
Assurances.  Borrower, upon request from Lender, agrees to
execute such other and further documents as may be reasonably necessary or
appropriate to consummate the transactions contemplated herein or to perfect the
liens and security interests intended to secure the payment of the loan
evidenced by the Note.

    

    6. Default;
Remedies.  If Borrower shall fail to keep or perform any of the
covenants or agreements contained herein or if any statement, representation or
warranty contained herein is false, misleading or erroneous in any material
respect, Borrower shall be deemed to be in default under the Deed of Trust and
Lender shall be entitled at its option to exercise any and all of the rights and
remedies granted pursuant to the any of the Loan Documents or to which Lender
may otherwise be entitled, whether at law or in equity.

    

    7. Endorsement
to Mortgagee Title Policy.  Contemporaneously with the
execution and delivery hereof, Borrower shall, at its sole cost and expense,
obtain and deliver to Lender an Endorsement of the Mortgagee Title Policy
insuring the lien of the Deed of Trust, under Procedural Rule P-9b(3) of the
applicable title insurance rules and regulations, in form and content acceptable
to Lender, stating that the company issuing said Mortgagee Title Policy will not
claim that policy coverage has terminated or that policy coverage has been
reduced, solely by reason of the execution of this Agreement.

    

    8. Ratification
of Loan Documents.  Except as provided herein, the terms and
provisions of the Loan Documents shall remain unchanged and shall remain in full
force and effect.  Any modification herein of any of the Loan
Documents shall in no way adversely affect the security of the Deed of Trust and
the other Loan Documents for the payment of the Note.  The Loan
Documents as modified and amended hereby are hereby ratified and confirmed in
all respects.  All liens, security interests, mortgages and
assignments granted or created by or existing under the Loan Documents remain
unchanged and continue, unabated, in full force and effect, to secure Borrower's
obligation to repay the Note.

    

    9. Liens
Valid; No Offsets or Defenses.  Borrower hereby acknowledges
that the liens, security interests and assignments created and evidenced by the
Loan Documents are valid and subsisting and further acknowledges and agrees that
there are no offsets, claims or defenses to any of the Loan
Documents.

    

    12.           Merger;
No Prior Oral Agreements.  This Agreement supersedes and merges
all prior and contemporaneous promises, representations and
agreements.  No modification of this Agreement or any of the Loan
Documents, or any waiver of rights under any of the foregoing, shall be
effective unless made by supplemental agreement, in writing, executed by Lender
and Borrower.  Lender and Borrower further agree that this Agreement
may not in any way be explained or supplemented by a prior, existing or future
course of dealings between the parties or by any prior, existing, or future
performance between the parties pursuant to this Agreement or
otherwise.

    

    13.           Notices.  Any
notice or communication required or permitted hereunder or under any of the Loan
Documents shall be given in writing and sent in the manner required under the
Loan Agreement.

    

    14.           Costs and
Expenses.  Contemporaneously with the execution and delivery
hereof, Borrower shall pay, or cause to be paid, all costs and expenses incident
to the preparation hereof and the consummation of the transactions specified
herein, including without limitation title insurance policy endorsement charges,
recording fees and fees and expenses of legal counsel to Lender.

    

    15.           Release
of Lender.  Borrower hereby releases, remises, acquits and
forever discharges Lender, together with its employees, agents, representatives,
consultants, attorneys, fiduciaries, servants, officers, directors, partners,
predecessors, successors and assigns, subsidiary corporations, parent
corporations, and related corporate divisions (all of the foregoing hereinafter
called the "Released
Parties"), from any and all actions and causes of action, judgments,
executions, suits, debts, claims, demands, liabilities, obligations, damages and
expenses of any and every character, known or unknown, direct and/or indirect,
at law or in equity, of whatsoever kind or nature, whether heretofore or
hereafter accruing, for or because of any matter or things done, omitted or
suffered to be done by any of the Released Parties prior to and including the
date hereof, and in any way directly or indirectly arising out of or in any way
connected to this Agreement or any of the Loan Documents, or any of the
transactions associated therewith, or the Mortgaged Property, including
specifically but not limited to claims of usury.

    

    16.           Counterparts.  This
Agreement may be executed in any number of counterparts with the same effect as
if all parties hereto had signed the same document.  All such
counterparts shall be construed together and shall constitute one instrument,
but in making proof hereof it shall only be necessary to produce one such
counterpart.

    

    17.           Severability.  If
any covenant, condition, or provision herein contained is held to be invalid by
final judgment of any court of competent jurisdiction, the invalidity of such
covenant, condition, or provision shall not in any way affect any other
covenant, condition or provision herein contained.

    

    18.           Time of
the Essence.  It is expressly agreed by the parties hereto that
time is of the essence with respect to this Agreement.

    

    19.           Representation
by Counsel.  The parties acknowledge and confirm that each of
their respective attorneys have participated jointly in the review and revision
of this Agreement and that it has not been written solely by counsel for one
party.  The parties hereto therefore stipulate and agree that the rule
of construction to the effect that any ambiguities are to or may be resolved
against the drafting party shall not be employed in the interpretation of this
Agreement to favor either party against the other.

    

    20.           Governing
Law.  This Agreement and the rights and duties of the parties
hereunder shall be governed for all purposes by the law of the State of Texas
and the law of the United States applicable to transactions within said
State.

    

    21.           Successors
and Assigns.  The terms and provisions hereof shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns.

    

    22.           Notice of
No Oral Agreements.  Borrower and Lender hereby take notice of
and agree to the following:

    

    A.           PURSUANT TO SUBSECTION 26.02(b) OF
THE TEXAS BUSINESS AND COMMERCE CODE, A LOAN AGREEMENT IN WHICH THE AMOUNT
INVOLVED THEREIN EXCEEDS $50,000 IN VALUE IS NOT ENFORCEABLE UNLESS THE
AGREEMENT IS IN WRITING AND SIGNED BY THE PARTY TO BE BOUND OR BY THAT PARTY'S
AUTHORIZED REPRESENTATIVE.

    

    B.           PURSUANT TO SUBSECTION 26.02(c) OF
THE TEXAS BUSINESS AND COMMERCE CODE, THE RIGHTS AND OBLIGATIONS OF THE PARTIES
TO THE LOAN DOCUMENTS SHALL BE DETERMINED SOLELY FROM THE LOAN DOCUMENTS, AND
ANY PRIOR ORAL AGREEMENTS BETWEEN THE PARTIES ARE SUPERSEDED BY AND MERGED INTO
THE LOAN DOCUMENTS.

    

    C.           THE LOAN DOCUMENTS AND THIS AGREEMENT
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES THERETO AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS
OF THE PARTIES THERETO.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS
BETWEEN THE PARTIES.

    

    [SIGNATURE
PAGE FOLLOWS]

    IN
WITNESS WHEREOF, this Agreement is executed on the respective dates of
acknowledgement below but is effective as of the date first above
written.

    

    BORROWER:

    

    STRATUS
PROPERTIES INC.,

    a
Delaware corporation

    

    

    By:   /s/
John E.
Baker                                                             

    John E.
Baker, Senior Vice President

    

    STRATUS PROPERTIES OPERATING CO.,
L.P., a Delaware limited partnership

    

    
      	
               
      

            	
              By:

            	
              STRS
      L.L.C., a Delaware limited liability company, General
    Partner

            

    

    

    
      	
               
      

            	
              By

            	
              Stratus
      Properties Inc., a Delaware corporation,  Sole
      Member

            

    

    

    

    By:       /s/
John E.
Baker                                               

    John E.
Baker,

    Senior
Vice President

    

    CIRCLE
C LAND, L.P.,

    a Texas
limited partnership

    

    
      	
               
      

            	
              By:

            	
              Circle
      C GP, L.L.C., a Delaware limited liability company, General
      Partner

            

    

    

    
      	
               
      

            	
              By

            	
              Stratus
      Properties Inc., a Delaware corporation, Sole
  Member

            

    

    

    

    By:       /s/
John
E. Baker                                               

    John E.
Baker,

    Senior
Vice President

    

    AUSTIN
290 PROPERTIES, INC.,

    a Texas
corporation

    

    By:    /s/
John E.
Baker                                                                       

    John E.
Baker, Senior Vice President

    

    LENDER:

    

    COMERICA
BANK

    

    

    By:   /s/ Shery R.
Layne                                                                        

    Shery
Layne, Vice President

    STATE
OF
TEXAS                              §

    §

    COUNTY
OF
TRAVIS                        §

    

    This
instrument was acknowledged before me on the 22nd day of June, 2007, by
John E. Baker, Senior Vice President of Stratus Properties Inc., a Delaware
corporation, on behalf of said corporation.

    

    
                                /s/ Jody L.
Bickel

    Notary
Public, State of Texas

    My
Commission Expires: 2/24/2010

    Printed
Name of Notary: Jody L. Bickel

    

    

    STATE
OF
TEXAS                              §

    §

    COUNTY
OF
TRAVIS                        §

    

    This
instrument was acknowledged before me on the 22nd day of June, 2007, by
John E. Baker, Senior Vice President of Stratus Properties Inc., a Delaware
corporation, Sole Member of STRS L.L.C., a Delaware limited liability company,
General Partner of Stratus Properties Operating Co., L.P., a Delaware limited
partnership, on behalf of said corporation, limited liability company and
limited partnership.

    

    
                                /s/ Jody L.
Bickel

    Notary
Public, State of Texas 

    My
Commission Expires: 2/24/2010

    Printed
Name of Notary: Jody L. Bickel

    

    

    STATE
OF
TEXAS                              §

    §

    COUNTY
OF
TRAVIS                        §

    

    This
instrument was acknowledged before me on the 22nd day of June, 2007, by
John E. Baker, Senior Vice President of Stratus Properties Inc., a Delaware
corporation, Sole Member of Circle C GP, L.L.C., a Delaware limited liability
company, General Partner of Circle C Land, L.P., a Delaware limited
partnership, on behalf of said corporation, limited liability company limited
partnership.

     

    
                                /s/ Jody L.
Bickel

    Notary
Public, State of Texas

    My
Commission Expires: 2/24/2010

    Printed
Name of Notary: Jody L. Bickel

    

    

    STATE
OF
TEXAS                              §

    §

    COUNTY
OF
TRAVIS                        §

    

    This
instrument was acknowledged before me on the 22nd day of June, 2007, by
John E. Baker, Senior Vice President of Austin 290 Properties Inc., a Delaware
corporation, on behalf of said corporation.

     

    
                                /s/ Jody L.
Bickel

    Notary
Public, State of Texas

    My
Commission Expires: 2/24/2010

    Printed
Name of Notary: Jody L. Bickel

    

    

    

    STATE
OF
TEXAS                             §

    §

    COUNTY
OF
DALLAS                      §

    

    This
instrument was acknowledged before me on the 27 day of June, 2007, by Shery
Layne, Vice President of Comerica Bank, on behalf of said bank.

    
 

    
                                /s/ Allene
Medlock

    Notary
Public, State of Texas

    My
Commission
Expires: 11/14/2007                                                                          

    Printed
Name of Notary: Allene Medlock

    

    

    CONSENT
OF CALERA COURT

    

    The
undersigned, Calera Court, L.P., hereby executes the Agreement to evidence its
agreement to be bound by the extension of the Maturity Date, and confirms and
agrees that all of its obligations under the Loan Documents applicable to it
remain in full force and effect.

    

    Executed
on the date of acknowledgement below but effective as of May 30,
2007.

    

    CALERA COURT, L.P. a Texas
limited partnership

    

    
      	
               
      

            	
              By:

            	
              Calera
      Court Management, L.L.C., a Texas limited liability company, its general
      partner

            

    

    

    
      	
               
      

            	
              By:

            	
              Stratus
      Properties Operating Co., L.P., a Delaware limited partnership, its
      Manager

            

    

    

    
      	
               
      

            	
              By:

            	
              STRS
      L.L.C., a Delaware limited liability company, its general
      partner

            

    

    

    
      	
               
      

            	
              By:

            	
              Stratus
      Properties Inc., a Delaware corporation, its Sole
  Member

            

    

    

    

    
      	
               
      

            	
              By:

            	 /s/ John E.
      Baker

    

    John E.
Baker,

    Senior
Vice President

    

    

    

    STATE OF
TEXAS                                              §

    §

    COUNTY OF
TRAVIS                                        §

    

    This
instrument was acknowledged before me on the 22nd day of June, 2007, by
John E. Baker, Senior Vice President of Stratus Properties Inc., a Delaware
corporation, Sole Member of STRS L.L.C., a Delaware limited liability company,
General Partner of Stratus Properties Operating Co., L.P., a Delaware limited
partnership, Manager of Calera Court Management, L.L.C., a Texas limited
liability company, General Partner of Calera Court, L.P., a Texas limited
partnership, on behalf of each said entity and said limited
partnership.

    
                                /s/ Jody L.
Bickel

    Notary
Public in and for the State of Texas

    

    

    Printed/Typed
Name of Notary

    My
Commission Expires:

    2/24/2010

    _____________________.

    

    

    CONSENT
OF STRATUS JV

    

    The
undersigned, Oly Stratus Barton Creek I Joint Venture, hereby executes the
Agreement to evidence its agreement to be bound by the extension of the Maturity
Date, and confirms and agrees that all of its obligations under the Loan
Documents applicable to it remain in full force and effect.

    

    Executed
on the date of acknowledgement below but effective as of May 30,
2007.

    

    OLY
STRATUS BARTON CREEK I JOINT VENTURE,

    a Texas
joint venture

     

    
      	
               
      

            	
              By:

            	
              STRS
      L.L.C., a Delaware limited liability company, its General
      Partner

            

    

     

    
      	
               
      

            	
              By:

            	
              Stratus
      Properties Inc., a Delaware corporation, its Sole
  Member

            

    

    

    

    By:   /s/
John E.
Baker                                                             

    John E.
Baker, Senior Vice President

    

    
      	
               
      

            	
              By:

            	
              Stratus
      ABC West I, L.P., a Texas limited partnership,
  Venturer

            

    

     

    
      	
               
      

            	
              By:

            	
              STRS
      L.L.C., a Delaware limited liability company, General
    Partner

            

    

    

    
      	
               
      

            	
              By:

            	
              Stratus
      Properties Inc., a Delaware corporation, its sole
  member

            

    

     

    

    By:      /s/
John E.
Baker                                                

    John E.
Baker,

    Senior
Vice President

    

    

    STATE OF
TEXAS                              §

    §

    COUNTY OF
TRAVIS                         §

     

    The
foregoing instrument was acknowledged before me on the 22nd day of June,
2007, by John E. Baker, Senior Vice President of Stratus Properties Inc., a
Delaware corporation, Sole Member of STRS L.L.C., a Delaware limited liability
company, venturer of Oly Stratus Barton Creek I Joint Venture, a Texas joint
venture, on behalf of each such entities.

     

    

     

    [ S E A L
]                                                                           /s/
Jody L. Bickel

    Notary
Public, State of Texas

    

    My
Commission
Expires:                                                                           

    (Printed Name of Notary
Public)

    _2/24/2010__________

     

    

    

    

    

    

    STATE OF
TEXAS                              §

    §

    COUNTY OF
TRAVIS                         §

     

    The
foregoing instrument was acknowledged before me on the 22nd day of June,
2007, by John E. Baker, Senior Vice President of Stratus Properties Inc., a
Delaware corporation, Sole Member of STRS L.L.C., a Delaware limited liability
company, General Partner of Stratus ABC West I, L.P., a Texas limited
partnership, venturer of Oly Stratus Barton Creek I Joint Venture, a Texas joint
venture, on behalf of each such entities.

     

    

     

    [ S E A L
]                                                                           /s/
Jody L. Bickel

    Notary
Public, State of Texas

    

    My
Commission
Expires:                                                                           

    (Printed Name of Notary
Public)

    __2/24/2010__________termsdoc08-a2.htm

     

     

     

    
Exhibit
      4.1

    
 

    CITIBANK
      CREDIT CARD ISSUANCE TRUST

    

    Citiseries

    Class
      2008-A2 Notes

    

    Issuer
      Certificate

    Pursuant
      to Sections 202 and 301(h) of the Indenture

    

    Reference
      is made to the Indenture, dated as of September 26, 2000, as amended by
      Amendment No. 1 thereto dated as of November 14, 2001, each between Citibank
      Credit Card Issuance Trust (the "Issuer") and Deutsche Bank Trust Company
      Americas, as trustee (the "Indenture").  Capitalized terms used herein
      that are not otherwise defined have the meanings set forth in the Indenture.
      All
      references herein to designated Sections are to the designated Sections of
      the
      Indenture.

    

    Section
      301(h) provides that the Issuer may from time to time create a tranche of Notes
      either by or pursuant to an Issuer Certificate setting forth the principal
      terms
      thereof.  Pursuant to this Issuer Certificate, there is hereby created
      a tranche of Notes having the following terms:

    

    Series
      Designation:  Citiseries.  This series is included
      in Group 1.

    

    Tranche
      Designation:  $1,100,000,000 Floating Rate Class 2008-A2
      Notes of January 2018 (Legal Maturity Date January 2020) (hereinafter, the
      "Class 2008-A2 Notes")

    

    Currency:  The
      Class 2008-A2 Notes will be payable, and denominated, in Dollars.

    

    Denominations:  The
      Class 2008-A2 Notes will be issuable in minimum denominations of $100,000 and
      multiples of $1,000 in excess of that amount.

    

    Issuance
      Date:  February 8, 2008

    

    Initial
      Principal Amount:  $1,100,000,000

    

    Issue
      Price:  100%

    

    Interest
      Rate:  The Class 2008-A2 Notes will accrue interest with
      respect to any interest period at a per annum rate equal to the Class 2008-A2
      Note Rate for such interest period, calculated on the basis of the actual number
      of days in such interest period divided by 360.  The "Class 2008-A2
      Note Rate" means, with respect to the first interest period, 4.32198% per annum
      and, with respect to each interest period thereafter, a per annum rate equal
      to
      LIBOR for such interest period plus 1.15%.

    

    The
      Issuer will determine LIBOR for each applicable interest period on the second
      business day before the beginning of that interest period.  For
      purposes of calculating LIBOR, a business day is any day on which dealings
      in
      deposits in U.S. Dollars are transacted in the London interbank
      market.

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    "LIBOR"
      means, as of any date of determination, the rate for deposits in U.S. Dollars
      for the Designated Maturity (commencing on the first day of the relevant
      interest period) which appears on the Reuters Screen LIBOR01 Page as of 11:00
      a.m., London time, on such date. If such rate does not appear on the Reuters
      Screen LIBOR01 Page, the rate for that day will be determined on the basis
      of
      the rates at which deposits in U.S. Dollars are offered by the Reference Banks
      at approximately 11:00 a.m., London time, on that day to prime banks in the
      London interbank market for the Designated Maturity (commencing on the first
      day
      of the relevant interest period). The Issuer will request the principal London
      office of each of the Reference Banks to provide a quotation of its rate. If
      at
      least two such quotations are provided, the rate for that day will be the
      arithmetic mean of the quotations. If fewer than two quotations are provided
      as
      requested, the rate for that day will be the arithmetic mean of the rates quoted
      by major banks in New York City, selected by the Issuer, at approximately 11:00
      a.m., New York City time, on that day for loans in U.S. Dollars to leading
      European banks for a period of the Designated Maturity (commencing on the first
      day of the relevant interest period).

    

    "Reuters
      Screen LIBOR01 Page" means the display page currently so designated on the
      Reuters Monitor Money Rates service (or such other page as may replace that
      page
      on that service or any successor service for the purpose of displaying
      comparable rates or prices).

    

    "Designated
      Maturity" means one month.

    

    "Reference
      Banks" means four major banks in the London interbank market selected by
      the Issuer.

    

    Scheduled
      Interest Payment Dates:  The 23rd
      day of each month,
      beginning March 2008.

    

    Each
      payment of interest on the Class 2008-A2 Notes will include all interest accrued
      from and including the preceding Interest Payment Date -- or, for the first
      interest period, from and including the Issuance Date -- to and including the
      day preceding the current Interest Payment Date, plus any interest accrued
      but
      not previously paid.

    

    The
      first
      deposit targeted to be made to the Interest Funding sub-Account for the Class
      2008-A2 Notes will be on the March 21, 2008 Interest Deposit Date and in an
      amount equal to $5,942,722.50.

    

    Expected
      Principal Payment Date:  January 23, 2018

    

    Legal
      Maturity Date:  January 23, 2020

    

    Monthly
      Principal Date:  For the month in which the Expected
      Principal Payment Date occurs, January 23, 2018, and for each other month,
      the
      23rd day of
      such month, or if such day is not a Business Day, the next following Business
      Day.

    

    Required
      Subordinated Amount of Class B
      Notes:  $65,812,010.

    

    Required
      Subordinated Amount of Class C
      Notes:  $87,749,310.

    

    Controlled
      Accumulation Amount:  $91,666,667.

     

    
 

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    Form
      of Notes:  The Class 2008-A2 Notes will be issued as Global
      Notes.  The Global Notes will initially be registered in the name of
      Cede & Co., as nominee of The Depository Trust Company, and will be
      exchangeable for individual Notes only in accordance with the provisions of
      Section 204(c).

    

    Additional
      Issuances of Class 2008-A2 Notes:  The Issuer may at any time
      and from time to time issue additional Class 2008-A2 Notes, subject to the
      satisfaction of (i) the conditions precedent set forth in Section 311(a) and
      (ii) the following conditions:

    

    
      	
               

            	
              (a)
                the Issuer has obtained written confirmation from each Rating Agency
                that
                there will be no Ratings Effect with respect to the then outstanding
                Class
                2008-A2 Notes as a result of the issuance of such additional Class
                2008-A2
                Notes;

            

    

    

    
      	
               

            	
              (b)
                as of the date of issuance of the additional Class 2008-A2 Notes,
                all
                amounts due and owing to the Holders of the then outstanding Class
                2008-A2
                Notes have been paid and there is no Nominal Liquidation Amount Deficit
                with respect to the then outstanding Class 2008-A2
                Notes;

            

    

    

    
      	
               

            	
              (c)
                the additional Class 2008-A2 Notes will be fungible with the original
                Class 2008-A2 Notes for federal income tax
                purposes;

            

    

    

    
      	
               

            	
              (d)
                if Holders of the then outstanding Class 2008-A2 Notes have benefit
                of a
                Derivative Agreement, the Issuer will have obtained a Derivative
                Agreement
                for the benefit of the Holders of the additional Class 2008-A2 Notes;
                and

            

    

    

    
      	
               

            	
              (e)
                the ratio of the Controlled Accumulation Amount to the Initial Dollar
                Principal Amount of the Class 2008-A2 Notes, including the additional
                Class 2008-A2 Notes, will be equal to the ratio of the Controlled
                Accumulation Amount (before giving effect to the additional issuance)
                to
                the Initial Dollar Principal Amount of the Class 2008-A2 Notes, excluding
                the additional Class 2008-A2 Notes.

            

    

    

    As
      of the
      date of issuance of additional Class 2008-A2 Notes, the Outstanding Dollar
      Principal Amount and Nominal Liquidation Amount of the Class 2008-A2 Notes
      will
      be increased to reflect the Initial Dollar Principal Amount of the additional
      Class 2008-A2 Notes.

    

    Any
      outstanding Class 2008-A2 Notes and any additional Class 2008-A2 Notes will
      be
      equally and ratably entitled to the benefits of the Indenture without
      preference, priority or distinction.

    

    Optional
      Redemption Provisions other than Section 1202 "Clean-Up
      Call":  None

    

    Additional
      Early Redemption Events or changes to Early Redemption
      Events:  None

    

    Additional
      Events of Default or changes to Events of
      Default:  None

    

    Business
      Day: means any day other than (a) a Saturday or Sunday or (b) any other
      day on which national banking associations or state banking institutions in
      New
      York, New York or South Dakota, or any other state in which the principal
      executive offices of any Additional Seller are located, are authorized or
      obligated by law, executive order or governmental decree to be
      closed.

    

    Securities
      Exchange Listing:  Application will be made to list the Class
      2008-A2 Notes on the Irish Stock Exchange.

    

    
      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

    

    

    The
      Class
      2008-A2 Notes shall have such other terms as are set forth in the form of Note
      attached hereto as Exhibit A.  Pursuant to Section 202, the form of
      Note attached hereto has been approved by the Issuer.

    

    

    
      	 	
              CITIBANK
                CREDIT CARD ISSUANCE TRUST

            
	 	
              By    Citibank
                (South Dakota), National Association,

            
	 	
              as
                Managing
                Beneficiary

            
	 	 
	 	 
	 	 
	 	
              /s/
                Douglas C.
                Morrison

                      ___________________________

            
	 	
              Douglas
                C.
                Morrison

            
	 	
              Vice
                President

            

    

    

    Dated:  February
      8, 2008

    

    

    
      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

    

    

    Citiseries

     

    Class
      2008-A2 Notes

    

    Reference
      is made to the resolutions adopted by the Board of Directors of Citibank (South
      Dakota), National Association ("Citibank (South Dakota)") on April 26, 2000,
      as
      amended on September 25, 2001 and October 25, 2006. The resolutions authorize
      Citibank (South Dakota) from time to time to issue and sell, or to arrange
      for
      or participate in the issuance and sale of, one or more series and/or classes
      of
      pass-through certificates, participation certificates, commercial paper, notes
      or other securities representing ownership interests in, or backed by, pools
      of
      credit card receivables or interests therein ("Receivables") in an aggregate
      principal amount such that up to $125,000,000,000 of such certificates,
      commercial paper, notes or securities are outstanding at any one time and to
      sell, transfer, convey or assign Receivables to trusts or other special purpose
      entities in connection therewith on such terms as to be determined by the
      Citibank (South Dakota) Pricing and Loan Committee (the "Pricing and Loan
      Committee").

    

    The
      undersigned, a duly authorized member of the Pricing and Loan Committee, on
      behalf of such Pricing and Loan Committee, does hereby certify that the terms
      of
      the tranche of Notes set forth in and to be created by the preceding Issuer
      Certificate and the increase in the Invested Amount of the Collateral
      Certificate resulting from the issuance of such Notes have been approved by
      such
      Pricing and Loan Committee. In addition, the following underwriting/selling
      agent terms with respect to this tranche of Notes have been approved by such
      Pricing and Loan Committee:

    

    Issue
      Price:  100%

    

    Underwriting
      Commission:  0.35%

    

    Proceeds
      to Issuer:  99.65%

    

    Representative
      of the Underwriters:  Citigroup Global Markets Inc.

    

    

    The
      preceding Issuer Certificate and this certification of Pricing and Loan
      Committee approval shall be, continuously from the time of their execution,
      official records of Citibank (South Dakota).

    

    

    

    
      	
              /s/
                Douglas C. Morrison

              _____________________________

            
	
              Douglas
                C. Morrison

            
	
              Member
                of the Pricing and Loan Committee

            
	
              Citibank
                (South Dakota), National
                Association

            

    

    

    

    Dated:  February
      8, 2008

    

    
      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

    

    

    Exhibit
      A

    

    FORM
      OF

    

    CITISERIES

    

    FLOATING
      RATE CLASS 2008-A2 NOTES OF JANUARY 2018

    (Legal
      Maturity Date January 2020)

    

    

    
      	
              $___,000,000

            	 	
              REGISTERED

            
	
              CUSIP
                No. 17305E EF 8

            	 	
              No.
                R-__

            

    

    

    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
      PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN AND IN THE INDENTURE
      REFERRED TO BELOW. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE
      AT
      ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

    

    

    CITIBANK
      CREDIT CARD ISSUANCE TRUST

    

    CITISERIES

    

    FLOATING
      RATE CLASS 2008-A2 NOTES OF JANUARY 2018

    (Legal
      Maturity Date January 2020)

    

    

    CITIBANK
      CREDIT CARD ISSUANCE TRUST, a trust formed and existing under the laws of the
      State of Delaware (including any successor, the "Issuer"), for value received,
      hereby promises to pay to CEDE & CO., or its registered assigns, the
      principal amount of _____ HUNDRED MILLION DOLLARS ($___,000,000).  The
      Expected Principal Payment Date for this Note is January 23,
      2018.  The Legal Maturity Date for this Note is January 23,
      2020.

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    The
      Issuer hereby promises to pay interest on this Note on the 23rd day of
      each month,
      beginning March 2008, until the principal of this Note is paid or made available
      for payment, subject to certain limitations set forth in the
      Indenture.  Interest will accrue on the outstanding principal amount
      of this Note for each interest period in an amount equal to the product of
      (i)
      the actual number of days in such interest period divided by 360, (ii) a rate
      per annum equal to the Class 2008-A2 Note Rate for such interest period, and
      (iii) the outstanding principal amount of this Note as of the preceding Interest
      Payment Date (after giving effect to any payments of principal made on the
      preceding Interest Payment Date) or, in the case of the first Interest Payment
      Date, the initial principal amount of this Note.  The Class 2008-A2
      Note Rate will be determined as provided in the Indenture.

    

    If
      any
      Interest Payment Date or Principal Payment Date of this Note falls on a day
      that
      is not a Business Day, the required payment of interest or principal will be
      made on the following Business Day.

    

    This
      Note
      is one of the Citiseries, Class 2008-A2 Notes issued pursuant to the Indenture,
      dated as of September 26, 2000 (as amended and otherwise modified from time
      to
      time, the "Indenture") between the Issuer and Deutsche Bank Trust Company
      Americas, as Trustee. For purposes of this Note, the term "Indenture" includes
      any supplemental indenture or Issuer Certificate relating to the Citiseries,
      Class 2008-A2 Notes. This Note is subject to all of the terms of the Indenture.
      All terms used in this Note that are not otherwise defined herein and that
      are
      defined in the Indenture will have the meanings assigned to them
      therein.

    

    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.

    

    Each
      Holder by acceptance of this Note, and each owner of a beneficial interest
      in
      this Note by acceptance of a beneficial interest in this Note, is deemed to
      have
      consented to such amendments to the Pooling and Servicing Agreement and other
      operative documents as are necessary to permit the Seller to retain sale
      treatment for accounting purposes of the transfer of assets to the Master Trust,
      in accordance with the provisions of Financial Accounting Standards Board SFAS
      No. 140.

    

    Reference
      is made to the further provisions of this Note set forth on the reverse hereof,
      which will 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 the Trustee whose
      name appears below by manual signature, this Note will not

    

    
      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

    

    

    be
      entitled to any benefit under the Indenture, or be valid or obligatory for
      any
      purpose.

    

    IN
      WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually
      or
      in facsimile, by an Issuer Authorized Officer.

    

    
      	 	
              CITIBANK
                CREDIT CARD ISSUANCE TRUST

            
	 	 
	 	
              By:       CITIBANK
                (SOUTH DAKOTA),

            
	 	
              NATIONAL
                ASSOCIATION,

            
	 	
              as
                Managing Beneficiary of

            
	 	
              Citibank
                Credit Card Issuance Trust

            
	 	 
	 	 
	 	
              By:
                __________________________________

            
	 	
              Douglas
                C.
                Morrison

            
	 	
              Vice
                President

            

    

    

    Dated:  February
      8, 2008

    

    

    

    

    TRUSTEE'S
      CERTIFICATE OF AUTHENTICATION

    

    

    This
      is
      one of the Notes designated above and referred to in the within mentioned
      Indenture.

    

    

    
      	 	
              DEUTSCHE
                BANK TRUST COMPANY AMERICAS,

            
	 	
              as
                Trustee under the Indenture

            
	 	 
	 	 
	 	
              By:
                _________________________________

            
	 	
              Authorized
                Signatory

            

    

    

    Dated:  February
      8, 2008

    

    

    

    

    

    
      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

    

    

    REVERSE
      OF NOTE

    

    This
      Note
      is one of a duly authorized issue of Notes of the Issuer, designated as its
      Citiseries Floating Rate Class 2008-A2 Notes of January 2018 (Legal Maturity
      Date January 2020) (herein called the "Notes"), all issued under an Indenture,
      to which Indenture reference is hereby made for a statement of the respective
      rights and obligations thereunder of the Issuer, the Trustee and the Holders
      of
      the Notes.

    

    This
      Note
      ranks pari passu with all other Class A Notes of the same series, as set forth
      in the Indenture. This Note is secured to the extent, and by the collateral,
      described in the Indenture.

    

    The
      Issuer will pay interest on overdue interest as set forth in the Indenture
      to
      the extent lawful.

    

    Each
      Holder by acceptance of this Note, and each owner of a beneficial interest
      in
      this Note by acceptance of a beneficial interest in this Note, agrees that
      no
      recourse may be taken, directly or indirectly, with respect to the obligations
      of the Issuer or the Trustee on the Notes, against the Issuer, the Issuer
      Trustee, Citibank (South Dakota), the Trustee or any affiliate, officer,
      employee or director of any of them, and the obligation of the Issuer to pay
      principal of or interest on this Note or any other amount payable to the Holder
      of this Note will be subject to Article V of the Indenture.

    

    Each
      Holder by acceptance of this Note, and each owner of a beneficial interest
      in
      this Note by acceptance of a beneficial interest in this Note, agrees that
      this
      Note is intended to be debt of Citibank (South Dakota) for federal, state and
      local income and franchise tax purposes, and agrees to treat this Note
      accordingly for all such purposes, unless otherwise required by a taxing
      authority.

    

    Each
      Holder by acceptance of this Note, and each owner of a beneficial interest
      in
      this Note by acceptance of a beneficial interest in this Note, agrees that
      it
      will not at any time institute against the Issuer, or join in any institution
      against the Issuer of, any bankruptcy, reorganization, arrangement, insolvency
      or liquidation proceeding, or other proceedings under any United States federal
      or state bankruptcy or similar law in connection with any obligations relating
      to this Note, the Indenture or any Derivative Agreement.

    

    This
      Note
      and the Indenture will be construed in accordance with and governed by the
      laws
      of the State of New York.

    

    No
      reference herein to the Indenture and no provision of this Note or of the
      Indenture will alter or impair the obligation of the Issuer, which is absolute
      and unconditional, to pay the principal of and interest on this Note at the
      times, place and rate, and in the coin or currency, herein
      prescribed.

    

    Certain
      amendments may be made to the Indenture without the consent of the Holder of
      this Note.  This Note must be surrendered for final payment of
      principal and interest.

    

    

    

    
      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

    

    

    ASSIGNMENT

    

    

    Social
      Security or taxpayer I.D. or other identifying number of
      assignee:____________________

    

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto

    

    ___________________________________________________________________

    

    ___________________________________________________________________

    (name
      and
      address of assignee)

    

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

    

    Dated:  ____________________________

    

    _________________________*

    
      	
               

            	
              Signature
                Guaranteed:

            

    

    

    

    

    

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

    *    NOTE:
      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.

    

    

    

    

    5

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