Document:

Exhibit 4.3

 

 

SERIES 2005-A
SUPPLEMENT

Dated as of May 26, 2005

 

among

 

TEXTRON FINANCIAL
FLOORPLAN MASTER NOTE TRUST,

as Issuer

 

TEXTRON FINANCIAL
CORPORATION,

as Servicer

 

and

 

THE BANK OF NEW YORK,

as Indenture Trustee

 

to

 

AMENDED AND RESTATED
INDENTURE

Dated as of May 26,
2005

 

between

 

TEXTRON FINANCIAL
FLOORPLAN MASTER NOTE TRUST,

as Issuer

 

and

 

THE BANK OF NEW YORK,

as Indenture Trustee

 

 

TEXTRON FINANCIAL
FLOORPLAN MASTER NOTE TRUST

SERIES 2005-A NOTES

 

 

 

	
  ARTICLE I

  	
   

  
	
   

  	
   

  
	
  Definitions

  	
   

  
	
   

  	
   

  
	
  Section 1.01 Definitions

  	
   

  
	
   

  	
   

  
	
  ARTICLE II

  	
   

  
	
   

  	
   

  
	
  Creation of
  the Series 2005-A Notes

  	
   

  
	
   

  	
   

  
	
  Section 2.01 Designation

  	
   

  
	
  Section 2.02 Form, Execution,
  Authentication and Delivery of Series 2005-A Notes

  	
   

  
	
  Section 2.03 Regulation S
  Permanent Book-Entry Notes

  	
   

  
	
  Section 2.04 Class C Notes;
  Transfer Restrictions

  	
   

  
	
   

  	
   

  
	
  ARTICLE III

  	
   

  
	
   

  	
   

  
	
  Servicing
  Fee

  	
   

  
	
   

  	
   

  
	
  Section 3.01 Servicing
  Compensation

  	
   

  
	
   

  	
   

  
	
  ARTICLE IV

  	
   

  
	
   

  	
   

  
	
  Rights
  of Series 2005-A Noteholders and Allocation and Application of
  Collections

  	
   

  
	
   

  	
   

  
	
  Section 4.01 Daily Allocations;
  Payments to Residual Interestholder

  	
   

  
	
  Section 4.02 Monthly Interest

  	
   

  
	
  Section 4.03 Determination of
  Monthly Principal

  	
   

  
	
  Section 4.04 Establishment of
  Accounts

  	
   

  
	
  Section 4.05 Application of
  Collections

  	
   

  
	
  Section 4.06 Distributions to Series 2005-A
  Noteholders

  	
   

  
	
  Section 4.07 Investor
  Charge-Offs

  	
   

  
	
  Section 4.08 Excess Funding
  Account

  	
   

  
	
  Section 4.09 Reallocated
  Principal Collections

  	
   

  
	
  Section 4.10 Excess
  Non-Principal Collections

  	
   

  
	
  Section 4.11 Excess Principal
  Collections

  	
   

  
	
  Section 4.12 Reserve Account.

  	
   

  
	
  Section 4.13 Investment of
  Amounts on Deposit in Series Accounts

  	
   

  
	
  Section 4.14 Controlled
  Accumulation Period

  	
   

  
	
  Section 4.15 Determination of
  LIBOR

  	
   

  
	
   

  	
   

  
	
  ARTICLE V

  	
   

  
	
   

  	
   

  
	
  Distributions
  and Reports to Series 2005-A Noteholders

  	
   

  
	
   

  	
   

  
	
  Section 5.01 Distributions

  	
   

  
	
  Section 5.02 Reports and
  Statements to Series 2005-A Noteholders

  	
   

  

 

i

 

	
  ARTICLE VI

  	
   

  
	
   

  	
   

  
	
  Early Amortization Events

  	
   

  
	
   

  	
   

  
	
  Section 6.01 Additional Early
  Amortization Events

  	
   

  
	
  Section 6.02 Recommencement of
  the Revolving Period

  	
   

  
	
   

  	
   

  
	
  ARTICLE VII

  	
   

  
	
   

  	
   

  
	
  Optional Purchase

  	
   

  
	
   

  	
   

  
	
  Section 7.01 Optional Purchase

  	
   

  
	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  
	
   

  	
   

  
	
  Final Distributions

  	
   

  
	
   

  	
   

  
	
  Section 8.01 Acquisition of
  Notes Pursuant to Section 10.1 of the Indenture; Distributions pursuant
  to Section 7.01 of this Series Supplement or Section 5.4 of
  the Indenture

  	
   

  
	
  Section 8.02 Series Termination

  	
   

  
	
   

  	
   

  
	
  ARTICLE IX

  	
   

  
	
   

  	
   

  
	
  Other Series Provisions

  	
   

  
	
   

  	
   

  
	
  Section 9.01 Additional
  Covenants

  	
   

  
	
  Section 9.02 Tax Treatment of
  the Series 2005-A Notes

  	
   

  
	
  Section 9.03 Supplemental
  Indentures

  	
   

  
	
  Section 9.04 Waiver of Past
  Defaults

  	
   

  
	
  Section 9.05 Restrictions on
  Transfer

  	
   

  
	
   

  	
   

  
	
  ARTICLE X

  	
   

  
	
   

  	
   

  
	
  Miscellaneous Provisions

  	
   

  
	
   

  	
   

  
	
  Section 10.01 Ratification of
  Agreement

  	
   

  
	
  Section 10.02 Counterparts

  	
   

  
	
  Section 10.03 GOVERNING LAW

  	
   

  

 

ii

 

EXHIBITS

 

	
  Exhibit A-1

  	
  Form of Class A Note

  
	
  Exhibit A-2

  	
  Form of Class B Note

  
	
  Exhibit A-3

  	
  Form of Class C Note

  
	
  Exhibit B

  	
  [Reserved]

  
	
  Exhibit C

  	
  Form of Regulation S Certificate

  
	
  Exhibit D

  	
  Form of Regulation S Book-Entry Note to
  U.S. Restricted Book-Entry Note Transfer Certificate

  
	
  Exhibit E

  	
  Form of U.S. Restricted Book-Entry Note
  to Regulation S Book-Entry Note Transfer Certificate

  

 

iii

 

SERIES SUPPLEMENT,
dated as of May 26, 2005 (as amended from time to time, this “Series Supplement”) between TEXTRON
FINANCIAL FLOORPLAN MASTER NOTE TRUST (the “Issuer”
or the “Trust”), TEXTRON FINANCIAL
CORPORATION (the “Servicer”) and THE BANK
OF NEW YORK, as Indenture Trustee (as indenture trustee and not in its
individual capacity, the “Indenture Trustee”)
to the Amended and Restated Indenture, dated as of the date hereof, between the
Issuer and the Indenture Trustee (as amended, restated, supplemented or
otherwise modified from time to time, the “Indenture”).

 

Section 2.1 of the Indenture provides that the Issuer may from
time to time issue one or more new Series of Investor Interests.  The Principal Terms of any new Series of
Investor Interests are to be set forth in a Series Supplement.  Pursuant to this Series Supplement, the
Issuer and the Indenture Trustee shall create the Series 2005-A
Notes and specify the Principal Terms thereof. 
The Servicer is acknowledging this Series Supplement to agree to
the terms hereof applicable to the Servicer. 
The parties hereto acknowledge that the Issuer is not a separate entity
for tax purposes and that the overall transaction is being structured so that
the Class A Notes and Class B Notes, if held by Persons other than
the Seller, will be characterized as debt for federal income tax purposes.

 

ARTICLE I

 

Definitions

 

Section 1.01  Definitions.  (a)  Whenever used in this Series Supplement,
the following words and phrases have the following meanings.

 

“Agreement” means the Amended and Restated Sale
and Servicing Agreement, dated as of the date hereof, among Textron Financial
Corporation, as Servicer, Textron Receivables Corporation III, as Seller, the
Indenture Trustee and Textron Financial Floorplan Master Note Trust, as
amended, restated, supplemented or otherwise modified from time to time.

 

“Allocable Defaulted Amount” means for any
Collection Period, the product of (a) the average daily Series 2005-A
Allocation Percentage for that Collection Period and (b) the Defaulted
Amount for that Collection Period (after giving effect to any allocation of a
portion of the Defaulted Amount to the Residual Interestholder pursuant to Section 4.2
of the Agreement).

 

“Allocable Miscellaneous Payments” means, with
respect to any day, an amount equal to the product of (i) the Series 2005-A
Allocation Percentage for such day and (ii) Miscellaneous Payments on such
day.

 

“Allocable Non-Principal Collections” means, with
respect to any day, an amount equal to the product of (i) the Series 2005-A
Allocation Percentage for such day and (ii) the aggregate amount of Non-Principal
Collections deposited in the Collection Account on such day (after giving
effect to any allocation of a portion of Non-Principal Collections to the
Residual Interestholder pursuant to Section 4.2 of the Agreement).

 

“Allocable Principal Collections” means, with
respect to any day, an amount equal to the product of (i) the Series 2005-A
Allocation Percentage for such day and (ii) the aggregate amount of
Principal Collections deposited in the Collection Account on such day (after
giving effect to any allocation of a portion of Principal Collections to the
Residual Interestholder pursuant to Section 4.2 of the Agreement).

 

“Available Investor Non-Principal Collections”
means, with respect to any Payment Date, the Investor Non-Principal Collections
for the related Collection Period.

 

 

“Available Investor Principal Collections” means,
with respect to any Payment Date, the sum of the Investor Principal Collections
for the related Collection Period and the amount, if any, of Available Investor
Non-Principal Collections and Investment Proceeds allocated to cover the
Investor Defaulted Amount, Investor Dilution Amount or to reverse Investor
Charge-Offs on such Payment Date.

 

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

 

“Base Rate”
means, with respect to any Determination Date, a fraction (expressed as a
percentage (annualized)), the numerator of which is the sum of (a) the
amount of interest on the Class A Notes and the Class B Notes due on
the related Payment Date plus (b) the Investor Monthly Servicing Fee due
on the related Payment Date, and the denominator of which is the Outstanding
Amount of the Series 2005-A Notes as of the beginning of the related
Collection Period.

 

“Calculation Agent” means the Indenture Trustee or
any other Calculation Agent selected by the Residual Interestholder which is
reasonably acceptable to the Indenture Trustee.

 

“Class A Additional Interest” has the meaning
specified in Section 4.02(a).

 

“Class A
Interest Rate” means, with respect to any Interest Period, LIBOR as
determined on the LIBOR Determination Date plus 0.12% per annum; provided that
with respect to the first Interest Period following the Closing Date, the Class A
Interest Rate shall be 3.27655%.

 

“Class A Interest Shortfall” has the meaning
specified in Section 4.02(a).

 

“Class A Monthly Interest” has the meaning
specified in Section 4.02(a).

 

“Class A Note” has the meaning specified in Section 2.01(a).

 

“Class A Noteholder” means any Holder of a Class A
Note, and “Class A Noteholders” means the Holders of the Class A
Notes.

 

“Class A
Note Principal Balance” means, on any date of determination, an amount
equal to (a) $718,000,000, minus (b) the aggregate amount of
principal payments made to the Class A Noteholders on or prior to such
date.

 

“Class B Additional Interest” has the meaning
specified in Section 4.02(b).

 

“Class B
Interest Rate” means, with respect to any Interest Period, LIBOR as
determined on the LIBOR Determination Date plus 0.32% per annum; provided that
with respect to the first Interest Period following the Closing Date, the Class B
Interest Rate shall be 3.47655%.

 

“Class B Interest Shortfall” has the meaning
specified in Section 4.02(b).

 

“Class B Monthly Interest” has the meaning
specified in Section 4.02(b).

 

“Class B Note” has the meaning specified in Section 2.01(a).

 

2

 

“Class B Noteholder” means any Holder of a Class B
Note, and “Class B Noteholders” means
the Holders of the Class B Notes.

 

“Class B
Note Principal Balance” means, on any date of determination, an amount
equal to (a) $32,000,000, minus (b) the aggregate amount of principal
payments made to the Class B Noteholders on or prior to such date.

 

“Class C Note” has the meaning specified in Section 2.01(a).

 

“Class C Noteholder” means any Holder of a Class C
Note, and “Class C Noteholders” means
the Holders of the Class C Notes.

 

“Class C
Note Principal Balance” means, on any date of determination, an amount
equal to (a) $52,250,000, minus (b) the aggregate amount of principal
payments made to the Class C Noteholders on or prior to such date.

 

“Clearstream,
Luxembourg” means Clearstream Banking, société anonyme.

 

“Closing Date”
means May 26, 2005.

 

“Control
Investors” means (i) Class A Noteholders and Class B
Noteholders representing at least a majority of the Outstanding Amount of the Class A
Notes and Class B Notes, voting together, and (ii) from and after the
payment in full of the Class A Notes and the Class B Notes, Class C
Noteholders representing at least a majority of the Outstanding Amount of the Class C
Notes.  For purposes of clause (i) above,
any Class A Notes or Class B Notes owned or beneficially owned by the
Seller or its Affiliates will be disregarded and deemed not Outstanding.

 

“Controlled
Accumulation Date” means October 1, 2007, subject to adjustment
pursuant to Section 4.14.

 

“Controlled
Accumulation Period” means, unless an Early Amortization Event shall have
occurred prior thereto, the period commencing at the opening of business on the
Controlled Accumulation Date and ending on the earliest to occur of (a) the
commencement of the Early Amortization Period, (b) the Series 2005-A
Stated Maturity Date, and (c) the date on which the Outstanding Amount of
the Series 2005-A Notes has been reduced to zero.

 

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

 

“Distribution
Compliance Period” has the meaning specified in Section 2.03.

 

“Early Amortization
Event” means any Early Amortization Event specified in Section 5.17
of the Indenture, together with any additional Early Amortization Event
specified in Section 6.01 of this Series Supplement.

 

“Early Amortization Period” means a period
beginning on the date on which an Early Amortization Event specified in Section 5.17
of the Indenture or Section 6.01 of this Series Supplement
shall have occurred with respect to the Series 2005-A Notes and
terminating on the earliest of: (a) the payment in full of the outstanding
principal amount of and all accrued and unpaid interest on the Series 2005-A
Notes; and (b) the Series 2005-A Stated Maturity Date.  Notwithstanding anything to the contrary in
this Series Supplement, an Early Amortization Period that commences before
the scheduled end of the

 

3

 

Revolving Period shall be terminated, and the Revolving Period may
recommence, if the Rating Agency Condition is satisfied and the Control Investors
consent thereto.

 

“Enhancement
Trigger Event” means the occurrence of any of the following event(s): (a)(i) on
any Determination Date, the average of the Monthly Payment Rates for the three
preceding Collection Periods is less than 14% for the Determination Dates
falling in February through May, less than 16% for the Determination Date
falling in June, less than 18% for the Determination Dates falling in July through
October or less than 16% for the Determination Dates falling in November through
January or (ii) on any Determination Date, the Portfolio Yield is
less than the sum of the Base Rate plus 1.00% or (b) on any Determination
Date, the average of the Monthly Payment Rates for the three preceding
Collection Periods is less than 13% for the Determination Dates falling in February through
May, less than 15% for the Determination Date falling in June, less than 17%
for the Determination Dates falling in July through October or less
than 15% for the Determination Dates falling in November through January.

 

“Enhancement
Trigger Period” means a period beginning on the date on which an
Enhancement Trigger Event shall have occurred and terminating on the date on
which no Enhancement Trigger Event shall be continuing; provided that if
the Early Amortization Period has commenced during the continuance of an
Enhancement Trigger Period, such Enhancement Trigger Period shall be deemed to
be continuing during the Early Amortization Period.

 

“Euroclear”
means Euroclear Bank S.A./N.V., as operator of the Euroclear System.

 

“Expected
Principal Payment Date” means the Payment Date in May 2008.

 

“Final Payment Date” means the earlier of (i) the
Series 2005-A Stated Maturity Date and (ii) the first Payment
Date on which, after giving effect to all payments to be made on that Payment
Date, the outstanding principal amount of the Series 2005-A Notes
will be paid in full.

 

“Fixed Allocation Percentage” means, with respect
to any day, the percentage equivalent (which percentage shall never exceed
100%) of a fraction, the numerator of which is the Invested Amount as of the
last day of the Revolving Period, and the denominator of which is the product
of the Series 2005-A Allocation Percentage for the day for which the
Fixed Allocation Percentage is being calculated times the greater of (A) the
sum of (x) the Net Pool Balance as of the most recent Reset Date and (y)
the Series 2005-A Excess Funding Amount at the end of such most
recent Reset Date and (B) the sum of the numerators used to calculate the
allocation percentage for all outstanding Series of Investor Interests as
of the date of determination.

 

“Floating Allocation Percentage” means, with
respect to any day, the percentage equivalent (which percentage shall never
exceed 100%) of a fraction, the numerator of which is the Invested Amount as of
the most recent Reset Date and the denominator of which is the product of the Series 2005-A
Allocation Percentage for the day for which the Floating Allocation Percentage
is being calculated times the greater of (A) the sum of (x) the Net
Pool Balance as of the most recent Reset Date and (y) the Excess Funding Amount
at the end of such most recent Reset Date and (B) the sum of the
numerators used to calculate the allocation percentage for all outstanding Series of
Investor Interests as of the date of determination.

 

“Group One”
means Series 2005-A and each other outstanding Series hereafter
specified in the related Series Supplement to be included in Group One.

 

“Indenture” has the meaning set forth in the
recitals to this Series Supplement.

 

4

 

“Indenture Trustee” has the meaning set forth in
the recitals to this Series Supplement.

 

“Initial Invested Amount” means, with respect to
the Series 2005-A Notes, $802,250,000, $718,000,000 of which is the
Initial Invested Amount of the Class A Notes, $32,000,000 of which is the
Initial Invested Amount of the Class B Notes and $52,250,000 of which is
the Initial Invested Amount of the Class C Notes.

 

“Initial Payment Date” means July 13, 2005.

 

“Initial
Purchasers” means, collectively, Banc of America Securities LLC, Citigroup
Global Markets Inc., J.P. Morgan Securities Inc., Barclays Capital Inc. and
HSBC Securities (USA) Inc.

 

“Interest Period” means, for any Payment Date, the
period from and including the Payment Date preceding such Payment Date to but
excluding such Payment Date (or in the case of the Initial Payment Date, the
period from and including the Closing Date to but excluding the Initial Payment
Date).

 

“Interest Rate”
means, with respect to the Class A Notes, the Class A Interest Rate
and with respect to the Class B Notes, the Class B Interest Rate.

 

“Invested Amount” means, when used with respect to
any date, an amount equal to (a) the Initial Invested Amount of the Series 2005-A
Notes, minus (b) the amount, without
duplication, of principal payments made to Series 2005-A Noteholders
prior to such date, minus (c) the
excess, if any, of the aggregate amount of Investor Charge-Offs prior to such
date over Investor Charge-Offs reimbursed pursuant to Section 4.05
prior to such date, provided that the Invested Amount shall in no event be less
than zero.

 

“Investment Proceeds” means, with respect to any
Determination Date and any Payment Date, an amount equal to all interest and
other investment earnings (net of losses and investment expenses) on funds held
in the Principal Account and the Reserve Account and the Series 2005-A
Allocation Percentage of the interest and other investment earnings (net of
losses and investment expenses) on funds held in the Collection Account and the
Excess Funding Account credited to the Collection Account pursuant to Section 4.1
of the Agreement.

 

“Investor Charge-Offs” has the meaning specified
in Section 4.07.

 

“Investor Defaulted Amount” means, with respect to
any Payment Date, an amount equal to the product of (a) the Allocable
Defaulted Amount for the related Collection Period and (b) the average
daily Floating Allocation Percentage for the related Collection Period.

 

“Investor Dilution Amount” means, with respect to
any Payment Date, an amount equal to the average daily Series 2005-A
Allocation Percentage for the related Collection Period of any Dilution Amount.

 

“Investor Monthly Servicing Fee” has the meaning
specified in Section 3.01.

 

“Investor Non-Principal Collections” means, with
respect to any Deposit Date, an amount equal to the sum of (a) the product
of the Floating Allocation Percentage and Allocable Non-Principal Collections
for such day plus (b) any Allocable Miscellaneous Payments that are treated
as Investor Non-Principal Collections pursuant to Section 4.01(e).

 

5

 

“Investor Principal Collections” means, with
respect to any Deposit Date, (i) falling in the Revolving Period, the sum
of (a) the product of the Floating Allocation Percentage and Allocable
Principal Collections for such day plus (b) any Allocable Miscellaneous
Payments that are treated as Investor Principal Collections for such day and (ii) occurring
after the last day of the Revolving Period, the sum of (a) the product of
the Fixed Allocation Percentage and Allocable Principal Collections for such
day plus (b) any Allocable Miscellaneous Payments that are treated as
Investor Principal Collections for such day.

 

“Issuer” has the meaning set forth in the recitals
to this Series Supplement.

 

“LIBOR”
means, for any Interest Period, the London interbank offered rate for one-month
United States dollar deposits determined by The Bank of New York, as Paying
Agent, for each Interest Period in accordance with the provisions of Section 4.15.

 

“LIBOR
Determination Date” means (i) with respect to the first Interest
Period, the second London Business Day prior to the Closing Date, and (ii) with
respect to any Interest Period thereafter, the second London Business Day prior
to the commencement of such Interest Period.

 

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

 

“Monthly Payment Rate” means, for any Collection Period,
the percentage derived from dividing (a) Principal Collections for such
Collection Period minus Principal Collections allocated to the Residual
Interestholder pursuant to Sections 4.2(f), (g) and (h) of the
Agreement by (b) the beginning Net Pool Balance for such Collection
Period.

 

“Monthly Principal” has the meaning specified in Section 4.03.

 

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

 

(A) the
lesser of (i) the excess of (x) the amount needed to make the payments
described in Sections 4.05(a)(i) and (ii) over (y) the
amount of Non-Principal Collections, Investment Proceeds and amounts withdrawn
from the Reserve Account that are available to cover the payments described in Sections
4.05(a)(i) and (ii), and (ii) the excess, if any, of (x)
$84,250,000 over (y) the amount of unreimbursed Investor Charge-Offs after
giving effect to Investor Charge-Offs for the related Collection Period; and

 

(B) the
lesser of (i) the excess of (x) the amount needed to make the payments
described in Section 4.05(a)(iii) over (y) the amount of
Non-Principal Collections, Investment Proceeds and amounts withdrawn from the
Reserve Account that are available to cover the payments described in Section 4.05(a)(iii) and
(ii) the excess, if any, of (x) $52,250,000 over (y) the amount of
unreimbursed Investor Charge-Offs after giving effect to Investor Charge-Offs
for the related Collection Period and after giving effect to the reallocation
of Principal Collections to make the payments described in Sections 4.05(a)(i) and
(ii) in respect of the then-current Payment Date.

 

“Monthly Servicing Fee”
has the meaning specified in Section 3.2 of the Agreement.

 

“Note Purchase
Agreement” means the Purchase Agreement, dated as of May 19, 2005, by
and among the Issuer, TFC and Banc of America Securities LLC, as representative
of the Initial Purchasers.

 

6

 

“Offering
Memorandum” means the confidential Offering Memorandum dated May 19,
2005 (including any exhibits, amendments or supplements thereto) relating to
the Series 2005-A Notes.

 

“Payment Date Statement” has the meaning specified
in Section 5.02.

 

“Portfolio
Yield” means, with respect to any Determination Date, a fraction (expressed
as a percentage (annualized)), the numerator of which is an amount equal to
Non-Principal Collections for the related Collection Period, and the
denominator of which is the Invested Amount less amounts on deposit in the
Principal Account and the Series 2005-A Excess Funding Amount, in
each case as of the beginning of the related Collection Period.

 

“Principal
Account” means the account designated as such, established and maintained
pursuant to Section 4.04.

 

“Qualified
Institutional Buyer” has the meaning ascribed to that term in Rule 144A.

 

“Reallocated
Principal Collections” means, for any Payment Date, Investor Principal
Collections applied in accordance with Section 4.09 in an amount
not to exceed the Monthly Principal Reallocation Amount for the related
Collection Period.

 

“Record Date” means, with respect to any Payment
Date, the close of business on the last day of the Collection Period preceding
such Payment Date.

 

“Redemption Price” means, with respect to any
Payment Date, the sum of (a) the aggregate Outstanding Amount of the Series 2005-A
Notes to be redeemed on the Determination Date preceding the Payment Date on
which such redemption is to be made, (b) accrued and unpaid interest on
the unpaid balance of the Series 2005-A Notes (calculated on the
basis of the Outstanding Amount of each Class of the Series 2005-A
Notes at the Interest Rate as in effect during the applicable Interest Periods
through the day preceding such Payment Date), (c) without duplication with
respect to any amounts due under clause (b) of this definition, any Class A
Additional Interest with respect to the Class A Notes to be repurchased
and any Class B Additional Interest with respect to the Class B Notes
to be repurchased, (d) the aggregate amount of unreimbursed Investor Charge-Offs
and Investor Defaulted Amounts with respect to the Series 2005-A
Notes to be redeemed and (e) accrued and unpaid Investor Monthly Servicing
Fees.

 

“Regulation
S” means Regulation S under the Securities Act.

 

“Regulation
S Book-Entry Note” means, collectively, the Regulation S Permanent
Book-Entry Note and the Regulation S Temporary Book-Entry Note.

 

“Regulation
S Permanent Book-Entry Note” has the meaning specified in Section 2.03.

 

“Regulation S
Temporary Book-Entry Note” has the meaning specified in Section 2.02(e).

 

“Required
Reserve Account Amount” means, for any day, an amount equal to (a) the
product of (i) the Required Reserve Account Percentage and (ii) the
Initial Invested Amount or (b) any other amount designated by the Seller;
provided, however, that if such designation is of a lesser amount, the Seller
shall (i) provide the Indenture Trustee with evidence that the Rating
Agency Condition shall have been satisfied and (ii) deliver to the
Indenture Trustee a certificate of an Authorized Officer to the effect that,
based on the facts known to such officer at such time, in the reasonable belief
of the Seller, such designation will not cause an Early Amortization Event to
occur with respect to Series 2005-A.

 

7

 

“Required
Reserve Account Percentage” means (i) 0% so long as an Enhancement
Trigger Period has not occurred and (ii) if an Enhancement Trigger Event
has occurred, the Required Reserve Account Percentage shall be the aggregate of
(i) 0.75%, if an Enhancement Trigger Event under clause (a)(i) of the
definition thereof has occurred, (ii) 1.00%, if an Enhancement Trigger
Event under clause (a)(ii) of the definition thereof has occurred, plus (iii) 1.00%,
if an Enhancement Trigger Event under clause (b) of the definition thereof
has occurred.

 

“Required Residual Percentage” means, with respect
to Series 2005-A, 103%; provided that until, September 13,
2005, such percentage shall be 106%.

 

“Reserve
Account” means the account designated as such, established and maintained
pursuant to Section 4.04.

 

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

 

“Reset Date” means (a) the last day of a
Collection Period, (b) any Addition Date, (c) any date of issuance of
an additional Series of Investor Interests (including the Closing Date) or
any date of issuance of additional Investor Interests of any outstanding Series occurs
or (d) any Removal Commencement Date.

 

“Residual Interestholder” means the holder of the
Residual Interest.

 

“Residual Interestholder’s Percentage” means, with
respect to any day, a percentage (which percentage shall never be less than 0%
nor more than 100%) equal to 100% minus (a) the Floating Allocation
Percentage on such day, when used with respect to Allocable Non-Principal
Collections and Allocable Defaulted Amounts and with respect to Allocable
Principal Collections during the Revolving Period, and (b) the Fixed
Allocation Percentage on such day, when used with respect to Allocable
Principal Collections during the Controlled Accumulation Period or an Early
Amortization Period.

 

“Revolving Period” means the period beginning on
the Closing Date and ending at the close of business on the day immediately
preceding the earlier of the day the Controlled Accumulation Period commences
or the day the Early Amortization Period commences.

 

“Rule 144A”
means Rule 144A under the Securities Act.

 

“Securities Act”
means the Securities Act of 1933, as amended.

 

“Series 2005-A” means the Series 2005-A
Notes, the Principal Terms of which are specified in this Series Supplement.

 

“Series 2005-A Allocation Percentage”
means the Series Allocation Percentage with respect to Series 2005-A.

 

“Series 2005-A Excess Funding Amount”
means, with respect to the Series 2005-A Notes, for any day, the
product of (a) the Series 2005-A Allocation Percentage on such
day and (b) the amount on deposit in the Excess Funding Account (other
than Investment Proceeds) on such day.

 

“Series 2005-A
Excess Non-Principal Collections” means Excess Non-Principal Collections
allocated from other Series in Group One to Series 2005-A
pursuant to Section 4.3 of the Sale and Servicing Agreement.

 

8

 

“Series 2005-A Noteholder” means the
Person in whose name a Series 2005-A Note is registered in the Note
Register.

 

“Series 2005-A Notes” has the meaning
specified in Section 2.01(a).

 

“Series 2005-A Non-Principal Shortfall”
means, with respect to any Payment Date, an amount equal to the excess, if any,
of (a) the full amount required to be paid, without duplication, pursuant
to Sections 4.05(a)(i) through (vii) on such
Payment Date over (b) the Available
Investor Non-Principal Collections (excluding any portion thereof attributable
to Excess Non-Principal Collections) and Investment Proceeds with respect to
such Payment Date.

 

“Series 2005-A Principal Shortfall”
means, with respect to any Payment Date, an amount equal to the excess, if any,
of (a) the full amount required to be paid, without duplication, pursuant
to Sections 4.05(a)(i) through (iii) on such Payment
Date over (b) the Available Investor Principal Collections with
respect to such Payment Date (excluding any portion thereof attributable to
Reallocated Principal Collections).

 

“Series 2005-A Stated Maturity Date”
means the Payment Date in May 2010.

 

“Series Supplement” has the meaning set forth
in the recitals to this Series Supplement.

 

“Servicer” has the meaning set forth in the
recitals to this Series Supplement.

 

“Termination
Date” means, with respect to Series 2005-A, the day after the
Payment Date falling in the 2nd calendar month after the Series 2005-A
Stated Maturity Date.

 

“Transferable
Notes” has the meaning specified in Section 9.05.

 

“Trust” has the meaning set forth in the recitals
to this Series Supplement.

 

“U.S.
Person” has the meaning specified in Regulation S.

 

“U.S.
Resale Restriction Termination Date” has the meaning specified in Section 9.05(c)(3).

 

“U.S.
Restricted Book-Entry Note” has the meaning specified in Section 2.02(d).

 

(b)                                 Notwithstanding
anything to the contrary in this Series Supplement or the other Documents,
the term “Rating Agency” whenever used in
this Series Supplement or such other Basic Documents shall mean with
respect to the assignment of a rating, Moody’s and Standard & Poor’s.  As used in this Series Supplement and
the other Basic Documents with respect to Series 2005-A, “highest
investment category” means (i) in the case of Standard & Poor’s,
A-1+ or AAA, as applicable, and (ii) in the case of Moody’s, P-1
or Aaa, as applicable.

 

(c)                                  All
capitalized terms used herein and not otherwise defined herein have the
meanings ascribed to them in the Agreement. 
The definitions in this Section 2.01 are applicable to the
singular as well as to the plural forms of such terms and to the masculine as
well as to the feminine and neuter genders of such terms.

 

(d)                                 The
words “hereof”, “herein” and “hereunder” and words of similar import when used
in this Series Supplement shall refer to this Series Supplement as a whole
and not to any particular provision of this Series Supplement; references to
any Article, Section or Exhibit are

 

9

 

references to Articles, Sections and Exhibits in or to this Series Supplement
unless otherwise specified; and the term “including” means “including without
limitation”.

 

ARTICLE II

 

Creation of the Series 2005-A
Notes

 

Section 2.01  Designation.  (a)  There is hereby created a Series of
Investor Interests to be issued pursuant to the Indenture and this Series Supplement
and shall be comprised of three classes: 
the Class A Floating Rate Term Notes, Series 2005-A (the
“Class A Notes”); the Class B Floating Rate Term Notes, Series 2005-A
(the “Class B Notes”); and the Class C Principal Only Term
Notes, Series 2005-A (the “Class C Notes”; and together
with the Class A Notes and the Class B Notes, the “Series 2005-A
Notes”.

 

(b)                                 If
any term or provision contained herein shall conflict with or be inconsistent
with any term or provision contained in the Indenture, the terms and provisions
of this Series Supplement shall govern.

 

(c)                                  As
described in Section 2.15 of the Indenture, the Series 2005-A
Notes shall be Unregistered Interests.

 

(d)                                 Series 2005-A
shall be included in Group One and shall be a Principal Sharing Series.  Series 2005-A shall be an Excess
Allocation Series with respect to Group One only. Series 2005-A
shall not be subordinated to any other Series.

 

Section 2.02  Form, Execution,
Authentication and Delivery of Series 2005-A Notes.

 

(a)                                  The
Issuer shall execute and issue and the Indenture Trustee shall authenticate and
deliver the Class A Note with a principal amount of $718,000,000, the Class B
Note with a principal amount of $32,000,000, and the Class C Note with a
principal amount of $52,250,000.  The
terms of the Series 2005-A Notes set forth on the Exhibits hereto
are part of the terms of this Series Supplement and the Indenture.

 

(b)                                 Each
Class A Note and Class B Note shall be issued in minimum denominations
of $500,000 and integral multiples of $1,000 in excess thereof and the Class C
Notes shall be issued in minimum denominations of $1,000.

 

(c)                                  The
Class A Notes and the Class B Notes shall be Book-Entry Interests,
and shall be issued to Cede & Co., as nominee of the Depository,
pursuant to a Depository Agreement.  The
Depository shall be the initial “Clearing Agency” for purposes of the
Indenture.

 

(d)                                 The
Class A Notes and the Class B Notes that are not sold in reliance on
Regulation S shall be offered and sold in reliance on the exemption from
registration under Rule 144A to Qualified Institutional Buyers or “QIBs”,
and to subsequent transferees who are also QIBs and, except as set forth in Section 2.12
of the Indenture, shall be issued in the form of one or more permanent
Book-Entry Interests in definitive, fully registered form without interest
coupons with the applicable legends set forth in Exhibits A-1 and A-2
hereto, respectively, added to the form of such Book-Entry Interests (each, a “U.S.
Restricted Book-Entry Note”), which shall be registered in the name of the
nominee of the Clearing Agency and deposited with Indenture Trustee, as
custodian for the Depository, duly executed by the Issuer and authenticated by
the Indenture Trustee as hereinafter provided. 
The aggregate principal amount of the U.S. Restricted Book-Entry Notes
may from time to time be increased or decreased by adjustments

 

10

 

made on the records of Indenture Trustee or the Depository or its
nominee, as the case may be, as hereinafter provided.

 

(e)                                  The
Class A Notes and the Class B Notes sold in offshore transactions in
reliance on Regulation S, except as set forth in Section 2.12 of the
Indenture, shall be represented initially by one or more temporary Book-Entry
Interests in definitive, fully registered form without interest coupons with
the applicable legends set forth in Exhibits A-1 and A-2
hereto, respectively, added to the form of such Book-Entry Interests (each, a “Regulation
S Temporary Book-Entry Note”) to be held by the Clearing Agency and
registered in the name of a nominee of the Clearing Agency or its custodian for
the respective accounts of Euroclear and Clearstream, Luxembourg, duly executed
by the Issuer and authenticated by the Indenture Trustee as hereinafter
provided.  The aggregate principal amount
of the Regulation S Temporary Book-Entry Notes may from time to time be
increased or decreased by adjustments made on the records of Indenture Trustee
or the Clearing Agency or its nominee, as the case may be, as hereinafter
provided.

 

Section 2.03  Regulation S Permanent Book-Entry Notes.

 

Any interest in a Class A Note or Class B
Note evidenced by a Regulation S Temporary Book-Entry Note is exchangeable for
an interest in a permanent Book-Entry Interest in fully registered, global
form, without interest coupons (a “Regulation S Permanent Book-Entry Note”),
upon the later of (i) the expiration of the Distribution Compliance Period
and (ii) the furnishing of a certificate, substantially in the form of Exhibit C
attached hereto, certifying that the beneficial owner of the Temporary
Regulation S Book-Entry Note is a not a U.S. person or, if such beneficial
owner is a U.S. person, that it is a QIB.

 

The “Distribution Compliance Period” will begin on the
Closing Date and end 40 days later.

 

Until the later of the expiration of the Distribution
Compliance Period and the provision of the certificate in the form of Exhibit C
hereto, beneficial interests in a Regulation S Temporary Book-Entry Note may be
held only through Euroclear or Clearstream, Luxembourg (as indirect
participants in the Depository) or another agent member of Euroclear or
Clearstream, Luxembourg acting for or on behalf of them.

 

Section 2.04  Class C Notes; Transfer Restrictions.  The Class C Notes shall be represented
by notes in substantially the form set forth in Exhibit A-3
hereto with such appropriate insertions, omissions, substitutions and other
variations as are required or permitted by the Indenture.  Neither the Class C Notes nor any
interest therein may be sold, pledged, participated, transferred, disposed of
or otherwise alienated (each, a “Transfer”), and the Registrar will not
recognize any Transfer or purported Transfer of a Class C Note, unless
prior to such Transfer or purported Transfer the Indenture Trustee and the
Registrar have received an Opinion of Counsel to the effect that, for federal
income tax purposes, such Transfer will not cause the Issuer to be
characterized as an association or publicly traded partnership as a
corporation.  Any Transfer or purported
Transfer of a Class C Note in violation of the preceding sentence shall be
void ab initio and of no effect.

 

11

 

ARTICLE III

 

Servicing Fee

 

Section 3.01  Servicing
Compensation.  The Monthly
Servicing Fee with respect to Series 2005-A (the “Investor Monthly Servicing Fee”) shall be payable
to the Servicer, in arrears, on each Payment Date in respect of any Collection
Period (or portion thereof) occurring prior to the earlier of the first Payment
Date following the Series 2005-A Stated Maturity Date and the first
Payment Date on which the Invested Amount is permanently reduced to zero, in an
amount equal to the product of (a) the Servicing Fee Rate, (b) the
Invested Amount as of the last day of such Collection Period and (c) a
fraction, the numerator of which is the actual number of days elapsed in the
related Collection Period and the denominator of which is 360; provided,
however, that with respect to the first Payment Date, the Investor
Monthly Servicing Fee shall be equal to the product of (a) the Servicing
Fee Rate, (b) Invested Amount as of the Closing Date and (c) a
fraction, the numerator of which is the number of days from and including the
Closing Date to and including the last day of the Collection Period immediately
preceding the first Payment Date occurs and the denominator of which is
360.  The Investor Monthly Servicing Fee
shall be payable to the Servicer solely to the extent amounts are available for
distribution therefor in accordance with the terms of this Series Supplement.

 

ARTICLE IV

 

Rights of Series 2005-A
Noteholders and

Allocation and Application of Collections

 

Section 4.01  Daily Allocations;
Payments to Residual Interestholder. 
On each Deposit Date, Non-Principal Collections, Principal Collections
and Miscellaneous Payments will be allocated to Series 2005-A based
on the Series 2005-A Allocation Percentage and shall be further
allocated and distributed as set forth in this Section 4.01.

 

(a)                                  Non-Principal Collections.  On each Deposit Date, the Servicer shall
allocate to Series 2005-A and retain in the Collection Account
(until applied as provided herein) an amount equal to the Floating Allocation
Percentage then in effect of Allocable Non-Principal Collections deposited in
the Collection Account for such Deposit Date.

 

(b)                                 Principal
Collections — Revolving Period.  On
each Deposit Date during the Revolving Period, the Servicer shall cause an
amount equal to the Investor Principal Collections for such Deposit Date to be
allocated to Series 2005-A and such amount shall be applied as
provided in Section 4.05(b) and first, an amount equal to the
Reallocated Principal Collections for the related Payment Date shall be made
available on that Payment Date for application in accordance with Section 4.09,
second, if any other Principal Sharing Series is outstanding and in its
accumulation period or amortization period, shall be retained in the Principal
Account for application, to the extent necessary, as Excess Principal
Collections to other Principal Sharing Series on the related Payment Date,
third, shall be deposited in the Excess Funding Account to the extent necessary
so that the Net Pool Balance is not less than the Required Net Pool Balance,
and fourth, shall be released to the Residual Interestholder.

 

(c)                                  Principal
Collections — Controlled Accumulation Period.  On each Deposit Date during the Controlled
Accumulation Period, the Servicer shall cause an amount equal to the Investor
Principal Collections for such Deposit Date to be allocated to Series 2005-A
for application as provided in Section 4.05(c) and first, an
amount equal to the Reallocated Principal Collections for the related Payment
Date shall be made available on that Payment Date for application in accordance
with Section 4.09, second, if any other Principal Sharing Series is
outstanding and in its accumulation period or amortization period, shall be
retained in the Principal Account for application, to the extent necessary, as
Excess Principal Collections to other Principal Sharing Series on the
related Payment Date, third, shall be deposited in the Excess

 

12

 

Funding Account to the extent necessary so that the Net Pool Balance is
not less than the Required Net Pool Balance, and fourth, shall be released to
the Residual Interestholder.

 

(d)                                 Principal
Collections — Early Amortization Period. 
On each Deposit Date during the Early Amortization Period, the Servicer
shall cause an amount equal to the Investor Principal Collections for such
Deposit Date to be allocated to Series 2005-A for application as
provided in Section 4.05(c) and first, an amount equal to the
Reallocated Principal Collections for the related Payment Date shall be made
available on that Payment Date for application in accordance with Section 4.09,
second, if any other Principal Sharing Series is outstanding and in its
accumulation period or amortization period, shall be retained in the Principal
Account for application, to the extent necessary, as Excess Principal
Collections to other Principal Sharing Series on the related Payment Date,
third, shall be deposited in the Excess Funding Account to the extent necessary
so that the Net Pool Balance is not less than the Required Net Pool Balance,
and fourth, shall be released to the Residual Interestholder.

 

(e)                                  Miscellaneous Payments.  On each Deposit Date, the Servicer shall
treat any Allocable Miscellaneous Payments as Investor Principal Collections
and apply them as provided in Section 4.01(b), 4.01(c) or
4.01(d), as appropriate, except that any Allocable Miscellaneous
Payments consisting of (i) Adjustment Payments that were paid after their
due date as per Section 3.9(a) of the Agreement, if the amount of
such overdue Adjustment Payments has been included in the Investor Dilution
Amount for any prior Collection Period and (ii) the interest portion of
Transfer Deposit Amounts resulting from the Servicer’s purchase of Receivables
pursuant to Section 3.3(d) of the Agreement, shall, in each case, be
treated as Allocable Non-Principal Collections and applied as provided in Section 4.01(a).

 

The withdrawals to
be made from the Collection Account pursuant to this Section 4.01
do not apply to deposits into the Collection Account that do not represent
Collections, including payment of the Redemption Price for the Series 2005-A
Notes pursuant to Section 10.1(b) of the Indenture and Section 7.01
of this Series Supplement and proceeds from the sale, disposition or liquidation
of Conveyed Receivables pursuant to Section 5.4 of the Indenture.

 

Section 4.02  Monthly Interest.

 

(a)                                  The
amount of monthly interest (“Class A Monthly Interest”) accrued
during any Interest Period with respect to the Class A Notes, shall be equal
to the product of (A) the Class A Interest Rate, (B) the
Outstanding Amount of the Class A Notes as of the close of business on the
last day of the preceding Interest Period and (C) a fraction, the
numerator of which is the actual number of days elapsed in the related Interest
Period and the denominator of which is 360; provided, however  that
with respect to the first such Payment Date, Class A Monthly Interest
shall be calculated based on the outstanding principal amount of the Class A
Notes on the Closing Date.

 

On the Determination Date preceding each Payment Date,
the Servicer shall determine the excess, if any (the “Class A Interest
Shortfall”), of (x) the aggregate Class A Monthly Interest for the
Interest Period applicable to such Payment Date over (y) the amount that will
be available to be distributed to Class A Noteholders on such Payment Date
in respect thereof pursuant to this Series Supplement.  If the Class A Interest Shortfall with
respect to any Payment Date is greater than zero, an additional amount (“Class A
Additional Interest”) equal to the product of (A) the Class A
Interest Rate for the Interest Period commencing on such Payment Date (or, for
subsequent Interest Periods, the Class A Interest Rate for such subsequent
Interest Period), (B) such Class A Interest Shortfall (or the portion
thereof that has not been paid to Class A

 

13

 

Noteholders and (C) a fraction, the numerator of which is the
amount of days elapsed in such Interest Period (or in a subsequent Interest
Period) and the denominator of which is 360, shall be payable as provided
herein with respect to Class A Notes on each Payment Date following such
Payment Date to and including the Payment Date on which such Class A
Interest Shortfall is paid to Class A Noteholders.  Notwithstanding anything to the contrary
herein, Class A Additional Interest shall be payable or distributed to Class A
Noteholders only to the extent permitted by applicable law.

 

(b)                                 The
amount of monthly interest (“Class B Monthly Interest”) accrued
during any Interest Period with respect to the Class B Notes, shall be
equal to the product of (A) the Class B Interest Rate, (B) the
Outstanding Amount of the Class B Notes as of the close of business on the
last day of the preceding Interest Period and (C) a fraction, the
numerator of which is the actual number of days elapsed in the related Interest
Period and the denominator of which is 360; provided, however  that
with respect to the first such Payment Date, Class B Monthly Interest
shall be calculated based on the outstanding principal amount of the Class B
Notes on the Closing Date.

 

On the Determination Date preceding each Payment Date,
the Servicer shall determine the excess, if any (the “Class B Interest
Shortfall”), of (x) the aggregate Class B Monthly Interest for the
Interest Period applicable to such Payment Date over (y) the amount that will
be available to be distributed to Class B Noteholders on such Payment Date
in respect thereof pursuant to this Series Supplement.  If the Class B Interest Shortfall with
respect to any Payment Date is greater than zero, an additional amount (“Class B
Additional Interest”) equal to the product of (A) the Class B
Interest Rate for the Interest Period commencing on such Payment Date (or, for
subsequent Interest Periods, the Class B Interest Rate for such subsequent
Interest Period), (B) such Class B Interest Shortfall (or the portion
thereof that has not been paid to Class B Noteholders and (C) a
fraction, the numerator of which is the amount of days elapsed in such Interest
Period (or in a subsequent Interest Period) and the denominator of which is
360, shall be payable as provided herein with respect to Class B Notes on
each Payment Date following such Payment Date to and including the Payment Date
on which such Class B Interest Shortfall is paid to Class B
Noteholders.  Notwithstanding anything to
the contrary herein, Class B Additional Interest shall be payable or
distributed to Class B Noteholders only to the extent permitted by
applicable law.

 

Section 4.03  Determination of
Monthly Principal.  Beginning
with the Payment Date in the month following the month in which the Controlled
Accumulation Period or the Early Amortization Period begins, the amount of
principal with respect to Series 2005-A on each Payment Date (the “Monthly Principal”) shall be equal to the least
of (i) the Outstanding Amount of the Series 2005-A Notes on
such Payment Date (minus, during the Controlled Accumulation Period, any amount
already in the Principal Account on such Payment Date); (ii) during the
Controlled Accumulation Period, the result of (x) the Outstanding Amount of the
Series 2005-A Notes as of the last day of the Revolving Period,
divided by (y) the Controlled Accumulation Period Length; and (iii) during
the Controlled Accumulation Period, the Invested Amount (after taking into
account any adjustments to be made to the Invested Amount on such Payment Date
pursuant to Section 4.07). 
Subject to Section 4.2(b) of the Agreement, during the Controlled
Accumulation Period and the Early Amortization Period, Investor Principal
Collections shall be deposited into the Collection Account on a daily basis in
accordance with and subject to the provisions of Section 4.2 of the
Agreement.

 

Section 4.04  Establishment of
Accounts.  The Issuer has
previously caused to be established and covenants to hereafter maintain the
Collection Account and the Excess Funding Account.  The Issuer hereby establishes and covenants
to hereafter maintain the Principal Account and the Reserve Account

 

14

 

which shall be Trust Accounts and Eligible Deposit
Accounts in accordance with Section 4.1 of the Agreement under the sole
dominion and control of the Indenture Trustee for the benefit of the Series 2005-A
Noteholders and the Residual Interestholder.

 

Section 4.05  Application of
Collections.

 

(a)                                  Available
Investor Non-Principal Collections and Investment Proceeds.  On each Payment Date, the Servicer shall
direct the Indenture Trustee in writing to apply an amount equal to the sum of
Available Investor Non-Principal Collections, any Investment Proceeds deposited
in the Collection Account for the related Collection Period, any amounts on
deposit in the Reserve Account and Excess Non-Principal Collections allocated
to Series 2005-A in accordance with Section 4.10 for
distribution, to the extent of funds available therefor, in the following
priority:

 

(i)                                     first,
an amount equal to the Investor Monthly Servicing Fee for such Payment Date (to
the extent not previously paid), plus any unpaid Servicer Advances and accrued
and unpaid interest thereon, shall be distributed to the Servicer;

 

(ii)                                  second, an amount equal to Class A Monthly
Interest for such Payment Date, plus the
amount of any Class A Monthly Interest previously due but not distributed
to the Class A Noteholders on a prior Payment Date, plus
the amount of any Class A Additional Interest for such Payment Date and
any Class A Additional Interest previously due but not distributed to the Class A
Noteholders on a prior Payment Date, shall be paid to the Class A
Noteholders, pro rata;

 

(iii)                               third, an amount equal to Class B Monthly
Interest for such Payment Date, plus the
amount of any Class B Monthly Interest previously due but not distributed
to the Class B Noteholders on a prior Payment Date, plus
the amount of any Class B Additional Interest for such Payment Date and
any Class B Additional Interest previously due but not distributed to the Class B
Noteholders on a prior Payment Date, shall be paid to the Class B
Noteholders, pro rata;

 

(iv)                              fourth, an amount equal to the Investor Defaulted
Amount and the Investor Dilution Amount, if any, for such Payment Date shall be
treated as a portion of Available Investor Principal Collections for such day
and, during the Controlled Accumulation Period or the Early Amortization
Period, shall be deposited into the Principal Account;

 

(v)                                 fifth, an amount equal to the aggregate amount of
Investor Charge-Offs that have not been previously reimbursed as provided in Section 4.07
and this Section 4.05(a)(v) shall be treated as Available
Investor Principal Collections with respect to such day and shall increase the
Invested Amount and, during the Controlled Accumulation Period or the Early
Amortization Period, shall be deposited into the Principal Account;

 

(vi)                              sixth,
an amount, if any, equal to the amount required to be deposited in the Reserve
Account pursuant to Section 4.12 shall be deposited into the
Reserve Account during the Revolving Period and the Controlled Accumulation
Period;

 

(vii)                           seventh,
to deposit into the Principal Account, during the Controlled Accumulation
Period, any deficiency in the amount otherwise required to be deposited into
the Principal Account at that time;

 

(viii)                        eighth,
if the Early Amortization Period has not occurred and is not continuing, the
balance, if any, will constitute a portion of Excess Non-Principal Collections
for such Payment Date and will be applied in accordance with Section 4.3
of the Agreement; and

 

15

 

(ix)                                ninth,
during the Early Amortization Period, the remaining balance, if any, will be
used to make principal payments first, to the Class A Notes until the Class A
Note Principal Balance is paid in full, second, to the Class B Notes until
the Class B Note Principal Balance is paid in full, and, third, to the Class C
Notes until the Class C Note Principal Balance is paid in full.

 

On each Payment Date, to
the extent that there is a shortfall (a “Payment Date Shortfall”) in the
amounts to be paid or deposited pursuant to clauses(a)(ii) and (a)(iii) of
this Section 4.05, the Paying Agent on behalf of the Issuer, shall
withdraw from the Collection Account, from any Servicer Advance on deposit
therein, an amount equal to the lesser of (i) the Payment Date Shortfall
for such Payment Date and (ii) the product of (x) such Servicer Advance
and (y) the Floating Allocation Percentage for the previous Collection Period,
and apply such withdrawn amount to make the payments and deposits contemplated
by such clauses of this Section 4.05.

 

(b)                                 Available
Investor Principal Collections — Revolving Period.  On each Payment Date during the Revolving
Period, an amount equal to the Available Investor Principal Collections deposited
into the Collection Account for the related Collection Period shall be treated
as Excess Principal Collections and applied in accordance with Section 4.3
of the Agreement.

 

(c)                                  Available
Investor Principal Collections — Controlled Accumulation Period or Early
Amortization Period.  On each Payment
Date during the Controlled Accumulation Period or the Early Amortization
Period, an amount equal to Available Investor Principal Collections deposited
in the Collection Account for the related Collection Period shall be applied as
follows:

 

(i)                                     during
the Controlled Accumulation Period, an amount equal to the least of (a) the
Available Investor Principal Collections on deposit in the Collection Account
for the related Collection Period and (b) the Monthly Principal for each
Payment Date shall be deposited into the Principal Account on such Payment
Date;

 

(ii)                                  during
the Early Amortization Period, an amount equal to the least of (a) the
Available Investor Principal Collections on deposit in the Collection Account for
the related Collection Period and (b) the Monthly Principal for such
Payment Date shall be distributed on each Payment Date and on the related
Payment Date, first, to the Class A Noteholders on the related Payment
Date until the Class A Note Principal Balance has been paid in full;
second, to the Class B Noteholders until the Class B Note Principal
Balance has been paid in full; and third, to the Class C Noteholders until
the Class C Note Principal Balance has been paid in full; and

 

(iii)                               in
the case of each of the Controlled Accumulation Period and the Early
Amortization Period, the balance of such Available Investor Principal
Collections remaining after application in accordance with clauses (i) and
(ii) above shall be treated as Excess Principal Collections and applied in
accordance with Section 4.3 of the Agreement.

 

(d)                                 Payment
of Available Investor Principal Collections.  On the earlier to occur of (i) the first
Payment Date during the Early Amortization Period and (ii) the Expected
Principal Payment Date, the Servicer shall pay the amount determined under Section 4.05(c)(i) and
(c)(ii) first, to the Class A Noteholders, until the Class A
Note Principal Balance is paid in full, second to the Class B Noteholders
until the Class B Note Principal Balance is paid in full, and third, to
the Class C Noteholders until the Class C Note Principal Balance is
paid in full.

 

16

 

Section 4.06  Distributions to Series 2005-A
Noteholders.   On each
Payment Date, the Servicer shall direct the Indenture Trustee in writing to
make the following distributions at the following times from the Collection
Account, the Reserve Account, the Principal Account and the Excess Funding
Account, as applicable:

 

(a)                                  on
each Payment Date, all amounts on deposit in such Trust Accounts that are
payable to the Class A Noteholders with respect to accrued interest and
principal shall be distributed to the Class A Noteholders in accordance
with Section 4.05;

 

(b)                                 on
each Payment Date, all amounts on deposit in such Trust Accounts that are
payable to the Class B Noteholders with respect to accrued interest and
principal shall be distributed to the Class B Noteholders in accordance
with Section 4.05; and

 

(c)                                  on
each Payment Date, all amounts on deposit in such Trust Accounts that are
payable to the Class C Noteholders with respect to principal shall be
distributed to the Class C Noteholders in accordance with Section 4.05.

 

Section 4.07  Investor Charge-Offs.  On each Determination Date, the Servicer
shall calculate the Investor Defaulted Amount and the Investor Dilution Amount,
if any, for the related Payment Date. 
If, on any Payment Date, the sum of the Investor Defaulted Amount, the
Investor Dilution Amount and Reallocated Principal Collections for such Payment
Date exceeds the sum of Available Investor Non-Principal Collections, amounts
withdrawn from the Reserve Account on such Payment Date and Investment Proceeds
allocated with respect thereto pursuant to Section 4.05(a)(iv) on
such Payment Date (after giving effect to the allocations, distributions,
withdrawals and deposits to be made on such Payment Date), the Invested Amount
shall be reduced by the amount of such excess, but not by more than the lesser
of (i) the sum of the Investor Defaulted Amount, the Investor Dilution
Amount and Reallocated Principal Collections for such Payment Date, and (ii) the
Invested Amount on such Payment Date (an “Investor
Charge-Off”).  Investor Charge-Offs
shall thereafter be reimbursed and the Invested Amount increased (but not by an
amount in excess of the aggregate unreimbursed Investor Charge-Offs on any
Payment Date) by the amount of Available Investor Non-Principal Collection and
Investment Proceeds allocated and available for that purpose pursuant to Section 4.05(a)(v).

 

Section 4.08  Excess Funding
Account.  On the business day
after the last day of the Revolving Period, the Series 2005-A Excess
Funding Amount shall, pursuant to Servicer written instruction, be deposited in
the Collection Account on such date and distributed in accordance with Section 4.06.  Thereafter, the Series 2005-A
Noteholders shall not be entitled to any funds on deposit in the Excess Funding
Account.

 

Section 4.09  Reallocated Principal Collections.  On each Payment Date, after giving effect to Section 4.12(a),
the Servicer shall apply Reallocated Principal Collections with respect to that
Payment Date to fund any deficiency pursuant to and in the priority set forth
in Sections 4.05(a)(i) through (iii). On each Payment Date,
the Invested Amount shall be reduced by the amount of Reallocated Principal
Collections for such Payment Date. 
Reallocated Principal Collections shall become part of Investor
Charge-Offs pursuant to Section 4.07.

 

Section 4.10  Excess Non-Principal Collections.  Series 2005-A shall be an Excess
Allocation Series with respect to Group One only. Subject to Section 4.3
of the Agreement, Excess Non-Principal Collections with respect to the Excess
Allocation Series in Group One for any Payment Date will be allocated to Series 2005-A
in an amount equal to the product of (x) the aggregate amount of Excess
Non-Principal Collections with respect to all the Excess Allocation Series in
Group One for the related Payment Date and (y) a fraction, the numerator of
which is the Series 2005-A Non-Principal Shortfall for

 

17

 

such Payment Date and the denominator of which is the
aggregate amount of Non-Principal Shortfalls for all the Excess Allocation Series in
Group One for such Payment Date.

 

Section 4.11  Excess Principal Collections.  Subject to Section 4.3 of the Agreement,
Excess Principal Collections allocable to Series 2005-A on any
Payment Date will be equal to the product of (x) the aggregate amount of Excess
Principal Collections with respect to all Principal Sharing Series for
such Payment Date and (y) a fraction, the numerator of which is the Series 2005-A
Principal Shortfall for such Payment Date and the denominator of which is the
aggregate amount of Principal Shortfalls for all the Series which are
Principal Sharing Series for such Payment Date.

 

Section 4.12  Reserve Account.

 

(a)                                  On
each Payment Date, if the aggregate amount of Available Investor Non-Principal
Collections is less than the aggregate amount required to be paid or deposited
pursuant to clauses (i) through (iv) of Section 4.05(a),
the Issuer shall withdraw from the Reserve Account the amount of such
deficiency up to the Available Reserve Account Amount and shall apply such
amount in accordance with such clauses of Section 4.05(a).

 

(b)                                 On
the Series 2005-A Stated Maturity Date, and on any day following the
occurrence of an Event of Default with respect to Series 2005-A that
has resulted in the acceleration of the Series 2005-A Notes, the
Servicer shall withdraw from the Reserve Account the Available Reserve Account
Amount for payment to the Series 2005-A Noteholders to fund any
shortfalls in amounts owed to the Series 2005-A Noteholders.

 

(c)                                  If
on any Payment Date, after giving effect to all withdrawals from the Reserve
Account, the Available Reserve Account Amount is less than the Required Reserve
Account Amount then in effect, Available Investor Non-Principal Collections
shall be deposited into the Reserve Account pursuant to Section 4.05(a)(vi) up
to the amount of the Reserve Account Deficiency.

 

(d)                                 If,
after giving effect to all deposits to and withdrawals from the Reserve Account
with respect to any Payment Date, the amount on deposit in the Reserve Account
exceeds the Required Reserve Account Amount, the Servicer shall withdraw an
amount equal to such excess from the Reserve Account and distribute such amount
to the Residual Interestholder on the related Payment Date. On the date on
which the Reserve Account has been terminated, after giving effect to any
withdrawal on such date pursuant to Section 4.12(a) and making
any payments to the Series 2005-A Noteholders required pursuant to
this Indenture, all amounts then remaining in the Reserve Account shall be
released to the Residual Interestholder.

 

(e)                                  The
Reserve Account will terminate on the earliest to occur of (i) the date on
which the Outstanding Amount of the Series 2005-A Notes has been
reduced to zero and all other amounts payable to the Series 2005-A
Noteholders have been paid in full; (ii) the Series 2005-A
Stated Maturity Date; and (iii) the termination of the Issuer.

 

Section 4.13  Investment of Amounts on Deposit in Series Accounts.

 

(a)                                  To
the extent there are uninvested amounts deposited in the Series Accounts,
the Servicer shall cause such amounts to be invested in Eligible Investments
selected by the Servicer that mature no later than the following Payment Date.

 

18

 

(b)                                 On
each Payment Date, the Investment Proceeds, if any, accrued since the preceding
Payment Date on funds on deposit in the Reserve Account or the Principal
Account shall be treated as Available Investor Non-Principal Collections and
paid or deposited in accordance with Section 4.05(a).  Subject to the foregoing, for purposes of determining
the availability of funds or the balance in the Reserve Account for any reason
under this Series Supplement, all Investment Proceeds shall be deemed not
to be available or on deposit.

 

Section 4.14  Controlled Accumulation Period.  The Controlled Accumulation Period is
scheduled to commence at the beginning of business on the Controlled
Accumulation Date. On each Determination Date until the Controlled Accumulation
Date, the Servicer shall review the amount of expected Principal Collections
and determine the Controlled Accumulation Period Length; provided, that if the
Controlled Accumulation Period Length (determined as described below) on any
Determination Date is less than or more than the number of months in the
scheduled Controlled Accumulation Period, upon written notice to the Indenture
Trustee, with a copy to each Rating Agency, the Servicer shall either postpone
or accelerate, as applicable, the date on which the Controlled Accumulation
Period actually commences, so that as a result, the number of Collection
Periods in the Controlled Accumulation Period will equal the Controlled
Accumulation Period Length; provided, that the length of the Controlled
Accumulation Period will not be less than one (1) month.  The “Controlled Accumulation Period Length”
will mean a number of whole months such that the amount available for payment
of principal on the Series 2005-A Notes on the Expected Principal
Payment Date is expected to equal or exceed the Outstanding Amount of the Series 2005-A
Notes, assuming for this purpose that (1) the Monthly Payment Rate will be
no greater than the lowest Monthly Payment Rate for the prior twelve (12)
Collection Periods, (2) the total amount of Principal Receivables held by
the Issuer in the Trust (and the principal amount on deposit in the Excess
Funding Account, if any) remain 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 by the
Issuer. Any notice by the Servicer modifying the commencement of the Controlled
Accumulation Period pursuant to this Section 4.14 shall specify (i) the
Controlled Accumulation Period Length and (ii) the commencement date of
the Controlled Accumulation Period.

 

Section 4.15  Determination of LIBOR.

 

(a)                                  On
each LIBOR Determination Date in respect of an Interest Period after the first
Interest Period, The Bank of New York, as Paying Agent, shall determine LIBOR
on the basis of the rate per annum displayed on page ”US0001M
<INDEX>“ in the Bloomberg Financial Markets system as the composite
offered rate for London interbank deposits for a one-month period, as of 11:00 a.m.,
London time, on that date. If that rate does not appear on that display page,
LIBOR for that Interest Period will be the rate per annum shown on page 3750
of the Bridge Telerate Services Report screen or any successor page as the
composite offered rate for London interbank deposits for a one-month period, as
shown under the heading “USD” as of 11:00 a.m., London time, on the LIBOR
Determination Date. If no rate is shown as described in the preceding two
sentences, LIBOR for that Interest Period will be the rate per annum based on
the rates at which U.S. dollar deposits for a one-month period are displayed on
page ”LIBOR” of the Reuters Monitor Money Rates Service or such other page as
may replace the LIBOR page on that service for the purpose of displaying
London interbank offered rates of major banks as of 11:00 a.m., London
time, on the LIBOR Determination Date; provided, that if at least two rates
appear on that page, the rate will be the arithmetic mean of the displayed
rates and if fewer than two rates are displayed, or if no rate is relevant, the
rate for that Interest Period 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 Indenture Trustee shall request
the

 

19

 

principal London office of each of the Reference Banks to provide a
quotation of its rate. If at least two (2) such quotations are provided,
the rate for that Interest Period shall be the arithmetic mean of all
quotations provided. If fewer than two (2) quotations are provided as
requested, the rate for that Interest Period will be the arithmetic mean of the
rates quoted by major banks in New York City, selected by the  Servicer, at approximately 11:00 a.m.,
New York City time, on that day for loans in United States dollars to leading
European banks for a one-month period. Notwithstanding the foregoing, LIBOR for
the first Interest Period will be determined by reference to straight line
interpolation between one-month and two-month LIBOR based on the actual number
of days in the first Interest Period.

 

(b)                                 The
Class A Note Interest Rate and Class B Note Interest Rate applicable
to the then current and the immediately preceding Interest Periods may be
obtained by telephoning Bank of New York, as Paying Agent, at its Corporate
Trust Office or such other telephone number as shall be designated by the
Indenture Trustee for such purpose by prior written notice by The Bank of New
York, as Paying Agent, to each Series 2005-A Noteholder from time to
time.

 

(c)                                  On
each LIBOR Determination Date, the Indenture Trustee shall send to the Issuer,
by facsimile transmission or e-mail, notification of LIBOR for the following
Interest Period.

 

ARTICLE V

 

Distributions and Reports
to Series 2005-A Noteholders

 

Section 5.01  Distributions.  (a)  On each Payment Date, the Indenture
Trustee shall distribute to each Series 2005-A Noteholder of record
on the preceding Record Date (other than as provided in Section 2.7(c) of
the Indenture with respect to a final distribution) such Interestholder’s pro
rata share of the amounts on deposit in the Collection Account, the Excess
Funding Account, the Principal Account or the Reserve Account as is payable to
the Series 2005-A Noteholders on such Payment Date according to the
written instructions of the Servicer given pursuant to Sections 4.05 and
4.06.

 

(b)                                 Except
as provided in Section 2.7(c) of the Indenture with respect to a
final distribution, distributions to Series 2005-A Noteholders
hereunder shall be made in immediately available funds wired to each Series 2005-A
Interestholder in accordance with such Interestholder’s wiring information
appearing in the Register without presentation or surrender of any Series 2005-A
Notes or the making of any notation thereon.

 

Section 5.02  Reports and
Statements to Series 2005-A Noteholders.  (a)  At least two Business Days
prior to each Payment Date, the Servicer will provide to the Indenture Trustee,
and on each such Payment Date, the Indenture Trustee shall forward to each Series 2005-A
Interestholder of record a statement (the “Payment
Date Statement”) prepared by the Servicer setting forth certain
information relating to the Issuer and the Series 2005-A Notes as set
forth in the Offering Memorandum and information in respect of the Required Net
Pool Balance.

 

(b)                                 A
copy of each statement provided pursuant to paragraph (a) will be
made available for inspection at the Corporate Trust Office.

 

(c)                                  Within
the prescribed period for tax reporting purposes after the end of each calendar
year, the Indenture Trustee shall furnish or cause to be furnished to each
Person who at

 

20

 

any time during the preceding calendar year was a Series 2005-A
Noteholder and the Residual Interestholder, a statement prepared by the
Servicer containing such information as may be required by the Code and
applicable U.S. treasury regulations to enable the Series 2005-A
Noteholders or Residual Interestholder to prepare their federal income tax
returns.  Such obligation of the
Indenture Trustee shall be deemed to have been satisfied to the extent that
substantially comparable information shall be provided by the Indenture Trustee
pursuant to any requirements of the Code as from time to time in effect.

 

ARTICLE VI

 

Early Amortization Events

 

Section 6.01  Additional Early
Amortization Events.  (a) 
In addition to the Early Amortization Events set forth in Section 5.17 of
the Indenture and except as provided in Section 6.01(b), the
occurrence of any of the following events shall, immediately upon the
occurrence thereof without notice or other action on the part of the Indenture
Trustee or the Series 2005-A Noteholders, be deemed to be an Early
Amortization Event solely with respect to Series 2005-A:

 

(i)                                     on
any Determination Date, the average of the Monthly Payment Rates for the three
preceding Collection Periods is less than 12% for the Determination Dates
falling in February through May, less than 14% for the Determination Date
falling in June, less than 16% for the Determination Dates falling in July through
October, or less than 14% for the Determination Dates falling in November through
January (or a lower percentage if the Rating Agency Condition has been
satisfied with respect to that lower percentage);

 

(ii)                                  any
Servicing Default occurs;

 

(iii)                               the
occurrence of an Event of Default with respect to the Series 2005-A
Notes and the declaration that the Series 2005-A Notes are due and
payable pursuant to Section 5.2 of the Indenture;

 

(iv)                              on
the Expected Principal Payment Date, the Series 2005-A Notes are not
paid in full;

 

(v)                                 the
sum of all investments (other than Receivables) held in Trust Accounts of the
Issuer and, without duplication, amounts held in the Excess Funding Account,
represents more than fifty percent (50%) of the dollar amount of the assets of
the Issuer on each of six (6) or more consecutive monthly Determination
Dates, after giving effect to all payments made or to be made on the Payment
Dates relating to those Determination Dates;

 

(vi)                              on
any Payment Date, there exists (a) Investor Charge-Offs or (b) a
withdrawal from the Reserve Account, in each case relating to a shortfall in
Non-Principal Collections on a prior Payment Date that has not been reimbursed
as of such Payment Date after application of all Collections on such date or (ii) there
exists (a) Investor Charge-Offs or (b) a withdrawal from the Reserve
Account, in an aggregate amount in excess of 0.25% of the Initial Invested
Amount, in each case relating to a shortfall in Non-Principal Collections on
such Payment Date;

 

(vii)                           on any
Payment Date after the occurrence of an Enhancement Trigger Event under clause (b) of
the definition thereof, the Seller has not deposited an amount into the Reserve
Account equal to 1.0% of the Initial Invested Amount; or

 

21

 

(viii)                        on any
Payment Date, the amount on deposit in the Reserve Account is less than the
Required Reserve Account Amount for such Payment Date after application of all
Collections on such date and for the two consecutive Payment Dates immediately
preceding such Payment Date.

 

(b)                                 In
the case of any event described in Section 6.01(a)(ii) above
or in Section 5.17(d) or (e) of the Indenture, an Early
Amortization Event with respect to Series 2005-A shall be deemed to
have occurred only if either (i) the Indenture Trustee or (ii) the
Control Investors, by written notice to the Issuer, the Seller and the Servicer
(and the Indenture Trustee, if such notice is given by Series 2005-A
Noteholders) declare that an Early Amortization Event has occurred as of the
date of such notice.  In the case of any
other event described above or in Section 5.17 of the Indenture, an Early
Amortization Event will occur without any notice or other action on the part of
the Indenture Trustee or the Series 2005-A Noteholders immediately
upon the occurrence of such event.

 

Section 6.02  Recommencement of
the Revolving Period.  If any
Early Amortization Event (other than an Early Amortization Event described in Section 5.17(a) of
the Indenture) occurs, the Revolving Period shall recommence following
satisfaction of the Rating Agency Condition and if the Control Investors
consent thereto; provided, however, that no other Early Amortization Event
that has not been cured or waived as described herein has occurred and the
scheduled termination of the Revolving Period has not occurred.

 

ARTICLE VII

 

Optional Purchase

 

Section 7.01  Optional Purchase.

 

(a)                                  On
any Payment Date occurring after the date on which the aggregate outstanding
principal amount of the Series 2005-A Notes is reduced to an amount
less than or equal to 10% of the initial outstanding principal amount of the Series 2005-A
Notes, the Servicer shall have the option to purchase the Series 2005-A
Notes in whole but not in part at a purchase price equal to the Redemption
Price for such Payment Date.

 

(b)                                 The
Servicer shall give the Indenture Trustee at least 20 days’ prior written
notice of the Payment Date on which the Servicer intends to exercise such
purchase option.  Not later than
12:00 noon, New York City time, on such Payment Date, the Servicer shall
deposit an amount equal to the sum of (i) the Series 2005-A
Excess Funding Amount (in a maximum amount not exceeding the Redemption Price),
(ii) the Reserve Account Amount (in a maximum amount not exceeding the
Redemption Price), (iii) the amount on deposit in the Principal Account
(in a maximum amount not exceeding the Redemption Price) and (iv) the
excess, if any, of the Redemption Price over the amounts calculated in
clauses (i), (ii) and (iii) into the Collection Account in
immediately available funds.  Such
purchase option is subject to payment in full of the Redemption Price.  The Redemption Price shall be distributed as
set forth in Section 8.01.

 

ARTICLE VIII

 

Final Distributions

 

Section 8.01  Acquisition of Notes
Pursuant to Section 10.1 of the Indenture; Distributions pursuant to Section 7.01
of this Series Supplement or Section 5.4 of the Indenture.

 

22

 

(a)                                  The
amount to be paid by the Seller to the Collection Account with respect to Series 2005-A
Notes in connection with a redemption of the Series 2005-A Notes
pursuant to Section 10.1(b) of the Indenture shall equal the
Redemption Price for the Payment Date on which such redemption occurs.

 

(b)                                 With
respect to the Redemption Price deposited into the Collection Account pursuant
to Section 7.01 or 8.01(a) of this Series Supplement
or any amount distributable to the Series 2005-A Noteholders
pursuant to Section 5.4(a)(iv) or 5.4(b) of the
Indenture following a sale of Receivables by the Issuer, the Indenture Trustee
shall, not later than 12:00 noon, New York City time, on the Payment Date
on which such amounts are deposited (or, if such date is not a Payment Date, on
the immediately following Payment Date), based upon information provided by the
Servicer (which shall include specific instructions with respect to the
following amounts), make distributions of the following amounts (in the
priority set forth below and, in each case, after giving effect to any deposits
and distributions otherwise to be made on such date) in immediately available
funds:

 

(i)                                     first,
(x) an amount equal to the Outstanding Amount of the Class A Notes shall
be distributed to the Class A Noteholders and (y) an amount equal to
the sum of (A) Class A Monthly Interest for such Payment Date, (B) any
Class A Monthly Interest previously due but not distributed on a prior
Payment Date, and (C) the amount of Class A Additional Interest, if
any, for such Payment Date and any Class A Additional Interest previously
due but not distributed on a prior Payment Date, shall be distributed to the Class A
Noteholders;

 

(ii)                                  second,
(x) an amount equal to the Outstanding Amount of the Class B Notes shall
be distributed to the Class B Noteholders and (y) an amount equal to
the sum of (A) Class B Monthly Interest for such Payment Date, (B) any
Class B Monthly Interest previously due but not distributed on a prior
Payment Date, and (C) the amount of Class B Additional Interest, if
any, for such Payment Date and any Class B Additional Interest previously
due but not distributed on a prior Payment Date, shall be distributed to the Class B
Noteholders;

 

(iii)                               third, an amount equal
to the Outstanding Amount of the Class C Notes shall be distributed to the
Class C Noteholders; and

 

(iv)                              fourth,
any excess will be released to the Residual Interestholder.

 

(c)                                  Notwithstanding
anything to the contrary in this Series Supplement or the Indenture, any
distribution made pursuant to Section 8.01(b) shall be deemed
to be a final distribution pursuant to Section 2.7(c) of the
Indenture with respect to the Series 2005-A Notes.

 

Section 8.02  Series Termination.  On the Series 2005-A Stated
Maturity Date, if the Invested Amount is greater than zero (after giving effect
to deposits and distributions otherwise to be made on such Series 2005-A
Stated Maturity Date), the Indenture Trustee will sell or cause to be sold on
such Series 2005-A Stated Maturity Date in accordance with the
Indenture an amount of Principal Receivables (or interests therein) equal to
110% of the Invested  Amount  on such Series 2005-A Stated
Maturity Date (after giving effect to such deposits and distributions);
provided, however, that in no event shall the amount of Principal Receivables
sold exceed the product of the Series 2005-A Allocation Percentage
(for the Collection Period in which such Payment Date occurs) and Principal
Receivables on such Payment Date.  The
proceeds from such sale shall be paid first, to the Class A Noteholders
until the outstanding principal amount and unpaid interest on the Class A
Notes is paid in full; second, to the Class B Noteholders until the
outstanding principal amount and unpaid interest on the Class B Notes is
paid in full; third, to the Class C Noteholders until the outstanding
principal amount and unpaid interest on the

 

23

 

Class C Notes is paid in full; and then any
remaining proceeds shall be allocated and distributed as Principal Collections
in accordance with the terms of Section 4.06.  On and after the Termination Date, no
distributions will be made pursuant to this Supplement except as otherwise
expressly provided for in the Indenture.

 

ARTICLE IX

 

Other Series Provisions

 

Section 9.01  Additional Covenants.  Except for the conveyance hereunder to the
Indenture Trustee, the Issuer shall not sell, pledge, assign or transfer to any
other Person any rights it might have to funds on deposit in the Collection
Account, the Principal Account, the Reserve Account or the Excess Funding
Account or Investment Proceeds with respect thereto.

 

Section 9.02  Tax Treatment of the
Series 2005-A Notes. 
The Issuer and the purchasers of the Class A Notes and Class B
Notes intend, and will take all actions consistent with and refrain from any
action inconsistent with the intention, that the Class A Notes and Class B
Notes be treated as indebtedness which is solely secured by the Collateral for
all federal, state, local, and foreign income and franchise tax purposes and
that the Issuer be disregarded as an entity separate from the Seller for
federal income tax purposes.  The Issuer,
by entering into this Series Supplement, and each Class A Noteholder
and Class B Noteholder, by its acceptance of its Class A Note or Class B
Note, as applicable, agrees to treat the Class A Notes and Class B
Notes for federal, state and local income, single business and franchise tax
purposes as indebtedness of the Issuer.

 

Section 9.03  Supplemental Indentures.  It is expressly understood by the parties
hereto that with respect to Series 2005-A, no action may be taken under
Section 9.1(b) of the Indenture unless the Rating Agency Condition has been
satisfied.

 

Section 9.04  Waiver of Past Defaults.  Any default by the Servicer as described in Section 7.4
of the Agreement may be waived by only by the Control Investors.

 

Section 9.05  Restrictions on Transfer.

 

(a)                                  No
Class A Note or Class B Note (for purposes of this Section 9.05,
collectively, the “Transferable Notes”) may be sold, transferred or
otherwise disposed of except as follows:

 

(i)                                     prior
to the U.S. Resale Restriction Termination Date, to QIBs purchasing for their
own account or for the account of QIBs in reliance on the exemption from the
registration requirements of the Securities Act provided by Rule 144A; or

 

(ii)                                  to
purchasers that are not U.S. persons in “offshore transactions” (within the
meaning of Regulation S) in reliance on Regulation S;

 

and, in each case in accordance with all applicable
laws and regulations of the United States and the States thereof, and (if
applicable) foreign laws and regulations.

 

The Indenture Trustee shall have no obligations or
duties with respect to determining whether any transfers of the Transferable
Notes are made in accordance with the Securities Act or any other law; provided
that with respect to Definitive Notes, the Indenture Trustee shall enforce such
transfer restrictions in accordance with the terms set forth on the related
Transferable Note and the provisions of this Series Supplement.

 

24

 

(b)                                 Notwithstanding
any provision to the contrary herein, so long as a Book-Entry Interest remains
outstanding with respect to Series 2005-A and is held by or on
behalf of the Clearing Agency, transfers of a Book-Entry Interest, in whole or
in part, shall only be made in accordance with this Section 9.05(b).

 

(i)                                     General.  Subject to clauses (ii) through (iv) of
this Section 9.05(b), transfers of a Book-Entry Interest shall be
limited to transfers of such Book-Entry Interest in whole, but not in part, to
a nominee of the Clearing Agency or to a successor of the Clearing Agency or
such successor’s nominee.

 

(ii)                                  Regulation
S Book-Entry Note to U.S. Restricted Book-Entry Note.  If a holder of a beneficial interest in a
Regulation S Book-Entry Note wishes to transfer all or a part of its beneficial
interest in such Regulation S Book-Entry Note to a Person who wishes to take
delivery thereof in the form of a U.S. Restricted Book-Entry Note, such holder
may, subject to the terms hereof and the rules and procedures of
Euroclear, Clearstream, Luxembourg or the Clearing Agency, as the case may be,
exchange or cause the exchange of such interest for an equivalent beneficial
interest in a U.S. Restricted Book-Entry Note of the same class of Transferable
Notes.  Upon receipt by the Registrar, of
(A) instructions from Euroclear, Clearstream, Luxembourg or the Clearing
Agency, as the case may be, directing the Registrar to cause such U.S.
Restricted Book-Entry Note to be increased by an amount equal to such
beneficial interest in such Regulation S Book-Entry Note but not less than the
minimum denomination applicable to the related class of  Transferable Notes and (B) a certificate
substantially in the form of Exhibit D hereto stating, among other
things, that the transferee acquiring such beneficial interest in a U.S.
Restricted Book-Entry Note is a Qualified Institutional Buyer, is obtaining
such beneficial interest in a transaction pursuant to Rule 144A and in
accordance with any applicable securities laws of any state of the United
States or any other applicable jurisdiction, then Euroclear, Clearstream,
Luxembourg or the Registrar, as the case may be, shall instruct the Clearing
Agency to reduce such Regulation S Book-Entry Note by the aggregate principal
amount of the beneficial interest in such Regulation S Book-Entry Note to be
transferred, increase the U.S. Restricted Book-Entry Note specified in such
instructions by an aggregate principal amount equal to such reduction in such
principal amount of the Regulation S Book-Entry Note and make the corresponding
adjustments to the applicable participants’ accounts.

 

(iii)                               U.S. Restricted Book-Entry Note to
Regulation S Book-Entry Note.  If a holder of a beneficial interest in a
U.S. Restricted Book-Entry Note wishes to transfer all or a part of its
beneficial interest in such U.S. Restricted Book-Entry Note to a Person who
wishes to take delivery thereof in the form of a Regulation S Book-Entry Note,
such holder may, subject to the terms hereof and the rules and procedures
of Euroclear, Clearstream, Luxembourg or the Clearing Agency, as the case may be,
exchange or cause the exchange of such interest for an equivalent beneficial
interest in a Regulation S Book-Entry Note of the same class of
Transferable Notes.  Upon receipt by the
Registrar of (A) instructions from Euroclear, Clearstream, Luxembourg or
the Clearing Agency, as the case may be, directing as the Registrar, to cause
such Regulation S Book-Entry Note to be increased by an amount equal to such
beneficial interest in such U.S. Restricted Book-Entry Note but not less than
the minimum denomination applicable to the related class of Transferable Notes
to be exchanged and (B) a certificate substantially in the form of Exhibit E hereto stating, among other things, that
the transferee acquiring such beneficial interest in a Regulation S
Book-Entry Note is not a U.S. Person (as defined in Regulation S) and such
transfer is being made pursuant to Rule 903 or 904 under Regulation S of
the Securities Act, then Euroclear, Clearstream, Luxembourg or the Registrar,
as the case may be, will instruct the Clearing Agency to reduce such U.S.
Restricted Book-Entry Note by the aggregate principal amount of the beneficial
interest in such U.S. Restricted Book-Entry Note to be transferred,

 

25

 

increase the Regulation S Book-Entry Note specified in such
instructions by an aggregate principal amount equal to such reduction in the
principal amount of the U.S. Restricted Book-Entry Note and make the
corresponding adjustments to the applicable participants’ accounts.

 

(iv)                              Other Exchanges.  In the event that a Book-Entry Interest is
exchanged for one or more Definitive Notes pursuant to Section 2.12 of the
Indenture, such  Definitive Notes may be
exchanged for one another only in accordance with such procedures as are substantially
consistent with the provisions of clauses (i) through (iii) above
(including certification requirements intended to insure that such transfers
comply with Rule 144A or are not to U.S. Persons and or otherwise comply
with Regulation S, as the case may be) and as may be from time to time adopted
by the Issuer and the Indenture Trustee.

 

ARTICLE X

 

Miscellaneous Provisions

 

Section 10.01  Ratification of
Agreement.  As supplemented by
this Series Supplement, the Agreement is in all respects ratified and
confirmed and the Agreement as so supplemented by this Series Supplement
shall be read, taken and construed as one and the same instrument.

 

Section 10.02  Counterparts.  This Series Supplement may be executed
by the parties hereto in any number of counterparts, each of which shall be an
original, but all of which together shall constitute one and the same
instrument.

 

Section 10.03  GOVERNING LAW.  THIS SERIES SUPPLEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE
CHOICE OF LAW PRINCIPLES THEREOF (OTHER THAN SECTION 5-1401 OF THE
NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF
THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

[signature pages follow]

 

26

 

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

 

	
   

  	
  TEXTRON FINANCIAL FLOORPLAN MASTER

  NOTE TRUST, as Issuer

  
	
   

  	
   

  
	
   

  	
  By:

  	
   SUNTRUST DELAWARE TRUST

   COMPANY, not in its individual capacity, but

   solely as Owner Trustee on behalf of the Trust

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Jack Ellerin

  	
   

  
	
   

  	
   

  	
  Name: Jack Ellerin 

  
	
   

  	
   

  	
  Title: Trust Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  TEXTRON FINANCIAL CORPORATION,

  
	
   

  	
   

  	
   as Servicer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Eric Karlson

  	
   

  
	
   

  	
   

  	
  Name: Eric Karlson 

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK,
  not in its individual

  
	
   

  	
   

  	
   capacity but solely as Indenture Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Ryan Bittner

  	
   

  
	
   

  	
   

  	
  Name: Ryan Bittner 

  
	
   

  	
   

  	
  Title: Assistant Treasurer

  
						

 

 

 

EXHIBIT A-1

 

FORM OF CLASS A SERIES 2005-A
FLOATING RATE TERM NOTE

[REGULATION S TEMPORARY BOOK-ENTRY NOTE]

[REGULATION S PERMANENT BOOK-ENTRY NOTE]

[U.S. RESTRICTED BOOK-ENTRY NOTE]

 

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED UPON
REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR, OR IN LIEU OF, THIS NOTE 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.

 

[Insert the following for U.S. Restricted
Book-Entry Note]

 

[THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933
(THE “SECURITIES ACT”) OR THE SECURITIES LAWS OF ANY OTHER JURISDICTION.
NEITHER THIS NOTE NOR ANY BENEFICIAL INTEREST OR PARTICIPATION HEREIN MAY BE
REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND ANY OTHER APPLICABLE JURISDICTION. BY ITS ACCEPTANCE HEREOF, THE HOLDER
(1) REPRESENTS THAT IT IS EITHER A “QUALIFIED INSTITUTIONAL BUYER” (A “QUALIFIED
INSTITUTIONAL BUYER”) (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT (“RULE
144A”)), (2) AGREES TO OFFER, SELL OR OTHERWISE TRANSFER THIS NOTE OR ANY
INTEREST OR PARTICIPATION HEREIN, PRIOR TO THE DATE WHICH IS THE LATER OF (X)
TWO YEARS (OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144(k) OF THE
SECURITIES ACT) AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST
DATE ON WHICH TEXTRON FINANCIAL FLOORPLAN MASTER NOTE TRUST (THE “ISSUER”) OR
ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS NOTE (OR ANY PREDECESSOR OF
THIS NOTE) OR SUCH INTEREST OR PARTICIPATION AND (Y) SUCH LATER DATE, IF ANY,
AS MAY BE REQUIRED BY ANY SUBSEQUENT CHANGE IN APPLICABLE LAW, ONLY (A) THE
ISSUER OR ANY OF THE INITIAL PURCHASERS, (B) PURSUANT TO A REGISTRATION
STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR
SO LONG AS THIS NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON
IT REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER PURCHASING THIS NOTE
OR SUCH INTEREST OR PARTICIPATION FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF
ANOTHER QUALIFIED INSTITUTIONAL BUYER AND TO WHOM NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, IN EACH CASE IN A PRINCIPAL
AMOUNT

 

 

OF NOT LESS THAN $500,000, (D) TO A
PURCHASER THAT IS NOT A U.S. PERSON IN AN “OFFSHORE TRANSACTION” WITHIN THE
MEANING OF REGULATION S UNDER THE SECURITIES ACT IN A PRINCIPAL AMOUNT OF NOT
LESS THAN $500,000 OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN A PRINCIPAL AMOUNT OF
NOT LESS THAN $500,000, SUBJECT TO, IN EACH OF (A)-(E), ANY REQUIREMENT OF LAW
THAT THE DISPOSITION OF THIS NOTE OR SUCH INTEREST OR PARTICIPATION BE AT ALL
TIMES WITHIN ITS CONTROL, AND COMPLIANCE WITH THE SECURITIES LAWS OF THE UNITED
STATES AND ANY OTHER APPLICABLE JURISDICTION AND WITH THE PROCEDURES SPECIFIED
IN THE INDENTURE AND THE INDENTURE SUPPLEMENT. 
ANY OFFER, SALE, OR TRANSFER PURSUANT TO (E) IS SUBJECT TO TE RIGHT
OF THE ISSUER AND THE INDENTURE TRUSTEE TO REQUIRE THE DELIVERY OF ANY OPINION
OF COUNSEL, CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF
THEM.]

 

THIS NOTE (OR A BENEFICIAL INTEREST OR PARTICIPATION HEREIN) MAY NOT
BE TRANSFERRED UNLESS, AFTER GIVING EFFECT TO THE TRANSFER, THE TRANSFEREE IS
HOLDING A PRINCIPAL AMOUNT WHICH IS EQUAL TO U.S.$500,000 OR INTEGRAL MULTIPLES
OF $100,000 IN EXCESS THEREOF.

 

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

 

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

 

[Insert the following for Regulation S
Temporary Book-Entry Note]

 

[PRIOR TO THE EXPIRATION OF THE 40-DAY ‘DISTRIBUTION COMPLIANCE
PERIOD’ (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT OF 1933 (THE “SECURITIES
ACT”)), THIS NOTE OR ANY BENEFICIAL INTEREST OR PARTICIPATION HEREIN MAY NOT
BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHIN THE UNITED STATES OR
TO, OR FOR THE ACCOUNT OR BENEFIT OF, A U.S. PERSON WITHIN THE MEANING OF
REGULATION S, EXCEPT TO A PERSON REASONABLY BELIEVED TO BE A QUALIFIED
INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT (“RULE
144A”)) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A AND THE
INDENTURE AND THE INDENTURE SUPPLEMENT OR OTHERWISE IN ACCORDANCE WITH
REGULATION S.

 

 

THIS NOTE (OR A BENEFICIAL INTEREST OR PARTICIPATION HEREIN) MAY NOT
BE TRANSFERRED UNLESS, AFTER GIVING EFFECT TO THE TRANSFER, THE TRANSFEREE IS
HOLDING A PRINCIPAL AMOUNT WHICH IS EQUAL TO U.S.$500,000 OR INTEGRAL MULTIPLES
OF $100,000 IN EXCESS THEREOF.]

 

THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES
THAT IT WILL NOT AT ANY TIME INSTITUTE AGAINST THE ISSUER OR US OR SOLICIT OR
JOIN OR COOPERATE WITH OR ENCOURAGE ANY INSTITUTION IN INSTITUTING AGAINST US
OR THE ISSUER, ANY BANKRUPTCY, REORGANIZATION, ARRANGEMENT, INSOLVENCY OR
LIQUIDATION PROCEEDINGS, OR OTHER PROCEEDINGS UNDER ANY UNITED STATES FEDERAL
OR STATE BANKRUPTCY OR SIMILAR LAW IN CONNECTION WITH ANY OBLIGATION RELATING
TO THE NOTES, THE INDENTURE OR ANY OF THE TRANSACTION DOCUMENTS UNLESS THE
HOLDERS OF NOT LESS THAN SIXTY-SIX AND TWO-THIRDS PERCENT (662/3%)
OF THE OUTSTANDING PRINCIPAL AMOUNT OF EACH CLASS AND EACH SERIES OF NOTES
ISSUED BY THE ISSUER HAVE APPROVED SUCH ACTION.

 

 

TEXTRON FINANCIAL FLOORPLAN MASTER NOTE TRUST

 

	
  Note Number:

  	
   

  	
  $                   

  
	
  CUSIP Number:

  	
   

  	
   

  
	
  ISIN Number:

  	
   

  	
   

  

 

Textron
Financial Floorplan Master Note Trust (herein referred to as the “Issuer”),
a Delaware statutory trust, for value received, hereby promises to pay to Cede &
Co., or registered assigns, subject to the following provisions, the principal
sum of [                ]
($[          ]), or such
greater or lesser amount as determined in accordance with the Indenture, at
such times and in such amounts provided below or in the Indenture.

 

This
Note is one of a duly authorized issue of Class A Floating Rate Term
Notes, Series 2005-A (the “Class A Notes”) issued and to
be issued under the Amended and Restated Indenture dated as of May 26,
2005 (as supplemented by the Series 2005-A Supplement dated as of May 26,
2005 (as such Series 2005-A Supplement may be amended, restated,
supplemented or otherwise modified from time to time, the “Supplement”)
and as it may be amended, restated, supplemented or otherwise modified from
time to time in accordance with its terms, the “Indenture”) among the
Issuer and The Bank of New York, a New York banking corporation, as Indenture
Trustee (the “Indenture Trustee”, which term includes any successor
trustee as permitted under the Indenture). 
Reference is hereby made to the Indenture  for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Issuer, the
Indenture Trustee and the Holders of the Class A Notes and the terms upon
which the Class A Notes are, and are to be, authenticated and
delivered.  Capitalized terms used herein
and not otherwise defined shall have the meanings set forth in the Indenture or
the Supplement, as the case may be.

 

The
Issuer promises to pay interest, if any, at the Class A Interest Rate from
time to time, on each Payment Date in each case on the outstanding principal
balance hereunder until such outstanding principal balance is paid or until the
Termination Date as provided in the Supplement. 
To the extent lawful and enforceable, interest on any Class A
Interest Shortfall shall accrue hereon to the extent provided in the
Supplement.  The interest and other
amounts so payable, and punctually paid, on any Payment Date will, as provided
in the Indenture, be paid to the Person in whose name this Note (or one or more
predecessor Notes) is registered at the close of business on the Record Date
for such interest, which shall be the last day of the Collection Period preceding
such Payment Date.

 

The
principal of this Note shall be payable on each Payment Date on which funds are
permitted or required to be used for such purpose in accordance with the
Supplement and the Indenture.  The
principal of this Note shall be due and payable no later than the Series 2005-A
Stated Maturity Date, unless previously repaid prior thereto as described in
the Indenture.

 

The
obligations of the Issuer under this Note and the Indenture are limited
recourse obligations of the Issuer as provided in the Indenture.  The payments of principal of, and interest
and other amounts with respect to, this Note are subject to the priority of
payments as provided in the Indenture and Supplement.

 

Unless
the certificate of authentication hereon has been executed by the Indenture
Trustee by the manual signature of one of its Authorized Officers, this Note
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

 

 

If an
Event of Default shall occur and be continuing, this Note may become or be
declared due and payable in the manner and with the effect provided in the
Indenture.

 

Title
to Notes shall pass solely by registration in the Register kept by the
Registrar, which for the Class A Notes initially shall be the Indenture
Trustee.

 

No
service charge shall be made for any registration of transfer or exchange of
this Note, but the Indenture Trustee or any Registrar may require payment of a
sum sufficient to cover any tax or other governmental charge that may be
imposed in relation thereto and any other reasonable expenses (including all
fees and expenses of the Indenture Trustee) connected therewith.

 

The
Issuer has structured the Indenture and the Class A Notes with the
intention that the Class A Notes will qualify under applicable tax law as
indebtedness, and the Issuer, the Residual Interestholder, the Servicer and
each Holder of a Class A Note or holder of any interest in a Class A
Note by acceptance of its Class A Note (or interest therein), agrees to
treat and to take no action inconsistent with the treatment of the Class A
Notes (or interest therein) for purposes of federal, state, local and foreign
income or franchise taxes and any other tax imposed on or measure by income, as
indebtedness.  Each Holder of a Class A
Note agrees that it will cause any holder of an interest therein acquiring such
interest through it to comply with the Indenture as to treatment as
indebtedness for certain tax purposes.

 

AS PROVIDED IN THE INDENTURE, THE INDENTURE AND THE NOTES SHALL BE CONSTRUED
IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK
(INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATION LAW OF THE STATE
OF NEW YORK, BUT OTHERWISE WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES).

 

 

IN WITNESS WHEREOF, the
Issuer has caused this Note to be executed by its officer thereunto duly
authorized.

 

 

	
   

  	
  TEXTRON FINANCIAL
  FLOORPLAN MASTER

  NOTE TRUST, as Issuer

  
	
   

  	
   

  
	
   

  	
  By: SUNTRUST DELAWARE
  TRUST

  COMPANY, not in its individual capacity but solely

  as Owner Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

 

INDENTURE TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

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

 

Dated:  May    , 2005

 

	
   

  	
  THE BANK OF NEW YORK,
  not in its individual

  capacity but solely as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

 

ASSIGNMENT

 

Social Security or other
identifying number of assignee 

 

 

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

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   **

  
	
   

  	
   

  	
   

  	
  Signature
  Guaranteed:

  

 

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

 

 

EXHIBIT A-2

 

FORM OF CLASS B SERIES 2005-A
FLOATING RATE TERM NOTE

[REGULATION S TEMPORARY BOOK-ENTRY NOTE]

[REGULATION S PERMANENT BOOK-ENTRY NOTE]

[U.S. RESTRICTED BOOK-ENTRY NOTE]

 

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED
UPON REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR, OR IN LIEU OF, THIS NOTE
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.

 

[Insert the following for U.S. Restricted
Book-Entry Note]

 

[THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933
(THE “SECURITIES ACT”) OR THE SECURITIES LAWS OF ANY OTHER JURISDICTION.
NEITHER THIS NOTE NOR ANY BENEFICIAL INTEREST OR PARTICIPATION HEREIN MAY BE
REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED
OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT
FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
AND ANY OTHER APPLICABLE JURISDICTION. BY ITS ACCEPTANCE HEREOF, THE HOLDER (1) REPRESENTS
THAT IT IS EITHER A “QUALIFIED INSTITUTIONAL BUYER” (A “QUALIFIED INSTITUTIONAL
BUYER”) (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”)), (2) AGREES
TO OFFER, SELL OR OTHERWISE TRANSFER THIS NOTE OR ANY INTEREST OR PARTICIPATION
HEREIN, PRIOR TO THE DATE WHICH IS THE LATER OF (X) TWO YEARS (OR SUCH SHORTER
PERIOD OF TIME AS PERMITTED BY RULE 144(k) OF THE SECURITIES ACT) AFTER THE
LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH TEXTRON
FINANCIAL FLOORPLAN MASTER NOTE TRUST (THE “ISSUER”) OR ANY AFFILIATE OF THE
ISSUER WAS THE OWNER OF THIS NOTE (OR ANY PREDECESSOR OF THIS NOTE) OR SUCH
INTEREST OR PARTICIPATION AND (Y) SUCH LATER DATE, IF ANY, AS MAY BE
REQUIRED BY ANY SUBSEQUENT CHANGE IN APPLICABLE LAW, ONLY (A) THE ISSUER OR
ANY OF THE INITIAL PURCHASERS, (B) PURSUANT TO A REGISTRATION STATEMENT
THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG
AS THIS NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER PURCHASING THIS NOTE OR
SUCH INTEREST OR PARTICIPATION FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF
ANOTHER QUALIFIED INSTITUTIONAL BUYER AND TO WHOM NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, IN EACH CASE IN A PRINCIPAL
AMOUNT OF NOT LESS THAN $500,000, (D) TO A PURCHASER THAT IS NOT A U.S.
PERSON IN AN “OFFSHORE TRANSACTION” WITHIN THE MEANING OF REGULATION S UNDER
THE SECURITIES ACT IN A PRINCIPAL AMOUNT OF NOT LESS THAN $500,000 OR (E) PURSUANT
TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND IN A PRINCIPAL AMOUNT

 

 

OF NOT LESS THAN $500,000, SUBJECT TO, IN
EACH OF (A)-(E), ANY REQUIREMENT OF LAW THAT THE DISPOSITION OF THIS NOTE OR
SUCH INTEREST OR PARTICIPATION BE AT ALL TIMES WITHIN ITS CONTROL, AND
COMPLIANCE WITH THE SECURITIES LAWS OF THE UNITED STATES AND ANY OTHER
APPLICABLE JURISDICTION AND WITH THE PROCEDURES SPECIFIED IN THE INDENTURE AND
THE INDENTURE SUPPLEMENT.  ANY OFFER,
SALE, OR TRANSFER PURSUANT TO (E) IS SUBJECT TO TE RIGHT OF THE ISSUER AND
THE INDENTURE TRUSTEE TO REQUIRE THE DELIVERY OF ANY OPINION OF COUNSEL,
CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM.]

 

THIS NOTE (OR A BENEFICIAL INTEREST OR PARTICIPATION HEREIN) MAY NOT
BE TRANSFERRED UNLESS, AFTER GIVING EFFECT TO THE TRANSFER, THE TRANSFEREE IS
HOLDING A PRINCIPAL AMOUNT WHICH IS EQUAL TO U.S.$500,000 OR INTEGRAL MULTIPLES
OF $100,000 IN EXCESS THEREOF.

 

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

 

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

 

[Insert the following for Regulation S
Temporary Book-Entry Note]

 

[PRIOR TO THE EXPIRATION OF THE 40-DAY ‘DISTRIBUTION COMPLIANCE
PERIOD’ (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT OF 1933 (THE “SECURITIES
ACT”)), THIS NOTE OR ANY BENEFICIAL INTEREST OR PARTICIPATION HEREIN MAY NOT
BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHIN THE UNITED STATES OR
TO, OR FOR THE ACCOUNT OR BENEFIT OF, A U.S. PERSON WITHIN THE MEANING OF
REGULATION S, EXCEPT TO A PERSON REASONABLY BELIEVED TO BE A QUALIFIED
INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT (“RULE
144A”)) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A AND THE
INDENTURE AND THE INDENTURE SUPPLEMENT OR OTHERWISE IN ACCORDANCE WITH
REGULATION S.

 

 

THIS NOTE (OR A BENEFICIAL INTEREST OR PARTICIPATION HEREIN) MAY NOT
BE TRANSFERRED UNLESS, AFTER GIVING EFFECT TO THE TRANSFER, THE TRANSFEREE IS
HOLDING A PRINCIPAL AMOUNT WHICH IS EQUAL TO U.S.$500,000 OR INTEGRAL MULTIPLES
OF $100,000 IN EXCESS THEREOF.]

 

THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES
THAT IT WILL NOT AT ANY TIME INSTITUTE AGAINST THE ISSUER OR US OR SOLICIT OR
JOIN OR COOPERATE WITH OR ENCOURAGE ANY INSTITUTION IN INSTITUTING AGAINST US
OR THE ISSUER, ANY BANKRUPTCY, REORGANIZATION, ARRANGEMENT, INSOLVENCY OR
LIQUIDATION PROCEEDINGS, OR OTHER PROCEEDINGS UNDER ANY UNITED STATES FEDERAL
OR STATE BANKRUPTCY OR SIMILAR LAW IN CONNECTION WITH ANY OBLIGATION RELATING
TO THE NOTES, THE INDENTURE OR ANY OF THE TRANSACTION DOCUMENTS UNLESS THE
HOLDERS OF NOT LESS THAN SIXTY-SIX AND TWO-THIRDS PERCENT (662/3%)
OF THE OUTSTANDING PRINCIPAL AMOUNT OF EACH CLASS AND EACH SERIES OF NOTES
ISSUED BY THE ISSUER HAVE APPROVED SUCH ACTION.

 

 

TEXTRON FINANCIAL FLOORPLAN MASTER NOTE TRUST

 

	
  Note Number:

  	
   

  	
  $                   

  
	
  CUSIP Number:

  	
   

  	
   

  
	
  ISIN Number:

  	
   

  	
   

  

 

Textron
Financial Floorplan Master Note Trust (herein referred to as the “Issuer”),
a Delaware statutory trust, for value received, hereby promises to pay to Cede &
Co., or registered assigns, subject to the following provisions, the principal
sum of [                  ]
($[          ]), or such
greater or lesser amount as determined in accordance with the Indenture, at
such times and in such amounts provided below or in the Indenture.

 

This
Note is one of a duly authorized issue of Class B Floating Rate Term
Notes, Series 2005-A (the “Class B Notes”) issued and to
be issued under the Amended and Restated Indenture dated as of May 26,
2005 (as supplemented by the Series 2005-A Supplement dated as of May 26,
2005 (as such Series 2005-A Supplement may be amended, restated,
supplemented or otherwise modified from time to time, the “Supplement”)
and as it may be amended, restated, supplemented or otherwise modified from
time to time in accordance with its terms, the “Indenture”) among the
Issuer and The Bank of New York, a New York banking corporation, as Indenture
Trustee (the “Indenture Trustee”, which term includes any successor
trustee as permitted under the Indenture). 
Reference is hereby made to the Indenture  for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Issuer, the
Indenture Trustee and the Holders of the Class B Notes and the terms upon
which the Class B Notes are, and are to be, authenticated and
delivered.  Capitalized terms used herein
and not otherwise defined shall have the meanings set forth in the Indenture or
the Supplement, as the case may be.

 

The
Issuer promises to pay interest, if any, at the Class B Interest Rate from
time to time, on each Payment Date in each case on the outstanding principal
balance hereunder until such outstanding principal balance is paid or until the
Termination Date as provided in the Supplement. 
To the extent lawful and enforceable, interest on any Class B
Interest Shortfall shall accrue hereon to the extent provided in the
Supplement.  The interest and other
amounts so payable, and punctually paid, on any Payment Date will, as provided
in the Indenture, be paid to the Person in whose name this Note (or one or more
predecessor Notes) is registered at the close of business on the Record Date
for such interest, which shall be the last day of the Collection Period
preceding such Payment Date.

 

The
principal of this Note shall be payable on each Payment Date on which funds are
permitted or required to be used for such purpose in accordance with the
Supplement and the Indenture.  The
principal of this Note shall be due and payable no later than the Series 2005-A
Stated Maturity Date, unless previously repaid prior thereto as described in
the Indenture.

 

The
obligations of the Issuer under this Note and the Indenture are limited
recourse obligations of the Issuer as provided in the Indenture.  The payments of principal of, and interest
and other amounts with respect to, this Note are subject to the priority of
payments as provided in the Indenture and Supplement.

 

Unless
the certificate of authentication hereon has been executed by the Indenture
Trustee by the manual signature of one of its Authorized Officers, this Note
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

 

If an
Event of Default shall occur and be continuing, this Note may become or be
declared due and payable in the manner and with the effect provided in the
Indenture.

 

 

Title
to Notes shall pass solely by registration in the Register kept by the
Registrar, which for the Class B Notes initially shall be the Indenture
Trustee.

 

No
service charge shall be made for any registration of transfer or exchange of
this Note, but the Indenture Trustee or any Registrar may require payment of a
sum sufficient to cover any tax or other governmental charge that may be
imposed in relation thereto and any other reasonable expenses (including all
fees and expenses of the Indenture Trustee) connected therewith.

 

The
Issuer has structured the Indenture and the Class B Notes with the
intention that the Class B Notes will qualify under applicable tax law as
indebtedness, and the Issuer, the Residual Interestholder, the Servicer and
each Holder of a Class B Note or holder of any interest in a Class B
Note by acceptance of its Class B Note (or interest therein), agrees to
treat and to take no action inconsistent with the treatment of the Class B
Notes (or interest therein) for purposes of federal, state, local and foreign
income or franchise taxes and any other tax imposed on or measure by income, as
indebtedness.  Each Holder of a Class B
Note agrees that it will cause any holder of an interest therein acquiring such
interest through it to comply with the Indenture as to treatment as
indebtedness for certain tax purposes.

 

AS
PROVIDED IN THE INDENTURE, THE INDENTURE AND THE NOTES SHALL BE CONSTRUED IN
ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401
OF THE GENERAL OBLIGATION LAW OF THE STATE OF NEW YORK, BUT OTHERWISE WITHOUT
REGARD TO CONFLICT OF LAWS PRINCIPLES).

 

 

IN WITNESS WHEREOF, the
Issuer has caused this Note to be executed by its officer thereunto duly
authorized.

 

 

	
   

  	
  TEXTRON FINANCIAL
  FLOORPLAN MASTER

  NOTE TRUST, as Issuer

  
	
   

  	
   

  
	
   

  	
  By: SUNTRUST DELAWARE
  TRUST

  COMPANY, not in its individual capacity but solely

  as Owner Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

 

INDENTURE TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

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

 

Dated:  May     , 2005

 

 

	
   

  	
  THE BANK OF NEW YORK,
  not in its individual

  capacity but solely as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

 

ASSIGNMENT

 

Social Security or other
identifying number of assignee 

 

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

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   **

  
	
   

  	
   

  	
   

  	
  Signature
  Guaranteed:

  

 

 

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

 

 

EXHIBIT A-3

 

FORM OF CLASS C SERIES 2005-A
PRINCIPAL ONLY TERM NOTE

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE
“SECURITIES ACT”) OR THE SECURITIES LAWS OF ANY OTHER JURISDICTION. NEITHER
THIS NOTE NOR ANY BENEFICIAL INTEREST OR PARTICIPATION HEREIN MAY BE
REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND ANY OTHER APPLICABLE JURISDICTION.

 

THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES
THAT IT WILL NOT AT ANY TIME INSTITUTE AGAINST THE ISSUER OR US OR SOLICIT OR
JOIN OR COOPERATE WITH OR ENCOURAGE ANY INSTITUTION IN INSTITUTING AGAINST US
OR THE ISSUER, ANY BANKRUPTCY, REORGANIZATION, ARRANGEMENT, INSOLVENCY OR
LIQUIDATION PROCEEDINGS, OR OTHER PROCEEDINGS UNDER ANY UNITED STATES FEDERAL
OR STATE BANKRUPTCY OR SIMILAR LAW IN CONNECTION WITH ANY OBLIGATION RELATING
TO THE NOTES, THE INDENTURE OR ANY OF THE TRANSACTION DOCUMENTS UNLESS THE
HOLDERS OF NOT LESS THAN SIXTY-SIX AND TWO-THIRDS PERCENT (662/3%)
OF THE OUTSTANDING PRINCIPAL AMOUNT OF EACH CLASS AND EACH SERIES OF NOTES
ISSUED BY THE ISSUER HAVE APPROVED SUCH ACTION.

 

 

TEXTRON FINANCIAL FLOORPLAN MASTER NOTE TRUST

 

	
  Note Number:

  	
   

  	
  $           

  
	
  CUSIP Number:

  	
   

  	
   

  
	
  ISIN Number:

  	
   

  	
   

  

 

Textron
Financial Floorplan Master Note Trust (herein referred to as the “Issuer”),
a Delaware statutory trust, for value received, hereby promises to pay to Cede &
Co., or registered assigns, subject to the following provisions, the principal
sum of [                 ]
($[          ]), or such
greater or lesser amount as determined in accordance with the Indenture, at
such times and in such amounts provided below or in the Indenture.

 

This
Note is one of a duly authorized issue of Class C Principal Only Term
Notes, Series 2005-A (the “Class C Notes”) issued and to
be issued under the Amended and Restated Indenture dated as of May 26,
2005 (as supplemented by the Series 2005-A Supplement dated as of May 26,
2005 (as such Series 2005-A Supplement may be amended, restated,
supplemented or otherwise modified from time to time, the “Supplement”)
and as it may be amended, restated, supplemented or otherwise modified from
time to time in accordance with its terms, the “Indenture”) among the
Issuer and The Bank of New York, a New York banking corporation, as Indenture
Trustee (the “Indenture Trustee”, which term includes any successor
trustee as permitted under the Indenture). 
Reference is hereby made to the Indenture for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of the
Issuer, the Indenture Trustee and the Holders of the Class C Notes and the
terms upon which the Class C Notes are, and are to be, authenticated and
delivered.  Capitalized terms used herein
and not otherwise defined shall have the meanings set forth in the Indenture or
the Supplement, as the case may be.

 

This
Note shall not bear interest.

 

The
principal of this Note shall be payable on each Payment Date on which funds are
permitted or required to be used for such purpose in accordance with the
Supplement and the Indenture.  The
principal of this Note shall be due and payable no later than the Series 2005-A
Stated Maturity Date, unless previously repaid prior thereto as described in
the Indenture.

 

The
obligations of the Issuer under this Note and the Indenture are limited
recourse obligations of the Issuer as provided in the Indenture.  The payments of principal of, and other
amounts with respect to, this Note are subject to the priority of payments as
provided in the Indenture and Supplement.

 

Unless
the certificate of authentication hereon has been executed by the Indenture
Trustee by the manual signature of one of its Authorized Officers, this Note
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

 

If an
Event of Default shall occur and be continuing, this Note may become or be
declared due and payable in the manner and with the effect provided in the
Indenture.

 

Title
to Notes shall pass solely by registration in the Register kept by the
Registrar, which for the Class C Notes initially shall be the Indenture
Trustee.  Neither this Note nor any
interest herein may be sold, pledged, participated, transferred, disposed of or
otherwise alienated (each, a “Transfer”), and the Registrar will not
recognize any Transfer or purported Transfer of this Note, unless prior to such
Transfer

 

 

or purported Transfer the
Indenture Trustee and the Registrar have received an Opinion of Counsel to the
effect that, for federal income tax purposes, such Transfer will not cause the
Issuer to be characterized as an association or publicly traded partnership as
a corporation.  Any Transfer or purported
Transfer of this Note in violation of the preceding sentence shall be void ab initio and of no effect.

 

No
service charge shall be made for any registration of transfer or exchange of
this Note, but the Indenture Trustee or any Registrar may require payment of a
sum sufficient to cover any tax or other governmental charge that may be
imposed in relation thereto and any other reasonable expenses (including all
fees and expenses of the Indenture Trustee) connected therewith.

 

AS
PROVIDED IN THE INDENTURE, THE INDENTURE AND THE NOTES SHALL BE CONSTRUED IN
ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401
OF THE GENERAL OBLIGATION LAW OF THE STATE OF NEW YORK, BUT OTHERWISE WITHOUT
REGARD TO CONFLICT OF LAWS PRINCIPLES).

 

 

IN WITNESS WHEREOF, the
Issuer has caused this Note to be executed by its officer thereunto duly
authorized.

 

 

	
   

  	
  TEXTRON FINANCIAL
  FLOORPLAN MASTER

  NOTE TRUST, as Issuer

  
	
   

  	
   

  
	
   

  	
  By: SUNTRUST DELAWARE
  TRUST

  COMPANY, not in its individual capacity but solely

  as Owner Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

 

INDENTURE TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

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

 

Dated:  May     , 2005

 

	
   

  	
  THE BANK OF NEW YORK,
  not in its individual

  capacity but solely as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

 

ASSIGNMENT

 

Social Security or other
identifying number of assignee                       

 

 

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

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   **

  
	
   

  	
   

  	
   

  	
  Signature
  Guaranteed:

  

 

 

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

 

 

EXHIBIT B

 

FORM OF PAYMENT DATE STATEMENT

 

[attached]

 

 

EXHIBIT C

 

FORM OF CERTIFICATE OF BENEFICIAL
OWNERSHIP

 

[Euroclear Bank S.A./N.V., as operator of the Euroclear System]

 

[Clearstream Banking, société anonyme]

 

	
  Re:

  	
  TEXTRON FINANCIAL FLOORPLAN MASTER NOTE TRUST

  
	
   

  	
  $[                            ]

  

 

Reference is
hereby made to the Amended and Restated Indenture dated as of May 26, 2005
between The Bank of New York (the “Indenture Trustee”) and Textron Financial
Floorplan Master Note Trust (the “Issuer”) (as supplemented by the Series 2005-A
Supplement, dated as of May 26, 2005, among the Company, Indenture Trustee
and Textron Financial Corporation, as servicer, the “Indenture”).  Capitalized terms not defined in this
Certificate shall have the meanings given to them in the Indenture.

 

This is to
certify that as of the date hereof, and except as set forth below, the
above-captioned [Class A] [Class B] Notes (the “Securities”) held by
you for our account are beneficially owned by (a) persons that are not
U.S. person(s) or (b) Qualified Institutional Buyers.  As used in this paragraph, the term “U.S.
person” has the meaning given to it by Regulation S under the Securities Act.

 

As used
herein, “United States” has the meaning given to it by Regulation S under the
Securities Act.

 

We undertake
to advise you promptly by tested telex on or prior to the date on which you
intend to submit your certification relating to the Securities held by you for
our account in accordance with your operating procedures in any applicable
statement herein is not correct on such date, and in the absence of any such
notification it may be assumed that this certification applies as of such date.

 

This
certification excepts and does not relate to $                   
of such interest in the above Securities in respect of which we are not able to
certify and as to which we understand exchange and delivery of definitive
Securities (or, if relevant, exercise of any rights or collection of any
interest) cannot be made until we do so certify.

 

We understand
that this certification is required in connection with certain securities laws
of the United States.  In connection
therewith, if administrative or legal proceedings are commenced or threatened
in connection with which this certification is or would be relevant, we
irrevocably authorize you to produce this certification to any party in such
proceedings.

 

	
  Date:

  	
   

  	
  ,

  	
   

  	
   (1)

  	
   

  

 

 

(1)                                  Not
earlier than 15 days prior to the certification event to which the
certification relates.

 

 

	
  By:

  	
   

  	
   

  

 

As, or as agent for, the beneficial owner(s) of the Securities to which
this certificate relates.

 

 

EXHIBIT D

 

FORM OF TRANSFER CERTIFICATE FOR
TRANSFER OR

EXCHANGE FROM REGULATION S BOOK-ENTRY NOTE

TO U.S. RESTRICTED BOOK-ENTRY NOTE

 

[Indenture Trustee or Transfer Agent]

 

[Address]

 

Re:                               TEXTRON
FINANCIAL FLOORPLAN MASTER NOTE TRUST

$[                        ]

 

Reference is hereby made to the Amended and Restated Indenture dated as
of May 26, 2005 between The Bank of New York (the “Indenture Trustee”) and
Textron Financial Floorplan Master Note Trust (the “Issuer”) (as supplemented
by the Series 2005-A Supplement, dated as of May 26, 2005,
among the Company, Indenture Trustee and Textron Financial Corporation, as
servicer, the “Indenture”).  Capitalized
terms not defined in this Certificate shall have the meanings given to them in
the Indenture.

 

This letter relates to                                    
principal amount of [Class A] [Class B] Notes (the “Securities”)
which are held in the form of the Regulation S [Temporary] [Permanent]
Book-Entry Note (CUSIP No.       ) (ISIN Code      )
[(Common Code      ) with [[Euroclear] Clearstream,
Luxembourg]] through The Depository Trust Company by or on behalf of transferor
as beneficial owner (the “Transferor”). 
The Transferor has requested an exchange or transfer of its interest in
the Securities for a beneficial interest in the U.S. Restricted Book-Entry Note
(CUSIP No.      ).

 

In connection with such request, and in respect of the  Securities, the Transferor does hereby
certify that such Securities are being transferred in accordance with Rule 144A
under the United States Securities Act of 1933, as amended (the “Securities Act”),
to a transferee that the Transferor reasonably believes is purchasing the
Securities for its own account or an account with respect to which the
transferee exercises sole investment discretion and the transferee and any such
account is a “qualified institutional buyer” within the meaning of Rule 144A,
in each case in a transaction meeting the requirements of Rule 144A and in
accordance with any applicable securities laws of any state of the United
States or any other jurisdiction.

 

[REMAINDER OF THIS PAGE
LEFT BLANK INTENTIONALLY]

 

 

This certificate and the statements contained herein are made for your
benefit and the benefit of the Company and the dealers of the Securities.

 

	
   

  	
  [Insert Name of Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   Title:

  
	
   

  
	
  Dated:

  	
   

  	
   

  
						

 

The
undersigned represents and warrants that it is purchasing the Securities for
its own account or an account with respect to which it exercises sole
investment discretion and that it and any such account is a Qualified
Institutional Buyer, and is aware that the sale to it is being made in reliance
on Rule 144A and acknowledges that it has received such information
regarding the Issuer as the undersigned has requested pursuant to Rule 144A
or has determined not to request such information and that it is aware that the
transferor is relying upon the undersigned’s foregoing representations in order
to claim the exemption from registration provided by Rule 144A.

 

	
   

  	
  [Insert Name of Transferee]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   Title:

  
	
   

  
	
   

  
	
  Dated:

  	
   

  	
   

  
						

 

 

EXHIBIT E

 

FORM OF TRANSFER CERTIFICATE

FOR EXCHANGE OR TRANSFER FROM

U.S. RESTRICTED BOOK-ENTRY NOTE TO REGULATION S

BOOK-ENTRY NOTE

 

[Indenture Trustee or Transfer Agent]

[Address]

 

Re:                               TEXTRON
FINANCIAL FLOORPLAN MASTER NOTE TRUST

$[                      ]

 

Reference is hereby made to the Amended and Restated Indenture dated as
of May 26, 2005 between The Bank Of New York (the “Indenture Trustee”) and
Textron Financial Floorplan Master Note Trust (the “Issuer”) (as supplemented
by the Series 2005-A Supplement, dated as of May 26, 2005,
among the Company, Indenture Trustee and Textron Financial Corporation, as
servicer, the “Indenture”).  Capitalized
terms not defined in this Certificate shall have the meanings given to them in
the Indenture.

 

This letter relates to                       
principal amount of [Class A] [Class B] Notes (the “Securities”)
represented by a beneficial interest in the U.S. Restricted Book-Entry Note
(CUSIP No.      ) held with The Depository Trust
Company by or on behalf of [transferor] as beneficial owner (the “Transferor”).  The Transferor has requested an exchange or
transfer of its beneficial interest for an interest in the Regulation S
[Temporary] [Permanent] Book-Entry Note (CUSIP No.       )
(ISIN Code           )
(Common Code              )
to be held [with [Euroclear] [Clearstream, Luxembourg]] through the Depository.

 

In connection with such request and in respect of the Securities, the
Transferor does hereby certify that such exchange or transfer has been effected
in accordance with the transfer restrictions set forth in the Securities and
pursuant to and in accordance with Regulation S under the Securities Act, and
accordingly the Transferor does hereby certify that:

 

(1)                                  the
offer of the Securities was not made to a person in the United States;

 

(2)                                  (A)                              at
the time the buy order was originated, the transferee was outside the United
States or the Transferor and any person acting on its behalf reasonably
believed that the transferee was outside the United States, or

 

(B)                                the
transaction was executed in, on or through the facilities of a designated
offshore securities market and neither the Transferor nor any person acting on
its behalf knows that the transaction was prearranged with a buyer in the
United States;

 

(3)                                  no
directed selling efforts have been made in contravention of the requirements of
Rule 903(b) or 904(b) of Regulation S, as applicable;

 

(4)                                  the
transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act.] [Include if transfer is to the Regulation
S Temporary Book-entry Note:]; and

 

 

(5)                                  upon
completion of the transaction, the beneficial interest being transferred as
described above will be held with The Depository Trust Company through
Euroclear or Clearstream, Luxembourg or both (Common Code             
[(ISIN Code          )]).]

 

This
certificate and the statements contained herein are made for your benefit and
the benefit of the Company and the dealers.

 

	
   

  	
  [Insert Name of Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   Title:

  
	
   

  
	
  Dated:

  	
   

  	
   

  
						

 

The
undersigned represents and warrants that it is purchasing the Securities for
its own account or an account with respect to which it exercises sole
investment discretion and that it and any such account is not a “U.S. Person”
within the meaning of Regulation S and is aware that the sale to it is being
made in reliance on Rule 903 or 904 under Regulation S and that it is
aware that the transferor is relying upon the undersigned’s foregoing
representations in order to claim the exemption from registration provided by
Regulation S.

 

	
   

  	
  [Insert Name of Transferee]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   Title:

  
	
   

  
	
  Dated:Exhibit 10.52

 

Macadamia Nut Purchase Agreement

Hamakua Macadamia Nut Company, Inc. &
ML Macadamia Orchards, L. P.

Calendar Years 2007 through 2012

 

This
Macadamia Nut Purchase Agreement is entered into on the date set forth below by
and between Hamakua Macadamia Nut Company, Inc., a Hawaii Corporation (“HMNC”)
and ML Macadamia Orchards, L.P. (“MLP”).

 

Whereas,
HMNC is experienced and capable in all aspects of the business of processing
and marketing macadamia nuts;

 

Whereas,
MLP is the legal and beneficial owner of macadamia nut crop produced in certain
macadamia nut orchards in Hawaii;

 

Whereas,
HMNC desires to purchase wet-in-shell (“WIS”) macadamia nuts from MLP as
provided herein;

 

Now,
therefore, in consideration of the promises and mutual covenants and agreements
set forth herein, the parties agree as follows:

 

1.  Term. 
This Agreement shall be deemed to have commenced for all purposes as of January 1,
2007 and shall continue in full force and effect until December 31, 2012,
unless terminated earlier as provided herein.

 

2.  Delivery.  MLP shall harvest macadamia nuts and fill
containers suitable for transport as mutually agreed upon, and arrange for
pickup or delivery of wet-in-husk (“WIH”) nuts from MLP’s orchards or WIS nuts
from a designated husking station. MLP may, at its option, husk and/or deliver
nuts prior to delivery to HMNC. If MLP husks or delivers nuts, MLP will be
entitled to husking and/or delivery bonus outlined in section 7. Ownership
of the nut crop will transfer from Seller to HMNC upon pickup by HMNC or
delivery by MLP to HMNC.

 

3.
Purchase and Sale.  MLP agrees to
sell and HMNC agrees to purchase approximately 6 million pounds (between 5.8
and 6.2 million) of WIS macadamia nuts annually from various MLP orchards. The
6 million pounds shall be divided into three equal segments of approximately 2
million pounds each. The nut purchase price for Segment I (2 million pounds)
under this contract shall be renegotiated on or before December 31, 2008
for the remaining four years of the contract. The nut purchase price for
Segment II (2 million pounds) shall be renegotiated on or before December 31,
2010 for the remaining two years of the contract. If the Parties are unable to
negotiate a mutually agreeable price relative to Segment I or II, the
production from that segment may be withdrawn from the contract and sold by MLP
to other parties.

 

4.  Blended Index Crop Price.  A Blended Index Crop Price (“BICP”) per pound
shall be calculated each year for all pounds delivered (adjusted to 20% moisture
and 30% SK/DIS recovery). The BICP shall be based 60% on Hamakua’s weighted
average bulk nut price for the preceding crop year (July-June) and 40% on a
fixed component of 85 cents per pound as outlined in Exhibit A. The
initial BICP shall be determined based on HMNC’s average bulk nut price for the
2006-2007 crop year (July 1, 2006 – June 30, 2007) and shall apply to
all deliveries in 2007. The BICP shall apply to all deliveries from all
segments until their respective renegotiation dates.

 

5.
Minimum and Maximum BICP Guidelines The Parties agree that the BICP for
any year shall not be less than 75 cents per pound and shall be no more than 95
cents per pound (adjusted to 20% moisture and

 

1

 

30%
SK/DIS recovery).
The Parties further agree that any change in the BICP shall be limited to +/- 7
cents annually.

 

6. Spot Price Adjustment
Not withstanding the foregoing, if HMNC pays a
weighted average spot price higher than the MLP contract price during any
calendar year, MLP will receive an additional nut price adjustment equal to 50%
of the difference between the weighted average spot price and the prevailing
contract price. This provision does not affect the index calculations. Any
additional payment shall be calculated and paid by HMNC no later than January 31st
of the succeeding year.

 

Any
spot prices negotiated between MLP and HMNC for deliveries above contract
volumes will not be included in the calculation of the Spot Price Adjustment
above.

 

7.
Husking and Delivery Bonuses - There shall be no charges for hauling or
husking by HMNC. HMNC will pay a Hauling Bonus of $.02 per pound WIS (adjusted
to 20% moisture and 30% SK/DIS recovery) for WIS nuts husked by MLP and a
hauling bonus of $.02 per pound WIS (adjusted to 20% moisture and 30% SK/DIS
recovery) for nuts delivered to HMNC by MLP.

 

8.
Payment Terms.  Payments shall be made within 30 days of the
date of delivery.

 

9.  PACA Lien – HMNC acknowledges that WIS macadamias are a
perishable agricultural commodity. HMNC further concedes that all receivables
related to deliveries of WIS or WIH nuts are subject to and secured by the
provisions of the Perishable Agricultural Commodities Act of 1930.

 

10.  Sampling.  HMNC and MLP shall agree on such methods and
procedures as may be appropriate to enable HMNC to determine the gross
wet-in-shell weight, the moisture content and the kernel recovery of the
macadamia nuts delivered to it by MLP with as much accuracy as is reasonably
practicable.  The procedures to be used
in sampling for moisture, kernel recovery and percentage of husked WIS nuts
included in WIH nut loads and in calculating the payment to MLP are set forth
in Exhibit B. Any deviations from the sampling procedure shall be by
mutual agreement only.

 

11.  Accounting and Reports.  HMNC shall keep full and accurate records and
accounts showing, among other things, dates of delivery and weights of nuts
from the orchards, all wet-in-husk weights measured, and all other information
that may be necessary or desirable in order to calculate and verify payments to
MLP under this Agreement.

Along with each payment for deliveries,
HMNC will provide a written report to MLP describing the shipment delivery
weight (WIH or WIS), the quality analysis results, and the calculations that
determine payment.

 

HMNC
agrees to provide a report, prepared and certified by an independent
accountant, by August 15 of each calendar year, detailing the BICP to be
used for payment of deliveries in that calendar year. HMNC also agrees to
provide a report, prepared and certified by an independent accountant, within
45 days from the end of each calendar year, detailing the weighted average WIS
price paid by HMNC to independent growers for the preceding year. MLP shall
have 90 days from receipt of each report to object or investigate.

 

MLP
shall be entitled to observe the sampling process upon reasonable notice and
shall be entitled to any information necessary or desirable to verify the
accuracy of the nut price or payment. To the extent that information is shared
between the parties hereunder and is not otherwise in the public domain, both
parties agree to keep such information confidential except as may be required
by law or in connection with any litigation between the parties.

 

2

 

12. 
Termination.  The parties
may terminate this Agreement at any time by mutual agreement in writing.  In the event that any party shall be in
default (as defined below), the non-defaulting party may terminate this
Agreement at any time by delivering written notice of such termination to the
defaulting party.

 

A party
shall be in “default” under this Agreement in the event that (i) it files
any voluntary proceeding for dissolution or under any federal or state
bankruptcy, insolvency, receivership or similar law; (ii) any such
proceeding is commenced against it involuntarily and is not dismissed within 60
days; (iii) it makes any composition with or assignment for the benefit of
its creditors; (iv) it enters into any corporate reorganization or
acquisition without making adequate provision for the performance of its
obligations under this Agreement; (v) it fails to perform any of its
obligations when due under this Agreement and it fails to correct such
non-performance within 30 days after written demand for performance is made by
the other party; or (vi) it repeatedly fails to perform its obligations
under this Contract except  after written
demand for performance.

 

13.  Notice.  For convenience of operation hereunder, each
of HMNC and MLP shall designate one representative to serve as the channel of
communication for delivering information to and securing necessary action by
its principals.  Any party may change its
representative from time-to-time by delivering written notice of such change to
the other party.  Until further notice is
given, each party’s representative shall be the person listed in the notice
address below.

 

Any and all
notices, demands, or other communications (collectively, “notice”) requiring or
desired to be given hereunder by either party shall be in writing and shall be
validly given or made to the other party or his authorized representative at
the address set forth below, if served either personally or if deposited in the
United States mails, certified or registered, postage prepaid, or if sent by
fax.

 

	
  HMNC:

  	
  Hamakua
  Macadamia Nut Company, Inc.

  	
   

  	
   

  
	
   

  	
  61-3251
  Maluokalani Street

  	
   

  	
   

  
	
   

  	
  P.O. Box
  44715

  	
   

  	
   

  
	
   

  	
  Kawaihae,
  Hawaii 96743

  	
   

  	
   

  
	
   

  	
  Attention:
  President

  	
  Fax: (808)
  882-8335

  
	
   

  	
   

  	
   

  	
   

  
	
  MLP:

  	
  ML
  Macadamia Orchards, L.P.

  	
   

  	
   

  
	
   

  	
  26-238
  Hawaii Belt Road

  	
   

  	
   

  
	
   

  	
  Hilo,
  Hawaii 96720

  	
   

  	
   

  
	
   

  	
  Attention:
  President

  	
  Fax: (808)
  969-8152

  
					

 

If such
notice is delivered personally, service shall conclusively be deemed to have
been made at the time of such delivery. 
If such notice is given by mail, service shall conclusively be deemed to
have been made 72 hours after deposit thereof in the mail as provided for
above.  If such notice is given by fax,
service shall conclusively be deemed to have been made 24 hours after the
transmission thereof and receipt of the proper response code.  Any party may change its address for the
purpose of receiving notices as herein provided by a written notice given to
the other party.

 

14.  Force Majeure.  Neither of the parties hereto shall be liable
or accountable to the other party for any delay in complying or any failure to
comply with any of the terms, provisions or conditions of this Agreement in the
event that such failure shall have been caused by an act of God, strike,
lockout, public enemy, war, civil commotion, riot, condemnation, judicial or
governmental order or other requirements of law which directly prohibit the
performing by either party of the obligations hereunder (such as, but not
limited to, governmental regulations concerning the hazards of marketing or
consumption of macadamia nuts) or the refusal or failure of any governmental
office or officer to grant any permit or order necessary

 

3

 

for compliance herewith by either party
hereto, nor shall either of the parties hereto be liable or accountable to the
other party for any damages arising from any such delay or failure.

 

15. Waiver.  The failure of either party to enforce its
rights upon any default on the part of the other party shall not be construed as
a waiver thereof, nor shall any custom or practice which may grow up between
the parties in the course of administering this Agreement be construed to waive
or to lessen the right of either party to demand performance by the other party
or exercise its rights in the event of default. 
No provision of, or default under this Agreement, may be waived except
by a notice in writing signed by the party making the waiver.  A waiver by either party of a particular
default shall not be deemed to be a waiver of any other subsequent default.

 

16. Assignment.  Neither of the parties hereto may assign any
of its rights or obligations under this Agreement without the prior written
consent of the other party.  No consent
or approval required under this Agreement shall be unreasonably withheld and no
charge for the giving of such consent or approval shall be made.

 

17. Entire
Agreement.  This Agreement represents
the entire agreement and understanding of the parties with respect to the
subject matter hereof.  The parties specifically
acknowledge and agree that no joint venture or lease is created hereby and that
neither party is hereby appointed as the agent of the other party.

 

18. Governing
Law.  This Agreement will primarily
be performed in and shall be governed by and construed in accordance with the
laws of the State of Hawaii. Each of the parties consents to the jurisdiction
of the courts of the State of Hawaii or any federal court sitting in Hawaii and
agrees that Hawaii is an appropriate venue for any action that may be brought
under this Agreement.

 

 

IN WITNESS
WHEREOF, HMNC and MLP have caused this Macadamia Nut Purchasing
Agreement to be
executed and delivered by their duly authorized representatives on this 16th
day of December, 2004.

 

 

	
  HMNC:

  	
  HAMAKUA
  MACADAMIA NUT COMPANY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/
  Richard Schnitzler

  	
   

  
	
   

  	
   

  	
  Richard
  Schnitzler

  
	
   

  	
   

  	
  Its
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  MLP:

  	
  ML
  MACADAMIA ORCHARDS, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Dennis
  J. Simonis

  	
   

  
	
   

  	
   

  	
  Dennis J.
  Simonis

  
	
   

  	
   

  	
  Its
  President

  

 

4

 

Exhibit A

 

Macadamia Nut Purchase Agreement

Hamakua Macadamia Nut Company, Inc. &
ML Macadamia Orchards, L.P.

Blended Index Crop Price (BICP) Based on Bulk Kernel Price

 

	
  Ave Bulk Kernel Price

  At least & less than

  	
   

  	
  60% Component

  Crop Price

  	
   

  	
  40% Fixed Component

  Crop Price

  	
   

  	
  Blended Index

  Crop Price

  	
   

  
	
  6.65

  	
  & above

  	
   

  	
   

  	
  1.01

  	
   

  	
  0.85

  	
   

  	
  0.95

  	
   

  
	
  6.60

  	
  6.65

  	
   

  	
   

  	
  1.00

  	
   

  	
  0.85

  	
   

  	
  0.94

  	
   

  
	
  6.55

  	
  6.60

  	
   

  	
   

  	
  0.99

  	
   

  	
  0.85

  	
   

  	
  0.93

  	
   

  
	
  6.50

  	
  6.55

  	
   

  	
   

  	
  0.98

  	
   

  	
  0.85

  	
   

  	
  0.93

  	
   

  
	
  6.45

  	
  6.50

  	
   

  	
   

  	
  0.98

  	
   

  	
  0.85

  	
   

  	
  0.93

  	
   

  
	
  6.40

  	
  6.45

  	
   

  	
   

  	
  0.97

  	
   

  	
  0.85

  	
   

  	
  0.92

  	
   

  
	
  6.35

  	
  6.40

  	
   

  	
   

  	
  0.96

  	
   

  	
  0.85

  	
   

  	
  0.92

  	
   

  
	
  6.30

  	
  6.35

  	
   

  	
   

  	
  0.95

  	
   

  	
  0.85

  	
   

  	
  0.91

  	
   

  
	
  6.25

  	
  6.30

  	
   

  	
   

  	
  0.94

  	
   

  	
  0.85

  	
   

  	
  0.90

  	
   

  
	
  6.20

  	
  6.25

  	
   

  	
   

  	
  0.93

  	
   

  	
  0.85

  	
   

  	
  0.90

  	
   

  
	
  6.15

  	
  6.20

  	
   

  	
   

  	
  0.92

  	
   

  	
  0.85

  	
   

  	
  0.89

  	
   

  
	
  6.10

  	
  6.15

  	
   

  	
   

  	
  0.91

  	
   

  	
  0.85

  	
   

  	
  0.89

  	
   

  
	
  6.05

  	
  6.10

  	
   

  	
   

  	
  0.90

  	
   

  	
  0.85

  	
   

  	
  0.88

  	
   

  
	
  6.00

  	
  6.05

  	
   

  	
   

  	
  0.89

  	
   

  	
  0.85

  	
   

  	
  0.87

  	
   

  
	
  5.95

  	
  6.00

  	
   

  	
   

  	
  0.88

  	
   

  	
  0.85

  	
   

  	
  0.87

  	
   

  
	
  5.90

  	
  5.95

  	
   

  	
   

  	
  0.87

  	
   

  	
  0.85

  	
   

  	
  0.86

  	
   

  
	
  5.85

  	
  5.90

  	
   

  	
   

  	
  0.86

  	
   

  	
  0.85

  	
   

  	
  0.86

  	
   

  
	
  5.80

  	
  5.85

  	
   

  	
   

  	
  0.85

  	
   

  	
  0.85

  	
   

  	
  0.85

  	
   

  
	
  5.75

  	
  5.80

  	
   

  	
   

  	
  0.84

  	
   

  	
  0.85

  	
   

  	
  0.84

  	
   

  
	
  5.70

  	
  5.75

  	
   

  	
   

  	
  0.83

  	
   

  	
  0.85

  	
   

  	
  0.84

  	
   

  
	
  5.65

  	
  5.70

  	
   

  	
   

  	
  0.82

  	
   

  	
  0.85

  	
   

  	
  0.83

  	
   

  
	
  5.60

  	
  5.65

  	
   

  	
   

  	
  0.81

  	
   

  	
  0.85

  	
   

  	
  0.83

  	
   

  
	
  5.55

  	
  5.60

  	
   

  	
   

  	
  0.80

  	
   

  	
  0.85

  	
   

  	
  0.82

  	
   

  
	
  5.50

  	
  5.55

  	
   

  	
   

  	
  0.79

  	
   

  	
  0.85

  	
   

  	
  0.81

  	
   

  
	
  5.45

  	
  5.50

  	
   

  	
   

  	
  0.78

  	
   

  	
  0.85

  	
   

  	
  0.81

  	
   

  
	
  5.40

  	
  5.45

  	
   

  	
   

  	
  0.77

  	
   

  	
  0.85

  	
   

  	
  0.80

  	
   

  
	
  5.35

  	
  5.40

  	
   

  	
   

  	
  0.76

  	
   

  	
  0.85

  	
   

  	
  0.80

  	
   

  
	
  5.30

  	
  5.35

  	
   

  	
   

  	
  0.75

  	
   

  	
  0.85

  	
   

  	
  0.79

  	
   

  
	
  5.25

  	
  5.30

  	
   

  	
   

  	
  0.74

  	
   

  	
  0.85

  	
   

  	
  0.78

  	
   

  
	
  5.20

  	
  5.25

  	
   

  	
   

  	
  0.73

  	
   

  	
  0.85

  	
   

  	
  0.78

  	
   

  
	
  5.15

  	
  5.20

  	
   

  	
   

  	
  0.72

  	
   

  	
  0.85

  	
   

  	
  0.77

  	
   

  
	
  5.10

  	
  5.15

  	
   

  	
   

  	
  0.71

  	
   

  	
  0.85

  	
   

  	
  0.77

  	
   

  
	
  5.05

  	
  5.10

  	
   

  	
   

  	
  0.70

  	
   

  	
  0.85

  	
   

  	
  0.76

  	
   

  
	
  Below

  	
  5.05

  	
   

  	
   

  	
  0.69

  	
   

  	
  0.85

  	
   

  	
  0.75

  	
   

  

 

5

 

Exhibit B

 

Macadamia Nut Purchase Agreement

Hamakua Macadamia Nut Company, Inc. &
ML Macadamia Orchards, L.P.

Procedure for Sampling & Evaluating NIS
Deliveries / Payment Calculations

 

1.  Upon receipt of a shipment, weigh or verify
certified weight ticket to determine the Gross Weight of the wet-in-husk (“WIH”)
or wet-in-shell (“WIS”) nuts delivered. 
A shipment (“shipment”) shall mean one load delivered on a single day.

 

2.  Obtain a sample, drawn randomly from
throughout the delivered shipment of mutually agreed upon quantity of nuts.

 

3.  Weigh the sample and record the weight.  For loads received WIH, husk the sample and
record the weight of the resulting sample of WIS nuts.  The ratio of WIS weight to the WIH weight of
the sample shall be applied to the Gross Weight determined in item 1 above to
determine the gross weight of the WIS nuts delivered for loads received WIH.
The gross weight of WIS nuts delivered as determined by the foregoing for WIH
loads or the weight determined in item 1 above for WIS loads is designated herein
as “W”.

 

4.  Split the sample into two lots, one to
determine moisture (“moisture sample”) and the other to determine spoilage and
kernel recovery (“quality sample”).

 

5.  Weigh the moisture sample and record the
weight.  Dry the sample at approximately
175 degrees Fahrenheit for a period of 3 days. 
Weigh the dried sample and record the weight after drying.  Divide the difference in weight prior to and
after drying by the weight prior to drying. 
The result is the percentage of moisture of the WIS nuts designated
herein as “M”.

 

6.  Weigh the quality sample and record the
weight.  Dry the sample at approximately
110 degrees Fahrenheit for 7 days. 
Record the dry-in-shell (“DIS”) weight. 
The weight, in grams, of the DIS sample is designated herein as “X”.

 

7.  Crack the DIS sample and separate the shells
from the kernels.  Determine the weight
of the recovered raw kernels.

 

8.  Inspect the raw kernels and separate
unsaleable kernels and record the weights of the following categories.

 

a)  Stinkbug damage (>3 spots)

b)  Other insect damage

c)  Mold

d)  Germination

e)  Bacterial damage

f)  Immature/Shrivels

g) Total a) through f)

 

  Record the data and summarize for field
management purposes.

 

9.  Using commercial criteria,
separate out the salable kernel and record the weight.  The weight, in grams, of salable kernel is
designated herein as “Y”.

 

6

 

10. Determine the Salable
Kernel Recovery (SK/DIS) factor designated herein as “KR”.

 

KR = Y/X

 

11. Determine spoilage
percentages for each category of unusable as follows:

 

For each category of
unusable, divide the recorded category

weight
by the total of unusable and usable kernel (8(g) plus Y).

 

12. Determine Payable
Pounds for the load.

 

a)  Convert total load to WIS weight at 20%
moisture designated herein as “WM”

 

WM = W*(1-M)/(1-.2)

 

b)  Determine Payable Pounds for the load
designated herein as “P”

 

P = WM*(KR/.3)

 

13. Sample Calculation.

 

	
  WIS Delivered

  	
   

  	
  45,000

  	
  lbs

  
	
  Moisture (from
  sample)

  	
   

  	
  21.0

  	
  %

  
	
  Salable Kernel
  Recovery (from sample)

  	
   

  	
  30.5

  	
  %

  
	
  Price (e.g. 1st
  year volume price)

  	
   

  	
  $

  	
  .85

  	
   

  
	
  Delivery Bonus
  (if delivered)

  	
   

  	
  $

  	
  .02

  	
   

  
	
  Husking Bonus
  (if husked)

  	
   

  	
  $

  	
  .02

  	
   

  

 

WM = 45,000 * (1-.21)/(1-.2) = 44,437 lbs WIS adjusted to 20% moisture

P = 44,437 * 0.305/0.3 =
45,178 lbs WIS adjusted to 20% moisture & 30% recovery (Contract
Pounds)

 

	
  Payment = 45,178
  lbs * $.85 =

  	
   

  	
  $

  	
  38,401.30

  	
   

  
	
  Delivery Bonus
  (if delivered) = 45,178 * $.02=

  	
   

  	
  $

  	
  903.56

  	
   

  
	
  Husking Bonus
  (if husked) = 45,178 * $.02=

  	
   

  	
  $

  	
  903.56

  	
   

  

 

7

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