Document:

Exhibit 10.37

 

 

LEASE AGREEMENT FOR OFFICE SPACE

and other commercial premises subject to Article 230a of Book 7 of the Dutch Civil Code

 

 

Model contract as established by the Real Estate Council (ROZ) on July 30, 2003.

THE UNDERSIGNED:

1. Stichting Mathilda, established in 5216 PR 's-Hertogenbosch at Pettelaarpark 107, registered in the Trade Register for Brabant under number 56341296, hereby duly represented by it's managing director Mr. H.W.M. van der Wallen, 

hereinafter referred to as "Lessor",

AND

Brand Loyalty Sourcing B.V., established in 5215 MV 's-Hertogenbosch at Het Zuiderkruis 1, registered in the Trade Register for Brabant under number 17187852, VAT number NL815650358B01, hereby duly represented by it's managing director Mr. J.J.J. Rikken, 

hereinafter referred to as "Lessee",

HAVE AGREED AS FOLLOWS:

Property, purpose

1.1

Lessor leases to Lessee and Lessee leases from Lessor the (yet to be realized) distribution center with adjoining outdoor space, hereinafter referred to as "the Leased Space", situated at the Zonneveld, 5993 SG Maasbree, existing and located at (section s of) the lots recorded in the Land Register Maasbree as section S, numbers 89, 90, 321, 322, 323, 405, 325, 326 and 534 as shown on the Land Register map in Appendix 2.

The Leased Space includes a plot of land in size of approximately 75,575 m2, comprising an approximate 63,675 m2 construction site and an approximate 11,900 m2 infiltration area, a distribution center of approximately 44,715 m2 gross floor area divided in approximately 40,237 m2 warehouse, approximately 3,078 m2 mezzanine floor and approximately 1,400 m2 office space, as well as an outdoor area including 229 parking spots for passenger cars, 4 parking lots for trucks, and two entrances and exits.

The Leased Space is further specified in the documents that have been attached to this Lease Agreement and that are part of this Lease Agreement, including in particular:

		·	The booklet of sketches and drawings of the Leased Space dated 04/05/2012, drafted by DENC (Appendix 3),

		·	The technical specification dated 04/05/2012, drafted by DENC (Appendix 4)

1.2

Lessor shall invite Lessee for the delivery of the Leased Space to Lessee, which will take place simultaneously with the delivery contractor-Lessor and Lessor-institutional retail investor. Lessee shall inform Lessor about any defects well before the delivery.

Defects that do not interfere with the use by Lessee shall not be a reason for Lessee to refuse delivery of the Leased Space. If the Leased Space meets the requirements of the provisions of Article 1.1, subject to the provisions in the preceding sentence, and Lessee is invited for the delivery but does not cooperate the delivery, unduly refuses the delivery, or starts using the Leased Space, the Leased Space is assumed delivered to Lessee. In the event of defects that may interfere with the use, to be specified by Lessor well before the delivery, Lessor and Lessee shall mutually consult each other. Lessor is obligated to repair the defects referred to in this Paragraph as soon as possible. Defects that interfere with use shall be repaired by Lessor in any event before the date of delivery.

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Upon delivery by Lessor to Lessee a report shall be drafted in which any defects still to be remedied at the expense of Lessor shall be noted (Appendix 5). The report shall further include which installations and other equipment are and are not part of the Leased Space (in as far as this is not clear from the documents mentioned hereabove, including the technical specification).

1.3

Delivery to Lessee shall take place not earlier than September 1, 2013, and not later than January 15, 2014. Delivery on the first day of a calendar month is preferred. If and insofar a delivery does not take place on the first day of a calendar month, the date of delivery referred to in Articles 3.1, 4.5 and 4.9 of this Agreement shall be considered the first day of the (next) calendar month. In this event, however, an additional payment from Lessee to Lessor shall take place for the period from the delivery date up to the date of the first day of the next calendar month.

1.4

The Leased Space shall exclusively be used by or on behalf of Lessee as distribution space and outdoor area for the purpose of parking and shunting passenger cars, trucks and (sea) containers.

1.5

Lessee is not allowed to assign any purpose to the Leased Space other than described under 1.4 without the prior written consent of Lessor.

1.6

The maximum permissible load on the floor(s) of the Leased Space is an evenly distributed load of the warehouse of maximum 40 kN/m2, of freight forwarding maximum 25 kN/m2, and of the mezzanine floor maximum 8 kN/m2. The maximum concentrated load per rack leg in the warehouse is 75 kN per rack leg (2 x 75 kN rack legs back-to-back). Lessee shall not load the floors heavier than structurally permitted.

Conditions

2.1

The 'GENERAL CONDITIONS FOR THE LEASING OF OFFICE SPACE' and other business premises subject to Article 230a of Book 7 of the Dutch Civil Code', filed with the Clerk of the District Court of The Hague on July 11, 2003 and registered under number 72/2003, hereinafter referred to as the "General Conditions", are part of this Lease Agreement. These General Conditions are fully known to the parties. Lessor and Lessee have received a copy of the General Conditions, which is included in Appendix 6.

2.2

The General Conditions referred to in 2.1 are applicable except where this Lease Agreement expressly stipulates otherwise or where applicability in relation to the Leased Space is not possible. In the even of inconsistencies between this Agreement and the General Conditions, this Agreement prevails.

Duration, extension and termination

3.1

This Lease Agreement takes effect on the date of signing by both parties and shall remain in effect for the duration equal to the lease period, and has an initial duration of fifteen (15) years, calculated from the day of delivery to Lessee. Deliver will take place in accordance with Article 1.3 of this Agreement.

The obligations of Lessor to provide quiet enjoyment of the lease does not take effect on the day this Agreement enters into effect, but on the day of delivery to Lessee instead. Notwithstanding the provisions of Article 2 of the General Conditions, this delivery does not take place at the commencement of this Agreement.

3.2

Except termination by Lessee at that end of the lease period referred to in Article 3.1, this Lease Agreement will subsequently be renewed for a consecutive period of five years.

3.3

Except termination by Lessee at that end of the lease period referred to in Article 3.2, this Lease Agreement will subsequently be renewed for a consecutive period of five years.

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3.4

Except termination by Lessee at that end of the lease period referred to in Article 3.3, this Lease Agreement will subsequently be renewed for a consecutive period of five years.

3.5

Except termination by Lessee or Lessor at that end of the lease period referred to in Article 3.4, this Lease Agreement will subsequently be renewed for a consecutive period of five years each time, except termination by Lessee or Lessor.

3.6

The notice period by Lessee and Lessor is one year. Terminations shall take place in writing by bailiff's writ or registered mail.

Rent, VAT, rent adjustment, payment obligations, period of payment

4.1

The initial rent (price level January 1, 2012) of the Leased Space is   , excluding VAT. In words:   .

The initial rent on an annual basis with price level January 1, 2012 is structured as follows:

	 	
-

	 	
Warehouse rent:

	 	
 

	 	 
	 	
-

	 	
Mezzanine rent:

	 	
 

	 	 
	 	
-

	 	
Office space rent:

	 	
 

	 	 
	 	 	 	
Total

	 	
 

	 	 

4.2

Parties agree that Lessor  charge VAT on the rent.

4.3

As parties agreed that VAT will be charged on the rent Lessor and Lessee will use the option based on Communication 45, Decree of March 24, 1999, number VB 99/571 to waive a joint option request for a VAT taxable lease. By signing this Lease Agreement Lessee declares, also for the benefit of Lessor's successor(s) in title, that he uses and will continue to use, or will others make use and continue to use, the Leased Space for purposes for which right of deduction of VAT under Article 15 of the Turnover Tax Act 1968 entirely or practically entirely subject exists.

4.4

Lessee's fiscal year runs from January 1 through December 31, 2013. Lessor's VAT number is   .

4.5

On the date of delivery of the Leased Space a first indexing shall take place over the period beginning on January 1, 2012 up to the date of delivery in accordance with the stipulations of Articles 9.1 through 9.4 of the General Conditions. Thereafter for the duration of the lease period, the rent shall be reviews (indexed) annually, for the first time one year after the date of delivery, pursuant to Articles 9.1 through 9.4 of the General Conditions.

4.6

Lessee's payment obligations consist of:

·     the rent;

·     VAT due on the rent.

4.7

If the parties agreed on a VAT taxable lease and the Leased Space may no longer be leased subject to VAT Lessee is no longer required to pay VAT on the rent. In such case the amounts of compensation referred to in 19.3.a of the General Conditions apply and will replace the VAT and the compensation pursuant to 19.3.a sub I is assessed beforehand by parties at a percentage of the actual annual rent still to be determined, where the basis shall be that Lessor will be fully compensated for any costs in relation to Lessor no longer being entitled to deduct VAT. Lessor shall substantiate these costs by means of an audit statement.

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4.8

At the date of commencement of the lease (which is equal to the date of delivery of the Leased Space to Lessee) the rent (price level January 1, 2012) per payment period of three calendar months is:

The initial rent on an annual basis with price level January 1, 2012 is structured as follows:

	 	
-

	 	
Warehouse rent:

	 	
 

	 	 
	 	
-

	 	
Mezzanine rent:

	 	
 

	 	 
	 	
-

	 	
Office space rent:

	 	
 

	 	 
	 	
-

	 	
VAT due on the rent

	 	
 

	 	 
	 	 	 	
Total including VAT

	 	
 

	 	 

In words:

4.9

The first payment by Lessee shall take place on the date of delivery of the Lease Space - taking into account the stipulations agreed between parties in article 3.1 of this Agreement - and an amount of   (price level January 1, 2012) is due. This amount is inclusive of VAT.

4.10

The periodic payments to be made by Lessee to Lessor under this Lease Agreement as specified in 4.7 through 4.9 are due as an advance payment in one sum in Euros and shall be been made in full before or on the first day of the period to which the payments apply.

4.11

Unless stated otherwise, all amounts in this Lease Agreement and the General Conditions forming a part thereof are exclusive of VAT.

Supplies and services

5.1

No additional supplies and services will be provided by or on behalf of Lessor. The Leased Space is equipped with meters for the supply of energy and water. Lessee shall enter into subscriptions with utilities for the direct delivery of energy (electricity and gas) and water.

Lessee shall enter into service agreements for the maintenance of technical equipment present in the Leased Space (see also Article 13 of the General Conditions, including Article 13.4 sub g of the General Conditions). These service agreements include annual maintenance and annual certification of the sprinkler installation.

Lessee may opt to perform the relevant maintenance periodically and timely by technically qualified personnel, either its own personnel or personnel of a third party, in lieu of entering into service agreements. If Lessee wishes to exercise this option the following applies:

·      Lessee will inform Lessor about this;

·      Lessee shall maintain a log of the performed maintenance, and who performs this maintenance

·      Maintenance and periodic control of the heating installation(s);

·      Lessee shall show Lessor that this maintenance is periodically (at least annually) and properly performed by technically qualified personnel.

 

Furthermore, Lessee is required to

a.      keep the premises clean on a regular basis

b.      inspect and if required clean the roofs, gutters and rain water drains at least twice per year (spring and fall), and maintain a relevant administration.

 

Upon first request of Lessor Lessee shall provide copies of the service agreements and relevant invoices, and provide access in any activities performed by Lessee.

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Guarantees

6.1

Notwithstanding the provisions of Article 12.1 of the General Conditions Lessee is no required to provide a bank guarantee.

6.2

Lessor shall enter into an agreement with Brand Loyalty International B.V., including a lease agreement with Brand Loyalty International B.V. for the event that this Lease Agreement should terminate as a result of bankruptcy or receivership of Lessee, corresponding to the attached model (Appendix 7). The agreement with Brand Loyalty International B.V. shall be executed prior to or simultaneously with the execution of the Lease Agreement. This agreement with Brand Loyalty International B.V. is essential for Lessee. Any not (timely) concluding of that agreement is a deficiency of Lessee.

Property management

7.1

Until Lessor informs otherwise, the management of the property will be carried out by Lessor.

7.2

Unless agreed in writing otherwise, Lessee will consult the management on the contents and any other matter relating to this Lease Agreement, with the exception of termination of the Lease Agreement or in respect of an amendment of the Lease Agreement (for which the Lessee shall discuss with the Lessor himself).

Special conditions

8.

Conditions consequent

8.1

Notwithstanding any other rights arising from the law and / or this Agreement this Agreement can be dissolved without interference of the Court:

a)   by the counterparty of the party that has been declared bankrupt;

b)   by the counterparty of the party that is in receivership;

c)   by the counterparty of the party that remains in default, despite a summons for payment with observance of a period of at least 14 days, for a substantial obligation 

       for that party resulting from the Agreement.

 

Undersized - oversized

8.2

Under or oversize of the floor area of the developed real property (the Distribution Center) will (shall) never result to any settlement of the rent and / or any costs of additional supplies and services during the period of this Lease Agreement, including any renewal(s), unless there is a variation of more than 1% positive, or 1% native, of the floor area as included in Article 1.1 of this Agreement. Such settlement shall take place based on the prices determined in Article 4.1 and the measurement certificate in accordance with NEN 2580 still to be added, as included in Appendix 8.

 

Changes to the Leased Space

8.3

At the end of the Lease Agreement parties will jointly consult about any features to be left by Lessee and any agreed upon settlement for such features.

Water Supply Decree

8.4

In addition to the provisions in the General Conditions to this Lease Agreement, parties agree that (mandatory) inspections, maintenance and / or other measures to be undertaken by order of the government or utilities with regard to (the use of) water equipment installed in the Leased Space, such in the broadest sense, are at the expense of Lessee. This also applies in the event Lessor is the party who is legally liable to undertake such measures. Measures described in the first sentence

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include periodical risk analyses and any resulting obligations as meant in Articles 17i and further of the Dutch Water Supply Decree [Waterleidingbesluit]. Lessor is not liable for the implications that result from contamination caused by legionella and / or other bacteria present in the water supply system of the Leased Space.

Indexing

8.5

The basis year "2000=100" referred to in Article 9.1 of the General Conditions for the price index is changed in to "2006=100

Penalty for non-timely delivery of the Leased Space

8.6

In the event Lessee does not deliver the Leased Space at the end of the Lease Agreement or any date agreed among parties as date for delivery (except in the event of force majeure), Lessee is due to Lessor a penalty of 1 week of the then current rent obligation for each week or part thereof that Lessee does not timely deliver the Leased Space, calculated from the calendar date of the end date of the Lease Agreement. This penalty is payable on demand and not subject to any discount unless parties agree otherwise in writing and have made additional arrangements about the delivery.

The above applies without prejudice to the right to claim demonstrable damages, in which event parties shall first mutually consult to settle the damages in an amicable manner.

Delivery issues that do not interfere with the usage do not pose a reason for Lessor to refuse delivery.

Sublease

8.7

Lessee has the right to give the allow use of the Leased Space by, or sublet the Leased Space to, a company that is part of the group to which Lessee belongs (as meant in Article 2:24b Civil Code). Furthermore, Lessee has the right to allow use of the Leased Space by, or sublet the Leased Space to, one or more logistic service providers.

Lessee remains fully liable for observance of any obligations in the Lease Agreement in the event of sublease or any other type of usage by a third party. In all cases Lessee shall notify Lessor of the fact that a sublease agreement is agreed or usage by a third party takes place.

Changes to General Conditions

9.

Parties deviate from the following articles of the applicable General Conditions:

		·	Article 6.5: Notwithstanding the provisions of Article 6.5 of the General Conditions, Lessee shall only be entitled to install advertising, signage, etcetera on the spaces / areas described in Article 6.5 of the General Conditions. At the end of the Lease Agreement Lessee shall completely remove the advertisement signs, including any means of securing or attaching.

		·	In addition to the provisions of Articles 6.7.1 through 6...7.3 of the General Conditions the following applies at the commencement of the Lease Agreement. Lessee shall ensure that the Leased Space will possess the features that are required for normal business operations as distribution center. In this regard Lessor shall ensure that the Leased Space fulfills al requirements of the Decree Environmental Activities for the normal business operations as distribution center or (if a permit is required) possesses those features that are required to obtain a permit for such use. In this regard, Normal business operations are understood to include transportation movement between 7PM and 7AM, as well as the storage of goods listed in Appendix 10.

		·	Article 6.11.1.c: Notwithstanding the provisions of Article 6.11.1.c parties agree that Lessee is permitted to use (internal) transportation equipment that are commonly used in a distribution center as defined in Article 1 of this Agreement, such without prejudice that any damages resulting from such use to the Leased Space will be repaired by Lessee within a reasonable term.

		·	Article 6.11.2.2: Notwithstanding the provisions of Article 6.11.2.2 Lessee may apply mounting materials in floors, walls, etcetera that are necessary for the installation of racks, internal transportation systems, and similar equipment, provided that the Lease Space will not be damaged as a result thereof, and that these changes can and will be undone at the end of the Lease Agreement (including repair of any holes caused by mounting material.

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		·	Article 6.11.2.9: Notwithstanding the provisions of Article 6. 11.2.9 of the General Conditions parties agree that Lessor may enter or have others enter the spaces as described in Article 6.11.2.9 without prior approval of Lessee, including for the purpose of maintenance.

		·	Article 11.5: Notwithstanding the provisions of Article 11.5, neither Lessor nor Lessee are liable for the consequences of defects that he was not aware of and should not have been aware of at commencement of the Lease Agreement.

		·	In addition to the provisions of Article 11.9 of the General Conditions parties agree that if Lessor despite a written summons subject to a reasonable term does not perform any necessary maintenance or repair activities that are the responsibility of Lessor, including as described in Article 13.3 of the General Conditions, Lessee may perform or have others perform these maintenance or repair activities at the expense of Lessor.

Assignment of rights and obligations

10.

If and in as far as the Leased Space will be sold by Lessor to a third party, Lessor is hereby obliged to ensure that all rights and obligations under this Agreement will be transferred to the third party.

Applicable law and competent Court

11.

Dutch law applies to this Agreement and Appendices. Any disputes arising from this Agreement, to the extent that they can not be settled amicably, shall solely be submitted to the competent Court in the District of Limburg.

Final provision

12.

This Agreement replaces the lease agreement executed on or about April 26, 2012 between Lessee and Venlolog C.V. with regard to the Lease Space and which expires effective the date of execution of this Agreement.

Agreed and signed in threefold,

	
's-Hertogenbosch, December 20, 2012

Lessor

 

/s/ H.W.M. van der Wallen

.........................................

Mr. H.W.M. van der Wallen

	 	
's-Hertogenbosch, December 20, 2012

Lessee

 

/s/ J.J.J. Rikken

.........................................

Mr. J.J.J. Rikken

Appendices:

-Appendix 1   copy Extract Chamber of Commerce [register] Lessor and Lessee

-Appendix 2   Land Register map

-Appendix 3   booklet of sketches and drawings dated April 5, 2012

-Appendix 4   technical description dated April 5, 2012

-Appendix 5   report of delivery (to be added upon delivery)

-Appendix 6   General Conditions

-Appendix 7   agreement of April 26, 2012

-Appendix 8   further to be added measurement certificate NEN 2580

-Appendix 9   soil survey

-Appendix 10  list of products that may be stored in the distribution center according to Article 9

Separate signature(s) of Lessee(s) for receipt of a copy of the 'GENERAL CONDITIONS LEASE AGREEMENT OFFICE SPACE' and other commercial premises subject to Article 7:230a Dutch Civil Code, as referred to in 2.1.

 

Signature

Lessee:

/s/ J.J.J. Rikken

.........................................

Mr. J.J.J. Rikken

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GENERAL TERMS AND CONDITIONS FOR LEASE OF OFFICE SPACE

and other commercial premises subject to Article 230a of Book 7 of the Dutch Civil Code

Model established by the Real Estate Council (ROZ) in July 2003, filed with the Clerk of the District Court of The Hague on 11 July 2003 and registered there under number 72/2003. Any liability for adverse effects arising from the use of the text of this model is hereby excluded by the ROZ.

 

Extent of the Leased Space

1. The term "Leased Space " also includes the installations and facilities in the Leased Space, insofar as they are not excluded in the Certificate of Practical Completion ("proces-verbaal van oplevering"), initialed by parties, to be attached as an appendix to this Lease agreement.

Condition

2. At the commencement of the Lease the Leased Space will or shall be delivered to and accepted by Lessee in its then-existing condition. That condition shall be recorded by or on behalf of Lessee and Lessor in a Certificate of Practical Completion, initialed by parties and to be attached as an appendix to the Lease agreement and, and which forms a part of the Lease agreement. If no Certificate of Practical Completion is prepared at the commencement of the Lease, the Leased Space is considered to have been delivered and accepted in the condition which Lessee can expect from a well-maintained property of the type to which the Lease agreement pertains.

Defect

3.The Leased Space has a defect if, considering the condition or a characteristic or any other circumstance not attributable to Lessee prevents enjoyment of the Leased Space by Lessee which may be expected at the time of the commencement of the Lease agreement.

Inspection in connection with suitability

4. Lessee is required to thoroughly inspect the Leased Space before commencement of the Lease agreement to ascertain whether the Leased Space is suitable or can be made suitable by Lessee for the purposes intended. Lessor has not examined the suitability of the Leased Space and is only required to inform Lessee of defects known to Lessor and of which he knows they would negatively affect the suitability. Lessor is not liable for the consequences of defects which were not or should not have been known to Lessor.

Expertise

5. If Lessee or Lessor are not sufficiently knowledgeable he is required to be assisted or represented by an expert when preparing the Certificate of Practical Completion, and during the inspection referred to under 4.

Use

6.1 For the entire duration of the Lease, Lessee shall effectively, fully, properly, personally and exclusively use the Leased Space for the purpose designated in the Lease agreement. Lessee shall observe any existing restricted rights, restricted covenants, and any requirements imposed or to be imposed by the authorities or utility companies (including requirements relating to Lessee's business, the use of the Leased Space, and everything present in or on the Leased Space ). Lessee shall ensure that the Leased Space has and will continue to have adequate furnishings and fittings, as of the commencement of the Lease. The term "utility companies" in this Lease agreement also includes similar businesses engaged in the supply, delivery and metering the use of energy, water, and the like.

6.2 Lessee shall comply with statutory provisions and local ordinances as well as commercial practice with respect to tenancies, government regulations, utilities and insurance companies. Lessee may only employ companies to perform work relating to security, fire prevention and lift engineering which have been approved by Lessor beforehand and that are certified by the National Centre for Prevention ("Nationaal Centrum voor Preventie") (NCP) or the Dutch Institute for Elevator Technology ("Nederlands Instituut voor Lifttechniek") respectively. If within the framework of supplies and services to be provided by Lessor it was agreed that the aforementioned work will be performed on behalf of Lessor, Lessee may not perform or contract this work himself. Lessee shall at all times observe the conditions of use issued by these companies. Lessee shall also take account any oral or written instructions issued by or on behalf of Lessor in the interest of proper use of the Leased Space and the internal and external spaces, installations and facilities of the building or complex to which the Leased Space belongs. This also includes instructions with respect to maintenance, appearance, noise levels, order, fire prevention, parking regime and the proper functioning of the installations and the building or complex, respectively, to which the Leased Space belongs.

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6.3 Lessee shall not cause any nuisance or disturbance when using the building or complex to which the Leased Space belongs. Lessee shall ensure that any third parties present on the account of Lessee will also not do such.

6.4 Lessee is entitled and is required to use the common facilities and services which are or will be made available in the interest of proper operation of the building or complex to which the Leased Space belongs.

6.5 Lessor is entitled to have access to the roofs, external walls, spaces not accessible to the public or Lessee, appurtenances within the building or complex, as well as gardens and yards of that building or complex, for himself, tenant(s) and third parties, for the purpose of installing (illuminated) advertising, signage, antenna systems or other purposes. If Lessor wishes to exercise this right, Lessor shall notify Lessee in advance, and Lessor shall take Lessee's interests into consideration when exercising this right.

6.6 Lessor may refuse Lessee access to the Leased Space if Lessee has not (yet) fulfilled its obligations under the Lease agreement when Lessee wants commence using the Leased Space. This does not affect the commencement date of the Lease, nor Lessee's obligations under the Lease agreement.

(Government) conditions and permits

6.7.1 Lessee is responsible for and will take arrange any necessary exemptions and/or permits, including user permits required in the course of conducting business, for which the Leased Space is used or designated. The costs arising from this shall be borne by Lessee. The refusal or revocation thereof shall not give grounds for termination of the Lease agreement or any other or further action against Lessor.

6.7.2 At the commencement of the Lease agreement Lessee shall examine whether the Leased Space is suitable for the purpose that Lessee shall use the Leased Space for. If at the time of the commencement of the Lease agreement, or at a later time, any changes or improvements are necessary in, at or to the Leased Space related to the purpose that Lessee has given or will give to the Leased Space are necessary as a result of government regulations or other regulations of other competent authorities, Lessee shall perform these changes or improvements at his own expense, after prior consent of Lessor.

6.7.3 If changes or improvements to, in or at the Leased Space are necessary in relation to the course of business conducted therein, or to the purpose or intended purpose, Lessee is responsible, notwithstanding the stipulations of 6.8.1 through 6.8.3 and 6.11.1 through 6.11.7, to ensure that such work will be carried out in accordance with the requirements imposed or to be imposed by the government or other competent authorities. Lessor therefore does not indemnify Lessee for (government) orders for further investigation or to take measures.

Environment

6.8.1 If at the commencement of the Lease agreement an environmental study with respect to the Leased Space has taken place and during or directly upon termination of the Lease agreement -in a similar survey- higher concentrations of one or more substances under, in, on or around the Leased Space are found than those present at the time of the earlier study, Lessee shall pay any damages arising from the contamination and is liable to Lessor for costs incurred with respect to the removal of the contamination or for taking other measures.

Lessee indemnifies Lessor in this context against claims of third parties, including government institutions.

6.8.2 The provisions of 6.8.1 do not apply if Lessee shows that the contamination did not arise because of actions or omissions by Lessee, his staff or individuals or objects under his supervision, or is not caused by a circumstance which can be imputed to Lessee.

 

6.8.3 Lessor does not indemnify Lessee against (government) orders for further investigation or for taking measures.

Waste products/chemical waste

6.9 Lessee shall strictly comply with any guidelines, regulations or instructions of the government or other competent authorities with regard to the (separate) collection of waste materials. Lessee is liable for all financial, criminal and other consequences resulting from non-compliance or partial compliance.

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Apartment rights

6.10.1 If the building or complex to which the Leased Space belongs is or will be divided into apartment rights, Lessee shall observe the conditions relating to usage as laid down in the deed of division and regulations. The same applies if the building or complex is or becomes part of a co-operative association.

6.10.2 Lessor shall not, so far as it is within his power, cooperate with the realization of regulations which are in conflict with the Lease agreement.

6.10.3 Lessor ensures that Lessee receives a copy of the regulations relating to usage, as specified in 6.10.1.

Prohibitory clauses and rules of procedure

6.11.1 Lessee is not permitted to:

a. have any environmentally hazardous materials in, on, or in the immediate vicinity of the Leased Space, including noxious, flammable or explosive materials, unless these are held in the normal course of business;

b. load the floors of the Leased Space and the building or complex to which the Leased Space belongs exceeding what technically permitted or exceeding the limit described in the Lease agreement;

c. use the Leased Space in such a way that this results in soil or other contamination, damage to the Leased Space or damage to the appearance of the Leased Space, including the use of transportation means which can damage floors or walls;

d. make changes or improvements in, on, or to the Leased Space which violate regulations of the government and utility companies, or the conditions under which the owner of the Leased Space acquired ownership or other restricted rights of the Leased Space, or which result in a nuisance to other Lessees or neighbors or hinder their usage rights.

6.11.2.1 Lessee shall at all times inform Lessor timely, beforehand and in writing about any change or improvement which Lessee wishes to realize or have realized in, to or on the Leased Space, such as nameplates, advertising, signs, announcements, publications, superficies, structures, displays, packaging, goods, vending machines, lighting, sun awnings, roll-down shutters, antennas and attachments, flagpoles, blinding windows, et cetera.

6.11.2.2 Changes and improvements include making holes in the facades, floors and walls.

6.11.2.3 Lessee needs Lessor's prior written consent for the complete or partial change of the furnishings or appearance of the Leased Space, unless it concerns changes or improvements that can be reversed and removed at nominal cost at the end of the Lease.

6.11.2.4 Unless parties agree otherwise in writing, Lessor does not grant permission for changes and improvements which Lessee wishes to make if they cannot be removed at the end of the Lease without damaging the Leased Space and can not be reversed at nominal cost, or if these changes and improvements are not necessary for the efficient use of the Leased Space, or if the quiet enjoyment of the land is not increased, or if Lessor has compelling reasons to object to such changes or improvements.

6.11.2.5 Lessor is entitled to impose conditions with respect to changes or improvements desired by Lessee, including in relation to the execution, location, size and choice of materials. Lessee shall comply with regulations of competent authorities concerning changes or improvements made by Lessee.

6.11.2.6 Any changes and improvements made by Lessee do not form part of the Leased Space, irrespective of whether or not the changes or improvements were made with Lessor's consent.

6.11.2.7 Unless parties have agreed otherwise in writing, changes and improvements made by or on behalf of Lessee must be reversed and removed before the end of the Lease.

6.11.2.8 Lessee waives his rights and claims with respect to unjustified enrichment pertaining to changes and improvements made by or on behalf of Lessee and which are not reversed at the end of the Lease, unless parties have agreed otherwise in writing.

6.11.2.9 Without Lessor's prior written consent Lessee is not permitted to enter or to allow entry to the service and installation rooms, flat roof sections, roofs, gutters, and areas of the Leased Space, the building or complex to which the Leased Space belongs that are not intended for public use; or park vehicles in other than designated parking places.

6.11.3 Lessee shall comply with regulation of the government and other competent authorities, as well as with the oral and written instructions of Lessor, regarding the times and methods for loading and unloading.

6.11.4 Lessor is in no way liable for changes or improvements and the like referred to in 6.11.2.1 and 6.11.2.2.

6.11.5 Lessee shall keep fire extinguishing equipment, fire escapes, and emergency doorways in the Leased Space clear at all times.

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6.11.6 If the Leased Space is equipped with an elevator, rollways, escalator, automatic door system, or similar equipment, or if the Leased Space can be accessed by means of one or more of these or similar equipment, the use thereof shall be entirely at a user's own risk. All instructions issued or to be issued by or

on behalf of Lessor, the involved installers or the government shall be strictly observed. Lessor may decommission such facilities - if and for as long as necessary - without entitlement of Lessee to compensation or reduction of the rent.

6.11.7 If objects (including advertising or other sign-work) affixed by Lessee have to be removed temporarily in connection with maintenance or repair work to the Leased Space or the building or complex to which the Leased Space belongs, the costs of such removal, possible storage and re-affixing these items shall be borne by Lessee, irrespective of whether or not Lessor gave permission for said items to be affixed.

Requests/permissions

6.12.1 If Lessor or Lessee wish to deviate from and/or supplement any provision of this Lease agreement after its execution, Lessor or Lessee shall submit his request for this deviation or supplement in writing.

6.12.2 If and to the extent that any provision of this Lease agreement requires the permission of Lessor or Lessee, such permission will only be deemed to have been granted if it is granted in writing.

6.12.3 Any permission given by Lessor or Lessee is granted on a one-time-only basis and will not apply to other or successive instances. Lessor and Lessee are entitled to grant their respective permission under certain conditions.

Penalty clause

7. If after having received a Notice of Default from the Lessor, Lessee continues to breach the stipulations of the Lease agreement and of these General Conditions, Lessee will incur a penalty, payable on demand, of € 250.00 per day for each day during which Lessee continues to be in default, in as far as no specific penalty has been agreed upon. The foregoing is without prejudice to Lessor's right to full compensation insofar as the damages suffered exceed the penalty imposed.

Sublet

8.1 Lessee is not permitted to let or sublet the entire or part of the Leased Space or grant usage rights thereto, to third parties without Lessor's prior written consent, or to transfer tenancy rights in whole or in part to third parties or to transfer these into a partnership or legal entity, without Lessor's prior written consent.

8.2 If Lessee acts in violation of the foregoing provisions, he will incur a penalty, payable on demand, for each calendar day that the violation continues, equivalent to two times the daily rent payable by Lessee at that time, without prejudice to Lessor's rights to claim specific performance or dissolution of the Lease agreement or any damages.

Rent adjustment

9.1 The rent adjustment as agreed to in 4.5 of the Lease takes place on the basis of the adjustment of the monthly price index of the Consumer Price Index (CPI), all households series (2000 = 100), published by the Central Bureau of Statistics ("Centraal Bureau voor de Statistiek") (CBS). The adjusted rent is calculated with the use of the following formula: the adjusted rent is equivalent to the current rent at the date of change, multiplied by the index number in the calendar month four months prior to the calendar month in which the rent is adjusted, divided by the index number of the calendar month sixteen months prior to the calendar month in which the rental is adjusted.

9.2 The rent will not be adjusted if the adjustment would lead to a lower rent than the last current rent. In that case, the last current rent remains unchanged, until with the next indexing the index number in the calendar month four months prior to the calendar month in which the rent will be adjusted is higher than the index number of the calendar month four months prior to the calendar month in which the rent was lastly adjusted. In that case the rent adjustment will use the index numbers of the calendar months referred to in the previous sentence.

9.3 The validity of a newly indexed rent does not require that Lessee is informed separately of the indexing that will be or already is implemented.

9.4 If CBS no longer publishes said index numbers or if CBS changes the basis of calculation thereof, an indexation method will be used which is as closely comparable to the method of the CBS, or a comparable index number will be used. In case parties disagree, any of the parties may request the Director of CBS to give a decision which will be binding to both parties. Any costs incurred in this regard will be equally split between parties.

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Termination of the Lease agreement or use

10.1.1 Unless otherwise agreed in writing, Lessee shall deliver the Leased Space to Lessor at the end of the Lease, or at the end of use thereof, in the condition as described in the Certificate of Practical Completion at the commencement of the Lease, with the exception of normal wear and tear and ageing.

10.1.2 If no Certificate of Practical Completion was made up at the commencement of the Lease, the Leased Space shall be delivered by Lessee to Lessor at the end of the Lease, or the end of Lessee's use, in the condition which Lessor can expect from a well-maintained property of the type to which the Lease agreement relates, without defects, unless otherwise agreed in writing, and with the exception of normal wear and tear and ageing.

10.1.3 If the condition of the Leased Space at the commencement of the Lease is argued it will be assumed that Lessee received the Leased Space in good condition and without defects.

10.1.4 The Leased Space will furthermore be returned to Lessor completely vacated, free of use and rights of use, properly cleaned and with all keys, key cards and the like pertaining thereto. Lessee is required to remove all items it has affixed in or on the Leased Space or which were assumed by Lessee from the previous Lessee or user at his own expense. Lessor is not required to compensate Lessee for items which were not removed. Items which were not removed may be removed at Lessee's expense. The provisions of 6.11.2.6 and 6.11.2.7 apply.

10.2 If Lessee terminates his use of the Leased Space prematurely, Lessor is entitled to obtain access to and take possession of the Leased Space at Lessee's expense. In that case Lessee does not have any right to damages.

10.3 All items apparently abandoned by Lessee by leaving them behind in the Leased Space at the time of actually leaving the Leased Space may be removed by Lessor at Lessor's own discretion, without any liability on Lessor's part, at Lessee's expense. Lessor at its own discretion is entitled to immediately and at Lessee's expense have these items destroyed, or appropriated and, if desired, to sell them and retain the proceeds of sale, unless Lessor is aware that the successive Lessee will assume or has assumed the items. If the successive Lessee has assumed items, Lessee is required to draft a description, jointly with the successive Lessee, of any items being assumed by the successive Lessee. This description, initialed by Lessee and the successive Lessee, shall be provided to Lessor immediately after it is drafted.

10.4 Lessee is under no circumstance entitled to leave behind any items in the Leased Space after the end of the Lease agreement while awaiting a response whether a successive Lessee wishes to assume items, unless Lessor and Lessee agreed otherwise in writing. If Lessee does not comply with this, Lessor is entitled to, at its own discretion, have these items immediately destroyed at Lessee's expense, or to appropriate and, if desired, sell these items and retain the proceeds of sale.

10.5 The Leased Space must be inspected by parties jointly, timely before the end of the Lease agreement or the end of use. A report of this inspection shall be prepared by parties, which shall contain the findings with respect to the condition of the Leased Space. This report shall also record which work with respect to repairs that became evident in said inspection and overdue maintenance costs still have to be performed at costs of Lessee, as well as the manner in which that work will have to be performed. The inspection of the Leased Space and the drafting and signing of the inspection report takes place by parties or by their appointed representatives. Parties may not challenge the authority of such representatives after the event.

10.6 If Lessee does not cooperate with the inspection and/or the recording of the findings and agreements in the inspection report within a reasonable term, after having had a sound opportunity to do so, Lessor is entitled to carry out the inspection without Lessee's attendance and to determine the report as being binding for both parties. Lessor shall immediately give Lessee a copy of this report.

10.7 Lessee is required to perform the work or have the work performed within the term set in the inspection report --or to be agreed upon between parties- to Lessor's satisfaction. If Lessee, also after having received a notice of default, in full or in part fails to comply with his obligations following from the inspection report, Lessor is entitled to have the work performed and recover the associated costs from Lessee.

10.8 Lessee is liable to pay a sum to Lessor for the time involved with the repair of the Leased Space from the day on which the Lease agreement ends, calculated on the basis of the most current rent and charges for additional supplies and services, without prejudice to Lessor's claim for payment of further damages and costs.

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Damages and Liability

11.1 Lessee shall timely take appropriate steps to prevent and limit damage to the Leased Space such as damage resulting from short circuits, fire, leakage, storm, frost or any other weather conditions, influx and outflow of gases or liquids. Lessee shall inform Lessor immediately if such damage or event as referred to in 11.6 occurs or threatens to occur.

11.2 If Lessee has the opportunity to do so, the previous provision also applies to the building or complex to which the Leased Space belongs.

11.3 Lessee is liable toward Lessor for all damages and losses to the Leased Space, unless Lessee shows that he, people whom he permitted access to the Leased Space, his staff and individuals for whom Lessee is liable, are not to blame in this respect or that the negligence is not attributable to him, all without prejudice to the provisions of 13.1, 13.4, and 13.5 pertaining to Lessee's maintenance, repair and renewal obligations.

11.4 Lessee indemnifies Lessor against any fines imposed on Lessor due to Lessee's actions or negligence.

11.5 Lessor is not liable for the consequences of defects which were not or should not have been known to Lessor at the commencement of the Lease.

11.6 Lessor is not liable for any damage to Lessee or his goods, and Lessee is not entitled to reduction of the rent, compensation or deferment of any payment obligation or termination of the Lease agreement in the event of an impaired quiet enjoyment of the land as a result of defects, including those stemming from visible and hidden defects of the Leased Space or the building or complex to which the Leased Space belongs, weather conditions, blocked access of the Leased Space, vacant property elsewhere, discontinuation of the supply of gas, water, electricity, heating, ventilation or air treatment, failure of systems and equipment, influx and outflow of gases or liquids, fire, explosion, or the inadequate provision of supplies and services. Lessor is also not liable for damages to the person or goods of third parties that are present in the Leased Space, and Lessee indemnifies Lessor against any such third party claims.

11.7 Lessee is liable for damages resulting from changes and improvements to the Leased Space made by or on behalf of Lessee's. Lessee indemnifies Lessor against claims of third parties for damages caused by changes and improvements made by Lessee.

11.8 Lessor is not liable for Lessee's loss due to business interruption or for damages resulting from activities by other Lessees, or from obstructed use of the Leased Space caused by third parties, or for defects which arose because Lessee did not fulfill his maintenance obligations.

11.9 The provisions of 11.6 and 11.8 with respect to business interruption do not apply in the event of damages resulting from gross negligence or serious misconduct by Lessor with respect to the condition of the Leased Space or the building or complex to which the Leased Space belongs. The provisions of 11.6 and 11.8 with respect to business interruption do not apply if the damage results from a defect in the Leased Space which was known or should have been known to Lessor at the commencement of the Lease; unless it concerns defects which were known or could have been known to Lessee through its inspection as referred to in 4. Among parties such defect will in that case not be considered a defect.

Bank guarantee

12.1 At the execution of the Lease agreement Lessee shall provide Lessor with a bank guarantee to secure fulfillment of Lessee's obligations under the Lease agreement, the type of which will be determined by Lessor, for the amount specified in the Lease agreement and specific to Lessee's payment obligations toward Lessor. This bank guarantee shall apply to any extension of the Lease agreement, including any amendments thereto, and shall remain valid for at least six months after the date on which the Leased Space is effectively vacated and the Lease agreement is terminated. This bank guarantee furthermore shall be valid with respect to any of Lessor's successor(s).

12.2 Lessee is not entitled to compensate any sum with the bank guarantee.

12.3 In the event the bank guarantee is invoked Lessee shall, upon Lessor's first request, immediately ensure that a new bank guarantee is issued for the full amount, with due observance of 12.1 and 12.4.

12.4 After an upward adjustment to the rent, charges for supplies and services or the advance therefore, and of the applicable VAT, Lessee shall, at Lessor's first request, immediately issue a new bank guarantee for the amount adjusted to the new payment obligations.

12.5 Prior to the start of each new lease period under an extension of the Lease agreement, Lessee will at Lessor's first request immediately arrange a new bank guarantee for the amount adjusted to the new payment obligations.

12.6 If Lessee does not comply with the obligations described in this section, Lessee shall incur a fine, payable on demand to Lessor, of €250.00 per violation for every calendar day that Lessee remains in breach after Lessee has been notified of such breach by registered letter.

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Maintenance, repair and replacements, surveys and inspections

13.1 Lessor is responsible for the costs of maintenance, repair and renewal activities to the Leased Space as specified in 13.3 below. Lessee is responsible for all other maintenance, repair and renewal activities, including the costs of inspections and surveys of the Leased Space. If the Leased Space is part of a building or complex, the above-mentioned also applies to the costs of said activities for the benefit of the building or complex to which the Leased Space belongs, such as work on common installations, spaces and other common facilities.

13.2 Unless otherwise agreed between the parties, the activities referred to in 13.3 and 13.4 will be performed by or on the instructions of the party who bears those costs. The parties will timely perform said activities or have this performed.

13.3 Lessor is responsible for the costs of:

a. maintenance, repair and renewal of structural sections of the Leased Space, such as foundations, columns, beams, construction floors, roofs, flat roof sections, construction walls and facades;

b. maintenance, repair and renewal of stairs, steps, sewer system, drains, external window sills of the Leased Space. The above notwithstanding, the provisions in 13.4, sub k, remain fully applicable to sewage pipes;

c. replacement of components and renewal of installations belonging to the Leased Space;

d. external paintwork.

The costs of the activities referred to in a. through d. shall be borne by Lessor, unless the activities shall be regarded as minor repairs, including minor and daily maintenance as defined by law or activities with respect to items which were not applied in, to or on the Leased Space by or on behalf of Lessor.

13.4 As a clarification of or in either deviation of or supplemental to 13.1, Lessee is responsible for:

a. external maintenance if and insofar it relates to activities which shall be considered minor repairs, including minor and daily maintenance as defined by law, as well as internal maintenance other than maintenance as meant in 13.3, all without prejudice to the following provisions;

b. maintenance, repair and renewal of door and window fittings, glazing and glass doors, mirrored and other windows;

c. maintenance and repair of roll-down shutters, venetian blinds, canopies and other awnings;

d. maintenance, repair and renewal of switches, sockets, telephone systems, lamps, lighting (including fittings), batteries, floor coverings, soft furnishings, internal paintwork, sinks, kitchen equipment and sanitary;

e. maintenance, repair and renewal of pipes and shutters for gas, water and electricity, fire-, burglary- and theft-prevention equipment and everything pertaining thereto;

f. maintenance, repair and renewal of boundary partitions, garden and yard, including pavement;

g. periodic and proper maintenance, as well as periodic inspections and administration of all technical systems belonging to the Leased Space, including the replacement of small components. These activities may only be carried out by contractors approved by Lessor;

h. (periodic as well as incidental) surveys and inspections, pertaining to the reliability and safety or verification of the correct functioning of the installations (technical or otherwise) belonging to the Leased Space or the Leased Space' appurtenances, whether or not required by the government and other reasonably deemed necessary; said surveys and inspections shall be carried out at Lessor's instructions; with regard to costs involved 16.3 through 16.8 applies to the extent possible.

i. maintenance, repair and renewal of items applied by or on behalf of Lessee, irrespective of whether these items are or will be applied under a provisional bookkeeping account made available by Lessor to Lessee;

j. ensure that the Leased Space is cleaned and keeping it clean, both internally and externally, including keeping the windows, roll-down shutters, venetian blinds, canopies and other awnings, the outside window frames and facades of the Leased Space clean, and the removal of any graffiti on the Leased Space.

k. ensure that grease-traps are emptied, cleaning and unblocking drains, gutters and all waste and sewage pipes up to the municipal sewer for the Leased Space, chimney sweeping, and cleaning out ventilation ducts.

13.5 Lessee is liable for maintaining, repairing and renewing any alterations and improvements affixed to the Leased Space by or on behalf of Lessee.

13.6 If Lessee fails to take care of the maintenance, repair or renewal, after receiving a notice, or if it is Lessor's opinion that this work has been carried out improperly or poorly, Lessor is entitled to have the maintenance, repair or renewal performed at Lessee's cost and risk.

If the work which falls under Lessee's responsibility cannot be postponed, Lessor is entitled to immediately perform or have this performed, at Lessee's expense.

13.7 Lessor shall consult with Lessee in advance, the way in which maintenance, repair and renewal which falls under Lessor's responsibility can be carried out, taking Lessee's interests into consideration as much as possible. If this work is performed at Lessee's request outside of normal working hours, Lessee will bear the extra costs involved.

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13.8 Lessee is responsible for the correct and skillful use of the technical installations in the Leased Space. Lessee is also responsible for any maintenance of those installations carried out by him or on his instructions. The fact that maintenance was performed by a company approved by Lessor shall not release Lessee from this responsibility.

13.9 Lessee shall immediately notify Lessor in writing, of any defects in the Leased Space. In said notice Lessee gives Lessor a reasonable time to start to remedy the defect which falls under the responsibility of Lessor. A reasonable time in this regard is at least six weeks, except in the case of a calamity.

13.10 If Lessor and Lessee agreed that the maintenance, repair and renewal work in, to or on the Leased Space or the building or the complex to which the Leased Space belongs, as specified in 13.1, 13.4 and 13.5, which are the responsibility of Lessee, shall be performed on Lessor's instead of Lessee's instructions, the costs involved will be charged by Lessor to Lessee. In some cases Lessor will enter into service contracts for this.

Adjustments by or on behalf of Lessor

14.1 Lessor is permitted to perform work or an inspection in, to or on the Leased Space or the building or complex to which the Leased Space belongs or to adjacencies, or have this work or these inspections performed, in the context of maintenance, repair and renewal. This includes adding additional facilities and changes or work required in connection with (environmental) requirements or measures imposed by the government, utility companies or other competent authorities.

14.2 If Lessor wants to renovate the Leased Space, he shall make a proposal for renovation to Lessee. A proposal for renovation by Lessee is presumed reasonable if it is supported by at least 51% of the Lessees whose Leased Space are involved in the renovations and these Lessees jointly rent at least 70% of the rentable floor area in m2, including vacant property, of the building or complex to which the Leased Space belongs which is involved in the renovation. For the purpose of calculating the percentage, Lessor will be classified as the Lessee of the rentable floor area in m2 which is not leased.

14.3 Renovation includes (partial) demolition, replacement construction, improvements to and alterations of the Leased Space or the building or complex to which the Leased Space belongs.

14.4 The provisions of Article 220, sub 1, 2, and 3, Book 7 of the Dutch Civil Code do not apply. Renovation and maintenance work to the Leased Space or the building or complex to which the Leased Space belongs shall not constitute a defect as far as Lessee is concerned. Lessee shall accept maintenance and renovations work to the Leased Space or the building or complex to which the Leased Space belongs and will provide Lessor with the opportunity to carry out such work, which does not give Lessee the right to reduce the rent or any other payment obligation, partial or full termination of the Lease agreement and/or to damages.

14.5 Lessor is permitted to alter the appearance and design of those parts of the Leased Space to which Lessee does not have exclusive rights of use, such as common spaces, elevators, escalators, stairs, stairwells, hallways, access points, and/or other appurtenances and to move, replace or eliminate these parts of the Leased Space.

Lessor access

15.1 If Lessor wishes to carry out or have carried out a tax assessment of the Leased Space or wants to perform work or have work performed in, to or on the Leased Space, Lessee is required to provide Lessor, or those persons who are seeking access on Lessor's behalf, access to enable such work to be carried out.

15.2 In order to carry out the work referred to in 15.1, Lessor and/or any person appointed by Lessor are entitled to enter the Leased Space after consultation with Lessee between 7 AM and 5:30 PM on working days. In cases of emergencies, Lessor is entitled to enter the Leased Space without consultation and if necessary beyond the foresaid times.

15.3 In the event of a proposed lease, sale or auction of the Leased Space, and during one year before the end of the Lease, Lessee shall, for at least two working days per week and without any reimbursement, upon prior notification from Lessor or his representative, allow the opportunity for viewing the Leased Space. Lessee will allow the usual "For Lease" or "For Sale" signs or posters to be posted on or around the Leased Space.

Costs of supplies and services

16.1 In addition to the rent, Lessee will bear the costs of supply, transportation, metering and usage of water and energy for the Leased Space, including the costs of entering into the relevant contracts and meter rental, and any other costs and fines charged by the utility companies. Lessee shall enter into supply contracts with the relevant organizations, unless the Leased Space has no separate connection and/or Lessor arranges this as part of the agreed upon supplies and services.

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16.2 If parties did not agree for the supply of additional supplies and deliveries, Lessee will arrange for these at its own cost and risk, to Lessor's satisfaction. In that case Lessee will enter into service contracts, subject to Lessor's prior consent, with respect to the installations within the Leased Space.

16.3 If parties did agree that Lessor will provide additional supplies and deliveries, Lessor will set the fee due by Lessee on the basis of the costs for providing these supplies and services and related administrative activities. Insofar as the Leased Space is part of a building or complex and the supplies and services also relate to other parts thereof, Lessor determines the reasonable share of the costs due by Lessee for those supplies and services. Lessor is not required to take into account the fact that Lessee may not use one or more of these supplies and services. If one or more parts of the building or complex are not in use, Lessor ensures with the determination of Lessee's share that this share will not be higher than it would have been in case of full use of the building or complex.

16.4 Lessor provides Lessee each year with a detailed statement of the costs of the supplies and services, with a specification of the calculation method and, insofar as applicable, Lessee's share of those costs.

16.5 After the end of the lease a statement will be provided for the period not yet accounted for. This final statement will be provided no later than 14 months from the moment that the previous statement was provided. Neither Lessor nor Lessee will claim a premature settlement.

16.6 The amount paid too little by Lessee or the amount received too much by Lessor according to the statement, taking advance payments into account, will be settled within one month after providing the statement. There is no suspension of this payment obligation in case the correctness of the statement is challenged.

16.7 Lessor is entitled to change or terminate the nature and scope of the supplies and services after consultation with Lessee.

16.8 Lessor is entitled to adjust the advance payment due by Lessee for supplies and services in the interim to reflect the anticipated costs, including in the circumstances mentioned in 16.7.

16.9 In the event that the supply of gas, electricity, heat and/or (hot) water is included in the supplies and services to be delivered by Lessor, Lessor may, after consultation with Lessee, adjust the method to determine this usage and therewith related Lessee's share in the costs of usage.

16.10 If the usage of gas, electricity, heat and/or (hot) water is determined on the basis of metering equipment and a dispute arises over Lessee's share of the usage costs because of non-functioning or incorrect functioning of these meters, Lessee's share will be determined by a company, hired by Lessor, which specializes in the measuring and determination of gas, electricity, heat and/or (hot) water consumption. This also applies in the case of damage, destruction or fraud in relation to the meters, without prejudice to all other rights Lessor has against Lessee in such case, such as the right to repair or renew the meters and payment of suffered damages.

16.11 Lessor is not liable for any damage resulting from the non-functioning or the improper supply of the aforementioned supplies and deliveries, except in the case of gross negligence or serious misconduct. In those cases Lessee is also not entitled to a reduction of rent and/or settlement of any payment obligation.

Costs, default

17.1 In all cases where Lessor issues a summons, notice of default or bailiff's writ to Lessee, or in the event of proceedings against Lessee to enjoin performance of the Lease agreement or to enforce vacating the premises, Lessee shall pay all costs incurred thereto by Lessor, both judicial and extra-judicial, with the exception of the costs of the proceedings for which Lessor is responsible under a final judgment.

The costs incurred will be established in advance between parties at an amount no lower than the normal tariff used by bailiffs.

17.2 Lessee is in default by the mere expiry of a time limit.

Payments

18.1 Payment of the rent and all other amounts owed under this Lease agreement will be made in legal Dutch tender no later than the due date by payment on or transfer to a bank account indicated by Lessor, without stay, discount, deduction, or settlement with any claim Lessee has or believes it has against Lessor. This is without prejudice to Lessee's right to remedy any defects himself and to deduct the reasonable costs thereof from the rent if Lessor is in default with the remedy of those defects. Lessor may change the place or method of payment and Lessee shall be notified of any such changes in writing. Lessor is entitled to determine to which outstanding claims under the Lease agreement the payments made by Lessee apply, unless Lessee specifically indicates otherwise when it makes the payment. In this last case, the provisions of Article 50, Book 6 of the Dutch Civil Code do not apply.

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18.2 Each time when an amount due by Lessee under this Lease agreement is not paid promptly to Lessor on the due date, Lessee will, by law, forfeits to Lessor a fine, payable on demand, of 2% of the amount due per calendar month calculated from the date when the amount became due, each part of a month counting as a full month, with a minimum of € 300.00 per month.

Taxes, charges, levies, premiums

VAT

19.1 If it has been agreed that VAT will be charged over the rent, Lessee and Lessor hereby expressly state that the determination of the rent is based on the assumption that Lessee will use or cause to use the Leased Space continuously for a minimum percentage established or to be established by law for performance that entitles deduction of VAT, in a manner that allows for opting for a lease subject to VAT.

19.2 Lessor and Lessee choose to waive a joint request opting for a VAT-taxed lease, with reference to Communication 45, Decree of March 24, 1999, number VB 99/571 and suffice with a statement completed and signed by Lessee, which forms an integral part of the current Lease agreement.

19.3 a If Lessee does not use or no longer uses or causes to be used the Leased Space for performances which entitles deduction of VAT and as a result thereof the exception on the exemption to deduct VAT over the rent is terminated, Lessee is no longer due VAT over the rent to Lessor or his successor(s); however Lessee is due, in addition to the rent in lieu of VAT a separate amount such that Lessor or his successor(s) are fully compensated for:

	I.	The VAT on the operating costs of the Leased Space or investments therein which are no longer deductible by Lessor or his successor(s) as a result of the termination of the option;

	II.	The VAT which Lessor or his successor(s) will be due to the tax authorities as a result of the termination of the option resulting from an adjustment as referred to in Article 15 sub 4 of the Turnover Tax Act 1968 or a review as referred to in the Articles 11 through 13 of the Turnover Tax Implementation Order 1968;

	III.	All other damages suffered by Lessor or his successor(s) as a result of the end of the option.

19.3 b The financial disadvantage suffered by Lessor or his successor(s) as a result of the termination of the option will be paid by Lessee to Lessor, or his successor(s) together with the periodic rent payments and, with the exception of damage as referred to in 19.3a sub I, shall be evenly distributed over the remaining duration of the current lease period, if possible by means of an annuity, but is payable on demand, in full and in one sum, if the Lease agreement is terminated in the meantime for any reason.

19.4 The provision of 19.3a, sub II does not apply if the review period for deductions of VAT with respect to the Leased Space has expired when the current Lease agreement is entered into.

19.5 If a situation occurs as referred to in 19.3a, Lessor or his successor(s) will inform Lessee which amounts Lessor, or his successor(s), will have to pay to the tax authorities. Lessor or his successor(s) will also detail the other damages as referred to in 19.3a sub III. Lessor or his successor(s) will cooperate if Lessee wants an independent registered accountant to check the statement of Lessor or his successor(s). The costs of this will be borne by Lessee.

19.6 If in any financial year the Leased Space is not used sufficiently for the purposes referred to in 19.1, Lessee shall inform Lessor or his legal successor(s) of this, within four weeks after the end of the financial year in question, by means of a declaration, signed by Lessee. Lessee shall send a copy of this declaration to the VAT Inspector within the same period.

19.7 If Lessee fails to comply with the information obligation as referred to in 19.6, and/or fails to comply with the obligation to use the Leased Space as referred to in 19.9, or if it turns out in retrospect that Lessee used incorrect assumptions and Lessor or his successor(s) incorrectly charged VAT on the rent, Lessee is in default and Lessor or his successor(s) are entitled to recover financial damages resulting from this. Such damages include the full amount of the VAT due by Lessor or his successor(s) to the tax authorities, increased with interest, any increases and further costs and damages. This Section provides for a compensation scheme in the event that the option is terminated retroactively, in addition to the provision of 19.3a. The additional damage suffered by Lessor or his successor(s) as a result of the retroactive effect is payable on demand, in full and in one sum from Lessee. Lessor or his successor(s) will cooperate if Lessee requests verification by an independent registered accountant of these additional damages by Lessor or his successor(s). The costs thereof shall be borne by Lessee.

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19.8 The provisions of 19.3a, 19.3b, 19.5 and 19.7 also apply if Lessor or his successor(s) faces damages after (interim) termination of the Lease agreement, resulting from termination of the option applicable to both parties. These damages are payable on demand, in full and in one sum, due to Lessor or his successor(s).

19.9 Without prejudice to any other provisions of this Lease agreement, Lessee shall in any event use or cause to be used the Leased Space with the right of option, before the end of the financial year following the financial year in which Lessee has commenced to lease the Leased Space.

Other taxes, charges, levies, premiums, etcetera

20.1 The following is payable by Lessee, even if Lessor is assessed for this:

a. the municipal property tax in relation to the actual use of the Leased Space and the actual shared use of service spaces, general spaces and so-called common spaces;

b. environmental levies, including surface water pollution tax, water treatment charge, and all other environmental protection charges;

c. betterment levy, or related taxes or levies, in whole proportionate, if and to the extent Lessee benefits from the underlying purpose of the assessment or levy;

d. sewage tax;

e. other existing or future taxes, including taxes levied for facilities in public areas such as flag and advertising taxes, municipal tax on encroachments in, on or above public land, charges, levies and fees:

	-	in relation to the actual use of the Leased Space;

	-	in relation to Lessee's goods;

	-	which would not or partially have been levied or imposed charged, if the use of the Leased Space would not have been provided to Lessee.

20.2 If the charges, levies or taxes due by Lessee are collected from Lessor, Lessee shall pay these at Lessor's first request.

20.3 If the nature or the operation of Lessee's profession or business in the Leased Space, building or complex to which the Leased Space belongs, results in a higher than normal fire insurance premium for the building and contents for Lessor or other Lessees, Lessee shall pay the amount above the normal premium to Lessor or these other Lessees. Lessor and other Lessees are free to choose the insurance company, the method to determine the insured value, and assessing the reasonableness of the premium due. "Normal premium" includes the premium which Lessor or Lessee can negotiate with a well-known and respected insurance carrier for the insurance of the Leased Space, and its contents against the risk of fire, at the time directly preceding the execution of this Lease, without having to consider the nature or the operation of Lessee's profession or business in the Leased Space and, for the duration of the Lease agreement, any adjustment of such premium that is not the result of a change of the nature or the scope of the insured risk.

Several and joint liability

21.1 If several (natural or legal) persons have contractually bound as Lessee, these will always be jointly and severally liable toward Lessor for the entirety of all obligations arising under the Lease agreement. Deferment of payment or release by Lessor granted to one of the Lessees or an offer to do so, shall affect only that Lessee.

21.2 The obligations under the Lease agreement are joint and several, also with respect to heirs and other assignees of Lessee.

Late availability

22.1 If the Leased Space is not available on the agreed effective date of the Lease, because the Leased Space was not ready on time, the previous user did not vacate the Leased Space on time, or if Lessor did not yet receive permits from the authorities, Lessee does not owe rent or fees for supplies and services until the date when the Leased Space is available for Lessee. All other obligations and agreed terms will be deferred accordingly. The rent indexation date remains unaltered.

22.2 Lessor is not liable for any damages incurred by Lessee because of any such delays, unless there is serious fault or gross negligence by Lessor.

[initials]

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22.3 Lessee is not entitled to claim termination, unless the delayed delivery is caused by gross negligence or serious misconduct by Lessor and such delay results in circumstances which are such that in all reasonability unaltered maintenance of the Lease agreement cannot be required of Lessee.

Personal Data Protection Act

23. If Lessee is a natural person, Lessee gives permission to Lessor and the Property Manager to record and process his/her personal details in a database, by signing this Lease agreement.

Address service

24.1 From the effective date of the Lease, all notices by Lessor to Lessee in connection with the performance of this Lease agreement shall be sent to the address of the Leased Space.

24.2 Lessee is required to immediately notify Lessor if Lessee no longer operates its business in the Leased Space. Such notice will include Lessee's new domicile.

24.3 If Lessee leaves the Leased Space without notifying Lessor of its new domicile, Lessee's domicile will continue to be the address of the Leased Space.

Complaints

25. Lessee will submit any complaints and requests in writing. This may be done verbally in urgent cases. In such cases Lessee will confirm the complaint or request in writing as quickly as possible.

Property Manager

26. If a property manager is appointed by Lessor, Lessee shall consult the property manager on all matters pertaining to the Lease agreement.

Final provision

27. If part of the Lease agreement or these General Conditions are void or annullable this will not affect the validity of the remaining provisions of the Lease agreement or these General Conditions.

In such a case the void or annullable provision(s) shall be substituted, in accordance with the provisions of Article 42, book 3 of the Dutch Civil Code, by provisions as close as legally permissible to what parties would have agreed if they had been aware of the invalidity or nullity.

[initials]

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Exhibit 10.129

WORLD FINANCIAL NETWORK CREDIT CARD MASTER NOTE TRUST

 

Issuer

 

And

 

UNION BANK, N.A.

 

Indenture Trustee

FOURTH AMENDED AND RESTATED

 SERIES 2009-VFN INDENTURE SUPPLEMENT

 

Dated as of February 28, 2014

FOURTH AMENDED AND RESTATED SERIES 2009-VFN INDENTURE SUPPLEMENT, dated as of February 28, 2014 (the "Indenture Supplement"), between WORLD FINANCIAL NETWORK CREDIT CARD MASTER NOTE TRUST, a trust organized and existing under the laws of the State of Delaware (herein, the "Issuer" or the "Trust"), and UNION BANK, N.A. (successor to The Bank of New York Mellon Trust Company N.A., formerly known as The Bank of New York Trust Company, N.A. and as successor to BNY Midwest Trust Company), a national banking association, 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 (as amended from time to time, the "Indenture"), between the Issuer and the Indenture Trustee (the Indenture, together with this Indenture Supplement, the "Agreement").

WHEREAS, the parties hereto are party to the Third Amended and Restated Series 2009-VFN Indenture Supplement, dated as of June 13, 2012 (the "Existing Indenture Supplement").

NOW THEREFORE, in consideration of the mutual agreements contained herein, the Existing Indenture Supplement is hereby amended and restated in its entirety as follows and each party agrees as follows for the benefit of the other party and the Series 2009-VFN  Noteholders:

Pursuant to Section 2.11 of the Indenture, the Transferor may direct the Issuer to issue one or more Series of Notes.  The Principal Terms of this Series are set forth in this Indenture Supplement to the Indenture.

ARTICLE I.

Creation of the Series 2009-VFN Notes

Section 1.1  Designation.

(a) Pursuant to the Indenture and the Existing Indenture Supplement, a Series of Notes was issued known as "World Financial Network Credit Card Master Note Trust, Series 2009-VFN" or the "Series 2009-VFN Notes."  The Series 2009-VFN Notes were issued in four Classes, known as the "Class A Series 2009-VFN Floating Rate Asset Backed Notes", the "Class M Series 2009-VFN Asset Backed Notes", the "Class B Series 2009-VFN Asset Backed Notes", and the "Class C Series 2009-VFN Asset Backed Notes".  The Series 2009-VFN Notes shall be Variable Interests.

(b)  The Class A Notes may from time to time be divided into separate ownership tranches (each a "Class A Ownership Tranche") which shall be identical in all respects, except for their respective Class A Maximum Principal Balances, Class A Principal Balances and certain matters relating to the rate and payment of interest.  The initial allocation of Class A Notes among Class A Ownership Tranches shall be made, and reallocations among such Class A Ownership Tranches or new Class A Ownership Tranches may be made, as provided in Section 4.1 of this Indenture Supplement and the Class A Note Purchase Agreement.

(c)  Series 2009-VFN shall be included in Group One and shall be a Principal Sharing Series.  Series 2009-VFN shall be an Excess Allocation Series with respect to Group One only.  Series 2009-VFN shall not be subordinated to any other Series.

ARTICLE II.

Definitions

Section 2.1  Definitions.

(a)  Whenever used in this Indenture 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 Amounts" means, for any date of determination, the sum of (x) the Class A Additional Amounts, (y) the Class M Additional Amounts and (z) the Class B Additional Amounts.

"Additional Minimum Transferor Amount" means (a) as of any date of determination falling in November, December and January of each calendar year, the product of (i) 2% and (ii) the sum of (A) the Aggregate Principal Receivables and (B) if such date of determination occurs prior to the Certificate Trust Termination Date, the amount on deposit in the Excess Funding Account and (b) as of any date of determination falling in any other month, zero; provided that the amount specified in clause (a) shall be without duplication with the amount specified as the "Additional Minimum Transferor Amount" in any future supplement to the Pooling and Servicing Agreement that specifies such an amount and indicates that such amount is without duplication of the amount specified in clause (a) and in the Indenture Supplements relating to the Series outstanding on the Fourth Amendment Date (or in any future Indenture Supplement that specifies such an amount and indicates that such amount is without duplication of the amount specified in clause (a)).  The Additional Minimum Transferor Amount is specified pursuant to Section 9.7 of this Indenture Supplement as an additional amount to be considered part of the Minimum Transferor Amount.

"Aggregate Investor Default Amount" means, as to any Monthly Period, the sum of the Investor Default Amounts in respect of such Monthly Period.

"Allocation Percentage" means, with respect to any Monthly Period, the percentage equivalent of a fraction:

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

(i)  for Principal Collections during the Revolving Period and for Finance Charge Collections and Default Amounts at any time, the Collateral Amount at the end of the last day of the prior Monthly Period (or, in the case of the Monthly Period in which the Closing Date occurs, on the Closing Date), less any reductions to be made to the Collateral Amount on account of principal payments to be made on the Distribution Date falling in the Monthly Period for which the

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Allocation Percentage is being calculated; provided, however, that with respect to any Monthly Period in which a Reset Date occurs as a result of a Class A Incremental Funding, Class M Incremental Funding, Class B Incremental Funding, Class C Incremental Funding or the issuance of a new Series, the numerator determined pursuant to this clause (i) shall be (A) the Collateral Amount as of the close of business on the later of the last day of the prior Monthly Period or the preceding Reset Date, in each case less any reductions to be made to the Collateral Amount on account of principal payments to be made on the Distribution Date falling in the Monthly Period for which the Allocation Percentage is being calculated (to the extent not already subtracted in determining the Collateral Amount), for the period from and including the first day of the current Monthly Period or the preceding Reset Date, as applicable, to but excluding such Reset Date and (B) the Collateral Amount as of the close of business on such Reset Date, less any reductions to be made to the Collateral Amount on account of principal payments to be made on the Distribution Date falling in the Monthly Period for which the Allocation Percentage is being calculated (to the extent not already subtracted in determining the Collateral Amount), for the period from and including such Reset Date to the earlier of the last day of such Monthly Period (in which case such period shall include such day) or the next succeeding Reset Date (in which case such period shall not include such succeeding Reset Date); or

(ii)  for Principal Collections during the Early Amortization Period and the Controlled Amortization Period, the Collateral Amount at the end of the last day of the Revolving Period, provided, however, that during the Controlled Amortization Period the Transferor may, by written notice to the Indenture Trustee, the Servicer and the Rating Agencies, reduce the numerator used for purposes of allocating Principal Collections to Series 2009-VFN at any time if (x) the Rating Agency Condition shall have been satisfied with respect to such reduction and (y) the Transferor shall have delivered to the Indenture Trustee an Officer's Certificate to the effect, based on the facts known to such officer at that time, in the reasonable belief of the Transferor, such designation will not cause a Series 2009-VFN Early Amortization Event or an event that, after the giving of notice or the lapse of time, would cause a Series 2009-VFN Early Amortization Event to occur with respect to Series 2009-VFN; and

(b)  the denominator of which shall be the greater of (x) the Aggregate Principal Receivables determined as of the close of business on the last day of the prior Monthly Period and (y) the sum of the numerators used to calculate the allocation percentages for allocations with respect to Finance Charge Collections, Principal Collections or Default Amounts, as applicable, for all outstanding Series and all outstanding Series under (and as defined in) the Pooling and Servicing Agreement (other than any Series represented by the Collateral Certificate) on such date of determination provided, that if one or more Reset Dates occur in a Monthly Period, the Allocation Percentage for the portion of the Monthly Period falling on and after such Reset Date and prior to any subsequent Reset Date will be recalculated for such period as of the close of business on the subject Reset Date.

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"Available Finance Charge Collections" means, for any Monthly Period, an amount equal to the sum of (a) the Investor Finance Charge Collections for such Monthly Period, plus (b) the Excess Finance Charge Collections allocated to Series 2009-VFN for such Monthly Period.

"Available Principal Collections" means, for any Monthly Period, an amount equal to the sum of (a) the Investor Principal Collections for such Monthly Period, minus (b) the amount of Reallocated Principal Collections with respect to such Monthly Period which pursuant to Section 5.6 are required to be applied on the related Distribution Date, plus (c) any Shared Principal Collections with respect to other Principal Sharing Series (including any amounts on deposit in the Excess Funding Account that are allocated to Series 2009-VFN for application as Shared Principal Collections), plus (d) the aggregate amount to be treated as Available Principal Collections pursuant to clauses 5.4(a)(viii) and (ix) for the related Distribution Date.

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

"Base Rate" means, as to any Monthly Period, the annualized percentage equivalent of a fraction, the numerator of which is equal to the sum of the Monthly Interest, any Class A Non‐Use Fees paid pursuant to clause 5.4(a)(ii) and any Class A Rated Additional Amounts for the related Distribution Period, and the Noteholder Servicing Fee with respect to such Monthly Period, and the denominator of which is the Weighted Average Collateral Amount during such Monthly Period.

"Change in Control" means the failure of Holding to own, directly or indirectly, 100% of the outstanding shares of common stock (excluding directors' qualifying shares) of Comenity Bank.

 "Class A Additional Amounts" is defined in subsection 5.2(e).

"Class A Breakage Payment" is defined in subsection 5.2(f).

"Class A Fixed Period" is defined in subsection 5.2(a).

"Class A Funding Tranche" is defined in subsection 5.2(a).

"Class AIncremental Funding" means any increase in the Class A Principal Balance during the Revolving Period made pursuant to the Class A Note Purchase Agreement.

"Class A Incremental Principal Balance" means the amount of the increase in the Class A Principal Balance occurring as a result of any Class A Incremental Funding, which amount shall equal the aggregate amount of the purchase prices paid by the Class A Noteholders pursuant to the Class A Note Purchase Agreement with respect to such Class A Incremental Funding.

"Class A Maximum Principal Balance" means the "Maximum Class A Principal Balance" (as defined in the Class A Note Purchase Agreement), as such amount may be

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increased or decreased from time to time pursuant to the Class A Note Purchase Agreement. As applied to any particular Class A Note, the "Class A Maximum Principal Balance" means the portion of the overall Class A Maximum Principal Balance represented by that Class A Note.

"Class A Monthly Interest" is defined in subsection 5.2(a).

"Class A Monthly Principal" is defined in subsection 5.3(a).

"Class A Non‐Use Fee" is defined in subsection 5.2(e).

"Class A Non-Use Fee Rate" means, with respect to any Class A Ownership Group, the rate specified as the Class A Non-Use Fee Rate in a fee letter between the Transferor and the Class A Noteholders in such Class A Ownership Group.

"Class A Note Purchase Agreement" means the Fourth Amended and Restated Note Purchase Agreement, dated as of the Fourth Amendment Date, among Transferor, Servicer and each of the initial Class A Noteholders, as supplemented by the various Fee Letters referred to (and defined) therein, and as the same may be amended or otherwise modified from time to time. The Class A Note Purchase Agreement is hereby designated a "Transaction Document" for all purposes of the Agreement and this Indenture Supplement.

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

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

"Class A Ownership Group" means an Ownership Group (as defined in the Class A Note Purchase Agreement).

"Class A Ownership Group Percentage" means the "Ownership Group Percentage" as defined in the Class A Note Purchase Agreement.

"Class A Ownership Tranche" is defined in subsection 1.1(b).

"Class A Principal Balance" means, on any Business Day, an amount equal to the result of (a) $  , plus (b) the aggregate amount of all Class A Incremental Principal Balances for all Class A Incremental Fundings occurring after the Fourth Amendment Date and on or prior to that Business Day, minus(c) the aggregate amount of principal payments made to Class A Noteholders after the Fourth Amendment Date and on or prior to such Business Day.  As applied to any particular Class A Note, the "Class A Principal Balance" means the portion of the overall Class A Principal Balance represented by that Class A Note. The Class A Principal Balance shall be allocated among the Class A Ownership Tranches as provided in the Class A Note Purchase Agreement.

"Class A Pro Rata Percentage" means   %.

"Class A Rated Additional Amounts" is defined in subsection 5.2(e).

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"Class A Required Amount" means, for any Distribution Date, an amount equal to the excess of the amounts described in clauses 5.4(a)(i), (ii) and (iii) over the Available Finance Charge Collections applied to pay such amount pursuant to subsection 5.4(a).

"Class A Scheduled Final Payment Date" means the Distribution Date falling in the twelfth month following the month in which the Controlled Amortization Period begins.

"Class A Tranche Rate" means, for any Distribution Period, the Note Rate (as defined in the Class A Note Purchase Agreement) for each Class A Ownership Tranche (or any related Class A Funding Tranche).

"Class A Unrated Additional Amounts" is defined in subsection 5.2(e).

"Class B Additional Amounts" is defined, if at all, in the applicable Class B Note Purchase Agreement.

"Class B Additional Interest" is defined in subsection 5.2(c).

"Class B Deficiency Amount" is defined in subsection 5.2(c).

"Class B Incremental Funding" means any increase in the Class B Principal Balance during the Revolving Period made pursuant to the applicable Class B Note Purchase Agreement.

"Class B Incremental Principal Balance" means the amount of the increase in the Class B Principal Balance occurring as a result of any Class B Incremental Funding, which amount shall equal the aggregate amount of the purchase prices paid by the Class B Noteholders pursuant to the Class B Note Purchase Agreement with respect to such Class B Incremental Funding.

"Class B Maximum Principal Balance" means the product of (a) a fraction, the numerator of which is the Class A Maximum Principal Balance and the denominator of which is the Class A Pro Rata Percentage and (b) the Class B Pro Rata Percentage, as such amount may be increased or decreased from time to time pursuant to the Class B Note Purchase Agreement. As applied to any particular Class B Note, the "Class B Maximum Principal Balance" means the portion of the overall Class B Maximum Principal Balance represented by that Class B Note.

"Class B Monthly Interest" is defined in subsection 5.2(c).

"Class B Monthly Principal" is defined in subsection 5.3(c).

"Class B Note Interest Rate" means 0.0%.

"Class B Note Purchase Agreement" means any of the Note Purchase Agreements, entered into among Comenity Bank, the Transferor and each party that purchases Class B Notes from the Transferor.

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

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"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‐3.

"Class B Principal Balance" means, on any Business Day, an amount equal to the result of (a) $  , plus (b) the aggregate amount of all Class B Incremental Principal Balances for all Class B Incremental Fundings occurring after the Fourth Amendment Date and on or prior to that Business Day, minus (c) the aggregate amount of principal payments made to Class B Noteholders after the Fourth Amendment Date and on or prior to such Business Day. As applied to any particular Class B Note, the "Class B Principal Balance" means the portion of the overall Class B Principal Balance represented by that Class B Note.

"Class B Pro Rata Percentage" means   %.

"Class B Required Amount" means, for any Distribution Date, an amount equal to the excess of the amount described in clause 5.4(a)(vi) over the Available Finance Charge Collections applied to pay such amount pursuant to subsection 5.4(a).

"Class C Additional Amounts" is defined, if at all, in the applicable Class C Note Purchase Agreement.

"Class C Additional Interest" is defined in subsection 5.2(d).

"Class C Deficiency Amount" is defined in subsection 5.2(d).

"Class CIncremental Funding" means any increase in the Class C Principal Balance during the Revolving Period made pursuant to the applicable Class C Note Purchase Agreement.

"Class C Incremental Principal Balance" means the amount of the increase in the Class C Principal Balance occurring as a result of any Class C Incremental Funding, which amount shall equal the aggregate amount of the purchase prices paid by the Class C Noteholders pursuant to the Class C Note Purchase Agreement with respect to such Class C Incremental Funding.

"Class C Maximum Principal Balance" means the product of (a) a fraction, the numerator of which is the Class A Maximum Principal Balance and the denominator of which is the Class A Pro Rata Percentage and (b) the Class C Pro Rata Percentage, as such amount may be increased or decreased from time to time pursuant to the Class C Note Purchase Agreement. As applied to any particular Class C Note, the "Class C Maximum Principal Balance" means the portion of the overall Class C Maximum Principal Balance represented by that Class C Note.

"Class C Monthly Interest" is defined in subsection 5.2(d).

"Class C Monthly Principal" is defined in subsection 5.3(d).

"Class C Note Interest Rate" means 0.0%.

"Class C Note Purchase Agreement" means any of the Note Purchase Agreements, entered into among Comenity Bank, the Transferor and each party that purchases Class C Notes from the Transferor.

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

"Class C Notes" means any one of the Notes executed by the Issuer and authenticated by or on behalf of the Indenture Trustee, substantially in the form of Exhibit A‐4.

"Class C Principal Balance" means, on any Business Day, an amount equal to the result of (a) $  , plus (b) the aggregate amount of all Class C Incremental Principal Balances for all Class C Incremental Fundings occurring after the Fourth Amendment Date and on or prior to that Business Day, minus (c) the aggregate amount of principal payments made to Class C Noteholders after the Fourth Amendment Date and on or prior to such Business Day. As applied to any particular Class C Note, the "Class C Principal Balance" means the portion of the overall Class C Principal Balance represented by that Class C Note.

"Class C Pro Rata Percentage" means   %.

"Class C Required Amount" means, for any Distribution Date, an amount equal to the excess of the amount described in clause 5.4(a)(vii) over the Available Finance Charge Collections applied to pay such amount pursuant to subsection 5.4(a).

"Class M Additional Amounts" is defined, if at all, in the applicable Class M Note Purchase Agreement.

"Class M Additional Interest" is defined in subsection 5.2(b).

"Class M Deficiency Amount" is defined in subsection 5.2(b).

"Class M Incremental Funding" means any increase in the Class M Principal Balance during the Revolving Period made pursuant to the applicable Class M Note Purchase Agreement.

"Class M Incremental Principal Balance" means the amount of the increase in the Class M Principal Balance occurring as a result of any Class M Incremental Funding, which amount shall equal the aggregate amount of the purchase prices paid by the Class M Noteholders pursuant to the Class M Note Purchase Agreement with respect to such Class M Incremental Funding.

"Class M Maximum Principal Balance" means the product of (a) a fraction, the numerator of which is the Class A Maximum Principal Balance and the denominator of which is the Class A Pro Rata Percentage and (b) the Class M Pro Rata Percentage, as such amount may be increased or decreased from time to time pursuant to the Class M Note Purchase Agreement. As applied to any particular Class M Note, the "Class M Maximum Principal Balance" means the portion of the overall Class M Maximum Principal Balance represented by that Class M Note.

"Class M Monthly Interest" is defined in subsection 5.2(b).

"Class M Monthly Principal" is defined in subsection 5.3(b).

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"Class M Note Interest Rate" means 0.00%.

"Class M Note Purchase Agreement" means the Second Amended and Restated Class M Note Purchase Agreement, entered into among Comenity Bank and the Transferor.

"Class M Noteholder" means the Person in whose name a Class M Note is registered in the Note Register.

"Class M Notes" means any one of the Notes executed by the Issuer and authenticated by or on behalf of the Indenture Trustee, substantially in the form of Exhibit A‐2.

"Class M Principal Balance" means, on any Business Day, an amount equal to the result of (a) $  , plus (b) the aggregate amount of all Class M Incremental Principal Balances for all Class M Incremental Fundings occurring after the Fourth Amendment Date and on or prior to that Business Day, minus (c) the aggregate amount of principal payments made to Class M Noteholders after the Fourth Amendment Date and on or prior to such Business Day. As applied to any particular Class M Note, the "Class M Principal Balance" means the portion of the overall Class M Principal Balance represented by that Class M Note.

"Class M Pro Rata Percentage" means   %.

"Class M Required Amount" means, for any Distribution Date, an amount equal to the excess of the amount described in clause 5.4(a)(v) over the Available Finance Charge Collections applied to pay such amount pursuant to subsection 5.4(a).

"Closing Date" means September 29, 2009.

"Collateral Amount" means, as of any date of determination, an amount equal to (a) the Note Principal Balance minus (b) the excess, if any, of the aggregate amount of Investor Charge-Offs and Reallocated Principal Collections over the reimbursement of such amounts pursuant to clause 5.4(a)(ix) prior to such date.

"Controlled Amortization Amount" means for any Transfer Date with respect to the Controlled Amortization Period prior to the payment in full of the Note Principal Balance, an amount equal to (a) the Note Principal Balance as of the close of business on the last day of the Revolving Period divided by (b) twelve.

"Controlled Amortization Date" means the first day of the first Monthly Period that occurs on or after the "Purchase Expiration Date" (as such term is defined in the Class A Note Purchase Agreement).

"Controlled Amortization Period" means, unless a Series 2009-VFN Early Amortization Event or a Trust Early Amortization Event shall have occurred prior thereto, the period commencing at the close of business on the first Controlled Amortization Date to occur (without being extended as provided in the applicable Note Purchase Agreement) and ending on the earlier to occur of (a) the commencement of the Early Amortization Period, and (b) the Series Termination Date, providedthat Transferor may, by written notice to the Indenture Trustee and the Lead Agent (and so long as the Early Amortization Period has not begun), cause the

9

Controlled Amortization Period to begin on any date earlier than the one otherwise specified above.

"Controlled Amortization Shortfall" initially means zero and thereafter means, with respect to any Monthly Period during the Controlled Amortization Period, the excess, if any, of the Controlled Payment Amount for the previous Monthly Period over the sum of the amount distributed pursuant to subsection 6.2(a) with respect to the Class A Notes for the previous Monthly Period, the amount distributed pursuant to subsection 6.2(b) with respect to the Class M Notes for the previous Monthly Period, the amount distributed pursuant to subsection 6.2(c) with respect to the Class B Notes for the previous Monthly Period and the amount distributed pursuant to subsection 6.2(d) with respect to the Class C Notes for the previous Monthly Period.

"Controlled Payment Amount" means, with respect to any Transfer Date, the sum of (a) the Controlled Amortization Amount for such Transfer Date and (b) any existing Controlled Amortization Shortfall.

"Day Count Fraction" means, as to any Class A Ownership Tranche (or Class A Funding Tranche), any Class M Note, any Class B Note or any Class C Note for any Distribution Period, a fraction (a) the numerator of which is the number of days in that Distribution Period (or, if less, the number of days during that Distribution Period during which that Class A Ownership Tranche, Class A Funding Tranche, Class M Note, Class B Note or Class C Note was outstanding, including the first, but excluding the last, such day) and (b) the denominator of which is the actual number of days in the related calendar year (or, if so specified in the related Note Purchase Agreement, 360).

"DBRS" means DBRS, Inc.

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

"Defaulted Account" means an Account in which there are Defaulted Receivables.

"Designated LIBOR Page" means Reuters Screen LIBOR01 page or such other page as may replace such page on that service or other service or services as may be nominated by the British Bankers' Association for the purpose of displaying London interbank offered rates of U.S. dollar deposits.

"Designated Maturity" means, for any LIBOR Determination Date, one month.

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

"Distribution Account" is defined in subsection 5.9(a).

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

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

"Early Amortization Period" means the period commencing on the date on which a Trust Early Amortization Event or a Series 2009-VFN Early Amortization Event is deemed to occur and ending on the Series Termination Date.

"Eligible Investments" is defined in Annex A to the Indenture; provided that in no event shall any Eligible Investment be an equity security or cause the Trust to have any voting rights in respect of such Eligible Investment.

"Excess Spread Percentage" means, for any Monthly Period, a percentage equal to the Portfolio Yield for such Monthly Period minus the Base Rate for such Monthly Period.

"Finance Charge Account" is defined in Section  5.9(a).

"Finance Charge Collections" means Collections of Finance Charge Receivables.

"Finance Charge Shortfall" is defined in Section 5.7.

"Fourth Amendment Date" means February 28, 2014.

"Group One" means, Series 2009-VFN, Series 2010-A, Series 2011-A, Series 2011-B, Series 2012-A, Series 2012-B, Series 2012-C, Series 2012-D, Series 2013-A, Series 2013-B, Series 2014-A, each Series under (and as defined in) the Pooling and Servicing Agreement (other than Series represented by the Collateral Certificate) hereafter specified in the related supplement to the Pooling and Servicing Agreement to be included in Group One and each other Series hereafter specified in the related Indenture Supplement to be included in Group One.

"Incremental Funding" means a Class A Incremental Funding, a Class M Incremental Funding, a Class B Incremental Funding or a Class C Incremental Funding.

"Investment Earnings" means, for any Distribution Date, all interest and earnings on Eligible Investments included in the Spread Account (net of losses and investment expenses) during the Monthly Period immediately preceding such Distribution Date.

"Investor Charge-Offs" is defined in Section 5.5.

"Investor Default Amount" means, with respect to any Defaulted Account, an amount equal to the product of (a) the Default Amount and (b) the Allocation Percentage on the day such Account became a Defaulted Account.

"Investor Finance Charge Collections" means, for any Monthly Period, an amount equal to the aggregate amount of Finance Charge Collections (including Net Recoveries treated as

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Finance Charge Collections) retained or deposited in the Finance Charge Account for Series 2009-VFN pursuant to clause 5.1(b)(i) for such Monthly Period.

"Investor Principal Collections" means, for any Monthly Period, an amount equal to the aggregate amount of Principal Collections retained or deposited in the Principal Account for Series 2009-VFN pursuant to clause 5.1(b)(ii) for such Monthly Period.

"Investor Uncovered Dilution Amount" means an amount equal to the product of (x) the Series Allocation Percentage for the related Monthly Period (determined on a weighted average basis, if one or more Reset Dates occur during that Monthly Period), times(y) the aggregate Dilutions occurring during that Monthly Period as to which any deposit is required to be made to the Excess Funding Account pursuant to subsection 3.9(a) of the Transfer and Servicing Agreement or subsection 3.9(a) of the Pooling and Servicing Agreement but has not been made, provided that, to the extent the Transferor Amount is greater than zero at the time the deposit referred to in clause (y) is required to be made, the Investor Uncovered Dilution Amount for such amount to be deposited shall be deemed to be zero.

"LIBOR" means, for any Distribution Period, an interest rate per annum for each Distribution Period determined by the Indenture Trustee in accordance with the provisions of Section 5.12.

"LIBOR Determination Date" means (i) September 27, 2009 for the period from and including the Closing Date through and including November 15, 2009 and (ii) the second London Business Day prior to the commencement of the second and each subsequent Distribution Period.

"London Business Day" means any day on which dealings in deposits in United States dollars are transacted in the London interbank market.

"Majority Noteholders" means for purposes of Section 7.1, (a) at any time that the Class A Notes are Outstanding, Holders of the Class A Notes representing more than 50% of the Class A Principal Balance and (b) at any time when Class A Notes are no longer Outstanding, Holdings of Series 2009-VFN Notes representing more than 50% of the Note Principal Balance.

"Mandatory Limited Amortization Amount" means, for any Transfer Date with respect to the Mandatory Limited Amortization Period (beginning with the Transfer Date in the Monthly Period following the Monthly Period in which the Mandatory Limited Amortization Period begins) and the Transfer Date in the Monthly Period in which the Controlled Amortization Period commences (unless the Non-Renewing Purchaser Class A Principal Balance shall have been reduced to zero prior to such date), the lesser of (a) the Non-Renewing Purchaser Class A Principal Balance as of the Mandatory Limited Amortization Date, divided by 12 (with the quotient rounded up to the nearest dollar) and (b) the excess of the Non-Renewing Purchaser Class A Principal Balance over the Mandatory Limited Amortization Target.

"Mandatory Limited Amortization Date" means, the Purchase Expiration Date (without giving effect to a requested extension) but only if all of the following have occurred:  (x) the Transferor has requested an extension of such Purchase Expiration Date, (y) there are one or more Non-Renewing Ownership Groups and (z) the Issuer has not repaid the outstanding Non-

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Renewing Purchaser Class A Principal Balance on or prior to the related Purchase Expiration Date (without giving effect to the requested extension).

"Mandatory Limited Amortization Period" means the period commencing on the first day of the first Monthly Period that commences on or after the Mandatory Limited Amortization Date and ending the earliest to occur of (x) the payment in full of the Non-Renewing Purchaser Class A Principal Balance, (y) the commencement of the Controlled Amortization Period or the Early Amortization Period and (z) the Series Termination Date.

"Mandatory Limited Amortization Shortfall" means, with respect to any Payment Date, the excess, if any, of (a) the Mandatory Limited Payment Amount for the preceding Payment Date over (b) the amounts paid pursuant to Section 5.4(b) with respect to Class A Monthly Principal.

"Mandatory Limited Amortization Target" means, with respect to any Transfer Date, (a) the Non-Renewing Purchaser Class A Principal Balance as of the Mandatory Limited Amortization Date less (b) the product (rounded up to the nearest dollar) of (i) a fraction, the numerator of which is the number of full Monthly Periods that have elapsed during the Mandatory Limited Amortization Period as of such Transfer Date (which, for the avoidance of doubt, shall exclude the Monthly Period in which such Transfer Date falls), and the denominator of which is 12 and (ii) the Non-Renewing Purchaser Class A Principal Balance as of the Mandatory Limited Amortization Date.

"Mandatory Limited Payment Amount" means, with respect to any Transfer Date with respect to the Mandatory Limited Amortization Period, beginning with the Payment Date in the Monthly Period immediately following the Monthly Period in which the Mandatory Limited Amortization Period begins, and the Transfer Date in the Monthly Period in which the Controlled Amortization Period commences (unless the Non-Renewing Purchaser Class A Principal Balance shall have been reduced to zero prior to such date), the sum of (a) the Mandatory Limited Amortization Amount for such Payment Date, plus (b) any existing Mandatory Limited Amortization Shortfall.

"Maximum Principal Balance" means the sum of (a) the Class A Maximum Principal Balance, (b) the Class M Maximum Principal Balance, (c) the Class B Maximum Principal Balance and (d) the Class C Maximum Principal Balance.

"Minimum Transferor Amount" means (a) prior to the Certificate Trust Termination Date, the "Minimum Transferor Amount" under (and as defined in) the Pooling and Servicing Agreement and (b) on and after the Certificate Trust Termination Date, the "Minimum Transfer Amount" as defined in Annex A to the Indenture.

"Monthly Interest" means, for any Distribution Date, the sum of the Class A Monthly Interest, the Class M Monthly Interest, the Class B Monthly Interest and the Class C Monthly Interest for such Distribution Date.

"Monthly Period" means the period from and including the first day of the calendar month preceding a related Distribution Date to and including the last day of such calendar month.

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"Monthly Principal" means, on any Distribution Date, the sum of the Class A Monthly Principal, the Class M Monthly Principal, the Class B Monthly Principal and the Class C Monthly Principal with respect to such date.

"Monthly Principal Reallocation Amount" means, for any Monthly Period, an amount equal to the sum of: (a) the lesser of (i) the sum of Class A Required Amount and the Servicing Fee Required Amount and (ii) the excess, if any, of the Collateral Amount over the Class A Principal Balance on the related Distribution Date (after giving effect to Investor Charge-Offs for the related Monthly Period), (b) the lesser of (i) the Class M Required Amount and (ii) the excess of the Collateral Amount over the sum of the Class A Principal Balance and the Class M Principal Balance on the related Distribution Date (after giving effect to Investor Charge-Offs for the related Monthly Period and unreimbursed Reallocated Principal Collections (as of the previous Payment Date and as required in clause (a) above for the current Monthly Period)) and (c) the lesser of (i) the Class B Required Amount and (ii) the excess of the Collateral Amount over the sum of the Class A Principal Balance, the Class B Principal Balance and the Class C Principal Balance on the related Distribution Date (after giving effect to Investor Charge-Offs for the related Monthly Period and as required in clauses (a) and (b) above for the current Monthly Period).

"Non-Renewing Ownership Group" means, commencing on the related Mandatory Limited Amortization Date, any Class A Ownership Group that has not consented to the extension of the Purchase Expiration Date when requested as described in the Class A Note Purchase Agreement.

"Non-Renewing Purchaser Class A Principal Balance" means the outstanding principal balance of the Class A Notes allocated to Non-Renewing Ownership Groups.

"Non-Renewing Purchaser Scheduled Distribution Date" means the Distribution Date falling in the twelfth month following the month in which the Mandatory Limited Amortization Period begins.

"Note Principal Balance" means, as of any Business Day, the sum of (a) the Class A Principal Balance, (b) the Class M Principal Balance, (c) the Class B Principal Balance and (d) the Class C Principal Balance.

"Note Purchase Agreements" means the Class A Note Purchase Agreement, the Class M Note Purchase Agreement, the Class B Note Purchase Agreement and the Class C Note Purchase Agreement.

"Noteholder Servicing Fee" is defined in Section 3.1.

"Optional Amortization Amount" is defined in subsection 4.1(b).

"Optional Amortization Date" is defined in subsection 4.1(b).

"Optional Amortization Notice" is defined in subsection 4.1(b).

"Percentage Allocation" is defined in paragraph 5.1(b)(ii)(y).

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"Portfolio Yield" means, for any Monthly Period, the annualized percentage equivalent of a fraction, (a) the numerator of which is equal to (i) the Available Finance Charge Collections (excluding any Excess Finance Charge Collections), minus (ii) the Aggregate Investor Default Amount and the Investor Uncovered Dilution Amount for such Monthly Period and (b) the denominator of which is the Weighted Average Collateral Amount during such Monthly Period.

"Principal Account" is defined in subsection 5.9(a).

"Principal Collections" means Collections of Principal Receivables.

"Principal Shortfall" is defined in Section 5.8.

"Pro Rata Allocation" has the meaning specified in the Class A Note Purchase Agreement.

"Pro Rata Funding Event" has the meaning specified in the Class A Note Purchase Agreement.

"Quarterly Excess Spread Percentage" means, with respect to any Distribution Date, the percentage equivalent of a fraction, the numerator of which is the sum of the Excess Spread Percentages determined with respect to such Distribution Date and the immediately preceding two Distribution Dates and the denominator of which is three.

"Quarterly Payment Rate Percentage" means, with respect to any Distribution Date, the percentage equivalent of a fraction, the numerator of which is the sum of the Payment Rate Percentages determined with respect to such Distribution Date and the immediately preceding two Distribution Dates, and the denominator of which is three.  For purposes of the foregoing calculation, the "Payment Rate Percentage" for any Distribution Date shall equal the percentage equivalent of a faction, the numerator which is the aggregate Collections received during the immediately preceding Monthly Period, and the denominator of which is the total Principal Receivables held by the Issuer as of the opening of business on the first day of such immediately preceding Monthly Period.

"Rating Agency" means DBRS.

"Rating Agency Condition" means, notwithstanding anything to the contrary in the Indenture, with respect to Series 2009-VFN and any action subject to such condition, DBRS shall have notified the Issuer in writing that such action will not result in a reduction or withdrawal of their respective ratings of any outstanding Class of Series 2009-VFN Notes for which such Rating Agency provides a rating.

"Reallocated Principal Collections" means, for any Transfer Date, Investor Principal Collections applied in accordance with Section 5.6 in an amount not to exceed the Monthly Principal Reallocation Amount for the related Monthly Period.

"Reassignment Amount" means, for any Transfer Date, after giving effect to any deposits and distributions otherwise to be made on the related Distribution Date, the sum of (i) the Note Principal Balance on the related Distribution Date, plus (ii) Monthly Interest for the related

15

Distribution Date and any Monthly Interest previously due but not distributed to the Series 2009-VFN Noteholders, plus (iii) the amount of Class M Additional Interest, if any, for the related Distribution Date and any Class M Additional Interest previously due but not distributed to the Series 2009-VFN Noteholders on a prior Distribution Date, plus (iv) the amount of Class B Additional Interest, if any, for the related Distribution Date and any Class B Additional Interest previously due but not distributed to the Series 2009-VFN Noteholders on a prior Distribution Date, plus (v) the amount of the Class C Additional Interest, if any, for the related Distribution Date and any Class C Additional Interest previously due but not distributed to the Series 2009-VFN Noteholders on a prior Distribution Date, plus (vi) the amount of Class A Non-Use Fees, if any, for the related Distribution Date and any Class A Non-Use Fees previously due but not distributed to the Series 2009-VFN Noteholders on a prior Distribution Date, plus (vii) the amount of Additional Amounts, if any, for the related Distribution Date and any Additional Amounts previously due but not distributed to the Series 2009-VFN Noteholders on a prior Distribution Date.

"Record Date" means, for purposes of Series 2009-VFN with respect to any Distribution Date or Optional Amortization Date, the date falling five Business Days prior to such date.

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

"Refinancing Date" is defined in subsection 4.1(c).

"Required Class B Principal Balance" means on any date of determination, the Class B Pro Rata Percentage times the Note Principal Balance.

"Required Class C Principal Balance" means on any date of determination, the Class C Pro Rata Percentage times the Note Principal Balance.

"Required Class M Principal Balance" means on any date of determination, the Class M Pro Rata Percentage times the Note Principal Balance.

"Required Retained Transferor Percentage" means, for purposes of Series 2009-VFN, 4%.

"Required Spread Account Amount" means, for any Distribution Date, (a) the product of (i) the Spread Account Percentage in effect on such date and (ii) during (x) the Revolving Period, the Collateral Amount and (y) thereafter, the Collateral Amount as of the last day of the Revolving Period; provided, that in no event will the Required Spread Account Amount exceed the Class B Principal Balance (after taking into account any payments to be made on such Distribution Date).

"Reset Date" means:

(a)  each Addition Date and each "Addition Date" (as such term is defined in the Pooling and Servicing Agreement), in each case relating to Supplemental Accounts;

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(b)  each Removal Date and each "Removal Date" (as such term is defined in the Pooling and Servicing Agreement) on which, if any Series of Notes or any Series under (and as defined in) the Pooling and Servicing Agreement has been paid in full, Principal Receivables equal to the initial Collateral Amount or initial Principal Balance for that Series are removed from the Receivables Trust;

(c)  each date on which there is an increase in the outstanding balance of any Variable Interest or "Variable Interest" (as such term is defined in the Pooling and Servicing Agreement); and

(d)  each date on which a new Series or Class of Notes is issued and each date on which a new "Series" or "Class" (each as defined in the Pooling and Servicing Agreement) of investor certificates is issued by the Certificate Trust.

"Revolving Period" means the period from and including the Closing Date to, but not including, the earlier of (a) the day the Controlled Amortization Period commences and (b) the day the Early Amortization Period commences.  For the avoidance of doubt, the Revolving Period shall not terminate upon the commencement of a Mandatory Limited Amortization Period; provided that for purposes of Section 8.5 of the Master Indenture, the Mandatory Limited Amortization Period shall be deemed to be an Amortization Period.

"Series 2009-VFN" means the Series of Notes the terms of which are specified in this Indenture Supplement.

"Series 2009-VFN Early Amortization Event" is defined in Section 7.1.

"Series 2009-VFN Note" means a Class A Note, a Class M Note, a Class B Note or a Class C Note.

"Series 2009-VFN Noteholder" means a Class A Noteholder, a Class M Noteholder, a Class B Noteholder or a Class C Noteholder.

"Series Account" means, (a) with respect to Series 2009-VFN, the Finance Charge Account, the Principal Account, the Spread Account and the Distribution Account, and (b) with respect to any other Series, the "Series Accounts" for such Series as specified in the Indenture and the applicable Indenture Supplement for such Series.

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

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"Series Servicing Fee Percentage" means 2% per annum.

"Series Termination Date" means the earliest to occur of (a) the Distribution Date falling in the Controlled Amortization Period or an Early Amortization Period on which the Collateral Amount is paid in full, (b) the termination of the Trust pursuant to the Agreement, (c) the Distribution Date on or closest to the date falling 46 months after the commencement of the Early Amortization Period and (d) the Distribution Date on or closest to the date falling 58 months after the commencement of the Controlled Amortization Period.

"Servicing Fee Required Amount" means, for any Distribution Date, an amount equal to the excess of the amount described in clause 5.4(a)(iv) over the Available Finance Charge Collections applied to pay such amount pursuant to subsection 5.4(a).

"Specified Transferor Amount" means, as of any date of determination, the Minimum Transferor Amount (including the Additional Minimum Transferor Amount, if any) as of such date of determination.

"Spread Account" is defined in subsection 5.10(a).

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

"Spread Account Percentage" is defined in the applicable Class B Note Purchase Agreement.

"Target Amount" is defined in clause 5.1(b)(i).

 "Tranche Invested Amount" has the meaning specified in the Class A Note Purchase Agreement.

"Transfer" means any sale, transfer, assignment, exchange, participation, pledge, hypothecation, rehypothecation, or other grant of a security interest in or disposition of, a Note.

"Weighted Average Class A Principal Balance" means, as to any Class A Ownership Tranche (or Class A Funding Tranche) for any Distribution Period, the quotient of (a) the summation of the portion of the Class A Principal Balance allocated to that Class A Ownership Tranche (or Class A Funding Tranche) determined as of each day in that Distribution Period, divided by (b) the number of days in that Distribution Period (or, if less, the number of days during that Distribution Period during which that Class A Ownership Tranche or Class A Funding Tranche was outstanding).

"Weighted Average Collateral Amount" means, for any Monthly Period, the quotient of (a) the summation of the Collateral Amount determined as of each day in that Monthly Period, divided by (b) the number of days in that Monthly Period.

(b)  Each capitalized term defined herein shall relate to the Series 2009-VFN 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

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them in Annex A to the Master Indenture, or, if not defined therein, in the Note Purchase Agreements.

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

ARTICLE III.

Noteholder Servicing Fee

Section 3.1  Servicing Compensation.  The share of the Servicing Fee allocable to Series 2009-VFN for any Transfer Date (the "Noteholder Servicing Fee") shall be equal to one-twelfth of the product of (a) the Series Servicing Fee Percentage and (b) the Weighted Average Collateral Amount for the preceding Monthly Period; provided, however, that with respect to the first Transfer Date, the Noteholder Servicing Fee shall instead equal 32/360 of such product.  The remainder of the Servicing Fee shall be paid by the holders of the Transferor Interest or the noteholders of other Series (as provided in the related Indenture Supplements) and in no event shall the Trust, the Indenture Trustee or the Series 2009-VFN Noteholders be liable for the share of the Servicing Fee to be paid by the holders of the Transferor Interest or the noteholders of any other Series.

Section 3.2  Representations and Warranties.  The parties hereto agree that the representations, warranties and covenants set forth in Schedule I shall be a part of this Indenture Supplement for all purposes.

ARTICLE IV.

Variable Funding Mechanics

Section 4.1  Variable Funding Mechanics

(a)  Class A Incremental Fundings.  From time to time during the Revolving Period and prior to the Purchase Expiration Date, Transferor and Servicer may notify the Lead Agent and one or more Class A Noteholders that a Class A Incremental Funding will occur, subject to the conditions of the Class A Note Purchase Agreement, with respect to the related Class A Ownership Tranche(s) on the next or any subsequent Business Day by delivering a Notice of Class A Incremental Funding (as defined in the Class A Note Purchase Agreement) executed by Transferor and Servicer to the Lead Agent and the Administrative Agent for each such Class A Noteholder, specifying the amount of such Class A Incremental Funding and the Business Day upon which such Class A Incremental Funding is to occur, provided that a Class A Incremental Funding shall not be requested from an Administrative Agent for a Class A Noteholder that is a Non-Renewing Ownership Group if the Incremental Funding would occur on or after the Purchase Expiration Date (without giving effect to any requested extension of the Purchase Expiration to which the related Non-Renewing Ownership Group did not consent).  The amount of Class A Incremental Funding allocated to each Class A Ownership Group shall be a minimum amount of $1,000,000 or a higher integral multiple thereof for each Class A Ownership Group,

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except that a Class A Incremental Funding may be requested in the entire remaining Class A Purchase Limit of the related Class A Ownership Group.  At any time that a Pro Rata Funding Event has occurred and is continuing, the amount of each Class A Incremental Funding shall be allocated among the Class A Ownership Groups on a pro rata basis based on their respective Class A Ownership Group Percentages; provided that if a Pro Rata Funding Event has occurred and is continuing, the amount of the Class A Incremental Funding may be allocated among the Class A Ownership Groups on a non-pro rata basis if such allocation results in a Pro Rata Allocation among the Class A Ownership Groups after giving effect to the Class A Incremental Funding.  Upon any Class A Incremental Funding, the Class A Principal Balance, the Collateral Amount, the Note Principal Balance and the Allocation Percentage shall increase as provided herein.  For each Class A Incremental Funding, the Class A Principal Balance shall increase in an amount equal to the Class A Incremental Principal Balance.  The increase in the Class A Principal Balance shall be allocated to the Class A Notes held by the Class A Noteholders from which purchase prices were received in connection with the Class A Incremental Funding in proportion to the amount of such purchase prices received.

(b)  Optional Amortization.  On any Business Day in the Revolving Period or the Controlled Amortization Period, Transferor may cause Servicer to provide notice to the Indenture  Trustee, the Lead Agent and the affected Noteholders (an "Optional Amortization Notice") at least two Business Days prior to any Business Day (the "Optional Amortization Date") stating its intention to cause a full or partial amortization of the Class A Notes, the Class M Notes, the Class B Notes and the Class C Notes with Available Principal Collections on the Optional Amortization Date, in full, or in part in an amount (the "Optional Amortization Amount"), which shall be allocated among the Class A Notes, the Class M Notes, the Class B Notes and the Class C Notes, based on the Class A Pro Rata Percentage, the Class M Pro Rata Percentage, the Class B Pro Rata Percentage and the Class C Pro Rata Percentage, respectively; provided that if as a result of the payment of a Mandatory Limited Payment Amount, the Class B Principal Balance exceeds the Required Class B Principal Balance or the Class C Principal Balance exceeds the Required Class C Principal Balance, the Optional Amortization Amount may be allocated on a non-pro rata basis among the Classes of Series 2009-VFN Notes in order to reduce the Class B Principal Balance to an amount not less than the Required Class B Principal Balance and to reduce the Class C Principal Balance to an amount not less than the Required Class C Principal Balance. The portion of the Optional Amortization Amount allocated to any Class A Ownership Group shall be in an aggregate amount not less than $1,000,000 or a higher integral multiple thereof, except that the Optional Amortization Amount allocated to any Class A Ownership Group may equal the entire Principal Balance of the related Class A Note for such Class A Ownership Group.  The Optional Amortization Notice shall state the Optional Amortization Date, the Optional Amortization Amount and the allocation of such Optional Amortization Amount among the various Classes and Class A Ownership Groups; provided that at any time that a Pro Rata Funding Event has occurred and is continuing, the Class A Pro Rata Percentage of the Optional Amortization Amount shall be allocated among the Class A Ownership Groups on a pro rata basis based on their respective Class A Ownership Group Percentages; provided further that if a Pro Rata Funding Event has occurred and is continuing, and a Pro Rata Allocation does not exist on the related Optional Amortization Date, then the Class A Pro Rata Percentage of the Optional Amortization Amount shall instead be allocated among the Class A Ownership Groups on a non-pro rata basis such that a Pro Rata Allocation would exist after giving effect to application of the Optional Amortization Amount, or if the

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requested Optional Amortization Amount is not large enough to achieve a Pro Rata Allocation, allocated in a manner reasonably determined by the Transferor to most closely align the Tranche Invested Amounts of each Class A Ownership Group in proportion to the respective Class A Ownership Group Percentages.

(c)  The Optional Amortization Amount shall be paid from Shared Principal Collections pursuant to Section 5.8.  Allocation of the Optional Amortization Amount among the various outstanding Class A Funding Tranches shall be at the discretion of Transferor, and accrued interest and any Class A Additional Amounts on the affected Class A Funding Tranches shall be payable on the first Distribution Date on or after the related Optional Amortization Date.  On the Business Day prior to each Optional Amortization Date, Servicer shall instruct the Indenture Trustee in writing (which writing shall be substantially in the form of Exhibit B) to withdraw from the Collection Account and deposit into the Distribution Account, to the extent of the available funds held therein as Shared Principal Collections pursuant to Section 5.8, an amount sufficient to pay the Optional Amortization Amount on that Optional Amortization Date, and the Indenture Trustee, acting in accordance with such instructions, shall on such Business Day make such withdrawal and deposit.

(d)  Refinanced Optional Amortization.  On any Business Day in the Revolving Period or the Controlled Amortization Period, Transferor may, with the consent of each affected Series 2009-VFN Noteholder, cause Servicer to provide notice to the Indenture Trustee, the Lead Agent and all of the Series 2009-VFN Noteholders at least five Business Days prior to any Business Day (the "Refinancing Date") stating its intention to cause the Series 2009-VFN Notes to be prepaid in full or in part on the Refinancing Date by causing all or a portion of the Collateral Amount to be conveyed to one or more Persons (who may be the Noteholders of a new Series issued substantially contemporaneously with such prepayment) for a cash purchase price in an amount equal to the sum of (i) the Collateral Amount (or the portion thereof that is being conveyed), plus (ii) accrued and unpaid interest on the Collateral Amount (or the portion thereof that is being conveyed) through the Refinancing Date, plus (iii) any accrued and unpaid Class A Non‐Use Fees and Class A Additional Amounts in respect of the Collateral Amount (or portion thereof that is being conveyed) through the Refinancing Date. In the case of any such conveyance, the purchase price shall be deposited in the Collection Account and shall be distributed to the applicable Series 2009-VFN Noteholders on the Refinancing Date in accordance with the terms of this Indenture Supplement and the Indenture; provided that after giving effect to any such conveyance and application of the purchase price, (i) the Class M Principal Balance shall not be less than the Required Class M Principal Balance, (ii) the Class B Principal Balance shall not be less than the Required Class B Principal Balance and (iii) the Class C Principal Balance shall not be less than the Required Class C Principal Balance.  At any time that a Pro Rata Funding Event has occurred and is continuing, the amount of any reduction in the Class A Principal Balance on a Refinancing Date shall be allocated among the Class A Ownership Groups on a pro rata basis based on their respective Class A Ownership Group Percentages; provided however that if a Pro Rata Funding Event has occurred and is continuing, and a reduction is requested at such time as a Pro Rata Allocation does not exist, then the amount of such reduction shall instead be allocated among the Class A Ownership Groups on a non-pro rata basis such that a Pro Rata Allocation would exist among the Class A Ownership Groups after giving effect to the payments made on the Refinancing Date, or if the requested refinancing amount is not large enough to achieve a Pro Rata Allocation, allocated in a manner reasonably

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determined by the Transferor to most closely align the Tranche Invested Amounts of each Class A Ownership Group in proportion to the respective Class A Ownership Group Percentages.

(e)  Class M Incremental Fundings.  From time to time during the Revolving Period, Transferor and Servicer may, to the extent permitted by the applicable Class M Note Purchase Agreement, notify the Class M Noteholders that a Class M Incremental Funding will occur, subject to the conditions, if any, of the applicable Class M Note Purchase Agreements, on any Business Day by delivering a Notice of Class M Incremental Funding (as defined in the applicable Class M Note Purchase Agreement) executed by Transferor and Servicer to the Class M Noteholder, specifying the amount of such Class M Incremental Funding and the Business Day upon which such Class M Incremental Funding is to occur (which shall fall at least three Business Days after the date of such Notice).  Upon any Class M Incremental Funding, the Class M Principal Balance, the Collateral Amount, the Note Principal Balance and the Allocation Percentage shall increase as provided herein.

(f)  Class B Incremental Fundings.  From time to time during the Revolving Period, Transferor and Servicer may, to the extent permitted by the applicable Class B Note Purchase Agreement, notify the Class B Noteholders that a Class B Incremental Funding will occur, subject to the conditions, if any, of the applicable Class B Note Purchase Agreements, on any Business Day by delivering a Notice of Class B Incremental Funding (as defined in the applicable Class B Note Purchase Agreement) executed by Transferor and Servicer to the Class B Noteholder, specifying the amount of such Class B Incremental Funding and the Business Day upon which such Class B Incremental Funding is to occur (which shall fall at least three Business Days after the date of such Notice).  Upon any Class B Incremental Funding, the Class B Principal Balance, the Collateral Amount, the Note Principal Balance and the Allocation Percentage shall increase as provided herein.

(g)  Class C Incremental Fundings.  From time to time during the Revolving Period, Transferor and Servicer may, to the extent permitted by the applicable Class C Note Purchase Agreement, notify the Class C Noteholders that a Class C Incremental Funding will occur, subject to the conditions, if any, of the applicable Class C Note Purchase Agreements, on any Business Day by delivering a Notice of Class C Incremental Funding (as defined in the applicable Class C Note Purchase Agreement) executed by Transferor and Servicer to the Class C Noteholder, specifying the amount of such Class C Incremental Funding and the Business Day upon which such Class C Incremental Funding is to occur (which shall fall at least three Business Days after the date of such Notice).  Upon any Class C Incremental Funding, the Class C Principal Balance, the Collateral Amount, the Note Principal Balance and the Allocation Percentage shall increase as provided herein.

Section 4.2  Maximum Principal Balances.  The initial Maximum Principal Balances of each Series 2009-VFN Note is as set forth on the related Series 2009-VFN Notes.  The Maximum Principal Balance of each Series 2009-VFN Note may be reduced or increased from time to time as provided in the related Note Purchase Agreement.  Increases and decreases in the overall Maximum Principal Balance are not required to be made ratably among the various Classes of Notes.  Any decrease in the Maximum Principal Balance of any Series 2009-VFN Note shall be permanent, unless a subsequent increase in the Maximum Principal Balance is made in accordance with the related Note Purchase Agreement.

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ARTICLE V.

Rights of Series 2009-VFN Noteholders and Allocation and Application of Collections

Section 5.1  Collections and Allocations

(a)  Allocations.  Finance Charge Collections, Principal Collections and Defaulted Receivables allocated to Series 2009-VFN pursuant to Article VIII of the Indenture shall be allocated and distributed as set forth in this Article.

(b)  Allocations to the Series 2009-VFN Noteholders.  The Servicer shall on the Date of Processing, allocate to the Series 2009-VFN Noteholders the following amounts as set forth below:

(i)  Allocations of Finance Charge Collections. The Servicer shall allocate to the Series 2009-VFN Noteholders an amount equal to the product of (A) the Allocation Percentage and (B) the aggregate Finance Charge Collections processed on such Date of Processing and shall deposit such amount into the Finance Charge Account, provided that, with respect to each Monthly Period falling in the Revolving Period (and with respect to that portion of each Monthly Period in the Controlled Amortization Period falling on or after the day on which Collections of Principal Receivables equal to the related Controlled Amortization Amount have been allocated pursuant to clause 5.1(b)(ii)),Collections of Finance Charge Receivables shall be transferred into the Finance Charge Account only until such time as the aggregate amount so deposited equals the product of (x) 1.5 and (y) the sum (the "Target Amount") of (A) the Monthly Interest for the related Distribution Date, (B) the Class A Non-Use Fee and the Class A Rated Additional Amounts, if any, (C)  if Comenity Bank is not the Servicer, the Noteholder Servicing Fee (and if Comenity Bank is the Servicer, then amounts that otherwise would have been transferred into the Finance Charge Account pursuant to this clause (C) shall instead by returned to Comenity Bank as payment of the Noteholder Servicing Fee), (D) any amount required to be deposited in the Spread Account on the related Transfer Date and (E) the sum of the Investor Default Amounts for the prior Monthly Period and any Investor Uncovered Dilution Amount for the prior Monthly Period; provided further, that, notwithstanding the preceding proviso, if on any Business Day the Servicer determines that the Target Amount for a Monthly Period exceeds the Target Amount for that Monthly Period as previously calculated by Servicer, then (x) Servicer shall (on the same Business Day) inform Transferor of such determination, and (y) within two Business Days of receiving such notice Transferor shall deposit into the Finance Charge Account funds in an amount equal to the amount of Collections of Finance Charge Receivables allocated to the Noteholders for that Monthly Period but not deposited into the Finance Charge Account due to the operation of the preceding proviso (but not in excess of the amount required so that the aggregate amount deposited for the subject Monthly Period equals the Target Amount); and provided, further, if on any Transfer Date the Transferor Amount is less than the Specified Transferor Amount after giving effect to all transfers and deposits on that Transfer Date, Transferor shall, on that Transfer Date, deposit into the Principal Account funds in an amount equal to the amounts of Available Finance Charge Collections that are required to be treated as

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Available Principal Collections pursuant to clause 5.4(a)(viii)and (ix) but are not available from funds in the Finance Charge Account as a result of the operation of second preceding proviso.

With respect to any Monthly Period when deposits of Collections of Finance Charge Receivables into the Finance Charge Account are limited to deposits up to 1.5 times the Target Amount in accordance with clause (i) above, notwithstanding such limitation and notwithstanding the provisions of Section 8.4(a) of the Indenture: (1) "Reallocated Principal Collections" for the related Transfer Date shall be calculated as if the full amount of Finance Charge Collections allocated to the Noteholders during that Monthly Period had been deposited in the Finance Charge Account and applied on such Transfer Date in accordance with subsection 5.4(a); and (2) Collections of Finance Charge Receivables released to Transferor pursuant to such Section 5.1(b)(i) shall be deemed, for purposes of all calculations under this Indenture Supplement, to have been retained in the Finance Charge Account and applied to the items specified in subsections 5.4(a) to which such amounts would have been applied (and in the priority in which they would have been applied) had such amounts been available in the Finance Charge Account on such Transfer Date.  To avoid doubt, the calculations referred to in the preceding clause (2) include the calculations required by clause (b) of the definition of Collateral Amount and by the definition of Portfolio Yield.

(ii)  Allocations of Principal Collections.  The Servicer shall allocate to the Series 2009-VFN Noteholders the following amounts as set forth below:

(x)  Allocations During the Revolving Period.

(1)  During the Revolving Period an amount equal to the product of the Allocation Percentage and the aggregate amount of Principal Collections processed on such Date of Processing, shall be allocated to the Series 2009-VFN Noteholders and first, retained in the Principal Account to the extent necessary, to pay the Mandatory Limited Payment Amount on the related Distribution Date, second, if an Optional Amortization Notice has been given or any other Principal Sharing Series is outstanding and in its accumulation period or amortization period, retained in the Principal Account for application, to the extent necessary, as Optional Amortization Amounts or as Shared Principal Collections for other Principal Sharing Series on the related Distribution Date, third, deposited in the Excess Funding Account to the extent necessary so that the Transferor Amount is not less than the Specified Transferor Amount and fourth, paid to the holders of the Transferor Interest.

(2)  With respect to each Monthly Period falling in the Revolving Period, to the extent that Collections of Principal Receivables allocated to the Series 2009-VFN Noteholders pursuant to this clause 5.1(b)(ii) are paid to Transferor, Transferor shall make an amount equal to the Reallocated Principal Collections for the related Transfer Date available on that Transfer Date for application in accordance with Section 5.6.

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(y)  Allocations During the Controlled Amortization Period.  During the Controlled Amortization Period an amount equal to the product of  the Allocation Percentage and the aggregate amount of Principal Collections processed on such Date of Processing (the product for any such date is hereinafter referred to as a "Percentage Allocation") shall be allocated to the Series 2009-VFN Noteholders and transferred to the Principal Account until applied as provided herein; provided, however, that if the sum of such Percentage Allocation and all preceding Percentage Allocations with respect to the same Monthly Period exceeds the Controlled Payment Amount during the Controlled Amortization Period for the related Distribution Date, then such excess shall not be treated as a Percentage Allocation and shall be first, if any other Principal Sharing Series is outstanding and in its accumulation period or amortization period, retained in the Principal Account for application, to the extent necessary, as Shared Principal Collections to other Principal Sharing Series on the related Distribution Date, second, retained in the Principal Account to pay any Optional Amortization Amount on the related Optional Amortization Date, third, deposited in the Excess Funding Account to the extent necessary so that the Transferor Amount is not less than the Specified Transferor Amount and fourth, paid to the holders of the Transferor Interest.

(z)  Allocations During the Early Amortization Period.  During the Early Amortization Period, an amount equal to the product of  the Allocation Percentage and the aggregate amount of Principal Collections processed on such Date of Processing shall be allocated to the 2009-VFN Noteholders and transferred to the Principal Account until applied as provided herein; provided, however, that after the date on which an amount of such Principal Collections equal to the Note Principal Balance has been deposited into the Principal Account such amount shall be first, if any other Principal Sharing Series is outstanding and in its accumulation period or amortization period, retained in the Principal Account for application, to the extent necessary, as Shared Principal Collections to other Principal Sharing Series on the related Distribution Date, second deposited in the Excess Funding Account to the extent necessary so that the Transferor Amount is not less than the Specified Transferor Amount and third paid to the holders of the Transferor Interest.

(c)  During any period when Servicer is permitted by Section 4.3 of the Pooling and Servicing Agreement or Section 8.4 of the Indenture to make a single monthly deposit to the Collection Account, amounts allocated to the Noteholders pursuant to Sections 5.1(a) and (b) with respect to any Monthly Period need not be deposited into the Collection Account or any Series Account prior to the related Transfer Date, and, when so deposited, (x) may be deposited net of any amounts required to be distributed to Transferor and, if Comenity Bank is Servicer, to Servicer, and (y) shall be deposited into the Finance Charge Account (in the case of Collections of Finance Charge Receivables) and the Principal Account (in the case of Collections of Principal Receivables (not including any Shared Principal Collections allocated to Series 2009-VFN pursuant to Section 4.15 of the Pooling and Servicing Agreement or Section 8.5 of the Indenture)).

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(d)  On any date, Servicer may withdraw from the Collection Account or any Series Account any amounts inadvertently deposited in such account that should have not been so deposited.

Section 5.2  Determination of Monthly Interest.

(a)  Pursuant to the Class A Note Purchase Agreement, certain Class A Ownership Tranches may from time to time be divided into one or more subdivisions (each, as further specified in the Class A Note Purchase Agreement, a "Class A Funding Tranche") which will accrue interest on different bases.  For Class A Funding Tranches that accrue interest by reference to a commercial paper rate or LIBOR, a specified period (each, a "Class A Fixed Period") will be designated in the Class A Note Purchase Agreement during which that Class A Funding Tranche may accrue interest at a fixed rate.  The amount of monthly interest ("Class A Monthly Interest") distributable from the Distribution Account with respect to the Class A Notes on any Distribution Date shall be an amount equal to the aggregate amount of interest that accrued over that Distribution Period on each Class A Funding Tranche (plus the aggregate amount of interest that accrued over any prior Distribution Period on any Class A Funding Tranche and has not yet been paid, plus additional interest (to the extent permitted by law) on such overdue amounts at the weighted average interest rate applicable to the related Class A Ownership Tranche during that Distribution Period, and minus any overpayment of interest on the prior Distribution Date as a result of the estimation referred to below), all as determined by Servicer on the related Determination Date. For purposes of such determination, Servicer shall rely upon information provided by the various Administrative Agents pursuant to the Class A Note Purchase Agreement including estimates of the interest to accrue on any Class A Funding Tranche through the related Distribution Date. The interest accrued on any Class A Ownership Tranche (or related Class A Funding Tranche) for any Distribution Period shall be determined using the applicable Class A Tranche Rate and shall equal the product of (x) the Weighted Average Class A Principal Balance for that Class A Ownership Tranche (or Class A Funding Tranche), (y) the applicable Class A Tranche Rate and (z) the applicable Day Count Fraction.

(b)  The amount of monthly interest ("Class M Monthly Interest") distributable from the Distribution Account with respect to the Class M Notes on any Distribution Date shall be an amount equal to the product of (i) (A) a fraction, the numerator of which is the actual number of days in the related Distribution Period and the denominator of which is 360, times (B) the Class M Note Interest Rate in effect with respect to the related Distribution Period and (ii) the average Class M Principal Balance outstanding during the preceding Monthly Period.

On the Determination Date preceding each Distribution Date, the Servicer shall determine the excess, if any (the "Class M Deficiency Amount"), of (x) the aggregate amount accrued pursuant to this subsection 5.2(c) as of the prior Distribution Date over (y) the amount of funds actually transferred from the Distribution Account for payment of such amount.  If the Class M Deficiency Amount for any Distribution Date is greater than zero, on each subsequent Distribution Date until such Class M Deficiency Amount is fully paid, an additional amount ("Class M Additional Interest") equal to the product of (i) (A) a fraction, the numerator of which is the actual number of days in the related Distribution Period and the denominator of which is 360, times (B) the Class M Note Interest Rate in effect with respect to the related Distribution Period and (ii) such Class M Deficiency Amount (or the portion thereof which has not been paid

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to the Class M Noteholders) shall be payable as provided herein with respect to the Class M Notes.  Notwithstanding anything to the contrary herein, Class M Additional Interest shall be payable or distributed to the Class M Noteholders only to the extent permitted by applicable law.

 

(c)  The amount of monthly interest ("Class B Monthly Interest") distributable from the Distribution Account with respect to the Class B Notes on any Distribution Date shall be an amount equal to the product of (i) (A) a fraction, the numerator of which is the actual number of days in the related Distribution Period and the denominator of which is 360, times (B) the Class B Note Interest Rate in effect with respect to the related Distribution Period and (ii) the average Class B Principal Balance outstanding during the preceding Monthly Period.

On the Determination Date preceding each Distribution Date, the Servicer shall determine the excess, if any (the "Class B Deficiency Amount"), of (x) the aggregate amount accrued pursuant to this subsection 5.2(c) as of the prior Distribution Date over (y) the amount of funds actually transferred from the Distribution Account for payment of such amount.  If the Class B Deficiency Amount for any Distribution Date is greater than zero, on each subsequent Distribution Date until such Class B Deficiency Amount is fully paid, an additional amount ("Class B Additional Interest") equal to the product of (i) (A) a fraction, the numerator of which is the actual number of days in the related Distribution Period and the denominator of which is 360, times (B) the Class B Note Interest Rate in effect with respect to the related Distribution Period and (ii) such Class B Deficiency Amount (or the portion thereof which has not been paid to the Class B Noteholders) shall be payable as provided herein with respect to the Class B Notes.  Notwithstanding anything to the contrary herein, Class B Additional Interest shall be payable or distributed to the Class B Noteholders only to the extent permitted by applicable law.

(d)  The amount of monthly interest ("Class C Monthly Interest") distributable from the Distribution Account with respect to the Class C Notes on any Distribution Date shall be an amount equal to the product of (i) (A) a fraction, the numerator of which is the actual number of days in the related Distribution Period and the denominator of which is 360, times (B) the Class C Note Interest Rate in effect with respect to the related Distribution Period and (ii) the average Class C Principal Balance outstanding during the preceding Monthly Period.

On the Determination Date preceding each Distribution Date, the Servicer shall determine the excess, if any (the "Class C Deficiency Amount"), of (x) the aggregate amount accrued pursuant to this subsection 5.2(c) as of the prior Distribution Date over (y) the amount of funds actually transferred from the Distribution Account for payment of such amount.  If the Class C Deficiency Amount for any Distribution Date is greater than zero, on each subsequent Distribution Date until such Class C Deficiency Amount is fully paid, an additional amount ("Class C Additional Interest") equal to the product of (i) (A) a fraction, the numerator of which is the actual number of days in the related Distribution Period and the denominator of which is 360, times (B) the Class C Note Interest Rate in effect with respect to the related Distribution Period and (ii) such Class C Deficiency Amount (or the portion thereof which has not been paid to the Class C Noteholders) shall be payable as provided herein with respect to the Class C Notes.  Notwithstanding anything to the contrary herein, Class C Additional Interest shall be payable or distributed to the Class C Noteholders only to the extent permitted by applicable law.

(e)  In addition to Class A Monthly Interest, each Class A Noteholder (i) shall receive a monthly commitment fee (a "Class A Non-Use Fee") with respect to each Distribution Period

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(or portion thereof) falling in the Revolving Period accruing at the Class A Non-Use Fee Rate based on its portion of the excess of the average Class A Maximum Principal Balance over the average Class A Principal Balance for such period and (ii) shall be entitled to receive certain other amounts identified as Class A Additional Amounts (such amounts, including Class A Breakage Payments, being "Class A Additional Amounts") in the Class A Note Purchase Agreement.  The Class A Non-Use Fee shall accrue based upon the number of days in the related Distribution Period (or the portion thereof falling in the Revolving Period) and a year of 365 or 366 days, as applicable.  Class A Additional Amounts payable on any Distribution Date shall, so long as they equal less than 0.50% of the Weighted Average Collateral Amount over the related Distribution Period, constitute "Class A Rated Additional Amounts." Any Class A Additional Amounts payable on any Distribution Date in excess of the foregoing limitation shall constitute "Class A Unrated Additional Amounts."

(f)  If any distribution of principal is made with respect to any Class A Funding Tranche with a Fixed Period and a fixed interest rate other than on (i) the last day of that Fixed Period or (ii) a Distribution Date, or if the Class A Funded Amount of any Class A Ownership Tranche is reduced by an Optional Amortization Amount in an amount greater than the amount (if any) specified in the Class A Note Purchase Agreement with respect to that Class A Ownership Tranche without the applicable number (as specified in the Class A Note Purchase Agreement) of Business Days' prior notice to the affected Holder, and in either case (i) the interest paid by the Class A Holder holding that Class A Funding Tranche to providers of funds to it to fund that Class A Funding Tranche exceeds (ii) returns earned by that Class A Holder through the related Distribution Date (or, if earlier, the last day of that Fixed Period) by redeployment of such funds in highly rated short-term money market instruments, then, upon written notice (which notice shall be signed by an officer of that Class A Holder with knowledge of and responsibility for such matters and shall set forth in reasonable detail the basis for requesting the amounts) from such Class A Holder to Servicer, such Class A Holder shall be entitled to receive additional amounts in the amount of such excess (each, a "Class A Breakage Payment") on the Distribution Date on or after the date such distribution of principal is made with respect to that Funding Tranche, so long as such written notice is received not later than noon, New York City time, on the Transfer Date related to such Distribution Date. For purposes of calculations under this paragraph, any payment received by a Class A Holder later than noon, New York City time, on any day shall be deemed to have been received on the next day.

Section 5.3  Determination of Class A Monthly Principal, Class M Monthly Principal, Class B Monthly Principal and Class C Monthly Principal.

(a)  The amount of monthly principal (the "Class A Monthly Principal") to be transferred from the Principal Account with respect to the Class A Notes (i) on each Transfer Date, beginning with the Transfer Date in the Monthly Period following the Monthly Period in which the Controlled Amortization Period begins (unless an Early Amortization Period shall have commenced prior to the end of the Monthly Period immediately preceding such Transfer Date), shall be equal to the least of (w) the Class A Pro Rata Percentage of the Available Principal Collections on deposit in the Principal Account with respect to such Transfer Date, (x) the Class A Pro Rata Percentage of the Controlled Payment Amount for such Transfer Date, (y) the Collateral Amount (after taking into account any adjustments to be made on such Transfer Date and the related Distribution Date pursuant to Sections 5.5 and 5.6), and (z) the Class A

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Principal Balance, and (ii) on each Transfer Date, beginning with the Transfer Date in the Monthly Period following the Monthly Period in which the Early Amortization Period begins, shall be equal to the least of (x) the Available Principal Collections on deposit in the Principal Account with respect to such Transfer Date, (y) the Collateral Amount (after taking into account any adjustments to be made on such Transfer Date and the related Distribution Date pursuant to Sections 5.5 and 5.6), and (z) the Class A Principal Balance and (iii) on each Transfer Date, beginning with the Transfer Date in the Monthly Period following the Monthly Period in which the Mandatory Limited Amortization Period begins and ending on the Transfer Date in the Monthly Period in which the Controlled Amortization Period begins (unless an Early Amortization Period shall have commenced prior to the end of the Monthly Period immediately preceding such Transfer Date), shall be equal to the least of (x) the Class A Senior Percentage of the Available Principal Collections on deposit in the Principal Account with respect to such Transfer Date, (y) prior to the Non-Renewing Purchaser Scheduled Distribution Date, the Class A Senior Percentage of the Mandatory Limited Payment Amount for such Transfer Date, and (z) the Non-Renewing Purchaser Class A Principal Balance.

(b)  The amount of monthly principal (the "Class M Monthly Principal") to be transferred from the Principal Account with respect to the Class M Notes (i) on each Transfer Date, beginning with the Transfer Date in the Monthly Period following the Monthly Period in which the Controlled Amortization Period begins (unless an Early Amortization Period shall have commenced prior to the end of the Monthly Period immediately preceding such Transfer Date), shall be equal to the least of (w) the Class M Pro Rata Percentage of the Available Principal Collections on deposit in the Principal Account with respect to such Transfer Date, (x) the Class M Pro Rata Percentage of the Controlled Payment Amount for such Transfer Date, (y) the Collateral Amount (after taking into account any adjustments to be made on such Transfer Date and the related Distribution Date pursuant to Sections 5.5 and 5.6 and the payment of Class A Monthly Principal), and (z) the Class M Principal Balance, and (ii) on each Transfer Date, beginning with the Transfer Date in the Monthly Period following the Monthly Period in which the Early Amortization Period begins, shall be equal to the least of (x) the excess of the Available Principal Collections on deposit in the Principal Account with respect to such Transfer Date, over the portion of such Available Principal Collections applied to Class A Monthly Principal on such Transfer Date, (y) the Collateral Amount (after taking into account any adjustments to be made on such Transfer Date and the related Distribution Date pursuant to Sections 5.5 and 5.6 and the payment of Class A Monthly Principal), and (z) the Class M Principal Balance.

(c)  The amount of monthly principal (the "Class B Monthly Principal") to be transferred from the Principal Account with respect to the Class B Notes (i) on each Transfer Date beginning with the Transfer Date in the Monthly Period following the Monthly Period in which the Controlled Amortization Period begins (unless an Early Amortization Period shall have commenced prior to the end of the Monthly Period immediately preceding such Transfer Date), shall be equal to the least of (w) the Class B Pro Rata Percentage of the Available Principal Collections on deposit in the Principal Account with respect to such Transfer Date, (x) the Class B Pro Rata Percentage of the Controlled Payment Amount for such Transfer Date, (y) the Collateral Amount (after taking into account any adjustments to be made on such Transfer Date and the related Distribution Date pursuant to Sections 5.5 and 5.6 and the payment of Class A Monthly Principal and Class M Monthly Principal), and (z) the Class B Principal

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Balance, and (ii) on each Transfer Date, beginning with the Transfer Date in the Monthly Period following the Monthly Period in which the Early Amortization Period begins, shall be equal to the least of (x) the excess of the Available Principal Collections on deposit in the Principal Account with respect to such Transfer Date, over the portion of such Available Principal Collections applied to Class A Monthly Principal, and Class M Monthly Principal on such Transfer Date, (y) the Collateral Amount (after taking into account any adjustments to be made on such Transfer Date and the related Distribution Date pursuant to Sections 5.5 and 5.6 and the payment of Class A Monthly Principal and Class M Monthly Principal), and (z) the Class B Principal Balance.

(d)  The amount of monthly principal (the "Class C Monthly Principal") to be transferred from the Principal Account with respect to the Class C Notes (i) on each Transfer Date beginning with the Transfer Date in the Monthly Period following the Monthly Period in which the Controlled Amortization Period begins (unless an Early Amortization Period shall have commenced prior to the end of the Monthly Period immediately preceding such Transfer Date), shall be equal to the least of (w) the Class C Pro Rata Percentage of the Available Principal Collections on deposit in the Principal Account with respect to such Transfer Date, (x) the Class C Pro Rata Percentage of the Controlled Payment Amount for such Transfer Date, (y) the Collateral Amount (after taking into account any adjustments to be made on such Transfer Date and the related Distribution Date pursuant to Sections 5.5 and 5.6 and the payment of Class A Monthly Principal, Class M Monthly Principal and Class B Monthly Principal), and (z) the Class C Principal Balance, and (ii) on each Transfer Date, beginning with the Transfer Date in the Monthly Period following the Monthly Period in which the Early Amortization Period begins, shall be equal to the least of (x) the excess of the Available Principal Collections on deposit in the Principal Account with respect to such Transfer Date, over the portion of such Available Principal Collections applied to Class A Monthly Principal, Class M Monthly Principal and Class B Monthly Principal on such Transfer Date, (y) the Collateral Amount (after taking into account any adjustments to be made on such Transfer Date and the related Distribution Date pursuant to Sections 5.5 and 5.6 and the payment of the Class A Monthly Principal, Class M Monthly Principal and Class B Monthly Principal), and (z) the Class C Principal Balance.

Section 5.4  Application of Available Finance Charge Collections and Available Principal Collections.  On or before each Transfer Date, the Servicer shall instruct the Indenture Trustee in writing (which writing shall be substantially in the form of Exhibit B) to withdraw and the Indenture Trustee, acting in accordance with such instructions, shall withdraw on such Transfer Date or related Distribution Date, as applicable, to the extent of available funds, the amount required to be withdrawn from the Finance Charge Account, the Principal Account, the Principal Funding Account and the Distribution Account as follows:

(a)  On each Transfer Date, an amount equal to the Available Finance Charge Collections with respect to the related Distribution Date will be distributed or deposited in the following priority:

(i)  an amount equal to the unpaid Class A Monthly Interest for such Distribution Date shall be deposited by Servicer or the Indenture Trustee into the

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Distribution Account for distribution to the Class A Noteholders in accordance with Section 6.2;

(ii)  an amount equal to the unpaid Class A Non-Use Fee, if any, not paid by the Transferor pursuant to the Class A Note Purchase Agreement for the related Distribution Period plus any Class A Non-Use Fee due but not paid to the Class A Noteholders on any prior Distribution Date shall be deposited by Servicer or the Indenture Trustee into the Distribution Account for distribution to the Class A Noteholders in accordance with Section 6.2;

(iii)  an amount equal to the Class A Rated Additional Amounts, if any, for the related Distribution Period plus any Class A Rated Additional Amounts due but not paid to the Class A Noteholders on any prior Distribution Date shall be deposited by Servicer or the Indenture Trustee into the Distribution Account for distribution to the Class A Noteholders in accordance with Section 6.2;

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

(v)  an amount equal to the unpaid Class M Monthly Interest for such Distribution Date, plus any Class M Deficiency Amount, plus the amount of any Class M Additional Interest for such Distribution Date, plus the amount of any Class M Additional Interest previously due but not distributed to Class M Noteholders on a prior Distribution Date shall be deposited by the Servicer or Indenture Trustee into the Distribution Account;

(vi)  an amount equal to the unpaid Class B Monthly Interest for such Distribution Date, plus any Class B Deficiency Amount, plus the amount of any Class B Additional Interest for such Distribution Date, plus the amount of any Class B Additional Interest previously due but not distributed to Class B Noteholders on a prior Distribution Date shall be deposited by the Servicer or Indenture Trustee into the Distribution Account;

(vii)  an amount equal to the unpaid Class C Monthly Interest for such Distribution Date, plus any Class C Deficiency Amount, plus the amount of any Class C Additional Interest for such Distribution Date, plus the amount of any Class C Additional Interest previously due but not distributed to Class C Noteholders on a prior Distribution Date shall be deposited by the Servicer or Indenture Trustee into the Distribution Account;

(viii)  an amount equal to the Aggregate Investor Default Amount and any Investor Uncovered Dilution Amount for such Distribution Date shall be treated as a portion of Available Principal Collections for such Distribution Date and, during the Controlled Amortization Period or the Early Amortization Period, deposited into the Principal Account on the related Transfer Date to the extent needed to pay Monthly Principal on the related Distribution Date;

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(ix)  an amount equal to the sum of the aggregate amount of Investor Charge-Offs and the amount of Reallocated Principal Collections which have not been previously reimbursed pursuant to this clause (ix) shall be treated as a portion of Available Principal Collections for such Distribution Date and, during the Controlled Amortization Period or the Early Amortization Period, deposited into the Principal Account on the related Transfer Date to the extent needed to pay Monthly Principal on the related Distribution Date;

(x)  an amount equal to the amounts required to be deposited in the Spread Account pursuant to subsection 5.10(f) shall be deposited into the Spread Account as provided in subsection 5.10(f);

(xi)  an amount equal to the aggregate Class A Unrated Additional Amounts will be paid to the Class A Noteholders; and, in the event of any shortfall in the amount of Available Finance Charge Collections available for distribution in respect of Class A Unrated Additional Amounts, (x) the Available Finance Charge Collections shall be allocated ratably to each Class A Ownership Tranche in accordance with its Class A Principal Balance and (y) any Available Finance Charge Collections allocated pursuant to clause (x) to any Class A Ownership Tranche in excess of its Class A Unrated Additional Amounts shall be reallocated to each Class A Ownership Tranche that has a remaining shortfall in the Available Finance Charge Collections allocated to it pursuant to clause (xii) in order to cover its Class A Unrated Additional Amounts, which reallocation shall be made ratably in accordance with the portion of the Principal Balances of all remaining Class A Ownership Tranches represented by the Principal Balance of such remaining Class A Ownership Tranche;

(xii)  an amount equal to any payments owed to any Class M Noteholders or any other Person pursuant to any Class M Note Purchase Agreement shall be paid to such Class M Noteholder or other Person;

(xiii)  an amount equal to any payments owed to any Class B Noteholders or any other Person pursuant to the Class B Note Purchase Agreement shall be paid to such Class B Noteholder or other Person;

(xiv)  an amount equal to any payments owed to any Class C Noteholders or any other Person pursuant to the Class C Note Purchase Agreement shall be paid to such Class C Noteholder or other Person; and

(xv)  the balance, if any, will constitute a portion of Excess Finance Charge Collections for such Distribution Date.

(b)  During the Revolving Period, an amount equal to the Available Principal Collections for the related Monthly Period will be treated as Shared Principal Collections and applied in accordance with Section 8.5 of the Indenture; provided, however, during any Mandatory Limited Amortization Period and on the Non-Renewing Purchaser Scheduled Distribution Date, an amount equal to  the Available Principal Collections for the related Monthly Period shall be distributed or deposited in the following order of priority:

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(i)  an amount equal to the Class A Monthly Principal shall be deposited into the Distribution Account on such Transfer Date for payment to the Class A Noteholders in each Class A Ownership Group that is a Non-Renewing Ownership Group, on a pro rata basis, until the Non-Renewing Purchaser Class A Principal Balance has been reduced to zero;

(ii)  an amount equal to the Class M Monthly Principal shall be deposited into the Distribution Account on such Transfer Date for payment to the Class M Noteholders in each  Class M Ownership Group that is a Non-Renewing Ownership Group, on a pro rata basis, until the Non-Renewing Purchaser Class M Principal Balance has been reduced to zero; and

(iii)  the balance shall be treated as Shared Principal Collections and applied in accordance with Section 8.5 of the Indenture.

(c)  On each Transfer Date following any Monthly Period during the Controlled Amortization Period or the Early Amortization Period, an amount equal to the Available Principal Collections for the related Monthly Period shall be distributed or deposited in the following order of priority:

(i)  an amount equal to the Class A Monthly Principal for such Transfer Date shall be deposited into the Distribution Account on such Transfer Date and on each subsequent Transfer Date for payment to the Class A Noteholders on the related Distribution Date until the Class A Principal Balance has been paid in full;

(ii)  an amount equal to the Class M Monthly Principal for such Transfer Date, if any, shall be deposited into the Distribution Account on such Transfer Date and on each subsequent Transfer Date for payment to the Class M Noteholders on the related Distribution Date until the Class M Principal Balance has been paid in full;

(iii)  an amount equal to the Class B Monthly Principal for such Transfer Date, if any, shall be deposited into the Distribution Account on such Transfer Date and on each subsequent Transfer Date for payment to the Class B Noteholders on the related Distribution Date until the Class B Principal Balance has been paid in full;

(iv)  an amount equal to the Class C Monthly Principal for such Transfer Date, if any, shall be deposited into the Distribution Account on such Transfer Date and on each subsequent Transfer Date for payment to the Class C Noteholders on the related Distribution Date until the Class C Principal Balance has been paid in full; and

(v)  the balance shall be treated as Shared Principal Collections and applied in accordance with Section 8.5 of the Indenture.

(d)  On each Distribution Date, the Indenture Trustee shall pay in accordance with Section 6.2 to the Class A Noteholders from the Distribution Account, the amount deposited into the Distribution Account pursuant to clauses 5.4(a)(i) through (iii) and (xi) on the preceding Transfer Date, to the Class M Noteholders from the Distribution Account, the amount deposited into the Distribution Account pursuant to clauses 5.4(a)(v) and (xii), to the Class B Noteholders

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from the Distribution Account, the amount deposited into the Distribution Account pursuant to clauses 5.4(a)(vi) and (xiii) and to the Class C Noteholders from the Distribution Account, the amount deposited into the Distribution Account pursuant to clauses 5.4(a)(vii) and (xiv).

Section 5.5  Investor Charge-Offs.  On each Determination Date, the Servicer shall calculate the Aggregate Investor Default Amount and any Investor Uncovered Dilution Amount for the related Distribution Date.  If, on any Distribution Date, the sum of the Aggregate Investor Default Amount and any Investor Uncovered Dilution Amount for such Distribution Date exceeds the sum of the amount of Available Finance Charge Collections with respect to such Distribution Date, the Collateral Amount will be reduced (but not below zero) by the amount of such excess (such reduction, an "Investor Charge-Off").

Section 5.6  Reallocated Principal Collections.  On each Transfer Date, the Servicer shall apply, or shall instruct the Indenture Trustee in writing to apply, Reallocated Principal Collections with respect to that Transfer Date, to fund any deficiency pursuant to and in the priority set forth in clauses 5.4(a)(i) through (v) after giving effect to any withdrawal from the Spread Account to cover such payments.  On each Transfer Date, the Collateral Amount shall be reduced by the amount of Reallocated Principal Collections for such Transfer Date.

Section 5.7  Excess Finance Charge Collections.  Series 2009-VFN shall be an Excess Allocation Series with respect to Group One only.  For this purpose, each outstanding series of certificates issued by World Financial Network Credit Card Master Trust (other than series represented by the Collateral Certificate) shall be deemed to be a Series in Group One. Subject to Section 8.6 of the Indenture, Excess Finance Charge Collections with respect to the Excess Allocation Series in Group One for any Transfer Date will be allocated to Series 2009-VFN in an amount equal to the product of (x) the aggregate amount of Excess Finance Charge Collections with respect to all the Excess Allocation Series in Group One for such Distribution Date and (y) a fraction, the numerator of which is the Finance Charge Shortfall for Series 2009-VFN for such Distribution Date and the denominator of which is the aggregate amount of Finance Charge Shortfalls for all the Excess Allocation Series in Group One for such Distribution Date.  The "Finance Charge Shortfall" for Series 2009-VFN for any Distribution Date will be equal to the excess, if any, of (a) the full amount required to be paid, without duplication, pursuant to clauses 5.4(a)(i) through (ix) on such Distribution Date over (b) the Available Finance Charge Collections with respect to such Distribution Date (excluding any portion thereof attributable to Excess Finance Charge Collections).

Section 5.8  Shared Principal Collections.  Subject to Section 4.4 of the Pooling and Servicing Agreement and Section 8.5 of the Indenture, Shared Principal Collections allocable to Series 2009-VFN on any Transfer Date shall equal the product of (x) the aggregate amount of Shared Principal Collections with respect to all Principal Sharing Series for such Transfer Date and (y) a fraction, the numerator of which is the Principal Shortfall for Series 2009-VFN for such Transfer Date and the denominator of which is the aggregate amount of Principal Shortfalls for all the Series which are Principal Sharing Series for such Transfer Date.  For this purpose, each outstanding series of certificates issued by World Financial Network Credit Card Master Trust (other than series represented by the Collateral Certificate) shall be deemed to be a Principal Sharing Series.  The "Principal Shortfall" for Series 2009-VFN for any Transfer Date shall equal, the excess, if any, of the sum, without duplication, of any Mandatory Limited Payment Amount,

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Optional Amortization Amounts, Class A Monthly Principal, Class M Monthly Principal, Class B Monthly Principal and Class C Monthly Principal with respect to such Transfer Date over the amount of Available Principal Collections for such Transfer Date (excluding any portion thereof attributable to Shared Principal Collections).

Section 5.9  Certain Series Accounts.

(a)  The Indenture Trustee shall establish and maintain with an Eligible Institution, which may be the Indenture Trustee in the name of the Trust, on behalf of the Trust, for the benefit of the Noteholders, three segregated trust accounts with such Eligible Institution (the "Finance Charge Account", the "Principal Account" and the "Distribution Account"), bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Series 2009-VFN Noteholders.  The Indenture Trustee shall possess all right, title and interest in all funds on deposit from time to time in the Finance Charge Account, the Principal Account and the Distribution Account and in all proceeds thereof.  The Finance Charge Account, the Principal Account and the Distribution Account shall be under the sole dominion and control of the Indenture Trustee for the benefit of the Series 2009-VFN Noteholders.  If at any time the institution holding the Finance Charge Account, the Principal Account and the Distribution Account ceases to be an Eligible Institution, the Transferor shall notify the Indenture Trustee in writing, and the Indenture Trustee upon being notified (or the Servicer on its behalf) shall, within ten (10) Business Days, establish a new Finance Charge Account, a new Principal Account, a new Principal Accumulation Account and a new Distribution Account meeting the conditions specified above with an Eligible Institution, and shall transfer any cash or any investments to such new Finance Charge Account, new Principal Account, new Principal Accumulation Account and new Distribution Account.  The Indenture Trustee, at the written direction of the Servicer, shall make withdrawals from the Finance Charge Account, the Principal Account and the Distribution Account from time to time, in the amounts and for the purposes set forth in this Indenture Supplement.  Indenture Trustee at all times shall maintain accurate records reflecting each transaction in the Finance Charge Account, the Principal Account and the Distribution Account.

(b)  Funds on deposit in the Finance Charge Account, the Principal Account and the Distribution Account, from time to time shall be invested and reinvested at the direction of the Servicer by the Indenture Trustee in Eligible Investments that will mature so that such funds will be available for withdrawal on or prior to the following Transfer Date.

The Indenture Trustee shall hold such of the Eligible Investments as consists of instruments, deposit accounts, negotiable documents, money, goods, letters of credit, and advices of credit in the State of New York and/or Illinois. The Indenture Trustee shall hold such of the Eligible Investments as constitutes investment property through a securities intermediary, which securities intermediary shall agree with the Indenture Trustee that (a) such investment property shall at all times be credited to a securities account of the Indenture Trustee, (b) such securities intermediary shall treat the Indenture Trustee as entitled to exercise the rights that comprise each financial asset credited to such securities account, (c) all property credited to such securities account shall be treated as a financial asset, (d) such securities intermediary shall comply with entitlement orders originated by the Indenture Trustee without the further consent of any other person or entity, (e) such securities intermediary will not agree with any person or entity other

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than the Indenture Trustee to comply with entitlement orders originated by such other person or entity, (f) such securities accounts and the property credited thereto shall not be subject to any lien, security interest or right of set-off in favor of such securities intermediary or anyone claiming through it (other than the Indenture Trustee), and (g) such agreement shall be governed by the laws of the State of New York. Terms used in the preceding sentence that are defined in the New York UCC and not otherwise defined herein shall have the meaning set forth in the New York UCC.

Section 5.10  Spread Account.

(a)  On or prior to the Closing Date, the Indenture Trustee shall establish and maintain with an Eligible Institution, which may be the Indenture Trustee in the name of the Trust, on behalf of the Trust, for the benefit of the Class B Noteholders and the Transferor, a segregated account (the "Spread Account"), bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Class B Noteholders and the Transferor.  Except as otherwise provided in this Section 5.10, the Indenture Trustee shall possess all right, title and interest in all funds on deposit from time to time in the Spread Account and in all proceeds thereof.  The Spread Account shall be under the sole dominion and control of the Indenture Trustee for the benefit of the Class B Noteholders and the holder of the Transferor Interest.  If at any time the institution holding the Spread Account ceases to be an Eligible Institution, the Servicer shall notify the Indenture Trustee in writing, and the Indenture Trustee upon being notified (or the Servicer on its behalf) shall, within ten (10) Business Days (or such longer period as to which the Rating Agencies may consent) establish a new Spread Account meeting the conditions specified above with an Eligible Institution and shall transfer any cash or any investments to such new Spread Account.  The Indenture Trustee, at the written direction of the Servicer, shall (i) make withdrawals from the Spread Account from time to time in an amount up to the Available Spread Account Amount at such time, for the purposes set forth in this Indenture Supplement, and (ii) on each Transfer Date prior to termination of the Spread Account, make a deposit into the Spread Account in the amount specified in, and otherwise in accordance with, subsection 5.10(e).

(b)  Funds on deposit in the Spread Account shall be invested at the written direction of the Servicer by the Indenture Trustee in Eligible Investments.  Funds on deposit in the Spread Account on any Transfer Date, after giving effect to any withdrawals from and deposits to the Spread Account on such Transfer Date, shall be invested in such investments that will mature so that such funds will be available for withdrawal on or prior to the following Transfer Date.

The Indenture Trustee shall hold such of the Eligible Investments as consists of instruments, deposit accounts, negotiable documents, money, goods, letters of credit, and advices of credit in the State of New York. The Indenture Trustee shall hold such of the Eligible Investments as constitutes investment property through a securities intermediary, which securities intermediary shall agree with the Indenture Trustee that (a) such investment property shall at all times be credited to a securities account of the Indenture Trustee, (b) such securities intermediary shall treat the Indenture Trustee as entitled to exercise the rights that comprise each financial asset credited to such securities account, (c) all property credited to such securities account shall be treated as a financial asset, (d) such securities intermediary shall comply with entitlement orders originated by the Indenture Trustee without the further consent of any other

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person or entity, (e) such securities intermediary will not agree with any person or entity other than the Indenture Trustee to comply with entitlement orders originated by such other person or entity, (f) such securities accounts and the property credited thereto shall not be subject to any lien, security interest, or right of set-off in favor of such securities intermediary or anyone claiming through it (other than the Indenture Trustee), and (g) such agreement shall be governed by the laws of the State of New York. Terms used in the preceding sentence that are defined in the New York UCC and not otherwise defined herein shall have the meaning set forth in the New York UCC. Except as permitted by this subsection 5.10(b), the Indenture Trustee shall not hold Eligible Investments through an agent or a nominee.

On each Transfer Date (but subject to subsection 5.10(c)), the Investment Earnings, if any, accrued since the preceding Transfer Date on funds on deposit in the Spread Account shall be paid to the holders of the Transferor Interest by the Indenture Trustee upon written direction of the Servicer.  For purposes of determining the availability of funds or the balance in the Spread Account for any reason under this Indenture Supplement (subject to subsection 5.10(c)), all Investment Earnings shall be deemed not to be available or on deposit; provided that after the maturity of the Series 2009-VFN Notes has been accelerated as a result of an Event of Default, all Investment Earnings shall be added to the balance on deposit in the Spread Account and treated like the rest of the Available Spread Account Amount.

(c)  If, on any Transfer Date, the aggregate amount of Available Finance Charge Collections is less than the aggregate amount required to be deposited pursuant to clause 5.4(a)(x), the Indenture Trustee, at the written direction of the Servicer, shall withdraw from the Spread Account the amount of such deficiency up to the Available Spread Account Amount and, if the Available Spread Account Amount is less than such deficiency, Investment Earnings credited to the Spread Account, and deposit such amount in the Distribution Account for payment to the Class B Noteholders in respect of interest on the Class B Notes.

(d)  On the earlier of Series Termination Date and the date on which the Class A Principal Balance and Class M Principal Balance have been paid in full, after applying any funds on deposit in the Spread Account as described in subsection 5.10(c), the Indenture Trustee at the written direction of the Servicer shall withdraw from the Spread Account an amount equal to the lesser of (i) the Class B Principal Balance (after any payments to be made pursuant to subsection 5.4(c) on such date) and (ii) the Available Spread Account Amount and, if the Available Spread Account Amount is not sufficient to reduce the Class B Principal Balance to zero, Investment Earnings credited to the Spread Account up to the amount required to reduce the Class B Principal Balance to zero, and the Indenture Trustee upon the written direction of the Servicer or the Servicer shall deposit such amounts into the Collection Account for distribution to the Class B Noteholders in accordance with subsection 6.2(c).

(e)  On any day following the occurrence of an Event of Default with respect to Series 2009-VFN and acceleration of the maturity of the Series 2009-VFN Notes pursuant to Section 5.3 of the Indenture, Servicer shall withdraw from the Spread Account an amount equal to the Available Spread Account Amount and Indenture Trustee or Servicer shall deposit such amounts into the Distribution Account for distribution to the Class B Noteholders, the Class A Noteholders and the Class M Noteholders, in that order of priority, in accordance with Section 6.2, to fund any shortfalls in amounts owed to such Noteholders.

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(f)  If on any Transfer Date, after giving effect to all withdrawals from the Spread Account, the Available Spread Account Amount is less than the Required Spread Account Amount then in effect, Available Finance Charge Collections, to the extent available, shall be deposited into the Spread Account pursuant to clause 5.4(a)(x) up to the amount of the Spread Account Deficiency.

(g)  If, after giving effect to all deposits to and withdrawals from the Spread Account with respect to any Transfer Date, the amount on deposit in the Spread Account exceeds the Required Spread Account Amount, the Indenture Trustee acting in accordance with the instructions of the Servicer, shall withdraw an amount equal to such excess from the Spread Account and distribute such amount to the Transferor.  On the date on which the Class B Principal Balance has been paid in full, after making any payments to the Noteholders required pursuant to subsections 5.10(c), (d) and (e), the Indenture Trustee, at the written direction of Servicer, shall withdraw from the Spread Account all amounts then remaining in the Spread Account and pay such amounts to the holders of the Transferor Interest.

Section 5.11  Investment Instructions.  Any investment instructions required to be given to the Indenture Trustee pursuant to the terms hereof must be given to the Indenture Trustee no later than 11:00 a.m., New York City time, on the date such investment is to be made.  In the event the Indenture Trustee receives such investment instruction later than such time, the Indenture Trustee may, but shall have no obligation to, make such investment.  In the event the Indenture Trustee is unable to make an investment required in an investment instruction received by the Indenture Trustee after 11:00 a.m., New York City time, on such day, such investment shall be made by the Indenture Trustee on the next succeeding Business Day.  In no event shall the Indenture Trustee be liable for any investment not made pursuant to investment instructions received after 11:00 a.m., New York City time, on the day such investment is requested to be made.  If investment instructions are not given with respect to funds in any Accounts, such funds shall remain uninvested until instructions are delivered to the Indenture Trustee in accordance with the terms hereof.

Section 5.12  Determination of LIBOR.

(a)  On each LIBOR Determination Date in respect of a Distribution Period, the Indenture Trustee shall determine LIBOR on the basis of the rate for deposits in United States dollars for a period of the Designated Maturity which appears on the Designated LIBOR Page as of 11:00 a.m., London time, on such date.  If such rate does not appear on the Designated LIBOR Page, the rate for that Distribution Period Determination Date shall be determined on the basis of the rates at which deposits in United States 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 a period of the Designated Maturity.  The Indenture Trustee shall request the principal London office of each of the Reference Banks to provide a quotation of its rate.  If at least two (2) such quotations are provided, the rate for that Distribution Period shall be the arithmetic mean of the quotations.  If fewer than two (2) quotations are provided as requested, the rate for that Distribution Period will be the arithmetic mean of the rates quoted by major banks in New York City, selected by the Servicer, at approximately 11:00 a.m., New York City time, on that day for loans in United States dollars to leading European banks for a period of the Designated Maturity.

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(b)  LIBOR applicable to the then current and the immediately preceding Distribution Periods may be obtained by telephoning the Indenture Trustee at its corporate trust office at (312) 827-8500 or such other telephone number as shall be designated by the Indenture Trustee for such purpose by prior written notice by the Indenture Trustee to the Lead Agent each Series 2009-VFN Noteholder from time to time.

(c)  On each LIBOR Determination Date, the Indenture Trustee shall send to the Servicer by facsimile transmission or electronic mail notification of LIBOR for the following Distribution Period.

ARTICLE VI.

Delivery of Series 2009-VFN Notes; Distributions; Reports to Series 2009-VFN Noteholders

Section 6.1  Delivery and Payment for the Series 2009-VFN Notes.  The Issuer shall execute and issue, and the Indenture Trustee shall authenticate, the Series 2009-VFN Notes in accordance with Section 2.3 of the Indenture.  The Indenture Trustee shall deliver the Series 2009-VFN Notes to or upon the written order of the Trust when so authenticated.

Section 6.2  Distributions.

(a)  On each Distribution Date, the Indenture Trustee shall distribute to each Class A Noteholder of record on the related Record Date (other than as provided in Section 11.2 of the Indenture) such Class A Noteholder's portion (determined in accordance with Section 4.2 and Article V) of the amounts on deposit in the Distribution Account that are allocated and available on such Distribution Date and as are payable to the Class A Noteholders pursuant to this Indenture Supplement.

(b)  On each Distribution Date, the Indenture Trustee shall distribute to each Class M Noteholder of record on the related Record Date (other than as provided in Section 11.2 of the Indenture) such Class M Noteholder's pro rata share of the amounts on deposit in the Distribution Account that are allocated and available on such Distribution Date and as are payable to the Class M Noteholders pursuant to this Indenture Supplement.

(c)  On each Distribution Date, the Indenture Trustee shall distribute to each Class B Noteholder of record on the related Record Date (other than as provided in Section 11.2 of the Indenture) such Class B Noteholder's pro ratashare of the amounts on deposit in the Distribution Account that are allocated and available on such Distribution Date and as are payable to the Class B Noteholders pursuant to this Indenture Supplement.

(d)  On each Distribution Date, the Indenture Trustee shall distribute to each Class C Noteholder of record on the related Record Date (other than as provided in Section 11.2 of the Indenture) such Class C Noteholder's pro rata share of the amounts on deposit in the Distribution Account that are allocated and available on such Distribution Date and as are payable to the Class C Noteholders pursuant to this Indenture Supplement.

(e)  On each Distribution Date, if a shortfall in the amount of Available Finance Charge Collections available for distribution in accordance with any payment priority in clauses

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5.4(a)(i), (ii), (iii) or (xi) exists, the Available Finance Charge Collections for such payment priority shall be allocated (a) ratably to each Class A Ownership Group based on the relative proportion of their respective Tranche Invested Amounts as a percentage of the Class A Principal Balance and (b) any Available Finance Charge Collections allocated pursuant to clause (a) to any Class A Ownership Group in excess of the amount owed to such Class A Ownership Group for the related payment priority shall be reallocated to each Class A Ownership Group that has a remaining shortfall in the Available Finance Charge Collections allocated to it pursuant to clause (a) in order to cover the amount owed to such Class A Ownership Group for the related payment priority, which reallocation shall be made ratably based on the relative proportion of the respective Tranche Invested Amounts of such remaining Class A Ownership Groups as a percentage of the Class A Principal Balance of the remaining Class A Ownership Groups. The amount of Available Principal Collections available for distribution pursuant to Section 5.4(c) shall be allocated to each Class A Ownership Group based on a pro rata basis based on the relative proportion of their respective Tranche Invested Amounts as a percentage of the Class A Principal Balance.

(f)  The distributions to be made pursuant to this Section 6.2 are subject to the provisions of Sections 2.6, 6.1 and 7.1 of the Transfer and Servicing Agreement, Section 11.2 of the Indenture and Section 7.1 of this Indenture Supplement.

(g)  All payments set forth herein shall be made by wire transfer of immediately available funds, provided that the Paying Agent, not less than five Business Days prior to the Record Date relating to the first distribution to such Series 2009-VFN Noteholder, has been furnished with appropriate wiring instructions in writing.

Section 6.3  Reports and Statements to Series 2009-VFN Noteholders.

(a)  On each Distribution Date, the Indenture Trustee shall forward to the Lead Agent and each Series 2009-VFN Noteholder a statement substantially in the form of Exhibit C prepared by the Servicer.

(b)  Not later than the second Business Day preceding each Distribution Date, the Servicer shall deliver to the Owner Trustee, the Indenture Trustee and each Rating Agency (i) a statement substantially in the form of Exhibit B prepared by the Servicer and (ii)  a certificate of an Authorized Officer substantially in the form of Exhibit D; provided that the Servicer may amend the form of Exhibit B from time to time, with the prior written consent of the Indenture Trustee.

(c)  A copy of each statement or certificate provided pursuant to paragraph (a) or (b) may be obtained by any Series 2009-VFN Noteholder by a request in writing to the Servicer.

(d)  On or before January 31 of each calendar year, beginning with January 31, 2010, the Indenture Trustee shall furnish or cause to be furnished to each Person who at any time during the preceding calendar year was a Series 2009-VFN Noteholder, a statement prepared by the Servicer containing the information which is required to be contained in the statement to Series 2009-VFN Noteholders, as set forth in paragraph (a) above, aggregated for such calendar year or the applicable portion thereof during which such Person was a Series 2009-VFN

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Noteholder, together with other information as is required to be provided by an issuer of indebtedness under the Code.  Such obligation of the Indenture Trustee shall be deemed to have been satisfied to the extent that substantially comparable information shall be provided by the Servicer pursuant to any requirements of the Code as from time to time in effect.

ARTICLE VII.

Series 2009-VFN Early Amortization Events

Section 7.1  Series 2009-VFN Early Amortization Events.  If any one of the following events shall occur with respect to the Series 2009-VFN Notes:

(a)  failure on the part of Transferor or the "Transferor" under the Pooling and Servicing Agreement (i) to make any payment or deposit required to be made by it by the terms of the Pooling and Servicing Agreement, the Collateral Series Supplement, the Transfer and Servicing Agreement, the Class A Note Purchase Agreement, the Indenture or this Indenture Supplement on or before the date occurring five (5) Business Days after the date such payment or deposit is required to be made therein or herein or (ii) duly to observe or perform in any material respect any other of its covenants or agreements set forth in the Transfer and Servicing Agreement, the Class A Note Purchase Agreement, the Pooling and Servicing Agreement, the Indenture or this Indenture Supplement, which failure has a material adverse effect on the Series 2009-VFN Noteholders and which continues unremedied for a period of thirty (30) days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Transferor by the Indenture Trustee, or to the Transferor and the Indenture Trustee by any Holder of the Series 2009-VFN Notes;

(b)  any representation or warranty made by Transferor or the "Transferor" under the Pooling and Servicing Agreement, in the Transfer and Servicing Agreement, the Class A Note Purchase Agreement or the Pooling and Servicing Agreement or any information contained in a computer file or microfiche list required to be delivered by it pursuant to Section 2.1 or subsection 2.6(c) of the Transfer and Servicing Agreement or Section 2.1 or subsection 2.6(c) of the Pooling and Servicing Agreement shall prove to have been incorrect in any material respect when made or when delivered, which continues to be incorrect in any material respect for a period of thirty (30) days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Transferor by the Indenture Trustee, or to the Transferor and the Indenture Trustee by any Holder of the Series 2009-VFN Notes and as a result of which the interests of the Series 2009-VFN Noteholders are materially and adversely affected for such period; provided, however, that a Series 2009-VFN Early Amortization Event pursuant to this subsection 6.1(b) shall not be deemed to have occurred hereunder if the Transferor has accepted reassignment of the related Receivable, or all of such Receivables, if applicable, during such period in accordance with the provisions of the Transfer and Servicing Agreement or the Pooling and Servicing Agreement;

(c)  the Portfolio Yield averaged over three consecutive Monthly Periods is less than the Base Rate averaged over such period;

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(d)  a failure by Transferor or the "Transferor" under the Pooling and Servicing Agreement to convey Receivables in Additional Accounts or Participations to the Receivables Trust within five (5) Business Days after the day on which it is required to convey such Receivables pursuant to subsection 2.6(b) of the Transfer and Servicing Agreement or subsection 2.8(b) of the Pooling and Servicing Agreement, respectively, provided that such failure shall not give rise to an Early Amortization Event if, prior to the date on which such conveyance was required to be completed, Transferor causes a reduction in the principal balance of any Variable Interest to occur, so that, after giving effect to that reduction (i) the Transferor Amount is not less than the Minimum Transferor Amount (including the Additional Minimum Transferor Amount, if any) and (ii) the sum of the aggregate amount of Principal Receivables plus amounts on deposit in the Excess Funding Account is not less than the Required Principal Balance;

(e)  any Servicer Default or any "Servicer Default" under the Pooling and Servicing Agreement shall occur which would have a material adverse effect on the Series 2009-VFN Holders;

(f)  the Class A Principal Balance shall not be paid in full on the Class A Scheduled Final Payment Date;

(g)  a Change in Control has occurred;

(h)  as on any Determination Date:

(i)  as of any date of determination, the Quarterly Payment Rate Percentage is less than   %; and

(ii)  the percentage equivalent of a fraction (A) the numerator of which is the total Principal Receivables relating to any one Merchant (other than Redcats, Limited Brands or any Merchant affiliated with any of the foregoing) as of the end of any related Monthly Period and (B) the denominator of which is the aggregate total Principal Receivables as of the end of such related Monthly Period exceeds   %.

(i)  the Pension Benefit Guaranty Corporation shall file notice of a lien pursuant to Section 4068 of the Employee Retirement Income Security Act of 1974 with regard to any of the assets of Comenity Bank, which lien shall secure a liability in excess of $   and shall not have been released within 40 days;

(j)  a default shall have occurred and be continuing under any instrument or agreement evidencing or securing indebtedness for borrowed money of Comenity Bank in excess of $   which default (i) is a default in payment of any principal or interest on such indebtedness when due or within any applicable grace period or (ii) shall have resulted in acceleration of the maturity of such indebtedness; or

(k)  without limiting the foregoing, the occurrence of an Event of Default with respect to Series 2009-VFN and acceleration of the maturity of the Series 2009-VFN Notes pursuant to Section 5.3 of the Indenture.

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then, in the case of any event described in subsections 7.1(a), (b), (e), (h)(ii), (i) or (j) of this Indenture Supplement, after the applicable grace period set forth in such Sections, either (i) Indenture Trustee or (ii) the Majority Noteholders by notice then given in writing to Transferor and Servicer (and to the Indenture Trustee if given by the Holders) may declare that an early amortization event (a "Early Amortization Event") has occurred as of the date of such notice, and in the case of any event described in subsections 7.1(c), (d), (f), (g), (h)(i) or (k)ofthis Indenture Supplement, an Early Amortization Event shall occur without any notice or other action on the part of Indenture Trustee or the Series 2009-VFN Noteholders immediately upon the occurrence of such event.

In addition to the other consequences of a Series 2009-VFN Early Amortization Event specified herein or a Trust Early Amortization Event, from and after the occurrence of any Series 2009-VFN Early Amortization Event or a Trust Early Amortization Event (until the same shall have been waived by all of the Series 2009-VFN Noteholders), with respect to any Account included in the Approved Portfolios, Transferor shall no longer permit or require Merchant Adjustment Payments (except those owed by Redcats) or In-Store Payments to be netted against amounts owed to Transferor by the applicable Merchant but shall instead exercise its rights to require each Merchant (other than Redcats) to transfer to Servicer, not later than the third Business Day following receipt by such Merchant of any In-Store Payments or the occurrence of any event giving rise to Merchant Adjustment Payments, an amount equal to the sum of such In-Store Payments and Merchant Adjustment Payments. In addition, if any bankruptcy or other insolvency proceeding has been commenced against a Merchant, Servicer shall require that Merchant to (i) stop accepting In-Store Payments and (ii) inform Obligors who wish to make In-Store Payments that payment should instead be sent to Servicer, provided that Servicer shall not be required to take such action if (x) Servicer or Trustee has been provided a letter of credit, surety bond or other similar instrument covering collection risk with respect to In-Store Payments, (y) the Rating Agency Condition is satisfied with respect to such letter of credit, surety bond or other similar instrument and (z) each of the Series 2009-VFN Noteholders consents to such arrangement.

ARTICLE VIII.

Redemption of Series 2009-VFN Notes; Series Termination

Section 8.1   Optional Redemption of Series 2009-VFN Notes; Final Distributions.

(a)  On any Business Day occurring on or after the date on which the outstanding principal balance of the Series 2009-VFN Notes is reduced to 5% or less of the greatest ever Note Principal Balance, the Servicer shall have the option to redeem the Series 2009-VFN Notes, at a purchase price equal to (i) if such day is a Distribution Date, the Reassignment Amount for such Distribution Date or (ii) if such day is not a Distribution Date, the Reassignment Amount for the Distribution Date following such day.

(b)  Servicer shall give the Indenture Trustee at least thirty (30) days prior written notice of the date on which Servicer intends to exercise such optional redemption.  Not later than 12:00 noon, New York City time, on such day Servicer shall deposit into the Collection Account in immediately available funds the excess of the Reassignment Amount over the amount, if any,

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on deposit in the Principal Account.  Such redemption option is subject to payment in full of the Reassignment Amount.  Following such deposit into the Collection Account in accordance with the foregoing, the Collateral Amount for Series 2009-VFN shall be reduced to zero and the Series 2009-VFN Noteholders shall have no further security interest in the Receivables.  The Reassignment Amount shall be distributed as set forth in subsection 8.1(d).

(c)           (i)  The amount to be paid by the Transferor with respect to Series 2009-VFN in connection with a reassignment of Receivables to the Transferor pursuant to subsection 2.4(e) of the Transfer and Servicing Agreement shall equal the Reassignment Amount for the first Distribution Date following the Monthly Period in which the reassignment obligation arises under the Transfer and Servicing Agreement.

(ii)  The amount to be paid by the Transferor with respect to Series 2009-VFN in connection with a repurchase of the Notes pursuant to Section 7.1 of the Transfer and Servicing Agreement shall equal the Reassignment Amount for the Distribution Date of such repurchase.

(d)  With respect to (a) the Reassignment Amount deposited into the Distribution Account pursuant to Section 8.1 or (b) the proceeds of any sale of Receivables pursuant to clause 5.5(a)(iii) of the Indenture with respect to Series 2009-VFN, the Indenture Trustee shall, in accordance with the written direction of the Servicer, not later than 12:00 noon, New York City time, on the related Distribution Date, make distributions of the following amounts (in the priority set forth below and, in each case, after giving effect to any deposits and distributions otherwise to be made on such date) in immediately available funds:  (i) (x) the Class A Principal Balance on such Distribution Date will be distributed to the Class A Noteholders and (y) an amount equal to the sum of (A) Class A Monthly Interest for such Distribution Date, (B) any Class A Monthly Interest previously due but not distributed to the Class A Noteholders on any prior Distribution Date, (C) Class A Non-Use Fees, if any, due and payable on such Distribution Date or any prior Distribution Date and (D) Class A Additional Amounts, if any, due and payable on such Distribution Date or any prior Distribution Date will be distributed to the Class A Noteholders, (ii)(x) the Class M Principal Balance on such Distribution Date will be distributed to the Class M Noteholders and (y) an amount equal to the sum of (A) Class M Monthly Interest for such Distribution Date, (B) any Class M Deficiency Amount for such Distribution Date, (C) the amount of Class M Additional Interest, if any, for such Distribution Date and any Class M Additional Interest previously due but not distributed to the Class M Noteholders on any prior Distribution Date, and (D) Class M Additional Amounts, if any, due and payable on such Distribution Date or any prior Distribution Date will be distributed to the Class M Noteholders, (iii)(x) the Class B Principal Balance on such Distribution Date will be distributed to the Class B Noteholders and (y) an amount equal to the sum of (A) Class B Monthly Interest for such Distribution Date, (B) any Class B Deficiency Amount for such Distribution Date, (C) the amount of Class B Additional Interest, if any, for such Distribution Date and any Class B Additional Interest previously due but not distributed to the Class B Noteholders on any prior Distribution Date, and (D) Class B Additional Amounts, if any, due and payable on such Distribution Date or any prior Distribution Date will be distributed to the Class B Noteholders, (iv)(x) the Class C Principal Balance on such Distribution Date will be distributed to the Class C Noteholders and (y) an amount equal to the sum of (A) Class C Monthly Interest for such Distribution Date, (B) any Class C Deficiency Amount for such

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Distribution Date, (C) the amount of Class C Additional Interest, if any, for such Distribution Date and any Class C Additional Interest previously due but not distributed to the Class C Noteholders on any prior Distribution Date, and (D) Class C Additional Amounts, if any, due and payable on such Distribution Date or any prior Distribution Date will be distributed to the Class C Noteholders, and (v) any excess shall be released to the Issuer.

Section 8.2  Series Termination.  The right of the Series 2009-VFN Noteholders to receive payments from the Trust will terminate on the first Business Day following the Series Termination Date.

ARTICLE IX.

Miscellaneous Provisions

Section 9.1  Ratification of Indenture; Amendments; Voting.

(a)  As supplemented by this Indenture Supplement, the Indenture is in all respects ratified and confirmed and the Indenture as so supplemented by this Indenture Supplement shall be read, taken and construed as one and the same instrument.  This Indenture Supplement may be amended only by a Supplemental Indenture entered in accordance with the terms of Section 10.1 or 10.2 of the Indenture.  For purposes of the application of Section 10.2 to any amendment of this Indenture Supplement, the Series 2009-VFN Noteholders shall be the only Noteholders whose vote shall be required.  The Transferor shall provide notice of any amendment to this Indenture Supplement to S&P.

(b)  In determining whether the Holders of Notes representing the requisite percentage of Class A Notes have given any consent or waiver hereunder or under any other Transaction Document, during the Revolving Period, Holders of Class A Notes representing the requisite percentage of both the Class A Note Principal Balance and the Class A Maximum Principal Balance shall be required to have given such consent or waiver.

Section 9.2  Form of Delivery of the Series 2009-VFN Notes.  The Class A Notes, the Class M Notes and the Class B Notes shall be Definitive Notes and shall be registered in the Note Register in the name of the initial purchasers of such Notes identified in the Note Purchase Agreements.

Section 9.3  Notices.  Any required notice shall be made to the Rating Agencies and the Noteholders at the following:

(a)  If to DBRS: DBRS, Inc., 140 Broadway, 35th Floor, New York, New York, 10005 and ABS_Surveillance@dbrs.com.

(b)  If to the Lead Agent, to the address specified in the applicable Note Purchase Agreement.

(c)  If to the Series 2009-VFN Noteholders, to the address specified in the applicable Note Purchase Agreement.

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Section 9.4  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 9.5  GOVERNING LAW.  THIS INDENTURE SUPPLEMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

Section 9.6  Limitation of Liability.  Notwithstanding any other provision herein or elsewhere, this Agreement has been executed and delivered by U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as Owner Trustee of the Trust, in no event shall U.S. Bank Trust 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 9.7  Rights of the Indenture Trustee.  The Indenture Trustee shall have herein the same rights, protections, indemnities and immunities as specified in the Master Indenture.

Section 9.8  Additional Provisions.  Notwithstanding anything to the contrary in any Transaction Document, until the Series Termination Date:

(a)  The Indenture Trustee shall not agree to any extension of the 60 day periods referred to in Section 2.4 or 3.3 of the Transfer and Servicing Agreement;

(b)  Notwithstanding subsection 3.3(j) of the Transfer and Servicing Agreement, neither Transferor nor Servicer will take any action to cause any Receivable to be evidenced by, or to constitute, chattel paper, and each represents that none of the Receivables is evidenced by, or constitutes, chattel paper.

(c)  Without the consent of each Class A Noteholder (which consent shall not be unreasonably withheld or delayed), Transferor shall not (i) engage in any transaction described in Section 4.2 of the Transfer and Servicing Agreement, (ii) designate additional or substitute Transferors or Credit Card Originators as permitted by Section 2.9 or 2.10 of the Transfer and Servicing Agreement, (iii) increase the percentage of Principal Receivables referred to in the proviso to clause (f) of the definition of "Eligible Account", (iv) amend any Transaction Document in a manner that adversely affects the Class A Noteholders, (v) amend the Transfer and Servicing Agreement to permit the addition of receivables arising in VISA, MasterCard or any other type of open end revolving credit card account other than those in the Identified Portfolio or (vi) amend this Indenture Supplement.

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(d)  The Additional Minimum Transferor Amount is hereby specified as an additional amount to be considered part of the Minimum Transferor Amount pursuant to clause (b) of the definition of Minimum Transferor Amount.

(e)  The Transferor may designate additional Approved Portfolios if (a) the Rating Agency Condition is satisfied with respect to that designation and (b) the Transferor delivers to the Indenture Trustee an Opinion of Counsel that all UCC financing statements or amendments required to perfect the interest of the Trust and, if the date of determination is prior to the Certificate Trust Termination Date, the Trustee in Receivables arising in accounts included in each such Additional Portfolio have been made.

Section 9.9  No Petition.  The Issuer and the Indenture Trustee, by entering into this Indenture Supplement, and each Series 2009-VFN Noteholder, by accepting a Series 2009-VFN Note, hereby covenant and agree that they will not at any time institute against the Issuer, or join in any institution against the Issuer of, any bankruptcy proceedings under any United States Federal or state bankruptcy or similar law in connection with any obligations relating to the Series 2009-VFN Noteholders, the Indenture or this Indenture Supplement; provided, however, that nothing herein shall prohibit the Indenture Trustee from filing proofs of claim or otherwise participating in such proceedings instituted by any other person.  The provisions of this Section 9.8 shall survive the termination of this Indenture Supplement.

Section 9.10  Additional Requirements for Registration of and Limitations on Transfer and Exchange of Notes.

(a)  All Transfers will be subject to the transfer restrictions set forth on the Notes.

(b)  No Transfer (or purported Transfer) of a Class M Note, Class B Note or Class C Note (or economic interest therein) shall be made by Comenity Bank, the Transferor or any person which is considered the same person as Comenity Bank or the Transferor for U.S. Federal income tax purposes (except to a person which is considered the same person as Comenity Bank for such purposes) and any such Transfer (or purported Transfer) of such Notes shall be void ab initio unless an Opinion of Counsel is first delivered to the Indenture Trustee to the effect that such Notes will constitute debt for U.S. federal income tax purposes.

 [SIGNATURE PAGE FOLLOWS]

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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:  U. S. Bank Trust National Association, not in

its individual capacity, but solely as Owner Trustee

By:  /s/ Annette Morgan

      Name:  Annette Morgan

       Title:  Assistant Vice President

UNION BANK, N.A., as Indenture Trustee

By:  /s/ Eva Aryeetey

      Name:  Eva Aryeetey

       Title:  Vice President

 

 

	 	
S-1

	
Indenture Supplement

Acknowledged and Accepted:

WFN CREDIT COMPANY, LLC

  as Transferor and as sole Class M Noteholder,

   Class B Noteholder and Class C Noteholder

By:  /s/ Ronald C. Reed

       Name: Ronald C. Reed

        Title: Vice President and Treasurer

 

	 	
S-2

	
Indenture Supplement

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