Document:

Exhibit
4.2

 

WORLD FINANCIAL NETWORK CREDIT CARD
MASTER NOTE TRUST

 

Issuer

 

And

 

BNY MIDWEST TRUST COMPANY

 

Indenture Trustee

 

 

Series 2004-C INDENTURE SUPPLEMENT

 

Dated as of
September 22, 2004

 

 

TABLE
OF CONTENTS

 

	
  ARTICLE I.

  	
  CREATION OF THE
  SERIES 2004-C NOTES

  	
   

  
	
   

  	
  Section 1.1

  	
  Designation

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II.

  	
  DEFINITIONS

  	
   

  
	
   

  	
  Section 2.1

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III.

  	
  NOTEHOLDER SERVICING FEE

  	
   

  
	
   

  	
  Section 3.1

  	
  Servicing Compensation

  	
   

  
	
   

  	
  Section 3.2

  	
  Representations and
  Warranties.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV.

  	
  RIGHTS
  OF SERIES 2004-C NOTEHOLDERS AND ALLOCATION AND APPLICATION OF COLLECTIONS

  	
   

  
	
   

  	
  Section 4.1

  	
  Collections and Allocations

  	
   

  
	
   

  	
  Section 4.2

  	
  Determination of
  Monthly Interest

  	
   

  
	
   

  	
  Section 4.3

  	
  Determination of
  Monthly Principal

  	
   

  
	
   

  	
  Section 4.4

  	
  Application
  of Available Finance Charge Collections and Available Principal Collections

  	
   

  
	
   

  	
  Section 4.5

  	
  Investor Charge-Offs

  	
   

  
	
   

  	
  Section 4.6

  	
  Reallocated Principal
  Collections

  	
   

  
	
   

  	
  Section 4.7

  	
  Excess Finance Charge
  Collections

  	
   

  
	
   

  	
  Section 4.8

  	
  Shared Principal
  Collections

  	
   

  
	
   

  	
  Section 4.9

  	
  Certain Series Accounts

  	
   

  
	
   

  	
  Section 4.10

  	
  Reserve Account

  	
   

  
	
   

  	
  Section 4.11

  	
  Cash Collateral Account

  	
   

  
	
   

  	
  Section 4.12

  	
  Spread Account

  	
   

  
	
   

  	
  Section 4.13

  	
  Investment Instructions

  	
   

  
	
   

  	
  Section 4.14

  	
  Controlled Accumulation
  Period

  	
   

  
	
   

  	
  Section 4.15

  	
  Suspension
  of Controlled Accumulation Period

  	
   

  
	
   

  	
  Section 4.16

  	
  Determination of LIBOR

  	
   

  
	
   

  	
  Section 4.17

  	
  Swaps.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V.

  	
  DELIVERY
  OF SERIES 2004-C NOTES; DISTRIBUTIONS; REPORTS TO SERIES 2004-C NOTEHOLDERS

  	
   

  
	
   

  	
  Section 5.1

  	
  Delivery
  and Payment for the Series 2004-C Notes

  	
   

  
	
   

  	
  Section 5.2

  	
  Distributions

  	
   

  

 

i

 

	
   

  	
  Section 5.3

  	
  Reports
  and Statements to Series 2004-C Noteholders

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI.

  	
  SERIES 2004-C
  EARLY AMORTIZATION EVENTS

  	
   

  
	
   

  	
  Section 6.1

  	
  Series 2004-C
  Early Amortization Events

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII.

  	
  REDEMPTION
  OF SERIES 2004-C NOTES; FINAL DISTRIBUTIONS; SERIES TERMINATION

  	
   

  
	
   

  	
  Section 7.1

  	
  Optional
  Redemption of Series 2004-C Notes; Final Distributions

  	
   

  
	
   

  	
  Section 7.2

  	
  Series Termination

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII.

  	
  MISCELLANEOUS
  PROVISIONS

  	
   

  
	
   

  	
  Section 8.1

  	
  Ratification of
  Indenture; Amendments

  	
   

  
	
   

  	
  Section 8.2

  	
  Form of
  Delivery of the Series 2004-C Notes

  	
   

  
	
   

  	
  Section 8.3

  	
  Counterparts

  	
   

  
	
   

  	
  Section 8.4

  	
  GOVERNING LAW

  	
   

  
	
   

  	
  Section 8.5

  	
  Limitation of Liability

  	
   

  
	
   

  	
  Section 8.6

  	
  Rights of the Indenture
  Trustee

  	
   

  
	
   

  	
  Section 8.7

  	
  Additional Provisions.

  	
   

  
	
   

  	
  Section 8.8

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

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT A-1

  	
   

  	
  FORM OF CLASS A NOTE

  	
   

  
	
  EXHIBIT A-2

  	
   

  	
  FORM OF CLASS M NOTE

  	
   

  
	
  EXHIBIT A-3

  	
   

  	
  FORM OF CLASS B NOTE

  	
   

  
	
  EXHIBIT A-4

  	
   

  	
  FORM OF CLASS C NOTE

  	
   

  
	
  EXHIBIT B

  	
   

  	
  FORM
  OF MONTHLY PAYMENT INSTRUCTIONS AND NOTIFICATION TO INDENTURE TRUSTEE

  	
   

  
	
  EXHIBIT C

  	
   

  	
  FORM OF MONTHLY
  NOTEHOLDERS’ STATEMENT

  	
   

  
	
  EXHIBIT D-1

  	
   

  	
  FORM OF CLASS A SWAP

  	
   

  
	
  EXHIBIT D-2

  	
   

  	
  FORM OF CLASS M SWAP

  	
   

  
	
  EXHIBIT D-3

  	
   

  	
  FORM OF CLASS B SWAP

  	
   

  
	
  EXHIBIT D-4

  	
   

  	
  FORM OF CLASS C SWAP

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE I

  	
   

  	
  PERFECTION
  REPRESENTATIONS, WARRANTIES AND COVENANTS

  	
   

  
						

 

ii

 

SERIES 2004-C INDENTURE
SUPPLEMENT, dated as of September 22, 2004 (the “Indenture Supplement”),
between WORLD FINANCIAL NETWORK CREDIT CARD MASTER NOTE TRUST, a statutory
trust organized and existing under the laws of the State of Delaware (herein,
the “Issuer” or the “Trust”), and BNY MIDWEST TRUST COMPANY, a trust
company organized and existing under the laws of the State of Illinois, not in
its individual capacity, but solely as indenture trustee (herein, together with
its successors in the trusts thereunder as provided in the Master Indenture
referred to below, the “Indenture Trustee”) under the Master Indenture,
dated as of August 1, 2001, between the Issuer and the Indenture Trustee,
as amended by Omnibus Amendment, dated as of March 31, 2003, among the
Transferor, the Issuer, World Financial Network National Bank, individually and
as Servicer, World Financial Network Credit Card Master Trust, BNY Midwest
Trust Company, as trustee of World Financial Network Credit Card Master Trust
and as Indenture Trustee, and as further amended by Supplemental Indenture No.
1, dated as of August 1, 2003, between the Issuer and the Indenture
Trustee (as amended, the “Indenture”, and, together with this Indenture
Supplement, the “Agreement”).

 

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

 

ARTICLE I.

 

Creation of the
Series 2004-C Notes

 

Section 1.1                                      Designation.

 

(a)                                  There
is hereby created and designated a Series of Notes to be issued pursuant to the
Indenture and this Indenture Supplement to be known as “World Financial
Network Credit Card Master Note Trust, Series 2004-C” or the “Series
2004-C Notes.”  The Series 2004-C
Notes shall be issued in four Classes, known as the “Class A Series 2004-C
Floating Rate Asset Backed Notes,” the “Class M Series 2004-C Floating
Rate Asset Backed Notes,” the “Class B Series 2004-C Floating Rate Asset
Backed Notes,” and the “Class C Series 2004-C Floating Rate Asset Backed
Notes.”

 

(b)                                 Series
2004-C shall be included in Group One and shall be a Principal Sharing
Series.  Series 2004-C shall be an
Excess Allocation Series with respect to Group One only.  Series 2004-C 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.

 

 

“Accumulation
Shortfall” means (a) for the first Distribution Date during the Controlled
Accumulation Period, zero; and (b) thereafter, for any Distribution Date during
the Controlled Accumulation Period, the excess, if any, of the Controlled
Deposit Amount for the previous Distribution Date over the amount deposited
into the Principal Accumulation Account pursuant to subsection 4.4(c)(i)
for the previous Distribution Date.

 

“Additional Interest”
means, for any Distribution Date, Class A Additional Interest, Class M
Additional Interest, Class B Additional Interest and Class C Additional
Interest for such Distribution Date.

 

“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 Supplement relating to the Series
2002-A Notes, Series 2002-VFN Notes, Series 2003-A Notes, Series 2004-A Notes
or Series 2004-B Notes (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 8.7
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 or deposits to the Principal
Accumulation Account to be made on the Distribution Date falling in the Monthly
Period for which the Allocation Percentage is being calculated; or

 

(ii)  for Principal Collections during the Early
Amortization Period and the Controlled Accumulation Period, the Collateral
Amount at the end of the last day of the Revolving Period, provided,  however,  that
the Transferor may, by written notice to the Indenture Trustee, the Servicer
and the Rating Agencies, reduce the

 

2

 

numerator used for
purposes of allocating Principal Collections to Series 2004-C 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 an Early Amortization Event or an event that, after the giving of
notice or the lapse of time, would cause an Early Amortization Event to occur
with respect to Series 2004-C, 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.

 

“Available Cash
Collateral Amount” means with respect to any Transfer Date, an amount equal
to the lesser of (a) the amount on deposit in the Cash Collateral Account
(before giving effect to any deposit to, or withdrawal from, the Cash
Collateral Account made or to be made with respect to such date) and (b) the
Required Cash Collateral Amount for such Transfer Date.

 

“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 2004-C for such
Monthly Period, plus (c) Principal Accumulation Investment Proceeds, if any,
with respect to the related Transfer Date, plus (d) interest and earnings on funds on
deposit in the Reserve Account, Cash Collateral Account and Spread Account
which will be deposited into the Finance Charge Account on the related Transfer
Date to be treated as Available Finance Charge Collections pursuant to subsections
4.10(b), 4.11(b) and 4.12(b), respectively, plus
(e) amounts, if any, to be withdrawn from the Reserve Account which will be
deposited into the Finance Charge Account on the related Transfer Date to be
treated as Available Finance Charge Collections pursuant to subsection 4.10(d),
plus
(f) any Net Swap Receipts for the related Distribution Date.

 

“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 4.6 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 2004-C for
application as Shared Principal Collections), plus (d) the aggregate
amount to be treated as Available Principal Collections pursuant to subsections
4.4(a)(vi) and (vii) for the related Distribution Date.

 

3

 

“Available Reserve
Account Amount” means, for any Transfer Date, the lesser of (a) the amount
on deposit in the Reserve Account (after taking into account any interest and
earnings retained in the Reserve Account pursuant to subsection 4.10(b)
on such date, but before giving effect to any deposit made or to be made
pursuant to subsection 4.4(a)(ix) to the Reserve Account on such
date) and (b) the Required Reserve Account Amount.

 

“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 (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,
for any Monthly Period, the annualized percentage equivalent of a fraction, the
numerator of which is equal to the sum of (a) the Monthly Interest, (b) the Net
Swap Payments and (c) the Noteholder Servicing Fee, each with respect to the
related Distribution Date, and the denominator of which is the Collateral
Amount plus amounts on deposit in the Principal Accumulation Account, each as
of the close of business on the last day of such Monthly Period.

 

“Cash Collateral
Account” is defined in Section 4.11(a)

 

“Class A Additional
Interest” is defined in subsection 4.2(a).

 

“Class A Counterparty”
means Barclays Bank PLC or the counterparty under any interest rate swap with
respect to the Class A Notes obtained pursuant to Section 4.17.

 

“Class A Deficiency
Amount” is defined in subsection 4.2(a).

 

“Class A Monthly
Interest” is defined in subsection 4.2(a).

 

“Class A Net Interest
Obligation” means, for any Distribution Date: (a) if there are Class A Net
Swap Payments due on that Distribution Date, the sum of the Class A Net Swap
Payments and the Class A Monthly Interest for that Distribution Date; (b) if
there are Class A Net Swap Receipts due on that Distribution Date, the result
of the Class A Monthly Interest for that Distribution Date, minus
the Class A Net Swap Receipts for that Distribution Date; and (c) if the Class
A Swap has terminated for any reason, the Class A Monthly Interest for that
Distribution Date.

 

“Class A Net Swap
Payment” means, with respect to any Distribution Date, any net amount
payable by the Issuer under the Class A Swap as a result of LIBOR being less
than the Class A Swap Rate.  For the
avoidance of doubt, Class A Net Swap Payments do not include early termination
payments or payment of breakage or other miscellaneous costs.

 

“Class A Net Swap
Receipt” means, with respect to any Distribution Date, any net amount
payable by the Class A Counterparty as a result of LIBOR being greater than the
Class A Swap Rate.  For the avoidance of
doubt, Class A Net Swap Receipts do not include early termination  payments.

 

“Class A Note Initial
Principal Balance” means $355,500,000.

 

4

 

“Class A Note Interest
Rate” means a per annum rate of 0.20% in excess of LIBOR as determined on
the LIBOR Determination Date for the applicable Distribution Period.

 

“Class A Note
Principal Balance” means, on any date of determination, an amount equal to
(a) the Class A Note Initial Principal Balance, minus (b) the aggregate
amount of principal payments made to the Class A Noteholders on or prior to
such date.

 

“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 Required
Amount” means, for any Distribution Date, an amount equal to the excess of
the amounts described in subsection 4.4(a)(i) over the sum of (a)
Available Finance Charge Collections applied to pay such amount pursuant to subsection 4.4(a)
and (b) any amount withdrawn from the Cash Collateral Account and applied to
pay such amount pursuant to subsection 4.11(c).

 

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

 

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

 

“Class B Additional
Interest” is defined in subsection 4.2(c).

 

“Class B Counterparty”
means Barclays Bank PLC or the counterparty under any interest rate swap with
respect to the Class B Notes obtained pursuant to Section 4.17.

 

“Class B Deficiency
Amount” is defined in subsection 4.2(c).

 

“Class B Monthly
Interest” is defined in subsection 4.2(c).

 

“Class B Net Interest
Obligation” means, for any Distribution Date: (a) if there are Class B Net
Swap Payments due on that Distribution Date, the sum of the Class B Net Swap
Payments and the Class B Monthly Interest for that Distribution Date; (b) if
there are Class B Net Swap Receipts due on that Distribution Date, the result
of the Class B Monthly Interest for that Distribution Date, minus
the Class B Net Swap Receipts for that Distribution Date; and (c) if the Class B
Swap has terminated for any reason, the Class B Monthly Interest for that
Distribution Date.

 

“Class B Net Swap
Payment” means, with respect to any Distribution Date, any net amount
payable by the Issuer under the Class B Swap as a result of LIBOR being less
than the Class B Swap Rate.  For the
avoidance of doubt, Class B Net Swap Payments do not include early termination
payments or payment of breakage or other miscellaneous costs.

 

5

 

“Class B Net Swap Receipt”
means, with respect to any Distribution Date, any net amount payable by the
Class B Counterparty as a result of LIBOR being greater than the Class B Swap
Rate.  For the avoidance of doubt, Class
B Net Swap Receipts do not include early termination payments.

 

“Class B Note Initial
Principal Balance” means $21,375,000.

 

“Class B Note Interest
Rate” means a per annum rate of 0.60% in excess of LIBOR as determined on
the LIBOR Determination Date for the applicable Distribution Period.

 

“Class B Note Principal
Balance” means, on any date of determination, an amount equal to (a) the
Class B Note Initial Principal Balance, minus (b) the aggregate amount of
principal payments made to the Class B Noteholders on or prior to such date.

 

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

 

“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 Required
Amount” means, for any Distribution Date, an amount equal to the excess of
the amount described in subsection 4.4(a)(iii) over the sum of (a)
Available Finance Charge Collections applied to pay such amount pursuant to subsection 4.4(a)
and (b) any amount withdrawn from the Cash Collateral Account and applied to
pay such amount pursuant to subsection 4.11(c).

 

“Class B Swap”  means an interest rate swap agreement
between the Trust and the Class B Counterparty substantially in the form of Exhibit
D-3 to this Indenture Supplement, or such other form as shall have
satisfied the Rating Agency Condition.

 

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

 

“Class C Additional
Interest” is defined in subsection 4.2(d).

 

“Class C Counterparty”
means Barclays Bank PLC or the counterparty under any interest rate swap with
respect to the Class C Notes obtained pursuant to Section 4.17.

 

“Class C Deficiency
Amount” is defined in subsection 4.2(d).

 

 “Class C Monthly Interest” is defined
in subsection 4.2(d).

 

“Class C Net Interest
Obligation” means, for any Distribution Date: (a) if there are Class C Net
Swap Payments due on that Distribution Date, the sum of the Class C Net Swap
Payments and the Class C Monthly Interest for that Distribution Date; (b) if
there are Class C Net Swap Receipts due on that Distribution Date, the result
of the Class C Monthly Interest for that Distribution Date, minus
the Class C Net Swap Receipts for that Distribution Date; and (c) if the 

 

6

 

Class C Swap has
terminated for any reason, the Class C Monthly Interest for that Distribution
Date.

 

“Class C Net Swap
Payment” means, with respect to any Distribution Date, any net amount
payable by the Issuer under the Class C Swap as a result of LIBOR being less
than the Class C Swap Rate.  For the
avoidance of doubt, Class C Net Swap Payments do not include early termination
payments or payment of breakage or other miscellaneous costs.

 

“Class C Net Swap
Receipt” means, with respect to any Distribution Date, any net amount
payable by the Class C Counterparty as a result of LIBOR being greater than the
Class C Swap Rate.  For the avoidance of
doubt, Class C Net Swap Receipts do not include early termination  payments.

 

“Class C Note Initial
Principal Balance” means $56,250,000.

 

“Class C Note Interest
Rate” means the rate specified in the Class C Note Purchase Agreement; provided
that the Class C Note Interest Rate shall not exceed a per annum rate of 1.25%
in excess of LIBOR as determined on the LIBOR Determination Date for the
applicable Distribution Period.

 

“Class C Note Principal
Balance” means, on any date of determination, an amount equal to (a) the
Class C Note Initial Principal Balance, minus (b) the aggregate amount of
principal payments made to the Class C Noteholders on or prior to such date.

 

“Class C Note Purchase
Agreement” means the Note Purchase Agreement, dated as of
September 22, 2004, between WFN, the Transferor and the initial purchaser
of the Class C Notes.

 

“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 Swap”
means, an interest rate swap agreement, with respect to the Class C Notes
between the Trust and the Class C Counterparty substantially in the form of
Exhibit D-4 to this Indenture Supplement, or other form as shall have satisfied
the Rating Agency Condition.

 

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

 

“Class C Swap Required
Amount” means, for any Distribution Date, an amount equal to the excess of
the Class C Net Swap Payment for such Distribution Date over the sum of (a)
Available Finance Charge Collections applied to pay such Class C Net Swap
Payment pursuant to subsection 4.4(a)(v)(B), (b) any amount
withdrawn from the Cash Collateral Account and applied to pay such Class C Net
Swap Payment pursuant to subsection 4.11(c) and (c) any

 

7

 

amount withdrawn from the
Spread Account and applied to pay such Class C Net Swap Payment pursuant to subsection 4.12(c).

 

“Class M Additional
Interest” is defined in subsection 4.2(b).

 

“Class M Counterparty”
means Barclays Bank PLC or the counterparty under any interest rate swap with
respect to the Class M Notes obtained pursuant to Section 4.17.

 

“Class M Deficiency
Amount” is defined in subsection 4.2(b).

 

“Class M Monthly
Interest” is defined in subsection 4.2(b).

 

“Class M Net Interest
Obligation” means, for any Distribution Date: (a) if there are Class M Net
Swap Payments due on that Distribution Date, the sum of the Class M Net Swap
Payments and the Class M Monthly Interest for that Distribution Date; (b) if
there are Class M Net Swap Receipts due on that Distribution Date, the result
of the Class M Monthly Interest for that Distribution Date, minus
the Class M Net Swap Receipts for that Distribution Date; and (c) if the Class
M Swap has terminated for any reason, the Class M Monthly Interest for that
Distribution Date.

 

“Class M Net Swap
Payment” means, with respect to any Distribution Date, any net amount
payable by the Issuer under the Class M Swap as a result of LIBOR being less
than the Class M Swap Rate.  For the
avoidance of doubt, Class M Net Swap Payments do not include early termination
payments or payment of breakage or other miscellaneous costs.

 

“Class M Net Swap
Receipt” means, with respect to any Distribution Date, any net amount
payable by the Class M Counterparty as a result of LIBOR being greater than the
Class M Swap Rate.  For the avoidance of
doubt, Class M Net Swap Receipts do not include early termination payments.

 

“Class M Note Initial
Principal Balance” means $16,875,000.

 

“Class M Note Interest
Rate” means a per annum rate of 0.40% in excess of LIBOR as determined on
the LIBOR Determination Date for the applicable Distribution Period.

 

“Class M Note
Principal Balance” means, on any date of determination, an amount equal to
(a) the Class M Note Initial Principal Balance, minus (b) the aggregate
amount of principal payments made to the Class M Noteholders on or prior to
such date.

 

“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 Required
Amount” means, for any Distribution Date, an amount equal to the excess of
the amount described in subsection 4.4(a)(ii) over the sum of (a)
Available Finance Charge Collections applied to pay such amount pursuant to subsection 4.4(a)
and (b) any amount

 

8

 

withdrawn from the Cash
Collateral Account and applied to pay such amount pursuant to
subsection 4.11(c).

 

“Class M Swap”  means an interest rate swap agreement
between the Trust and the Class M Counterparty substantially in the form of Exhibit
D-2 to this Indenture Supplement, or such other form as shall have
satisfied the Rating Agency Condition.

 

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

 

“Closing Date”
means September 22, 2004.

 

“Collateral Amount”
means, as of any date of determination, an amount equal to the result of (a)
the Initial Collateral Amount, minus (b) the amount of principal
previously paid to the Series 2004-C Noteholders (other than any principal
payments made from funds on deposit in the Spread Account), minus (c)
the balance on deposit in the Principal Accumulation Account, minus (d)  the
excess, if any, of the aggregate amount of Investor Charge-Offs and Reallocated
Principal Collections over the reimbursements of such amounts
pursuant to subsection 4.4(a)(vii) prior to such date.

 

“Controlled Accumulation
Amount” means, for any Transfer Date with respect to the Controlled
Accumulation Period, $37,500,000; provided, however, that if
the Controlled Accumulation Period Length is determined to be less than 12
months pursuant to Section 4.14 or 4.15, the Controlled
Accumulation Amount shall be equal to (i) the Note Principal Balance divided by
(ii) the Controlled Accumulation Period Length; provided, further,
that the Controlled Accumulation Amount for any Distribution Date shall not
exceed the Note Principal Balance minus any amount already on deposit in the
Principal Accumulation Account on such Transfer Date.

 

“Controlled
Accumulation Period” means, unless an Early Amortization Event shall have
occurred prior thereto, the period commencing at the opening of business on
September 1, 2010 or such later date as is determined in accordance with Sections
4.14 and 4.15, and ending on the first to occur of (a) the
commencement of the Early Amortization Period and (b) the Series Termination
Date.

 

“Controlled
Accumulation Period Length” is defined in subsection 4.14.

 

“Controlled Deposit
Amount” means, for any Transfer Date with respect to the Controlled
Accumulation Period, an amount equal to the sum of the Controlled Accumulation
Amount for such Transfer Date and any existing Accumulation Shortfall.

 

“Counterparty”
means the Class A Counterparty, the Class M Counterparty, the Class B
Counterparty or the Class C Counterparty.

 

“Covered Amount”
means an amount, determined as of each Transfer Date for any Distribution
Period, equal to the sum of (a) the product of (i) the Class A Net Interest
Obligation times
(ii) a fraction, (A) the numerator of which is equal to the aggregate amount on
deposit in

 

9

 

the Principal
Accumulation Account, up to the Class A Note Principal Balance as of the Record
Date preceding such Transfer Date, and (B) the denominator of which is equal to
the Class A Note Principal Balance as of the Record Date preceding such
Transfer Date, plus  (b) the product of (i) the Class M Net Interest
Obligation times
(ii) a fraction (A) the numerator of which is equal to the aggregate amount on
deposit in the Principal Accumulation Account in excess of the Class A Note
Principal Balance as of the Record Date preceding such Transfer Date, up to the
Class M Note Principal Balance as of the Record Date preceding such Transfer
Date, and (B) the denominator of which is equal to the Class M Note Principal
Balance as of the Record Date preceding such Transfer Date, plus  (c)
the product of (i) the Class B Net Interest Obligation times (ii) a fraction (A)
the numerator of which is equal to the aggregate amount on deposit in the
Principal Accumulation Account in excess of the sum of the Class A Note
Principal Balance and the Class M Note Principal Balance as of the Record Date
preceding such Transfer Date, up to the Class B Note Principal Balance as of
the Record Date preceding such Transfer Date, and (B) the denominator of which
is equal to the Class B Note Principal Balance as of the Record Date preceding
such Transfer Date, plus (d) the product of (i) the Class C
Net Interest Obligation times (ii) a fraction (A) the numerator of
which is equal to the aggregate amount on deposit in the Principal Accumulation
Account in excess of the sum of the Class A Note Principal Balance, the Class M
Note Principal Balance and the Class B Note Principal Balance, in each case as
of the Record Date preceding such Transfer Date, and (B) the denominator of
which is equal to the Class C Note Principal Balance as of the Record Date
preceding such Transfer Date.

 

“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 WFN 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 Maturity”
means, for any LIBOR Determination Date, one month; provided that LIBOR for the
initial Distribution Period will be determined by straight-line interpolation
(based on the actual number of days in the initial Distribution Period) between
two rates determined in accordance with the definition of LIBOR, one of which
will be determined for a Designated Maturity of one month and the other of
which will be determined for a Designated Maturity of two months.

 

“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 because such Receivable is an Excess Fraud
Receivable or (c) for any other reason other than receiving Collections
therefor or charging off such amount as uncollectible.

 

“Distribution Account”
is defined in subsection 4.9(a).

 

“Distribution Date”
means November 15, 2004 and the 15th day of each calendar month
thereafter, or if such 15th day is not a Business Day, the next succeeding
Business Day.

 

10

 

“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 2004-C 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 solely for purposes of
Section 4.12(b), references to the “highest investment category” of
S&P shall mean A-2 and of Moody’s shall mean P-2.

 

“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.

 

“Expected Principal
Payment Date” means the September, 2011 Distribution Date.

 

“Finance Charge
Account” is defined in Section  4.9(a).

 

“Finance Charge
Collections” means Collections of Finance Charge Receivables.

 

“Finance Charge
Shortfall” is defined in Section 4.7.

 

“Group One” means Series
2002-A, Series 2002-VFN, Series 2003-A, 2004-A, 2004-B, Series 2004-C the
outstanding Series under (and as defined in) the Pooling and Servicing
Agreement (other than Series represented by the Collateral Certificate) and
each other Series hereafter specified in the related Indenture Supplement to be
included in Group One.

 

“Initial Collateral
Amount” means $450,000,000.

 

“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 period commencing on and including the Distribution Date
immediately preceding such Distribution Date and ending on but excluding such
Distribution Date.

 

“Investor Charge-Offs”
is defined in Section 4.5.

 

“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 Finance Charge Collections) retained or deposited in the Finance
Charge Account for Series 2004-C pursuant to subsection 4.1(b)(i)
for such Monthly Period.

 

11

 

“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 2004-C pursuant to subsection 4.1(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 a Reset Date occurs 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 Section 3.9(a)
of the Transfer and Servicing Agreement or Section 3.9(a) of the
Pooling and Servicing Agreement but has not been made, provided
that,  if 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 4.16.

 

“LIBOR Determination
Date” means (i) September 20, 2004 for the period from and including
the Closing Date through and including November 14, 2004 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.

 

“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 Transferor 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; provided that the Monthly Period related to the
November 2004 Distribution Date shall mean the period from and including
the Closing Date to and including the last day of October 2004.

 

“Monthly Principal”
is defined in Section 4.3.

 

“Monthly Principal
Reallocation Amount” means, for any Monthly Period, an amount equal to the
sum of:

 

(a)                                  the
lower of (i) the Class A Required Amount and (ii) the greater of (A)(x) the
product of (I) 21.00% and (II) the Initial Collateral Amount minus
(y) the amount of

 

12

 

unreimbursed Investor
Charge-Offs (after giving effect to Investor Charge-Offs for the related
Monthly Period) and unreimbursed Reallocated Principal Collections (as of the
previous Distribution Date) and (B) zero;

 

(b)                                 the
lower of (i) the Class M Required Amount and (ii) the greater of (A)(x) the
product of (I) 17.25% and (II) the Initial Collateral Amount minus (y) the
amount of unreimbursed Investor Charge-Offs (after giving effect to Investor
Charge-Offs for the related Monthly Period) and unreimbursed Reallocated
Principal Collections (as of the previous Distribution Date and as required in
clause (a) above) and (B) zero; and

 

(c)                                  the
lower of (i) the sum of the Class B Required Amount, the Servicing Fee Required
Amount and the Class C Swap Required Amount and (ii) the greater of (A)(x) the
product of (I) 12.50% and (II) the Initial Collateral Amount minus
(y) the amount of unreimbursed Investor Charge-Offs (after giving effect to
Investor Charge-Offs for the related Monthly Period) and unreimbursed
Reallocated Principal Collections (as of the previous Distribution Date and as
required in clauses (a) and (b) above) and (B) zero.

 

“Net Interest
Obligation” means, for any Distribution Date, the sum of the Class A Net
Interest Obligation, the Class M Net Interest Obligation, the Class B Net
Interest Obligation and the Class C Net Interest Obligation for such
Distribution Date.

 

“Net Swap Payments”
means, with respect to any Distribution Date, collectively, the Class A Net
Swap Payment, the Class M Net Swap Payment, the Class B Net Swap Payment and
the Class C Net Swap Payment for such Distribution Date.

 

“Net Swap Receipts”
means, collectively, the Class A Net Swap Receipt, the Class M Net Swap
Receipt, the Class B Net Swap Receipt and the Class C Net Swap Receipt for such
Distribution Date.

 

“Note Principal
Balance” means, on any date of determination, an amount equal to the sum of
the Class A Note Principal Balance, the Class M Note Principal Balance, the
Class B Note Principal Balance and the Class C Note Principal Balance.

 

“Noteholder Servicing
Fee” is defined in Section 3.1.

 

“Percentage Allocation”
is defined in subsection 4.1(b)(ii)(y).

 

“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 Uncovered Dilution Amount
for such Monthly Period and (b) the denominator of which is the Collateral
Amount plus amounts on deposit in Principal Accumulation Account, each as of
the close of business on the last day of such Monthly Period.

 

“Principal Account”
is defined in subsection 4.9(a).

 

“Principal
Accumulation Account” is defined in subsection 4.9(a).

 

13

 

“Principal
Accumulation Account Balance” means, for any date of determination, the
principal amount, if any, on deposit in the Principal Accumulation Account on
such date of determination.

 

“Principal
Accumulation Investment Proceeds” means, with respect to each Transfer
Date, the investment earnings on funds in the Principal Accumulation Account
(net of investment expenses and losses) for the period from and including the
immediately preceding Transfer Date to but excluding such Transfer Date.

 

“Principal Collections”
means Collections of Principal Receivables.

 

“Principal Shortfall”
is defined in Section 4.8.

 

“Qualified Maturity
Agreement” means an agreement whereby an Eligible Institution agrees to
make a deposit into the Principal Accumulation Account on the Expected
Principal Payment Date in an amount equal to the initial Note Principal
Balance.

 

“Quarterly Excess
Spread Percentage” means (a) with respect to the November 2004
Distribution Date, the Excess Spread Percentage for such Distribution Date, (b)
with respect to the December 2004 Distribution Date, the percentage
equivalent of a fraction the numerator of which is the sum of (i) the Excess
Spread Percentage for the November 2004 Distribution Date and (ii) the
Excess Spread Percentage with respect to the December 2004 Distribution
Date and the denominator of which is two, (c) with respect to the
January 2005 Distribution Date, the percentage equivalent of a fraction
the numerator of which is the sum of (i) the Excess Spread Percentage for the
November 2004 Distribution Date (ii) the Excess Spread Percentage with
respect to the December 2004 Distribution Date and (iii) the Excess Spread
Percentage with respect to the January 2005 Distribution Date and the
denominator of which is three and (d) with respect to the February 2005
Distribution Date and each Distribution Date thereafter, 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.

 

“Rating Agency”
means each of Fitch, Moody’s and Standard & Poor’s.

 

“Reallocated Principal
Collections” means, for any Transfer Date, Investor Principal Collections
applied in accordance with Section 4.6 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 Distribution Date and any Monthly
Interest previously due but not distributed to the Series 2004-C Noteholders, plus
(iii) the amount of Additional Interest, if any, for the related Distribution
Date and any Additional Interest previously due but not distributed to the
Series 2004-C Noteholders on a prior Distribution Date.

 

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

 

14

 

“Required Cash
Collateral Amount” means, for any Transfer Date, the lesser of (a)
$15,750,000 and (b) the Note Principal Balance, minus the Principal
Accumulation Account Balance (after taking into account deposits to the
Principal Accumulation Account on such Transfer Date and payments to be made on
the related Distribution Date); provided that the Transferor may reduce
the Required Cash Collateral Amount at any time if the Indenture Trustee has
been provided evidence that the Rating Agency Condition has been satisfied.

 

“Required Draw Amount”
is defined in subsection 4.11(c).

 

“Required Reserve
Account Amount” means, for any Transfer Date on or after the Reserve
Account Funding Date, an amount equal to (a) 0.50% of the Note Principal
Balance or (b) any other amount designated by the Transferor; provided, however,
that if such designation is of a lesser amount, the Transferor shall (i)
provide the Servicer and the Indenture Trustee with evidence that the Rating
Agency Condition shall have been satisfied and (ii) deliver to the Indenture
Trustee a certificate of an Authorized Officer to the effect that, based on the
facts known to such officer at such time, in the reasonable belief of the
Transferor, such designation will not cause an Early Amortization Event or an
event that, after the giving of notice or the lapse of time, would cause an
Early Amortization Event to occur with respect to Series 2004-C.

 

“Required Retained
Transferor Percentage” means, for purposes of Series 2004-C, 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 after
the occurrence of an Event of Default resulting in acceleration of the Series
2004-C Notes, the Required Spread Account Amount shall equal the Note Principal
Balance (after taking into account any payments to be made on such Distribution
Date); and provided, further, that, except as described in the
preceding proviso following the acceleration of the Series 2004-C Notes,
in no event will the Required Spread Account Amount exceed the Class C Note
Principal Balance (after taking into account any payments to be made on such
Distribution Date).

 

“Reserve Account”
is defined in subsection 4.10(a).

 

“Reserve Account Funding
Date” means the Transfer Date designated by the Servicer which occurs not
later than the Transfer Date with respect to the Monthly Period which commences
3 months prior to the commencement of the Controlled Accumulation Period (which
commencement shall be subject to postponement pursuant to Section 4.15);
(b) the first Transfer Date for which the Quarterly Excess Spread Percentage is
less than 2%, but in such event the Reserve Account Funding Date shall not be
required to occur earlier than the Transfer Date with respect to the Monthly
Period which commences 12 months prior to the commencement of the Controlled
Accumulation Period; (c) the first Transfer Date for which the Quarterly Excess
Spread Percentage is less than 3%, but in such event the Reserve Account
Funding Date shall not be required to occur earlier than the Transfer Date with
respect to the Monthly Period which commences 6 months prior to the
commencement of the Controlled Accumulation Period; and (d) the first Transfer
Date for which the Quarterly Excess Spread Percentage is less than 4%, but in
such event the Reserve Account Funding Date shall not be required to occur
earlier than the

 

15

 

Transfer Date with
respect to the Monthly Period which commences 4 months prior to the
commencement of the Controlled Accumulation Period; provided, however,
that subject to satisfaction of the Rating Agency Condition, the Reserve
Account Funding Date may be any date selected by the Servicer.

 

“Reserve Account
Surplus” means, as of any Transfer Date following the Reserve Account
Funding Date, the amount, if any, by which the amount on deposit in the Reserve
Account exceeds the Required Reserve Account Amount.

 

“Reserve Draw Amount”
means, with respect to each Transfer Date relating to the Controlled
Accumulation Period or the first Transfer Date relating to the Early
Amortization Period, the amount, if any, by which the Principal Accumulation
Investment Proceeds for such Distribution Date are less than the Covered Amount
determined as of such Transfer 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;

 

(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 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, Class or subclass 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 beginning on the Closing Date and ending at the close of
business on the day immediately preceding the earlier of the day the Controlled
Accumulation Period commences or the day the Early Amortization Period commences.

 

“Series 2004-C”
means the Series of Notes the terms of which are specified in this Indenture
Supplement.

 

“Series 2004-C Early
Amortization Event” is defined in Section 6.1.

 

“Series 2004-C Final
Maturity Date” means the July 2015 Distribution Date.

 

“Series 2004-C Note”
means a Class A Note, a Class M Note, a Class B Note or a Class C Note.

 

16

 

“Series 2004-C
Noteholder” means a Class A Noteholder, a Class M Noteholder, a Class B
Noteholder or a Class C Noteholder.

 

“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 Percentages 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
Percentage 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.

 

“Series Servicing Fee
Percentage” means 2% per annum.

 

“Series Termination
Date” means the earliest to occur of (a) the date on which the Note
Principal Balance is paid in full, (b) the date on which the Collateral Amount
is reduced to zero and (c) the Series 2004-C Final Maturity Date.

 

“Servicing Fee
Required Amount” means, for any Distribution Date, an amount equal to the
excess of the amount described in subsection 4.4(a)(iv) over the
sum of (a) the Available Finance Charge Collections applied to pay such amount
pursuant to subsection 4.4(a) and (b) any amount withdrawn from the
Cash Collateral Account and applied to pay such amount pursuant to subsection 4.11(c).

 

“Specified Transferor
Amount” means, at any time, the Minimum Transferor Amount (including the
Additional Minimum Transferor Amount, if any) at that time.

 

“Spread Account”
is defined in subsection 4.12(a).

 

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

 

“Spread Account
Percentage” means, for any Distribution Date, (i) 0.00% if the Quarterly
Excess Spread Percentage on such Distribution Date is greater than or equal to
6.0%, (ii) 1.25% if the Quarterly Excess Spread Percentage on such Distribution
Date is less than 6.0% and greater than or equal to 5.5%, (iii) 1.50% if the
Quarterly Excess Spread Percentage on such Distribution Date is less than 5.5%
and greater than or equal 5.0%, (iv) 2.25% if the Quarterly Excess Spread
Percentage on such Distribution Date is less than 5.0% and greater than or
equal to 4.5%, (v) 2.75% if the Quarterly Excess Spread Percentage on such
Distribution Date is less than 4.5% and greater than or equal to 4.0%, (vi)
3.25% if the Quarterly Excess Spread Percentage on such Distribution Date is
less than 4.0% and greater than or equal to 3.0%, (vii) 3.75% if the Quarterly
Excess Spread Percentage on such Distribution Date is less than 3.0% and greater
than or equal to 2.5%, and (viii) 4.25% if the Quarterly Excess Spread
Percentage on such Distribution Date is less than 2.5%; provided, that:

 

17

 

(a) if the Spread
Account Percentage for a Distribution Date is greater than 1.50%, then the
Spread Account Percentage shall not decrease to a lower percentage until the
first subsequent Distribution Date on which the arithmetic mean of the
Quarterly Excess Spread Percentages for such subsequent Distribution Date and
for the two Distribution Dates immediately prior to such subsequent
Distribution Date is greater than or equal to the lowest Quarterly Excess
Spread Percentage associated with a lower Spread Account Percentage;

 

(b) if the Spread
Account Percentage for a Distribution is equal 1.50%, then the Spread Account
Percentage shall not decrease to a lower percentage until the first subsequent
Distribution Date on which the arithmetic mean of the Quarterly Excess Spread
Percentages for such subsequent Distribution Date and for the Distribution Date
immediately prior to such subsequent Distribution Date is greater than or equal
to the lowest Quarterly Excess Spread Percentage associated with a lower Spread
Account Percentage;

 

(c)  in no event will the Spread Account
Percentage decrease by more than one of the levels specified above between any
two Distribution Dates;(1)

 

(d) if an Early
Amortization Event is deemed to occur with respect to Series 2004-C, the Spread
Account Percentage shall be 12.5%; and

 

(e) the Spread
Account Percentage may be decreased by the Transferor with the consent of the
Class C Noteholders if the Rating Agency Condition shall have been satisfied
with respect to such decrease.

 

“Target Amount” is
defined in subsection 4.1(b)(i).

 

“Telerate Page 3750”
means the display page currently so designated on the Moneyline Telerate
Service (or such page as may replace that page in that service for the purpose
of displaying comparable rates or prices).

 

(b)                                 Each
capitalized term defined herein shall relate to the Series 2004-C Notes and no
other Series of Notes issued by the Trust, unless the context otherwise
requires.  All capitalized terms used
herein and not otherwise defined herein have the meanings ascribed to them in
Annex A to the Master Indenture.

 

(c)                                  The
interpretive rules specified in Section 1.2 of the Master 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 Master Indenture, the
terms and provisions of this Indenture Supplement shall be controlling.

 

(1) For example, if the
Spread Account Percentage on one Distribution Date were 1.50%, then the Spread
Account Percentage for the next Distribution Date could not be less than 1.25%,
even if the Quarterly Excess Spread Percentage on such next Distribution Date
were greater than or equal to 6.0%

 

18

 

ARTICLE III.

 

Noteholder
Servicing Fee

 

Section 3.1                                      Servicing
Compensation.  The share of the
Servicing Fee allocable to Series 2004-C 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 Collateral Amount as of the last day
of the Monthly Period preceding such Transfer Date; provided, however,
that with respect to the first Transfer Date, the Noteholder Servicing Fee
shall be equal to $1,000,000.  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 2004-C 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.

 

Rights of Series
2004-C Noteholders and Allocation and Application of Collections

 

Section 4.1                                      Collections
and Allocations

 

(a)                                  Allocations.  Finance Charge Collections, Principal
Collections and Defaulted Receivables allocated to Series 2004-C pursuant to Article VIII
of the Indenture shall be allocated and distributed as set forth in this
Article.

 

(b)                                 Allocations
to the Series 2004-C Noteholders. 
The Servicer shall on the Date of Processing, allocate to the Series 2004-C
Noteholders the following amounts as set forth below:

 

(i)                                     Allocations
of Finance Charge Collections. The Servicer shall allocate to the Series
2004-C 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 Accumulation Period falling on or after the day on which
Collections of Principal Receivables equal to the related Controlled Deposit
Amount have been allocated pursuant to Section 4.1(b)(ii) and
deposited pursuant to Section 4.1(c)), so long as the Available
Cash Collateral Amount is not less than the Required Cash Collateral Amount on
such Date of Processing, 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 sum (the “Target Amount”) of
(A) the Net Interest Obligation for the related Distribution Date, (B)  if WFN is not the Servicer, the Noteholder
Servicing Fee (and if WFN is the Servicer, then amounts that otherwise would
have been transferred into the Finance

 

19

 

Charge Account pursuant
to this clause (B) shall instead be returned to WFN as payment of the
Noteholder Servicing Fee), (C) any amount required to be deposited in the
Reserve Account, the Spread Account and the Cash Collateral Account on the
related Transfer Date and (D) if the Excess Spread Percentage for the preceding
Monthly Period was less than 3%, the sum of Investor Default Amounts and any
Investor Uncovered Dilution Amounts for the portion of the current Monthly
Period that has elapsed through such Date of Processing; 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 Available Principal Collections pursuant to Section 4.4(a)(vi)
and (vii) 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 the Target Amount in
accordance with clause (i) above, notwithstanding such limitation: (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 Section 4.4(a);
and (2) Collections of Finance Charge Receivables released to Transferor
pursuant to such Section 4.1(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 Sections 4.4(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 (d) 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 2004-C 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 2004-C

 

20

 

Noteholders and 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.

 

(2)                                  With
respect to each Monthly Period falling in the Revolving Period, to the extent that
Collections of Principal Receivables allocated to the Series 2004-C Noteholders
pursuant to this subsection 4.1(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 4.6.

 

(y)                                 Allocations
During the Controlled Accumulation Period. 
During the Controlled Accumulation 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 2004-C 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
Deposit Amount during the Controlled Accumulation Period for the related
Distribution Date, then such excess shall not be treated as a Percentage
Allocation and shall be first, if any other Principal Sharing Series is
outstanding and in its 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.

 

(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 Series 2004-C 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.

 

21

 

(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 4.1(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 WFN is Servicer, 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 2004-C pursuant
to Section 4.15 of the Pooling and Servicing Agreement or Section 8.5
of the Indenture)).

 

(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 4.2                                      Determination
of Monthly Interest.

 

(a)                                  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 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 A
Note Interest Rate in effect with respect to the related Distribution Period
and (ii) the Class A Note Principal Balance as of the close of business on the
last day of the preceding Monthly Period (or, with respect to the initial
Distribution Date, the Class A Note Initial Principal Balance).

 

On the Determination Date
preceding each Distribution Date, the Servicer shall determine the excess, if
any (the “Class A Deficiency Amount”), of (x) the aggregate amount
accrued pursuant to this Section 4.2(a) as of the prior
Distribution Date over (y) the amount actually transferred from the
Distribution Account for payment of such amount.  If the Class A Deficiency Amount for any Distribution Date is
greater than zero, on each subsequent Distribution Date until such Class A
Deficiency Amount is fully paid, an additional amount (“Class A 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 A Note Interest Rate in effect
with respect to the related Distribution Period plus 2% per annum and (ii)
such Class A Deficiency Amount (or the portion thereof which has not been paid
to the Class A Noteholders) shall be payable as provided herein with respect to
the Class A Notes.  Notwithstanding
anything to the contrary herein, Class A Additional Interest shall be payable
or distributed to the Class A Noteholders only to the extent permitted by
applicable law.

 

(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 Class M Note Principal Balance as of the close of business on the
last day of the preceding Monthly

 

22

 

Period (or, with respect
to the initial Distribution Date, the Class M Note Initial Principal Balance).

 

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 Section 4.2(b) 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 plus 2% per annum and (ii)
such Class M Deficiency Amount (or the portion thereof which has not been paid
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 Class B Note Principal Balance as of the close of business on the
last day of the preceding Monthly Period (or, with respect to the initial
Distribution Date, the Class B Note Initial Principal Balance).

 

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 Section 4.2(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 plus 2% per annum 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 Class C

 

23

 

Note Principal Balance as
of the close of business on the last day of the preceding Monthly Period (or,
with respect to the initial Distribution Date, the Class C Note Initial
Principal Balance).

 

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 Section 4.2(d) 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 plus 2% per annum 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.

 

Section 4.3                                      Determination
of Monthly Principal.  The amount of
monthly principal to be transferred from the Principal Account with respect to
the Notes on each Transfer Date (the “Monthly Principal”), beginning
with the Transfer Date in the month following the month in which the Controlled
Accumulation Period or, if earlier, the Early Amortization Period, begins,
shall be equal to the least of (i) the Available Principal Collections on
deposit in the Principal Account with respect to such Transfer Date, (ii) for
each Transfer Date with respect to the Controlled Accumulation Period, the
Controlled Deposit Amount for such Transfer Date, (iii) the Collateral Amount
(after taking into account any adjustments to be made on such Distribution Date
pursuant to Sections 4.5 and 4.6) prior to any deposit into the
Principal Accumulation Account on such Transfer Date, and (iv) the Note
Principal Balance, minus any amount already on deposit in the Principal
Accumulation Account on such Transfer Date.

 

Section 4.4                                      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 Accumulation 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)                                     on
a pari passu basis based on the amounts owing to the Class A Noteholders and
the Class A Counterparty pursuant to this subsection 4.4(a)(i): (A)
an amount equal to Class A Monthly Interest for such Distribution Date, plus
any Class A Deficiency Amount, plus the amount of any Class A Additional
Interest for such

 

24

 

Distribution Date, plus
the amount of any Class A Additional Interest previously due but not
distributed to Class A Noteholders on a prior Distribution Date shall be
deposited by the Servicer or Indenture Trustee into the Distribution Account,
and (B) any Class A Net Swap Payment for such Distribution Date shall be paid
to the Class A Swap Counterparty;

 

(ii)                                  on
a pari passu basis based on the amounts owing to the Class M Noteholders and
the Class M Counterparty pursuant to this subsection 4.4(a)(ii):
(A) an amount equal to 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, and (B) any Class M Net Swap Payment for such Distribution
Date shall be paid to the Class M Swap Counterparty;

 

(iii)                               on
a pari passu basis based on the amounts owing to the Class B Noteholders and
the Class B Counterparty pursuant to this subsection 4.4(a)(iii):
(A) an amount equal to 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, and (B) any Class B Net Swap Payment for such
Distribution Date shall be paid to the Class B Swap Counterparty;

 

(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)                                 on
a pari passu basis based on the amounts owing to the Class C Noteholders and
the Class C Counterparty pursuant to this subsection 4.4(a)(v): (A)
an amount equal to 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 the Class C Noteholders on a
prior Distribution Date shall be deposited by the Servicer or Indenture Trustee
into the Distribution Account, and (B) any Class C Net Swap Payment for such
Distribution Date shall be paid to the Class C Counterparty;

 

(vi)                              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 Accumulation Period or the Early Amortization Period,
deposited into the Principal Account on the related Transfer Date;

 

(vii)                           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

 

25

 

reimbursed pursuant to
this subsection (vii) shall be treated as a portion of Available
Principal Collections for such Distribution Date;

 

(viii)                        an amount
equal to the excess, if any, of the Required Cash Collateral Amount over
the Available Cash Collateral Amount shall be deposited into the Cash Collateral
Account;

 

(ix)                                on
each Transfer Date from and after the Reserve Account Funding Date, but prior
to the date on which the Reserve Account terminates as described in subsection 4.10(f),
an amount up to the excess, if any, of the Required Reserve Account Amount over
the Available Reserve Account Amount shall be deposited into the Reserve
Account;

 

(x)                                   an
amount equal to the amounts required to be deposited in the Spread Account
pursuant to Section 4.12(f) shall be deposited into the Spread
Account as provided in Section 4.12(f);

 

(xi)                                on
a pari passu basis based on the amounts owing to each Counterparty pursuant to
this subsection 4.4(a)(xi): (A) an amount equal to any partial or
early termination payments or other additional payments owed to the Class A Counterparty
under the Class A Swap shall be paid to the Class A Counterparty, (B) an amount
equal to any partial or early termination payments or other additional payments
owed to the Class M Counterparty under the Class M Swap shall be paid to the
Class M Counterparty, (C) an amount equal to any partial or early termination
payments or other additional payments owed to the Class B Counterparty under
the Class B Swap shall be paid to the Class B Counterparty and (D) an amount
equal to any partial or early termination payments or other additional payments
owed to the Class C Counterparty under the Class C Swap shall be paid to the
Class C Counterparty;

 

(xii)                             an
amount equal to any other payments owed to the Class C Noteholders under the
Class C Note Purchase Agreement shall be paid to the Class C Noteholders;

 

(xiii)                          any
amounts designated in writing by the Transferor to the Servicer and Indenture
Trustee as amounts to be paid from Available Finance Charge Collections shall
be paid in accordance with the Transferor’s instructions; and

 

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

 

(b)                                 On
each Transfer Date with respect to the Revolving Period, an amount equal to the
Available Principal Collections for the related Monthly Period shall be treated
as Shared Principal Collections and applied in accordance with Section 8.5
of the Indenture.

 

(c)                                  On
each Transfer Date with respect to the Controlled Accumulation 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:

 

26

 

(i)                                     during
the Controlled Accumulation Period, an amount equal to the Monthly Principal
for such Transfer Date shall be deposited into the Principal Accumulation
Account;

 

(ii)                                  during
the Early Amortization Period, an amount equal to the 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 Note Principal
Balance has been paid in full;

 

(iii)                               during
the Early Amortization Period, after giving effect to the distribution referred
to in clause (ii) above, an amount equal to the Monthly Principal
remaining, 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 Note Principal
Balance has been paid in full;

 

(iv)                              during
the Early Amortization Period, after giving effect to the distribution referred
to in clauses (ii) and (iii) above, an amount equal to the
Monthly Principal remaining, 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
Note Principal Balance has been paid in full;

 

(v)                                 during
the Early Amortization Period, after giving effect to the distributions
referred to in clauses (ii), (iii) and (iv) above, an
amount equal to the Monthly Principal remaining, 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 Note Principal Balance has been paid in
full; and

 

(vi)                              in the
case of each of the Controlled Accumulation Period and the Early Amortization
Period, the balance of such Available Principal Collections remaining after
application in accordance with clauses (i) through (v) above
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 5.2
to the Class A Noteholders from the Distribution Account, the amount deposited
into the Distribution Account pursuant to Section 4.4(a)(i) on the
preceding Transfer Date, to the Class M Noteholders from the Distribution
Account, the amount deposited into the Distribution Account pursuant to Section 4.4(a)(ii),
to the Class B Noteholders from the Distribution Account, the amount deposited
into the Distribution Account pursuant to Section 4.4(a)(iii) and
to the Class C Noteholders from the Distribution Account, the amount deposited
into the Distribution Account pursuant to Section 4.4(a)(v).

 

(e)                                  On
the earlier to occur of (i) the first Transfer Date with respect to the Early
Amortization Period and (ii) the Transfer Date immediately preceding the
Expected Principal Payment Date, the Indenture Trustee, acting in accordance
with instructions from the Servicer, shall withdraw from the Principal
Accumulation Account and deposit into the Distribution

 

27

 

Account amounts necessary
to pay first, to the Class A Noteholders, an amount equal to the Class A Note
Principal Balance, second, to the Class M Noteholders, an amount equal to the
Class M Note Principal Balance, third, to the Class B Noteholders, an amount
equal to the Class B Note Principal Balance, and fourth, to the Class C
Noteholders, an amount equal to the Class C Note Principal Balance.  The Indenture Trustee, acting in accordance
with the instructions of the Servicer, shall in accordance with Section 5.2
pay from the Distribution Account to the Class A Noteholders, the Class M
Noteholders, the Class B Noteholders and the Class C Noteholders, as
applicable, the amounts deposited for the account of such Noteholders into the
Distribution Account pursuant to this subsection 4.4(e).

 

Section 4.5                                      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 and the amount withdrawn from the Cash Collateral Account
allocated with respect thereto pursuant to subsection 4.4(a)(vi)
and 4.11(c), respectively, 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 4.6                                      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 subsections 4.4(a)(i), (ii), (iii), (iv)  and (v)(B), after giving effect to
any withdrawal from the Cash Collateral Account or 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 4.7                                      Excess
Finance Charge Collections.  Series
2004-C 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 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 2004-C 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 2004-C 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 2004-C for any Distribution Date will be equal
to the excess, if any, of (a) the full amount required to be paid, without
duplication, pursuant to subsections 4.4(a)(i) through (xiii) 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 4.8                                      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

 

28

 

Series 2004-C on any
Transfer Date will be equal to 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 2004-C 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 Master Trust (other than series represented by the
Collateral Certificate) shall be deemed to be a Principal Sharing Series.  The “Principal Shortfall” for Series
2004-C will be equal to (a) for any Transfer Date with respect to the Revolving
Period or the Early Amortization Period, zero, and (b) for any Transfer Date
with respect to the Controlled Accumulation Period, the excess, if any, of the
Controlled Deposit Amount 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 4.9                                      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, four segregated trust accounts with
such Eligible Institution (the “Finance Charge Account”, the “Principal
Account”, the “Principal Accumulation Account” and the “Distribution
Account”), bearing a designation clearly indicating that the funds deposited
therein are held for the benefit of the Series 2004-C 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, the Principal Accumulation
Account and the Distribution Account and in all proceeds thereof.  The Finance Charge Account, the Principal
Account, the Principal Accumulation Account and the Distribution Account shall
be under the sole dominion and control of the Indenture Trustee for the benefit
of the Series 2004-C Noteholders.  If at
any time the institution holding the Finance Charge Account, the Principal
Account, the Principal Accumulation 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 (i) make withdrawals from the Finance Charge Account, the Principal
Account, the Principal Accumulation Account and the Distribution Account from
time to time, in the amounts and for the purposes set forth in this Indenture
Supplement, and (ii) on each Transfer Date (from and after the commencement of
the Controlled Accumulation Period) prior to the termination of the Principal
Accumulation Account, make deposits into the Principal Accumulation Account in
the amounts specified in, and otherwise in accordance with, subsection 4.4(c)(i).  Indenture Trustee at all times shall
maintain accurate records reflecting each transaction in the Finance Charge
Account, the Principal Account, the Principal Accumulation Account and the
Distribution Account.

 

(b)                                 Funds
on deposit in the Finance Charge Account, the Principal Account, the Principal
Accumulation Account and the Distribution Account, from time to time shall be

 

29

 

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 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.

 

On each Transfer Date
with respect to the Controlled Accumulation Period and on the first Transfer
Date with respect to the Early Amortization Period, the Indenture Trustee,
acting at the Servicer’s direction given on or before such Transfer Date, shall
transfer from the Principal Accumulation Account to the Finance Charge Account
the Principal Accumulation Investment Proceeds on deposit in the Principal
Accumulation Account for application as Available Finance Charge Collections in
accordance with Section 4.4.

 

Principal Accumulation
Investment Proceeds (including reinvested interest) shall not be considered
part of the amounts on deposit in the Principal Accumulation Account for
purposes of this Indenture Supplement.

 

Section 4.10                                Reserve
Account.

 

(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 Series 2004-C Noteholders, a segregated trust
account (the “Reserve Account”), bearing a designation clearly
indicating that the funds deposited therein are held for the benefit of the
Series 2004-C Noteholders.  The
Indenture Trustee shall possess all right, title and interest in all funds on
deposit from time to time in the Reserve Account and in all proceeds
thereof.  The Reserve Account shall be
under the sole dominion and control of the Indenture Trustee for the benefit of
the Series 2004-C Noteholders.  If at
any time the institution holding the Reserve Account ceases to be an Eligible
Institution, the Transferor shall notify the Indenture Trustee, and the
Indenture Trustee upon being notified (or the Servicer on its behalf) shall,
within ten (10) Business Days, establish a new Reserve Account meeting the
conditions specified above with an 

 

30

 

Eligible Institution, and
shall transfer any cash or any investments to such new Reserve Account.  The Indenture Trustee, at the direction of
the Servicer, shall (i) make withdrawals from the Reserve Account from time to
time in an amount up to the Available Reserve Account Amount at such time, for
the purposes set forth in this Indenture Supplement, and (ii) on each Transfer
Date (from and after the Reserve Account Funding Date) prior to termination of
the Reserve Account, make a deposit into the Reserve Account in the amount
specified in, and otherwise in accordance with, subsection 4.4(a)(ix).

 

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

 

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
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.

 

On each Transfer Date,
all interest and earnings (net of losses and investment expenses) accrued since
the preceding Transfer Date on funds on deposit in the Reserve Account shall be
retained in the Reserve Account (to the extent that the Available Reserve
Account Amount is less than the Required Reserve Account Amount) and the
balance, if any, shall be deposited into the Finance Charge Account and
included in Available Finance Charge Collections for such Transfer Date.  For purposes of determining the availability
of funds or the balance in the Reserve Account for any reason under this
Indenture Supplement, except as otherwise provided in the preceding sentence,
investment earnings on such funds shall be deemed not to be available or on
deposit.

 

(c)                                  On
or before each Transfer Date with respect to the Controlled Accumulation Period
and on or before the first Transfer Date with respect to the Early Amortization
Period, the Servicer shall calculate the Reserve Draw Amount; provided, however,
that such amount will be

 

31

 

reduced to the extent
that funds otherwise would be available for deposit in the Reserve Account
under Section 4.4(a)(ix) with respect to such Transfer Date.

 

(d)                                 If
for any Transfer Date the Reserve Draw Amount is greater than zero, the Reserve
Draw Amount, up to the Available Reserve Account Amount, shall be withdrawn
from the Reserve Account on such Transfer Date by the Indenture Trustee (acting
in accordance with the written instructions of the Servicer) and deposited into
the Finance Charge Account for application as Available Finance Charge
Collections for such Transfer Date.

 

(e)                                  If
the Reserve Account Surplus on any Transfer Date, after giving effect to all
deposits to and withdrawals from the Reserve Account with respect to such
Transfer Date, is greater than zero, the Indenture Trustee, acting in
accordance with the written instructions of the Servicer, shall withdraw from
the Reserve Account an amount equal to such Reserve Account Surplus and (i)
deposit such amounts in the Spread Account, to the extent that funds on deposit
in the Spread Account are less than the Required Spread Account Amount, and
(ii) distribute any such amounts remaining after application pursuant to subsection 4.10(e)(i)
to the holders of the Transferor Interest.

 

(f)                                    Upon
the earliest to occur of (i) the termination of the Trust pursuant to Article VIII
of the Trust Agreement, (ii) the first Transfer Date relating to the Early
Amortization Period and (iii) the Transfer Date immediately preceding the
Expected Principal Payment Date, the Indenture Trustee, acting in accordance
with the instructions of the Servicer, after the prior payment of all amounts
owing to the Series 2004-C Noteholders that are payable from the Reserve
Account as provided herein, shall withdraw from the Reserve Account all
amounts, if any, on deposit in the Reserve Account and (i) deposit such amounts
in the Spread Account, to the extent that funds on deposit in the Spread
Account are less than the Required Spread Account Amount, and (ii) distribute
any such amounts remaining after application pursuant to subsection 4.10(f)(i)
to the holders of the Transferor Interest. 
The Reserve Account shall thereafter be deemed to have terminated for
purposes of this Indenture Supplement. 
Funds on deposit in the Reserve Account at any time that the Controlled
Accumulation Period is suspended pursuant to Section 4.15 shall
remain on deposit until applied in accordance with subsection 4.10(d),
(e) or (f).

 

Section 4.11                                Cash
Collateral Account.

 

(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 Series 2004-C Noteholders, a segregated trust
account (the “Cash Collateral Account”), bearing a designation clearly
indicating that the funds deposited therein are held for the benefit of the
Series 2004-C Noteholders.  The
Indenture Trustee shall possess all right, title and interest in all funds on
deposit from time to time in the Cash Collateral Account and in all proceeds
thereof.  The Cash Collateral Account
shall be under the sole dominion and control of the Indenture Trustee for the
benefit of the Series 2004-C Noteholders. 
If at any time the institution holding the Cash Collateral Account
ceases to be an Eligible Institution, the Transferor shall notify the Indenture
Trustee, and the Indenture Trustee upon being notified (or the Servicer on its
behalf) shall, within ten (10) Business Days, establish a new Cash Collateral

 

32

 

Account meeting the
conditions specified above with an Eligible Institution, and shall transfer any
cash or any investments to such new Cash Collateral Account.

 

(b)                                 On
the Closing Date, Transferor shall deposit $15,750,000 in immediately available
funds into the Cash Collateral Account. 
Funds on deposit in the Cash Collateral Account shall be invested at the
written direction of the Servicer by the Indenture Trustee in Eligible
Investments.  Funds on deposit in the
Cash Collateral Account on any Transfer Date, after giving effect to any withdrawals
from the Cash Collateral 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
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.

 

On each Transfer Date,
all interest and earnings (net of losses and investment expenses) accrued since
the preceding Transfer Date on funds on deposit in the Cash Collateral Account
shall be retained in the Cash Collateral Account (to the extent that the
Available Cash Collateral Account Amount is less than the Required Cash
Collateral Account Amount) and the balance, if any, shall be deposited into the
Finance Charge Account and included in Available Finance Charge Collections for
such Transfer Date.  For purposes of
determining the availability of funds or the balance in the Cash Collateral
Account for any reason under this Indenture Supplement, except as otherwise
provided in the preceding sentence, interest and earnings on such funds shall
be deemed not to be available or on deposit.

 

(c)                                  On
each Determination Date, Servicer shall calculate the amount (the “Required
Draw Amount”) by which the sum of the amounts required to be distributed
pursuant to Sections 4.4(a)(i) through (vi) with respect to the
related Transfer Date exceeds the amount of Available Finance Charge
Collections with respect to the related Monthly Period.  If the Required Draw Amount for any Transfer
Date is greater than zero, Servicer shall give written notice to the Indenture
Trustee of such positive Required Draw Amount on the related Determination
Date.  On the related Transfer Date, the
Required Draw Amount, if any, up to the

 

33

 

Available Cash Collateral
Amount, shall be withdrawn from the Cash Collateral Account and distributed to
fund any deficiency pursuant to Section 4.4(a)(i) through (vi)
(in the order of priority set forth in Section 4.4(a)).

 

(d)                                 If,
after giving effect to all deposits to and withdrawals from the Cash Collateral
Account with respect to any Transfer Date, the amount on deposit in the Cash
Collateral Account exceeds the Required Cash Collateral Amount, the Indenture
Trustee acting in accordance with the instructions of the Servicer, shall withdraw
an amount equal to such excess from the Cash Collateral Account and (i) deposit
such amounts in the Spread Account, to the extent that funds on deposit in the
Spread Account are less than the Required Spread Account Amount and (ii)
distribute such amounts remaining after application pursuant to subsection 4.11(d)
to the Transferor.

 

Section 4.12                                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 C
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 C Noteholders and the Transferor.  Except as otherwise provided in this Section 4.12,
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 C 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 4.12(f).

 

(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

 

34

 

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 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 4.12(b), the Indenture
Trustee shall not hold Eligible Investments through an agent or a nominee.

 

On each Transfer Date
(but subject to subsection 4.12(c)), the Investment Earnings, if
any, accrued since the preceding Transfer Date on funds on deposit in the
Spread Account shall be retained in the Spread Account (to the extent that the
Available Spread Account Amount is less than the Required Spread Account
Amount) and the balance, if any, shall be deposited into the Finance Charge
Account and included in Available Finance Charge Collections for such Transfer
Date.  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 4.12(c)), all
Investment Earnings shall be deemed not to be available or on deposit.

 

(c)                                  If,
on any Transfer Date, the aggregate amount of Available Finance Charge
Collections and the amount, if any, withdrawn from the Cash Collateral Account
available for deposit into the Distribution Account pursuant to subsection 4.4(a)(v)
and 4.11(c), respectively, is less than the aggregate amount required to
be deposited pursuant to subsection 4.4(a)(v), 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 to fund any deficiency pursuant to subsection 4.4(a)(v).

 

(d)                                 On
the earlier of Series 2004-C Final Maturity Date and the date on which the
Class A Note Principal Balance, the Class M Note Principal Balance and the
Class B Note Principal Balance have been paid in full, after applying any funds
on deposit in the Spread Account as described in Section 4.12(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 C Note
Principal Balance (after any payments to be made pursuant to subsection 4.4(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 C Note
Principal Balance to zero, Investment Earnings credited to the Spread Account
up to the amount required to reduce the Class C Note 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 C Noteholders in accordance with subsection 5.2(f).

 

35

 

(e)                                  On
any day following the occurrence of an Event of Default with respect to Series
2004-C and acceleration of the maturity of the Series 2004-C 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 C Noteholders, the Class A Noteholders, the Class M Noteholders and
the Class B Noteholders, in that order of priority, in accordance with Section 5.2,
to fund any shortfalls in amounts owed to such Noteholders.

 

(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 shall be
deposited into the Spread Account pursuant to subsection 4.4(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 C Note Principal Balance has been paid in full, after making any payments
to the Noteholders required pursuant to subsections 4.12(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 4.13                                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.

 

Section 4.14                                Controlled
Accumulation Period.  The Controlled
Accumulation Period is scheduled to commence at the beginning of business on
September 1, 2010; provided that if the Controlled Accumulation
Period Length (determined as described below) on any Determination Date on or
after the August 2010 Determination Date is less than 12 months, upon
written notice to the Indenture Trustee, Transferor and, each Rating Agency,
Servicer, at its option, may elect to modify the date on which the Controlled
Accumulation Period actually commences to the first Business Day of the month
that is the number of whole months prior to the month in which the Expected
Principal Payment Date occurs at least equal to the Controlled Accumulation
Period Length (so that, as a result of such election, the number of Monthly
Periods in the Controlled Accumulation Period will at least equal the
Controlled Accumulation Period Length); provided that (i) the length of
the Controlled Accumulation Period will not be less than one month, (ii) such
determination of the Controlled Accumulation Period Length shall be made on
each

 

36

 

Determination Date on and
after the August 2010 Determination Date but prior to the commencement of
the Controlled Accumulation Period, and any election to shorten the Controlled
Accumulation Period shall be subject to the subsequent lengthening of the
Controlled Accumulation Period to the Controlled Accumulation Period Length
determined on any subsequent Determination Date, but the Controlled
Accumulation Period shall in no event commence prior to the Controlled
Accumulation Date, and (iii) notwithstanding any other provision of this
Indenture Supplement to the contrary, no election to postpone the commencement
of the Controlled Accumulation Period shall be made after an Early Amortization
Event shall have occurred and be continuing with respect to any other Series.  The “Controlled Accumulation Period
Length” will mean a number of whole months such that the amount available
for distribution of principal on the Class A Notes, the Class M Notes, the
Class B Notes and the Class C Notes on the Expected Payment Date is expected to
equal or exceed the Note Principal Balance, assuming for this purpose that (1)
the payment rate with respect to Principal Collections remains constant at the
lowest level of such payment rate during the twelve preceding Monthly Periods
(or such lower payment rate as Servicer may select), (2) the total amount of
Principal Receivables in the Trust (and the principal amount on deposit in the
Excess Funding Account, if any) remains constant at the level on such date of
determination, (3) no Early Amortization Event with respect to any Series will
subsequently occur and (4) no additional Series (other than any Series being
issued on such date of determination) will be subsequently issued.  Any notice by Servicer electing to modify
the commencement of the Controlled Accumulation Period pursuant to this Section 4.14
shall specify (i) the Controlled Accumulation Period Length, (ii) the
commencement date of the Controlled Accumulation Period and (iii) the
Controlled Accumulation Amount with respect to each Monthly Period during the
Controlled Accumulation Period.  The
Servicer shall calculate the Controlled Accumulation Period Length on each
Determination Date prior to the August 2010 Determination Date as necessary
to determine the Reserve Account Funding Date.

 

Section 4.15                                Suspension
of Controlled Accumulation Period. 
(a)  The Issuer may obtain a
Qualified Maturity Agreement with prior notice to the Rating Agencies.  The commencement of the Controlled
Accumulation Period shall be suspended upon delivery by the Servicer to the
Indenture Trustee of (i) an Officer’s Certificate stating that all conditions
precedent to suspension of the Controlled Accumulation Period set forth in this
Section 4.15 have been satisfied, (ii) a copy of an executed
Qualified Maturity Agreement and (iii) an Opinion of Counsel addressed to the
Indenture Trustee as to the due authorization, execution and delivery and the
validity and enforceability of such Qualified Maturity Agreement.  The Issuer does hereby transfer, assign,
set-over, and otherwise convey to the Indenture Trustee for the benefit of the
Series 2004-C Noteholders, without recourse, all of its rights under any
Qualified Maturity Agreement obtained in accordance with this Section 4.15
and all proceeds thereof.  Such property
shall constitute part of the Trust Estate for all purposes of the
Indenture.  The foregoing transfer,
assignment, set-over and conveyance does not constitute and is not intended to
result in a creation or an assumption by the Indenture Trustee or any Noteholder
of any obligation of the Issuer or any other Person in connection with a
Qualified Maturity Agreement or under any agreement or instrument relating
thereto.

 

The Indenture Trustee
hereby acknowledges its acceptance, to the extent validly transferred,
assigned, set-over or otherwise conveyed to the Indenture Trustee, for the
benefit of the Series 2004-C Noteholders, of all of the rights previously held
by the Issuer under any

 

37

 

Qualified Maturity Agreement
obtained by the Issuer and all proceeds thereof, and declares that it shall
hold such rights upon the trust set forth herein and in the Agreement, and
subject to the terms hereof and thereof, for the benefit of the Series 2004-C
Noteholders.

 

(b)                                 The
Issuer shall cause the provider of each Qualified Maturity Agreement to deposit
into the Principal Accumulation Account on or before the Expected Principal
Payment Date an amount equal to the initial Note Principal Balance; provided,
however, that the Issuer may, if provided in the related Qualified
Maturity Agreement, fund all or a portion of such deposits with the proceeds of
the issuance of a new Series or with the Available Principal Collections with
respect to such Transfer Date.  The
amounts so deposited  shall be applied
on the Expected Principal Payment Date pursuant to subsection 4.4(c)
as if the commencement of the Controlled Accumulation Period had not been
suspended.

 

(c)                                  Each
Qualified Maturity Agreement shall terminate at the close of business on the
Expected Principal Payment Date; provided, however, that the
Issuer shall terminate a Qualified Maturity Agreement prior to such
Distribution Date, with notice to each Rating Agency, if one of the following
events occurs: (i) the Issuer obtains a substitute Qualified Maturity
Agreement, (ii) all of the following conditions are satisfied: (A) the provider
of the Qualified Maturity Agreement ceases to qualify as an Eligible
Institution, (B) the Issuer is unable to obtain a substitute Qualified Maturity
Agreement and (C) the Available Reserve Account Amount equals the Required
Reserve Account Amount or (iii) an Early Amortization Event occurs.  In addition, the Issuer may terminate a
Qualified Maturity Agreement prior to the later of (i) the date on which the
Controlled Accumulation Period was scheduled to begin, before giving effect to
the suspension of the Controlled Accumulation Period, and (ii) the date to
which the commencement of the Controlled Accumulation Period may be postponed
pursuant to Section 4.14 (as determined on the Determination Date
preceding the date of such termination), in which case the commencement of the
Controlled Accumulation Period shall be determined as if the Issuer had not
elected to suspend such commencement; provided, however, that the
available Reserve Account Amount equals the Required Reserve Account
Amount.  In the event that the provider
of a Qualified Maturity Agreement ceases to qualify as an Eligible Institution,
the Issuer shall use its best efforts to obtain a substitute Qualified Maturity
Agreement.

 

(d)                                 If
a Qualified Maturity Agreement is terminated prior to the earlier of the
Expected Principal Payment Date and the commencement of the Early Amortization
Period and the Issuer does not obtain a substitute Qualified Maturity
Agreement, the Controlled Accumulation Period shall commence on the latest of
(i) the beginning of business on September 1, 2010, (ii) at the election
of the Servicer, the date to which the commencement of the Controlled
Accumulation Period may be postponed pursuant to Section 4.l4 (as
determined on the date of such termination) and (iii) the first day of the
Monthly Period following the date of such termination.

 

Section 4.16                                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 Telerate Page 3750 as of 11:00 a.m., London time, on such date.  If such rate does not appear on Telerate
Page 3750, the rate for

 

38

 

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.

 

(b)                                 The
Class A Note Interest Rate, the Class M Note Interest Rate, the Class B Note
Interest Rate and the Class C Note Interest Rate 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
each Series 2004-C Noteholder from time to time.

 

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

 

Section 4.17                                Swaps.

 

(a)  On or prior to the Closing Date, the Issuer
shall enter into a Class A Swap with the Class A Counterparty, a Class M Swap
with the Class M Counterparty, the Class B Swap with the Class B Counterparty
and a Class C Swap with the Class C Counterparty for the benefit of the Class A
Noteholders, the Class M Noteholders, the Class B Noteholders and the Class C
Noteholders, respectively.  The
aggregate notional amount under the Class A Swap shall, at any time, be equal
to the Class A Note Principal Balance at such time.  The aggregate notional amount under the Class M Swap shall, at
any time, be equal to the Class M Note Principal Balance at such time.  The aggregate notional amount under the
Class B Swap shall, at any time, be equal to the Class B Note Principal Balance
at such time.  The aggregate notional
amount under the Class C Swap shall, at any time, be equal to the Class C Note
Principal Balance.  Net Swap Receipts
payable by the Class A Counterparty, the Class M Counterparty, the Class B
Counterparty or the Class C Counterparty shall be deposited by the Indenture
Trustee in the Collection Account on the day received and treated as Available
Finance Charge Collections.  On any
Distribution Date when there shall be a Class A Net Swap Payment, such Class A
Net Swap Payment shall be paid as provided in subsection 4.4(a)(i).  On any Distribution Date when there shall be
a Class M Net Swap Payment, such Class M Net Swap Payment shall be paid as
provided in subsection 4.4(a)(ii). 
On any Distribution Date when there shall be a Class B Net Swap Payment,
such Class B Net Swap Payment shall be paid as provided in subsection 4.4(a)(iii).  On any Distribution Date when there shall be
a Class C Net Swap Payment, such Class C Net Swap Payment shall be paid as
provided in subsection 4.4(a)(v). 
On any Distribution Date when there shall be early termination payments
or any other miscellaneous payments payable by the Issuer to the
Counterparties, such amounts shall be paid as provided in subsection 4.4(a)(xi).

 

39

 

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

 

ARTICLE V.

 

Delivery of Series
2004-C Notes; Distributions; Reports to Series 2004-C Noteholders

 

Section 5.1                                      Delivery
and Payment for the Series 2004-C Notes.

 

The Issuer shall execute
and issue, and the Indenture Trustee shall authenticate, the Series 2004-C
Notes in accordance with Section 2.3 of the Indenture.  The Indenture Trustee shall deliver the
Series 2004-C Notes to or upon the written order of the Trust when so
authenticated.

 

Section 5.2                                      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 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 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 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 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 (including amounts withdrawn from the Spread
Account (at the times and in the amounts specified in Section 4.12))
that are allocated and available on such Distribution Date and as are payable
to the Class C Noteholders pursuant to this Indenture Supplement.

 

(e)                                  The
distributions to be made pursuant to this Section 5.2 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.

 

(f)                                    Except
as provided in Section 11.2 of the Indenture with respect to a
final distribution, distributions to Series 2004-C Noteholders hereunder shall
be made by (i) check

 

40

 

mailed to each Series
2004-C Noteholder (at such Noteholder’s address as it appears in the Note
Register), except that for any Series 2004-C Notes registered in the name of
the nominee of a Clearing Agency, such distribution shall be made by wire
transfer of immediately available funds and (ii) without presentation or
surrender of any Series 2004-C Note or the making of any notation thereon.

 

Section 5.3                                      Reports
and Statements to Series 2004-C Noteholders.

 

(a)                                  On
each Distribution Date, the Indenture Trustee shall forward to each Series
2004-C 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 a statement substantially in the form of Exhibit B
prepared by the Servicer; 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 2004-C Noteholder by a request in
writing to the Servicer.

 

(d)                                 On
or before January 31 of each calendar year, beginning with
January 31, 2005, 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 2004-C Noteholder, a statement prepared by the Servicer containing the
information which is required to be contained in the statement to Series 2004-C
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 2004-C 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.

 

(e)                                  Notwithstanding
the terms of Section 3.6(b) of the Transfer and Servicing
Agreement, each Series 2004-C Noteholder agrees, by purchasing its Note, that
the report referred to in that Section need not be delivered to the
Indenture Trustee or any Rating Agency unless the Indenture Trustee or the
applicable Rating Agency agrees to execute a letter agreement relating to such
report in form and substance satisfactory to the accountants delivering the
report.

 

ARTICLE VI.

 

Series 2004-C
Early Amortization Events

 

Section 6.1                                      Series
2004-C Early Amortization Events. 
If any one of the following events shall occur with respect to the
Series 2004-C Notes:

 

41

 

(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 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 Pooling
and Servicing Agreement, the Indenture or this Indenture Supplement, which
failure has a material adverse effect on the Series 2004-C Noteholders and
which continues unremedied for a period of sixty (60) 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 2004-C Notes;

 

(b)                                 any
representation or warranty made by Transferor or the “Transferor” under the
Pooling and Servicing Agreement, in the Transfer and Servicing 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 sixty (60) 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 2004-C Notes and as a result of which the interests of the
Series 2004-C Noteholders are materially and adversely affected for such
period; provided, however, that a Series 2004-C 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)                                  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 invested amount 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;

 

(d)                                 any
Servicer Default or any “Servicer Default” under the Pooling and Servicing
Agreement shall occur;

 

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

 

42

 

(f)                                    the
Note Principal Balance shall not be paid in full on the Expected Principal
Payment Date;

 

(g)                                 the
Class A Counterparty, the Class M Counterparty, the Class B Counterparty or the
Class C Counterparty shall fail to pay any net amount payable by such
Counterparty under the Class A Swap, the Class M Swap, the Class B Swap or the
Class C Swap, as applicable, as a result of LIBOR being greater than the Class
A Swap Rate, the Class M Swap Rate, the Class B Swap Rate or the Class C Swap
Rate, as applicable, and such failure is not cured within five Business Days;

 

(h)                                 the
Class A Swap shall terminate prior to the earlier of the payment in full of the
Class A Notes and the Series Termination Date and the Issuer shall fail to
enter into a replacement Class A Swap in accordance with subsection 4.17(b)
within five Business Days; the Class M Swap shall terminate prior to the
earlier of the payment in full of the Class M Notes and the Series Termination
Date and the Issuer shall fail to enter into a replacement Class M Swap in
accordance with subsection 4.17(b) within five Business Days; the
Class B Swap shall terminate prior to the earlier of the payment in full of the
Class B Notes and the Series Termination Date and the Issuer shall fail to
enter into a replacement Class B Swap in accordance with subsection 4.17(b)
within five Business Days; or the Class C Swap shall terminate prior to the
earlier of the payment in full of the Class C Notes and the Series Termination
Date and the Issuer shall fail to enter into a replacement Class C Swap in
accordance with subsection 4.17(b) within five Business Days;

 

(i)                                     without
limiting the foregoing, the occurrence of an Event of Default with respect to
Series 2004-C and acceleration of the maturity of the Series 2004-C Notes
pursuant to Section 5.3 of the Indenture; or

 

(j)                                     the
occurrence of an Early Amortization Event as defined in the Pooling and
Servicing Agreement and specified in Section 9.1 of that Agreement;

 

then, in the case of any
event described in subsection (a), (b) or (d), after
the applicable grace period, if any, set forth in such subparagraphs, either
the Indenture Trustee or the holders of Series 2004-C Notes evidencing more
than 50% of the aggregate unpaid principal amount of Series 2004-C Notes by
notice then given in writing to the Transferor and the Servicer (and to the
Indenture Trustee if given by the Series 2004-C Noteholders) may declare that a
“Series Early Amortization Event” with respect to Series 2004-C (a “Series
2004-C Early Amortization Event”) has occurred as of the date of such notice,
and, in the case of any event described in subsection (c), (e),
(f), (g), (h), (i) or (j) a Series 2004-C
Early Amortization Event shall occur without any notice or other action on the
part of the Indenture Trustee or the Series 2004-C Noteholders immediately upon
the occurrence of such event.

 

43

 

ARTICLE VII.

 

Redemption of
Series 2004-C Notes; Final Distributions; Series Termination

 

Section 7.1                                      Optional
Redemption of Series 2004-C Notes; Final Distributions.

 

(a)                                  On
any day occurring on or after the date on which the outstanding principal
balance of the Series 2004-C Notes is reduced to 5% or less of the initial
outstanding principal balance of Series 2004-C Notes, the Servicer shall have
the option to redeem the Series 2004-C 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, on deposit in the Principal Accumulation 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 2004-C shall be reduced to zero
and the Series 2004-C Noteholders shall have no further security interest in
the Receivables.  The Reassignment
Amount shall be distributed as set forth in subsection 7.1(d).

 

(c)                                  (i)  The amount to be paid by the Transferor with
respect to Series 2004-C in connection with a reassignment of Receivables to
the Transferor pursuant to Section 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 2004-C 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 7.1 or (b) the proceeds of any sale of
Receivables pursuant to Section 5.5(a)(iii) of the Indenture with
respect to Series 2004-C, 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 Note 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
Deficiency Amount for such Distribution Date and (C) the amount of Class A
Additional Interest, if any, for such Distribution Date and any Class A
Additional Interest previously due but not distributed to the Class A
Noteholders on any prior Distribution Date, will be distributed to the Class A
Noteholders, (ii) (x) the Class M Note Principal Balance on such

 

44

 

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 and (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, will be distributed to the Class M
Noteholders, (iii) (x) the Class B Note 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 and (C) the amount of
Class B Additional Interest, if any, for such Distribution Date and any Class B
Additional Interest previously due but not distributed to the Class B
Noteholders on any prior Distribution Date, will be distributed to the Class B
Noteholders, (iv)  (x) the Class C Note
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
Distribution Date and (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
will be distributed to the Class C Noteholders, (v) on a pari passu basis, (A)
any amounts owed to the Counterparty under the Class A Swap will be paid to the
Class A Counterparty, (B) any amounts owed to the Counterparty under the Class
M Swap will be paid to the Class M Counterparty and (C) any amounts owed to the
Counterparty under the Class B Swap will be paid to the Class B Counterparty
and (vi) any excess shall be released to the Issuer.

 

Section 7.2                                      Series
Termination.

 

On the Series 2004-C
Final Maturity Date, the unpaid principal amount of the Series 2004-C Notes
shall be due and payable, and the right of the Series 2004-C Noteholders to
receive payments from the Issuer will be limited solely to the right to receive
payments pursuant to Section 5.5 of the Indenture.

 

ARTICLE VIII.

 

Miscellaneous
Provisions

 

Section 8.1                                      Ratification
of Indenture; Amendments.  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 and with the
written consent of the Class A Counterparty, the Class M Counterparty, the
Class B Counterparty and the Class C Counterparty prior to the date on which
such Supplemental Indenture takes effect if any provision of such Supplemental
Indenture materially and adversely affects the timing, amount or priority of distributions
to be made to the Class A Counterparty, the Class M Counterparty, the Class B
Counterparty and the Class C Counterparty, respectively.  For purposes of the application of Section 10.2
to any amendment of this Indenture Supplement, the Series 2004-C Noteholders
shall be the only Noteholders whose vote shall be required.

 

45

 

Section 8.2                                      Form
of Delivery of the Series 2004-C Notes. 
The Class A Notes, the Class M Notes and the Class B Notes shall be Book-Entry
Notes and shall be delivered as Registered Notes as provided in Sections 2.1
and 2.13 of the Indenture.  The
Class C Notes shall be Definitive Notes and shall be registered in the Note
Register in the name of the initial purchaser of the Class C Notes identified
in the Class C Note Purchase Agreement.

 

Section 8.3                                      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 8.4                                      GOVERNING
LAW.  THIS INDENTURE SUPPLEMENT
SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS
AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
SUCH LAWS.

 

Section 8.5                                      Limitation
of Liability.  Notwithstanding any
other provision herein or elsewhere, this Agreement has been executed and
delivered by Chase Manhattan Bank USA, National Association, not in its
individual capacity, but solely in its capacity as Owner Trustee of the Trust,
in no event shall Chase Manhattan Bank USA, National Association in its
individual capacity have any liability in respect of the representations,
warranties, or obligations of the Trust hereunder or under any other document,
as to all of which recourse shall be had solely to the assets of the Trust, and
for all purposes of this Agreement and each other document, the Owner Trustee
(as such or in its individual capacity) shall be subject to, and entitled to
the benefits of, the terms and provisions of the Trust Agreement.

 

Section 8.6                                      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 8.7                                      Additional
Provisions.  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.

 

Section 8.8                                      Additional
Requirements for Registration of and Limitations on Transfer and Exchange of
Notes.  All transfers will be
subject to the transfer restrictions set forth on the Notes.

 

 

[SIGNATURE PAGE
FOLLOWS]

 

46

 

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

 

	
   

  	
  WORLD
  FINANCIAL NETWORK CREDIT

  CARD MASTER NOTE TRUST, as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: Chase Manhattan
  Bank USA, National

  Association, not in its individual capacity, but

  solely as Owner Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John J. Cashin

  
	
   

  	
   

  	
  Name: John J. Cashin

  
	
   

  	
   

  	
  Title: Vice-President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BNY
  MIDWEST TRUST COMPANY, as

  Indenture Trustee

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ David H. Hill

  
	
   

  	
   

  	
   

  	
  Name: David H. Hill

  
	
   

  	
   

  	
   

  	
  Title: Assistant Vice
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Acknowledged and
  Accepted:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  WORLD
  FINANCIAL NETWORK NATIONAL BANK,

  as Servicer

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Robert P. Armiak

  	
   

  	
   

  	
   

  
	
   

  	
  Name: Robert P. Armiak

  	
   

  	
   

  	
   

  
	
   

  	
  Title: Senior Vice
  President and Treasurer

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WFN
  CREDIT COMPANY, LLC

  as Transferor

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Robert P. Armiak

  	
   

  	
   

  	
   

  
	
   

  	
  Name: Robert P. Armiak

  	
   

  	
   

  	
   

  
	
   

  	
  Title: Senior Vice
  President and Treasurer

  	
   

  	
   

  
							

 

S-1

 

EXHIBIT
A-1

 

FORM OF CLASS A
SERIES 2004-C FLOATING RATE ASSET BACKED NOTE

 

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

 

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

 

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

 

THE HOLDER OF THIS CLASS
A NOTE SHALL BE DEEMED TO REPRESENT AND WARRANT THAT EITHER (I) IT IS NOT
ACQUIRING THE NOTE WITH THE PLAN ASSETS OF AN “EMPLOYEE BENEFIT PLAN” AS
DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED (“ERISA”), WHICH IS SUBJECT TO TITLE I OF ERISA, A “PLAN” AS
DEFINED IN SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED
(THE “CODE”), AN ENTITY DEEMED TO HOLD THE PLAN ASSETS OF ANY OF THE FOREGOING
BY REASON OF INVESTMENT BY AN EMPLOYEE BENEFIT PLAN OR PLAN IN SUCH ENTITY, OR
A GOVERNMENTAL PLAN SUBJECT TO APPLICABLE LAW THAT IS SUBSTANTIALLY SIMILAR TO
THE FIDUCIARY RESPONSIBILITY PROVISIONS OF ERISA OR SECTION 4975 OF THE
CODE; OR (II) THE ACQUISITION AND HOLDING OF THE CLASS A NOTE WILL NOT GIVE
RISE TO A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR
SECTION 4975 OF

 

A-1-1

 

THE CODE (OR, IN THE CASE
OF A GOVERNMENTAL PLAN, ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW).

 

A-1-2

 

	
  REGISTERED

  	
   

  	
  $355,500,000

  
	
  No. R-1

  	
   

  	
  CUSIP NO. 981464
  BA 7

  

 

WORLD FINANCIAL
NETWORK CREDIT CARD

MASTER NOTE TRUST SERIES 2004-C

 

CLASS A SERIES
2004-C FLOATING RATE ASSET BACKED NOTE

 

World Financial Network
Credit Card Master Note Trust (herein referred to as the “Issuer” or the
“Trust”), a Delaware statutory trust governed by an Amended and Restated Trust
Agreement dated as of August 1, 2001 (as amended), for value received,
hereby promises to pay to Cede & Co., or registered assigns, subject to the
following provisions, the principal sum of THREE HUNDRED FIFTY-FIVE MILLION,
FIVE HUNDRED THOUSAND DOLLARS, or such greater or lesser amount as determined
in accordance with the Indenture, on the July 2015 Distribution Date,
except as otherwise provided below or in the Indenture.  The Issuer will pay interest on the unpaid
principal amount of this Note at the Class A Note Interest Rate on each
Distribution Date until the principal amount of this Note is paid in full.  Interest on this Note will accrue for each Distribution
Date from and including the most recent Distribution Date on which interest has
been paid to but excluding such Distribution Date or, for the initial
Distribution Date, from and including the Closing Date to but excluding such
Distribution Date.  Interest will be
computed on the basis of a 360-day year and the actual number of days
elapsed.  Principal of this Note shall
be paid in the manner specified in the Indenture Supplement referred to on the
reverse hereof.

 

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

 

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

 

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

 

A-1-3

 

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

 

	
   

  	
  WORLD FINANCIAL NETWORK
  CREDIT CARD

  MASTER NOTE TRUST,

  as Issuer

  
	
   

  	
  By:     Chase
  Manhattan Bank USA, National

  Association, not in its individual capacity but solely

  as Owner Trustee under the Trust Agreement

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:  September 22, 2004

  	
   

  

 

A-1-4

 

INDENTURE
TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

	
   

  	
  BNY MIDWEST TRUST
  COMPANY, as

  Indenture Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Authorized
  Signatory

  
	
   

  	
  Dated:

  	
   

  
				

 

A-1-5

 

WORLD FINANCIAL
NETWORK CREDIT CARD

MASTER NOTE TRUST SERIES 2004-C

 

CLASS A SERIES
2004-C FLOATING RATE ASSET BACKED NOTE

 

Summary of Terms
and Conditions

 

This Class A Note is one
of a duly authorized issue of Notes of the Issuer, designated as World
Financial Network Credit Card Master Note Trust, Series 2004-C (the “SERIES
2004-C NOTES”), issued under a Master Indenture dated as of August 1, 2001
(as amended and supplemented, the “MASTER INDENTURE”), between the Issuer and
BNY Midwest Trust Company, as indenture trustee (the “INDENTURE TRUSTEE”), as
supplemented by the Series 2004-C Indenture Supplement dated as of
September 22, 2004 (the “INDENTURE SUPPLEMENT”), and representing the
right to receive certain payments from the Issuer.  The term “Indenture,” unless the context otherwise requires,
refers to the Master Indenture as supplemented by the Indenture Supplement.  The Notes are subject to all of the terms of
the Indenture.  All terms used in this
Note that are defined in the Indenture shall have the meanings assigned to them
in or pursuant to the Indenture.  In the
event of any conflict or inconsistency between the Indenture and this Note, the
Indenture shall control.

 

The Class M Notes, the
Class B Notes and the Class C Notes will also be issued under the Indenture.

 

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

 

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

 

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

 

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

 

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

 

A-1-6

 

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

 

A-1-7

 

ASSIGNMENT

 

Social Security or other
identifying number of assignee                                   

 

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

 

	
  Dated:

  	
   

  	
   

  	
   

  	
  **

  
	
   

  	
   

  	
   

  	
  Signature Guaranteed: 

  
						

 

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

 

A-1-8

 

EXHIBIT
A-2

 

FORM OF CLASS M
SERIES 2004-C FLOATING RATE ASSET BACKED NOTE

 

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

 

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

 

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

 

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

 

A-2-1

 

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

 

A-2-2

 

	
  REGISTERED

  	
   

  	
  $16,875,000

  
	
  No. R- 1

  	
   

  	
  CUSIP NO. 981464
  BC 3

  

 

WORLD FINANCIAL
NETWORK CREDIT CARD

MASTER NOTE TRUST SERIES 2004-C

 

CLASS M SERIES
2004-C FLOATING RATE ASSET BACKED NOTE

 

World Financial Network
Credit Card Master Note Trust (herein referred to as the “Issuer” or the
“Trust”), a Delaware statutory trust governed by an Amended and Restated Trust
Agreement dated as of August 1, 2001 (as amended), for value received,
hereby promises to pay to Cede & Co., or registered assigns, subject to the
following provisions, the principal sum of SIXTEEN MILLION, EIGHT HUNDRED
SEVENTY-FIVE THOUSAND  DOLLARS, or such greater or lesser amount as
determined in accordance with the Indenture, on the July 2015 Distribution
Date, except as otherwise provided below or in the Indenture.  The Issuer will pay interest on the unpaid
principal amount of this Note at the Class M Note Interest Rate on each
Distribution Date until the principal amount of this Note is paid in full.  Interest on this Note will accrue for each
Distribution Date from and including the most recent Distribution Date on which
interest has been paid to but excluding such Distribution Date or, for the
initial Distribution Date, from and including the Closing Date to but excluding
such Distribution Date.  Interest will
be computed on the basis of a 360-day year and the actual number of days elapsed.  Principal of this Note shall be paid in the
manner specified in the Indenture Supplement referred to on the reverse hereof.

 

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

 

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

 

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

 

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

 

A-2-3

 

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

 

	
   

  	
  WORLD FINANCIAL NETWORK
  CREDIT

  CARD MASTER NOTE TRUST,

  as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:     Chase
  Manhattan Bank USA, National

  Association, not in its individual capacity but solely

  as Owner Trustee under the Trust Agreement

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:  September 22, 2004

  	
   

  

 

A-2-4

 

INDENTURE
TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

	
   

  	
  BNY MIDWEST TRUST
  COMPANY,

  as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Authorized
  Signatory

  
	
   

  	
  Dated:

  	
   

  
				

 

A-2-5

 

WORLD FINANCIAL
NETWORK CREDIT CARD

MASTER NOTE TRUST SERIES 2004-C

 

CLASS M SERIES
2004-C FLOATING RATE ASSET BACKED NOTE

 

Summary of Terms
and Conditions

 

This Class M Note is one
of a duly authorized issue of Notes of the Issuer, designated as World
Financial Network Credit Card Master Note Trust, Series 2004-C (the “SERIES
2004-C NOTES”), issued under a Master Indenture dated as of August 1, 2001
(as amended and supplemented, the “MASTER INDENTURE”), between the Issuer and
BNY Midwest Trust Company, as indenture trustee (the “INDENTURE TRUSTEE”), as
supplemented by the Series 2004-C Indenture Supplement dated as of
September 22, 2004 (the “INDENTURE SUPPLEMENT”), and representing the
right to receive certain payments from the Issuer.  The term “Indenture,” unless the context otherwise requires, refers
to the Master Indenture as supplemented by the Indenture Supplement.  The Notes are subject to all of the terms of
the Indenture.  All terms used in this
Note that are defined in the Indenture shall have the meanings assigned to them
in or pursuant to the Indenture.  In the
event of any conflict or inconsistency between the Indenture and this Note, the
Indenture shall control.

 

The Class A Notes, the
Class B Notes and the Class C Notes will also be issued under the Indenture.

 

Payments of principal and
interest on the Class M Notes  are
subordinated to payments of principal and interest on the Class A Notes
pursuant to and in accordance with the Indenture.

 

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

 

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

 

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

 

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

 

A-2-6

 

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

 

A-2-7

 

ASSIGNMENT

 

Social
Security or other identifying number of assignee                              

 

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

 

	
  Dated:

  	
   

  	
  ,

  	
   

  	
   

  	
   

  	
  **

  
	
   

  	
   

  	
   

  	
  Signature Guaranteed: 

  
								

 

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

 

A-2-8

 

EXHIBIT
A-3

 

FORM OF CLASS B
SERIES 2004-C FLOATING RATE ASSET BACKED NOTE

 

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

 

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

 

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

 

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

 

A-3-1

 

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

 

A-3-2

 

	
  REGISTERED

  	
   

  	
  $21,375,000

  
	
  No. R-1

  	
   

  	
  CUSIP NO. 981464
  BB 5

  

 

WORLD FINANCIAL
NETWORK CREDIT CARD

MASTER NOTE TRUST SERIES 2004-C

 

CLASS B SERIES
2004-C FLOATING RATE ASSET BACKED NOTE

 

World Financial Network
Credit Card Master Note Trust (herein referred to as the “Issuer” or the
“Trust”), a Delaware statutory trust governed by an Amended and Restated Trust
Agreement dated as of August 1, 2001 (as amended), for value received,
hereby promises to pay to Cede & Co., or registered assigns, subject to the
following provisions, the principal sum of TWENTY-ONE MILLION, THREE HUNDRED
SEVENTY-FIVE THOUSAND DOLLARS, or such greater or lesser amount as determined
in accordance with the Indenture, on the July 2015 Distribution Date,
except as otherwise provided below or in the Indenture.  The Issuer will pay interest on the unpaid principal
amount of this Note at the Class B Note Interest Rate on each Distribution Date
until the principal amount of this Note is paid in full.  Interest on this Note will accrue for each
Distribution Date from and including the most recent Distribution Date on which
interest has been paid to but excluding such Distribution Date or, for the
initial Distribution Date, from and including the Closing Date to but excluding
such Distribution Date.  Interest will
be computed on the basis of a 360-day year and the actual number of days
elapsed.  Principal of this Note shall
be paid in the manner specified in the Indenture Supplement referred to on the
reverse hereof.

 

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

 

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

 

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

 

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

 

A-3-3

 

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

 

	
   

  	
  WORLD FINANCIAL NETWORK
  CREDIT

  CARD MASTER NOTE TRUST,

  as Issuer

  
	
   

  	
  By:     Chase
  Manhattan Bank USA, National

  Association, not in its individual capacity but solely

  as Owner Trustee under the Trust Agreement

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:  September 22, 2004

  	
   

  

 

A-3-4

 

INDENTURE
TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

	
   

  	
  BNY MIDWEST TRUST
  COMPANY,

  as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Authorized
  Signatory

  
	
   

  	
  Dated:

  	
   

  
				

 

A-3-5

 

WORLD FINANCIAL
NETWORK CREDIT CARD

MASTER NOTE TRUST SERIES 2004-C

 

CLASS B SERIES
2004-C FLOATING RATE ASSET BACKED NOTE

 

Summary of Terms
and Conditions

 

This Class B Note is one
of a duly authorized issue of Notes of the Issuer, designated as World
Financial Network Credit Card Master Note Trust, Series 2004-C (the “Series
2004-C Notes”), issued under a Master Indenture dated as of August 1, 2001
(as amended and supplemented, the “Master Indenture”), between the Issuer and
BNY Midwest Trust Company, as indenture trustee (the “Indenture Trustee”), as
supplemented by the Series 2004-C Indenture Supplement dated as of
September 22, 2004 (the “Indenture Supplement”), and representing the
right to receive certain payments from the Issuer.  The term “Indenture,” unless the context otherwise requires, refers
to the Master Indenture as supplemented by the Indenture Supplement.  The Notes are subject to all of the terms of
the Indenture.  All terms used in this
Note that are defined in the Indenture shall have the meanings assigned to them
in or pursuant to the Indenture.  In the
event of any conflict or inconsistency between the Indenture and this Note, the
Indenture shall control.

 

The Class A Notes, the
Class M Notes and the Class C Notes will also be issued under the Indenture.

 

Payments of principal and
interest on the Class B Notes are subordinated to payments of principal and
interest on the Class A Notes and the Class M Notes pursuant to and in
accordance with the Indenture.

 

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

 

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

 

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

 

The Issuer, the
Transferor, the Indenture Trustee and any agent of the Issuer, the Transferor
or the Indenture Trustee shall treat the person in whose name this Class B Note
is registered as the owner hereof for all purposes, and neither the Issuer, the
Transferor, the

 

A-3-6

 

Indenture Trustee nor any
agent of the Issuer, the Transferor or the Indenture Trustee shall be affected
by notice to the contrary.

 

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

 

A-3-7

 

ASSIGNMENT

 

Social Security or other
identifying number of assignee                                .

 

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

 

	
  Dated:

  	
   

  	
  ,

  	
   

  	
   

  	
   

  	
  **

  
	
   

  	
   

  	
   

  	
  Signature Guaranteed: 

  
								

 

 

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

 

A-3-8

 

EXHIBIT
A-4

 

FORM OF CLASS C
SERIES 2004-C FLOATING RATE ASSET BACKED NOTE

 

THIS NOTE HAS NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
IN RELIANCE UPON EXEMPTIONS PROVIDED BY THE SECURITIES ACT.  NO RESALE OR OTHER TRANSFER OF THIS NOTE MAY
BE MADE EXCEPT IN COMPLIANCE WITH THE REGISTRATION PROVISIONS OF THE SECURITIES
ACT AND ANY APPLICABLE PROVISIONS UNDER STATE BLUE SKY OR SECURITIES LAWS OR
PURSUANT TO AN AVAILABLE EXEMPTION FROM SUCH PROVISIONS.  THE TRANSFER OF THIS NOTE IS SUBJECT TO
CERTAIN CONDITIONS SET FORTH IN A NOTE PURCHASE AGREEMENT RELATING HERETO.

 

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

 

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

 

THE HOLDER OF THIS CLASS
C NOTE SHALL BE DEEMED TO REPRESENT AND WARRANT THAT EITHER (I) IT IS NOT
ACQUIRING THE NOTE WITH THE PLAN ASSETS OF AN “EMPLOYEE BENEFIT PLAN” AS
DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED (“ERISA”), WHICH IS SUBJECT TO TITLE I OF ERISA, A “PLAN” AS
DEFINED IN SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED
(THE “CODE”), AN ENTITY DEEMED TO HOLD THE PLAN ASSETS OF ANY OF THE FOREGOING
BY REASON OF INVESTMENT BY AN EMPLOYEE BENEFIT PLAN OR PLAN IN SUCH ENTITY, OR
A GOVERNMENTAL PLAN SUBJECT TO APPLICABLE LAW THAT IS SUBSTANTIALLY SIMILAR TO
THE FIDUCIARY RESPONSIBILITY PROVISIONS OF ERISA OR SECTION 4975 OF THE
CODE; OR (II) THE ACQUISITION AND HOLDING OF THE CLASS C NOTE WILL NOT GIVE
RISE TO A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR
SECTION 4975 OF

 

A-4-1

 

THE CODE (OR, IN THE CASE
OF A GOVERNMENTAL PLAN, ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW).

 

A-4-2

 

	
  REGISTERED

  	
   

  	
  $56,250,000

  
	
  No. R- 1

  	
   

  	
   

  

 

WORLD FINANCIAL
NETWORK CREDIT CARD

MASTER NOTE TRUST SERIES 2004-C

 

CLASS C SERIES
2004-C FLOATING RATE ASSET BACKED NOTE

 

World Financial Network
Credit Card Master Note Trust (herein referred to as the “Issuer” or the
“Trust”), a Delaware statutory trust governed by an Amended and Restated Trust
Agreement dated as of August 1, 2001 (as amended), for value received,
hereby promises to pay to [                             ], or registered assigns, subject to
the following provisions, the principal sum of FIFTY-SIX MILLION TWO HUNDRED
FIFTY THOUSAND DOLLARS, or such greater or lesser amount as determined in
accordance with the Indenture, on the July 2015 Distribution Date, except
as otherwise provided below or in the Indenture.  The Issuer will pay interest on the unpaid principal amount of
this Note at the Class C Note Interest Rate on each Distribution Date until the
principal amount of this Note is paid in full. 
Interest on this Note will accrue for each Distribution Date from and
including the most recent Distribution Date on which interest has been paid to
but excluding such Distribution Date or, for the initial Distribution Date,
from and including the Closing Date to but excluding such Distribution
Date.  Interest will be computed on the
basis of a 360-day year and the actual number of days elapsed.  Principal of this Note shall be paid in the
manner specified in the Indenture Supplement referred to on the reverse hereof.

 

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

 

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

 

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

 

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

 

A-4-3

 

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

 

	
   

  	
  WORLD FINANCIAL NETWORK
  CREDIT

  CARD MASTER NOTE TRUST,

  as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:     Chase
  Manhattan Bank USA, National

  Association, not in its individual capacity but solely

  as Owner Trustee under the Trust Agreement

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:  September 22, 2004

  	
   

  

 

A-4-4

 

INDENTURE
TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

	
   

  	
  BNY MIDWEST TRUST
  COMPANY,

  as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Authorized
  Signatory

  
	
   

  	
  Dated:

  	
   

  
				

 

A-4-5

 

WORLD FINANCIAL
NETWORK CREDIT CARD

MASTER NOTE TRUST SERIES 2004-C

 

CLASS C SERIES
2004-C FLOATING RATE ASSET BACKED NOTE

 

Summary of Terms
and Conditions

 

This Class C Note is one
of a duly authorized issue of Notes of the Issuer, designated as World
Financial Network Credit Card Master Note Trust, Series 2004-C (the “SERIES
2004-C NOTES”), issued under a Master Indenture dated as of August 1, 2001
(as amended and supplemented, the “MASTER INDENTURE”), between the Issuer and
BNY Midwest Trust Company, as indenture trustee (the “INDENTURE TRUSTEE”), as
supplemented by the Series 2004-C Indenture Supplement dated as of
September 22, 2004 (the “INDENTURE SUPPLEMENT”), and representing the
right to receive certain payments from the Issuer.  The term “Indenture,” unless the context otherwise requires,
refers to the Master Indenture as supplemented by the Indenture
Supplement.  The Notes are subject to all
of the terms of the Indenture.  All
terms used in this Note that are defined in the Indenture shall have the
meanings assigned to them in or pursuant to the Indenture.  In the event of any conflict or
inconsistency between the Indenture and this Note, the Indenture shall control.

 

The Class A Notes, the
Class M Notes and the Class B Notes will also be issued under the Indenture.

 

Payments of principal and
interest on the Class C Notes  are
subordinated to payments of principal and interest on the Class A Notes, the
Class M Notes and the Class B Notes pursuant to and in accordance with the
Indenture.

 

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

 

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

 

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

 

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

 

A-4-6

 

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

 

A-4-7

 

ASSIGNMENT

 

Social Security or other
identifying number of assignee                              

 

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

 

	
  Dated:

  	
   

  	
  ,

  	
   

  	
   

  	
   

  	
  **

  
	
   

  	
   

  	
   

  	
  Signature Guaranteed: 

  
								

 

 

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

 

A-4-8

 

EXHIBIT
B

 

FORM OF MONTHLY
PAYMENT INSTRUCTIONS AND

NOTIFICATION TO INDENTURE TRUSTEE

 

WORLD FINANCIAL
NETWORK CREDIT CARD MASTER NOTE TRUST

SERIES 2004-C

 

The undersigned, a duly
authorized representative of World Financial Network National Bank (“WFN”),
as Servicer (the “Servicer”) pursuant to the Transfer and Servicing
Agreement, dated as of August 1, 2001 (as amended, the “Transfer and
Servicing Agreement”) among the Servicer, WFN Credit Company, LLC, as
transferor (the “Transferor”) and World Financial Network Credit Card
Master Note Trust, as issuer (the “Issuer”), does hereby certify as
follows:

 

A.                                   Capitalized
terms used in this certificate have their respective meanings set forth in the
Master Indenture dated as of August 1, 2001 (as amended and supplemented,
the “Indenture”) between the Issuer and BNY Midwest Trust Company, as
indenture trustee (the “Indenture Trustee”) as supplemented by the
2004-C Indenture Supplement dated as of September 22,  2004 between the Issuer and Indenture
Trustee (as amended and supplemented, the “Indenture Supplement”).

 

B.                                     WFN
is the Servicer.

 

C.                                     The
undersigned is an Authorized Officer of the Servicer.

 

I.                                         INSTRUCTION
TO MAKE A WITHDRAWAL

 

Pursuant to Section 4.4,
the Servicer does hereby instruct the Indenture Trustee (i) to make a
withdrawal from the Distribution Account (or other Series Account as specified
below) on
                        ,
200  , which date is a Distribution Date under the Indenture
Supplement, in an aggregate amount (equal to the Available Finance Charge
Collections) as set forth below in respect of the following amounts and (ii) to
apply the proceeds of such withdrawal in accordance with Section 4.4(a):

 

	
   

  	
  A.

  	
  Pursuant to Subsection 4.4(a)(i):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Class A Monthly
  Interest for the preceding Interest Period

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Monthly Interest
  previously due but not distributed to Class A Noteholders

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Additional Interest
  previously due but not distributed to Class A Noteholders

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Class A Net Swap
  Payment

  	
   

  	
  $

  	
   

  

 

B-1

 

	
   

  	
  B.

  	
  Pursuant to Subsection 4.4(a)(ii):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Class M Monthly
  Interest for the preceding Interest Period

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Monthly Interest
  previously due but not distributed to Class M Noteholders

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Additional Interest
  previously due but not distributed to Class M Noteholders

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Class M Net Swap
  Payment

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  C.

  	
  Pursuant to Subsection 4.4(a)(iii):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Class B Monthly
  Interest for the preceding Interest Period

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Monthly Interest
  previously due but not distributed to Class B Noteholders

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Additional Interest
  previously due but not distributed to Class B Noteholders

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Class B Net Swap
  Payment

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  D.

  	
  Pursuant to Subsection 4.4(a)(iv):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Noteholder Servicing
  Fee for such Distribution Date, plus the amount of any Noteholder Servicing Fee previously due but not
  distributed to the Servicer on a prior Distribution Date

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  E.

  	
  Pursuant to Subsection 4.4(a)(v):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Class C Monthly
  Interest for the preceding Interest Period

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Monthly Interest
  previously due but not distributed to Class C Noteholders

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Additional Interest
  previously due but not distributed to Class C Noteholders

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Class C Net Swap
  Payment

  	
   

  	
  $

  	
   

  

 

B-2

 

	
   

  	
  F.

  	
  Pursuant to Subsection 4.4(a)(vi) from the
  Principal Account:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Investor Default Amount
  to be treated as Available Principal Collections

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Investor Uncovered
  Dilution Amount for such Distribution Date to be treated as Available
  Principal Collections

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  G.

  	
  Pursuant to Subsection 4.4(a)(vii):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Investor Charge Offs
  and the amount of Reallocated Principal Collections not previously reimbursed
  to be treated as Available Principal Collections

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  H.

  	
  Pursuant to Subsection 4.4(a)(viii):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Amount to be deposited
  into the Cash Collateral Account

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  I.

  	
  Pursuant to Subsection 4.4(a)(ix):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Amount to be deposited
  into the Reserve Account

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  J.

  	
  Pursuant to Subsection 4.4(a)(x):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Amount to be deposited
  in the Spread Account

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  K.

  	
  Pursuant to Subsection 4.4(a)(xi):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Early termination
  payments or other additional payments owed to be paid to the Class A
  Counterparty

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Early termination
  payments or other additional payments owed to be paid to the Class M
  Counterparty

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Early termination
  payments or other additional payments owed to be paid to the Class B
  Counterparty

  	
   

  	
  $

  	
   

  

 

B-3

 

	
   

  	
   

  	
  Early termination
  payments or other additional payments owed to be paid to the Class C
  Counterparty

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  L.

  	
  Pursuant to Subsection 4.4(a)(xii):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Other payments owed to
  the Class C Noteholders under the Class C Note Purchase Agreement

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  M.

  	
  Pursuant to Subsection 4.4(a)(xiii):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Additional amounts
  designated by the Transferor to the Servicer and the Indenture Trustee to be
  paid from Available Finance Charge Collections

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  N.

  	
  Pursuant to Subsection 4.4(a)(xiv):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The balance will
  constitute Excess Finance Charge Collections for such Distribution Date

  	
   

  	
  $

  	
   

  

 

Pursuant to Section 4.4(b)
and (c), the Servicer does hereby instruct the Indenture Trustee (i) to make a
withdrawal from the Distribution Account (or other Series Account specified
below) on
                        ,
200  , which date is a Distribution Date under the Indenture Supplement,
in an aggregate amount (equal to the Available Principal Collections) as set
forth below in respect of the following amounts and (ii) to apply the proceeds
of such withdrawal in accordance with Section 4.4(b) and (c):

 

	
   

  	
  A.

  	
  Pursuant to Subsection 4.4(b):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  During the Revolving
  Period, amount equal to the Available Principal Collections to be treated as
  Shared Principal Collections and applied in accordance with Section 8.5 of the Indenture

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  Pursuant to Subsection 4.4(c)(i):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  During the Controlled
  Accumulation Period, Monthly Principal for such Distribution Date to be
  deposited into the Principal Accumulation Account

  	
   

  	
  $

  	
   

  

 

B-4

 

	
   

  	
  C.

  	
  Pursuant to Subsection 4.4(c)(ii):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  During the Early
  Amortization Period, Monthly Principal for such Distribution Date for payment
  to the Class A Noteholders on such Distribution Date until the Class A Note
  Principal Balance has been paid in full

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  D.

  	
  Pursuant to Subsection 4.4(c)(iii):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  During the Early
  Amortization Period, after giving effect to Clause (C) above, if any
  remaining Monthly Principal, to the Class M Noteholders on such Distribution
  Date until the Class M Note Principal Balance has been paid in full

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  E.

  	
  Pursuant to Subsection 4.4(c)(iv):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  During the Early
  Amortization Period, after giving effect to Clause (D) above, if any
  remaining Monthly Principal, to the Class B Noteholders on such Distribution
  Date until the Class B Note Principal Balance has been paid in full

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  F.

  	
  Pursuant to Subsection 4.4(c)(v):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  During the Early
  Amortization Period, after giving effect to Clause (E) above, if any
  remaining Monthly Principal, to the Class C Noteholders, on such Distribution
  Date until the Class C Note Principal Balance has been paid in full

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  G.

  	
  Pursuant to Subsection 4.4(c)(vi):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Amount, if any,
  remaining after giving effect to Clauses (B) through (F) above, to be treated
  as Shared Principal Collections

  	
   

  	
  $

  	
   

  

 

Pursuant to Section 4.6,
the Servicer does hereby instruct the Indenture Trustee (i) to make a
withdrawal from the Distribution Account on
                        ,
200  , which date is a Distribution Date under the Indenture
Supplement, in an aggregate amount (equal to the Available Principal
Collections) as set forth below in respect of the following amounts and (ii) to
apply the proceeds of such withdrawal in accordance with Section 4.6:

 

B-5

 

	
   

  	
   

  	
  Reallocated Principal
  Collections to fund any deficiency pursuant to and in the priority set forth subsections 4.4(a)(i), (ii), (iii),
  (iv) and (v)(B) of the
  Indenture Supplement

  	
   

  	
  $

  	
   

  

 

Pursuant to Section 4.9,
the Servicer does hereby instruct the Indenture Trustee to transfer from the
Principal Accumulation Account to the Collection Account, the Principal
Accumulation Investment Proceeds on deposit in the Principal Accumulation
Account for application as Available Finance Charge Collections in the
following amount.

 

	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  

 

Pursuant to Section 4.10,
the Servicer does hereby instruct the Indenture Trustee to withdraw from the
Reserve Account an amount equal to any Reserve Account Surplus to be deposited
into the Spread Account in accordance with Section 4.10(e), in the
following amount.

 

	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  

 

Pursuant to Section 4.12,
the Servicer does hereby instruct the Indenture Trustee to withdraw from the
Spread Account an amount equal to a deficiency in Class C Monthly Interest and
Class C Net Swap Payments up to the Available Spread Account Amount, in the
following amount.

 

	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  

 

II.                                     INSTRUCTIONS
TO MAKE CERTAIN PAYMENTS

 

Pursuant to Section 5.2,
the Servicer does hereby instruct the Indenture Trustee or the Paying Agent as
the case may be, to pay in accordance with Section 5.2 from the
Collection Account or the Principal Accumulation Account, as applicable, on
                              ,
which date is a Distribution Date under the Indenture Supplement, the following
amounts:

 

	
   

  	
  A.

  	
  Pursuant to Subsection 5.2(a):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (1)

  	
  Class A Noteholder’s pro rata
  share of the amounts on deposit in the Distribution Account that are
  allocated and available on such Distribution Date to pay interest on the
  Class A Notes pursuant to the Indenture Supplement

  	
   

  	
  $

  	
   

  

 

B-6

 

	
   

  	
  (2)

  	
  Class A Noteholder’s pro rata
  share of the amounts on deposit in the Distribution Account that are
  allocated and available on such Distribution Date to pay principal of the
  Class A Notes pursuant to the Indenture Supplement

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  Pursuant to Subsection 5.2(b):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (1)

  	
  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 to pay interest on the
  Class M Notes pursuant to the Indenture Supplement

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (2)

  	
  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 to pay principal of the
  Class M Notes pursuant to the Indenture Supplement

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  C.

  	
  Pursuant to Subsection 5.2(c):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (1)

  	
  Class B Noteholder’s pro rata
  share of the amounts on deposit in the Distribution Account that are
  allocated and available on such Distribution Date to pay interest on the
  Class B Notes pursuant to the Indenture Supplement

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (2)

  	
  Class B Noteholder’s pro rata
  share of the amounts on deposit in the Distribution Account that are
  allocated and available on such Distribution Date to pay principal of the
  Class B Notes pursuant to the Indenture Supplement

  	
   

  	
  $

  	
   

  

 

B-7

 

	
   

  	
  D.

  	
  Pursuant to Subsection 5.2(d):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (1)

  	
  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 to pay interest of the
  Class C Notes pursuant to the Indenture Supplement, including amounts
  withdrawn from the Spread Account

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (2)

  	
  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 to pay principal on the
  Class C Notes pursuant to the Indenture Supplement

  	
   

  	
  $

  	
   

  

 

B-8

 

IN WITNESS WHEREOF, the
undersigned has duly executed this certificate this
                      
day of
                                ,
200  .

 

	
   

  	
  WORLD FINANCIAL NETWORK
  NATIONAL

  BANK, as Servicer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

EXHIBIT
C

 

FORM OF MONTHLY
NOTEHOLDERS’ STATEMENT

 

WORLD FINANCIAL
NETWORK CREDIT CARD

MASTER NOTE TRUST

SERIES  2002-A, SERIES 2003-A , SERIES 2004-A,
SERIES 2004-B and SERIES 2004-C

 

Pursuant to the Master
Indenture, dated as of August 1, 2001, (as amended and supplemented, the
“Indenture”) between World Financial Network Credit Card Master Note Trust (the
“Issuer”) and BNY Midwest Trust Company, as indenture trustee (the “Indenture
Trustee”), as supplemented by the Series 2001-A Indenture Supplement, dated as
of August 21, 2001, the Series 2002-A Indenture Supplement, dated as of
November 7, 2002, the Series 2003-A Indenture Supplement, dated as of
June 29, 2003 and the Series 2004-A Indenture Supplement, dated as of May
19, 2004, each  between the Issuer and
the Indenture Trustee (each, an “Indenture Supplement”), World Financial
Network National Bank, as Servicer (the “Servicer”) under the Transfer and
Servicing Agreement,  dated as of
August 1, 2001 (as amended, the “Transfer and Servicing Agreement”)
between the Servicer, WFN Credit Company, as LLC, as Transferor and the Issuer
is required to prepare certain information each month regarding current
distributions to the Series 2004-A Noteholders and the performance of the Trust
during the previous month.  The
information required to be prepared with respect to the Distribution Date of
[         ], 200[  ], and with respect to the performance of
the Trust during the month of [  ] 200[  ] is set forth below.  Capitalized terms used herein are defined in
the Indenture and the Indenture Supplements.

 

	
   

  	
  MONTHLY
  PERIOD:

  	
   

  
	
   

  	
  DETERMINATION
  DATE:

  	
   

  
	
   

  	
  DISTRIBUTION
  DATE:

  	
   

  
	
   

  	
  NUMBER
  OF DAYS IN PERIOD

  	
   

  

 

	
   

  	
   

  	
  Series
  2002-A

  	
   

  	
  Series
  2003-A

  	
   

  	
  Series
  2004-A

  	
   

  	
  Series
  2004-B

  	
   

  	
  Series
  2004-C

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  I.
  DEAL PARAMETERS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (a) Class A/A-1
  Initial Note Principal Balance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b) Class A-2
  Initial Note Principal Balance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c) Class M
  Initial Note Principal Balance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (d) Class B
  Initial Note Principal Balance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (e) Class C/C-1
  Initial Note Principal Balance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (f) Class C-2
  Initial Note Principal Balance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (g) Total
  Initial Note Principal Balance (a + b + c + d + e + f)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (h) Class
  A/A-1/A-2 Initial Note Principal Balance %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (i) Class M
  Initial Note Principal Balance %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (j) Class B
  Initial Note Principal Balance %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (k) Class
  C/C-1/C-2/ Initial Note Principal Balance %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (l) Required
  Retained Transferor Percentage

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (m) Additional
  Minimum Transferor Percentage (2% Nov-Jan; 0% otherwise)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (n) LIBOR rate
  as of most recent reset day

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (o) Class A/A-1
  Rate (LIBOR + Spread)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (p) Class A/A-1
  Swap Rate

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (q) Class A-2
  Rate (LIBOR + Spread)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (r) Class A-2
  Swap Rate

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

C-1

 

	
  (s) Class M Rate
  (LIBOR + Spread)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (t) Class M Swap
  Rate

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (u) Class B Rate
  (LIBOR + Spread)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (v) Class B Swap
  Rate

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (w) Class C/C-1
  Rate (LIBOR + Spread)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (x) Class C/C-1
  Swap Rate

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (y) Class C-2
  Rate (LIBOR + Spread)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (z) Class C-2
  Swap Rate

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (aa) Servicing
  Fee Percentage

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Series
  2002-A

  	
   

  	
  Series
  2003-A

  	
   

  	
  Series
  2004-A

  	
   

  	
  Series
  2004-B

  	
   

  	
  Series
  2004-C

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.
  COLLATERAL AMOUNTS AND ALLOCATION PERCENTAGES

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Monthly Period

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (a) Initial
  Collateral Amount

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b) Principal
  Payments made to Noteholders

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c) Principal
  Accumulation Account Balance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (d) Unreimbursed
  Investor Charge-offs and Reallocated Principal Collections

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (e) Collateral
  Amount- End of Current Monthly Period

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (f) Allocation
  Percentage- Finance Charges Collections and Default Amounts

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (g) Allocation
  Percentage- Principal Collections

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  III.
  RECEIVABLES IN THE TRUST

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (a) Beginning of
  the Month Principal Receivables

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b) Collection
  of Principal Receivables

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c) Defaulted
  Receivables (principal charge-offs):

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (d) Dilution
  (Principal net of Debit Adjustments):

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (e) Sales
  (principal receivables generated):

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (f) Net
  (Removal)/Addition of Principal Receivables:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (g) End of Month
  Principal Receivables (a - b - c - d + e + f)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (h) Recoveries
  of previously Charged-off Receivables:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (i) Beginning of
  the Month Finance Charge Receivables

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (j) End of the
  Month Finance Charge Receivables

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (k) Total
  Receivables as of 6 months prior to this distribution date

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IV.
  RECEIVABLES PERFORMANCE SUMMARY

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COLLECTIONS:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (a) Collections
  of Principal Receivables

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b) Collections
  of Finance Charge Receivables

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c) Total
  Collections (a+b).

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (d) Monthly
  Payment Rate (% of Beginning Total Receivables Outstanding)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DELINQUENCIES
  AND LOSSES:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  End of the month
  delinquencies:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (e) 1-30 days
  delinquent (CA1)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (f) 31-60 days
  delinquent (CA2)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (g) 61-90 days
  delinquent (CA3)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (h) 91-120 days
  delinquent (CA4)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (i) 121-150 days
  delinquent (CA5)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (j) 151+ days
  delinquent (CA6)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

C-2

 

	
  (k) Total
  delinquencies (e +f + g + h + i + j)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHARGE-OFFS:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (l) Gross
  Principal Charge-Offs (% of End of Month Total Principal Receivables)

  	
   

  	
   

  	
   

  	
  (annualized)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (m) Gross
  Principal Charge-Offs (% of Total Principal Receivables (as of 6 mos prior))

  	
   

  	
   

  	
   

  	
  (annualized)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (n) Net
  Principal Charge-Offs (% of End of Month Total Principal Receivables)

  	
   

  	
   

  	
   

  	
  (annualized)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  YIELD:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (o) Portfolio
  Yield

  	
   

  	
   

  	
   

  	
  (annualized)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (p) Base Rate

  	
   

  	
   

  	
   

  	
  (annualized)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (q) Excess
  Finance Charge Collections %

  	
   

  	
   

  	
   

  	
  (annualized)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V.
  TRANSFEROR INTEREST

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (a) Required
  Retained Transferor Percentage

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b) Additional
  Minimum Transferor Percentage (2% Nov-Jan; 0% otherwise)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c) Average 30
  Day Transferor Amount

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (d) Average 30
  Day Minimum Transferor Amount

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (e) Transferor
  Percentage at end of Monthly Period

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (f) Beginning
  Transferor’s Interest

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (g) Ending
  Transferor’s Interest

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (h) Required
  Transferor’s Interest ((V.a + V.b)*V.h)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (i) Excess
  Funding Account Balance at end of Monthly Period

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (j) Sum of
  Principal Receivables and Excess Funding Account at end of Monthly Period (g+
  III.g)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Series
  2002-A

  	
   

  	
  Series
  2003-A

  	
   

  	
  Series
  2004-A

  	
   

  	
  Series
  2004-B

  	
   

  	
  Series
  2004-C

  	
   

  
	
  VI.
  TRUST ACCOUNT BALANCES AND EARNINGS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ACCOUNT
  BALANCES:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (a) Finance
  Charge Account

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b) Cash
  Collateral Account

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c) Spread
  Account

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (d) Reserve
  Account

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (e) Principal
  Account

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (f) Principal
  Accumulation Account

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INTEREST AND
  EARNINGS:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (g) Interest and
  Earnings on Finance Charge Account

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (h) Interest and
  Earnings on Cash Collateral Account

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (i) Interest and
  Earnings on Spread Account

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (j) Interest and
  Earnings on Reserve Account

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (k) Interest and
  Earnings on Principal Accumulation Account

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (l) Interest and
  Earnings on Principal Funding Account

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Series
  2002-A

  	
   

  	
  Series
  2003-A

  	
   

  	
  Series
  2004-A

  	
   

  	
  Series
  2004-B

  	
   

  	
  Series
  2004-C

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VII.
  ALLOCATION and APPLICATION of COLLECTIONS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (a) Floating
  Allocation of Finance Charges

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b) Class A/A-1
  Monthly Interest

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c) Class A-2
  Monthly Interest

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (d) Class A/A-1
  Swap Payment Due to Swap Provider

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (e) Class A/A-2
  Swap Payment Due to Swap Provider

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (f) Class M
  Monthly Interest

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (g) Class M Swap
  Payment Due to Swap Provider

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (h) Class B
  Monthly Interest

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (i) Class B Swap
  Payment Due to Swap Provider

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (j) Servicing
  Fee (Beginning Collateral Amount*2%/12)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (k) Class C/C-1
  Monthly Interest

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (l) Class C-2
  Monthly Interest

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

C-3

 

	
  (m) Class C/C-1
  Swap Payment Due to Swap Provider

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (n) Class C-2
  Swap Payment Due to Swap Provider

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (o) Investor
  Default Amounts

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (p) Uncovered
  Dilution Amounts

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (q) Unreimbursed
  Investor Chargeoffs and Reallocated Principal Collections

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (r) Required to
  be Deposited into Cash Collateral Account

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (s) Required
  Reserve Account Amount

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (t) Required to
  be Deposited into the Spread Account

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (u) Required
  Payments and Deposits Relating to Interest Rate Swaps

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (v) Other
  Payments Required to be made

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (w) Excess
  Finance Charge Collections (a-b-c-d-e-f-g-h-i-j-k-l-m-n-o-p-q-r-s-t-u-v)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Series
  2002-A

  	
   

  	
  Series
  2003-A

  	
   

  	
  Series
  2004-A

  	
   

  	
  Series
  2004-B

  	
   

  	
  Series
  2004-C

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VIII.
  INVESTOR CHARGE-OFFS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (a) Investor
  Defaults and Uncovered Dilution

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b) Reimbursed
  from Available Funds

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c) Reimbursed
  from Cash Collateral Account

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (d) Reimbursed
  from Reallocated Principal Collections

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (e) Total
  reimbursed in respect of Investor Defaults and Dilution

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (f) Investor
  Charge-off (a - e)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Series
  2002-A

  	
   

  	
  Series
  2003-A

  	
   

  	
  Series
  2004-A

  	
   

  	
  Series
  2004-B

  	
   

  	
  Series
  2004-C

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IX.
  YIELD and BASE RATE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Base
  Rate

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (Monthly
  interest, any net swap payments and monthly servicing fees divided by
  collateral amounts plus amounts on deposit in the principal accumulation
  account)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (a) Base Rate
  (current month)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b) Base Rate
  (prior month)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c) Base Rate (2
  months prior)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (d) 3 Month
  Average Base Rate

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross
  Portfolio Yield

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (Finance charge
  collections allocable to each series divided by collateral amounts plus
  amounts on deposit in the principal accumulation account)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (e) Gross
  Portfolio Yield (current month)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (f) Gross
  Portfolio Yield (prior month)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (g) Gross
  Portfolio Yield (2 months prior)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (h) 3 Month
  Average Gross Portfolio Yield

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Portfolio
  Yield

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (Finance charge
  collections less defaults allocable to each series divided by collateral
  amounts plus amounts on deposit in the principal accumulation account)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (i) Portfolio
  Yield (current month)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (j) Portfolio
  Yield (prior month)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (k) Portfolio
  Yield (2 months prior)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (l) 3 Month
  Average Portfolio Yield

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Excess
  Spread Percentage

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (Portfolio Yield
  less Base Rate)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (m) Portfolio
  Adjusted Yield (current month)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (n) Portfolio
  Adjusted Yield (prior month)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (o) Portfolio
  Adjusted Yield (2 months prior)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

C-4

 

	
  (p) Portfolio
  Adjusted Yield (3 month average)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Series
  2002-A

  	
   

  	
  Series
  2003-A

  	
   

  	
  Series
  2004-A

  	
   

  	
  Series
  2004-B

  	
   

  	
  Series
  2004-C

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IX.
  PRINCIPAL ACCUMULATION ACCOUNT

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (a) Cumulative
  Class A principal distributed to PAA (as of prior distribution date)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b) Class A
  Principal deposited in the Principal Accumulation Account (PAA)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c) Total Class
  A Principal deposited in the PAA (a + b)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (d) Cumulative
  Class A principal distributed to PAA (as of prior distribution date)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (e) Class A
  Principal deposited in the Principal Accumulation Account (PAA)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (f) Total Class
  A Principal deposited in the PAA (d +e)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (g) Cumulative
  Class B principal distributed to PAA (as of prior distribution date)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (h) Class B
  Principal deposited in the Principal Accumulation Account (PAA)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (i) Total Class
  B Principal deposited in the PAA (g + h)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (j) Cumulative
  Class C principal distributed to PAA (as of prior distribution date)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (k) Class C
  Principal deposited in the Principal Accumulation Account (PAA)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (l) Total Class
  C Principal deposited in the PAA (j + k)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (m) Ending PAA
  balance (c + f + i +l)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Series
  2002-A

  	
   

  	
  Series
  2003-A

  	
   

  	
  Series
  2004-A

  	
   

  	
  Series
  2004-B

  	
   

  	
  Series
  2004-C

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  X.
  PRINCIPAL REPAYMENT

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (a) Class A
  Principal Paid (as of prior distribution dates)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b) Class A
  Principal Payments

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c) Total Class
  A Principal Paid (a + b)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (d) Class M
  Principal Paid (as of prior distribution dates)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (e) Class M
  Principal Payments

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (f) Total Class
  M Principal Paid (d + e)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (g) Class B
  Principal Paid (as of prior distribution dates)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (h) Class B
  Principal Payments

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (i) Total Class
  B Principal Paid (g + h)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (j) Class C
  Principal Paid (as of prior distribution dates)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (k) Class C
  Principal Payments

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (l) Total Class
  C Principal Paid (j + k)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

C-5

 

	
   

  	
  World
  Financial Network National Bank, as Servicer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  

 

C-6

 

EXHIBIT
D-1

 

CLASS A SWAP

 

[Filed as Exhibit
4.7 and Exhibit 4.15]

 

D-1-1

 

EXHIBIT
D-2

 

CLASS M SWAP

 

[Filed as Exhibit
4.8 and Exhibit 4.16]

 

D-2-1

 

EXHIBIT
D-3

 

CLASS B SWAP

 

[Filed as Exhibit
4.9 and Exhibit 4.17]

 

D-3-1

 

EXHIBIT D-4

 

CLASS C SWAP

 

[Filed as Exhibit
4.10 and Exhibit 4.18]

 

D-4-1

 

SCHEDULE 1

 

PERFECTION
REPRESENTATIONS, WARRANTIES

AND COVENANTS

 

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

 

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

 

(2)                                  The
Net Swap Receipts constitute “general intangibles” within the meaning of the
applicable Uniform Commercial Code.

 

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

 

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

 

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

 

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

 

(7)                                  Notwithstanding
any other provision of the Indenture, the representations and warranties set
forth in this Schedule 1 shall be continuing, and remain in full
force and effect, until such time as the Series 2004-C Notes are retired.

 

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

 

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

 

1EXHIBIT 4.3

 

	
   

  	
   

  	
  2004-B

  
	
  (Multicurrency—Cross
  Border)

  	
   

  	
  CLASS
  A SWAP

  

 

ISDAÒ

 

International Swap Dealers Association, Inc.

 

MASTER
AGREEMENT

 

dated as of September 22, 2004

 

	
  JPMorgan Chase Bank

  (“Party A”)

  	
   

  	
  and

  	
   

  	
  World Financial Network Credit Card

  Master Note Trust

  (“Party B”)

  

 

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

 

Accordingly, the
parties agree as follows:—

 

1.                                      Interpretation

 

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

 

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

 

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

 

2.                                      Obligations

 

(a)                                  General Conditions.

 

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

 

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

 

(iii)  Each
obligation of each party under Section 2(a)(i) is subject to (1) the
condition precedent that no Event of Default or Potential Event of Default with
respect to the other party has occurred and is continuing, (2) the condition
precedent that no Early Termination Date in respect of the relevant Transaction
has occurred or been effectively designated and (3) each other applicable
condition precedent specified in this Agreement.

 

 

(b)                                 Change of Account.  Either party may change its account for
receiving a payment or delivery by giving notice to the other party at least
five Local Business Days prior to the scheduled date for the payment or
delivery to which such change applies unless such other party gives timely
notice of a reasonable objection to such change.

 

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

 

(i)                                     in
the same currency; and

 

(ii)                                  in
respect of the same Transaction,

 

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

 

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

 

(d)                                 Deduction or Withholding for Tax.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

2

 

(ii)                                  Liability.  If:—

 

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

 

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

 

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

 

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

 

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

 

3.                                      Representations

 

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

 

(a)                                  Basic Representations.

 

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

 

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

 

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

 

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

 

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

 

3

 

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

 

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

 

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

 

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

 

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

 

4.                                      Agreements

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

4

 

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

 

5.                                      Events
of Default and Termination Events

 

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

 

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

 

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

 

(iii)  Credit Support Default.

 

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

 

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

 

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

 

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

 

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

 

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

 

5

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

6

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

7

 

6.                                      Early
Termination

 

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

 

(b)                                 Right to Terminate Following Termination Event.

 

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

 

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

 

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

 

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

 

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

 

(iv)                              Right to Terminate.  If:—

 

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

 

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

 

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

 

8

 

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

 

(c)                                  Effect of Designation.

 

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

 

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

 

(d)                                 Calculations.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

9

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

10

 

7.                                      Transfer

 

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

 

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

 

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

 

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

 

8.                                      Contractual
Currency

 

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

 

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

 

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

 

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

 

11

 

9.                                      Miscellaneous

 

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

 

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

 

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

 

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

 

(e)                                  Counterparts and Confirmations.

 

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

 

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

 

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

 

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

 

10.                               Offices;
Multibranch Parties

 

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

 

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

 

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

 

11.                               Expenses

 

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

 

12

 

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

 

12.                               Notices

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

13.                               Governing
Law and Jurisdiction

 

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

 

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

 

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

 

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

 

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

 

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

 

13

 

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

 

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

 

14.                               Definitions

 

As used in this
Agreement:—

 

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

 

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

 

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

 

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

 

“Applicable
Rate” means:—

 

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

 

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

 

(c)                                  in respect of all
other obligations payable or deliverable (or which would have been but for

Section 2(a)(iii)) by a Non-defaulting Party, the Non-default Rate; and

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

14

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

15

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

16

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

17

 

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

 

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

 

 

	
  JPMorgan
  Chase Bank (“JPMorgan”)

  (Name of Party)

  	
   

  	
  World
  Financial Network Credit Card Master

  Note Trust (“Counterparty”)

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  Chase Manhattan Bank USA, National

  Association, not in its individual capacity, but

  solely as Owner Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Name
  of Party)

  
				

 

 

	
  By:

  	
  /s/ Emilio Jimenez

  	
   

  	
  By:

  	
  /s/ John J. Cashin

  	
   

  
	
   

  	
  Name:

  	
  Emilio Jimenez

  	
   

  	
  Name: John J. Cashin

  
	
   

  	
  Title:

  	
  Managing
  Director and Associate

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  	
  General
  Counsel

  	
   

  	
  Date:  September 22, 2004

  
	
   

  	
  Date:

  	
  September 22,
  2004

  	
   

  	
   

  
							

 

CLASS A SWAP

 

18

 

SCHEDULE

to the

Master Agreement

 

dated as of September 22, 2004

 

between

 

	
  JPMorgan Chase Bank

  	
   

  	
  and

  	
   

  	
  World Financial
  Network

  Credit Card

  Master Note Trust

  
	
  (“JPMorgan”)

  	
   

  	
   

  	
   

  	
  (the “Counterparty”)

  

 

The only Transaction that will be governed by the terms of this
Agreement will be the Class A Swap (as defined in the Indenture).  References in the Agreement to
“Transactions” or “Transaction” shall be deemed to be references to the Class A
Swap.

 

Part 1

 

Termination Provisions

 

In this Agreement:-

 

(1)                                  “Specified Entity”
shall not apply.

 

(2)                                  The “Breach of
Agreement” provisions of Section 5(a)(ii) will apply to JPMorgan and will
not apply to the Counterparty.

 

(3)                                  The “Credit Support
Default” provisions of Section 5(a)(iii) will apply to JPMorgan and will
not apply to the Counterparty.

 

(4)                                  The
“Misrepresentation” provisions of Section 5(a)(iv) will apply to JPMorgan
and will not apply to the Counterparty.

 

(5)                                  The “Default Under
Specified Transaction” provisions of Section 5(a)(v) will not apply to
JPMorgan and will not apply to the Counterparty.

 

(6)                                  The “Cross Default”
provisions of Section 5(a)(vi) will not apply to JPMorgan and will not
apply to the Counterparty.

 

(7)                                  The “Merger Without Assumption” provisions of
Section 5(a)(viii) will apply to JPMorgan and will not apply to the
Counterparty.

 

(8)                                  The “Tax Event” provisions of
Section 5(b)(ii) will apply to JPMorgan and will not apply to the
Counterparty.

 

 

(9)                                  The “Tax Event Upon Merger” provisions of
Section 5(b)(iii) will apply to JPMorgan and will not apply to the
Counterparty.

 

(10)                            The “Credit Event Upon Merger” provisions of
Section 5(b)(iv) will not apply to JPMorgan and will not apply to the
Counterparty.

 

(11)                            The “Additional Termination Event” provisions of
Section 5(b)(v) will apply as set forth in Part 1(15) hereof.

 

(12)                            The
“Automatic Early Termination” provisions of Section 6(a) will not apply to
JPMorgan and will not apply to the Counterparty.

 

(13)                            “Termination Currency”
means United States Dollars.

 

(14)                            For purposes of computing
amounts payable on early termination:

 

(a)                                  Market Quotation will
apply to this Agreement; and

 

(b)                                 The Second Method will
apply to this Agreement.

 

(15)                            The occurrence of the
following event shall constitute an “Additional Termination Event” for purposes
of Section 5(b)(v):

 

(a) the occurrence of an Additional Termination Event as forth in Part
5 (10) hereof.  If this Additional
Termination Event occurs, JPMorgan shall be the sole Affected Party and all
Transactions then outstanding between the parties shall be Affected
Transactions.

 

Upon the occurrence of an Additional Termination Event, JPMorgan shall
notify the Rating Agencies of such occurrence.

 

Part 2

 

Tax Representations

 

(1)                                  Payer Tax
Representation:

 

For the purpose of Section 3(e) of this Agreement, JPMorgan and
Counterparty each make the following representation:

 

It is not required by any applicable law, as modified by the practice
of any relevant governmental revenue authority, of any Relevant Jurisdiction to
make any deduction or withholding for or on account of any Tax from any payment
(other than interest under Section 2(e), 6(d)(ii) or 6(e) of this
Agreement) to be made by it to the other party under this Agreement.  In making this representation, it may rely
on:

 

(i)                                     the accuracy of
any representations made by the other party pursuant to Section 3(f) of
this Agreement;

 

(ii)                                  the satisfaction of
the agreement of the other party contained in Section 4(a)(i) or 4(a)(iii)
of this Agreement and the accuracy and effectiveness of any document

 

 

provided by the other party pursuant to Section 4(a)(i) or
4(a)(iii) of this Agreement; and

 

(iii)                               the satisfaction of the
agreement of the other party contained in Section 4(d) of this Agreement,
provided that it shall not be a breach of this representation where reliance is
placed on clause (ii) and the other party does not deliver a form or document
under Section 4(a)(iii) of this Agreement by reason of material prejudice
to its legal or commercial position.

 

(2)                                  Payee Tax
Representations:

 

For the purpose of Section 3(f), JPMorgan and the Counterparty
each represent respectively that it is a United States Person for U.S. federal
income tax purposes and either (a) is a financial institution or (b) is not
acting as an agent for a person that is not a United States Person for U.S.
federal income tax purposes.

 

Part 3

 

Agreement
to Deliver Documents

 

For the purpose of Sections 4(a)(i) and (ii), each party agrees to
deliver the following documents, as applicable:

 

(1)                                  For the purpose of
Sections 4(a)(i) and (ii) of this Agreement, Counterparty agrees to deliver a
complete and accurate United States Internal Revenue Service Form W-9 (or any
applicable successor form), in a manner reasonably satisfactory to JPMorgan,
(I) upon execution of this Agreement; (II) promptly upon reasonable demand of
JPMorgan, and (III) promptly upon learning that any such form previously filed
by Counterparty has become obsolete or incorrect.

 

(2)                                  JPMorgan will, on
demand, deliver a certificate (or, if available, the current authorized
signature book of JPMorgan) specifying the names, title and specimen signatures
of the persons authorized to execute this Agreement and each Confirmation on
its behalf.

 

(3)                                  The Counterparty
will, on demand, deliver a certificate (or, if available, the current authorized
signature book of the Counterparty) specifying the names, title and specimen
signatures of the persons authorized to execute this Agreement and each
Confirmation on its behalf.

 

(4)                                  The Counterparty
will, upon execution of this Agreement, deliver a conformed copy of the
Indenture and the Indenture Supplement.

 

(5)                                  Each party will, upon
execution of this Agreement, deliver a legal opinion of counsel in form and
substance satisfactory to the other party regarding this Agreement and any
other matters as such other party may reasonably request.

 

(6)                                  The Counterparty
shall supply (and/or shall instruct the Trustee to supply) JPMorgan with copies
of the monthly servicing reports delivered to the Series 2004-B Noteholders in
the form specified in the Indenture. 
Copies of such accountings and/or reports shall be delivered to JPMorgan
at the following address:

 

 

JPMorgan Chase Bank

c/o John Coffey

270 Park Avenue

New York, NY 10017

e-mail address: 
john.j.coffey@jpmorgan.com

 

Each of the foregoing documents (other than the legal opinions
described in (5) above) is covered by the representation contained in
Section 3(d) of this Agreement.

 

Part 4

 

Miscellaneous

 

(1)                                  Governing Law.  This Agreement will be governed by and construed in accordance
with the laws of the State of New York without reference to choice of law
doctrine.

 

(2)                                  Notices.

 

(a)                                  In connection with
Section 12(a), all notices to JPMorgan shall, with respect to any
particular Transaction, be sent to the address, telex number or facsimile
number specified in the relevant Confirmation and any notice for purposes of
Sections 5 or 6 of the Agreement shall be sent to the address or telex number
specified below:

 

JPMorgan Chase Bank

Attention: 
Legal Dept. - Derivatives Practice Group

270 Park Avenue, 41st Floor

New York, NY 10017

Facsimile No.:  212-270-3620

 

(b)                                 In connection with
Section 12(a), all notices to the Counterparty shall, with respect to any
particular Transaction, be sent to the address, telex number or facsimile
number specified in the relevant Confirmation and any notice for purposes of
Sections 5 or 6 of the Agreement shall be sent to the address or telex number
specified below:

 

World Financial Network Credit Card Master Note Trust

c/o JP Morgan Chase Bank

4 New York Plaza

15th Floor

New York, NY  10004

Attention: Institutional Trust Services

Telephone No.:

Facsimile No.:

 

With a copy to:

 

World Financial Network National Bank

800 Techcenter Drive

Gahanna, OH 43230

Attention:  Treasurer

 

 

Telephone No.:  614-729-4723

Facsimile No.:  614-729-4899

 

(3)                                  Netting of Payments.  Section 2(c)(ii) of this Agreement will
apply, with the effect that payment netting will not take place with respect to
amounts due and owing in respect of more than one Transaction.

 

(4)                                  Offices; Multibranch Party.  For purposes of Section 10:

 

(a)                                  Section 10(a)
will apply; and

 

(b)                                 For
the purpose of Section 10(c):

 

(i) JPMorgan is a Multibranch Party and may act through its London and
New York Offices.

 

(ii) The Counterparty is not a Multibranch Party.

 

(5)                                  Credit Support Documents.

 

With respect to JPMorgan, if applicable, any Third Party Credit Support
Document delivered by JPMorgan shall constitute a Credit Support Document.

 

With respect to JPMorgan and
the Counterparty, if applicable, any Approved Credit Support Document shall
constitute a Credit Support Document.

 

(6)                                  Credit Support Provider.

 

With respect to JPMorgan, the party guaranteeing JPMorgan’s obligations
pursuant to a Third Party Credit Support Document, if any, shall be a Credit
Support Provider.

 

(7)                                  Process Agents.  The Counterparty appoints as its Process
Agent for the purpose of Section 13(c):

Not applicable

 

Part 5

 

Other Provisions

 

(1)                                  ISDA Definitions.  Reference is hereby made to the 2000 ISDA Definitions (the “ISDA
Definitions”) each as published by the International Swaps and
Derivatives Association, Inc., which are hereby incorporated by reference
herein.  Any terms used and not
otherwise defined herein which are contained in the ISDA Definitions shall have
the meaning set forth therein.

 

(2)                                  Confirmation Procedures.  Each party acknowledges and agrees that the
Confirmation executed as of the date hereof and designated as Reference No.
500085004880 shall be the only transaction governed by this Agreement (it being
understood that, in the event such Confirmation shall be amended (in any
respect), such amendment shall not constitute (for purposes of this paragraph)
a separate Transaction or a separate Confirmation).  Party A and Party B shall not enter into any additional
Confirmations or Transactions hereunder.

 

 

(3)                                  Inconsistency.  In the event of any inconsistency between any of the following
documents, the relevant document first listed below shall govern:  (i) a Confirmation; (ii) the Schedule; (iii)
the ISDA Definitions; and (iv) the printed form of ISDA Master Agreement.

 

(4)                                  Calculation Agent.  The Calculation Agent will be JPMorgan.

 

(5)                                  Waiver of Jury Trial.  Each party waives, to the fullest extent
permitted by applicable law, any right it may have to a trial by jury in
respect of any suit, action or proceeding relating to this Agreement or any
Credit Support Document.  Each party (i)
certifies that no representative, agent or attorney of the other party or any
Credit Support Provider has represented, expressly or otherwise, that such other
party would not, in the event of such a suit, action or proceeding, seek to
enforce the foregoing waiver and (ii) acknowledges that it and the other party
have been induced to enter into this Agreement and provide for any Credit
Support Document, as applicable, by, among other things, the mutual waivers and
certifications in this Section.

 

(6)                                  Severability.  In the event any one or more of the provisions contained in this
Agreement should be held invalid, illegal, or unenforceable (in whole or in
part) in any respect, the remaining terms, provisions, covenants and conditions
hereof shall continue in full force and effect as if this Agreement had been
executed with the invalid or unenforceable portion eliminated, so long as this
Agreement as so modified continues to express, without material change the
original intentions of the parties as to the subject matter of this Agreement
and the deletion of such portion of this Agreement will not substantially
impair the respective benefits or expectations of the parties to this
Agreement; provided, however, that this severability provision shall not be
applicable if any provision of Section 2, 5, 6 or 13 (or any definition or
provision in Section 14 to the extent it relates to, or is used in or in
connection with any such Section) shall be so held to be invalid or
unenforceable.

 

(7)                                  No Gross-up for Counterparty.  Section 2(d) of the Agreement shall not
apply with respect to the Counterparty so that the Counterparty shall not be
obligated to gross up pursuant thereto.

 

(8)                                  JPMorgan Acknowledgment.  Notwithstanding anything to the contrary in
this Agreement, JPMorgan hereby

 

(a) acknowledges and agrees that the Counterparty has pledged its
rights under this Agreement to the Trustee pursuant to the Indenture and that
in the event of an Event of Default (as defined in the Indenture) the Trustee
shall be entitled to exercise all rights and remedies of a secured party with
respect to this Agreement; and

 

(b) agrees that, unless notified in writing by the Trustee of other
payment instructions, any and all amounts payable by JPMorgan to the
Counterparty shall be paid to the Trustee.

 

(9)                                  No Petition; Limited Recourse.  JPMorgan hereby agrees that it
shall not institute against, or join any other Person in instituting against
the Counterparty any bankruptcy, reorganization, arrangement, insolvency,
moratorium or liquidation proceedings or other proceedings under U.S. federal
or state or other bankruptcy or similar laws.

 

 

Notwithstanding
the foregoing, nothing herein shall prevent JPMorgan from participating in any
such proceeding once commenced.

 

JPMorgan
hereby acknowledges and agrees that the Counterparty’s obligations hereunder
will be solely the limited recourse obligations of the Counterparty, and that
JPMorgan will not have any recourse to any of the directors, officers,
employees, shareholders or affiliates of the Counterparty with respect to any
claims, losses, damages, liabilities, indemnities or other obligations in
connection with any transactions contemplated hereby.  Notwithstanding any other provisions hereof, recourse in respect
of any obligations of the Counterparty to JPMorgan hereunder or thereunder will
be limited to the Collateral, subject to and in accordance with the terms of
the priority of payments set forth in Section 4.4 of the Indenture
Supplement, and on the exhaustion thereof all claims against the Counterparty
arising from this Agreement or any other transactions contemplated hereby or
thereby shall be extinguished.

 

(10)                            Ratings
Downgrade Provisions.   Unless
written notification to the contrary has been received from the Rating
Agencies, following the occurrence of a Ratings Event I and/or a Ratings Event
II, the parties shall comply with the following provisions, as applicable.

 

I.                                         If
a Ratings Event I shall occur and be continuing with respect to JPMorgan, then
JPMorgan shall, within 5 Local Business Days of the occurrence of such Ratings
Event I, give notice of the occurrence of such Ratings Event I to Counterparty.  Following such notice, JPMorgan may either

 

(A) at its sole option and expense, provide, or cause to be provided, a
Third Party Credit Support Document to Counterparty; or

 

(B) at its sole option and expense, use reasonable efforts to transfer
JPMorgan’s rights and obligations under the Agreement and all Confirmations to
another party.

 

Each of I(A) and I(B) above shall be subject to satisfaction of the
Rating Agency Condition.

 

If, on or prior to the date that is 30 calendar days after the
occurrence of a Ratings Event I, JPMorgan has provided a Third Party Credit
Support Document as provided in I(A) above and the Rating Agency Condition has
been satisfied, then, for so long as such Third Party Credit Support Document
is in effect and the Rating Agency Condition continues to be satisfied,
JPMorgan shall have no further obligations in respect of this Part 5(10)(I).

 

If,

 

(i) on or prior to the date that is 30 calendar days after the
occurrence of a Ratings Event I, JPMorgan has not provided a Third Party Credit
Support Document as provided in I(A) above or transferred its rights and
obligations as provided in I(B) above, or

 

(ii) JPMorgan has provided a Third Party Credit Support Document as
provided in I(A) above but such Third Party Credit Support Document has ceased
to be in effect and/or the Rating Agency Condition is no longer satisfied,

 

then, on the first Local Business Day following the date that is 30
calendar days after the occurrence of the Ratings Event I (in respect of (i)
above) or on the first Local Business

 

 

Day following the date on which the Third Party Credit Support Document
referred to in (ii) above has ceased to be in effect and/or fails to satisfy
the Rating Agency Condition, Counterparty may demand that JPMorgan deliver
Eligible Collateral to Counterparty in accordance with the terms of an Approved
Credit Support Document. 
Notwithstanding the foregoing, JPMorgan’s obligations under this Part
5(10)(I) to post Eligible Collateral under the Approved Credit Support Document
shall remain in effect only for so long as a Ratings Event I is continuing with
respect to JPMorgan.

 

The failure by JPMorgan to comply with the provisions hereof shall
constitute an Additional Termination Event, with JPMorgan as the sole Affected
Party and all Transactions then outstanding between the parties as Affected
Transactions.

 

II.                                     If
a Ratings Event II shall occur and be continuing with respect to JPMorgan, then
JPMorgan shall, within 5 Local Business Days of the occurrence of such Ratings
Event II, give notice of the occurrence of such Ratings Event II to
Counterparty.  Following such notice,
JPMorgan shall either

 

(A) to the extent that is has not already done so in accordance with
Part 5(10)(I), at its sole option and expense, provide, or cause to be
provided, a Third Party Credit Support Document to Counterparty; or

 

(B) at its sole option and expense, use reasonable efforts to transfer
JPMorgan’s rights and obligations under the Agreement and all Confirmations to
another party.

 

Each of II(A) and II(B) above shall be subject to satisfaction of the
Rating Agency Condition.

 

If, on or prior to the date that is 30 calendar days after the
occurrence of a Ratings Event II, JPMorgan has provided a Third Party Credit
Support Document as provided in II(A) or I(A) above and the Rating Agency Condition
has been satisfied, then, for so long as such Third Party Credit Support
Document is in effect and the Rating Agency Condition continues to be
satisfied, then, (i) JPMorgan shall have no further obligations in respect of
this Part 5(10)(II) and, (ii) if JPMorgan was delivering Eligible Collateral to
Counterparty in accordance with the terms of an Approved Credit Support
Document pursuant to the provisions of Part 5(10)(I) hereof, JPMorgan shall
have no further obligations to deliver Eligible Collateral under the Approved
Credit Support Document.

 

If,

 

(i) on or prior to the date that is 30 calendar days after the
occurrence of a Ratings Event II, JPMorgan has not provided a Third Party
Credit Support Document as provided in II(A) above or transferred its rights
and obligations as provided in II(B) above, or

 

(ii) JPMorgan has provided a Third Party Credit Support Document as
provided in II(A) or I(A) above but such Third Party Credit Support Document
has ceased to be in effect and/or the Rating Agency Condition is no longer
satisfied,

 

then, on the first Local Business Day following the date that is 30
calendar days after the occurrence of the Ratings Event II (in respect of (i)
above) or on the first Local Business Day following the date on which the Third
Party Credit Support Document referred to in (ii) above has ceased to be in
effect and/or fails to satisfy the Rating Agency Condition, and only to the
extent that JPMorgan is not already delivering Eligible Collateral to

 

 

Counterparty in accordance with the terms of an Approved Credit Support
Document pursuant to the provisions of Part 5(10)(I) hereof, JPMorgan will
deliver Eligible Collateral to Counterparty in accordance with the terms of an
Approved Credit Support Document. 
Concurrently with such delivery of Eligible Collateral, JPMorgan shall
cause its outside counsel to deliver to Counterparty an opinion as to the
enforceability of Counterparty’s security interest in such Eligible Collateral
in all relevant jurisdictions, if necessary to satisfy the Rating Agency
Condition.  Notwithstanding JPMorgan’s
posting of Eligible Collateral in accordance with the terms of the Approved
Credit Support Document, JPMorgan shall use best efforts to either transfer its
rights and obligations to an acceptable third party or to provide a Third Party
Credit Support Document. 
Notwithstanding the foregoing, JPMorgan’s obligations under this Part
5(10)(II) to find a transferee or provide a Third Party Credit Support Document
and to post Eligible Collateral under the Approved Credit Support Document
shall remain in effect only for so long as a Ratings Event II is continuing
with respect to JPMorgan.

 

The failure by JPMorgan to comply with the provisions hereof shall
constitute an Additional Termination Event, with JPMorgan as the sole Affected
Party and all Transactions then outstanding between the parties as Affected
Transactions.

 

As used herein:

 

“Approved Credit Support
Document” means a security agreement in the form of the 1994 ISDA Credit
Support Annex (ISDA Agreements Subject to New York Law Only), as modified by
the Paragraph 13 thereto, which Paragraph 13 will be in the form of Annex A to
this Agreement;

 

“Indenture” means the Master Indenture dated as of August 1, 2001,
between World Financial Network Credit Card Master Note Trust, as Issuer, and
BNY Midwest Trust Company, as Indenture Trustee, as supplemented by the Series
2004-B Indenture Supplement dated as of September 22, 2004, between World
Financial Network Credit Card Master Note Trust, as the Issuer, and BNY Midwest
Trust Company, as the Indenture Trustee (the “Indenture Supplement”), in each
case, as amended, modified, supplemented, restated or replaced from time to
time.

 

“Moody’s” means Moody’s Investors Service, Inc. or any successor
thereto;

 

“Rating Agencies” means S&P and Moody’s;

 

“Rating Agency Condition” has the meaning specified in the Indenture;

 

“Ratings Event I” shall occur with respect to JPMorgan (to the extent
that JPMorgan’s relevant obligations are rated by Moody’s) if JPMorgan’s long-term
senior unsecured debt rating by Moody’s is lower than A1 or is A1 on negative
watch or JPMorgan’s short-term senior unsecured debt rating by Moody’s is lower
than P-1 or is P-1 on negative watch;

 

“Ratings Event II” shall occur with respect to JPMorgan (to the extent
that JPMorgan’s relevant obligations are rated by S&P and/or Moody’s) if
(a) JPMorgan’s short-term senior unsecured debt rating by S&P is lower than
A-1 or (b) JPMorgan’s long-term senior unsecured debt rating by Moody’s is A3
or lower or JPMorgan’s short-term senior unsecured debt rating by Moody’s is
P-2 or lower;

 

“S&P” means by Standard & Poor’s Ratings Service or any
successor thereto; and

 

 

“Third Party Credit Support Document” means any agreement or instrument
(including any guarantee, insurance policy, security agreement or pledge
agreement) whose terms provide for the guarantee of JPMorgan’s obligations
under this Agreement by a third party.

 

(11)                            Additional Representations.  Section 3 is hereby amended by adding
at the end thereof the following paragraphs:

 

“(g)  It is an “eligible
contract participant” under, and as defined in, Section 1a(12) of the
Commodity Exchange Act, as amended.

 

(h) Each party will be deemed to represent to the other party on the
date on which it enters into a Transaction that (absent a written agreement
between the parties that expressly imposes affirmative obligations to the
contrary for that Transaction):

 

(i)                                     Non-Reliance.  It is acting for its own account, and it has
made its own independent decisions to enter into that Transaction and as to
whether that Transaction is appropriate or proper for it based upon its own
judgment and upon advice from such advisers as it has deemed necessary.  It is not relying on any communication
(written or oral) of the other party as investment advice or as a
recommendation to enter into that Transaction; it being understood that
information and explanations related to the terms and conditions of a
Transaction shall not be considered investment advice or a recommendation to
enter into that Transaction.  No
communication (written or oral) received from the other party shall be deemed
to be an assurance or guarantee as to the expected results of that Transaction.

 

(ii)                                  Assessment
and Understanding.  It is
capable of assessing the merits of and understanding (on its own behalf or
through independent professional advice), and understands and accepts, the
terms, conditions and risks of that Transaction.  It is also capable of assuming, and assumes, the risks of that
Transaction.

 

(iii)                               Status of
Parties.  The other party is
not acting as a fiduciary for or an adviser to it in respect of that
Transaction.”

 

(12)                            Amendment to Section 7 of the Agreement.  Section 7 of the Agreement is hereby
amended by:

 

(i)
adding the words “and the confirmation of the Rating Agencies” immediately
following the word “party” in the third line thereof; and

 

(ii) adding the following sentence immediately following the final
sentence thereof:

 

“In addition, no transfer shall be effective unless it satisfies the
Rating Agency Condition.”.

 

(13)                            Events of Default.  Section 5(a)(i) of the Agreement is amended by substituting
the following therefor:  “Failure by the
party to make, when due, any payment under this Agreement or delivery under
Section 2(a)(i) or 2(e) required to be made by it if such failure is not
remedied on or before the fifth Local Business Day after notice of such failure
is given to the party.”

 

 

(14)                            Owner Trustee.  It is expressly understood and agreed by the parties hereto that
(a) this Agreement is executed and delivered by Chase Manhattan Bank USA,
National Association, not individually or personally but solely as trustee of
the Counterparty in the exercise of the powers and authority conferred and
vested in it under the Amended and Restated Trust Agreement (as defined in the
Indenture), (b) each of the representations, undertakings and agreements herein
made on the part of the Counterparty are made and intended not as personal
representations, undertakings and agreements by Chase Manhattan Bank USA,
National Association, but are made and intended for the purpose of binding only
the Counterparty, and (c) under no circumstances shall Chase Manhattan Bank
USA, National Association be personally liable for the payment of any indebtedness
or expenses of the Counterparty or be liable for the breach or failure of any
obligation, representations, warranty or covenant made or undertaken by the
Counterparty under this Agreement.

 

(15)                            Amendment to Section 9(b) of the Agreement.  Section 9(b) of the Agreement is
amended by adding the following sentence immediately following the end of the
first sentence thereof:

 

“In
addition, no amendment modification or waiver in respect of this Agreement will
be effective unless it satisfied the Rating Agency Condition.”

 

(16)                            Amendment to Section 6(e) of the Agreement.  Section 6(e) of the Agreement is
amended by deleting the last sentence of the introductory paragraph thereof.

 

(17)                            The parties agree that
there will be no Set-off with respect to this Agreement.

 

 

Please confirm your agreement to the terms of the foregoing
Schedule by signing below.

 

	
   

  	
  JPMORGAN
  CHASE BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Emilio Jimenez

  	
   

  
	
   

  	
   

  	
  Name:  Emilio Jimenez

  
	
   

  	
   

  	
  Title:   
  Managing Director and Associate

  General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
  WORLD
  FINANCIAL NETWORK CREDIT CARD MASTER NOTE TRUST

  
	
   

  	
  By:  Chase Manhattan Bank USA, National

  Association, not in its individual capacity, but

  solely as Owner Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  John J. Cashin

  	
   

  
	
   

  	
   

  	
  Name:  John J. Cashin

  
	
   

  	
   

  	
  Title:  Vice President

  

 

2004-B

CLASS A SWAP

 

 

ANNEX A

 

PARAGRAPH 13 TO

CREDIT SUPPORT ANNEX

 

to the Schedule to the

Master Agreement

 

dated as of September 22, 2004

 

between

 

	
  JPMorgan Chase Bank

  (“JPMorgan”)

  	
   

  	
  and

  	
   

  	
  WORLD FINANCIAL NETWORK

  CREDIT CARD MASTER NOTE TRUST

  (“Counterparty”)

  

 

Paragraph 13. Elections and Variables

 

(a)                                  Security
Interest for “Obligations”.  The term
“Obligations” as used in this Annex includes no additional obligations with
respect to either party.

 

(b)                                 Credit
Support Obligations.

 

(i)                                     Delivery Amount,
Return Amount and Credit Support Amount.

 

(A)                              “Delivery
Amount” has the meaning specified in Paragraph 3(a), except that the words “upon a demand made by the Secured Party”
shall be deleted and the word “that” on the second line of Paragraph 3(a) shall
be replaced with the word “a”.

 

(B)                                “Return
Amount” has the meaning specified in Paragraph 3(b).

 

(C)                                “Credit Support Amount” shall not have the
meaning specified in Paragraph 3(b) and, instead, will have the following
meaning:

 

“Credit Support Amount” means, for any Valuation
Date, (i) the Secured Party’s Modified Exposure for that Valuation Date minus
(ii) the Pledgor’s Threshold; provided, however, that the Credit Support
Amount will be deemed to be zero whenever the calculation of Credit Support
Amount yields a number less than zero.

 

(ii)                                  Eligible
Collateral.  The following items will
qualify as “Eligible Collateral”:

 

 

	
   

  	
   

  	
   

  	
   

  	
  JPMorgan

  	
   

  	
  “Valuation

  Percentage”

  	
   

  
	
  (A)

  	
   

  	
  USD Cash

  	
   

  	
  X

  	
   

  	
  100

  	
  %

  
	
  (B)

  	
   

  	
  Negotiable debt obligations issued by the U.S. Treasury Department
  having a remaining maturity of one year or less from the Valuation Date

  	
   

  	
  X

  	
   

  	
  98.6

  	
  %

  
	
  (C)

  	
   

  	
  Negotiable debt obligations issued by the U.S. Treasury Department
  having a remaining maturity of more than one year but less than ten years
  from the Valuation Date

  	
   

  	
  X

  	
   

  	
  90.7

  	
  %

  
	
  (D)

  	
   

  	
  Negotiable debt obligations issued by the U.S. Treasury Department
  having a remaining maturity of ten years or more from the Valuation Date

  	
   

  	
  X

  	
   

  	
  85.3

  	
  %

  
	
  (E)

  	
   

  	
  Agency Securities having a remaining maturity of one year or less
  from the Valuation Date

  	
   

  	
  X

  	
   

  	
  98.1

  	
  %

  
	
  (F)

  	
   

  	
  Agency Securities having a remaining maturity of more than one year
  but less than ten years from the Valuation Date

  	
   

  	
  X

  	
   

  	
  88

  	
  %

  
	
  (G)

  	
   

  	
  Agency Securities having a remaining maturity of ten years or more
  from the Valuation Date

  	
   

  	
  X

  	
   

  	
  79.8

  	
  %

  
	
  (H)

  	
   

  	
  USD denominated Commercial Paper rated A1/P1 by S&P and Moody’s
  respectively, that (a )settles within DTC, (b) is not issued by JPMorgan or
  any of its Affiliates and (c) has a remaining maturity of 30 days or less
  from the Valuation Date

  	
   

  	
  X

  	
   

  	
  98

  	
  %

  

 

For purposes of the foregoing:

 

(a) “Agency Securities” means negotiable debt obligations which are
fully guaranteed as to both principal and interest by the Federal National
Mortgage Association, the Government National Mortgage Association or the
Federal Home Loan Mortgage Corporation, but excluding (i) interest only and
principal only securities and (ii) Collateralized Mortgage Obligations, Real
Estate Mortgage Investment Conduits and similar derivative securities.

 

(b) “DTC” shall mean The Depository Trust & Clearing Corporation,
or its successor.

 

(c) “Moody’s” shall mean Moody’s Investors Service, Inc., or its
successor.

 

(d) “S&P” shall mean Standard & Poor’s Ratings Group, or its
successor.

 

(e) Eligible Collateral of the type described
in Paragraph 13(b)(ii)(H) may never constitute more than 20% of the total Value
of Posted Collateral.

 

(f) With respect to Posted Collateral consisting of Eligible Collateral
of the type described in Paragraph 13(b)(ii)(H), the aggregate Value of such
Posted

 

 

Collateral issued by the same issuer may never be greater than 33% of
the aggregate Value of all Posted Collateral consisting of Eligible Collateral
of the type described in Paragraph 13(b)(ii)(H).

 

(iii)                               Other Eligible
Support.  There shall be no “Other
Eligible Support” for purposes of this Annex, unless (A) agreed in writing
between the parties and (B) upon the prior written consent of Moody’s and
S&P.

 

(iv)                              Thresholds.

 

(A)                              “Independent
Amount” means zero.

 

(B)                                “Threshold” shall not
apply with respect to the Counterparty and, with respect to JPMorgan, shall
mean the amounts determined on the basis of the lower of the Credit Ratings set
forth in the following table, provided, however, that if (i)
JPMorgan has no Credit Rating, or (ii) an Event of Default has occurred and is continuing
with respect to JPMorgan, JPMorgan’s Threshold shall be U.S.$0:

 

	
  CREDIT
  RATING

  (S&P /Moody’s)

  	
   

  	
  THRESHOLD

  JPMorgan

  
	
  S&P: A-1
  or above; and

  	
   

  	
  Infinity

  
	
   

  	
   

  	
   

  
	
  Moody’s
  (long-term senior unsecured debt of JPMorgan): A1 or above; and

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Moody’s
  (short-term senior unsecured debt of JPMorgan): P-1 or above.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  S&P: Below A-1; or

  	
   

  	
  US$0

  
	
   

  	
   

  	
   

  
	
  Moody’s (long-term senior unsecured debt of JPMorgan): Below A1 or A1
  on negative watch; or

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Moody’s (short-term senior unsecured debt of JPMorgan): Below P-1 or
  P-1 on negative watch.

  	
   

  	
   

  

 

As used herein:

 

“Credit Rating” means, with respect to (a) S&P, the rating assigned
by S&P to the short-term senior unsecured debt of JPMorgan, and (b)
Moody’s, the rating assigned by Moody’s to the long-term senior unsecured debt
of JPMorgan or to the short-term senior unsecured debt of JPMorgan, as
applicable.

 

(C)                                “Minimum Transfer
Amount”, with respect to a party on any Valuation Date, means U.S. $100,000.

 

 

Rounding.  The Delivery Amount
and the Return Amount will be rounded up and down to the nearest integral
multiple of $10,000, respectively.

 

(c)                                  Valuation
and Timing.

 

(i)                                     “Valuation Agent”
means JPMorgan, unless an Event of Default with respect to JPMorgan is
continuing, in which case “Valuation Agent” shall mean the Counterparty or a
financial institution selected by the Counterparty in its reasonable
discretion.

 

(ii)                                  “Valuation
Date” means weekly on the last Local Business Day of each week or more
frequently if agreed in writing by the parties.

 

(iii)                               “Valuation Time” means
the close of business in the city of the Valuation Agent on the Valuation Date
or date of calculation, as applicable.

 

(iv)                              “Notification Time” means
12:00 p.m., New York time, on a Local Business Day.

 

(d)                                 Conditions
Precedent.  With respect to
JPMorgan, any Additional Termination Event (if JPMorgan is the Affected Party
with respect to such Termination Event) will be a “Specified Condition”.

 

(e)                                  Substitution.

 

(i)                                     “Substitution
Date” has the meaning specified in Paragraph 4(d)(ii).

 

(ii)                                  Consent.  Inapplicable.

 

(f)                                    Dispute
Resolution.

 

(i)                                     “Resolution Time”
means 1:00 p.m., New York time, on the Local Business Day following the date on
which the notice is given that gives rise to a dispute under Paragraph 5.

 

(ii)                                  Value.   For the purposes of Paragraphs 5(i)(C) and
5(ii), the Value of Posted Credit Support other than Cash will be calculated as
follows:

 

(A) with respect to any Eligible Collateral except Cash, the sum of (I)
(x) the mean of the high bid and low asked prices quoted on such date by any
principal market maker for such Eligible Collateral chosen by the Disputing
Party, or (y) if no quotations are available from a principal market maker for
such date, the mean of such high bid and low asked prices as of the first day
prior to such date on which such quotations were available, plus (II) the
accrued interest on such Eligible Collateral (except to the extent Transferred
to a party pursuant to any applicable provision of this Agreement or included
in the applicable price referred to in (I) of this clause (A)) as of such date;
multiplied by the applicable Valuation Percentage.

 

(iii)                               Alternative.  The provisions of Paragraph 5 will apply.

 

(g)                                 Holding
and Using Posted Collateral.

 

 

(i)                                     Eligibility to
Hold Posted Collateral; Custodians. 
Counterparty and its Custodian will be entitled to hold Posted
Collateral pursuant to Paragraph 6(b); provided that the following conditions
applicable to it are satisfied:

 

(1)                                  Counterparty
is not a Defaulting Party and

 

(2)                                  Posted
Collateral may be held only in the following jurisdictions:

New York State.

 

Initially, the Custodian for Counterparty is: Chase Manhattan Bank USA,
National Association.

 

(ii)                                  Use of Posted
Collateral.  The provisions of Paragraph
6(c)(i) will not apply to Counterparty but the provisions of Paragraph 6(c)(ii)
will apply to the Counterparty; provided, however, that the Counterparty shall
invest, or cause to be invested, Posted Collateral in the form of Cash in such
Eligible Investments (as defined in the Indenture) as designated by
JPMorgan.  The Counterparty is
authorized to liquidate any Posted Credit Support pursuant to written
instructions from JPMorgan.

 

(h)                                 Distributions
and Interest Amount.

 

(i)                                     Interest
Rate.  Not Applicable

 

(ii)                                  Transfer of Interest
Amount.  The Transfer of the Interest
Amount will be made monthly on the second Local Business Day of each calendar
month.

 

(iii)                               Alternative to Interest
Amount.  The provisions of Paragraph
6(d)(ii) will not apply and, instead, the Interest Amount payable by the
Counterparty specified in subparagraph (h)(ii) will be the amount of actual
cash earnings on Posted Collateral in the form of Cash during the relevant
Interest Period.

 

(i)                                     Additional
Representation(s).  Not Applicable.

 

(j)                                     Other Eligible
Support and Other Posted Support.

 

(i)                                     “Value” with
respect to Other Eligible Support and Other Posted Support means: Not
Applicable.

 

(ii)                                  “Transfer” with
respect to Other Eligible Support and Other Posted Support means: Not
Applicable

 

(k)                                  Demands
and Notices.

 

All demands, specifications and notices under this Annex will be made
pursuant to the Notices Section of this Agreement, unless otherwise
specified here:

 

 

Counterparty:

 

JPMorgan:

JPMorgan Chase Bank

Collateral Middle Office Americas 3/OPS2

500 Stanton Christiana Rd.

Newark, DE  19713

Telephone No.:  302-634-3191

Fax No.:  302-634-3260

 

(l)                                     Addresses
for Transfers.

 

Counterparty: as set forth in notices to JPMorgan from time to time

 

JPMorgan:

JPMorgan Chase Bank

Collateral Middle Office Americas 3/OPS2

500 Stanton Christiana Rd.

Newark, DE  19713

Telephone No.:  302-634-3191

Fax No.:  302-634-3260

 

(m)                               Other
Provisions:

 

(i)                                     Modification to
Paragraph 1: The following subparagraph (b) is substituted for subparagraph
(b) of this Annex:

 

(b) Secured
Party and Pledgor.  All references
in this Annex to the “Secured Party” will be to Counterparty and all
corresponding references to the “Pledgor” will be to JPMorgan.

 

(ii)                                  Modification to
Paragraph 2:  The following
Paragraph 2 is substituted for Paragraph 2 of this Annex:

 

Paragraph 2.  Security Interest.  The Pledgor hereby pledges to the Secured
Party, as security for its Obligations, and grants to the Secured Party a first
priority continuing security interest in and lien on against all Posted
Collateral Transferred to or received by the Secured Party hereunder.  Upon the Transfer by the Secured Party to
the Pledgor of Posted Collateral, the security interest and lien granted
hereunder on that Posted Collateral will be released immediately and, to the
extent possible, without any further action by either party.

 

(iii)                               Modification to
Paragraph 8(a):  Paragraph 8(a) is
modified by deleting the text of clause (iii) thereof and replacing such text
with the word “Reserved”.

 

(iv)                              Modification to
Paragraph 8(b)(iv):  Paragraph
8(b)(iv) is modified and restated in its entirety to read as follows:

 

“(iv) to the extent that Posted Collateral or the Interest Amount is
not so Transferred pursuant to (iii) above, the Pledgor may withhold payment of
any remaining amounts payable by the Pledgor with respect to any Obligations,
up to the Value of

 

 

any remaining Posted Collateral held by the Secured Party, until that
Posted Collateral is Transferred to the Pledgor.”

 

(v)                                 Modification to
Paragraph 8(c):  Paragraph 8(c) is
modified and restated in its entirety to read as follows:

 

“(c)                            Deficiencies and Excess Proceeds.  The Secured Party will Transfer to the
Pledgor any proceeds and Posted Credit Support remaining after liquidation
and/or application under Paragraphs 8(a) and 8(b) after satisfaction in full of
all amounts payable by the Pledgor with respect to any Obligations; the Pledgor
in all events will remain liable for any amounts remaining unpaid after any
liquidation and/or application under Paragraphs 8(a) and 8(b).”

 

(vi)                              Modification to
Paragraph 9:  The following first
clause of Paragraph 9 is substituted for the first clause of Paragraph 9 of
this Annex:

 

Paragraph 9.   Representations.  The Pledgor represents to the Secured Party
(which representations will be deemed to be repeated as of each date on which
it Transfers Eligible Collateral) that:

 

(vii)                           Modifications to
Paragraph 12:  The following
definitions of “Pledgor” and “Secured Party” are substituted for the
definitions of those terms contained in Paragraph 12 of this Annex:

 

“Pledgor” means JPMorgan, when that party (i) is required to Transfer
Eligible Credit Support under Paragraph 3(a) or (ii) has Transferred Eligible
Credit Support under Paragraph 3(a).

 

“Secured Party” means Counterparty, when that party (i) is entitled to
receive Eligible Credit Support under Paragraph 3(a) or (ii) holds or is deemed
to hold Posted Credit Support.

 

(viii)                        Addition to Paragraph 12:  The following definitions of “Modified
Exposure” shall be added immediately after the definition of the term “Minimum
Transfer Amount” and immediately prior to the definition of the term
“Notification Time” in Paragraph 12 of this Annex:

 

“Modified Exposure” means, for any Valuation
Date, an amount equal to the greater of (i) the sum of the Secured Party’s
Exposure for that Valuation Date and the Volatility Buffer, and (ii) the amount
of the next scheduled payment that is required to be made by JPMorgan pursuant
to the Transaction.  As used herein:

 

“Volatility Buffer” means, with respect to
the Transaction, an amount equal to the product of (a) the Factor applicable to
the Transaction and (b) the Notional Amount of the Transaction.

 

“Factor” means, with respect to the
Transaction, a percentage dependent on JPMorgan’s Counterparty Rating and the
original maturity of the Transaction and determined by the Valuation Agent by
reference to the following table:

 

	
  Counterparty Rating

  	
   

  	
  Maturities up to 5

  years (%)

  	
   

  	
  Maturities up to 10

  years (%)

  	
   

  	
  Maturities up to 30

  years (%)

  
	
  A-2/P-2

  	
   

  	
  3.25

  	
   

  	
  4.00

  	
   

  	
  4.75

  
	
  A-3/P-3

  	
   

  	
  4.00

  	
   

  	
  5.00

  	
   

  	
  6.25

  
	
  BB+/Ba1 or lower

  	
   

  	
  4.50

  	
   

  	
  6.75

  	
   

  	
  7.50

  

 

 

(ix)                                Modification to
Paragraph 12:  Clause “(B)” of the
definition of “Value” will be substituted to read in its entirety as follows:

 

“(B) a security, the bid price obtained by the Valuation Agent from one
of the Pricing Sources multiplied by the applicable Valuation Percentage, if
any;”

 

(x)                                      Addition to
Paragraph 12:  The following definition
of “Pricing Sources” shall be added immediately after the definition of the
term “Posted Credit Support” and immediately prior to the definition of the
term “Recalculation Date” in Paragraph 12 of this Annex:

 

“Pricing Sources” means the sources of financial information commonly
known as Bloomberg, Bridge Information Services, Data Resources Inc.,
Interactive Data Services, International Securities Market Association, Merrill
Lynch Securities Pricing Service, Muller Data Corporation, Reuters, Wood Gundy,
Trepp Pricing, JJ Kenny, S&P and Telerate.

 

(xi)                                Expenses.  Notwithstanding Paragraph 10,
the Pledgor will be responsible for, and will reimburse the Secured Party for,
all transfer and other taxes and other costs involved in the transfer of
Eligible Collateral.

 

 

Accepted and Agreed:

 

	
  JPMORGAN CHASE BANK

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  WORLD FINANCIAL
  NETWORK CREDIT CARD MASTER NOTE TRUST

  
	
   

  
	
  By: Chase Manhattan Bank
  USA, National

  Association, not in its individual capacity, but

  solely as Owner Trustee

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

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