Document:

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                                                                     Exhibit 4.2

           STOCKHOLDER RIGHTS AGREEMENT, dated as of October 12, 2000,
           among Calpine Corporation, a Delaware corporation (the
           "Company"), and the parties listed on the signature pages
                                     hereto

                                  Introduction

     The Company has entered into a Stock and Note Purchase Agreement, dated as
of June 23, 2000, as amended (the "Stock and Note Purchase Agreement"), pursuant
to which, among other things, the Company is issuing, and Michael P. Polsky, the
ASP Trust (as defined in the Stock and Note Purchase Agreement) and the GJP
Trust (as defined in the Stock and Note Purchase Agreement) (collectively, the
"Stockholders") are acquiring, shares of the Company's common stock, par value
$0.001 per share (the "Common Stock").

     The execution and delivery of this Agreement by the Company and the
Stockholders is a condition precedent to the obligations of the Stockholders and
the Company under the Stock and Note Purchase Agreement.

     Capitalized terms used herein and not otherwise defined herein shall have
the meanings ascribed to such terms in Section 10(b).

     In   consideration of the foregoing, the covenants and obligations set
forth below and other good and valuable consideration, the parties agree as
follows:

     1.   Registration on Request.

     (a)  Request. Subject to the limitations set forth in Section 1(c) and
Section 20, Polsky may, from time to time, require the Company, upon written
notice to the Company, to use its best efforts to effect the registration under
the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder (the "Securities Act"), of the Registrable Securities
held by the Holders in the amounts and at the times specified in Section 1(b).
The Company promptly shall give notice (the "Company Notice") of such requested
registration to all other Holders of Registrable Securities. The Company shall
use its best efforts to effect, in accordance with the terms hereof, the
registration under the Securities Act for public sale (in accordance with the
method of disposition specified in the requesting notice from Polsky) of the
Registrable Securities that the Company has been requested to register by (i)
Polsky and (ii) such other Holders who have given written notice to the Company
within 20 days after the giving of the Company Notice.

     (b)  Eligibility. Polsky shall not be entitled to require registration of
any Registrable Securities pursuant to Section 1(a) prior to July 31, 2001.
Polsky shall be entitled to require registration pursuant to Section 1(a) (A) at
any time on and after July 31, 2001, of up to 33.33% of the Registrable
Securities held by the requesting Holders and (B) at any time on and after the
last day of each month thereafter, commencing August 31, 2001, of up to an
additional 2.778% of the Registrable Securities held by the requesting Holders,
it being understood that all Registrable Securities held by the Holders shall be
eligible for registration pursuant to Section 1(a) on and after July 31, 2003.

     (c)  Limitations. The Company shall not be required to effect a
registration pursuant to Section 1(a):

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          (i)  within 90 days after the effective date of a registration
statement (a "Registration Statement") filed by the Company with the Securities
and Exchange Commission (the "Commission") for a public offering and sale of
equity securities of the Company (other than a registration of securities
pursuant to (A) any Registration Statement on Form S-8 or Form S-4, (B) any
Registration Statement covering only securities proposed to be issued in
exchange for securities or assets of another corporation or entity or (C) any
Registration Statement relating solely to a dividend reinvestment plan, employee
stock option, stock purchase, benefit or similar plans (each, a "Special
Registration Statement")); provided that the Company shall use its best efforts
to achieve effectiveness of a registration requested hereunder promptly
following such 90 day period if such request is made during such 90 day period;

          (ii) on more than one occasion in any nine consecutive month period
commencing August 1, 2001; and

          (iii) on more than four occasions in the aggregate.

     (d)  Effective Registration Statement. A registration requested pursuant to
this Section 1 shall not be deemed to have been effected, and shall not be
deemed a requested registration for purposes of this Section 1, (i) unless a
Registration Statement covering at least 90% of the Registrable Securities
specified in the notices from Polsky and any other requesting Holders has become
effective and remained effective in compliance with the provisions of the
Securities Act with respect to the disposition of all Registrable Securities
covered by such Registration Statement for the requisite time period as set
forth in this Agreement; provided that a Registration Statement involving an
underwritten offering that does not cover at least 90% of the Registrable
Securities specified in the notices from Polsky and any other requesting Holders
solely by reason of a reduction in the number of Registrable Securities pursuant
to Section 1(f) shall be deemed to have been effected by the Company pursuant to
Section 1(a) unless Polsky and such other requesting Holders have elected to pay
all Registration Expenses in connection with such registration; provided further
that a registration which does not become effective after the Company has filed
a Registration Statement with respect thereto solely by reason of the refusal to
proceed of Polsky or any other requesting Holder shall be deemed to have been
effected by the Company at the request of Polsky and such other requesting
Holders unless Polsky and such other requesting Holders have elected to pay all
Registration Expenses in connection with such failed registration, (ii) if after
it has become effective, such registration is interfered with by any stop order,
injunction or other order or requirement of the Commission or other governmental
agency or court for any reason not attributable to any Holder, or (iii) if the
conditions to closing specified in the underwriting agreement, if any, entered
into in connection with such registration are not satisfied or waived, other
than by reason of a failure on the part of any Holder.

     (e)  Underwritten Offering. If any offering pursuant to a Registration
Statement pursuant to Section 1(a) hereof involves an underwritten offering,
Polsky shall have the right to select an investment banker and manager to
administer the offering, which investment banker and manager shall be reasonably
satisfactory to the Company.

     (f)  Priority in Requested Registration. The Company shall have the right
to include in any Registration Statement initiated by Polsky pursuant to Section
1(a) securities to be sold by the Company for its own account and securities of
the Company to be sold by any other

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stockholder pursuant to incidental registration rights granted to such
stockholder in accordance with Section 17 (the "Other Holders"). If, in the
good-faith judgment of the managing underwriter of any underwritten offering,
the inclusion of all of the Registrable Securities requested for inclusion
pursuant to Section 1(a) would adversely affect the successful marketing of the
proposed offering or a reduction in the number of shares of Common Stock to be
sold is otherwise advisable, then the number of shares of Common Stock to be
included in the offering shall be reduced to the required level, first, by
excluding securities to be sold by the Company for its own account, second, by
reducing the participation of Other Holders in such offering pro rata among such
Other Holders in such offering based upon the total number of securities owned
by such Other Holders or excluding securities to be sold by such Other Holders,
and third, by reducing the participation of Holders such that the total number
of shares to be registered in such offering shall be based upon the following
formula:

     O x H/T

     O = the total number of shares that the managing underwriter in its good
faith judgment agrees can be sold in the offering.

     H = the total number of Registrable Securities requested to be included
in the offering by each such Holder after having given proper notice to
participate in the offering.

     T = the total number of Registrable Securities requested to be included
in the offering by all Holders who have given proper notice to participate in
the offering.

     (g)  Demands Only by Polsky. All of the Holders acknowledge and agree that
the right to initiate a registration pursuant to Section 1(a) or to select and
underwriter pursuant to Section 1(g) shall be exercised solely by Polsky.

     2.   Incidental Registration.

     (a)  Right to Include Registrable Securities. If at any time the Company
proposes to register under the Securities Act the resale of any shares of Common
Stock by any executive officer of the Company on a form and in a manner that
would permit registration of Registrable Securities for the sale to the public
under the Securities Act (other than in connection with Special Registration
Statements), the Company shall give written notice to all Holders of its
intention to do so. Upon the written request of a Holder given within 30 days
after the giving of any such notice by the Company, the Company shall use its
best efforts to cause to be included in such Registration Statement all of the
Registrable Securities requested by Holders. If the Registration Statement is to
cover, in whole or in part, any underwritten distribution, the Company shall use
its best efforts to cause the Registrable Securities requested for inclusion
pursuant to this Section 2(a) to be included in the underwriting on the same
terms and conditions as the securities otherwise being sold through the
underwriters.

     (b)  Priority in Incidental Registrations. If in the good-faith judgment of
the managing underwriter of any underwritten offering, the inclusion of all of
the Registrable Securities requested for inclusion pursuant to Section 2(a)
would adversely affect the successful marketing of the proposed offering or a
reduction in the number of shares of Common Stock to be

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sold is otherwise advisable, then the number of shares of Common Stock to be
included in the offering shall be reduced to the required level, first, by
excluding securities to be sold by the Company for its own account, if any, and,
second, by reducing the participation of Holders and Other Holders in such
offering pro rata among such Holders and Other Holders based upon the following
formula:

     O x H/T

     O = the total number of shares that the managing underwriter in its good
faith judgment agrees can be sold in the offering.

     H = the total number of Registrable Securities requested to be included
in the offering by each such Holder who has given proper notice to participate
in the offering or the total number of securities requested to be included in
the offering by each such Other Holder, as the case may be.

     T = the total number of Registrable Securities requested to be included
in the offering by all Holders who have given proper notice to participate in
the offering and the total number of securities requested to be included in the
offering by all Other Holders.

     3.   Registration Procedures. If and whenever the Company is required by
the provisions of Sections 1 or 2 to effect the registration of Registrable
Securities under the Securities Act, the Company shall, at its expense, as
expeditiously as possible:

     (a)  prepare and, in any event within 60 days (or 90 days in the case of an
underwritten registration) after the end of the period within which a request
for registration may be given to the Company by an eligible Holder, file with
the Commission a Registration Statement with respect to such Registrable
Securities and use its best efforts to cause such Registration Statement to
become effective; provided that the Company may discontinue any registration of
its securities which is being effected pursuant to Section 2 at any time prior
to the effective date of the Registration Statement;

     (b)  prepare and file with the Commission such amendments and supplements
to such Registration Statement and the prospectus used in connection therewith
as may be necessary to keep such Registration Statement effective for a period
not in excess of 120 days (except with respect to any Registration Statement
filed pursuant to Rule 415 under the Securities Act if the Company is eligible
to file a Registration Statement on Form S-3, in which case the Company shall
use its best efforts to keep such Registration Statement effective and updated
until such time as all of the Registrable Securities covered by such
Registration Statement have been disposed of in accordance with the intended
methods of disposition by the seller or sellers set forth in such Registration
Statement) and to comply with the provisions of the Securities Act with respect
to the disposition of all Registrable Securities covered by such Registration
Statement during such period in accordance with the intended methods of
disposition by the seller or sellers thereof set forth in such Registration
Statement; provided that before filing a Registration Statement or prospectus,
or any amendments or supplements thereto, the Company will furnish to one
counsel selected by the Holders of a majority of the Registrable Securities
covered by such Registration Statement, which counsel shall be reasonably
acceptable to the Company, to represent all Holders of Registrable

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Securities covered by such Registration Statement, copies of all documents
proposed to be filed, which documents will be subject to the review of such
counsel;

     (c)  furnish to each seller of such Registrable Securities such number of
copies of such Registration Statement and of each amendment and supplement
thereto (in each case including all exhibits), such number of copies of the
prospectus included in such Registration Statement (including each preliminary
prospectus and summary prospectus), and any other prospectus filed under Rule
424 under the Securities Act in conformity with the requirements of the
Securities Act, and such other documents as such seller may reasonably request;

     (d)  use its best efforts to register or qualify such Registrable
Securities covered by such Registration Statement under such other securities or
blue sky laws of such jurisdictions as each seller shall reasonably request, and
do any and all other acts and things which may be reasonably necessary or
advisable to enable such seller to consummate the disposition in such
jurisdictions of the Registrable Securities owned by such seller, except that
the Company shall not for any such purpose be required (i) to qualify generally
to do business as a foreign corporation in any jurisdiction where, but for the
requirements of this clause (d), it would not be obligated to be so qualified or
(ii) to consent to general service or process in any such jurisdiction;

     (e)  notify each seller of any such Registrable Securities covered by such
Registration Statement, at any time when a prospectus relating thereto is
required to be delivered under the Securities Act, of the Company's becoming
aware that the prospectus included in such Registration Statement, as then in
effect, includes an untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading in the light of the circumstances then existing, and at
the request of any such seller, prepare and furnish to such seller a reasonable
number of copies of an amended or supplemental prospectus as may be necessary so
that, as thereafter delivered to the sellers of such Registrable Securities,
such prospectus shall not include an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the
statements therein not misleading in the light of the circumstances then
existing;

     (f)  otherwise use its best efforts to comply with all applicable rules and
regulations of the Commission, and make available to its security holders, as
soon as reasonably practicable (but not more than 18 months) after the effective
date of the Registration Statement, an earnings statement which shall satisfy
the provisions of Section 11(a) of the Securities Act and the rules and
regulations promulgated thereunder;

     (g)  use its best efforts to list such Registrable Securities on any
securities exchange or interdealer quotation system on which capital stock of
the same class is then listed, if such Registrable Securities are not already so
listed and if such listing is then permitted under the rules of such exchange or
system, and to provide a transfer agent and registrar for such Registrable
Securities covered by such Registration Statement not later than the effective
date of such Registration Statement;

     (h)  in connection with any underwritten offering, enter into such
customary agreements (including an underwriting agreement in customary form) and
take such other actions

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as the sellers of a majority of such Registrable Securities or the underwriters,
if any, reasonably request in order to expedite or facilitate the disposition of
such Registrable Securities;

     (i)  in connection with any underwritten offering, obtain a "cold comfort"
letter or letters from the Company's independent public accountants in customary
form and covering matters of the type customarily covered by "cold comfort"
letters as the sellers of a majority of such Registrable Securities shall
reasonably request;

     (j)  in connection with any underwritten offering, obtain an opinion of
counsel for the Company in customary form and covering matters of the type
customarily covered in opinions of the Company's counsel as the sellers of a
majority of such Registrable Securities shall reasonably request; and

     (k)  in connection with any underwritten offering, make available for
inspection by any seller of such Registrable Securities covered by such
Registration Statement, by any underwriter participating in any disposition to
be effected pursuant to such Registration Statement and by any attorney,
accountant or other agent retained by any such underwriter, all pertinent
financial and other records, pertinent corporate documents and properties of the
Company, and cause all of the Company's officers, directors and employees to
supply all information reasonably requested by any such seller, underwriter,
attorney, accountant or agent in connection with such Registration Statement.

     4.   Expenses. With respect to each registration effected pursuant to
Sections 1 or 2, all Registration Expenses in connection with such registration
and the public offering in connection therewith shall be borne by the Company;
provided that Holders participating in any such registration shall bear their
pro rata share of the underwriting discounts and selling commissions (on the
basis of the number of Registrable Securities of each such person included and
sold in such registration).

     5.   Indemnification and Contribution.

     (a)  Indemnification by the Company. In the event of a registration of any
shares of Registrable Securities pursuant to Section 1 or 2, the Company, to the
extent permitted by law, will indemnify and hold harmless each Holder of such
shares of Registrable Securities included in a Registration Statement pursuant
to the provisions of this Agreement and any underwriter (as defined in the
Securities Act) of such Registrable Securities and each other person, if any,
who controls such Holder or such underwriter within the meaning of the
Securities Act, and their respective directors, officers, partners, members,
agents and affiliates (the "Holders' Affiliates"), and each of their successors
from and against, and will reimburse such Holder and each such underwriter,
controlling person and Holders' Affiliate with respect to, any and all claims,
actions, demands, losses, damages, liabilities, costs and expenses to which such
Holder, underwriter, controlling person or Holders' Affiliate may become subject
under the Securities Act or otherwise, including, without limitation, the
reasonable fees and expenses of legal counsel, insofar as such claims, actions,
demands, losses, damages, liabilities, costs or expenses (or actions or
proceedings, whether commenced or threatened in respect thereof) arise out of or
are based upon any untrue statement or alleged untrue statement of any material
fact contained in such Registration Statement, any prospectus contained therein
or any amendment or supplement thereto, or arise out of or are

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based upon the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading or arise out of any violation by the Company of any rule or
regulation under the Securities Act or any state securities laws applicable to
the Company and relating to action or inaction required of the Company in
connection with such registration; provided that the Company will not be liable
in any case to the extent, but only to the extent, that any such claim, action,
demand, loss, damage, liability, cost or expense arises out of or is based upon
an untrue statement or omission so made in reliance upon and in strict
conformity with information furnished in writing by such Holder or such
underwriter specifically for use in the preparation thereof. This indemnity
shall remain in full force and effect regardless of any investigation made by or
on behalf of such Holder, underwriter, controlling person or Holders' Affiliate
and shall survive the transfer of such securities by such Holder.

     (b)  Indemnification by the Holders. Each Holder of shares of Registrable
Securities that are included in a Registration Statement pursuant to the
provisions of this Agreement, severally and not jointly, to the extent permitted
by law, will indemnify and hold harmless the Company, each person, if any, who
controls the Company within the meaning of the Securities Act, each officer of
the Company who signs such Registration Statement, each director of the Company,
each underwriter and any person who controls the underwriter and each of their
successors from and against, and will reimburse the Company and such officer,
director, underwriter or controlling person with respect to, any and all claims,
actions, demands, losses, damages, liabilities, costs or expenses to which the
Company or such officer, director, underwriter or controlling person may become
subject under the Securities Act or otherwise, insofar as such claims, actions,
demands, losses, damages, liabilities, costs or expenses arise out of or are
based upon any untrue statement or alleged untrue statement of any material fact
contained in such Registration Statement, any prospectus contained therein or
any amendment or supplement thereto, or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading;
provided that such Holder will be liable in any such case to the extent, but
only to the extent, that any such claim, action, demand, loss, damage,
liability, cost or expense arises out of or is based upon an untrue statement or
omission made in reliance upon and in strict conformity with written information
furnished by such Holder specifically for use in the preparation thereof. The
liability of each Holder under this Section 5(b) shall be limited to the
proportion of any such claim, action, demand, loss, damage, liability, cost or
expense which is equal to the proportion that the public offering price of the
shares of Registrable Securities sold by such Holder under such Registration
Statement bears to the total offering price of all securities sold thereunder,
but not, in any event, to exceed the proceeds received by such Holder from the
sale of shares of Registrable Securities covered by the Registration Statement.
It is agreed that this indemnity shall not apply to amounts paid in settlement
of any such claim, action, demand, loss, damage, liability, cost or expense if
such settlement is effected without the consent of the Holders (which consent
shall not be unreasonably withheld). This indemnity shall remain in full force
and effect regardless of any investigation made by or on behalf of such Holder,
underwriter or any such director, officer, partner, member, agent or controlling
person and shall survive the transfer of such securities by such Holder.

     (c)  Notices of Claims, etc. Promptly after receipt by a party to be
indemnified pursuant to the provisions of Section 5(a) or (b) (an "indemnified
party") of notice of the commencement of any action involving the subject matter
of the foregoing indemnity provisions, such indemnified party will, if a claim
thereof is to be made against the indemnifying party

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pursuant to the provisions of this Section 5(a) or (b), notify the indemnifying
party of the commencement thereof, but the omission to so notify the
indemnifying party will not relieve it from any liability which it may have to
an indemnified party otherwise than under this Section 5 and shall not relieve
the indemnifying party from liability under this Section 5 unless such
indemnifying party is prejudiced by such omission. In case such action is
brought against any indemnified party and it notifies the indemnifying party of
the commencement thereof, the indemnifying party shall have the right to
participate in, and, to the extent that it may wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with
counsel reasonably satisfactory to such indemnified party, and after the notice
from the indemnifying party to such indemnified party of its election to assume
the defense thereof, the indemnifying party will not be liable to such
indemnified party pursuant to the provisions of Section 5(a) and (b) for any
legal expense subsequently incurred by such indemnified party in connection with
the defense thereof other than reasonable costs of investigation; provided that,
if the defendants in any such action include both the indemnified party and the
indemnifying party and the indemnified party shall have reasonably concluded
that there may be reasonable defenses available to it that are different from or
additional to those available to the indemnifying party or if the interests of
the indemnified party reasonably may be deemed to conflict with the interests of
the indemnifying party, the indemnified party shall have the right to select a
separate counsel and to assume such legal defenses and otherwise to participate
in the defense of such action, with the expenses and fees of such separate
counsel and other expenses related to such participation to be reimbursed by the
indemnifying parry as incurred; provided that the indemnifying party shall be
required to pay the fees of only one separate counsel for all indemnified
parties in such action. No indemnifying party shall be liable to an indemnified
party for any settlement of any action or claim without the consent of the
indemnifying party and no indemnifying party may unreasonably withhold its
consent to any such settlement. No indemnifying party will, except with the
consent of the indemnified party, consent to entry of any judgment or enter into
any settlement which does not include as an unconditional term thereof the
giving by the claimant or plaintiff to such indemnified party of a release from
all liability in respect to such claim or litigation.

     (d)  Contribution. In order to provide for just and equitable contribution
to joint liability under the Securities Act in any case in which either (i) any
Holder exercising rights under this Agreement, any underwriter or controlling
person of any such Holder or underwriter, or any Holders' Affiliate, makes a
claim for indemnification pursuant to this Section 5 but it is judicially
determined (by the entry of a final judgment or decree by a court of competent
jurisdiction and the expiration of time to appeal or the denial of the last
right of appeal) that such indemnification may not be enforced in such case
notwithstanding the fact that this Section 5 provides for indemnification in
such case, or (ii) contribution under the Securities Act may be required on the
part of any such Holder, underwriter, controlling person or Holders' Affiliate
in circumstances for which indemnification is provided under this Section 5,
then, and in each such case, the Company and such Holder will contribute to the
aggregate losses, claims, damages or liabilities to which they may be subject
(after contribution from others) in such proportion as is appropriate to reflect
the relative fault of the Company on the one hand and of the Holder of
Registrable Securities on the other in connection with the statements or
omissions that resulted in such losses, claims, damages or liabilities, as well
as any other relevant equitable considerations. The relative fault of the
Company on the one hand and of the Holder of Registrable Securities on the other
shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or omission or alleged omission to
state a material fact relates to information supplied

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by the Company on the one hand or by the Holder of Registrable Securities on the
other, and each party's relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission; provided that, in
any such case, (A) no person or entity guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) will be entitled to
contribution from any person or entity who was not guilty of such fraudulent
misrepresentation and (B) no such Holder will be required to contribute any
amount in excess of the proceeds received by such Holder from the sales of
Registrable Securities covered by the Registration Statement.

     (e)  Other Indemnification. Notwithstanding the foregoing, to the extent
that the provisions on indemnification and contribution contained in the
underwriting agreement entered into in connection with any underwritten public
offering of Registrable Securities are in conflict with the foregoing
provisions, the provisions in the underwriting agreement shall control.

     6.   Reporting Requirements.

     (a)  Exchange Act Reporting. The Company shall timely file such
information, documents and reports as the Commission may require or prescribe
under Section 13 of the Securities Exchange Act of 1934, as amended (the
"Exchange Act").

     (b)  Furnishing Information to Holders. The Company shall forthwith upon
request furnish any Holder of Registrable Securities (a) a copy of the most
recent annual or quarterly report of the Company, and (b) such other reports and
documents filed by the Company with the Commission as such Holder may reasonably
request in availing itself of an exemption for the sale of Registrable
Securities without registration under the Securities Act.

     (c)  Rule 144. The Company acknowledges and agrees that the purposes of the
requirements contained in this Section 6 are to enable any such Holder to comply
with the current public information requirement contained in paragraph (c) of
Rule 144 under the Securities Act should such Holder ever wish to dispose of any
Registrable Securities in reliance upon Rule 144 (or any other similar or
successor exemptive provision hereafter in effect). In addition, the Company
shall take such other measures and file such other information, documents and
reports as shall hereafter be required by the Commission as a condition to the
availability of Rule 144 under the Securities Act (or any similar or successor
exemptive provision hereafter in effect). The Company agrees to use reasonable
efforts to facilitate and expedite transfers of Registrable Securities by
Holders pursuant to Rule 144 under the Securities Act (or any similar or
successor exemptive provision hereafter in effect), which efforts shall include
timely notice to its transfer agent to expedite such transfers of Registrable
Securities.

     7.   Stockholder Information. The Company may require each Holder of
Registrable Securities as to which any registration is to be effected pursuant
to this Agreement to furnish the Company in a timely manner such information
with respect to such Holder and the distribution of such Registrable Securities
as the Company may from time to time reasonably request and as shall be required
by law or by the rules and regulations of the Commission in order to facilitate
the disposition of the Registrable Securities owned by them that are included in
such registration.

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     8.   Specific Enforcement. All of the parties acknowledge that the parties
will be irreparably damaged in the event that this Agreement is not specifically
enforced. Upon a breach or threatened breach of the terms, covenants or
conditions of this Agreement by any of the parties hereto, the other parties
shall, in addition to all other remedies, be entitled to a temporary or
permanent injunction, without showing any actual damage, or a decree for
specific performance, in accordance with the provisions of this Agreement.

     9.   Restrictions on Transfer.

     (a)  No Holder shall, directly or indirectly, sell (including short sales),
transfer, exchange, assign, pledge, hypothecate, give or otherwise dispose of
any Registrable Securities, or any right or interest therein, or enter into any
contract in respect of any of the foregoing, unless and until such Registrable
Securities are either (i) eligible for registration for resale under the
Securities Act pursuant to Section 1 (regardless of whether such Registrable
Securities are actually registered) or (ii) are registered for resale under the
Securities Act pursuant to Section 2; provided that

          (A) a Stockholder or Plan Participant without registration may
          transfer Registrable Securities by gift to any member of such
          Stockholder's or Plan Participant's immediate family or to a trust
          solely for the benefit of one or more members of such Stockholder's or
          Plan Participant's immediate family;

          (B) Registrable Securities without registration may be transferred to
          a Holder's executor, administrator, trustee, or personal
          representative at death or involuntarily by operation of law; and

          (C) within 30 days after the date hereof, Michael P. Polsky may sell
          up to an aggregate of 67,000 Registrable Securities to the Plan
          Participants, provided that as a condition precedent to each such
          sale, the Company shall have received an opinion of Sachnoff & Weaver,
          Ltd., in form and substance reasonably satisfactory to the Company,
          that such sale is exempt from registration under the Securities Act
          and all applicable state securities laws;

and in each case any such transfer otherwise shall be exempt from registration
under the Securities Act and any applicable state securities laws.

     (b)  Each stock certificate representing Registrable Securities shall be
imprinted with the following legend:

          "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
          UNDER THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES LAWS. SUCH
          SHARES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE PLEDGED,
          OFFERED, SOLD OR TRANSFERRED EXCEPT IN COMPLIANCE WITH THE

                                       10
<PAGE>

          REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933 AND APPLICABLE
          STATE SECURITIES LAWS OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION
          REQUIREMENTS IS AVAILABLE AND UPON DELIVERY TO THE COMPANY, IF
          REQUESTED, OF AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO THE
          COMPANY, IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY,
          THAT REGISTRATION IS NOT REQUIRED. THE SHARES REPRESENTED BY THIS
          CERTIFICATE ARE HELD SUBJECT TO THE TERMS OF A STOCKHOLDER RIGHTS
          AGREEMENT, DATED AS OF OCTOBER 12, 2000. A COPY OF THE STOCKHOLDER
          RIGHTS AGREEMENT IS AVAILABLE FOR INSPECTION DURING NORMAL BUSINESS
          HOURS AT THE PRINCIPAL OFFICES OF THE COMPANY. NEITHER THIS
          CERTIFICATE NOR THE SHARES REPRESENTED HEREBY MAY BE SOLD, ASSIGNED,
          TRANSFERRED, MORTGAGED, PLEDGED, HYPOTHECATED, OR OTHERWISE DISPOSED
          OR ENCUMBERED, DIRECTLY OR INDIRECTLY, EXCEPT IN ACCORDANCE WITH THE
          PROVISIONS OF SUCH STOCKHOLDER RIGHTS AGREEMENT. THE STOCKHOLDER
          RIGHTS AGREEMENT SHOULD BE READ CAREFULLY PRIOR TO PURCHASING THE
          SHARES REPRESENTED HEREBY."

The Company may instruct its transfer agent to impose appropriate stop transfer
procedures to enforce the restrictions imposed by Section 9(a).

     (c)  The legend specified in Section 9(b) shall be removed and the Company
shall promptly issue, or shall promptly cause to be issued, a certificate
without such legend to the Holder of any Registrable Securities if the resale of
such Registrable Securities is registered under the Securities Act pursuant to
Section 1 or 2.

     10.  Descriptive Headings; Definitions; Certain Interpretations.

     (a)  Descriptive headings are for convenience only and shall not control or
affect the meaning or construction of any provision of this Agreement.

     (b)  As used in this Agreement, the following terms shall have the
following respective meanings:

     "Affiliate" means (a) any person directly or indirectly controlling,
controlled by or under common control with another person; (b) any person owning
or controlling 10% or more of the outstanding voting securities of such other
person; (c) any partner, officer, director, employee or stockholder of such
person or any parent, spouse, child, brother, sister or other relative with a

                                       11
<PAGE>

relationship (by blood, marriage or adoption) or not more remote than first
cousin of any of the foregoing; or (d) any liquidating trust, trustee or other
similar person or entity for any person.

     "Holder" means (a) the Stockholders and (b) any other person to which the
rights of registration under this Agreement have been transferred or assigned in
accordance with the terms of this Agreement.

     "Plan Participant" means each of the individuals identified on Schedule 1
hereto.

     "Polsky" means Michael A. Polsky or, in the event of his death or
incapacity, a single person designated in writing to the Company by his estate
or administrator.

     "Registrable Securities" means (a) 1,058,871 shares of Common Stock issued
to the Stockholders pursuant to the Stock and Note Purchase Agreement and (b)
any shares of Common Stock issued in respect of such shares by way of a stock
dividend or stock split or in connection with a combination of shares,
recapitalization, merger or consolidation or reorganization; provided that any
such shares shall cease to be Registrable Securities when such securities have
been sold in a public distribution or a public securities transaction.

     "Registration Expenses" means any and all expenses incident to performance
of or compliance with this Agreement, including (i) all registration and filing
fees of the Commission, a stock exchange or the National Association of
Securities Dealers, Inc., (ii) all fees and expenses of complying with
securities or blue sky laws, (iii) all printing, messenger and delivery
expenses, (iv) all fees and expenses incurred in connection with the listing of
the Registrable Securities on any securities exchange pursuant to Section 3(g),
(v) the fees and disbursements of counsel for the Company and of its independent
public accountants, including the expenses of any special audits or "cold
comfort" letters required by or incident to such performance and compliance,
(vi) the reasonable fees and disbursements of one counsel selected by the
Holders of a majority of the Registrable Securities being registered to
represent all Holders of the Registrable Securities being registered in
connection with each such registration, and (vii) the reasonable fees and
expenses of any special experts retained by the Company in connection with the
requested registration.

     (c)  Except as otherwise expressly provided in this Agreement, the
following rules of interpretation apply to this Agreement: (i) the singular
includes the plural and the plural includes the singular; (ii) "or" or "any" are
not exclusive and "include" and "including" are not limiting; (iii) a reference
to any agreement or other contract includes permitted supplements and
amendments; (iv) a reference to a law includes any amendment or modification to
such law and any rules or regulations issued thereunder; (v) a reference to a
person includes its permitted successors and assigns; and (vi) a reference in
this Agreement to an Section or Schedule is to the Section or Schedule of this
Agreement.

     11.  Notices. All notices, requests and other communications to any party
hereunder shall be in writing and sufficient if delivered personally or sent by
telecopy (with confirmation of receipt) or by registered or certified mail,
postage prepaid, return receipt requested, addressed as follows:

                                       12
<PAGE>

     If to the Company:     Calpine Corporation
                            50 West San Fernando Street
                            San Jose, California 95113
                            Attention:  Ann B. Curtis
                            Fax No.:  408-995-0505

     With a copy to:        Covington & Burling
                            1330 Avenue of the Americas
                            New York, New York 10019
                            Attention: William R. Collins
                            Fax No.: (212) 841-1010

If to any Holder, to its address as provided on its signature page attached
hereto, or to such other address or telecopy number as the party to whom notice
is to be given may have furnished to the other party in writing in accordance
herewith. Each such notice, request or communication shall be effective when
received or, if given by mail, when delivered at the address specified in this
Section or on the fifth business day following the date on which such
communication is posted, whichever occurs first.

     12.  Counterparts. This Agreement may be executed in any number of
counterparts, and each such counterpart hereof shall be deemed to be an original
instrument, but all such counterparts together shall constitute but one
agreement.

     13.  Benefits of Agreement. All of the terms and provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and permitted assigns. This Agreement is for the
sole benefit of the parties hereto and not for the benefit of any third party.

     14.  Enforceability. It is the desire and intent of the parties hereto that
the provisions of this Agreement shall be enforced to the fullest extent
permissible under the laws and public policies applied in each jurisdiction in
which enforcement is sought. Accordingly, if any particular provision of this
Agreement shall be adjudicated to be invalid or unenforceable, such provision
shall be deemed amended to delete therefrom the portion thus adjudicated to be
invalid or unenforceable, such deletion to apply only with respect to the
operation of such provision in the particular jurisdiction in which such
adjudication is made.

     15.  GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO ANY
CHOICE OR CONFLICT OF LAWS PROVISIONS).

     16.  WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN
CONNECTION WITH THIS AGREEMENT. EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS

                                       13
<PAGE>

REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE OTHER PARTY WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES
THAT IT AND THE OTHER PARTY HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION 16.

     17.  Other Registration Rights. Within the limitations prescribed by this
Section 17, but not otherwise, the Company may grant to other investors in the
Company rights of incidental registration (such as those rights provided in
Section 2) with respect to registrations requested by Holders pursuant to
Section 1, but only in respect of that portion of any such registration as
remains after inclusion of all shares of Registrable Securities requested by
Holders.

     18.  Successors and Assigns. This Agreement shall be binding upon and shall
inure to the benefit of the parties hereto and their respective successors and
permitted assigns. The Stockholders' rights hereunder may not be assigned to any
person or entity except a transferee of Registrable Securities pursuant to an
unregistered transfer by a Holder in accordance with the proviso set forth in
Section 9(a); provided that any such transferee agrees in writing to be bound by
all of the terms and conditions of this Agreement.

     19.  Blackout Periods. Notwithstanding any other provision in this
Agreement to the contrary, the Company's obligation to file a Registration
Statement, or cause such Registration Statement to become and remain effective,
shall be suspended for not more than one period not to exceed an aggregate of 90
days in any 12-month period if the Company shall furnish to Holders a
certificate signed by the president of the Company stating that in the
reasonable judgment of the Board of Directors of the Company it would be
seriously detrimental to the Company and its stockholders for such registration
to be effected at such time due to undisclosed pending Company events. Any such
suspension shall terminate upon disclosure of such events by the Company or the
termination of such events.

     20.  Aircraft Carrier Release. The parties agree that if Release No.
33-7606A, or a similar release, is adopted by the Commission, the parties shall
make amendments to this Agreement necessary to preserve the intent of this
Agreement. All references to forms of the Commission in this Agreement include
successor forms thereto.

     21.  Entire Agreement. This Agreement contains the entire agreement and
understanding between the parties hereto with respect to matters covered hereby
and supersedes all prior agreements with respect to its subject matter and
understandings, written or oral, among the parties with respect to the subject
matter hereof.

     22.  Amendment and Waiver. This Agreement and the rights granted to the
Stockholders may be modified, amended or waived only by a writing signed by each
party hereto.

     23.  Admission of Additional Holders. Any person who on or subsequent to
the date of this Agreement acquires Registrable Securities pursuant to Section
9(a), shall, upon execution of a counterpart signature page of this Agreement
become a party to this Agreement without further action by the other parties
hereto. The addition of any such person as a party to this Agreement party shall
not be considered an amendment of this Agreement.

                                       14

<PAGE>

     IN WITNESS WHEREOF, the parties have duly executed this Agreement as of
the date first above written.

                           CALPINE CORPORATION

                           By: /s/ Ann B. Curtis
                               ----------------------------------------------
                               Name:  Ann B. Curtis
                               Title: Executive Vice President,
                                      Chief Financial Officer and Secretary

                                       15
<PAGE>
HOLDER SIGNATURE PAGE

                              Michael P. Polsky
                              ----------------------------------------------
                              Print Name of Holder

                              /s/ Michael P. Polsky
                              ----------------------------------------------

                              ----------------------------------------------
                              Print Name of Signatory (if Holder is
                              not a natural person)

                              ----------------------------------------------
                              Title of Signatory (if Holder is not a
                              a natural person)

                              Address:
                              233 South Wacker Drive
                              ----------------------------------------------
                              Suite 9425
                              ----------------------------------------------
                              Chicago, IL 60606
                              ----------------------------------------------

<PAGE>

HOLDER SIGNATURE PAGE

                              David Boyce
                              ----------------------------------------------
                              Print Name of Holder

                              /s/ David Boyce
                              ----------------------------------------------

                              ----------------------------------------------
                              Print Name of Signatory (if Holder is
                              not a natural person)

                              ----------------------------------------------
                              Title of Signatory (if Holder is not a
                              a natural person)

                              Address:
                              8 Bel Aire Court
                              ----------------------------------------------
                              Buffalo Grove, IL 60089
                              ----------------------------------------------
<PAGE>
HOLDER SIGNATURE PAGE

                              Steve Dowdy
                              ----------------------------------------------
                              Print Name of Holder

                              /s/ Steve Dowdy
                              ----------------------------------------------

                              ----------------------------------------------
                              Print Name of Signatory (if Holder is
                              not a natural person)

                              ----------------------------------------------
                              Title of Signatory (if Holder is not a
                              a natural person)

                              Address:
                              210 Wyngate Drive
                              ----------------------------------------------
                              Barrington, IL 60010
                              ----------------------------------------------

<PAGE>

HOLDER SIGNATURE PAGE

                              Alex George
                              ----------------------------------------------
                              Print Name of Holder

                              /s/ Alex George
                              ----------------------------------------------

                              ----------------------------------------------
                              Print Name of Signatory (if Holder is
                              not a natural person)

                              ----------------------------------------------
                              Title of Signatory (if Holder is not a
                              a natural person)

                              Address:
                              810 Alleghany Road
                              ----------------------------------------------
                              Grayslake, IL 60030
                              ----------------------------------------------
<PAGE>

HOLDER SIGNATURE PAGE

                              Andy Kellen
                              ----------------------------------------------
                              Print Name of Holder

                              /s/ Andy Kellen
                              ----------------------------------------------

                              ----------------------------------------------
                              Print Name of Signatory (if Holder is
                              not a natural person)

                              ----------------------------------------------
                              Title of Signatory (if Holder is not a
                              a natural person)

                              Address:
                              6905 Wellauer Drive
                              ----------------------------------------------
                              Wauwatosa, WI 53213
                              ----------------------------------------------
<PAGE>

HOLDER SIGNATURE PAGE

                              Jerrold Levy
                              ----------------------------------------------
                              Print Name of Holder

                              /s/ Jerrold Levy
                              ----------------------------------------------

                              ----------------------------------------------
                              Print Name of Signatory (if Holder is
                              not a natural person)

                              ----------------------------------------------
                              Title of Signatory (if Holder is not a
                              a natural person)

                              Address:
                              2106 Brandywyn Lane
                              ----------------------------------------------
                              Buffalo Grove, IL 60089
                              ----------------------------------------------
<PAGE>
HOLDER SIGNATURE PAGE

                              Tom Long
                              ----------------------------------------------
                              Print Name of Holder

                              /s/ Tom Long
                              ----------------------------------------------

                              ----------------------------------------------
                              Print Name of Signatory (if Holder is
                              not a natural person)

                              ----------------------------------------------
                              Title of Signatory (if Holder is not a
                              a natural person)

                              Address:
                              41 East Stone Avenue
                              ----------------------------------------------
                              Lake Forest, IL 60045
                              ----------------------------------------------

<PAGE>
HOLDER SIGNATURE PAGE

                              Terry Mitchell
                              ----------------------------------------------
                              Print Name of Holder

                              /s/ Terry Mitchell
                              ----------------------------------------------

                              ----------------------------------------------
                              Print Name of Signatory (if Holder is
                              not a natural person)

                              ----------------------------------------------
                              Title of Signatory (if Holder is not a
                              a natural person)

                              Address:
                              17 Bristol Court
                              ----------------------------------------------
                              Mundelein, IL 60060
                              ----------------------------------------------
<PAGE>
HOLDER SIGNATURE PAGE

                              Kent Morton
                              ----------------------------------------------
                              Print Name of Holder

                              /s/ Kent Morton
                              ----------------------------------------------

                              ----------------------------------------------
                              Print Name of Signatory (if Holder is
                              not a natural person)

                              ----------------------------------------------
                              Title of Signatory (if Holder is not a
                              a natural person)

                              Address:
                              1000 West Washington Boulevard
                              ----------------------------------------------
                              #134
                              ----------------------------------------------
                              Chicago, IL 60607
                              ----------------------------------------------

<PAGE>
HOLDER SIGNATURE PAGE

                              Bryan Schueler
                              ----------------------------------------------
                              Print Name of Holder

                              /s/ Bryan Schueler
                              ----------------------------------------------

                              ----------------------------------------------
                              Print Name of Signatory (if Holder is
                              not a natural person)

                              ----------------------------------------------
                              Title of Signatory (if Holder is not a
                              a natural person)

                              Address:
                              2040 Walters Avenue
                              ----------------------------------------------
                              Northbrook, IL 60062
                              ----------------------------------------------
<PAGE>
HOLDER SIGNATURE PAGE

                              James Shield
                              ----------------------------------------------
                              Print Name of Holder

                              /s/ James Shield
                              ----------------------------------------------

                              ----------------------------------------------
                              Print Name of Signatory (if Holder is
                              not a natural person)

                              ----------------------------------------------
                              Title of Signatory (if Holder is not a
                              a natural person)

                              Address:
                              20428 Weatherstone
                              ----------------------------------------------
                              Kildeer, IL 60047
                              ----------------------------------------------
<PAGE>
HOLDER SIGNATURE PAGE

                              Shailesh Vyas
                              ----------------------------------------------
                              Print Name of Holder

                              /s/ Shailesh Vyas
                              ----------------------------------------------

                              ----------------------------------------------
                              Print Name of Signatory (if Holder is
                              not a natural person)

                              ----------------------------------------------
                              Title of Signatory (if Holder is not a
                              a natural person)

                              Address:
                              8323 Misty Trail Drive
                              ----------------------------------------------
                              Houston, TX 77095
                              ----------------------------------------------
<PAGE>
HOLDER SIGNATURE PAGE

                              Bianca Virgili
                              ----------------------------------------------
                              Print Name of Holder

                              /s/ Bianca Virgili
                              ----------------------------------------------

                              ----------------------------------------------
                              Print Name of Signatory (if Holder is
                              not a natural person)

                              ----------------------------------------------
                              Title of Signatory (if Holder is not a
                              a natural person)

                              Address:
                              207 West Ridge
                              ----------------------------------------------
                              Prospect Heights, IL 60070
                              ----------------------------------------------
<PAGE>
HOLDER SIGNATURE PAGE

                              Mark Leaman and Marlo Leman, JTWROS
                              ----------------------------------------------
                              Print Name of Holder

                              /s/ Mark Leaman and Marlo Leaman, JTWROS
                              ----------------------------------------------

                              ----------------------------------------------
                              Print Name of Signatory (if Holder is
                              not a natural person)

                              ----------------------------------------------
                              Title of Signatory (if Holder is not a
                              a natural person)

                              Address:
                              2036 Walters Avenue
                              ----------------------------------------------
                              Northbrook, IL 60062
                              ----------------------------------------------
<PAGE>
HOLDER SIGNATURE PAGE

                              Enio Ricci and Mary Ricci, JTWROS
                              ----------------------------------------------
                              Print Name of Holder

                              /s/ Enio Ricci and Mary Ricci, JTWROS
                              ----------------------------------------------

                              ----------------------------------------------
                              Print Name of Signatory (if Holder is
                              not a natural person)

                              ----------------------------------------------
                              Title of Signatory (if Holder is not a
                              a natural person)

                              Address:
                              One Littlebrooke Court
                              ----------------------------------------------
                              Olney, MD 20832
                              ----------------------------------------------
<PAGE>
HOLDER SIGNATURE PAGE

                              James Murphy and Kathryn Murphy
                              ----------------------------------------------
                              Print Name of Holder

                              /s/ James Murphy and Kathryn Murphy
                              ----------------------------------------------

                              ----------------------------------------------
                              Print Name of Signatory (if Holder is
                              not a natural person)

                              ----------------------------------------------
                              Title of Signatory (if Holder is not a
                              a natural person)

                              Address:
                              125 Tall Trees Drive
                              ----------------------------------------------
                              Barrington, IL 60010
                              ----------------------------------------------Prepared by MERRILL CORPORATION

Use these links to rapidly review the document

  TABLE OF CONTENTS

TARGET RECEIVABLES CORPORATION, 

Transferor

RETAILERS
NATIONAL BANK, 

Servicer

and 

WELLS
FARGO BANK MINNESOTA, NATIONAL ASSOCIATION 

Trustee 

on
behalf of the Series 2001-1 Certificateholders 

SERIES 2001-1 SUPPLEMENT  

Dated as of August 22, 2001 

to 

AMENDED
AND RESTATED

POOLING AND SERVICING AGREEMENT 

Dated
as of April 28, 2000 

TARGET
CREDIT CARD MASTER TRUST 

$750,000,000
Floating Rate Class A Asset Backed

Certificates, Series 2001-1 

$250,000,000
Class B Asset Backed

Certificates, Series 2001-1 

  

 

TABLE OF CONTENTS    
  

 

	 
	 	 

	 ARTICLE I    CREATION OF THE SERIES 2001-1 CERTIFICATES
	 	Section 1.1.	 	Designation
	 	Section 1.2.	 	Delivery and Payment for the Series 2001-1 Certificates
	 	Section 1.3.	 	Form of Delivery of Series 2001-1 Certificates
	

ARTICLE II    DEFINITIONS
	 	Section 2.1.	 	Definitions
	

ARTICLE III    SERVICER
	 	Section 3.1.	 	Servicing Compensation
	

ARTICLE IV    RIGHTS OF CERTIFICATEHOLDERS AND ALLOCATION AND APPLICATION OF COLLECTIONS
	 	Section 4.1.	 	Rights of Certificateholders
	 	Section 4.2.	 	Collections and Allocation; Payments on Transferor Certificate
	 	Section 4.3.	 	Determination of Monthly Interest for the Series 2001-1 Certificates
	 	Section 4.4.	 	Determination of Principal Amounts
	 	Section 4.5.	 	Shared Principal Collections
	 	Section 4.6.	 	Application of Funds on Deposit in the Collection Account for the Certificates
	 	Section 4.7.	 	Coverage of Required Amount for the Series 2001-1 Certificates
	 	Section 4.8.	 	Investor Charge-Offs
	 	Section 4.9.	 	Reallocated Class B Principal Collections for the Series 2001-1 Certificates
	 	Section 4.10.	 	Issuance of Additional Investor Certificates
	 	Section 4.11.	 	Establishment of the Principal Funding Account for the Certificates
	 	Section 4.12.	 	Accumulation Period
	 	Section 4.13.	 	Reserve Account
	 	Section 4.14.	 	Defeasance
	 	Section 4.15.	 	Determination of LIBOR
	

ARTICLE V    DISTRIBUTIONS AND REPORTS TO SERIES 2001-1 INVESTOR CERTIFICATEHOLDERS
	 	Section 5.1.	 	Distributions
	 	Section 5.2.	 	Reports and Statements to Series 2001-1 Certificateholders
	

ARTICLE VI    EARLY AMORTIZATION EVENTS
	 	Section 6.1.	 	Series 2001-1 Early Amortization Events
	

ARTICLE VII    OPTIONAL REPURCHASE; SERIES TERMINATION; SALE OF CLASS B CERTIFICATES
	 	Section 7.1.	 	Optional Repurchase
	 	Section 7.2.	 	Series 2001-1 Termination
	 	Section 7.3.	 	Reduction of Class B Invested Amount During the Revolving Period; Designation of Class B Certificate Terms; Sale of Class B
Certificates
	 	Section 7.4.	 	Purchase of the Class A Certificates by the Transferor
	

ARTICLE VIII    FINAL DISTRIBUTION
	 	Section 8.1.	 	Sale of Receivables or Certificateholders' Interest pursuant to Section 2.6 or 10.1 of the Agreement and Section 7.1 or 7.2 of this
Supplement
	

ARTICLE IX    MISCELLANEOUS PROVISIONS
	 	Section 9.1.	 	Delivery and Payment for the Series 2001-1 Certificates
	 	Section 9.2.	 	Form of Delivery of Series 2001-1 Certificates
	 	Section 9.3.	 	Legend on Class B Certificates

 

	 	Section 9.4.	 	Ratification of Agreement
	 	Section 9.5.	 	Counterparts
	 	Section 9.6.	 	Paired Series
	 	Section 9.7.	 	Jurisdiction; Service
	 	Section 9.8.	 	Governing Law
	 	Section 9.9.	 	Instructions in Writing
	 	Section 9.10.	 	Target VISA Automatic Addition Limitation
	

EXHIBITS
	 	

EXHIBIT A-1	
 	

FORM OF CLASS A INVESTOR CERTIFICATE
	 	EXHIBIT A-2	 	FORM OF CLASS B INVESTOR CERTIFICATE
	 	EXHIBIT B	 	FORM OF MONTHLY SERIES 2001-1 CERTIFICATEHOLDERS' STATEMENT
	 	EXHIBIT C	 	FORM OF MONTHLY SERVICER'S CERTIFICATE

  

    SERIES
2001-1 SUPPLEMENT, dated as of August 22, 2001 (this "Supplement") by and among TARGET RECEIVABLES CORPORATION, a corporation
organized and existing under the laws of the State of Minnesota, as Transferor (the "Transferor"), RETAILERS NATIONAL BANK, a national banking association organized and
existing under the laws of the United States, as Servicer ("RNB" or the "Servicer"), and WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION
(formerly known as Norwest Bank Minnesota, National Association), a national banking association organized and existing under the laws of the United States, as trustee (together with its successors in
trust thereunder as provided in the Agreement referred to below, the "Trustee") under the Amended and Restated Pooling and Servicing Agreement dated as of April 28,
2000, as amended (the "Agreement") among the Transferor, the Servicer and the Trustee. 

    Section 6.3
of the Agreement provides, among other things, that the Transferor and the Trustee may at any time and from time to time enter into a supplement to the Agreement
for the purpose of authorizing the issuance by the Transferor, for execution and redelivery to the Trustee for authentication, of one or more Series of Certificates. 

    Pursuant
to this Supplement, the Transferor and the Trustee shall create a new Series of Investor Certificates and shall specify the Principal Terms thereof. The Investor Certificates
shall not be subordinated to any other Series. 

 
 

ARTICLE I    
    
    CREATION OF THE SERIES 2001-1 CERTIFICATES    

 
 
       Section 1.1.  Designation.
  There is hereby created a Series of Investor Certificates to be issued pursuant to the Agreement and this Supplement to be known generally as the
"Series 2001-1 Certificates." The Series 2001-1 Certificates shall be issued in two Classes, which shall be designated generally as
the $750,000,000 Floating Rate Class A Asset Backed Certificates, Series 2001-1 (the "Class A Certificates") and the $250,000,000
Class B Asset Backed Certificates, Series 2001-1 (the "Class B Certificates"), subject to any increase in such principal amounts as a
result of the issuance of Additional Certificates pursuant to Section 4.10 of this Supplement. The Series 2001-1 Certificates shall be a Principal Sharing Series and shall be
included in Group I for purposes of sharing Excess Finance Charge Collections. The Series 2001-1 Certificates shall be entitled to share Excess Transferor Finance Charge Collections
and Shared Transferor Principal Collections. 

 
 

       Section 1.2.  Delivery and Payment for the Series 2001-1 Certificates.
  The Transferor shall execute and deliver the Series 2001-1 Certificates to the Trustee for authentication in accordance with Section 6.1 of the Agreement.
The Trustee shall deliver the Series 2001-1 Certificates to or upon the order of the Transferor when authenticated in accordance with Section 6.2 of the Agreement. 

 
 

      Section 1.3  Form of Delivery of Series 2001-1 Certificates.
  (a) The Class A Certificates shall be delivered as Book-Entry Certificates as provided in Sections 6.1, 6.2 and 6.10 of the Agreement and shall be
substantially in the form of Exhibit A-1 hereto. The Class B Certificates shall be delivered as Definitive Certificates as
provided in Sections 6.1, 6.2 and 6.10 of the Agreement and shall be substantially in the form of Exhibit A-2 hereto. 

    (b) The
Depositary for the Class A Certificates shall be the Depositary Trust Company, and the Class A Certificates initially shall be registered in the
name of Cede & Co., its nominee. 

 
 

ARTICLE II    
    
    DEFINITIONS    

 
 
       Section 2.1.  Definitions.
  In the event that any term or provision contained herein shall conflict with or be inconsistent with any provision contained in the Agreement, the terms and provisions of this
Supplement shall govern with respect to the Series 2001-1 Certificates. All Article, Section or subsection references herein shall mean Article, Section or subsections of this
Supplement except as 

  
otherwise provided herein. All capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to them in the Agreement. Each capitalized term defined herein shall
relate only to the Series 2001-1 Certificates and to no other Series of Certificates issued by the Trust. 

    "Accumulation
Date" shall mean the first day of the July 2003 Monthly Period. 

    "Accumulation
Period" shall mean, with respect to the Class A Certificates, the period commencing on the Accumulation Date, or such later date as
may be specified by the Servicer in accordance with Section 4.12, and continuing to and including the earliest of (x) the Early Amortization Commencement Date, (y) the end of the
June 2004 Monthly Period and (z) the date of termination of the Trust pursuant to Section 12.1 of the Agreement. 

    "Accumulation
Period Length" shall have the meaning specified in Section 4.12. 

    "Additional
Certificate Date" shall have the meaning specified in subsection 4.10(a). 

    "Additional
Certificates" shall have the meaning specified in subsection 4.10(a). 

    "Additional
Interest" shall mean, at any time of determination, the sum of Class A Additional Interest and Class B Additional Interest, if
any. 

    "Adjusted
Invested Amount" shall mean for any Business Day an amount equal to the sum of the Class A Adjusted Invested Amount plus the
Class B Invested Amount. 

    "Amortization
Period Commencement Date" shall mean the earlier of the Accumulation Date, or such later date as may be specified by the Servicer in
accordance with Section 4.12, and the Early Amortization Commencement Date. 

    "Available
Reserve Account Amount" shall mean, with respect to any Transfer Date, the lesser of (a) the amount on deposit in the Reserve Account as
of such date (before giving effect to any deposit or withdrawals made or to be made pursuant to subsections 4.6(a)(ix) and 4.13(d) to the Reserve Account on such date) and (b) the
Required Reserve Account Amount. 

    "Available
Series 2001-1 Finance Charge Collections" shall have the meaning specified in subsection 4.6(a). 

    "Available
Shared Principal Collections" shall mean, for any Monthly Period, Shared Principal Collections available to be allocated to the Certificates
from each other Series that has a controlled or scheduled amortization or accumulation period beginning after the July 2004 Distribution Date. 

    "Base
Rate" shall mean, with respect to any Monthly Period, the sum of (i) the annualized percentage equivalent of the weighted average of the
Class A Certificate Rate and the Class B Certificate Rate, both for the related Interest Accrual Period (weighted by the Class A Invested Amount and the Class B Invested
Amount, both as of the last day of the Monthly Period, or in the case of the first Monthly Period, the Closing Date) and (ii) 2%. 

    "Business
Day" shall mean, for the purpose of determining LIBOR, any Business Day as defined in the Agreement or any day on which banking institutions in
London, England, trading in Dollar deposits in the London interbank market, are authorized or obligated by law or executive order to be closed and for all other purposes shall have the meaning
provided in the Agreement. 

    "Carryover
Class A Interest" shall mean, with respect to any Distribution Date, (a) any Class A Interest due but not paid on any
previous Distribution Date plus (b) any Class A Additional Interest. 

    "Carryover
Class B Interest" shall mean, with respect to any Distribution Date, (a) any Class B Interest due but not paid on any
previous Distribution Date plus (b) any Class B Additional Interest. 

    "Carryover
Interest" shall mean, with respect to any Distribution Date, the sum of Carryover Class A Interest and Carryover Class B
Interest. 

    "Class A
Additional Interest" shall have the meaning specified in subsection 4.3. 

  
    "Class A Adjusted Invested Amount" shall mean for any Business Day an amount equal to the Class A Invested Amount  minus the aggregate principal amount on deposit
in the Principal Funding Account on such Business Day. 

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

    "Class A
Certificateholders' Interest" shall mean, with respect to any date, the portion of the Series 2001-1
Certificateholders' Interest evidenced by the Class A Certificates. 

    "Class A
Certificate Rate" shall mean, with respect to any Interest Accrual Period, a per annum rate equal to one-month LIBOR plus
0.11%. 

    "Class A
Certificates" shall mean any of the certificates executed by the Transferor and authenticated by or on behalf of the Trustee,
substantially in the form of Exhibit A-1 hereto. 

    "Class A
Expected Final Payment Date" shall mean the July 2004 Distribution Date. 

    "Class A
Floating Allocation Percentage" shall mean, with respect to any Monthly Period, the percentage equivalent of a fraction, the numerator of
which is the Class A Adjusted Invested Amount as of (x) during the Revolving Period or the Accumulation Period with respect to Collections of Finance Charge Receivables and at all times
with respect to Defaulted Amounts, the close of business on the last day of the immediately preceding Monthly Period (or, in the case of the first Monthly Period, the Closing Date) and
(y) during an Early Amortization Period with respect to Collections of Finance Charge Receivables, the close of business on the last day of the Monthly Period immediately preceding the
occurrence of an Early Amortization Event and the denominator of which is the greater of (a) the total amount of Principal Receivables in the Trust plus the amounts on deposit in the Special
Funding Account as of the close of business on such date and (b) when used with respect to Collections of Finance Charge Receivables, the sum of the numerators with respect to all Classes of
all Series and Participations then outstanding used to calculate the applicable allocation percentage; provided, that such calculations are subject to
adjustment upon the direction of the Transferor, in accordance with subsection 2.9(g) of the Agreement, to give effect to additions of Additional Accounts. 

    "Class A
Initial Invested Amount" shall mean the aggregate initial principal amount of the Class A Certificates, which is $750,000,000. 

    "Class A
Interest" shall mean the interest distributable in respect of the Class A Certificates as calculated in accordance with
Section 4.3. 

    "Class A
Interest Shortfall" shall have the meaning specified in Section 4.3. 

    "Class A
Invested Amount" shall mean, when used with respect to any date of determination, an amount equal to (a) the Class A Initial
Invested Amount, minus (b) the aggregate amount of principal payments made to Class A Certificateholders prior to such date,  minus (c) the
aggregate amount of Class A Investor Charge-Offs for all prior Distribution Dates,  plus (d) the sum of the aggregate amount allocated with respect to Class A Investor Charge-Offs and
available on all prior
Distribution Dates pursuant to subsection 4.6(a)(vi) and, with respect to such subsection, pursuant to Sections 4.7 and 4.9, for the purpose of reinstating amounts reduced pursuant to the
foregoing clause (c), plus (e) the amount
of any increase in the Class A Invested Amount resulting from the issuance of Additional Certificates under Section 4.10 and minus
(f) the amount of any reduction in the Class A Invested Amount as a result of the purchase by the Transferor and subsequent cancellation of Class A Certificates pursuant to
Section 7.4. 

    "Class A
Investor Charge-Offs" shall have the meaning specified in subsection 4.8(b). 

 
    "Class A Investor Defaulted Amount" shall mean, with respect to each Distribution Date, an amount equal to the product of (a) the
Class A Floating Allocation Percentage applicable on such date and (b) the Defaulted Amount for the related Monthly Period. 

    "Class A
Percentage" shall mean, as of any date of determination, a fraction the numerator of which is the Class A Adjusted Invested Amount
and the denominator of which is the sum of the Class A Adjusted Invested Amount and the Class B Invested Amount. 

    "Class A
Principal" shall mean the principal distributable in respect of the Class A Certificates as calculated in accordance with
subsection 4.4(a). 

    "Class A
Required Amount" shall mean, with respect to each Distribution Date, the amount determined by the Servicer equal to the excess, if any, of
(x) the sum of (i) Class A Interest for the related Monthly Period, (ii) any Carryover Class A Interest previously due but not paid to the Class A
Certificateholders on a prior Distribution Date, (iii) the Class A Servicing Fee for the related Monthly Period, (iv) the Class A Investor Defaulted Amount for the related
Monthly Period and (v) the Class A Percentage of the Series 2001-1 Allocation Percentage of the adjustment payments required to be made by the Transferor pursuant to
Section 3.9 of the Agreement but not made on or prior to the related Distribution Date, over (y) the sum of the Available Series 2001-1 Finance Charge Collections
applied with respect to such amounts pursuant to subsection 4.6(a) plus any Excess Finance Charge Collections from other Series in Group I and Excess
Transferor Finance Charge Collections allocable to Series 2001-1 and applied with respect to such amounts pursuant to Section 4.7. 

    "Class A
Servicing Fee" shall have the meaning specified in Section 3.1. 

    "Class B
Additional Interest" shall mean the amount, if any, distributable in respect of the Class B Certificates as calculated pursuant to
a supplemental agreement entered into in accordance with Section 7.3. 

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

    "Class B
Certificateholders' Interest" shall mean, with respect to any date, the portion of the Series 2001-1
Certificateholders' Interest evidenced by the Class B Certificates. 

    "Class B
Certificate Rate" shall mean, with respect to any Interest Accrual Period, a per annum rate equal to 0%;  provided, however such interest rate may be
increased pursuant to the terms of a supplemental agreement
entered into in accordance with Section 7.3. 

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

    "Class B
Floating Allocation Percentage" shall mean, with respect to any Monthly Period, the percentage equivalent of a fraction, the numerator of
which is the Class B Invested Amount as of (x) during the Revolving Period or the Accumulation Period with respect to Collections of Finance Charge Receivables and at all times with
respect to Defaulted Amounts, the close of business on the last day of the immediately preceding Monthly Period (or, in the case of the first Monthly Period, the Closing Date) and (y) during an
Early Amortization Period with respect to Collections of Finance Charge Receivables, the close of business on the last day of the Monthly Period immediately preceding the occurrence of an Early
Amortization Event and the denominator of which is the greater of (a) the total amount of Principal Receivables plus the amount on deposit in the Special Funding Account as of the close of
business on such date and (b) when used with respect to Collections of Finance Charge Receivables, the sum of the numerators with respect to all Classes of all Series and Participations then
outstanding used to calculate the applicable allocation percentage; provided, that such calculations are subject to adjustment upon the direction of the
Transferor, in accordance with subsection 2.9(g) of the Agreement, to give effect to additions of Additional Accounts. 

  
    "Class B Initial Invested Amount" shall mean the aggregate initial principal amount of the Class B Certificates, which is $250,000,000. 

    "Class B
Interest" shall mean the interest, if any, distributable in respect of the Class B Certificates as may be calculated pursuant to a
supplemental agreement entered into in accordance with Section 7.3. 

    "Class B
Invested Amount" shall mean, when used with respect to any date of determination, an amount equal to (a) the Class B Initial
Invested Amount, minus (b) the aggregate amount of principal payments made to Class B Certificateholders prior to such date,  minus (c) the
aggregate amount of Class B Investor Charge-Offs for all prior Distribution Dates,
minus (d) the aggregate amount of Reallocated Class B Principal Collections for which the Class B Invested Amount has been reduced
for all prior Distribution Dates, plus (e) the sum of the aggregate amount allocated and available on all
prior Distribution Dates pursuant to subsection 4.6(a)(vii) and, with respect to such subsection, pursuant to Section 4.7, for the purpose of reinstating amounts reduced pursuant to the
foregoing clauses (c) and (d) plus (f) the amount of any increase in the Class B Invested Amount resulting from the issuance
of Additional Certificates under Section 4.10. 

    "Class B
Investor Charge-Offs" shall have the meaning specified in subsection 4.8(a). 

    "Class B
Investor Defaulted Amount" shall mean, with respect to each Distribution Date, an amount equal to the product of (a) the
Class B Floating Allocation Percentage applicable on such date and (b) the Defaulted Amount for the related Monthly Period. 

    "Class B
Percentage" shall mean, as of any date of determination, a fraction the numerator of which is the Class B Invested Amount and the
denominator of which is the sum of the Class A Adjusted Invested Amount and the Class B Invested Amount. 

    "Class B
Principal" shall mean the principal distributable in respect of the Class B Certificates as calculated in accordance with
subsection 4.4(b). 

    "Class B
Principal Allocation Percentage" shall mean, with respect to any Monthly Period, the percentage equivalent of a fraction, the numerator of
which is (a) during the Revolving Period, the Class B Invested Amount as of the last day of the immediately preceding Monthly Period (or, in the case of the first Monthly Period, the
Closing Date), (b) during the Accumulation Period, the Class B Invested Amount as of the last day of the Revolving Period, and (c) during the Early Amortization Period, the
Class B Invested Amount as of the last day of the Revolving Period, or, if less, the last numerator used to calculate the Class B Principal Allocation Percentage in the Accumulation
Period, if any, and the denominator of which is the greater of (a)(x) if only one Series is outstanding (i) during the Revolving Period, the sum of the total amount of Principal
Receivables in the Trust and the principal amount on deposit in the Special Funding Account as of the last day of the immediately preceding Monthly Period and (ii) during the Accumulation
Period and the Early Amortization Period the sum of the total amount of Principal Receivables in the Trust and the principal amount on deposit in the Special Funding Account as of the last day of the
Revolving Period and (y), if more than one Series is outstanding, the sum of the total amount of Principal Receivables in the Trust and the principal amount on deposit in the Special Funding Account
as of the last day of the immediately preceding Monthly Period (or, in the case of the first Monthly Period, the Closing Date) and (b) the sum of the numerators used to calculate the principal
allocation percentages for all Series and Participations outstanding as of the date as to which such determination is being made; provided, that such
calculations are subject to adjustment upon the direction of the Transferor, in accordance with subsection 2.9(g) of the Agreement, to give effect to additions of Additional Accounts. 

    "Class B
Servicing Fee" shall have the meaning specified in Section 3.1. 

    "Closing
Date" shall mean August 22, 2001. 

    "Controlled
Accumulation Amount" shall mean $62,500,000, provided that such amount may be increased
pursuant to Section 4.10 as a result of the issuance of Additional Certificates; provided, 

   further, that, if the Accumulation Period is modified pursuant to Section 4.12, (i) the Controlled Accumulation Amount for each Distribution Date with
respect to
the Accumulation Period shall mean the amount determined in accordance with Section 4.12 on the date on which the Accumulation Period has most recently been modified and (ii) the sum of
the Controlled Accumulation Amounts for all Distribution Dates with respect to the modified Accumulation Period shall not be less than the Class A Invested Amount. 

    "Controlled
Deposit Amount" shall mean, with respect to any Distribution Date with respect to the Accumulation Period, an amount equal to the Controlled
Accumulation Amount plus the Deficit Controlled Accumulation Amount for the preceding Distribution Date, if any. 

    "Covered
Amount" shall mean, with respect to any Interest Accrual Period prior to the payment in full of the Class A Invested Amount, the product
of (a) the Class A Certificate Rate in effect with respect to the related Interest Accrual Period, (b) the Principal Funding Account Balance as of the first day of such Interest
Accrual Period, and (c) a fraction the numerator of which is the actual number of days in the related Interest Accrual Period and the denominator of which is 360. 

    "Deficit
Controlled Accumulation Amount" shall mean, on each Distribution Date with respect to the Accumulation Period, the excess, if any, of the
Controlled Deposit Amount for such Distribution Date over the amount distributed from the Collection Account as Class A Principal for such Distribution Date. 

    "Distribution
Date" shall mean September 25, 2001, and the 25th day of each month thereafter, or if such day is not a Business Day, the next
succeeding Business Day. 

    "Early
Amortization Commencement Date" shall mean earlier of the date on which an Early Amortization Event is deemed to occur or the date on which a
Series 2001-1 Early Amortization Event is deemed to occur. 

    "Early
Amortization Event" shall mean any of the events specified in Section 9.1 of the Agreement. 

    "Early
Amortization Period" shall mean the period beginning on the earlier of (a) the day on which a Series 2001-1 Early
Amortization Event or an Early Amortization Event occurs or is deemed to have occurred and (b) the Class A Expected Final Payment Date if the Class A Invested Amount has not been
paid in full on such date, and ending on the earlier of (i) the date on which the Class A Invested Amount and the Class B Invested Amount have been paid in full and
(ii) the Series 2001-1 Termination Date. 

    "Enhancement"
shall mean, with respect to the Class A Certificates, the subordination of the Class B Invested Amount. 

    "Excess
Finance Charge Collections" shall mean, with respect to any Distribution Date, as the context requires, either (x) the amount described in
subsection 4.6(a)(x) allocated to the Series 2001-1 Certificates but available to cover shortfalls in amounts paid from Collections of Finance Charge Receivables for other
Series, if any, or (y) the aggregate amount of Collections of Finance Charge Receivables allocable to other Series in excess of the amounts necessary to make required payments with respect to
such Series, if any, and available to cover shortfalls with respect to the Series 2001-1 Certificates. 

    "Excess
Spread Percentage" shall mean, for any Distribution Date, the amount, if any, by which the Portfolio Yield for the related Monthly Period exceeds
the Base Rate for the related Monthly Period. 

  

    "Excess
Transferor Finance Charge Collections" shall have the meaning specified in subsection 4.2(d). 

    "Floating
Allocation Percentage" shall mean, with respect to any date of determination, the sum of the Class A Floating Allocation Percentage and
Class B Floating Allocation Percentage on such date. 

    "Initial
Invested Amount" shall mean the sum of the Class A Initial Invested Amount and the Class B Initial Invested Amount. 

    "Interest
Accrual Period" shall mean, with respect to a Distribution Date, the period from and including the preceding Distribution Date to and excluding
such Distribution Date; provided, however, that the initial Interest Accrual Period shall be the period
from the Closing Date to and excluding the first Distribution Date. 

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

    "Investor
Certificateholder" shall mean the Holder of record of an Investor Certificate. 

    "Investor
Certificates" shall mean the Class A Certificates and the Class B Certificates;  provided, however, that the Class B Certificates shall
not be considered to be Investor
Certificates for purposes of any Tax Opinion or other opinion relating to tax matters hereunder or under the Agreement for so long as they are held by the Transferor. 

    "Investor
Charge-Offs" shall mean the sum of Class A Investor Charge-Offs and Class B Investor
Charge-Offs. 

    "Investor
Defaulted Amount" shall mean, with respect to any Monthly Period, an amount equal to the product of the Defaulted Amount and the Floating
Allocation Percentage as of the related Distribution Date. 

    "Investor
Percentage" shall mean, with respect to Principal Receivables, the Principal Allocation Percentage and, with respect to Finance Charge
Receivables and Receivables in Defaulted Accounts, the Floating Allocation Percentage. 

    "LIBOR"
shall mean, for any Interest Accrual Period, the London interbank offered rate for one-month Dollar deposits determined by the Trustee
for each Interest Accrual Period in accordance with the provisions of Section 4.15 of this Supplement. 

    "LIBOR
Determination Date" shall mean (i) August 20, 2001 for the period from and including the Closing Date to and excluding
September 25, 2001 and (ii) the second Business Day prior to the commencement of the second and each subsequent Interest Accrual Period. 

    "Monthly
Period" shall mean with respect to each Distribution Date, the immediately preceding fiscal month of the Transferor,  provided, that the first Monthly Period shall begin on the Closing Date and end
on the last day of the fiscal month of the Transferor during which the
Closing Date occurs. 

    "Monthly
Servicing Fee" shall have the meaning specified in Section 3.1. 

    "Percentage
Allocation" shall have the meaning specified in subsection 4.2(b)(ii)(y). 

    "Portfolio
Yield" shall mean for the Series 2001-1 Certificates, with respect to any Monthly Period, the annualized percentage
equivalent of a fraction, the numerator of which is an amount equal to the sum of the Floating Allocation Percentage of collections of Finance Charge Receivables for that Monthly Period,  minus if the
Required Reserve Account Amount is greater than zero, the excess of the Principal Funding Investment Shortfall over the amount applied from
the Reserve Account in accordance with Section 4.13(d), minus the Investor Defaulted Amount for that Monthly Period and the
Series 2001-1 Allocation Percentage of any Adjustment Payments not made on or before the related Distribution Date, and the denominator of which is the Adjusted Invested Amount as
of the last day of the preceding Monthly Period, or in the case of the first Monthly Period, the Closing Date. 

  
For the first Monthly Period, the initial deposit of $1,800,000 made to the Collection Account on the Closing Date for application as Available Series 2001-1 Finance Charge
Collections will be added to the numerator described above. 

    "Principal
Allocation Percentage" shall mean, with respect to any Monthly Period, the percentage equivalent of a fraction, the numerator of which is
(a) during the Revolving Period, the Invested Amount as of the last day of the immediately preceding Monthly Period (or, in the case of the first Monthly Period, the Closing Date),
(b) during the Accumulation Period, the Invested Amount as of the last day of the Revolving Period; provided, that during the Accumulation Period
on the date of issuance of a new Series, at the option of the Transferor, upon satisfaction of the Rating Agency Condition, such amount may be reduced to an amount not less than the greater of
(x) the Adjusted Invested Amount on such date and (y) the amount which would result in a Principal Allocation Percentage which when multiplied by the amount of Collections of Principal
Receivables for the preceding Monthly Period would equal (I) the Controlled Deposit Amount for such Monthly Period plus 10% of the Controlled Accumulation Amount or, if such date is on or after
the Class A Expected Final Payment Date and the Class A Invested Amount has been paid in full, the Class B Invested Amount minus (II) the amount of any Available Shared
Principal Collections with respect to such Monthly Period, and (c) during the Early Amortization Period, the Invested Amount as of the last day of the Revolving Period or, if less, the last
numerator used to calculate the Principal Allocation Percentage in the Accumulation Period, if any, and the denominator of which is the greater of (a)(x) if only one Series is outstanding
(i) during the Revolving Period, the sum of the total amount of Principal Receivables in the Trust and the principal amount on deposit in the Special Funding Account as of the last day of the
immediately preceding Monthly Period and (ii) during the Accumulation Period and the Early Amortization Period the sum of the total amount of Principal Receivables in the Trust and the
principal amount on deposit in the Special Funding Account as of the last day of the Revolving Period and (y), if more than one Series is outstanding, the sum of the total amount of Principal
Receivables in the Trust as of the last day of the immediately preceding Monthly Period, and the principal amount on deposit in the Special Funding Account as of the last day of the immediately
preceding Monthly Period (or, in the case of the first Monthly Period, the Closing Date) and (b) the sum of the numerators used to calculate the principal allocation percentages for all Series
and Participations outstanding as of the date as to which such determination is being made; provided,  further, that such calculations are subject to
adjustment upon the direction of the Transferor, in accordance with subsection 2.9(g) of the Agreement,
to give effect to additions of Additional Accounts. 

    "Principal
Funding Account" shall have the meaning specified in subsection 4.11(a). 

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

    "Principal
Funding Investment Proceeds" shall mean, with respect to each Interest Accrual Period during the Accumulation Period, the investment earnings
on funds on deposit in the Principal Funding Account (net of investment expenses and losses) for such Interest Accrual Period. 

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

    "Principal
Shortfalls" shall mean on any Distribution Date (x) for Series 2001-1, (i) during the Accumulation Period, the
excess of the Controlled Deposit Amount over the aggregate amount applied with respect thereto for such Distribution Date, and (ii) at all other times, the Invested Amount of the class then
receiving principal payments after the application of Collections of Principal Receivables on such Distribution Date provided however, that after the
Class A Invested Amount has been paid in full, such amount shall be equal to the Class B Invested Amount or (y) for any other Series the amounts specified as such in the
Supplement for such other Series. 

  
    "Rating Agency" shall mean each of Standard & Poor's and Moody's. 

    "Reallocated
Class B Principal Collections" shall have the meaning specified in Section 4.9. 

    "Reassignment
Amount" shall mean, with respect to any Distribution Date, after giving effect to any deposits and distributions otherwise to be made on
such Distribution Date, the sum of (i) the sum of the Class A Adjusted Invested Amount and the Class B Invested Amount on such Distribution Date  plus (ii) the sum of the Class A
Interest and Class B Interest, if any, for such Distribution Date and the Carryover Interest, if
any, for such Distribution Date. 

    "Record
Date" shall mean, with respect to any Distribution Date, the last Business Day of the calendar month preceding the month in which such
Distribution Date occurs. 

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

    "Required
Amount" shall have the meaning specified in Section 4.7. 

    "Required
Reserve Account Amount" shall mean, with respect to any Distribution Date on or after the Reserve Account Funding Date, an amount, if any,
specified by the Transferor. 

    "Required
Retained Transferor's Percentage" shall mean 2%; provided,  however, that such percentage may be adjusted from time to time upon written notice from the
Transferor to the Trustee if each Rating Agency initially
contracted to rate the Class A Certificates shall have been notified of such amendment and shall have provided notice to the Trustee or the Servicer that such action would not
result in a reduction or withdrawal of its rating of the Class A Certificates and such action shall not, as evidenced by a Tax Opinion, cause the Trust to be characterized for Federal income
tax purposes as an association or publicly traded partnership taxable as a corporation or otherwise have any material adverse effect on the Federal income taxation of any outstanding Series of
Certificates or any Certificate Owner. 

    "Reserve
Account" shall have the meaning specified in subsection 4.13(a). 

    "Reserve
Account Funding Date" shall mean the date specified by the Transferor for the commencement of the funding of the Reserve Account. 

    "Reserve
Account Surplus" shall mean, 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" shall have the meaning specified in subsection 4.13(c). 

    "Revolving
Period" shall mean the period from and including the Closing Date to, but not including, the Amortization Period Commencement Date. 

    "Scheduled
Series 2001-1 Termination Date" shall mean the July 2008 Distribution Date. 

    "Series
Accounts" shall mean the Principal Funding Account and the Reserve Account. 

    "Series
Invested Amount" shall mean, for Series 2001-1, as of any date of determination, an amount equal to the sum of (a) the
Class A Adjusted Invested Amount as of such date and (b) the Class B Invested Amount as of such date. 

    "Series 2001-1"
shall mean the Series of the Target Credit Card Master Trust represented by the Series 2001-1
Certificates. 

    "Series 2001-1
Allocation Percentage" shall mean, on any date of determination, the percentage equivalent of a fraction the numerator
of which is the sum of the Class A Adjusted Invested Amount
and the Class B Invested Amount and the denominator of which is the sum of the invested amounts (or adjusted invested amounts, as applicable) of all then outstanding Series. 

  
    "Series 2001-1 Certificateholder" shall mean the holder of record of any Series 2001-1 Investor Certificate. 

    "Series 2001-1
Certificateholders' Interest" shall have the meaning specified in Section 4.1. 

    "Series 2001-1
Certificates" shall have the meaning specified in Section 1.1. 

    "Series 2001-1
Early Amortization Event" shall have the meaning specified in Section 6.1. 

    "Series 2001-1
Termination Date" shall mean the earlier to occur of (i) the day after the Distribution Date on which the
Series 2001-1 Certificates are paid in full, or (ii) the Scheduled Series 2001-1 Termination Date. 

    "Servicing
Base Amount" shall have the meaning specified in Section 3.1. 

    "Servicing
Fee Rate" shall mean 2.00% per annum. 

    "Shared
Principal Collections" shall mean, as the context requires, either (a) the amount allocated to the Series 2001-1
Certificates which, in accordance with subsections 4.6(a)(iii), (iv), (v), (vi) and (vii), 4.6(b) and 4.6(c)(iii), may be applied in accordance with Section 4.4 of the Agreement or
(b) the amounts allocated to the investor certificates of other Series which the applicable Supplements for such Series specify are to be treated as "Shared Principal Collections" plus amounts
specified in any Participation Supplement with respect to any participation to be treated as Shared Principal Collections which may be applied to cover Principal Shortfalls with respect to the
Series 2001-1 Certificates. 

    "Special
Payment Date" shall mean each Distribution Date following the Monthly Period in which an Early Amortization Event occurs with respect to an Early
Amortization Period and each Distribution Date following the Class A Expected Final Payment Date. 

    "Specified
Investor Default Amount" shall mean, for any Distribution Date, the sum of (a) the product of (x) 1.5 and (y) the average
of the Investor Default Amounts for the three preceding Monthly Periods, and (b) the amount of unreimbursed Class B Investor Charge-Offs for the preceding Monthly Period. 

    "Shared
Transferor Principal Collections" shall have the meaning specified in subsection 4.2(d). 

    "Telerate
Page 3750" shall mean the display designated as page "3750" by Telerate, Inc. (or such other page as may replace Telerate Page 3750 on
that service for the purpose of displaying London interbank offered rates of major banks). 

    "Termination
Payment Date" shall mean the earlier of the first Distribution Date following (i) to the extent applicable, the liquidation or sale of
the Receivables as a result of an Insolvency Event and (ii) the occurrence of the Scheduled Series 2001-1 Termination Date. 

    "Transferor
Retained Certificates" shall mean investor certificates of any Series, including the Class B Certificates, which the Transferor
retains, but only to the extent that and for so long as the Transferor is the Holder of such Certificates. 

    "Transferor
Retained Class" shall mean the Class B Certificates. 

 

 
 

ARTICLE III    
    
    SERVICER    

 
 
       Section 3.1.  Servicing Compensation.
  The share of the Servicing Fee allocable to the Series 2001-1 Certificateholders with respect to any Distribution Date (the "Monthly Servicing
Fee") shall be equal to one-twelfth of the product of (a) the Servicing Fee Rate and (b) (i) the sum of the Class A Adjusted Invested Amount and the
Class B Invested Amount as of the last day of the Monthly Period second preceding such Distribution Date,  minus (ii) the product of the amount, if any, on deposit in the Special Funding
Account as of the last day of the Monthly Period second preceding
such Distribution Date and the Floating Allocation Percentage with respect to such Monthly Period (the amount calculated pursuant to this clause (b) is referred to as the
"Servicing Base Amount"); provided, however, that with respect to the first
Distribution Date, the Monthly Servicing Fee shall be $654,762. The share of the Monthly Servicing Fee allocable to the Class A Certificateholders with respect to any Distribution Date (the
"Class A Servicing Fee") shall be equal to the product of (a) the Class A Percentage and (b) the Monthly Servicing Fee;  provided, however, that with respect to the first Distribution Date the Class A Servicing Fee
shall be $491,072. The share of the Monthly Servicing Fee allocable to the Class B Certificateholders with respect to any Distribution Date (the "Class B Servicing
Fee") shall be equal to the product of (a) the Class B Percentage and (b) the Monthly Servicing Fee; provided,  however, that with
respect to the first Distribution Date, the Class B Servicing Fee shall be $163,690. The remainder of the Servicing Fee shall
be paid from amounts allocable to the Holder of the Transferor Certificate, holders of Participations or the Certificateholders of other Series (as provided in the related Supplements) and in no event
shall the Trust, the Trustee or the Series 2001-1 Certificateholders be liable for the share of the Servicing Fee to be paid from amounts allocable to the Holder of the Transferor
Certificate, holders of a Participation or the Certificateholders of any other Series. The Monthly Servicing Fee shall be payable to the Servicer solely to the extent amounts are available for
distribution in respect thereof pursuant to Section 4.6(a)(ii). 

 
 

ARTICLE IV    
    
    RIGHTS OF CERTIFICATEHOLDERS AND
  ALLOCATION AND APPLICATION OF COLLECTIONS    

 
 
      Section 4.1.  Rights of Certificateholders.
  The Series 2001-1 Certificates shall represent undivided interests in the Trust, consisting of the right to receive, to the extent necessary to make the required
payments with respect to such Series 2001-1 Certificates at the times and in the amounts specified in this Agreement, (a) the Floating Allocation Percentage and the Principal
Allocation Percentage (as applicable from time to time) of Collections, (b) funds distributable to the Series 2001-1 Certificates pursuant to Section 4.2 of the
Agreement on deposit in the Special Funding Account, (c) funds on deposit in the Principal Funding Account and (d) funds on deposit in the Reserve Account (for such Series, the
"Series 2001-1 Certificateholders' Interest"). The Class B Certificates shall be subordinated to the Class A Certificates to the extent
provided in this Article IV. The Class B Certificates will not have the right to receive payments of principal until the Class A Invested Amount has been paid in full, except as
provided in Section 7.3. 

 
 

       Section 4.2.  Collections and Allocation; Payments on Transferor Certificate.
  

    (a)
Collections. The Servicer will apply or will instruct the Trustee to apply all funds on deposit in the Collection Account, the Special Funding
Account, the Principal Funding Account and the Reserve Account allocable to the Series 2001-1 Certificates as described in this Article IV and Article IV of the
Agreement. In addition, on the Closing Date, the Transferor shall make a deposit to the Collection Account in the amount of $1,800,000, to be allocated to the Series 2001-1
Certificates. 

  

    (b)
Allocations. The Servicer will apply, or will instruct the Trustee to apply, all collections and other funds that are allocated to the Investor
Certificates as follows: 

    (i)  Daily
Allocations During the Revolving Period. During the Revolving Period, the Servicer shall, prior to the close of business on any
Date of Processing, allocate the following amounts as set forth below: 

    (x) Allocate
to the Investor Certificateholders and deposit in the Collection Account in accordance with Section 4.3(a) of the Agreement an amount equal to the
product of (A) the Floating Allocation Percentage and (B) the aggregate amount of Collections of Finance Charge Receivables on such Date of Processing,  provided, however, that, with respect to each Monthly Period, such amount shall only be deposited until
such time as the amount of Collections of Finance Charge Receivables allocable to Series 2001-1 deposited in the Collection Account equals the amount of Class A Interest,
Class B Interest, if any, Carryover Interest, if any, and, at any time that Retailers National Bank is not the Servicer, the Servicing Fee, in each case due on the Distribution Date in the next
Monthly Period, and, if on the Distribution Date in the preceding Monthly Period the Excess Spread Percentage was less than 4% or if there were unreimbursed Class B Investor
Charge-Offs or unreimbursed Reallocated Class B Principal Collections, the Specified Investor Default Amount determined on the Distribution Date in the preceding Monthly Period. 

    (y) Allocate
to the Investor Certificateholders an amount equal to the product of (A) the Principal Allocation Percentage on such Date of Processing and
(B) the aggregate amount of Collections of Principal Receivables on such Date of Processing and deposit in the Collection Account the portion of such amount equal to the product of
(x) the Class B Principal Allocation Percentage on that Date of Processing and (y) the total amount of Collections of Principal Receivables on that Date of Processing to the
extent that (I) the sum of the Class A Monthly Interest, the Carryover Class A Interest, the Class A Servicing Fee, if RNB is not the Servicer, and the Class A
Percentage of the Specified Investor Default Amount determined on the Distribution Date in the preceding Monthly Period if on the Distribution Date in the preceding Monthly Period the Excess Spread
Percentage was less than 4% or if there were unreimbursed Class B Investor Charge-Offs or unreimbursed Reallocated Class B Principal Collections, is greater than
(II) the amount of Collections of Finance Charge Receivables deposited in the Collection Account on that Date of Processing and on each preceding Date of Processing in that Monthly Period
pursuant to subsection 4.2(b)(i)(x). 

These
Collections of Principal Receivables shall only be retained or deposited in the Collection Account pursuant to this subsection 4.2(b)(i)(y) to the extent that the sum of the Collections of
Principal Receivables and the Collections of Finance Charge Receivables retained in the Collection Account pursuant to this subsection 4.2(b)(i) do not exceed the sum of the Class A
Monthly Interest, the Carryover Class A Interest, the Class A Servicing Fee, if RNB is not the Servicer, and the Class A Percentage of the Specified Investor Default Amount
determined on the Distribution Date in the
preceding Monthly Period if the conditions requiring that deposit exist. The excess of the amount of Collections of Principal Receivables on deposit in the Collection Account over the amount required
to be retained in the Collection Account and the remainder of the Principal Allocation Percentage of the amount of Collections of Principal Receivables on that Date of Processing shall be paid to the
Holder of the Transferor Certificate; provided, however, that the amount to be paid to the Holder of the
Transferor Certificate pursuant to this Section 4.2(b)(i)(y) on any Date of Processing shall be first, if any other Principal Sharing Series is outstanding and in its Amortization Period,
deposited in the Collection Account for application, to the extent necessary, as Shared Principal Collections on the related Distribution Date and second shall be paid to such Holder only if on such
Date of Processing the Transferor Amount (excluding the interest represented by the Supplemental Certificate) is greater than the Required 

  
Retained Transferor Amount and otherwise shall be deposited in the Special Funding Account; provided,  further, that such amounts will be paid to the Holder
of the Transferor Certificate subject to the obligation of the Transferor to make an amount equal
to the Reallocated Class B Principal Collections for each Monthly Period available on the related Distribution Date for application in accordance with Section 4.9. 

    (ii) Daily
Allocations During the Accumulation Period. During the Accumulation Period, the Servicer shall, prior to the close of business
on any Date of Processing, allocate the following amounts as set forth below: 

    (x) Allocate
to the Investor Certificateholders and deposit in the Collection Account in accordance with Section 4.3(a) of the Agreement an amount equal to the
product of (A) the Floating Allocation Percentage on such Date of Processing and (B) the aggregate amount of Collections of Finance Charge Receivables on such Date of Processing,  provided,
however, that, with respect to each Monthly Period, such amount shall only be deposited until
such time as the amount of Collections of Finance Charge Receivables allocable to Series 2001-1 on deposit in the Collection Account equals the amount of Class A Interest,
Class B Interest, if any, Carryover Interest, if any, and, at any time that Retailers National Bank is not the Servicer, the Servicing Fee, in each case due on the Distribution Date in the next
Monthly Period, and, if on the Distribution Date in the preceding Monthly Period the Excess Spread Percentage was less than 4% or if there were unreimbursed Class B Investor
Charge-Offs or unreimbursed Reallocated Class B Principal Collections, the Specified Investor Default Amount determined on the Distribution Date in the preceding Monthly Period. 

    (y) During
each Monthly Period prior to the Monthly Period in which the Class A Invested Amount is paid in full, allocate to the Class A
Certificateholders and deposit in the Collection Account in accordance with Section 4.3(a) of the Agreement an amount equal to the product of (x) the Principal Allocation Percentage on
such Date of Processing and (y) the aggregate amount of Collections of Principal Receivables on such Date of Processing (for any such date, a "Percentage
Allocation"); provided, however, that with respect to each Monthly Period, such amount
shall only be deposited in the Collection Account until such time as the amount of Collections of Principal Receivables allocable to Series 2001-1 deposited in the Collection
Account equals the sum of (i) the Controlled Deposit Amount
for the related Distribution Date and (ii) the product of the Class B Principal Allocation Percentage on that Date of Processing and the total amount of Collections of Principal
Receivables on that Date of Processing to the extent that (A) the sum of the Class A Monthly Interest, the Carryover Class A Interest, the Class A Servicing Fee, if RNB is
not the Servicer, and the Class A Percentage of the Specified Investor Default Amount determined on the Distribution Date in the preceding Monthly Period if on the Distribution Date in the
preceding Monthly Period the Excess Spread Percentage was less than 4% or if there were unreimbursed Class B Investor Charge-Offs or unreimbursed Reallocated Class B
Principal Collections, is greater than (B) the amount of Collections of Finance Charge Receivables deposited in the Collection Account on that Date of Processing and on each preceding Date of
Processing in that Monthly Period pursuant to subsection 4.2(b)(ii)(x). 

Collections
of Principal Receivables allocable to Series 2001-1 will only be retained or deposited in the Collection Account in excess of the Controlled Deposit Amount to the extent
that the Collections of Principal Receivables and Collections of Finance Charge Receivables retained in the Collection Account pursuant to this subsection 4.2(b)(ii)(y) do not exceed the sum of the
Class A Monthly Interest, the Carryover Class A Interest, the Class A Servicing Fee, if RNB is not the servicer, and the Class A Percentage of the Specified Investor
Default Amount determined on the Distribution Date in the preceding Monthly Period if the conditions requiring that deposit exist. The excess of the amount of Collections of Principal Receivables on
deposit in the Collection Account over the amount required to be retained in the Collection Account and the remainder of the Principal Allocation Percentage of the 

  
amount of Collections of Principal Receivables on that Date of Processing shall be first, if any other Principal Sharing Series is outstanding and in its Amortization Period, deposited in the
Collection Account for application, to the extent necessary, as Shared Principal Collections on the related Distribution Date and second shall not be treated as a Percentage Allocation and shall be
paid to the Holder of the Transferor Certificate only if the Transferor Amount (excluding the interest represented by the Supplemental Certificate) on such Date of Processing is greater than the
Required Retained Transferor Amount (after giving effect to all Principal Receivables transferred to the Trust on such day) and otherwise shall be deposited in the Special Funding Account;  provided,
further, that such amounts will be paid to the Holder of the Transferor Certificate subject to
the obligation of the Transferor to make an amount equal to the Reallocated Class B Principal Collections for each Monthly Period available on the related Distribution Date for application in
accordance with Section 4.9. 

    (iii) Daily
Allocations During the Early Amortization Period. During the Early Amortization Period, the Servicer shall, prior to the close
of business on any Date of Processing, allocate the following amounts as set forth below: 

    (x) Allocate
to the Investor Certificateholders and deposit in the Collection Account in accordance with Section 4.3(a) of the Agreement an amount equal to the
product of (A) the Floating Allocation Percentage on such Date of Processing and (B) the aggregate amount of Collections of Finance Charge Receivables on such Date of Processing. 

    (y) Allocate
to the Investor Certificateholders and deposit in the Collection Account in accordance with Section 4.3(a) of the Agreement an amount equal to the
product of (A) the Principal Allocation Percentage on such Date of Processing and (B) the aggregate amount of Collections of Principal Receivables on such Date of Processing;  provided,
however, that after the date on which an amount of such Collections equal to the Invested
Amount has been deposited into the Collection Account and allocated to the Investor Certificateholders, any excess of the amount determined in accordance with this subparagraph (y) shall be
first, if any other Principal Sharing Series is outstanding and in its Amortization Period, deposited in the Collection Account for application, to the extent necessary, as Shared Principal
Collections on the related Distribution Date and second shall be paid to the Holder of the Transferor Certificate only if on such Date of Processing the Transferor Amount (excluding the interest
represented by the Supplemental Certificate) is greater than the Required Retained Transferor Amount and otherwise shall be deposited in the Special Funding Account. 

    (iv) Monthly
Allocations During the Revolving Period and Accumulation Period. During the Revolving Period and Accumulation Period, the
Servicer shall, prior to the close of business on any Transfer Date allocate to the Investor Certificateholders and deposit in the Collection Account an amount equal to the sum of (I) (A) the
lesser of (1) the sum of (a) the product of (x) the Floating Allocation Percentage with respect to the preceding Monthly Period and (y) the aggregate amount of Collections
of Finance Charge Receivables for the related Monthly Period, (b) the amount of Excess Finance Charge Collections allocated to Series 2001-1 for the related Monthly Period
and (c) the amount of Excess Transferor Finance Charge Collections allocated to Series 2001-1 for the related Monthly Period and (2) the aggregate of the amounts to be
paid on such Distribution Date pursuant to clause (y) of each of clauses (i) through (viii) of Section 4.6(a) and the amount described in Section 4.6(a)(ix), less
(B) the daily amounts deposited in the Collection Account during such Monthly Period pursuant to subsections 4.2(b)(i)(x) and 4.2(b)(ii)(x) with respect to the Revolving Period
and the Accumulation Period, respectively, (II) the excess of the amount of Reallocated Class B Principal Collections over the amount retained in the Collection Account pursuant to
subsections 4.2(b)(i)(y) and 4.2(b)(ii)(y) with respect to the Revolving Period and Accumulation Period, (III) an amount equal to the pro rata
portion of Finance Charge Shortfalls, if any, for Group I allocated to Series 2001-1 pursuant to Section 4.5 of the Agreement, not to exceed Excess Finance Charge Collections
pursuant to Section 4.6(a)(x) available on the related Distribution Date, (IV) an amount equal to the amount of Shared Principal Collections to be 

  
applied for the benefit of other Principal Sharing Series pursuant to Section 4.4 of the Agreement from amounts that were originally allocated to Series 2001-1, not to exceed
(a) during the Revolving Period, the Principal Allocation Percentage of Principal Collections for the related Monthly Period or (b) during the Accumulation Period, the Principal
Allocation Percentage of Principal Collections for the related Monthly Period less the amount thereof applied to pay Class A Principal on the related Distribution Date and (V) the amount
of Shared Transferor Principal Collections to be applied to make payments of Class A Principal and Class B Principal on the related Distribution Date. 

    (c) The
allocations to be made pursuant to this subsection 4.2 also apply to deposits into the Collection Account that are treated as Collections, including adjustment
payments made in accordance with Section 3.9 of the Agreement, payment of the reassignment price pursuant to Section 2.5(b) of the
Agreement and proceeds from the sale, disposition or liquidation of the Receivables pursuant to Section 10.2, 12.1 or 12.2 of the Agreement and Section 7.1. Such deposits to be treated
as Collections will be allocated as Finance Charge Receivables or Principal Receivables as provided in the Agreement. 

    (d) Notwithstanding
anything herein or in the Agreement, the Supplement for any other Series or any Enhancement Agreement for any Series to the contrary, all amounts
designated to be paid to the Transferor or any holder of a Transferor Certificate in such documents, other than amounts allocated to be paid to the holder of any Supplemental Certificate, instead, to
the extent that such amounts are derived from Collections of Finance Charge Receivables and other amounts applied like collections of Finance Charge Receivables, including any amounts constituting
Excess Finance Charge Collections remaining after application thereof to all Series but prior to payment thereof to the Transferor, shall be deemed to be "Excess Transferor Finance Charge Collections"
and to the extent that such amounts are derived from Collections of Principal Receivables, and to the extent of any Excess Transferor Finance Charge Collections remaining after application thereof to
each Series designated to be entitled thereto, shall be deemed to be "Shared Transferor Principal Collections." 

 
 

       Section 4.3.  Determination of Monthly Interest for the Series 2001-1 Certificates.
  The amount of monthly interest (the "Class A Interest") allocable to the Class A Certificates with respect to any Distribution Date shall be
an amount equal to the product of (i) the Class A Certificate Rate for the related Interest Accrual Period, (ii) the outstanding principal balance of the Class A
Certificates as of the close of business on the last day of the preceding Monthly Period, and (iii) a fraction the numerator of which is the actual number of days in the related Interest
Accrual Period and the denominator of which is 360, provided, however, that with respect to the first
Distribution Date after the Closing Date the Class A Interest shall be an amount equal to $2,613,750. 

  

    On
the Determination Date preceding each Distribution Date, the Servicer shall determine an amount (the "Class A Interest Shortfall") equal to the
excess, if any, of (x) the Class A Interest for the Interest Accrual Period applicable to such Distribution Date  over (y) the amount available to be paid to the Class A
Certificateholders in respect of interest on such Distribution
Date. If there is a Class A Interest Shortfall with respect to any Distribution Date, an additional amount ("Class A Additional Interest") shall be payable
as provided herein with respect to the Class A Certificates on each Distribution Date following such Distribution Date, to and including the Distribution Date on which such Class A
Interest Shortfall is paid to Class A Certificateholders, equal to the product of (i) the Class A Certificate Rate plus 2% per annum, (ii) such Class A Interest
Shortfall remaining unpaid, and (iii) a fraction the numerator of which is the actual number of days in the related Interest Accrual Period and the denominator of which is 360. Notwithstanding
anything to the contrary herein, Class A Additional Interest shall be payable or distributed to Class A Certificateholders only to the extent permitted by applicable law. 

 
 

       Section 4.4.  Determination of Principal Amounts.
  (a) The amount of principal (the "Class A Principal") distributable from the Collection Account with respect to the Class A
Certificates on each Distribution Date with respect to the Amortization Period shall be equal to an amount calculated as follows: the sum of (i) an amount equal to the product of the Principal
Allocation Percentage and the aggregate amount of Collections of Principal Receivables (subtracting from such product the amount of Reallocated Class B Principal Collections) with respect to
the preceding Monthly Period, (ii) any amount on deposit in the Special Funding Account that is distributable to the Class A Certificates pursuant to subsection 4.6(d) with respect to
the preceding Monthly Period, (iii) the amount, if any, allocated to the Class A Certificates pursuant to subsections 4.6(a)(iii), (iv), (v), (vi) and (vii) with respect to
the preceding Monthly Period, (iv) the amount of Shared Principal Collections allocated to Series 2001-1 with respect to the preceding Monthly Period pursuant to
Section 4.4 of the Agreement and (v) the amount of Shared Transferor Principal Collections allocated to Series 2001-1 with respect to the preceding Monthly Period
pursuant to subsection 4.5(b); provided, however, that (i) with respect to any Distribution Date
during the Accumulation Period, Class A Principal may not exceed the Controlled Deposit Amount for such Distribution Date and (ii) with respect to any Distribution Date, Class A
Principal may not exceed the Class A Adjusted Invested Amount. 

    (b) The
amount of principal (the "Class B Principal") distributable from the Collection Account with respect to the Class B
Certificates on each Distribution Date on and after the Distribution Date on which the Class A Invested Amount is paid in full, shall be an amount equal to the lesser of: (x) the sum of
(i) an amount equal to the product of the Principal Allocation Percentage and the aggregate amount of Collections of Principal Receivables (subtracting from such product the amount of
Reallocated Class B Principal Collections) with respect to the preceding Monthly Period, (ii) any amount on deposit in the Special Funding Account that is distributable to the
Class B Certificates pursuant to subsection 4.6(d) with respect to the preceding Monthly Period, and (iii) the amount, if any, allocated to the Class B Certificates pursuant to
subsections 4.6(a)(iv), (v) and (vii) with respect to the preceding Monthly Period, (iv) the amount of Shared Principal Collections allocated to Series 2001-1
with respect to the preceding Monthly Period pursuant to Section 4.4 of the Agreement and (v) the amount of Shared Transferor Principal Collections allocated to
Series 2001-1 with respect to the preceding Monthly Period
pursuant to subsection 4.5(b), provided, however, that with respect to the Distribution Date on which
the Class A Invested Amount is paid in full, the amounts described in clauses (i), (iv) and (v) shall be net of any amount thereof applied to the payment of Class A
Principal, and (y) the Class B Invested Amount. 

 
 

       Section 4.5.  Shared Principal Collections.
  (a) Shared Principal Collections allocated to the Series 2001-1 Certificates and to be applied pursuant to subsection 4.4(a)(iv) and subsection
4.4(b)(v) for any Distribution Date with respect to the Amortization Period shall mean an amount equal to the product of (x) Shared Principal
Collections for all Series for such date and (y) a fraction, the numerator of which is the Principal Shortfall for the Series 2001-1 Certificates for such date and the
denominator of which is the aggregate amount of Principal Shortfalls 

  
for all Series for such date. For any Distribution Date with respect to the Revolving Period, Shared Principal Collections allocated to the Series 2001-1 Certificates shall be zero. 

    (b) Shared
Transferor Principal Collections allocated to the Series 2001-1 Certificates and to be applied pursuant to subsection 4.4(a)(v) and
subsection 4.4(b)(vi) for any Distribution Date with respect to the Amortization Period shall mean an amount equal to the product of (x) the aggregate amount of Shared Transferor
Principal Collections for such date and (y) a fraction, the numerator of which is the Principal Shortfall for the Series 2001-1 Certificates for such date and the denominator
of which is the aggregate amount of Principal Shortfalls for all Series for such date. For any Distribution Date with respect to the Revolving Period, Shared Transferor Principal Collections allocated
to the Series 2001-1 Certificates shall be zero. 

 
 

      Section 4.6.  Application of Funds on Deposit in the Collection Account for the Certificates.
  (a) On each Distribution Date, the Servicer shall instruct the Trustee to withdraw, and the Trustee, acting in accordance with such instructions set forth in the Monthly
Servicer Report, shall withdraw from the Collection Account, or retain therein, as applicable, to the extent of the sum of (x) the Floating Allocation Percentage of Collections of Finance
Charge Receivables collected during the preceding Monthly Period plus (y) any investment earnings on amounts on deposit in the Principal Funding Account deposited in the Collection Account
pursuant to Section 4.11(b) and investment earnings on amounts on deposit in the Reserve Account deposited in the Collection Account pursuant to Section 4.13(b)  plus (z) the Reserve Draw
Amount deposited into the Collection Account pursuant to subsection 4.13(d) (such sum, the "Available
Series 2001-1 Finance Charge Collections"; provided that, with respect to the first Distribution Date, the amount
deposited by the Transferor into the Collection Account pursuant to Section 4.2(a) shall also constitute Available Series 2001-1 Finance Charge Collections), the following
amounts, and apply such amounts as follows and in the following priority: 

    (i)  Class A
Interest. An amount equal to the lesser of (x) the Available Series 2001-1 Finance Charge
Collections for such date and (y) the sum of Class A Interest and Carryover Class A Interest shall be paid to the Class A Certificateholders in accordance with
Section 5.1. Notwithstanding anything to the contrary herein, the portion of Carryover Class A Interest that constitutes Class A Additional Interest
shall be payable or distributable to Class A Certificateholders only to the extent permitted by applicable law. 

    (ii) Servicing
Fee. An amount equal to the lesser of (x) any Available Series 2001-1 Finance Charge Collections
remaining after giving effect to the withdrawal pursuant to subsection 4.6(a)(i) and (y) the Monthly Servicing Fee for such Monthly Period plus any unpaid Monthly Servicing Fees from
prior Monthly Periods. 

    (iii) Class A
Investor Defaulted Amount. An amount equal to the lesser of (x) any Available Series 2001-1
Finance Charge Collections remaining after giving effect to the withdrawals pursuant to subsections 4.6(a)(i) and (ii) and (y) the aggregate Class A Investor Defaulted
Amount for such Distribution Date, shall be (A) during the Revolving Period, treated as Shared Principal Collections and (B)(I) during the Accumulation Period, on and prior to the date
on which an amount equal to the Class A Invested Amount is available in the Principal Funding Account for distribution to the Class A Certificateholders, deposited in the Principal
Funding Account, and (II) during the Early Amortization Period, on and prior to the date on which the Class A Invested Amount is paid in full, deposited in the Collection Account, in
each case for payment to the Class A Certificateholders to the extent required in accordance with subsections 4.4(a)(iii) and 4.6(c). 

    (iv) Class B
Investor Defaulted Amount. An amount equal to the lesser of (x) any Available Series 2001-1
Finance Charge Collections remaining after giving effect to the withdrawals pursuant to subsections 4.6(a)(i) through (iii) and (y) the aggregate Class B Investor Defaulted
Amount for such Distribution Date, shall be (A) during the Revolving Period treated as Shared Principal Collections, (B)(I) during the Accumulation Period, on and prior to the day on
which an amount 

  
equal to the Class A Invested Amount is deposited in the Principal Funding Account, retained in the Principal Funding Account, and (II) during the Early Amortization Period, on and prior
to the date on which the Class A Invested Amount is paid in full, deposited in the Collection Account, in each case for payment to the Class A Certificateholders to the extent required
in accordance with subsections 4.4(a)(iii) and 4.6(c) and (C) on and after the date on which an amount equal to the Class A Invested Amount has been retained in the Principal
Funding Account or the Class A Invested Amount has been paid in full, distributed to the Class B Certificateholders to the extent of the Class B Invested Amount. 

    (v) Adjustment
Payment Shortfalls. An amount equal to the lesser of (x) any Available Series 2001-1 Finance
Charge Collections remaining after giving effect to the withdrawals pursuant to subsections 4.6(a)(i) through (iv) and (y) an amount equal to the Floating Allocation Percentage of
any adjustment payment which the Transferor is required but fails to make pursuant to subsection 3.9(a) of the Agreement shall be, (A) during the Revolving Period, treated as Shared Principal
Collections, (B)(I) during the Accumulation Period, on and prior to the day on which an amount equal to the Class A Invested Amount is deposited in the Principal Funding Account,
retained in the Principal Funding Account, and (II) during the Early Amortization Period, on and prior to the date on which the
Class A Invested Amount is paid in full, deposited in the Collection Account, in each case for payment to the Class A Certificateholders to the extent required in accordance with
subsections 4.4(a)(iii) and 4.6(c) and (C) on and after the date on which an amount equal to the Class A Invested Amount has been retained in the Principal Funding Account or the
Class A Invested Amount has been paid in full, distributed to the Class B Certificateholders to the extent of the Class B Invested Amount. 

    (vi) Reimbursement
of Class A Investor Charge-Offs. An amount equal to the lesser of (x) any Available
Series 2001-1 Finance Charge Collections remaining after giving effect to the withdrawals pursuant to subsections 4.6(a)(i) through (v) and (y) the unreimbursed
Class A Investor Charge-Offs, if any, will be applied to reimburse Class A Investor Charge-Offs, and shall be (A) during the Revolving Period, treated as
Shared Principal Collections and (B)(I) during the Accumulation Period, on and prior to the day on which an amount equal to the Class A Invested Amount is available in the Principal
Funding Account, retained in the Principal Funding Account, and (II) during the Early Amortization Period, on and prior to the date on which the Class A Invested Amount is paid in full,
deposited in the Collection Account, in each case for payment to the Class A Certificateholders to the extent required in accordance with subsections 4.4(a)(iii) and 4.6(c). 

    (vii) Reimbursement
of Class B Investor Charge-Offs and Reallocated Class B Principal Collections. An amount
equal to the lesser of (x) any Available Series 2001-1 Finance Charge Collections remaining after giving effect to the withdrawals pursuant to subsections
4.6(a)(i) through (vi) and (y) the unreimbursed reductions in the Class B Invested Amount as a result of Class B Investor Charge-Offs and Reallocated
Class B Principal Collections, if any, shall be (A) during the Revolving Period treated as Shared Principal Collections, (B)(I) during the Accumulation Period, on and prior to the
day on which an amount equal to the Class A Invested Amount is deposited in the Principal Funding Account, retained in the Principal Funding Account, and (II) during the Early
Amortization Period, on and prior to the date on which the Class A Invested Amount is paid in full, deposited in the Collection Account, in each case for payment to the Class A
Certificateholders to the extent required in accordance with subsections 4.4(a)(iii) and 4.6(c) and (C) on and after the date on which an amount equal to the Class A Invested
Amount has been retained in the Principal Funding Account or the Class A Invested Amount has been paid in full, distributed to the Class B Certificateholders to the extent of the
Class B Invested Amount. 

  

    (viii)  Class B
Interest. An amount equal to the lesser of (x) any Available Series 2001-1
Finance Charge Collections remaining after giving effect to the withdrawals to subsections 4.6(a)(i) through (vii) and (y) the sum of Class B Interest and Carryover
Class B Interest, if any, shall be paid to the Class B Certificateholders. Notwithstanding anything to the contrary herein, the portion of Carryover Class B Interest that
constitutes Class B Additional Interest shall be payable or distributable to Class B Certificateholders only to the extent permitted by applicable law. 

    (ix) Reserve
Account. On each Distribution Date from and after the Reserve Account Funding Date, but prior to the date of termination of
the Reserve Account as described in subsection 4.13(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) Excess
Finance Charge Collections. Any Available Series 2001-1 Finance Charge Collections after giving effect to the
withdrawals pursuant to subsection 4.6(a)(i) through (ix) shall be treated as Excess Finance Charge Collections, and the Servicer shall direct the Trustee in writing on each Distribution
Date to withdraw such amounts from the Collection Account and to first make such amounts available to pay to Certificateholders of other Series in Group I to the extent of shortfalls, if any, in
amounts payable to such certificateholders from Collections of Finance Charge Receivables allocated to such other Series in Group I, and then to pay any unpaid expenses or liabilities of the Trust,
and then treated as Excess Transferor Finance Charge Collections. 

    (b)
For each Distribution Date with respect to the Revolving Period, the sum of (x) the product of (i) the Principal Allocation Percentage and (ii) Collections of
Principal Receivables with respect to such Distribution Date, minus (y) any Reallocated Class B Principal Collections, will be treated as
Shared Principal Collections and applied, for such Distribution Date, as provided in Section 4.4 of the Agreement; provided,  however, that if the
Class B Invested Amount is reduced in accordance with Section 7.3(a), the amount specified above may be distributed
to the Class B Certificateholders in an amount not to exceed such reduction. 

    (c)
For each Distribution Date on and after the Amortization Period Commencement Date, the Trustee, acting pursuant to the Servicer's instructions, will distribute the amount of funds
on deposit in the Collection Account available for payment of principal to Series 2001-1 Certificateholders in accordance with Section 4.4 in the following priority: 

    (i)  an
amount equal to Class A Principal, subject to the proviso in Section 4.4(a), (x) with respect to the Accumulation Period, to the Principal
Funding Account for payment to the Class A Certificateholders
on the earlier of the Class A Expected Final Payment Date and the first Special Payment Date or (y) with respect to the Early Amortization Period, to the Class A
Certificateholders; 

    (ii) after
the Class A Invested Amount has been paid in full, to the Class B Certificateholders, an amount equal to Class B Principal, subject to
the proviso in Section 4.4(b); and 

    (iii) an
amount equal to the sum of (I) the excess, if any, of (A) the sum of the amounts described in subsections 4.4(a)(i) and (iii) over
(B) the Class A Principal and (II) the excess, if any, of (A) the sum of the amounts described in subsections 4.4(b)(i) and (iii) over (B) the
Class B Principal will be treated as Shared Principal Collections and applied as provided in subsection 4.4 of the Agreement. 

 

    (d)
On each Distribution Date during the Amortization Period, funds on deposit in the Special Funding Account and distributable to Series 2001-1 as provided in
Section 4.2 of the Agreement will be deposited in the Collection Account. Such amounts will be allocated in the following order of priority: 

    (i)  on
each Distribution Date until the Class A Invested Amount is paid in full to the Class A Certificateholders in an amount equal to the lesser of the
Principal Shortfall and the amount allocated with respect thereto pursuant to Section 4.2 of the Agreement; provided,  however, such amount shall not
exceed the Class A Principal after subtracting therefrom any amounts to be deposited in the Collection Account
with respect thereto pursuant to subsections 4.4(a)(i), (iii),(iv) and (v); and provided, further
that during the Accumulation Period such amount shall be deposited in the Principal Funding Account; and 

    (ii) on
each Distribution Date on and after the Distribution Date on which the Class A Invested Amount is paid in full to the Class B Certificateholders
in an amount not to exceed the Class B Invested Amount after subtracting therefrom any amounts to be deposited in the Collection Account with respect thereto pursuant to subsections 4.4(b)(i),
(iii), (iv), (v) and (vi) to be paid to the Class B Certificateholders. 

 
 

       Section 4.7.  Coverage of Required Amount for the Series 2001-1 Certificates.
  To the extent that on any Distribution Date payments are being made pursuant to any of subsections 4.6(a)(i) through (ix), respectively, and the full amount to be paid pursuant
to any such subsection receiving payments on such Distribution Date is not paid in full on such Distribution Date, the Servicer shall apply all or a portion of the Excess Finance Charge Collections
from other Series with respect to such Distribution Date allocable to the Series 2001-1 Certificates in an amount equal to the excess of the full amount to be allocated or paid
pursuant to the applicable subsection over the amount applied with respect thereto from Available Series 2001-1 Finance Charge Collections on such Distribution Date (the
"Required Amount"). Excess Finance Charge Collections allocated to the Series 2001-1 Certificates for
any Distribution Date shall mean an amount equal to the product of (x) Excess Finance Charge Collections available from all other Series in Group I for such Distribution Date and (y) a
fraction, the numerator of which is the Required Amount for such Distribution Date and the denominator of which is the aggregate amount of shortfalls in required amounts or other amounts to be paid
from Collections of Finance Charge Receivables for all Series in Group I for such Distribution Date. 

    In
addition, the Servicer shall apply all or a portion of the Excess Transferor Finance Charge Collections with respect to such Distribution Date allocable to the
Series 2001-1 Certificates in an amount equal to the unpaid Required Amount after the application of Excess Finance Charge Collections. Excess Transferor Finance Charge Collections
allocated to the Series 2001-1 Certificates for any Distribution Date shall mean an amount equal to the product of (x) Excess Transferor Finance Charge Collections available
for such Distribution Date and (y) a fraction, the numerator of which is the unpaid Required Amount after the application of Excess Finance Charge Collections for such Distribution Date and the
denominator of which is the aggregate amount of shortfalls for such Distribution Date in required amounts or other amounts to be paid from Collections of Finance Charge Receivables for all Series
which are designated pursuant to the applicable Series Supplement to be entitled to share Excess Transferor Finance Charge Collections. 

 
 

       Section 4.8.  Investor Charge-Offs.
  (a) If, on any Determination Date, the aggregate Investor Defaulted Amount and the Series 2001-1 Allocation Percentage of any unpaid adjustment payments
required by Section 3.9 of the Agreement in the preceding Monthly Period exceed the Available Series 2001-1 Finance Charge Collections applied to the payment thereof pursuant
to subsections 4.6(a)(iii), (iv) and (v) plus the amount of Excess Finance Charge Collections and Excess Transferor Finance Charge Collections allocated thereto pursuant to
Section 4.7, plus the amount of Reallocated Class B Principal Collections applied with respect thereto pursuant to Section 4.9, the Class B Invested Amount will be reduced
by the amount by which the remaining aggregate Investor Defaulted Amount 

  
and Series 2001-1 Allocation Percentage of such unpaid adjustment payments exceed the amount applied with respect thereto during such preceding Monthly Period (a
"Class B Investor Charge-Off"). 

    (b)
In the event that any such reduction of the Class B Invested Amount would cause the Class B Invested Amount to be a negative number, the Class B Invested
Amount will be reduced to zero, and the Class A Invested Amount will be reduced by the amount by which the Class B Invested Amount would have been reduced below zero, but not more than
the aggregate Investor Defaulted Amount and Series 2001-1 Allocation Percentage of the unpaid adjustment payments required by Section 3.9 of the Agreement for such Monthly
Period (a "Class A Investor Charge-Off"). 

 
 

       Section 4.9.  Reallocated Class B Principal Collections for the Series 2001-1 Certificates.
  On each Distribution Date, the Servicer will apply or cause the Trustee to apply from amounts on deposit in the Collection Account an amount equal to the lesser of (i) the
Class B Invested Amount,
(ii) the product of (x) the Class B Principal Allocation Percentage and (y) the amount of Collections of Principal Receivables with respect to the related Monthly Period
and (iii) the Class A Required Amount for such Distribution Date (such amount called "Reallocated Class B Principal Collections") to the components of
the Class A Required Amount in the same priority as amounts are applied to such components from Available Series 2001-1 Finance Charge Collections pursuant to subsection
4.6(a). 

 
 

       Section 4.10.  Issuance of Additional Investor Certificates.
  (a) During the Revolving Period, the Transferor may, in its discretion and subject to the terms of subsection (b) below, request the Trustee to issue additional
Class A Certificates and Class B Certificates (each such additional certificates, the "Additional Certificates") in an amount and on the date (the
"Additional Certificate Date") determined by the Transferor. Upon issuance, the Additional Certificates will be identical in all respects (except that the principal amount
of such Additional Certificates may be different) to the Certificates currently outstanding and will be equally and ratably entitled to the benefits of this Supplement and the Agreement. As a result
of such issuance, the Class A Invested Amount and the Class B Invested Amount shall be increased pro rata and all the calculations
required pursuant to this Supplement shall, from and after the Additional Certificate Date, be computed using such increased Class A Invested Amount and Class B Invested Amount. The
Controlled Accumulation Amount shall be increased proportionally to reflect the additional principal amount of Class A Certificates and Class B Certificates represented by the Additional
Certificates. 

    (b)
Additional Certificates shall only be issued upon satisfaction of all of the following conditions: 

    (i)  on
or before the fifth Business Day immediately preceding the date on which the Additional Certificates are to be issued, the Transferor shall give notice to the
Trustee, the Servicer and the Rating Agency of such issuance and the date upon which it is to occur; 

    (ii) after
giving effect to the addition of the Additional Certificates to the Series, the total amount of Principal Receivables in the Trust shall be greater than or
equal to the Required Principal Balance; 

    (iii) on
or before the Additional Certificate Date, the Rating Agency Condition shall have been satisfied; 

    (iv) the
Transferor shall have delivered to the Trustee an Officer's Certificate dated as of the Additional Certificate Date, stating that the Transferor reasonably
believes that the issuance of such Additional Certificates will not have a material adverse effect on the Class A Certificates or Class B Certificates, however, a dilution of voting
rights does not constitute a material adverse effect for the purposes of this Section 4.10; 

    (v) as
of the date of issuance of the Additional Certificates, the amount of unreimbursed Investor Charge-Offs shall be zero; and 

    (vi) the
Transferor shall have delivered to the Trustee a Tax Opinion with respect to such issuance. 

 

 
 

      Section 4.11.  Establishment of the Principal Funding Account for the Certificates.
  (a) The Trustee, for the benefit of the holders of the Series 2001-1 Certificates, shall establish and maintain in the name of the Trustee, on behalf of the
Trust, an Eligible Deposit Account bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the holders of the Series 2001-1
Certificates (the "Principal Funding Account"). The Principal Funding Account shall initially be established with the Trustee. The Trustee shall possess all right, title
and interest in all funds on deposit from time to time in the Principal Funding Account and in all proceeds thereof for the benefit of the holders of the Series 2001-1 Certificates.
For purposes of the definition of "Required Retained Transferor Amount" the Principal Funding Account shall be an account specified in clause (i)(b) of the definition thereof. Except as
provided in subsection 4.11(b), the Principal Funding Account shall be under the sole dominion and control of the Trustee for the benefit of the holders of the Series 2001-1
Certificates. If, at any time, the Principal Funding Account ceases to be an Eligible Deposit Account, the Trustee (or the Servicer on its behalf) shall within 10 Business Days establish a new
Principal Funding Account meeting the conditions specified above, transfer any cash and/or any investments to such new Principal Funding Account and from the date such new Principal Funding Account is
established, it shall be, for the Certificates, the "Principal Funding Account." 

    (b)
On each Distribution Date with respect to the Accumulation Period and any Special Payment Date, the Servicer shall withdraw from the Principal Funding Account and deposit in the
Collection Account all interest and other investment income (net of losses and investment expenses) on funds then on deposit in the Principal Funding Account. Investment income (including reinvested
interest) on funds deposited in the Principal Funding Account and invested pursuant to subsection 4.11(c) shall not be considered to be principal amounts on deposit in the Principal Funding Account
for purposes hereof, and shall be treated as Available Series 2001-1 Finance Charge Collections with respect to the related Monthly Period. Funds on deposit in the Principal Funding
Account prior to the Class A Expected Final Payment Date shall be invested at the direction of the Transferor by the Trustee in Eligible Investments. Any such investment shall
(i) convert or be convertible into cash so that such funds shall be made available for withdrawal on or prior to the next Distribution Date and (ii) shall be held until maturity;  provided,
however, that the Trustee, at the direction of the Transferor, may sell an investment that is
no longer an Eligible Investment prior to its maturity. Any request to the Trustee from the Transferor to invest funds on deposit in the Principal Funding Account shall be in writing and shall certify
that the requested investment is an Eligible Investment which converts or is convertible into cash at or prior to the time required hereby. 

    (c)
Pursuant to the authority granted to the Servicer in subsection 3.1(b) of the Agreement, the Servicer shall have the power, revocable by the Trustee, to make withdrawals and
payments or to instruct the Trustee to make withdrawals and payments from the Principal Funding Account for the purposes of carrying out of the Servicer's or Trustee's duties hereunder. Pursuant to
the authority granted to the Paying Agent in Sections 5.1 and 6.7 of the Agreement, the Paying Agent shall have the
power, revocable by the Trustee, to withdraw funds from the Principal Funding Account for the purpose of making distributions to the Certificateholders. 

 
 

      Section 4.12.  Accumulation Period.
  The Accumulation Period is scheduled to commence on the Accumulation Date; provided,  however, that if the Accumulation Period Length
(determined as described below) on any Determination Date on or after the June 2003 Determination
Date is less than 12 months,upon written notice to the Trustee, the Transferor and each Rating Agency, the Servicer, at its option, may elect to modify the date on which the Accumulation Period
actually commences to the first day of the month that is a number of months prior to the month in which the Class A Expected Final Payment Date occurs at least equal to the Accumulation Period
Length (so that, as a result of such election, the number of Monthly Periods in the Accumulation Period will at least equal the Accumulation Period Length);  provided, however, that (i) the length of the Accumulation Period will not be less than one
month; (ii) such determination of the Accumulation Period Length shall be made on each Determination Date on and after the April 2003 Determination Date but prior to the commencement of
the Accumulation Period, and any election to shorten the Accumulation 

  
Period shall be subject to the subsequent lengthening of the Accumulation Period to the Accumulation Period Length determined on any subsequent Determination Date, but the Accumulation Period shall in
no event commence prior to the Accumulation Date, and (iii) notwithstanding any other provision of the Series 2001-1 Supplement to the contrary, no election to postpone the
commencement of the Accumulation Period shall be made after an Early Amortization Event (as defined in the related Supplement) shall have occurred and be continuing with respect to any other Series.
The "Accumulation Period Length" will mean a number of months such that the amount available for distribution of principal on the Class A Certificates on the Class A Expected Final
Payment Date is expected to equal or exceed the Class A Invested Amount, assuming for this purpose that (1) the payment rate with respect to Collections of Principal Receivables remains
constant at the lowest level of such payment rate during the twelve preceding Monthly Periods (or such lower payment rate as the Servicer may select), (2) the total amount of Principal
Receivables in the Trust (and the principal amount on deposit in the Special 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 the Servicer electing to modify the commencement of the Accumulation Period pursuant to this Section 4.12 shall specify (i) the Accumulation Period Length, (ii) the
commencement date of the Accumulation Period and (iii) the Controlled Accumulation Amount with respect to each Monthly Period during the Accumulation Period. 

 
 

       Section 4.13.  Reserve Account.
  (a) The Servicer shall establish and maintain with an Eligible Institution, which may be the Trustee, in the name of the Trustee, on behalf of the Trust, for the benefit of
the Investor Certificateholders, a segregated trust account with the corporate trust department of such Eligible Institution (the "Reserve Account"), bearing a designation
clearly indicating that the funds deposited therein are held for the benefit of the Investor Certificateholders. The Trustee shall possess all right, title and interest in all funds on deposit from
time to time in the Reserve Account and in all proceeds thereof. The Reserve Account shall be under the sole dominion and control of the Trustee for the benefit of the Investor
Certificateholders. If at any time the institution holding the Reserve Account ceases to be an Eligible Institution the Transferor shall notify the Trustee, and the Trustee upon being notified (or the
Servicer on its behalf) shall, within 10 Business Days, establish a new Reserve Account meeting the conditions specified above with an Eligible Institution, and shall transfer any cash or any
investments to such new Reserve Account. The Trustee, at the written direction of the Servicer, shall (i) make withdrawals from the Reserve Account from time to time in an amount up to the
Available Reserve Account Amount at such time, for the purposes set forth in this Supplement, and (ii) on each Distribution Date (from and after the Reserve Account Funding Date) prior to
termination of the Reserve Account make a deposit into the Reserve Account in the amount specified in, and otherwise in accordance with, subsection 4.6(a)(ix). 

    (b)
Funds on deposit in the Reserve Account shall be invested by the Transferor (or, at the direction of the Transferor, by the Servicer or the Trustee on behalf of the Transferor) 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 convert or be convertible into cash so that such funds will be available for withdrawal on or prior to the following Transfer Date. The Trustee shall maintain for the benefit of
the Investor Certificateholders possession of the negotiable instruments or certificated securities, if any, evidencing such Eligible Investments. No Eligible Investment shall be disposed of prior to
its maturity. 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 Collection
Account for application as Available Series 2001-1 Finance Charge Collections on the following Distribution Date. For purposes of determining the availability of funds or the
balance in the Reserve Account for any reason under this Supplement, except as otherwise provided in the preceding sentence, investment earnings on such funds shall be deemed not to be available or on
deposit. 

  
    (c) On each Transfer Date with respect to the Accumulation Period prior to the payment in full of the Class A Invested Amount and the first Transfer Date with respect to the
Early Amortization Period, the Servicer shall calculate the "Reserve Draw Amount" which shall be equal to the Principal Funding Investment Shortfall with respect to each Transfer Date with respect to
the Accumulation Period or the first Transfer Date with respect to the Early Amortization Period. 

    (d)
In the event that 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 Trustee (acting in accordance with the written instructions of the Servicer), deposited into the Collection Account and included in Available
Series 2001-1 Finance Charge Collections for such Transfer Date. 

    (e)
In the event that the Reserve Account Surplus on any Distribution Date, after giving effect to all deposits to and withdrawals from the Reserve Account on and prior to such
Distribution Date, is greater than zero, the Trustee, acting in accordance with the written instructions of the Servicer, shall withdraw from the Reserve Account, and apply as Excess Finance Charge
Collections, an amount equal to such Reserve Account Surplus. 

    (f)
Upon the earliest to occur of (i) the termination of the Trust pursuant to Article XII of the Agreement, (ii) the day on which the Class A Invested
Amount is paid in full to the Class A Certificateholders, (iii) if the Accumulation Period has not commenced, the occurrence of a Series 2001-1 Early Amortization
Event or a Early Amortization Event and (iv) if the Accumulation Period has commenced, the earlier of the first Transfer Date with respect to the Early Amortization Period and the
Class A Expected Final Payment Date, the Trustee, acting in accordance with the written instructions of the Servicer, shall withdraw from the Reserve Account and apply as Available
Series 2001-1 Finance Charge Collections, all amounts, if any, on deposit in the Reserve Account and the Reserve Account shall be deemed to have terminated for purposes of this
Supplement. 

 
 

      Section 4.14.  Defeasance.
  On any date prior to the Early Amortization Period on which the following conditions have been satisfied: (i) the Transferor has deposited (x) in the Principal Funding
Account, an amount equal to the outstanding principal balance of the Class A Certificates, which amount will be invested in Eligible Investments and (y) in the Reserve Account an amount
equal to or greater than the Covered Amount, as estimated by the Transferor, for the period from the date of the deposit to the Principal Funding Account through the Class A Expected Final
Payment Date; (ii) the Transferor has delivered to the Trustee an opinion of counsel to the effect that such deposit and termination of obligations as described below will not result in the
Trust being required to register as an "investment company" within the meaning of the Investment Company Act of 1940, as amended, and an opinion of counsel to the effect that following such deposit
none of the Trust, the Reserve Account or the Principal Funding Account will be deemed to be an association (or publicly traded partnership) taxable as a corporation; (iii) the Transferor has
delivered to the Trustee a certificate of an officer of the Transferor stating that the Transferor reasonably believes that such deposit and termination of its obligations will not constitute an Early
Amortization Event or any event that, with the giving of notice or the lapse of time, would constitute an Early Amortization Event or a Series 2001-1 Early Amortization Event to
occur; and (iv) the Rating Agency Condition shall have been satisfied; then, the Series 2001-1 Certificates will no longer be entitled to the security interest of the Trust
in the Receivables and, except those set forth in clause (i) above, other Trust assets ("Defeasance"), and the Investor Percentages applicable to the allocation to
the Series 2001-1 Certificateholders of Collections of Principal Receivables, Finance Charge Receivables and Defaulted Receivables will be reduced to zero. Upon the satisfaction of
the foregoing conditions, the Class B Invested Amount will be reduced to zero. 

 
 

       Section 4.15.  Determination of LIBOR
  (a) On each LIBOR Determination Date, the Trustee shall determine LIBOR on the basis of the rate for deposits in United States dollars for a one-month period 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 that LIBOR 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 one-month period. The Trustee shall request the principal London office of each of the Reference Banks to provide a quotation of its rate. If at least two such quotations are
provided, the rate for that LIBOR Determination Date will be the
arithmetic mean of the quotations. If fewer than two quotations are provided as requested, the rate for that LIBOR Determination Date 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 one-month
period. 

  

    (b)
The Class A Certificate Rate applicable to the then current and the immediately preceding Interest Accrual Periods may be obtained by any Class A Certificateholder
by telephoning the Trustee at (612) 667-2484. 

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

 
 

ARTICLE V    
    
    DISTRIBUTIONS AND REPORTS TO SERIES 2001-1 INVESTOR
  CERTIFICATEHOLDERS    

 
 
       Section 5.1.  Distributions.
  

    (a) On
each Distribution Date, the Paying Agent shall distribute to each Class A Certificateholder of record on the related Record Date (other than as provided
in Section 12.2 of the Agreement) such Class A Certificateholder's pro rata share of the amounts that are available on such Distribution
Date to pay interest on the Class A Certificates pursuant to this Supplement. 

    (b) On
the Class A Expected Final Payment Date and on each Distribution Date thereafter, and on each Distribution Date with respect to the Early Amortization
Period, the Paying Agent shall distribute to each Class A Certificateholder of record on the related Record Date (other than as provided in Section 12.2 of the Agreement) such
Class A Certificateholder's pro rata share of the amounts that are available on such date to pay principal of the Class A Certificates
pursuant to this Supplement up to a maximum amount on any such date equal to the Class A Invested Amount on such date. On each Distribution Date on and after the Distribution Date on which the
Class A Invested Amount is paid in full, the Paying Agent shall distribute to each Class B Certificateholder of record on the related Record Date (other than as provided in
Section 12.2 of the Agreement) such Class B Certificateholder's pro rata share of the amounts that are available on such date to pay
principal of the Class B Certificates pursuant to this Supplement up to a maximum amount on any such date equal to the Class B Invested Amount on such date. 

    (c) The
distributions to be made pursuant to this Section 5.1 are subject to the provisions of Sections 2.6, 10.1 and 12.2 of the Agreement and
Section 8.1. 

    (d) Except
as provided in Section 12.2 of the Agreement with respect to a final distribution, distributions to Series 2001-1
Certificateholders hereunder shall be made by check mailed to each Series 2001-1 Certificateholder at such Series 2001-1 Certificateholder's address appearing in
the Certificate Register without presentation or surrender of any Series 2001-1 Certificate or the making of any notation thereon;  provided, however,
that with respect to Series 2001-1 Certificates registered in the
name of a Clearing Agency, such distributions shall be made to such Clearing Agency in immediately available funds; provided,  further, that the final
payment in retirement of the Class A Certificates will be made only upon presentation and surrender of the Class A
Certificates at the offices specified in the notice of such final distribution delivered by the Trustee pursuant to Section 12.2 of the Agreement. 

 
 

       Section 5.2.  Reports and Statements to Series 2001-1 Certificateholders.
  

    (a) On
each Distribution Date, the Paying Agent, on behalf of the Trustee, shall forward to each Class A Certificateholder a statement substantially in the form
of Exhibit B prepared by the Servicer. 

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

    (c) On
or before January 31 of each calendar year, beginning with calendar year 2002, the Paying Agent, on behalf of the Trustee, shall furnish or cause to be
furnished to each Person who at any time during the preceding calendar year was a Series 2001-1 Certificateholder, a statement prepared by the 

  
Servicer containing the information which is required to be contained in the statement to Series 2001-1 Certificateholders, as set forth in paragraph (a) or (b) above,
as applicable, aggregated for such calendar year or the applicable portion thereof during which such Person was a Series 2001-1 Certificateholder, together with other information as
is required to be provided by an issuer of indebtedness under the Internal Revenue Code. Such obligation of the Servicer shall be deemed to have been satisfied to the extent that substantially
comparable information shall be provided by the Paying Agent pursuant to any requirements of the Internal Revenue Code as from time to time in effect. 

 
 

ARTICLE VI    
    
    EARLY AMORTIZATION EVENTS    

 
 
       Section 6.1.  Series 2001-1 Early Amortization Events.
  If any one of the following events shall occur with respect to the Series 2001-1 Certificates: 

    (a) failure
on the part of (i) RNB duly to observe or perform in any material respect any covenants or agreements of RNB set forth in the Bank Purchase
Agreement, (ii) TCC duly to observe or perform in any material respect any covenants or agreements of TCC set forth in the Receivables Purchase Agreement or (iii) the Transferor
(A) to make any payment or deposit required to be made by the Transferor by the terms of (I) the Agreement or (II) this Supplement, on or before the date occurring five Business
Days after the date such payment or deposit is required to be made herein, (B) to perform in all material respects the Transferor's covenant not to sell, pledge, assign, or transfer to any
person, or grant any unpermitted lien on, any Receivable; or (C) duly to observe or perform in any material respect any covenants or agreements of the Transferor set forth in the Agreement or
this Supplement, which failure under clause (i), (ii) or (iii) has a material adverse effect on the Series 2001-1 Certificateholders and which continues
unremedied for a period of 60 days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Transferor by the Trustee, or to the
Transferor and the Trustee by any Holder of Series 2001-1 Certificates; 

    (b) any
representation or warranty made by RNB in the Bank Purchase Agreement, TCC in the Receivables Purchase Agreement or the Transferor in the Agreement or this
Supplement (i) shall prove to have been incorrect in any material respect when made, which continues to be incorrect in any material respect for a period of 60 days after the date on
which written notice of such failure, requiring the same to be remedied, shall have been given to the Transferor by the Trustee, or to the Transferor and the Trustee by any Holder of
Series 2001-1 Certificates, and (ii) as a result of which the interests of the Series 2001-1 Certificateholders are materially and adversely affected;  provided, however, that a Series 2001-1 Early Amortization Event pursuant to this
subsection 6.1(b) shall not be deemed to have occurred hereunder if the Transferor has accepted designation of the related Receivable as an Ineligible Receivable during such period in accordance with
the provisions of the Agreement; 

    (c) the
average of the Portfolio Yields for any three consecutive Monthly Periods is reduced to a rate which is less than the average of the Base Rates for such three
consecutive Monthly Periods; 

    (d) (i) a
failure by TCC or the Transferor to make an Addition within five Business Days after the Required Designation Date or (ii) the Class B
Invested Amount shall be less than 5% of the Initial Invested Amount; 

    (e) any
Servicer Default shall occur which would have a material adverse effect on the Series 2001-1 Certificateholders; or 

    (f)  the
amount on deposit in the Special Funding Account as a percentage of the sum of the aggregate amount of Principal Receivables plus the amount on deposit in the
Special Funding Account shall equal or exceed 30% on the last day of three consecutive Monthly Periods; 

  
then, the Trustee shall within five days publish a notice of such Early Amortization Event and in the case of any event described in subparagraph (a), (b) or (e), after the applicable grace
period, if any, set forth in such subparagraphs, the Holders of Series 2001-1 Certificates evidencing undivided interests aggregating more than 50% of the Invested Amount of this
Series 2001-1 by notice then given in writing to the Trustee, the Transferor and the Servicer may declare that a early amortization event (a
"Series 2001-1 Early Amortization Event") has occurred as of the date of such notice, and in the case of any event described in subparagraphs (c),
(d) or (f), a Series 2001-1 Early Amortization Event shall occur without any notice or other action on the part of the Trustee or the Series 2001-1
Certificateholders immediately upon the occurrence of such event. The Trustee shall provide to the Transferor a copy of any notice received from any Holder of Series 2001-1
Certificates and the Transferor shall provide to the RNB or TCC, as applicable, a copy of any notice received from the Trustee or any Holder of Series 2001-1 Certificates under
subparagraphs (a) and (b) above if such notice shall relate to a covenant, agreement, representation or warranty by RNB or TCC, respectively. 

 
 

ARTICLE VII    
    
    OPTIONAL REPURCHASE; SERIES TERMINATION;
  SALE OF CLASS B CERTIFICATES    

 
 
       Section 7.1.  Optional Repurchase.
  The Series 2001-1 Certificates shall be subject to termination by the Transferor at its option on any Distribution Date on or after the Distribution Date on which
the Class A Invested Amount is reduced to an amount less than or equal to 10% of the highest Class A Invested Amount outstanding at any time. The deposit required in connection with any
such termination and final distribution shall be equal to the Class A Invested Amount plus accrued and unpaid interest on the Series 2001-1 Certificates through the day prior
to the Distribution Date on which the final distribution occurs. 

 
 

       Section 7.2.  Series 2001-1 Termination.
  (a) If, on the May 2008 Distribution Date, the Invested Amount (after giving effect to all changes therein on such date) would be greater than zero, the Servicer, on
behalf of the Trustee, shall, within the forty-day period which begins on such Distribution Date, solicit bids for the sale of Principal Receivables and the related Finance Charge
Receivables (or interests therein) in the amount specified in subsection 12.2(c) of the Agreement. Such bids shall require that such sale shall (subject to Section 7.2(b)) occur on the
Scheduled Series 2001-1 Termination Date. The Transferor shall be entitled to participate in, and to receive from the Trustee a copy of each other bid submitted in connection with,
such bidding process. 

    (b) The
Servicer, on behalf of the Trustee, shall sell such Receivables (or interests therein) on the Scheduled Series 2001-1 Termination Date to the
bidder who made the highest cash purchase offer. The proceeds of any such sale shall be treated as Collections on the Receivables to be allocated to the Series 2001-1
Certificateholders pursuant to the Agreement and this Supplement; provided, however, that the Servicer
shall determine conclusively the amount of such proceeds which are allocable to Finance Charge Receivables and the amount of such proceeds which are allocable to Principal Receivables. During the
period from the May 2008 Distribution Date to the Scheduled Series 2001-1 Termination Date, the Servicer shall continue to collect payments on the Receivables and allocate
and deposit such Collections in accordance with the provisions of the Agreement and this Supplement. 

 
 

       Section 7.3.  Reduction of Class B Invested Amount During the Revolving Period; Designation of Class B Certificate Terms; Sale of  Class B Certificates.
  (a) The Class B Invested Amount may be reduced during the Revolving Period by distributing Collections of Principal Receivables to the Class B Certificateholders
in accordance with Section 4.6(b), provided that (i) the Rating Agency Condition shall have been satisfied with respect to such reduction
and (ii) the Transferor shall have delivered to the Trustee an Officer's Certificate stating that the Transferor reasonably believes that such reduction will not, based on the facts known to
such officer at the time of such certification, cause an Early Amortization Event or any event that, after the giving of notice or the lapse of time or both, would constitute an Early Amortization
Event. 

  
    (b) The Transferor may at any time, without the consent of the Investor Certificateholders, (i) sell or transfer all or a portion of the Class B
Certificates and (ii) in connection with any such sale or transfer, enter into a supplemental agreement with the Trustee pursuant to which the Transferor and the Trustee may amend the
Class B Certificate Rate, set forth the amount of monthly interest due Class B Certificateholders (the "Class B Interest"), provide for the payment of
additional amounts (the "Class B Additional Interest") with respect to any shortfall (the "Class B Interest Shortfall") in such
Class B Interest and provide for such other provisions with respect to the Class B Certificates as may be specified in such supplemental agreement,  provided that in each such case (A) the
Transferor shall have given notice to the Trustee, the Servicer and the Rating Agencies of such proposed
sale or transfer of the Class B Certificates and such supplemental agreement at least five business days prior to the consummation of such sale or transfer and the execution of such proposed
supplemental agreement;
(B) the Rating Agency Condition shall have been satisfied; (C) no Early Amortization Event shall have occurred prior to the consummation of such proposed sale or transfer of
Class B Certificates or the execution of such supplemental agreement; (D) the Transferor shall have delivered an Officer's Certificate, dated the date of the consummation of such sale or
transfer and the effectiveness of such supplemental agreement, to the effect that, in the reasonable belief of the Transferor, such action will not, based on the facts known to such officer at the
time of such certification, cause an Early Amortization Event to occur with respect to any Series, and (E) the Transferor will have delivered a Tax Opinion, dated the date of such certificate
with respect to such action; provided, further, (i) as a condition to the sale or transfer of all
or a portion of the Class B Certificates the transferee shall be required to agree not to institute against, or join any other Person in instituting against, the Trust or the Transferor any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding, or other proceeding under any federal or state bankruptcy or similar law, for one year and one day after all Investor
Certificates are paid in full and (ii) the Class B Certificates may not be sold or transferred, in whole or in part, to Target Capital Corporation. 

 
 

      Section 7.4.  Purchase of the Class A Certificates by the Transferor.
  The Transferor may from time to time, purchase Class A Certificates on the secondary market and request the Trustee to cancel such Class A Certificates held by the
Transferor and reduce the Class A Invested Amount by a corresponding amount. 

 
 

ARTICLE VIII    
    
    FINAL DISTRIBUTION    

 
 
      Section 8.1.  Sale of Receivables or Certificateholders' Interest pursuant to Section 2.6 or 10.1 of the Agreement and Section 7.1 or  7.2 of this Supplement.
  

    (a) The
amount to be paid by the Transferor with respect to Series 2001-1 in connection with a reassignment of Receivables to the Transferor pursuant
to Section 2.6 of the Agreement or a repurchase of the Certificateholder's Interest pursuant to Section 10.1 shall equal the Reassignment Amount for the first Distribution Date following
the Monthly Period in which the reassignment obligation arises under the Agreement. 

    (b) With
respect to the Reassignment Amount deposited into the Collection Account pursuant to Sections 7.1 or 8.1 or any amounts allocable to the
Series 2001-1 Certificateholders' Interest deposited into the Collection Account pursuant to Section 7.2, the Trustee shall, not later than 10:00 a.m., New York City
time, on the related Distribution Date, make deposits or distributions of the following amounts (in the priority set forth below and, in each case after giving effect to any deposits and distributions
otherwise to be made on such date) in immediately available funds: (i) (x) the Class A
Invested Amount on such Distribution Date will be distributed to the Paying Agent for payment to the Class A Certificateholders and (y) an amount equal to the sum of
(A) Class A Interest for such Distribution Date, (B) any Class A Interest previously due but not distributed 

  

to
the Class A Certificateholders on a prior Distribution Date and (C) the amount of Class A Additional Interest, if any, for such Distribution Date and any Class A
Additional Interest previously due but not distributed to the Class A Certificateholders on any prior Distribution Date, will be distributed to the Paying Agent for payment to the
Class A Certificateholders, (ii) (x) the Class B Invested Amount on such Distribution Date will be distributed to the Paying Agent for payment to the Class B
Certificateholders and (y) an amount equal to the sum of (A) Class B Monthly Interest for such Distribution Date, (B) any Class B Monthly Interest previously due but
not distributed to the Class B Certificateholders on a prior Distribution Date and (C) the amount of Class B Additional Interest, if any, for such Distribution Date and any
Class B Additional Interest previously due but not distributed to the Class B Certificateholders on any prior Distribution Date, will be distributed to the Paying Agent for payment to
the Class B Certificateholders, (iii) any other amounts payable pursuant to subsection 4.6(a) shall be paid in accordance therewith and (iv) the balance, if any, will be
distributed to the Holder of the Transferor Certificate. 

    (c) Notwithstanding
anything to the contrary in this Supplement or the Agreement, all amounts distributed to the Paying Agent pursuant to Section 8.1(b) for
payment to the Series 2001-1 Certificateholders shall be deemed distributed in full to the Series 2001-1 Certificateholders on the date on which such funds are
distributed to the Paying Agent pursuant to this Section and shall be deemed to be a final distribution pursuant to Section 12.2 of the Agreement. 

 
 

ARTICLE IX    
    
    MISCELLANEOUS PROVISIONS    

 
 
       Section 9.1.  Delivery and Payment for the Series 2001-1 Certificates.
  The Transferor shall execute and deliver the Series 2001-1 Certificates to the Trustee for authentication in accordance with Section 6.1 of the Agreement.
The Trustee shall deliver the Series 2001-1 Certificates to or upon the order of the Transferor when authenticated in accordance with Section 6.2 of the Agreement. 

 
 

      Section 9.2.  Form of Delivery of Series 2001-1 Certificates.
  The Class A certificates and the Class B Certificates shall be delivered as Registered Certificates as provided in Section 6.1 of the Agreement. 

 
 

       Section 9.3.  Legend on Class B Certificates.
  

    Each
Class B Certificate will bear a legend substantially in the following form: 

EACH
PURCHASER REPRESENTS AND WARRANTS FOR THE BENEFIT OF TARGET RECEIVABLES CORPORATION AND THE TRUSTEE THAT SUCH PURCHASER IS NOT (I) AN EMPLOYEE BENEFIT PLAN (AS DEFINED IN SECTION 3(3) OF
THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA")) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, (II) A PLAN DESCRIBED IN SECTION 4975(e)(1) OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE") THAT IS SUBJECT TO SECTION 4975 OF THE CODE, (III) A GOVERNMENTAL PLAN, AS DEFINED IN SECTION 3(32) OF ERISA, SUBJECT TO ANY FEDERAL, STATE OR
LOCAL LAW WHICH IS, TO A MATERIAL EXTENT, SIMILAR TO THE PROVISIONS OF SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, (IV) AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF
A PLAN'S INVESTMENT IN THE ENTITY OR (V) A PERSON INVESTING "PLAN ASSETS" OF ANY SUCH PLAN (INCLUDING FOR PURPOSES OF CLAUSES (IV) AND (V), ANY INSURANCE COMPANY GENERAL ACCOUNT, BUT
EXCLUDING ANY ENTITY REGISTERED UNDER THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED). 

THIS
CERTIFICATE MAY NOT BE ACQUIRED, SOLD, TRADED OR TRANSFERRED, NOR MAY AN INTEREST IN THIS CERTIFICATE BE MARKETED ON OR THROUGH (I) AN "ESTABLISHED SECURITIES MARKET" WITHIN THE MEANING OF
SECTION 

  
7704(b)(1) OF THE CODE AND ANY PROPOSED, TEMPORARY OR FINAL REGULATION THEREUNDER, INCLUDING, WITHOUT LIMITATION, AN OVER-THE-COUNTER MARKET OR AN INTERDEALER QUOTATION SYSTEM
THAT REGULARLY DISSEMINATES FIRM BUY OR SELL QUOTATIONS OR (II) A "SECONDARY MARKET" WITHIN THE MEANING OF SECTION 7704(b)(2) OF THE CODE AND ANY PROPOSED, TEMPORARY OR FINAL TREASURY
REGULATION THEREUNDER INCLUDING A MARKET WHEREIN INTERESTS IN THE CLASS B CERTIFICATES ARE REGULARLY QUOTED BY ANY PERSON MAKING A MARKET IN SUCH INTERESTS AND A MARKET WHEREIN ANY PERSON REGULARLY
MAKES AVAILABLE BID OR OFFER QUOTES WITH RESPECT TO INTERESTS IN THE CLASS B CERTIFICATES AND STANDS READY TO EFFECT BUY OR SELL TRANSACTIONS AT THE QUOTED PRICES FOR ITSELF OR ON BEHALF OF OTHERS. 

THIS
CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES OR "BLUE SKY" LAWS OF THE UNITED STATES OR OTHER JURISDICTION.
NEITHER THIS CERTIFICATE
NOR ANY PORTION HEREOF MAY BE OFFERED, SOLD PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE REGISTRATION PROVISIONS OF THE SECURITIES ACT AND ANY APPLICABLE PROVISIONS OF ANY STATE
SECURITIES OR "BLUE SKY" LAWS OF THE UNITED STATES OR OTHER JURISDICTION OR PURSUANT TO AN AVAILABLE EXEMPTION FROM SUCH REGISTRATION PROVISIONS AND IN ACCORDANCE WITH THE PROVISIONS OF THE SERIES
2001-1 SUPPLEMENT. 

 
 

       Section 9.4.  Ratification of Agreement.
  As supplemented by this Supplement, the Agreement is in all respects ratified and confirmed and the Agreement as so supplemented by this Supplement shall be read, taken, and construed
as one and the same instrument. 

 
 

      Section 9.5.  Counterparts.
  This Supplement may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all of such counterparts shall together constitute but
one and the same instrument. 

 
 

       Section 9.6.  Paired Series.
  Subject to satisfaction of the Rating Agency Condition, and prior to the commencement of the Early Amortization Period, the Series 2001-1 Certificates may be paired
with one or more other Series (each a "Paired Series"). Each Paired Series either will be pre-funded with an initial deposit to a prefunding account in an
amount up to the initial principal balance of such Paired Series and primarily from the proceeds of the sale of such Paired Series or will have a variable principal amount. Any such prefunding account
will be held for the benefit of such Paired Series and not for the benefit of the Series 2001-1 Certificateholders. As principal is paid with respect to the
Series 2001-1 Certificates, either (i) in the case of a prefunded Paired Series, an equal amount of funds on deposit in any prefunding account for such prefunded Paired
Series will be released (which funds will be distributed to the Transferor) or (ii) in the case of a Paired Series having a variable principal amount, an interest in such variable Paired Series
in an equal or lesser amount may be sold by the Trust (and the proceeds thereof will be distributed to the Transferor) and, in either case, the invested amount in the Trust of such Paired Series will
increase by up to a corresponding amount. Upon payment in full of the Series 2001-1 Certificates, assuming that there have been no unreimbursed charge-offs with respect
to any related Paired Series, the aggregate invested amount of such related Paired Series will have been increased by an amount up to an aggregate amount equal to the Invested Amount paid to the
Series 2001-1 Certificateholders since the issuance of such Paired Series. The issuance of a Paired Series will be subject to the conditions described in subsection 6.3 of the
Agreement. 

 
 

       Section 9.7.  Jurisdiction; Service.
  Solely with respect to the Agreement (as supplemented hereby and as further amended, modified or supplemented from time to time) and the transactions and other matters contemplated
thereby or relating thereto, each of the parties hereto hereby irrevocably 

  
and unconditionally agrees (a) to be subject to the jurisdiction of the courts of the State of Delaware and of the federal courts sitting in the State of Delaware, and (b)(i) to the
extent such party is not otherwise subject to service of process in the State of Delaware, to appoint and maintain an agent in the State of Delaware as such party's agent for acceptance of legal
process, and (ii) that service of process may also be made on such party by prepaid certified mail with a proof of mailing receipt validated by the United States Postal Service constituting
evidence of valid service, and that service made pursuant to (b)(i) or (ii) above shall have the same legal force and effect as if served upon such party personally within the State of
Delaware. For purposes of implementing the parties' foregoing agreement to appoint and maintain an agent for service of process in the State of Delaware solely in respect of the Agreement and the
transactions and other matters contemplated thereby or relating thereto, each such party that has not as of the date hereof already duly appointed such an agent does hereby appoint RL&F Service Corp.,
One Rodney Square, 10th Floor, Wilmington, Delaware 19801, as such agent. 

 
 
 

    Section 9.8. GOVERNING LAW. THIS SUPPLEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF DELAWARE WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
LAWS.

 
 

       Section 9.9.  Instructions in Writing.
  All instructions or other communications given by the Servicer or any other person to the Trustee pursuant to this Supplement shall be in writing. 

 
 
 

       Section 9.10.  Target VISA Automatic Addition Limitation.
  The Transferor shall elect to terminate the inclusion in Accounts of new accounts which would otherwise be Automatic Additional Accounts in accordance with subsection
2.9(d)(i) of the Agreement if on any Determination Date the percentage equivalent of a fraction the numerator of which is the number of Target VISA accounts originated through responses from
obligors who were not previously customers of Target Corporation or any of its subsidiaries (i) to mass mailings of new account solicitations and (ii) to internet advertising on web
sites other than the web sites of Target Corporation or any of its subsidiaries, and the denominator of which is the aggregate number of Target VISA accounts designated to have their Receivables
included in the Trust on that Determination Date, exceeds 15%. If such limitation is exceeded, the Transferor shall deliver to the Trustee, the Servicer and each Rating Agency written notice of the
Automatic Addition Suspension Date or the Automatic Addition Termination Date. If on any subsequent Determination Date such percentage shall be less than 15%, the Transferor may provide notice of a
Restart Date in accordance with subsection 2.9(d) of the Agreement. 

 
 

      Section 9.11.  Eligible Investments.
  In order to qualify as an "Eligible Investment," each type of investment described in clauses (b), (c), (d) and (f) of the definition of "Eligible Investments" in
Section 1.1 of the Agreement must be rated "A-1+" by Standard & Poor's. 

  
    IN WITNESS WHEREOF, the Transferor, the Servicer and the Trustee have caused this Series 2001-1 Supplement to be duly executed by their respective officers as of
the day and year first above written. 

	 	 	TARGET RECEIVABLES CORPORATION,

  Transferor
	

 	
 	

By:	

/s/ Stephen C. Kowalke   

	 	 	 	Name: Stephen C. Kowalke
	 	 	 	Title: Vice President and Treasurer
	

 	
 	
RETAILERS NATIONAL BANK,

  Servicer
	

 	
 	

By:	

/s/ Stephen C. Kowalke   

	 	 	 	Name: Stephen C. Kowalke
	 	 	 	Title: Assistant Treasurer
	

 	
 	
WELLS FARGO BANK MINNESOTA,

NATIONAL ASSOCIATION,

  Trustee
	

 	
 	

By:	

/s/ S. Dignan   

	 	 	 	Name: S. Dignan
	 	 	 	Title: Corporate Trust Officer

 
 

Exhibit A-1    

 
 

FORM OF CLASS A INVESTOR CERTIFICATE    

	REGISTERED	 	$[            ]
	

No. [            ]	
 	

CUSIP NO. 87613F AA 0

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

TARGET CREDIT CARD MASTER TRUST 

SERIES
2001-1 

FLOATING
RATE CLASS A ASSET BACKED CERTIFICATE 

Evidencing
an undivided interest in a trust, the corpus of which consists of receivables generated from time to time in the ordinary course of business from a portfolio of consumer open end credit
card accounts generated or to be generated by Retailers National Bank ("RNB" or the "Servicer") and other assets and interests constituting the Trust under the Agreement described below. 

    (Not
an interest in or a recourse obligation of Target Receivables Corporation, Target Capital Corporation or RNB or any affiliate of any of them.) 

    This
certifies that CEDE & CO. (the "Certificateholder") is the registered owner of a fractional undivided interest in the Target Credit Card Master Trust (the "Trust") issued
pursuant to the Amended and Restated Pooling and Servicing Agreement, dated as of April 28, 2000, as amended (the "Pooling and Servicing Agreement"; such term to include any amendment thereto)
by and between Target Receivables Corporation, as Transferor (the "Transferor"), RNB, as the Servicer, and Wells Fargo Bank Minnesota, National Association (formerly known as Norwest Bank Minnesota,
National Association), as Trustee (the "Trustee"), and the Series 2001-1 Supplement, dated as of August 22, 2001 (the "Series 2001-1 Supplement"), among
the Transferor, the Servicer and the Trustee. The Pooling and Servicing Agreement, as supplemented by the Series 2001-1 Supplement, is herein referred to as the "Agreement"). The
corpus of the Trust consists of all of the Transferor's right, title and interest in, to and under the Trust Assets (as defined in the Agreement). 

    This
Certificate does not purport to summarize the Agreement and reference is made to that Agreement for information with respect to the interests, rights, benefits, obligations,
proceeds, and duties evidenced hereby and the rights, duties and obligations of the Trustee. To the extent not defined herein, the capitalized terms used herein have the meanings ascribed to them in
the Agreement. This Certificate is one of a class of Certificates entitled "Target Credit Card Master Trust $750,000,000 Floating Rate Class A Asset Backed Certificates,
Series 2001-1" (the "Class A Certificates"), each of which represents a fractional undivided interest in the Trust, and is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement, as amended from time to time, the Certificateholder by virtue of the acceptance hereof assents and by which the Certificateholder is
bound. 

    The
Transferor has structured the Agreement, the Class A Certificates and the "Target Credit Card Master Trust $250,000,000 Class B Asset Backed Certificates,
Series 2001-1" (the "Class B Certificates") with the intention that the Class A Certificates will qualify under applicable tax law as 

 
debt, and both the Transferor and each holder of a Class A Certificate (a "Class A Certificateholder") or any interest therein by acceptance of its Certificate or any interest therein,
agrees to treat the Class A Certificates for purposes of federal, state and local income or franchise taxes and any other tax imposed on or measured by income, as debt. 

    No
principal will be payable to the Class A Certificateholders until the earlier of (i) the first Distribution Date in the Early Amortization Period and (ii) the
Class A Expected Final Payment Date. 

    Each
Class A Certificate represents the right to receive interest at a per annum rate equal to the London Interbank Offered Rate ("LIBOR") for one-month U.S. Dollar
deposits in Europe (determined as set forth in the Pooling and Servicing Agreement) on the applicable LIBOR Determination Date, in each case plus 0.11% per annum (such rate, as in effect from time to
time, the "Class A Certificate Rate"). Interest on the Class A Certificates will accrue from the Closing Date and will be distributed on September 25, 2001, and on the 25th day of
each month thereafter, or if such day is not a business day, on the next succeeding business day (each, a "Distribution Date"), in an amount equal to the product of (a) the Class A
Certificate Rate for the period from and including the preceding Distribution Date to and excluding such Distribution Date (the "Interest Accrual Period"), (b) the outstanding principal balance
of the Class A Certificates as of the last day of the preceding Monthly Period (or in the case of the first Distribution Date, the initial Class A Invested Amount) and (c) a
fraction, the numerator of which is the actual number of days in the related Interest Accrual Period and the denominator of which is 360. 

    Principal
is scheduled to be paid in full on the July 2004 Distribution Date for the Class A Certificates, but may be paid earlier or later in certain circumstances.
Unpaid principal, together with interest, will be payable monthly to Class A Certificateholders following the Class A Expected Final Payment Date to the extent principal has not been
paid in full on the Class A Expected Final Payment Date. However, no payments of principal or interest will be made on the Series 2001-1 Certificates after the
Series 2001-1 Termination Date, regardless of whether principal and interest have been paid in full with respect thereto. Interest will be distributed to the Class A
Certificateholders monthly on each Distribution Date prior to the Series Termination Date. Interest for any Distribution Date will include accrued interest at the Class A Certificate Rate from
and including the preceding Distribution Date or, in the case of the first Distribution Date from and including the Closing Date, to but excluding such Distribution Date. Interest for any Distribution
Date due but not paid on any Distribution Date will be due on the next succeeding Distribution Date together with, to the extent permitted by applicable law, additional interest on such amount at the
Class A Certificate Rate plus 2% per annum. 

    In
general, payments of principal with respect to the Class A Certificates are limited to the Class A Invested Amount, which may be less than the unpaid principal
balance of the Class A Certificates. The Class A Expected Final Payment Date is the July 2004 Distribution Date, but principal with respect to the Class A Certificates may
be paid earlier or later under certain circumstances described in the Agreement and the Series 2001-1 Supplement. If for one or more months during the Accumulation Period there are
not sufficient funds to pay the Controlled Deposit Amount, then to the extent that excess funds are not available on subsequent Distribution Dates with respect to the Accumulation Period to make up
for such shortfalls, the final payment of principal of the Class A Certificates will occur later than the Class A Expected Final Payment Date. 

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

 
    IN WITNESS WHEREOF, the Transferor has caused this Certificate to be duly executed under its official seal. 

	 	 	TARGET RECEIVABLES CORPORATION
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:

Dated:
                             ,         

CERTIFICATE
OF AUTHENTICATION 

    This
is one of the Class A Certificates referred to in the within-mentioned Pooling and Servicing Agreement. 

	 	 	WELLS FARGO BANK MINNESOTA,

NATIONAL ASSOCIATION
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:

Exhibit A-2

 
 

FORM OF CLASS B INVESTOR CERTIFICATE    

	REGISTERED	 	$[            ]
	

No. [            ]	
 	

 

EACH PURCHASER REPRESENTS AND WARRANTS FOR THE BENEFIT OF TARGET RECEIVABLES CORPORATION AND THE TRUSTEE THAT SUCH PURCHASER IS NOT (I) AN EMPLOYEE BENEFIT PLAN (AS
DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA")) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, (II) A PLAN DESCRIBED IN SECTION
4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") THAT IS SUBJECT TO SECTION 4975 OF THE CODE, (III) A GOVERNMENTAL PLAN, AS DEFINED IN SECTION 3(32) OF ERISA, SUBJECT TO
ANY FEDERAL, STATE OR LOCAL LAW WHICH IS, TO A MATERIAL EXTENT, SIMILAR TO THE PROVISIONS OF SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, (IV) AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE
PLAN ASSETS BY REASON OF A PLAN'S INVESTMENT IN THE ENTITY OR (V) A PERSON INVESTING "PLAN ASSETS" OF ANY SUCH PLAN (INCLUDING FOR PURPOSES OF CLAUSES (IV) AND (V), ANY INSURANCE COMPANY
GENERAL ACCOUNT, BUT EXCLUDING ANY ENTITY REGISTERED UNDER THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED).

THIS CERTIFICATE MAY NOT BE ACQUIRED, SOLD, TRADED OR TRANSFERRED, NOR MAY AN INTEREST IN THIS CERTIFICATE BE MARKETED ON OR THROUGH (I) AN "ESTABLISHED SECURITIES
MARKET" WITHIN THE MEANING OF SECTION 7704(b)(1) OF THE CODE AND ANY PROPOSED, TEMPORARY OR FINAL REGULATION THEREUNDER, INCLUDING, WITHOUT LIMITATION, AN OVER-THE-COUNTER
MARKET OR AN INTERDEALER QUOTATION SYSTEM THAT REGULARLY DISSEMINATES FIRM BUY OR SELL QUOTATIONS OR (II) A "SECONDARY MARKET" WITHIN THE MEANING OF SECTION 7704(b)(2) OF THE CODE AND ANY
PROPOSED, TEMPORARY OR FINAL TREASURY REGULATION THEREUNDER INCLUDING A MARKET WHEREIN INTERESTS IN THE CLASS B CERTIFICATES ARE REGULARLY QUOTED BY ANY PERSON MAKING A MARKET IN SUCH INTERESTS AND A
MARKET WHEREIN ANY PERSON REGULARLY MAKES AVAILABLE BID OR OFFER QUOTES WITH RESPECT TO INTERESTS IN THE CLASS B CERTIFICATES AND STANDS READY TO
EFFECT BUY OR SELL TRANSACTIONS AT THE QUOTED PRICES FOR ITSELF OR ON BEHALF OF OTHERS.

THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES OR "BLUE SKY" LAWS OF THE UNITED STATES OR
OTHER JURISDICTION. NEITHER THIS CERTIFICATE NOR ANY PORTION HEREOF MAY BE OFFERED, SOLD PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE REGISTRATION PROVISIONS OF THE SECURITIES ACT
AND ANY APPLICABLE PROVISIONS OF ANY STATE SECURITIES OR "BLUE SKY" LAWS OF THE UNITED STATES OR OTHER JURISDICTION OR PURSUANT TO AN AVAILABLE EXEMPTION FROM SUCH REGISTRATION PROVISIONS AND IN
ACCORDANCE WITH THE PROVISIONS OF THE SERIES 2001-1 SUPPLEMENT.

TARGET CREDIT CARD MASTER TRUST 

SERIES
2001-1 

$            
CLASS B ASSET BACKED CERTIFICATE 

    Evidencing
an undivided interest in a trust, the corpus of which consists of receivables generated from time to time in the ordinary course of business from a portfolio of consumer
open end credit card accounts generated or to be generated by Retailers National Bank ("RNB" or the "Servicer") and other assets and interests constituting the Trust under the Agreement described
below. 

 
    (Not an interest in or a recourse obligation of Target Receivables Corporation, Target Capital Corporation or RNB or any affiliate of any of them.) 

    This
certifies that Target Receivables Corporation (the "Certificateholder") is the registered owner of a fractional undivided interest in the Target Credit Card Master Trust (the
"Trust") issued pursuant to the Amended and Restated Pooling and Servicing Agreement, dated as of April 28, 2000 (the "Pooling and Servicing Agreement," such term to include any amendment
thereto) by and between Target Receivables Corporation, as Transferor (the "Transferor"), RNB as the Servicer, and Wells Fargo Bank Minnesota, National Association (formerly known as Norwest Bank
Minnesota, National Association),
as Trustee (the "Trustee"), and the Series 2001-1 Supplement, dated as of August 22, 2001 (the "Series 2001-1 Supplement"), among the Transferor, RNB, as
Servicer and the Trustee. The Pooling and Servicing Agreement, as supplemented by the Series 2001-1 Supplement, is herein referred to as the "Agreement". The corpus of the Trust
consists of all of the Transferor's right, title and interest in, to and under the Trust Assets (as defined in the Agreement). 

    This
Certificate does not purport to summarize the Agreement and reference is made to that Agreement for information with respect to the interests, rights, benefits, obligations,
proceeds, and duties evidenced hereby and the rights, duties and obligations of the Trustee. To the extent not defined herein, the capitalized terms used herein have the meanings ascribed to them in
the Agreement. This Certificate is one of a class of Certificates entitled "Target Credit Card Master Trust $250,000,000 Class B Asset Backed Certificates, Series 2001-1"
(the "Class B Certificates"), each of which represents a fractional undivided interest in the Trust, and is issued under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement, as amended from time to time, the Certificateholder by virtue of the acceptance hereof assents and by which the Certificateholder is bound. 

    Unless
the Rating Agency Condition and certain other conditions set forth in the Series 2001-1 Supplement are satisfied, (i) no principal will be payable to
the Class B Certificateholders until the Class A Invested Amount is paid in full and (ii) no interest will accrue on the unpaid principal amount of the Class B
Certificates. Principal is scheduled to be paid in full to the Class A Certificates on the July 2004 Distribution Date. 

    In
general, payments of principal with respect to the Class B Certificates are limited to the Class B Invested Amount, which may be less than the unpaid principal
balance of the Class B Certificates. 

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

    IN
WITNESS WHEREOF, the Transferor has caused this Certificate to be duly executed under its official seal. 

	 	 	TARGET RECEIVABLES CORPORATION
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:

Dated:
                             ,         

 CERTIFICATE OF AUTHENTICATION 

    This
is one of the Class B Certificates referred to in the within-mentioned Pooling and Servicing Agreement. 

	 	 	WELLS FARGO BANK MINNESOTA,

NATIONAL ASSOCIATION
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:

 
 

EXHIBIT B    

 
 

FORM OF MONTHLY SERIES 2001-1 CERTIFICATEHOLDERS' STATEMENT    

 
EXHIBIT C 

 
 

FORM OF MONTHLY SERVICER'S CERTIFICATE    

 
 

RETAILERS NATIONAL BANK    
    
    TARGET CREDIT CARD MASTER TRUST
  SERIES 2001-1    
  

    The undersigned, a duly authorized representative of Retailers National Bank, as Servicer ("RNB"), pursuant to the Amended and Restated Pooling and Servicing
Agreement, dated as of April 28, 2000 (as may be amended, from time to time, the "Agreement"), as supplemented by the Series 2001-1 Supplement (as amended and supplemented,
the "Series Supplement"), dated as of August 22, 2001 among RNB, Target Receivables Corporation and Wells Fargo Bank Minnesota, National Association, does hereby certify as follows: 

    1.  Capitalized
terms used in this Certificate have their respective meanings as set forth in the Agreement or the Series Supplement, as applicable. 

    2.  RNB
is, as of the date hereof, the Servicer under the Agreement. 

    3.  The
undersigned is a Servicing Officer. 

    4.  This
Certificate relates to the Distribution Date occurring on                ,
       (the "          Distribution Date"). 

    5.  As
of the date hereof, to the best knowledge of the undersigned, the Servicer has performed in all material respects all its obligations under the Agreement through
the Monthly Period preceding such Distribution Date [or, if there has been a default in the performance of any such obligation, set forth in detail the (i) nature of such default,
(ii) the action taken by the Servicer, if any, to remedy such default and (iii) the current status of each such default; if applicable, insert "None"]. 

    6.  As
of the date hereof, to the best knowledge of the undersigned, no Early Amortization Event occurred on or prior to such Distribution Date. 

    IN
WITNESS WHEREOF, the undersigned has duly executed and delivered this Certificate this        day of
                   . 

	 	 	RETAILERS NATIONAL BANK,

  as Servicer
	  	 	 	 
	

 	
 	

By:	

 
	 	 	 	

	 	 	 	Name:
	 	 	 	Title:

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